Statements of Cash Flows (unaudited)
Six Months Ended January 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MUC |
|
|
MUJ |
|
|
MIY |
|
|
MPA |
|
|
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES |
|
Net decrease in net assets resulting from operations |
|
$ |
(33,789,158 |
) |
|
$ |
(23,009,131) |
|
|
$ |
(20,395,406) |
|
|
$ |
(10,090,490) |
|
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by
operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sales of long-term investments |
|
|
100,265,091 |
|
|
|
35,369,411 |
|
|
|
54,987,033 |
|
|
|
30,615,889 |
|
Purchases of long-term investments |
|
|
(86,875,052 |
) |
|
|
(51,840,440 |
) |
|
|
(57,254,829 |
) |
|
|
(22,911,155 |
) |
Net proceeds from sales (purchases) of short-term securities |
|
|
2,260,431 |
|
|
|
15,397,763 |
|
|
|
347,455 |
|
|
|
(7,427,941 |
) |
Amortization of premium and accretion of discount on investments and other fees |
|
|
3,454,813 |
|
|
|
707,686 |
|
|
|
2,556,678 |
|
|
|
752,370 |
|
Net realized (gain) loss on investments |
|
|
615,310 |
|
|
|
29,562 |
|
|
|
(212,005 |
) |
|
|
(252,577 |
) |
Net unrealized depreciation on investments |
|
|
46,263,542 |
|
|
|
34,660,615 |
|
|
|
29,922,492 |
|
|
|
15,274,988 |
|
(Increase) Decrease in Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends affiliated |
|
|
18 |
|
|
|
67 |
|
|
|
21 |
|
|
|
(7 |
) |
Interest unaffiliated |
|
|
1,202,800 |
|
|
|
100,756 |
|
|
|
438 |
|
|
|
105,923 |
|
Variation margin on futures contracts |
|
|
|
|
|
|
(5,250 |
) |
|
|
|
|
|
|
(3,062 |
) |
Prepaid expenses |
|
|
(21,741 |
) |
|
|
23 |
|
|
|
25,318 |
|
|
|
(4,266 |
) |
Other assets |
|
|
(286,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) in Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payables |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounting services fees |
|
|
(70,331 |
) |
|
|
(56,078 |
) |
|
|
(54,434 |
) |
|
|
(31,814 |
) |
Custodian fees |
|
|
(3,681 |
) |
|
|
(4,756 |
) |
|
|
(3,306 |
) |
|
|
(1,838 |
) |
Interest expense and fees |
|
|
(3,445 |
) |
|
|
(1,450 |
) |
|
|
1,435 |
|
|
|
342 |
|
Investment advisory fees |
|
|
1,308 |
|
|
|
(5,950 |
) |
|
|
(7,312 |
) |
|
|
(3,360 |
) |
Directors and Officers fees |
|
|
(92,307 |
) |
|
|
1,231 |
|
|
|
1,156 |
|
|
|
(178 |
) |
Other accrued expenses |
|
|
(7,031 |
) |
|
|
(1,589 |
) |
|
|
(5,899 |
) |
|
|
(5,838 |
) |
Professional fees |
|
|
(25,678 |
) |
|
|
(15,100 |
) |
|
|
(20,952 |
) |
|
|
(16,429 |
) |
Reorganization costs |
|
|
180,691 |
|
|
|
118,077 |
|
|
|
|
|
|
|
|
|
Transfer agent fees |
|
|
(3,722 |
) |
|
|
(2,583 |
) |
|
|
(2,507 |
) |
|
|
(2,476 |
) |
Variation margin on futures contracts |
|
|
|
|
|
|
(89,390 |
) |
|
|
|
|
|
|
(48,067 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
33,065,858 |
|
|
|
11,353,474 |
|
|
|
9,885,376 |
|
|
|
5,950,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid to Common Shareholders |
|
|
(13,065,858 |
) |
|
|
(11,219,184 |
) |
|
|
(9,915,204 |
) |
|
|
(4,253,442 |
) |
Repayments of TOB Trust Certificates |
|
|
(20,000,000 |
) |
|
|
(5,035,462 |
) |
|
|
|
|
|
|
(1,828,403 |
) |
Proceeds from TOB Trust Certificates |
|
|
|
|
|
|
4,671,366 |
|
|
|
|
|
|
|
|
|
Amortization of deferred offering costs |
|
|
|
|
|
|
10,695 |
|
|
|
29,828 |
|
|
|
9,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used for financing activities |
|
|
(33,065,858 |
) |
|
|
(11,572,585 |
) |
|
|
(9,885,376 |
) |
|
|
(6,072,171 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in restricted and unrestricted cash |
|
|
|
|
|
|
(219,111 |
) |
|
|
|
|
|
|
(122,157 |
) |
Restricted and unrestricted cash at beginning of period |
|
|
|
|
|
|
447,111 |
|
|
|
|
|
|
|
239,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted and unrestricted cash at end of period |
|
$ |
|
|
|
$ |
228,000 |
|
|
$ |
|
|
|
$ |
117,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the period for interest expense |
|
$ |
1,465,038 |
|
|
$ |
1,281,491 |
|
|
$ |
1,370,489 |
|
|
$ |
192,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-CASH FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reinvestment of common distributions |
|
$ |
472,286 |
|
|
$ |
153,766 |
|
|
$ |
|
|
|
$ |
138,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF PERIOD TO THE STATEMENTS OF ASSETS AND
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash pledged |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures contracts |
|
|
|
|
|
|
228,000 |
|
|
|
|
|
|
|
117,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
$ |
228,000 |
|
|
$ |
|
|
|
$ |
117,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F I N A N C I A L S T A T E M E N T
S |
|
39 |
Financial Highlights
(For a share outstanding throughout each period)
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MUC |
|
|
|
|
|
|
|
|
Six Months Ended |
|
Year Ended July 31, |
|
|
|
|
01/31/22 |
|
|
|
|
(unaudited) |
|
2021 |
|
2020 |
|
2019 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
|
|
|
$ |
16.16 |
|
|
|
$ |
15.95 |
|
|
|
$ |
15.56 |
|
|
|
$ |
15.03 |
|
|
|
$ |
15.53 |
|
|
|
$ |
16.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income(a) |
|
|
|
|
|
0.29 |
|
|
|
|
0.65 |
|
|
|
|
0.58 |
|
|
|
|
0.57 |
|
|
|
|
0.64 |
|
|
|
|
0.69 |
|
Net realized and unrealized gain (loss) |
|
|
|
|
|
(1.11 |
) |
|
|
|
0.21 |
|
|
|
|
0.35 |
|
|
|
|
0.54 |
|
|
|
|
(0.47 |
) |
|
|
|
(0.93 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) from investment operations |
|
|
|
|
|
(0.82 |
) |
|
|
|
0.86 |
|
|
|
|
0.93 |
|
|
|
|
1.11 |
|
|
|
|
0.17 |
|
|
|
|
(0.24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Common Shareholders(b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
|
|
|
|
(0.33 |
) |
|
|
|
(0.65 |
) |
|
|
|
(0.54 |
) |
|
|
|
(0.57 |
) |
|
|
|
(0.67 |
) |
|
|
|
(0.74 |
) |
From net realized gain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to Common Shareholders |
|
|
|
|
|
(0.33 |
) |
|
|
|
(0.65 |
) |
|
|
|
(0.54 |
) |
|
|
|
(0.58 |
) |
|
|
|
(0.67 |
) |
|
|
|
(0.74 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period |
|
|
|
|
$ |
15.01 |
|
|
|
$ |
16.16 |
|
|
|
$ |
15.95 |
|
|
|
$ |
15.56 |
|
|
|
$ |
15.03 |
|
|
|
$ |
15.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market price, end of period |
|
|
|
|
$ |
14.34 |
|
|
|
$ |
16.09 |
|
|
|
$ |
14.67 |
|
|
|
$ |
14.00 |
|
|
|
$ |
13.07 |
|
|
|
$ |
14.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return Applicable to Common Shareholders(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value |
|
|
|
|
|
(5.10 |
)%(d) |
|
|
|
5.78 |
% |
|
|
|
6.55 |
% |
|
|
|
8.17 |
% |
|
|
|
1.54 |
% |
|
|
|
(1.08 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on market price |
|
|
|
|
|
(8.95 |
)%(d) |
|
|
|
14.52 |
% |
|
|
|
8.92 |
% |
|
|
|
11.92 |
% |
|
|
|
(7.03 |
)% |
|
|
|
(4.73 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to Common Shareholders(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
|
|
|
|
1.48 |
%(f)(g) |
|
|
|
1.46 |
% |
|
|
|
2.11 |
% |
|
|
|
2.58 |
% |
|
|
|
2.38 |
% |
|
|
|
2.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses after fees waived and/or reimbursed |
|
|
|
|
|
1.42 |
%(f)(g) |
|
|
|
1.41 |
% |
|
|
|
2.05 |
% |
|
|
|
2.50 |
% |
|
|
|
2.29 |
% |
|
|
|
1.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of
offering costs(h) |
|
|
|
|
|
0.97 |
%(f)(g) |
|
|
|
0.92 |
% |
|
|
|
0.92 |
% |
|
|
|
0.92 |
% |
|
|
|
0.93 |
% |
|
|
|
0.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income to Common Shareholders |
|
|
|
|
|
3.68 |
%(g) |
|
|
|
4.11 |
% |
|
|
|
3.75 |
% |
|
|
|
3.82 |
% |
|
|
|
4.20 |
% |
|
|
|
4.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to Common Shareholders, end of period (000) |
|
|
|
|
$ |
616,035 |
|
|
|
$ |
662,892 |
|
|
|
$ |
653,836 |
|
|
|
$ |
637,822 |
|
|
|
$ |
616,387 |
|
|
|
$ |
636,865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VMTP Shares outstanding at $100,000 liquidation value, end of period (000) |
|
|
|
|
$ |
254,000 |
|
|
|
$ |
254,000 |
|
|
|
$ |
254,000 |
|
|
|
$ |
254,000 |
|
|
|
$ |
254,000 |
|
|
|
$ |
254,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset coverage per VMTP Shares at $100,000 liquidation value, end of
period |
|
|
|
|
$ |
342,533 |
|
|
|
$ |
360,981 |
|
|
|
$ |
357,416 |
|
|
|
$ |
351,111 |
|
|
|
$ |
342,672 |
|
|
|
$ |
350,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings outstanding, end of period (000) |
|
|
|
|
$ |
132,145 |
|
|
|
$ |
152,145 |
|
|
|
$ |
158,512 |
|
|
|
$ |
159,555 |
|
|
|
$ |
185,905 |
|
|
|
$ |
181,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate |
|
|
|
|
|
10 |
% |
|
|
|
4 |
% |
|
|
|
16 |
% |
|
|
|
24 |
% |
|
|
|
24 |
% |
|
|
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average Common Shares outstanding. |
(b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
|
(c) |
Total returns based on market price, which can be significantly greater or less than the net asset value, may result in
substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices. |
(d) |
Aggregate total return. |
(e) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(f) |
Includes non-recurring expenses of reorganization costs. Without these costs,
total expenses, total expenses after fees waived and/or reimbursed and total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of offering cost would have been 1.39%, 1.36% and 0.91%, respectively.
|
(h) |
Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note
10 of the Notes to Financial Statements for details. |
See notes to financial statements.
|
|
|
40 |
|
2 0 2 2
B L A C K R O C K S E M I - A N N U A L
R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MUJ |
|
Six Months Ended |
|
|
Year Ended July 31, |
|
|
|
|
|
01/31/22 |
|
|
|
|
|
(unaudited) |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
|
|
$ |
16.29 |
|
|
$ |
15.83 |
|
|
$ |
15.95 |
|
|
$ |
15.28 |
|
|
$ |
15.57 |
|
|
$ |
16.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income(a) |
|
|
|
|
0.33 |
|
|
|
0.73 |
|
|
|
0.69 |
|
|
|
0.66 |
|
|
|
0.71 |
|
|
|
0.77 |
|
Net realized and unrealized gain (loss) |
|
|
|
|
(1.09 |
) |
|
|
0.48 |
|
|
|
(0.16 |
) |
|
|
0.64 |
|
|
|
(0.26 |
) |
|
|
(0.94 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) from investment operations |
|
|
|
|
(0.76 |
) |
|
|
1.21 |
|
|
|
0.53 |
|
|
|
1.30 |
|
|
|
0.45 |
|
|
|
(0.17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Common Shareholders from net investment
income(b) |
|
|
|
|
(0.38 |
) |
|
|
(0.75 |
) |
|
|
(0.65 |
) |
|
|
(0.63 |
) |
|
|
(0.74 |
) |
|
|
(0.81 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period |
|
|
|
$ |
15.15 |
|
|
$ |
16.29 |
|
|
$ |
15.83 |
|
|
$ |
15.95 |
|
|
$ |
15.28 |
|
|
$ |
15.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market price, end of period |
|
|
|
$ |
14.42 |
|
|
$ |
15.63 |
|
|
$ |
14.21 |
|
|
$ |
14.43 |
|
|
$ |
12.90 |
|
|
$ |
14.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return Applicable to Common Shareholders(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value |
|
|
|
|
(4.70 |
)%(d) |
|
|
8.22 |
% |
|
|
3.98 |
% |
|
|
9.44 |
% |
|
|
3.52 |
% |
|
|
(0.57 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on market price |
|
|
|
|
(5.46 |
)%(d) |
|
|
15.67 |
% |
|
|
3.17 |
% |
|
|
17.28 |
% |
|
|
(8.55 |
)% |
|
|
(2.44 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to Common Shareholders(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
|
|
|
1.56 |
%(f)(g) |
|
|
1.44 |
% |
|
|
2.14 |
% |
|
|
2.49 |
% |
|
|
2.23 |
% |
|
|
1.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses after fees waived and/or reimbursed |
|
|
|
|
1.50 |
%(f)(g) |
|
|
1.44 |
% |
|
|
2.14 |
% |
|
|
2.49 |
% |
|
|
2.23 |
% |
|
|
1.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of
offering costs(h)(i) |
|
|
|
|
0.97 |
%(f)(g) |
|
|
0.89 |
% |
|
|
0.92 |
% |
|
|
0.92 |
% |
|
|
0.93 |
% |
|
|
0.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income to Common Shareholders |
|
|
|
|
4.10 |
%(g) |
|
|
4.59 |
% |
|
|
4.39 |
% |
|
|
4.28 |
% |
|
|
4.60 |
% |
|
|
4.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000) |
|
|
|
$ |
455,874 |
|
|
$ |
490,103 |
|
|
$ |
476,309 |
|
|
$ |
481,024 |
|
|
$ |
460,727 |
|
|
$ |
469,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VRDP Shares outstanding at $100,000 liquidation value, end of period (000) |
|
|
|
$ |
237,100 |
|
|
$ |
237,100 |
|
|
$ |
237,100 |
|
|
$ |
237,100 |
|
|
$ |
237,100 |
|
|
$ |
237,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period |
|
|
|
$ |
292,271 |
|
|
$ |
306,707 |
|
|
$ |
300,890 |
|
|
$ |
302,878 |
|
|
$ |
294,318 |
|
|
$ |
297,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings outstanding, end of period (000) |
|
|
|
$ |
61,170 |
|
|
$ |
61,534 |
|
|
$ |
71,300 |
|
|
$ |
59,415 |
|
|
$ |
62,747 |
|
|
$ |
63,877 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate |
|
|
|
|
5 |
% |
|
|
10 |
% |
|
|
13 |
% |
|
|
8 |
% |
|
|
14 |
% |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average Common Shares outstanding. |
(b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
|
(c) |
Total returns based on market price, which can be significantly greater or less than the net asset value, may result in
substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices. |
(d) |
Aggregate total return. |
(e) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(f) |
Includes non-recurring expenses of reorganization costs. Without these costs,
total expenses, total expenses after fees waived and/or reimbursed and total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of offering cost would have been 1.43%, 1.43% and 0.90%, respectively.
|
(h) |
Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note
10 of the Notes to Financial Statements for details. |
(i) |
The total expense ratio after fees waived and/or reimbursed and excluding interest expense, fees, amortization of
offering costs, liquidity and remarketing fees as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
Year Ended July 31, |
|
|
|
|
|
01/31/22 |
|
|
|
|
|
(unaudited) |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
Expense ratios |
|
|
|
|
0.96 |
% |
|
|
0.88 |
% |
|
|
0.91 |
% |
|
|
0.91 |
% |
|
|
0.93 |
% |
|
|
0.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes to financial statements.
|
|
|
F I N A N C I A L S T A T E M E N T
S |
|
41 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIY |
|
|
|
Six Months Ended |
|
|
Year Ended July 31, |
|
|
|
|
|
01/31/22 |
|
|
|
|
|
(unaudited) |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
|
|
$ |
16.04 |
|
|
$ |
15.88 |
|
|
$ |
15.70 |
|
|
$ |
15.04 |
|
|
$ |
15.48 |
|
|
$ |
16.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income(a) |
|
|
|
|
0.32 |
|
|
|
0.68 |
|
|
|
0.63 |
|
|
|
0.62 |
|
|
|
0.69 |
|
|
|
0.75 |
|
Net realized and unrealized gain (loss) |
|
|
|
|
(1.00 |
) |
|
|
0.14 |
|
|
|
0.14 |
|
|
|
0.66 |
|
|
|
(0.42 |
) |
|
|
(0.86 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) from investment operations |
|
|
|
|
(0.68 |
) |
|
|
0.82 |
|
|
|
0.77 |
|
|
|
1.28 |
|
|
|
0.27 |
|
|
|
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Common Shareholders from net investment
income(b) |
|
|
|
|
(0.34 |
) |
|
|
(0.66 |
) |
|
|
(0.59 |
) |
|
|
(0.62 |
) |
|
|
(0.71 |
) |
|
|
(0.77 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period |
|
|
|
$ |
15.02 |
|
|
$ |
16.04 |
|
|
$ |
15.88 |
|
|
$ |
15.70 |
|
|
$ |
15.04 |
|
|
$ |
15.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market price, end of period |
|
|
|
|
$14.33 |
|
|
$ |
15.80 |
|
|
$ |
14.24 |
|
|
$ |
14.24 |
|
|
$ |
12.89 |
|
|
$ |
14.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return Applicable to Common Shareholders(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value |
|
|
|
|
(4.27 |
)%(d) |
|
|
5.61 |
% |
|
|
5.52 |
% |
|
|
9.42 |
% |
|
|
2.37 |
% |
|
|
(0.07 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on market price |
|
|
|
|
(7.28 |
)%(d) |
|
|
16.02 |
% |
|
|
4.31 |
% |
|
|
15.80 |
% |
|
|
(4.29 |
)% |
|
|
(2.56 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to Common Shareholders(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
|
|
|
1.45 |
%(f) |
|
|
1.44 |
% |
|
|
2.07 |
% |
|
|
2.46 |
% |
|
|
2.16 |
% |
|
|
1.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses after fees waived and/or reimbursed |
|
|
|
|
1.45 |
%(f) |
|
|
1.44 |
% |
|
|
2.07 |
% |
|
|
2.46 |
% |
|
|
2.16 |
% |
|
|
1.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of
offering costs(g)(h) |
|
|
|
|
0.85 |
%(f) |
|
|
0.85 |
% |
|
|
1.20 |
% |
|
|
1.09 |
% |
|
|
0.89 |
% |
|
|
0.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income to Common Shareholders |
|
|
|
|
3.99 |
%(f) |
|
|
4.32 |
% |
|
|
4.06 |
% |
|
|
4.11 |
% |
|
|
4.49 |
% |
|
|
4.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to Common Shareholders, end of period (000) |
|
|
|
$ |
443,153 |
|
|
$ |
473,464 |
|
|
$ |
468,752 |
|
|
$ |
464,366 |
|
|
$ |
444,947 |
|
|
$ |
457,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VRDP Shares outstanding at $100,000 liquidation value, end of period (000) |
|
|
|
$ |
231,900 |
|
|
$ |
231,900 |
|
|
$ |
231,900 |
|
|
$ |
231,900 |
|
|
$ |
231,900 |
|
|
$ |
231,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period |
|
|
|
$ |
291,097 |
|
|
$ |
304,167 |
|
|
$ |
302,135 |
|
|
$ |
300,244 |
|
|
$ |
291,870 |
|
|
$ |
297,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings outstanding, end of period (000) |
|
|
|
$ |
41,267 |
|
|
$ |
41,267 |
|
|
$ |
41,362 |
|
|
$ |
64,527 |
|
|
$ |
60,002 |
|
|
$ |
52,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate |
|
|
|
|
8 |
% |
|
|
7 |
% |
|
|
9 |
% |
|
|
15 |
% |
|
|
8 |
% |
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average Common Shares outstanding. |
(b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
|
(c) |
Total returns based on market price, which can be significantly greater or less than the net asset value, may result in
substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices. |
(d) |
Aggregate total return. |
(e) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) |
Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note
10 of the Notes to Financial Statements for details. |
(h) |
The total expense ratio after fees waived and/or reimbursed and excluding interest expense, fees, amortization of
offering costs, liquidity and remarketing fees as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
01/31/22 |
|
|
Year Ended July 31, |
|
|
|
|
|
(unaudited) |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
Expense ratios |
|
|
|
|
0.85 |
% |
|
|
0.85 |
% |
|
|
0.88 |
% |
|
|
0.90 |
% |
|
|
0.89 |
% |
|
|
0.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes to financial statements.
|
|
|
42 |
|
2 0 2 2
B L A C K R O C K S E M I - A N N U A L
R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MPA |
|
|
|
Six Months Ended |
|
|
Year Ended July 31, |
|
|
|
|
|
01/31/22 |
|
|
|
|
|
(unaudited) |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
|
|
$ |
16.64 |
|
|
$ |
16.09 |
|
|
$ |
16.06 |
|
|
$ |
15.27 |
|
|
$ |
15.74 |
|
|
$ |
16.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income(a) |
|
|
|
|
0.30 |
|
|
|
0.69 |
|
|
|
0.65 |
|
|
|
0.63 |
|
|
|
0.71 |
|
|
|
0.76 |
|
Net realized and unrealized gain (loss) |
|
|
|
|
(1.06 |
) |
|
|
0.52 |
|
|
|
(0.05 |
) |
|
|
0.80 |
|
|
|
(0.47 |
) |
|
|
(1.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) from investment operations |
|
|
|
|
(0.76 |
) |
|
|
1.21 |
|
|
|
0.60 |
|
|
|
1.43 |
|
|
|
0.24 |
|
|
|
(0.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to Common Shareholders from net investment
income(b) |
|
|
|
|
(0.33 |
) |
|
|
(0.66 |
) |
|
|
(0.57 |
) |
|
|
(0.64 |
) |
|
|
(0.71 |
) |
|
|
(0.75 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period |
|
|
|
$ |
15.55 |
|
|
$ |
16.64 |
|
|
$ |
16.09 |
|
|
$ |
16.06 |
|
|
$ |
15.27 |
|
|
$ |
15.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market price, end of period |
|
|
|
$ |
14.77 |
|
|
$ |
16.23 |
|
|
$ |
14.09 |
|
|
$ |
14.18 |
|
|
$ |
13.26 |
|
|
$ |
14.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return Applicable to Common Shareholders(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on net asset value |
|
|
|
|
(4.59 |
)%(d) |
|
|
8.09 |
% |
|
|
4.33 |
% |
|
|
10.32 |
% |
|
|
2.09 |
% |
|
|
(1.20 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on market price |
|
|
|
|
(7.09 |
)%(d) |
|
|
20.40 |
% |
|
|
3.47 |
% |
|
|
12.18 |
% |
|
|
(5.01 |
)% |
|
|
(3.83 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to Common Shareholders(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
|
|
|
1.42 |
%(f) |
|
|
1.48 |
% |
|
|
2.13 |
% |
|
|
2.55 |
% |
|
|
2.26 |
% |
|
|
1.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses after fees waived and/or reimbursed |
|
|
|
|
1.41 |
%(f) |
|
|
1.48 |
% |
|
|
2.12 |
% |
|
|
2.55 |
% |
|
|
2.26 |
% |
|
|
1.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of
offering costs(g)(h) |
|
|
|
|
1.23 |
%(f) |
|
|
1.25 |
% |
|
|
1.23 |
% |
|
|
0.99 |
% |
|
|
0.95 |
% |
|
|
0.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income to Common Shareholders |
|
|
|
|
3.68 |
%(f) |
|
|
4.24 |
% |
|
|
4.08 |
% |
|
|
4.11 |
% |
|
|
4.56 |
% |
|
|
4.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to Common Shareholders, end of period (000) |
|
|
|
$ |
207,040 |
|
|
$ |
221,384 |
|
|
$ |
214,155 |
|
|
$ |
214,359 |
|
|
$ |
203,956 |
|
|
$ |
210,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VRDP Shares outstanding at $100,000 liquidation value, end of period (000) |
|
|
|
$ |
82,600 |
|
|
$ |
82,600 |
|
|
$ |
82,600 |
|
|
$ |
82,600 |
|
|
$ |
82,600 |
|
|
$ |
82,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period |
|
|
|
$ |
350,653 |
|
|
$ |
368,019 |
|
|
$ |
359,268 |
|
|
$ |
359,514 |
|
|
$ |
346,921 |
|
|
$ |
354,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings outstanding, end of period (000) |
|
|
|
$ |
42,183 |
|
|
$ |
44,012 |
|
|
$ |
54,482 |
|
|
$ |
52,814 |
|
|
$ |
58,176 |
|
|
$ |
55,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate |
|
|
|
|
8 |
% |
|
|
13 |
% |
|
|
12 |
% |
|
|
21 |
% |
|
|
21 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Based on average Common Shares outstanding. |
(b) |
Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
|
(c) |
Total returns based on market price, which can be significantly greater or less than the net asset value, may result in
substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices. |
(d) |
Aggregate total return. |
(e) |
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(g) |
Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note
10 of the Notes to Financial Statements for details. |
(h) |
The total expense ratio after fees waived and/or reimbursed and excluding interest expense, fees, amortization of
offering costs, liquidity and remarketing fees as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
Year Ended July 31, |
|
|
|
|
|
01/31/22 |
|
|
|
|
|
(unaudited) |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
Expense ratios |
|
|
|
|
0.90 |
% |
|
|
0.92 |
% |
|
|
0.93 |
% |
|
|
0.96 |
% |
|
|
0.95 |
% |
|
|
0.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes to financial statements.
|
|
|
F I N A N C I A L
H I G H L I G H T S |
|
43 |
Notes to Financial
Statements (unaudited)
The following are registered under the Investment Company Act of 1940, as amended (the 1940 Act), as
closed-end management investment companies and are referred to herein collectively as the Funds, or individually as a Fund:
|
|
|
|
|
|
|
Fund Name |
|
Herein Referred To As |
|
Organized |
|
Diversification
Classification |
BlackRock MuniHoldings California Quality Fund, Inc |
|
MUC |
|
Maryland |
|
Diversified |
BlackRock MuniHoldings New Jersey Quality Fund, Inc |
|
MUJ |
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Maryland |
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Non-diversified |
BlackRock MuniYield Michigan Quality Fund, Inc. |
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MIY |
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Maryland |
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Non-diversified |
BlackRock MuniYield Pennsylvania Quality Fund. |
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MPA |
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Massachusetts |
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Non-diversified |
The Boards of Directors and Boards of Trustees of the Funds are collectively referred to throughout this report as the
Board, and the directors/trustees thereof are collectively referred to throughout this report as Directors. The Funds determine and make available for publication the net asset values (NAVs) of their Common Shares
on a daily basis.
On September 24, 2021, the Boards of Directors of BlackRock MuniYield California Fund (MYC), BlackRock MuniYield California
Quality Fund (MCA) and MUC each approved the reorganization of MYC and MCA into MUC. The reorganization was approved by each Funds shareholders and is expected to occur during the second quarter of 2022, subject to the satisfaction of
customary closing conditions.
On September 24, 2021, the Boards of Directors of BlackRock MuniYield New Jersey Fund (MYJ) and MUJ each approved
the reorganization of MYJ into MUJ. The reorganization was approved by each Funds shareholders and is expected to occur during the second quarter of 2022, subject to the satisfaction of customary closing conditions.
The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the Manager) or its affiliates, are
included in a complex of open-end non-index fixed-income funds and all BlackRock-advised closed-end funds referred to as the
BlackRock Fixed-Income Complex.
2. |
SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (U.S.
GAAP), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the
accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment
Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific
identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend dates. Non-cash dividends, if any, are recorded on
the ex-dividend dates at fair value. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis.
Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) or certain borrowings (e.g.,TOB
Trust transactions) that would be treated as senior securities for 1940 Act purposes, a Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future
obligations under such investments or borrowings. Doing so allows the investments or borrowings to be excluded from treatment as a senior security. Furthermore, if required by an exchange or counterparty agreement, the Funds may be
required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.
Distributions: Distributions from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.
Distributions to Preferred Shareholders are accrued and determined as described in Note 10.
Deferred Compensation Plan: Under the Deferred Compensation Plan (the Plan) approved by each Funds Board, the directors who are
not interested persons of the Funds, as defined in the 1940 Act (Independent Directors), may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar
amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Directors. This has the same economic effect for the Independent Directors as if the Independent Directors had invested the
deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.
The Plan is not funded and obligations thereunder represent general
unsecured claims against the general assets of each Fund, as applicable. Deferred compensation liabilities, if any, are included in the Directors and Officers fees payable in the Statements of Assets and Liabilities and will remain as a
liability of the Funds until such amounts are distributed in accordance with the Plan.
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44 |
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2 0 2 2 B L A C K R O C K
S E M I - A N N U A L R E P O R T T O
S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
Indemnifications: In
the normal course of business, a Fund enters into contracts that contain a variety of representations that provide general indemnification. A Funds maximum exposure under these arrangements is unknown because it involves future potential
claims against a Fund, which cannot be predicted with any certainty.
Other: Expenses directly related to a Fund are charged to that Fund.
Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.
3. |
INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Funds investments are valued at fair value (also referred to as market value within the
financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an
orderly transaction between market participants at the measurement date. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board. If a
securitys market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock
Global Valuation Methodologies Committee (the Global Valuation Committee) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Funds assets and
liabilities:
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Fixed-income investments for which market quotations are readily available are generally valued using the last available
bid price or current market quotations provided by independent dealers or third-party pricing services. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or
transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values,
including transaction data (e.g., recent representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage
related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique
attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.
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Investments in open-end U.S. mutual funds (including money market funds) are
valued at that days published NAV. |
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Futures contracts are valued based on that days last reported settlement or trade price on the exchange where the
contract is traded. |
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to
materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not
available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (Fair Valued Investments). The fair valuation approaches that may be
used by the Global Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically
used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or
purchase of that asset or liability in an arms-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant
and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are
categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
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Level 1 Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each
Fund has the ability to access; |
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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 marketcorroborated inputs); and |
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Level 3 Unobservable inputs based on the best information available in the circumstances, to the extent
observable inputs are not available (including the Global Valuation Committees assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into
different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held
companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is
not necessarily an indication of the risks associated with investing in those securities.
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N O T E S T O
F I N A N C I A L S T A T E M E N T S |
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45 |
Notes to Financial Statements (unaudited) (continued)
4. |
SECURITIES AND OTHER INVESTMENTS |
Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest
payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.
Forward Commitments, When-Issued and Delayed Delivery Securities: The Funds may purchase securities on a when-issued basis and may purchase or sell
securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds may purchase securities under such conditions with the intention of actually
acquiring them but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Funds may be required to pay more at settlement than the
security is worth. In addition, a fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk
of price and yield fluctuations. In the event of default by the counterparty, the Funds maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.
Municipal Bonds Transferred to TOB Trusts: The Funds leverage their assets through the use of TOB Trust transactions. The funds
transfer municipal bonds into a special purpose trust (a TOB Trust). A TOB Trust issues two classes of beneficial interests: short-term floating rate interests (TOB Trust Certificates), which are sold to third-party
investors, and residual inverse floating rate interests (TOB Residuals), which are issued to the participating funds that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest rates that reset weekly
and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each reset date. The TOB Residuals held by a fund provide the fund with the right to cause the holders of a proportional
share of the TOB Trust Certificates to tender their certificates to the TOB Trust at par plus accrued interest. The funds may withdraw a corresponding share of the municipal bonds from the TOB Trust. Other funds managed by the investment adviser may
also contribute municipal bonds to a TOB Trust into which a fund has contributed bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residuals will be shared among the funds
ratably in proportion to their participation in the TOB Trust.
TOB Trusts are supported by a liquidity facility provided by a third-party bank or
other financial institution (the Liquidity Provider) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment of par plus accrued interest on any business day. The tendered TOB Trust
Certificates are remarketed by a Remarketing Agent. In the event of a failed remarketing, the TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB Trust Certificates. Any loans made by the Liquidity Provider will
be secured by the purchased TOB Trust Certificates held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.
The TOB Trust may be collapsed without the consent of a fund, upon the occurrence of a termination event as defined in the TOB Trust agreement. Upon the
occurrence of a termination event, a TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the Remarketing Agent and the Liquidity Provider. Upon certain termination events, TOB Trust
Certificates holders will be paid before the TOB Residuals holders (i.e., the Funds) whereas in other termination events, TOB Trust Certificates holders and TOB Residuals holders will be paid pro rata.
While a funds investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they
restrict the ability of a fund to borrow money for purposes of making investments. MIYs and MPAs management believes that a funds restrictions on borrowings do not apply to the Funds TOB Trust transactions. Each Funds
transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less certain transaction expenses, is paid to a Fund.
A Fund typically invests the cash received in additional municipal bonds.
Accounting for TOB Trusts: The municipal bonds deposited into a TOB
Trust are presented in a Funds Schedule of Investments and the TOB Trust Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust pursuant to the liquidity facility to purchase
tendered TOB Trust Certificates are shown as Loan for TOB Trust Certificates. The carrying amount of a Funds payable to the holder of the TOB Trust Certificates, as reported in the Statements of Assets and Liabilities as TOB Trust
Certificates, approximates its fair value.
Interest income, including amortization and accretion of premiums and discounts, from the underlying
municipal bonds is recorded by a Fund on an accrual basis. Interest expense incurred on the TOB Trust transaction and other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust are shown as interest
expense, fees and amortization of offering costs in the Statements of Operations. Fees paid upon creation of the TOB Trust are recorded as debt issuance costs and are amortized to interest expense, fees and amortization of offering costs in the
Statements of Operations to the expected maturity of the TOB Trust. In connection with the restructurings of the TOB Trusts to non-bank sponsored TOB Trusts, a Fund incurred
non-recurring, legal and restructuring fees, which are recorded as interest expense, fees and amortization of offering costs in the Statements of Operations. Amounts recorded within interest expense,
fees and amortization of offering costs in the Statements of Operations are:
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Fund Name |
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Interest Expense |
|
|
Liquidity Fees |
|
|
Other Expenses |
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Total |
|
MUC |
|
$ |
54,279 |
|
|
$ |
299,403 |
|
|
$ |
89,893 |
|
|
$ |
443,575 |
|
MUJ |
|
|
30,850 |
|
|
|
114,746 |
|
|
|
64,637 |
|
|
|
210,233 |
|
MIY |
|
|
27,211 |
|
|
|
87,636 |
|
|
|
23,554 |
|
|
|
138,401 |
|
MPA |
|
|
19,574 |
|
|
|
90,673 |
|
|
|
28,675 |
|
|
|
138,922 |
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46 |
|
2 0 2 2
B L A C K R O C K S E M I - A N N U A L
R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
For the six months ended
January 31, 2022, the following table is a summary of each Funds TOB Trusts:
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Fund Name |
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Underlying
Municipal Bonds Transferred to
TOB Trusts |
(a) |
|
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Liability for
TOB Trust Certificates |
(b)
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|
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Range of
Interest Rates
on TOB Trust
Certificates at Period End |
|
|
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Average
TOB Trust Certificates
Outstanding |
|
|
|
Daily Weighted Average
Rate of Interest and
Other Expenses on TOB Trusts |
|
MUC |
|
$ |
271,734,879 |
|
|
$ |
132,144,550 |
|
|
|
0.06% 0.16% |
|
|
$ |
132,307,593 |
|
|
|
0.66 |
% |
MUJ |
|
|
108,417,793 |
|
|
|
61,170,038 |
|
|
|
0.06 0.14 |
|
|
|
61,886,770 |
|
|
|
0.67 |
|
MIY |
|
|
77,206,948 |
|
|
|
41,267,055 |
|
|
|
0.09 0.22 |
|
|
|
41,267,055 |
|
|
|
0.66 |
|
MPA |
|
|
75,673,779 |
|
|
|
42,183,181 |
|
|
|
0.09 0.20 |
|
|
|
42,789,336 |
|
|
|
0.65 |
|
|
(a) |
The municipal bonds transferred to a TOB Trust are generally high grade municipal bonds. In certain cases, when
municipal bonds transferred are lower grade municipal bonds, the TOB Trust transaction may include a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement
provider in the event of default of the municipal bond. The TOB Trust would be responsible for the payment of the credit enhancement fee and the Funds, as TOB Residuals holders, would be responsible for reimbursement of any payments of principal and
interest made by the credit enhancement provider. The maximum potential amounts owed by the Funds, for such reimbursements, as applicable, are included in the maximum potential amounts disclosed for recourse TOB Trusts in the Schedules of
Investments. |
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|
(b) |
TOB Trusts may be structured on a non-recourse or recourse basis. When a Fund
invests in TOB Trusts on a non-recourse basis, the Liquidity Provider may be required to make a payment under the liquidity facility to allow the TOB Trust to repurchase TOB Trust Certificates. The Liquidity
Provider will be reimbursed from the liquidation of bonds held in the TOB Trust. If a Fund invests in a TOB Trust on a recourse basis, a Fund enters into a reimbursement agreement with the Liquidity Provider where a Fund is required to reimburse the
Liquidity Provider for any shortfall between the amount paid by the Liquidity Provider and proceeds received from liquidation of municipal bonds held in the TOB Trust (the Liquidation Shortfall). As a result, if a Fund invests in a
recourse TOB Trust, a Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a Fund at
January 31, 2022, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by a fund at January 31, 2022. |
|
5. |
DERIVATIVE FINANCIAL INSTRUMENTS |
The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to manage their
exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are
included in the Schedules of Investments. These contracts may be transacted on an exchange or over-the-counter (OTC).
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate
risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are
exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical
delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or
securities in an amount that varies depending on a contracts size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are
included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
Securities deposited as initial margin are designated in
the Schedules of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash
equal to the daily fluctuation in market value of the contract (variation margin). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts
in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the
notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
6. |
INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory: Each Fund entered into an Investment Advisory Agreement with the Manager, the Funds investment adviser and an indirect,
wholly-owned subsidiary of BlackRock, Inc. (BlackRock), to provide investment advisory and administrative services. The Manager is responsible for the management of each Funds portfolio and provides the personnel, facilities,
equipment and certain other services necessary to the operations of each Fund.
For such services, each Fund pays the Manager a monthly fee at an
annual rate equal to the following percentages of the average daily value of each Funds net assets:
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MUC |
|
|
MUJ |
|
|
MIY |
|
|
MPA |
|
Investment advisory fees |
|
|
0.55 |
% |
|
|
0.50 |
% |
|
|
0.49 |
% |
|
|
0.49 |
% |
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N O T E S T O
F I N A N C I A L S T A T E M E N T S |
|
47 |
Notes to Financial Statements (unaudited) (continued)
For purposes of calculating
these fees, net assets mean the total assets of the Fund minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). It is
understood that the liquidation preference of any outstanding preferred stock (other than accumulated dividends) and TOB Trusts is not considered a liability in determining a Funds NAV.
Expense Waivers and Reimbursements: With respect to each Fund, the Manager contractually agreed to waive its investment advisory fees by the amount
of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the affiliated money market fund waiver) through June 30, 2023. The contractual agreement may be
terminated upon 90 days notice by a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of a Fund. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements
of Operations. For the six months ended January 31, 2022, the amounts waived were as follows:
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|
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|
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Fund Name |
|
Fees Waived and/or Reimbursed by
the Manager |
|
MUC |
|
$ |
42 |
|
MUJ |
|
|
810 |
|
MIY |
|
|
393 |
|
MPA |
|
|
410 |
|
The Manager contractually agreed to waive its investment advisory fee with respect to any portion of each Funds
assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2023. The agreement can be renewed for annual periods thereafter, and may be
terminated on 90 days notice, each subject to approval by a majority of the Funds Independent Directors. For the six months ended January 31, 2022, there were no fees waived by the Manager pursuant to this arrangement.
The Manager, for MUC, voluntarily agreed to waive its investment advisory fee on the proceeds of the Preferred Shares and TOB Trusts that exceed 35% of
total assets minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). The voluntary waiver may be reduced or discontinued at any time
without notice. This amount is included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended January 31, 2022 the waiver was $106,068.
The Manager reimbursed MUC and MUJ $90,921 and $133,055 respectively, for reorganization costs.
Directors and Officers: Certain directors and/or officers of the Fund are directors and/or officers of BlackRock or its affiliates. The Funds
reimburse the Manager for a portion of the compensation paid to the Funds Chief Compliance Officer, which is included in Directors and Officer in the Statements of Operations.
For the six months ended January 31, 2022, purchases and sales of investments, excluding short-term investments, were as
follows:
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|
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|
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|
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|
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Fund Name |
|
Purchases |
|
|
Sales |
|
MUC |
|
$ |
96,047,786 |
|
|
$ |
106,335,091 |
|
MUJ |
|
|
47,560,440 |
|
|
|
35,369,411 |
|
MIY |
|
|
59,464,058 |
|
|
|
57,201,572 |
|
MPA |
|
|
25,899,446 |
|
|
|
30,615,889 |
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8. |
INCOME TAX INFORMATION |
It is each Funds policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment
companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on
each Funds U.S. federal tax returns generally remains open for a period of three fiscal years after they are filed. The statutes of limitations on each Funds state and local tax returns may remain open for an additional year depending
upon the jurisdiction.
Management has analyzed tax laws and regulations and their application to the Funds as of January 31, 2022, inclusive of
the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds financial statements.
As of July 31, 2021, the Funds had non-expiring capital loss carryforwards available to offset future
realized capital gains as follows:
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|
|
|
|
Fund Name |
|
Non-Expiring |
|
MUC |
|
$ |
19,765,284 |
|
MUJ |
|
|
8,621,838 |
|
MIY |
|
|
8,035,624 |
|
MPA |
|
|
5,479,103 |
|
|
|
|
48 |
|
2 0 2 2
B L A C K R O C K S E M I - A N N U A L
R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
As of January 31, 2022,
gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
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Fund Name |
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Tax Cost |
|
|
Gross Unrealized
Appreciation |
|
|
Gross Unrealized
Depreciation |
|
|
Net Unrealized
Appreciation (Depreciation) |
|
MUC |
|
$ |
811,833,267 |
|
|
$ |
60,167,836 |
|
|
$ |
(7,557,202 |
) |
|
$ |
52,610,634 |
|
MUJ |
|
|
650,946,780 |
|
|
|
45,218,532 |
|
|
|
(5,716,575 |
) |
|
|
39,501,957 |
|
MIY |
|
|
637,612,900 |
|
|
|
34,633,869 |
|
|
|
(2,966,062 |
) |
|
|
31,667,807 |
|
MPA |
|
|
276,233,925 |
|
|
|
19,625,905 |
|
|
|
(2,590,051 |
) |
|
|
17,035,854 |
|
In the normal course of business, the Funds invest in securities or other instruments and may enter into certain transactions, and such activities
subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors,
including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various
countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a
significant impact on the Funds and their investments.
A Fund structures and sponsors the TOB Trusts in which it holds TOB Residuals and
has certain duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance, securities law and operational risks.
Should short-term interest rates rise, the Funds investments in the TOB Trusts may adversely affect the Funds net investment income and
dividends to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Funds NAVs per share.
The U.S. Securities and Exchange Commission (SEC) and various federal banking and housing agencies have adopted credit risk retention rules
for securitizations (the Risk Retention Rules). The Risk Retention Rules would require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trusts municipal bonds. The Risk
Retention Rules may adversely affect the Funds ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.
TOB Trusts constitute an important component of the municipal bond market. Any modifications or changes to rules governing TOB Trusts may adversely impact
the municipal market and the Funds, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. The ultimate impact of any potential modifications on the TOB Trust market and the overall
municipal market is not yet certain.
Each Fund may invest without limitation in illiquid or less liquid investments or investments in which no
secondary market is readily available or which are otherwise illiquid, including private placement securities. A Fund may not be able to readily dispose of such investments at prices that approximate those at which a Fund could sell such investments
if they were more widely traded and, as a result of such illiquidity, a Fund may have to sell other investments or engage in borrowing transactions if necessary to raise funds to meet its obligations. Limited liquidity can also affect the market
price of investments, thereby adversely affecting a Funds NAV and ability to make dividend distributions. Privately issued debt securities are often of below investment grade quality, frequently are unrated and present many of the same risks
as investing in below investment grade public debt securities.
Market Risk: Each Fund may be exposed to prepayment risk, which is the risk
that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Fund to reinvest in lower yielding securities. Each Fund may also be exposed to reinvestment risk,
which is the risk that income from each Funds portfolio will decline if each Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Fund portfolios current earnings
rate.
Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions,
credit rating downgrades, or the bankruptcy of the issuer could have a significant effect on an issuers ability to make payments of principal and/or interest or otherwise affect the value of such securities. Municipal securities can be
significantly affected by political or economic changes, including changes made in the law after issuance of the securities, as well as uncertainties in the municipal market related to, taxation, legislative changes or the rights of municipal
security holders, including in connection with an issuer insolvency. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the tax benefits
supporting the project or assets or the inability to collect revenues for the project or from the assets. Municipal securities may be less liquid than taxable bonds, and there may be less publicly available information on the financial condition of
municipal security issuers than for issuers of other securities.
An outbreak of respiratory disease caused by a novel coronavirus has developed into
a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the
future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact
the prices and liquidity of a funds investments. The duration of this pandemic and its effects cannot be determined with certainty.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on
its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with
counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and
counterparty credit risks, consist principally of financial instruments and
|
|
|
N O T E S T O
F I N A N C I A L S T A T E M E N T S |
|
49 |
Notes to Financial Statements (unaudited) (continued)
receivables due from
counterparties. The extent of the Funds exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held
by the Funds.
A derivative contract may suffer a mark-to-market loss
if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such
instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a
Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and
variation margin that is held in a clearing brokers customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at
that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing brokers customers, potentially resulting
in losses to the Funds.
Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a funds objectives,
minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Funds portfolio are disclosed in its Schedule of Investments.
Certain Funds invest a substantial amount of their assets in issuers located in a single state or limited number of states. When a Fund concentrates its
investments in this manner, it assumes the risk that economic, regulatory, political or social conditions affecting that state or group of states could have a significant impact on the fund and could affect the income from, or the value or liquidity
of, the funds portfolio. Investment percentages in specific states or U.S. territories are presented in the Schedules of Investments.
Certain
Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social
conditions affecting such sectors may have a significant impact on the Fund and could affect the income from, or the value or liquidity of, the Funds portfolio. Investment percentages in specific sectors are presented in the Schedules of
Investments.
Certain Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income
markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall
and decrease as interest rates rise. The Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates.
LIBOR Transition Risk: The United Kingdoms Financial Conduct Authority announced a phase out of the London Interbank Offered Rate
(LIBOR). Although many LIBOR rates ceased to be published or no longer are representative of the underlying market they seek to measure after December 31, 2021, a selection of widely used USD LIBOR rates will continue to be
published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process
away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the
Funds is uncertain.
10. |
CAPITAL SHARE TRANSACTIONS |
MPA is authorized to issue an unlimited number of Common Shares, all of which were initially classified as Common Shares. MUC, MUJ and MIY each is
authorized to issue 200 million shares, all of which were initially classified as Common Shares. The par value for each Funds Common Shares is $0.10. The par value for each Funds Preferred Shares outstanding is $0.10, except for
MPA, which is $0.05. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without the approval of Common Shareholders. MPA is authorized to issue 1 million Preferred Shares.
Common Shares
For the periods shown, shares issued and
outstanding increased by the following amounts as a result of dividend reinvestment:
|
|
|
|
|
|
|
|
|
Fund Name |
|
Six Months Ended 01/31/22 |
|
|
Year Ended 07/31/21 |
|
MUC |
|
|
29,799 |
|
|
|
9,153 |
|
MUJ |
|
|
9,684 |
|
|
|
|
|
MPA |
|
|
8,523 |
|
|
|
|
|
For the six months ended January 31, 2022 and the year ended July 31, 2021, shares issued and outstanding
remained constant for MIY.
The Funds participate in an open market share repurchase program (the Repurchase Program). From
December 1, 2020 through November 30, 2021, each Fund may repurchase up to 5% of its outstanding common shares under the Repurchase Program, based on common shares outstanding as of the close of business on November 30, 2020, subject
to certain conditions. From December 1, 2021 through November 30, 2022, each Fund may repurchase up to 5% of its outstanding common shares under the Repurchase Program, based on common shares outstanding as of the close of business on
November 30, 2021, subject to certain conditions. There is no assurance that the Funds will purchase shares in any particular amounts.
|
|
|
50 |
|
2 0 2 2
B L A C K R O C K S E M I - A N N U A L
R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
The total cost of the shares
repurchased is reflected in MPAs Statements of Changes in Net Assets. For the periods shown, shares repurchased and cost, including transaction costs were as follows:
|
|
|
|
|
|
|
|
|
|
|
MPA |
|
|
|
Shares |
|
|
Amounts |
|
Six Months Ended January 31, 2022 |
|
|
|
|
|
$ |
|
|
Year Ended July 31, 2021 |
|
|
1,307 |
|
|
|
18,678 |
|
Preferred Shares
A
Funds Preferred Shares rank prior to its Common Shares as to the payment of dividends by the Fund and distribution of assets upon dissolution or liquidation of the Fund. The 1940 Act prohibits the declaration of any dividend on Common Shares
or the repurchase of Common Shares if the Fund fails to maintain asset coverage of at least 200% of the liquidation preference of the Funds outstanding Preferred Shares. In addition, pursuant to the Preferred Shares governing
instruments, a Fund is restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with its Preferred Shares or repurchasing such shares if the Fund fails to declare and pay dividends on the Preferred Shares,
redeem any Preferred Shares required to be redeemed under the Preferred Shares governing instruments or comply with the basic maintenance amount requirement of the ratings agencies rating the Preferred Shares.
Holders of Preferred Shares have voting rights equal to the voting rights of holders of Common Shares (one vote per share) and vote together with holders
of Common Shares (one vote per share) as a single class on certain matters. Holders of Preferred Shares, voting as a separate class, are also entitled to (i) elect two members of the Board, (ii) elect the full Board if dividends on the
Preferred Shares are not paid for a period of two years and (iii) a separate class vote to amend the Preferred Share governing documents. In addition, the 1940 Act requires the approval of the holders of a majority of any outstanding Preferred
Shares, voting as a separate class, to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Funds sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.
VRDP Shares
MUJ, MIY and MPA (for purposes of this section,
each a VRDP Fund) have issued Series W-7 VRDP Shares, $100,000 liquidation preference per share, in one or more privately negotiated offerings to qualified institutional buyers as defined pursuant
to Rule 144A under the Securities Act of 1933, as amended (the Securities Act). The VRDP Shares include a liquidity feature and may be subject to a special rate period. As of period end, the VRDP Shares outstanding were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund Name |
|
Issue
Date |
|
|
Shares
Issued |
|
|
Aggregate
Principal |
|
|
Maturity Date |
|
MUJ |
|
|
06/30/11 |
|
|
|
1,727 |
|
|
$ |
172,700,000 |
|
|
|
07/01/41 |
|
|
|
|
04/13/15 |
|
|
|
644 |
|
|
|
64,400,000 |
|
|
|
07/01/41 |
|
MIY |
|
|
04/21/11 |
|
|
|
1,446 |
|
|
|
144,600,000 |
|
|
|
05/01/41 |
|
|
|
|
09/14/15 |
|
|
|
873 |
|
|
|
87,300,000 |
|
|
|
05/01/41 |
|
MPA |
|
|
05/19/11 |
|
|
|
663 |
|
|
|
66,300,000 |
|
|
|
06/01/41 |
|
|
|
|
04/13/15 |
|
|
|
163 |
|
|
|
16,300,000 |
|
|
|
06/01/41 |
|
Redemption Terms: A VRDP Fund is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed
or repurchased. Six months prior to the maturity date, a VRDP Fund is required to begin to segregate liquid assets with the Funds custodian to fund the redemption. In addition, a VRDP Fund is required to redeem certain of its outstanding VRDP
Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.
Subject to certain conditions, the VRDP
Shares may also be redeemed, in whole or in part, at any time at the option of a VRDP Fund. The redemption price per VRDP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends.
Liquidity Feature: VRDP Shares are subject to a fee agreement between the VRDP Fund and the liquidity provider that requires a per annum liquidity
fee and, in some cases, an upfront or initial commitment fee, payable to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of Operations. As of period end, the fee agreement is set to expire, unless
renewed or terminated in advance, as follows:
|
|
|
|
|
|
|
|
|
MUJ |
|
MIY |
|
MPA |
Expiration date |
|
04/30/23 |
|
07/09/22 |
|
07/02/22 |
The VRDP Shares are also subject to a purchase agreement in connection with the liquidity feature. In the event a purchase
agreement is not renewed or is terminated in advance, and the VRDP Shares do not become subject to a purchase agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to
the termination of the purchase agreement. In the event of such mandatory purchase, a VRDP Fund is required to redeem the VRDP Shares six months after the purchase date. Immediately after such mandatory purchase, the VRDP Fund is required to begin
to segregate liquid assets with its custodian to fund the redemption. There is no assurance that a VRDP Fund will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.
Remarketing: A VRDP Fund may incur remarketing fees on the aggregate principal amount of all its VRDP Shares, which, if any, are included in
remarketing fees on Preferred Shares in the Statements of Operations. During any special rate period (as described below), a VRDP Fund may incur nominal or no remarketing fees.
|
|
|
N O T E S T O
F I N A N C I A L S T A T E M E N T S |
|
51 |
Notes to Financial Statements (unaudited) (continued)
Ratings: As of period
end, the VRDP Shares were assigned the following ratings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund Name |
|
|
Moodys Investors
Service, Inc. Long-Term
Ratings |
|
|
|
Fitch Ratings, Inc.
Long-Term Ratings |
|
|
|
Fitch Ratings, Inc.
Short-Term Ratings |
|
|
|
S&P Global
Short-Term Ratings |
|
MUJ |
|
|
Aa2 |
|
|
|
AA |
|
|
|
N/A |
|
|
|
N/A |
|
MIY |
|
|
Aa2 |
|
|
|
AA |
|
|
|
N/A |
|
|
|
N/A |
|
MPA |
|
|
Aa2 |
|
|
|
AA |
|
|
|
F1+ |
|
|
|
A-1+ |
|
Any short-term ratings on VRDP Shares are directly related to the short-term ratings of the liquidity provider for such
VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in the short-term credit ratings of the VRDP Shares as rated by Moodys Investors Service, Inc., Fitch Ratings, Inc. and S&P Global Ratings. The
liquidity provider may be terminated prior to the scheduled termination date if the liquidity provider fails to maintain short-term debt ratings in one of the two highest rating categories.
Special Rate Period: A VRDP Fund has commenced a special rate period with respect to its VRDP Shares, during which the VRDP Shares will
not be subject to any remarketing and the dividend rate will be based on a predetermined methodology. During a special rate period, short-term ratings on VRDP Shares are withdrawn. As of period end, the following VRDP Funds have commenced/are set to
commence a special rate period:
|
|
|
|
|
Fund Name |
|
Commencement
Date |
|
Expiration Date as
of Period Ended 01/31/22 |
MUJ |
|
04/17/14 |
|
04/15/23 |
MIY |
|
06/25/20 |
|
06/25/22 |
Prior to the expiration date, the VRDP Fund and the VRDP Shares holder may mutually agree to extend the special rate
period. If a special rate period is not extended, the VRDP Shares will revert to remarketable securities upon the termination of the special rate period and will be remarketed and available for purchase by qualified institutional investors.
During the special rate period: (i) the liquidity and fee agreements remain in effect, (ii) VRDP Shares remain subject to mandatory redemption
by the VRDP Fund on the maturity date, (iii) VRDP Shares will not be remarketed or subject to optional or mandatory tender events, (iv) the VRDP Fund is required to comply with the same asset coverage, basic maintenance amount and leverage
requirements for the VRDP Shares as is required when the VRDP Shares are not in a special rate period, (v) the VRDP Fund will pay dividends monthly based on the sum of an agreed upon reference rate and a percentage per annum based on the
long-term ratings assigned to the VRDP Shares and (vi) the VRDP Fund will pay nominal or no fees to the liquidity provider and remarketing agent.
Dividends: Except during the Special Rate Period as described above, dividends on the VRDP Shares are payable monthly at a variable rate set weekly
by the remarketing agent. Such dividend rates are generally based upon a spread over a base rate and cannot exceed a maximum rate. A change in the short-term credit rating of the liquidity provider or the VRDP Shares may adversely affect the
dividend rate paid on such shares, although the dividend rate paid on the VRDP Shares is not directly based upon either short-term rating. In the event of a failed remarketing, the dividend rate of the VRDP Shares will be reset to a maximum rate.
The maximum rate is determined based on, among other things, the long-term preferred share rating assigned to the VRDP Shares and the length of time that the VRDP Shares fail to be remarketed.
For the six months ended January 31, 2022, the annualized dividend rate for the VRDP Shares were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
MUJ |
|
MIY |
|
MPA |
Dividend rates |
|
|
|
0.90% |
|
1.06% |
|
0.13% |
For the six months ended January 31, 2022, VRDP Shares issued and outstanding of each VRDP Fund remained constant.
VMTP Shares
MUC (for
purposes of this section, a VMTP Fund) have issued Series W-7 VMTP Shares, $100,000 liquidation preference per share, in one or more privately negotiated offerings to qualified institutional buyers
as defined pursuant to Rule 144A under the Securities Act. The VMTP Shares are subject to certain restrictions on transfer, and a VMTP Fund may also be required to register its VMTP Shares for sale under the Securities Act under certain
circumstances. As of period end, the VMTP Shares outstanding and assigned long-term ratings were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund Name |
|
|
Issue Date |
|
|
|
Shares Issued |
|
|
|
Aggregate
Principal |
|
|
|
Term Redemption
Date |
|
|
|
Moodys
Rating |
|
|
|
Fitch Rating |
|
MUC |
|
|
03/22/12 |
|
|
|
2,540 |
|
|
$ |
254,000,000 |
|
|
|
03/30/23 |
|
|
|
Aa2 |
|
|
|
AA |
|
Redemption Terms: A VMTP Fund is required to redeem its VMTP Shares on the term redemption date, unless earlier
redeemed or repurchased or unless extended. There is no assurance that a term will be extended further or that any VMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the
VMTP Shares. Six months prior to the term redemption date, a VMTP Fund is required to begin to segregate liquid assets with its custodian to fund the redemption. In addition, a VMTP Fund is required to redeem certain of its outstanding VMTP Shares
if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.
|
|
|
52 |
|
2 0 2 2
B L A C K R O C K S E M I - A N N U A L
R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
Subject to certain
conditions, VMTP Shares may be redeemed, in whole or in part, at any time at the option of the VMTP Fund. The redemption price per VMTP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends.
Dividends: Dividends on the VMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread to the
Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index or to a percentage of the one-month LIBOR rate, as set forth in the VMTP Shares governing instrument. The fixed
spread is determined based on the long-term preferred share rating assigned to the VMTP Shares by the ratings agencies then rating the VMTP Shares.
The dividend rate on VMTP Shares is subject to a step-up spread if the VMTP Fund fails to comply with certain
provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and complying with certain asset coverage and leverage requirements.
For the six months ended January 31, 2022, the average annualized dividend rates for the VMTP Shares were as follows:
For the six months ended January 31, 2022, VMTP Shares issued and outstanding of each VMTP Fund remained constant.
Offering Costs: The Funds incurred costs in connection with the issuance of VRDP and VMTP Shares, which were recorded as a direct deduction
from the carrying value of the related debt liability and will be amortized over the life of the VRDP and VMTP Shares with the exception of any upfront fees paid by a VRDP Fund to the liquidity provider which, if any, were amortized over the life of
the liquidity agreement. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.
Financial Reporting: The VRDP and VMTP Shares are considered debt of the issuer; therefore, the liquidation preference, which approximates fair
value of the VRDP and VMTP Shares, is recorded as a liability in the Statements of Assets and Liabilities net of deferred offering costs. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities,
and the dividends accrued and paid on the VRDP and VMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VRDP and VMTP Shares are treated as equity for tax purposes.
Dividends paid to holders of the VRDP and VMTP Shares are generally classified as tax-exempt income for tax-reporting purposes. Dividends and amortization of deferred
offering costs on VRDP and VMTP Shares are included in interest expense, fees and amortization of offering costs in the Statements of Operations:
|
|
|
|
|
|
|
|
|
Fund Name |
|
|
Dividends Accrued |
|
|
|
Deferred Offering
Costs Amortization |
|
MUC |
|
$ |
1,018,018 |
|
|
$ |
|
|
MUJ |
|
|
1,069,808 |
|
|
|
10,695 |
|
MIY |
|
|
1,233,523 |
|
|
|
29,828 |
|
MPA |
|
|
53,882 |
|
|
|
9,674 |
|
Managements evaluation of the impact of all subsequent events on the Funds financial statements was completed through the date the financial
statements were issued and the following items were noted:
The Funds declared and paid or will pay distributions to Common Shareholders as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund Name |
|
|
Declaration Date |
|
|
|
Record Date |
|
|
|
Payable/
Paid Date |
|
|
|
Dividend Per
Common Share |
|
MUC |
|
|
02/01/22 |
|
|
|
02/15/22 |
|
|
|
03/01/22 |
|
|
$ |
0.055000 |
|
|
|
|
03/01/22 |
|
|
|
03/15/22 |
|
|
|
04/01/22 |
|
|
|
0.055000 |
|
|
|
|
03/18/22 |
|
|
|
04/07/22 |
|
|
|
05/02/22 |
|
|
|
0.055000 |
(a) |
MUJ |
|
|
02/01/22 |
|
|
|
02/15/22 |
|
|
|
03/01/22 |
|
|
|
0.063000 |
|
|
|
|
03/01/22 |
|
|
|
03/15/22 |
|
|
|
04/01/22 |
|
|
|
0.063000 |
|
|
|
|
03/18/22 |
|
|
|
04/07/22 |
|
|
|
05/02/22 |
|
|
|
0.063000 |
(a) |
MIY |
|
|
02/01/22 |
|
|
|
02/15/22 |
|
|
|
03/01/22 |
|
|
|
0.056000 |
|
|
|
|
03/01/22 |
|
|
|
03/15/22 |
|
|
|
04/01/22 |
|
|
|
0.056000 |
|
MPA |
|
|
02/01/22 |
|
|
|
02/15/22 |
|
|
|
03/01/22 |
|
|
|
0.055000 |
|
|
|
|
03/01/22 |
|
|
|
03/15/22 |
|
|
|
04/01/22 |
|
|
|
0.055000 |
|
|
(a) |
Net investment income special dividend. |
|
|
|
|
|
|
|
|
|
|
Preferred Shares(a) |
Fund Name |
|
Shares |
|
Series |
|
Declared |
MUC |
|
VMTP |
|
W-7 |
|
$ 176,826 |
MUJ |
|
VRDP |
|
W-7 |
|
183,249 |
MIY |
|
VRDP |
|
W-7 |
|
201,658 |
MPA |
|
VRDP |
|
W-7 |
|
16,316 |
|
(a) |
Dividends declared for period February 1, 2022 to February 28, 2022. |
|
|
|
|
N O T E S T O
F I N A N C I A L S T A T E M E N T S |
|
53 |
Additional Information