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 811-06500
Name of Fund: BlackRock MuniYield New York Quality Fund, Inc. (MYN)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield New York Quality 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: 07/31/2015
Date of reporting period: 01/31/2015
Item 1 – Report to Stockholders
JANUARY 31, 2015
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SEMI-ANNUAL REPORT (UNAUDITED) | | | |  |
BlackRock MuniHoldings Quality Fund II, Inc. (MUE)
BlackRock MuniYield California Quality Fund, Inc. (MCA)
BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM)
BlackRock MuniYield New York Quality Fund, Inc. (MYN)
BlackRock MuniYield Quality Fund III, Inc. (MYI)
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| Not FDIC Insured • May Lose Value • No Bank Guarantee |
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| 2 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
Dear Shareholder,
Market volatility, while remaining below the long-term average level, increased over the course of 2014 and into 2015, driven largely by higher valuations in risk assets (such as equities and high yield bonds), escalating geopolitical risks, uneven global economic growth and expectations around policy moves from the world’s largest central banks. Surprisingly, U.S. interest rates trended lower through the period even as the U.S. Federal Reserve (the “Fed”) gradually reduced its bond buying program, which ultimately ended in October.
The first half of 2014 was generally a strong period for most asset classes; however, volatility ticked up in the summer as geopolitical tensions intensified in Ukraine and the Middle East and investors feared that better U.S. economic indicators may compel the Fed to increase short-term interest rates sooner than previously anticipated. Global credit markets tightened as the U.S. dollar strengthened versus other currencies, ultimately putting a strain on investor flows, and financial markets broadly weakened in the third quarter.
Several themes dominated the markets in the fourth quarter that resulted in the strong performance of U.S. markets versus other areas of the world. Economic growth strengthened considerably in the United States while the broader global economy showed signs of slowing. The European Central Bank and the Bank of Japan took aggressive measures to stimulate growth while the Fed moved toward tighter policy, causing further strengthening in the U.S. dollar. Fixed income investors piled into U.S. Treasuries where yields, although persistently low, were comparatively higher than yields on international sovereign debt, while equity investors favored the relative stability of U.S.-based companies amid rising global risks.
Oil prices, which had been gradually declining since mid-summer, suddenly plummeted in the fourth quarter due to a global supply-and-demand imbalance. Energy stocks sold off sharply and oil-exporting economies struggled, mainly within emerging markets. Conversely, the consumer sectors benefited from lower oil prices as savings at the gas pumps freed up discretionary income for other goods and services.
These trends shifted at the beginning of 2015. U.S. equity markets starkly underperformed international markets due to stretched valuations and uncertainty around the Fed’s pending rate hike. In addition, the stronger U.S. dollar began to hurt earnings of large cap companies. The energy sector continued to struggle, although oil prices showed signs of stabilizing toward the end of January as suppliers became more disciplined in their exploration and production efforts.
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,
Rob Kapito
President, BlackRock Advisors, LLC
Rob Kapito
President, BlackRock Advisors, LLC
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| Total Returns as of January 31, 2015 | |
| | | 6-month | | | 12-month | |
U.S. large cap equities
(S&P 500® Index) | | | 4.37 | % | | | 14.22 | % |
U.S. small cap equities
(Russell 2000® Index) | | | 4.72 | | | | 4.41 | |
International equities
(MSCI Europe, Australasia,
Far East Index) | | | (6.97 | ) | | | (0.43 | ) |
Emerging market equities
(MSCI Emerging Markets
Index) | | | (9.05 | ) | | | 5.23 | |
3-month Treasury bills
(BofA Merrill Lynch
3-Month U.S. Treasury
Bill Index) | | | 0.01 | | | | 0.03 | |
U.S. Treasury securities
(BofA Merrill Lynch
10-Year U.S. Treasury Index) | | | 9.29 | | | | 12.25 | |
U.S. investment-grade bonds
(Barclays U.S.
Aggregate Bond Index) | | | 4.36 | | | | 6.61 | |
Tax-exempt municipal
bonds (S&P Municipal
Bond Index) | | | 4.51 | | | | 8.81 | |
U.S. high yield bonds
(Barclays U.S. Corporate
High Yield 2% Issuer
Capped Index) | | | (0.89 | ) | | | 2.41 | |
| Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. | |
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| | THIS PAGE NOT PART OF YOUR FUND REPORT | | | | 3 |
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| Municipal Market Overview | | |
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| For the Reporting Period Ended January 31, 2015 | | |
Municipal Market Conditions
Municipal bonds generated strong performance in 2014, thanks to a favorable supply-and-demand environment and declining interest rates. (Bond prices rise as rates fall.) Investor demand for municipal bonds was strong from the start of the year when U.S. economic data softened amid one of the harshest winters on record. Interest rates proceeded to move lower even as the U.S. Federal Reserve (the “Fed”) scaled back its open-market bond purchases. This surprising development, coupled with reassurance from the Fed that short-term rates would remain low for a considerable amount of time, resulted in strong demand for fixed income investments in 2014, with municipal bonds being one of the stronger performing sectors for the year. For the 12-month period ended January 31, 2015, municipal bonds garnered net inflows of approximately $32 billion (based on data from the Investment Company Institute).
From a historical perspective, total new issuance for the 12 months ended January 31, remained relatively strong at $342 billion (slightly higher than the $326 billion issued in the prior 12-month period). A noteworthy portion of new supply during this period was attributable to refinancing activity (roughly 45%) as issuers took advantage of lower interest rates to reduce their borrowing costs.
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S&P Municipal Bond Index |
Total Returns as of January 31, 2015 |
6 months: 4.51% |
12 months: 8.81% |
A Closer Look at Yields
From January 31, 2014 to January 31, 2015, yields on AAA-rated 30-year municipal bonds decreased by 135 basis points (“bps”) from 3.85% to 2.50%, while 10-year rates decreased 81 bps from 2.53% to 1.72% and 5-year rates decreased 16 bps from 1.10% to 0.94% (as measured by Thomson Municipal Market Data). Overall, the municipal yield curve remained relatively steep over the 12-month period even as the spread between 2-and 30-year maturities flattened by 146 bps and the spread between 2- and 10-year maturities flattened by 92 bps.
During the same time period, U.S. Treasury rates fell by 136 bps on 30-year bonds, 99 bps on 10-year bonds and 32 bps in 5-year issues. Accordingly, tax-exempt municipal bond performance was generally in line with Treasuries on both the long and short ends of the curve, while lagging in the intermediate portion of the curve as a result of increased supply. Municipals modestly outperformed Treasuries in the very short end of the curve as expectations around future Fed policy changes pressured short-term U.S. Treasury prices. Positive performance on the long end of the curve 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. The municipal market continues to be an attractive avenue for investors seeking yield in the low-rate environment. However, opportunities have not been as broad-based as in 2011 and 2012, warranting a more flexible approach to security selection and yield curve positioning going forward.
Financial Conditions of Municipal Issuers Continue to Improve
Following an extended period of nation-wide austerity and de-leveraging as states sought to balance their budgets, solid revenue growth exceeding pre-recession levels coupled with the elimination of more than 625,000 jobs in recent years have put state and local governments in a better financial position. Many local municipalities, however, continue to face increased health care and pension costs passed down from the state level. BlackRock maintains the view that municipal bond defaults will remain minimal and in the periphery, and that the overall market is fundamentally sound. We continue to advocate careful credit research and believe that a thoughtful approach to structure and security selection remain imperative amid uncertainty in a modestly improving economic environment.
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.
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
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| 4 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
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| The Benefits and Risks of Leveraging | | |
The Funds may utilize leverage to seek to enhance the yield 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 Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Fund’s 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, the 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 the Fund with the proceeds from leverage earn income based on longer-term interest rates. In this case, the Fund’s financing cost of leverage is significantly lower than the income earned on the 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 Fund’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Fund had not used leverage. Furthermore, the value of the Fund’s 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 Fund’s obligations under its leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Fund’s NAV 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 net asset value and market price of a Fund’s Common Shares than if the Fund were not leveraged. In addition, the Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Fund to incur losses. The use of leverage may limit the Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. The Fund incurs expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.
To obtain leverage, each Fund has issued Variable Rate Demand Preferred Shares (“VRDP Shares”) or Variable Rate Muni Term Preferred Shares (“VMTP Shares”) (collectively, “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOBs”) as described in the Notes to Financial Statements.
Under the Investment Company Act of 1940 (the “1940 Act”), each Fund is permitted to issue debt up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Fund may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Fund may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.
If a Fund segregates or designates on its books and records cash or liquid assets having a value not less than the value of the Fund’s obligations under the TOB (including accrued interest), a TOB is not considered a senior security and is not subject to the foregoing limitations and requirements under the 1940 Act.
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| 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 are discussed in detail in the Notes to Financial Statements.
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| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 5 |
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| Fund Summary as of January 31, 2015 | | BlackRock MuniHoldings Quality Fund II, Inc. |
BlackRock MuniHoldings Quality Fund II, Inc.’s (MUE) (the “Fund”) investment objective is to provide shareholders with current income exempt from federal income taxes. The Fund seeks to achieve its investment objective by investing primarily in long-term, investment grade 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 invests at least 80% of its assets in municipal obligations with remaining maturities of one year or more at the time of investment. The Fund may invest 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.
| Ÿ | | For the six-month period ended January 31, 2015, the Fund returned 12.67% based on market price and 8.54% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 11.69% based on market price and 8.99% based on NAV. All returns reflect reinvestment of dividends. 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. The following discussion relates to performance based on NAV. |
| Ÿ | | Municipal bonds generally delivered strong performance during the six-month period, with yields declining as prices rose. Long-term bonds outperformed their short-term counterparts, leading to a flattening of the yield curve. In this environment, the Fund’s duration positioning contributed positively to performance. The Fund’s longer dated holdings in the transportation, utilities and tax-backed sectors experienced the best price action on an absolute basis. The income generated from the Fund’s holdings of tax-exempt municipal bonds contributed to performance as well. In addition, the Fund’s use of leverage amplified the positive effect of falling rates on performance. |
| Ÿ | | There were no detractors from performance on an absolute basis as all areas of the Fund’s investment universe appreciated during the period. |
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.
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Symbol on New York Stock Exchange (“NYSE”) | | | MUE | |
Initial Offering Date | | | February 26, 1999 | |
Yield on Closing Market Price as of January 31, 2015 ($14.13)1 | | | 5.99% | |
Tax Equivalent Yield2 | | | 10.58% | |
Current Monthly Distribution per Common Share3 | | | $0.0705 | |
Current Annualized Distribution per Common Share3 | | | $0.8460 | |
Economic Leverage as of January 31, 20154 | | | 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 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 monthly distribution per Common Share, declared on March 2, 2015 was decreased to $0.0680 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 VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOBs, 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. |
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| 6 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
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| | | BlackRock MuniHoldings Quality Fund II, Inc. |
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| Market Price and Net Asset Value Per Share Summary | | |
| | | | | | | | | | | | | | | | | | | | |
| | | 1/31/15 | | | 7/31/14 | | | Change | | | High | | | Low | |
Market Price | | $ | 14.13 | | | $ | 12.94 | | | | 9.20 | % | | $ | 14.13 | | | $ | 12.88 | |
Net Asset Value | | $ | 15.17 | | | $ | 14.42 | | | | 5.20 | % | | $ | 15.17 | | | $ | 14.42 | |
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| Market Price and Net Asset Value History For the Past Five Years |
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| Overview of the Fund’s Total Investments* |
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| Sector Allocation | | | | | | |
| | | 1/31/15 | | | 7/31/14 | |
Transportation | | | 36 | % | | | 37 | % |
County/City/Special District/School District | | | 27 | | | | 23 | |
Utilities | | | 14 | | | | 17 | |
Health | | | 10 | | | | 12 | |
State | | | 9 | | | | 6 | |
Education | | | 2 | | | | 2 | |
Housing | | | 1 | | | | 1 | |
Tobacco | | | 1 | | | | 2 | |
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.
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| Credit Quality Allocation1 | | | | | | |
| | | 1/31/15 | | | 7/31/14 | |
AAA/Aaa | | | 6 | % | | | 6 | % |
AA/Aa | | | 66 | | | | 67 | |
A | | | 25 | | | | 25 | |
BBB/Baa | | | 3 | | | | 2 | |
| | 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. |
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| Call/Maturity Schedule2 | | | |
Calendar Year Ended December 31, | | | | |
2015 | | | 1 | % |
2016 | | | 2 | |
2017 | | | 1 | |
2018 | | | 25 | |
2019 | | | 15 | |
| | 2 | | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| | * | | Excludes short-term securities. |
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| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 7 |
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| Fund Summary as of January 31, 2015 | | BlackRock MuniYield California Quality Fund, Inc. |
BlackRock MuniYield California Quality Fund, Inc.’s (MCA) (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 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.
| Ÿ | | For the six-month period ended January 31, 2015, the Fund returned 13.34% based on market price and 6.01% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of 12.10% based on market price and 7.85% based on NAV. All returns reflect reinvestment of dividends. 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. The following discussion relates to performance based on NAV. |
| Ÿ | | Municipal bonds generally delivered strong performance during the six-month period, with yields declining as prices rose. California issues gained an additional boost from the state’s improving credit profile. Longer-term municipal bonds generally outperformed shorter-term issues. In this environment, the Fund’s exposure to the long end of the yield curve had a positive impact on performance. Its positions in AA-rated issues, tax-backed bonds issued by local authorities, and the transportation, health care and utilities sectors also helped returns. In addition, the Fund’s use of leverage amplified the positive effect of falling rates on performance. |
| Ÿ | | There were no detractors from performance on an absolute basis as all areas of the Fund’s investment universe appreciated during the period. |
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.
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| Fund Information | | |
Symbol on NYSE | | MCA |
Initial Offering Date | | October 30, 1992 |
Yield on Closing Market Price as of January 31, 2015 ($15.82)1 | | 5.54% |
Tax Equivalent Yield2 | | 11.29% |
Current Monthly Distribution per Common Share3 | | $0.073 |
Current Annualized Distribution per Common Share3 | | $0.876 |
Economic Leverage as of January 31, 20154 | | 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 50.93%, 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 TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, 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. |
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| 8 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
| | | BlackRock MuniYield California Quality Fund, Inc. |
| | | | | | | | | | |
| Market Price and Net Asset Value Per Share Summary | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | 1/31/15 | | | 7/31/14 | | | Change | | | High | | | Low | |
Market Price | | $ | 15.82 | | | $ | 14.37 | | | | 10.09 | % | | $ | 15.82 | | | $ | 14.31 | |
Net Asset Value | | $ | 16.62 | | | $ | 16.14 | | | | 2.97 | % | | $ | 16.62 | | | $ | 16.14 | |
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| Market Price and Net Asset Value History For the Past Five Years |
|
| Overview of the Fund’s Total Investments* |
| | | | | | | | |
| Sector Allocation | | | | | | |
| | | 1/31/15 | | | 7/31/14 | |
County/City/Special District/School District | | | 36 | % | | | 41 | % |
Utilities | | | 26 | | | | 23 | |
Transportation | | | 12 | | | | 10 | |
Education | | | 11 | | | | 9 | |
Health | | | 10 | | | | 10 | |
State | | | 5 | | | | 7 | |
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.
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| Credit Quality Allocation1 | | | | | | |
| | | 1/31/15 | | | 7/31/14 | |
AAA/Aaa | | | 9 | % | | | 10 | % |
AA/Aa | | | 74 | | | | 79 | |
A | | | 17 | | | | 11 | |
| | 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. |
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| | |
| Call/Maturity Schedule2 | | | |
Calendar Year Ended December 31, | | | | |
2015 | | | 9 | % |
2016 | | | 8 | |
2017 | | | 17 | |
2018 | | | 10 | |
2019 | | | 19 | |
| | 2 | | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| | * | | Excludes short-term securities. |
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| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 9 |
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| Fund Summary as of January 31, 2015 | | BlackRock MuniYield Michigan Quality Fund II, Inc. |
BlackRock MuniYield Michigan Quality Fund II, Inc.’s (MYM) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal and Michigan income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and Michigan 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 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.
| Ÿ | | For the six-month period ended January 31, 2015, the Fund returned 10.42% based on market price and 9.33% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of 8.27% based on market price and 7.81% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV narrowed during the period, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. |
| Ÿ | | The Fund’s duration positioning made the largest contribution to performance, as yields on municipal bonds decreased substantially during the period. (Bond prices rise as yields fall; duration measures sensitivity to interest rate movements). The income generated from the Fund’s holdings of Michigan tax-exempt municipal bonds contributed to performance as well. The Fund’s exposure to the long end of the yield curve helped performance as the yield curve flattened substantially over the period (long-term rates fell much more than intermediate rates, while two-year rates rose). The Fund also benefited from its credit exposure as spreads generally tightened, especially in the utilities sector. In addition, the Fund’s use of leverage amplified the positive effect of falling rates on performance. |
| Ÿ | | There were no detractors from performance on an absolute basis as all areas of the Fund’s investment universe appreciated during the period. |
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.
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| Fund Information | | |
Symbol on NYSE | | MYM |
Initial Offering Date | | February 28, 1992 |
Yield on Closing Market Price as of January 31, 2015 ($13.45)1 | | 5.89% |
Tax Equivalent Yield2 | | 10.87% |
Current Monthly Distribution per Common Share3 | | $0.066 |
Current Annualized Distribution per Common Share3 | | $0.792 |
Economic Leverage as of January 31, 20154 | | 36% |
| | 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 45.81%, 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 TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, 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. |
| | | | | | |
| | | | | | | |
| 10 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
| | | BlackRock MuniYield Michigan Quality Fund II, Inc. |
| | | | | | | | | | |
| Market Price and Net Asset Value Per Share Summary | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | 1/31/15 | | | 7/31/14 | | | Change | | | High | | | Low | |
Market Price | | $ | 13.45 | | | $ | 12.56 | | | | 7.09 | % | | $ | 13.45 | | | $ | 12.42 | |
Net Asset Value | | $ | 15.12 | | | $ | 14.26 | | | | 6.03 | % | | $ | 15.12 | | | $ | 14.26 | |
|
| Market Price and Net Asset Value History For the Past Five Years |
|
| Overview of the Fund’s Total Investments* |
| | | | | | | | |
| Sector Allocation | | | | | | |
| | | 1/31/15 | | | 7/31/14 | |
Health | | | 25 | % | | | 20 | % |
County/City/Special District/School District | | | 19 | | | | 19 | |
Education | | | 18 | | | | 18 | |
Utilities | | | 12 | | | | 16 | |
State | | | 11 | | | | 11 | |
Transportation | | | 8 | | | | 9 | |
Housing | | | 5 | | | | 5 | |
Corporate | | | 2 | | | | 2 | |
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.
| | | | | | | | |
| Credit Quality Allocation1 | | | | | | |
| | | 1/31/15 | | | 7/31/14 | |
AAA/Aaa | | | 1 | % | | | 2 | % |
AA/Aa | | | 70 | | | | 78 | |
A | | | 26 | | | | 20 | |
BBB/Baa | | | 2 | | | | — | |
N/R2 | | | 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 | | 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 July 31, 2014 the market value of unrated securities deemed by the investment advisor to be investment grade was $160,241 representing less than 1% of the Fund’s total investments. |
| | | | |
| | |
| Call/Maturity Schedule3 | | | |
Calendar Year Ended December 31, | | | | |
2015 | | | 9 | % |
2016 | | | 4 | |
2017 | | | 8 | |
2018 | | | 13 | |
2019 | | | 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, 2015 | | 11 |
| | |
| Fund Summary as of January 31, 2015 | | BlackRock MuniYield New York Quality Fund, Inc. |
BlackRock MuniYield New York Quality Fund, Inc.’s (MYN) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes and New York State and New York City personal income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (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 primarily in long-term 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.
| Ÿ | | For the six-month period ended January 31, 2015, the Fund returned 11.33% based on market price and 7.52% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of 9.11% based on market price and 7.97% based on NAV. All returns reflect reinvestment of dividends. 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. The following discussion relates to performance based on NAV. |
| Ÿ | | Municipal bonds generally delivered strong performance during the six-month period, with yields declining as prices rose. Longer-term municipal bonds generally outperformed shorter-term issues. In this environment, the Fund’s duration positioning and allocation to longer-dated bonds provided positive returns. The Fund’s exposure to the tax-backed (state and local), education and transportation sectors were positive contributors to performance. Positions in lower-coupon bonds, which tend to have longer durations and more capital appreciation potential than bonds with higher coupons, helped performance as yields fell during the period. (Duration is a measure of interest-rate sensitivity.) The Fund’s positions in zero-coupon bonds also aided returns, as these securities generated strong price performance. The Fund’s exposure to higher-yielding bonds in the lower Investment-grade quality category aided performance, as this market segment outperformed during the period. The Fund benefited from income generated in the form of coupon payments from its portfolio of municipal bond holdings. In addition, the Fund’s limited use of leverage provided both incremental return and income in an environment of declining interest rates. (Bond prices rise as yields fall). |
| Ÿ | | There were no detractors from performance on an absolute basis as all areas of the Fund’s investment universe appreciated during the period. |
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.
| | |
| Fund Information | | |
Symbol on NYSE | | MYN |
Initial Offering Date | | February 28, 1992 |
Yield on Closing Market Price as of January 31, 2015 ($13.74)1 | | 5.63% |
Tax Equivalent Yield2 | | 11.39% |
Current Monthly Distribution per Common Share3 | | $0.0645 |
Current Annualized Distribution per Common Share3 | | $0.7740 |
Economic Leverage as of January 31, 20154 | | 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 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 distribution rate is not constant and is subject to change. |
| | 4 | | Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, 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. |
| | | | | | |
| | | | | | | |
| 12 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
| | | BlackRock MuniYield New York Quality Fund, Inc. |
| | | | | | | | | | | | | | | | | | | | |
| Market Price and Net Asset Value Per Share Summary | | | | | | | | | | | | | | | |
| | | | | | |
| | | 1/31/15 | | | 7/31/14 | | | Change | | | High | | | Low | |
Market Price | | | $13.74 | | | | $12.71 | | | | 8.10% | | | | $13.82 | | | | $12.68 | |
Net Asset Value | | | $14.71 | | | | $14.09 | | | | 4.40% | | | | $14.71 | | | | $14.08 | |
|
| Market Price and Net Asset Value History For the Past Five Years |
|
| Overview of the Fund’s Total Investments* |
| | | | | | | | |
| Sector Allocation | | | | | | |
| | | 1/31/15 | | | 7/31/14 | |
County/City/Special District/School District | | | 23 | % | | | 27 | % |
Transportation | | | 22 | | | | 24 | |
Education | | | 17 | | | | 17 | |
State | | | 16 | | | | 11 | |
Utilities | | | 10 | | | | 10 | |
Health | | | 6 | | | | 6 | |
Housing | | | 3 | | | | 3 | |
Corporate | | | 2 | | | | 2 | |
Tobacco | | | 1 | | | | — | |
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.
| | | | | | | | |
| Credit Quality Allocation1 | | | | | | |
| | | 1/31/15 | | | 7/31/14 | |
AAA/Aaa | | | 13 | % | | | 16 | % |
AA/Aa | | | 62 | | | | 60 | |
A | | | 21 | | | | 21 | |
BBB/Baa | | | 2 | | | | 2 | |
BB/Ba | | | 1 | | | | 1 | |
N/R2 | | | 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 | | 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, 2015 and July 31, 2014, the market value of unrated securities deemed by the investment advisor to be investment grade was $4,940,501 and $3,040,070, respectively, each representing less than 1% of the Fund’s total investments. |
| | | | |
| | |
| Call/Maturity Schedule3 | | | |
Calendar Year Ended December 31, | | | | |
2015 | | | 12 | % |
2016 | | | 4 | |
2017 | | | 10 | |
2018 | | | 8 | |
2019 | | | 8 | |
| | 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, 2015 | | 13 |
| | |
| Fund Summary as of January 31, 2015 | | BlackRock MuniYield Quality Fund III, Inc. |
BlackRock MuniYield Quality Fund III, Inc.’s (MYI) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from 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 invests primarily in long-term 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.
| Ÿ | | For the six-month period ended January 31, 2015, the Fund returned 13.15% based on market price and 8.26% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 11.69% based on market price and 8.99% based on NAV. All returns reflect reinvestment of dividends. The Fund’s discount to NAV narrowed during the period, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. |
| Ÿ | | The Fund’s duration positioning made the largest contribution to performance, as yields on municipal bonds decreased substantially during the period. (Bond prices rise as yields fall; duration measures sensitivity to interest rate movements). The income generated from the Fund’s holdings of tax-exempt municipal bonds contributed to performance as well. The Fund’s exposure to the long end of the yield curve helped performance as the yield curve flattened substantially over the period (long-term rates fell much more than intermediate rates, while two-year rates rose). In addition, the Fund’s use of leverage amplified the positive effect of falling rates on performance. |
| Ÿ | | There were no detractors from performance on an absolute basis as all areas of the Fund’s investment universe appreciated during the period. |
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.
| | |
| Fund Information | | |
Symbol on NYSE | | MYI |
Initial Offering Date | | March 27, 1992 |
Yield on Closing Market Price as of January 31, 2015 ($14.76)1 | | 6.02% |
Tax Equivalent Yield2 | | 10.64% |
Current Monthly Distribution per Common Share3 | | $0.074 |
Current Annualized Distribution per Common Share3 | | $0.888 |
Economic Leverage as of January 31, 20154 | | 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 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 TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOBs, 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. |
| | | | | | |
| | | | | | | |
| 14 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
| | | BlackRock MuniYield Quality Fund III, Inc. |
| | | | | | | | | | | | | | | | | | | | |
| Market Price and Net Asset Value Per Share Summary | | | | | | | | | | | | | | | |
| | | | | | |
| | | 1/31/15 | | | 7/31/14 | | | Change | | | High | | | Low | |
Market Price | | $ | 14.76 | | | $ | 13.46 | | | | 9.66 | % | | $ | 14.83 | | | $ | 13.45 | |
Net Asset Value | | $ | 15.57 | | | $ | 14.84 | | | | 4.92 | % | | $ | 15.57 | | | $ | 14.84 | |
|
| Market Price and Net Asset Value History For the Past Five Years |
|
| Overview of the Fund’s Total Investments* |
| | | | | | | | |
| Sector Allocation | | | | | | |
| | | 1/31/15 | | | 7/31/14 | |
Transportation | | | 23 | % | | | 25 | % |
County/City/Special District/School District | | | 19 | | | | 20 | |
State | | | 18 | | | | 16 | |
Utilities | | | 18 | | | | 19 | |
Health | | | 10 | | | | 9 | |
Education | | | 9 | | | | 8 | |
Housing | | | 2 | | | | 2 | |
Corporate | | | 1 | | | | 1 | |
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.
| | | | | | | | |
| Credit Quality Allocation1 | | | | | | |
| | | 1/31/15 | | | 7/31/14 | |
AAA/Aaa | | | 12 | % | | | 12 | % |
AA/Aa | | | 62 | | | | 65 | |
A | | | 23 | | | | 21 | |
BBB/Baa | | | 3 | | | | 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. |
| | | | |
| | |
| Call/Maturity Schedule2 | | | |
Calendar Year Ended December 31, | | | | |
2015 | | | 2 | % |
2016 | | | 5 | |
2017 | | | 16 | |
2018 | | | 21 | |
2019 | | | 12 | |
| | 2 | | 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, 2015 | | 15 |
| | |
Schedule of Investments January 31, 2015 (Unaudited) | | BlackRock MuniHoldings Quality Fund II, Inc. (MUE) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par (000) | | | Value | |
Alabama — 3.2% | | | | | | | | |
City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 6/01/39 | | $ | 5,225 | | | $ | 6,145,854 | |
City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35 | | | 940 | | | | 1,062,134 | |
Mobile Board of Water & Sewer Commissioners, RB, (NPFGC), 5.00%, 1/01/16 (a) | | | 3,750 | | | | 3,915,600 | |
| | | | | | | | |
| | | | | | | | 11,123,588 | |
California — 24.7% | | | | | | | | |
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38 | | | 5,050 | | | | 5,769,726 | |
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42 | | | 2,865 | | | | 3,470,203 | |
City & County of San Francisco California Airports Commission, ARB, Special Facility Lease, SFO Fuel, Series A, AMT (AGM), 6.10%, 1/01/20 | | | 1,070 | | | | 1,075,061 | |
City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT: | | | | | | | | |
5.50%, 5/01/28 | | | 1,800 | | | | 2,199,870 | |
5.25%, 5/01/33 | | | 1,410 | | | | 1,658,371 | |
City of San Jose California, Refunding ARB, Series A-1, AMT, 5.50%, 3/01/30 | | | 4,045 | | | | 4,637,512 | |
City of Sunnyvale California, Refunding RB,
5.25%, 4/01/40 | | | 2,800 | | | | 3,233,216 | |
County of Sacramento California, ARB, Senior Series A (AGC), 5.50%, 7/01/41 | | | 3,500 | | | | 3,990,735 | |
County of Ventura California Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/33 | | | 3,175 | | | | 3,676,999 | |
Emery Unified School District, GO, Election of 2010, Series A (AGM), 5.50%, 8/01/35 | | | 1,875 | | | | 2,247,900 | |
Kern Community College District, GO, Safety, Repair & Improvement, Election of 2002, Series C, 5.50%, 11/01/33 | | | 2,445 | | | | 3,018,328 | |
Los Angeles Community College District California, GO: | | | | | | | | |
Election of 2001, Series A (NPFGC), 5.00%, 8/01/17 (a) | | | 5,000 | | | | 5,554,250 | |
Election of 2008, Series C, 5.25%, 8/01/39 | | | 2,000 | | | | 2,362,540 | |
Oceanside Unified School District, GO,
Series A (AGC), 5.25%, 8/01/33 | | | 1,675 | | | | 1,880,372 | |
Redondo Beach Unified School District, GO, Election of 2008, Series E, 5.50%, 8/01/34 | | | 2,670 | | | | 3,201,010 | |
Sequoia Union High School District, GO, Refunding, Election of 2004, Series B, 5.50%, 7/01/16 (a) | | | 5,190 | | | | 5,575,825 | |
State of California, GO, Various Purpose,
5.00%, 4/01/43 | | | 4,500 | | | | 5,239,710 | |
| Municipal Bonds | | Par (000) | | | Value | |
California (concluded) | | | | | | | | |
State of California Public Works Board, LRB, Various Capital Projects, Series I: | | | | | | | | |
5.50%, 11/01/30 | | $ | 5,000 | | | $ | 6,225,850 | |
5.50%, 11/01/31 | | | 3,130 | | | | 3,880,605 | |
5.50%, 11/01/33 | | | 3,000 | | | | 3,711,720 | |
State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F,
5.25%, 9/01/33 | | | 1,260 | | | | 1,513,285 | |
Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/40 | | | 940 | | | | 1,160,195 | |
University of California, Refunding RB, The Regents of Medical Center, Series J, 5.25%, 5/15/38 | | | 7,580 | | | | 9,094,332 | |
| | | | | | | | |
| | | | | | | | 84,377,615 | |
Colorado — 2.1% | | | | | | | | |
City & County of Denver Colorado Airport System, ARB, Series A, AMT: | | | | | | | | |
5.50%, 11/15/28 | | | 1,500 | | | | 1,812,975 | |
5.50%, 11/15/30 | | | 565 | | | | 678,740 | |
5.50%, 11/15/31 | | | 675 | | | | 809,143 | |
Colorado Health Facilities Authority, RB, Hospital, NCMC, Inc. Project, Series B (AGM), 6.00%, 5/15/26 | | | 3,300 | | | | 3,794,373 | |
| | | | | | | | |
| | | | | | | | 7,095,231 | |
Florida — 20.1% | | | | | | | | |
City of Jacksonville Florida, Refunding RB, Series A,
5.25%, 10/01/33 | | | 405 | | | | 485,721 | |
City of St. Petersburg Florida Public Utility Revenue, Refunding RB, (NPFGC), 5.00%, 10/01/15 (a) | | | 3,000 | | | | 3,097,200 | |
County of Broward Florida Airport System, ARB, Series A, AMT, 5.13%, 10/01/38 | | | 5,665 | | | | 6,484,669 | |
County of Hillsborough Florida Aviation Authority, Refunding ARB, Tampa International Airport, Series A, AMT, 5.50%, 10/01/29 | | | 2,995 | | | | 3,577,857 | |
County of Lee Florida, Refunding ARB, Series A, AMT,
5.38%, 10/01/32 | | | 2,500 | | | | 2,830,425 | |
County of Miami-Dade Florida, RB, Seaport: | | | | | | | | |
Series A, 5.38%, 10/01/33 | | | 1,765 | | | | 2,069,604 | |
Series A, 5.50%, 10/01/42 | | | 3,000 | | | | 3,551,070 | |
Series B, AMT, 6.25%, 10/01/38 | | | 800 | | | | 1,004,096 | |
Series B, AMT, 6.00%, 10/01/42 | | | 1,060 | | | | 1,295,680 | |
County of Miami-Dade Florida, Refunding RB, Water & Sewer System, Series B, 5.25%, 10/01/29 | | | 3,130 | | | | 3,802,480 | |
County of Miami-Dade Florida Aviation, Refunding ARB, AMT, Series A: | | | | | | | | |
Miami International Airport (AGM),
5.25%, 10/01/41 | | | 4,610 | | | | 5,138,721 | |
| | | | | | | | | | |
| AGC | | Assured Guarantee Corp. | | EDC | | Economic Development Corp. | | IDRB | | Industrial Development Revenue Bonds |
| AGM | | Assured Guaranty Municipal Corp. | | ERB | | Education Revenue Bonds | | ISD | | Independent School District |
| AMBAC | | American Municipal Bond Assurance Corp. | | Fannie Mae | | Federal National Mortgage Association | | LRB | | Lease Revenue Bonds |
| AMT | | Alternative Minimum Tax (subject to) | | FHA | | Federal Housing Administration | | M/F | | Multi-Family |
| ARB | | Airport Revenue Bonds | | GAB | | Grant Anticipation Bonds | | NPFGC | | National Public Finance Guarantee Corp. |
| BAM | | Build America Mutual Assurance Co. | | GARB | | General Airport Revenue Bonds | | PILOT | | Payment in Lieu of Taxes |
| BARB | | Building Aid Revenue Bonds | | Ginnie Mae | | Government National Mortgage Association | | PSF-GTD | | Permanent School Fund Guaranteed |
| BHAC | | Berkshire Hathaway Assurance Corp. | | GO | | General Obligation Bonds | | Q-SBLF | | Qualified School Bond Loan Fund |
| BOCES | | Board of Cooperative Educational Services | | HDA | | Housing Development Authority | | RB | | Revenue Bonds |
| CAB | | Capital Appreciation Bonds | | HFA | | Housing Finance Agency | | S/F | | Single-Family |
| COP | | Certificates of Participation | | IDA | | Industrial Development Authority | | SONYMA | | State of New York Mortgage Agency |
| EDA | | Economic Development Authority | | IDB | | Industrial Development Board | | Syncora | | Syncora Guarantee |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| 16 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
Schedule of Investments (continued) | | BlackRock MuniHoldings Quality Fund II, Inc. (MUE) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par (000) | | | Value | |
Florida (concluded) | | | | | | | | |
County of Miami-Dade Florida Aviation, Refunding ARB, AMT, Series A (concluded): | | | | | | | | |
Miami International Airport (AGM),
5.50%, 10/01/41 | | $ | 4,180 | | | $ | 4,743,840 | |
5.00%, 10/01/31 | | | 5,155 | | | | 5,890,618 | |
5.00%, 10/01/32 | | | 5,000 | | | | 5,687,700 | |
County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 8/01/34 | | | 7,600 | | | | 8,660,884 | |
Reedy Creek Improvement District, GO, Series A,
5.25%, 6/01/32 | | | 1,805 | | | | 2,156,867 | |
Tohopekaliga Water Authority, Refunding RB, Series A,
5.25%, 10/01/36 | | | 6,965 | | | | 8,285,355 | |
| | | | | | | | |
| | | | | | | | 68,762,787 | |
Hawaii — 0.7% | | | | | | | | |
State of Hawaii, Department of Transportation, COP, AMT: | | | | | | | | |
5.25%, 8/01/25 | | | 740 | | | | 893,964 | |
5.25%, 8/01/26 | | | 1,205 | | | | 1,446,097 | |
| | | | | | | | |
| | | | | | | | 2,340,061 | |
Idaho — 0.0% | | | | | | | | |
Idaho Housing & Finance Association, RB, S/F Mortgage, Series E, AMT, 6.00%, 1/01/32 | | | 140 | | | | 140,279 | |
Illinois — 17.8% | | | | | | | | |
City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien: | | | | | | | | |
Series A, 5.75%, 1/01/39 | | | 2,000 | | | | 2,366,420 | |
Series C, 6.50%, 1/01/41 | | | 9,085 | | | | 11,117,587 | |
City of Chicago Illinois, GO, Refunding, Series A: | | | | | | | | |
Project, 5.25%, 1/01/33 | | | 1,460 | | | | 1,587,735 | |
5.25%, 1/01/29 | | | 1,125 | | | | 1,234,901 | |
City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A: | | | | | | | | |
5.00%, 1/01/41 | | | 970 | | | | 1,084,567 | |
AMT, 5.50%, 1/01/28 | | | 1,000 | | | | 1,196,050 | |
AMT, 5.50%, 1/01/29 | | | 1,500 | | | | 1,785,840 | |
AMT, 5.38%, 1/01/33 | | | 2,000 | | | | 2,305,160 | |
City of Chicago Illinois Transit Authority, RB: | | | | | | | | |
Federal Transit Administration, Section 5309, Series A (AGC), 6.00%, 6/01/26 | | | 3,400 | | | | 3,976,538 | |
Sales Tax Receipts, 5.25%, 12/01/36 | | | 2,940 | | | | 3,410,988 | |
Sales Tax Receipts, 5.25%, 12/01/40 | | | 1,500 | | | | 1,733,205 | |
Sales Tax Receipts, 5.00%, 12/01/44 | | | 2,355 | | | | 2,757,893 | |
City of Chicago Illinois Wastewater Transmission, RB, 2nd Lien, 5.00%, 1/01/42 | | | 2,985 | | | | 3,339,648 | |
County of Cook Illinois Community College District No. 508, GO, City College of Chicago: | | | | | | | | |
5.25%, 12/01/30 | | | 1,270 | | | | 1,505,471 | |
5.50%, 12/01/38 | | | 1,980 | | | | 2,354,854 | |
5.25%, 12/01/43 | | | 5,500 | | | | 6,389,185 | |
Railsplitter Tobacco Settlement Authority, RB: | | | | | | | | |
5.50%, 6/01/23 | | | 2,350 | | | | 2,811,516 | |
6.00%, 6/01/28 | | | 670 | | | | 802,399 | |
State of Illinois, GO: | | | | | | | | |
5.25%, 2/01/31 | | | 1,495 | | | | 1,679,588 | |
5.25%, 2/01/32 | | | 2,320 | | | | 2,595,105 | |
5.50%, 7/01/33 | | | 1,000 | | | | 1,144,730 | |
5.50%, 7/01/38 | | | 700 | | | | 796,383 | |
State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/28 | | | 2,500 | | | | 2,863,525 | |
| | | | | | | | |
| | | | | | | | 60,839,288 | |
Indiana — 0.9% | |
Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges, Series A, AMT, 5.00%, 7/01/40 | | | 460 | | | | 505,352 | |
| Municipal Bonds | | Par (000) | | | Value | |
Indiana (concluded) | | | | | | | | |
Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC), 5.50%, 1/01/38 | | $ | 2,370 | | | $ | 2,698,458 | |
| | | | | | | | |
| | | | | | | | 3,203,810 | |
Louisiana — 2.4% | |
Lake Charles Harbor & Terminal District, RB, Series B, AMT, 5.50%, 1/01/29 | | | 2,225 | | | | 2,621,206 | |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, 5.00%, 10/01/37 | | | 2,760 | | | | 3,268,585 | |
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 5/15/29 | | | 2,020 | | | | 2,233,756 | |
| | | | | | | | |
| | | | | | | | 8,123,547 | |
Maryland — 0.2% | |
Maryland Health & Higher Educational Facilities Authority, Refunding RB, 5.00%, 7/01/45 (b) | | | 480 | | | | 556,118 | |
Massachusetts — 0.5% | |
Massachusetts HFA, Refunding RB, Series C, AMT, 5.35%, 12/01/42 | | | 1,500 | | | | 1,590,930 | |
Michigan — 2.3% | |
Hudsonville Public Schools, GO, School Building & Site (Q-SBLF), 5.25%, 5/01/41 | | | 3,420 | | | | 3,889,019 | |
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a) | | | 3,115 | | | | 3,933,715 | |
| | | | | | | | |
| | | | | | | | 7,822,734 | |
Minnesota — 0.7% | |
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38 | | | 1,975 | | | | 2,338,716 | |
Mississippi — 1.3% | | | | | | | | |
Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40 | | | 2,405 | | | | 3,231,623 | |
Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Improvement Project, 5.25%, 8/01/38 | | | 1,000 | | | | 1,188,400 | |
| | | | | | | | |
| | | | | | | | 4,420,023 | |
Nevada — 2.7% | |
County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A (AGM), 5.25%, 7/01/39 | | | 3,210 | | | | 3,675,354 | |
County of Clark Nevada, GO, Limited Tax, 5.00%, 6/01/38 | | | 5,000 | | | | 5,549,050 | |
| | | | | | | | |
| | | | | | | | 9,224,404 | |
New Jersey — 5.7% | |
New Jersey EDA, RB: | | | | | | | | |
School Facilities Construction, Series UU, 5.00%, 6/15/40 | | | 1,460 | | | | 1,627,506 | |
The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43 | | | 1,940 | | | | 2,180,191 | |
The Goethals Bridge Replacement Project, AMT (AGM), 5.00%, 1/01/31 | | | 1,355 | | | | 1,535,052 | |
New Jersey Health Care Facilities Financing Authority, RB, Virtua Health, Series A (AGC), 5.50%, 7/01/38 | | | 3,400 | | | | 3,869,982 | |
New Jersey Transportation Trust Fund Authority, RB, Transportation System: | | | | | | | | |
Series A, 5.50%, 6/15/41 | | | 3,030 | | | | 3,493,045 | |
Series A (AGC), 5.63%, 12/15/28 | | | 2,930 | | | | 3,428,510 | |
Series AA, 5.50%, 6/15/39 | | | 3,040 | | | | 3,545,157 | |
| | | | | | | | |
| | | | | | | | 19,679,443 | |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 17 |
| | |
Schedule of Investments (continued) | | BlackRock MuniHoldings Quality Fund II, Inc. (MUE) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par (000) | | | Value | |
New York — 9.2% | |
City of New York New York Municipal Water Finance Authority, Refunding RB, 2nd General Resolution, Series EE: | | | | | | | | |
Fiscal 2009, 5.25%, 6/15/40 | | $ | 6,930 | | | $ | 7,981,350 | |
5.38%, 6/15/43 | | | 2,220 | | | | 2,647,772 | |
City of New York New York Transitional Finance Authority, BARB, Fiscal 2015, Series S-1, 5.00%, 7/15/43 | | | 675 | | | | 797,479 | |
Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012, Series A, 5.75%, 2/15/47 | | | 940 | | | | 1,105,167 | |
Metropolitan Transportation Authority, RB: | | | | | | | | |
Series A, 5.25%, 11/15/38 | | | 8,500 | | | | 9,899,525 | |
Series A-1, 5.25%, 11/15/39 | | | 1,550 | | | | 1,846,732 | |
New York State Dormitory Authority, Refunding RB, Series C, 5.00%, 3/15/42 | | | 3,990 | | | | 4,681,906 | |
Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 166th Series, 5.25%, 7/15/36 | | | 2,000 | | | | 2,332,800 | |
| | | | | | | | |
| | | | | | | | 31,292,731 | |
Ohio — 0.9% | |
State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 2/15/31 | | | 2,500 | | | | 2,995,975 | |
Pennsylvania — 1.2% | |
Township of Bristol Pennsylvania School District, GO: | | | | | | | | |
5.25%, 6/01/37 | | | 2,500 | | | | 2,962,675 | |
5.25%, 6/01/43 | | | 1,100 | | | | 1,298,187 | |
| | | | | | | | |
| | | | | | | | 4,260,862 | |
South Carolina — 4.1% | |
County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38 | | | 3,760 | | | | 4,548,284 | |
County of Charleston South Carolina Airport District, ARB, Series A, AMT: | | | | | | | | |
6.00%, 7/01/38 | | | 2,940 | | | | 3,562,604 | |
5.50%, 7/01/41 | | | 2,500 | | | | 2,939,525 | |
State of South Carolina Public Service Authority, Refunding RB, Santee Cooper, Series A, 5.50%, 1/01/38 | | | 2,500 | | | | 2,875,100 | |
| | | | | | | | |
| | | | | | | | 13,925,513 | |
Texas — 19.3% | |
Central Texas Turnpike System, Refunding RB, Series C (b): | | | | | | | | |
5.00%, 8/15/37 | | | 1,625 | | | | 1,852,386 | |
5.00%, 8/15/42 | | | 760 | | | | 863,679 | |
City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 3/01/37 | | | 2,345 | | | | 2,786,095 | |
City of Houston Texas Utility System, Refunding RB, Combined 1st Lien, Series A (AGC), 6.00%, 11/15/35 | | | 6,700 | | | | 8,057,956 | |
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Christus Health, Series A (AGC): | | | | | | | | |
6.50%, 1/01/19 (a) | | | 620 | | | | 749,940 | |
6.50%, 7/01/37 | | | 2,380 | | | | 2,759,324 | |
Dallas Area Rapid Transit, Refunding RB, Senior Lien, 5.25%, 12/01/38 | | | 4,555 | | | | 5,174,571 | |
Dallas-Fort Worth International Airport, ARB, Joint Improvement, AMT: | | | | | | | | |
Series A, 5.00%, 11/01/38 | | | 1,615 | | | | 1,818,361 | |
Series H, 5.00%, 11/01/37 | | | 1,810 | | | | 2,019,164 | |
Lower Colorado River Authority, Refunding RB, 5.50%, 5/15/33 | | | 2,155 | | | | 2,616,558 | |
North Texas Tollway Authority, RB, Special Projects, Series A, 5.50%, 9/01/41 | | | 7,000 | | | | 8,435,910 | |
| Municipal Bonds | | Par (000) | | | Value | |
Texas (concluded) | | | | | | | | |
North Texas Tollway Authority, Refunding RB, 1st Tier System: | | | | | | | | |
Series A (NPFGC), 5.63%, 1/01/33 | | $ | 10,975 | | | $ | 12,233,284 | |
Series A (NPFGC), 5.75%, 1/01/40 | | | 11,575 | | | | 13,010,300 | |
Series B (NPFGC), 5.75%, 1/01/40 | | | 1,000 | | | | 1,124,000 | |
Series K-2 (AGC), 6.00%, 1/01/38 | | | 1,000 | | | | 1,167,330 | |
Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38 | | | 1,070 | | | | 1,274,712 | |
| | | | | | | | |
| | | | | | | | 65,943,570 | |
Virginia — 1.1% | | | | | | | | |
City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 1/01/43 | | | 945 | | | | 1,084,539 | |
Virginia Public School Authority, RB, Fluvanna County School Financing, 6.50%, 12/01/18 (a) | | | 2,195 | | | | 2,666,683 | |
| | | | | | | | |
| | | | | | | | 3,751,222 | |
Washington — 1.5% | | | | | | | | |
City of Seattle Washington Municipal Light & Power, Refunding RB, Series A, 5.25%, 2/01/36 | | | 2,400 | | | | 2,809,512 | |
State of Washington, GO, Various Purposes, Series B, 5.25%, 2/01/36 | | | 1,865 | | | | 2,210,193 | |
| | | | | | | | |
| | | | | | | | 5,019,705 | |
| Total Municipal Bonds — 122.6% | | | | | | | 418,828,152 | |
| | | | | | | | |
| | |
|
Municipal Bonds Transferred to
Tender Option Bond Trusts (c) | |
Colorado — 3.0% | | | | | | | | |
Colorado Health Facilities Authority, RB, Catholic Health, Series C-3 (AGM), 5.10%, 10/01/41 | | | 9,410 | | | | 10,089,026 | |
District of Columbia — 0.6% | | | | | | | | |
District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 10/01/18 (a)(d) | | | 1,700 | | | | 2,021,281 | |
Florida — 4.4% | | | | | | | | |
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 | | | 705 | | | | 722,505 | |
County of Miami-Dade Florida, GO, Building Better Communities Program, Series B-1, 6.00%, 7/01/38 | | | 12,500 | | | | 14,479,125 | |
| | | | | | | | |
| | | | | | | | 15,201,630 | |
Illinois — 2.9% | | | | | | | | |
City of Chicago Illinois, ARB, O’Hare International Airport, Series A (AGM), 5.00%, 1/01/38 | | | 5,000 | | | | 5,442,550 | |
City of Chicago Illinois, Refunding RB, Waterworks, 2nd Lien (AGM), 5.25%, 11/01/33 | | | 3,967 | | | | 4,406,454 | |
| | | | | | | | |
| | | | | | | | 9,849,004 | |
Kentucky — 0.8% | | | | | | | | |
Kentucky State Property & Building Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27 | | | 2,304 | | | | 2,664,668 | |
Nevada — 6.3% | | | | | | | | |
County of Clark Nevada Water Reclamation District, GO: | | | | | | | | |
Limited Tax, 6.00%, 7/01/38 | | | 10,000 | | | | 11,649,200 | |
Series B, 5.50%, 7/01/29 | | | 8,247 | | | | 9,732,891 | |
| | | | | | | | |
| | | | | | | | 21,382,091 | |
New Jersey — 1.7% | | | | | | | | |
New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29 | | | 3,861 | | | | 4,181,580 | |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| 18 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
Schedule of Investments (continued) | | BlackRock MuniHoldings Quality Fund II, Inc. (MUE) (Percentages shown are based on Net Assets) |
| | | | | | | | |
Municipal Bonds Transferred to
Tender Option Bond Trusts (c) | | Par (000) | | | Value | |
New Jersey (concluded) | | | | | | | | |
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B,
5.25%, 6/15/36 (d) | | $ | 1,500 | | | $ | 1,679,101 | |
| | | | | | | | |
| | | | | | | | 5,860,681 | |
New York — 6.9% | | | | | | | | |
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF, 5.00%, 6/15/45 | | | 5,958 | | | | 6,813,126 | |
City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39 | | | 2,300 | | | | 2,610,068 | |
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds,
5.25%, 12/15/43 | | | 7,515 | | | | 8,843,878 | |
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (d) | | | 4,400 | | | | 5,251,576 | |
| | | | | | | | |
| | | | | | | | 23,518,648 | |
Texas — 1.4% | | | | | | | | |
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Baylor Health Care System Project, Series A, 5.00%, 11/15/38 | | | 4,296 | | | | 4,916,652 | |
Municipal Bonds Transferred to
Tender Option Bond Trusts (c) | | Par (000) | | | Value | |
Utah — 0.8% | | | | | | | | |
City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 8/15/41 | | $ | 2,503 | | | $ | 2,816,419 | |
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 28.8% | | | | 98,320,100 | |
Total Long-Term Investments
(Cost — $457,097,575) — 151.4% | | | | 517,148,252 | |
| | | | | | | | |
| | |
| | |
| Short-Term Securities | | Shares | | | | |
FFI Institutional Tax-Exempt Fund, 0.03% (e)(f) | | | 5,400,634 | | | | 5,400,634 | |
Total Short-Term Securities
(Cost — $5,400,634) — 1.6% | | | | 5,400,634 | |
| Total Investments (Cost — $462,498,209) — 153.0% | | | | 522,548,886 | |
| Other Assets Less Liabilities — 0.2% | | | | 548,205 | |
Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (14.8%) | | | | (50,569,865 | ) |
| VMTP Shares, at Liquidation Value — (38.4%) | | | | (131,000,000 | ) |
| | | | | | | | |
| Net Assets Applicable to Common Shares — 100.0% | | | $ | 341,527,226 | |
| | | | | | | | |
|
| 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. Unsettled when-issued transactions were as follows: |
| | | | | | | | |
| Counterparty | | Value | | | Unrealized
Appreciation | |
Barclays Capital, Inc. | | $ | 2,716,065 | | | $ | 38,363 | |
Morgan Stanley & Co. LLC | | $ | 556,118 | | | $ | 4,334 | |
| (c) | | Represent bonds transferred to a TOB. In exchange for which the Fund received cash and residual interest certificates. These bonds serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
| (d) | | All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreement, which expire from October, 1, 2016 to November 15, 2019, is $4,822,897. |
| (e) | | During the six months ended January 31, 2015, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the 1940 Act were as follows: |
| | | | | | | | | | | | | | | | |
| Affiliate | | Shares Held
at July 31,
2014 | | | Net
Activity | | | Shares Held
at January 31,
2015 | | | Income | |
FFI Institutional Tax-Exempt Fund | | | 4,174,381 | | | | 1,226,253 | | | | 5,400,634 | | | $ | 430 | |
| (f) | | Represents the current yield as of report date. |
| Ÿ | | As of January 31, 2015, financial futures contracts outstanding were as follows: |
| | | | | | | | | | | | | | | | |
| Contracts Short | | | Issue | | Exchange | | Expiration | | Notional
Value | | | Unrealized
Depreciation | |
| | (474 | ) | | 10-Year U.S. Treasury Note | | Chicago Board of Trade | | March 2015 | | $ | 62,034,750 | | | $ | (1,698,145 | ) |
| Ÿ | | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. 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 categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows: |
| | Ÿ | | Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access |
| | Ÿ | | 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) |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 19 |
| | |
Schedule of Investments (concluded) | | BlackRock MuniHoldings Quality Fund II, Inc. (MUE) |
| | Ÿ | | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.
As of January 31, 2015, 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 | | | — | | | $ | 517,148,252 | | | — | | $ | 517,148,252 | |
Short-Term Securities | | $ | 5,400,634 | | | | — | | | — | | | 5,400,634 | |
| | | | | | | | | | | | | | |
Total | | $ | 5,400,634 | | | $ | 517,148,252 | | | — | | $ | 522,548,886 | |
| | | | | | | | | | | | | | |
1 See above Schedule of Investments for values in each state or political subdivision. | |
| | | Level 1 | | | Level 2 | | | Level 3 | | Total | |
| Derivative Financial Instruments2 | | | | | | | |
Liabilities: | | | | | | | | | | | | | | |
Interest rate contracts | | $ | (1,698,145 | ) | | | — | | | — | | $ | (1,698,145 | ) |
2 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 January 31, 2015, 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 | | $ | 643,000 | | | | — | | | — | | $ | 643,000 | |
Liabilities: | | | | | | | | | | | | | | |
Bank overdraft | | | — | | | $ | (2,576,264 | ) | | — | | | (2,576,264 | ) |
TOB trust certificates | | | — | | | | (50,557,016 | ) | | — | | | (50,557,016 | ) |
VMTP Shares | | | — | | | | (131,000,000 | ) | | — | | | (131,000,000 | ) |
| | | | | | | | | | | | | | |
Total | | $ | 643,000 | | | $ | (184,133,280 | ) | | — | | $ | (183,490,280 | ) |
| | | | | | | | | | | | | | |
During the six months ended January 31, 2015, there were no transfers between levels.
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| 20 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
Schedule of Investments January 31, 2015 (Unaudited) | | BlackRock MuniYield California Quality Fund, Inc. (MCA) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par (000) | | | Value | |
California — 98.0% | | | | | | | | |
Corporate — 0.5% | | | | | |
City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34 | | $ | 2,435 | | | $ | 2,923,144 | |
County/City/Special District/School District — 30.2% | |
Centinela Valley Union High School District, GO, Refunding, Election of 2008, Series B, 6.00%, 8/01/36 | | | 2,250 | | | | 2,845,913 | |
City & County of San Francisco California, COP, AMT, Port Facilities Project, Series C, 5.25%, 3/01/32 | | | 1,050 | | | | 1,234,139 | |
County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35 | | | 2,000 | | | | 2,354,740 | |
County of Los Angeles California Sanitation Districts Financing Authority, Refunding RB, (BHAC), 5.00%, 10/01/34 | | | 5,000 | | | | 5,166,300 | |
County of Orange California Sanitation District, COP, Series A, 5.00%, 2/01/35 | | | 2,500 | | | | 2,859,100 | |
County of Orange California Water District, COP, Refunding, 5.25%, 8/15/34 | | | 9,045 | | | | 10,610,509 | |
County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/36 | | | 2,755 | | | | 3,402,783 | |
Garden Grove Unified School District, GO, Election of 2010, Series C, 5.25%, 8/01/37 | | | 2,705 | | | | 3,239,562 | |
Grossmont Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/40 | | | 2,500 | | | | 3,115,425 | |
Grossmont Union High School District, GO, Election of 2008, Series C, 5.50%, 8/01/33 | | | 1,880 | | | | 2,245,190 | |
Kern Community College District, GO, Safety Repair & Improvements, Series C, 5.25%, 11/01/32 | | | 5,715 | | | | 6,948,411 | |
Los Angeles Municipal Improvement Corp., Refunding LRB, Real Property, Series B (AGC), 5.50%, 4/01/39 | | | 2,075 | | | | 2,404,240 | |
Menlo Park City School District, GO, Refunding, 4.00%, 7/01/43 | | | 2,550 | | | | 2,760,018 | |
Mount San Antonio Community College District, GO, Refunding, Election of 2008, Series 2013 A, 5.00%, 8/01/34 | | | 4,500 | | | | 5,353,155 | |
Ohlone Community College District, GO, Election of 2010, Series A, 5.25%, 8/01/41 | | | 8,140 | | | | 9,518,346 | |
Orchard School District, GO, Election of 2001, Series A (AGC), 5.00%, 8/01/34 | | | 7,490 | | | | 8,592,079 | |
Oxnard Union High School District California, GO, Refunding, Series A (NPFGC), 6.20%, 8/01/30 | | | 9,645 | | | | 10,585,966 | |
Pittsburg Unified School District, GO, Election of 2006, Series B (AGM): | | | | | | | | |
5.50%, 8/01/34 | | | 2,000 | | | | 2,280,520 | |
5.63%, 8/01/39 | | | 4,500 | | | | 5,135,400 | |
Redlands Unified School District California, GO, Election of 2008 (AGM), 5.25%, 7/01/33 | | | 5,000 | | | | 5,670,150 | |
San Bernardino Community College District, GO, Election of 2002, Series C (AGM), 5.00%, 8/01/31 | | | 4,570 | | | | 4,870,797 | |
San Francisco Bay Area Rapid Transit District, Refunding RB, Series A (NPFGC), 5.00%, 7/01/34 | | | 7,000 | | | | 7,138,950 | |
San Jose California Financing Authority, Series A, LRB, Convention Center Expansion & Renovation Project: | | | | | | | | |
5.75%, 5/01/36 | | | 2,570 | | | | 2,725,125 | |
5.75%, 5/01/42 | | | 4,500 | | | | 5,444,955 | |
San Jose California Financing Authority, Refunding LRB: | | | | | | | | |
Civic Center Project, 5.00%, 6/01/32 | | | 3,375 | | | | 4,000,658 | |
Convention Center Expansion & Renovation Project, 5.00%, 6/01/39 | | | 9,750 | | | | 11,405,647 | |
San Juan Unified School District, GO, Election of 2002 (AGM), 5.00%, 8/01/34 | | | 6,475 | | | | 7,355,859 | |
San Leandro California Unified School District, GO, Election of 2010, Series A, 5.75%, 8/01/41 | | | 3,000 | | | | 3,603,600 | |
| Municipal Bonds | | Par (000) | | | Value | |
California (continued) | | | | | | | | |
County/City/Special District/School District (concluded) | | | | | |
Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38 | | $ | 5,600 | | | $ | 6,618,136 | |
Walnut Valley Unified School District, GO, Election of 2007, Series B, 5.75%, 8/01/41 | | | 7,680 | | | | 9,323,136 | |
West Contra Costa California Unified School District, GO: | | | | | | | | |
Election of 2010, Series A (AGM), 5.25%, 8/01/41 | | | 6,140 | | | | 7,153,960 | |
Election of 2010, Series B, 5.50%, 8/01/39 | | | 3,000 | | | | 3,626,760 | |
Election of 2012, Series A, 5.50%, 8/01/39 | | | 2,500 | | | | 3,022,300 | |
| | | | | | | | |
| | | | | | | | 172,611,829 | |
Education — 7.7% | | | | | | | | |
California Educational Facilities Authority, RB, California Institute of Technology, 5.00%, 11/01/39 | | | 3,500 | | | | 4,058,040 | |
California Municipal Finance Authority, RB, Emerson College, 6.00%, 1/01/42 | | | 2,750 | | | | 3,280,915 | |
California State University, Refunding RB, Series C (NPFGC), 5.00%, 11/01/15 (a) | | | 14,000 | | | | 14,511,700 | |
Gavilan Joint Community College District, GO, Election of 2004, Series D: | | | | | | | | |
5.50%, 8/01/31 | | | 2,165 | | | | 2,575,462 | |
5.75%, 8/01/35 | | | 8,400 | | | | 10,101,756 | |
State of California, GO, Refunding,
5.00%, 10/01/44 | | | 4,000 | | | | 4,751,960 | |
University of California, RB,
5.25%, 5/15/36 | | | 3,680 | | | | 4,497,255 | |
| | | | | | | | |
| | | | | | | | 43,777,088 | |
Health — 11.8% | | | | | | | | |
ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare, Series A, 6.00%, 8/01/30 | | | 2,345 | | | | 2,893,237 | |
California Health Facilities Financing Authority, RB: | | | | | | | | |
Children’s Hospital, Series A,
5.25%, 11/01/41 | | | 10,500 | | | | 11,885,895 | |
Providence Health Services, Series B,
5.50%, 10/01/39 | | | 4,105 | | | | 4,813,359 | |
Sutter Health, Series A, 5.25%, 11/15/46 | | | 6,970 | | | | 7,494,771 | |
Sutter Health, Series B, 6.00%, 8/15/42 | | | 7,715 | | | | 9,344,717 | |
California Health Facilities Financing Authority, Refunding RB: | | | | | | | | |
Catholic Healthcare West, Series A, 6.00%, 7/01/34 | | | 2,310 | | | | 2,746,336 | |
Catholic Healthcare West, Series A, 6.00%, 7/01/39 | | | 5,500 | | | | 6,497,535 | |
Stanford Hospital, Series A-3, 5.50%, 11/15/40 | | | 3,140 | | | | 3,841,288 | |
California Statewide Communities Development Authority, RB: | | | | | | | | |
Kaiser Permanente, Series B, 5.25%, 3/01/45 | | | 6,000 | | | | 6,259,380 | |
Sutter Health, Series A, 6.00%, 8/15/42 | | | 4,555 | | | | 5,517,198 | |
California Statewide Communities Development Authority, Refunding RB: | | | | | | | | |
Catholic Healthcare West, Series D (BHAC), 5.50%, 7/01/31 | | | 865 | | | | 959,354 | |
Trinity Health Credit Group Composite Issue, 5.00%, 12/01/41 | | | 2,850 | | | | 3,220,500 | |
Washington Township Health Care District, GO, Series B, 5.50%, 8/01/38 | | | 1,625 | | | | 2,014,886 | |
| | | | | | | | |
| | | | | | | | 67,488,456 | |
State — 7.6% | | | | | | | | |
State of California, GO, Various Purposes: | | | | | | | | |
6.00%, 3/01/33 | | | 5,500 | | | | 6,814,060 | |
6.00%, 4/01/38 | | | 17,180 | | | | 20,765,122 | |
6.00%, 11/01/39 | | | 3,510 | | | | 4,335,447 | |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 21 |
| | |
Schedule of Investments (continued) | | BlackRock MuniYield California Quality Fund, Inc. (MCA) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par (000) | | | Value | |
California (continued) | | | | | | | | |
State (concluded) | | | | | |
State of California Public Works Board, LRB: | | | | | | | | |
Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34 | | $ | 3,670 | | | $ | 4,494,833 | |
Various Capital Projects, Series I, 5.50%, 11/01/33 | | | 2,575 | | | | 3,185,893 | |
Various Capital Projects, Sub-Series I-1,
6.13%, 11/01/29 | | | 3,365 | | | | 4,170,211 | |
| | | | | | | | |
| | | | | | | | 43,765,566 | |
Transportation — 17.7% | | | | | | | | |
California Statewide Communities Development Authority, Refunding RB, 5.00%, 11/01/43 | | | 4,250 | | | | 4,987,503 | |
City & County of San Francisco California Airports Commission, ARB: | | | | | | | | |
Series E, 6.00%, 5/01/39 | | | 9,650 | | | | 11,564,946 | |
Special Facility Lease, SFO Fuel, Series A, AMT (AGM), 6.10%, 1/01/20 | | | 860 | | | | 864,068 | |
Special Facility Lease, SFO Fuel, Series A, AMT (AGM), 6.13%, 1/01/27 | | | 985 | | | | 989,511 | |
City & County of San Francisco California Airports Commission, Refunding ARB, AMT: | | | | | | | | |
2nd Series 34E (AGM), 5.75%, 5/01/24 | | | 5,000 | | | | 5,664,300 | |
2nd Series 34E (AGM), 5.75%, 5/01/25 | | | 3,500 | | | | 3,950,730 | |
2nd Series A, 5.25%, 5/01/33 | | | 1,435 | | | | 1,687,775 | |
City of Los Angeles California Department of Airports, ARB, Los Angeles International Airoport, Sub-Series B,
5.00%, 5/15/40 | | | 2,500 | | | | 2,867,225 | |
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A, 5.25%, 5/15/29 | | | 4,760 | | | | 5,574,769 | |
City of San Jose California, Refunding ARB, Series A-1, AMT, 6.25%, 3/01/34 | | | 1,400 | | | | 1,670,242 | |
County of Orange California, ARB, Series B,
5.75%, 7/01/34 | | | 5,000 | | | | 5,575,250 | |
County of Sacramento California, ARB: | | | | | | | | |
Senior Series B, AMT (AGM), 5.25%, 7/01/33 | | | 8,055 | | | | 8,748,938 | |
Subordinated & Passenger Facility Charges/Grant, Series C (AGC), 5.75%, 7/01/39 | | | 5,555 | | | | 6,388,195 | |
County of San Bernardino California Transportation Authority, RB, Series A, 5.25%, 3/01/40 | | | 4,500 | | | | 5,455,350 | |
County of San Diego California Regional Airport Authority, Refunding ARB, Series B, 5.00%, 7/01/40 | | | 6,350 | | | | 7,283,323 | |
Los Angeles County Metropolitan Transportation Authority, RB, (AMBAC): | | | | | | | | |
5.00%, 7/01/15 (a) | | | 3,345 | | | | 3,413,439 | |
5.00%, 7/01/15 (a) | | | 5,705 | | | | 5,821,724 | |
5.00%, 7/01/27 | | | 655 | | | | 667,949 | |
5.00%, 7/01/35 | | | 1,120 | | | | 1,143,430 | |
Los Angeles Harbor Department, RB, Series B: | | | | | | | | |
5.25%, 8/01/34 | | | 5,530 | | | | 6,431,003 | |
5.25%, 8/01/39 | | | 2,750 | | | | 3,198,058 | |
San Francisco City & County Airports Commisson-San Francisco International Airport, Refunding RB, AMT, Series A, 5.00%, 5/01/40 | | | 6,300 | | | | 7,245,252 | |
| | | | | | | | |
| | | | | | | | 101,192,980 | |
Utilities — 22.5% | | | | | | | | |
Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A, 5.38%, 10/01/36 | | | 5,000 | | | | 5,988,400 | |
City of Los Angeles California Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39 | | | 8,000 | | | | 9,255,760 | |
| Municipal Bonds | | Par (000) | | | Value | |
California (concluded) | | | | | | | | |
Utilities (concluded) | | | | | |
City of Los Angeles California Wastewater System, Refunding RB, Sub-Series A, 5.00%, 6/01/28 | | $ | 2,000 | | | $ | 2,336,120 | |
City of Napa California Water Revenue, RB, (AMBAC), 5.00%, 5/01/35 | | | 8,070 | | | | 8,785,325 | |
City of San Francisco California, Refunding RB, Public Utilities Water Commission, Series A, 5.25%, 11/01/31 | | | 6,280 | | | | 7,380,947 | |
City of San Francisco California Public Utilities Commission Water Revenue, RB, Series A, 5.00%, 11/01/37 | | | 10,000 | | | | 11,665,200 | |
County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/38 | | | 4,895 | | | | 5,473,882 | |
Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41 | | | 4,000 | | | | 4,876,520 | |
East Bay California Municipal Utility District Water System Revenue, RB, Series A (NPFGC): | | | | | | | | |
5.00%, 6/01/15 (a) | | | 10,905 | | | | 11,083,842 | |
5.00%, 6/01/35 | | | 4,000 | | | | 4,067,160 | |
East Bay California Municipal Utility District Water System Revenue, Refunding RB: | | | | | | | | |
Series A (NPFGC), 5.00%, 6/01/17 (a) | | | 4,000 | | | | 4,381,200 | |
Sub-Series A (AGM), 5.00%, 6/01/37 | | | 10,000 | | | | 10,953,000 | |
Sub-Series A (AMBAC), 5.00%, 6/01/17 (a) | | | 3,000 | | | | 3,277,830 | |
East Bay Municipal Utility District, Refunding RB, Sub-Series A, 5.00%, 6/01/30 | | | 5,000 | | | | 5,914,050 | |
El Dorado Irrigation District / El Dorado County Water Agency, Refunding RB, Series A (AGM),
5.25%, 3/01/39 | | | 5,000 | | | | 6,039,050 | |
Imperial Irrigation District, Refunding RB, Electric System, 5.13%, 11/01/38 | | | 6,200 | | | | 6,999,614 | |
Los Angeles County Public Works Financing Authority, Refunding RB, Series A, 5.00%, 12/01/44 (b) | | | 3,150 | | | | 3,709,503 | |
Los Angeles Department of Water & Power, RB, Sub-Series A-2 (AGM), 5.00%, 7/01/35 | | | 7,500 | | | | 7,945,350 | |
San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 5/15/34 | | | 2,000 | | | | 2,322,660 | |
Santa Monica Community College District, GO, Series B, 5.00%, 8/01/44 | | | 5,000 | | | | 5,944,400 | |
| | | | | | | | |
| | | | | | | | 128,399,813 | |
| Total Municipal Bonds — 98.0% | | | | | | | 560,158,876 | |
| | | | | | | | |
| | | | | | | | | |
|
Municipal Bonds Transferred to
Tender Option Bond Trusts (c) | |
California — 53.7% | | | | | | | | |
County/City/Special District/School District — 24.1% | |
Arcadia Unified School District California, GO, Election of 2006, Series A (AGM), 5.00%, 8/01/37 | | | 7,925 | | | | 8,555,233 | |
California Health Facilities Financing Authority, RB, Sutter Health, Series A, 5.00%, 8/15/52 | | | 10,000 | | | | 11,367,900 | |
Desert Community College District California, GO, Series C (AGM), 5.00%, 8/01/37 | | | 12,150 | | | | 13,259,781 | |
Los Angeles Community College District California, GO: | | | | | | | | |
Election of 2001, Series A (AGM),
5.00%, 8/01/17 (a) | | | 12,000 | | | | 13,330,200 | |
Election of 2001, Series A (NPFGC),
5.00%, 8/01/32 | | | 26,438 | | | | 29,368,124 | |
Election of 2003, Series F-1, 5.00%, 8/01/33 | | | 12,000 | | | | 13,804,800 | |
Los Angeles Community College District California, GO, Refunding, Election of 2008, Series C,
6.00%, 8/01/33 (a) | | | 9,596 | | | | 11,823,706 | |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| 22 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
Schedule of Investments (continued) | | BlackRock MuniYield California Quality Fund, Inc. (MCA) (Percentages shown are based on Net Assets) |
| | | | | | | | |
Municipal Bonds Transferred to
Tender Option Bond Trusts (c) | | Par (000) | | | Value | |
California (continued) | | | | | | | | |
County/City/Special District/School District (concluded) | | | | | |
Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34 | | $ | 5,000 | | | $ | 5,736,450 | |
Poway Unified School District, GO, Election of 2002, Improvement District 02, Series 1-B (AGM), 5.00%, 8/01/16 (a) | | | 10,000 | | | | 10,706,000 | |
San Francisco Bay Area Rapid Transit District, Refunding RB, Series A (NPFGC), 5.00%, 7/01/30 | | | 19,630 | | | | 20,023,581 | |
| | | | | | | | |
| | | | | | | | 137,975,775 | |
Education — 9.4% | | | | | | | | |
Los Rios Community College District, GO, Election of 2008, Series A, 5.00%, 8/01/35 | | | 11,000 | | | | 12,775,290 | |
University of California, RB: | | | | | | | | |
5.25%, 5/15/44 | | | 9,210 | | | | 11,170,441 | |
Limited Project, Series D (AGM), 5.00%, 5/15/41 | | | 8,000 | | | | 8,535,280 | |
Series L, 5.00%, 5/15/40 | | | 7,398 | | | | 7,893,036 | |
Series O, 5.75%, 5/15/34 | | | 11,190 | | | | 13,269,214 | |
| | | | | | | | |
| | | | | | | | 53,643,261 | |
Health — 3.9% | |
California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42 | | | 19,860 | | | | 22,489,861 | |
Utilities — 16.3% | |
Anaheim Public Financing Authority,: | | | | | | | | |
5.00%, 5/01/39 | | | 6,000 | | | | 6,999,960 | |
5.00%, 5/01/46 | | | 13,500 | | | | 15,583,185 | |
City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/39 | | | 4,380 | | | | 5,052,242 | |
County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/33 | | | 8,510 | | | | 9,496,139 | |
Municipal Bonds Transferred to
Tender Option Bond Trusts (c) | | Par (000) | | | Value | |
California (concluded) | | | | | | | | |
Utilities (concluded) | | | | | |
East Bay Municipal Utility District, Refunding RB, Sub-Series A (AMBAC), 5.00%, 6/01/17 (a) | | $ | 7,990 | | | $ | 8,743,137 | |
Los Angeles Department of Water & Power, RB, Power System: | | | | | | | | |
Sub-Series A-1 (AGM), 5.00%, 7/01/37 | | | 13,525 | | | | 14,804,729 | |
Sub-Series A-1 (AMBAC), 5.00%, 7/01/37 | | | 5,029 | | | | 5,487,461 | |
Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37 | | | 15,000 | | | | 16,457,250 | |
Rancho Water District Financing Authority, Refunding RB, Series A (AGM), 5.00%, 8/01/34 | | | 9,277 | | | | 10,467,840 | |
| | | | | | | | |
| | | | | | | | 93,091,943 | |
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 53.7% | | | | | | | 307,200,840 | |
Total Long-Term Investments
(Cost — $787,940,108) — 151.7% | | | | | | | 867,359,716 | |
| | | | | | | | |
| | | | | | | | | |
| | |
| Short-Term Securities | | Shares | | | | |
BIF California Municipal Money Fund, 0.00% (d)(e) | | | 8,933,513 | | | | 8,933,513 | |
Total Short-Term Securities
(Cost — $8,933,513) — 1.6% | | | | 8,933,513 | |
| Total Investments (Cost — $796,873,621) — 153.3% | | | | 876,293,229 | |
| Other Assets Less Liabilities — 0.1% | | | | 1,052,431 | |
Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (24.3%) | | | | (139,183,969 | ) |
| VRDP Shares, at Liquidation Value — (29.1%) | | | | (166,500,000 | ) |
| | | | | | | | |
| Net Assets Applicable to Common Shares — 100.0% | | | $ | 571,661,691 | |
| | | | | | | | |
|
| 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. Unsettled when-issued transactions were as follows: |
| | | | | | | | |
| Counterparty | | Value | | | Unrealized
Appreciation | |
Citigroup Global Markets, Inc. | | $ | 3,709,503 | | | $ | 49,908 | |
| (c) | | Represent bonds transferred to a TOB. In exchange for which the Fund received cash and residual interest certificates. These bonds serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
| (d) | | During the six months ended January 31, 2015, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the 1940 Act were as follows: |
| | | | | | | | | | | | | | | | |
| Affiliate | | Shares Held
at July 31,
2014 | | | Net
Activity | | | Shares Held
at January 31,
2015 | | | Income | |
BIF California Municipal Money Fund | | | 1,241,242 | | | | 7,692,271 | | | | 8,933,513 | | | $ | 1 | |
| (e) | | Represents the current yield as of report date. |
| Ÿ | | As of January 31, 2015, financial futures contracts outstanding were as follows: |
| | | | | | | | | | | | | | | | |
| Contracts Short | | | Issue | | Exchange | | Expiration | | Notional
Value | | | Unrealized
Depreciation | |
| | (400 | ) | | 10-Year U.S. Treasury Note | | Chicago Board of Trade | | March 2015 | | $ | 52,350,000 | | | $ | (1,333,178 | ) |
| Ÿ | | 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, 2015 | | 23 |
| | |
Schedule of Investments (concluded) | | BlackRock MuniYield California Quality Fund, Inc. (MCA) |
| Ÿ | | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. 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 categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows: |
| | Ÿ | | Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access |
| | Ÿ | | 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) |
| | Ÿ | | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.
As of January 31, 2015, 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 | | | — | | | $ | 867,359,716 | | | | — | | | $ | 867,359,716 | |
Short-Term Securities | | $ | 8,933,513 | | | | — | | | | — | | | | 8,933,513 | |
| | | | |
Total | | $ | 8,933,513 | | | $ | 867,359,716 | | | | — | | | $ | 876,293,229 | |
| | | | |
1 See above Schedule of Investments for values in each sector. | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Derivative Financial Instruments2 | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | |
Interest rate contracts | | $ | (1,333,178 | ) | | | — | | | | — | | | $ | (1,333,178 | ) |
2 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 January 31, 2015, 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 | | $ | 543,000 | | | | — | | | | — | | | $ | 543,000 | |
Liabilities: | | | | | | | | | | | | | | | | |
TOB trust certificates | | | — | | | $ | (139,157,373 | ) | | | — | | | | (139,157,373 | ) |
VRDP Shares | | | — | | | | (166,500,000 | ) | | | — | | | | (166,500,000 | ) |
| | | | |
Total | | $ | 543,000 | | | $ | (305,657,373 | ) | | | — | | | $ | (305,114,373 | ) |
| | | | |
During the six months ended January 31, 2015, there were no transfers between levels.
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| 24 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
Schedule of Investments January 31, 2015 (Unaudited) | | BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par (000) | | | Value | |
Michigan — 133.7% | |
Corporate — 2.8% | |
County of Monroe EDC Michigan, Refunding RB, Detroit Edison Co. Project, Series AA (NPFGC), 6.95%, 9/01/22 | | $ | 3,805 | | | $ | 5,124,498 | |
County/City/Special District/School District — 26.0% | |
Anchor Bay School District, GO, Refunding, (Q-SBLF): | | | | | | | | |
4.38%, 5/01/27 | | | 640 | | | | 705,478 | |
4.50%, 5/01/29 | | | 605 | | | | 665,784 | |
Charter Township of Canton Michigan, GO, Capital Improvement (AGM): | | | | | | | | |
5.00%, 4/01/25 | | | 1,250 | | | | 1,360,038 | |
5.00%, 4/01/26 | | | 1,250 | | | | 1,360,888 | |
5.00%, 4/01/27 | | | 500 | | | | 540,750 | |
City of Oak Park Michigan, GO, Street Improvement (NPFGC), 5.00%, 5/01/30 | | | 600 | | | | 628,878 | |
Columbia Michigan School District, GO, Unlimited Tax, School Building & Site (Q-SBLF), 5.00%, 5/01/38 | | | 1,970 | | | | 2,302,615 | |
Comstock Park Public Schools, GO, School Building & Site, Series B (Q-SBLF): | | | | | | | | |
5.50%, 5/01/36 | | | 450 | | | | 532,449 | |
5.50%, 5/01/41 | | | 830 | | | | 981,375 | |
County of Genesee Michigan, GO, Refunding, Series A (NPFGC), 5.00%, 5/01/19 | | | 400 | | | | 404,140 | |
Dearborn Brownfield Redevelopment Authority, GO, Limited Tax, Redevelopment, Series A (AGC), 5.50%, 5/01/39 | | | 2,000 | | | | 2,291,940 | |
Dearborn School District, GO, Series A (Q-SBLF): | | | | | | | | |
5.00%, 5/01/32 | | | 570 | | | | 676,453 | |
5.00%, 5/01/33 | | | 610 | | | | 721,301 | |
5.00%, 5/01/34 | | | 455 | | | | 536,463 | |
Flint EDC, RB, Michigan Department of Human Services Office Building Project, 5.25%, 10/01/41 | | | 1,880 | | | | 2,076,441 | |
Fraser Public School District Michigan, GO, (Q-SBLF): | | | | | | | | |
School Building & Site (AGM), 5.00%, 5/01/25 (a) | | | 1,255 | | | | 1,270,462 | |
Refunding, 5.00%, 5/01/29 (b) | | | 580 | | | | 696,452 | |
Goodrich Area School District Michigan, GO, School Building & Site (Q-SBLF): | | | | | | | | |
5.50%, 5/01/32 | | | 400 | | | | 476,708 | |
5.50%, 5/01/36 | | | 800 | | | | 946,576 | |
5.50%, 5/01/41 | | | 1,000 | | | | 1,182,380 | |
Harper Creek Community School District Michigan, GO, Refunding, (AGM) (Q-SBLF), 5.00%, 5/01/22 | | | 1,000 | | | | 1,011,750 | |
Hudsonville Public Schools, GO, School Building & Site (Q-SBLF), 5.25%, 5/01/41 | | | 2,650 | | | | 3,013,421 | |
Jonesville Community Schools Michigan, GO, Refunding, (NPFGC) (Q-SBLF), 5.00%, 5/01/29 | | | 1,085 | | | | 1,096,121 | |
L’Anse Creuse Public Schools Michigan, GO, School Building & Site (AGM) (Q-SBLF) (a): | | | | | | | | |
5.00%, 5/01/26 | | | 1,050 | | | | 1,062,936 | |
5.00%, 5/01/35 | | | 2,000 | | | | 2,024,640 | |
Lincoln Consolidated School District Michigan, GO, Refunding, (NPFGC) (Q-SBLF), 4.63%, 5/01/28 | | | 1,675 | | | | 1,746,740 | |
Livonia Public Schools School District Michigan, GO, Series I (AGM), 5.00%, 5/01/43 | | | 1,910 | | | | 2,196,385 | |
Romulus Community Schools, GO, Unlimited Tax, Refunding (AGM) (Q-SBLF): | | | | | | | | |
4.25%, 5/01/27 | | | 725 | | | | 800,074 | |
4.50%, 5/01/29 | | | 630 | | | | 700,182 | |
Roseville Community Schools, GO, Refunding(Q-SBLF): | | | | | | | | |
5.00%, 5/01/30 | | | 1,615 | | | | 1,931,282 | |
5.00%, 5/01/31 | | | 1,000 | | | | 1,191,900 | |
5.00%, 5/01/34 (b) | | | 2,320 | | | | 2,726,812 | |
Thornapple Kellogg School District Michigan, GO, Refunding, School Building & Site (NPFGC)
(Q-SBLF), 5.00%, 5/01/32 (a) | | | 1,500 | | | | 1,649,595 | |
| Municipal Bonds | | Par (000) | | | Value | |
Michigan (continued) | |
County/City/Special District/School District (concluded) | |
Troy School District, GO, (Q-SBLF), 5.00%, 5/01/28 | | $ | 760 | | | $ | 915,580 | |
Van Dyke Public Schools Michigan, GO, School Building & Site (AGM) (Q-SBLF), 5.00%, 5/01/28 | | | 750 | | | | 832,268 | |
Walled Lake Consolidated School District, GO,
(Q-SBLF): | | | | | | | | |
5.00%, 5/01/37 | | | 1,080 | | | | 1,266,008 | |
5.00%, 5/01/40 | | | 1,000 | | | | 1,167,160 | |
Walled Lake Consolidated School District, GO,
(Q-SBLF): | | | | | | | | |
5.00%, 5/01/43 | | | 1,530 | | | | 1,780,599 | |
| | | | | | | | |
| | | | | | | | 47,471,024 | |
Education — 20.7% | |
Central Michigan University, Refunding RB, 5.00%, 10/01/39 | | | 380 | | | | 448,962 | |
Ciy of Grand Rapids Michigan, EDC, RB, Ferris State University Project, Series A, 5.50%, 10/01/35 | | | 760 | | | | 875,991 | |
Ferris State University, Refunding RB, General (AGM): | | | | | | | | |
4.50%, 10/01/24 | | | 1,595 | | | | 1,780,833 | |
4.50%, 10/01/25 | | | 1,405 | | | | 1,568,697 | |
Michigan Finance Authority, Refunding RB: | | | | | | | | |
AMT, 4.00%, 11/01/28 | | | 3,325 | | | | 3,421,924 | |
AMT, 4.00%, 11/01/29 | | | 2,240 | | | | 2,296,627 | |
AMT, 4.00%, 11/01/30 | | | 1,080 | | | | 1,103,695 | |
AMT, 4.00%, 11/01/31 | | | 1,195 | | | | 1,220,011 | |
Michigan State University, Refunding RB, General: | | | | | | | | |
Series A, 5.00%, 8/15/41 | | | 3,035 | | | | 3,556,716 | |
Series C, 5.00%, 2/15/40 | | | 3,770 | | | | 4,292,635 | |
Series C, 5.00%, 2/15/44 | | | 1,000 | | | | 1,138,630 | |
Michigan Technological University, Refunding RB, Series A, 5.00%, 10/01/34 | | | 810 | | | | 927,920 | |
Oakland University, RB, General: | | | | | | | | |
5.00%, 3/01/32 | | | 400 | | | | 456,472 | |
Series A, 5.00%, 3/01/38 | | | 1,820 | | | | 2,095,093 | |
Series A, 5.00%, 3/01/43 | | | 2,980 | | | | 3,418,865 | |
University of Michigan, RB, Series A, 5.00%, 4/01/39 | | | 1,300 | | | | 1,554,215 | |
Wayne State University, RB, Series A, 5.00%, 11/15/40 | | | 1,000 | | | | 1,159,370 | |
Western Michigan University, Refunding RB, General: | | | | | | | | |
5.00%, 11/15/39 | | | 665 | | | | 764,311 | |
University and College Improvements, 5.25%, 11/15/40 | | | 1,400 | | | | 1,607,018 | |
University and College Improvements, 5.25%, 11/15/43 | | | 3,220 | | | | 3,814,348 | |
University and College Improvements (AGM), 5.25%, 11/15/33 | | | 380 | | | | 443,388 | |
| | | | | | | | |
| | | | | | | | 37,945,721 | |
Health — 30.4% | |
Grand Traverse County Hospital Finance Authority, RB, Series A: | | | | | | | | |
5.00%, 7/01/44 | | | 655 | | | | 751,934 | |
5.00%, 7/01/47 | | | 835 | | | | 956,559 | |
Kalamazoo Hospital Finance Authority, RB, Bronson Methodist Hospital (AGM), 5.25%, 5/15/36 | | | 2,750 | | | | 3,059,073 | |
Kent Hospital Finance Authority Michigan, Refunding RB, Spectrum Health, Series A, 5.00%, 11/15/29 | | | 3,000 | | | | 3,500,370 | |
Michigan Finance Authority, RB, Sparrow Obligated Group, 5.00%, 11/15/36 | | | 950 | | | | 1,053,227 | |
Michigan Finance Authority, Refunding RB: | | | | | | | | |
5.00%, 6/01/39 | | | 570 | | | | 656,190 | |
Hospital, Oakwood Obligated Group, 5.00%, 8/15/31 | | | 570 | | | | 664,204 | |
Trinity Health Credit Group, 5.00%, 12/01/31 | | | 1,900 | | | | 2,178,711 | |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 25 |
| | |
Schedule of Investments (continued) | | BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par (000) | | | Value | |
Michigan (continued) | |
Health (concluded) | |
Michigan Finance Authority, Refunding RB (concluded): | | | | | | | | |
Trinity Health Credit Group, 5.00%, 12/01/35 | | $ | 2,400 | | | $ | 2,719,968 | |
Trinity Health Credit Group, 5.00%, 12/01/39 | | | 1,650 | | | | 1,854,699 | |
Michigan State Hospital Finance Authority, RB: | | | | | | | | |
Ascension Health Senior Credit Group, 5.00%, 11/15/25 | | | 2,300 | | | | 2,646,219 | |
McLaren Health Care, Series C, 5.00%, 8/01/35 | | | 1,585 | | | | 1,619,727 | |
MidMichigan Obligated Group, Series A, 5.00%, 4/15/16 (a) | | | 380 | | | | 401,645 | |
Michigan State Hospital Finance Authority, Refunding RB: | | | | | | | | |
Hospital, Oakwood Obligated Group, Series A, 5.00%, 7/15/21 (a) | | | 400 | | | | 442,516 | |
Trinity Health Credit, Series A, 5.00%, 12/01/26 | | | 855 | | | | 922,271 | |
Hospital, Oakwood Obligated Group, Series A, 5.00%, 7/15/25 (a) | | | 2,470 | | | | 2,732,536 | |
Hospital, Oakwood Obligated Group, Series A, 5.00%, 7/15/37 (a) | | | 3,340 | | | | 3,695,009 | |
Hospital, Sparrow Obligated Group,
5.00%, 11/15/31 | | | 1,595 | | | | 1,733,765 | |
McLaren Health Care, Series A, 5.00%, 6/01/35 | | | 860 | | | | 964,653 | |
McLaren Health Care, Series A, 5.75%, 5/15/38 | | | 1,500 | | | | 1,695,150 | |
Trinity Health Credit Group, Series A,
6.13%, 12/01/23 | | | 940 | | | | 1,093,812 | |
Trinity Health Credit Group, Series A,
6.25%, 12/01/28 | | | 570 | | | | 666,193 | |
Trinity Health Credit Group, Series C,
4.00%, 12/01/32 | | | 2,450 | | | | 2,603,542 | |
Trinity Health Credit, Series A, 6.50%, 12/01/33 | | | 1,400 | | | | 1,654,170 | |
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital: | | | | | | | | |
Series D, 5.00%, 9/01/39 | | | 10,500 | | | | 12,086,970 | |
Series V, 8.25%, 9/01/18 (a) | | | 1,000 | | | | 1,262,830 | |
Series W, 6.00%, 8/01/39 (a) | | | 575 | | | | 702,265 | |
State of Michigan Hospital Finance Authority, Refunding RB, Henry Ford Health, 5.75%, 11/15/39 | | | 1,200 | | | | 1,379,136 | |
| | | | | | | | |
| | | | | | | | 55,697,344 | |
Housing — 7.4% | | | | | | | | |
Michigan State HDA, RB: | | | | | | | | |
Deaconess Tower, AMT (Ginnie Mae), 5.25%, 2/20/48 | | | 1,000 | | | | 1,021,610 | |
Series A, 4.75%, 12/01/25 | | | 2,605 | | | | 2,826,243 | |
Series A, 4.45%, 10/01/34 | | | 380 | | | | 405,999 | |
Series A, 4.63%, 10/01/39 | | | 1,325 | | | | 1,412,596 | |
Series A, 4.75%, 10/01/44 | | | 1,900 | | | | 2,022,911 | |
Michigan State HDA, Refunding RB: | | | | | | | | |
Rental Housing, Series D, 4.50%, 10/01/48 | | | 3,770 | | | | 3,991,261 | |
Michigan State HDA, Refunding RB: | | | | | | | | |
Series A, 6.05%, 10/01/41 | | | 1,625 | | | | 1,814,199 | |
| | | | | | | | |
| | | | | | | | 13,494,819 | |
State — 13.0% | | | | | | | | |
Michigan Finance Authority, Refunding RB, Detroit Regional Convention Facility Authority Local Project Bonds, 5.00%, 10/01/39 | | | 2,050 | | | | 2,373,183 | |
Michigan Strategic Fund, Refunding RB, Cadillac Place Office Building Project, 5.25%, 10/15/31 | | | 2,650 | | | | 3,070,740 | |
State of Michigan Building Authority, RB, Local Government Loan Program, Series F, 5.25%, 10/01/41 | | | 2,510 | | | | 2,788,058 | |
State of Michigan Building Authority, Refunding RB, Facilities Program: | | | | | | | | |
Series I, 6.25%, 10/15/38 | | | 2,350 | | | | 2,761,650 | |
| Municipal Bonds | | Par (000) | | | Value | |
Michigan (concluded) | |
State (concluded) | |
State of Michigan Building Authority, Refunding RB, Facilities Program (concluded): | | | | | | | | |
Series I (AGC), 5.25%, 10/15/24 | | $ | 2,000 | | | $ | 2,346,460 | |
Series I (AGC), 5.25%, 10/15/25 | | | 1,500 | | | | 1,753,875 | |
Series I (AGC), 5.25%, 10/15/26 | | | 400 | | | | 466,628 | |
Series I-A, 5.50%, 10/15/45 | | | 750 | | | | 875,025 | |
Series II (AGM), 5.00%, 10/15/26 | | | 3,000 | | | | 3,465,780 | |
State of Michigan Trunk Line Fund, RB: | | | | | | | | |
5.00%, 11/15/33 | | | 1,150 | | | | 1,351,112 | |
5.00%, 11/15/36 | | | 2,220 | | | | 2,583,325 | |
| | | | | | | | |
| | | | | | | | 23,835,836 | |
Transportation — 13.1% | | | | | | | | |
State of Michigan, RB, GAB (AGM), 5.25%, 9/15/27 | | | 3,250 | | | | 3,609,353 | |
Wayne County Airport Authority, RB, Detroit Metropolitan Wayne County Airport, AMT (NPFGC): | | | | | | | | |
5.25%, 12/01/25 | | | 3,730 | | | | 3,868,047 | |
5.25%, 12/01/26 | | | 3,700 | | | | 3,836,937 | |
5.00%, 12/01/34 | | | 3,550 | | | | 3,661,718 | |
5.00%, 12/01/39 | | | 560 | | | | 632,352 | |
Wayne County Airport Authority, Refunding RB, AMT (AGC): | | | | | | | | |
5.75%, 12/01/26 | | | 3,060 | | | | 3,496,234 | |
Wayne County Airport Authority, Refunding RB, AMT (AGC): | | | | | | | | |
5.38%, 12/01/32 | | | 4,300 | | | | 4,863,644 | |
| | | | | | | | |
| | | | | | | | 23,968,285 | |
Utilities — 20.3% | | | | | | | | |
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39 | | | 1,010 | | | | 1,112,111 | |
City of Detroit Michigan Water Supply System, RB, Senior Lien, Series A (NPFGC), 5.00%, 7/01/34 | | | 915 | | | | 918,175 | |
City of Detroit Michigan Water Supply System, Refunding RB, 2nd Lien, Series C (AGM), 5.00%, 7/01/29 | | | 6,275 | | | | 6,486,969 | |
City of Grand Rapids Michigan, Refunding RB, Series A (NPFGC), 5.50%, 1/01/22 | | | 1,500 | | | | 1,779,210 | |
City of Holland Michigan Electric Utility System, RB, Series A: | | | | | | | | |
5.00%, 7/01/33 | | | 1,140 | | | | 1,324,965 | |
5.00%, 7/01/39 | | | 4,640 | | | | 5,366,810 | |
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A: | | | | | | | | |
5.00%, 7/01/27 | | | 1,210 | | | | 1,418,507 | |
5.00%, 7/01/31 | | | 2,600 | | | | 3,006,614 | |
5.00%, 7/01/37 | | | 1,270 | | | | 1,452,347 | |
5.50%, 7/01/41 | | | 2,000 | | | | 2,403,040 | |
City of Port Huron Michigan, RB, Water Supply System: | | | | | | | | |
5.25%, 10/01/31 | | | 190 | | | | 212,975 | |
5.63%, 10/01/40 | | | 500 | | | | 566,820 | |
City of Wyoming Michigan, RB, Sewer System (NPFGC), 5.00%, 6/01/30 | | | 5,300 | | | | 5,376,426 | |
Michigan Finance Authority, Refunding RB, Senior Lien, Detroit Water and Sewer, Series C-3: | | | | | | | | |
5.00%, 7/01/31 | | | 380 | | | | 438,915 | |
5.00%, 7/01/32 | | | 1,995 | | | | 2,293,751 | |
5.00%, 7/01/33 | | | 1,140 | | | | 1,305,710 | |
Michigan Municipal Bond Authority, RB, State Clean Water Revolving Fund: | | | | | | | | |
5.00%, 10/01/27 | | | 750 | | | | 803,047 | |
Pooled Project, 5.00%, 10/01/27 | | | 760 | | | | 901,421 | |
| | | | | | | | |
| | | | | | | | 37,167,813 | |
| Total Municipal Bonds in Michigan | | | | | | | 244,705,340 | |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| 26 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
Schedule of Investments (continued) | | BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par (000) | | | Value | |
Guam — 3.4% | | | | | | | | |
State — 3.4% | | | | | |
Territory of Guam, RB: | | | | | | | | |
Business Privilege Tax Bonds, Series A, 5.25%, 1/01/36 | | $ | 310 | | | $ | 353,701 | |
Business Privilege Tax Bonds, Series A, 5.13%, 1/01/42 | | | 3,390 | | | | 3,823,479 | |
Business Privilege Tax Bonds, Series B-1, 5.00%, 1/01/32 | | | 570 | | | | 645,308 | |
Business Privilege Tax Bonds, Series B-1, 5.00%, 1/01/37 | | | 405 | | | | 453,385 | |
Limited Obligation Bonds, Section 30, Series A, 5.63%, 12/01/29 | | | 850 | | | | 949,306 | |
| Total Municipal Bonds in Guam | | | | | | | 6,225,179 | |
| | | | | | | | |
U.S. Virgin Islands — 2.1% | | | | | | | | |
State — 2.1% | | | | | |
Virgin Islands Public Finance Authority, Refunding RB, Series C, 5.00%, 10/01/39 | | | 3,395 | | | | 3,797,715 | |
| Total Municipal Bonds — 139.2% | | | | | | | 254,728,234 | |
| | | | | | | | |
| | |
|
Municipal Bonds Transferred to
Tender Option Bond Trusts (c) | |
Michigan — 15.3% | | | | | | | | |
County/City/Special District/School District — 4.2% | |
Lakewood Public Schools Michigan, GO, School Building & Site (AGM) (Q-SBLF), 5.00%, 5/01/37 | | | 4,154 | | | | 4,476,214 | |
Portage Public Schools Michigan, GO, School Building & Site (AGM), 5.00%, 5/01/31 | | | 2,850 | | | | 3,140,016 | |
| | | | | | | | |
| | | | | | | | 7,616,230 | |
Municipal Bonds Transferred to
Tender Option Bond Trusts (c) | | Par (000) | | | Value | |
Michigan (concluded) | | | | | | | | |
Education — 11.1% | | | | | | | | |
Michigan State University, Refunding RB, General, Series A, 5.00%, 8/15/38 | | $ | 3,780 | | | $ | 4,451,819 | |
Saginaw Valley State University, Refunding RB, General (AGM), 5.00%, 7/01/31 | | | 2,500 | | | | 2,773,375 | |
Wayne State Univeristy, RB, General, Series A, 5.00%, 11/15/40 | | | 3,810 | | | | 4,417,200 | |
Wayne State University, Refunding RB, General (AGM), 5.00%, 11/15/35 | | | 7,793 | | | | 8,734,458 | |
| | | | | | | | |
| | | | | | | | 20,376,852 | |
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 15.3% | | | | | | | 27,993,082 | |
Total Long-Term Investments
(Cost — $257,378,211) — 154.5% | | | | | | | 282,721,316 | |
| | | | | | | | |
| | | | | | | | | |
| | |
| Short-Term Securities | | Shares | | | | |
FFI Institutional Tax-Exempt Fund, 0.03% (d)(e) | | | 2,086,460 | | | | 2,086,460 | |
Total Short-Term Securities
(Cost — $2,086,460) — 1.1% | | | | | | | 2,086,460 | |
Total Investments
(Cost — $259,464,671) — 155.6% | | | | 284,807,776 | |
| Liabilities in Excess of Other Assets — (0.5)% | | | | (1,027,355 | ) |
Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (7.4%) | | | | (13,495,214 | ) |
| VRDP Shares, at Liquidation Value — (47.7%) | | | | (87,300,000 | ) |
| | | | | | | | |
| Net Assets Applicable to Common Shares — 100.0% | | | $ | 182,985,207 | |
| | | | | | | | |
|
| 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. Unsettled when-issued transactions were as follows: |
| | | | | | | | |
| Counterparty | | Value | | | Unrealized
Appreciation | |
Stifel Nicolaus | | $ | 3,423,264 | | | $ | 55,390 | |
| (c) | | Represent bonds transferred to a TOB. In exchange for which the Fund received cash and residual interest certificates. These bonds serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
| (d) | | During the six months ended January 31, 2015, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the 1940 Act were as follows: |
| | | | | | | | | | | | | | | | |
| Affiliate | | Shares Held
at July 31,
2014 | | | Net Activity | | | Shares Held
at January 31,
2015 | | | Income | |
BIF Michigan Money Fund | | | 2,269,658 | | | | (2,269,658 | ) | | | — | | | | — | |
FFI Institutional Tax-Exempt Fund | | | — | | | | 2,086,460 | | | | 2,086,460 | | | $ | 147 | |
| (e) | | Represents the current yield as of report date. |
| Ÿ | | As of January 31, 2015, financial futures contracts outstanding were as follows: |
| | | | | | | | | | | | | | | | |
| Contracts Short | | | Issue | | Exchange | | Expiration | | Notional
Value | | | Unrealized
Depreciation | |
| | (135 | ) | | 10-Year U.S. Treasury Note | | Chicago Board of Trade | | March 2015 | | $ | 17,668,125 | | | $ | (396,792 | ) |
| Ÿ | | 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, 2015 | | 27 |
| | |
Schedule of Investments (concluded) | | BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM) |
| Ÿ | | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. 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 categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows: |
| | Ÿ | | Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access |
| | Ÿ | | 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) |
| | Ÿ | | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.
As of January 31, 2015, 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 | | | | | | $ | 282,721,316 | | | | — | | | $ | 282,721,316 | |
Short-Term Securities | | $ | 2,086,460 | | | | — | | | | — | | | | 2,086,460 | |
| | | | |
Total | | $ | 2,086,460 | | | $ | 282,721,316 | | | | — | | | $ | 284,807,776 | |
| | | | |
1 See above Schedule of Investments for values in each sector. | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Derivative Financial Instruments2 | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | |
Interest rate contracts | | $ | (396,792 | ) | | | — | | | | — | | | $ | (396,792 | ) |
2 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 January 31, 2015, 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 | | $ | 184,000 | | | | — | | | | — | | | $ | 184,000 | |
Liabilities: | | | | | | | | | | | | | | | | |
TOB trust certificates | | | — | | | $ | (13,492,998 | ) | | | — | | | | (13,492,998 | ) |
VRDP Shares | | | — | | | | (87,300,000 | ) | | | — | | | | (87,300,000 | ) |
| | | | |
Total | | $ | 184,000 | | | $ | (100,792,998 | ) | | | — | | | $ | (100,608,998 | ) |
| | | | |
During the six months ended January 31, 2015, there were no transfers between levels.
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| 28 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
Schedule of Investments January 31, 2015 (Unaudited) | | BlackRock MuniYield New York Quality Fund, Inc. (MYN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par
(000) | | | Value | |
New York — 121.6% | | | | | | | | |
Corporate — 3.4% | |
City of New York New York Industrial Development Agency, Refunding RB, AMT: | | | | | | | | |
Terminal One Group Association Project, 5.50%, 1/01/24 (a) | | $ | 1,500 | | | $ | 1,566,150 | |
Transportation Infrastructure Properties LLC, Series A, 5.00%, 7/01/28 | | | 930 | | | | 1,036,187 | |
County of Suffolk New York Industrial Development Agency, RB, KeySpan Generation LLC, Port Jefferson, AMT, 5.25%, 6/01/27 | | | 4,000 | | | | 4,018,520 | |
New York Liberty Development Corp., RB, Goldman Sachs Headquarters, 5.25%, 10/01/35 | | | 6,500 | | | | 8,108,295 | |
New York State Energy Research & Development Authority, Refunding RB, Brooklyn Union Gas/Keyspan, Series A, AMT (NPFGC), 4.70%, 2/01/24 | | | 4,750 | | | | 4,932,400 | |
| | | | | | | | |
| | | | | | | | 19,661,552 | |
County/City/Special District/School District — 29.6% | |
Buffalo & County of Erie New York Industrial Land Development Corp., Refunding RB, Buffalo State College Foundation Housing Corp. Project, Series A, 5.38%, 10/01/41 | | | 1,040 | | | | 1,190,405 | |
City of New York New York, GO, Fiscal 2012, Sub-Series D-1, 5.00%, 10/01/33 | | | 8,350 | | | | 9,791,293 | |
City of New York New York, GO, Refunding: | | | | | | | | |
Fiscal 2012, Series I, 5.00%, 8/01/32 | | | 490 | | | | 574,427 | |
Fiscal 2014, Series E, 5.00%, 8/01/32 | | | 2,040 | | | | 2,421,602 | |
Series E, 5.50%, 8/01/25 | | | 6,230 | | | | 7,944,434 | |
City of New York New York, GO: | | | | | | | | |
Series A-1, 5.00%, 8/01/31 | | | 1,300 | | | | 1,547,559 | |
Series A-1, 5.00%, 8/01/35 | | | 1,950 | | | | 2,272,023 | |
Sub-Series A-1, 5.00%, 8/01/33 | | | 2,100 | | | | 2,482,263 | |
Sub-Series A-1, 5.00%, 10/01/34 | | | 1,845 | | | | 2,159,425 | |
City of New York New York Convention Center Development Corp., RB, Hotel Unit Fee Secured (AMBAC): | | | | | | | | |
5.00%, 11/15/35 | | | 30,600 | | | | 31,572,162 | |
5.00%, 11/15/44 | | | 11,670 | | | | 12,053,943 | |
City of New York New York Housing Development Corp., RB, Fund Grant Program, New York City Housing Authority Program, Series B1: | | | | | | | | |
5.25%, 7/01/32 | | | 6,865 | | | | 8,146,901 | |
5.00%, 7/01/33 | | | 1,675 | | | | 1,934,709 | |
City of New York New York Industrial Development Agency, RB, PILOT: | | | | | | | | |
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 3/01/39 (b) | | | 5,000 | | | | 2,036,550 | |
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 3/01/43 (b) | | | 4,330 | | | | 1,458,214 | |
Queens Baseball Stadium (AGC), 6.38%, 1/01/39 | | | 1,000 | | | | 1,174,030 | |
Queens Baseball Stadium (AMBAC), 5.00%, 1/01/36 | | | 6,910 | | | | 7,173,616 | |
Queens Baseball Stadium (AMBAC), 5.00%, 1/01/39 | | | 1,750 | | | | 1,816,763 | |
Yankee Stadium Project (NPFGC), 5.00%, 3/01/36 | | | 2,250 | | | | 2,378,025 | |
Yankee Stadium Project (NPFGC), 5.00%, 3/01/46 | | | 9,650 | | | | 9,975,398 | |
City of New York New York Transitional Finance Authority Future Tax Secured, RB: | | | | | | | | |
(NPFGC), 5.00%, 2/01/33 | | | 1,640 | | | | 1,646,494 | |
Sub-Series A-1, 5.00%, 11/01/38 | | | 1,000 | | | | 1,185,900 | |
Sub-Series B-1, 5.00%, 11/01/35 | | | 2,510 | | | | 2,986,574 | |
Sub-Series B-1, 5.00%, 11/01/36 | | | 1,690 | | | | 2,006,300 | |
| Municipal Bonds | | Par
(000) | | | Value | |
New York (continued) | | | | | | | | |
County/City/Special District/School District (concluded) | |
City of New York New York Transitional Finance Authority Future Tax Secured, Refunding RB, (NPFGC), 5.00%, 11/15/26 | | $ | 205 | | | $ | 205,814 | |
County of Erie New York Industrial Development Agency, RB, City School District of Buffalo Project, Series A: | | | | | | | | |
5.25%, 5/01/31 | | | 2,305 | | | | 2,726,354 | |
5.25%, 5/01/32 | | | 1,000 | | | | 1,180,880 | |
Hudson Yards Infrastructure Corp., RB: | | | | | | | | |
Series A (AGC), 5.00%, 2/15/47 | | | 550 | | | | 588,275 | |
Series A (AGC), 5.00%, 2/15/47 | | | 4,300 | | | | 4,599,237 | |
Series A (AGM), 5.00%, 2/15/47 | | | 4,580 | | | | 4,898,722 | |
Series A (NPFGC), 4.50%, 2/15/47 | | | 14,175 | | | | 14,996,016 | |
Series A (NPFGC), 5.00%, 2/15/47 | | | 4,665 | | | | 4,981,847 | |
New York Liberty Development Corp., Refunding RB: | | | | | | | | |
4 World Trade Center Project, 5.00%, 11/15/31 | | | 2,570 | | | | 2,953,367 | |
4 World Trade Center Project, 5.00%, 11/15/44 | | | 2,000 | | | | 2,266,380 | |
4 World Trade Center Project, 5.75%, 11/15/51 | | | 3,460 | | | | 4,129,648 | |
7 World Trade Center Project, Class 1,
4.00%, 9/15/35 | | | 1,090 | | | | 1,197,572 | |
7 World Trade Center Project, Class 2,
5.00%, 9/15/43 | | | 4,725 | | | | 5,359,426 | |
North Country Development Authority, Refunding RB, (AGM), 6.00%, 5/15/15 | | | 205 | | | | 207,550 | |
Syracuse New York Industrial Development Agency, RB, PILOT, Carousel Center Project, Series A, AMT (Syncora), 5.00%, 1/01/36 | | | 3,400 | | | | 3,459,262 | |
Town of North Hempstead New York, GO, Refunding, Series B (NPFGC), 6.40%, 4/01/17 | | | 555 | | | | 622,222 | |
| | | | | | | | |
| | | | | | | | 172,301,582 | |
Education — 21.5% | |
Albany Capital Resource Corp., Refunding RB, Series A: | | | | | | | | |
Albany College of Pharmacy and Health Sciences, 5.00%, 12/01/32 | | | 100 | | | | 115,998 | |
Albany College of Pharmacy and Health Sciences, 4.00%, 12/01/34 | | | 110 | | | | 114,540 | |
5.00%, 12/01/31 | | | 250 | | | | 290,225 | |
Amherst Development Corp., Refunding RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.63%, 10/01/40 | | | 2,000 | | | | 2,172,560 | |
Build New York City Resource Corp., Refunding RB, Series A, 5.00%, 6/01/43 | | | 525 | | | | 614,119 | |
City of New York New York Trust for Cultural Resources, Refunding RB: | | | | | | | | |
American Museum of National History, Series A, 5.00%, 7/01/37 | | | 2,265 | | | | 2,712,337 | |
American Museum of National History, Series A, 5.00%, 7/01/41 | | | 825 | | | | 977,345 | |
Carnegie Hall, Series A, 4.75%, 12/01/39 | | | 3,550 | | | | 3,948,594 | |
Carnegie Hall, Series A, 5.00%, 12/01/39 | | | 2,150 | | | | 2,453,838 | |
Museum of Modern Art, Series 1A, 5.00%, 4/01/31 | | | 1,000 | | | | 1,129,360 | |
Wildlife Conservation Society, Series A, 5.00%, 8/01/42 | | | 750 | | | | 869,160 | |
City of Troy New York Capital Resource Corp., Refunding RB, Rensselaer Polytechnic Institute Project, Series A, 5.13%, 9/01/40 | | | 6,445 | | | | 7,330,156 | |
County of Madison New York Industrial Development Agency, RB, Colgate University Project, Series A (AMBAC): | | | | | | | | |
5.00%, 7/01/35 | | | 2,675 | | | | 2,703,997 | |
5.00%, 7/01/30 | | | 5,410 | | | | 5,474,379 | |
County of Monroe New York Industrial Development Corp., RB, University of Rochester Project, Series B, 4.50%, 7/01/35 | | | 3,885 | | | | 4,251,394 | |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 29 |
| | |
Schedule of Investments (continued) | | BlackRock MuniYield New York Quality Fund, Inc. (MYN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par
(000) | | | Value | |
New York (continued) | | | | | | | | |
Education (continued) | |
County of Monroe New York Industrial Development Corp., Refunding RB, University of Rochester Project, Series A, 5.00%, 7/01/38 | | $ | 1,440 | | | $ | 1,678,478 | |
County of Onondaga New York, RB, Syracuse University Project: | | | | | | | | |
5.00%, 12/01/30 | | | 1,190 | | | | 1,376,651 | |
5.00%, 12/01/36 | | | 1,150 | | | | 1,315,600 | |
County of Rensselaer New York Industrial Development Agency, RB, Polytechnic Institute, Series B (AMBAC), 5.50%, 8/01/22 | | | 1,255 | | | | 1,260,447 | |
County of St. Lawrence New York Industrial Development Agency, RB, Clarkson University Project, 5.38%, 9/01/41 | | | 500 | | | | 576,770 | |
County of Tompkins New York Development Corp., RB, Ithaca College Project (AGM): | | | | | | | | |
5.50%, 7/01/33 | | | 500 | | | | 577,880 | |
5.25%, 7/01/36 | | | 860 | | | | 977,192 | |
County of Tompkins New York Industrial Development Agency, RB, Civic Facility Cornell University Project, Series A, 5.00%, 7/01/37 | | | 675 | | | | 787,003 | |
State of New York Dormitory Authority, RB: | | | | | | | | |
Convent of the Sacred Heart (AGM), 5.75%, 11/01/40 | | | 2,075 | | | | 2,462,631 | |
Fordham University, Series A, 5.00%, 7/01/28 | | | 325 | | | | 381,004 | |
Fordham University, Series A, 5.50%, 7/01/36 | | | 1,550 | | | | 1,860,310 | |
General Purpose, Series A, 5.00%, 2/15/36 | | | 5,500 | | | | 6,443,525 | |
New School (AGM), 5.50%, 7/01/43 | | | 4,050 | | | | 4,737,163 | |
New York University Mount Sinai School of Medicine at NYU, 5.13%, 7/01/39 | | | 665 | | | | 753,990 | |
New York University, Series 1 (AMBAC), 5.50%, 7/01/40 | | | 4,580 | | | | 6,293,103 | |
New York University, Series B, 5.00%, 7/01/34 | | | 1,000 | | | | 1,141,770 | |
New York University, Series B, 5.00%, 7/01/37 | | | 600 | | | | 698,346 | |
New York University, Series B, 5.00%, 7/01/42 | | | 3,240 | | | | 3,730,892 | |
New York University, Series C, 5.00%, 7/01/38 | | | 2,000 | | | | 2,247,080 | |
State University Dormitory Facilities, Series A, 5.00%, 7/01/35 | | | 800 | | | | 924,680 | |
State University Dormitory Facilities, Series A, 5.00%, 7/01/40 | | | 2,035 | | | | 2,344,239 | |
State University Dormitory Facilities, Series A, 5.00%, 7/01/41 | | | 1,500 | | | | 1,743,240 | |
State of New York Dormitory Authority, Refunding RB: | | | | | | | | |
3rd General Resolution, State University Educational Facilities Issue, Series A, 5.00%, 5/15/29 | | | 1,000 | | | | 1,192,410 | |
Cornell University, Series A, 5.00%, 7/01/40 | | | 1,000 | | | | 1,162,560 | |
Fordham University, 4.13%, 7/01/39 | | | 930 | | | | 1,000,606 | |
Fordham University, 5.00%, 7/01/44 | | | 2,130 | | | | 2,479,150 | |
New York University Mount Sinai School of Medicine (NPFGC), 5.00%, 7/01/35 | | | 6,100 | | | | 6,572,140 | |
New York University, Series A, 5.00%, 7/01/31 | | | 3,955 | | | | 4,626,559 | |
New York University, Series A, 5.00%, 7/01/37 | | | 4,775 | | | | 5,557,670 | |
Rochester Institute of Technology, 4.00%, 7/01/32 | | | 2,355 | | | | 2,515,423 | |
Rochester Institute of Technology, 5.00%, 7/01/38 | | | 500 | | | | 571,780 | |
Rochester Institute of Technology, 5.00%, 7/01/42 | | | 750 | | | | 853,905 | |
Rockefeller University, Series B, 4.00%, 7/01/38 | | | 1,370 | | | | 1,488,039 | |
St. John’s University, Series A, 5.00%, 7/01/27 | | | 430 | | | | 503,973 | |
State University Dormitory Facilities, Series A, 5.25%, 7/01/30 | | | 4,195 | | | | 5,126,500 | |
State University Dormitory Facilities, Series A, 5.25%, 7/01/31 | | | 8,735 | | | | 10,659,670 | |
| Municipal Bonds | | Par
(000) | | | Value | |
New York (concluded) | | | | | | | | |
Education (concluded) | |
State of New York Dormitory Authority, Refunding RB (concluded): | |
State University Dormitory Facilities, Series A, 5.00%, 7/01/42 | | $ | 1,490 | | | $ | 1,707,123 | |
| | | | | | | | |
| | | | | | | | 125,487,504 | |
Health — 9.5% | | | | | | | | |
City of New York New York Health & Hospital Corp., Refunding RB, Health System, Series A, 5.00%, 2/15/30 | | | 2,200 | | | | 2,508,198 | |
County of Dutchess New York Industrial Development Agency, RB, Vassar Brothers Medical Center, (AGC): | | | | | | | | |
5.50%, 4/01/30 | | | 250 | | | | 295,640 | |
5.50%, 4/01/34 | | | 490 | | | | 575,730 | |
County of Monroe New York Industrial Development Corp., RB, Rochester General Hospital Project, Series A: | | | | | | | | |
5.00%, 12/01/32 | | | 830 | | | | 942,025 | |
5.00%, 12/01/37 | | | 350 | | | | 391,801 | |
County of Monroe New York Industrial Development Corp., Refunding RB: | | | | | | | | |
Rochester General Hospital Project, Series B, 3.60%, 12/01/32 | | | 565 | | | | 585,221 | |
Unity Hospital of Rochester Project (FHA), 5.50%, 8/15/40 | | | 5,650 | | | | 6,728,020 | |
County of Suffolk New York Economic Development Corp., RB, Catholic Health Services, Series C, 5.00%, 7/01/32 | | | 625 | | | | 726,338 | |
County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien, Remarketing, Series A, 5.00%, 11/01/30 | | | 2,000 | | | | 2,254,720 | |
State of New York Dormitory Authority, RB: | | | | | | | | |
Healthcare, Series A, 5.00%, 3/15/38 | | | 2,000 | | | | 2,268,120 | |
Hudson Valley Hospital (BHAC) (FHA), 5.00%, 8/15/36 | | | 6,500 | | | | 7,100,275 | |
Montefiore Hospital (NPFGC) (FHA), 5.00%, 8/01/33 | | | 1,500 | | | | 1,505,595 | |
New York University Hospitals Center, Series A, 5.75%, 7/01/31 | | | 3,450 | | | | 4,035,879 | |
New York University Hospitals Center, Series A, 6.00%, 7/01/40 | | | 1,100 | | | | 1,287,891 | |
North Shore-Long Island Jewish Obligated Group, Series A, 5.50%, 5/01/37 | | | 2,075 | | | | 2,369,608 | |
North Shore-Long Island Jewish Obligated Group, Series C, 4.25%, 5/01/39 | | | 1,000 | | | | 1,069,450 | |
North Shore-Long Island Jewish Obligated Group, Series D, 4.25%, 5/01/39 | | | 800 | | | | 855,560 | |
State of New York Dormitory Authority, Refunding RB, Series A: | | | | | | | | |
New York University Hospitals Center, 4.90%, 8/15/15 (c) | | | 2,900 | | | | 2,974,124 | |
New York University Hospitals Center, 5.00%, 7/01/36 (c) | | | 1,500 | | | | 1,658,280 | |
North Shore-Long Island Jewish Obligated Group, 5.00%, 5/01/32 | | | 4,000 | | | | 4,528,360 | |
North Shore-Long Island Jewish Obligated Group, 5.25%, 5/01/34 | | | 9,220 | | | | 10,535,510 | |
| | | | | | | | |
| | | | | | | | 55,196,345 | |
Housing — 4.5% | | | | | | | | |
City of New York New York Housing Development Corp., RB, M/F Housing: | | | | | | | | |
Class F, 4.50%, 2/15/48 | | | 1,230 | | | | 1,259,754 | |
Series A-1-A, AMT, 5.00%, 11/01/30 | | | 750 | | | | 780,517 | |
Series A-1-A, AMT, 5.45%, 11/01/46 | | | 1,335 | | | | 1,377,787 | |
Series C, AMT, 5.00%, 11/01/26 | | | 1,500 | | | | 1,521,060 | |
Series C, AMT, 5.05%, 11/01/36 | | | 2,000 | | | | 2,042,560 | |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| 30 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
Schedule of Investments (continued) | | BlackRock MuniYield New York Quality Fund, Inc. (MYN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par
(000) | | | Value | |
New York (continued) | | | | | | | | |
Housing (concluded) | |
City of New York New York Housing Development Corp.,
RB, M/F Housing (concluded): | | | | | | | | |
Series H-1, AMT, 4.70%, 11/01/40 | | $ | 1,340 | | | $ | 1,361,561 | |
Series H-2-A, AMT, 5.20%, 11/01/35 | | | 840 | | | | 872,432 | |
Series H-2-A, AMT, 5.35%, 5/01/41 | | | 600 | | | | 629,148 | |
City of Yonkers New York Industrial Development Agency, RB, Monastery Manor Associates LP Project, AMT (SONYMA), 5.25%, 4/01/37 | | | 2,445 | | | | 2,461,357 | |
County of Monroe New York Industrial Development Agency, IDRB, Southview Towers Project, AMT (SONYMA): | | | | | | | | |
6.13%, 2/01/20 | | | 480 | | | | 481,637 | |
6.25%, 2/01/31 | | | 1,125 | | | | 1,127,756 | |
State of New York HFA, RB, St. Philip’s Housing, Series A, AMT (Fannie Mae), 4.65%, 11/15/38 | | | 1,500 | | | | 1,524,930 | |
State of New York Mortgage Agency, RB, S/F Housing, 49th Series, 4.00%, 10/01/43 | | | 2,405 | | | | 2,504,904 | |
State of New York Mortgage Agency, Refunding RB: | | | | | | | | |
48th Series, 3.70%, 10/01/38 | | | 4,285 | | | | 4,429,533 | |
S/F Housing, 143rd Series, AMT, 4.85%, 10/01/27 | | | 1,100 | | | | 1,143,692 | |
S/F Housing, 143rd Series, AMT (NPFGC), 4.85%, 10/01/27 | | | 2,485 | | | | 2,570,161 | |
| | | | | | | | |
| | | | | | | | 26,088,789 | |
State — 16.4% | |
City of New York New York Transitional Finance Authority, BARB: | | | | | | | | |
Fiscal 2008, Series S-1, 4.50%, 1/15/38 | | | 1,700 | | | | 1,782,467 | |
Fiscal 2009, Series S-1 (AGC), 5.50%, 7/15/38 | | | 6,000 | | | | 6,871,620 | |
Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/33 | | | 5,500 | | | | 6,407,610 | |
Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/39 | | | 1,500 | | | | 1,747,530 | |
Fiscal 2015, Series S-1, 5.00%, 7/15/43 | | | 3,570 | | | | 4,217,776 | |
Series S-2 (AGM) (NPFGC), 5.00%, 1/15/37 | | | 5,000 | | | | 5,368,200 | |
Series S-2 (NPFGC), 4.25%, 1/15/34 | | | 5,000 | | | | 5,141,000 | |
Metropolitan Transportation Authority, RB, Dedicated Tax Fund, Series A (NPFGC), 5.00%, 11/15/31 | | | 3,905 | | | | 4,187,917 | |
Metropolitan Transportation Authority, Refunding RB, Dedicated Tax Fund: | | | | | | | | |
Series B, 5.00%, 11/15/34 | | | 1,500 | | | | 1,719,585 | |
Sub-Series B-1, 5.00%, 11/15/31 | | | 3,465 | | | | 4,117,667 | |
Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A, 4.00%, 10/15/32 | | | 13,080 | | | | 14,761,565 | |
State of New York Dormitory Authority, RB: | | | | | | | | |
General Purpose, Series B, 5.00%, 3/15/37 | | | 1,000 | | | | 1,160,790 | |
General Purpose, Series B, 5.00%, 3/15/42 | | | 7,500 | | | | 8,621,550 | |
Master BOCES Program Lease (AGC), 5.00%, 8/15/28 | | | 1,750 | | | | 1,987,563 | |
School Districts Financing Program, Series C (AGM), 5.00%, 10/01/37 | | | 4,050 | | | | 4,440,703 | |
Series C, 5.00%, 12/15/31 | | | 6,230 | | | | 6,757,245 | |
State Personal Income Tax, Series A, 5.00%, 2/15/43 | | | 1,000 | | | | 1,162,110 | |
State Supported Debt, Series A, 5.00%, 3/15/44 | | | 4,550 | | | | 5,411,497 | |
State of New York Dormitory Authority, Refunding RB, School Districts Financing Program, Series A (AGM), 5.00%, 10/01/35 | | | 550 | | | | 603,059 | |
State of New York Thruway Authority, RB: | | | | | | | | |
2nd General Highway & Bridge Trust, Series A (AMBAC), 5.00%, 4/01/26 | | | 4,380 | | | | 4,613,279 | |
2nd General Highway & Bridge Trust, Series B, 5.00%, 4/01/27 | | | 1,500 | | | | 1,652,745 | |
Transportation, Series A, 5.00%, 3/15/32 | | | 1,130 | | | | 1,337,434 | |
New York (continued) | | | | | | | | |
State (concluded) | |
State of New York Urban Development Corp., RB, State Personal Income Tax, Series A, 3.50%, 3/15/28 | | $ | 1,500 | | | $ | 1,589,565 | |
| | | | | | | | |
| | | | | | | | 95,660,477 | |
Tobacco — 1.2% | |
Chautauqua Tobacco Asset Securitization Corp., Refunding RB, 4.75%, 6/01/39 | | | 2,190 | | | | 2,204,651 | |
Niagara Tobacco Asset Securitization Corp., Refunding RB: | | | | | | | | |
5.25%, 5/15/34 | | | 1,650 | | | | 1,919,940 | |
5.25%, 5/15/40 | | | 2,250 | | | | 2,604,375 | |
| | | | | | | | |
| | | | | | | | 6,728,966 | |
Transportation — 25.4% | |
Metropolitan Transportation Authority, RB: | | | | | | | | |
Series A, 5.00%, 11/15/27 | | | 1,000 | | | | 1,185,860 | |
Series A, 5.00%, 11/15/30 | | | 2,935 | | | | 3,476,478 | |
Series A-1, 5.25%, 11/15/33 | | | 2,565 | | | | 3,084,874 | |
Series A-1, 5.25%, 11/15/34 | | | 2,840 | | | | 3,403,286 | |
Series C, 6.50%, 11/15/28 | | | 3,200 | | | | 3,866,496 | |
Series D, 5.25%, 11/15/41 | | | 3,450 | | | | 4,004,035 | |
Series E, 5.00%, 11/15/38 | | | 7,785 | | | | 9,084,784 | |
Series E, 5.00%, 11/15/43 | | | 4,000 | | | | 4,637,480 | |
Series H, 5.00%, 11/15/25 | | | 1,000 | | | | 1,215,330 | |
Series H, 5.00%, 11/15/31 | | | 1,690 | | | | 1,991,310 | |
Sub-Series B, 5.00%, 11/15/25 | | | 3,250 | | | | 3,991,227 | |
Metropolitan Transportation Authority, Refunding RB, Series D, 5.25%, 11/15/29 | | | 1,000 | | | | 1,176,510 | |
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated, 5.25%, 12/15/43 | | | 3,500 | | | | 4,118,905 | |
Niagara Falls Bridge Commission, RB, Series A (BAM), 4.00%, 10/01/44 | | | 1,560 | | | | 1,642,836 | |
Niagara Falls Bridge Commission, Refunding RB, Toll Bridge System, Series A (AGC), 4.00%, 10/01/19 | | | 1,900 | | | | 2,070,411 | |
Port Authority of New York & New Jersey, ARB: | | | | | | | | |
Consolidated, 163rd Series, 5.00%, 7/15/35 | | | 2,500 | | | | 2,912,625 | |
Consolidated, 169th Series, AMT, 5.00%, 10/15/41 | | | 1,000 | | | | 1,112,960 | |
Consolidated, 183rd Series, 4.00%, 6/15/44 | | | 5,000 | | | | 5,317,450 | |
JFK International Air Terminal LLC, Special Project, Series 6, AMT (NPFGC), 5.75%, 12/01/22 | | | 8,160 | | | | 8,208,144 | |
Port Authority of New York & New Jersey, Refunding ARB: | | | | | | | | |
178th Series, AMT, 5.00%, 12/01/33 | | | 1,140 | | | | 1,321,534 | |
179th Series, 5.00%, 12/01/38 | | | 1,390 | | | | 1,644,579 | |
Consolidated, 146th Series, AMT (AGM), 4.50%, 12/01/34 | | | 6,090 | | | | 6,248,523 | |
Consolidated, 147th Series, AMT, 4.75%, 4/15/37 | | | 2,250 | | | | 2,360,002 | |
Consolidated, 177th Series, AMT, 3.50%, 7/15/35 | | | 1,370 | | | | 1,361,657 | |
Consolidated, 177th Series, AMT, 4.00%, 1/15/43 | | | 1,975 | | | | 2,047,226 | |
Consolidated, 178th Series, AMT, 5.00%, 12/01/43 | | | 750 | | | | 855,638 | |
Port Authority of New York & New Jersey, Refunding RB, Series G (AGM), 5.75%, 12/01/25 | | | 3,500 | | | | 3,511,060 | |
State of New York Thruway Authority, Refunding RB: | | | | | | | | |
General, Series G (AGM), 4.75%, 7/01/29 (c) | | | 7,250 | | | | 7,388,257 | |
General, Series G (AGM), 4.75%, 7/01/30 (c) | | | 9,000 | | | | 9,171,630 | |
General, Series G (AGM), 5.00%, 7/01/32 (c) | | | 17,030 | | | | 17,372,473 | |
General, Series G (AGM), 5.00%, 1/01/37 | | | 6,500 | | | | 7,477,535 | |
General, Series I, 5.00%, 1/01/42 | | | 3,250 | | | | 3,690,310 | |
Series G (AGM), 5.00%, 7/01/30 (c) | | | 2,000 | | | | 2,040,220 | |
Series J, 5.00%, 1/01/41 | | | 2,275 | | | | 2,628,717 | |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 31 |
| | |
Schedule of Investments (continued) | | BlackRock MuniYield New York Quality Fund, Inc. (MYN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par
(000) | | | Value | |
New York (concluded) | | | | | | | | |
Transportation (concluded) | |
Triborough Bridge & Tunnel Authority, Refunding RB: | | | | | | | | |
CAB, General, Series B, 0.00%, 11/15/32 (b) | | $ | 9,000 | | | $ | 5,168,340 | |
General, Series A, 5.00%, 11/15/38 | | | 1,000 | | | | 1,167,480 | |
Series C, 5.00%, 11/15/38 | | | 2,000 | | | | 2,251,040 | |
Sub-Series A, 5.00%, 11/15/28 | | | 2,500 | | | | 2,980,300 | |
Sub-Series A, 5.00%, 11/15/29 | | | 875 | | | | 1,040,751 | |
| | | | | | | | |
| | | | | | | | 148,228,273 | |
Utilities — 10.1% | | | | | | | | |
City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Series B, 5.00%, 6/15/36 | | | 2,000 | | | | 2,121,260 | |
City of New York New York Municipal Water Finance Authority, Refunding RB: | | | | | | | | |
2nd General Resolution, Series BB, 5.00%, 6/15/31 | | | 1,000 | | | | 1,159,430 | |
2nd General Resolution, Series DD, 5.00%, 6/15/32 | | | 6,750 | | | | 7,538,805 | |
2nd General Resolution, Series FF, 5.00%, 6/15/32 | | | 1,500 | | | | 1,743,315 | |
2nd General Resolution, Series GG, 5.00%, 6/15/31 | | | 1,000 | | | | 1,142,650 | |
Series D (AGM), 5.00%, 6/15/32 | | | 9,000 | | | | 9,172,350 | |
Long Island Power Authority, RB, Series A (AGM), 5.00%, 5/01/36 | | | 3,775 | | | | 4,268,996 | |
Long Island Power Authority, Refunding RB: | | | | | | | | |
Electric Systems, Series A (AGC), 5.75%, 4/01/39 | | | 1,015 | | | | 1,186,251 | |
General, Series A (AGC), 6.00%, 5/01/33 | | | 1,500 | | | | 1,780,500 | |
General, Series B (AGM), 5.00%, 12/01/35 | | | 4,000 | | | | 4,217,840 | |
Series A, 5.00%, 9/01/34 | | | 1,000 | | | | 1,163,710 | |
Series A, 5.00%, 9/01/44 | | | 1,875 | | | | 2,153,344 | |
State of New York Environmental Facilities Corp., Refunding RB, Series B, Revolving Funds, New York City Municipal Water: | | | | | | | | |
2nd General Resolution, 5.00%, 6/15/36 | | | 2,100 | | | | 2,463,069 | |
5.00%, 6/15/33 | | | 1,040 | | | | 1,169,584 | |
State of New York Power Authority, Refunding RB, Series A, 5.00%, 11/15/38 | | | 4,920 | | | | 5,730,521 | |
Utility Debt Securitization Authority, Refunding RB, 5.00%, 12/15/41 | | | 9,960 | | | | 11,886,862 | |
| | | | | | | | |
| | | | | | | | 58,898,487 | |
| Total Municipal Bonds in New York | | | | | | | 708,251,975 | |
| | | | | | | | |
Guam — 0.3% | | | | | | | | |
Utilities — 0.3% | | | | | |
Guam Power Authority, RB, Series A (AGM), 5.00%, 10/01/37 | | | 1,380 | | | | 1,545,766 | |
| | | | | | | | |
Puerto Rico — 0.8% | | | | | | | | |
Housing — 0.8% | | | | | |
Puerto Rico Housing Finance Authority, Refunding RB, M/F Housing, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27 | | | 4,050 | | | | 4,318,596 | |
| | | | | | | | |
Virgin Islands – 1.6% | | | | | | | | |
State — 1.6% | | | | | |
Virgin Islands Public Finance Authority, Refunding RB, Series C: | | | | | | | | |
5.00%, 10/01/39 | | | 7,150 | | | | 7,998,133 | |
4.50%, 10/01/44 | | | 1,500 | | | | 1,554,705 | |
| Total Municipal Bonds in U.S. Virgin Islands | | | | 9,552,838 | |
| Total Municipal Bonds — 124.3% | | | | 723,669,175 | |
Municipal Bonds Transferred to
Tender Option Bond Trusts (d) | | Par
(000) | | | Value | |
New York — 31.6% | |
County/City/Special District/School District — 5.4% | | | | | |
City of New York New York, GO, Refunding, Series E, 5.00%, 8/01/27 | | $ | 1,064 | | | $ | 1,236,483 | |
City of New York New York, GO: | | | | | | | | |
Sub-Series C-3 (AGC), 5.75%, 8/15/28 (e) | | | 14,400 | | | | 16,972,560 | |
Sub-Series I-1, 5.00%, 3/01/36 | | | 3,500 | | | | 4,147,815 | |
City of New York New York Transitional Finance Authority, RB, Future Tax Secured, Sub-Series D-1, 5.00%, 11/01/38 | | | 4,125 | | | | 4,770,274 | |
New York Liberty Development Corp., Refunding RB, 7 World Trade Center Project, Class 1, 5.00%, 9/15/40 | | | 3,645 | | | | 4,251,783 | |
| | | | | | | | |
| | | | | | | | 31,378,915 | |
Education — 4.9% | | | | | | | | |
City of New York New York Trust for Cultural Resources, Refunding RB, Wildlife Conservation Society, Series A, 5.00%, 8/01/33 | | | 1,981 | | | | 2,346,852 | |
State of New York Dormitory Authority, New York University, Series A, LRB, State University Dormitory Facilities: | | | | | | | | |
5.25%, 7/01/29 | | | 6,000 | | | | 6,876,960 | |
5.00%, 7/01/35 | | | 5,198 | | | | 6,061,721 | |
State of New York Dormitory Authority, RB: | | | | | | | | |
5.00%, 7/01/38 | | | 6,498 | | | | 7,287,182 | |
(AMBAC), 5.00%, 7/01/37 | | | 5,707 | | | | 6,243,191 | |
| | | | | | | | |
| | | | | | | | 28,815,906 | |
State — 6.8% | | | | | | | | |
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (e) | | | 9,739 | | | | 11,450,510 | |
Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A, 5.00%, 10/15/31 | | | 7,995 | | | | 9,926,272 | |
State of New York Dormitory Authority, ERB, Series B, 5.75%, 3/15/36 | | | 7,850 | | | | 9,225,634 | |
State of New York Dormitory Authority, RB, Series C: | | | | | | | | |
General Purpose, 5.00%, 3/15/41 | | | 1,650 | | | | 1,909,958 | |
Mental Health Services Facilities, AMT (AGM), 5.40%, 2/15/33 | | | 6,297 | | | | 7,118,420 | |
| | | | | | | | |
| | | | | | | | 39,630,794 | |
Transportation — 9.1% | | | | | | | | |
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated, 5.25%, 12/15/43 | | | 18,000 | | | | 21,182,940 | |
Port Authority of New York & New Jersey, ARB, Consolidated, 169th Series, AMT: | | | | | | | | |
5.00%, 10/15/25 | | | 7,990 | | | | 9,263,926 | |
5.00%, 10/15/26 | | | 6,000 | | | | 6,902,820 | |
State of New York Thruway Authority, Refunding RB: | | | | | | | | |
General, Series H (AGM), 5.00%, 1/01/37 | | | 10,000 | | | | 11,032,200 | |
Transportation, Personal Income Tax, Series A, 5.00%, 3/15/31 | | | 3,940 | | | | 4,679,499 | |
| | | | | | | | |
| | | | | | | | 53,061,385 | |
Utilities — 5.4% | | | | | | | | |
City of New York New York Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40 | | | 4,094 | | | | 4,743,806 | |
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 | | | 9,900 | | | | 11,594,088 | |
Fiscal 2012, Series BB, 5.00%, 6/15/44 | | | 3,991 | | | | 4,598,756 | |
Series FF-2, 5.50%, 6/15/40 | | | 2,760 | | | | 3,235,335 | |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| 32 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
Schedule of Investments (continued) | | BlackRock MuniYield New York Quality Fund, Inc. (MYN) (Percentages shown are based on Net Assets) |
| | | | | | | | |
Municipal Bonds Transferred to
Tender Option Bond Trusts (d) | | Par
(000) | | | Value | |
New York (concluded) | |
Utilities (concluded) | |
Utility Debt Securitization Authority, Refunding RB, 5.00%, 12/15/41 | | $ | 5,998 | | | $ | 7,158,591 | |
| | | | | | | | |
| | | | | | | | 31,330,576 | |
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 31.6% | | | | 184,217,575 | |
Total Long-Term Investments (Cost — $827,206,889) — 155.9% | | | | 907,886,750 | |
Short-Term Securities | | Shares | | | Value | |
BIF New York Municipal Money
Fund, 0.00% (f)(g) | | | 8,344,352 | | | $ | 8,344,352 | |
Total Short-Term Securities (Cost — $8,344,352) — 1.4% | | | | 8,344,352 | |
| Total Investments (Cost — $835,551,241) — 157.3% | | | | 916,231,102 | |
| Other Assets Less Liabilities — 1.2% | | | | 6,910,647 | |
Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (16.0%) | | | | (93,130,811 | ) |
| VRDP Shares, at Liquidation Value — (42.5%) | | | | (247,700,000 | ) |
| | | | | | | | |
| Net Assets Applicable to Common Shares — 100.0% | | | $ | 582,310,938 | |
| | | | | | | | |
|
| Notes to Schedule of Investments |
| (a) | | Variable rate security. Rate shown is as of report date. |
| (c) | | U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (d) | | Represent bonds transferred to a TOB. In exchange for which the Fund received cash and residual interest certificates. These bonds serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
| (e) | | All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreement, which expire from February 15, 2017 to February 15, 2019, is $12,778,281. |
| (f) | | During the six months ended January 31, 2015, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the 1940 Act were as follows: |
| | | | | | | | | | | | | | | | |
| Affiliate | | Shares Held
at July 31,
2014 | | | Net
Activity | | | Shares Held
at January 31,
2015 | | | Income | |
BIF New York Municipal Money Fund | | | 5,691,487 | | | | 2,652,865 | | | | 8,344,352 | | | $ | 2 | |
| (g) | | Represents the current yield as of report date. |
| Ÿ | | As of January 31, 2015, financial futures contracts outstanding were as follows: |
| | | | | | | | | | | | | | | | |
| Contracts Short | | | Issue | | Exchange | | Expiration | | Notional
Value | | | Unrealized
Depreciation | |
| | (648 | ) | | 10-Year U.S. Treasury Note | | Chicago Board of Trade | | March 2015 | | $ | 84,807,000 | | | $ | (2,585,444 | ) |
| Ÿ | | 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. |
| Ÿ | | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. 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 categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows: |
| | Ÿ | | Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access |
| | Ÿ | | 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) |
| | Ÿ | | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 33 |
| | |
Schedule of Investments (concluded) | | BlackRock MuniYield New York Quality Fund, Inc. (MYN) |
As of January 31, 2015, 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 | | | — | | | $ | 907,886,750 | | | — | | $ | 907,886,750 | |
Short-Term Securities | | $ | 8,344,352 | | | | — | | | — | | | 8,344,352 | |
| | | | | | | | | | | | | | |
Total | | $ | 8,344,352 | | | $ | 907,886,750 | | | — | | $ | 916,231,102 | |
| | | | | | | | | | | | | | |
1 See above Schedule of Investments for values in each sector. | |
| | | Level 1 | | | Level 2 | | | Level 3 | | Total | |
| Derivative Financial Instruments2 | | | | | | | |
Liabilities: | | | | | | | | | | | | | | |
Interest rate contracts | | $ | (2,585,444 | ) | | | — | | | — | | $ | (2,585,444 | ) |
2 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 January 31, 2015, 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 | | $ | 880,000 | | | | — | | | — | | $ | 880,000 | |
Liabilities: | | | | | | | | | | | | | | |
TOB trust certificates | | | — | | | $ | (93,113,130 | ) | | — | | | (93,113,130 | ) |
VRDP Shares | | | — | | | | (247,700,000 | ) | | — | | | (247,700,000 | ) |
| | | | | | | | | | | | | | |
Total | | | $880,000 | | | $ | (340,813,130 | ) | | — | | $ | (339,933,130 | ) |
| | | | | | | | | | | | | | |
During the six months ended January 31, 2015, there were no transfers between levels.
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| 34 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
Schedule of Investments January 31, 2015 (Unaudited) | | BlackRock MuniYield Quality Fund III, Inc. (MYI) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par
(000) | | | Value | |
Alabama — 0.4% | |
City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 6/01/39 | | $ | 3,605 | | | $ | 4,240,345 | |
Alaska — 1.7% | |
Alaska Housing Finance Corp., RB, General Housing, Series B (NPFGC), 5.25%, 12/01/30 | | | 2,000 | | | | 2,034,900 | |
Alaska Industrial Development & Export Authority, RB, Providence Health Services, Series A, 5.50%, 10/01/41 | | | 2,690 | | | | 3,121,853 | |
Borough of Matanuska-Susitna Alaska, RB, Goose Creek Correctional Center (AGC), 6.00%, 9/01/28 | | | 10,150 | | | | 12,290,533 | |
| | | | | | | | |
| | | | | | | | 17,447,286 | |
Arizona — 0.4% | |
City of Phoenix & County of Maricopa Arizona IDA, Refunding RB, S/F, Series A-2, AMT (Fannie Mae), 5.80%, 7/01/40 | | | 200 | | | | 203,434 | |
State of Arizona, COP, Department of Administration, Series A (AGM), 5.00%, 10/01/27 | | | 3,075 | | | | 3,495,076 | |
| | | | | | | | |
| | | | | | | | 3,698,510 | |
Arkansas — 0.1% | |
Pulaski County Public Facilities Board, RB, 5.00%, 12/01/42 | | | 1,110 | | | | 1,284,525 | |
California — 15.4% | |
Alameda Corridor Transportation Authority, Refunding RB, CAB, Subordinate Lien, Series A (AMBAC), 5.40%, 10/01/24 | | | 10,000 | | | | 10,841,100 | |
California Health Facilities Financing Authority, RB: | | | | | | | | |
St. Joseph Health System, Series A, 5.75%, 7/01/39 | | | 1,550 | | | | 1,821,250 | |
Sutter Health, Series B, 5.88%, 8/15/31 | | | 3,200 | | | | 3,860,672 | |
California Health Facilities Financing Authority, Refunding RB, St. Joseph’s Health System, Series A, 5.00%, 7/01/37 | | | 2,965 | | | | 3,465,729 | |
California HFA, RB, S/F Housing, Home Mortgage, Series K, AMT, 5.50%, 2/01/42 | | | 795 | | | | 811,361 | |
California State University, RB, Systemwide, Series A, 5.50%, 11/01/39 | | | 1,525 | | | | 1,797,487 | |
California Statewide Communities Development Authority, RB: | | | | | | | | |
Kaiser Permanente, Series A, 5.00%, 4/01/42 | | | 4,030 | | | | 4,563,653 | |
St. Joseph Health System, Series E (AGM), 5.25%, 7/01/47 | | | 4,000 | | | | 4,399,000 | |
Chabot-Las Positas Community College District, GO, CAB, Series C (AMBAC) (a): | | | | | | | | |
0.00%, 8/01/34 | | | 5,725 | | | | 2,199,087 | |
0.00%, 8/01/36 | | | 7,790 | | | | 2,700,793 | |
City of Redding California, COP, Refunding, Series A (AGM), 5.00%, 6/01/30 | | | 1,900 | | | | 2,123,098 | |
City of San Jose California, Refunding ARB, AMT: | | | | | | | | |
Series A (AMBAC), 5.50%, 3/01/32 | | | 11,965 | | | | 12,980,469 | |
Series A-1, 5.75%, 3/01/34 | | | 2,300 | | | | 2,666,022 | |
Coast Community College District, GO, Election of 2002, Series C (AGM), 0.00%, 8/01/33 (a) | | | 8,100 | | | | 3,109,428 | |
County of Orange California Sanitation District, COP, Series B (AGM), 5.00%, 2/01/17 (b) | | | 10,780 | | | | 11,756,668 | |
County of Sacramento California, ARB, Senior Series A, 5.00%, 7/01/41 | | | 10,000 | | | | 11,139,300 | |
County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/36 | | | 1,830 | | | | 2,260,288 | |
Dublin Unified School District California, GO, CAB, Election of 2004, Series D, 0.00%, 8/01/34 (a) | | | 5,000 | | | | 1,706,050 | |
| Municipal Bonds | | Par
(000) | | | Value | |
California (concluded) | |
Grossmont Union High School District, GO, CAB, Election of 2004, 0.00%, 8/01/31 (a) | | $ | 5,110 | | | $ | 2,763,386 | |
Las Virgenes Unified School District, GO, Series A, 5.00%, 8/01/16 (b) | | | 10,000 | | | | 10,706,000 | |
Long Beach Unified School District, GO, Election of 2008, Series B, 0.00%, 8/01/34 (a) | | | 5,000 | | | | 2,381,250 | |
Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/17 (b) | | | 1,200 | | | | 1,333,020 | |
Mount San Antonio Community College District, GO, Refunding, CAB, Election of 2008, Series A, 0.00%, 8/01/43 (c) | | | 3,975 | | | | 2,865,657 | |
Norwalk-La Mirada Unified School District, GO, Refunding, CAB, Election of 2002, Series E (AGC), 0.00%, 8/01/38 (a) | | | 7,620 | | | | 2,942,387 | |
Oceanside Unified School District, GO, Series A (AGC), 5.25%, 8/01/33 | | | 2,500 | | | | 2,806,525 | |
Poway Unified School District, GO, Refunding, CAB, School Facilities Improvement, Election of 2008, Series B (a): | | | | | | | | |
0.00%, 8/01/35 | | | 7,820 | | | | 3,556,536 | |
0.00%, 8/01/36 | | | 10,000 | | | | 4,367,400 | |
Rio Hondo Community College District California, GO, CAB, Election of 2004, Series C (a): | | | | | | | | |
0.00%, 8/01/37 | | | 8,000 | | | | 3,420,560 | |
0.00%, 8/01/38 | | | 12,940 | | | | 5,316,399 | |
San Bernardino Community College District, GO, Election of 2002, Series C (AGM), 5.00%, 8/01/31 | | | 2,165 | | | | 2,307,500 | |
San Diego California Unified School District, GO, CAB, Election of 2008, Series G (a): | | | | | | | | |
0.00%, 7/01/34 | | | 1,860 | | | | 789,682 | |
0.00%, 7/01/35 | | | 1,970 | | | | 790,462 | |
0.00%, 7/01/36 | | | 2,960 | | | | 1,110,740 | |
0.00%, 7/01/37 | | | 1,975 | | | | 698,241 | |
San Diego California Unified School District, GO, Refunding, CAB, Election of 2008, Series R-1, 0.00%, 7/01/31 (a) | | | 3,485 | | | | 1,961,916 | |
San Marcos Unified School District, GO, Election of 2010, Series A: | | | | | | | | |
5.00%, 8/01/34 | | | 1,800 | | | | 2,117,538 | |
5.00%, 8/01/38 | | | 1,600 | | | | 1,861,088 | |
State of California, GO, Refunding, Various Purpose: | | | | | | | | |
5.00%, 9/01/41 | | | 2,700 | | | | 3,096,900 | |
5.00%, 10/01/41 | | | 2,555 | | | | 2,934,903 | |
State of California, GO: | | | | | | | | |
Series 2007-2 (NPFGC), 5.50%, 4/01/30 | | | 10 | | | | 10,043 | |
Various Purpose, 5.00%, 4/01/42 | | | 2,000 | | | | 2,306,400 | |
Various Purposes, 5.50%, 3/01/40 | | | 1,020 | | | | 1,193,420 | |
State of California Public Works Board, LRB: | | | | | | | | |
Various Capital Projects, Series I, 5.00%, 11/01/38 | | | 5,040 | | | | 5,886,720 | |
Various Judicial Council Projects, Series A, 5.00%, 3/01/38 | | | 1,940 | | | | 2,243,843 | |
Walnut Valley Unified School District, GO, CAB, Election of 2007, Series B, 0.00%, 8/01/36 (a) | | | 6,545 | | | | 2,823,055 | |
West Valley-Mission Community College District, GO, Refunding, Election of 2004, Series A (AGM), 5.00%, 8/01/30 | | | 3,600 | | | | 3,842,568 | |
| | | | | | | | |
| | | | | | | | 162,635,594 | |
Colorado — 1.1% | |
Regional Transportation District, COP, Series A, 5.00%, 6/01/39 | | | 9,870 | | | | 11,386,822 | |
Florida — 11.8% | |
City of Lakeland Florida, RB, Regional Health, 5.00%, 11/15/40 (d) | | | 4,535 | | | | 5,208,130 | |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 35 |
| | |
Schedule of Investments (continued) | | BlackRock MuniYield Quality Fund III, Inc. (MYI) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par
(000) | | | Value | |
Florida (concluded) | |
County of Broward Florida School Board, COP, Series A (AGM), 5.25%, 7/01/33 | | $ | 13,100 | | | $ | 14,650,123 | |
County of Broward Florida Water & Sewer Utility, Refunding RB, Series A, 5.25%, 10/01/34 | | | 2,250 | | | | 2,549,880 | |
County of Collier Florida School Board, COP, (AGM), 5.00%, 2/15/16 (b) | | | 5,000 | | | | 5,248,700 | |
County of Highlands Florida Health Facilities Authority, RB, Adventist Health System/Sunbelt, Series B, 6.00%, 11/15/37 | | | 1,750 | | | | 2,084,390 | |
County of Lee Florida, Refunding ARB, Series A, AMT: | | | | | | | | |
5.63%, 10/01/26 | | | 2,600 | | | | 3,104,790 | |
5.38%, 10/01/32 | | | 3,440 | | | | 3,894,665 | |
County of Miami-Dade Florida, GO, Building Better Communities Program: | | | | | | | | |
Series B, 6.38%, 7/01/28 | | | 6,000 | | | | 7,029,480 | |
Series B-1, 5.75%, 7/01/33 | | | 3,700 | | | | 4,249,598 | |
County of Miami-Dade Florida, RB: | | | | | | | | |
Seaport Department, Series B, AMT, 6.00%, 10/01/30 | | | 1,820 | | | | 2,270,232 | |
Seaport, Series A, 6.00%, 10/01/38 | | | 5,695 | | | | 7,069,090 | |
Seaport, Series B, AMT, 6.25%, 10/01/38 | | | 1,165 | | | | 1,462,215 | |
Seaport, Series B, AMT, 6.00%, 10/01/42 | | | 1,865 | | | | 2,279,664 | |
Transit System Sales Surtax (AGM), 5.00%, 7/01/35 | | | 2,800 | | | | 3,112,088 | |
County of Miami-Dade Florida, Refunding RB, Water & Sewer System, Series C (BHAC), 6.00%, 10/01/23 | | | 20,095 | | | | 23,530,039 | |
County of Miami-Dade Florida Aviation, Refunding ARB, AMT: | | | | | | | | |
5.00%, 10/01/34 | | | 530 | | | | 613,554 | |
Miami International Airport, Series A (AGM), 5.50%, 10/01/41 | | | 19,020 | | | | 21,585,608 | |
County of Miami-Dade Florida Aviation Revenue, Refunding RB, AMT, 5.00%, 10/01/31 | | | 4,000 | | | | 4,681,640 | |
County of Palm Beach Florida Solid Waste Authority, Refunding RB, 5.00%, 10/01/31 | | | 3,100 | | | | 3,674,678 | |
County of Sarasota Florida Public Hospital District, RB, Sarasota Memorial Hospital Project, Series A, 5.63%, 7/01/39 | | | 5,135 | | | | 5,804,655 | |
| | | | | | | | |
| | | | | | | | 124,103,219 | |
Georgia — 1.1% | |
County of Burke Georgia Development Authority, Refunding RB, Oglethorpe Power-Vogtle Project, Series C, 5.70%, 1/01/43 | | | 6,450 | | | | 7,100,999 | |
County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54 | | | 1,405 | | | | 1,680,633 | |
Private Colleges & Universities Authority, RB, Savannah College of Art & Design: | | | | | | | | |
5.00%, 4/01/31 | | | 540 | | | | 617,614 | |
5.00%, 4/01/33 | | | 395 | | | | 449,079 | |
5.00%, 4/01/44 | | | 1,775 | | | | 2,001,508 | |
| | | | | | | | |
| | | | | | | | 11,849,833 | |
Hawaii — 0.4% | |
State of Hawaii Department of Transportation, COP, AMT: | | | | | | | | |
5.00%, 8/01/27 | | | 2,000 | | | | 2,341,340 | |
5.00%, 8/01/28 | | | 1,775 | | | | 2,062,089 | |
| | | | | | | | |
| | | | | | | | 4,403,429 | |
Illinois — 21.3% | |
City of Chicago Illinois, GARB, 3rd Lien O’Hare International Airport: | | | | | | | | |
Series A, 5.75%, 1/01/39 | | | 9,000 | | | | 10,648,890 | |
Series B-2, AMT (NPFGC), 5.25%, 1/01/27 | | | 8,530 | | | | 8,561,049 | |
| Municipal Bonds | | Par
(000) | | | Value | |
Illinois (continued) | |
City of Chicago Illinois, GARB, 3rd Lien (concluded): | | | | | | | | |
Series B-2, AMT (NPFGC), 6.00%, 1/01/27 | | $ | 1,695 | | | $ | 1,703,034 | |
City of Chicago Illinois, GO, Refunding, Series A: | | | | | | | | |
Project, 5.25%, 1/01/33 | | | 11,065 | | | | 12,033,077 | |
5.00%, 1/01/34 | | | 2,000 | | | | 2,134,820 | |
5.00%, 1/01/35 | | | 9,280 | | | | 9,891,274 | |
5.00%, 1/01/36 | | | 4,245 | | | | 4,518,081 | |
City of Chicago Illinois, Refunding GARB, O’Hare International Airport, AMT: | | | | | | | | |
3rd Lien, Series C-2 (AGM), 5.25%, 1/01/30 | | | 13,240 | | | | 13,264,891 | |
Series B, 5.00%, 1/01/31 | | | 2,425 | | | | 2,714,715 | |
City of Chicago Illinois, Refunding RB, Series A: | | | | | | | | |
Sales Tax Receipts, 5.00%, 1/01/41 | | | 4,190 | | | | 4,613,735 | |
Waterworks, 2nd Lien (AMBAC), 5.00%, 11/01/36 | | | 3,500 | | | | 3,700,970 | |
City of Chicago Illinois Midway International Airport, Refunding RB, 2nd Lien, Series A, AMT, 5.00%, 1/01/34 | | | 3,035 | | | | 3,438,291 | |
City of Chicago Illinois Park District, GO, Series C: | | | | | | | | |
Harbor Facilities Revenue, 5.25%, 1/01/40 | | | 1,505 | | | | 1,669,286 | |
Harbor Facilities Revenues, 5.25%, 1/01/37 | | | 4,000 | | | | 4,477,800 | |
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/36 | | | 1,620 | | | | 1,879,524 | |
County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.13%, 12/01/38 | | | 3,250 | | | | 3,755,147 | |
County of Cook Illinois Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/37 | | | 775 | | | | 883,996 | |
Illinois Finance Authority, RB, Carle Foundation, Series A, 5.75%, 8/15/34 | | | 8,700 | | | | 10,105,746 | |
Illinois Finance Authority, Refunding RB, Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39 | | | 5,250 | | | | 6,222,510 | |
Illinois Municipal Electric Agency, RB, Series A (NPFGC): | | | | | | | | |
5.00%, 2/01/35 | | | 17,935 | | | | 19,117,454 | |
5.25%, 2/01/35 | | | 15,000 | | | | 16,127,250 | |
Illinois State Toll Highway Authority, RB, Series B: | | | | | | | | |
5.50%, 1/01/33 | | | 4,000 | | | | 4,449,240 | |
(BHAC), 5.50%, 1/01/33 | | | 2,000 | | | | 2,231,920 | |
Metropolitan Pier & Exposition Authority, RB, CAB, Series A (NPFGC) (a): | | | | | | | | |
McCormick Place Explosion Project, 0.00%, 12/15/26 | | | 8,500 | | | | 5,637,880 | |
Mccormick Place Explosion Project, 0.00%, 6/15/32 | | | 14,000 | | | | 6,951,700 | |
McCormick Place Explosion Project, 0.00%, 12/15/33 | | | 20,000 | | | | 9,194,400 | |
Mccormick Place Explosion Project, 0.00%, 12/15/34 | | | 41,880 | | | | 18,261,774 | |
Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick Place Expansion Project, Series B (AGM), 0.00%, 6/15/44 (a) | | | 9,430 | | | | 2,573,541 | |
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28 | | | 1,700 | | | | 2,035,937 | |
Regional Transportation Authority, RB, Series C (NPFGC), 7.75%, 6/01/20 | | | 1,000 | | | | 1,184,020 | |
State of Illinois, GO: | | | | | | | | |
5.25%, 7/01/29 | | | 3,160 | | | | 3,547,922 | |
5.25%, 2/01/33 | | | 5,860 | | | | 6,531,087 | |
5.50%, 7/01/33 | | | 2,235 | | | | 2,558,472 | |
5.25%, 2/01/34 | | | 5,360 | | | | 5,960,856 | |
5.50%, 7/01/38 | | | 1,200 | | | | 1,365,228 | |
5.00%, 2/01/39 | | | 7,500 | | | | 8,121,300 | |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| 36 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
Schedule of Investments (continued) | | BlackRock MuniYield Quality Fund III, Inc. (MYI) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par
(000) | | | Value | |
Illinois (concluded) | |
University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 4/01/39 | | $ | 2,580 | | | $ | 2,977,449 | |
| | | | | | | | |
| | | | | | | | 225,044,266 | |
Indiana — 3.1% | |
City of Indianapolis Indiana, Refunding RB, Series B (AGC), 5.25%, 8/15/27 | | | 5,000 | | | | 5,552,500 | |
Indiana Finance Authority, RB, Series A: | | | | | | | | |
CWA Authority Project, 1st Lien, 5.25%, 10/01/38 | | | 2,900 | | | | 3,416,635 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44 | | | 1,400 | | | | 1,532,720 | |
Private Activity Bond, Ohio River Bridges, AMT, 5.00%, 7/01/40 | | | 2,425 | | | | 2,664,081 | |
Indiana Municipal Power Agency, RB: | | | | | | | | |
Series A (NPFGC), 5.00%, 1/01/37 | | | 3,850 | | | | 4,099,441 | |
Series B, 6.00%, 1/01/39 | | | 5,000 | | | | 5,780,950 | |
Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A: | | | | | | | | |
5.75%, 1/01/38 | | | 2,900 | | | | 3,337,523 | |
(AGC), 5.25%, 1/01/29 | | | 1,350 | | | | 1,521,113 | |
(AGC), 5.50%, 1/01/38 | | | 4,250 | | | | 4,839,007 | |
| | | | | | | | |
| | | | | | | | 32,743,970 | |
Iowa — 2.7% | |
Iowa Finance Authority, RB, Iowa Health Care Facilities, Series A (AGC), 5.63%, 8/15/37 | | | 12,650 | | | | 14,663,753 | |
Iowa Student Loan Liquidity Corp., RB, Senior Series A-2, AMT: | | | | | | | | |
5.60%, 12/01/26 | | | 3,365 | | | | 3,626,528 | |
5.70%, 12/01/27 | | | 3,360 | | | | 3,602,794 | |
5.75%, 12/01/28 | | | 1,775 | | | | 1,904,735 | |
5.80%, 12/01/29 | | | 2,270 | | | | 2,437,798 | |
5.85%, 12/01/30 | | | 2,355 | | | | 2,531,036 | |
| | | | | | | | |
| | | | | | | | 28,766,644 | |
Kentucky — 1.1% | |
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.38%, 1/01/40 | | | 1,000 | | | | 1,168,590 | |
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 7/01/39 (c) | | | 8,225 | | | | 6,143,417 | |
Kentucky State Property & Buildings Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/28 | | | 4,000 | | | | 4,577,400 | |
| | | | | | | | |
| | | | | | | | 11,889,407 | |
Louisiana — 1.1% | |
City of New Orleans Louisiana Aviation Board, RB, New Orleans Aviation, Series A, AMT (AGM), 5.25%, 1/01/32 | | | 6,405 | | | | 6,960,057 | |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB: | | | | | | | | |
East Baton Rouge Sewerage Commission Projects, Sub-Lien, Series A, 5.00%, 2/01/43 | | | 1,905 | | | | 2,180,120 | |
Lctcs Act 360 Project , 5.00%, 10/01/39 | | | 2,245 | | | | 2,652,423 | |
| | | | | | | | |
| | | | | | | | 11,792,600 | |
Massachusetts — 1.0% | |
Massachusetts HFA, RB, M/F Housing, Series B, 7.00%, 12/01/38 | | | 3,150 | | | | 3,514,801 | |
Massachusetts HFA, Refunding RB, Series C, AMT, 5.35%, 12/01/42 | | | 3,100 | | | | 3,287,922 | |
| Municipal Bonds | | Par
(000) | | | Value | |
Massachusetts (concluded) | |
Massachusetts School Building Authority, RB, Dedicated Sales Tax, Senior, Series A, 5.00%, 5/15/43 | | $ | 3,495 | | | $ | 4,088,486 | |
| | | | | | | | |
| | | | | | | | 10,891,209 | |
Michigan — 7.5% | |
City of Detroit Michigan Water Supply System, RB, 2nd Lien, Series B (AGM), 6.25%, 7/01/36 | | | 1,075 | | | | 1,204,849 | |
City of Detroit Michigan Water Supply System, Refunding RB, 2nd Lien, Series D (NPFGC), 5.00%, 7/01/33 | | | 5,000 | | | | 5,144,150 | |
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41 | | | 3,185 | | | | 3,826,841 | |
Michigan Finance Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/39 | | | 16,100 | | | | 18,097,366 | |
State of Michigan, RB, GAB (AGM): | | | | | | | | |
5.25%, 9/15/22 | | | 10,000 | | | | 11,147,200 | |
5.25%, 9/15/26 | | | 6,650 | | | | 7,390,810 | |
State of Michigan Building Authority, Refunding RB, Facilities Program: | | | | | | | | |
Series I, 6.25%, 10/15/38 | | | 3,125 | | | | 3,672,406 | |
Series I (AGC), 5.25%, 10/15/24 | | | 1,750 | | | | 2,053,153 | |
Series I (AGC), 5.25%, 10/15/25 | | | 3,250 | | | | 3,800,063 | |
Series I-A, 5.38%, 10/15/36 | | | 2,075 | | | | 2,397,559 | |
Series I-A, 5.38%, 10/15/41 | | | 1,900 | | | | 2,204,171 | |
Series II-A (AGM), 5.25%, 10/15/36 | | | 8,040 | | | | 9,273,979 | |
State of Michigan HDA, RB, S/F Housing, Series C, AMT, 5.50%, 12/01/28 | | | 2,065 | | | | 2,234,371 | |
Wayne County Airport Authority, Refunding RB, AMT (AGC), 5.38%, 12/01/32 | | | 5,000 | | | | 5,655,400 | |
Western Michigan University, Refunding RB, General, 5.00%, 11/15/39 | | | 1,080 | | | | 1,241,287 | |
| | | | | | | | |
| | | | | | | | 79,343,605 | |
Minnesota — 0.6% | |
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38 | | | 5,500 | | | | 6,512,880 | |
Nebraska — 0.7% | |
Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.25%, 9/01/37 | | | 6,825 | | | | 7,736,001 | |
Nevada — 1.0% | |
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34 | | | 2,250 | | | | 2,649,262 | |
County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A: | | | | | | | | |
5.25%, 7/01/42 | | | 2,000 | | | | 2,288,940 | |
(AGM), 5.25%, 7/01/39 | | | 5,170 | | | | 5,919,495 | |
| | | | | | | | |
| | | | | | | | 10,857,697 | |
New Jersey — 8.7% | | | | | | | | |
New Jersey EDA, RB: | | | | | | | | |
Private Activity Bond, The Goethals Bridge Replacement Project, AMT, 5.13%, 1/01/34 | | | 1,930 | | | | 2,163,742 | |
School Facilities Construction, Series UU, 5.00%, 6/15/34 | | | 1,620 | | | | 1,812,731 | |
School Facilities Construction, Series UU, 5.00%, 6/15/40 | | | 4,015 | | | | 4,475,641 | |
The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43 | | | 4,920 | | | | 5,529,145 | |
New Jersey EDA, Refunding RB, School Facilities Construction: | | | | | | | | |
Series N-1 (AMBAC), 5.50%, 9/01/24 | | | 6,325 | | | | 7,688,480 | |
Series N-1 (NPFGC), 5.50%, 9/01/28 | | | 1,685 | | | | 2,102,880 | |
New Jersey Educational Facilities Authority, RB, Higher Educational Capital Improvement Fund, Series A, 5.00%, 9/01/26 | | | 2,245 | | | | 2,599,014 | |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 37 |
| | |
Schedule of Investments (continued) | | BlackRock MuniYield Quality Fund III, Inc. (MYI) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par
(000) | | | Value | |
New Jersey (concluded) | |
New Jersey Higher Education Student Assistance Authority, Refunding RB, Series 1, AMT: | | | | | | | | |
5.50%, 12/01/25 | | $ | 1,250 | | | $ | 1,429,063 | |
5.50%, 12/01/26 | | | 1,800 | | | | 2,051,316 | |
5.75%, 12/01/28 | | | 200 | | | | 227,986 | |
5.88%, 12/01/33 | | | 6,895 | | | | 7,873,607 | |
New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 2, AMT, 4.35%, 11/01/33 | | | 3,360 | | | | 3,545,304 | |
New Jersey Transportation Trust Fund Authority, RB: | | | | | | | | |
CAB, Transportation System, Series A, 0.00%, 12/15/35 (a) | | | 18,525 | | | | 7,212,894 | |
CAB, Transportation System, Series C (AGC) (AMBAC), 0.00%, 12/15/25 (a) | | | 10,000 | | | | 7,096,300 | |
Transportation Program, Series AA, 5.25%, 6/15/33 | | | 4,150 | | | | 4,777,107 | |
Transportation Program, Series AA, 5.00%, 6/15/38 | | | 4,990 | | | | 5,541,495 | |
Transportation System, Series A (NPFGC), 5.75%, 6/15/25 | | | 4,000 | | | | 5,094,760 | |
Transportation System, Series AA, 5.50%, 6/15/39 | | | 5,725 | | | | 6,676,323 | |
Transportation System, Series B, 5.00%, 6/15/42 | | | 12,550 | | | | 13,639,215 | |
| | | | | | | | |
| | | | | | | | 91,537,003 | |
New York — 2.0% | | | | | | | | |
City of New York New York Transitional Finance Authority, RB: | | | | | | | | |
Fiscal 2009, Series S-4, 5.50%, 1/15/34 | | | 7,250 | | | | 8,446,395 | |
Future Tax Secured, Series C, 5.50%, 11/01/35 | | | 1,820 | | | | 2,205,749 | |
City of New York New York Transitional Finance Authority, Refunding RB, Future Tax Secured, Series B, 5.00%, 11/01/32 | | | 4,150 | | | | 4,934,848 | |
Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012, Series A, 5.75%, 2/15/47 | | | 1,920 | | | | 2,257,363 | |
State of New York Dormitory Authority, ERB, Series B, 5.25%, 3/15/38 | | | 3,250 | | | | 3,736,233 | |
| | | | | | | | |
| | | | | | | | 21,580,588 | |
Ohio — 2.3% | | | | | | | | |
American Municipal Power Inc, Refunding RB, Series A, 5.00%, 2/15/42 | | | 985 | | | | 1,135,764 | |
County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A, 6.50%, 11/15/37 | | | 3,000 | | | | 3,805,230 | |
County of Montgomery Ohio, RB, Catholic Health Initiatives, Series D-2, 5.45%, 10/01/38 | | | 11,135 | | | | 13,352,869 | |
State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1: | | | | | | | | |
5.25%, 2/15/32 | | | 1,950 | | | | 2,325,902 | |
5.25%, 2/15/33 | | | 2,730 | | | | 3,247,553 | |
| | | | | | | | |
| | | | | | | | 23,867,318 | |
Pennsylvania — 1.7% | | | | | | | | |
Commonwealth Financing Authority, RB, Series B, 5.00%, 6/01/42 | | | 3,305 | | | | 3,765,254 | |
Pennsylvania Turnpike Commission, RB: | | | | | | | | |
Series A, 5.00%, 12/01/38 | | | 1,775 | | | | 2,081,986 | |
Series C, 5.50%, 12/01/33 | | | 1,565 | | | | 1,919,786 | |
Sub-Series C (AGC), 6.25%, 6/01/38 | | | 5,695 | | | | 6,564,740 | |
Subordinate, Special Motor License Fund, 6.00%, 12/01/36 | | | 2,575 | | | | 3,102,180 | |
| | | | | | | | |
| | | | | | | | 17,433,946 | |
South Carolina — 2.6% | | | | | | | | |
South Carolina Jobs EDA, Refunding RB, Palmetto Health, Series A (AGM), 6.50%, 8/01/39 | | | 3,600 | | | | 4,360,680 | |
| Municipal Bonds | | Par
(000) | | | Value | |
South Carolina (concluded) | |
State of South Carolina Public Service Authority, RB, Santee Cooper: | | | | | | | | |
Series A, 5.50%, 12/01/54 | | $ | 11,450 | | | $ | 13,662,369 | |
Series E, 5.50%, 12/01/53 | | | 2,025 | | | | 2,398,147 | |
State of South Carolina Public Service Authority, Refunding RB, Santee Cooper, Series B, 5.00%, 12/01/38 | | | 5,870 | | | | 6,809,259 | |
| | | | | | | | |
| | | | | | | | 27,230,455 | |
Texas — 15.6% | | | | | | | | |
Central Texas Turnpike System, Refunding RB, Second Tier, Series C, 5.00%, 8/15/34 (d) | | | 1,780 | | | | 2,035,341 | |
City of Houston Texas Utility System, Refunding RB: | | | | | | | | |
Combined 1st Lien, Series A (AGC), 6.00%, 11/15/35 | | | 5,700 | | | | 6,855,276 | |
Combined 1st Lien, Series A (AGC), 5.38%, 11/15/38 | | | 3,650 | | | | 4,208,340 | |
Series A (AGM), 5.00%, 11/15/36 | | | 10,000 | | | | 10,992,200 | |
City of San Antonio Texas Public Service Board, RB, Junior Lien, 5.00%, 2/01/38 | | | 1,450 | | | | 1,679,550 | |
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 9/15/36 (a) | | | 5,810 | | | | 2,351,481 | |
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Cook Children’s Medical Center, 5.25%, 12/01/39 | | | 2,095 | | | | 2,497,868 | |
Dallas ISD, GO, School Building (PSF-GTD), 6.38%, 2/15/18 (b) | | | 10,000 | | | | 11,710,700 | |
Dallas-Fort Worth International Airport, ARB: | | | | | | | | |
Joint Improvement, Series D, AMT, 5.00%, 11/01/38 | | | 13,080 | | | | 14,574,652 | |
Series F, 5.00%, 11/01/35 | | | 5,000 | | | | 5,654,600 | |
Dallas-Fort Worth International Airport, Refunding ARB, Series F, 5.25%, 11/01/33 | | | 2,745 | | | | 3,306,298 | |
Grand Prairie ISD, GO, Refunding,
0.00%, 8/15/28 (a) | | | 10,000 | | | | 4,906,400 | |
Judson ISD Texas, GO, School Building (AGC), 5.00%, 2/01/37 | | | 10,000 | | | | 10,727,000 | |
Leander Independent School District, GO, CAB, Refunding, Series D, 0.00%, 8/15/38 (a) | | | 9,685 | | | | 3,606,888 | |
North Texas Tollway Authority, RB, Series B, 0.00%, 9/01/43 (a) | | | 36,000 | | | | 8,035,920 | |
North Texas Tollway Authority, Refunding RB, System: | | | | | | | | |
1st Tier Series A, 6.00%, 1/01/28 | | | 6,275 | | | | 7,406,257 | |
1st Tier Series B (NPFGC), 5.75%, 1/01/40 | | | 10,000 | | | | 11,240,000 | |
Series A (NPFGC), 5.13%, 1/01/28 | | | 20,000 | | | | 21,942,600 | |
San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing and Expansion Project, CAB (a): | | | | | | | | |
0.00%, 9/15/35 | | | 680 | | | | 273,170 | |
0.00%, 9/15/36 | | | 12,195 | | | | 4,616,905 | |
0.00%, 9/15/37 | | | 8,730 | | | | 3,108,142 | |
State of Texas Turnpike Authority, RB, CAB (AMBAC), 0.00%, 8/15/31 (a) | | | — | | | | — | |
Texas Municipal Gas Acquisition & Supply Corp. III, RB: | | | | | | | | |
5.00%, 12/15/31 | | | 1,665 | | | | 1,869,645 | |
5.00%, 12/15/32 | | | 5,565 | | | | 6,207,980 | |
Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, 1st Tier, Series A, 5.00%, 8/15/41 | | | 13,435 | | | | 15,149,440 | |
| | | | | | | | |
| | | | | | | | 164,956,653 | |
Utah — 1.7% | | | | | | | | |
Utah Transit Authority, Refunding RB, CAB (a): | | | | | | | | |
Sub-Series A (AGC), 0.00%, 6/15/20 | | | 10,000 | | | | 8,510,600 | |
Sub-Series A (NPFGC), 0.00%, 6/15/24 | | | 13,930 | | | | 9,693,887 | |
| | | | | | | | |
| | | | | | | | 18,204,487 | |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| 38 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
Schedule of Investments (continued) | | BlackRock MuniYield Quality Fund III, Inc. (MYI) (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Municipal Bonds | | Par
(000) | | | Value | |
Vermont — 0.1% | |
Vermont HFA, Refunding RB, Multiple Purpose, S/F Housing, Series C, AMT (AGM), 5.50%, 11/01/38 | | $ | 715 | | | $ | 727,334 | |
Washington — 1.0% | |
Washington Health Care Facilities Authority, RB: | | | | | | | | |
MultiCare Health System, Remarketing, Series B, 5.00%, 8/15/44 | | | 1,000 | | | | 1,109,850 | |
Providence Health & Services, Series A, 5.25%, 10/01/39 | | | 2,725 | | | | 3,120,316 | |
Washington Health Care Facilities Authority, Refunding RB, Catholic Health Initiatives, Series D, 6.38%, 10/01/36 | | | 5,400 | | | | 6,376,644 | |
| | | | | | | | |
| | | | | | | | 10,606,810 | |
Wisconsin — 0.4% | |
State of Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group, Series E, 5.00%, 11/15/33 | | | 3,745 | | | | 4,281,584 | |
| Total Municipal Bonds — 108.6% | | | | | | | 1,147,054,020 | |
| | | | | | | | |
| | | | | | | | | |
|
Municipal Bonds Transferred to
Tender Option Bond Trusts (e) | |
Arizona — 1.4% | | | | | | | | |
Arizona School Facilities Board, COP, (AGC), 5.13%, 9/01/21 (f) | | | 10,000 | | | | 11,289,800 | |
Salt River Project Agricultural Improvement & Power District, RB, Electric System, Series A, 5.00%, 1/01/38 | | | 3,500 | | | | 3,857,035 | |
| | | | | | | | |
| | | | | | | | 15,146,835 | |
California — 8.7% | |
California State University, RB, Systemwide, Series A (AGM), 5.00%, 11/01/33 (f) | | | 7,996 | | | | 8,947,564 | |
California State University, Refunding RB, Systemwide, Series A (AGM), 5.00%, 11/01/37 | | | 21,981 | | | | 23,930,024 | |
City of Riverside California, RB, Issue D (AGM), 5.00%, 10/01/38 | | | 20,000 | | | | 22,404,000 | |
County of Alameda California Joint Powers Authority, Refunding LRB, (AGM), 5.00%, 12/01/34 | | | 6,990 | | | | 7,724,230 | |
County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/33 | | | 9,370 | | | | 10,455,795 | |
Foothill-De Anza Community College District, GO, Election of 1999, Series C (NPFGC), 5.00%, 8/01/36 | | | 7,500 | | | | 7,683,675 | |
Los Angeles Community College District California, GO, Refunding, Election of 2008, Series C, 6.00%, 8/01/33 (b) | | | 5,248 | | | | 6,466,089 | |
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33 | | | 1,047 | | | | 1,223,510 | |
University of California, RB, Series O, 5.75%, 5/15/34 | | | 2,205 | | | | 2,614,711 | |
| | | | | | | | |
| | | | | | | | 91,449,598 | |
Colorado — 0.3% | |
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 7/01/34 (f) | | | 2,469 | | | | 2,862,582 | |
Connecticut — 0.5% | |
Connecticut State Health & Educational Facility Authority, RB, Yale University, Series T-1, 4.70%, 7/01/29 | | | 5,019 | | | | 5,449,037 | |
District of Columbia — 2.5% | |
District of Columbia, RB, Series A, 5.50%, 12/01/30 (f) | | | 2,595 | | | | 3,090,429 | |
Municipal Bonds Transferred to
Tender Option Bond Trusts (e) | | Par
(000) | | | Value | |
District of Columbia (concluded) | |
District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 10/01/35 (b)(f) | | $ | 4,279 | | | $ | 5,088,873 | |
Metropolitan Washington Airports Authority, RB, Series B, AMT, 5.00%, 10/01/32 | | | 10,000 | | | | 10,762,200 | |
Metropolitan Washington Airports Authority, Refunding ARB, Series A, AMT, 5.00%, 10/01/30 | | | 6,880 | | | | 7,979,699 | |
| | | | | | | | |
| | | | | | | | 26,921,201 | |
Florida — 6.3% | |
City of Tallahassee Florida, RB, Energy System (NPFGC), 5.00%, 10/01/32 (f) | | | 3,300 | | | | 3,604,689 | |
County of Highlands Florida Health Facilities Authority, RB, Adventist, Series C, 5.25%, 11/15/16 | | | 5,400 | | | | 5,808,456 | |
County of Miami-Dade Florida, Refunding RB, Transit System Sales Surtax, 5.00%, 7/01/42 | | | 4,840 | | | | 5,555,788 | |
County of Miami-Dade Florida Transit System, RB, (Syncora), 5.00%, 7/01/31 | | | 19,800 | | | | 20,893,158 | |
County of Miami-Dade Florida Water & Sewer System, (AGM), 5.00%, 10/01/39 | | | 11,702 | | | | 13,531,416 | |
County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 8/01/34 | | | 12,013 | | | | 13,690,244 | |
State of Florida Board of Education, GO, Series D, 5.00%, 6/01/37 (f) | | | 3,299 | | | | 3,625,066 | |
| | | | | | | | |
| | | | | | | | 66,708,817 | |
Georgia — 1.0% | |
Metropolitan Atlanta Rapid Transit Authority, Refunding RB, 3rd Indenture, Series B (AGM), 5.00%, 7/01/37 | | | 10,000 | | | | 10,868,832 | |
Illinois — 2.6% | |
City of Chicago Illinois, RB, Motor Fuel Tax Project, Series A (AGC), 5.00%, 1/01/38 | | | 4,000 | | | | 4,343,360 | |
Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A, 5.00%, 6/15/42 | | | 719 | | | | 800,695 | |
State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34 (f) | | | 3,499 | | | | 3,980,564 | |
State of Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38 (b) | | | 10,000 | | | | 11,860,700 | |
State of Illinois Toll Highway Authority, RB, Series A, 5.00%, 1/01/38 | | | 5,836 | | | | 6,632,937 | |
| | | | | | | | |
| | | | | | | | 27,618,256 | |
Kentucky — 0.7% | |
Kentucky State Property & Building Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27 | | | 5,985 | | | | 6,921,216 | |
Louisiana — 1.0% | |
State of Louisiana Gas & Fuels, RB, Series A (AGM), 5.00%, 5/01/36 | | | 10,000 | | | | 10,592,000 | |
Nevada — 0.6% | |
County of Clark Nevada Water Reclamation District, GO, Series B: | | | | | | | | |
Limited Tax, 5.75%, 7/01/34 | | | 4,813 | | | | 5,739,859 | |
5.50%, 7/01/29 | | | 510 | | | | 601,669 | |
| | | | | | | | |
| | | | | | | | 6,341,528 | |
New Jersey — 1.8% | |
Garden State Preservation Trust, RB, Election of 2005, Series A (AGM), 5.75%, 11/01/28 | | | 10,000 | | | | 13,012,100 | |
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (f) | | | 4,961 | | | | 5,552,228 | |
| | | | | | | | |
| | | | | | | | 18,564,328 | |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 39 |
| | |
Schedule of Investments (continued) | | BlackRock MuniYield Quality Fund III, Inc. (MYI) (Percentages shown are based on Net Assets) |
| | | | | | | | |
Municipal Bonds Transferred to
Tender Option Bond Trusts (e) | | Par
(000) | | | Value | |
New York — 7.8% | |
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution: | | | | | | | | |
Fiscal 2013, Series CC, 5.00%, 6/15/47 | | $ | 15,521 | | | $ | 17,978,562 | |
Series DD, 5.00%, 6/15/37 | | | 17,567 | | | | 19,595,742 | |
City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2014, Series DD, 5.00%, 6/15/35 | | | 4,740 | | | | 5,659,181 | |
Metropolitan Transportation Authority, RB, 5.25%, 11/15/44 | | | 9,850 | | | | 11,810,446 | |
New York State Urban Development Corp., RB, Personal Income Tax, General Purpose, Series A-1, 5.00%, 3/15/43 | | | 14,280 | | | | 16,616,065 | |
Port Authority of New York & New Jersey, Refunding RB, Construction, 143rd Series, AMT,
5.00%, 10/01/30 | | | 5,180 | | | | 5,377,306 | |
Triborough Bridge & Tunnel Authority, RB, General, Series A-2, 5.25%, 11/15/34 (f) | | | 4,500 | | | | 5,170,590 | |
| | | | | | | | |
| | | | | | | | 82,207,892 | |
North Carolina — 0.7% | | | | | | | | |
North Carolina HFA, RB, S/F Housing, Series 31-A, AMT, 5.25%, 7/01/38 | | | 7,080 | | | | 7,364,757 | |
Ohio — 0.7% | | | | | | | | |
County of Montgomery Ohio, RB, Catholic Health, Series C-1 (AGM), 5.00%, 10/01/41 | | | 4,990 | | | | 5,344,041 | |
State of Ohio, RB, Cleveland Clinic Health Obligated Group, Series B, 5.50%, 1/01/34 | | | 1,520 | | | | 1,743,698 | |
| | | | | | | | |
| | | | | | | | 7,087,739 | |
South Carolina — 0.2% | | | | | | | | |
State of South Carolina Housing Finance & Development Authority, Refunding RB, S/F Housing, Series B-1,
5.55%, 7/01/39 | | | 2,609 | | | | 2,676,250 | |
Texas — 4.9% | | | | | | | | |
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Baylor Health Care System Project, Series A, 5.00%, 11/15/38 | | | 1,799 | | | | 2,058,133 | |
Dallas Fort Worth International Airport, ARB,
Series H, AMT, 5.00%, 11/01/37 (f) | | | 8,868 | | | | 9,892,649 | |
Friendswood ISD Texas, GO, Schoolhouse (PSF-GTD), 5.00%, 2/15/37 | | | 12,955 | | | | 14,293,117 | |
Houston ISD, GO, Schoolhouse (PSF-GTD),
5.00%, 2/15/33 | | | 10,000 | | | | 10,803,200 | |
North East Texas ISD, GO, School Building, Series A (PSF-GTD), 5.00%, 8/01/37 (f) | | | 3,500 | | | | 3,822,420 | |
Municipal Bonds Transferred to
Tender Option Bond Trusts (e) | | Par (000) | | | Value | |
Texas (concluded) | |
Texas State University Systems, Refunding RB,
5.25%, 3/15/26 | | $ | 10,000 | | | $ | 11,259,500 | |
| | | | | | | | |
| | | | | | | | 52,129,019 | |
Virginia — 0.4% | | | | | | | | |
University of Virginia, Refunding RB, General,
5.00%, 6/01/40 | | | 3,944 | | | | 4,427,821 | |
Washington — 4.4% | | | | | | | | |
Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/34 | | | 17,000 | | | | 18,685,302 | |
County of King Washington, RB (AGM),
5.00%, 1/01/37 | | | 15,785 | | | | 17,451,155 | |
Washington Health Care Facilities Authority, Refunding RB, Seattle Children’s Hospital, 5.00%, 10/01/38 | | | 8,205 | | | | 10,001,813 | |
| | | | | | | | |
| | | | | | | | 46,138,270 | |
Wisconsin — 2.7% | | | | | | | | |
State of Wisconsin, Refunding RB, Series A,
6.00%, 5/01/36 | | | 14,780 | | | | 17,672,150 | |
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Obligated Group: | | | | | | | | |
Froedtert & Community Health Inc., Series A, 5.00%, 4/01/42 | | | 2,490 | | | | 2,821,519 | |
Series C, 5.25%, 4/01/39 (f) | | | 7,459 | | | | 8,337,971 | |
| | | | | | | | |
| | | | | | | | 28,831,640 | |
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 49.2% | | | | 520,307,618 | |
Total Long-Term Investments
(Cost — $1,483,191,851) — 157.8% | | | | | | | 1,667,361,638 | |
| | | | | | | | |
| | | | | | | | | |
| | |
| Short-Term Securities | | Shares | | | | |
FFI Institutional Tax-Exempt Fund, 0.03% (g)(h) | | | 8,417,550 | | | | 8,417,550 | |
Total Short-Term Securities
(Cost — $8,417,550) — 0.8% | | | | | | | 8,417,550 | |
| Total Investments (Cost — $1,491,609,401) — 158.6% | | | | 1,675,779,188 | |
| Other Assets Less Liabilities — 0.8% | | | | 9,368,649 | |
Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (25.7%) | | | | (271,956,539 | ) |
| VRDP Shares, at Liquidation Value — (33.7%) | | | | (356,400,000 | ) |
| | | | | | | | |
| Net Assets Applicable to Common Shares — 100.0% | | | $ | 1,056,791,298 | |
| | | | | | | | |
|
| Notes to Schedule of Investments |
| (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) | | Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date. |
| (d) | | When-issued security. Unsettled when-issued transactions were as follows: |
| | | | | | | | |
| Counterparty | | Value | | | Unrealized
Appreciation | |
Barclays Capital, Inc. | | $ | 2,035,341 | | | $ | 29,815 | |
J.P. Morgan Securities LLC | | $ | 5,208,130 | | | $ | 25,396 | |
| (e) | | Represent bonds transferred to a TOB. In exchange for which the Fund received cash and residual interest certificates. These bonds serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| 40 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
Schedule of Investments (concluded) | | BlackRock MuniYield Quality Fund III, Inc. (MYI) |
| (f) | | All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreement, which expire from February 1, 2016 to December 1, 2029, is $37,542,695. |
| (g) | | During the six months ended January 31, 2015, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the 1940 Act were as follows: |
| | | | | | | | | | | | | | | | |
| Affiliate | | Shares Held
at July 31,
2014 | | | Net
Activity | | | Shares Held
at January 31,
2015 | | | Income | |
FFI Institutional Tax-Exempt Fund | | | 7,872,927 | | | | 544,623 | | | | 8,417,550 | | | $ | 2,090 | |
| (h) | | Represents the current yield as of report date. |
| Ÿ | | As of January 31, 2015, financial futures contracts outstanding were as follows: |
| | | | | | | | | | | | | | | | |
| Contracts Short | | | Issue | | Exchange | | Expiration | | Notional
Value | | | Unrealized
Depreciation | |
| | (801 | ) | | 10-Year U.S. Treasury Note | | Chicago Board of Trade | | March 2015 | | $ | 104,830,875 | | | $ | (2,998,824 | ) |
| | (415 | ) | | 5-Year U.S. Treasury Note | | Chicago Board of Trade | | March 2015 | | $ | 50,357,656 | | | | (866,245 | ) |
| | Total | | | | | | | | | | | | | $ | (3,865,069 | ) |
| | | | | | | | | | | | | | | | |
| Ÿ | | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. 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 categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows: |
| | Ÿ | | Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access |
| | Ÿ | | 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) |
| | Ÿ | | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.
As of January 31, 2015, 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 | | | — | | | $ | 1,667,361,638 | | | — | | $ | 1,667,361,638 | |
Short-Term Securities | | $ | 8,417,550 | | | | — | | | — | | | 8,417,550 | |
| | | | |
Total | | $ | 8,417,550 | | | $ | 1,667,361,638 | | | — | | $ | 1,675,779,188 | |
| | | | |
1 See above Schedule of Investments for values in each state or political subdivision. | |
| | | Level 1 | | | Level 2 | | | Level 3 | | Total | |
| Derivative Financial Instruments2 | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | |
Interest rate contracts | | $ | (3,865,069 | ) | | | — | | | — | | $ | (3,865,069 | ) |
2 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 January 31, 2015, 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 | | $ | 1,461,600 | | | | — | | | — | | $ | 1,461,600 | |
Liabilities: | | | | | | | | | | | | | | |
TOB trust certificates | | | — | | | $ | (271,906,157 | ) | | — | | | (271,906,157 | ) |
VRDP Shares | | | — | | | | (356,400,000 | ) | | — | | | (356,400,000 | ) |
| | | | |
Total | | $ | 1,461,600 | | | $ | (628,306,157 | ) | | — | | $ | (626,844,557 | ) |
| | | | |
During the six months ended January 31, 2015, there were no transfers between levels.
See Notes to Financial Statements.
| | | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 41 |
| | |
| Statements of Assets and Liabilities | | |
| | | | | | | | | | | | | | | | | | | | |
| January 31, 2015 (Unaudited) | | BlackRock
MuniHoldings
Quality
Fund II, Inc.
(MUE) | | | BlackRock
MuniYield
California
Quality
Fund, Inc.
(MCA) | | | BlackRock
MuniYield
Michigan
Quality
Fund II, Inc.
(MYM) | | | BlackRock
MuniYield
New York
Quality
Fund, Inc.
(MYN) | | | BlackRock
MuniYield
Quality
Fund III, Inc.
(MYI) | |
| | | | | | | | | | | | | | | | | | | | |
| Assets | | | | | | | | | | | | | | | | | | | | |
Investments at value — unaffiliated1 | | $ | 517,148,252 | | | $ | 867,359,716 | | | $ | 282,721,318 | | | $ | 907,886,750 | | | $ | 1,667,361,638 | |
Investments at value — affiliated2 | | | 5,400,634 | | | | 8,933,513 | | | | 2,086,416 | | | | 8,344,352 | | | | 8,417,550 | |
Cash pledged for financial futures contracts | | | 643,000 | | | | 543,000 | | | | 184,000 | | | | 880,000 | | | | 1,461,000 | |
Interest receivable | | | 5,365,950 | | | | 11,587,707 | | | | 3,011,504 | | | | 9,014,382 | | | | 17,751,925 | |
Investments sold receivable | | | 3,480,401 | | | | 935,326 | | | | — | | | | 323,288 | | | | 13,746,922 | |
Deferred offering costs | | | — | | | | 300,415 | | | | 210,919 | | | | 399,757 | | | | 527,065 | |
TOB trust receivable | | | — | | | | 4,605,000 | | | | — | | | | — | | | | 5,470,000 | |
Prepaid expenses | | | 12,816 | | | | 19,704 | | | | 7,824 | | | | 20,569 | | | | 35,263 | |
| | | | |
Total assets | | | 532,051,053 | | | | 894,284,381 | | | | 288,221,981 | | | | 926,869,098 | | | | 1,714,771,363 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| Accrued Liabilities | | | | | | | | | | | | | | | | | | | | |
Investments purchased payable | | | 4,131,635 | | | | 13,445,727 | | | | 3,367,874 | | | | — | | | | 22,033,175 | |
Income dividends payable — Common Shares | | | 1,587,323 | | | | 2,510,956 | | | | 798,496 | | | | 2,553,335 | | | | 5,021,814 | |
Variation margin payable on financial futures contracts | | | 325,875 | | | | 275,000 | | | | 92,813 | | | | 445,500 | | | | 741,978 | |
Investment advisory fees payable | | | 243,001 | | | | 365,648 | | | | 118,922 | | | | 389,947 | | | | 708,369 | |
Bank overdraft | | | 2,576,264 | | | | — | | | | — | | | | — | | | | — | |
Officer’s and Directors’ fees payable | | | 3,576 | | | | 218,146 | | | | 1,727 | | | | 230,959 | | | | 394,047 | |
TOB trust payable | | | — | | | | — | | | | — | | | | — | | | | 544,512 | |
Interest expense and fees payable | | | 12,849 | | | | 26,596 | | | | 2,216 | | | | 17,681 | | | | 50,381 | |
Other accrued expenses payable | | | 86,288 | | | | 123,244 | | | | 61,728 | | | | 107,608 | | | | 179,632 | |
| | | | |
Total accrued liabilities | | | 8,966,811 | | | | 16,965,317 | | | | 4,443,776 | | | | 3,745,030 | | | | 29,673,908 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| Other Liabilities | | | | | | | | | | | | | | | | | | | | |
TOB trust certificates | | | 50,557,016 | | | | 139,157,373 | | | | 13,492,998 | | | | 93,113,130 | | | | 271,906,157 | |
VMTP Shares, at liquidation value of $100,000 per share3,4 | | | 131,000,000 | | | | — | | | | — | | | | — | | | | — | |
VRDP Shares, at liquidation value of $100,000 per share3,4 | | | — | | | | 166,500,000 | | | | 87,300,000 | | | | 247,700,000 | | | | 356,400,000 | |
| | | | |
Total other liabilities | | | 181,557,016 | | | | 305,657,373 | | | | 100,792,998 | | | | 340,813,130 | | | | 628,306,157 | |
| | | | |
Total liabilities | | | 190,523,827 | | | | 322,622,690 | | | | 105,236,774 | | | | 344,558,160 | | | | 657,980,065 | |
| | | | |
Net Assets Applicable to Common Shareholders | | $ | 341,527,226 | | | $ | 571,661,691 | | | $ | 182,985,207 | | | $ | 582,310,938 | | | $ | 1,056,791,298 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| Net Assets Applicable to Common Shareholders Consist of | | | | | | | | | | | | | | | | | | | | |
Paid-in capital5,6 | | $ | 300,068,094 | | | $ | 492,920,813 | | | $ | 162,583,742 | | | $ | 532,521,339 | | | $ | 952,923,760 | |
Undistributed net investment income | | | 2,903,649 | | | | 4,596,644 | | | | 1,131,112 | | | | 5,260,097 | | | | 16,224,907 | |
Accumulated net realized loss | | | (19,794,087 | ) | | | (3,941,681 | ) | | | (5,630,732 | ) | | | (33,334,529 | ) | | | (92,409,844 | ) |
Net unrealized appreciation/depreciation | | | 58,349,570 | | | | 78,085,915 | | | | 24,901,085 | | | | 77,864,031 | | | | 180,052,475 | |
| | | | |
Net Assets Applicable to Common Shareholders | | $ | 341,527,226 | | | $ | 571,661,691 | | | $ | 182,985,207 | | | $ | 582,310,938 | | | $ | 1,056,791,298 | |
| | | | |
Net asset value, per Common Share | | $ | 15.17 | | | $ | 16.62 | | | $ | 15.12 | | | $ | 14.71 | | | $ | 15.57 | |
| | | | |
1 Investments at cost — unaffiliated | | $ | 457,097,575 | | | $ | 787,940,108 | | | $ | 257,378,255 | | | $ | 827,206,889 | | | $ | 1,483,191,851 | |
2 Investments at cost — affiliated | | $ | 5,400,634 | | | $ | 8,933,513 | | | $ | 2,086,416 | | | $ | 8,344,352 | | | $ | 8,417,550 | |
3 Preferred Shares outstanding, par value $0.10 per share | | | 1,310 | | | | 1,665 | | | | 873 | | | | 2,477 | | | | 3,564 | |
4 Preferred Shares authorized, including Auction Market Preferred Shares (“AMPS”) | | | 9,490 | | | | 12,665 | | | | 4,833 | | | | 14,637 | | | | 26,364 | |
5 Common Shares outstanding, par value $0.10 per share | | | 22,515,224 | | | | 34,396,651 | | | | 12,098,420 | | | | 39,586,584 | | | | 67,862,354 | |
6 Common Shares authorized | | | 199,990,510 | | | | 199,987,335 | | | | 199,995,167 | | | | 199,985,363 | | | | 199,973,636 | |
| | | | | | |
| See Notes to Financial Statements. | | | | |
| | | | | | | |
| 42 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | | | | | | | | | | | | | | | | | | | |
| Six Months Ended January 31, 2015 (Unaudited) | | BlackRock
MuniHoldings
Quality
Fund II, Inc.
(MUE) | | | BlackRock
MuniYield
California
Quality
Fund, Inc.
(MCA) | | | BlackRock
MuniYield
Michigan
Quality
Fund II, Inc.
(MYM) | | | BlackRock
MuniYield
New York
Quality
Fund, Inc.
(MYN) | | | BlackRock
MuniYield
Quality
Fund III, Inc.
(MYI) | |
| | | | | | | | | | | | | | | | | | | | |
| Investment Income | | | | | | | | | | | | | | | | | | | | |
Interest | | $ | 11,472,819 | | | $ | 17,771,697 | | | $ | 5,897,013 | | | $ | 18,970,007 | | | $ | 36,819,907 | |
Income — affiliated | | | 430 | | | | 1 | | | | 147 | | | | 2 | | | | 2,090 | |
| | | | |
Total income | | | 11,473,249 | | | | 17,771,698 | | | | 5,897,160 | | | | 18,970,009 | | | | 36,821,997 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| Expenses | | | | | | | | | | | | | | | | | | | | |
Investment advisory | | | 1,428,485 | | | | 2,160,074 | | | | 699,628 | | | | 2,286,615 | | | | 4,157,715 | |
Professional | | | 45,070 | | | | 63,186 | | | | 33,638 | | | | 55,755 | | | | 98,081 | |
Accounting services | | | 38,840 | | | | 56,141 | | | | 22,776 | | | | 58,537 | | | | 87,922 | |
Officer and Directors | | | 14,701 | | | | 25,521 | | | | 8,086 | | | | 25,633 | | | | 46,605 | |
Transfer agent | | | 18,768 | | | | 18,002 | | | | 11,768 | | | | 23,216 | | | | 44,022 | |
Custodian | | | 13,254 | | | | 18,039 | | | | 8,095 | | | | 19,830 | | | | 32,202 | |
Registration | | | 4,759 | | | | 6,057 | | | | 4,717 | | | | 6,954 | | | | 11,965 | |
Printing | | | 4,778 | | | | 5,927 | | | | 3,849 | | | | 6,428 | | | | 8,992 | |
Miscellaneous | | | 38,275 | | | | 44,191 | | | | 36,395 | | | | 51,312 | | | | 65,089 | |
| | | | |
Total expenses excluding interest expense, fees and amortization of offering costs | | | 1,606,930 | | | | 2,397,138 | | | | 828,952 | | | | 2,534,280 | | | | 4,552,593 | |
Interest expense, fees and amortization of offering costs1 | | | 882,622 | | | | 1,209,341 | | | | 474,181 | | | | 1,529,575 | | | | 2,568,199 | |
| | | | |
Total expenses | | | 2,489,552 | | | | 3,606,479 | | | | 1,303,133 | | | | 4,063,855 | | | | 7,120,792 | |
Less fees waived by Manager | | | (10,651 | ) | | | (444 | ) | | | (4,828 | ) | | | (1,707 | ) | | | (440 | ) |
| | | | |
Total expenses after fees waived | | | 2,478,901 | | | | 3,606,035 | | | | 1,298,305 | | | | 4,062,148 | | | | 7,120,352 | |
| | | | |
Net investment income | | | 8,994,348 | | | | 14,165,663 | | | | 4,598,855 | | | | 14,907,861 | | | | 29,701,645 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| Realized and Unrealized Gain (Loss) | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) from: | | | | | | | | | | | | | | | | | | | | |
Investments | | | 1,256,288 | | | | 3,544,119 | | | | 933,445 | | | | 587,195 | | | | 2,139,493 | |
Financial futures contracts | | | (499,170 | ) | | | (1,225,893 | ) | | | (87,597 | ) | | | (1,658,302 | ) | | | (1,875,114 | ) |
Capital gain distributions received from affiliated investment companies | | | — | | | | 106 | | | | — | | | | 567 | | | | — | |
| | | | |
| | | 757,118 | | | | 2,318,332 | | | | 845,848 | | | | (1,070,540 | ) | | | 264,379 | |
| | | | |
| Net change in unrealized appreciation/depreciation on: | | | | | | | | | | | | | | | | | | | | |
Investments | | | 18,524,544 | | | | 16,534,123 | | | | 10,174,319 | | | | 28,996,224 | | | | 53,659,493 | |
Financial futures contracts | | | (1,788,085 | ) | | | (1,417,935 | ) | | | (418,206 | ) | | | (2,808,859 | ) | | | (3,919,740 | ) |
| | | | |
| | | 16,736,459 | | | | 15,116,188 | | | | 9,756,113 | | | | 26,187,365 | | | | 49,739,753 | |
| | | | |
Net realized and unrealized gain | | | 17,493,577 | | | | 17,434,520 | | | | 10,601,961 | | | | 25,116,825 | | | | 50,004,132 | |
| | | | |
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations | | $ | 26,487,925 | | | $ | 31,600,183 | | | $ | 15,200,816 | | | $ | 40,024,686 | | | $ | 79,705,777 | |
| | | | |
1 Related to TOBs, VMTP Shares and/or VRDP Shares. | |
| | | | | | |
| See Notes to Financial Statements. | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 43 |
| | |
| Statements of Changes in Net Assets | | |
| | | | | | | | | | | | | | | | | | |
| | | BlackRock MuniHoldings
Quality Fund II, Inc. (MUE) | | | | | BlackRock MuniYield California
Quality Fund, Inc. (MCA) | |
| Increase (Decrease) in Net Assets Applicable to Common Shareholders: | | Six Months Ended
January 31,
2015
(Unaudited) | | | Year Ended
July 31,
2014 | | | | | Six Months Ended
January 31,
2015
(Unaudited) | | | Year Ended
July 31,
2014 | |
| | | | | | | | | | | | | | | | | | |
| Operations | | | | | | | | | | | | | | | | | | |
Net investment income | | $ | 8,994,348 | | | $ | 18,473,318 | | | | | $ | 14,165,663 | | | $ | 29,819,595 | |
Net realized gain (loss) | | | 757,118 | | | | (7,372,515 | ) | | | | | 2,318,332 | | | | (1,794,451 | ) |
Net change in unrealized appreciation/depreciation | | | 16,736,459 | | | | 33,803,179 | | | | | | 15,116,188 | | | | 48,350,927 | |
| | | | | | | | | | |
Net increase in net assets applicable to Common Shareholders resulting from operations | | | 26,487,925 | | | | 44,903,982 | | | | | | 31,600,183 | | | | 76,376,071 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Distributions to Common Shareholders From1 | | | | | | | | | | | | | | | | | | |
Net investment income | | | (9,523,940 | ) | | | (19,047,886 | ) | | | | | (15,065,733 | ) | | | (31,266,556 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Net Assets Applicable to Common Shareholders | | | | | | | | | | | | | | | | | | |
Total increase in net assets applicable to Common Shareholders | | | 16,963,985 | | | | 25,856,096 | | | | | | 16,534,450 | | | | 45,109,515 | |
Beginning of period | | | 324,563,241 | | | | 298,707,145 | | | | | | 555,127,241 | | | | 510,017,726 | |
| | | | | | | | | | |
End of period | | $ | 341,527,226 | | | $ | 324,563,241 | | | | | $ | 571,661,691 | | | $ | 555,127,241 | |
| | | | | | | | | | |
Undistributed net investment income, end of period | | $ | 2,903,649 | | | $ | 3,433,241 | | | | | $ | 4,596,644 | | | $ | 5,496,714 | |
| | | | | | | | | | |
| | 1 | | Distributions for annual periods determined in accordance with federal income tax regulations. |
| | | | | | |
| See Notes to Financial Statements. | | | | |
| | | | | | | |
| 44 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
| Statements of Changes in Net Assets | | |
| | | | | | | | | | | | | | | | | | |
| | | BlackRock MuniYield Michigan
Quality Fund II, Inc. (MYM) | | | | | BlackRock MuniYield New York
Quality Fund, Inc. (MYN) | |
| Increase (Decrease) in Net Assets Applicable to Common Shareholders: | | Six Months Ended
January 31,
2015
(Unaudited) | | | Year Ended
July 31,
2014 | | | | | Six Months Ended
January 31,
2015
(Unaudited) | | | Year Ended
July 31,
2014 | |
| | | | | | | | | | | | | | | | | | |
| Operations | | | | | | | | | | | | | | | | | | |
Net investment income | | $ | 4,598,855 | | | $ | 9,506,271 | | | | | $ | 14,907,861 | | | $ | 30,963,379 | |
Net realized gain (loss) | | | 845,848 | | | | (5,114,709 | ) | | | | | (1,070,540 | ) | | | (15,290,126 | ) |
Net change in unrealized appreciation/depreciation | | | 9,756,113 | | | | 17,403,906 | | | | | | 26,187,365 | | | | 53,389,204 | |
| | | | | | | | | | |
Net increase in net assets applicable to Common Shareholders resulting from operations | | | 15,200,816 | | | | 21,795,468 | | | | | | 40,024,686 | | | | 69,062,457 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Distributions to Common Shareholders From1 | | | | | | | | | | | | | | | | | | |
Net investment income | | | (4,790,974 | ) | | | (9,854,163 | ) | | | | | (15,320,008 | ) | | | (32,718,944 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Net Assets Applicable to Common Shareholders | | | | | | | | | | | | | | | | | | |
Total increase in net assets applicable to Common Shareholders | | | 10,409,842 | | | | 11,941,305 | | | | | | 24,704,678 | | | | 36,343,513 | |
Beginning of period | | | 172,575,365 | | | | 160,634,060 | | | | | | 557,606,260 | | | | 521,262,747 | |
| | | | | | | | | | |
End of period | | $ | 182,985,207 | | | $ | 172,575,365 | | | | | $ | 582,310,938 | | | $ | 557,606,260 | |
| | | | | | | | | | |
Undistributed net investment income, end of period | | $ | 1,131,112 | | | $ | 1,323,231 | | | | | $ | 5,260,097 | | | $ | 5,672,244 | |
| | | | | | | | | | |
| | 1 | | Distributions for annual periods determined in accordance with federal income tax regulations. |
| | | | | | |
| See Notes to Financial Statements. | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 45 |
| | |
| Statements of Changes in Net Assets | | |
| | | | | | | | |
| | | BlackRock MuniYield Quality
Fund III, Inc. (MYI) | |
| Increase (Decrease) in Net Assets Applicable to Common Shareholders: | | Six Months Ended
January 31, 2015
(Unaudited) | | | Year Ended
July 31, 2014 | |
| | | | | | | | |
| Operations | | | | | | | | |
Net investment income | | $ | 29,701,645 | | | $ | 60,545,009 | |
Net realized gain (loss) | | | 264,379 | | | | (6,658,344 | ) |
Net change in unrealized appreciation/depreciation | | | 49,739,753 | | | | 86,903,888 | |
| | | | | | | | |
Net increase in net assets applicable to Common Shareholders resulting from operations | | | 79,705,777 | | | | 140,790,553 | |
| | | | | | | | |
| | | | | | | | |
| Distributions to Common Shareholders From1 | | | | | | | | |
Net investment income | | | (30,205,533 | ) | | | (59,311,697 | ) |
| | | | | | | | |
| | | | | | | | |
| Net Assets Applicable to Common Shareholders | | | | | | | | |
Total increase in net assets applicable to Common Shareholders | | | 49,500,244 | | | | 81,478,856 | |
Beginning of period | | | 1,007,291,054 | | | | 925,812,198 | |
| | | | | | | | |
End of period | | $ | 1,056,791,298 | | | $ | 1,007,291,054 | |
| | | | | | | | |
Undistributed net investment income, end of period | | $ | 16,224,907 | | | $ | 16,728,795 | |
| | | | | | | | |
1 Distributions for annual periods determined in accordance with federal income tax regulations. | | | | | | | | |
| | | | | | |
| See Notes to Financial Statements. | | | | |
| | | | | | | |
| 46 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | | | | | | | | | | | | | | | | | | | |
| Six Months Ended January 31, 2015 (Unaudited) | | BlackRock
MuniHoldings
Quality
Fund II, Inc.
(MUE) | | | BlackRock
MuniYield
California
Quality
Fund, Inc.
(MCA) | | | BlackRock
MuniYield
Michigan
Quality
Fund II, Inc.
(MYM) | | | BlackRock
MuniYield
New York
Quality
Fund, Inc.
(MYN) | | | BlackRock
MuniYield
Quality
Fund III, Inc.
(MYI) | |
| | | | | | | | | | | | | | | | | | | | |
| Cash Provided by Operating Activities | | | | | | | | | | | | | | | | | | | | |
Net increase in net assets resulting from operations | | $ | 26,487,925 | | | $ | 31,600,183 | | | $ | 15,200,816 | | | $ | 40,024,686 | | | $ | 79,705,777 | |
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: | | | | | | | | | | | | | | | | | | | | |
(Increase) decrease in interest receivable | | | 60,196 | | | | 134,883 | | | | 11,284 | | | | 545,302 | | | | (55,219 | ) |
Decrease in variation margin receivable on financial futures contracts | | | 9,843 | | | | 16,498 | | | | 2,344 | | | | 26,903 | | | | 28,872 | |
Decrease in prepaid expenses | | | 14,943 | | | | 12,240 | | | | 17,861 | | | | 12,132 | | | | 7,460 | |
Increase in cash pledged for financial futures contracts | | | (356,000 | ) | | | (62,000 | ) | | | (109,000 | ) | | | (96,000 | ) | | | (620,000 | ) |
Increase in investment advisory fees payable | | | 10,726 | | | | 4,631 | | | | 3,101 | | | | 11,019 | | | | 17,382 | |
Decrease in interest expense and fees payable | | | (1,168 | ) | | | (6,269 | ) | | | (778 | ) | | | (1,508 | ) | | | (13,593 | ) |
Decrease in other accrued expenses payable | | | (23,314 | ) | | | (16,206 | ) | | | (26,248 | ) | | | (36,406 | ) | | | (39,672 | ) |
Increase in variation margin payable on financial futures contracts | | | 325,875 | | | | 275,000 | | | | 92,813 | | | | 445,500 | | | | 741,978 | |
Increase (decrease) in Officer’s and Directors’ fees payable | | | (786 | ) | | | 11,117 | | | | (153 | ) | | | 11,037 | | | | 20,503 | |
Net realized gain on investments | | | (1,256,288 | ) | | | (3,544,119 | ) | | | (933,445 | ) | | | (587,195 | ) | | | (2,139,493 | ) |
Net unrealized gain on investments | | | (18,524,544 | ) | | | (16,534,123 | ) | | | (10,174,319 | ) | | | (28,996,224 | ) | | | (53,659,493 | ) |
Amortization of premium and accretion of discount on investments | | | 756,134 | | | | 1,952,189 | | | | 424,902 | | | | 1,304,181 | | | | (1,613,375 | ) |
Proceeds from sales of long-term investments | | | 22,586,838 | | | | 165,149,444 | | | | 30,361,709 | | | | 77,461,940 | | | | 72,798,099 | |
Purchases of long-term investments | | | (20,123,572 | ) | | | (163,537,463 | ) | | | (30,267,150 | ) | | | (75,539,074 | ) | | | (69,214,800 | ) |
Net proceeds from sales (purchases) of short-term securities | | | (1,226,253 | ) | | | (7,692,271 | ) | | | 183,198 | | | | (2,652,865 | ) | | | (544,623 | ) |
| | | | |
Net cash provided by operating activities | | | 8,740,555 | | | | 7,763,734 | | | | 4,786,935 | | | | 11,933,428 | | | | 25,419,803 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| Cash Used for Financing Activities | | | | | | | | | | | | | | | | | | | | |
Proceeds from TOB trust certificates | | | — | | | | 24,680,000 | | | | — | | | | 5,330,000 | | | | 25,647,451 | |
Repayments of TOB trust certificates | | | (1,940,136 | ) | | | (17,525,000 | ) | | | — | | | | (1,951,088 | ) | | | (21,174,109 | ) |
Cash dividends paid to Common Shareholders | | | (9,523,940 | ) | | | (15,065,733 | ) | | | (4,790,974 | ) | | | (15,320,008 | ) | | | (30,205,533 | ) |
Increase in bank overdraft | | | 2,576,264 | | | | — | | | | — | | | | — | | | | — | |
Amortization of deferred offering costs | | | 30,578 | | | | 5,770 | | | | 4,039 | | | | 7,668 | | | | 10,083 | |
| | | | |
Net cash used for financing activities | | | (8,857,234 | ) | | | (7,904,963 | ) | | | (4,786,935 | ) | | | (11,933,428 | ) | | | (25,722,108 | ) |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| Cash | | | | | | | | | | | | | | | | | | | | |
Net decrease in cash | | | (116,679 | ) | | | (141,229 | ) | | | — | | | | — | | | | (302,305 | ) |
Cash at beginning of period | | | 116,679 | | | | 141,229 | | | | — | | | | — | | | | 302,305 | |
| | | | |
Cash at end of period | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| Supplemental Disclosure of Cash Flow Information | | | | | | | | | | | | | | | | | | | | |
Cash paid during the period for interest and fees | | $ | 853,212 | | | $ | 1,209,734 | | | $ | 470,920 | | | $ | 1,522,848 | | | $ | 2,571,709 | |
| | | | |
| | | | | | |
| See Notes to Financial Statements. | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 47 |
| | |
| Financial Highlights | | BlackRock MuniHoldings Quality Fund II, Inc. (MUE) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended
January 31,
2015
(Unaudited) | | | Year Ended July 31, | |
| | | 2014 | | | 2013 | | | 2012 | | | 2011 | | | 2010 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Per Share Operating Performance | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | $ | 14.42 | | | $ | 13.27 | | | $ | 15.18 | | | $ | 13.07 | | | $ | 13.57 | | | $ | 12.27 | |
| | | | |
Net investment income1 | | | 0.40 | | | | 0.82 | | | | 0.81 | | | | 0.86 | | | | 0.89 | | | | 0.92 | |
Net realized and unrealized gain (loss) | | | 0.77 | | | | 1.18 | | | | (1.87 | ) | | | 2.14 | | | | (0.49 | ) | | | 1.26 | |
Distributions to AMPS Shareholders from net investment income | | | — | | | | — | | | | — | | | | (0.01 | ) | | | (0.02 | ) | | | (0.02 | ) |
| | | | |
Net increase (decrease) from investment operations | | | 1.17 | | | | 2.00 | | | | (1.06 | ) | | | 2.99 | | | | 0.38 | | | | 2.16 | |
| | | | |
Distributions to Common Shareholders from net investment income2 | | | (0.42 | ) | | | (0.85 | ) | | | (0.85 | ) | | | (0.88 | ) | | | (0.88 | ) | | | (0.86 | ) |
| | | | |
Net asset value, end of period | | $ | 15.17 | | | $ | 14.42 | | | $ | 13.27 | | | $ | 15.18 | | | $ | 13.07 | | | $ | 13.57 | |
| | | | |
Market price, end of period | | $ | 14.13 | | | $ | 12.94 | | | $ | 12.32 | | | $ | 15.55 | | | $ | 12.46 | | | $ | 14.26 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total Return Applicable to Common Shareholders3 | | | | | | | | | | | | | | | | | | | | | | | | |
Based on net asset value | | | 8.54% | 4 | | | 16.19% | | | | (7.41)% | | | | 23.64% | | | | 3.19% | | | | 18.04% | |
| | | | |
Based on market price | | | 12.67% | 4 | | | 12.30% | | | | (16.08)% | | | | 32.85% | | | | (6.38)% | | | | 33.51% | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios to Average Net Assets Applicable to Common Shareholders | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 1.49% | 5 | | | 1.61% | | | | 1.66% | | | | 1.52% | 6 | | | 1.30% | 6 | | | 1.28% | 6 |
| | | | |
Total expenses after fees waived | | | 1.48% | 5 | | | 1.56% | | | | 1.60% | | | | 1.46% | 6 | | | 1.23% | 6 | | | 1.15% | 6 |
| | | | |
Total expenses after fees waived and excluding interest expense, fees and amortization of offering costs7 | | | 0.95% | 5 | | | 0.95% | | | | 0.97% | | | | 1.00% | 6,8 | | | 1.07% | 6 | | | 0.99% | 6 |
| | | | |
Net investment income | | | 5.37% | 5 | | | 6.01% | | | | 5.36% | | | | 6.05% | 6 | | | 6.93% | 6 | | | 6.92% | 6 |
| | | | |
Distributions to AMPS Shareholders | | | — | | | | — | | | | — | | | | 0.04% | | | | 0.17% | | | | 0.18% | |
| | | | |
Net investment income to Common Shareholders | | | 5.37% | 5 | | | 6.01% | | | | 5.36% | | | | 6.01% | | | | 6.76% | | | | 6.74% | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets applicable to Common Shareholders, end of period (000) | | $ | 341,527 | | | $ | 324,563 | | | $ | 298,707 | | | $ | 341,144 | | | $ | 293,356 | | | $ | 303,667 | |
| | | | |
AMPS outstanding at $25,000 liquidation preference, end of period (000) | | | — | | | | — | | | | — | | | | — | | | $ | 131,000 | | | $ | 131,000 | |
| | | | |
Asset coverage per AMPS at $25,000 liquidation preference, end of period (000) | | | — | | | | — | | | | — | | | | — | | | $ | 80,983 | | | $ | 82,953 | |
| | | | |
VMTP Shares outstanding at $100,000 liquidation value, end of period (000) | | $ | 131,000 | | | $ | 131,000 | | | $ | 131,000 | | | $ | 131,000 | | | | — | | | | — | |
| | | | |
Asset coverage per VMTP Shares at $100,000 liquidation value, end of period | | $ | 360,708 | | | $ | 347,758 | | | $ | 328,021 | | | $ | 360,416 | | | | — | | | | — | |
| | | | |
Borrowings outstanding, end of period (000) | | $ | 50,557 | | | $ | 52,497 | | | $ | 83,123 | | | $ | 88,921 | | | $ | 62,183 | | | $ | 62,693 | |
| | | | |
Asset coverage, end of period per $1,000 of borrowings | | $ | 7,755 | | | $ | 7,183 | | | | 4,594 | | | $ | 4,836 | | | $ | 5,718 | | | $ | 5,844 | |
| | | | |
Portfolio turnover rate | | | 5% | | | | 28% | | | | 40% | | | | 36% | | | | 24% | | | | 20% | |
| | | | |
| | 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. |
| | 6 | | Does not reflect the effect of dividends to AMPS Shareholders. |
| | 7 | | Interest expense, fees and amortization of offering costs related to TOBs and/or VMTP Shares. See Note 3 and 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP Shares. |
| | 8 | | For the year ended July 31, 2012, the total expense ratio after fees waived and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.97%. |
| | | | | | |
| See Notes to Financial Statements. | | | | |
| | | | | | | |
| 48 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
| Financial Highlights | | BlackRock MuniYield California Quality Fund, Inc. (MCA) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended
January 31,
2015
(Unaudited) | | | Year Ended July 31, | |
| | | 2014 | | | 2013 | | | 2012 | | | 2011 | | | 2010 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Per Share Operating Performance | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | $ | 16.14 | | | $ | 14.83 | | | $ | 16.60 | | | $ | 14.31 | | | $ | 14.66 | | | $ | 13.43 | |
| | | | |
Net investment income1 | | | 0.41 | | | | 0.87 | | | | 0.88 | | | | 0.90 | | | | 0.91 | | | | 0.87 | |
Net realized and unrealized gain (loss) | | | 0.51 | | | | 1.35 | | | | (1.74 | ) | | | 2.28 | | | | (0.37 | ) | | | 1.15 | |
Distributions to AMPS Shareholders from net investment income | | | — | | | | — | | | | — | | | | — | | | | (0.02 | ) | | | (0.03 | ) |
| | | | |
Net increase (decrease) from investment operations | | | 0.92 | | | | 2.22 | | | | (0.86 | ) | | | 3.18 | | | | 0.52 | | | | 1.99 | |
| | | | |
Distributions to Common Shareholders from net investment income2 | | | (0.44 | ) | | | (0.91 | ) | | | (0.91 | ) | | | (0.89 | ) | | | (0.87 | ) | | | (0.76 | ) |
| | | | |
Net asset value, end of period | | $ | 16.62 | | | $ | 16.14 | | | $ | 14.83 | | | $ | 16.60 | | | $ | 14.31 | | | $ | 14.66 | |
| | | | |
Market price, end of period | | $ | 15.82 | | | $ | 14.37 | | | $ | 13.66 | | | $ | 16.59 | | | $ | 13.00 | | | $ | 14.02 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total Return Applicable to Common Shareholders3 | | | | | | | | | | | | | | | | | |
Based on net asset value | | | 6.01% | 4 | | | 16.04% | | | | (5.41)% | | | | 23.15% | | | | 4.21% | | | | 15.69% | |
| | | | |
Based on market price | | | 13.34% | 4 | | | 12.16% | | | | (12.83)% | | | | 35.48% | | | | (1.01)% | | | | 23.00% | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios to Average Net Assets Applicable to Common Shareholders | | | | | | | | | | | | | | | | | |
Total expenses | | | 1.27% | 5 | | | 1.40% | | | | 1.48% | | | | 1.62% | | | | 1.50% | 6 | | | 1.11% | 6 |
| | | | |
Total expenses after fees waived | | | 1.27% | 5 | | | 1.40% | | | | 1.48% | | | | 1.61% | | | | 1.49% | 6 | | | 1.10% | 6 |
| | | | |
Total expenses after fees waived and excluding interest expense, fees and amortization of offering costs7 | | | 0.85% | 5 | | | 0.90% | | | | 0.92% | | | | 1.20% | 8 | | | 1.15% | 6 | | | 0.95% | 6 |
| | | | |
Net investment income | | | 5.00% | 5 | | | 5.63% | | | | 5.37% | | | | 5.79% | | | | 6.49% | 6 | | | 6.10% | 6 |
| | | | |
Distributions to AMPS Shareholders | | | — | | | | — | | | | — | | | | — | | | | 0.16% | | | | 0.20% | |
| | | | |
Net investment income to Common Shareholders | | | 5.00% | 5 | | | 5.63% | | | | 5.37% | | | | 5.79% | | | | 6.33% | | | | 5.90% | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Supplemental Data | | | | | | | | | | | | | | | | | |
Net assets applicable to Common Shareholders, end of period (000) | | $ | 571,662 | | | $ | 555,127 | | | $ | 510,018 | | | $ | 570,559 | | | $ | 491,798 | | | $ | 503,869 | |
| | | | |
AMPS outstanding at $25,000 liquidation preference, end of period (000) | | | — | | | | — | | | | — | | | | — | | | | — | | | $ | 166,525 | |
| | | | |
Asset coverage per AMPS at $25,000 liquidation preference, end of period | | | — | | | | — | | | | — | | | | — | | | | — | | | $ | 100,648 | |
| | | | |
VRDP Shares outstanding at $100,000 liquidation value, end of period (000) | | $ | 166,500 | | | $ | 166,500 | | | $ | 166,500 | | | $ | 166,500 | | | $ | 166,500 | | | | — | |
| | | | |
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period | | $ | 443,340 | | | $ | 433,410 | | | $ | 406,317 | | | $ | 442,678 | | | $ | 395,374 | | | | — | |
| | | | |
Borrowings outstanding, end of period (000) | | $ | 139,157 | | | $ | 127,397 | | | $ | 188,185 | | | $ | 199,874 | | | $ | 179,422 | | | $ | 171,137 | |
| | | | |
Asset coverage, end of period per $1,000 of borrowings | | $ | 5,108 | | | $ | 5,357 | | | $ | 3,710 | | | $ | 3,855 | | | $ | 3,741 | | | $ | 3,944 | |
| | | | |
Portfolio turnover rate | | | 17% | | | | 15% | | | | 25% | | | | 34% | | | | 26% | | | | 30% | |
| | | | |
| | 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. |
| | 6 | | Does not reflect the effect of dividends to AMPS Shareholders. |
| | 7 | | Interest expense, fees and amortization of offering costs related to TOBs and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively. |
| | 8 | | For the year ended July 31, 2012, the total expense ratio after fees waived and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.95%. |
| | | | | | |
| See Notes to Financial Statements. | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 49 |
| | |
| Financial Highlights | | BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended
January 31,
2015
(Unaudited) | | | Year Ended July 31, | |
| | | | 2014 | | | 2013 | | | 2012 | | | 2011 | | | 2010 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Per Share Operating Performance | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | $ | 14.26 | | | $ | 13.28 | | | $ | 15.14 | | | $ | 13.53 | | | $ | 13.82 | | | $ | 12.87 | |
| | | | |
Net investment income1 | | | 0.38 | | | | 0.79 | | | | 0.81 | | | | 0.80 | | | | 0.86 | | | | 0.91 | |
Net realized and unrealized gain (loss) | | | 0.88 | | | | 1.00 | | | | (1.84 | ) | | | 1.68 | | | | (0.26 | ) | | | 0.90 | |
Distributions to AMPS Shareholders from net investment income | | | — | | | | — | | | | — | | | | — | | | | (0.03 | ) | | | (0.04 | ) |
| | | | |
Net increase (decrease) from investment operations | | | 1.26 | | | | 1.79 | | | | (1.03 | ) | | | 2.48 | | | | 0.57 | | | | 1.77 | |
| | | | |
Distributions to Common Shareholders from net investment income2 | | | (0.40 | ) | | | (0.81 | ) | | | (0.83 | ) | | | (0.87 | ) | | | (0.86 | ) | | | (0.82 | ) |
| | | | |
Net asset value, end of period | | $ | 15.12 | | | $ | 14.26 | | | $ | 13.28 | | | $ | 15.14 | | | $ | 13.53 | | | $ | 13.82 | |
| | | | |
Market price, end of period | | $ | 13.45 | | | $ | 12.56 | | | $ | 11.64 | | | $ | 14.52 | | | $ | 12.28 | | | $ | 13.67 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total Return Applicable to Common Shareholders3 | | | | | | | | | | | | | | | | | |
Based on net asset value | | | 9.33% | 4 | | | 14.84% | | | | (6.99)% | | | | 19.01% | | | | 4.74% | | | | 14.62% | |
| | | | |
Based on market price | | | 10.42% | 4 | | | 15.39% | | | | (14.99)% | | | | 25.76% | | | | (3.89)% | | | | 26.01% | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios to Average Net Assets Applicable to Common Shareholders | | | | | | | | | | | | | | | | | |
Total expenses | | | 1.46% | 5 | | | 1.55% | | | | 1.54% | | | | 1.71% | | | | 1.32% | 6 | | | 1.08% | 6 |
| | | | |
Total expenses after fees waived | | | 1.46% | 5 | | | 1.55% | | | | 1.54% | | | | 1.71% | | | | 1.31% | 6 | | | 1.07% | 6 |
| | | | |
Total expenses after fees waived and excluding interest expense, fees and amortization of offering costs7 | | | 0.92% | 5 | | | 0.96% | | | | 0.95% | | | | 1.37% | 8 | | | 1.21% | 6 | | | 1.03% | 6 |
| | | | |
Net investment income | | | 5.16% | 5 | | | 5.81% | | | | 5.41% | | | | 5.56% | | | | 6.46% | 6 | | | 6.74% | 6 |
| | | | |
Distributions to AMPS Shareholders | | | — | | | | — | | | | — | | | | — | | | | 0.23% | | | | 0.28% | |
| | | | |
Net investment income to Common Shareholders | | | 5.16% | 5 | | | 5.81% | | | | 5.41% | | | | 5.56% | | | | 6.23% | | | | 6.46% | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Supplemental Data | | | | | | | | | | | | | | | | | |
Net assets applicable to Common Shareholders, end of period (000) | | $ | 182,985 | | | $ | 172,575 | | | $ | 160,634 | | | $ | 183,076 | | | $ | 163,276 | | | $ | 166,773 | |
| | | | |
AMPS outstanding at $25,000 liquidation preference, end of period (000) | | | — | | | | — | | | | — | | | | — | | | | — | | | $ | 87,350 | |
| | | | |
Asset coverage per AMPS at $25,000 liquidation preference, end of period | | | — | | | | — | | | | — | | | | — | | | | — | | | $ | 72,733 | |
| | | | |
VRDP Shares outstanding at $100,000 liquidation value, end of period (000) | | $ | 87,300 | | | $ | 87,300 | | | $ | 87,300 | | | $ | 87,300 | | | $ | 87,300 | | | | — | |
| | | | |
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period | | $ | 309,605 | | | $ | 297,681 | | | $ | 284,002 | | | $ | 309,709 | | | $ | 287,029 | | | | — | |
| | | | |
Borrowings outstanding, end of period (000) | | $ | 13,493 | | | $ | 13,492 | | | $ | 19,344 | | | $ | 16,718 | | | $ | 9,030 | | | $ | 9,030 | |
| | | | |
Asset coverage, end of period per $1,000 of borrowings | | $ | 14,561 | | | $ | 13,791 | | | $ | 9,304 | | | $ | 11,951 | | | $ | 19,082 | | | $ | 19,469 | |
| | | | |
Portfolio turnover rate | | | 11% | | | | 17% | | | | 14% | | | | 19% | | | | 18% | | | | 18% | |
| | | | |
| | 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. |
| | 6 | | Does not reflect the effect of dividends to AMPS Shareholders. |
| | 7 | | Interest expense, fees and amortization of offering costs related to TOBs and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively. |
| | 8 | | For the year ended July 31, 2012, the total expense ratio after fees waived and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.98%. |
| | | | | | |
| See Notes to Financial Statements. | | | | |
| | | | | | | |
| 50 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
| Financial Highlights | | BlackRock MuniYield New York Quality Fund, Inc. (MYN) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended January 31,
2015
(Unaudited) | | | Year Ended July 31, | |
| | | | 2014 | | | 2013 | | | 2012 | | | 2011 | | | 2010 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Per Share Operating Performance | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | $ | 14.09 | | | $ | 13.17 | | | $ | 15.07 | | | $ | 13.44 | | | $ | 13.89 | | | $ | 12.65 | |
| | | | |
Net investment income1 | | | 0.38 | | | | 0.78 | | | | 0.83 | | | | 0.83 | | | | 0.87 | | | | 0.90 | |
Net realized and unrealized gain (loss) | | | 0.63 | | | | 0.97 | | | | (1.88 | ) | | | 1.65 | | | | (0.44 | ) | | | 1.08 | |
Distributions to AMPS Shareholders from net investment income | | | — | | | | — | | | | — | | | | — | | | | (0.03 | ) | | | (0.04 | ) |
| | | | |
Net increase (decrease) from investment operations | | | 1.01 | | | | 1.75 | | | | (1.05 | ) | | | 2.48 | | | | 0.40 | | | | 1.94 | |
| | | | |
Distributions to Common Shareholders from net investment income2 | | | (0.39 | ) | | | (0.83 | ) | | | (0.85 | ) | | | (0.85 | ) | | | (0.85 | ) | | | (0.70 | ) |
| | | | |
Net asset value, end of period | | $ | 14.71 | | | $ | 14.09 | | | $ | 13.17 | | | $ | 15.07 | | | $ | 13.44 | | | $ | 13.89 | |
| | | | |
Market price, end of period | | $ | 13.74 | | | $ | 12.71 | | | $ | 12.34 | | | $ | 15.11 | | | $ | 12.60 | | | $ | 13.57 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total Return Applicable to Common Shareholders3 | | | | | | | | | | | | | | | | | |
Based on net asset value | | | 7.52% | 4 | | | 14.21% | | | | (7.33)% | | | | 19.10% | | | | 3.36% | | | | 16.15% | |
| | | | |
Based on market price | | | 11.33% | 4 | | | 9.95% | | | | (13.40)% | | | | 27.38% | | | | (0.81)% | | | | 26.36% | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios to Average Net Assets Applicable to Common Shareholders | | | | | | | | | | | | | | | | | |
Total expenses | | | 1.42% | 5 | | | 1.50% | | | | 1.53% | | | | 1.65% | | | | 1.34% | 6 | | | 1.11% | 6 |
| | | | |
Total expenses after fees waived | | | 1.42% | 5 | | | 1.50% | | | | 1.53% | | | | 1.65% | | | | 1.33% | 6 | | | 1.10% | 6 |
| | | | |
Total expenses after fees waived and excluding interest expense, fees and amortization of offering costs7 | | | 0.88% | 5 | | | 0.91% | | | | 0.91% | | | | 1.27% | 8 | | | 1.14% | 6 | | | 1.00% | 6 |
| | | | |
Net investment income | | | 5.20% | 5 | | | 5.82% | | | | 5.59% | | | | 5.78% | | | | 6.55% | 6 | | | 6.69% | 6 |
| | | | |
Distributions to AMPS Shareholders | | | — | | | | — | | | | — | | | | — | | | | 0.21% | | | | 0.27% | |
| | | | |
Net investment income to Common Shareholders | | | 5.20% | 5 | | | 5.82% | | | | 5.59% | | | | 5.78% | | | | 6.34% | | | | 6.42% | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Supplemental Data | | | | | | | | | | | | | | | | | |
Net assets applicable to Common Shareholders, end of period (000) | | $ | 582,311 | | | $ | 557,606 | | | $ | 521,263 | | | $ | 594,807 | | | $ | 530,058 | | | $ | 547,812 | |
| | | | |
AMPS outstanding at $25,000 liquidation preference, end of period (000) | | | — | | | | — | | | | — | | | | — | | | | — | | | $ | 247,700 | |
| | | | |
Asset coverage per AMPS at $25,000 liquidation preference, end of period | | | — | | | | — | | | | — | | | | — | | | | — | | | $ | 80,293 | |
| | | | |
VRDP Shares outstanding at $100,000 liquidation value, end of period (000) | | $ | 247,700 | | | $ | 247,700 | | | $ | 247,700 | | | $ | 247,700 | | | $ | 247,700 | | | | — | |
| | | | |
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period | | $ | 335,087 | | | $ | 325,114 | | | $ | 310,441 | | | $ | 340,132 | | | $ | 313,992 | | | | — | |
| | | | |
Borrowings outstanding, end of period (000) | | $ | 93,113 | | | $ | 89,734 | | | $ | 108,615 | | | $ | 117,960 | | | $ | 78,615 | | | $ | 78,615 | |
| | | | |
Asset coverage, end of period per $1,000 of borrowings | | $ | 7,254 | | | $ | 7,214 | | | $ | 5,799 | | | $ | 6,042 | | | $ | 7,742 | | | $ | 7,968 | |
| | | | |
Portfolio turnover rate | | | 8% | | | | 18% | | | | 10% | | | | 17% | | | | 18% | | | | 7% | |
| | | | |
| | 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. |
| | 6 | | Does not reflect the effect of dividends to AMPS Shareholders. |
| | 7 | | Interest expense, fees and amortization of offering costs related to TOBs and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively. |
| | 8 | | For the year ended July 31, 2012, the total expense ratio after fees waived and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.92%. |
| | | | | | |
| See Notes to Financial Statements. | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 51 |
| | |
| Financial Highlights | | BlackRock MuniYield Quality Fund III, Inc. (MYI) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended January 31, 2015
(Unaudited) | | | Year Ended July 31, | |
| | | | 2014 | | | 2013 | | | 2012 | | | 2011 | | | 2010 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Per Share Operating Performance | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | $ | 14.84 | | | $ | 13.64 | | | $ | 15.32 | | | $ | 13.19 | | | $ | 13.67 | | | $ | 12.27 | |
| | | | |
Net investment income1 | | | 0.44 | | | | 0.89 | | | | 0.89 | | | | 0.87 | | | | 0.89 | | | | 0.89 | |
Net realized and unrealized gain (loss) | | | 0.74 | | | | 1.18 | | | | (1.70 | ) | | | 2.13 | | | | (0.48 | ) | | | 1.31 | |
Distributions to AMPS Shareholders from net investment income | | | — | | | | — | | | | — | | | | — | | | | (0.03 | ) | | | (0.03 | ) |
| | | | |
Net increase (decrease) from investment operations | | | 1.18 | | | | 2.07 | | | | (0.81 | ) | | | 3.00 | | | | 0.38 | | | | 2.17 | |
| | | | |
Distributions to Common Shareholders from net investment income2 | | | (0.45 | ) | | | (0.87 | ) | | | (0.87 | ) | | | (0.87 | ) | | | (0.86 | ) | | | (0.77 | ) |
| | | | |
Net asset value, end of period | | $ | 15.57 | | | $ | 14.84 | | | $ | 13.64 | | | $ | 15.32 | | | $ | 13.19 | | | $ | 13.67 | |
| | | | |
Market price, end of period | | $ | 14.76 | | | $ | 13.46 | | | $ | 12.80 | | | $ | 15.81 | | | $ | 12.17 | | | $ | 14.17 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total Return Applicable to Common Shareholders3 | | | | | | | | | | | | | | | | | |
Based on net asset value | | | 8.26% | 4 | | | 16.23% | | | | (5.66)% | | | | 23.45% | | | | 3.22% | | | | 18.19% | |
| | | | |
Based on market price | | | 13.15% | 4 | | | 12.35% | | | | (14.21)% | | | | 38.08% | | | | (8.12)% | | | | 24.03% | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios to Average Net Assets Applicable to Common Shareholders | | | | | | | | | | | | | | | | | |
Total expenses | | | 1.37% | 5 | | | 1.47% | | | | 1.43% | | | | 1.57% | | | | 1.32% | 6 | | | 1.11% | 6 |
| | | | |
Total expenses after fees waived | | | 1.37% | 5 | | | 1.47% | | | | 1.43% | | | | 1.56% | | | | 1.32% | 6 | | | 1.11% | 6 |
| | | | |
Total expenses after fees waived and excluding interest expense, fees and amortization of offering costs7 | | | 0.88% | 5 | | | 0.91% | | | | 0.89% | | | | 1.19% | 8 | | | 1.12% | 6 | | | 0.97% | 6 |
| | | | |
Net investment income | | | 5.73% | 5 | | | 6.35% | | | | 5.83% | | | | 6.04% | | | | 6.85% | 6 | | | 6.73% | 6 |
| | | | |
Distributions to AMPS Shareholders | | | — | | | | — | | | | — | | | | — | | | | 0.22% | | | | 0.26% | |
| | | | |
Net investment income to Common Shareholders | | | 5.73% | 5 | | | 6.35% | | | | 5.83% | | | | 6.04% | | | | 6.63% | | | | 6.47% | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Supplemental Data | | | | | | | | | | | | | | | | | |
Net assets applicable to Common Shareholders, end of period (000) | | $ | 1,056,791 | | | $ | 1,007,291 | | | $ | 925,812 | | | $ | 1,036,022 | | | $ | 890,985 | | | $ | 920,234 | |
| | | | |
AMPS outstanding at $25,000 liquidation preference, end of period (000) | | | — | | | | — | | | | — | | | | — | | | | — | | | $ | 356,450 | |
| | | | |
Asset coverage per AMPS at $25,000 liquidation preference, end of period | | | — | | | | — | | | | — | | | | — | | | | — | | | $ | 89,545 | |
| | | | |
VRDP Shares outstanding at $100,000 liquidation value, end of period (000) | | $ | 356,400 | | | $ | 356,400 | | | $ | 356,400 | | | $ | 356,400 | | | $ | 356,400 | | | | — | |
| | | | |
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period | | $ | 396,518 | | | $ | 382,629 | | | $ | 359,768 | | | $ | 390,691 | | | $ | 349,996 | | | | — | |
| | | | |
Borrowings outstanding, end of period (000) | | $ | 271,906 | | | $ | 262,507 | | | $ | 287,426 | | | $ | 249,148 | | | $ | 216,503 | | | $ | 195,663 | |
| | | | |
Asset coverage, end of period per $1,000 of borrowings | | $ | 4,887 | | | $ | 4,837 | | | $ | 4,221 | | | $ | 5,158 | | | $ | 5,115 | | | $ | 5,703 | |
| | | | |
Portfolio turnover rate | | | 5% | | | | 15% | | | | 9% | | | | 18% | | | | 12% | | | | 13% | |
| | | | |
| | 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. |
| | 6 | | Does not reflect the effect of dividends to AMPS Shareholders. |
| | 7 | | Interest expense, fees and amortization of offering costs related to TOBs and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively. |
| | 8 | | For the year ended July 31, 2012, the total expense ratio after fees waived and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.90%. |
| | | | | | |
| See Notes to Financial Statements. | | | | |
| | | | | | | |
| 52 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
| Notes to Financial Statements (Unaudited) | | |
1. Organization:
The following are registered under the 1940 Act as closed-end management investment companies and referred to herein collectively as the “Funds”:
| | | | | | |
| Fund Name | | Herein Referred To As | | Organized | | Diversification
Classification |
BlackRock MuniHoldings Quality Fund ll, Inc. | | MUE | | Maryland | | Non-diversified |
BlackRock MuniYield California Quality Fund, Inc. | | MCA | | Maryland | | Non-diversified |
BlackRock MuniYield Michigan Quality Fund II, Inc. | | MYM | | Maryland | | Non-diversified |
BlackRock MuniYield New York Quality Fund, Inc. | | MYN | | Maryland | | Non-diversified |
BlackRock MuniYield Quality Fund III, Inc. | | MYI | | Maryland | | Non-diversified |
The Board 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.
2. Significant Accounting Policies:
The Funds’ 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 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. The following is a summary of significant accounting policies followed by the Funds:
Valuation: The Funds’ investments are valued at fair value 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 at market value 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.
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. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at NAV each business day.
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 Value Investments”). When determining the price for Fair Value 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 Value Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.
Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., financial futures contracts), or certain borrowings (e.g., TOBs) that would be “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid securities having a market value at least equal to the amount of the Fund’s 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 Fund 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. Dividend income is recorded on the ex-dividend date. 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 9.
| | | | | | |
| | | | | | | |
| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 53 |
| | | | |
| Notes to Financial Statements (continued) | | |
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. 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.
Other: Expenses directly related to a Fund are charged to that Fund. Other operating expenses shared by several funds are prorated among those funds on the basis of relative net assets or other appropriate methods.
The Funds have an arrangement with the custodians 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 custodians impose fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.
3. Securities and Other Investments:
Zero-Coupon Bonds: The Funds may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.
Forward Commitments and When-Issued Delayed Delivery Securities: The Funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Funds may be required to pay more at settlement than the security is worth. In addition, the Funds are not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Funds’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown in the Schedules of Investments.
Municipal Bonds Transferred to TOB Trusts: The Funds leverage their assets through the use of TOB Trusts. The Funds transfer municipal bonds into a special purpose entity (“TOB Trust”). Other funds managed by the investment advisor may also contribute municipal bonds to a TOB Trust into which a Fund has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates (“TOB Trust Certificates”), which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that contributed the municipal bonds to the TOB Trust. If multiple funds participate in the same TOB Trust, the rights and obligations under the TOB Residual will be shared among the funds ratably in proportion to their participation in the Trust.
The municipal bonds transferred to a TOB Trust typically are high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB transaction includes 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. The Funds, as TOB Residual holders, would be responsible for the payment of the credit enhancement fee and for reimbursement of any payments of principal and interest made by the credit enhancement provider.
The Residuals held by a Fund include the right of a Fund (subject to the non-occurrence of certain termination events enumerated below, and a specified number of days’ prior notice), to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates at par plus accrued interest. Thereafter, that Fund may withdraw a corresponding share of the municipal bonds from the TOB Trust. The TOB Trust may also be collapsed without the consent of a Fund, upon the occurrence of tender option termination events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs may include the bankruptcy or default of the issuer of the municipal bond, a substantial downgrade in credit quality of the issuer of the municipal bond, failure of any scheduled payment of principal or interest on the underlying bonds, and 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 bond. 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. In the case of an MTE, after the payment of fees, the TOB Trust Certificate holders would be paid senior to the Residual holders (i.e., the Funds). In contrast, in the case of a TOTE, after payment of fees, the TOB Trust Certificate holders and Residual holders would be paid equally in proportion to the respective face values of their certificates. During the six months ended January 31, 2015, no TOB Trusts in which the Funds participated were terminated without the consent of the Funds.
The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less transaction expenses, is paid to a Fund. The Funds typically invest the cash received in additional municipal bonds. Each Fund’s transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes; therefore, the municipal bonds deposited into a TOB Trust are presented in the Funds’ Schedules of Investments and the TOB Trust
| | | | | | |
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| 54 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
| Notes to Financial Statements (continued) | | |
Certificates are shown in other liabilities in the Statements of Assets and Liabilities. The carrying amount of each 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.
The Funds may invest in TOB Trusts on either a non-recourse or recourse basis. TOB Trusts are typically supported by a liquidity facility provided by a 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 from the Liquidity Provider of par plus accrued interest on any business day prior to the occurrence of the termination events described above
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 securities held in the TOB Trust and then fund, on a net basis, 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, the Fund will typically enter into a reimbursement agreement with the Liquidity Provider where the Fund is required to repay the Liquidity Provider the amount of any Liquidation Shortfall. As a result, a Fund investing in a recourse TOB Trust 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 the Funds at January 31, 2015, 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 the Funds at January 31, 2015.
Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by the Funds on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB Trust are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. The TOB Trust Certificates have interest rates that generally reset weekly and their holders have the option to tender such certificates to the TOB for redemption at par at each reset date. At January 31, 2015, the aggregate value of the underlying municipal bonds transferred to TOB Trusts, the related liability for TOB Trust Certificates and the range of interest rates on the liability for TOB Trust Certificates were as follows:
| | | | | | | | | | | | |
| | | Underlying
Municipal
Bonds
Transferred to
TOBs | | | Liability for
TOB Trust
Certificates | | | Range of
Interest Rates | |
MUE | | $ | 98,320,100 | | | $ | 50,557,016 | | | | 0.02% - 0.25% | |
MCA | | $ | 307,200,840 | | | $ | 139,157,373 | | | | 0.02% - 0.17% | |
MYM | | $ | 27,993,082 | | | $ | 13,492,998 | | | | 0.02% - 0.17% | |
MYN | | $ | 184,217,575 | | | $ | 93,113,130 | | | | 0.02% - 0.20% | |
MYI | | $ | 520,307,618 | | | $ | 271,906,157 | | | | 0.02% - 0.30% | |
For the six months ended January 31, 2015, the Funds’ average TOB Trust Certificates outstanding and the daily weighted average interest rate, including fees, were as follows:
| | | | | | | | |
| | | Average TOB
Trust
Certificates
Outstanding | | | Daily
Weighted
Average
Interest Rate | |
MUE | | $ | 51,671,341 | | | | 0.63 | % |
MCA | | $ | 128,141,968 | | | | 0.57 | % |
MYM | | $ | 13,492,998 | | | | 0.51 | % |
MYN | | $ | 91,268,439 | | | | 0.62 | % |
MYI | | $ | 264,659,186 | | | | 0.58 | % |
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.
While the Funds’ investment policies and restrictions expressly permit investments in inverse floating rate securities such as Residuals, they generally do not allow the Funds to borrow money for purposes of making investments. The Funds’ management believes that the Funds’ restrictions on borrowings do not apply to secured borrowings. For accounting purposes, the Funds’ transfer of municipal bonds to a TOB Trust are deemed secured borrowings.
4. 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 economically hedge their exposure to certain risks such as interest rate risk. These contracts may be transacted on an exchange.
Financial Futures Contracts: The 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 at 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.
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| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 55 |
| | | | |
| 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 or 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 rates and the underlying assets.
The following is a summary of the Funds’ derivative financial instruments categorized by risk exposure:
| | | | | | | | | | | | | | | | | | | | | | |
| Fair Values of Derivative Financial Instruments as of January 31, 2015 | |
| | | | | Value | |
| | | | | MUE | | | MCA | | | MYM | | | MYN | | | MYI | |
| | | Statements of Assets and Liabilities Location | | Derivative Liabilities | |
Interest rate contracts | | Net unrealized appreciation/ depreciation1 | | $ | (1,698,145 | ) | | $ | (1,333,178 | ) | | $ | (396,792 | ) | | $ | (2,585,444 | ) | | $ | (3,865,069 | ) |
| | 1 | | Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Effect of Derivative Financial Instruments in the Statements of Operations
Six Months Ended January 31, 2015 | |
| | | Net Realized Loss From | | | | | Net Change in Unrealized Appreciation/Depreciation on | |
| | | MUE | | | MCA | | | MYM | | | MYN | | | MYI | | | | | MUE | | | MCA | | | MYM | | | MYN | | | MYI | |
| Interest rate contracts | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial futures contracts | | $ | (499,170 | ) | | $ | (1,225,893 | ) | | $ | (87,597 | ) | | $ | (1,658,302 | ) | | $ | (1,875,114 | ) | | | | $ | (1,788,085 | ) | | $ | (1,417,935 | ) | | $ | (418,206 | ) | | $ | (2,808,859 | ) | | $ | (3,919,740 | ) |
For the six months ended January 31, 2015, the average quarterly balances of outstanding derivative financial instruments were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | MUE | | | MCA | | | MYM | | | MYN | | | MYI | |
| Financial future contracts: | | | | | | | | | | | | | | | | | | | | |
Average notional value of contracts—short | | $ | 51,740,313 | | | $ | 52,394,570 | | | $ | 11,993,047 | | | $ | 78,668,641 | | | $ | 116,512,953 | |
Counterparty Credit Risk: 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) of the clearing broker or clearinghouse. 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.
5. Investment Advisory Agreement and Other Transactions with Affiliates:
The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock, Inc. (“BlackRock”).
Each Fund entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (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 necessary personnel, facilities, equipment and certain other services to the operations of each Fund. For such services, each Fund pays the Manager a monthly fee at an annual rate of each Fund’s average daily net assets at the following annual rates:
| | | | |
MUE | | | 0.55% | |
MCA | | | 0.50% | |
MYM | | | 0.50% | |
MYN | | | 0.50% | |
MYI | | | 0.50% | |
| | | | | | |
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| 56 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
| Notes to Financial Statements (continued) | | |
Average daily net assets are the average daily value of each Fund’s total assets minus its total accrued liabilities.
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. 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. These amounts are included in fees waived by Manager in the Statements of Operations. For the six months ended January 31, 2015, the amounts waived were as follows:
| | | | |
MUE | | $ | 76 | |
MCA | | $ | 444 | |
MYM | | $ | 4,828 | |
MYN | | $ | 1,707 | |
MYI | | $ | 440 | |
The Manager for MUE voluntarily agreed to waive its investment advisory fee on the proceeds of Preferred Shares and TOBs that exceed 35% of total assets minus the sum of its accrued liabilities. This amount is included in fees waived by Manager in the Statements of Operations. For the six months ended January 31, 2015, the waiver was $10,575.
Certain officers and/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.
6. Purchases and Sales:
For the six months ended January 31, 2015, purchases and sales of investments, excluding short-term securities, were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | MUE | | | MCA | | | MYM | | | MYN | | | MYI | |
Purchases | | $ | 24,255,207 | | | $ | 162,866,806 | | | $ | 33,635,024 | | | $ | 75,539,074 | | | $ | 91,247,975 | |
Sales | | $ | 26,067,239 | | | $ | 143,854,222 | | | $ | 30,361,709 | | | $ | 77,710,228 | | | $ | 84,406,228 | |
7. 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 its taxable income to its 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 the Funds’ U.S. federal tax returns remains open for each of the four years ended July 31, 2014. 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 the Funds’ facts and circumstances and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of July 31, 2014, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:
| | | | | | | | | | | | | | | | | | | | |
| Expires July 31, | | MUE | | | MCA | | | MYM | | | MYN | | | MYI | |
2015 | | | — | | | | — | | | | — | | | | — | | | $ | 5,979,955 | |
2016 | | | — | | | | — | | | $ | 714,516 | | | $ | 2,330,288 | | | | 25,066,903 | |
2017 | | $ | 3,385,582 | | | | — | | | | 253,932 | | | | 2,295,738 | | | | 21,251,301 | |
2018 | | | 6,013,130 | | | $ | 4,809,571 | | | | — | | | | 3,370,191 | | | | 26,460,028 | |
2019 | | | — | | | | — | | | | — | | | | 1,287,746 | | | | — | |
No expiration date1 | | | 9,116,400 | | | | 537,912 | | | | 5,349,882 | | | | 19,438,022 | | | | 6,704,293 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 18,515,112 | | | $ | 5,347,483 | | | $ | 6,318,330 | | | $ | 28,721,985 | | | $ | 85,462,480 | |
| | | | | | | | | | | | | | | | | | | | |
| | 1 | | Must be utilized prior to losses subject to expiration. |
As of January 31, 2015, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | MUE | | | MCA | | | MYM | | | MYN | | | MYI | |
Tax cost | | $ | 412,671,382 | | | $ | 657,201,310 | | | $ | 245,914,818 | | | $ | 743,783,687 | | | $ | 1,224,389,615 | |
| | | | |
Gross unrealized appreciation | | $ | 60,056,174 | | | $ | 79,934,546 | | | $ | 25,399,960 | | | $ | 80,708,795 | | | $ | 184,175,371 | |
Gross unrealized depreciation | | | (735,686 | ) | | | — | | | | — | | | | (1,374,510 | ) | | | (4,691,955 | ) |
| | | | |
Net unrealized appreciation | | $ | 59,320,488 | | | $ | 79,934,546 | | | $ | 25,399,960 | | | $ | 79,334,285 | | | $ | 179,483,416 | |
| | | | |
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| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 57 |
| | | | |
| Notes to Financial Statements (continued) | | |
8. Principal Risks:
MCA, MYM and MYN invest a substantial amount of their assets in issuers located in a single state or limited number of states. Investment percentages in specific states or U.S. territories are presented in the Schedules of Investments.
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.
In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Funds may be exposed to counterparty credit risk, or the risk that an entity with which the Funds have unsettled or open transactions may fail to or be unable to perform on its commitments. The Funds manage counterparty credit risk by entering into transactions only with counterparties that they believe 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 generally approximated by their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
The Funds invest a significant portion of its assets in fixed-income securities and/or uses derivatives tied to the fixed-income markets. See the Schedules of Investments for these securities and derivatives. 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.
As of January 31, 2015, MUE and MYN invested a significant portion of their assets in securities in the county/city/special district/school district and transportation sectors. MCA invested a significant portion of its assets in securities in the county/city/special district/school district and utilities sectors. MYM invested a significant portion of its assets in securities in the health sector. MYI invested a significant portion of its assets in securities in the transportation sector. 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.
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.
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 prohibit banking entities from engaging in proprietary trading of certain instruments and limit such entities’ investments in, and relationships with, “covered funds” as defined in the Volcker Rule. The Volcker Rule precludes banking entities and their affiliates from sponsoring existing TOB Trusts as such Trusts have been structured to date. In response to these restrictions, market participants have developed a new structure for TOB Trusts designed to ensure that no banking entity is sponsoring the TOB Trust for purposes of the Volcker Rule. In such a structure, certain responsibilities that previously belonged to the sponsor bank will be performed by the Funds. The Funds may utilize the service providers in meeting these responsibilities. This structure 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 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 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 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.
TOB 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.
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| 58 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
| Notes to Financial Statements (continued) | | |
9. Capital Share Transactions:
Each Fund is authorized to issue 200 million shares, all of which were initially classified as Common Shares. The par value for each Fund’s Common Shares is $0.10. The par value for each Fund’s Preferred Shares outstanding is $0.10. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without approval of Common Shareholders.
Common Shares
For the six months ended January 31, 2015 and the year ended July 31, 2014, shares issued and outstanding remained constant for the Funds.
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 the Fund. The 1940 Act prohibits the declaration of any dividend on the Fund’s Common Shares or the repurchase of the Fund’s Common Shares if the 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, the 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 the Fund fails to declare and pay dividends on the Preferred Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares’ governing instruments or comply with the basic maintenance amount requirement of the 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 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
MCA, MYM, MYN and MYI (collectively, the “VRDP Funds”), have issued Series W-7 VRDP Shares, $100,000 liquidation value per share, in a privately negotiated offering. 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”) and include a liquidity feature, pursuant to a liquidity agreement, that allows the holders of VRDP Shares to have their shares purchased by the liquidity provider in the event of a failed remarketing. The VRDP Funds are required to redeem the VRDP Shares owned by the liquidity provider after six months of continuous, unsuccessful remarketing. Upon the occurrence of the first unsuccessful remarketing, the VRDP Funds are required to segregate liquid assets to fund the redemption. The VRDP Shares are subject to certain restrictions on transfer.
As of the six months ended January 31, 2015, the VRDP Shares outstanding were as follows:
| | | | | | | | | | | | | | | | |
| | | Issue Date | | | Shares Issued | | | Aggregate Principal | | | Maturity Date | |
MCA | | | 4/21/11 | | | | 1,665 | | | $ | 166,500,000 | | | | 5/01/41 | |
MYM | | | 5/19/11 | | | | 873 | | | $ | 87,300,000 | | | | 6/01/41 | |
MYN | | | 4/21/11 | | | | 2,477 | | | $ | 247,700,000 | | | | 5/01/41 | |
MYI | | | 5/19/11 | | | | 3,564 | | | $ | 356,400,000 | | | | 6/01/41 | |
Each VRDP Fund entered into a fee agreement with the liquidity provider may require 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 agreement between each VRDP Fund and the liquidity provider is scheduled to expire on July 9, 2015 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. The VRDP Funds are required to redeem any VRDP Shares purchased by the liquidity provider six months after the purchase date. Immediately after the purchase of any VRDP Shares by the liquidity provider, the VRDP Funds are required to begin to segregate liquid assets with the VRDP Funds’ 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.
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 VRDP Funds’ custodian to fund the redemption. In addition, each VRDP Fund is 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 be redeemed, in whole or in part, at any time at the option of the VRDP Funds. The redemption price per VRDP Share is equal to the liquidation value per share plus any outstanding unpaid 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
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| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 59 |
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| Notes to Financial Statements (continued) | | |
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. At the date of issuance, the VRDP Shares were assigned a long-term rating of Aaa from Moody’s and AAA from Fitch. Subsequent to the issuance of the VRDP Shares, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of January 31, 2015, the VRDP Shares were assigned a long-term rating of Aa2 for MCA, MYM and MYN and Aa1 for MYI from Moody’s under its new ratings methodology. The VRDP Shares continue to be assigned a long-term rating of AAA from Fitch.
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. The liquidity provider may be terminated prior to the scheduled termination date if the liquidity provider fails to maintain short-term debt ratings in one of the two highest rating categories. The short-term ratings on the VRDP Shares were withdrawn by Moody’s, Fitch and/or S&P at the commencement of the special rate period, as described below.
For financial reporting purposes, 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.
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.
For the six months ended January 31, 2015, the annualized dividend rates for the VRDP Shares were as follows:
| | | | | | | | | | | | | | | | |
| | | MCA | | | MYM | | | MYN | | | MYI | |
Rate | | | 0.99% | | | | 0.99% | | | | 0.99% | | | | 0.99% | |
On June 21, 2012, the VRDP Funds commenced a three-year term ending June 24, 2015 (“special rate period”) with respect to their 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. The liquidity and fee agreements remain in effect for the duration of the special rate period and the VRDP Shares are still subject to mandatory redemption by the VRDP Funds on maturity date. The VRDP Shares will not be remarketed or subject to optional or mandatory tender events during such time. During the special rate period, the VRDP Funds are required to maintain the same asset coverage, basic maintenance amount and leverage requirements for the VRDP Shares. The VRDP Funds will not pay any liquidity and remarketing fees during the special rate period and instead will pay dividends monthly based on the sum of Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Index and a percentage per annum based on the long-term ratings assigned to the VRDP Shares. The short-term ratings were withdrawn by Moody’s, Fitch and/or S&P. Short-term ratings may be re-assigned upon the termination of the special rate period when the VRDP Shares revert back to remarketable securities.
If the VRDP Funds 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. After June 24, 2015, the holder of the VRDP Shares and the VRDP Funds 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.
As of the six months ended January 31, 2015, VRDP Shares issued and outstanding remained constant.
VMTP Shares
MUE has issued Series W-7 VMTP Shares, $100,000 liquidation value per share, in a privately negotiated offering and sale of VMTP Shares exempt from registration under the Securities Act.
As of the six months ended January 31, 2015, the VMTP Shares outstanding were as follows:
| | | | | | | | | | | | | | | | |
| | | Issue Date | | | Shares Issued | | | Aggregate Principal | | | Term Date | |
MUE | | | 12/16/11 | | | | 1,310 | | | $ | 131,000,000 | | | | 12/31/15 | |
MUE is required to redeem its VMTP Shares on the term date, unless earlier redeemed or repurchased or unless extended. There is no assurance that the term of the MUE’s VMTP Shares will be extended further or that VMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the VMTP Shares. Six months prior to term date, MUE is required to begin to segregate liquid assets with MUE’s custodian to fund the redemption. In addition, MUE is required to redeem certain of its outstanding VMTP Shares if it fails to maintain certain asset coverage, basic maintenance amount or leverage requirements.
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| 60 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
| Notes to Financial Statements (concluded) | | |
Subject to certain conditions, MUE’s VMTP Shares may be redeemed, in whole or in part, at any time at the option of MUE. The redemption price per VMTP Share is equal to the liquidation value per share plus any outstanding unpaid dividends and applicable redemption premium. If MUE redeems the VMTP Shares on a date that is one year or more prior to the term date and the VMTP Shares are rated above A1/A+ by Moody’s and Fitch, respectively, then such redemption is subject to a prescribed redemption premium (up to 3% of the liquidation preference) payable to the holder of the VMTP Shares based on the time remaining to the term date, subject to certain exceptions for redemptions that are required to maintain minimum asset coverage requirements. The VMTP Shares are subject to certain restrictions on transfer, and MUE may also be required to register the VMTP Shares for sale under the Securities Act under certain circumstances. In addition, amendments to the VMTP governing document generally require the consent of the holders of VMTP Shares.
Dividends on the VMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread to the SIFMA Municipal Swap Index. The fixed spread is determined based on the long-term preferred share rating assigned to the VMTP Shares by Moody’s and Fitch. At the date of issuance, the VMTP Shares were assigned long-term ratings of Aaa from Moody’s and AAA from Fitch. Subsequent to the issuance of the VMTP Shares, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of January 31, 2015, the VMTP Shares were assigned a long-term rating of Aa1 from Moody’s under its new rating methodology. The VMTP Shares continue to be assigned a long-term rating of AAA from Fitch. The dividend rate on the VMTP Shares is subject to a step-up spread if MUE fails to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and maintaining certain asset coverage and leverage requirements.
For the six months ended January 31, 2015, the average annualized dividend rate of the VMTP Shares was 1.04%.
For financial reporting purposes, the VMTP Shares are considered debt of the issuer; therefore the liquidation value, which approximates fair value, of the VMTP 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 VMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the VMTP Shares are generally classified as tax-exempt income for tax-reporting purposes.
For the six months ended January 31, 2015, VMTP Shares issued and outstanding remained constant.
Offering Costs: The Funds incurred costs in connection with the issuance of VRDP Shares and/or VMTP Shares. For VRDP Shares, these costs 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. For VMTP Shares, these costs were recorded as a deferred charge and will be amortized over the 3-year life of the VMTP Shares. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.
10. 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:
Each Fund paid a net investment income dividend on March 2, 2015 to Common Shareholders of record on February 13, 2015:
| | | | |
| | | Common
Dividend
Per Share | |
MUE | | $ | 0.0705 | |
MCA | | $ | 0.0730 | |
MYM | | $ | 0.0660 | |
MYN | | $ | 0.0645 | |
MYI | | $ | 0.0740 | |
Additionally, the Funds declared a net investment income dividend on March 2, 2015 payable to Common Shareholders of record on March 13, 2015 for the same amounts noted above, except the amount for MUE was $0.0680.
The dividends declared on VMTP or VRDP Shares for the period February 1, 2015 to February 28, 2015 were as follows:
| | | | | | | | | | | | |
| | | Preferred
Shares | | | Series | | | Dividend
Declared | |
MUE | | | VMTP Shares | | | | W-7 | | | $ | 102,503 | |
MCA | | | VRDP Shares | | | | W-7 | | | $ | 123,894 | |
MYM | | | VRDP Shares | | | | W-7 | | | $ | 64,961 | |
MYN | | | VRDP Shares | | | | W-7 | | | $ | 184,316 | |
MYI | | | VRDP Shares | | | | W-7 | | | $ | 265,201 | |
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| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 61 |
Richard E. Cavanagh, Chairman of the Board and Director
Karen P. Robards, Vice Chairperson 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
Kathleen F. Feldstein, Director
James T. Flynn, 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
Robert W. Crothers, Vice President
Neal Andrews, Chief Financial Officer
Jay Fife, Treasurer
Charles Park, Chief Compliance Officer
Janey Ahn, Secretary
Effective September 5, 2014, Brendan Kyne resigned as a Vice President of the Funds.
Effective December 31, 2014, Paul L. Audet and Henry Gabbay resigned as Directors of the Funds. Effective December 31, 2014, Barbara G. Novick and John M. Perlowski were appointed to serve as Directors of the Funds.
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Investment Advisor BlackRock Advisors, LLC Wilmington, DE 19809 | | Transfer Agent Common Shares Computershare Trust Company, N.A. Canton, MA 02021 | | VRDP Remarketing Agent Citigroup Global Markets Inc. New York, NY 10179 | | Independent Registered Public Accounting Firm Deloitte & Touche LLP Boston, MA 02116 | | Address of the Funds 100 Bellevue Parkway Wilmington, DE 19809 |
| | | | |
Custodian State Street Bank and
Trust Company Boston, MA 02110 | | VRDP Tender and Paying Agent and VMTP Redemption and Paying Agent The Bank of New York Mellon New York, NY 10289 | | VRDP Liquidity Prorider Citibank, N.A. New York, NY 10179 | | Legal Counsel Skadden, Arps, Slate, Meagher & Flom LLP New York, NY 10036 | | |
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| | | | Accounting Agent State Street Bank and Trust Company Boston, MA 02110 | | | | |
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| 62 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
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.
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.
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.
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| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 63 |
| | | | |
| Additional Information (continued) | | |
| | |
| General Information (concluded) |
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.
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.
From time-to-time, each Fund may seek to raise additional equity capital through an equity shelf program (a “Shelf Offering”). In a Shelf Offering, a Fund may, subject to market conditions, raise additional equity capital by issuing new Common Shares from time to time in varying amounts at a net price at or above the Fund’s net asset value (“NAV”) per Common Share (calculated within 48 hours of pricing). While any such Shelf Offering may allow a Fund to pursue additional investment opportunities without the need to sell existing portfolio investments, it could also entail risks — including that the issuance of additional Common Shares may limit the extent to which the Common Shares are able to trade at a premium to NAV in the secondary market. The Funds have not filed a registration statement with respect to any Shelf Offerings. This report is not an offer to sell Fund Common Shares and is not a solicitation of an offer to buy Fund Common Shares. If a Fund files a registration statement with respect to any Shelf Offering, the prospectus contained therein will contain more complete information about the Fund and should be read carefully before investing.
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| 64 | | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | |
| | |
| Additional Information (concluded) | | |
| | |
| 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.
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| | SEMI-ANNUAL REPORT | | JANUARY 31, 2015 | | 65 |
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 short-term interest rates may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.
| | |
| MHMYINS5-1/15-SAR | |  |
| 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 |
(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 New York Quality Fund, Inc.
| | | | |
| By: | | /s/ John M. Perlowski | | |
| | John M. Perlowski | | |
| | Chief Executive Officer (principal executive officer) of |
| | BlackRock MuniYield New York Quality Fund, Inc. |
Date: April 2, 2015
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 New York Quality Fund, Inc. |
Date: April 2, 2015 | | |
| By: | | /s/ Neal J. Andrews | | |
| | Neal J. Andrews | | |
| | Chief Financial Officer (principal financial officer) of |
| | BlackRock MuniYield New York Quality Fund, Inc. |
Date: April 2, 2015
3
