BLACKROCK MUNIYIELD CALIFORNIA FUND, INC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-06499

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

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield

California Fund, Inc., 55 East 52nd Street, New York, NY 10055

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

Date of fiscal year end: 07/31/2016

Date of reporting period: 01/31/2016


Item 1 – Report to Stockholders


JANUARY 31, 2016

 

 

SEMI-ANNUAL REPORT (UNAUDITED)

 

    LOGO

 

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

BlackRock MuniYield Arizona Fund, Inc. (MZA)

BlackRock MuniYield California Fund, Inc. (MYC)

BlackRock MuniYield Investment Fund (MYF)

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

 

Not FDIC Insured • May Lose Value • No Bank Guarantee


Table of Contents     

 

     Page  

The Markets in Review

    3   

Semi-Annual Report:

 

Municipal Market Overview

    4   

The Benefits and Risks of Leveraging

    5   

Derivative Financial Instruments

    5   

Fund Summaries

    6   
Financial Statements:  

Schedules of Investments

    16   

Statements of Assets and Liabilities

    37   

Statements of Operations

    38   

Statements of Changes in Net Assets

    39   

Statements of Cash Flows

    42   

Financial Highlights

    43   

Notes to Financial Statements

    48   

Officers and Directors

    57   

Additional Information

    58   

 

                
2    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


The Markets in Review

 

Dear Shareholder,

Diverging monetary policies and shifting economic outlooks across regions have been the overarching themes driving financial markets over the past couple of years. With U.S. growth outpacing the global economic recovery while inflationary pressures remained low, investors spent most of 2015 anticipating a short-term rate hike from the Federal Reserve (“Fed”), which ultimately came to fruition in December. In contrast, the European Central Bank and the Bank of Japan moved to a more accommodative stance over the year. In this environment, the U.S. dollar strengthened considerably, causing profit challenges for U.S. exporters and high levels of volatility in emerging market currencies and commodities.

Market volatility broadly increased in the latter part of 2015 and continued into 2016 given a collapse in oil prices and decelerating growth in China, while global growth and inflation failed to pick up. Oil prices were driven lower due to excess supply while the world’s largest oil producers had yet to negotiate a deal that would stabilize oil prices. In China, slower economic growth combined with a depreciating yuan and declining confidence in the country’s policymakers stoked worries about the potential impact to the broader global economy. After a long period in which global central bank policies had significant influence on investor sentiment and hence the direction of financial markets, in recent months, the underperformance of markets in Europe and Japan — where central banks had taken aggressive measures to stimulate growth and stabilize their currencies — highlighted the possibility that central banks could be losing their effectiveness.

In this environment, higher quality assets such as municipal bonds, U.S. Treasuries and investment grade corporate bonds outperformed risk assets including equities and high yield bonds. Large cap U.S. equities fared better than international developed and emerging markets.

At BlackRock, we believe investors need to think globally, extend their scope across a broad array of asset classes and be prepared to move freely as market conditions change over time. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of January 31, 2016  
    6-month     12-month  

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

    (6.77 )%      (0.67 )% 

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

    (15.80     (9.92

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

    (14.58     (8.43

Emerging market equities
(MSCI Emerging Markets
Index)

    (16.96     (20.91

3-month Treasury bills
(BofA Merrill Lynch
3-Month U.S. Treasury

Bill Index)

    0.05        0.05   

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

    3.36        (0.41

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

    1.33        (0.16

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

    3.67        2.66   

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

    (7.75     (6.58
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.    

 

                
   THIS PAGE NOT PART OF YOUR FUND REPORT       3


Municipal Market Overview     

 

For the Reporting Period Ended January 31, 2016

Municipal Market Conditions

Municipal bonds generated positive performance for the period, due to a favorable supply-and-demand environment. Interest rates were volatile in 2015 (bond prices rise as rates fall) leading up to a long-awaited rate hike from the U.S. Federal Reserve (the “Fed”) that ultimately came in December. However, ongoing reassurance from the Fed that rates would be increased gradually and would likely remain low overall resulted in strong demand for fixed income investments, with municipal bonds being one of the strongest-performing sectors. Investors favored the relative stability of municipal bonds amid bouts of volatility resulting from uneven U.S. economic data, falling oil prices, global growth concerns, geopolitical risks, and widening central bank divergence — i.e., policy easing outside the United States while the Fed was posturing to commence policy tightening. During the 12 months ended January 31, 2016, municipal bond funds garnered net inflows of approximately $16 billion (based on data from the Investment Company Institute).

 

For the same 12-month period, total new issuance remained relatively strong from a historical perspective at $392 billion (considerably higher than the $349 billion issued in the prior 12-month period). A noteworthy portion of new supply during this period was attributable to refinancing activity (roughly 60%) as issuers took advantage of low interest rates and a flatter yield curve to reduce their borrowing costs.

S&P Municipal Bond Index

Total Returns as of January 31, 2016

  6 months: 3.67%

12 months: 2.66%

A Closer Look at Yields

 

LOGO

 

From January 31, 2015 to January 31, 2016, yields on AAA-rated 30-year municipal bonds increased by 25 basis points (“bps”) from 2.50% to 2.75%, while 10-year rates fell by 1 bp from 1.72% to 1.71% and 5-year rates increased 6 bps from 0.94% to 1.00% (as measured by Thomson Municipal Market Data). The slope of the municipal yield curve remained unchanged over the 12-month period with the spread between 2- and 30-year maturities holding steady at 209 bps as the spread between 2- and 10-year maturities flattened by 26 bps and the spread between 10- and 30-year maturities steepened by 26 bps.

 

During the same time period, U.S. Treasury rates increased by 50 bps on 30-year bonds, 25 bps on 10-year bonds and 14 bps on 5-year bonds. Accordingly, tax-exempt municipal bonds outperformed Treasuries, most notably in the intermediate and long-end of the curve as a result of manageable supply and robust demand. In absolute terms, the positive performance of municipal bonds was driven largely by a supply/demand imbalance within the municipal market as investors sought income and incremental yield in an environment where opportunities had become scarce. More broadly, municipal bonds benefited from the greater appeal of tax-exempt investing in light of the higher tax rates implemented in 2014. The asset class is known for its lower relative volatility and preservation of principal with an emphasis on income as tax rates rise.

Financial Conditions of Municipal Issuers

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

The opinions expressed are those of BlackRock as of January 31, 2016, and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.

The Standard & Poor’s Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the US municipal bond market. All bonds in the index are exempt from US federal income taxes or subject to the alternative minimum tax. Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

 

                
4    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


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, these objectives cannot be achieved in all interest rate environments.

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

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

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed the Funds’ return on assets purchased with leverage proceeds, income to shareholders is lower than if the Funds had not used leverage. Furthermore, the value of the Funds’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the value of the Funds’ obligations under their, respective, leverage arrangements generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAVs positively or

negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that a Fund’s intended leveraging strategy will be successful.

Leverage also generally causes greater changes in the Funds’ NAVs, market prices 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 Funds were not leveraged. In addition, the Funds 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 Funds 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. The Funds incur expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares. Moreover, to the extent the calculation of the Funds’ investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Funds’ investment advisor 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”) and/or leveraged its assets through the use of tender option bond trusts (“TOB Trusts”) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), each Fund is permitted to issue debt up to 33 1/3% of its total managed assets or equity securities (e.g., VRDP 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 VRDP Shares’ governing instruments or by agencies rating the VRDP Shares, which may be more stringent than those imposed by the 1940 Act.

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

 

 

Derivative Financial Instruments     

 

The Funds may invest in various derivative financial instruments. Derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical custody of securities 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. Derivative financial instruments also 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

derivative financial instrument. The Funds’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial 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.

 

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    5


Fund Summary as of January 31, 2016    BlackRock Muni New York Intermediate Duration Fund,  Inc.

 

Fund Overview

BlackRock Muni New York Intermediate Duration Fund, Inc.’s (MNE) (the “Fund”) investment objective is to provide shareholders with high current income exempt from federal income tax and New York State and New York City personal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income tax (except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City personal income taxes. Under normal market conditions, the Fund invests at least 75% of its assets in municipal obligations that are investment grade quality at the time of investment. Under normal market conditions, the Fund invests at least 80% of its assets in municipal obligations with a duration of three to ten years. The Fund may invest directly in such securities or synthetically through the use of derivatives.

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

 

Fund Information     

Symbol on New York Stock Exchange (“NYSE”)

  MNE

Initial Offering Date

  August 1, 2003

Yield on Closing Market Price as of January 31, 2016 ($14.73)1

  4.68%

Tax Equivalent Yield2

  9.47%

Current Monthly Distribution per Common Share3

  $0.0575

Current Annualized Distribution per Common Share3

  $0.6900

Economic Leverage as of January 31, 20164

  35%

 

  1   

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

 

  2   

Tax equivalent yield assumes the maximum marginal federal and state tax rate of 50.59%, 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.

 

  3   

The monthly distribution per Common Share, declared on March 1, 2016, was decreased to $0.0533 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

 

  4   

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance      

Returns for the six months ended January 31, 2016 were as follows:

 

   

    Returns Based On    

 
     Market Price     NAV  

MNE1,2

    7.21     6.33

Lipper Intermediate Municipal Debt Funds3

    7.48     4.85

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

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

 

  3   

Average return.

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

 

 

Municipal bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall). Municipals also benefited from a general “flight to quality” caused by the elevated volatility in the higher-risk segments of the financial markets. New York municipal bonds outperformed the national tax-exempt market, as the state’s healthy economy, robust overall financial position and general lack of pension-funding issues contributed to strong investor demand.

 

 

At a time of falling yields, the Fund’s positions in longer-duration and longer-dated bonds generally provided the largest absolute returns. (Duration is a measure of interest-rate sensitivity). The Fund’s positions in tax-backed (state and local), education, transportation, and health care sectors made positive contributions to performance. The Fund’s exposure to lower-coupon bonds also benefited returns. The Fund’s exposure to higher-yielding, lower-rated bonds in the investment grade category aided performance, as this market segment outperformed during the period. Income in the form of coupon payments made up a meaningful portion of the Fund’s total return for the period. The Fund’s leverage allowed it to increase its income.

 

 

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.

 

                
6    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


     BlackRock Muni New York Intermediate Duration Fund,  Inc.

 

 

Market Price and Net Asset Value Per Share Summary                              

 

     

1/31/16

    

7/31/15

     Change      High      Low  

Market Price

   $
14.73
  
   $ 14.07         4.69    $ 15.31       $ 13.67   

Net Asset Value

   $
15.97
  
   $ 15.37         3.90    $ 15.97       $ 15.25   

 

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

 

LOGO

 

Overview of the Fund’s Total Investments*
Sector Allocation   1/31/16    

7/31/15

 

Education

    22     15

County/City/Special District/School District

    21        17   

Transportation

    21        19   

Health

    11        12   

State

    10        11   

Utilities

    7        12   

Corporate

    5        9   

Housing

    3        4   

Tobacco

           1   

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

Credit Quality Allocation1   1/31/16    

7/31/15

 

AAA/Aaa

    10     9

AA/Aa

    51        50   

A

    22        22   

BBB/Baa

    10        9   

BB/Ba

    3        5   

N/R2

    4        5   

 

  1   

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

 

  2   

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of January 31, 2016 and July 31, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade represents 2% and 4%, respectively, of the Fund’s total investments.

 
 
Call/Maturity Schedule3  

Calendar Year Ended December 31,

 

2016

    3

2017

    4   

2018

    8   

2019

    9   

2020

    6   

 

  3   

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

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    7


Fund Summary as of January 31, 2016    BlackRock MuniYield Arizona Fund, Inc.

 

Fund Overview

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

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

 

Fund Information     

Symbol on NYSE MKT

  MZA

Initial Offering Date

  October 29, 1993

Yield on Closing Market Price as of January 31, 2016 ($16.48)1

  5.06%

Tax Equivalent Yield2

  9.37%

Current Monthly Distribution per Common Share3

  $0.0695

Current Annualized Distribution per Common Share3

  $0.8340

Economic Leverage as of January 31, 20164

  37%

 

  1   

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

 

  2   

Tax equivalent yield assumes the maximum marginal federal and state tax rate of 45.97%, 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.

 

  3   

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

 

  4   

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance      

Returns for the six months ended January 31, 2016 were as follows:

 

        Returns Based On      
     Market Price     NAV  

MZA1,2

    0.06     5.05

Lipper Other States Municipal Debt Funds3

    7.55     5.60

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

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

 

  3   

Average return.

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

 

 

Municipal bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall). Municipals also benefited from a general “flight to quality” caused by the elevated volatility in the higher-risk segments of the financial markets. Arizona municipal bonds slightly underperformed the national market. The state has seen lower new issuance of the types of longer-term and higher-yielding credits that outperformed in the past six months, which somewhat dampened buying interest during the period.

 

 

The largest positive contribution to performance came from the Fund’s duration exposure, as municipal yields fell significantly during the reporting period. (Duration is a measure of interest-rate sensitivity). Income in the form of coupon payments made up a meaningful portion of the Fund’s total return. Performance also benefited from the Fund’s investments in the education and utilities sectors.

 

 

Using TOB Trusts, the Fund continued to employ leverage in order to increase income at a time when the municipal yield curve was steep and short-term interest rates remained low. Leverage amplifies the effect of interest rate movements, which was a positive for Fund performance during the past six months, given that yields declined.

 

 

The Fund utilized ten-year U.S. Treasury futures contracts to manage exposure to a rise in interest rates, which had a slightly negative impact on performance given that the Treasury market finished with positive returns.

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

 

                
8    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


     BlackRock MuniYield Arizona Fund, Inc.

 

 

Market Price and Net Asset Value Per Share Summary

 

     

1/31/16

    

7/31/15

     Change      High      Low  

Market Price

   $
16.48
  
   $ 16.90         (2.49 )%     $ 17.52       $ 15.91   

Net Asset Value

   $
15.07
  
   $ 14.72         2.38    $ 15.10       $ 14.56   

 

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

 

LOGO

 

Overview of the Fund’s Total Investments*
Sector Allocation  

1/31/16

   

7/31/15

 

Utilities

    23     22

County/City/Special District/School District

    22        24   

Education

    18        16   

Health

    12        11   

Corporate

    11        12   

State

    11        12   

Transportation

    3        3   

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

Credit Quality Allocation1   1/31/16    

7/31/15

 

AAA/Aaa

    10     11

AA/Aa

    54        55   

A

    17        23   

BBB/Baa

    10        2   

BB/Ba

    5        4   

N/R2

    4        5   

 

  1   

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

 

  2   

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of January 31, 2016 and July 31, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade represents 2% and 4%, respectively, of the Fund’s total investments.

 
   
Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

    3

2017

    1   

2018

    26   

2019

    9   

2020

    9   

 

  3   

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

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    9


Fund Summary as of January 31, 2016    BlackRock MuniYield California Fund, Inc.

 

Fund Overview

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

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

 

Fund Information     

Symbol on NYSE

  MYC

Initial Offering Date

  February 28, 1992

Yield on Closing Market Price as of January 31, 2016 ($16.12)1

    5.51%

Tax Equivalent Yield2

  11.23%

Current Monthly Distribution per Common Share3

  $0.074

Current Annualized Distribution per Common Share3

  $0.888

Economic Leverage as of January 31, 20164

  38%

 

  1   

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

 

  2   

Tax equivalent yield assumes the maximum marginal federal and state tax rate of 50.93%, 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.

 

  3   

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

 

  4   

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance      

Returns for the six months ended January 31, 2016 were as follows:

 

        Returns Based On      
     Market Price     NAV  

MYC1,2

    8.02     5.12

Lipper California Municipal Debt Funds3

    10.81     5.97

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

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

 

  3   

Average return.

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

 

 

Municipal bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall). Municipals also benefited from a general “flight to quality” caused by the elevated volatility in the higher-risk segments of the financial markets. California municipal bonds outperformed the national tax-exempt market, reflecting the improvement in state finances that resulted from the combination of austerity measures and steady revenues from a diversified economy. In addition, the market benefited from the robust demand for tax-exempt investments in a state with a high income tax.

 

 

The Fund’s positions in longer-term bonds made a strong contribution to performance at a time when yields fell. Its investments in AA-rated credits in the school district, transportation and health care sectors also aided performance. AA-rated bonds generally experienced rising valuations as a result of California’s improving credit profile. On a sector basis, investments in health care and utilities made the largest contributions to performance. The Fund was also helped by having a zero-weighting in Puerto Rico credits, which fell in price as the deterioration of the Commonwealth’s finances led it to pursue additional debt restructuring efforts.

 

 

Using TOB Trusts, the Fund continued to employ leverage in order to increase income at a time when the municipal yield curve was steep and short-term interest rates remained low. Leverage amplifies the effect of interest rate movements, which was a positive for Fund performance during the past six months, given that yields declined.

 

 

The Fund generally kept its position in cash and cash equivalents at a minimum level. To the degree that the Fund held reserves, these securities added little in the form of additional yield and provided no price performance in a generally positive period for the market. As a result, the Fund’s cash position detracted slightly from performance. The Fund utilized ten-year U.S. Treasury futures contracts to manage exposure to a rise in interest rates, which had a slightly negative impact on performance given that the Treasury market finished with positive returns.

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

 

                
10    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


     BlackRock MuniYield California Fund, Inc.

 

 

Market Price and Net Asset Value Per Share Summary                              

 

     

1/31/16

    

7/31/15

     Change      High      Low  

Market Price

   $
16.12
  
   $ 15.47         4.20    $ 16.18       $ 15.25   

Net Asset Value

   $
16.59
  
   $ 16.35         1.47    $ 16.66       $ 16.14   

 

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

 

LOGO

 

Overview of the Fund’s Total Investments*
Sector Allocation   1/31/16    

7/31/15

 

County/City/Special District/School District

    41     42

Utilities

    14        14   

Health

    14        13   

Education

    14        15   

Transportation

    7        7   

State

    6        6   

Tobacco

    2        1   

Corporate

    1        1   

Housing

    1        1   

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

Credit Quality Allocation1  

1/31/16

   

7/31/15

 

AAA/Aaa

    2      4

AA/Aa

    75     72   

A

    21        21   

BBB/Baa

    2        2   

B

    2        1   

 

  1   

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

 

  2   

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

 
 
Call/Maturity Schedule3  

Calendar Year Ended December 31,

 

2016

    1

2017

    9   

2018

    15   

2019

    21   

2020

    9   

 

  3   

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

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    11


Fund Summary as of January 31, 2016    BlackRock MuniYield Investment Fund

 

Fund Overview      

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

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

 

Fund Information     

Symbol on NYSE

  MYF

Initial Offering Date

  February 28, 1992

Yield on Closing Market Price as of January 31, 2016 ($15.84)1

    6.17%

Tax Equivalent Yield2

  10.90%

Current Monthly Distribution per Common Share3

  $0.0815

Current Annualized Distribution per Common Share3

  $0.9780

Economic Leverage as of January 31, 20164

  38%

 

  1   

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

 

  2   

Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, 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.

 

  3   

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

 

  4   

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance      

Returns for the six months ended January 31, 2016 were as follows:

 

        Returns Based On      
     Market Price     NAV  

MYF1,2

    11.44     4.80

Lipper General & Insured Municipal Debt Funds (Leveraged)3

    9.89     5.99

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

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

 

  3   

Average return.

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

 

 

Municipal bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall). Municipals also benefited from a general “flight to quality” caused by the elevated volatility in the higher-risk segments of the financial markets.

 

 

The Fund’s overweight position in A-rated bonds, which outperformed higher-rated issues amid investors’ continued search for yield, made a positive contribution to performance. Holdings in longer-dated, A-rated bonds in the transportation and utilities sectors made particularly strong contributions. The Fund’s positions in long-term bonds, which outpaced their short-term counterparts, aided performance. Income generated in the form of coupon payments also made a meaningful contribution to the Fund’s total return.

 

 

Using TOB Trusts, the Fund continued to employ leverage in order to increase income. Leverage amplifies the effect of interest rate movements, which was a positive for Fund performance during the past six months, given that yields declined.

 

 

The Fund’s positions in shorter-dated holdings, such as pre-refunded issues and bonds with very short call dates, detracted from performance. The Fund’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance at a time when yields fell.

 

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

 

                
12    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


     BlackRock MuniYield Investment Fund

 

 

Market Price and Net Asset Value Per Share Summary                              

 

     

1/31/16

    

7/31/15

     Change      High      Low  

Market Price

   $
15.84
  
   $ 14.67         7.98    $ 15.95       $ 14.45   

Net Asset Value

   $
15.86
  
   $ 15.61         1.60    $ 15.89       $ 15.37   

 

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

 

LOGO

 

Overview of the Fund’s Total Investments*
Sector Allocation   1/31/16    

7/31/15

 

Transportation

    29     27

County/City/Special District/School District

    19        20   

Utilities

    16        16   

Health

    15        14   

Education

    7        7   

State

    6        7   

Corporate

    3        4   

Tobacco

    3        3   

Housing

    2        2   

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

Credit Quality Allocation1   1/31/16    

7/31/15

 

AAA/Aaa

    7     7

AA/Aa

    57        58   

A

    27        25   

BBB/Baa

    4        6   

BB/Ba

    1        1   

B

    1          

N/R2

    3        3   

 

  1   

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

 

  2   

The investment advisor evaluates the credit quality of not-rated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of January 31, 2016 and July 31, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade each represents less than 1% of the Fund’s total investments.

 
   
Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

    1

2017

    1   

2018

    13   

2019

    30   

2020

    12   

 

  3   

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

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    13


Fund Summary as of January 31, 2016    BlackRock MuniYield New Jersey Fund, Inc.

 

Fund Overview      

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

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

 

Fund Information     

Symbol on NYSE

  MYJ

Initial Offering Date

  May 1, 1992

Yield on Closing Market Price as of January 31, 2016 ($15.78)1

    5.70%

Tax Equivalent Yield2

  11.06%

Current Monthly Distribution per Common Share3

  $0.075

Current Annualized Distribution per Common Share3

  $0.900

Economic Leverage as of January 31, 20164

  38%

 

  1   

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

 

  2   

Tax equivalent yield assumes the maximum marginal federal and state tax rate of 48.48%, 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.

 

  3   

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

 

  4   

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance      

Returns for the six months ended January 31, 2016 were as follows:

        Returns Based On      
     Market Price     NAV  

MYJ1,2

    10.47     5.75

Lipper New Jersey Municipal Debt Funds3

    5.99     6.08

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

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

 

  3   

Average return.

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

 

 

Municipal bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall). Municipals also benefited from a general “flight to quality” caused by the elevated volatility in the higher-risk segments of the financial markets.

 

 

New Jersey municipal bonds outperformed the national tax-exempt market during the period. The slump in the state’s bond market during the first half of 2015 led to a significant widening of yield spreads (the extra yield received when compared to U.S. government securities). Higher yields attracted buying interest in the state during the past six months, which helped boost prices at a time of dwindling supply.

 

 

The Fund’s overweight position in A-rated bonds, which outperformed higher-rated issues amid investors’ continued search for yield, made a positive contribution to performance. Holdings in longer-dated, A-rated bonds in state and local tax-backed, transportation and education sectors made particularly strong contributions. The Fund’s positions in long-term bonds, which outpaced their short-term counterparts, aided performance. Income generated in the form of coupon payments also made a meaningful contribution to the Fund’s total return.

 

 

Using TOB Trusts, the Fund continued to employ leverage in order to increase income. Leverage amplifies the effect of interest rate movements, which was a positive for Fund performance during the past six months, given that yields declined.

 

 

The Fund’s positions in shorter-dated holdings, such as pre-refunded issues and bonds with very short call dates, detracted from performance. The Fund’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance at a time when yields fell.

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

 

                
14    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


     BlackRock MuniYield New Jersey Fund, Inc.

 

 

Market Price and Net Asset Value Per Share Summary                              

 

     

1/31/16

    

7/31/15

     Change      High      Low  

Market Price

   $
15.78
  
   $ 14.72         7.20    $ 15.92       $ 14.39   

Net Asset Value

   $
16.43
  
   $ 16.01         2.62    $ 16.48       $ 15.69   

 

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

 

LOGO

 

Overview of the Fund’s Total Investments*
Sector Allocation  

1/31/16

   

7/31/15

 

Transportation

    36     35

Education

    18        19   

County/City/Special District/School District

    16        15   

State

    14        15   

Corporate

    7        7   

Health

    6        6   

Housing

    2        2   

Utilities

    1        1   

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

Credit Quality Allocation1  

1/31/16

   

7/31/15

 

AAA/Aaa

           3

AA/Aa

    42     39   

A

    45        46   

BBB/Baa

    10        9   

BB/Ba

    2        1   

N/R2

    1        2   

 

  1   

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

 

  2   

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of January 31, 2016 and July 31, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade each represents 1% of the Fund’s total investments.

 
   
Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

    3

2017

    6   

2018

    11   

2019

    12   

2020

    6   

 

  3   

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

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    15


Schedule of Investments January 31, 2016 (Unaudited)

  

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

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

New York — 130.3%

                

Corporate — 7.7%

  

Build NYC Resource Corp., Refunding RB:

    

Ethical Culture Fieldston School Project, 5.00%, 6/01/30

   $ 385      $ 457,153   

Pratt Paper, Inc. Project, AMT, 4.50%, 1/01/25 (a)

     500        544,140   

The Packer Collegiate Institute Project, 5.00%, 6/01/35

     250        290,010   

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

     500        505,475   

Onondaga County Industrial Development Agency, RB, AMT, 5.75%, 3/01/24

     500        636,255   

State of New York Energy Research & Development Authority, Refunding RB (NPFGC):

    

Brooklyn Union Gas/Keyspan, Series A, AMT, 4.70%, 2/01/24

     500        501,685   

Rochester Gas & Electric Corp., Series C, 5.00%, 8/01/32 (b)

     1,000        1,020,130   

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

     1,000        1,208,720   
    

 

 

 
               5,163,568   

County/City/Special District/School District — 28.3%

  

Amherst Development Corp., Refunding RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.00%, 10/01/24

     1,000        1,080,750   

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

    

5.25%, 8/01/22

     2,000        2,477,800   

5.00%, 8/01/30

     1,250        1,495,275   

City of New York New York, GO:

    

Sub-Series A-1, 5.00%, 8/01/33

     700        831,194   

Sub-Series I-1, 5.50%, 4/01/21

     1,500        1,725,765   

Sub-Series I-1, 5.13%, 4/01/25

     750        849,652   

City of New York New York Industrial Development Agency, RB, PILOT, Queens Baseball Stadium (AMBAC), 5.00%, 1/01/31

     1,500        1,542,420   

City of New York New York Industrial Development Agency, Refunding ARB, Transportation Infrastructure Properties LLC, Series A, AMT, 5.00%, 7/01/22

     750        849,652   

City of Yonkers New York, GO, Refunding Series B, 5.00%, 8/01/24

     490        599,481   

County of Nassau New York, 5.00%, 1/01/32 (c)

     1,000        1,187,050   

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

     300        355,761   

Hudson Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47

     1,000        1,164,260   

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

     3,060        3,697,184   

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

     1,000        1,158,590   
    

 

 

 
               19,014,834   
Municipal Bonds   

Par  

(000)

    Value  

New York (continued)

                

Education — 30.9%

  

Build NYC Resource Corp., RB, Bronx Charter School For Excellence Project, Series A, 3.88%, 4/15/23

   $ 505      $ 506,384   

Build NYC Resource Corp., Refunding RB, 5.00%, 7/01/33

     2,000        2,289,300   

City of New York New York Trust for Cultural Resources, Refunding RB, American Museum of Natural History, Series A, 5.00%, 7/01/32

     500        597,330   

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

     1,000        1,180,090   

County of Monroe New York Industrial Development Corp., Refunding RB, Series A, 5.00%, 7/01/30

     1,000        1,191,890   

County of Nassau New York Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 5.00%, 3/01/21

     1,000        1,119,170   

County of Schenectady New York Capital Resource Corp., Refunding RB, Union College, 5.00%, 7/01/32

     500        578,225   

State of New York Dormitory Authority, RB:

    

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

     880        951,474   

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

     120        143,446   

Fordham University, Series A, 5.25%, 7/01/25

     500        590,005   

Icahn School of Medicine at Mount Sinai, Series A, 5.00%, 7/01/32

     1,000        1,168,440   

Mount Sinai School of Medicine, 5.50%, 7/01/19 (d)

     1,000        1,149,560   

Mount Sinai School of Medicine, Series A (NPFGC), 5.15%, 7/01/24

     250        297,070   

Series A, 5.00%, 3/15/32

     1,000        1,199,090   

Touro College & University System Obligation Group, Series A, 4.13%, 1/01/30

     1,000        1,056,070   

State of New York Dormitory Authority, Refunding RB:

    

5.00%, 7/01/31

     1,500        1,813,035   

Fordham University, 5.00%, 7/01/29

     375        442,676   

Fordham University, 5.00%, 7/01/30

     300        351,786   

Pace University, Series A, 5.00%, 5/01/27

     1,000        1,108,850   

State University Dormitory Facilities, Series A, 5.25%, 7/01/30

     1,050        1,272,589   

The Culinary Institute of America, 5.00%, 7/01/28

     500        563,770   

Troy Capital Resource Corp., Refunding RB, 5.00%, 8/01/32

     1,000        1,182,200   
    

 

 

 
               20,752,450   

Health — 17.0%

  

Build NYC Resource Corp., Refunding RB, New York Methodist Hospital Project, 5.00%, 7/01/30

     500        576,135   

County of Dutchess New York Industrial Development Agency, RB, Vassar Brothers Medical Center (AGC), 5.00%, 4/01/21

     215        248,987   

County of Dutchess New York Local Development Corp., Refunding RB, Health Quest System, Inc., Series A (AGM), 5.25%, 7/01/25

     1,000        1,150,150   
 
Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.      EDA    Economic Development Authority    M/F    Multi-Family
AGM    Assured Guaranty Municipal Corp.      ERB    Education Revenue Bonds    NPFGC    National Public Finance Guarantee Corp.
AMBAC    American Municipal Bond Assurance Corp.      GARB    General Airport Revenue Bonds    PILOT    Payment in Lieu of Taxes
AMT    Alternative Minimum Tax (subject to)      GO    General Obligation Bonds    RB    Revenue Bonds
ARB    Airport Revenue Bonds      IDA    Industrial Development Authority    S/F    Single-Family
BARB    Building Aid Revenue Bonds      IDB    Industrial Development Board    SONYMA    State of New York Mortgage Agency
CAB    Capital Appreciation Bonds      ISD    Independent School District    Syncora    Syncora Guarantee
COP    Certificates of Participation      LRB    Lease Revenue Bonds      

 

See Notes to Financial Statements.

 

                
16    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments (continued)

  

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

 

Municipal Bonds   

Par  

(000)

    Value  

New York (continued)

                

Health (continued)

  

County of Erie New York Industrial Development Agency, RB, Episcopal Church Home, Series A, 5.88%, 2/01/18

   $ 110      $ 110,034   

County of Suffolk New York Industrial Development Agency, Refunding RB, Jefferson’s Ferry Project, 4.63%, 11/01/16

     800        818,368   

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

    

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

     910        1,058,403   

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

     580        654,327   

Series B, 6.00%, 11/01/30

     240        277,452   

County of Westchester New York Local Development Corp., Refunding RB, Kendal On Hudson Project:

    

3.00%, 1/01/18

     500        514,635   

4.00%, 1/01/23

     250        274,320   

5.00%, 1/01/28

     875        988,304   

State of New York Dormitory Authority, RB, Series A:

    

New York State Association for Retarded Children, Inc., 5.30%, 7/01/23

     450        514,287   

New York University Hospitals Center, 5.00%, 7/01/22

     1,000        1,146,440   

State of New York Dormitory Authority, Refunding RB, Series A:

    

Mount Sinai Hospital, 4.25%, 7/01/23

     250        275,198   

North Shore-Long Island Jewish Obligated Group, 5.00%, 5/01/32

     1,770        2,059,221   

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

     750        769,080   
    

 

 

 
               11,435,341   

Housing — 2.1%

  

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

    

Series B1, 5.25%, 7/01/30

     500        599,540   

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

     780        805,303   
    

 

 

 
               1,404,843   

State — 10.6%

    

City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.00%, 1/15/23

     575        645,501   

State of New York Dormitory Authority, RB:

    

Haverstraw King’s Daughters Public Library, 5.00%, 7/01/26

     1,015        1,181,785   

Municipal Health Facilities Lease, Sub-Series 2-4, 5.00%, 1/15/27

     600        648,636   

State of New York Dormitory Authority, Refunding RB, Barnard College, Series A, 4.00%, 7/01/31

     1,000        1,095,290   

State of New York Thruway Authority, RB, Transportation, Series A, 5.00%, 3/15/32

     250        294,855   

State of New York Thruway Authority, Refunding RB, Series A-1, 5.00%, 4/01/22

     1,000        1,132,150   

State of New York Urban Development Corp., RB:

    

Personal Income Tax, Series A-1, 5.00%, 3/15/32

     400        471,768   

Service Contract, Series B, 5.00%, 1/01/21

     1,500        1,652,955   
    

 

 

 
               7,122,940   

Tobacco — 0.8%

  

Niagara Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, 5.25%, 5/15/34

     500        576,095   

Transportation — 27.8%

  

Metropolitan Transportation Authority, RB:

    

Series A, 5.00%, 11/15/27

     1,000        1,178,250   

Series A (NPFGC), 5.00%, 11/15/24

     1,010        1,047,622   
Municipal Bonds   

Par  

(000)

    Value  

New York (continued)

                

Transportation (continued)

  

Metropolitan Transportation Authority, RB (continued):

  

Series A-1, 5.25%, 11/15/33

   $ 500      $ 603,495   

Series B, 5.25%, 11/15/33

     1,000        1,199,010   

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

     860        994,530   

Sub-Series B-1, 5.00%, 11/15/24

     460        555,767   

Sub-Series B-4, 5.00%, 11/15/24

     300        362,457   

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

     1,000        1,138,420   

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

     2,000        2,376,820   

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

     500        539,475   

Port Authority of New York & New Jersey, Refunding RB, AMT:

    

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

     1,000        1,162,250   

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

     1,000        1,078,950   

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

    

Series I, 5.00%, 1/01/37

     660        760,492   

Series K, 5.00%, 1/01/32

     650        778,070   

Triborough Bridge & Tunnel Authority, RB:

    

5.00%, 11/15/33

     500        606,530   

Series B, 5.00%, 11/15/31

     2,005        2,459,493   

Triborough Bridge & Tunnel Authority, Refunding RB, Series A:

    

5.00%, 11/15/24

     1,000        1,234,350   

5.00%, 1/01/27

     500        603,530   
    

 

 

 
               18,679,511   

Utilities — 5.1%

  

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series DD, 5.00%, 6/15/32

     500        546,865   

Long Island Power Authority, Refunding RB, Series A:

    

Electric System, 5.50%, 4/01/19 (d)

     500        571,680   

5.00%, 9/01/34

     1,000        1,164,410   

State of New York Environmental Facilities Corp., Refunding RB, NYC Municipal Water Finance Authority Project, 2nd Resolution, Series B, 5.00%, 6/15/31

     1,000        1,161,430   
    

 

 

 
               3,444,385   
Total Municipal Bonds in New York              87,593,967   
    

Puerto Rico — 2.2%

                

Housing — 2.2%

    

Puerto Rico Housing Finance Authority, Refunding RB, M/F Housing, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27

     1,360        1,473,546   
    

U.S. Virgin Islands — 0.8%

                

State — 0.8%

    

Virgin Islands Public Finance Authority, Refunding RB, Gross Receipts Taxes Loan Note, Series C, 5.00%, 10/01/30

     500        564,535   
Total Municipal Bonds — 133.3%              89,632,048   
 

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    17


Schedule of Investments (continued)

  

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

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
  

Par  

(000)

    Value  

New York — 20.7%

                

County/City/Special District/School District — 4.1%

  

City of New York New York, GO, Refunding, Series E, 5.00%, 8/01/27

   $ 599      $ 682,966   

City of New York New York, GO:

    

Series I, 5.00%, 3/01/32

     991        1,178,934   

Sub-Series G-1, 5.00%, 4/01/29

     750        892,980   
    

 

 

 
               2,754,880   

Education — 2.8%

  

State of New York Dormitory Authority, 5.25%, 3/15/33

     1,500        1,858,230   

State — 4.4%

  

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

     990        1,213,017   

State of New York Urban Development Corp., RB, Personal Income Tax, Series A-1, 5.00%, 3/15/32

     1,499        1,767,864   
    

 

 

 
               2,980,881   

Transportation — 4.3%

  

Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/25

     749        868,784   

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

     750        884,265   

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

     991        1,151,777   
    

 

 

 
               2,904,826   
Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
  

Par  

(000)

    Value  

New York (continued)

                

Utilities — 5.1%

    

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

    

2nd General Resolution, Fiscal 2011, Series HH, 5.00%, 6/15/32

   $ 1,560      $ 1,821,409   

Series A, 4.75%, 6/15/30

     1,500        1,580,085   
    

 

 

 
               3,401,494   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 20.7%
        13,900,311   

Total Long-Term Investments

(Cost — $95,447,574) — 154.0%

  

  

    103,532,359   
    
                  
Short-Term Securities    Shares         

BIF New York Municipal Money Fund, 0.00% (f)(g)

     712,866        712,866   

Total Short-Term Securities

(Cost — $712,866) — 1.1%

  

  

    712,866   
Total Investments (Cost — $96,160,440) — 155.1%        104,245,225   
Liabilities in Excess of Other Assets — (0.4)%        (247,205

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (10.7)%

   

    (7,169,587
VRDP Shares, at Liquidation Value — (44.0)%        (29,600,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 67,228,433   
    

 

 

 
 
Notes to Schedule of Investments

 

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

 

(b)   Variable rate security. Rate as of period end.

 

(c)   When-issued security.

 

(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)   During the six months ended January 31, 2016, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate      Shares Held
at July 31,
2015
       Net
Activity
       Shares Held
at January 31,
2016
       Income  

BIF New York Municipal Money Fund

       970,820           (257,954        712,866         $ 188   

 

(g)   Current yield as of period end.

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

 

Derivative Financial Instruments Outstanding as of Period End

 

Financial Futures Contracts          
Contracts
Short
    Issue      Expiration      Notional
Value
       Unrealized
Depreciation
           
  (14   5-Year U.S. Treasury Note      March 2016      $ 1,689,406         $ (25,253    
  (18   10-Year U.S. Treasury Note      March 2016      $ 2,332,406           (53,086    
  (5   Long U.S. Treasury Bond      March 2016      $ 805,157           (30,819        
  Total                     $ (109,158    
                

 

 

 

See Notes to Financial Statements.

 

                
18    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments (concluded)

  

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

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

          Commodity
Contracts
    Credit
Contracts
    Equity
Contracts
    Foreign
Currency
Exchange
Contracts
    Interest
Rate
Contracts
    Other
Contacts
    Total  
Liabilities — Derivative Financial Instruments                                                 

Financial futures contracts

  Net unrealized depreciation1                               $ 109,158             $ 109,158  

 

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

        

For the six months ended January 31, 2016, 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
Contacts
  Total  
Net Realized Gain (Loss) From:              

Financial futures contracts

          $ (47,836     $ (47,836

Net Change in Unrealized Appreciation (Depreciation) on:

  

Financial futures contracts

          $ (90,000     $ (90,000

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Financial futures contracts:       

Average notional value of contracts — short

  $ 3,439,992   

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

 

Fair Value Hierarchy as of Period End

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

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

 

     Level 1        Level 2        Level 3      Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $ 103,532,359              $ 103,532,359   

Short-Term Securities

  $ 712,866                          712,866   
 

 

 

 

Total

  $ 712,866         $ 103,532,359              $ 104,245,225   
 

 

 

 

1   See above Schedule of Investments for values in each sector.

      

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments1   

Liabilities:

                

Interest rate contracts

  $ (109,158                     $ (109,158

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

      

 

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

   

     Level 1        Level 2        Level 3      Total  

Assets:

  

Cash pledged for financial futures contracts

  $ 57,450                        $ 57,450   

Liabilities:

  

TOB Trust Certificates

            $ (7,169,171             (7,169,171

VRDP Shares

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

 

 

 

Total

  $ 57,450         $ (36,769,171           $ (36,711,721
 

 

 

 

During the six months ended January 31, 2016, there were no transfers between levels.

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    19


Schedule of Investments January 31, 2016 (Unaudited)

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Arizona — 140.6%

                

Corporate — 18.1%

  

County of Maricopa Arizona Pollution Control Corp., Refunding RB, Southern California Edison Co., Series A, 5.00%, 6/01/35

   $ 4,350      $ 4,893,054   

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

     1,000        1,110,030   

County of Pima Arizona IDA, Refunding RB, Tucson Electric Power Co. Project, Series A, 4.00%, 9/01/29

     1,000        1,050,680   

Salt Verde Financial Corp., RB, Senior:

    

5.50%, 12/01/29

     2,000        2,508,440   

5.00%, 12/01/37

     2,500        3,000,625   
    

 

 

 
               12,562,829   

County/City/Special District/School District — 34.0%

  

City of Tucson Arizona, COP (AGC), 5.00%, 7/01/29

     1,000        1,107,530   

County of Maricopa Arizona Community College District, GO, Series C, 3.00%, 7/01/22

     1,000        1,056,210   

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

    

5.50%, 7/01/29

     480        591,984   

5.50%, 7/01/30

     400        491,468   

County of Maricopa Arizona Unified School District No. 89 Dysart, GO, School Improvement Project of 2006, Series C, 6.00%, 7/01/28

     1,000        1,122,940   

County of Maricopa Unified School District No 11-Peoria, GO, 5.00%, 7/01/35

     1,250        1,480,887   

County of Mohave Arizona Unified School District No. 20 Kingman, GO, School Improvement Project of 2006, Series C (AGC), 5.00%, 7/01/26

     1,000        1,129,230   

County of Pinal Arizona, RB, 5.00%, 8/01/33

     500        588,120   

County of Yuma Arizona Library District, GO (Syncora), 5.00%, 7/01/26

     500        531,255   

Gilbert Public Facilities Municipal Property Corp., RB, 5.50%, 7/01/27

     2,000        2,259,520   

Gladden Farms Community Facilities District, GO, 5.50%, 7/15/31

     750        754,792   

Greater Arizona Development Authority, RB, Santa Cruz County Jail, Series 2, 5.25%, 8/01/31

     1,155        1,256,652   

Marana Municipal Property Corp., RB, Series A, 5.00%, 7/01/28

     2,500        2,714,850   

Phoenix-Mesa Gateway Airport Authority, RB, Mesa Project, AMT, 5.00%, 7/01/38

     3,600        3,958,056   

Town of Buckeye Arizona, RB, 5.00%, 7/01/43

     4,000        4,557,160   
    

 

 

 
               23,600,654   

Education — 27.5%

  

Arizona Board of Regents, COP, Refunding, University of Arizona, Series C, 5.00%, 6/01/30

     2,595        3,000,339   

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

    

6.00%, 7/01/18

     970        1,090,251   

6.00%, 7/01/18

     745        837,358   

6.00%, 7/01/18

     425        477,687   

6.00%, 7/01/18

     400        449,588   

City of Phoenix Arizona IDA, RB:

    

Candeo School, Inc. Project, 6.63%, 7/01/33

     500        564,460   

Great Hearts Academies — Veritas Project, 6.30%, 7/01/42

     500        540,260   

Great Hearts Academies Project, Series A, 5.00%, 7/01/44 (c)

     2,000        2,067,980   

Legacy Traditional Schools Project, Series A, 6.75%, 7/01/44 (c)

     440        497,380   

City of Phoenix Arizona IDA, Refunding RB (c):

    

Basis Schools, Inc. Projects, Series A, 5.00%, 7/01/45

     1,000        1,032,590   

Legacy Traditional School Projects, 5.00%, 7/01/45

     500        494,660   
Municipal Bonds   

Par  

(000)

    Value  

Arizona (continued)

                

Education (continued)

  

County of Pima Arizona IDA, Refunding RB:

    

Arizona Charter Schools Project, Series O, 5.00%, 7/01/26

   $ 915      $ 916,986   

Series A, 5.00%, 7/01/46 (c)

     1,500        1,548,525   

Northern Arizona University, RB, Stimulus Plan for Economic and Educational Development, 5.00%, 8/01/38

     3,000        3,417,840   

Student & Academic Services LLC, RB, 5.00%, 6/01/39

     1,400        1,608,502   

Town of Florence, Inc. Arizona, IDA, ERB, Legacy Traditional School Project, Queen Creek and Casa Grande Campuses, 6.00%, 7/01/43

     500        542,920   
    

 

 

 
               19,087,326   

Health — 18.4%

  

Arizona Health Facilities Authority, RB, Catholic Healthcare West, Series B-2 (AGM), 5.00%, 3/01/41

     500        551,575   

Arizona Health Facilities Authority, Refunding RB:

    

5.00%, 12/01/42

     1,750        1,980,703   

Banner Health, Series D, 5.50%, 1/01/38

     4,800        5,140,608   

Phoenix Children’s Hospital, Series A, 5.00%, 2/01/42

     1,000        1,084,560   

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

     500        545,525   

County of Maricopa Arizona IDA, RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39

     170        192,321   

County of Maricopa Arizona IDA, Refunding RB, Samaritan Health Services, Series A (NPFGC), 7.00%, 12/01/16 (d)

     235        247,671   

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

     1,000        1,172,260   

University Medical Center Corp., RB, 6.50%, 7/01/19 (b)

     500        592,285   

University Medical Center Corp., Refunding RB, 6.00%, 7/01/21 (b)

     1,000        1,251,240   
    

 

 

 
               12,758,748   

Housing — 0.5%

  

City of Phoenix & County of Maricopa Arizona IDA, Refunding RB, S/F Housing, AMT (Fannie Mae):

    

Series A-1, 5.75%, 5/01/40

     30        32,070   

Series A-2, 5.80%, 7/01/40

     35        36,624   

City of Phoenix & County of Pima Arizona IDA, RB, S/F Housing, Series 1A, AMT (Fannie Mae), 5.65%, 7/01/39

     154        154,271   

City of Phoenix & County of Pima Arizona IDA, Refunding RB, S/F Housing, AMT (Fannie Mae):

    

Series 1, 5.25%, 8/01/38

     11        10,734   

Series 2, 5.50%, 12/01/38

     39        40,779   

County of Maricopa Arizona IDA, RB, S/F Housing, Series 3-B, AMT (Ginnie Mae), 5.25%, 8/01/38

     50        49,995   
    

 

 

 
               324,473   

State — 14.3%

  

Arizona Department of Transportation State Highway Fund, RB, Series B, 5.00%, 7/01/18 (b)

     4,000        4,405,240   

Arizona School Facilities Board, COP (b):

    

5.13%, 9/01/18

     1,000        1,110,860   

5.75%, 9/01/18

     2,000        2,253,680   

State of Arizona, RB, Lottery Revenue, Series A (AGM), 5.00%, 7/01/29

     1,930        2,172,215   
    

 

 

 
               9,941,995   

Transportation — 4.3%

  

City of Phoenix Arizona Civic Improvement Corp., RB, Senior Lien, Series A, AMT, 5.00%, 7/01/33

     1,000        1,085,440   
 

 

See Notes to Financial Statements.

 

                
20    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments (continued)

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

Municipal Bonds   

Par  

(000)

    Value  

Arizona (continued)

                

Transportation (continued)

  

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

    

Junior Lien, Series A, 5.00%, 7/01/40

   $ 1,000      $ 1,122,080   

Senior Lien, AMT, 5.00%, 7/01/32

     700        805,581   
    

 

 

 
               3,013,101   

Utilities — 23.5%

  

City of Lake Havasu City Arizona Wastewater System Revenue, RB, Series B, 5.00%, 7/01/40

     3,500        4,058,285   

City of Phoenix Arizona Civic Improvement Corp., Refunding RB, Senior Lien, 5.50%, 7/01/22

     2,000        2,227,380   

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

     2,000        2,287,040   

County of Pinal Arizona, Refunding RB, Electric District No. 3, 5.25%, 7/01/36

     2,500        2,800,750   

County of Pinal Arizona IDA, RB, San Manuel Facility Project, AMT, 6.25%, 6/01/26

     500        519,275   

Gilbert Water Resource Municipal Property Corp., RB, Subordinate Lien (NPFGC), 5.00%, 10/01/29

     900        954,351   

Greater Arizona Development Authority, RB, Series B (NPFGC), 5.00%, 8/01/30

     45        45,144   

Salt River Project Agricultural Improvement & Power District, RB, Series A, 5.00%, 1/01/24

     1,000        1,080,950   

Salt River Project Agricultural Improvement & Power District, Refunding RB, Series A, 5.00%, 12/01/41

     2,000        2,355,700   
    

 

 

 
               16,328,875   
Total Municipal Bonds in Arizona        97,618,001   
    

Guam — 2.6%

  

State — 2.6%

  

Territory of Guam, RB, Business Privilege Tax:

    

Bonds, Series A, 5.13%, 1/01/42

     620        682,155   

Series B-1, 5.00%, 1/01/42

     1,000        1,089,620   
Total Municipal Bonds in Guam        1,771,775   
Municipal Bonds   

Par  

(000)

    Value  

Puerto Rico — 1.2%

  

Utilities — 1.2%

  

Children’s Trust Fund, Refunding RB, Asset-Backed, 5.63%, 5/15/43

   $ 845      $ 846,420   
Total Municipal Bonds — 144.4%        100,236,196   
    
                  
Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
 

Arizona — 10.8%

                

Utilities — 10.8%

  

City of Mesa Arizona, RB, Utility System, 1.00%, 7/01/35

     3,000        3,477,810   

City of Phoenix Arizona Civic Improvement Corp., Refunding RB, Water System, Junior Lien, Series A, 5.00%, 7/01/34

     3,000        3,346,890   

Salt River Project Agricultural Improvement & Power District, RB, Electric System, Series A, 5.00%, 1/01/38

     660        703,989   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 10.8%
        7,528,689   
Total Long-Term Investments
(Cost — $98,407,952) — 155.2%
        107,764,885   
    
                  
Short-Term Securities    Shares         

BlackRock Liquidity Funds, MuniCash, 0.02% (f)(g)

     1,698,146        1,698,146   
Total Short-Term Securities
(Cost — $1,698,146) — 2.5%
        1,698,146   
Total Investments (Cost — $100,106,098) — 157.7%        109,463,031   
Other Assets Less Liabilities — 0.8%        587,055   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (4.8)%

   

    (3,330,054
VRDP Shares, at Liquidation Value — (53.7)%        (37,300,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 69,420,032   
    

 

 

 
 
Notes to Schedule of Investments

 

(a)   Variable rate security. Rate as of period end.

 

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

 

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

 

(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)   During the six months ended January 31, 2016, investments in issuers considered to be affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate      Shares Held
at July 31,
2015
       Net
Activity
       Shares Held
at January 31,
2016
       Income  

FFI Institutional Tax-Exempt Fund

       1,074,105           (1,074,105                $ 106   

BlackRock Liquidity Funds, MuniCash

                 1,698,146           1,698,146             

 

(g)   Current yield as of period end.

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

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    21


Schedule of Investments (continued)

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

 

Derivative Financial Instruments Outstanding as of Period End

 

Financial Futures Contracts          
Contracts
Short
    Issue      Expiration      Notional
Value
       Unrealized
Depreciation
           
  (10   5-Year U.S. Treasury Note      March 2016      $ 1,206,719         $ (17,528    
  (9   10-Year U.S. Treasury Note      March 2016      $ 1,166,203           (25,058    
  (4   Long U.S. Treasury Bond      March 2016      $ 644,125           (23,872        
  Total                     $ (66,458    
                

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

           Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contacts
     Total  
Liabilities — Derivative Financial Instruments                                                  

Financial futures contracts

  Net unrealized depreciation1                                    $ 66,458               $ 66,458   

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

        

For the six months ended January 31, 2016, 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
Contacts
     Total  
Net Realized Gain (Loss) From:                    

Financial futures contracts

                                  $ 61,983               $ 61,983   

Net Change in Unrealized Appreciation (Depreciation) on:

                   

Financial futures contracts

                                  $ (66,458            $ (66,458

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Financial futures contracts:          

Average notional value of contracts — short

     $ 2,361,832   

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

 

Fair Value Hierarchy as of Period End

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

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

 

     Level 1        Level 2        Level 3      Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $ 107,764,885              $ 107,764,885   

Short-Term Securities

  $ 1,698,146                          1,698,146   
 

 

 

 

Total

  $ 1,698,146         $ 107,764,885              $ 109,463,031   
 

 

 

 

1   See above Schedule of Investments for values in each sector.

      

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments1             

Liabilities:

                

Interest rate contracts

  $ (66,458                     $ (66,458

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

      

 

See Notes to Financial Statements.

 

                
22    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments (concluded)

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:    
     Level 1        Level 2        Level 3      Total  

Assets:

                

Cash pledged for financial futures contracts

  $ 38,000                        $ 38,000   

Liabilities:

                

TOB Trust Certificates

            $ (3,330,000             (3,330,000

VRDP Shares

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

 

 

 

Total

  $ 38,000         $ (40,630,000           $ (40,592,000
 

 

 

 

During the six months ended January 31, 2016, there were no transfers between levels.

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    23


Schedule of Investments January 31, 2016 (Unaudited)

  

BlackRock MuniYield California Fund, Inc. (MYC)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

California — 88.0%

                

Corporate — 1.6%

  

 

City of Chula Vista California, Refunding RB, San Diego Gas & Electric:

    

Series A, 5.88%, 2/15/34

   $ 975      $ 1,127,734   

Series D, 5.88%, 1/01/34

     4,000        4,626,600   
    

 

 

 
               5,754,334   

County/City/Special District/School District — 31.5%

  

 

Campbell Union High School District, GO, Election of 2006, Series C, 5.75%, 8/01/40

     4,000        4,685,080   

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

     2,000        2,009,300   

City of Los Angeles California Municipal Improvement Corp., RB, Real Property, Series E:

    

5.75%, 9/01/34

     1,215        1,391,989   

6.00%, 9/01/34

     2,660        3,083,738   

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

    

6.50%, 5/01/36

     1,520        1,848,563   

6.50%, 5/01/42

     1,860        2,245,597   

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

     5,000        5,912,650   

County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/36

     2,440        2,973,994   

County of Santa Clara California Financing Authority, Refunding LRB, Series L, 5.25%, 5/15/36

     16,000        17,411,200   

El Monte California Union High School District, GO, Election of 2002, Series C, 5.25%, 6/01/18 (a)

     6,000        6,626,700   

Garden Grove Unified School District, GO, Election of 2010, Series C, 5.25%, 8/01/40

     5,500        6,451,170   

Grossmont California Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/21 (a)

     2,000        2,536,780   

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39

     7,485        8,729,232   

Los Rios Community College District, GO, Election of 2002, Series D, 5.38%, 8/01/34

     4,635        5,257,202   

Oak Grove School District California, GO, Election of 2008, Series A, 5.50%, 8/01/33

     4,000        4,570,200   

Ohlone Community College District, GO, Election of 2010, Series A, 5.25%, 8/01/41

     7,135        8,441,347   

Pico Rivera Public Financing Authority, RB, 5.75%, 9/01/39

     6,035        6,900,479   

Riverside Community Properties Development, Inc., RB, Riverside County Law Building Project, 6.00%, 10/15/38

     5,000        5,987,450   

San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36

     4,135        4,642,447   

Santa Ana Unified School District, GO, Election of 2008, Series A, 5.13%, 8/01/33

     6,210        6,825,660   

West Contra Costa California Unified School District, GO, Election of 2012, Series A, 5.50%, 8/01/39

     2,500        2,991,450   
    

 

 

 
               111,522,228   

Education — 4.4%

  

 

California Educational Facilities Authority, Refunding RB:

    

Pitzer College, 6.00%, 4/01/40

     2,500        2,954,675   

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

     1,745        2,136,194   

California Municipal Finance Authority, RB, Emerson College, 6.00%, 1/01/42

     2,750        3,293,455   
Municipal Bonds   

Par  

(000)

    Value  

California (continued)

                

Education (continued)

  

 

California School Finance Authority, RB:

    

Alliance College-Ready Public Schools — 2023 Union LLC Project, Series A, 6.00%, 7/01/33

   $ 1,500      $ 1,696,095   

Alliance College-Ready Public Schools — 2023 Union LLC Project, Series A, 6.30%, 7/01/43

     3,000        3,420,630   

Value Schools, 6.65%, 7/01/33

     595        668,667   

Value Schools, 6.90%, 7/01/43

     1,330        1,504,203   
    

 

 

 
               15,673,919   

Health — 14.1%

  

California Health Facilities Financing Authority, RB:

    

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

     9,750        11,105,737   

St. Joseph Health System, Series A, 5.75%, 7/01/39

     1,000        1,148,470   

Sutter Health, Series A, 5.00%, 11/15/41 (b)

     4,500        5,253,795   

Sutter Health, Series B, 6.00%, 8/15/42

     7,530        9,083,063   

California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39

     10,000        11,495,500   

California Statewide Communities Development Authority, RB, Sutter Health, Series A, 6.00%, 8/15/42

     8,045        9,649,173   

Washington Township Health Care District, GO, Series B, 5.50%, 8/01/38

     1,625        1,971,466   
    

 

 

 
               49,707,204   

Housing — 1.0%

  

County of Santa Clara California Housing Authority, RB, John Burns Gardens Apartments Project, Series A, AMT, 6.00%, 8/01/41

     3,500        3,503,500   

State — 9.2%

  

State of California, GO, Various Purposes:

    

6.00%, 4/01/38

     8,000        9,234,880   

6.00%, 11/01/39

     2,000        2,361,160   

State of California Public Works Board, LRB:

    

Department of Developmental Services, Poterville, Series C, 6.25%, 4/01/34

     1,605        1,879,279   

Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34

     10,000        11,790,600   

Trustees of the California State University, Series D, 6.00%, 4/01/27

     215        250,176   

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

     1,510        1,870,739   

Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34

     4,400        5,289,284   
    

 

 

 
               32,676,118   

Tobacco — 2.7%

  

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior, Series A-1, 5.75%, 6/01/47

     10,050        9,597,851   

Transportation — 8.2%

  

City & County of San Francisco California Airports Commission, ARB, Series E, 6.00%, 5/01/39

     5,215        6,033,651   

City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT, 5.25%, 5/01/33

     1,440        1,676,304   

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A, 5.25%, 5/15/39

     3,605        4,056,923   

City of San Jose California, RB, Series A-1, AMT (AGM):

    

5.50%, 3/01/30

     1,000        1,166,160   

5.75%, 3/01/34

     1,000        1,185,100   
 

 

See Notes to Financial Statements.

 

                
24    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments (continued)

  

BlackRock MuniYield California Fund, Inc. (MYC)

 

Municipal Bonds   

Par  

(000)

    Value  

California (continued)

                

Transportation (continued)

  

City of San Jose California, Refunding ARB, Series A-1, AMT, 6.25%, 3/01/34

   $ 1,400      $ 1,685,376   

County of Orange California, ARB, Series B, 5.75%, 7/01/34

     3,000        3,209,790   

County of Sacramento California, ARB:

    

PFC/Grant, Sub-Series D, 6.00%, 7/01/35

     3,000        3,339,300   

Senior Series B, 5.75%, 7/01/39

     900        996,219   

San Francisco Port Commission California, RB, Series A, 5.13%, 3/01/40

     5,075        5,704,249   
    

 

 

 
               29,053,072   

Utilities — 15.3%

  

City of Los Angeles California Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38

     3,035        3,333,310   

City of Los Angeles California Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39

     4,000        4,620,680   

City of Petaluma California Wastewater, Refunding RB, 6.00%, 5/01/36

     2,645        3,190,769   

Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41

     2,420        2,890,037   

Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/35

     6,000        6,558,540   

Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37

     20,000        21,184,000   

Oceanside Public Financing Authority, Refunding RB, Series A:

    

5.25%, 5/01/30

     1,245        1,514,156   

5.25%, 5/01/33

     2,810        3,377,564   

San Diego Public Facilities Financing Authority, Refunding RB, Senior Series A, 5.38%, 5/15/34

     3,920        4,462,567   

San Francisco City & County California Public Utilities Commission, Refunding RB, Series A, 5.13%, 11/01/39

     2,480        2,811,874   
    

 

 

 
               53,943,497   
Total Municipal Bonds — 88.0%              311,431,723   
    
                  
Municipal Bonds Transferred to
Tender Option Bond Trusts (c)
       

California — 71.4%

  

County/City/Special District/School District — 35.3%

  

City of Los Angeles California, Refunding RB, Series A, 5.00%, 6/01/39

     9,870        11,023,310   

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

    

5.00%, 12/01/39

     17,850        20,723,315   

5.00%, 12/01/44

     14,095        16,233,471   

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

    

Election of 2001, Series E-1, 5.00%, 8/01/18 (a)

     14,850        16,414,893   

Election of 2008, Series C, 5.25%, 8/01/19 (d)

     9,680        11,289,348   

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/19 (a)

     3,828        4,508,316   

Palomar California Community College District, GO, Election of 2006, Series C, 5.00%, 8/01/44

     15,140        17,778,599   

San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33

     7,732        8,851,720   
Municipal Bonds Transferred to
Tender Option Bond Trusts (c)
  

Par  

(000)

    Value  

California (continued)

  

County/City/Special District/School District (continued)

  

San Marcos Unified School District, GO, Election of 2010, Series A, 5.00%, 8/01/38

   $ 15,520      $ 17,999,475   
    

 

 

 
               124,822,447   

Education — 18.2%

  

California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (d)

     13,845        15,451,989   

University of California, RB:

    

Series AM, 5.25%, 5/15/44

     11,950        14,122,510   

Series O, 5.75%, 5/15/19 (a)

     2,805        3,252,407   

University of California, Refunding RB:

    

Series A, 5.00%, 11/01/43

     5,001        5,887,172   

Series I, 5.00%, 5/15/40

     21,875        25,593,277   
    

 

 

 
               64,307,355   

Health — 8.7%

  

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

     26,870        30,935,162   

Transportation — 3.2%

  

City of Los Angeles California Department of Airports, ARB, Series A, AMT, 5.00%, 5/15/45

     10,045        11,444,960   

Utilities — 6.0%

    

City of Los Angeles California Department of Water & Power, RB, Power System, Sub-Series A-1 (AMBAC), 5.00%, 7/01/37

     15,098        15,997,265   

Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33

     4,748        5,190,111   
    

 

 

 
               21,187,376   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 71.4%
             252,697,300   
Total Long-Term Investments
(Cost — $515,492,676) — 159.4%
             564,129,023   
    
                  
Short-Term Securities    Shares         

BIF California Municipal Money Fund, 0.00% (e)(f)

     9,315,684        9,315,684   
Total Short-Term Securities
(Cost — $9,315,684) — 2.6%
        9,315,684   
Total Investments (Cost — $524,808,360) — 162.0%        573,444,707   
Other Assets Less Liabilities — 0.2%        857,666   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (32.3)%

   

    (114,466,126
VRDP Shares, at Liquidation Value — (29.9)%        (105,900,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 353,936,247   
    

 

 

 
 

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    25


Schedule of Investments (continued)

  

BlackRock MuniYield California Fund, Inc. (MYC)

 

 

Notes to Schedule of Investments

 

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

 

(b)   When-issued security.

 

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

 

(d)   All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between October 1, 2016 to August 1, 2018, is $14,709,685. See Note 4 of the Notes to Financial Statements for details.

 

(e)   During the six months ended January 31, 2016, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate      Shares Held
at July 31,
2015
       Net
Activity
       Shares Held
at January 31,
2016
       Income  

BIF California Municipal Money Fund

       3,733,443           5,582,241           9,315,684         $ 4   

 

(f)   Current yield as of period end.

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

 

Derivative Financial Instruments Outstanding as of Period End

 

Financial Futures Contracts
Contracts
Short
    Issue      Expiration      Notional
Value
    Unrealized
Depreciation
           
  (43   5-Year U.S. Treasury Note      March 2016      $ 5,188,891      $ (64,781    
  (48   10-Year U.S. Treasury Note      March 2016      $ 6,219,750        (113,621    
  (24   Long U.S. Treasury Bond      March 2016      $ 3,864,750        (128,631    
  (2   Ultra U.S. Treasury Bond      March 2016      $ 332,375        (11,868        
  Total                  $ (318,901    
             

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

            Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contacts
     Total  
Liabilities — Derivative Financial Instruments                                                  

Financial futures contracts

   Net unrealized depreciation1                                    $ 318,901               $ 318,901   

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

        

For the six months ended January 31, 2016, 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
Contacts
   Total  
Net Realized Gain (Loss) From:                     

Financial futures contracts

               $ (65,089       $ (65,089

Net Change in Unrealized Appreciation (Depreciation) on:

  

Financial futures contracts

               $ (286,566       $ (286,566

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Financial futures contracts:          

Average notional value of contracts — short

     $ 12,547,750   

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

 

See Notes to Financial Statements.

 

                
26    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments (concluded)

  

BlackRock MuniYield California Fund, Inc. (MYC)

 

 

Fair Value Hierarchy as of Period End

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

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

 

     Level 1        Level 2        Level 3        Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $ 564,129,023                   $ 564,129,023   

Short-Term Securities

  $ 9,315,684                               9,315,684   
 

 

 

 

Total

  $ 9,315,684         $ 564,129,023                   $ 573,444,707   
 

 

 

 

1    See above Schedule of Investments for values in each sector.

       

     Level 1        Level 2        Level 3        Total  
Derivative Financial Instruments1                 

Liabilities:

                

Interest rate contracts

  $ (318,901                          $ (318,901

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

 

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

      

   

     Level 1        Level 2        Level 3        Total  

Assets:

                

Cash pledged for financial futures contracts

  $ 209,500                             $ 209,500   

Liabilities:

                

TOB Trust Certificates

            $ (114,447,027                  (114,447,027

VRDP Shares

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

 

 

 

Total

  $ 209,500         $ (220,347,027                $ (220,137,527
 

 

 

 

During the six months ended January 31, 2016, there were no transfers between levels.

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    27


Schedule of Investments January 31, 2016 (Unaudited)

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Alabama — 0.3%

  

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

   $ 545      $ 607,037   

Alaska — 0.8%

  

Alaska Municipal Bond Bank Authority, RB:

    

5.75%, 9/01/18 (a)

     975        1,098,133   

5.75%, 9/01/33

     25        27,796   

Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 5.00%, 6/01/46

     690        583,112   
    

 

 

 
               1,709,041   

California — 13.3%

  

California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38

     2,740        3,058,032   

California Health Facilities Financing Authority, RB, Sutter Health:

    

Series A, 5.00%, 11/15/46 (b)

     1,035        1,202,991   

Series B, 6.00%, 8/15/42

     1,645        1,984,281   

California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39

     710        816,180   

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

    

2nd, 5.50%, 5/01/28

     1,065        1,297,607   

2nd, 5.25%, 5/01/33

     830        966,203   

5.00%, 5/01/44

     1,275        1,429,479   

City of Los Angeles California Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38

     2,000        2,196,580   

City of San Jose California, Refunding ARB, Series A-1, AMT, 5.50%, 3/01/30

     1,500        1,751,610   

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

     1,620        1,984,954   

Regents of the University of California Medical Center, Refunding RB, Series J, 5.25%, 5/15/38

     3,730        4,437,954   

San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36

     1,310        1,470,763   

State of California, GO, Various Purposes, 6.00%, 3/01/33

     2,535        3,037,031   

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

     1,000        1,241,320   

State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33

     835        1,004,973   

Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/40

     625        754,562   
    

 

 

 
               28,634,520   

Colorado — 1.0%

  

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

    

5.50%, 11/15/28

     1,000        1,193,160   

5.50%, 11/15/30

     330        391,261   

5.50%, 11/15/31

     400        472,376   
    

 

 

 
               2,056,797   

Connecticut — 1.1%

  

Connecticut State Health & Educational Facility Authority, Refunding RB, 5.00%, 12/01/45

     2,070        2,387,828   

Delaware — 0.3%

  

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

     500        542,580   
Municipal Bonds   

Par  

(000)

    Value  

Florida — 7.1%

  

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

   $ 675      $ 812,720   

City of Miami Beach Florida Parking Revenue, RB, 5.00%, 9/01/45

     1,000        1,142,270   

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

     985        1,105,298   

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

     1,995        2,366,010   

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

     2,000        2,262,760   

County of Lee Florida Housing Finance Authority, RB, S/F Housing, Multi-County Program, Series A-2, AMT (Ginnie Mae), 6.00%, 9/01/40

     330        330,677   

County of Manatee Florida Housing Finance Authority, RB, S/F Housing, Series A, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 5.90%, 9/01/40

     240        244,121   

County of Miami-Dade Florida, RB, Seaport:

    

Series A, 5.38%, 10/01/33

     1,170        1,355,211   

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

     525        653,352   

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

     700        835,520   

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

     2,440        2,762,373   

Reedy Creek Florida Improvement District, GO, Series A, 5.25%, 6/01/32

     1,200        1,424,400   
    

 

 

 
               15,294,712   

Georgia — 0.5%

  

Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%, 1/01/23

     880        990,572   

Hawaii — 1.1%

  

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

    

5.25%, 8/01/25

     485        580,589   

5.25%, 8/01/26

     525        627,112   

State of Hawaii, Department of Transportation, RB, Series A, AMT, 5.00%, 7/01/45

     1,135        1,270,610   
    

 

 

 
               2,478,311   

Illinois — 14.6%

  

City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien, Series C, 6.50%, 1/01/41

     6,065        7,319,242   

City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, 5.00%, 1/01/41

     1,000        1,094,280   

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

    

5.25%, 12/01/36

     1,000        1,102,190   

5.25%, 12/01/40

     1,000        1,093,300   

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

    

5.50%, 12/01/38

     2,000        2,321,120   

5.25%, 12/01/43

     1,500        1,690,575   

Illinois Finance Authority, RB, Carle Foundation, Series A, 6.00%, 8/15/41

     4,000        4,747,920   

Illinois Finance Authority, Refunding RB:

    

Central DuPage Health, Series B, 5.38%, 11/01/39

     1,200        1,364,916   

Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39

     4,160        4,844,569   

Railsplitter Tobacco Settlement Authority, RB:

    

5.50%, 6/01/23

     1,370        1,621,231   

6.00%, 6/01/28

     390        469,377   

State of Illinois, GO:

    

5.25%, 2/01/32

     2,200        2,399,386   

5.50%, 7/01/33

     1,000        1,122,070   
 

 

See Notes to Financial Statements.

 

                
28    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments (continued)

  

BlackRock MuniYield Investment Fund (MYF)

 

Municipal Bonds   

Par  

(000)

    Value  

Illinois (continued)

  

State of Illinois, GO (continued):

    

5.50%, 7/01/38

   $ 415      $ 459,961   
    

 

 

 
               31,650,137   

Indiana — 3.1%

  

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT, 6.75%, 1/01/34

     1,350        1,653,318   

Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39

     4,525        5,137,006   
    

 

 

 
               6,790,324   

Kansas — 1.7%

  

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

     3,275        3,774,699   

Kentucky — 0.7%

  

County of Louisville & Jefferson Kentucky Metropolitan Government Parking Authority, RB, Series A, 5.75%, 12/01/34

     1,200        1,399,056   

Louisiana — 2.3%

  

Lake Charles Harbor & Terminal District, RB, Series B, AMT (AGM), 5.50%, 1/01/29

     1,750        2,053,713   

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

     1,420        1,683,623   

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 5/15/29

     1,195        1,316,137   
    

 

 

 
               5,053,473   

Maine — 1.4%

  

Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%, 7/01/32

     2,500        3,000,825   

Massachusetts — 2.5%

  

Massachusetts HFA, Refunding RB, AMT:

    

Series B, 5.50%, 6/01/41

     1,210        1,278,111   

Series C, 5.35%, 12/01/42

     2,000        2,090,780   

Series F, 5.70%, 6/01/40

     1,925        2,027,217   
    

 

 

 
               5,396,108   

Michigan — 2.7%

  

City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41

     1,805        2,135,712   

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

    

6.00%, 10/15/18 (a)

     760        865,222   

6.00%, 10/15/38

     490        551,691   

Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a)

     1,970        2,343,591   
    

 

 

 
               5,896,216   

Mississippi — 1.1%

  

Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40

     1,785        2,396,737   

Nevada — 3.3%

  

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34

     2,850        3,306,000   

County of Clark Nevada Airport System, ARB, Series B, 5.75%, 7/01/42

     3,375        3,919,320   
    

 

 

 
               7,225,320   

New Jersey — 4.3%

  

New Jersey EDA, RB, The Goethals Bridge Replacement Project, Private Activity Bond, AMT (AGM), 5.00%, 1/01/31

     900        1,010,808   
Municipal Bonds   

Par  

(000)

    Value  

New Jersey (continued)

  

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

   $ 2,250      $ 2,556,158   

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

    

Series A, 5.88%, 12/15/38

     2,670        2,923,543   

Series AA, 5.50%, 6/15/39

     2,475        2,728,316   
    

 

 

 
               9,218,825   

New York — 1.4%

  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 6/01/41 (c)

     1,100        1,148,983   

New York Liberty Development Corp., Refunding RB, 2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

     1,650        1,863,411   
    

 

 

 
               3,012,394   

Ohio — 2.2%

  

County of Allen Ohio Hospital Facilities, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 6/01/38

     3,115        3,499,142   

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 2/15/31

     1,000        1,198,020   
    

 

 

 
               4,697,162   

Oklahoma — 0.4%

  

Tulsa Airports Improvement Trust, Refunding RB, American Airlines, Inc., AMT, 5.00%, 6/01/35 (d)

     700        782,229   

Pennsylvania — 6.5%

  

Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39

     1,075        1,226,811   

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

     1,000        1,043,670   

Pennsylvania Turnpike Commission, RB:

    

Series B, 5.00%, 12/01/40

     1,500        1,718,115   

Series B, 5.00%, 12/01/45

     2,000        2,274,580   

Sub-Series A, 6.00%, 12/01/16 (a)

     3,000        3,140,730   

Sub-Series A, 5.63%, 12/01/31

     2,455        2,867,121   

Township of Bristol Pennsylvania School District, GO, 5.25%, 6/01/37

     1,500        1,736,820   
    

 

 

 
               14,007,847   

Rhode Island — 1.9%

  

Tobacco Settlement Financing Corp., Refunding RB, Series B, 4.50%, 6/01/45

     3,950        4,003,957   

South Carolina — 4.2%

  

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

     2,505        2,980,750   

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

    

6.00%, 7/01/38

     1,955        2,311,220   

5.50%, 7/01/41

     1,000        1,143,050   

South Carolina Ports Authority, RB, AMT, 5.25%, 7/01/50

     1,280        1,436,045   

South Carolina State Public Service Authority, Refunding RB, Obligations, Series C, 5.00%, 12/01/46

     1,130        1,271,578   
    

 

 

 
               9,142,643   

Tennessee — 0.3%

  

Metropolitan Nashville Airport Authority, ARB, Series B, AMT, 5.00%, 7/01/40

     635        719,042   
 

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    29


Schedule of Investments (continued)

  

BlackRock MuniYield Investment Fund (MYF)

 

Municipal Bonds   

Par  

(000)

    Value  

Texas — 8.2%

  

Central Texas Regional Mobility Authority, Refunding RB, Senior Lien:

    

5.75%, 1/01/31

   $ 1,000      $ 1,140,170   

6.00%, 1/01/41

     2,600        2,981,290   

Conroe Texas ISD, GO, School Building, Series A, 5.75%, 2/15/18 (a)

     1,800        1,983,420   

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare:

    

6.00%, 8/15/20 (a)

     280        339,858   

6.00%, 8/15/45

     3,515        4,203,905   

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

  

Series A, 5.00%, 11/01/38

     1,365        1,506,933   

Series H, 5.00%, 11/01/37

     1,535        1,694,394   

North Texas Tollway Authority, Refunding RB, 1st Tier, Series K-1 (AGC), 5.75%, 1/01/38

     1,000        1,120,140   

Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38

     710        825,155   

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

     1,700        2,002,447   
    

 

 

 
        17,797,712   

Virginia — 2.0%

  

City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 1/01/43

     560        638,926   

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

     800        927,728   

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 1/01/37

     2,440        2,819,933   
    

 

 

 
        4,386,587   

Wisconsin — 1.7%

  

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Series C, 5.25%, 4/01/39

     3,470        3,773,556   
Total Municipal Bonds — 92.0%        198,826,247   
    
                  
Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
        

California — 20.3%

  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1, 5.63%, 4/01/19 (a)

     2,680        3,080,601   

California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (f)

     4,200        4,687,494   

Grossmont Union High School District, GO, Election of 2008, Series B, 5.00%, 8/01/40

     6,000        6,878,460   

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39 (f)

     5,250        6,122,839   

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/19 (a)

     7,697        9,063,716   

Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34

     790        891,499   

San Diego Public Facilities Financing Authority Water, RB, Series B, 5.50%, 8/01/39

     8,412        9,633,299   

University of California, RB, Series O, 5.75%, 5/15/19 (a)

     3,000        3,478,510   
    

 

 

 
               43,836,418   
Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
  

Par  

(000)

    Value  

Colorado — 1.1%

  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 7/01/34 (f)

   $ 2,149      $ 2,425,157   

District of Columbia — 3.3%

  

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

     2,805        3,280,410   

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

     3,507        3,938,943   
    

 

 

 
               7,219,353   

Florida — 2.0%

  

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

     3,869        4,246,207   

Illinois — 3.7%

  

State of Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/18 (a)

     5,300        5,992,869   

State of Illinois Toll Highway Authority, RB, Senior Priority, Series B, 5.50%, 1/01/18 (a)

     1,750        1,908,734   
    

 

 

 
               7,901,603   

Nevada — 8.9%

  

County of Clark Nevada Water Reclamation District, GO:

    

Limited Tax, 6.00%, 7/01/18 (a)

     5,000        5,626,300   

Series B, 5.50%, 7/01/29

     5,668        6,485,541   

Las Vegas Valley Water District, GO, Refunding, Series C, 5.00%, 6/01/28

     6,070        7,135,831   
    

 

 

 
               19,247,672   

New Hampshire — 1.1%

  

New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (f)

     2,159        2,449,253   

New Jersey — 3.6%

  

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

     2,251        2,397,715   

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

    

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

     4,000        4,209,040   

Series B, 5.25%, 6/15/36 (f)

     1,000        1,070,126   
    

 

 

 
               7,676,881   

New York — 14.5%

  

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution:

    

Series BB, 5.25%, 6/15/44

     4,408        5,234,185   

Series FF, 5.00%, 6/15/45

     3,859        4,414,333   

Series FF-2, 5.50%, 6/15/40

     2,505        2,858,162   

City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39

     2,499        2,780,168   

Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (f)

     1,290        1,501,762   

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

     4,365        5,074,147   

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

     2,560        2,994,226   

New York State Dormitory Authority, ERB, Personal Income Tax, Series B, 5.25%, 3/15/38

     5,700        6,412,842   
    

 

 

 
               31,269,825   

South Carolina — 1.7%

  

State of South Carolina Public Service Authority, Refunding RB, Santee Cooper, Series A, 5.50%, 1/01/38 (f)

     3,240        3,672,896   
 

 

See Notes to Financial Statements.

 

                
30    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments (continued)

  

BlackRock MuniYield Investment Fund (MYF)

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
  

Par  

(000)

    Value  

Texas — 6.8%

  

City of San Antonio Texas Public Service Board, Refunding RB, Series A, 5.25%, 2/01/31 (f)

   $ 3,989      $ 4,455,484   

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

     5,400        6,142,878   

North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 9/01/41

     3,480        4,120,946   
    

 

 

 
               14,719,308   

Utah — 1.0%

  

City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 8/15/41

     1,994        2,183,858   

Virginia — 0.9%

  

County of Fairfax Virginia IDA, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35

     1,749        1,983,084   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 68.9%
        148,831,515   

Total Long-Term Investments

(Cost — $309,384,128) — 160.9%

  

  

    347,657,762   
Short-Term Securities   

Shares

    Value  

BlackRock Liquidity Funds, MuniCash, 0.02% (g)(h)

     235,465      $ 235,465   

Total Short-Term Securities

(Cost — $235,465) — 0.1%

  

  

    235,465   
Total Investments (Cost — $309,619,593) — 161.0%        347,893,227   
Other Assets Less Liabilities — 1.4%        3,120,072   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (34.9)%

   

    (75,518,536
VRDP Shares, at Liquidation Value — (27.5)%        (59,400,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 216,094,763   
    

 

 

 
 
Notes to Schedule of Investments

 

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

 

(b)   When-issued security.

 

(c)   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)   Variable rate security. Rate as of period end.

 

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

 

(f)   All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between October 1, 2016 to November 15, 2019 is $18,118,175. See Note 4 of the Notes to Financial Statements for details.

 

(g)   During the six months ended January 31, 2016, investments in issuers considered to be affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate      Shares Held
at July 31,
2015
       Net
Activity
       Shares Held
at January 31,
2016
       Income  

FFI Institutional Tax-Exempt Fund

       2,293,764           (2,293,764                $ 199   

BlackRock Liquidity Funds, MuniCash

                 235,465           235,465             

 

(h)   Current yield as of period end.

 

Derivative Financial Instruments Outstanding as of Period End

 

Financial Futures Contracts          
Contracts
Short
    Issue      Expiration      Notional
Value
       Unrealized
Depreciation
           
  (46   5-Year U.S. Treasury Note      March 2016      $ 5,550,906         $ (87,928    
  (39   10-Year U.S. Treasury Note      March 2016      $ 5,053,547           (115,917    
  (15   Long U.S. Treasury Bond      March 2016      $ 2,415,469           (94,049    
  (3   Ultra U.S. Treasury Bond      March 2016      $ 498,562           (20,410        
  Total                     $ (318,304    
                

 

 

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    31


Schedule of Investments (concluded)

  

BlackRock MuniYield Investment Fund (MYF)

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

           Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contacts
     Total  
Liabilities — Derivative Financial Instruments                                                  

Financial futures contracts

  Net unrealized depreciation1                                    $ 318,304               $ 318,304   

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

        

For the six months ended January 31, 2016, 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
Contacts
     Total  
Net Realized Gain (Loss) From:                    

Financial futures contracts

                                  $ (127,675            $ (127,675

Net Change in Unrealized Appreciation (Depreciation) on:

                   

Financial futures contracts

                                  $ (294,176            $ (294,176

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Financial futures contracts:        

Average notional value of contracts — short

  $ 9,733,570   

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

 

Fair Value Hierarchy as of Period End

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

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

 

     Level 1        Level 2        Level 3      Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $ 347,657,762              $ 347,657,762   

Short-Term Securities

  $ 235,465                          235,465   
 

 

 

 

Total

  $ 235,465         $ 347,657,762              $ 347,893,227   
 

 

 

 

1   See above Schedule of Investments for values in each state or political sudivision.

      

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments1                 

Liabilities:

                

Interest rate contracts

  $ (318,304                     $ (318,304

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

      

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:    
     Level 1        Level 2        Level 3      Total  

Assets:

                

Cash pledged for financial futures contracts

  $ 168,550                        $ 168,550   

Liabilities:

                

TOB Trust Certificates

            $ (75,506,101             (75,506,101

VRDP Shares

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

 

 

 

Total

  $ 168,550         $ (134,906,101           $ (134,737,551
 

 

 

 

During the six months ended January 31, 2016, there were no transfers between levels.

 

See Notes to Financial Statements.

 

                
32    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments January 31, 2016 (Unaudited)

  

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

New Jersey — 128.6%

                

Corporate — 10.5%

  

County of Middlesex New Jersey Improvement Authority, RB, Senior Heldrich Center Hotel, Series A, 5.00%, 1/01/20

   $ 535      $ 495,982   

County of Salem New Jersey Pollution Control Financing Authority, Refunding RB, Atlantic City Electric, Series A, 4.88%, 6/01/29

     4,550        5,049,954   

New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT:

    

Series A, 5.63%, 11/15/30

     1,730        1,960,782   

Series B, 5.63%, 11/15/30

     485        549,772   

New Jersey EDA, Refunding RB:

    

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

     7,900        8,974,953   

New Jersey American Water Co., Inc. Project, Series B, AMT, 5.60%, 11/01/34

     2,430        2,743,349   

United Water of New Jersey, Inc., Series B (AMBAC), 4.50%, 11/01/25

     4,500        4,822,335   
    

 

 

 
               24,597,127   

County/City/Special District/School District — 20.0%

  

Casino Reinvestment Development Authority, Refunding RB:

    

5.25%, 11/01/39

     2,280        2,373,982   

5.25%, 11/01/44

     6,500        6,720,675   

City of Margate New Jersey, GO, Refunding, Improvement:

    

5.00%, 1/15/26

     1,200        1,368,444   

5.00%, 1/15/27

     845        958,517   

City of Perth Amboy New Jersey, GO, CAB, Refunding (AGM), 5.00%, 7/01/33

     755        781,735   

County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 7/01/45 (a)

     3,765        3,912,136   

County of Essex New Jersey Improvement Authority, Refunding RB, Project Consolidation (NPFGC):

    

5.50%, 10/01/28

     2,700        3,611,520   

5.50%, 10/01/29

     5,085        6,859,818   

County of Gloucester New Jersey Improvement Authority, RB, County Guaranteed Loan — County Capital Program, 5.00%, 4/01/38

     1,000        1,075,350   

County of Hudson New Jersey, COP, Refunding (NPFGC), 6.25%, 12/01/16

     1,500        1,563,345   

County of Hudson New Jersey Improvement Authority, RB, Harrison Parking Facility Project, Series C (AGC), 5.38%, 1/01/44

     4,800        5,289,168   

County of Mercer Improvement Authority, RB, Courthouse Annex Project, 5.00%, 9/01/40

     1,470        1,708,052   

County of Middlesex New Jersey, COP, Refunding, Civic Square IV Redevelopment, 5.00%, 10/15/31

     1,400        1,751,442   

County of Monmouth New Jersey Improvement Authority, Refunding RB, Government Loan (AMBAC), 5.00%, 12/01/16

     5        5,017   

County of Union New Jersey Improvement Authority, LRB, Guaranteed Lease, Family Court Building Project, 5.00%, 5/01/42

     1,650        1,854,897   

County of Union New Jersey Utilities Authority, Refunding RB, Series A:

    

Resources Recovery Facility, Covanta Union, Inc., AMT, 5.25%, 12/01/31

     670        745,610   

Solid Waste System, County Deficiency Agreement, 5.00%, 6/15/41

     4,115        4,605,343   

Monroe Township Board of Education Middlesex County, GO, Refunding, 5.00%, 3/01/38

     1,625        1,893,076   
    

 

 

 
               47,078,127   
Municipal Bonds   

Par  

(000)

    Value  

New Jersey (continued)

                

Education — 27.4%

  

New Jersey EDA, RB:

    

Leap Academy Charter School, Series A, 6.20%, 10/01/44

   $ 235      $ 240,990   

Leap Academy Charter School, Series A, 6.30%, 10/01/49

     375        384,499   

MSU Student Housing Project Provide, 5.75%, 6/01/31

     1,000        1,127,980   

MSU Student Housing Project Provide, 5.88%, 6/01/42

     1,500        1,673,835   

Team Academy Charter School Project, 6.00%, 10/01/33

     2,835        3,248,570   

New Jersey EDA, Refunding RB, Greater Brunswick Charter School, Inc. Project, Series A (a):

    

5.88%, 8/01/44

     780        811,738   

6.00%, 8/01/49

     555        576,523   

New Jersey Educational Facilities Authority, RB:

    

Higher Educational Capital Improvement Fund, Series A, 5.00%, 9/01/32

     3,925        4,231,464   

Montclair State University, Series J, 5.25%, 7/01/38

     1,140        1,242,589   

New Jersey Educational Facilities Authority, Refunding RB:

    

College of New Jersey, Series D (AGM), 5.00%, 7/01/18 (b)

     1,485        1,634,317   

College of New Jersey, Series D (AGM), 5.00%, 7/01/35

     4,630        5,027,300   

Georgian Court University, Series D, 5.25%, 7/01/37

     1,000        1,045,980   

Kean University, Series A, 5.50%, 9/01/36

     4,500        5,079,375   

Montclair State University, Series A, 5.00%, 7/01/44

     6,790        7,627,275   

New Jersey Institute of Technology, Series H, 5.00%, 7/01/31

     1,250        1,409,075   

Ramapo College, Series B, 5.00%, 7/01/42

     340        373,714   

Rider University, Series A, 5.00%, 7/01/32

     1,000        1,084,780   

Rowan University, Series B (AGC), 5.00%, 7/01/24

     1,800        1,968,498   

Seton Hall University, Series D, 5.00%, 7/01/38

     395        443,573   

University of Medicine & Dentistry, Series B, 7.13%, 6/01/19 (b)

     1,300        1,557,712   

University of Medicine & Dentistry, Series B, 7.50%, 6/01/19 (b)

     1,625        1,967,079   

New Jersey Higher Education Student Assistance Authority, Refunding RB:

    

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

     3,675        4,129,377   

Series 1A, 5.00%, 12/01/25

     740        779,301   

Series 1A, 5.00%, 12/01/26

     465        488,678   

Series 1A, 5.25%, 12/01/32

     900        978,327   

New Jersey Institute of Technology, RB, Series A:

    

5.00%, 7/01/40

     1,500        1,714,170   

5.00%, 7/01/42

     3,040        3,396,470   

5.00%, 7/01/45

     2,935        3,295,712   

Rutgers — The State University of New Jersey, Refunding RB, Series L, 5.00%, 5/01/43

     5,870        6,695,850   
    

 

 

 
               64,234,751   

Health — 9.3%

  

County of Camden New Jersey Improvement Authority, Refunding RB, 5.00%, 2/15/34

     590        662,564   

New Jersey EDA, Refunding RB, Lions Gate Project:

    

5.00%, 1/01/34

     500        516,825   

5.25%, 1/01/44

     315        326,655   
 

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    33


Schedule of Investments (continued)

  

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

 

Municipal Bonds   

Par  

(000)

    Value  

New Jersey (continued)

                

Health (continued)

  

New Jersey Health Care Facilities Financing Authority, RB:

    

Meridian Health System Obligated Group, Series I (AGC), 5.00%, 7/01/38

   $ 935      $ 1,003,517   

Robert Wood Johnson University Hospital, Series A, 5.50%, 7/01/43

     1,420        1,662,848   

Virtua Health, Series A (AGC), 5.50%, 7/01/38

     2,500        2,818,950   

New Jersey Health Care Facilities Financing Authority, Refunding RB:

    

AHS Hospital Corp., 6.00%, 7/01/41

     2,435        2,922,000   

Princeton Healthcare System, 5.00%, 7/01/34

     860        994,599   

Princeton Healthcare System, 5.00%, 7/01/39

     345        394,721   

Robert Wood Johnson University Hospital, 5.00%, 7/01/31

     1,000        1,112,210   

South Jersey Hospital, 5.00%, 7/01/36

     385        389,874   

St. Barnabas Health Care System, Series A, 5.00%, 7/01/29

     4,140        4,285,770   

St. Barnabas Health Care System, Series A, 5.63%, 7/01/32

     1,090        1,284,696   

St. Barnabas Health Care System, Series A, 5.63%, 7/01/37

     3,030        3,525,647   
    

 

 

 
               21,900,876   

Housing — 3.0%

  

New Jersey Housing & Mortgage Finance Agency, RB:

    

M/F Housing, Series A, 4.75%, 11/01/29

     2,305        2,452,773   

S/F Housing, Series AA, 6.50%, 10/01/38

     185        191,603   

S/F Housing, Series CC, 5.00%, 10/01/34

     1,700        1,786,292   

S/F Housing, Series U, AMT, 4.95%, 10/01/32

     260        264,943   

S/F Housing, Series U, AMT, 5.00%, 10/01/37

     265        268,265   

Newark Housing Authority, RB, South Ward Police Facility (AGC), 6.75%, 12/01/38

     1,750        2,060,240   
    

 

 

 
               7,024,116   

State — 15.7%

  

Garden State Preservation Trust, RB, CAB, Series B (AGM) (c):

    

0.00%, 11/01/23

     1,460        1,247,658   

0.00%, 11/01/28

     4,540        3,291,636   

New Jersey EDA, RB:

    

Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/25

     2,000        2,385,980   

Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/33

     9,090        9,196,444   

School Facilities Construction (AGC), 5.50%, 12/15/18 (b)

     2,345        2,656,134   

School Facilities Construction (AGC), 5.50%, 12/15/34

     1,320        1,453,769   

School Facilities Construction, Series CC-2, 5.00%, 12/15/31

     1,125        1,186,357   

School Facilities Construction, Series Y, 5.00%, 9/01/18 (b)

     880        974,741   

New Jersey EDA, Refunding RB:

    

5.25%, 6/15/19 (b)

     265        302,622   

5.25%, 12/15/33

     735        770,118   

Cigarette Tax, 5.00%, 6/15/26

     440        476,991   

Cigarette Tax, 5.00%, 6/15/28

     720        774,792   

Cigarette Tax, 5.00%, 6/15/29

     1,760        1,886,984   

School Facilities Construction, Series AA, 5.50%, 12/15/29

     3,000        3,286,830   

School Facilities Construction, Series GG, 5.25%, 9/01/27

     3,000        3,271,890   

New Jersey Health Care Facilities Financing Authority, RB, Hospital Asset Transformation Program, Series A, 5.25%, 10/01/38

     2,300        2,417,438   
Municipal Bonds   

Par  

(000)

    Value  

New Jersey (continued)

                

State (continued)

  

State of New Jersey, COP, Equipment Lease Purchase, Series A, 5.25%, 6/15/28

   $ 1,100      $ 1,179,343   
    

 

 

 
               36,759,727   

Transportation — 41.2%

  

Delaware River Port Authority of Pennsylvania & New Jersey, RB:

    

5.00%, 1/01/40

     2,620        2,988,975   

Series D, 5.00%, 1/01/40

     1,535        1,710,926   

New Jersey EDA, RB, Private Activity Bond, The Goethals Bridge Replacement Project, AMT:

    

5.38%, 1/01/43

     9,420        10,501,510   

(AGM), 5.00%, 1/01/31

     1,000        1,123,120   

New Jersey State Turnpike Authority, RB:

    

Growth & Income Securities, Series B (AMBAC), 5.15%, 1/01/17 (b)

     4,870        5,077,608   

Series A, 5.00%, 1/01/38

     10,750        12,185,125   

Series A, 5.00%, 1/01/43

     610        687,220   

Series E, 5.25%, 1/01/40

     2,525        2,781,742   

New Jersey State Turnpike Authority, Refunding RB, Series A, 5.00%, 1/01/35

     1,000        1,131,510   

New Jersey Transportation Trust Fund Authority, RB:

    

CAB, Transportation System, Series C (AMBAC), 0.00%, 12/15/35 (c)

     4,140        1,673,181   

Transportation Program, Series AA, 5.00%, 6/15/38

     5,935        6,301,605   

Transportation Program, Series AA, 5.25%, 6/15/41

     2,960        3,196,326   

Transportation System, 6.00%, 12/15/38

     1,950        2,150,479   

Transportation System, Series A, 6.00%, 6/15/35

     6,030        6,845,377   

Transportation System, Series A, 5.88%, 12/15/38

     3,650        3,996,604   

Transportation System, Series A, 5.50%, 6/15/41

     5,500        5,950,945   

Transportation System, Series A (AGC), 5.63%, 12/15/28

     1,250        1,413,250   

Transportation System, Series A (AGC), 5.50%, 12/15/38

     1,000        1,093,090   

Transportation System, Series AA, 5.50%, 6/15/39

     5,520        6,084,972   

Port Authority of New York & New Jersey, ARB:

    

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

     250        275,363   

Consolidated, 93rd Series, 6.13%, 6/01/94

     5,000        6,190,850   

JFK International Air Terminal, Series 8, 6.00%, 12/01/42

     2,700        3,147,903   

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

    

152nd Series, AMT, 5.75%, 11/01/30

     3,300        3,627,657   

152nd Series, AMT, 5.25%, 11/01/35

     240        259,939   

166th Series, 5.25%, 7/15/36

     4,000        4,610,800   

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

     1,500        1,699,440   
    

 

 

 
               96,705,517   

Utilities — 1.5%

  

Rahway Valley Sewerage Authority, RB, CAB, Series A (NPFGC), 0.00%, 9/01/31 (c)

     6,000        3,657,780   
Total Municipal Bonds — 128.6%        301,958,021   
 

 

See Notes to Financial Statements.

 

                
34    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments (continued)

  

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)
  

Par  

(000)

    Value  

New Jersey — 29.5%

  

County/City/Special District/School District — 6.1%

  

County of Union New Jersey Utilities Authority, Refunding LRB, Resource Recovery Facility, Covanta Union, Inc., Series A, AMT, 5.25%, 12/01/31

   $ 12,820      $ 14,266,737   

Education — 0.9%

  

Rutgers — The State University of New Jersey, RB, Series F, 5.00%, 5/01/39

     2,009        2,239,060   

State — 7.1%

  

Garden State Preservation Trust, RB, Election of 2005, Series A (AGM), 5.75%, 11/01/28

     5,460        6,823,035   

New Jersey EDA, RB, School Facilities Construction (AGC):

    

6.00%, 12/15/18 (b)

     1,185        1,378,311   

6.00%, 12/15/34

     2,415        2,749,719   

New Jersey EDA, Refunding RB, School Facilities Construction, 5.00%, 3/01/29 (e)

     5,230        5,664,767   
    

 

 

 
               16,615,832   

Transportation — 15.4%

  

New Jersey State Turnpike Authority, RB, Series A, 5.00%, 1/01/38 (e)

     8,820        9,997,470   

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

    

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

     4,100        4,314,266   

Series B, 5.25%, 6/15/36 (e)

     5,001        5,350,629   

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

     11,250        12,391,312   
Municipal Bonds Transferred to
Tender Option Bond Trusts (d)
  

Par  

(000)

    Value  

New Jersey (continued)

  

Transportation (continued)

  

Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.25%, 11/01/35

   $ 3,764      $ 4,076,384   
    

 

 

 
               36,130,061   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 29.5%
        69,251,690   
Total Long-Term Investments
(Cost — $341,065,701) — 158.1%
             371,209,711   
    
                  
Short-Term Securities    Shares         

BIF New Jersey Municipal Money Fund, 0.01% (f)(g)

     3,176,423        3,176,423   
Total Short-Term Securities
(Cost — $3,176,423) — 1.4%
        3,176,423   
Total Investments (Cost — $344,242,124) — 159.5%        374,386,134   
Other Assets Less Liabilities — 0.9%        2,120,681   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (16.9)%

   

    (39,561,005
VRDP Shares, at Liquidation Value — (43.5)%        (102,200,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 234,745,810   
    

 

 

 
 
Notes to Schedule of Investments

 

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

 

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

 

(c)   Zero-coupon bond.

 

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

 

(e)   All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between June 15, 2019 to September 1, 2020, is $14,350,925. See Note 4 of the Notes to Financial Statements for details.

 

(f)   During the six months ended January 31, 2016, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate      Shares Held
at July 31,
2015
       Net
Activity
       Shares Held
at January 31,
2016
       Income  

BIF New Jersey Municipal Money Fund

       3,887,295           (710,872        3,176,423         $ 228   

 

(g)   Current yield as of period end.

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

 

Derivative Financial Instruments Outstanding as of Period End

 

Financial Futures Contracts          
Contracts
Short
    Issue      Expiration      Notional
Value
       Unrealized
Depreciation
           
  (33   5-Year U.S. Treasury Note      March 2016      $ 3,982,172         $ (63,043    
  (54   10-Year U.S. Treasury Note      March 2016      $ 6,997,219           (160,883    
  (24   Long U.S. Treasury Bond      March 2016      $ 3,864,750           (153,498    
  (4   Ultra U.S. Treasury Bond      March 2016      $ 664,750           (29,005        
  Total                     $ (406,429    
                

 

 

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    35


Schedule of Investments (concluded)

  

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

          Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contacts
     Total  
Liabilities — Derivative Financial Instruments                                                  

Financial futures contracts

  Net unrealized depreciation1                                   $ 406,429               $ 406,429   

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

        

For the six months ended January 31, 2016, 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
Contacts
     Total  
Net Realized Gain (Loss) From:                    

Financial futures contracts

                                  $ (162,169            $ (162,169

Net Change in Unrealized Appreciation (Depreciation) on:

                   

Financial futures contracts

                                  $ (376,624            $ (376,624

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Financial futures contracts:          

Average notional value of contracts — short

     $ 11,209,109   

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

 

Fair Value Hierarchy as of Period End

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

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

 

     Level 1        Level 2        Level 3        Total  

Assets:

                
Investments:                 

Long-Term Investments1

            $  371,209,711                   $  371,209,711   

Short-TermSecurities

  $ 3,176,423                               3,176,423   
 

 

 

 

Total

  $ 3,176,423         $ 371,209,711                   $ 374,386,134   
 

 

 

 

1   See above Schedule of Investments for values in each sector.

      

     Level 1        Level 2        Level 3        Total  
Derivative Financial Instruments 1                 

Liabilities:

                

Interest rate contracts

  $ (406,429                          $ (406,429)   

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

      

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

 

     Level 1        Level 2        Level 3        Total  

Assets:

                

Cash pledged for financial futures contracts

  $    218,150                             $ 218,150   

Liabilities:

                

TOB Trust Certificates

            $ (39,553,519                  (39,553,519

VRDP Shares

              (102,200,000                  (102,200,000
 

 

 

 

Total

  $ 218,150         $ (141,753,519                $ (141,535,369
 

 

 

 

During the six months ended January 31, 2016, there were no transfers between levels.

 

See Notes to Financial Statements.

 

                
36    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Statements of Assets and Liabilities     

 

January 31, 2016 (Unaudited)   BlackRock
Muni New York
Intermediate
Duration
Fund, Inc.
(MNE)
    BlackRock
MuniYield
Arizona
Fund, Inc.
(MZA)
    BlackRock
MuniYield
California
Fund, Inc.
(MYC)
    BlackRock
MuniYield
Investment
Fund
(MYF)
    BlackRock
MuniYield
New Jersey
Fund, Inc.
(MYJ)
 
         
Assets                                        

Investments at value — unaffiliated1

  $ 103,532,359      $ 107,764,885      $ 564,129,023      $ 347,657,762      $ 371,209,711   

Investments at value — affiliated2

    712,866        1,698,146        9,315,684        235,465        3,176,423   

Cash pledged for financial futures contracts

    57,450        38,000        209,500        168,550        218,150   

Receivables:

         

Interest

    1,023,955        740,448        7,656,218        4,017,819        3,048,157   

Investments sold

           73,505               1,330,620          

Deferred offering costs

    121,445        164,123        223,320        184,090        229,055   

Prepaid expenses

    87,301        4,822        14,850        10,197        10,683   

Other assets

                         2,244          
 

 

 

 

Total assets

    105,535,376        110,483,929        581,548,595        353,606,747        377,892,179   
 

 

 

 
         
Accrued Liabilities                                        
Payables:          

Investments purchased

    1,183,250               5,249,655        1,196,025          

Income dividends — Common Shares

    242,066        320,196        1,578,652        1,110,640        1,071,336   

Investment advisory fees

    48,118        46,513        243,061        148,411        159,195   

Officer’s and Directors’ fees

    557        668        3,524        2,308        2,495   

Interest expense and fees

    479        184        19,100        12,642        7,486   

Other accrued expenses

    44,130        54,336        106,180        82,450        85,236   

Variation margin payable on financial futures contracts

    19,172        12,000        65,149        53,407        67,102   
 

 

 

 

Total accrued liabilities

    1,537,772        433,897        7,265,321        2,605,883        1,392,850   
 

 

 

 
         
Other Liabilities                                        

TOB Trust Certificates

    7,169,171        3,330,000        114,447,027        75,506,101        39,553,519   

VRDP Shares, at liquidation value of $100,000 per share3,4,5

    29,600,000        37,300,000        105,900,000        59,400,000        102,200,000   
 

 

 

 

Total other liabilities

    36,769,171        40,630,000        220,347,027        134,906,101        141,753,519   
 

 

 

 

Total liabilities

    38,306,943        41,063,897        227,612,348        137,511,984        143,146,369   
 

 

 

 

Net Assets Applicable to Common Shareholders

  $ 67,228,433      $ 69,420,032      $ 353,936,247      $ 216,094,763      $ 234,745,810   
 

 

 

 
         
Net Assets Applicable to Common Shareholders Consist of                                        

Paid-in capital6,7

  $ 59,580,258      $ 61,153,569      $ 301,983,828      $ 189,780,086      $ 205,570,870   

Undistributed net investment income

    544,498        539,652        2,837,609        3,513,227        4,598,728   

Undistributed net realized gain (accumulated net realized loss)

    (871,950     (1,563,664     797,364        (15,153,880     (5,161,370

Net unrealized appreciation (depreciation)

    7,975,627        9,290,475        48,317,446        37,955,330        29,737,582   
 

 

 

 

Net Assets Applicable to Common Shareholders

  $ 67,228,433      $ 69,420,032      $ 353,936,247      $ 216,094,763      $ 234,745,810   
 

 

 

 

Net asset value per Common Share

  $ 15.97      $ 15.07      $ 16.59      $ 15.86      $ 16.43   
 

 

 

 

1    Investments at cost — unaffiliated

  $ 95,447,574      $ 98,407,952      $ 515,492,676      $ 309,384,128      $ 341,065,701   

2    Investments at cost — affiliated

  $ 712,866      $ 1,698,146      $ 9,315,684      $ 235,465      $ 3,176,423   

3    Preferred Shares outstanding, par value $0.10 per share

    296        373        1,059               1,022   

4    Preferred Shares outstanding, par value $0.05 per share

                         594          

5    Preferred Shares authorized, including Auction Market Rate Preferred Shares (“AMPS”)

    1,536        1,985        8,059        1,000,000        5,782   

6    Common Shares outstanding, par value $0.10 per share

    4,209,844        4,607,136        21,333,129        13,627,481        14,284,482   

7    Common Shares authorized

    199,998,464        199,998,015        199,991,941        unlimited        199,994,218   

 

See Notes to Financial Statements.      
                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    37


Statements of Operations     

 

Six Months Ended January 31, 2016 (Unaudited)   BlackRock
Muni New York
Intermediate
Duration
Fund, Inc.
(MNE)
    BlackRock
MuniYield
Arizona
Fund, Inc.
(MZA)
    BlackRock
MuniYield
California
Fund, Inc.
(MYC)
    BlackRock
MuniYield
Investment
Fund
(MYF)
    BlackRock
MuniYield
New Jersey
Fund, Inc.
(MYJ)
 
         
Investment Income                                        

Interest — unaffiliated

  $ 1,941,082      $ 2,361,653      $ 11,876,224      $ 7,945,275      $ 8,144,872   

Dividends — affiliated

    188        106        4        199        228   
 

 

 

 

Total income

    1,941,270        2,361,759        11,876,228        7,945,474        8,145,100   
 

 

 

 
         
Expenses                                        

Investment advisory

    280,668        273,336        1,440,122        874,095        932,020   

Liquidity fees

    58,369                               

Professional

    25,756        26,294        48,512        37,764        38,438   

Rating agency

    20,455        18,527        18,001        17,966        17,997   

Accounting services

    9,028        9,593        42,650        26,894        28,164   

Remarketing fees on Preferred Shares

    6,742                               

Transfer agent

    6,474        7,744        13,772        11,628        12,356   

Custodian

    4,011        3,473        12,359        7,918        9,156   

Registration

    3,778        959        3,768        3,780        3,780   

Officer and Directors

    2,958        3,146        16,219        9,941        10,648   

Printing

    2,786        2,752        4,602        3,697        4,007   

Miscellaneous

    12,503        9,594        14,925        17,627        14,972   
 

 

 

 

Total expenses excluding interest expense, fees and amortization of offering costs

    433,528        355,418        1,614,930        1,011,310        1,071,538   

Interest expense, fees and amortization of offering costs1

    108,134        185,583        907,826        541,925        636,130   
 

 

 

 

Total expenses

    541,662        541,001        2,522,756        1,553,235        1,707,668   

Less fees waived by the Manager

    (129     (9            (4     (116
 

 

 

 

Total expenses after fees waived

    541,533        540,992        2,522,756        1,553,231        1,707,552   
 

 

 

 

Net investment income

    1,399,737        1,820,767        9,353,472        6,392,243        6,437,548   
 

 

 

 
         
Realized and Unrealized Gain (Loss)                                        
Net realized gain (loss) from:          

Investments

    511,334        187,032        1,204,946        297,411        198,923   

Financial futures contracts

    (47,836     61,983        (65,089     (127,675     (162,169
 

 

 

 
    463,498        249,015        1,139,857        169,736        36,754   
 

 

 

 
Net change in unrealized appreciation (depreciation) on:          

Investments

    2,190,620        1,526,062        7,187,918        3,747,034        6,552,956   

Financial futures contracts

    (90,000     (66,458     (286,566     (294,176     (376,624
 

 

 

 
    2,100,620        1,459,604        6,901,352        3,452,858        6,176,332   
 

 

 

 

Net realized and unrealized gain

    2,564,118        1,708,619        8,041,209        3,622,594        6,213,086   
 

 

 

 

Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations

  $ 3,963,855      $ 3,529,386      $ 17,394,681      $ 10,014,837      $ 12,650,634   
 

 

 

 

1    Related to TOB Trusts and/or VRDP Shares.

       

 

 

 

See Notes to Financial Statements.      
                
38    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Statements of Changes in Net Assets     

 

    BlackRock Muni New York
Intermediate Duration
Fund, Inc. (MNE)
        BlackRock MuniYield Arizona
Fund, Inc. (MZA)
 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:   Six Months Ended
January 31,
2016
(Unaudited)
    Year Ended
July 31,
2015
        Six Months Ended
January 31,
2016
(Unaudited)
    Year Ended
July 31,
2015
 
         
Operations                                    

Net investment income

  $ 1,399,737      $ 2,865,917        $ 1,820,767      $ 3,680,745   

Net realized gain

    463,498        103,666          249,015        184,130   

Net change in unrealized appreciation (depreciation)

    2,100,620        85,707          1,459,604        854,903   
 

 

 

     

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    3,963,855        3,055,290          3,529,386        4,719,778   
 

 

 

     

 

 

 
         
Distributions to Common Shareholders1                                    

From net investment income

    (1,452,396     (2,904,792       (1,920,119     (3,832,120
 

 

 

     

 

 

 
         
Capital Share Transactions                                    

Reinvestment of common distributions

                    103,064        207,413   
 

 

 

     

 

 

 
         
Net Assets Applicable to Common Shareholders                                    

Total increase in net assets applicable to Common Shareholders

    2,511,459        150,498          1,712,331        1,095,071   

Beginning of period

    64,716,974        64,566,476          67,707,701        66,612,630   
 

 

 

     

 

 

 

End of period

  $ 67,228,433      $ 64,716,974        $ 69,420,032      $ 67,707,701   
 

 

 

     

 

 

 

Undistributed net investment income, end of period

  $ 544,498      $ 597,157        $ 539,652      $ 639,004   
 

 

 

     

 

 

 

1    Distributions for annual periods determined in accordance with federal income tax regulations.

         

 

See Notes to Financial Statements.      
                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    39


Statements of Changes in Net Assets     

 

 

    BlackRock MuniYield California
Fund, Inc. (MYC)
        BlackRock MuniYield Investment
Fund (MYF)
 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:   Six Months Ended
January 31,
2016
(Unaudited)
    Year Ended
July 31,
2015
        Six Months Ended
January 31,
2016
(Unaudited)
    Year Ended
July 31,
2015
 
         
Operations                                    

Net investment income

  $ 9,353,472      $ 18,653,923        $ 6,392,243      $ 12,953,591   

Net realized gain (loss)

    1,139,857        5,072,962          169,736        (339,095

Net change in unrealized appreciation (depreciation)

    6,901,352        (5,204,709       3,452,858        1,264,586   
 

 

 

     

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    17,394,681        18,522,176          10,014,837        13,879,082   
 

 

 

     

 

 

 
         
Distributions to Common Shareholders1                                    

From net investment income

    (9,476,560     (19,157,149       (6,663,024     (13,154,104

From net realized gain

    (2,830,415                       
 

 

 

     

 

 

 

Decrease in net assets resulting from distributions to Common Shareholders

    (12,306,975     (19,157,149       (6,663,024     (13,154,104
 

 

 

     

 

 

 
         
Capital Share Transactions                                    

Reinvestment of common distributions

                    52,137          
 

 

 

     

 

 

 
         
Net Assets Applicable to Common Shareholders                                    

Total increase (decrease) in net assets applicable to Common Shareholders

    5,087,706        (634,973       3,403,950        724,978   

Beginning of period

    348,848,541        349,483,514          212,690,813        211,965,835   
 

 

 

     

 

 

 

End of period

  $ 353,936,247      $ 348,848,541        $ 216,094,763      $ 212,690,813   
 

 

 

     

 

 

 

Undistributed net investment income, end of period

  $ 2,837,609      $ 2,960,697        $ 3,513,227      $ 3,784,008   
 

 

 

     

 

 

 

1    Distributions for annual periods determined in accordance with federal income tax regulations.

         

 

 

See Notes to Financial Statements.      
                
40    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Statements of Changes in Net Assets     

 

 

    BlackRock MuniYield New Jersey
Fund, Inc. (MYJ)
 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:   Six Months Ended
January 31,
2016
(Unaudited)
    Year Ended
July 31,
2015
 
   
Operations                

Net investment income

  $ 6,437,548      $ 12,891,898   

Net realized gain (loss)

    36,754        (350,927

Net change in unrealized appreciation (depreciation)

    6,176,332        (1,169,028
 

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    12,650,634        11,371,943   
 

 

 

 
   
Distributions to Common Shareholders1                

From net investment income

    (6,533,080     (12,856,035
 

 

 

 
   
Net Assets Applicable to Common Shareholders                

Total increase (decrease) in net assets applicable to Common Shareholders

    6,117,554        (1,484,092

Beginning of period

    228,628,256        230,112,348   
 

 

 

 

End of period

  $ 234,745,810      $ 228,628,256   
 

 

 

 

Undistributed net investment income, end of period

  $ 4,598,728      $ 4,694,260   
 

 

 

 

1    Distributions for annual periods determined in accordance with federal income tax regulations.

   

 

See Notes to Financial Statements.      
                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    41


Statements of Cash Flows     

 

Six Months Ended January 31, 2016 (Unaudited)   BlackRock
Muni New York
Intermediate
Duration
Fund, Inc.
(MNE)
    BlackRock
MuniYield
Arizona
Fund, Inc.
(MZA)
    BlackRock
MuniYield
California
Fund, Inc.
(MYC)
    BlackRock
MuniYield
Investment
Fund
(MYF)
    BlackRock
MuniYield
New Jersey
Fund, Inc.
(MYJ)
 
         
Cash Provided by Operating Activities                                        

Net increase in net assets resulting from operations

  $ 3,963,855      $ 3,529,386      $ 17,394,681      $ 10,014,837      $ 12,650,634   

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

    14,951,551        9,069,142        45,470,328        20,972,298        21,506,851   

Purchases of long-term investments

    (15,996,015     (8,637,158     (33,382,673     (22,616,020     (22,011,296

Net proceeds from sales (purchases) of short-term securities

    257,954        (624,041     (5,582,241     2,058,299        710,872   

Amortization of premium and accretion of discount on investments

    275,286        144,038        1,449,110        452,652        455,331   

Net realized gain on investments

    (512,951     (187,032     (1,236,388     (301,174     (198,923

Net unrealized gain on investments

    (2,190,620     (1,526,062     (7,187,918     (3,747,034     (6,552,956

(Increase) decrease in assets:

         

Cash pledged for financial futures contracts

    6,000        (38,000     (108,250     38,000        37,000   

Interest receivable

    (25,087     57,959        215,246        30,265        (32,292

Prepaid expenses

    (25,461     18,045        13,919        17,169        16,920   

Other assets

                         (2,244       

Increase (decrease) in liabilities:

         

Payables:

         

Investment advisory fees

    1,317        687        338        1,145        2,751   

Officer’s and Directors’ fees

    (217     (158     (732     (367     (456

Interest expense and fees

    (790     51        (6,583     (6,562     (4,678

Other accrued expenses

    3,273        (5,509     (7,621     (9,222     (6,124

Variation margin payable on financial futures contracts

    (8,734     12,000        20,618        (37,437     (45,117
 

 

 

 

Net cash provided by operating activities

    699,361        1,813,348        17,051,834        6,864,605        6,528,517   
 

 

 

 
         
Cash Used for Financing Activities                                        

Cash distributions paid to Common Shareholders

    (1,452,396     (1,816,614     (12,306,975     (6,610,614     (6,533,080

Repayments of TOB Trust Certificates

                  (7,250,000     (258,525       

Proceeds from TOB Trust Certificates

    750,000               2,500,698        877          

Amortization of deferred offering costs

    3,035        3,266        4,443        3,657        4,563   
 

 

 

 

Net cash used for financing activities

    (699,361     (1,813,348     (17,051,834     (6,864,605     (6,528,517
 

 

 

 
         
Cash                                        

Net increase in cash

                                  

Cash at beginning of period

                                  
 

 

 

 

Cash at end of period

                                  
 

 

 

 
         
Supplemental Disclosure of Cash Flow Information                                        

Cash paid during the period for interest expense

  $ 138,843      $ 182,266      $ 909,966      $ 544,830      $ 636,245   
 

 

 

 
         
Non-cash Financing Activities                                        

Capital shares issued in reinvestment of distributions paid to Common Shareholders

         $ 103,064             $ 52,137          
 

 

 

 

 

 

See Notes to Financial Statements.      
                
42    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


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

 

    Six Months Ended
January 31,
2016
(Unaudited)
    Year Ended July 31,  
      2015     2014     2013     2012     2011  
           
Per Share Operating Performance                                   

Net asset value, beginning of period

  $ 15.37      $ 15.34      $ 14.54      $ 15.97      $ 14.51      $ 14.50   
 

 

 

 

Net investment income1

    0.33        0.68        0.69        0.72        0.74        0.87   

Net realized and unrealized gain (loss)

    0.62        0.04        0.84        (1.40     1.48        (0.03

Distributions to AMPS Shareholders from net investment income

                                (0.02     (0.10
 

 

 

 

Net increase (decrease) from investment operations

    0.95        0.72        1.53        (0.68     2.20        0.74   
 

 

 

 

Distributions to Common Shareholders from net investment income2

    (0.35     (0.69     (0.73     (0.75     (0.74     (0.73
 

 

 

 

Net asset value, end of period

  $ 15.97      $ 15.37      $ 15.34      $ 14.54      $ 15.97      $ 14.51   
 

 

 

 

Market price, end of period

  $ 14.73      $ 14.07      $ 13.64      $ 13.06      $ 15.80      $ 12.98   
 

 

 

 
           
Total Return Applicable to Common Shareholders3                                                

Based on net asset value

    6.33% 4      5.23%        11.40%        (4.38)%        15.73%        5.71%   
 

 

 

 

Based on market price

    7.21% 4      8.34%        10.27%        (13.18)%        28.00%        1.26%   
 

 

 

 
           
Ratios to Average Net Assets Applicable to Common Shareholders                                                

Total expenses

    1.65% 5      1.74%        1.80%        1.79%        1.82% 6      1.23% 6 
 

 

 

 

Total expenses after fees waived and paid indirectly

    1.65% 5      1.74%        1.80%        1.78%        1.81% 6      1.22% 6 
 

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7

    1.32% 5,8      1.59% 8      1.63% 8      1.57% 8      1.57% 6,8      1.21% 6 
 

 

 

 

Net investment income

    4.26% 5      4.38%        4.66%        4.59%        4.86% 6      6.16% 6 
 

 

 

 

Distributions to AMPS Shareholders

                                0.11%        0.71%   
 

 

 

 

Net investment income to Common Shareholders

    4.26% 5      4.38%        4.66%        4.59%        4.75%        5.45%   
 

 

 

 
           
Supplemental Data                                                

Net assets applicable to Common Shareholders, end of period (000)

  $ 67,228      $ 64,717      $ 64,566      $ 61,214      $ 67,159      $ 61,019   
 

 

 

 

AMPS outstanding at $25,000 liquidation preference, end of period (000)

                                     $ 29,632   
 

 

 

 

Asset coverage per AMPS at $25,000 liquidation preference, end of period

                                     $    76,499   
 

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 29,600      $ 29,600      $ 29,600      $ 29,600      $ 29,600          
 

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period

  $  327,123      $  318,638      $  318,130      $ 306,806      $  326,888          
 

 

 

 

Borrowings outstanding, end of period (000)

  $ 7,169      $ 6,419      $ 5,759      $ 5,538      $ 6,208      $ 1,125   
 

 

 

 

Portfolio turnover rate

    15%        15%        21%        21%        27%        23%   
 

 

 

 

 

  1  

Based on average Common Shares outstanding.

 

  2  

Distributions for annual periods determined in accordance with federal income tax regulations.

 

  3  

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.

 

  4  

Aggregate total return.

 

  5  

Annualized.

 

  6  

Does not reflect the effect of distributions to AMPS Shareholders.

 

  7  

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

 

  8  

For the six months ended January 31, 2016 and for the years ended July 31, 2015, July 31, 2014, July 31, 2013 and July 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.12%, 1.14%, 1.14%, 1.13% and 1.18%, respectively.

 

See Notes to Financial Statements.      
                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    43


Financial Highlights    BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

    Six Months Ended
January 31,
2016
(Unaudited)
    Year Ended July 31,  
      2015     2014     2013     2012     2011  
           
Per Share Operating Performance                                                

Net asset value, beginning of period

  $ 14.72      $ 14.52      $ 13.57      $ 15.12      $ 13.38      $ 13.73   
 

 

 

 

Net investment income1

    0.40        0.80        0.81        0.83        0.80        0.87   

Net realized and unrealized gain (loss)

    0.37        0.23        0.97        (1.55     1.77        (0.33

Distributions to AMPS Shareholders from net investment income

                                       (0.06
 

 

 

 

Net increase (decrease) from investment operations

    0.77        1.03        1.78        (0.72     2.57        0.48   
 

 

 

 

Distributions to Common Shareholders from net investment income2

    (0.42     (0.83     (0.83     (0.83     (0.83     (0.83
 

 

 

 

Net asset value, end of period

  $ 15.07      $ 14.72      $ 14.52      $ 13.57      $ 15.12      $ 13.38   
 

 

 

 

Market price, end of period

  $ 16.48      $ 16.90      $ 15.00      $ 13.33      $ 15.61      $ 12.83   
 

 

 

 
           
Total Return Applicable to Common Shareholders3                                                

Based on net asset value

    5.05% 4      6.97%        13.63%        (5.08)%        19.86%        3.92%   
 

 

 

 

Based on market price

    0.06% 4      18.88%        19.50%        (9.69)%        29.05%        0.09%   
 

 

 

 
           
Ratios to Average Net Assets Applicable to Common Shareholders                                                

Total expenses

    1.58% 5      1.63%        1.69%        1.66%        1.96%        1.52% 6 
 

 

 

 

Total expenses after fees waived and paid indirectly

    1.58% 5      1.63%        1.69%        1.66%        1.96%        1.52% 6 
 

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7

    1.04% 5      1.05%        1.06%        1.03%        1.58% 8      1.43% 6 
 

 

 

 

Net investment income

    5.32% 5      5.41%        5.85%        5.53%        5.62%        6.62% 6 
 

 

 

 

Distributions to AMPS Shareholders

                                       0.36%   
 

 

 

 

Net investment income to Common Shareholders

    5.32% 5      5.41%        5.85%        5.53%        5.62%        6.26%   
 

 

 

 
           
Supplemental Data                                                

Net assets applicable to Common Shareholders, end of period (000)

  $ 69,420      $ 67,708      $ 66,613      $ 62,167      $ 69,071      $ 61,086   
 

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 37,300      $ 37,300      $ 37,300      $ 37,300      $ 37,300      $ 37,300   
 

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period

  $  286,113      $  281,522      $  278,586      $  266,667      $  285,177      $  263,770   
 

 

 

 

Borrowings outstanding, end of period (000)

  $ 3,330      $ 3,330      $ 3,330      $ 3,330      $ 3,330      $ 3,000   
 

 

 

 

Portfolio turnover rate

    8%        16%        13%        16%        26%        16%   
 

 

 

 

 

  1   

Based on average Common Shares outstanding.

 

  2   

Distributions for annual periods determined in accordance with federal income tax regulations.

 

  3   

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.

 

  4   

Aggregate total return.

 

  5   

Annualized.

 

  6   

Does not reflect the effect of distributions to AMPS Shareholders.

 

  7   

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

 

  8   

For the year ended July 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.14%.

 

 

See Notes to Financial Statements.      
                
44    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Financial Highlights    BlackRock MuniYield California Fund, Inc. (MYC)

 

    Six Months Ended
January 31,
2016
(Unaudited)
    Year Ended July 31,  
      2015     2014     2013     2012     2011  
           
Per Share Operating Performance                                   

Net asset value, beginning of period

  $ 16.35      $ 16.38      $ 14.96      $ 16.97      $ 14.38      $ 14.76   
 

 

 

 

Net investment income1

    0.44        0.87        0.91        0.91        0.94        0.95   

Net realized and unrealized gain (loss)

    0.37               1.46        (1.97     2.60        (0.37
Distributions to AMPS Shareholders from net investment income                                        (0.03
 

 

 

 

Net increase (decrease) from investment operations

    0.81        0.87        2.37        (1.06     3.54        0.55   
 

 

 

 
Distributions to Common Shareholders:2            

From net investment income

    (0.44     (0.90     (0.95     (0.95     (0.95     (0.93

From net realized gain

    (0.13                                   
 

 

 

 

Total distributions to Common Shareholders

    (0.57     (0.90     (0.95     (0.95     (0.95     (0.93
 

 

 

 

Net asset value, end of period

  $ 16.59      $ 16.35      $ 16.38      $ 14.96      $ 16.97      $ 14.38   
 

 

 

 

Market price, end of period

  $ 16.12      $ 15.47      $ 14.87      $ 13.94      $ 17.31      $ 13.29   
 

 

 

 
           
Total Return Applicable to Common Shareholders3                                                

Based on net asset value

    5.12% 4      5.75%        16.87%        (6.61)%        25.45%        4.28%   
 

 

 

 

Based on market price

    8.02% 4      10.21%        13.86%        (14.68)%        38.46%        (1.49)%   
 

 

 

 
           
Ratios to Average Net Assets Applicable to Common Shareholders                                                

Total expenses

    1.43% 5      1.37%        1.43%        1.46%        1.64%        1.49% 6 
 

 

 

 

Total expenses after fees waived and paid indirectly

    1.43% 5      1.37%        1.42%        1.45%        1.64%        1.49% 6 
 

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7

    0.92% 5      0.89%        0.92%        0.92%        1.21% 8      1.16% 6 
 

 

 

 

Net investment income

    5.32% 5      5.29%        5.88%        5.39%        5.96%        6.76% 6 
 

 

 

 

Distributions to AMPS Shareholders

                                       0.18%   
 

 

 

 

Net investment income to Common Shareholders

    5.32% 5      5.29%        5.88%        5.39%        5.96%        6.58%   
 

 

 

 
           
Supplemental Data                                                

Net assets applicable to Common Shareholders, end of period (000)

  $  353,936      $  348,849      $  349,484      $ 319,144      $  361,341      $  306,280   
 

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 105,900      $ 105,900      $ 105,900      $ 105,900      $ 105,900      $ 105,900   
 

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period

  $ 434,217      $ 429,413      $ 430,013      $ 401,364      $ 441,209      $ 389,216   
 

 

 

 

Borrowings outstanding, end of period (000)

  $ 114,447      $ 119,196      $ 83,283      $ 116,775      $ 116,856      $ 108,878   
 

 

 

 

Portfolio turnover rate

    6%        32%        23%        27%        48%        33%   
 

 

 

 

 

  1  

Based on average Common Shares outstanding.

 

  2  

Distributions for annual periods determined in accordance with federal income tax regulations.

 

  3  

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.

 

  4  

Aggregate total return.

 

  5  

Annualized.

 

  6  

Does not reflect the effect of distributions to AMPS Shareholders.

 

  7  

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

 

  8  

For the year ended July 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.97%.

 

See Notes to Financial Statements.      
                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    45


Financial Highlights    BlackRock MuniYield Investment Fund (MYF)

 

   

Six Months Ended
January 31,
2016

(Unaudited)

    Year Ended July 31,  
      2015     2014     2013     2012     2011  
           
Per Share Operating Performance                                                

Net asset value, beginning of period

  $ 15.61      $ 15.56      $ 14.26      $ 16.30      $ 13.71      $ 14.26   
 

 

 

 

Net investment income1

    0.47        0.95        0.96        0.94        0.93        0.97   

Net realized and unrealized gain (loss)

    0.27        0.07        1.29        (2.03     2.60        (0.58

Distributions to AMPS Shareholders from net investment income

                                       (0.02
 

 

 

 

Net increase (decrease) from investment operations

    0.74        1.02        2.25        (1.09     3.53        0.37   
 

 

 

 

Distributions to Common Shareholders from net investment income2

    (0.49     (0.97     (0.95     (0.95     (0.94     (0.92
 

 

 

 

Net asset value, end of period

  $ 15.86      $ 15.61      $ 15.56      $ 14.26      $ 16.30      $ 13.71   
 

 

 

 

Market price, end of period

  $ 15.84      $ 14.67      $ 14.56      $ 13.55      $ 16.52      $ 13.08   
 

 

 

 
           
Total Return Applicable to Common Shareholders3                                                

Based on net asset value

    4.80% 4      6.88%        16.75%        (7.14)%        26.55%        2.97%   
 

 

 

 

Based on market price

    11.44% 4      7.34%        14.98%        (12.94)%        34.44%        (2.45)%   
 

 

 

 
           
Ratios to Average Net Assets Applicable to Common Shareholders                                                

Total expenses

    1.45% 5      1.46%        1.52%        1.55%        1.66%        1.45% 6 
 

 

 

 

Total expenses after fees waived and paid indirectly

    1.45% 5      1.46%        1.52%        1.55%        1.66%        1.45% 6 
 

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees, and amortization of offering costs7

    0.95% 5      0.94%        0.97%        0.97%        1.22% 8      1.14% 6 
 

 

 

 

Net investment income

    5.98% 5      6.00%        6.56%        5.82%        6.19%        7.22% 6 
 

 

 

 

Distributions to AMPS Shareholders

                                       0.15%   
 

 

 

 

Net investment income to Common Shareholders

    5.98% 5      6.00%        6.56%        5.82%        6.19%        7.07%   
 

 

 

 
           
Supplemental Data                                                

Net assets applicable to Common Shareholders, end of period (000)

  $  216,095      $  212,691      $  211,966      $ 194,317      $  221,778      $  186,127   
 

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 59,400      $ 59,400      $ 59,400      $ 59,400      $ 59,400      $ 59,400   
 

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period

  $ 463,796      $ 458,065      $ 456,845      $ 427,133      $ 473,363      $ 413,346   
 

 

 

 

Borrowings outstanding, end of period (000)

  $ 75,506      $ 75,764      $ 75,865      $ 85,029      $ 86,374      $ 61,634   
 

 

 

 

Portfolio turnover rate

    7%        13%        18%        33%        34%        27%   
 

 

 

 

 

  1  

Based on average Common Shares outstanding.

 

  2  

Distributions for annual periods determined in accordance with federal income tax regulations.

 

  3  

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.

 

  4  

Aggregate total return.

 

  5  

Annualized.

 

  6  

Does not reflect the effect of distributions to AMPS Shareholders.

 

  7  

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

 

  8  

For the year ended July 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.99%.

 

 

See Notes to Financial Statements.      
                
46    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Financial Highlights    BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

 

   

Six Months Ended
January 31,
2016

(Unaudited)

    Year Ended July 31,  
      2015     2014     2013     2012     2011  
           
Per Share Operating Performance                                                

Net asset value, beginning of period

  $ 16.01      $ 16.11      $ 14.92      $ 16.92      $ 14.84      $ 15.24   
 

 

 

 

Net investment income1

    0.45        0.90        0.90        0.89        0.86        0.92   

Net realized and unrealized gain (loss)

    0.43        (0.10     1.21        (1.94     2.11        (0.41

Distributions to VRDP Shareholders from net realized gain

                         (0.00 )2               

Distributions to AMPS Shareholders from net investment income

                                       (0.03
 

 

 

 

Net increase (decrease) from investment operations

    0.88        0.80        2.11        (1.05     2.97        0.48   
 

 

 

 

Distributions to Common Shareholders:3

           

From net investment income

    (0.46     (0.90     (0.89     (0.89     (0.89     (0.88

From net realized gain

                  (0.03     (0.06              
 

 

 

 

Total distributions to Common Shareholders

    (0.46     (0.90     (0.92     (0.95     (0.89     (0.88
 

 

 

 

Net asset value, end of period

  $ 16.43      $ 16.01      $ 16.11      $ 14.92      $ 16.92      $ 14.84   
 

 

 

 

Market price, end of period

  $ 15.78      $ 14.72      $ 14.67      $ 13.74      $ 17.07      $ 13.53   
 

 

 

 
           
Total Return Applicable to Common Shareholders4                                                

Based on net asset value

    5.75% 5      5.52%        15.27%        (6.51)%        20.72%        3.55%   
 

 

 

 

Based on market price

    10.47% 5      6.54%        13.99%        (14.66)%        33.59%        (5.28)%   
 

 

 

 
           
Ratios to Average Net Assets Applicable to Common Shareholders                                                

Total expenses

    1.48% 6      1.50%        1.57%        1.48%        1.61%        1.26% 7 
 

 

 

 

Total expenses after fees waived and paid indirectly

    1.48% 6      1.50%        1.57%        1.48%        1.60%        1.25% 7 
 

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs8

    0.93% 6      0.93%        0.95%        0.92%        1.28% 9      1.14% 7 
 

 

 

 

Net investment income

    5.59% 6      5.51%        5.89%        5.32%        5.41%        6.26% 7 
 

 

 

 

Distributions to AMPS Shareholders

                                       0.23%   
 

 

 

 

Net investment income to Common Shareholders

    5.59% 6      5.51%        5.89%        5.32%        5.41%        6.03%   
 

 

 

 
           
Supplemental Data                                                

Net assets applicable to Common Shareholders, end of period (000)

  $ 234,746      $ 228,628      $ 230,112      $ 213,099      $ 240,759      $ 211,121   
 

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 102,200      $ 102,200      $ 102,200      $ 102,200      $ 102,200      $ 102,200   
 

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period

  $  329,693      $  323,707      $  325,159      $  308,511      $  335,577      $  306,576   
 

 

 

 

Borrowings outstanding, end of period (000)

  $ 39,554      $ 39,554      $ 39,554      $ 39,555      $ 26,813      $ 10,454   
 

 

 

 

Portfolio turnover rate

    6%        11%        19%        7%        23%        18%   
 

 

 

 

 

  1   

Based on average Common Shares outstanding.

 

  2   

Amount is greater than $(0.005) per share.

 

  3   

Distributions for annual periods determined in accordance with federal income tax regulations.

 

  4   

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.

 

  5   

Aggregate total return.

 

  6   

Annualized.

 

  7   

Does not reflect the effect of distributions to AMPS Shareholders.

 

  8   

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

 

  9   

For the year ended July 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.93%.

 

See Notes to Financial Statements.      
                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    47


Notes to Financial Statements (Unaudited)     

 

1. Organization:

The following are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as closed-end management investment companies and are referred to herein collectively as the “Funds”, or individually, a “Fund”:

 

Fund Name   Herein Referred To As      Organized    Diversification
Classification
 

BlackRock Muni New York Intermediate Duration Fund, Inc.

    MNE       Maryland      Non-diversified   

BlackRock MuniYield Arizona Fund, Inc.

    MZA       Maryland      Non-diversified   

BlackRock MuniYield California Fund, Inc.

    MYC       Maryland      Non-diversified   

BlackRock MuniYield Investment Fund

    MYF       Massachusetts      Non-diversified   

BlackRock MuniYield New Jersey Fund, Inc.

    MYJ       Maryland      Non-diversified   

The Boards of Directors of the Funds are collectively referred to throughout this report as the “Board of Directors” or the “Board,” and the directors thereof are collectively referred to throughout this report as “Directors.” The Funds determine and make available for publication the 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 closed-end funds referred to as the Closed-End Complex.

2. Significant Accounting Policies:

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., financial futures contracts) or certain borrowings (e.g., TOB transactions) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments or borrowings. Doing so allows the investment or borrowing to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.

Distributions: Distributions from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend date. The character and timing of distributions are determined in accordance with 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 independent Directors (“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 other BlackRock Closed-End Funds 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 other BlackRock Closed-End Funds.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund, if applicable. Deferred compensation liabilities are included in officer’s and directors’ 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.

Recent Accounting Standard: In April 2015, the Financial Accounting Standards Board issued guidance to simplify the presentation of debt issuance costs in financial statements. Under the new guidance, a Fund is required to present such costs in the Statements of Assets and Liabilities as a direct deduction from the carrying value of the related debt liability rather than as an asset.

The standard is effective for financial statements with fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Although still evaluating the potential impacts of this new guidance, management expects that the effects of the Funds’ adoption will be limited to the reclassification of any unamortized debt issuance costs on the Statements of Assets and Liabilities and the modification of related accounting policy disclosures in the Notes to Financial Statements.

 

                
48    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Notes to Financial Statements (continued)     

 

Indemnifications: In the normal course of business, a Fund enters into contracts that contain a variety of representations that provide general indemnification. A Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to a Fund are charged to that Fund. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

The Funds have an arrangement with their custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statements of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

3. Investment Valuation and Fair Value Measurements:

Investment Valuation Policies: The Funds’ investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the report date). U.S. GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds determine the fair values of their financial instruments using independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Funds for all financial instruments.

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

 

 

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

 

 

Investments in open-end U.S. mutual funds are valued at NAV each business day.

 

 

Financial futures contracts traded on exchanges are valued at their last sale price.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such instruments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

 

 

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access

 

 

Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including each Fund’s own assumptions used in determining the fair value of investments and derivative 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. The significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments are typically categorized as Level 3. The fair value hierarchy for each Fund’s investments and derivative financial instruments has been included in the Schedules of Investments.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    49


Notes to Financial Statements (continued)     

 

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with each Fund’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. Securities and Other Investments:

Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.

Forward Commitments and When-Issued Delayed Delivery Securities: Certain Funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. A Fund may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, a Fund may be required to pay more at settlement than the security is worth. In addition, a Fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, a Fund’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

Municipal Bonds Transferred to TOB Trusts: Certain Funds leverage their assets through the use of TOB transactions. The Funds transfer municipal bonds into a special purpose trust (a “TOB Trust”). A TOB Trust generally 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 generally issued to the participating funds that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest rates that generally 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 generally 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 advisor may also contribute municipal bonds to a TOB Trust into which each Fund has contributed bonds. If multiple BlackRock advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residual will be shared among the funds ratably in proportion to their participation in the TOB Trust.

TOB Trusts are generally 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 may be purchased by the Liquidity Provider and are usually remarketed by a Remarketing Agent, which is typically an affiliated entity of the Liquidity Provider. The Remarketing Agent may also purchase the tendered TOB Trust Certificates for its own account in the event of a failed remarketing.

The TOB Trust may be collapsed without the consent of a Fund, upon the occurrence of tender option termination events (“TOTEs”) or mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs include the bankruptcy or default of the issuer of the municipal bonds held in the TOB Trust, a substantial downgrade in the credit quality of the issuer of the municipal bonds held in the TOB Trust, failure of any scheduled payment of principal or interest on the municipal bonds, and/or a judgment or ruling that interest on the municipal bond is subject to federal income taxation. MTEs may include, among other things, a failed remarketing of the TOB Trust Certificates, the inability of the TOB Trust to obtain renewal of the liquidity support agreement and a substantial decline in the market value of the municipal bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, the 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 (defined below). In the case of an MTE, after the payment of fees, the TOB Trust Certificate holders would be paid before the TOB Residual holders (i.e., the Funds). In contrast, in the case of a TOTE, after payment of fees, the TOB Trust Certificate holders and the TOB Residual holders would be paid pro rata in proportion to the respective face values of their certificates. During the six months ended January 31, 2016, no TOB Trusts in which a Fund participated were terminated without the consent of a Fund.

While a Fund’s investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they generally do not allow a Fund to borrow money for purposes of making investments. The Funds’ management believes that a Fund’s restrictions on borrowings do not apply to the secured borrowings. 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. 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 to purchase tendered TOB Trust Certificates would be shown as Loan for TOB Trust Certificates.

Volcker Rule Impact: On December 10, 2013, regulators published final rules implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”), which precludes banking entities and their affiliates from sponsoring and investing in TOB Trusts. Banking

 

                
50    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Notes to Financial Statements (continued)     

 

entities subject to the Volcker Rule were required to fully comply by July 21, 2015, with respect to investments in and relationships with TOB Trusts established after December 31, 2013 (“Non-Legacy TOB Trusts”), and by July 21, 2016, with respect to investments in and relationships with TOB Trusts established prior to December 31, 2013 (“Legacy TOB Trusts”).

As a result, a new structure for TOB Trusts has been designed to ensure that no banking entity is sponsoring the TOB Trust. Specifically, a Fund will establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain responsibilities that previously belonged to a third party bank will be performed by, or on behalf of, the Funds. The Funds have restructured any Non-Legacy TOB Trusts and are in the process of restructuring Legacy TOB Trusts in conformity with regulatory guidelines. Until all restructurings are completed, a Fund may, for a period of time, hold TOB Residuals in both Legacy TOB Trusts and non-bank sponsored restructured TOB Trusts.

Under the new TOB Trust structure, the Liquidity Provider or Remarketing Agent will no longer purchase the tendered TOB Trust Certificates even in the event of failed remarketing. This may increase the likelihood that a TOB Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Trust Certificates. 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 the number of days the loan is outstanding.

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 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 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 comply with the Volcker Rule, a Fund incurred non-recurring, legal and restructuring fees, which are recorded as interest expense, fees and amortization of deferred offering costs in the Statements of Operations.

For the six months ended January 31, 2016, the following table is a summary of the Funds’ TOB Trusts:

 

     Underlying
Municipal
Bonds
Transferred to
TOB Trusts1
     Liability for
TOB Trust
Certificates2
     Range of
Interest Rates
     Average TOB
Trust
Certificates
Outstanding
     Daily
Weighted
Average
Interest Rate
 

MNE

  $ 13,900,311       $ 7,169,171         0.01% - 0.04%       $ 6,492,540         0.62%   

MZA

  $ 7,528,689       $ 3,330,000         0.01% - 0.02%       $ 3,330,000         0.56%   

MYC

  $ 252,697,300       $ 114,447,027         0.01% - 0.26%       $ 117,021,365         0.66%   

MYF

  $ 148,831,515       $ 75,506,101         0.01% - 0.26%       $ 75,545,544         0.63%   

MYJ

  $ 69,251,690       $ 39,553,519         0.01% - 0.26%       $ 39,553,519         0.74%   

 

  1   

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 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 Residual holders, would be responsible for reimbursement of any payments of principal and interest made by the credit enhancement provider. The municipal bonds transferred to TOB Trusts with a credit enhancement are identified in the Schedules of Investments including the maximum potential amounts owed by the Funds.

 

  2   

The Funds may invest in TOB Trusts on either a non-recourse or recourse basis. When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to make a payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the municipal bonds held in the TOB Trust and then fund the balance, if any, of the amount owed under the liquidity facility over the liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB Trust on a recourse basis, a Fund will usually enter into a reimbursement agreement with the Liquidity Provider where a Fund is required to reimburse the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if a Fund invests in a recourse TOB Trust, a Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a Fund at January 31, 2016, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by a Fund at January 31, 2016.

5. Derivative Financial Instruments:

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to manage economically their exposure to certain risks such as interest rate risk. These contracts may be transacted on an exchange or over-the-counter (“OTC”).

Financial Futures Contracts: Certain Funds invest in long and/or short positions in financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are 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 the particular contract, financial futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    51


Notes to Financial Statements (continued)     

 

Upon entering into a financial 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. Securities deposited as initial margin are designated on the Schedules of Investments and cash deposited, if any, is recorded on the Statements of Assets and Liabilities as cash pledged for financial futures contracts. 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 value of the contract. Such receipts or payments are known as variation margin. Variation margin is recorded by the Funds as unrealized appreciation (depreciation) and, if applicable, as a receivable or payable for variation margin in the Statements of Assets and Liabilities.

When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest or foreign currency exchange rates and the underlying assets.

6. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock, Inc. (“BlackRock”) for 1940 Act purposes.

Investment Advisory Fees

Each Fund entered into an Investment Advisory Agreement with the Manager, the Funds’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund. For such services, each Fund pays the Manager a monthly fee based on a percentage of each Fund’s average daily net assets plus the proceeds of any debt securities or outstanding borrowings used for leverage at the following annual rates:

 

     MNE      MZA      MYC      MYF      MYJ  

Investment advisory fees

    0.55%         0.50%         0.50%         0.50%         0.50%   

Average daily net assets are the average daily value of each Fund’s total assets minus its total accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of preferred shares).

The Manager voluntarily 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. These amounts are included in fees waived by the Manager in the Statements of Operations. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with each Fund’s investments in other affiliated investment companies, if any. For the six months ended January 31, 2016, the amounts waived were as follows:

 

     MNE      MZA      MYF      MYJ  

Amount waived

  $ 129       $ 9       $ 4       $ 116   

Officers and Directors Fees

Certain officers and/or directors of the Funds are officers and/or directors 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 Officer and Directors in the Statements of Operations.

7. Purchases and Sales:

For the six months ended January 31, 2016, purchases and sales of investments excluding short-term securities, were as follows:

 

     MNE      MZA      MYC      MYF      MYJ  

Purchases

  $ 17,179,265       $ 8,637,158       $ 35,807,503       $ 23,812,045       $ 22,011,296   

Sales

  $ 14,951,551       $ 9,142,647       $ 45,470,328       $ 20,496,510       $ 21,506,851   

8. Income Tax Information:

It is the Funds’ 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 their taxable income to their shareholders. Therefore, no 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 remains open for each of the four years ended July 31, 2015. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of January 31, 2016, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

 

                
52    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Notes to Financial Statements (continued)     

 

As of period end, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

 

Expires July 31,   MNE      MZA      MYF      MYJ  

No expiration date1

  $ 28,506       $ 951,858       $ 6,628,674       $ 4,001,488   

2018

    750,672         816,347         7,205,475           

2019

            68,648                   
 

 

 

 

Total

  $ 779,178       $ 1,836,853       $ 13,834,149       $ 4,001,488   
 

 

 

 

 

  1   

Must be utilized prior to losses subject to expiration.

As of period end, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

     MNE      MZA      MYC      MYF      MYJ  

Tax cost

  $ 89,309,040       $ 96,765,717       $ 410,814,597       $ 234,702,621       $ 305,358,206   
 

 

 

 

Gross unrealized appreciation

  $ 8,084,785       $ 9,367,314       $ 48,664,790       $ 38,319,475       $ 30,646,758   

Gross unrealized depreciation

    (317,771              (481,707      (634,970      (1,172,349
 

 

 

 

Net unrealized appreciation

  $ 7,767,014       $ 9,367,314       $ 48,183,083       $ 37,684,505       $ 29,474,409   
 

 

 

 

9. Principal Risks:

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

Inventories of municipal bonds held by brokers and dealers may decrease, which would lessen their ability to make a market in these securities. Such a reduction in market making capacity could potentially decrease a Fund’s ability to buy or sell bonds. As a result, a Fund may sell a security at a lower price, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative impact on performance. If a Fund needed to sell large blocks of bonds, those sales could further reduce the bonds’ prices and impact performance.

In the normal course of business, certain Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer to meet all its obligations, including the ability to pay principal and interest when due (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers of securities owned by the Funds. Changes arising from the general economy, the overall market and local, regional or global political and/or social instability, as well as currency, interest rate and price fluctuations, may also affect the securities’ value.

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.

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.

The new TOB Trust structure resulting from the compliance with Volcker Rule remains untested. It is possible that regulators could take positions that could limit the market for such newly structured TOB Trust transactions or the Funds’ ability to hold TOB Residuals. Under the new TOB Trust structure, the Funds will have certain additional duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance, securities law and operational risks.

There can be no assurance that the Funds can successfully enter into restructured TOB Trust transactions in order to refinance their existing TOB Residual holdings prior to the compliance date for the Volcker Rule, which may require that the Funds unwind existing TOB Trusts. There can be no assurance that alternative forms of leverage will be available to the Funds and any alternative forms of leverage may be more or less advantageous to the Funds than existing TOB leverage.

Should short-term interest rates rise, the Funds’ investments in TOB transactions 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 SEC and various federal banking and housing agencies recently adopted credit risk retention rules for securitizations (the “Risk Retention Rules”), which take effect in December 2016. 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 Trust transactions constitute an important component of the municipal bond market. Accordingly, implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments could adversely affect the Funds. The ultimate impact of these rules on the TOB market and the overall municipal market is not yet certain.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    53


Notes to Financial Statements (continued)     

 

Counterparty Credit Risk: Similar to issuer 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. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: MNE, MZA, MYC and MYJ invest a substantial amount of their assets in issuers located in a single state or limited number of states. This may subject each Fund to the risk that economic, political or social issues impacting a particular state or group of states could have an adverse and disproportionate impact on the income from, or the value or liquidity of, the Funds’ respective portfolios. Investment percentages in specific states or U.S. territories are presented in the Schedules of Investments.

As of period end, MYC invested a significant portion of its assets in securities in the county, city, special district, school district and transportation sectors. Changes in economic conditions affecting such sectors would have a greater impact on the Funds and could affect the value, income and/or liquidity of positions in such securities.

Certain Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

10. Capital Share Transactions:

Each Fund is authorized to issue 200 million shares (unlimited number of shares for MYF), all of which were initially classified as Common Shares. The par value for each Fund’s Common Shares is $0.10. The par value for each Fund’s Preferred Shares outstanding is $0.10 except for MYF, which is $0.05. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without approval of Common Shareholders. MYF is authorized to issue 1 million Preferred Shares, including AMPS.

Common Shares

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

 

     MNE      MZA      MYC      MYF      MYJ  

Six months ended January 31, 2016

            6,344                 3,344           

Year ended July 31, 2015

            13,508                           

Preferred Shares

Each Fund’s Preferred Shares rank prior to the Fund’s Common Shares as to the payment of dividends by the Fund and distribution of assets upon dissolution or liquidation of a Fund. The 1940 Act prohibits the declaration of any dividend on a Fund’s Common Shares or the repurchase of a Fund’s Common Shares if a Fund fails to maintain the asset coverage of at least 200% of the liquidation preference of the outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instruments, a Fund is restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with the Preferred Shares or repurchasing such shares if a 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 agencies rating the Preferred Shares.

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Directors for each Fund. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would

 

                
54    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Notes to Financial Statements (continued)     

 

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

MNE, MZA, MYC, MYF and MYJ (collectively, the “VRDP Funds”), have issued Series W-7 VRDP Shares, $100,000 liquidation value per share, in privately negotiated offerings. The VRDP Shares were offered 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 are currently in a special rate period, each as described below.

As of period end, the VRDP Shares outstanding of each Fund were as follows:

 

     Issue Date      Shares Issued      Aggregate Principal      Maturity Date  

MNE

    9/15/11         296       $ 29,600,000         10/01/41   

MZA

    5/19/11         373       $ 37,300,000         6/01/41   

MYC

    5/19/11         1,059       $ 105,900,000         6/01/41   

MYF

    5/19/11         594       $ 59,400,000         6/01/41   

MYJ

    4/21/11         1,022       $ 102,200,000         5/01/41   

Redemption Terms: Each 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, each VRDP Fund is required to begin to segregate liquid assets with the Fund’s custodian to fund the redemption. In addition, VRDP Funds are required to redeem certain of its outstanding VRDP Shares if it fails to maintain 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 VRDP Funds. The redemption price per VRDP Share is equal to the liquidation value per share plus any outstanding unpaid dividends. In the event of an optional redemption of the VRDP Shares prior to the initial termination date of the fee agreement, VRDP Funds must pay the respective liquidity provider fees on such redeemed VRDP Shares for the remaining term of the fee agreement up to the initial termination date.

Liquidity Feature: Each VRDP Fund entered into a fee agreement with the respective liquidity provider that requires a per annum liquidity fee payable to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of Operations.

The fee agreements between each of MZA, MYC, MYF and MYJ and the liquidity provider are for a 364 day term and are scheduled to expire on July 7, 2016 unless renewed or terminated in advance.

The fee agreement between MNE and the liquidity provider was scheduled to expire on December 4, 2015. In October 2015, in connection with the commencement of a special rate period (as described below), MNE extended the fee agreement to October 2018 unless renewed or terminated in advance.

In the event the fee agreement is not renewed or is terminated in advance, and the VRDP Funds do not enter into a fee 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 fee agreement. In the event of such mandatory purchase, the VRDP Funds are required to redeem the VRDP Shares six months after the purchase date. Immediately after such mandatory purchase, the VRDP Funds are required to begin to segregate liquid assets with their custodian to fund the redemption. There is no assurance the VRDP Funds will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

Remarketing: The VRDP Funds may incur remarketing fees of 0.10% on the aggregate principal amount of all the VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. No remarketing fees are incurred during any special rate period (as described below).

Dividends: 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. 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. As of period end, the VRDP Shares were assigned a long-term rating of Aa2 for MNE, MZA, MYC and MYJ and Aa1 for MYF from Moody’s. The VRDP Shares were assigned a long-term rating of AAA from Fitch.

For the six months ended January 31, 2016, the annualized dividend rates for the VRDP Shares were as follows:

 

     MNE      MZA      MYC      MYF      MYJ  

Rate

    0.55%         0.91%         0.91%         0.91%         0.91%   

Financial Reporting: The VRDP Shares are considered debt of the issuer; therefore, the liquidation value, which approximates fair value, of the VRDP Shares is recorded as a liability in the Statements of Assets and Liabilities. 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.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    55


Notes to Financial Statements (concluded)     

 

Ratings: The short-term ratings on the 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, Fitch and/or S&P. 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 related based upon either short-term rating.

Special Rate Period: On June 21, 2012, MZA, MYC, MYF and MYJ commenced a three-year term ending June 24, 2015 (“special rate period”) with respect to their VRDP Shares. In May 2015, the special rate period was extended to June 22, 2016. The implementation of the special rate period resulted in a mandatory tender of the VRDP Shares prior to the commencement of the special rate period. The mandatory tender event was not the result of a failed remarketing. The short-term ratings on the VRDP Shares for the VRDP Funds were withdrawn by Moody’s, Fitch and/or S&P at the commencement of the special rate period.

If MZA, MYC, MYF and MYJ redeem the VRDP Shares on a date that is one year or more before the end of the special rate period and the VRDP Shares are rated above A1/A by Moody’s and Fitch, respectively, then such redemption is subject to a redemption premium payable to the holder of the VRDP Shares based on the time remaining in the special rate period, subject to certain exceptions for redemptions that are required to maintain minimum asset coverage requirements. Prior to June 22, 2016, the holder of the VRDP Shares and MZA, MYC, MYF and MYJ may mutually agree to extend the special rate period. If the special rate period is not extended, the VRDP Shares will revert back to remarketable securities and will be remarketed and available for purchase by qualified institutional investors.

On October 22, 2015, MNE commenced a term ending April 18, 2018 (“special rate period”) with respect to its VRDP Shares. The implementation of the special rate period resulted in a mandatory tender of the VRDP Shares prior to the commencement of the special rate period. The mandatory tender event was not the result of a failed remarketing.

If MNE redeems the VRDP Shares on a date that is one year or more before the end of the special rate period and the VRDP Shares are rated above A1/A by Moody’s and Fitch, respectively, then such redemption is subject to a redemption premium payable to the holder of the VRDP Shares based on the time remaining in the special rate period, subject to certain exceptions for redemptions that are required to maintain minimum asset coverage requirements. Prior to April 18, 2018, the holder of the VRDP Shares and MNE may mutually agree to extend the special rate period. If the special rate period is not extended, the VRDP Shares will revert back to remarketable securities and will be remarketed and available for purchase by qualified institutional investors.

For the six months ended January 31, 2016, VRDP Shares issued and outstanding of each Fund remained constant.

Offering Costs: The Funds incurred costs in connection with the issuance of VRDP Shares, which were recorded as a deferred charge and will be amortized over the 30-year life of the VRDP Shares with the exception of upfront fees paid to the liquidity provider which 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.

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 paid a net investment income dividend in the following amounts per share on March 1, 2016 to shareholders of record on February 16, 2016:

 

     Common
Dividend
Per Share
 

MNE

  $ 0.0575   

MZA

  $ 0.0695   

MYC

  $ 0.0740   

MYF

  $ 0.0815   

MYJ

  $ 0.0750   

Additionally, the Funds declared a net investment income dividend on March 1, 2016 payable to Common Shareholders of record on March 15, 2016 for the same amounts noted above, except the amount for MNE was $0.0533.

The dividends declared on VRDP Shares for the period February 1, 2016 to February 29, 2016 for the Funds were as follows:

 

     Preferred
Shares
     Series     

Dividends

Declared

 

MNE

    VRDP Shares         W-7       $ 21,343   

MZA

    VRDP Shares         W-7       $ 26,895   

MYC

    VRDP Shares         W-7       $ 76,358   

MYF

    VRDP Shares         W-7       $ 42,830   

MYJ

    VRDP Shares         W-7       $ 73,690   

 

                
56    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Officers and Directors     

 

Richard E. Cavanagh, Chair of the Board and Director

Karen P. Robards, Vice Chair of the Board, Chairperson of the Audit Committee and Director

Michael J. Castellano, Director and Member of the Audit Committee

Frank J. Fabozzi, Director and Member of the Audit Committee

Jerrold B. Harris, Director

R. Glenn Hubbard, Director

W. Carl Kester, Director and Member of the Audit Committee

Barbara G. Novick, Director

John M. Perlowski, Director, President and Chief Executive Officer

Jonathan Diorio, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Charles Park, Chief Compliance Officer

Janey Ahn, Secretary

 

 

Effective September 18, 2015, Robert W. Crothers resigned as a Vice President of the Funds and Jonathan Diorio became a Vice President of the Funds.

Effective December 31, 2015, Kathleen F. Feldstein and James T. Flynn retired as Directors of the Funds.

Effective March 1, 2016, Catherine A. Lynch was appointed to serve as a Director and a Member of the Audit Committee of the Funds.

 

         

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

 

Accounting Agent and Custodian

State Street Bank and
Trust Company

Boston, MA 02110

 

VRDP Tender and Paying Agent

The Bank of New York Mellon

New York, NY 10289

 

Legal Counsel

Skadden, Arps, Slate,

Meagher & Flom LLP

Boston, MA 02116

 

Address of the Funds 100 Bellevue Parkway Wilmington, DE 19809

  Transfer Agent Computershare Trust
Company, N.A.
Canton, MA 02021
 

VRDP Remarketing Agent

Barclays Capital, Inc.1

New York, NY 10019

 

Citigroup Global Markets Inc.2 New York, NY 10179

 

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

 
   

VRDP Liquidity Provider

Barclays Bank PLC1

New York, NY 10019

 

Citibank, N.A.2

New York, NY 10179

   

 

  1   

For MNE.

 

  2   

For all Funds except MNE.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    57


Additional Information     

 

Fund Certification

Certain 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.

 

Dividend Policy

Each Fund’s dividend policy is to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In order to provide shareholders with a more stable level of distributions, the Funds may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the distributions paid by the Funds for any particular month may be more or less than the amount of net investment income earned by the Funds during such month. The Funds’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

 

General Information

The Funds do not make available copies of their Statements of Additional Information because the Funds’ shares are not continuously offered, which means that the Statement of Additional Information of each Fund has not been updated after completion of the respective Fund’s offerings and the information contained in each Fund’s Statement of Additional Information may have become outdated.

During the period, there were no material changes in the Funds’ investment objectives or policies or 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 or in the principal risk factors associated with investment in the Funds. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Funds’ portfolios.

Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. 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.

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 Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Householding

The Funds will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (800) 882-0052.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Funds’ Forms N-Q may also be obtained upon request and without charge by calling (800) 882-0052.

 

                
58    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Additional Information (concluded)     

 

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 882-0052; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com; or by calling (800) 882-0052; and (2) on the SEC’s website at http://www.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 http://www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Funds. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

 

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    59


This report is intended for current holders. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Funds have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in the short-term interest rates may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

 

LOGO

 

MY5-1/16-SAR    LOGO


Item 2 – Code of Ethics – Not Applicable to this semi-annual report

 

Item 3 – Audit Committee Financial Expert – Not Applicable to this semi-annual report

 

Item 4 – Principal Accountant Fees and Services – Not Applicable to this semi-annual report

 

Item 5 – Audit Committee of Listed Registrants – Not Applicable to this semi-annual report

 

Item 6 – Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

 

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report

 

Item 8 – Portfolio Managers of Closed-End Management Investment Companies
  (a) Not Applicable to this semi-annual report
  (b) As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR.

 

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

 

Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

 

Item 11 – Controls and Procedures

(a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12 – Exhibits attached hereto

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

(a)(2) – Certifications – Attached hereto

(a)(3) – Not Applicable

(b) – Certifications – Attached hereto

 

2


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 California Fund, Inc.

 

By:

 

/s/ John M. Perlowski                    

  John M. Perlowski
 

Chief Executive Officer (principal executive officer) of

BlackRock MuniYield California Fund, Inc.

Date: April 1, 2016

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 California Fund, Inc.

Date: April 1, 2016

 

By:

 

/s/ Neal J. Andrews                        

  Neal J. Andrews
 

Chief Financial Officer (principal financial officer) of

BlackRock MuniYield California Fund, Inc.

Date: April 1, 2016

 

3