UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-07083
Name of Fund: BlackRock MuniYield Arizona Fund, Inc. (MZA)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock
Series 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: 07/31/2011
Date of reporting period: 01/31/2011
Item 1 – Report to Stockholders
January 31, 2011
Semi-Annual Report (Unaudited)
BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)
BlackRock MuniYield Arizona Fund, Inc. (MZA)
BlackRock MuniYield California Fund, Inc. (MYC)
BlackRock MuniYield Investment Fund (MYF)
BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
Not FDIC Insured • No Bank Guarantee • May Lose Value
Table of Contents
Page | |
Dear Shareholder | 3 |
Semi-Annual Report: | |
Municipal Market Overview | 4 |
Fund Summaries | 5 |
The Benefits and Risks of Leveraging | 10 |
Derivative Financial Instruments | 10 |
Financial Statements: | |
Schedules of Investments | 11 |
Statements of Assets and Liabilities | 27 |
Statements of Operations | 28 |
Statements of Changes in Net Assets | 29 |
Statements of Cash Flows | 32 |
Financial Highlights | 33 |
Notes to Financial Statements | 38 |
Officers and Directors | 44 |
Additional Information | 45 |
2 SEMI-ANNUAL REPORT JANUARY 31, 2011
Dear Shareholder
Economic data fluctuated widely throughout 2010, but as the year drew to a close, it became clear that cyclical stimulus had beaten out structural prob-
lems as economic data releases generally became more positive and financial markets showed signs of continuing improvement. The sovereign debt crises
and emerging market inflation that troubled the global economy in 2010 remain a challenge to global growth, but overall levels of uncertainty are gradually
declining as the United States and the world economy are progressing from a stimulus-driven recovery into a consumption-driven expansion.
In the United States, the corporate sector has been an important area of strength and consumer spending has shown improvement, although weakness in
the housing and labor markets continues to burden the economy. It is important to note that we are in the midst of the first global economic recovery that
is being led by emerging economies, and the United States has only just begun its transition to a self-sustaining expansion, suggesting that economic
improvements still have a way to go.
Global equity markets experienced uneven growth and high volatility over the course of 2010, but ended the year strong. Stocks continued their advance
through most of January until the political unrest in Egypt and widespread discord across the Middle East caused a sharp, but temporary decline at the end
of the period. US stocks outpaced most international markets over the 12-month period. Small cap stocks outperformed large caps as investors moved into
higher-risk assets.
Fixed income markets saw yields trend lower over most of 2010, until the fourth quarter brought an abrupt reversal in sentiment and risk tolerance that
drove yields sharply upward (pushing prices downward) through year end and into the New Year. However, on a 12-month basis, yields were lower overall
and fixed income markets performed well. Conversely, the tax-exempt municipal market was dealt an additional blow as it became evident that the Build
America Bond program would expire at the end of 2010. In addition, negative headlines regarding fiscal challenges faced by state and local governments
damaged investor confidence and sparked additional volatility in the municipal market. These conditions began to moderate as the period came to a close
and the market has shown signs of improvement in supply-and-demand technicals.
Cash investments, as represented by the 3-month Treasury bill, returned only a fraction over 0% for the 12-month period as short-term interest rates
remained low. Yields on money market securities remain near all-time lows.
Total Returns as of January 31, 2011 | 6-month | 12-month |
US large cap equities (S&P 500 Index) | 17.93% | 22.19% |
US small cap equities (Russell 2000 Index) | 20.75 | 31.36 |
International equities (MSCI Europe, Australasia, Far East Index) | 16.10 | 15.38 |
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index) | 0.06 | 0.13 |
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index) | (2.25) | 5.25 |
US investment grade bonds (Barclays Capital US Aggregate Bond Index) | 0.20 | 5.06 |
Tax-exempt municipal bonds (Barclays Capital Municipal Bond Index) | (2.84) | 1.10 |
US high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index) | 8.65 | 15.96 |
Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index. |
While no one can peer into a crystal ball and eliminate the uncertainties presented by the economic landscape and financial markets, BlackRock can offer
investors the next best thing: partnership with the world’s largest asset management firm and a unique global perspective that allows us to identify trends
early and capitalize on market opportunities. For additional market perspective and investment insight, visit www.blackrock.com/shareholdermagazine,
where you’ll find the most recent issue of our award-winning Shareholder® magazine, as well as its quarterly companion newsletter, Shareholder
Perspectives. As always, we thank you for entrusting BlackRock with your investments, and we look forward to your continued partnership in the
months and years ahead.
THIS PAGE NOT PART OF YOUR FUND REPORT 3
Municipal Market Overview
As of January 31, 2011
The municipal market began the period with a strong tone as rates fell (and prices rose) along with those of US Treasuries. However, the cliché of the
“perfect storm” of negative events all conspired in the final months of 2010, leading to the worst quarterly performance for the municipal market since
the tightening cycle of 1994. Treasury yields lost their support as concerns about the US deficit raised questions over the willingness of foreign investors
to continue to purchase Treasury securities, at least at the previous historically low yields. Municipal valuations also suffered a quick and severe setback
as it became evident that the Build America Bond (“BAB”) program would expire at year-end. The program had opened the taxable market to municipal
issuers, which had successfully alleviated supply pressure in the traditional tax-exempt marketplace, bringing down yields in that space.
The financial media has been replete with interviews, articles and presentations advertising the stress experienced in municipal finance, resulting in a
loss of confidence among retail investors who buy individual bonds or mutual funds. From the middle of November through year-end, funds specializing in
tax-exempt bonds witnessed weekly outflows averaging over $2.5 billion. Long-term and high-yield funds saw the greatest redemptions, followed by state-
specific funds to a lesser but still significant degree. Demand usually is strong at the beginning of the new year against a backdrop of low new-issue supply,
but the mutual fund outflows continued in January, putting additional upward pressure on municipal yields. Political uncertainty surrounding the midterm
elections and the approach taken by the new Congress on issues such as income tax rates and alternative minimum tax (and the previously mentioned
BAB non-extension) exacerbated the situation. All these conditions, combined with the seasonal illiquidity surrounding year-end holidays and dealers
closing their fiscal books, sapped willing market participation from the trading community.
As demand for municipal securities from traditional retail investors was declining and trading desk liquidity was being curtailed, there was no comparable
reduction in supply. As it became evident that the BAB program would be retired, issuers rushed deals to market both in the taxable municipal space and,
to a lesser degree, in the traditional tax-exempt space. This imbalance in the supply/demand technicals provided the classic market action, leading to wider
quality spreads and higher bond yields. The municipal curve steepened as the issuance was concentrated in longer (greater than 20-year) maturities. Curve
steepening that began in October accelerated in November, spurred on by Treasury weakness, heavy supply and record outflows. As measured by Thomson
Municipal Market Data, AAA-rated municipals rose nearly 82 basis points (“bps”) for maturities 25 years and longer from July 31, 2010, to January 31,
2011. The spread between two-year and 30-year maturities widened from 360 bps to 406 bps over the period.
The fundamental picture for municipalities will be subject to scrutiny for months to come, as the challenges to state and local budgets are real and need
to be addressed with significant cuts to expenses and tax revenue increases. The debates around austerity measures needed to succeed in balancing these
budgets are not over whether action needs to be taken, but over degree, approach and political will to accomplish these needs. The attention shone upon
municipal finance has the potential to improve this market for the future if these efforts result in greater means toward disclosure and accuracy (and timeli-
ness) of reporting. Early tests to judge progress will come soon as California, Illinois and Puerto Rico need to take austerity measures and access financing
in the municipal market to address relatively immediate fiscal imbalances. BlackRock favors a more constructive outlook for the municipal market heading
into 2011 as the typical, and this year particularly atypical, weakness passes.
4 SEMI-ANNUAL REPORT JANUARY 31, 2011
Fund Summary as of January 31, 2011 BlackRock Muni New York Intermediate Duration Fund, Inc.
Fund Overview
BlackRock Muni New York Intermediate Duration Fund, Inc.’s (MNE) (the “Fund”) investment objective is to provide Common Shareholders with
high current income exempt from federal income tax and New York State and New York City personal income taxes. The Fund seeks to achieve
its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income tax (except that the interest
may be subject to the federal alternative minimum tax) and New York State and New York City personal income taxes. Under normal market
conditions, the Fund invests at least 75% of its assets in municipal obligations that are investment grade quality at the time of investment.
Under normal market conditions, the Fund invests at least 80% of its assets in municipal obligations with a duration of three to ten years.
The Fund may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Fund’s investment objective will be achieved.
Performance
For the six months ended January 31, 2011, the Fund returned (3.95)% based on market price and (3.72)% based on net asset value (“NAV”).
For the same period, the closed-end Lipper Intermediate Municipal Debt Funds category posted an average return of (4.76)% based on market
price and (3.09)% based on NAV. All returns reflect reinvestment of dividends. The Fund's discount to NAV, which widened 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. The Fund’s performance was hindered by a below-average yield relative to its Lipper category. In addition, the Fund’s long duration
bias relative to intermediate fund parameters detracted significantly in the rising interest rate environment of the period. A generally negative
municipal market further hindered Fund performance, as did the Fund’s low exposure to the pre-refunded sector that led the municipal market.
Similarly, the Fund’s exposure to the transportation sector detracted, as it was one of the poorest performers. On the positive side, the Fund’s
holdings in corporate-backed municipals aided performance as non-traditional investors identified the sector’s attractive investment opportunities
and subsequently drove up demand. Finally, the Fund benefited from exposure to the housing sector, which was one of the market’s better
performers, and lack of exposure to the tobacco sector, which was the worst performer.
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 New York Stock Exchange (“NYSE”) | MNE |
Initial Offering Date | August 1, 2003 |
Yield on Closing Market Price as of January 31, 2011 ($12.66)1 | 5.78% |
Tax Equivalent Yield2 | 8.89% |
Current Monthly Distribution per Common Share3 | $0.061 |
Current Annualized Distribution per Common Share3 | $0.732 |
Leverage as of January 31, 20114 | 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 federal tax rate of 35%.
3 The distribution rate is not constant and is subject to change.
4 Represents Auction Market Preferred Shares (“Preferred Shares”) and tender option bond trusts (“TOBs”) as a percentage of total managed assets, which is the total assets of the
Fund, including any assets attributable to Preferred 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 10.
The table below summarizes the changes in the Fund’s market price and NAV per share:
1/31/11 | 7/31/10 | Change | High | Low | |
Market Price | $12.66 | $13.54 | (6.50)% | $14.26 | $12.05 |
Net Asset Value | $13.59 | $14.50 | (6.28)% | $15.03 | $13.35 |
The following charts show the sector and credit quality allocations of the Fund’s long-term investments:
Sector Allocations | ||
1/31/11 | 7/31/10 | |
Health | 15% | 14% |
County/City/Special District/School District | 15 | 16 |
Transportation | 15 | 14 |
State | 13 | 13 |
Housing | 12 | 13 |
Corporate | 11 | 9 |
Education | 10 | 10 |
Utilities | 8 | 10 |
Tobacco | 1 | 1 |
Credit Quality Allocations5 | ||
1/31/11 | 7/31/10 | |
AAA/Aaa | 7% | 13% |
AA/Aa | 37 | 29 |
A | 26 | 31 |
BBB/Baa | 18 | 13 |
BB/Ba | 5 | 5 |
CCC/Caa | 2 | 3 |
Not Rated | 5 | 66 |
5 Using the higher of Standard & Poor’s (“S&P”) or Moody’s Investors Service
(“Moody’s”) ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of July 31, 2010, the market value of these securities
was $1,690,946 representing 2%, respectively, of the Fund’s long-term investments.
SEMI-ANNUAL REPORT JANUARY 31, 2011 5
Fund Summary as of January 31, 2011 BlackRock MuniYield Arizona Fund, Inc.
Fund Overview
BlackRock MuniYield Arizona Fund, Inc.’s (MZA) (the “Fund”) investment objective is to provide shareholders with as high a level of current
income exempt from federal and Arizona income taxes as is consistent with its investment policies and prudent investment management.
The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal
income taxes (except that the interest may be subject to the federal alternative minimum tax) and Arizona income taxes. Under normal
market conditions, the Fund expects to invest at least 75% of its assets in municipal obligations that are investment grade quality at the
time of investment. The Fund may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Fund’s investment objective will be achieved.
Performance
For the six months ended January 31, 2011, the Fund returned (8.45)% based on market price and (6.37)% based on NAV. For the same
period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of (8.40)% based on market price and
(5.41)% based on NAV. All returns reflect reinvestment of dividends. The Fund's discount to NAV, which widened 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. The Fund’s exposure to the housing sector contributed to performance as this sector outperformed the general municipal
market. Additionally, the Fund’s exposure to shorter-duration bonds and premium coupon bonds (6% or higher) benefited performance
in the rising interest rate environment of the period. Conversely, the Fund’s long duration stance detracted from performance, again due
to the rising rate environment. In addition, the Fund’s exposure to longer maturity bonds detracted as the long end of the yield curve
steepened 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 Amex | MZA |
Initial Offering Date | October 29, 1993 |
Yield on Closing Market Price as of January 31, 2011 ($12.13)1 | 6.88% |
Tax Equivalent Yield2 | 10.58% |
Current Monthly Distribution per Common Share3 | $0.0695 |
Current Annualized Distribution per Common Share3 | $0.8340 |
Leverage as of January 31, 20114 | 41% |
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 federal tax rate of 35%.
3 The distribution rate is not constant and is subject to change.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred 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 10.
The table below summarizes the changes in the Fund’s market price and NAV per share:
1/31/11 | 7/31/10 | Change | High | Low | |
Market Price | $12.13 | $13.67 | (11.27)% | $14.25 | $11.50 |
Net Asset Value | $12.46 | $13.73 | (9.25)% | $14.26 | $12.05 |
The following charts show the sector and credit quality allocations of the Fund’s long-term investments:
Sector Allocations | ||
1/31/11 | 7/31/10 | |
County/City/Special District/School District | 33% | 37% |
Utilities | 21 | 21 |
State | 14 | 14 |
Health | 10 | 8 |
Education | 10 | 9 |
Transportation | 7 | 5 |
Housing | 5 | 6 |
Credit Quality Allocations5 | ||
1/31/11 | 7/31/10 | |
AAA/Aaa | 18% | 27% |
AA/Aa | 39 | 31 |
A | 30 | 31 |
BBB/Baa | 11 | 8 |
BB/Ba | 1 | 1 |
B | 1 | 1 |
Not Rated | — | 1 |
5 Using the higher of S&P’s or Moody’s ratings. |
6 SEMI-ANNUAL REPORT JANUARY 31, 2011
Fund Summary as of January 31, 2011 BlackRock MuniYield California Fund, Inc.
Fund Overview
BlackRock MuniYield California Fund, Inc.’s (MYC) (the “Fund”) investment objective is to provide shareholders with as high a level of current income
exempt from federal and California income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to
achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest
may be subject to the federal alternative minimum tax) and California income taxes. Under normal market conditions, the Fund invests primarily in long-
term municipal obligations that are investment grade quality at the time of investment. The Fund may invest 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.
Performance
For the six months ended January 31, 2011, the Fund returned (8.75)% based on market price and (8.00)% based on NAV. For the same period, the
closed-end Lipper California Municipal Debt Funds category posted an average return of (9.24)% based on market price and (8.09)% based on NAV. All
returns reflect reinvestment of dividends. The Fund's discount to NAV, which widened 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. The Fund maintained a low average cash
reserve level, which benefited total return by delivering a competitive level of income accrual relative to the Lipper peer group. Increased exposure to tender
option bonds to take advantage of the historically steep municipal yield curve also benefited the income accrual. As a result, the Fund was able to increase
dividend payments twice over the period. In addition, the Fund’s holdings in corporate-backed municipals aided performance as non-traditional investors
identified the sector’s attractive investment opportunities and subsequently drove up demand. Conversely, a generally negative municipal market environ-
ment hindered Fund performance. Some widening of credit spreads, especially among California school districts and healthcare credits, detracted from
Fund performance, as did a relatively long duration posture given the rising interest rate environment of 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 | MYC |
Initial Offering Date | February 28, 1992 |
Yield on Closing Market Price as of January 31, 2011 ($12.75)1 | 7.44% |
Tax Equivalent Yield2 | 11.45% |
Current Monthly Distribution per Common Share3 | $0.079 |
Current Annualized Distribution per Common Share3 | $0.948 |
Leverage as of January 31, 20114 | 44% |
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 federal tax rate of 35%.
3 The distribution rate is not constant and is subject to change.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred 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 10.
The table below summarizes the changes in the Fund’s market price and NAV per share:
1/31/11 | 7/31/10 | Change | High | Low | |
Market Price | $12.75 | $14.44 | (11.70)% | $15.00 | $12.27 |
Net Asset Value | $13.14 | $14.76 | (10.98)% | $15.41 | $12.65 |
The following charts show the sector and credit quality allocations of the Fund’s long-term investments:
Sector Allocations | ||
1/31/11 | 7/31/10 | |
County/City/Special District/School District | 42% | 35% |
Utilities | 25 | 26 |
Education | 10 | 14 |
Health | 9 | 8 |
Corporate | 5 | 7 |
State | 5 | 6 |
Transportation | 3 | 3 |
Housing | 1 | 1 |
Credit Quality Allocations5 | ||
1/31/11 | 7/31/10 | |
AAA/Aaa | 7% | 27% |
AA/Aa | 67 | 46 |
A | 20 | 24 |
BBB/Baa | 5 | 2 |
Not Rated | 1 | 16 |
5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of July 31, 2010, the market value of these securities
were $2,416,739, representing 1% of the Fund’s long-term investments.
SEMI-ANNUAL REPORT JANUARY 31, 2011 7
Fund Summary as of January 31, 2011 BlackRock MuniYield Investment Fund
Fund Overview
BlackRock MuniYield Investment Fund’s (MYF) (the “Fund”) investment objective is to provide shareholders with as high a level of current
income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Fund
seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income
taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund
primarily invests in municipal bonds that are investment grade quality at the time of investment. The Fund may invest 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.
Performance
For the six months ended January 31, 2011, the Fund returned (9.15)% based on market price and (8.44)% based on NAV. For the same
period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (8.46)% based on market
price and (6.45)% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a premium to NAV to a discount
by period end, which accounts for the difference between performance based on market price and performance based on NAV. The
following discussion relates to performance based on NAV. The Fund’s exposure to longer-duration and longer-maturity bonds detracted
from performance as the long end of the yield curve steepened during the period. Additionally, the Fund’s holdings in the health care and
transportation sectors hindered performance as both sectors underperformed the general municipal market. Conversely, the Fund’s
holdings in corporate-backed municipals aided performance as non-traditional investors identified the sector’s attractive investment
opportunities and subsequently drove up demand. In addition, the Fund benefited from exposure to the housing sector, which was
one of the market’s better performers. Finally, the Fund’s exposure to shorter-duration bonds and premium coupon bonds (6% or
higher) benefited performance in the rising interest rate environment of 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 | MYF |
Initial Offering Date | February 28, 1992 |
Yield on Closing Market Price as of January 31, 2011 ($12.62)1 | 7.37% |
Tax Equivalent Yield2 | 11.34% |
Current Monthly Distribution per Common Share3 | $0.0775 |
Current Annualized Distribution per Common Share3 | $0.9300 |
Leverage as of January 31, 20114 | 42% |
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 federal tax rate of 35%.
3 The distribution rate is not constant and is subject to change.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred 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 10.
The table below summarizes the changes in the Fund’s market price and NAV per share:
1/31/11 | 7/31/10 | Change | High | Low | |
Market Price | $12.62 | $14.36 | (12.12)% | $15.10 | $11.73 |
Net Asset Value | $12.63 | $14.26 | (11.43)% | $14.78 | $12.16 |
The following charts show the sector and credit quality allocations of the Fund’s long-term investments:
Sector Allocations | ||
1/31/11 | 7/31/10 | |
County/City/Special District/School District | 24% | 22% |
Health | 19 | 20 |
Transportation | 19 | 21 |
Utilities | 16 | 15 |
State | 7 | 7 |
Education | 6 | 7 |
Housing | 4 | 4 |
Corporate | 4 | 4 |
Tobacco | 1 | — |
Credit Quality Allocations5 | ||
1/31/11 | 7/31/10 | |
AAA/Aaa | 8% | 16% |
AA/Aa | 61 | 52 |
A | 23 | 26 |
BBB/Baa | 6 | 4 |
Not Rated6 | 2 | 2 |
5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of January 31, 2011 and July 31, 2010, the market
value of these securities were $583,256, representing 1% and $635,244, represent-
ing 1%, respectively, of the Fund’s long-term investments.
8 SEMI-ANNUAL REPORT JANUARY 31, 2011
Fund Summary as of January 31, 2011 BlackRock MuniYield New Jersey Fund, Inc.
Fund Overview
BlackRock MuniYield New Jersey Fund, Inc.’s (MYJ) (the “Fund”) investment objective is to provide shareholders with as high a level of
current income exempt from federal income taxes and New Jersey personal income tax as is consistent with its investment policies and
prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal
obligations exempt from federal income taxes (except that the interest may subject to the federal alternative minimum tax) and New Jersey
personal income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment
grade quality at the time of investment. The Fund may invest 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.
Performance
For the six months ended January 31, 2011, the Fund returned (9.81)% based on market price and (6.05)% based on NAV. For the same
period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of (9.78)% based on market price and
(6.43)% based on NAV. All returns reflect reinvestment of dividends. The Fund's discount to NAV, which widened 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. The Fund’s exposure to longer-duration and longer-maturity bonds detracted from performance as the long
end of the yield curve steepened during the period. Conversely, the Fund’s holdings in corporate-backed municipals aided performance
as non-traditional investors identified the sector’s attractive investment opportunities and subsequently drove up demand. In addition, the
Fund benefited from exposure to the housing sector, which was one of the market’s better performers. Finally, the Fund’s exposure to
shorter-duration bonds and premium coupon bonds (6% or higher) benefited performance in the rising interest rate environment of 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 | MYJ |
Initial Offering Date | May 1, 1992 |
Yield on Closing Market Price as of January 31, 2011 ($13.30)1 | 6.54% |
Tax Equivalent Yield2 | 10.06% |
Current Monthly Distribution per Common Share3 | $0.0725 |
Current Annualized Distribution per Common Share3 | $0.8700 |
Leverage as of January 31, 20114 | 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 federal tax rate of 35%.
3 The distribution rate is not constant and is subject to change.
4 Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred 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 10.
The table below summarizes the changes in the Fund’s market price and NAV per share:
1/31/11 | 7/31/10 | Change | High | Low | |
Market Price | $13.30 | $15.19 | (12.44)% | $15.97 | $12.59 |
Net Asset Value | $13.90 | $15.24 | (8.79)% | $15.75 | $13.49 |
The following charts show the sector and credit quality allocations of the Fund’s long-term investments:
Sector Allocations | ||
1/31/11 | 7/31/10 | |
State | 27% | 26% |
County/City/Special District/School District | 17 | 15 |
Transportation | 14 | 14 |
Health | 12 | 12 |
Housing | 12 | 12 |
Education | 11 | 12 |
Utilities | 4 | 4 |
Corporate | 3 | 3 |
Tobacco | — | 2 |
Credit Quality Allocations5 | ||
1/31/11 | 7/31/10 | |
AAA/Aaa | 7% | 23% |
AA/Aa | 52 | 32 |
A | 28 | 31 |
BBB/Baa | 10 | 9 |
BB/Ba | — | 2 |
Not Rated6 | 3 | 3 |
5 Using the higher of S&P’s or Moody’s ratings.
6 The investment advisor has deemed certain of these non-rated securities to be of
investment grade quality. As of January 31, 2011 and July 31, 2010, the market
value of these securities were $3,322,685, representing 1% and $8,311,633, repre-
senting 3%, respectively, of the Fund's long-term investments.
SEMI-ANNUAL REPORT JANUARY 31, 2011 9
The Benefits and Risks of Leveraging
The Funds may utilize leverage to seek to enhance the yield and NAV of
their common shares of beneficial interest (“Common Shares”). However,
these objectives cannot be achieved in all interest rate environments.
To leverage, the Funds issue preferred shares (“Preferred Shares”), which
pay dividends at prevailing short-term interest rates, and invest the pro-
ceeds in long-term municipal bonds. In general, the concept of leveraging is
based on the premise that the financing cost of assets to be obtained from
leverage, which will be based on short-term interest rates, will normally be
lower than the income earned by each Fund on its longer-term portfolio
investments. To the extent that the total assets of each Fund (including the
assets obtained from leverage) are invested in higher-yielding portfolio
investments, each Fund’s holders of Common Shares (“Common
Shareholders”) will benefit from the incremental net income.
To illustrate these concepts, assume a Fund’s Common Shares capitalization
is $100 million and it issues Preferred Shares for an additional $50 million,
creating a total value of $150 million available for investment in long-term
municipal bonds. If prevailing short-term interest rates are 3% and long-
term interest rates are 6%, the yield curve has a strongly positive slope.
In this case, the Fund pays dividends on the $50 million of Preferred
Shares based on the lower short-term interest rates. At the same time,
the securities purchased by the Fund with assets received from the
Preferred Shares issuance earn income based on long-term interest rates.
In this case, the dividends paid to holders of Preferred Shares (“Preferred
Shareholders”) are significantly lower than the income earned on the
Fund’s long-term investments, and therefore the Common Shareholders
are the beneficiaries of the incremental net income.
If short-term interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental net income pickup on the
Common Shares will be reduced or eliminated completely. Furthermore, if
prevailing short-term interest rates rise above long-term interest rates of 6%,
the yield curve has a negative slope. In this case, the Fund pays interest
expense on the higher short-term interest rates whereas the Fund’s total
portfolio earns income based on lower long-term interest rates.
Furthermore, the value of the Funds’ portfolio investments generally varies
inversely with the direction of long-term interest rates, although other factors
can influence the value of portfolio investments. In contrast, the redemption
value of the Funds’ Preferred Shares does not fluctuate in relation to inter-
est rates. As a result, changes in interest rates can influence the Funds’
NAV positively or negatively in addition to the impact on Fund performance
from leverage from Preferred Shares discussed above.
The Funds may also leverage their assets through the use of TOBs, as
described in Note 1 of the Notes to Financial Statements. TOB investments
generally will provide the Funds with economic benefits in periods of
declining short-term interest rates, but expose the Funds to risks during
periods of rising short-term interest rates similar to those associated with
Preferred Shares issued by the Funds, as described above. Additionally,
fluctuations in the market value of municipal bonds deposited into the
TOB may adversely affect each Fund’s NAV per share.
The use of leverage may enhance opportunities for increased income to the
Funds and Common Shareholders, but as described above, it also creates
risks as short or long-term interest rates fluctuate. Leverage also will gener-
ally cause greater changes in the Funds’ NAVs, market prices and dividend
rates than comparable portfolios without leverage. If the income derived
from securities purchased with assets received from leverage exceeds the
cost of leverage, the Funds’ net income will be greater than if leverage had
not been used. Conversely, if the income from the securities purchased is
not sufficient to cover the cost of leverage, each Fund’s net income will be
less than if leverage had not been used, and therefore the amount available
for distribution to Common Shareholders will be reduced. Each Fund may
be required to sell portfolio securities at inopportune times or at distressed
values in order to comply with regulatory requirements applicable to the use
of leverage or as required by the terms of leverage instruments, which may
cause a Fund to incur losses. The use of leverage may limit each Fund’s
ability to invest in certain types of securities or use certain types of hedging
strategies, such as in the case of certain restrictions imposed by ratings
agencies that rate Preferred Shares issued by the Funds. Each Fund will
incur expenses in connection with the use of leverage, all of which are borne
by Common Shareholders and may reduce income to the Common Shares.
Under the Investment Company Act of 1940, the Funds are permitted to
issue Preferred Shares in an amount of up to 50% of their total managed
assets at the time of issuance. Under normal circumstances, each Fund
anticipates that the total economic leverage from Preferred Shares and/or
TOBs will not exceed 50% of its total managed assets at the time such
leverage is incurred. As of January 31, 2011, the Funds had economic
leverage from Preferred Shares and/or TOBs as a percentage of their total
managed assets as follows:
Percent of | |
Leverage | |
MNE | 35% |
MZA | 41% |
MYC | 44% |
MYF | 42% |
MYJ | 36% |
Derivative Financial Instruments
The Funds may invest in various derivative instruments, including financial
futures contracts, as specified in Note 2 of the Notes to Financial
Statements, which may constitute forms of economic leverage. Such instru-
ments are used to obtain exposure to a market without owning or taking
physical custody of securities or to hedge market and/or interest rate risks.
Such derivative instruments involve risks, including the imperfect correlation
between the value of a derivative instrument and the underlying asset,
possible default of the counterparty to the transaction or illiquidity of the
derivative instrument. The Funds’ ability to successfully use a derivative
instrument depends on the investment advisor’s ability to accurately
predict pertinent market movements, which cannot be assured. The use
of derivative instruments may result in losses greater than if they had not
been used, may require a Fund to sell or purchase portfolio investments at
inopportune times or for distressed values, may limit the amount of appre-
ciation a Fund can realize on an investment, may result in lower dividends
paid to shareholders or may cause a Fund to hold an investment that it
might otherwise sell. The Funds’ investments in these instruments are
discussed in detail in the Notes to Financial Statements.
10 SEMI-ANNUAL REPORT JANUARY 31, 2011
Schedule of Investments January 31, 2011 (Unaudited) BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
New York — 119.3% | |||
Corporate — 14.4% | |||
Essex County Industrial Development Agency, | |||
Refunding RB, International Paper, Series A, AMT, | |||
5.20%, 12/01/23 | $ 1,000 | $ 942,510 | |
Jefferson County Industrial Development Agency New York, | |||
Refunding RB, Solid Waste, Series A, AMT, | |||
5.20%, 12/01/20 | 500 | 477,715 | |
New York City Industrial Development Agency, RB, AMT: | |||
1990 American Airlines Inc. Project, 5.40%, 7/01/20 | 1,500 | 1,214,385 | |
British Airways Plc Project, 7.63%, 12/01/32 | 1,000 | 1,001,980 | |
Continental Airlines Inc. Project, Mandatory Put Bonds, | |||
8.38%, 11/01/16 | 1,000 | 1,019,920 | |
New York City Industrial Development Agency, Refunding | |||
RB, Terminal One Group Association Project, AMT (a): | |||
5.50%, 1/01/18 | 1,000 | 1,048,570 | |
5.50%, 1/01/24 | 1,000 | 983,630 | |
New York State Energy Research & Development Authority, | |||
Refunding RB: | |||
Brooklyn Union Gas/Keyspan, Series A, AMT (FGIC), | |||
4.70%, 2/01/24 | 500 | 481,530 | |
Rochester Gas & Electric Corp., Series C (NPFGC), | |||
5.00%, 8/01/32 (a) | 1,000 | 1,032,580 | |
8,202,820 | |||
County/City/Special District/School District — 20.9% | |||
Amherst Development Corp., RB, University at Buffalo | |||
Foundation Faculty-Student Housing Corp., Series A | |||
(AGM), 4.00%, 10/01/24 | 1,000 | 895,820 | |
City of New York New York, GO, Refunding, Series A, | |||
5.00%, 8/01/24 | 500 | 514,365 | |
City of New York New York, GO: | |||
Series J (NPFGC), 5.25%, 5/15/18 | 1,500 | 1,630,095 | |
Sub-Series F-1 (Syncora), 5.00%, 9/01/22 | 1,000 | 1,042,880 | |
Sub-Series I-1, 5.50%, 4/01/21 | 1,500 | 1,652,940 | |
Sub-Series I-1, 5.13%, 4/01/25 | 750 | 772,800 | |
New York City Industrial Development Agency, RB, Queens | |||
Baseball Stadium, PILOT (AMBAC), 5.00%, 1/01/31 | 1,500 | 1,269,840 | |
New York City Industrial Development Agency, Refunding | |||
RB, Terminal One Group Association Project, AMT, | |||
5.50%, 1/01/21 (a) | 250 | 253,098 | |
New York City Transitional Finance Authority, RB: | |||
Fiscal 2007, Series S-1 (NPFGC), 5.00%, 7/15/24 | 500 | 512,240 | |
Fiscal 2009, Series S-3, 5.00%, 1/15/23 | 575 | 597,896 | |
New York Liberty Development Corp., Refunding RB, | |||
Second Priority, Bank of America Tower at One Bryant | |||
Park Project, 5.63%, 7/15/47 | 1,000 | 936,330 | |
New York State Dormitory Authority, RB, Interagency | |||
Council Pooled, Series A-1, 4.25%, 7/01/25 | 1,000 | 916,810 | |
United Nations Development Corp. New York, Refunding | |||
RB, Series A, 4.25%, 7/01/24 | 1,000 | 934,730 | |
11,929,844 |
Par | |||
Municipal Bonds | (000) | Value | |
New York (continued) | |||
Education — 14.5% | |||
Dutchess County Industrial Development Agency New York, | |||
Refunding RB, Bard College Civic Facility, Series A-1, | |||
5.00%, 8/01/22 | $ 750 | $ 754,627 | |
Nassau County Industrial Development Agency, | |||
Refunding RB, New York Institute of Technology Project, | |||
Series A, 5.00%, 3/01/21 | 1,000 | 1,004,740 | |
New York City Industrial Development Agency, RB, | |||
Lycee Francais de New York Project, Series A (ACA), | |||
5.50%, 6/01/15 | 500 | 521,860 | |
New York City Industrial Development Agency, | |||
Refunding RB, Polytechnic University Project (ACA), | |||
4.70%, 11/01/22�� | 1,000 | 915,120 | |
New York State Dormitory Authority, RB: | |||
Convent of the Sacred Heart (AGM), | |||
4.00%, 11/01/18 (b) | 880 | 865,559 | |
Convent of the Sacred Heart (AGM), | |||
5.00%, 11/01/21 (b) | 120 | 120,708 | |
Master BOCES Program Lease (AGM), | |||
3.50%, 8/15/25 | 250 | 214,373 | |
Mount Sinai School of Medicine, 5.50%, 7/01/25 | 1,000 | 1,010,680 | |
Mount Sinai School of Medicine, Series A (NPFGC), | |||
5.15%, 7/01/24 | 250 | 244,800 | |
The New School, 5.25%, 7/01/24 | 750 | 752,730 | |
Schenectady County Industrial Development Agency, | |||
Refunding RB, Union College Project, 5.00%, 7/01/26 | 1,000 | 1,014,640 | |
Suffolk County Industrial Development Agency, | |||
Refunding RB, New York Institute of Technology Project, | |||
5.25%, 3/01/21 | 600 | 605,166 | |
Trust for Cultural Resources, RB, Museum of American | |||
Folk Art (ACA), 6.13%, 7/01/30 | 500 | 274,995 | |
8,299,998 | |||
Health — 22.9% | |||
Dutchess County Industrial Development Agency, RB: | |||
St. Francis Hospital, Series B, 7.25%, 3/01/19 | 355 | 346,001 | |
Vassar Brothers Medical Center (AGC), | |||
5.00%, 4/01/21 | 215 | 213,431 | |
Dutchess County Local Development Corp., Refunding | |||
RB, Health Quest System Inc., Series A (AGC), | |||
5.25%, 7/01/25 | 1,000 | 962,290 | |
Erie County Industrial Development Agency, RB, Episcopal | |||
Church Home, Series A, 5.88%, 2/01/18 | 905 | 904,747 | |
Genesee County Industrial Development Agency New York, | |||
Refunding RB, United Memorial Medical Center Project, | |||
4.75%, 12/01/14 | 280 | 270,654 | |
Monroe County Industrial Development Corp., RB, Unity | |||
Hospital of Rochester Project (FHA), 4.20%, 8/15/25 | 500 | 509,965 | |
New York City Industrial Development Agency, RB, | |||
PSCH Inc. Project, 6.20%, 7/01/20 | 1,415 | 1,297,060 |
Portfolio Abbreviations | |||||
To simplify the listings of portfolio holdings in the | BOCES | Board of Cooperative Educational Services | IDA | Industrial Development Authority | |
Schedules of Investments, the names and descriptions of | CAB | Capital Appreciation Bonds | IDRB | Industrial Development Revenue Bonds | |
many of the securities have been abbreviated according | CIFG | CDC IXIS Financial Guaranty | ISD | Independent School District | |
to the following list: | COP | Certificates of Participation | LRB | Lease Revenue Bonds | |
EDA | Economic Development Authority | MRB | Mortgage Revenue Bonds | ||
ACA | ACA Financial Guaranty Corp. | ERB | Education Revenue Bonds | NPFGC | National Public Finance Guarantee Corp. |
AGC | Assured Guaranty Corp. | FGIC | Financial Guaranty Insurance Co. | PILOT | Payment in Lieu of Taxes |
AGM | Assured Guaranty Municipal Corp. | FHA | Federal Housing Administration | RB | Revenue Bonds |
AMBAC | American Municipal Bond Assurance Corp. | GO | General Obligation Bonds | S/F | Single-Family |
AMT | Alternative Minimum Tax (subject to) | HFA | Housing Finance Agency | SONYMA | State of New York Mortgage Agency |
HRB | Housing Revenue Bonds | ||||
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT JANUARY 31, 2011 11
Schedule of Investments (continued) BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
New York (continued) | |||
Health (concluded) | |||
New York State Dormitory Authority, RB: | |||
NYU Hospital Center, Series A, 5.00%, 7/01/22 | $ 1,000 | $ 974,500 | |
NYU Hospital Center, Series B, 5.25%, 7/01/24 | 455 | 446,396 | |
New York State Association for Retarded Children, Inc., | |||
Series A, 5.30%, 7/01/23 | 450 | 459,162 | |
North Shore-Long Island Jewish Health System, | |||
Series A, 5.25%, 5/01/25 | 780 | 767,871 | |
New York State Dormitory Authority, Refunding RB: | |||
Lenox Hill Hospital Obligation Group, 5.75%, 7/01/17 | 500 | 504,430 | |
Mount Sinai Hospital, Series A, 4.25%, 7/01/23 | 250 | 232,582 | |
North Shore-Long Island Jewish Health System, | |||
Series E, 5.00%, 5/01/22 | 650 | 651,384 | |
Saratoga County Industrial Development Agency New York, | |||
Refunding RB, The Saratoga Hospital Project, Series A | |||
(Radian), 4.38%, 12/01/13 | 365 | 378,180 | |
Suffolk County Industrial Development Agency | |||
New York, Refunding RB, Jeffersons Ferry Project, | |||
4.63%, 11/01/16 | 800 | 810,424 | |
Tompkins County Industrial Development Agency New York, | |||
Refunding RB, Continuing Care Retirement Community, | |||
Kendal at Ithaca Project, | |||
Series A-2: | |||
5.75%, 7/01/18 | 250 | 250,140 | |
6.00%, 7/01/24 | 1,000 | 999,880 | |
Westchester County Industrial Development Agency | |||
New York, MRB, Kendal on Hudson Project, Series A, | |||
6.38%, 1/01/24 | 1,000 | 939,840 | |
Westchester County Industrial Development Agency | |||
New York, RB, Special Needs Facilities Pooled Program, | |||
Series D-1, 6.80%, 7/0/19 | 515 | 496,099 | |
Yonkers Industrial Development Agency New York, RB, | |||
Sacred Heart Associations Project, Series A, AMT | |||
(SONYMA), 4.80%, 10/01/26 | 750 | 674,857 | |
13,089,893 | |||
Housing — 13.7% | |||
New York City Housing Development Corp., RB, | |||
Series H-2-A, AMT, 5.00%, 11/01/30 | 780 | 708,833 | |
New York Mortgage Agency, Refunding MRB, 44th Series, | |||
AMT, 4.00%, 10/01/21 | 500 | 472,765 | |
New York Mortgage Agency, Refunding RB, AMT: | |||
Homeowner Mortgage, Series 130, 4.75%, 10/01/30 | 2,500 | 2,287,425 | |
Series 133, 4.95%, 10/01/21 | 395 | 397,247 | |
Series 143, 4.85%, 10/01/27 | 500 | 460,995 | |
New York State Urban Development Corp., RB, Subordinate | |||
Lien, Corporate Purpose, Series A, 5.13%, 7/01/19 | 2,000 | 2,101,440 | |
Yonkers Economic Development Corp., Refunding RB, | |||
Riverview II (Freddie Mac), 4.50%, 5/01/25 | 1,500 | 1,416,795 | |
7,845,500 | |||
State — 11.4% | |||
New York State Dormitory Authority, ERB, Series F, | |||
5.00%, 3/15/30 | 1,290 | 1,286,775 | |
New York State Dormitory Authority, LRB, Municipal | |||
Health Facilities, Sub-Series 2-4, 5.00%, 1/15/27 | 600 | 585,174 | |
New York State Dormitory Authority, Refunding RB, | |||
Department of Health, Series A (CIFG), 5.00%, 7/01/25 | 1,500 | 1,517,700 | |
New York State Thruway Authority, Refunding RB, | |||
Series A-1, 5.00%, 4/01/22 | 1,000 | 1,056,750 | |
New York State Urban Development Corp., RB, State | |||
Personal Income Tax, State Facilities, Series A-1 | |||
(NPFGC), 5.00%, 3/15/24 | 485 | 500,064 | |
New York State Urban Development Corp., Refunding RB, | |||
Service Contract, Series B, 5.00%, 1/01/21 | 1,500 | 1,586,520 | |
6,532,983 |
Par | ||
Municipal Bonds | (000) | Value |
New York (concluded) | ||
Tobacco — 1.8% | ||
Tobacco Settlement Financing Corp. New York, RB, | ||
Asset-Backed, Series B-1C, 5.50%, 6/01/22 | $ 1,000 | $ 1,051,630 |
Transportation — 12.9% | ||
Metropolitan Transportation Authority, RB (NPFGC): | ||
Series A, 5.00%, 11/15/24 | 2,000 | 2,026,220 |
Series B, 5.25%, 11/15/19 | 860 | 932,378 |
Metropolitan Transportation Authority, Refunding RB: | ||
Series A (NPFGC), 5.00%, 11/15/25 | 2,000 | 1,983,340 |
Series B, 5.25%, 11/15/25 | 750 | 774,457 |
Port Authority of New York & New Jersey, RB, | ||
JFK International Air Terminal, 5.00%, 12/01/20 | 1,000 | 966,310 |
Port Authority of New York & New Jersey, Refunding RB, | ||
AMT, Consolidated: | ||
152nd Series, 5.00%, 11/01/23 | 500 | 492,185 |
155th Series, 4.75%, 12/01/30 | 205 | 185,642 |
7,360,532 | ||
Utilities — 6.8% | ||
Long Island Power Authority, Refunding RB: | ||
General, Series D (NPFGC), 5.00%, 9/01/25 | 3,000 | 3,002,760 |
Series A, 5.50%, 4/01/24 | 875 | 909,029 |
3,911,789 | ||
Total Municipal Bonds in New York | 68,224,989 | |
Guam — 2.6% | ||
County/City/Special District/School District — 0.6% | ||
Territory of Guam, RB, Section 30, Series A, | ||
5.38%, 12/01/24 | 325 | 316,534 |
State — 0.3% | ||
Territory of Guam, GO, Series A, 6.00%, 11/15/19 | 185 | 188,393 |
Utilities — 1.7% | ||
Guam Government Waterworks Authority, Refunding RB, | ||
Water, 6.00%, 7/01/25 | 1,000 | 992,800 |
Total Municipal Bonds in Guam | 1,497,727 | |
Puerto Rico — 21.1% | ||
Education — 0.8% | ||
Puerto Rico Industrial Tourist Educational Medical | ||
& Environmental Control Facilities Financing Authority, | ||
RB, University Plaza Project, Series A (NPFGC), | ||
5.00%, 7/01/33 | 500 | 433,255 |
Housing — 3.6% | ||
Puerto Rico Housing Finance Authority, Refunding RB, | ||
Subordinate, Capital Fund Modernization, | ||
5.13%, 12/01/27 | 2,070 | 2,057,166 |
State — 5.5% | ||
Commonwealth of Puerto Rico, GO, Public Improvement, | ||
Series A, 5.25%, 7/01/16 (c) | 615 | 723,677 |
Commonwealth of Puerto Rico, GO, Refunding, Public | ||
Improvement, Series A (NPFGC), 5.50%, 7/01/21 | 1,000 | 1,005,860 |
Puerto Rico Municipal Finance Agency, GO, Series A, | ||
5.25%, 8/01/25 | 1,000 | 941,890 |
Puerto Rico Public Buildings Authority, Refunding RB, | ||
Government Facilities, Series M-3 (NPFGC), | ||
6.00%, 7/01/28 | 500 | 502,045 |
3,173,472 | ||
Transportation — 9.6% | ||
Puerto Rico Highway & Transportation Authority, RB: | ||
Series Y (AGM), 6.25%, 7/01/21 | 3,000 | 3,227,520 |
Subordinate (FGIC), 5.75%, 7/01/21 | 2,000 | 2,012,180 |
See Notes to Financial Statements.
12 SEMI-ANNUAL REPORT JANUARY 31, 2011
Schedule of Investments (concluded) BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Puerto Rico (concluded) | ||
Transportation (concluded) | ||
Puerto Rico Highway & Transportation Authority, | ||
Refunding RB, Series AA-1 (AGM), 4.95%, 7/01/26 | $ 250 | $ 242,385 |
5,482,085 | ||
Utilities — 1.6% | ||
Puerto Rico Electric Power Authority, RB, Series CCC, | ||
4.25%, 7/01/23 | 1,000 | 907,450 |
Total Municipal Bonds in Puerto Rico | 12,053,428 | |
U.S. Virgin Islands — 3.3% | ||
Corporate — 1.6% | ||
United States Virgin Islands, Refunding RB, Senior | ||
Secured, Hovensa Coker Project, AMT, 6.50%, 7/01/21 | 500 | 496,350 |
Virgin Islands Public Finance Authority, RB, Senior | ||
Secured, Hovensa Refinery, AMT, 4.70%, 7/01/22 | 500 | 422,120 |
918,470 | ||
State — 1.7% | ||
Virgin Islands Public Finance Authority, RB, Senior Lien, | ||
Matching Fund Loan Note, Series A, 5.25%, 10/01/24 | 1,000 | 968,380 |
Total Municipal Bonds in the U.S. Virgin Islands | 1,886,850 | |
Total Municipal Bonds — 146.3% | 83,662,994 | |
Municipal Bonds Transferred to | ||
Tender Option Bond Trusts (d) | ||
New York — 4.0% | ||
County/City/Special District/School District — 1.4% | ||
City of New York New York, GO, Sub-Series B-1, | ||
5.25%, 9/01/22 | 750 | 799,162 |
Utilities — 2.6% | ||
New York City Municipal Water Finance Authority, | ||
Refunding RB, Series A, 4.75%, 6/15/30 | 1,500 | 1,455,720 |
Total Municipal Bonds Transferred to | ||
Tender Option Bond Trusts — 4.0% | 2,254,882 | |
Total Long-Term Investments | ||
(Cost — $87,213,729) — 150.3% | 85,917,876 | |
Short-Term Securities | Shares | |
BIF New York Municipal Money Fund 0.00% (e)(f) | 746,617 | 746,617 |
Total Short-Term Securities | ||
(Cost — $746,617) — 1.3% | 746,617 | |
Total Investments (Cost — $87,960,346*) — 151.6% | 86,664,493 | |
Other Assets Less Liabilities — 2.2% | 1,266,090 | |
Liability for Trust Certificates, Including Interest | ||
Expense and Fees Payable — (2.0)% | (1,125,749) | |
Preferred Shares, at Redemption Value — (51.8)% | (29,626,219) | |
Net Assets Applicable to Common Shares — 100.0% | $ 57,178,615 |
* The cost and unrealized appreciation (depreciation) of investments as of
January 31, 2011, as computed for federal income tax purposes, were as follows:
Aggregate cost | $ 86,684,926 |
Gross unrealized appreciation | $ 1,398,213 |
Gross unrealized depreciation | (2,543,646) |
Net unrealized depreciation | $ (1,145,433) |
(a) Variable rate security. Rate shown is as of report date.
(b) When-issued security. Unsettled when-issued transactions were as follows:
Unrealized | ||
Counterparty | Value | Depreciation |
Wells Fargo Bank | $ 986,267 | $(1,409) |
(c) US 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) Securities represent bonds transferred to a TOB in exchange for which the Fund
acquired residual interest certificates. These securities serve as collateral in a
financing transaction. See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs.
(e) Investments in companies considered to be an affiliate of the Fund during the
period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
as amended, were as follows:
Shares Held | Shares Held | |||
at July 31, | Net | at January 31, | ||
Affiliate | 2010 | Activity | 2011 | Income |
BIF New York | ||||
Municipal | ||||
Money Fund | 1,976,046 | (1,229,429) | 746,617 | $ 42 |
(f) Represents the current yield as of report date.
• 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 Fund management.
This definition may not apply for purposes of this report, which may combine such
sector sub-classifications for reporting ease.
• Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
• Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
• Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
• Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of January 31, 2011 in deter-
mining the fair valuation of the Fund’s investments:
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
Assets: | ||||
Investments in | ||||
Securities: | ||||
Long-Term | ||||
Investments1 | — | $ 85,917,876 | — | $ 85,917,876 |
Short-Term | ||||
Securities | $ 746,617 | — | — | 746,617 |
Total | $ 746,617 | $85,917,876 | — | $ 86,664,493 |
1 See above Schedule of Investments for values in each sector. |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT JANUARY 31, 2011 13
Schedule of Investments January 31, 2011 (Unaudited) BlackRock MuniYield Arizona Fund, Inc. (MZA)
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Arizona — 136.3% | ||
County/City/Special District/School District — 53.4% | ||
City of Glendale Arizona, RB (NPFGC), 5.00%, 7/01/25 $ | 2,305 | $ 2,326,944 |
City of Tucson Arizona, COP: | ||
(AGC), 5.00%, 7/01/29 | 1,000 | 959,280 |
Series A (NPFGC), 5.00%, 7/01/20 | 1,500 | 1,542,180 |
County of Pinal Arizona, COP: | ||
5.00%, 12/01/26 | 1,250 | 1,176,837 |
5.00%, 12/01/29 | 1,250 | 1,119,075 |
Downtown Phoenix Hotel Corp., RB, Senior Series A | ||
(FGIC), 5.00%, 7/01/36 | 245 | 183,716 |
Gila County Unified School District No. 10-Payson | ||
Arizona, GO, School Improvement Project of 2006, | ||
Series A (AMBAC), 5.25%, 7/01/27 (a) | 500 | 499,430 |
Gilbert Public Facilities Municipal Property Corp. Arizona, | ||
RB, 5.50%, 7/01/27 | 2,000 | 2,052,720 |
Gladden Farms Community Facilities District, GO, | ||
5.50%, 7/15/31 | 750 | 609,060 |
Greater Arizona Development Authority, RB, Santa Cruz | ||
County Jail, Series 2, 5.25%, 8/01/31 | 1,000 | 975,490 |
Maricopa County Community College District Arizona, GO, | ||
Series C, 3.00%, 7/01/22 | 1,000 | 914,220 |
Maricopa County Pollution Control Corp., Refunding RB, | ||
Southern California Edison Co., Series A, | ||
5.00%, 6/01/35 | 2,100 | 1,975,995 |
Maricopa County Public Finance Corp., RB, Series A | ||
(AMBAC), 5.00%, 7/01/24 | 2,500 | 2,536,600 |
Maricopa County Unified School District No. 11-Peoria | ||
Arizona, GO, School Improvement, 2nd Series (NPFGC), | ||
5.00%, 7/01/25 | 430 | 439,890 |
Maricopa County Unified School District No. 89-Dysart | ||
Arizona, GO, School Improvement Project of 2006, | ||
Series C, 6.00%, 7/01/28 | 1,000 | 1,056,210 |
Mohave County Unified School District No. 20 Kingman, | ||
GO, School Improvement Project of 2006, Series C | ||
(AGC), 5.00%, 7/01/26 | 1,000 | 1,007,470 |
Phoenix Civic Improvement Corp., RB, Subordinate, | ||
Civic Plaza Expansion Project, Series A (NPFGC), | ||
5.00%, 7/01/35 | 3,325 | 3,111,402 |
Queen Creek Improvement District No. 1, Special | ||
Assessment Bonds, 5.00%, 1/01/32 | 1,000 | 888,220 |
Scottsdale Municipal Property Corp. Arizona, | ||
RB, Water & Sewer Development Project, Series A, | ||
5.00%, 7/01/24 | 1,500 | 1,568,445 |
State of Arizona, RB, Series A (AGM), 5.00%, 7/01/29 | 2,000 | 1,893,880 |
Vistancia Community Facilities District Arizona, GO: | ||
6.75%, 7/15/22 | 1,275 | 1,308,545 |
5.75%, 7/15/24 | 750 | 766,793 |
Yuma County Library District, GO (Syncora), | ||
5.00%, 7/01/26 | 1,465 | 1,457,162 |
30,369,564 | ||
Education — 16.6% | ||
Arizona State University, RB, Series 2008-C: | ||
6.00%, 7/01/25 | 970 | 1,052,576 |
6.00%, 7/01/26 | 745 | 801,165 |
6.00%, 7/01/27 | 425 | 454,576 |
6.00%, 7/01/28 | 400 | 426,556 |
Glendale IDA, Refunding RB, Midwestern University, | ||
5.00%, 5/15/35 | 1,000 | 861,480 |
Maricopa County IDA Arizona, RB, Arizona Charter | ||
Schools Project, Series A, 6.63%, 7/01/20 | 900 | 686,016 |
Par | |||
Municipal Bonds | (000) | Value | |
Arizona (continued) | |||
Education (concluded) | |||
Pima County IDA, RB, Arizona Charter Schools Project, | |||
Series C: | |||
6.70%, 7/01/21 | $ 715 | $ 698,441 | |
6.75%, 7/01/31 | 985 | 904,959 | |
Pima County IDA, Refunding RB: | |||
Arizona Charter Schools Project, Series O, | |||
5.00%, 7/01/26 | 995 | 782,130 | |
Charter Schools II, Series A, 6.75%, 7/01/21 | 565 | 554,017 | |
University of Arizona, COP, Refunding, University of Arizona | |||
Projects, Series A (AMBAC), 5.13%, 6/01/29 | 905 | 874,148 | |
University of Arizona, COP, University of Arizona Projects, | |||
Series B (AMBAC), 5.00%, 6/01/28 | 1,400 | 1,344,980 | |
9,441,044 | |||
Health — 17.2% | |||
Arizona Health Facilities Authority, Refunding RB, Banner | |||
Health, Series D: | |||
6.00%, 1/01/30 | 1,500 | 1,505,820 | |
5.50%, 1/01/38 | 1,300 | 1,225,211 | |
Maricopa County IDA Arizona, Refunding RB: | |||
Catholic Healthcare West, Series A, 5.50%, 7/01/26 | 1,850 | 1,778,368 | |
Samaritan Health Services, Series A (NPFGC), | |||
7.00%, 12/01/16 (b) | 1,000 | 1,191,700 | |
Scottsdale IDA, RB, Scottsdale Healthcare, Series C | |||
(AGC), 5.00%, 9/01/35 | 2,000 | 1,830,780 | |
University Medical Center Corp. Arizona, RB, | |||
6.50%, 7/01/39 | 500 | 511,990 | |
Yavapai County IDA Arizona, RB, Yavapai Regional Medical | |||
Center, Series A, 6.00%, 8/01/33 | 1,800 | 1,723,014 | |
9,766,883 | |||
Housing — 5.9% | |||
Maricopa County & Phoenix Industrial Development | |||
Authorities, Refunding RB, AMT (Ginnie Mae), S/F: | |||
Series A-1, 5.75%, 5/01/40 | 495 | 501,806 | |
Series A-2, 5.80%, 7/01/40 | 385 | 392,011 | |
Maricopa County IDA Arizona, RB, Series 3-B, AMT | |||
(Ginnie Mae), 5.25%, 8/01/38 | 747 | 764,735 | |
Phoenix & Pima County IDA, RB, Series 1A, AMT | |||
(Ginnie Mae), 5.65%, 7/01/39 | 301 | 313,842 | |
Phoenix & Pima County IDA, Refunding RB, | |||
Series 2007-1, AMT (Ginnie Mae), 5.25%, 8/01/38 | 662 | 666,743 | |
Phoenix IDA Arizona, Refunding RB, Series 2007-2, | |||
AMT (Ginnie Mae), 5.50%, 8/01/38 | 681 | 688,061 | |
3,327,198 | |||
State — 15.9% | |||
Arizona School Facilities Board, COP: | |||
5.13%, 9/01/21 | 1,000 | 1,013,620 | |
5.75%, 9/01/22 | 2,000 | 2,080,820 | |
Arizona Sports & Tourism Authority, RB, Baseball Training | |||
Facilities Project, 5.00%, 7/01/16 | 300 | 303,936 | |
Arizona State Transportation Board, RB, Series B, | |||
5.00%, 7/01/30 | 4,000 | 4,004,760 | |
Greater Arizona Development Authority, RB, Series B | |||
(NPFGC), 5.00%, 8/01/30 | 1,700 | 1,638,477 | |
9,041,613 | |||
Transportation — 6.0% | |||
Phoenix Civic Improvement Corp., RB: | |||
Junior Lien, Series A, 5.00%, 7/01/40 | 1,000 | 887,680 | |
Senior Lien, Series A, 5.00%, 7/01/33 | 1,000 | 943,360 | |
Senior Lien, Series B, AMT (NPFGC), 5.75%, 7/01/17 | 1,000 | 1,031,870 | |
Senior Lien, Series B, AMT (NPFGC), 5.25%, 7/01/32 | 600 | 552,894 | |
3,415,804 |
See Notes to Financial Statements.
14 SEMI-ANNUAL REPORT JANUARY 31, 2011
Schedule of Investments (continued) BlackRock MuniYield Arizona Fund, Inc. (MZA)
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
Arizona (concluded) | |||
Utilities — 21.3% | |||
City of Mesa Arizona, RB (NPFGC), 5.00%, 7/01/23 | $ 1,500 | $ 1,576,530 | |
County of Pima Arizona, RB, System (AGM), | |||
5.00%, 7/01/25 | 1,000 | 1,010,060 | |
Gilbert Water Resource Municipal Property Corp., RB, | |||
Subordinate Lien (NPFGC), 5.00%, 10/01/29 | 900 | 877,545 | |
Phoenix Civic Improvement Corp., RB, Junior Lien | |||
(NPFGC), 5.50%, 7/01/20 | 2,500 | 2,636,175 | |
Phoenix Civic Improvement Corp., Refunding RB, | |||
Senior Lien, 5.50%, 7/01/22 | 2,000 | 2,194,860 | |
Pinal County IDA Arizona, RB, San Manuel Facility | |||
Project, AMT, 6.25%, 6/01/26 | 500 | 408,005 | |
Pima County IDA, RB, Tucson Electric Power Co., Series A, | |||
5.25%, 10/01/40 | 1,000 | 884,010 | |
Salt River Project Agricultural Improvement & Power | |||
District, RB, Series A, 5.00%, 1/01/24 | 1,000 | 1,046,330 | |
Salt River Project Agricultural Improvement & Power | |||
District, Refunding RB, Salt River Project, Series A, | |||
5.00%, 1/01/35 | 1,500 | 1,473,240 | |
12,106,755 | |||
Total Municipal Bonds in Arizona | 77,468,861 | ||
Guam — 1.7% | |||
Utilities — 1.7% | |||
Guam Government Waterworks Authority, Refunding RB, | |||
Water, 5.88%, 7/01/35 | 1,000 | 947,070 | |
Total Municipal Bonds in Guam | 947,070 | ||
Puerto Rico — 25.8% | |||
County/City/Special District/School District — 3.2% | |||
Puerto Rico Sales Tax Financing Corp., Refunding RB: | |||
CAB, Series A (NPFGC), 5.84%, 8/01/41 (c) | 9,530 | 1,241,568 | |
First Sub-Series C, 6.00%, 8/01/39 | 600 | 598,374 | |
1,839,942 | |||
Housing — 2.4% | |||
Puerto Rico Housing Finance Authority, Refunding RB, | |||
Subordinate, Capital Fund Modernization, | |||
5.50%, 12/01/18 | 1,250 | 1,385,413 | |
State — 7.4% | |||
Commonwealth of Puerto Rico, GO, Series A, | |||
6.00%, 7/01/38 | 800 | 781,040 | |
Puerto Rico Public Buildings Authority, Refunding RB, | |||
Government Facilities: | |||
Series M-3 (NPFGC), 6.00%, 7/01/28 | 900 | 903,681 | |
Series N, 5.50%, 7/01/27 | 1,000 | 952,190 | |
Puerto Rico Sales Tax Financing Corp., RB, | |||
First Sub-Series A, 6.38%, 8/01/39 | 1,500 | 1,536,030 | |
4,172,941 | |||
Transportation — 5.9% | |||
Puerto Rico Highway & Transportation Authority, | |||
Refunding RB: | |||
Series AA (NPFGC), 5.50%, 7/01/18 | 1,000 | 1,037,270 | |
Series AA (NPFGC), 5.50%, 7/01/20 | 500 | 507,315 | |
Series CC, 5.50%, 7/01/31 | 790 | 739,408 | |
Series E (AGM), 5.50%, 7/01/22 | 1,000 | 1,052,390 | |
3,336,383 |
Par | ||
Municipal Bonds | (000) | Value |
Puerto Rico (concluded) | ||
Utilities — 6.9% | ||
Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, | ||
Series A (Radian), 6.00%, 7/01/44 | $ 2,180 | $ 2,023,585 |
Puerto Rico Electric Power Authority, RB, Series WW: | ||
5.38%, 7/01/24 | 1,000 | 992,880 |
5.50%, 7/01/38 | 1,000 | 925,520 |
3,941,985 | ||
Total Municipal Bonds in Puerto Rico | 14,676,664 | |
Total Municipal Bonds — 163.8% | 93,092,595 | |
Municipal Bonds Transferred to | ||
Tender Option Bond Trusts (d) | ||
Arizona — 5.2% | ||
Utilities — 5.2% | ||
Phoenix Civic Improvement Corp., RB, Junior Lien, | ||
Series A, 5.00%, 7/01/34 | 3,000 | 2,979,420 |
Total Municipal Bonds Transferred to | ||
Tender Option Bond Trusts — 5.2% | 2,979,420 | |
Total Long-Term Investments | ||
(Cost — $99,532,388) — 169.0% | 96,072,015 | |
Short-Term Securities | Shares | |
BIF Arizona Municipal Money Fund, 0.00% (e)(f) | 693,917 | 693,917 |
Total Short-Term Securities | ||
(Cost — $693,917) — 1.2% | 693,917 | |
Total Investments (Cost — $100,226,305*) — 170.2% | 96,765,932 | |
Other Assets Less Liabilities — 0.7% | 384,285 | |
Liability for Trust Certificates, Including Interest | ||
Expense and Fees Payable — (2.6)% | (1,500,356) | |
Preferred Shares, at Redemption Value — (68.3)% | (38,802,467) | |
Net Assets Applicable to Common Shares — 100.0% | $ 56,847,394 |
* The cost and unrealized appreciation (depreciation) of investments as of
January 31, 2011, as computed for federal income tax purposes, were as follows:
Aggregate cost | $ 98,720,505 |
Gross unrealized appreciation | $ 1,022,253 |
Gross unrealized depreciation | (4,476,826) |
Net unrealized depreciation | $ (3,454,573) |
(a) 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 reflects the current
yield as of report date.
(b) Security is collateralized by Municipal or US Treasury obligations.
(c) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(d) Securities represent bonds transferred to a TOB in exchange for which the Fund
acquired residual interest certificates. These securities serve as collateral in a
financing transaction. See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT JANUARY 31, 2011 15
Schedule of Investments (concluded) BlackRock MuniYield Arizona Fund, Inc. (MZA)
(e) Investments in companies considered to be an affiliate of the Fund during the
period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:
Shares Held | Shares Held | |||
at July 31, | Net | at January 31, | ||
Affiliate | 2010 | Activity | 2011 | Income |
BIF Arizona | ||||
Municipal | ||||
Money Fund | 3,274,527 | (2,580,610) | 693,917 | — |
(f) Represents the current yield as of report date.
• 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 Fund management.
This definition may not apply for purposes of this report, which may combine such
sector sub-classifications for reporting ease.
• | Fair Value Measurements — Various inputs are used in determining the fair value of | |
investments and derivatives, which are as follows: | ||
• | Level 1 — price quotations in active markets/exchanges for identical assets | |
and liabilities | ||
• | Level 2 — other observable inputs (including, but not limited to: quoted prices for | |
similar assets or liabilities in markets that are active, quoted prices for identical | ||
or similar assets or liabilities in markets that are not active, inputs other than | ||
quoted prices that are observable for the assets or liabilities (such as interest | ||
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and | ||
default rates) or other market-corroborated inputs) | ||
• | Level 3 — unobservable inputs based on the best information available in the | |
circumstances, to the extent observable inputs are not available (including the | ||
Fund’s own assumptions used in determining the fair value of investments) | ||
The inputs or methodologies used for valuing securities are not necessarily an | ||
indication of the risk associated with investing in those securities. For information | ||
about the Fund’s policy regarding valuation of investments and other significant | ||
accounting policies, please refer to Note 1 of the Notes to Financial Statements. | ||
The following table summarizes the inputs used as of January 31, 2011 in deter- | ||
mining the fair valuation of the Fund’s investments: |
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
Assets: | ||||
Investments in | ||||
Securities: | ||||
Long-Term | ||||
Investments1 | — | $ 96,072,015 | — | $ 96,072,015 |
Short-Term | ||||
Securities | $ 693,917 | — | — | 693,917 |
Total | $ 693,917 | $ 96,072,015 | — | $ 96,765,932 |
1 See above Schedule of Investments for values in each sector. |
See Notes to Financial Statements.
16 SEMI-ANNUAL REPORT JANUARY 31, 2011
Schedule of Investments January 31, 2011 (Unaudited) BlackRock MuniYield California Fund, Inc. (MYC)
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
California — 96.3% | |||
Corporate — 0.4% | |||
City of Chula Vista California, Refunding RB, San Diego | |||
Gas & Electric, Series A, 5.88%, 2/15/34 | $ 975 | $ 999,092 | |
County/City/Special District/School District — 38.1% | |||
Arcata Joint Powers Financing Authority California, | |||
Tax Allocation Bonds, Refunding, Community | |||
Development Project Loan, Series A (AMBAC), | |||
6.00%, 8/01/23 | 2,415 | 2,398,457 | |
Campbell Union High School District, GO, Election | |||
of 2006, Series C, 5.75%, 8/01/40 | 4,000 | 4,034,960 | |
City & County of San Francisco California, COP, Refunding, | |||
Series A: | |||
5.00%, 10/01/29 | 3,540 | 3,334,786 | |
5.00%, 10/01/30 | 6,700 | 6,254,182 | |
City of Los Angeles California, COP, Senior, Sonnenblick | |||
Del Rio West Los Angeles (AMBAC), 6.20%, 11/01/31 | 2,000 | 2,009,060 | |
El Dorado Union High School District, GO, Election | |||
of 2008, 5.00%, 8/01/35 | 5,000 | 5,015,000 | |
El Monte Union High School District California, GO, | |||
Election of 2002, Series C (AGM), 5.25%, 6/01/32 | 10,120 | 10,125,364 | |
Fontana Unified School District California, GO, Series A | |||
(AGM), 5.25%, 8/01/28 | 7,000 | 6,789,650 | |
Los Angeles Community College District California, GO, | |||
Election of 2003, Series F-1, 5.00%, 8/01/33 | 7,715 | 7,239,447 | |
Los Angeles Municipal Improvement Corp., RB, Real | |||
Property, Series E: | |||
5.75%, 9/01/34 | 1,000 | 1,008,020 | |
6.00%, 9/01/34 | 2,160 | 2,222,575 | |
Modesto Irrigation District, COP, Series B, 5.50%, 7/01/35 | 3,300 | 3,138,366 | |
Murrieta Valley Unified School District Public Financing | |||
Authority, Special Tax Bonds, Refunding, Series A (AGC), | |||
5.13%, 9/01/26 | 6,575 | 6,649,429 | |
Oak Grove School District California, GO, Election of 2008, | |||
Series A, 5.50%, 8/01/33 | 4,000 | 3,954,240 | |
Pico Rivera Public Financing Authority, RB: | |||
5.50%, 9/01/31 | 1,500 | 1,434,105 | |
5.75%, 9/01/39 | 6,025 | 5,788,157 | |
Pittsburg Redevelopment Agency, Tax Allocation Bonds, | |||
Refunding, Subordinate, Los Medanos Community | |||
Project, Series A, 6.50%, 9/01/28 | 2,750 | 2,753,053 | |
San Diego Regional Building Authority California, RB, | |||
County Operations Center & Annex, Series A: | |||
5.38%, 2/01/28 | 150 | 151,115 | |
5.38%, 2/01/36 | 4,700 | 4,546,357 | |
San Jose Evergreen Community College District California, | |||
GO, Refunding, CAB, Election of 2004, Series A | |||
(NPFGC), 5.12%, 9/01/23 (a) | 10,005 | 4,920,559 | |
San Jose Unified School District Santa Clara County | |||
California, GO, Election of 2002, Series D, | |||
5.00%, 8/01/32 | 5,075 | 4,893,620 | |
Santa Ana Unified School District, GO, Election of 2008, | |||
Series A, 5.13%, 8/01/32 | 5,965 | 5,619,626 | |
Santa Clara County Financing Authority, Refunding LRB, | |||
Series L, 5.25%, 8/01/33 | 10,000 | 9,502,800 | |
Santa Cruz County Redevelopment Agency California, | |||
Tax Allocation Bonds, Live Oak/Soquel Community | |||
Improvement, Series A: | |||
7.00%, 9/01/36 | 600 | 630,720 | |
6.63%, 9/01/39 | 1,000 | 1,036,640 | |
Westminster Redevelopment Agency California, | |||
Tax Allocation Bonds, Subordinate, Commercial | |||
Redevelopment Project No. 1 (AGC), 6.25%, 11/01/39 | 1,250 | 1,338,212 | |
106,788,500 |
Par | |||
Municipal Bonds | (000) | Value | |
California (continued) | |||
Education — 6.8% | |||
California Educational Facilities Authority, RB, Pitzer | |||
College, 6.00%, 4/01/40 | $ 2,500 | $ 2,461,850 | |
California State Enterprise Development Authority, | |||
Refunding RB, The Thacher School Project, | |||
5.13%, 9/01/39 | 6,965 | 6,375,552 | |
California State University, RB, Systemwide, Series A, | |||
5.50%, 11/01/39 | 2,725 | 2,659,410 | |
San Francisco Community College District, GO, Election | |||
of 2005, Series D, 5.00%, 6/15/34 | 5,420 | 5,099,461 | |
University of California, RB, Limited Project, Series D | |||
(NPFGC), 5.00%, 5/15/32 | 2,500 | 2,439,025 | |
19,035,298 | |||
Health — 15.6% | |||
ABAG Finance Authority for Nonprofit Corps, | |||
Refunding RB, Sharp Healthcare: | |||
6.38%, 8/01/34 | 2,000 | 2,003,400 | |
Series A, 6.00%, 8/01/30 (b) | 2,250 | 2,157,795 | |
California Health Facilities Financing Authority, | |||
Refunding RB: | |||
Catholic Healthcare West, Series A, 6.00%, 7/01/39 | 10,000 | 9,865,200 | |
Catholic Healthcare West, Series E, 5.63%, 7/01/25 | 6,000 | 6,013,620 | |
St. Joseph Health System, Series A, 5.50%, 7/01/29 | 2,100 | 2,075,955 | |
Sutter Health, Series B, 6.00%, 8/15/42 (b) | 2,800 | 2,749,376 | |
California Infrastructure & Economic Development | |||
Bank, RB, Kaiser Hospital Assistance I-LLC, Series A, | |||
5.55%, 8/01/31 | 2,670 | 2,481,818 | |
California Statewide Communities Development Authority, | |||
RB, Health Facility, Memorial Health Services, Series A: | |||
5.50%, 10/01/33 | 3,015 | 3,010,869 | |
6.00%, 10/01/33 | 3,270 | 3,367,904 | |
California Statewide Communities Development Authority, | |||
Refunding RB: | |||
Catholic Healthcare West, Series D, 5.50%, 7/01/31 | 5,355 | 5,053,942 | |
Senior Living, Southern California, 6.25%, 11/15/19 | 500 | 516,090 | |
Senior Living, Southern California, 6.63%, 11/25/24 | 650 | 664,892 | |
Senior Living, Southern California, 7.00%, 11/15/29 | 500 | 512,105 | |
Senior Living, Southern California, 7.25%, 11/15/41 | 1,750 | 1,810,550 | |
City of Torrance California, Refunding RB, Torrance | |||
Memorial Medical Center, Series A, 6.00%, 6/01/22 | 1,310 | 1,337,379 | |
43,620,895 | |||
Housing — 1.2% | |||
California Rural Home Mortgage Finance Authority, | |||
RB, AMT: | |||
Mortgage-Backed Securities Program, Series B | |||
(Ginnie Mae), 6.15%, 6/01/20 | 15 | 15,126 | |
Sub-Series FH-1, 5.50%, 8/01/47 | 300 | 138,255 | |
Santa Clara County Housing Authority California, RB, | |||
John Burns Gardens Apartments Project, Series A, AMT, | |||
6.00%, 8/01/41 | 3,500 | 3,183,320 | |
3,336,701 | |||
State — 6.7% | |||
California State Public Works Board, RB: | |||
Department of Developmental Services, Porterville, | |||
Series C, 6.25%, 4/01/34 | 1,165 | 1,172,270 | |
Department of Education, Riverside Campus Project, | |||
Series B, 6.50%, 4/01/34 | 10,000 | 10,266,100 | |
Trustees of the California State University, Series D, | |||
6.00%, 4/01/27 | 215 | 217,885 | |
Various Capital Projects, Sub-Series I-1, | |||
6.38%, 11/01/34 | 1,850 | 1,882,005 | |
State of California, GO, Various Purpose, 6.50%, 4/01/33 | 5,000 | 5,287,850 | |
18,826,110 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT JANUARY 31, 2011 17
Schedule of Investments (continued) BlackRock MuniYield California Fund, Inc. (MYC)
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
California (concluded) | ||
Transportation — 4.9% | ||
County of Orange California, RB, Series B, | ||
5.75%, 7/01/34 | $ 3,000 | $ 3,103,770 |
County of Sacramento California, RB, Senior Series B, | ||
5.75%, 7/01/39 | 900 | 894,960 |
San Francisco City & County Airports Commission, RB, | ||
Series E, 6.00%, 5/01/39 | 5,065 | 5,213,708 |
San Francisco Port Commission California, RB, Series A, | ||
5.13%, 3/01/40 | 5,000 | 4,547,700 |
13,760,138 | ||
Utilities — 22.6% | ||
California Infrastructure & Economic Development Bank, | ||
RB, California Independent System Operator, Series A, | ||
6.25%, 2/01/39 | 2,170 | 2,237,140 |
California Statewide Communities Development Authority, | ||
RB, Pooled Financing Program, Series C, City of | ||
West Sacramento (AGM), 5.25%, 10/01/28 | 2,380 | 2,383,927 |
City of Chula Vista California, Refunding RB, San Diego | ||
Gas & Electric, Series D, 5.88%, 1/01/34 | 2,500 | 2,561,775 |
City of Los Angeles California, Refunding RB, | ||
Sub-Series A, 5.00%, 6/01/32 | 3,000 | 2,926,770 |
Dublin-San Ramon Services District, Refunding RB, | ||
6.00%, 8/01/41 | 2,420 | 2,447,927 |
Eastern Municipal Water District California, COP, Series H, | ||
5.00%, 7/01/35 | 8,400 | 7,775,292 |
Los Angeles Department of Water & Power, RB: | ||
Power System, Series A-2, 5.25%, 7/01/32 | 2,500 | 2,487,150 |
System, Sub-Series A-1 (AMBAC), 5.00%, 7/01/38 | 6,530 | 6,211,989 |
Oxnard Financing Authority, RB, Redwood Trunk Sewer | ||
& Headworks, Series A (NPFGC), 5.25%, 6/01/34 | 4,205 | 4,067,412 |
Sacramento Municipal Utility District, RB, Cosumnes | ||
Project (NPFGC), 5.13%, 7/01/29 | 18,500 | 18,206,775 |
Sacramento Regional County Sanitation District, | ||
Refunding RB, County Sanitation District 1 (NPFGC), | ||
5.00%, 8/01/35 | 5,925 | 5,690,548 |
San Diego Public Facilities Financing Authority, | ||
Refunding RB, Senior Series A, 5.38%, 5/15/34 | 3,910 | 3,923,919 |
San Francisco City & County Public Utilities Commission, | ||
Refunding RB, Series A, 5.13%, 11/01/39 | 2,295 | 2,219,449 |
63,140,073 | ||
Total Municipal Bonds in California | 269,506,807 | |
Puerto Rico — 2.9% | ||
County/City/Special District/School District — 1.5% | ||
Puerto Rico Sales Tax Financing Corp., RB, First | ||
Sub-Series A, 6.50%, 8/01/44 | 4,000 | 4,139,720 |
State — 1.4% | ||
Commonwealth of Puerto Rico, GO, Refunding, Public | ||
Improvement, Series B, 6.50%, 7/01/37 | 4,000 | 4,101,200 |
Total Municipal Bonds in Puerto Rico | 8,240,920 | |
Total Municipal Bonds — 99.2% | 277,747,727 |
Municipal Bonds Transferred to | Par | ||
Tender Option Bond Trusts (c) | (000) | Value | |
California — 75.7% | |||
Corporate — 9.0% | |||
San Francisco Bay Area Rapid Transit District, | |||
Refunding RB, Series A (NPFGC), 5.00%, 7/01/30 | $ 6,000 | $ 5,999,760 | |
University of California, RB: | |||
Limited Project, Series B (AGM), 5.00%, 5/15/33 | 8,488 | 8,167,648 | |
Series L, 5.00%, 5/15/40 | 11,597 | 11,064,735 | |
25,232,143 | |||
County/City/Special District/School District — 34.8% | |||
City of Los Angeles California, Refunding RB, Series A, | |||
5.00%, 6/01/39 | 9,870 | 9,327,051 | |
Contra Costa Community College District California, GO, | |||
Election of 2002 (AGM), 5.00%, 8/01/30 | 10,215 | 9,702,660 | |
Fremont Unified School District Alameda County | |||
California, GO, Election of 2002, Series B (AGM), | |||
5.00%, 8/01/30 | 4,003 | 3,751,644 | |
Los Angeles Community College District California, GO: | |||
Election of 2001, Series E-1, 5.00%, 8/01/33 | 14,850 | 13,934,646 | |
Election of 2003, Series E (AGM), 5.00%, 8/01/31 | 10,002 | 9,461,545 | |
Election of 2008, Series A, 6.00%, 8/01/33 | 3,828 | 4,050,001 | |
Election of 2008, Series C, 5.25%, 8/01/39 | 9,680 | 9,160,862 | |
Orange County Sanitation District, COP (NPFGC), | |||
5.00%, 2/01/33 | 9,348 | 9,080,683 | |
San Diego Community College District California, GO, | |||
Election of 2002, 5.25%, 8/01/33 | 7,732 | 7,774,343 | |
San Francisco Bay Area Transit Financing Authority, | |||
Refunding RB, Series A (NPFGC), 5.00%, 7/01/34 | 5,439 | 5,349,797 | |
Sonoma County Junior College District, GO, Refunding, | |||
Election of 2002, Series B (AGM), 5.00%, 8/01/28 | 6,875 | 6,772,635 | |
Twin Rivers Unified School District, GO, Election of 2006 | |||
(AGM), 5.00%, 8/01/29 | 9,390 | 8,911,861 | |
97,277,728 | |||
Education — 11.3% | |||
California Educational Facilities Authority, RB, University | |||
of Southern California, Series A, 5.25%, 10/01/39 | 13,845 | 13,948,145 | |
California State University, RB, Systemwide, Series A | |||
(AGM), 5.00%, 11/01/39 | 4,840 | 4,439,877 | |
Peralta Community College District, GO, Election of 2000, | |||
Series D (AGM), 5.00%, 8/01/30 | 1,995 | 1,948,856 | |
University of California, RB: | |||
Series L, 5.00%, 5/15/36 | 8,500 | 8,192,215 | |
Series O, 5.75%, 5/15/34 | 2,805 | 2,977,367 | |
31,506,460 | |||
Utilities — 20.6% | |||
Eastern Municipal Water District, COP, Series H, | |||
5.00%, 7/01/33 | 4,748 | 4,467,161 | |
Los Angeles Department of Water & Power, RB: | |||
Power System, Sub-Series A-1 (AMBAC), | |||
5.00%, 7/01/37 | 15,098 | 14,415,917 | |
System, Sub-Series A-2 (AGM), 5.00%, 7/01/35 | 7,250 | 6,953,692 | |
Metropolitan Water District of Southern California, RB: | |||
Series A, 5.00%, 7/01/37 | 20,000 | 19,912,000 | |
Series C, 5.00%, 7/01/35 | 7,145 | 7,134,703 | |
San Diego County Water Authority, COP, Series A (AGM), | |||
5.00%, 5/01/31 | 5,010 | 4,848,478 | |
57,731,951 | |||
Total Municipal Bonds Transferred to | |||
Tender Option Bond Trusts — 75.7% | 211,748,282 | ||
Total Long-Term Investments | |||
(Cost — $510,116,770) — 174.9% | 489,496,009 |
See Notes to Financial Statements.
18 SEMI-ANNUAL REPORT JANUARY 31, 2011
Schedule of Investments (concluded) BlackRock MuniYield California Fund, Inc. (MYC)
(Percentages shown are based on Net Assets)
Short-Term Securities | Shares | Value |
BIF California Municipal Money Fund, 0.04% (d)(e) | 8,626,297 | $ 8,626,297 |
Total Short-Term Securities | ||
(Cost — $8,626,297) — 3.1% | 8,626,297 | |
Total Investments (Cost — $518,743,067*) — 178.0% | 498,122,306 | |
Other Assets Less Liabilities — 1.4% | 3,820,357 | |
Liability for Trust Certificates, Including Interest | ||
Expense and Fees Payable — (41.5)% | (116,096,100) | |
Preferred Shares, at Redemption Value — (37.9)% | (105,965,406) | |
Net Assets Applicable to Common Shares — 100.0% | $279,881,157 |
* The cost and unrealized appreciation (depreciation) of investments as of January 31,
2011, as computed for federal income tax purposes, were as follows:
Aggregate cost | $ 402,919,999 |
Gross unrealized appreciation | $ 1,987,455 |
Gross unrealized depreciation | (22,777,651) |
Net unrealized depreciation | $ (20,790,196) |
(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(b) When-issued security. Unsettled when-issued transactions were as follows:
Unrealized | ||
Appreciation | ||
Counterparty | Value | (Depreciation) |
Citigroup Global Markets, Inc. | $1,678,285 | $(35,294) |
Morgan Stanley & Co. | $2,749,376 | $ 26,572 |
TheMuniCenter, LLC | $ 479,510 | $(10,084) |
(c) Securities represent bonds transferred to a TOB in exchange for which the Fund
acquired residual interest certificates. These securities serve as collateral in a
financing transaction. See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs.
(d) Investments in companies considered to be an affiliate of the Fund during the
period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:
Shares Held | Shares Held | |||
at July 31, | Net | at January 31, | ||
Affiliate | 2010 | Activity | 2011 | Income |
BIF California | ||||
Municipal | ||||
Money Fund | 12,364,497 | (3,738,200) | 8,626,297 | $ 1,608 |
(g) Represents the current yield as of report date.
• 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 Fund management.
This definition may not apply for purposes of this report, which may combine such
sector sub-classifications for reporting ease.
• Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivatives, which are as follows:
• Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
• Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
• Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of January 31, 2011 in deter-
mining the fair valuation of the Fund’s investments:
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
Assets: | ||||
Investments in | ||||
Securities: | ||||
Long-Term | ||||
Investments1 | — | $ 489,496,009 | — | $ 489,496,009 |
Short-Term | ||||
Securities | $ 8,626,297 | — | — | 8,626,297 |
Total | $ 8,626,297 | $ 489,496,009 | — | $ 498,122,306 |
1 See above Schedule of Investments for values in each sector. |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT JANUARY 31, 2011 19
Schedule of Investments January 31, 2011 (Unaudited) BlackRock MuniYield Investment Fund (MYF)
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
Alaska — 0.6% | |||
Alaska Municipal Bond Bank Authority, RB, Series 1, | |||
5.38%, 9/01/33 | $ 1,000 | $ 1,012,190 | |
Arizona — 0.7% | |||
Pima County IDA, Refunding IDRB, Tucson Electric Power, | |||
5.75%, 9/01/29 | 1,230 | 1,200,468 | |
California — 20.1% | |||
California Educational Facilities Authority, RB, University | |||
of Southern California, Series A, 5.25%, 10/01/38 | 2,740 | 2,762,139 | |
California Health Facilities Financing Authority, | |||
Refunding RB: | |||
Catholic Healthcare West, Series A, 6.00%, 7/01/39 | 710 | 700,429 | |
St. Joseph Health System, Series A, 5.75%, 7/01/39 | 2,700 | 2,651,643 | |
Sutter Health, Series B, 6.00%, 8/15/42 (a) | 1,645 | 1,615,258 | |
California State Public Works Board, RB: | |||
Department of General Services, Buildings 8 & 9, | |||
Series A, 6.25%, 4/01/34 | 4,525 | 4,553,236 | |
Various Capital Projects, Sub-Series I-1, | |||
6.38%, 11/01/34 | 1,265 | 1,286,885 | |
Grossmont Union High School District, GO, Election | |||
of 2008, Series B, 4.75%, 8/01/45 | 4,925 | 4,100,407 | |
Los Angeles Department of Airports, Refunding RB, | |||
Senior, Los Angeles International Airport, Series A, | |||
5.00%, 5/15/35 | 5,420 | 5,010,953 | |
Los Angeles Department of Water & Power, RB, Power | |||
System, Sub-Series A-1, 5.25%, 7/01/38 | 3,600 | 3,553,452 | |
San Diego Regional Building Authority California, | |||
RB, County Operations Center & Annex, Series A, | |||
5.38%, 2/01/36 | 3,310 | 3,201,796 | |
San Francisco City & County Airports Commission, | |||
Refunding RB, Second Series A-3, Mandatory Put | |||
Bonds, AMT, 6.75%, 5/01/19 (b) | 2,500 | 2,534,900 | |
State of California, GO, Various Purpose, 6.00%, 3/01/33 | 2,535 | 2,579,211 | |
34,550,309 | |||
Colorado — 2.3% | |||
City & County of Denver Colorado, Refunding RB, | |||
Series A, 5.25%, 11/15/36 | 4,050 | 3,916,390 | |
Delaware — 1.4% | |||
County of Sussex Delaware, RB, NRG Energy, Inc., | |||
Indian River Project, 6.00%, 10/01/40 | 2,440 | 2,342,010 | |
District of Columbia — 1.2% | |||
District of Columbia Water & Sewer Authority, RB, | |||
Series A, 5.25%, 10/01/29 | 2,000 | 2,044,160 | |
Florida — 9.9% | |||
City of Jacksonville Florida, RB, Series B (NPFGC), | |||
5.13%, 10/01/32 | 1,500 | 1,447,575 | |
County of Miami-Dade Florida, RB, Miami International | |||
Airport, Series A, AMT (NPFGC), 6.00%, 10/01/29 | 3,275 | 3,297,336 | |
County of Osceola Florida, RB, Series A (NPFGC), | |||
5.50%, 10/01/27 | 1,510 | 1,516,312 | |
County of Sumter Florida, RB (AMBAC), 5.00%, 6/01/26 | 105 | 100,545 | |
Florida Housing Finance Corp., Refunding RB, Homeowner | |||
Mortgage, Series 4, AMT (AGM), 6.25%, 7/01/22 | 325 | 329,004 | |
Hillsborough County IDA, RB, AMT, National Gypsum Co.: | |||
Series A, 7.13%, 4/01/30 | 2,500 | 2,222,325 | |
Series B, 7.13%, 4/01/30 | 3,750 | 3,333,487 | |
Santa Rosa County School Board, COP, Refunding, | |||
Series 2 (NPFGC), 5.25%, 2/01/26 | 1,180 | 1,194,986 | |
South Lake County Hospital District, RB, South Lake | |||
Hospital Inc., 6.38%, 10/01/34 | 1,150 | 1,107,128 | |
Village Center Community Development District, RB, | |||
Series A (NPFGC): | |||
5.38%, 11/01/34 | 1,995 | 1,629,915 | |
5.13%, 11/01/36 | 1,000 | 778,560 | |
16,957,173 |
Par | ||
Municipal Bonds | (000) | Value |
Georgia — 4.2% | ||
County of Fulton Georgia, RB (NPFGC), 5.25%, 1/01/35 $ | 1,000 | $ 1,000,220 |
Metropolitan Atlanta Rapid Transit Authority, RB, | ||
Third Series, 5.00%, 7/01/39 | 60 | 58,226 |
Municipal Electric Authority of Georgia, Refunding RB, | ||
Project One, Sub-Series D, 6.00%, 1/01/23 | 5,600 | 6,076,728 |
7,135,174 | ||
Illinois — 9.4% | ||
Chicago Park District, GO, Harbor Facilities, Series C, | ||
5.25%, 1/01/40 | 2,660 | 2,560,410 |
County of Cook Illinois, GO, Refunding, Series A, | ||
5.25%, 11/15/33 | 3,345 | 3,195,010 |
Illinois Finance Authority, Refunding RB: | ||
Central DuPage Health, Series B, 5.38%, 11/01/39 | 1,200 | 1,108,500 |
Northwestern Memorial Hospital, Series A, | ||
6.00%, 8/15/39 | 4,160 | 4,251,769 |
OSF Healthcare System, Series A, 6.00%, 5/15/39 | 1,975 | 1,802,721 |
Railsplitter Tobacco Settlement Authority, RB: | ||
5.50%, 6/01/23 | 1,370 | 1,297,075 |
6.00%, 6/01/28 | 390 | 372,193 |
State of Illinois, RB, Build Illinois, Series B, | ||
5.25%, 6/15/34 | 1,700 | 1,591,353 |
16,179,031 | ||
Indiana — 4.1% | ||
Indiana Finance Authority, Refunding RB, Trinity Health, | ||
Series B, 4.50%, 12/01/37 | 3,000 | 2,383,110 |
Indiana Municipal Power Agency, RB, Series B, | ||
6.00%, 1/01/39 | 4,525 | 4,662,515 |
7,045,625 | ||
Kansas — 1.9% | ||
Kansas Development Finance Authority, Refunding RB, | ||
Adventist Health, 5.50%, 11/15/29 | 3,250 | 3,251,950 |
Kentucky — 4.3% | ||
Kentucky Economic Development Finance Authority, | ||
Refunding RB, Owensboro Medical Health System, | ||
Series A, 6.38%, 6/01/40 | 1,300 | 1,220,648 |
Louisville & Jefferson County Metropolitan Government | ||
Parking Authority, RB, Series A, 5.75%, 12/01/34 | 3,200 | 3,313,952 |
Louisville/Jefferson County Metropolitan Government, | ||
Refunding RB, Jewish Hospital & St. Mary’s HealthCare, | ||
6.13%, 2/01/37 | 2,955 | 2,806,216 |
7,340,816 | ||
Louisiana — 0.8% | ||
Louisiana Local Government Environmental Facilities | ||
& Community Development Authority, RB, Westlake | ||
Chemical Corp., Series A-1, 6.50%, 11/01/35 | 1,420 | 1,405,857 |
Massachusetts — 3.9% | ||
Massachusetts HFA, HRB, Series B, AMT, 5.50%, 6/01/41 | 2,535 | 2,319,221 |
Massachusetts HFA, Refunding HRB, Series F, AMT, | ||
5.70%, 6/01/40 | 2,090 | 1,984,455 |
Massachusetts HFA, Refunding RB, Series C, AMT, | ||
5.35%, 12/01/42 | 1,630 | 1,463,218 |
Massachusetts State College Building Authority, RB, | ||
Series A, 5.50%, 5/01/39 | 1,000 | 1,023,870 |
6,790,764 | ||
Michigan — 4.2% | ||
Kalamazoo Hospital Finance Authority, Refunding RB, | ||
Bronson Methodist Hospital, 5.50%, 5/15/36 | 3,945 | 3,655,792 |
Michigan State Building Authority, Refunding RB, | ||
Facilities Program, Series I, 6.00%, 10/15/38 | 1,250 | 1,290,287 |
Royal Oak Hospital Finance Authority Michigan, | ||
Refunding RB, William Beaumont Hospital, | ||
8.25%, 9/01/39 | 1,970 | 2,193,615 |
7,139,694 |
See Notes to Financial Statements.
20 SEMI-ANNUAL REPORT JANUARY 31, 2011
Schedule of Investments (continued) BlackRock MuniYield Investment Fund (MYF)
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
Nebraska — 0.3% | |||
Lancaster County Hospital Authority No. 1, RB, Immanuel | |||
Obligation Group, 5.63%, 1/01/40 | $ 625 | $ 583,256 | |
Nevada — 8.0% | |||
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts | |||
Center, 6.00%, 4/01/34 | 2,850 | 2,974,859 | |
County of Clark Nevada, GO, Refunding, Transportation, | |||
Series A, 5.00%, 12/01/29 | 3,600 | 3,535,128 | |
County of Clark Nevada, RB: | |||
Motor Vehicle Fuel Tax, 5.00%, 7/01/28 | 1,300 | 1,255,943 | |
Series B, 5.75%, 7/01/42 | 6,055 | 5,976,648 | |
13,742,578 | |||
New Jersey — 2.9% | |||
New Jersey EDA, Refunding RB, New Jersey American | |||
Water Co., Inc. Project, Series A, AMT, 5.70%, 10/01/39 | 2,250 | 2,159,730 | |
New Jersey Transportation Trust Fund Authority, RB, | |||
Transportation System, Series A, 5.88%, 12/15/38 | 2,670 | 2,785,023 | |
4,944,753 | |||
New York — 4.4% | |||
City of Troy New York, Refunding RB, Rensselaer | |||
Polytechnic, Series A, 5.13%, 9/01/40 | 115 | 106,055 | |
New York City Municipal Water Finance Authority, RB, | |||
Second General Resolution, Series EE, 5.38%, 6/15/43 | 760 | 762,546 | |
New York City Transitional Finance Authority, RB, | |||
Fiscal 2009, Series S-3, 5.25%, 1/15/39 | 2,500 | 2,496,300 | |
New York Liberty Development Corp., Refunding RB, | |||
Second Priority, Bank of America Tower at One Bryant | |||
Park Project, 6.38%, 7/15/49 | 1,200 | 1,206,036 | |
Triborough Bridge & Tunnel Authority, RB, General, | |||
Series A-2, 5.38%, 11/15/38 | 3,030 | 3,061,421 | |
7,632,358 | |||
North Carolina — 2.6% | |||
North Carolina Medical Care Commission, RB, Novant | |||
Health Obligation, Series A, 4.75%, 11/01/43 | 5,420 | 4,407,165 | |
Pennsylvania — 3.8% | |||
Pennsylvania Economic Development Financing Authority, | |||
RB, American Water Co. Project, 6.20%, 4/01/39 | 1,075 | 1,103,960 | |
Pennsylvania Turnpike Commission, RB, Sub-Series B, | |||
5.25%, 6/01/39 | 5,650 | 5,347,273 | |
6,451,233 | |||
Puerto Rico — 0.6% | |||
Puerto Rico Sales Tax Financing Corp., RB, First | |||
Sub-Series A, 6.00%, 8/01/42 | 1,000 | 996,910 | |
Texas — 8.3% | |||
City of Houston Texas, RB, Senior Lien, Series A, | |||
5.50%, 7/01/39 | 1,170 | 1,172,761 | |
Conroe ISD Texas, GO, School Building, Series A, | |||
5.75%, 2/15/35 | 1,800 | 1,885,752 | |
Harris County Health Facilities Development Corp., | |||
Refunding RB, Memorial Hermann Healthcare System, | |||
Series B, 7.25%, 12/01/35 | 800 | 859,096 | |
Lower Colorado River Authority, RB, 5.75%, 5/15/28 | 1,620 | 1,663,108 | |
North Texas Tollway Authority, RB, System, First Tier, | |||
Series K-1 (AGC), 5.75%, 1/01/38 | 1,250 | 1,249,925 | |
Tarrant County Cultural Education Facilities Finance Corp., | |||
RB, Scott & White Healthcare, 6.00%, 8/15/45 | 3,795 | 3,789,384 | |
Texas Private Activity Bond Surface Transportation Corp., | |||
RB, Senior Lien, NTE Mobility Partners LLC, North Tarrant | |||
Express Managed Lanes | |||
Project, 6.88%, 12/31/39 | 3,600 | 3,588,516 | |
14,208,542 |
Par | |||
Municipal Bonds | (000) | Value | |
Utah — 1.3% | |||
City of Riverton Utah, RB, IHC Health Services Inc., | |||
5.00%, 8/15/41 | $ 2,370 | $ 2,169,474 | |
Virginia — 1.1% | |||
Virginia Public School Authority, RB, School Financing, | |||
6.50%, 12/01/35 | 1,700 | 1,845,112 | |
West Virginia — 1.1% | |||
West Virginia EDA, Refunding RB, Appalachian Power Co., | |||
Amos Project, Series A, 5.38%, 12/01/38 (b) | 2,165 | 1,942,525 | |
Total Municipal Bonds — 103.4% | 177,235,517 | ||
Municipal Bonds Transferred to | |||
Tender Option Bond Trusts (c) | |||
California — 22.1% | |||
Bay Area Toll Authority, Refunding RB, San Francisco | |||
Bay Area, Series F-1, 5.63%, 4/01/44 | 2,680 | 2,717,890 | |
California Educational Facilities Authority, RB, University | |||
of Southern California, Series A, 5.25%, 10/01/39 | 4,200 | 4,231,290 | |
Grossmont Union High School District, GO, Election | |||
of 2008, Series B, 5.00%, 8/01/40 | 6,000 | 5,435,220 | |
Los Angeles Community College District California, GO, | |||
Election of 2008: | |||
Series A, 6.00%, 8/01/33 | 7,697 | 8,142,300 | |
Series C, 5.25%, 8/01/39 | 5,250 | 4,968,442 | |
Los Angeles Unified School District California, GO, | |||
Series I, 5.00%, 1/01/34 | 790 | 724,430 | |
San Diego Public Facilities Financing Authority, | |||
Refunding RB, Series B, 5.50%, 8/01/39 | 8,412 | 8,480,415 | |
University of California, RB, Series O, 5.75%, 5/15/34 | 3,000 | 3,184,350 | |
37,884,337 | |||
Colorado — 1.2% | |||
Colorado Health Facilities Authority, Refunding RB, | |||
Catholic Healthcare, Series A, 5.50%, 7/01/34 | 2,149 | 2,099,528 | |
District of Columbia — 3.8% | |||
District of Columbia, RB, Series A, 5.50%, 12/01/30 | 2,805 | 2,938,630 | |
District of Columbia Water & Sewer Authority, RB, | |||
Series A, 5.50%, 10/01/39 | 3,507 | 3,617,848 | |
6,556,478 | |||
Florida — 5.2% | |||
City of Jacksonville Florida, RB, Better Jacksonville | |||
(NPFGC), 5.00%, 10/01/27 | 2,700 | 2,699,811 | |
Hillsborough County Aviation Authority, RB, Series A, | |||
AMT (AGC), 5.50%, 10/01/38 | 3,869 | 3,616,286 | |
Lee County Housing Finance Authority, RB, | |||
Multi-County Program, Series A-2, AMT (Ginnie Mae), | |||
6.00%, 9/01/40 | 1,620 | 1,695,314 | |
Manatee County Housing Finance Authority, RB, Series A, | |||
AMT (Ginnie Mae), 5.90%, 9/01/40 | 821 | 853,674 | |
8,865,085 | |||
Illinois — 4.4% | |||
Illinois Finance Authority, RB, University of Chicago, | |||
Series B, 6.25%, 7/01/38 | 5,300 | 5,809,171 | |
Illinois State Toll Highway Authority, RB, Series B, | |||
5.50%, 1/01/33 | 1,750 | 1,714,696 | |
7,523,867 | |||
Nevada — 6.5% | |||
Clark County Water Reclamation District, GO: | |||
Limited Tax, 6.00%, 7/01/38 | 5,000 | 5,351,150 | |
Series B, 5.50%, 7/01/29 | 5,668 | 5,825,496 | |
11,176,646 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT JANUARY 31, 2011 21
Schedule of Investments (concluded) BlackRock MuniYield Investment Fund (MYF)
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to | Par | |
Tender Option Bond Trusts (c) | (000) | Value |
New Hampshire — 1.3% | ||
New Hampshire Health & Education Facilities Authority, | ||
Refunding RB, Dartmouth College, 5.25%, 6/01/39 | $ 2,159 | $ 2,202,574 |
New Jersey — 3.6% | ||
New Jersey State Housing & Mortgage Finance Agency, | ||
RB, S/F Housing, Series CC, 5.25%, 10/01/29 | 2,291 | 2,247,752 |
New Jersey Transportation Trust Fund Authority, | ||
RB, Transportation System, Series A (AGM), | ||
5.00%, 12/15/32 | 4,000 | 3,895,960 |
6,143,712 | ||
New York — 4.8% | ||
New York City Municipal Water Finance Authority, RB, | ||
Series FF-2, 5.50%, 6/15/40 | 2,504 | 2,559,741 |
New York State Dormitory Authority, ERB, Series B, | ||
5.25%, 3/15/38 | 5,700 | 5,714,592 |
8,274,333 | ||
Ohio — 1.7% | ||
County of Allen Ohio, Refunding RB, Catholic Healthcare, | ||
Series A, 5.25%, 6/01/38 | 3,120 | 2,885,875 |
South Carolina — 2.0% | ||
South Carolina State Public Service Authority, RB, | ||
Santee Cooper, Series A, 5.50%, 1/01/38 | 3,240 | 3,346,823 |
Texas — 5.4% | ||
City of San Antonio Texas, Refunding RB, Series A, | ||
5.25%, 2/01/31 | 3,989 | 4,072,683 |
Harris County Cultural Education Facilities Finance | ||
Corp., RB, Hospital, Texas Children’s Hospital Project, | ||
5.50%, 10/01/39 | 5,400 | 5,181,732 |
9,254,415 | ||
Virginia — 1.0% | ||
Fairfax County IDA Virginia, Refunding RB, Health Care, | ||
Inova Health System, Series A, 5.50%, 5/15/35 | 1,749 | 1,746,274 |
Wisconsin — 1.8% | ||
Wisconsin Health & Educational Facilities Authority, | ||
Refunding RB, Froedtert & Community Health Inc., | ||
5.25%, 4/01/39 | 3,289 | 3,026,631 |
Total Municipal Bonds Transferred to | ||
Tender Option Bond Trusts — 64.8% | 110,986,578 | |
Total Long-Term Investments | ||
(Cost — $295,404,100) — 168.2% | 288,222,095 | |
Short-Term Securities | Shares | |
FFI Institutional Tax-Exempt Fund, 0.15% (d)(e) | 3,287,063 | 3,287,063 |
Total Short-Term Securities | ||
(Cost — $3,287,063) — 1.9% | 3,287,063 | |
Total Investments (Cost — $298,691,163*) — 170.1% | 291,509,158 | |
Other Assets Less Liabilities — 0.9% | 1,607,323 | |
Liability for Trust Certificates, Including Interest | ||
Expense and Fees Payable — (36.3)% | (62,229,057) | |
Preferred Shares, at Redemption Value — (34.7)% | (59,479,853) | |
Net Assets Applicable to Common Shares — 100.0% | $171,407,571 |
* The cost and unrealized appreciation (depreciation) of investments as of
January 31, 2011, as computed for federal income tax purposes, were as follows:
Aggregate cost | $ 237,262,370 |
Gross unrealized appreciation | $ 3,666,788 |
Gross unrealized depreciation | (11,594,500) |
Net unrealized depreciation | $ (7,927,712) |
(a) When-issued security. Unsettled when-issued transactions were as follows:
Unrealized | ||
Counterparty | Value | Appreciation |
Morgan Stanley & Co. | $1,615,258 | $ 15,611 |
(b) Variable rate security. Rate shown is as of report date.
(c) Securities represent bonds transferred to a TOB in exchange for which the Fund
acquired residual interest certificates. These securities serve as collateral in a
financing transaction. See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs.
(d) Investments in companies considered to be an affiliate of the Fund during the
period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
as amended, were as follows:
Shares Held | Shares Held | |||
at July 31, | Net | at January 31, | ||
Affiliate | 2010 | Activity | 2011 | Income |
FFI Institutional | ||||
Tax-Exempt Fund | 7,411,011 | (4,123,948) | 3,287,063 | $ 3,230 |
(e) Represents the current yield as of report date.
• Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
• Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
• Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
• Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund’s policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of January 31, 2011 in deter-
mining the fair valuation of the Fund’s investments:
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | |
Assets: | |||||
Investments in | |||||
Securities: | |||||
Long-Term | |||||
Investments1 | — | $ 288,222,095 | — | $ 288,222,095 | |
Short-Term | |||||
Securities | $ 3,287,063 | — | — | 3,287,063 | |
Total | $ 3,287,063 | $ 288,222,095 | — | $ 291,509,158 | |
1 See above Schedule of Investments for values in each state or | |||||
political subdivision. |
See Notes to Financial Statements.
22 SEMI-ANNUAL REPORT JANUARY 31, 2011
Schedule of Investments January 31, 2011 (Unaudited) BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
New Jersey — 131.4% | |||
Corporate — 3.6% | |||
New Jersey EDA, Refunding RB, New Jersey | |||
American Water Co., Inc. Project, Series A, AMT, | |||
5.70%, 10/01/39 | $ 2,925 | $ 2,807,649 | |
Salem County Utilities Authority, Refunding RB, | |||
Atlantic City Electric, Series A, 4.88%, 6/01/29 | 4,550 | 4,243,739 | |
7,051,388 | |||
County/City/Special District/School District — 19.7% | |||
City of Margate City New Jersey, GO, Improvement: | |||
5.00%, 1/15/26 | 1,200 | 1,204,644 | |
5.00%, 1/15/27 | 845 | 840,386 | |
City of Perth Amboy New Jersey, GO, CAB (AGM) (a): | |||
5.16%, 7/01/33 | 1,575 | 1,379,873 | |
5.16%, 7/01/34 | 1,925 | 1,674,442 | |
County of Hudson New Jersey, COP, Refunding (NPFGC), | |||
6.25%, 12/01/16 | 1,500 | 1,716,375 | |
Essex County Improvement Authority, RB, Newark Project, | |||
Series A (AGM): | |||
5.00%, 11/01/20 | 375 | 366,379 | |
6.00%, 11/01/30 | 545 | 545,736 | |
Essex County Improvement Authority, Refunding RB, | |||
Project Consolidation (NPFGC): | |||
5.50%, 10/01/28 | 2,700 | 2,780,028 | |
5.50%, 10/01/29 | 5,085 | 5,198,141 | |
Hudson County Improvement Authority, RB, | |||
Harrison Parking Facility Project, Series C (AGC), | |||
5.38%, 1/01/44 | 4,800 | 4,825,872 | |
Middlesex County Improvement Authority, RB: | |||
Golf Course Projects, 5.25%, 6/01/22 | 1,455 | 1,575,168 | |
Senior, Heldrich Center Hotel, Series A, | |||
5.00%, 1/01/20 | 655 | 307,981 | |
Monmouth County Improvement Authority, RB, | |||
Governmental Loan (AMBAC): | |||
5.00%, 12/01/11 (b) | 2,085 | 2,165,544 | |
5.00%, 12/01/15 | 1,215 | 1,231,731 | |
5.00%, 12/01/16 | 1,280 | 1,297,421 | |
Morristown Parking Authority, RB (NPFGC), | |||
4.50%, 8/01/37 | 585 | 519,538 | |
Newark Housing Authority, Refunding RB, Newark | |||
Redevelopment Project (NPFGC), 4.38%, 1/01/37 | 2,875 | 2,459,534 | |
Salem County Improvement Authority, RB, Finlaw Street | |||
Office Building (AGM), 5.38%, 8/15/28 | 50 | 48,589 | |
South Jersey Port Corp., Refunding RB: | |||
4.75%, 1/01/18 | 4,280 | 4,366,285 | |
4.85%, 1/01/19 | 2,485 | 2,526,276 | |
5.00%, 1/01/20 | 2,000 | 2,028,740 | |
39,058,683 | |||
Education — 16.6% | |||
New Jersey EDA, RB, School Facilities Construction: | |||
Series CC-2, 5.00%, 12/15/31 | 1,700 | 1,650,581 | |
Series CC-2, 5.00%, 12/15/32 | 1,300 | 1,249,768 | |
Series Y, 5.00%, 9/01/33 | 880 | 838,754 | |
New Jersey Educational Facilities Authority, RB: | |||
Georgian Court College Project, Series C, | |||
6.50%, 7/01/13 (b) | 2,000 | 2,272,300 | |
Montclair State University, Series J, 5.25%, 7/01/38 | 1,140 | 1,107,692 | |
Rider University, Series A (Radian), 5.50%, 7/01/23 | 1,255 | 1,260,359 | |
Rider University, Series A (Radian), 5.25%, 7/01/34 | 1,450 | 1,252,104 | |
Rider University, Series C (Radian), 5.00%, 7/01/37 | 1,750 | 1,474,725 |
Par | ||
Municipal Bonds | (000) | Value |
New Jersey (continued) | ||
Education (concluded) | ||
New Jersey Educational Facilities Authority, Refunding RB: | ||
College of New Jersey, Series D (AGM), | ||
5.00%, 7/01/35 | $ 6,115 | $ 5,938,460 |
Georgian Court University, Series D, 5.25%, 7/01/37 | 1,000 | 879,600 |
New Jersey Institute of Technology, Series H, | ||
5.00%, 7/01/31 | 1,250 | 1,190,038 |
Rider University (Radian), 5.00%, 7/01/17 | 1,000 | 1,014,520 |
Rowan University, Series B (AGC), 5.00%, 7/01/24 | 1,800 | 1,858,446 |
University of Medicine & Dentistry, Series B, | ||
7.13%, 12/01/23 | 1,300 | 1,447,199 |
University of Medicine & Dentistry, Series B, | ||
7.50%, 12/01/32 | 1,625 | 1,758,803 |
New Jersey Higher Education Assistance Authority, | ||
Refunding RB, Series 1A: | ||
5.00%, 12/01/25 | 1,035 | 977,889 |
5.00%, 12/01/26 | 645 | 603,378 |
5.25%, 12/01/32 | 900 | 836,235 |
New Jersey State Higher Education Assistance Authority, | ||
RB, Series A, AMT (AMBAC), 5.30%, 6/01/17 | 3,170 | 3,172,916 |
Rutgers-State University of New Jersey, Refunding RB, | ||
Series F, 5.00%, 5/01/39 | 2,000 | 1,961,280 |
32,745,047 | ||
Health — 17.5% | ||
New Jersey EDA, RB: | ||
CAB, St. Barnabas Health, Series A (NPFGC), | ||
6.26%, 7/01/24 (c) | 3,850 | 1,386,269 |
Masonic Charity Foundation of New Jersey, | ||
5.25%, 6/01/24 | 1,425 | 1,370,708 |
Masonic Charity Foundation of New Jersey, | ||
5.25%, 6/01/32 | 685 | 599,718 |
New Jersey EDA, Refunding RB, First Mortgage, | ||
Winchester, Series A: | ||
5.75%, 11/01/24 | 2,500 | 2,394,425 |
5.80%, 11/01/31 | 1,000 | 928,260 |
New Jersey Health Care Facilities Financing Authority, RB: | ||
Children's Specialized Hospital, Series A, | ||
5.50%, 7/01/36 | 1,540 | 1,370,538 |
Health System, Catholic Health East, Series A, | ||
5.38%, 11/15/12 (b) | 1,100 | 1,191,971 |
Hospital Asset Transformation Program, Series A, | ||
5.25%, 10/01/38 | 2,300 | 2,135,481 |
Hunterdon Medical Center, Series A, | ||
5.13%, 7/01/35 | 1,950 | 1,712,314 |
Meridian Health, Series I (AGC), 5.00%, 7/01/38 | 995 | 927,599 |
Pascack Valley Hospital Association, | ||
6.63%, 7/01/36 (d)(e) | 1,845 | 18 |
Southern Ocean County Hospital (Radian), | ||
5.13%, 7/01/31 | 2,000 | 1,699,440 |
Virtua Health (AGC), 5.50%, 7/01/38 | 2,500 | 2,521,650 |
New Jersey Health Care Facilities Financing Authority, | ||
Refunding RB: | ||
Atlantic City Medical Center, 6.25%, 7/01/12 (b) | 500 | 538,530 |
Atlantic City Medical System, 6.25%, 7/01/17 | 520 | 538,663 |
Atlantic City Medical System, 5.75%, 7/01/25 | 520 | 525,741 |
CAB, St. Barnabas Health, Series B, | ||
5.89%, 7/01/30 (c) | 2,000 | 445,140 |
CAB, St. Barnabas Health, Series B, | ||
5.68%, 7/01/36 (c) | 500 | 63,750 |
CAB, St. Barnabas Health, Series B, | ||
5.17%, 7/01/37 (c) | 13,250 | 1,538,192 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT JANUARY 31, 2011 23
Schedule of Investments (continued) BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
New Jersey (continued) | ||
Health (concluded) | ||
New Jersey Health Care Facilities Financing Authority, | ||
Refunding RB (concluded): | ||
Capital Health System Obligation Group, Series A, | ||
5.75%, 7/01/13 (b) | $ 1,650 | $ 1,822,029 |
Meridian Health System Obligation Group (AGM), | ||
5.38%, 7/01/24 | 2,250 | 2,250,315 |
Meridian Health System Obligation Group (AGM), | ||
5.25%, 7/01/29 | 2,195 | 2,090,364 |
Robert Wood Johnson, 5.00%, 7/01/31 | 1,425 | 1,329,896 |
South Jersey Hospital, 5.00%, 7/01/36 | 385 | 339,651 |
South Jersey Hospital, 5.00%, 7/01/46 | 1,650 | 1,404,348 |
St. Barnabas Health Care System, Series A, | ||
5.00%, 7/01/29 | 4,155 | 3,467,680 |
34,592,690 | ||
Housing — 17.3% | ||
New Jersey State Housing & Mortgage Finance | ||
Agency, RB: | ||
Capital Fund Program, Series A (AGM), | ||
4.70%, 11/01/25 | 6,950 | 6,809,749 |
Home Buyer, Series CC, AMT (NPFGC), | ||
5.80%, 10/01/20 | 4,515 | 4,658,351 |
S/F Housing, Series CC, 5.00%, 10/01/34 | 3,455 | 3,289,056 |
S/F Housing, Series U, AMT, 4.95%, 10/01/32 | 700 | 647,381 |
S/F Housing, Series U, AMT, 5.00%, 10/01/37 | 1,000 | 916,050 |
S/F Housing, Series X, AMT, 4.85%, 4/01/16 | 3,605 | 3,645,160 |
S/F Housing, Series X, AMT, 5.05%, 4/01/18 | 600 | 616,008 |
Series A, 4.75%, 11/01/29 | 2,305 | 2,134,661 |
Series A, AMT (FGIC), 4.90%, 11/01/35 | 1,365 | 1,227,640 |
Series AA, 6.50%, 10/01/38 | 1,735 | 1,867,641 |
New Jersey State Housing & Mortgage Finance | ||
Agency, Refunding RB, S/F Housing, Series T, AMT, | ||
4.65%, 10/01/32 | 4,945 | 4,445,209 |
Newark Housing Authority, RB, South Ward Police | ||
Facility (AGC): | ||
5.75%, 12/01/30 | 1,115 | 1,129,528 |
6.75%, 12/01/38 | 2,670 | 2,934,090 |
34,320,524 | ||
State — 34.9% | ||
Garden State Preservation Trust, RB (AGM): | ||
CAB, Series B, 5.12%, 11/01/23 (c) | 6,860 | 3,784,456 |
CAB, Series B, 5.25%, 11/01/28 (c) | 4,540 | 1,790,848 |
Election of 2005, Series A, 5.80%, 11/01/22 | 4,300 | 4,855,861 |
New Jersey EDA, RB: | ||
Department of Human Services, Pooled, | ||
5.00%, 7/01/12 | 220 | 231,231 |
Motor Vehicle Surcharge, Series A (NPFGC), | ||
5.25%, 7/01/24 | 1,415 | 1,425,797 |
Motor Vehicle Surcharge, Series A (NPFGC), | ||
5.25%, 7/01/25 | 2,000 | 1,995,900 |
Motor Vehicle Surcharge, Series A (NPFGC), | ||
5.25%, 7/01/33 | 14,000 | 13,763,960 |
School Facilities Construction, Series L (AGM), | ||
5.00%, 3/01/30 | 5,800 | 5,801,856 |
School Facilities Construction, Series O, | ||
5.25%, 3/01/23 | 2,400 | 2,493,576 |
School Facilities Construction, Series P, | ||
5.00%, 9/01/15 | 3,000 | 3,255,060 |
Par | ||
Municipal Bonds | (000) | Value |
New Jersey (concluded) | ||
State (concluded) | ||
New Jersey EDA, RB (concluded): | ||
School Facilities Construction, Series P, | ||
5.25%, 9/01/16 | $ 2,710 | $ 3,003,520 |
School Facilities Construction, Series Z (AGC), | ||
5.50%, 12/15/34 | 3,665 | 3,785,212 |
School Facilities Construction, Series Z (AGC), | ||
6.00%, 12/15/34 | 3,600 | 3,841,092 |
New Jersey EDA, Refunding RB: | ||
New Jersey American Water Co., Inc. Project, | ||
Series B, AMT, 5.60%, 11/01/34 | 2,430 | 2,313,433 |
School Facilities Construction, Series AA, | ||
5.50%, 12/15/29 | 3,300 | 3,386,559 |
New Jersey Transportation Trust Fund Authority, RB, | ||
Transportation System: | ||
CAB, Series C (AMBAC), 5.05%, 12/15/35 (c) | 4,140 | 761,967 |
Series A (AGC), 5.63%, 12/15/28 | 1,250 | 1,318,550 |
New Jersey Transportation Trust Fund Authority, | ||
Refunding RB, Transportation System: | ||
Series A, 5.50%, 12/15/21 | 3,525 | 3,779,470 |
Series B (NPFGC), 5.50%, 12/15/21 | 5,865 | 6,262,588 |
State of New Jersey, COP, Equipment Lease Purchase, | ||
Series A, 5.25%, 6/15/28 | 1,100 | 1,073,006 |
68,923,942 | ||
Transportation — 16.8% | ||
New Jersey State Turnpike Authority, RB: | ||
Growth & Income Securities, Series B (AMBAC), | ||
5.22%, 1/01/15 (c) | 4,870 | 3,682,450 |
Series E, 5.25%, 1/01/40 | 5,475 | 5,434,485 |
New Jersey Transportation Trust Fund Authority, RB, | ||
Transportation System: | ||
6.00%, 12/15/38 | 1,950 | 2,068,970 |
Series A, 6.00%, 12/15/18 (b) | 950 | 1,165,289 |
Series A, 5.88%, 12/15/38 | 3,050 | 3,181,394 |
Series A (AGC), 5.50%, 12/15/38 | 1,000 | 1,036,100 |
New Jersey Transportation Trust Fund Authority, | ||
Refunding RB, Transportation System, Series B | ||
(AMBAC), 5.25%, 12/15/23 | 5,000 | 5,118,250 |
Port Authority of New York & New Jersey, RB: | ||
Consolidated, 93rd Series, 6.13%, 6/01/94 | 5,000 | 5,609,750 |
JFK International Air Terminal, 6.00%, 12/01/42 | 2,700 | 2,548,449 |
Port Authority of New York & New Jersey, Refunding RB, | ||
Consolidated, 152nd Series, AMT, 5.75%, 11/01/30 | 3,300 | 3,384,117 |
33,229,254 | ||
Utilities — 5.0% | ||
Cumberland County Improvement Authority, RB, Series A, | ||
5.00%, 7/01/11 (b) | 1,210 | 1,231,707 |
New Jersey EDA, Refunding RB, United Water of | ||
New Jersey Inc., Series B (AMBAC), 4.50%, 11/01/25 | 4,500 | 4,284,945 |
Rahway Valley Sewerage Authority, RB, CAB, Series A | ||
(NPFGC), 4.87%, 9/01/31 (c) | 6,000 | 1,576,500 |
Union County Utilities Authority, Refunding RB, Senior | ||
Lease, Ogden Martin, Series A, AMT (AMBAC): | ||
5.38%, 6/01/17 | 1,585 | 1,586,062 |
5.38%, 6/04/18 | 1,175 | 1,175,423 |
9,854,637 | ||
Total Municipal Bonds in New Jersey | 259,776,165 |
See Notes to Financial Statements.
24 SEMI-ANNUAL REPORT JANUARY 31, 2011
Schedule of Investments (continued) BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
Pennsylvania — 1.2% | |||
Transportation — 1.2% | |||
Delaware River Port Authority, RB: | |||
Port District Project, Series B (AGM), | |||
5.70%, 1/01/22 | $ 1,000 | $ 1,000,930 | |
Series D, 5.00%, 1/01/40 | 1,535 | 1,454,167 | |
Total Municipal Bonds in Pennsylvania | 2,455,097 | ||
Puerto Rico — 12.5% | |||
County/City/Special District/School District — 6.0% | |||
Puerto Rico Sales Tax Financing Corp., RB, First | |||
Sub-Series A, 6.00%, 8/01/42 | 4,000 | 3,987,640 | |
Puerto Rico Sales Tax Financing Corp., Refunding RB, | |||
First Sub-Series C: | |||
6.00%, 8/01/39 | 3,320 | 3,311,003 | |
(AGM), 5.13%, 8/01/42 | 5,000 | 4,650,350 | |
11,948,993 | |||
State — 4.0% | |||
Puerto Rico Highway & Transportation Authority, | |||
Refunding RB, Series CC (AGM), 5.50%, 7/01/30 | 2,000 | 2,002,260 | |
Puerto Rico Sales Tax Financing Corp., RB, First | |||
Sub-Series A, 5.75%, 8/01/37 | 6,000 | 5,840,940 | |
7,843,200 | |||
Transportation — 2.0% | |||
Puerto Rico Highway & Transportation Authority, | |||
Refunding RB: | |||
Series AA-1 (AGM), 4.95%, 7/01/26 | 1,000 | 969,540 | |
Series CC (AGC), 5.50%, 7/01/31 | 3,000 | 2,988,900 | |
3,958,440 | |||
Utilities — 0.5% | |||
Puerto Rico Electric Power Authority, RB, Series WW, | |||
5.50%, 7/01/38 | 1,000 | 925,520 | |
Total Municipal Bonds in Puerto Rico | 24,676,153 | ||
U.S. Virgin Islands — 1.8% | |||
Corporate — 1.8% | |||
United States Virgin Islands, Refunding RB, Senior | |||
Secured, Hovensa Coker Project, AMT, 6.50%, 7/01/21 | 3,500 | 3,474,450 | |
Total Municipal Bonds in the U.S. Virgin Islands | 3,474,450 | ||
Total Municipal Bonds — 146.9% | 290,381,865 | ||
Municipal Bonds Transferred to | |||
Tender Option Bond Trusts (f) | |||
New Jersey — 6.9% | |||
State — 3.0% | |||
Garden State Preservation Trust, RB, Election of 2005, | |||
Series A (AGM), 5.75%, 11/01/28 | 5,460 | 5,992,732 |
Municipal Bonds Transferred to | Par | |
Tender Option Bond Trusts (f) | (000) | Value |
New Jersey (concluded) | ||
Transportation — 3.9% | ||
New Jersey Transportation Trust Fund Authority, | ||
RB, Transportation System, Series A (AGM), | ||
5.00%, 12/15/32 | $ 4,100 | $ 3,993,359 |
Port Authority of New York & New Jersey, Refunding RB, | ||
Consolidated, 152nd Series, AMT, 5.25%, 11/01/35 | 3,764 | 3,588,026 |
7,581,385 | ||
Total Municipal Bonds Transferred to | ||
Tender Option Bond Trusts — 6.9% | 13,574,117 | |
Total Long-Term Investments | ||
(Cost — $314,443,678) — 153.8% | 303,955,982 | |
Short-Term Securities | Shares | |
BIF New Jersey Municipal Money Fund, | ||
0.04% (g)(h) | 2,599,838 | 2,599,838 |
Total Short-Term Securities | ||
(Cost — $2,599,838) — 1.3% | 2,599,838 | |
Total Investments (Cost — $317,043,516*) — 155.1% | 306,555,820 | |
Other Assets Less Liabilities — 1.0% | 1,950,091 | |
Liability for Trust Certificates, Including Interest | ||
Expense and Fees Payable — (4.4)% | (8,659,514) | |
Preferred Shares, at Redemption Value — (51.7)% | (102,210,682) | |
Net Assets Applicable to Common Shares — 100.0% | $197,635,715 |
* The cost and unrealized appreciation (depreciation) of investments as of
January 31, 2011, as computed for federal income tax purposes, were as follows:
Aggregate cost | $ 308,460,390 |
Gross unrealized appreciation | $ 4,990,277 |
Gross unrealized depreciation | (15,548,548) |
Net unrealized depreciation | $ (10,558,271) |
(a) 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 reflects the current
yield as of report date.
(b) US 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 zero-coupon bond. Rate shown reflects the current yield as of
report date.
(d) Issuer filed for bankruptcy and/or is in default of interest payments.
(e) Non-income producing security.
(f) Securities represent bonds transferred to a TOB in exchange for which the Fund
acquired residual interest certificates. These securities serve as collateral in a
financing transaction. See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs.
(g) Investments in companies considered to be an affiliate of the Fund during the
period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
as amended, were as follows:
Shares Held | Shares Held | |||
at July 31, | Net | at January 31, | ||
Affiliate | 2010 | Activity | 2011 | Income |
BIF New Jersey | ||||
Municipal | ||||
Money Fund | 11,162,403 | (8,562,565) | 2,599,838 | $ 1,346 |
(h) Represents the current yield as of report date.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT JANUARY 31, 2011 25
Schedule of Investments (concluded) BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
• 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 Fund management.
This definition may not apply for purposes of this report, which may combine such
sector sub-classifications for reporting ease.
• Fair Value Measurements — Various inputs are used in determining the fair value of
investments, which are as follows:
• Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
• Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
• Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund's own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For information
about the Fund's policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the inputs used as of January 31, 2011 in deter-
mining the fair valuation of the Fund's investments:
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
Assets: | ||||
Investments in | ||||
Securities: | ||||
Long-Term | ||||
Investments1 | — | $ 303,955,982 | — | $ 303,955,982 |
Short-Term | ||||
Securities | $ 2,599,838 | — | — | 2,599,838 |
Total | $ 2,599,838 | $ 303,955,982 | — | $ 306,555,820 |
1 See above Schedule of Investments for values in each sector. |
See Notes to Financial Statements.
26 SEMI-ANNUAL REPORT JANUARY 31, 2011
Statements of Assets and Liabilities | |||||
BlackRock | |||||
Muni New York | BlackRock | BlackRock | BlackRock | ||
Intermediate | MuniYield | MuniYield | BlackRock | MuniYield | |
Duration | Arizona | California | MuniYield | New Jersey | |
Fund, Inc. | Fund, Inc. | Fund, Inc. | Investment Fund | Fund, Inc. | |
January 31, 2011 (Unaudited) | (MNE) | (MZA) | (MYC) | (MYF) | (MYJ) |
Assets | |||||
Investments at value — unaffiliated1 | $ 85,917,876 | $ 96,072,015 | $ 489,496,009 | $ 288,222,095 | $ 303,955,982 |
Investments at value — affiliated2 | 746,617 | 693,917 | 8,626,297 | 3,287,063 | 2,599,838 |
Investments sold receivable | 2,555,516 | — | 13,966,875 | 212,142 | — |
Interest receivable | 931,947 | 749,010 | 7,304,664 | 4,195,978 | 3,139,448 |
Prepaid expenses | 10,664 | 3,878 | 18,177 | 10,731 | 11,690 |
Other assets | 8,605 | — | — | — | — |
Total assets | 90,171,225 | 97,518,820 | 519,412,022 | 295,928,009 | 309,706,958 |
Accrued Liabilities | |||||
Bank overdraft | — | 3,003 | — | 772 | — |
Investments purchased payable | 1,942,628 | — | 15,530,213 | 1,599,647 | — |
Income dividends payable — Common Shares | 256,593 | 317,190 | 1,682,325 | 1,051,464 | 1,031,083 |
Investment advisory fees payable | 40,854 | 41,167 | 214,577 | 124,454 | 129,094 |
Interest expense and fees payable | 749 | 356 | 103,597 | 54,557 | 5,813 |
Other affiliates payable | 450 | 506 | 2,660 | 2,076 | 2,550 |
Officer's and Directors' fees payable | 117 | 120 | 875 | 365 | 521 |
Other accrued expenses payable | — | 6,617 | 38,709 | 32,750 | 37,799 |
Total accrued liabilities | 2,241,391 | 368,959 | 17,572,956 | 2,866,085 | 1,206,860 |
Other Liabilities | |||||
Trust certificates3 | 1,125,000 | 1,500,000 | 115,992,503 | 62,174,500 | 8,653,701 |
Total Liabilities | 3,366,391 | 1,868,959 | 133,565,459 | 65,040,585 | 9,860,561 |
Preferred Shares at Redemption Value | |||||
$25,000 per share liquidation preference, plus unpaid dividends4,5 | 29,626,219 | 38,802,467 | 105,965,406 | 59,479,853 | 102,210,682 |
Net Assets Applicable to Common Shareholders | $ 57,178,615 | $ 56,847,394 | $ 279,881,157 | $ 171,407,571 | $ 197,635,715 |
Net Assets Applicable to Common Shareholders Consist of | |||||
Paid-in capital6,7 | $ 59,630,112 | $ 60,612,608 | $ 301,598,405 | $ 189,027,572 | $ 204,776,150 |
Undistributed net investment income | 995,374 | 925,424 | 5,230,862 | 3,842,074 | 4,710,004 |
Accumulated net realized loss | (2,151,018) | (1,230,265) | (6,327,349) | (14,280,070) | (1,362,743) |
Net unrealized appreciation/depreciation | (1,295,853) | (3,460,373) | (20,620,761) | (7,182,005) | (10,487,696) |
Net Assets Applicable to Common Shareholders | $ 57,178,615 | $ 56,847,394 | $ 279,881,157 | $ 171,407,571 | $ 197,635,715 |
Net asset value per Common Share | $ 13.59 | $ 12.46 | $ 13.14 | $ 12.63 | $ 13.90 |
1 Investments at cost — unaffiliated | $ 87,213,729 | $ 99,532,388 | $ 510,116,770 | $ 295,404,100 | $ 314,443,678 |
2 Investments at cost — affiliated | $ 746,617 | $ 693,917 | $ 8,626,297 | $ 3,287,063 | $ 2,599,838 |
3 Represents short-term floating rate certificates issued by TOBs. | |||||
4 Preferred Shares outstanding: | |||||
Par value $0.05 per share | — | — | — | 2,379 | 3,349 |
Par value $0.10 per share | 1,185 | 1,552 | 4,238 | — | 739 |
5 Preferred Shares authorized | 1,240 | 1,612 | 7,000 | 1 million | 4,760 |
6 Common Shares outstanding, $0.10 par value | 4,206,439 | 4,563,888 | 21,295,255 | 13,567,282 | 14,221,829 |
7 Common Shares authorized | 200 million | 200 million | 200 million | unlimited | 200 million |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT JANUARY 31, 2011 27
Statements of Operations | |||||
BlackRock | |||||
Muni New York | BlackRock | BlackRock | BlackRock | ||
Intermediate | MuniYield | MuniYield | BlackRock | MuniYield | |
Duration | Arizona | California | MuniYield | New Jersey | |
Fund, Inc. | Fund, Inc. | Fund, Inc. | Investment Fund | Fund, Inc. | |
Six Months Ended January 31, 2011 (Unaudited) | (MNE) | (MZA) | (MYC) | (MYF) | (MYJ) |
Investment Income | |||||
Interest | $ 2,203,253 | $ 2,431,083 | $ 12,473,171 | $ 7,938,531 | $ 7,615,472 |
Income — affiliated | 42 | — | 1,608 | 3,230 | 1,346 |
Total income | 2,203,295 | 2,431,083 | 12,474,779 | 7,941,761 | 7,616,818 |
Expenses | |||||
Investment advisory | 252,052 | 255,887 | 1,348,127 | 783,281 | 812,443 |
Professional | 33,492 | 27,074 | 58,703 | 42,859 | 35,985 |
Commissions for Preferred Shares | 21,449 | 27,448 | 76,252 | 43,227 | 76,738 |
Transfer agent | 10,619 | 17,551 | 22,132 | 21,390 | 22,271 |
Accounting services | 8,146 | 8,588 | 31,536 | 20,409 | 27,107 |
Printing | 4,117 | 2,725 | 18,089 | 11,613 | 13,776 |
Custodian | 4,035 | 6,016 | 11,018 | 8,791 | 9,742 |
Registration | 3,584 | 971 | 4,510 | 4,536 | 4,703 |
Officer and Directors | 3,151 | 3,361 | 18,326 | 10,100 | 12,731 |
Miscellaneous | 23,184 | 19,608 | 39,504 | 29,578 | 35,085 |
Total expenses excluding interest expense and fees | 363,829 | 369,229 | 1,628,197 | 975,784 | 1,050,581 |
Interest expense and fees1 | 4,687 | 6,355 | 492,370 | 268,237 | 32,397 |
Total expenses | 368,516 | 375,584 | 2,120,567 | 1,244,021 | 1,082,978 |
Less fees waived by advisor | (1,215) | (1,495) | (10,989) | (908) | (10,925) |
Total expenses after fees waived | 367,301 | 374,089 | 2,109,578 | 1,243,113 | 1,072,053 |
Net investment income | 1,835,994 | 2,056,994 | 10,365,201 | 6,698,648 | 6,544,765 |
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) from: | |||||
Investments | 100,778 | 111,009 | 331,381 | 1,208 | 1,351,958 |
Financial futures contracts | — | (33,799) | (70,024) | — | — |
100,778 | 77,210 | 261,357 | 1,208 | 1,351,958 | |
Net change in unrealized appreciation/depreciation on: | |||||
Investments | (4,020,552) | (5,949,303) | (35,033,180) | (22,355,279) | (20,459,629) |
Financial futures contracts | — | 25,901 | 53,571 | — | — |
(4,020,552) | (5,923,402) | (34,979,609) | (22,355,279) | (20,459,629) | |
Total realized and unrealized loss | (3,919,774) | (5,846,192) | (34,718,252) | (22,354,071) | (19,107,671) |
Dividends and Distributions to Preferred Shareholders From | |||||
Net investment income | (220,277) | (133,432) | (338,941) | (169,050) | (312,082) |
Net realized gain | — | — | — | — | (4,522) |
Total dividends and distributions to Preferred Shareholders | (220,277) | (133,432) | (338,941) | (169,050) | (316,604) |
Net Decrease in Net Assets Applicable to | |||||
Common Shareholders Resulting from Operations | $ (2,304,057) | $ (3,922,630) | $ (24,691,992) | $ (15,824,473) | $ (12,879,510) |
1 Related to TOBs. |
See Notes to Financial Statements.
28 SEMI-ANNUAL REPORT JANUARY 31, 2011
Statements of Changes in Net Assets BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)
Six Months | ||
Ended | ||
January 31, | Year Ended | |
2011 | July 31, | |
Increase (Decrease) in Net Assets Applicable to Common Shareholders: | (Unaudited) | 2010 |
Operations | ||
Net investment income | $ 1,835,994 | $ 3,684,614 |
Net realized gain | 100,778 | 803,451 |
Net change in unrealized appreciation/depreciation | (4,020,552) | 5,138,910 |
Dividends to Preferred Shareholders from net investment income | (220,277) | (436,446) |
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations | (2,304,057) | 9,190,529 |
Dividends to Common Shareholders From | ||
Net investment income | (1,526,937) | (2,822,521) |
Net Assets Applicable to Common Shareholders | ||
Total increase (decrease) in net assets applicable to Common Shareholders | (3,830,994) | 6,368,008 |
Beginning of period | 61,009,609 | 54,641,601 |
End of period | $ 57,178,615 | $ 61,009,609 |
Undistributed net investment income | $ 995,374 | $ 906,594 |
| BlackRock MuniYield Arizona Fund, Inc. (MZA) | |
Six Months | ||
Ended | ||
January 31, | Year Ended | |
2011 | July 31, | |
Increase (Decrease) in Net Assets Applicable to Common Shareholders: | (Unaudited) | 2010 |
Operations | ||
Net investment income | $ 2,056,994 | $ 4,233,845 |
Net realized gain (loss) | 77,210 | (247,167) |
Net change in unrealized appreciation/depreciation | (5,923,402) | 6,055,148 |
Dividends to Preferred Shareholders from net investment income | (133,432) | (263,509) |
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations | (3,922,630) | 9,778,317 |
Dividends to Common Shareholders From | ||
Net investment income | (1,902,737) | (3,721,205) |
Capital Share Transactions | ||
Reinvestment of common dividends | 54,635 | 112,033 |
Net Assets Applicable to Common Shareholders | ||
Total increase (decrease) in net assets applicable to Common Shareholders | (5,770,732) | 6,169,145 |
Beginning of period | 62,618,126 | 56,448,981 |
End of period | $ 56,847,394 | $ 62,618,126 |
Undistributed net investment income | $ 925,424 | $ 904,599 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT JANUARY 31, 2011 29
Statements of Changes in Net Assets BlackRock MuniYield California Fund, Inc. (MYC)
Six Months | ||
Ended | ||
January 31, | Year Ended | |
2011 | July 31, | |
Increase (Decrease) in Net Assets Applicable to Common Shareholders: | (Unaudited) | 2010 |
Operations | ||
Net investment income | $ 10,365,201 | $ 19,959,389 |
Net realized gain (loss) | 261,357 | (2,256,396) |
Net change in unrealized appreciation/depreciation | (34,979,609) | 28,173,305 |
Dividends to Preferred Shareholders from net investment income | (338,941) | (674,559) |
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations | (24,691,992) | 45,201,739 |
Dividends to Common Shareholders From | ||
Net investment income | (9,753,227) | (17,680,853) |
Net Assets Applicable to Common Shareholders | ||
Total increase (decrease) in net assets applicable to Common Shareholders | (34,445,219) | 27,520,886 |
Beginning of period | 314,326,376 | 286,805,490 |
End of period | $279,881,157 | $314,326,376 |
Undistributed net investment income | $ 5,230,862 | $ 4,957,829 |
BlackRock MuniYield Investment Fund (MYF) | ||
Six Months | ||
Ended | ||
January 31, | Year Ended | |
2011 | July 31, | |
Increase (Decrease) in Net Assets Applicable to Common Shareholders: | (Unaudited) | 2010 |
Operations | ||
Net investment income | $ 6,698,648 | $ 12,956,609 |
Net realized gain | 1,208 | 2,525,799 |
Net change in unrealized appreciation/depreciation | (22,355,279) | 13,527,347 |
Dividends to Preferred Shareholders from net investment income | (169,050) | (333,344) |
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations | (15,824,473) | 28,676,411 |
Dividends to Common Shareholders From | ||
Net investment income | (6,172,435) | (11,015,894) |
Capital Share Transactions | ||
Reinvestment of common dividends | 134,159 | — |
Net Assets Applicable to Common Shareholders | ||
Total increase (decrease) in net assets applicable to Common Shareholders | (21,862,749) | 17,660,517 |
Beginning of period | 193,270,320 | 175,609,803 |
End of period | $171,407,571 | $193,270,320 |
Undistributed net investment income | $ 3,842,074 | $ 3,484,911 |
See Notes to Financial Statements.
30 SEMI-ANNUAL REPORT JANUARY 31, 2011
Statements of Changes in Net Assets BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
Six Months | ||
Ended | ||
January 31, | Year Ended | |
2011 | July 31, | |
Increase (Decrease) in Net Assets Applicable to Common Shareholders: | (Unaudited) | 2010 |
Operations | ||
Net investment income | $ 6,544,765 | $ 14,162,374 |
Net realized gain (loss) | 1,351,958 | (95,538) |
Net change in unrealized appreciation/depreciation | (20,459,629) | 14,265,738 |
Dividends and distributions to Preferred Shareholders from: | ||
Net investment income | (312,082) | (622,979) |
Net realized gain | (4,522) | — |
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations | (12,879,510) | 27,709,595 |
Dividends and Distributions to Common Shareholders From | ||
Net investment income | (6,110,745) | (12,015,943) |
Net realized gain | (89,313) | — |
Decrease in net assets resulting from dividends and distributions to Common Shareholders | (6,200,058) | (12,015,943) |
Capital Share Transactions | ||
Reinvestment of common dividends | 281,803 | — |
Net Assets Applicable to Common Shareholders | ||
Total increase (decrease) in net assets applicable to Common Shareholders | (18,797,765) | 15,693,652 |
Beginning of period | 216,433,480 | 200,739,828 |
End of period | $197,635,715 | $216,433,480 |
Undistributed net investment income | $ 4,710,004 | $ 4,588,066 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT JANUARY 31, 2011 31
Statements of Cash Flows | ||
BlackRock | ||
MuniYield | BlackRock | |
California | MuniYield | |
Fund Inc. | Investment Fund | |
Six Months Ended January 31, 2011 (Unaudited) | (MYC) | (MYF) |
Cash Provided by Operating Activities | ||
Net decrease in net assets resulting from operations, excluding dividends to Preferred Shareholders | $ (24,353,051) | $ (15,655,423) |
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities: | ||
Increase in interest receivable | (834,771) | (370,452) |
Decrease in cash pledged as collateral for financial futures contracts | 41,000 | — |
Decrease in investment advisory fees payable | (15,084) | (10,557) |
Increase in interest expense and fees payable | 34,396 | 11,123 |
Increase (decrease) in other affiliates payable | (361) | 138 |
Decrease in other accrued expenses payable | (60,557) | (40,769) |
Decrease in margin variation payable | (17,969) | — |
Increase (decrease) in Officer’s and Directors’ fees payable | 362 | (64) |
Net realized and unrealized gain on investments | 34,648,228 | 22,354,071 |
Amortization of premium and accretion of discount on investments | 698,558 | 148,288 |
Proceeds from sales of long-term investments | 90,850,277 | 52,327,308 |
Purchases of long-term investments | (92,958,408) | (60,646,599) |
Net proceeds from sales of short-term securities | 3,738,201 | 4,123,948 |
Cash provided by operating activities | 11,770,821 | 2,241,012 |
Cash Used for Financing Activities | ||
Cash receipts from trust certificates | 11,503,547 | 8,475,000 |
Cash payments on trust certificates | (13,329,698) | (4,545,149) |
Cash dividends paid to Common Shareholders | (9,604,161) | (6,003,664) |
Cash dividends paid to Preferred Shareholders | (340,509) | (167,971) |
Increase in custodian bank payable | — | 772 |
Cash used for financing activities | (11,770,821) | (2,241,012) |
Cash | ||
Net change in cash | — | — |
Cash at beginning of period | — | — |
Cash at end of period | — | — |
Cash Flow Information | ||
Cash paid during the period for interest and fees | $ 457,974 | $ 257,114 |
Noncash Financing Activities | ||
Capital shares issues in reinvestment of dividends paid to Common Shareholders | — | $ 134,159 |
A Statement of Cash Flows is presented when a Fund had a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to average | ||
total assets. |
See Notes to Financial Statements.
32 SEMI-ANNUAL REPORT JANUARY 31, 2011
Financial Highlights | BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE) | |||||||
Six Months | Period | |||||||
Ended | June 1, | |||||||
January 31, | Year Ended July 31, | 2008 | Year Ended May 31, | |||||
2011 | to July 31, | |||||||
(Unaudited) | 2010 | 2009 | 2008 | 2008 | 2007 | 2006 | ||
Per Share Operating Performance | ||||||||
Net asset value, beginning of period | $ 14.50 | $ 12.99 | $ 13.51 | $ 14.05 | $ 14.91 | $ 14.66 | $ 15.05 | |
Net investment income1 | 0.44 | 0.88 | 0.87 | 0.14 | 0.91 | 0.90 | 0.87 | |
Net realized and unrealized gain (loss) | (0.94) | 1.40 | (0.55) | (0.53) | (0.86) | 0.24 | (0.37) | |
Dividends to Preferred Shareholders | ||||||||
from net investment income | (0.05) | (0.10) | (0.20) | (0.04) | (0.27) | (0.25) | (0.20) | |
Net increase (decrease) from investment operations | (0.55) | 2.18 | 0.12 | (0.43) | (0.22) | 0.89 | 0.30 | |
Dividends to Common Shareholders | ||||||||
from net investment income | (0.36) | (0.67) | (0.64) | (0.11) | (0.64) | (0.64) | (0.69) | |
Net asset value, end of period | $ 13.59 | $ 14.50 | $ 12.99 | $ 13.51 | $ 14.05 | $ 14.91 | $ 14.66 | |
Market price, end of period | $ 12.66 | $ 13.54 | $ 11.60 | $ 12.12 | $ 12.81 | $ 13.93 | $ 13.03 | |
Total Investment Return2 | ||||||||
Based on net asset value | (3.72)% 3 | 17.67% | 2.26% | (3.01)%3 | (1.10)% | 6.57% | 2.52% | |
Based on market price | (3.95)%3 | 23.05% | 1.79% | (4.56)%3 | (3.48)% | 12.02% | 2.03% | |
Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||
Total expenses4 | 1.21%5 | 1.20% | 1.33% | 1.39%6 | 1.28% | 1.31% | 1.33% | |
Total expenses after fees waived and paid indirectly4 | 1.21%5 | 1.12% | 1.15% | 1.15%6 | 1.04% | 1.08% | 1.10% | |
Total expenses after fees waived and paid indirectly | ||||||||
and excluding interest expense and fees4,7 | 1.19%5 | 1.12% | 1.11% | 1.11%6 | 1.04% | 1.08% | 1.10% | |
Net investment income4 | 6.04%5 | 6.30% | 7.01% | 6.36%6 | 6.31% | 6.01% | 5.89% | |
Dividends to Preferred Shareholders | 0.73%5 | 0.75% | 1.59% | 1.84%6 | 1.89% | 1.66% | 1.32% | |
Net investment income to Common Shareholders | 5.31%5 | 5.55% | 5.42% | 4.52%6 | 4.42% | 4.35% | 4.57% | |
Supplemental Data | ||||||||
Net assets applicable to Common Shareholders, | ||||||||
end of period (000) | $ 57,179 | $ 61,010 | $ 54,642 | $ 56,830 | $ 59,101 | $ 62,701 | $ 61,672 | |
Preferred Shares outstanding at $25,000 | ||||||||
liquidation preference, end of period (000) | $ 29,625 | $ 29,625 | $ 29,625 | $ 29,625 | $ 31,000 | $ 31,000 | $ 31,000 | |
Portfolio turnover | 12% | 27% | 32% | 2% | 21% | 29% | 49% | |
Asset coverage, end of period per $1,000 | $ 2,9308 | $ 3,0608 | $ 2,8448 | $ 2,9188 | $ 2,9068 | $ 3,0238 | $ 2,989 |
1 Based on average Common Shares outstanding.
2 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
3 Aggregate total investment return.
4 Do not reflect the effect of dividends to Preferred Shareholders.
5 Annualized.
6 Annualized. Certain non-recurring expenses have been included in the ratio but not annualized. If these expenses were annualized, the ratio of the total expenses, total expenses after
fees waived and paid indirectly, total expenses after fees waived and fees paid indirectly and excluding interest expense and fees, net investment income and net investment income to
Common Shareholders would have been 1.79%, 1.55%, 1.50%, 5.96% and 4.12%, respectively.
7 Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
8 Asset coverage per Preferred Share at $25,000 liquidation preference for the periods ended January 2011, July 2010, July 2009, July 2008, May 2008 and May 2007 are
$73,253, $76,492, $71,119, $72,970, $72,676 and $75,573, respectively.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT JANUARY 31, 2011 33
Financial Highlights | BlackRock MuniYield Arizona Fund, Inc. (MZA) | |||||||
Six Months | Period | |||||||
Ended | November 1, | |||||||
January 31, | Year Ended July 31, | 2007 | Year Ended October 31, | |||||
2011 | to July 31, | |||||||
(Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
Per Share Operating Performance | ||||||||
Net asset value, beginning of period | $ 13.73 | $ 12.40 | $ 12.81 | $ 13.96 | $ 14.53 | $ 14.39 | $ 15.04 | |
Net investment income1 | 0.45 | 0.93 | 0.95 | 0.72 | 0.95 | 0.98 | 0.97 | |
Net realized and unrealized gain (loss) | (1.27) | 1.28 | (0.47) | (1.00) | (0.46) | 0.36 | (0.49) | |
Dividends and distributions to Preferred Shareholders from: | ||||||||
Net investment income | (0.03) | (0.06) | (0.19) | (0.19) | (0.29) | (0.26) | (0.14) | |
Net realized gain | — | — | — | (0.05) | (0.02) | (0.02) | (0.00)2 | |
Net increase (decrease) from investment operations | (0.85) | 2.15 | 0.29 | (0.52) | 0.18 | 1.06 | 0.34 | |
Dividends and distributions to Common Shareholders from: | ||||||||
Net investment income | (0.42) | (0.82) | (0.70) | (0.51) | (0.69) | (0.80) | (0.92) | |
Net realized gain | — | — | — | (0.12) | (0.06) | (0.12) | (0.02) | |
Total dividends and distributions to Common Shareholders | (0.42) | (0.82) | (0.70) | (0.63) | (0.75) | (0.92) | (0.94) | |
Capital charges with respect to issuance of Preferred Shares | — | — | — | — | — | 0.003 | (0.05) | |
Net asset value, end of period | $ 12.46 | $ 13.73 | $ 12.40 | $ 12.81 | $ 13.96 | $ 14.53 | $ 14.39 | |
Market price, end of period | $ 12.13 | $ 13.67 | $ 12.85 | $ 13.94 | $ 13.66 | $ 14.79 | $ 16.03 | |
Total Investment Return4 | ||||||||
Based on net asset value | (6.37)%5 | 17.75% | 3.27% | (3.79)%5 | 1.29% | 7.47% | 1.91% | |
Based on market price | (8.45)%5 | 13.13% | (1.66)% | 6.99%5 | (2.63)% | (1.80)% | 13.07% | |
Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||
Total expenses6 | 1.21%7 | 1.25% | 1.46% | 1.61%7 | 1.76% | 1.71% | 1.52% | |
Total expenses after fees waived and paid indirectly6 | 1.21%7 | 1.24% | 1.42% | 1.59%7 | 1.75% | 1.70% | 1.51% | |
Total expenses after fees waived and paid indirectly | ||||||||
and excluding interest expense and fees6,8 | 1.19%7 | 1.22% | 1.36% | 1.40%7 | 1.37% | 1.33% | 1.20% | |
Net investment income6 | 6.64%7 | 6.99% | 8.16% | 7.19%7 | 6.65% | 6.90% | 6.54% | |
Dividends to Preferred Shareholders | 0.43%7 | 0.44% | 1.61% | 1.94%7 | 2.04% | 1.83% | 0.91% | |
Net investment income to Common Shareholders | 6.21%7 | 6.56% | 6.55% | 5.25%7 | 4.61% | 5.07% | 5.63% | |
Supplemental Data | ||||||||
Net assets applicable to Common Shareholders, | ||||||||
end of period (000) | $ 56,847 | $ 62,618 | $ 56,449 | $ 58,218 | $ 63,228 | $ 65,611 | $ 64,630 | |
Preferred Shares outstanding at $25,000 | ||||||||
liquidation preference, end of period (000) | $ 38,800 | $ 38,800 | $ 38,800 | $ 40,300 | $ 40,300 | $ 40,300 | $ 40,300 | |
Portfolio turnover | 4% | 25% | 39% | 13% | 31% | 31% | 28% | |
Asset coverage per Preferred Share at $25,000 | ||||||||
liquidation preference, end of period | $ 61,630 | $ 65,350 | $ 61,375 | $ 61,122 | $ 64,232 | $ 65,708 | $ 65,098 |
1 Based on average Common Shares outstanding.
2 Amount is less than $(0.01) per share.
3 Amount is less than $0.01 per share.
4 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
5 Aggregate total investment return.
6 Do not reflect the effect of dividends to Preferred Shareholders.
7 Annualized.
8 Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
See Notes to Financial Statements.
34 SEMI-ANNUAL REPORT JANUARY 31, 2011
Financial Highlights BlackRock MuniYield California Fund, Inc. (MYC)
Six Months | Period | |||||||
Ended | November 1, | |||||||
January 31, | Year Ended July 31, | 2007 | Year Ended October 31, | |||||
2011 | to July 31, | |||||||
(Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
Per Share Operating Performance | ||||||||
Net asset value, beginning of period | $ 14.76 | $ 13.47 | $ 13.71 | $ 14.60 | $ 15.11 | $ 14.73 | $ 15.27 | |
Net investment income1 | 0.49 | 0.94 | 0.91 | 0.69 | 0.93 | 0.96 | 0.93 | |
Net realized and unrealized gain (loss) | (1.63) | 1.21 | (0.33) | (0.88) | (0.49) | 0.37 | (0.46) | |
Dividends to Preferred Shareholders | ||||||||
from net investment income | (0.02) | (0.03) | (0.13) | (0.20) | (0.29) | (0.25) | (0.13) | |
Net increase (decrease) from investment operations | (1.16) | 2.12 | 0.45 | (0.39) | 0.15 | 1.08 | 0.34 | |
Dividends to Common Shareholders | ||||||||
from net investment income | (0.46) | (0.83) | (0.69) | (0.50) | (0.66) | (0.70) | (0.86) | |
Capital charges with respect to issuance of Preferred Shares | — | — | — | — | — | 0.002 | (0.02) | |
Net asset value, end of period | $ 13.14 | $ 14.76 | $ 13.47 | $ 13.71 | $ 14.60 | $ 15.11 | $ 14.73 | |
Market price, end of period | $ 12.75 | $ 14.44 | $ 12.44 | $ 13.07 | $ 13.25 | $ 14.00 | $ 13.37 | |
Total Investment Return3 | ||||||||
Based on net asset value | (8.00)%4 | 16.59% | 4.64% | (2.55)%4 | 1.36% | 8.03% | 2.59% | |
Based on market price | (8.75)%4 | 23.51% | 1.37% | 2.37%4 | (0.72)% | 10.28% | (1.46)% | |
Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||
Total expenses5 | 1.37%6 | 1.19% | 1.49% | 1.49%6 | 1.77% | 1.52% | 1.13% | |
Total expenses after fees waived5 | 1.36%6 | 1.18% | 1.47% | 1.45%6 | 1.75% | 1.51% | 1.13% | |
Total expenses after fees waived and excluding | ||||||||
interest expense and fees5,7 | 1.04%6 | 0.99% | 1.08% | 1.06%6 | 1.06% | 1.06% | 0.98% | |
Net investment income5 | 6.68%6 | 6.53% | 7.07% | 6.24%6 | 6.29% | 6.51% | 6.16% | |
Dividends to Preferred Shareholders | 0.22%6 | 0.22% | 0.99% | 1.83%6 | 1.93% | 1.70% | 0.84% | |
Net investment income to Common Shareholders | 6.46%6 | 6.31% | 6.08% | 4.41%6 | 4.36% | 4.81% | 5.32% | |
Supplemental Data | ||||||||
Net assets applicable to Common Shareholders, | ||||||||
end of period (000) | $ 279,881 | $ 314,326 | $ 286,805 | $ 292,002 | $ 310,934 | $ 321,701 | $ 313,708 | |
Preferred Shares outstanding at $25,000 | ||||||||
liquidation preference, end of period (000) | $ 105,950 | $ 105,950 | $ 105,950 | $ 126,500 | $ 175,000 | $ 175,000 | $ 175,000 | |
Portfolio turnover | 17% | 41% | 38% | 30% | 41% | 39% | 53% | |
Asset coverage per Preferred Share at $25,000 | ||||||||
liquidation preference, end of period | $ 91,044 | $ 99,173 | $ 92,679 | $ 82,724 | $ 69,452 | $ 70,985 | $ 69,818 |
1 Based on average Common Shares outstanding.
2 Amount is less than $0.01 per share.
3 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Aggregate total investment return.
5 Do not reflect the effect of dividends to Preferred Shareholders.
6 Annualized.
7 Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT JANUARY 31, 2011 35
Financial Highlights BlackRock MuniYield Investment Fund (MYF)
Six Months | Period | |||||||
Ended | November 1, | |||||||
January 31, | Year Ended July 31, | 2007 | Year Ended October 31, | |||||
2011 | to July 31, | |||||||
(Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
Per Share Operating Performance | ||||||||
Net asset value, beginning of period | $ 14.26 | $ 12.95 | $ 13.59 | $ 14.53 | $ 15.11 | $ 14.91 | $ 15.27 | |
Net investment income1 | 0.49 | 0.96 | 0.96 | 0.73 | 0.99 | 0.99 | 0.98 | |
Net realized and unrealized gain (loss) | (1.66) | 1.18 | (0.77) | (0.94) | (0.57) | 0.28 | (0.26) | |
Dividends to Preferred Shareholders | ||||||||
from net investment income | (0.01) | (0.02) | (0.13) | (0.21) | (0.30) | (0.26) | (0.14) | |
Net increase (decrease) from investment operations | (1.18) | 2.12 | 0.06 | (0.42) | 0.12 | 1.01 | 0.58 | |
Dividends to Common Shareholders | ||||||||
from net investment income | (0.45) | (0.81) | (0.70) | (0.52) | (0.70) | (0.81) | (0.92) | |
Capital charges with respect to issuance of Preferred Shares | — | — | — | — | — | (0.00)2 | (0.02) | |
Net asset value, end of period | $ 12.63 | $ 14.26 | $ 12.95 | $ 13.59 | $ 14.53 | $ 15.11 | $ 14.91 | |
Market price, end of period | $ 12.62 | $ 14.36 | $ 11.72 | $ 11.91 | $ 12.86 | $ 14.35 | $ 14.93 | |
Total Investment Return3 | ||||||||
Based on net asset value | (8.44)%4 | 17.12% | 1.93% | (2.52)%4 | 1.21% | 7.24% | 3.98% | |
Based on market price | (9.15)%4 | 30.32% | 5.26% | (3.48)%4 | (5.68)% | 1.71% | 11.34% | |
Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||
Total expenses5 | 1.31%6 | 1.26% | 1.35% | 1.42%6 | 1.47% | 1.44% | 1.25% | |
Total expenses after fees waived5 | 1.31%6 | 1.26% | 1.34% | 1.40%6 | 1.46% | 1.42% | 1.25% | |
Total expenses after fees waived and excluding | ||||||||
interest expense and fees5,7 | 1.03%6 | 1.02% | 1.12% | 1.10%6 | 1.10% | 1.09% | 1.05% | |
Net investment income5 | 7.06%6 | 6.92% | 7.66% | 6.77%6 | 6.72% | 6.63% | 6.46% | |
Dividends to Preferred Shareholders | 0.18%6 | 0.18% | 1.09% | 1.92%6 | 2.01% | 1.75% | 0.95% | |
Net investment income to Common Shareholders | 6.88%6 | 6.74% | 6.57% | 4.85%6 | 4.71% | 4.88% | 5.51% | |
Supplemental Data | ||||||||
Net assets applicable to Common Shareholders, | ||||||||
end of period (000) | $ 171,408 | $ 193,270 | $ 175,610 | $ 184,315 | $ 197,014 | $ 204,865 | $ 202,042 | |
Preferred Shares outstanding at $25,000 | ||||||||
liquidation preference, end of period (000) | $ 59,475 | $ 59,475 | $ 59,475 | $ 90,825 | $ 110,000 | $ 110,000 | $ 110,000 | |
Portfolio turnover | 16% | 41% | 63% | 22% | 25% | 46% | 42% | |
Asset coverage per Preferred Share at $25,000 | ||||||||
liquidation preference, end of period | $ 97,052 | $ 106,242 | $ 98,819 | $ 75,742 | $ 69,790 | $ 71,574 | $ 70,920 |
1 Based on average Common Shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Aggregate total investment return.
5 Do not reflect the effect of dividends to Preferred Shareholders.
6 Annualized.
7 Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
See Notes to Financial Statements.
36 SEMI-ANNUAL REPORT JANUARY 31, 2011
Financial Highlights BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
Six Months | Period | |||||||
Ended | December 1, | |||||||
January 31, | Year Ended July 31, | 2007 | Year Ended November 30, | |||||
2011 | to July 31, | |||||||
(Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
Per Share Operating Performance | ||||||||
Net asset value, beginning of period | $ 15.24 | $ 14.13 | $ 14.36 | $ 15.18 | $ 15.90 | $ 15.37 | $ 15.25 | |
Net investment income1 | 0.46 | 1.00 | 0.98 | 0.62 | 1.01 | 1.00 | 1.01 | |
Net realized and unrealized gain (loss) | (1.34) | 1.00 | (0.34) | (0.79) | (0.74) | 0.54 | 0.18 | |
Dividends to Preferred Shareholders | ||||||||
from net investment income | (0.02) | (0.04) | (0.15) | (0.18) | (0.29) | (0.25) | (0.16) | |
Net increase (decrease) from investment operations | (0.90) | 1.96 | 0.49 | (0.35) | (0.02) | 1.29 | 1.03 | |
Dividends to Common Shareholders from: | ||||||||
Net investment income | (0.43) | (0.85) | (0.72) | (0.47) | (0.70) | (0.76) | (0.91) | |
Net realized gain | (0.01) | — | — | — | — | — | — | |
Total dividends and distributions | (0.44) | (0.85) | (0.72) | (0.47) | (0.70) | (0.76) | (0.91) | |
Capital charges with respect to issuance of Preferred Shares | — | — | — | — | — | — | (0.00)2 | |
Net asset value, end of period | $ 13.90 | $ 15.24 | $ 14.13 | $ 14.36 | $ 15.18 | $ 15.90 | $ 15.37 | |
Market price, end of period | $ 13.30 | $ 15.19 | $ 13.49 | $ 13.52 | $ 13.66 | $ 15.47 | $ 14.38 | |
Total Investment Return3 | ||||||||
Based on net asset value | (6.05)%4 | 14.34% | 4.50% | (2.17)%4 | 0.11% | 8.83% | 7.08% | |
Based on market price | (9.81)%4 | 19.38% | 5.96% | 2.35%4 | (7.41)% | 13.17% | 3.72% | |
Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||
Total expenses5 | 1.01%6 | 1.01% | 1.15% | 1.22%6 | 1.28% | 1.44% | 1.39% | |
Total expenses after fees waived5 | 1.00%6 | 1.00% | 1.14% | 1.20%6 | 1.27% | 1.44% | 1.39% | |
Total expenses after fees waived and excluding | ||||||||
interest expense and fees5,7 | 0.97%6 | 0.98% | 1.05% | 1.13%6 | 1.10% | 1.09% | 1.09% | |
Net investment income5 | 6.12%6 | 6.71% | 7.21% | 6.27%6 | 6.56% | 6.50% | 6.47% | |
Dividends to Preferred Shareholders | 0.30%6 | 0.30% | 1.12% | 1.85%6 | 1.85% | 1.65% | 1.05% | |
Net investment income to Common Shareholders | 5.82%6 | 6.41% | 6.09% | 4.42%6 | 4.71% | 4.85% | 5.42% | |
Supplemental Data | ||||||||
Net assets applicable to Common Shareholders, | ||||||||
end of period (000) | $ 197,636 | $ 216,433 | $ 200,740 | $ 204,022 | $ 215,585 | $ 225,855 | $ 218,250 | |
Preferred Shares outstanding at $25,000 | ||||||||
liquidation preference, end of period (000) | $ 102,200 | $ 102,200 | $ 102,200 | $ 104,725 | $ 119,000 | $ 119,000 | $ 119,000 | |
Portfolio turnover | 9% | 15% | 21% | 11% | 18% | 9% | 32% | |
Asset coverage per Preferred Share at $25,000 | ||||||||
liquidation preference, end of period | $ 73,348 | $ 77,946 | $ 74,107 | $ 73,709 | $ 70,305 | $ 72,452 | $ 70,858 |
1 Based on average Common Shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable,
total investment returns exclude the effects of sales charges and include the reinvestment of dividends and distributions.
4 Aggregate total investment return.
5 Do not reflect effect of dividends to Preferred Shareholders.
6 Annualized.
7 Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT JANUARY 31, 2011 37
Notes to Financial Statements (Unaudited)
1. Organization and Significant Accounting Policies:
BlackRock Muni New York Intermediate Duration Fund, Inc. (“MNE”),
BlackRock MuniYield Arizona Fund, Inc. (“MZA”), BlackRock MuniYield
California Fund, Inc. (“MYC”), BlackRock MuniYield Investment Fund
(“MYF”) and BlackRock MuniYield New Jersey Fund, Inc. (“MYJ”) (collec-
tively, the “Funds” or individually as a “Fund”) are registered under the
Investment Company Act of 1940, as amended (the “1940 Act”), as non-
diversified, closed-end management investment companies. MNE, MZA,
MYC and MYJ are organized as Maryland corporations. MYF is organized
as a Massachusetts business trust. The Funds’ financial statements are
prepared in conformity with accounting principles generally accepted in
the United States of America (“US GAAP”), which may require management
to make estimates and assumptions that affect the reported amounts and
disclosures in the financial statements. Actual results could differ from
those estimates. The Boards of Directors and the Board of Trustees of the
Funds are referred to throughout this report as the “Board of Directors” or
the “Board.” The Funds determine, and make available for publication the
net asset value of their Common Shares on a daily basis.
The following is a summary of significant accounting policies followed by
the Funds:
Valuation: The Funds fair value their financial instruments at market value
using independent dealers or pricing services under policies approved by
the Board. 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 infor-
mation with respect to various relationships between investments. Financial
futures contracts traded on exchanges are valued at their last sale price.
Short-term securities with remaining maturities of 60 days or less may be
valued at amortized cost, which approximates fair value. Investments in
open-end registered investment companies are valued at net asset value
each business day.
In the event that application of these methods of valuation results in a
price for an investment which is deemed not to be representative of the
market value of such investment or is not available, the investment will
be valued in accordance with a policy approved by the Board as reflecting
fair value (“Fair Value Assets”). When determining the price for Fair Value
Assets, the investment advisor and/or the sub-advisor seeks to determine
the price that each Fund might reasonably expect to receive from the
current sale of that asset in an arm’s-length transaction. Fair value det-
erminations shall be based upon all available factors that the investment
advisor and/or sub-advisor deems relevant. The pricing of all Fair Value
Assets is subsequently reported to the Board or a committee thereof.
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 trans-
actions normally occurs within a month or more after the purchase or sale
commitment is made. The Funds may purchase securities under such con-
ditions 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, inc-
luding 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 on
the Schedules of Investments, if any.
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.
Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds
leverage their assets through the use of TOBs. A TOB is established by a
third party sponsor forming a special purpose entity, into which one or
more funds, or an agent on behalf of the funds, transfers municipal bonds.
Other funds managed by the investment advisor may also contribute
municipal bonds to a TOB into which a Fund has contributed bonds. A TOB
typically issues two classes of beneficial interests: short-term floating rate
certificates, which are sold to third party investors, and residual certificates
(“TOB Residuals”), which are generally issued to the participating funds
that made the transfer. The TOB Residuals held by a Fund include the right
of a Fund (1) to cause the holders of a proportional share of the short-
term floating rate certificates to tender their certificates at par, including
during instances of a rise in short-term interest rates, and (2) to transfer,
within seven days, a corresponding share of the municipal bonds from the
TOB to a Fund. The TOB may also be terminated without the consent of a
Fund upon the occurrence of certain events as defined in the TOB agree-
ments. Such termination events may include the bankruptcy or default of
the municipal bond, a substantial downgrade in credit quality of the munic-
ipal bond, the inability of the TOB to obtain quarterly or annual renewal of
the liquidity support agreement, a substantial decline in market value of
the municipal bond or the inability to remarket the short-term floating rate
certificates to third party investors. During the six months ended January
31, 2011, no TOBs that the Funds participated in were terminated without
the consent of the Funds.
The cash received by the TOB from the sale of the short-term floating rate
certificates, less transaction expenses, is paid to a Fund, which typically
invests the cash in additional municipal bonds. Each Fund’s transfer of the
municipal bonds to a TOB is accounted for as a secured borrowing, there-
fore the municipal bonds deposited into a TOB are presented in the Funds’
Schedules of Investments and the proceeds from the issuance of the short-
term floating rate certificates are shown as trust certificates in the
Statements of Assets and Liabilities.
Interest income, including amortization and accretion of premiums and dis-
counts, 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
38 SEMI-ANNUAL REPORT JANUARY 31, 2011
Notes to Financial Statements (continued)
to a TOB are shown as interest expense and fees in the Statements of
Operations. The short-term floating rate certificates have interest rates that
generally reset weekly and their holders have the option to tender certifi-
cates to the TOB for redemption at par at each reset date. At January 31,
2011, the aggregate value of the underlying municipal bonds transferred
to TOBs, the related liability for trust certificates and the range of interest
rates on the liability for trust certificates were as follows:
Underlying | |||
Municipal | |||
Bonds | Liability for | Range of | |
Transferred | Trust | Interest | |
to TOBs | Certificates | Rates | |
MNE | $ 2,254,882 | $ 1,125,000 | 0.29% — 0.56% |
MZA | $ 2,979,420 | $ 1,500,000 | 0.29% |
MYC | $211,748,282 | $115,992,503 | 0.29% — 0.36% |
MYF | $110,986,578 | $ 62,174,500 | 0.29% — 0.44% |
MYJ | $ 13,574,117 | $ 8,653,701 | 0.29% — 0.35% |
For the six months ended January 31, 2011, the Funds’ average trust
certificates outstanding and the daily weighted average interest rates,
including fees, were as follows:
Average Trust | Daily Weighted | |
Certificates | Average | |
Outstanding | Interest Rate | |
MNE | $ 1,125,000 | 0.83% |
MZA | $ 1,500,000 | 0.85% |
MYC | $122,251,769 | 0.80% |
MYF | $ 63,847,695 | 0.84% |
MYJ | $ 8,653,701 | 0.75% |
Should short-term interest rates rise, the Funds’ investments in TOBs may
adversely affect the Funds’ net investment income and distributions to
shareholders. Also, fluctuations in the market values of municipal bonds
deposited into the TOB may adversely affect the Funds’ net asset values
per share.
Segregation and Collateralization: In cases in which the 1940 Act and
the interpretive positions of the Securities and Exchange Commission
(“SEC”) require that the Funds either deliver collateral or segregate assets
in connection with certain investments (e.g., financial futures contracts),
the Funds will, consistent with SEC rules and/or certain interpretive letters
issued by the SEC, segregate collateral or designate on their books and
records cash or other liquid securities having a market value at least equal
to the amount that would otherwise be required to be physically segre-
gated. Furthermore, based on requirements and agreements with certain
exchanges and third party broker-dealers, each party has requirements
to deliver/deposit securities as collateral for certain investments.
Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the transac-
tions are entered into (the trade dates). Realized gains and losses on
investment transactions are determined on the identified cost basis.
Interest income, including amortization and accretion of premiums and
discounts on debt securities, is recognized on the accrual basis.
Dividends and Distributions: Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on
the ex-dividend dates. The amount and timing of dividends and distributions
are determined in accordance with federal income tax regulations, which
may differ from US GAAP. Dividends and distributions to Preferred
Shareholders are accrued and determined as described in Note 6.
Income Taxes: It is each Fund’s policy to comply with the requirements of
the Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies and to distribute substantially all of its taxable
income to its shareholders. Therefore, no federal income tax provision
is required.
Each Fund files US federal and various state and local tax returns. No
income tax returns are currently under examination. The statute of limita-
tions on each Fund’s US federal tax return remains open for each of the
four periods ended as follows:
Year Ended | Period | Year Ended | |
MNE | July 31, 2010, | June 1, 2008 to | May 31, 2007, |
July 31, 2009 | July 31, 2008 | May 31, 2008 | |
MZA | July 31, 2010, | November 1, 2007 to | |
July 31, 2009 | July 31, 2008 | October 31, 2007 | |
MYC | July 31, 2010, | November 1, 2007 to | |
July 31, 2009 | July 31, 2008 | October 31, 2007 | |
MYF | July 31, 2010, | November 1, 2007 to | |
July 31, 2009 | July 31, 2008 | October 31, 2007 | |
MYJ | July 31, 2010, | December 1, 2007 to | |
July 31, 2009 | July 31, 2008 | November 30, 2007 |
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 does not believe there are any uncertain tax positions that
require recognition of a tax liability.
Deferred Compensation and BlackRock Closed-End Share Equivalent
Investment Plan: Under the deferred compensation plan approved by each
Fund’s Board, non-interested 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 approximately 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 deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of each
Fund. Each Fund may, however, elect to invest in common shares of certain
other BlackRock Closed-End Funds selected by the Independent Directors
in order to match its deferred compensation obligations. Investments to
cover each Fund’s deferred compensation liability, if any, are included in
other assets in the Statements of Assets and Liabilities. Dividends and dis-
tributions from the BlackRock Closed-End Fund investments under the plan
if any, are included in income — affiliated in the Statements of Operations.
Other: Expenses directly related to a Fund are charged to that Fund. Other
operating expenses shared by several funds are pro rated 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
SEMI-ANNUAL REPORT JANUARY 31, 2011 39
Notes to Financial Statements (continued)
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.
2. Derivative Financial Instruments:
The Funds engage in various portfolio investment strategies using derivative
contracts both to increase the returns of the Funds and to economically
hedge, or protect, their exposure to certain risks such as interest rate risk.
These contracts may be transacted on an exchange.
Losses may arise if the value of the contract decreases due to an unfavor-
able change in the market rates or values of the underlying instrument or if
the counterparty does not perform under the contract. Counterparty risk
related to exchange-traded financial futures contracts is deemed to be
minimal due to the protection against defaults provided by the exchange
on which these contracts trade.
Financial Futures Contracts: The Funds purchase or sell 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 a Fund and the
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, 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 settlement date. 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 margin variation and are recorded by the Funds
as unrealized gains or losses. 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 transactions involves the risk of an
imperfect correlation in the movements in the price of financial futures
contracts, interest rates and the underlying assets.
Derivative Instruments Categorized by Risk Exposure: | ||
The Effect of Derivative Instruments in the Statements of Operations | ||
Six Months Ended January 31, 2011 | ||
Net Realized Loss from | ||
MZA | MYC | |
Interest rate contracts: | ||
Financial futures contracts | $ (33,799) | $ (70,024) |
Net Change in Unrealized | ||
Appreciation/Depreciation on | ||
MZA | MYC | |
Interest rate contracts: | ||
Financial futures contracts | $ 25,901 | $ 53,571 |
For the six months ended January 31, 2011, the average quarterly
balances of outstanding derivative financial instruments were as follows:
MZA | MYC | |
Financial futures contracts: | ||
Average number of contracts sold | 6 | 13 |
Average notional value of contracts sold | $ 746,801 | $ 1,555,836 |
3. Investment Advisory Agreement and Other Transactions
with Affiliates:
The PNC Financial Services Group, Inc. (“PNC”), Bank of America
Corporation (“BAC”) and Barclays Bank PLC (“Barclays”) are the largest
stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership
structure, PNC is an affiliate of the Funds for 1940 Act purposes, but
BAC and Barclays are not.
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 necessary to the operations of each
Fund. For such services, each Fund pays the Manager a monthly fee at the
following annual rates of each Fund’s average daily net assets as follows:
MNE | 0.55% |
MZA | 0.50% |
MYC | 0.50% |
MYF | 0.50% |
MYJ | 0.50% |
Average daily net assets are the average daily value of each Fund’s total
assets minus the sum of its 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 indi-
rectly 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 through each Fund’s investment in other affil-
iated investment companies, if any. These amounts are shown as fees
waived by advisor in the Statements of Operations. For the six months
ended January 31, 2011, the amounts waived were as follows:
MNE | $ 1,215 |
MZA | $ 1,495 |
MYC | $10,989 |
MYF | $ 908 |
MYJ | $10,925 |
The Manager entered into a sub-advisory agreement with BlackRock
Investment Management, LLC (“BIM”), an affiliate of the Manager. The
Manager pays BIM, for services it provides, a monthly fee that is a percent-
age of the investment advisory fees paid by each Fund to the Manager.
For the period August 1, 2010 through December 31, 2010, each Fund
reimbursed the Manager for certain accounting services, which are
40 SEMI-ANNUAL REPORT JANUARY 31, 2011
Notes to Financial Statements (continued)
included in accounting services in the Statements of Operations. The reim-
bursements were as follows:
MNE | $ 362 |
MZA | $ 419 |
MYC | $2,255 |
MYF | $1,531 |
MYJ | $3,084 |
Effective January 1, 2011, the Funds no longer reimburse the Manager for
accounting services.
Certain officers and/or directors of the Funds are officers and/or directors
of BlackRock or its affiliates. The Funds reimburse the Manager for com-
pensation paid to the Funds’ Chief Compliance Officer.
4. Investments:
Purchases and sales of investments, excluding short-term securities, for the
six months ended January 31, 2011, were as follows:
Purchases | Sales | |
MNE | $10,883,480 | $11,325,458 |
MZA | $ 7,095,247 | $ 3,746,712 |
MYC | $87,514,346 | $95,067,859 |
MYF | $51,174,504 | $48,883,654 |
MYJ | $38,450,162 | $28,860,863 |
5. Concentration, Market and Credit Risk:
MNE, MZA, MYC and MYJ invest a substantial amount of their assets in
issuers located in a single state or limited number of states. Please see
the Schedules of Investments for concentrations in specific states.
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 fluct-
uations. Similar to issuer credit risk, the Funds may be exposed to count-
erparty 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 Funds’ Statements of Assets and Liabilities, less any
collateral held by the Funds.
As of January 31, 2011, MZA and MYC invest a significant portion of
their assets in the County/City/Special District/School District and Utilities
sectors. MYF invests a significant portion of its assets in securities in the
County/City/Special District/School District sector. MYJ invests a significant
portion of its assets in securities in the State sector. Changes in economic
conditions affecting the County/City/Special District/School District, State
and Utilities sectors would have a greater impact on the Funds, and could
affect the value, income and/or liquidity of positions in such securities.
6. Capital Share Transactions:
Each Fund, except for MYF, is authorized to issue 200 million shares (MYF
is authorized to issue an unlimited number of shares, par value $0.10 per
share) including Preferred Shares, all of which were initially classified as
Common Shares. Each Board is authorized, however, to reclassify any
unissued shares without approval of Common Shareholders.
Common Shares
For the periods shown, shares issued and outstanding increased by the
following amounts as a result of dividend reinvestment:
Six Months Ended | Year Ended | |
January 31, | July 31, | |
2011 | 2010 | |
MZA | 3,936 | 8,600 |
MYF | 9,258 | — |
MYJ | 18,587 | — |
Shares issued and outstanding remained constant for MNE and MYC
for the six months ended January 31, 2011 and the year ended
July 31, 2010.
Preferred Shares
The Preferred Shares are redeemable at the option of each Fund, in whole
or in part, on any dividend payment date at their liquidation preference
per share plus any accumulated and unpaid dividends whether or not
declared. The Preferred Shares are also subject to mandatory redemption
at their liquidation preference plus any accumulated and unpaid dividends,
whether or not declared, if certain requirements relating to the composition
of the assets and liabilities of a Fund, as set forth in each Fund’s Articles
of Supplementary/ Statement of Preferences/Certificate of Designation
as applicable, (the “Governing Instrument”) are not satisfied.
From time to time in the future, each Fund may effect repurchases of its
Preferred Shares at prices below their liquidation preference as agreed
upon by the Fund and seller. Each Fund also may redeem its Preferred
Shares from time to time as provided in the applicable Governing
Instrument. Each Fund intends to effect such redemptions and/or repur-
chases to the extent necessary to maintain applicable asset coverage
requirements or for such other reasons as the Board may determine.
SEMI-ANNUAL REPORT JANUARY 31, 2011 41
Notes to Financial Statements (continued)
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.
The Funds had the following series of Preferred Shares outstanding,
effective yields and reset frequency as of January 31, 2011:
Reset | ||||
Preferred | Effective Frequency | |||
Series | Shares | Yield | Days | |
MNE | F7 | 1,185 | 1.50%1 | 7 |
MZA | A | 499 | 0.44%2 | 7 |
B | 668 | 0.41%2 | 7 | |
C | 385 | 1.50%1 | 7 | |
MYC | A | 1,453 | 0.41%2 | 28 |
B | 1,453 | 0.44%2 | 7 | |
C | 484 | 0.37%2 | 28 | |
D | 848 | 1.47%1 | 7 | |
MYF | A | 1,189 | 0.44%2 | 7 |
B | 865 | 0.44%2 | 7 | |
C | 325 | 1.50%1 | 7 | |
MYJ | A | 2,061 | 0.44%2 | 7 |
B | 1,288 | 0.44%2 | 7 | |
C | 739 | 1.47%1 | 7 |
1 The maximum applicable rate on this series of Preferred Shares is the higher of
110% plus or times (i) the Telerate/BAA LIBOR or (ii) 90% of Kenny S&P 30-day
High Grade Index rate divided by 1.00 minus the marginal tax rate.
2 The maximum applicable rate on this series of Preferred Shares is the higher of
110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day
High Grade Index rate divided by 1.00 minus the marginal tax rate.
Dividends on seven-day and 28-day Preferred Shares are cumulative at
a rate which is reset every seven or 28 days, respectively, based on the
results of an auction. If the Preferred Shares fail to clear the auction on an
auction date, each Fund is required to pay the maximum applicable rate
on the Preferred Shares to holders of such shares for successive dividend
periods until such time as the shares are successfully auctioned. The
maximum applicable rate on the Preferred Shares is as footnoted in the
preceding table above. The low, high and average dividend rates on the
Preferred Shares for each Fund for the six months ended January 31,
2011 were as follows:
Series | Low | High | Average | |
MNE | F7 | 1.43% | 1.56% | 1.48% |
MZA | A | 0.37% | 0.50% | 0.42% |
B | 0.37% | 0.50% | 0.42% | |
C | 1.43% | 1.56% | 1.48% | |
MYC | A | 0.38% | 0.50% | 0.43% |
B | 0.37% | 0.50% | 0.42% | |
C | 0.37% | 0.46% | 0.43% | |
D | 1.43% | 1.56% | 1.49% | |
MYF | A | 0.37% | 0.50% | 0.42% |
B | 0.37% | 0.50% | 0.42% | |
C | 1.43% | 1.56% | 1.48% | |
MYJ | A | 0.37% | 0.50% | 0.42% |
B | 0.37% | 0.50% | 0.42% | |
C | 1.43% | 1.56% | 1.48% |
Since February 13, 2008, the Preferred Shares of the Funds failed to clear
any of their auctions. As a result, the Preferred Shares dividend rates were
reset to the maximum applicable rate, which ranged from 0.37% to 1.56%
for the six months ended January 31, 2011. A failed auction is not an
event of default for the Funds but it has a negative impact on the liquidity
of Preferred Shares. A failed auction occurs when there are more sellers of
a Fund’s auction rate Preferred Shares than buyers. A successful auction
for the Funds’ Preferred Shares may not occur for some time, if ever, and
even if liquidity does resume, Preferred Shareholders may not have the
ability to sell the Preferred Shares at their liquidation preference.
The Funds may not declare dividends or make other distributions on
Common Shares or purchase any such shares if, at the time of the
declaration, distribution or purchase, asset coverage with respect to
the outstanding Preferred Shares is less than 200%.
The Funds pay commissions of 0.15% on the aggregate principal amount
of all shares that fail to clear their auctions and 0.25% on the aggregate
principal amount of all shares that successfully clear their auctions.
Certain broker dealers have individually agreed to reduce commissions
for failed auctions.
Preferred Shares issued and outstanding remained constant for the six
months ended January 31, 2011 and the year ended July 31, 2010 for
all Funds.
During the period, MZA, MYC, MYF and MYJ entered into a Fee Agreement
(the “Agreement”) with a financial institution in relation to the potential
refinancing of Preferred Shares. Pursuant to the terms of the Agreement,
effective February 1, 2011 MZA, MYC, MYF and MYJ will pay a liquidity fee,
through the earlier of the date of the potential refinancing or July 1, 2011,
at an annual rate of 0.50% of the potential refinancing amounts.
42 SEMI-ANNUAL REPORT JANUARY 31, 2011
Notes to Financial Statements (concluded)
7. Capital Loss Carryforwards:
As of July 31, 2010, the Funds had capital loss carryforwards available to
offset future realized capital gains through the indicated expiration dates:
Expires July 31, | MNE | MZA | MYC |
2011 | — | — | $ 178,107 |
2012 | $ 134,161 | — | — |
2015 | 25,350 | — | — |
2016 | 739,187 | $ 318,483 | 393,490 |
2017 | 501,235 | — | 169,064 |
2018 | 840,312 | 870,092 | 4,870,067 |
Total | $ 2,240,245 | $ 1,188,575 | $ 5,610,728 |
Expires July 31, | MYF | MYJ |
2011 | — | — |
2012 | $ 1,266,217 | $ 239,556 |
2015 | — | — |
2016 | 2,101,744 | 104,422 |
2017 | — | 421,488 |
2018 | 9,884,628 | 1,234,241 |
Total | $ 13,252,589 | $ 1,999,707 |
Under the recently enacted Regulated Investment Company Modernization
Act of 2010, capital losses incurred by the Funds after July 31, 2011 will
not be subject to expiration. In addition, these losses must be utilized prior
to the losses incurred in pre-enactment taxable years.
8. 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 1, 2011 to
Common Shareholders of record on February 15, 2011 as follows:
Common Dividend | |
Per Share | |
MNE | $0.0610 |
MZA | $0.0695 |
MYC | $0.0790 |
MYF | $0.0775 |
MYJ | $0.0725 |
The dividends declared on Preferred Shares for the period February 1,
2011 to February 28, 2011 were as follows:
Dividends | ||
Series | Declared | |
MNE | F7 | $33,620 |
MZA | A | $ 3,954 |
B | $ 5,365 | |
C | $10,922 | |
MYC | A | $11,629 |
B | $11,513 | |
C | $ 3,681 | |
D | $24,089 | |
MYF | A | $ 9,421 |
B | $ 6,837 | |
C | $ 9,211 | |
MYJ | A | $16,331 |
B | $10,258 | |
C | $20,993 |
SEMI-ANNUAL REPORT JANUARY 31, 2011 43
Officers and Directors
Richard E. Cavanagh, Chairman of the Board and Director
Karen P. Robards, Vice Chair of the Board, Chair of the Audit Committee
and Director
Richard S. Davis, Fund President1 and Director
Frank J. Fabozzi, Director and Member of the Audit Committee
Kathleen F. Feldstein, Director
James T. Flynn, Director and Member of the Audit Committee
Henry Gabbay, Director
Jerrold B. Harris, Director
R. Glenn Hubbard, Director
W. Carl Kester, Director and Member of the Audit Committee
Anne Ackerley, Fund President2 and Chief Executive Officer
Brendan Kyne, Vice President
Brian Schmidt, Vice President
Neal Andrews, Chief Financial Officer
Jay Fife, Treasurer
Brian Kindelan, Chief Compliance Officer
Ira Shapiro, Secretary
1 For MYF.
2 For MNE, MZA, MYC and MYJ.
Investment Advisor
BlackRock Advisors, LLC
Wilmington, DE 19809
Sub-Advisor
BlackRock Investment Management, LLC
Plainsboro, NJ 08536
Custodians
State Street Bank and Trust Company3
Boston, MA 02111
The Bank of New York Mellon4
New York, NY 10286
Transfer Agent
Common Shares
Computershare Trust Company, N.A.3
Providence, RI 02940
BNY Mellon Shareowner Services4
Jersey City, NJ 07310
Auction Agent
Preferred Shares
BNY Mellon Shareowner Services
Jersey City, NJ 07310
Accounting Agent
State Street Bank and Trust Company
Princeton, NJ 08540
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540
Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
New York, NY 10036
Address of the Funds
100 Bellevue Parkway
Wilmington, DE 19809
3 For MNE.
4 For MZA, MYC, MYF and MYJ.
Effective February 11, 2011, John M. Perlowski became President and
Chief Executive Officer of the Funds.
Effective November 10, 2010, Ira Shapiro became Secretary of the Funds.
44 SEMI-ANNUAL REPORT JANUARY 31, 2011
Additional Information
Proxy Results
The Annual Meeting of Shareholders was held on September 2, 2010 for shareholders of record on July 6, 2010, to elect director nominees for each
Fund. Due to a lack of quorum of Preferred Shares, action on the proposal regarding the preferred shares nominees' election for MNE, MZA and MYJ was
subsequently adjourned to October 5, 2010; and action on the proposal regarding preferred shares nominees’ election for MNE, MZA and MYJ was addi-
tionally adjourned to November 2, 2010. There were no broker non-votes with regard to any of the Funds.
Richard E. Cavanagh | Richard S. Davis | Frank J. Fabozzi | |||||||
Votes | Votes | Votes | |||||||
Votes For | Withheld | Abstain | Votes For | Withheld | Abstain | Votes For | Withheld | Abstain | |
MNE¹ | 3,504,891 | 441,106 | 0 | 3,576,393 | 369,604 | 0 | 128 | 0 | 0 |
MZA¹ | 4,172,494 | 175,458 | 0 | 4,210,630 | 137,322 | 0 | 350 | 0 | 0 |
MYC | 18,009,777 | 441,738 | 0 | 18,011,127 | 440,388 | 0 | 2,473 | 60 | 0 |
MYF | 12,289,380 | 246,926 | 0 | 12,268,075 | 268,231 | 0 | 1,943 | 26 | 0 |
MYJ¹ | 12,778,504 | 305,722 | 0 | 12,786,058 | 298,168 | 0 | 702 | 54 | 0 |
Kathleen F. Feldstein | James T. Flynn | Henry Gabbay | |||||||
Votes | Votes | Votes | |||||||
Votes For | Withheld | Abstain | Votes For | Withheld | Abstain | Votes For | Withheld | Abstain | |
MNE | 3,394,898 | 551,099 | 0 | 3,576,393 | 369,604 | 0 | 3,576,393 | 369,604 | 0 |
MZA | 4,193,967 | 153,985 | 0 | 4,172,494 | 175,458 | 0 | 4,172,494 | 175,458 | 0 |
MYC | 17,984,817 | 466,698 | 0 | 18,000,029 | 451,486 | 0 | 18,013,827 | 437,688 | 0 |
MYF | 12,268,354 | 267,952 | 0 | 12,265,475 | 270,831 | 0 | 12,287,040 | 249,266 | 0 |
MYJ | 12,785,432 | 298,794 | 0 | 12,862,779 | 221,447 | 0 | 12,808,309 | 275,917 | 0 |
Jerrold B. Harris | R. Glenn Hubbard | W. Carl Kester | |||||||
Votes | Votes | Votes | |||||||
Votes For | Withheld | Abstain | Votes For | Withheld | Abstain | Votes For | Withheld | Abstain | |
MNE¹ | 3,504,891 | 441,106 | 0 | 3,447,586 | 498,411 | 0 | 128 | 0 | 0 |
MZA¹ | 4,205,716 | 142,236 | 0 | 4,196,042 | 151,910 | 0 | 350 | 0 | 0 |
MYC | 17,995,777 | 455,738 | 0 | 18,083,313 | 368,202 | 0 | 2,473 | 60 | 0 |
MYF | 12,286,040 | 250,266 | 0 | 12,215,046 | 321,260 | 0 | 1,943 | 26 | 0 |
MYJ¹ | 12,787,059 | 297,167 | 0 | 12,795,474 | 288,752 | 0 | 705 | 51 | 0 |
Karen P. Robards | |||||||||
Votes | |||||||||
Votes For | Withheld | Abstain | |||||||
MNE | 3,571,569 | 374,428 | 0 | ||||||
MZA | 4,206,238 | 141,714 | 0 | ||||||
MYC | 17,986,805 | 464,710 | 0 | ||||||
MYF | 12,283,386 | 252,920 | 0 | ||||||
MYJ | 12,809,921 | 274,305 | 0 | ||||||
1 Due to the lack of a quorum of Preferred Shares, MNE, MZA and MYJ were unable to act on the election of the two directors reserved for election solely by the Preferred | |||||||||
Shareholders for the Funds. Accordingly, Frank J. Fabozzi and W. Carl Kester will remain in office and continue to serve as directors for the Funds. |
SEMI-ANNUAL REPORT JANUARY 31, 2011 45
Additional Information (continued)
Dividend Policy
The Funds’ dividend policy is to distribute all or a portion of their net
investment income to its shareholders on a monthly basis. In order to pro-
vide shareholders with a more stable level of dividend 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 dividends
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 com-
prises part of the financial information included in this report.
General Information
Electronic Delivery
Electronic copies of most financial reports are available on the Funds’ web-
sites or shareholders can sign up for e-mail notifications of quarterly state-
ments, annual and semi-annual reports by enrolling in the Funds’ electronic
delivery program.
Shareholders Who Hold Accounts with Investment Advisors, Banks
or Brokerages:
Please contact your financial advisor to enroll. 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 share-
holder 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 (800) 441-7762.
Availability of Quarterly Schedule of Investments
Each Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commision (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, DC. Information on
the operation of the Public Reference Room may be obtained by calling
(800) SEC-0330. Each Fund’s Forms N-Q may also be obtained upon
request and without charge by calling (800) 441-7762.
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 (1) without charge, upon request, by calling (800) 441-7762;
(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) 441-7762 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. Investors and others are advised to periodically
check the website for updated performance information and the release of
other material information about the Funds.
46 SEMI-ANNUAL REPORT JANUARY 31, 2011
Additional Information (concluded)
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and for-
mer fund investors and individual clients (collectively, “Clients”) and to
safeguarding their non-public personal information. The following infor-
mation 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 applica-
tions, 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 pro-
cedures relating to the proper storage and disposal of such information.
SEMI-ANNUAL REPORT JANUARY 31, 2011 47
This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be
considered a representation of future performance. The Funds have leveraged their Common Shares which creates risks for Common
Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that
fluctuations in the short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed
auctions, may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.
Item 2 – Code of Ethics – Not Applicable to this semi-annual report
Item 3 – Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4 – Principal Accountant Fees and Services – Not Applicable to this semi-annual report
Item 5 – Audit Committee of Listed Registrants – Not Applicable to this semi-annual report
Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to
Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since
the previous Form N-CSR filing.
Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management
Investment Companies – Not Applicable to this semi-annual report
Item 8 – Portfolio Managers of Closed-End Management Investment Companies –
(a) Not Applicable to this semi-annual report
(b) As of the date of this filing, there have been no changes to 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
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 Arizona Fund, Inc.
By: /S/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Arizona Fund, Inc.
Date: April 4, 2011
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 Arizona Fund, Inc.
Date: April 4, 2011
By: /S/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield Arizona Fund, Inc.
Date: April 4, 2011