N-CSR 1 d48412dncsr.htm BLACKROCK MUNIVEST FUND, INC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-05611

Name of Fund: BlackRock MuniVest Fund, Inc. (MVF)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

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

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

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

Date of fiscal year end: 08/31/2020

Date of reporting period: 08/31/2020

Item 1 – Report to Stockholders

|  | AUGUST 31, 2020

|  | 2020 Annual Report

BlackRock Municipal Bond Trust (BBK)

BlackRock Municipal Income Investment Quality Trust (BAF)

BlackRock Municipal Income Quality Trust (BYM)

BlackRock Municipal Income Trust II (BLE)

BlackRock MuniHoldings Investment Quality Fund (MFL)

BlackRock MuniVest Fund, Inc. (MVF)

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Trust’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from BlackRock or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future reports in paper free of charge. If you hold accounts directly with BlackRock, you can call Computershare at (800) 699-1236 to request that you continue receiving paper copies of your shareholder reports. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds advised by BlackRock Advisors, LLC or its affiliates, or all funds held with your financial intermediary, as applicable.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary, if you hold accounts through a financial intermediary. Please note that not all financial intermediaries may offer this service.

Not FDIC Insured • May Lose Value • No Bank Guarantee

Supplemental Information (unaudited)

Section 19(a) Notices

BlackRock MuniVest Fund, Inc.’s (MVF) (the “Trust”) amounts and sources of distributions reported are estimates and are being provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon the Trust’s investment experience during the year and may be subject to changes based on tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

August 31, 2020

|  | Total Cumulative Distributions for the Fiscal Period |  |  | % Breakdown of the Total Cumulative Distributions for the Fiscal Period |
Trust Name |  | Net Investment Income |  |  | Net Realized Capital Gains Short-Term |  |  | Net Realized Capital Gains Long-Term |  |  | Return of Capital |  |  | Total Per Common Share |  |  | Net Investment Income |  |  | Net Realized Capital Gains Short-Term |  |  | Net Realized Capital Gains Long-Term |  |  | Return of Capital |  |  | Total Per Common Share |
MVF |  | $ | 0.410424 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 0.410424 |  |  |  | 100 | % |  |  | — | % |  |  | — | % |  |  | — | % |  |  | 100 | %

Section 19(a) notices for the Trust, as applicable, are available on the BlackRock website at blackrock.com.

2 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

The Markets in Review

Dear Shareholder,

The 12-month reporting period as of August 31, 2020 has been a time of sudden change in global financial markets, as the emergence and spread of the coronavirus (or “COVID-19”) led to a vast disruption in the global economy and financial markets. For most of the first half of the reporting period, U.S. equities and bonds both delivered impressive returns, despite fears and doubts about the economy that were ultimately laid to rest with unprecedented monetary stimulus and a sluggish yet resolute performance from the U.S. economy. But as the threat from the coronavirus became more apparent throughout February and March 2020, countries around the world took economically disruptive countermeasures. Stay-at-home orders and closures of non-essential businesses became widespread, many workers were laid off, and unemployment claims spiked, causing a global recession and a sharp fall in equity prices.

After markets hit their lowest point during the reporting period in late March 2020, a steady recovery ensued, as businesses began to re-open and governments learned to adapt to life with the virus. Equity prices continued to rise throughout the summer, fed by strong fiscal and monetary support and improving economic indicators. By the end of the reporting period, all major investment categories posted positive returns, and many equity indices were near all-time highs. In the United States, large-capitalization stocks advanced significantly, outperforming small-capitalization stocks, which also gained for the reporting period. International equities from developed economies also turned in a positive performance while lagging emerging market stocks, which rebounded sharply.

During the market downturn, the performance of different types of fixed-income securities initially diverged due to a reduced investor appetite for risk. U.S. Treasuries benefited from the risk-off environment, and posted solid returns, as the 10-year U.S. Treasury yield (which is inversely related to bond prices) touched an all-time low. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and both investment-grade and high-yield bonds recovered to post positive returns.

The Fed reduced interest rates twice in late 2019 to support slowing economic growth. After the coronavirus outbreak, the Fed instituted two emergency rate cuts, pushing short-term interest rates close to zero. To stabilize credit markets, the Fed also implemented a new bond-buying program, as did several other central banks around the world, including the European Central Bank and the Bank of Japan.

Looking ahead, while coronavirus-related disruptions have clearly hindered worldwide economic growth, we believe that the global expansion is likely to continue as economic activity resumes. Several risks remain, however, including a potential resurgence of the coronavirus amid loosened restrictions, policy fatigue among governments already deep into deficit spending, and structural damage to the financial system from lengthy economic interruptions.

Overall, we favor a moderately positive stance toward risk, and in particular toward credit given the extraordinary central bank measures taken in recent months. This support extends beyond investment-grade corporates and into high-yield, leading to attractive opportunities in that end of the market. We believe that international diversification and sustainable investments can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments. We remain neutral on equities overall while favoring European stocks, which are poised for cyclical upside as re-openings continue.

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of August 31, 2020
|  | 6-Month |  | 12-Month
U.S. large cap equities (S&P 500 Index) |  | 19.63% |  | 21.94%
U.S. small cap equities (Russell 2000 Index) |  | 6.57 |  | 6.02
International equities (MSCI Europe, Australasia, Far East Index) |  | 7.10 |  | 6.13
Emerging market equities (MSCI Emerging Markets Index) |  | 11.23 |  | 14.49
3-month Treasury bills (ICE BofA 3-Month U.S. Treasury Bill Index) |  | 0.34 |  | 1.26
U.S. Treasury securities (ICE BofA 10-Year U.S. Treasury Index) |  | 4.67 |  | 8.93
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index) |  | 2.98 |  | 6.47
Tax-exempt municipal bonds (S&P Municipal Bond Index) |  | 0.29 |  | 3.15
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index) |  | 3.04 |  | 4.65
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only.You cannot invest directly in an index.

THIS PAGE IS NOT PART OF YOUR FUND REPORT |  | 3

Table of Contents

|  | Page |
Supplemental Information |  |  | 2 |
The Markets in Review |  |  | 3 |
Annual Report: |  |  |  |
Municipal Market Overview |  |  | 5 |
The Benefits and Risks of Leveraging |  |  | 6 |
Derivative Financial Instruments |  |  | 6 |
Trust Summary |  |  | 7 |
Financial Statements: |  |  |  |
Schedules of Investments |  |  | 25 |
Statements of Assets and Liabilities |  |  | 64 |
Statements of Operations |  |  | 66 |
Statements of Changes in Net Assets |  |  | 68 |
Statements of Cash Flows |  |  | 71 |
Financial Highlights |  |  | 73 |
Notes to Financial Statements |  |  | 79 |
Report of Independent Registered Public Accounting Firm |  |  | 91 |
Disclosure of Investment Advisory Agreements |  |  | 92 |
Fund Investment Objectives, Policies and Risks |  |  | 96 |
Automatic Dividend Reinvestment Plan |  |  | 112 |
Trustee and Officer Information |  |  | 113 |
Additional Information |  |  | 116 |
Glossary of Terms Used in this Report |  |  | 119 |

4 |  |

Municipal Market Overview For the Reporting Period Ended August 31, 2020

Municipal Market Conditions

Municipal bonds posted positive total returns during the period amid increased volatility. Early in the period, strong performance was driven by a favorable technical backdrop. However, as the economy shut down as a result of the COVID-19 pandemic, the municipal market experienced volatility that was worse than during the height of the global financial crisis. Performance plummeted -10.87% during a two-week period in March, before rebounding on valuation-based buying. (For comparison, the -11.86% correction in 2008 spanned more than a month.) As federal authorities stepped in to provide stimulus, passing the CARES Act and creating the Municipal Lending Facility, the market stabilized. Strong performance returned alongside the re-opening of the economy but stalled in August as Congress failed to pass additional fiscal aide.

Similarly, strong technical support during most of the period temporarily waned as COVID-19 fears spurred risk-off sentiment and a streak of 60-consecutive weeks of inflows turned to record outflows. During the 12 months ended August 31, 2020, municipal bond funds experienced net inflows totaling $42 billion, drawn down by nearly $46 billion in outflows during |  | S&P Municipal Bond Index
| Total Returns as of August 31, 2020
| 6 months: 0.29%
| 12 months: 3.15%

the months of March and April (based on data from the Investment Company Institute). For the same 12-month period, new issuance was robust at $452 billion but slowed during the height of pandemic as market liquidity became constrained amid the flight to quality. Taxable municipal issuance was elevated as issuers increasingly advance refunded tax-exempt debt in the taxable municipal market for cost savings.

A Closer Look at Yields

| From August 31, 2019 to August 31, 2020, yields on AAA-rated 30-year municipal bonds decreased by 28 basis points (“bps”) from 1.84% to 1.56%, while ten-year rates decreased by 41 bps from 1.22% to 0.81% and five-year rates decreased by 77 bps from 1.03% to 0.26% (as measured by Thomson Municipal Market Data). As a result, the municipal yield curve bull steepened over the 12-month period with the spread between two- and 30-year maturities steepening by 57 bps, lagging the 85 bps of steepening experienced in the U.S.Treasury curve.

| During the same period, tax-exempt municipal bonds significantly under performed U.S. Treasuries across the yield curve. As a result, relative valuations reset to more attractive levels and spurred increased participation from crossover investors.

Financial Conditions of Municipal Issuers

The COVID-19 pandemic is an unprecedented shock to the system impacting nearly every sector in the municipal market. Luckily, most states and municipalities were in excellent fiscal health before the crisis and the federal government has provided an incredible amount of support. BlackRock expects ongoing stability in high-quality states as well as school districts and local governments given that property taxes have proven resilient in past economic downturns. Essential public services such as power, water, and sewer are protected segments. State housing authority bonds, flagship universities, and strong national and regional health systems are well positioned to absorb the impact of the economic shock. However, some segments are facing daunting financial challenges and additional federal support may not materialize, requiring issuers to draw down reserves, raise user fees / taxes, slash expenditures, and/or borrow to meet financial obligations. Critical providers (safety net hospitals, mass transit systems, airports) with limited resources will require funding from the states and broader municipalities they serve. BlackRock anticipates that a small subset of the market, mainly non-rated stand-alone projects, will experience significant credit deterioration. Assuming the worst case, a prolonged recession would likely mean a spate of defaults, primarily in non-rated credits, and the migration of the municipal market’s overall credit quality from double-A to a still-strong single-A rating. As a result, BlackRock advocates careful credit selection and anticipate increased credit dispersion as the market navigates near-term uncertainty.

The opinions expressed are those of BlackRock as of August 31, 2020 and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (“AMT”). Capital gains distributions, if any, are taxable.

The S&P Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the AMT. Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

MUNICIPAL MARKET OVERVIEW |  | 5

The Benefits and Risks of Leveraging

The Trusts may utilize leverage to seek to enhance the distribution rate on, and net asset value (“NAV”) of, their common shares (“Common Shares”). However, there is no guarantee that these objectives can be achieved in all interest rate environments.

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

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

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed each Trust’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Trust had not used leverage. Furthermore, the value of each Trust’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the value of a Trust’s obligations under its respective leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence each Trust’s NAV positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that each Trust’s intended leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Trust’s NAV, market price and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV and market price of a Trust’s Common Shares than if the Trust were not leveraged. In addition, each Trust may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Trust to incur losses. The use of leverage may limit a Trust’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Trust incurs expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares. Moreover, to the extent the calculation of each Trust’s investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to each Trust’s investment adviser will be higher than if the Trusts did not use leverage.

To obtain leverage, each Trust has issued Variable Rate Demand Preferred Shares (“VRDP Shares”) or Variable Rate Muni Term Preferred Shares (“VMTP Shares”) (collectively, “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOB Trusts”) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), each Trust is permitted to issue debt up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Trust may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act.

In addition, a Trust may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.

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

Derivative Financial Instruments

The Trusts may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Trusts’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Trust can realize on an investment and/or may result in lower distributions paid to shareholders. The Trusts’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

6 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Trust Summary as of August 31, 2020 |  | BlackRock Municipal Bond Trust (BBK)

Investment Objective

BlackRock Municipal Bond Trust’s (BBK) (the “Trust”) investment objective is to provide current income exempt from regular U.S. federal income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from regular U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its managed assets in municipal bonds that are investment grade quality or, if unrated, determined to be of comparable quality by the investment adviser at the time of investment. The Trust may invest directly in securities or synthetically through the use of derivatives.

On June 16, 2020, the Board of Trustees of BBK and the Board of Directors of BlackRock MuniHoldings Fund, Inc. (MHD) each approved the reorganization of BBK into MHD. Subject to approvals by each Trust’s shareholders and the satisfaction of customary closing conditions, the reorganization is expected to occur during the first quarter of 2021.

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

Trust Information

Symbol on New York Stock Exchange |  | BBK
Initial Offering Date |  | April 30, 2002
Yield on Closing Market Price as of August 31, 2020 ($15.39)(a) |  | 4.76%
Tax Equivalent Yield(b) |  | 8.04%
Current Monthly Distribution per Common Share(c) |  | $0.0610
Current Annualized Distribution per Common Share(c) |  | $0.7320
Leverage as of August 31, 2020(d) |  | 40%

| (a) | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results. |

| (b) | Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |

| (c) | The monthly distribution per Common Share, declared on October 1, 2020, was increased to $0.0650 per share. The yield on closing market price, tax equivalent yield, current monthly distribution per Common Share, and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future. |

| (d) | Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 6. |

Market Price and Net Asset Value Per Share Summary

|  | 08/31/20 |  |  | 08/31/19 |  |  | Change |  |  | High |  |  | Low |
Market Price |  | $ | 15.39 |  |  | $ | 15.95 |  |  |  | (3.51 | )% |  | $ | 16.99 |  |  | $ | 10.34 |
Net Asset Value |  |  | 16.42 |  |  |  | 16.82 |  |  |  | (2.38 | ) |  |  | 17.24 |  |  |  | 13.69 |

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

TRUST SUMMARY |  | 7

Trust Summary as of August 31, 2020 (continued) |  | BlackRock Municipal Bond Trust (BBK)

Performance

Returns for the twelve months ended August 31, 2020 were as follows:

|  | Returns Based On |
|  | Market Price |  |  | NAV |
BBK(a)(b) |  |  | 0.84 | % |  |  | 2.02 | %
Lipper General & Insured Municipal Debt Funds (Leveraged)(c) |  |  | 0.67 |  |  |  | 1.89 |

| (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage. |

| (b) | The Trust’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV. |

| (c) | Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper. |

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not an indication of future results.

More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Municipal bonds performed well from the beginning of the reporting period until February 2020 due to accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of COVID-19 led to travel restrictions, business closures and stay-at-home orders, causing significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and low market liquidity inhibited efficient pricing. Municipal bonds recovered in the April-August interval due to aggressive stimulus from the Fed and U.S. Congress, allowing the category to finish in positive territory for the full period.

The Trust’s use of leverage helped results by augmenting income and amplifying the effect of rising prices. The Trust’s positions in bonds with maturities of 20 years and above also contributed to performance. Long-term bonds benefited from their higher interest rate sensitivity given that yields fell significantly. (Prices rise as yields fall.) Holdings in the state tax-backed, school district and tobacco sectors further contributed to results.

The Trust actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as prices rose, this strategy had an adverse impact on performance. The Trust did not hold any U.S. Treasury futures as of August 31, 2020. Select holdings in the high yield category (bonds rated BBB and below, as well as non-rated issues), modestly detracted from performance due to pandemic-related concerns. Student housing debt, in particular, was hurt by the effects of COVID-19. In addition, high yield bonds tied to future revenue projections generally lagged.

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

8 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Trust Summary as of August 31, 2020 (continued) |  | BlackRock Municipal Bond Trust (BBK)

Overview of the Trust’s Total Investments

SECTOR COMPOSITION

Sector(a)(b) |  | 08/31/20 |  |  | 08/31/19 |
County/City/Special District/School District |  |  | 21 | % |  |  | 22 | %
Health |  |  | 17 |  |  |  | 18 |
Transportation |  |  | 15 |  |  |  | 14 |
Utilities |  |  | 13 |  |  |  | 15 |
Education |  |  | 9 |  |  |  | 12 |
Tobacco |  |  | 76 |  |  |  | 6 |
State |  |  | 57 |  |  |  | 7 |
Corporate |  |  | 52 |  |  |  | 2 |
Other |  |  | 4 |  |  |  | — |
Housing |  |  | 4 |  |  |  | 4 |

CALL/MATURITY SCHEDULE

Calendar Year Ended December 31,(a)(c) |  |  | Percentage |
2020 |  |  | 3 | %
2021 |  |  | 11 |
2022 |  |  | 8 |
2023 |  |  | 9 |
2024 |  |  | 8 |

| (a) | Excludes short-term securities. |

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

CREDIT QUALITY ALLOCATION

Credit Rating(a)(d) |  | 08/31/20 |  |  | 08/31/19 |
AAA/Aaa |  |  | 5 | % |  |  | 3 | %
AA/Aa |  |  | 34 |  |  |  | 36 |
A |  |  | 28 |  |  |  | 28 |
BBB/Baa |  |  | 13 |  |  |  | 13 |
BB/Ba |  |  | 5 |  |  |  | 6 |
B |  |  | 2 |  |  |  | 2 |
C |  |  | 1 |  |  |  | — |
CC |  |  | — |  |  |  | 1 |
N/R(e) |  |  | 12 |  |  |  | 11 |

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

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

| (e) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of August 31, 2020 and August 31, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade represents 2% and less than 1%, respectively, of the Trust’s total investments. |

TRUST SUMMARY |  | 9

Trust Summary as of August 31, 2020 |  | BlackRock Municipal Income Investment Quality Trust (BAF)

Investment Objective

BlackRock Municipal Income Investment Quality Trust’s (BAF) (the “Trust”) investment objective is to provide current income exempt from U.S. federal income tax, including the alternative minimum tax and Florida intangible property tax. The Trust seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its managed assets in municipal bonds exempt from U.S. federal income taxes, including the alternative minimum tax. The Trust also invests at least 80% of its managed assets in municipal bonds that are investment grade quality at the time of investment or, if unrated, determined to be of comparable quality by the investment adviser at the time of investment. The Trust may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by BlackRock to be of comparable quality, at the time of purchase. The Trust may invest directly in securities or synthetically through the use of derivatives. Due to the repeal of the Florida intangible personal property tax, in September 2008, the Board gave approval to permit the Trust the flexibility to invest in municipal obligations regardless of geographic location since municipal obligations issued by any state or municipality that provides income exempt from regular U.S. federal income tax would now satisfy the foregoing objective and policy.

On June 16, 2020, the Board of Trustees of BAF and the Board of Directors of BlackRock MuniHoldings Fund, Inc. (MHD) each approved the reorganization of BAF into MHD. Subject to approvals by each Trust’s shareholders and the satisfaction of customary closing conditions, the reorganization is expected to occur during the first quarter of 2021.

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

Trust Information

Symbol on New York Stock Exchange |  | BAF
Initial Offering Date |  | October 31, 2002
Yield on Closing Market Price as of August 31, 2020 ($14.39)(a) |  | 4.79%
Tax Equivalent Yield(b) |  | 8.09%
Current Monthly Distribution per Common Share(c) |  | $0.0575
Current Annualized Distribution per Common Share(c) |  | $0.6900
Leverage as of August 31, 2020(d) |  | 41%

| (a) | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results. |

| (b) | Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |

| (c) | The monthly distribution per Common Share, declared on October 1, 2020, was increased to $0.0615 per share. The yield on closing market price, tax equivalent yield, current monthly distribution per Common Share, and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future. |

| (d) | Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 6. |

Market Price and Net Asset Value Per Share Summary

|  | 8/30/20 |  |  | 8/31/19 |  |  | Change |  |  | High |  |  | Low |
Market Price |  | $ | 14.39 |  |  | $ | 14.53 |  |  |  | (0.96 | )% |  | $ | 15.74 |  |  | $ | 10.47 |
Net Asset Value |  |  | 15.26 |  |  |  | 15.66 |  |  |  | (2.68 | ) |  |  | 15.99 |  |  |  | 12.87 |

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

10 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Trust Summary as of August 31, 2020 (continued) |  | BlackRock Municipal Income Investment Quality Trust (BAF)

Performance

Returns for the twelve months ended August 31, 2020 were as follows:

|  | Returns Based On |
|  | Market Price |  |  | NAV |
BAF(a)(b) |  |  | 3.55 | % |  |  | 1.76 | %
Lipper General & Insured Municipal Debt Funds (Leveraged)(c) |  |  | 0.67 |  |  |  | 1.89 |

| (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage. |

| (b) | The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV. |

| (c) | Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper. |

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not an indication of future results.

More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Municipal bonds performed well from the beginning of the reporting period until February 2020 due to accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of COVID-19 led to travel restrictions, business closures and stay-at-home orders, causing significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and low market liquidity inhibited efficient pricing. Municipal bonds recovered in the April-August interval due to aggressive stimulus from the Fed and U.S. Congress, allowing the category to finish in positive territory for the full period.

The Trust’s positions in bonds with maturities of 20 years and above contributed to performance. Long-term bonds benefited from their higher interest rate sensitivity given that yields fell significantly. (Prices rise as yields fall.) The Trust’s tilt toward higher-quality securities, particularly bonds rated AA and A, also helped performance. At the sector level, holdings in pre-refunded issues aided results, as did positions in health care and transportation debt.

The Trust’s use of leverage also helped results by augmenting income and amplifying the effect of rising prices, was an additional positive. Declining rates also amplified the contribution by reducing the funding cost for the leverage position.

The Trust actively sought to manage interest rate risk using U.S. Treasury futures, which hurt performance due to the breakdown in correlation between the U.S. Treasury and municipal markets in the first quarter of 2020. While municipal bond yields rose due to a substantial increase in yield spreads, U.S. Treasury yields plunged due to investors’ “flight to quality.” The Trust did not hold any U.S. Treasury futures as of August 31, 2020.

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

TRUST SUMMARY |  | 11

Trust Summary as of August 31, 2020 (continued) |  | BlackRock Municipal Income Investment Quality Trust (BAF)

Overview of the Trust’s Total Investments

SECTOR COMPOSITION

Sector(a)(b) |  | 08/31/20 |  |  | 08/31/19 |
Transportation |  |  | 24 | % |  |  | 27 | %
Health |  |  | 17 |  |  |  | 17 |
Education |  |  | 13 |  |  |  | 7 |
County/City/Special District/School District |  |  | 13 |  |  |  | 20 |
Utilities |  |  | 9 |  |  |  | 12 |
State |  |  | 8 |  |  |  | 8 |
Other |  |  | 5 |  |  |  | — |
Housing |  |  | 5 |  |  |  | 6 |
Tobacco |  |  | 4 |  |  |  | 3 |
Corporate |  |  | 2 |  |  |  | — |

CALL/MATURITY SCHEDULE

Calendar Year Ended December 31,(a)(c) |  |  | Percentage |
2020 |  |  | 2 | %
2021 |  |  | 21 |
2022 |  |  | 3 |
2023 |  |  | 16 |
2024 |  |  | 2 |

| (a) | Excludes short-term securities. |

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

CREDIT QUALITY ALLOCATION

Credit Rating(a)(d) |  |  |  |  | 08/31/20 |  |  | 08/31/19 |
AAA/Aaa |  |  |  |  |  |  | 1 | % |  |  | 2 | %
AA/Aa |  |  |  |  |  |  | 50 |  |  |  | 49 |
A |  |  |  |  |  |  | 26 |  |  |  | 30 |
BBB/Baa |  |  |  |  |  |  | 12 |  |  |  | 12 |
BB/Ba |  |  |  |  |  |  | 1 |  |  |  | — |
B |  |  |  |  |  |  | — |  |  |  | 1 |
N/R(e) |  |  |  |  |  |  | 10 |  |  |  | 6 |

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

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

| (e) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of August 31, 2020 and August 31, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade represents 2% and less than 1%, respectively, of the Trust’s total investments. |

12 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Trust Summary as of August 31, 2020 |  | BlackRock Municipal Income Quality Trust (BYM)

Investment Objective

BlackRock Municipal Income Quality Trust’s (BYM) (the “Trust”) investment objective is to provide current income exempt from U.S. federal income taxes, including the alternative minimum tax. The Trust seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its managed assets in municipal bonds exempt from U.S. federal income taxes, including the U.S. federal alternative minimum tax. The Trust also invests at least 80% of its managed assets in municipal bonds that are investment grade quality at the time of investment or, if unrated, determined to be of comparable quality by the investment adviser at the time of investment. The Trust may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by BlackRock to be of comparable quality, at the time of purchase. The Trust may invest directly in securities or synthetically through the use of derivatives.

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

Trust Information

Symbol on New York Stock Exchange |  | BYM
Initial Offering Date |  | October 31, 2002
Yield on Closing Market Price as of August 31, 2020 ($14.19)(a) |  | 4.06%
Tax Equivalent Yield(b) |  | 6.86%
Current Monthly Distribution per Common Share(c) |  | $0.0480
Current Annualized Distribution per Common Share(c) |  | $0.5760
Leverage as of August 31, 2020(d) |  | 39%

| (a) | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results. |

| (b) | Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |

| (c) | The monthly distribution per Common Share, declared on October 1, 2020, was increased to $0.0580 per share. The yield on closing market price, tax equivalent yield, current monthly distribution per Common Share, and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future. |

| (d) | Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 6. |

Market Price and Net Asset Value Per Share Summary

|  | 8/31/20 |  |  | 8/31/19 |  |  | Change |  |  | High |  |  | Low |
Market Price |  | $ | 14.19 |  |  | $ | 14.19 |  |  |  | 0.90 | % |  | $ | 14.75 |  |  | $ | 10.41 |
Net Asset Value |  |  | 15.57 |  |  |  | 15.72 |  |  |  | (0.95 | ) |  |  | 16.10 |  |  |  | 12.90 |

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

TRUST SUMMARY |  | 13

Trust Summary as of August 31, 2020 (continued) |  | BlackRock Municipal Income Quality Trust (BYM)

Performance

Returns for the twelve months ended August 31, 2020 were as follows:

|  | Returns Based On |
|  | Market Price |  |  | NAV |
BYM(a)(b) |  |  | 4.19 | % |  |  | 3.20 | %
Lipper General & Insured Municipal Debt Funds (Leveraged)(c) |  |  | 0.67 |  |  |  | 1.89 |

| (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage. |

| (b) | The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV. |

| (c) | Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper. |

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not an indication of future results.

More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Municipal bonds performed well from the beginning of the reporting period until February 2020 due to accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of COVID-19 led to travel restrictions, business closures and stay-at-home orders, causing significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and low market liquidity inhibited efficient pricing. Municipal bonds recovered in the April-August interval due to aggressive stimulus from the Fed and U.S. Congress, allowing the category to finish in positive territory for the full period.

The Trust’s use of leverage helped results by augmenting income and amplifying the effect of rising prices. The Trust’s positions in bonds with maturities of 20 years and above also contributed to performance. Long-term bonds benefited from their higher interest rate sensitivity given that yields fell significantly. (Prices rise as yields fall.) Holdings in the state tax-backed and school district sectors further contributed to results.

The Trust actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as prices rose, this strategy detracted from performance. The Trust did not hold any U.S. Treasury futures as of August 31, 2020. Select holdings in the education sector, particularly student housing bonds, detracted from performance. Reinvestment risk continued to be a headwind since the proceeds from bonds that matured or were called needed to be reinvested at lower yields compared to bonds that were issued when yields were higher.

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

14 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Trust Summary as of August 31, 2020 (continued) |  | BlackRock Municipal Income Quality Trust (BYM)

Overview of the Trust’s Total Investments

SECTOR COMPOSITION

Sector(a)(b) |  | 08/31/20 |  |  | 08/31/19 |
County/City/Special District/School District |  |  | 24 | % |  |  | 20 | %
Transportation |  |  | 21 |  |  |  | 25 |
Health |  |  | 18 |  |  |  | 20 |
State |  |  | 96 |  |  |  |  |
Utilities |  |  | 813 |  |  |  |  |
Tobacco |  |  | 65 |  |  |  |  |
Education |  |  | 67 |  |  |  |  |
Housing |  |  | 44 |  |  |  |  |
Corporate |  |  | 2 |  |  |  | — |
Other |  |  | 2 |  |  |  | — |

CALL/MATURITY SCHEDULE

Calendar Year Ended December 31,(a)(c) |  |  | Percentage |
2020 |  |  | 2 | %
2021 |  |  | 8 |
2022 |  |  | 8 |
2023 |  |  | 14 |
2024 |  |  | 6 |

| (a) | Excludes short-term securities. |

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

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

CREDIT QUALITY ALLOCATION

Credit Rating(a)(d) |  | 08/31/20 |  |  | 08/31/19 |
AAA/Aaa |  |  | 12 | % |  |  | 7 | %
AA/Aa |  |  | 37 |  |  |  | 45 |
A |  |  | 25 |  |  |  | 24 |
BBB/Baa |  |  | 16 |  |  |  | 16 |
BB/Ba |  |  | 1 |  |  |  | — |
N/R |  |  | 9 | (e) |  |  | 8 |

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

| (e) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of August 31, 2020, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% of the Trust’s total investments. |

TRUST SUMMARY |  | 15

Trust Summary as of August 31, 2020 |  | BlackRock Municipal Income Trust II (BLE)

Investment Objective

BlackRock Municipal Income Trust II’s (BLE) (the “Trust”) investment objective is to provide current income exempt from regular U.S. federal income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its managed assets in municipal bonds that are investment grade quality at the time of investment or, if unrated, determined to be of comparable quality by the investment adviser at the time of investment. The Trust may invest directly in securities or synthetically through the use of derivatives.

On June 16, 2020, the Board of Trustees of BlackRock Strategic Municipal Trust (BSD), the Board of Directors of BlackRock MuniYield Investment Quality Fund (MFT), the Board of Trustees of BlackRock Municipal Income Investment Trust (BBF) and the Board of Trustees of BLE each approved the reorganizations of BSD, MFT and BBF into BLE. Subject to approvals by each Trust’s shareholders and the satisfaction of customary closing conditions, the reorganizations are expected to occur during the first quarter of 2021.

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

Trust Information

Symbol on New York Stock Exchange |  | BLE
Initial Offering Date |  | July 30, 2002
Yield on Closing Market Price as of August 31, 2020 ($14.83)(a) |  | 4.86%
Tax Equivalent Yield(b) |  | 8.21%
Current Monthly Distribution per Common Share(c) |  | $0.0600
Current Annualized Distribution per Common Share(c) |  | $0.7200
Leverage as of August 31, 2020(d) |  | 39%

| (a) | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results. |

| (b) | Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |

| (c) | The monthly distribution per Common Share, declared on October 1, 2020, was increased to $0.0620 per share. The yield on closing market price, tax equivalent yield, current monthly distribution per Common Share, and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future. |

| (d) | Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 6. |

Market Price and Net Asset Value Per Share Summary

|  | 08/31/20 |  |  | 08/31/19 |  |  | Change |  |  | High |  |  | Low |
Market Price |  | $ | 14.83 |  |  | $ | 15.48 |  |  |  | (4.20 | )% |  | $ | 16.12 |  |  | $ | 9.96 |
Net Asset Value |  |  | 14.79 |  |  |  | 15.16 |  |  |  | (2.44 | ) |  |  | 15.55 |  |  |  | 12.41 |

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

16 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Trust Summary as of August 31, 2020 (continued) |  | BlackRock Municipal Income Trust II (BLE)

Performance

Returns for the twelve months ended August 31, 2020 were as follows:

|  | Returns Based On |
|  | Market Price |  |  | NAV |
BLE(a)(b) |  |  | 0.52 | % |  |  | 2.37 | %
Lipper General & Insured Municipal Debt Funds (Leveraged)(c) |  |  | 0.67 |  |  |  | 1.89 |

| (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage. |

| (b) | The Trust’s premium to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV. |

| (c) | Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper. |

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not an indication of future results.

More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Municipal bonds performed well from the beginning of the reporting period until February 2020 due to accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of COVID-19 led to travel restrictions, business closures and stay-at-home orders, causing significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and low market liquidity inhibited efficient pricing. Municipal bonds recovered in the April-August interval due to aggressive stimulus from the Fed and U.S. Congress, allowing the category to finish in positive territory for the full period.

Positions in investment-grade holdings drove overall performance, with more muted contributions from non-investment grade and unrated positions. At the sector level, holdings in state tax-backed, utilities, tobacco, health care and transportation issues were the primary drivers of absolute performance.

The Trust’s use of leverage also helped results by augmenting income and amplifying the effect of rising prices. The Trust’s positions in bonds with maturities of 20 years and above further contributed to performance. Long-term bonds benefited from their higher interest rate sensitivity given that yields fell significantly. (Prices rise as yields fall.)

The Trust actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as prices rose, this strategy detracted from performance. The Trust did not hold any U.S. Treasury futures as of August 31, 2020. A decline in the valuation of a distressed security held in the portfolio was an additional detractor.

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

TRUST SUMMARY |  | 17

Trust Summary as of August 31, 2020 (continued) |  | BlackRock Municipal Income Trust II (BLE)

Overview of the Trust’s Total Investments

SECTOR COMPOSITION

Sector(a)(b) |  | 08/31/20 |  |  | 08/31/19 |
Transportation |  |  | 22 | % |  |  | 23 | %
Utilities |  |  | 15 |  |  |  | 19 |
State |  |  | 12 |  |  |  | 7 |
Health |  |  | 11 |  |  |  | 14 |
Tobacco |  |  | 9 |  |  |  | 9 |
County/City/Special District/School District |  |  | 8 |  |  |  | 17 |
Education |  |  | 8 |  |  |  | 6 |
Corporate |  |  | 8 |  |  |  | 5 |
Other |  |  | 6 |  |  |  | — |
Housing |  |  | 1 |  |  |  | — |

CALL/MATURITY SCHEDULE

Calendar Year Ended December 31,(a)(c) |  |  | Percentage |
2020 |  |  | 9 | %
2021 |  |  | 13 |
2022 |  |  | 9 |
2023 |  |  | 7 |
2024 |  |  | 7 |

| (a) | Excludes short-term securities. |

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

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

CREDIT QUALITY ALLOCATION

Credit Rating(a)(d) |  | 08/31/20 |  |  | 08/31/19 |
AAA/Aaa |  |  | 5 | % |  |  | 4 | %
AA/Aa |  |  | 31 |  |  |  | 30 |
A |  |  | 23 |  |  |  | 22 |
BBB/Baa |  |  | 20 |  |  |  | 23 |
BB/Ba |  |  | 7 |  |  |  | 6 |
B |  |  | 2 |  |  |  | 3 |
C |  |  | 1 |  |  |  | — |
N/R(e) |  |  | 11 |  |  |  | 12 |

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

| (e) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of August 31, 2020 and August 31, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade represents 3% and less than 1%, respectively, of the Trust’s total investments. |

18 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Trust Summary as of August 31, 2020 |  | BlackRock MuniHoldings Investment Quality Fund (MFL)

Investment Objective

BlackRock MuniHoldings Investment Quality Fund’s (MFL) (the “Trust”) investment objective is to provide shareholders with current income exempt from U.S. federal income tax and to provide shareholders with the opportunity to own shares the value of which is exempt from Florida intangible personal property tax. The Trust seeks to achieve its investment objective by investing primarily in long-term, investment grade (as rated or, if unrated, determined to be of comparable quality by the investment adviser at the time of investment) municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Trust invests at least 80% of its assets in municipal obligations with remaining maturities of one year or more at the time of investment. The Trust may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by BlackRock to be of comparable quality, at the time of purchase. The Trust may invest directly in securities or synthetically through the use of derivatives. Due to the repeal of the Florida intangible personal property tax, in September 2008, the Board gave approval to permit the Trust the flexibility to invest in municipal obligations regardless of geographic location since municipal obligations issued by any state or municipality that provides income exempt from regular U.S. federal income tax would now satisfy the foregoing objective and policy.

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

Trust Information

Symbol on New York Stock Exchange |  | MFL
Initial Offering Date |  | September 26, 1997
Yield on Closing Market Price as of August 31, 2020 ($13.45)(a) |  | 4.06%
Tax Equivalent Yield(b) |  | 6.86%
Current Monthly Distribution per Common Share(c) |  | $0.0455
Current Annualized Distribution per Common Share(c) |  | $0.5460
Leverage as of August 31, 2020(d) |  | 40%

| (a) | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results. |

| (b) | Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |

| (c) | The monthly distribution per Common Share, declared on October 1, 2020, was increased to $0.0485 per share. The yield on closing market price, tax equivalent yield, current monthly distribution per Common Share, and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future. |

| (d) | Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 6. |

Market Price and Net Asset Value Per Share Summary

|  | 08/31/20 |  |  | 08/31/19 |  |  | Change |  |  | High |  |  | Low |
Market Price |  | $ | 13.45 |  |  | $ | 13.60 |  |  |  | (1.10 | )% |  | $ | 14.07 |  |  | $ | 9.82 |
Net Asset Value |  |  | 14.75 |  |  |  | 14.94 |  |  |  | (1.27 | ) |  |  | 15.41 |  |  |  | 12.26 |

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

TRUST SUMMARY |  | 19

Trust Summary as of August 31, 2020 (continued) |  | BlackRock MuniHoldings Investment Quality Fund (MFL)

Performance

Returns for the twelve months ended August 31, 2020 were as follows:

|  | Returns Based On |
|  | Market Price |  |  | NAV |
MFL(a)(b) |  |  | 3.02 | % |  |  | 2.85 | %
Lipper General & Insured Municipal Debt Funds (Leveraged)(c) |  |  | 0.67 |  |  |  | 1.89 |

| (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage. |

| (b) | The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV. |

| (c) | Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper. |

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not an indication of future results.

More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Municipal bonds performed well from the beginning of the reporting period until February 2020 due to accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of COVID-19 led to travel restrictions, business closures and stay-at-home orders, causing significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and low market liquidity inhibited efficient pricing. Municipal bonds recovered in the April-August interval due to aggressive stimulus from the Fed and U.S. Congress, allowing the category to finish in positive territory for the full period.

The Trust’s positions in longer-term bonds, which benefited from their higher interest rate sensitivity at a time of declining yields, were key contributors to performance. (Prices rise as yields fall.) At the sector level, holdings in transportation, state and local tax-backed, and health care issues aided results. The Trust’s use of leverage also helped performance by augmenting income and amplifying the effect of rising prices. Declining rates amplified the contribution by reducing the funding cost for the leverage position.

The Trust actively sought to manage interest rate risk using U.S. Treasury futures, which hurt performance due to the breakdown in correlation between the U.S. Treasury and municipal markets in the first quarter of 2020. While municipal bond yields rose due to a substantial increase in yield spreads, U.S. Treasury yields plunged due to investors’ “flight to quality.” The Trust did not hold any U.S. Treasury futures as of August 31, 2020.

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

20 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Trust Summary as of August 31, 2020 (continued) |  | BlackRock MuniHoldings Investment Quality Fund (MFL)

Overview of the Trust’s Total Investments

SECTOR COMPOSITION

Sector(a)(b) |  | 08/31/20 |  |  | 08/31/19 |
Transportation |  |  | 37 | % |  |  | 42 | %
State |  |  | 20 |  |  |  | 17 |
Health |  |  | 15 |  |  |  | 16 |
County/City/Special District/School District |  |  | 9 |  |  |  | 12 |
Education |  |  | 6 |  |  |  | 4 |
Utilities |  |  | 6 |  |  |  | 4 |
Tobacco |  |  | 3 |  |  |  | 3 |
Corporate |  |  | 2 |  |  |  | 1 |
Other |  |  | 2 |  |  |  | — |
Housing |  |  | — |  |  |  | 1 |

CALL/MATURITY SCHEDULE

Calendar Year Ended December 31,(a)(c) |  |  | Percentage |
2020 |  |  | — | %
2021 |  |  | 12 |
2022 |  |  | 1 |
2023 |  |  | 17 |
2024 |  |  | 5 |

| (a) | Excludes short-term securities. |

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

CREDIT QUALITY ALLOCATION

Credit Rating(a)(d) |  | 08/31/20 |  |  | 08/31/19 |
AAA/Aaa |  |  | 8 | % |  |  | 7 | %
AA/Aa |  |  | 49 |  |  |  | 53 |
A |  |  | 27 |  |  |  | 29 |
BBB/Baa |  |  | 7 |  |  |  | 6 |
BB/Ba |  |  | 3 |  |  |  | — |
B |  |  | — |  |  |  | 1 |
N/R |  |  | 6 |  |  |  | 4 |

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

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

TRUST SUMMARY |  | 21

Trust Summary as of August 31, 2020 |  | BlackRock MuniVest Fund, Inc. (MVF)

Investment Objective

BlackRock MuniVest Fund, Inc.’s (MVF) (the “Trust”) investment objective is to provide shareholders with as high a level of current income exempt from U.S. federal income taxes as is consistent with its investment policies and prudent investment management. The Trust seeks to achieve its investment objective by investing at least 80% of an aggregate of the Trust’s net assets (including proceeds from the issuance of any preferred shares) and the proceeds of any borrowing for investment purposes, in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Trust primarily invests in long term municipal obligations rated investment grade at the time of investment (or, if unrated, are considered by the Trust’s investment adviser to be of comparable quality at the time of investment) and in long term municipal obligations with maturities of more than ten years at the time of investment. The Trust may invest up to 20% of its total assets in securities rated below investment grade or deemed equivalent at the time of purchase. The Trust may invest directly in securities or synthetically through the use of derivatives.

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

Trust Information

Symbol on New York Stock Exchange |  | MVF
Initial Offering Date |  | September 29, 1988
Yield on Closing Market Price as of August 31, 2020 ($8.77)(a) |  | 4.58%
Tax Equivalent Yield(b) |  | 7.74%
Current Monthly Distribution per Common Share(c) |  | $0.0335
Current Annualized Distribution per Common Share(c) |  | $0.4020
Leverage as of August 31, 2020(d) |  | 35%

| (a) | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results. |

| (b) | Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |

| (c) | The distribution rate is not constant and is subject to change. |

| (d) | Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 6. |

Market Price and Net Asset Value Per Share Summary

|  | 08/31/20 |  |  | 08/31/19 |  |  | Change |  |  | High |  |  | Low |
Market Price |  | $ | 8.77 |  |  | $ | 9.49 |  |  |  | (7.59 | )% |  | $ | 9.60 |  |  | $ | 6.07 |
Net Asset Value |  |  | 9.60 |  |  |  | 9.83 |  |  |  | (2.34 | ) |  |  | 10.14 |  |  |  | 7.96 |

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

22 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Trust Summary as of August 31, 2020 (continued) |  | BlackRock MuniVest Fund, Inc. (MVF)

Performance

Returns for the twelve months ended August 31, 2020 were as follows:

|  | Returns Based On |
|  | Market Price |  |  | NAV |
MVF(a)(b) |  |  | (3.19 | )% |  |  | 2.30 | %
Lipper General & Insured Municipal Debt Funds (Leveraged)(c) |  |  | 0.67 |  |  |  | 1.89 |

| (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage. |

| (b) | The Trust’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV. |

| (c) | Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper. |

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not an indication of future results.

More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

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

Municipal bonds performed well from the beginning of the reporting period until February 2020 due to accommodative Fed policy and favorable supply-and-demand trends in the market. This supportive backdrop changed abruptly in March once the spread of COVID-19 led to travel restrictions, business closures and stay-at-home orders, causing significant, broad-based weakness across the financial markets. Tax-exempt issues were hard hit in the sell-off, as investors withdrew cash from municipal bond funds and low market liquidity inhibited efficient pricing. Municipal bonds recovered in the April-August interval due to aggressive stimulus from the Fed and U.S. Congress, allowing the category to finish in positive territory for the full period.

Positions in the health care, state tax-backed and transportation sectors were the largest contributors to absolute performance due to their large weightings in the portfolio. A position in Puerto Rico was a key driver of returns in the tax-backed sector.

The Trust’s use of leverage also helped results by augmenting income and amplifying the effect of rising prices. The Trust’s positions in bonds with maturities of 20 years and above further contributed to performance. Long-term bonds benefited from their higher interest rate sensitivity given that yields fell significantly. (Prices rise as yields fall.)

Education was the only sector to finish with a negative return. Student housing bonds were negatively impacted by the coronavirus pandemic due to social distancing guidelines and virtual learning, which limited capacity utilization at many of the country’s universities.

The Trust actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as prices rose, this strategy detracted from performance. The Trust did not hold any U.S. Treasury futures as of August 31, 2020. Reinvestment risk continued to be a headwind since the proceeds from bonds that matured or were called needed to be reinvested at lower yields compared to bonds that were issued when yields were higher.

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

TRUST SUMMARY |  | 23

Trust Summary as of August 31, 2020 (continued) |  | BlackRock MuniVest Fund, Inc. (MVF)

Overview of the Trust’s Total Investments

SECTOR COMPOSITION

Sector(a)(b) |  | 08/31/20 |  |  | 08/31/19 |
Transportation |  |  | 27 | % |  |  | 28 | %
Health |  |  | 19 |  |  |  | 20 |
Utilities |  |  | 10 |  |  |  | 10 |
State |  |  | 9 |  |  |  | 8 |
County/City/Special District/School District |  |  | 9 |  |  |  | 11 |
Corporate |  |  | 8 |  |  |  | 5 |
Tobacco |  |  | 7 |  |  |  | 7 |
Other |  |  | 4 |  |  |  | — |
Education |  |  | 4 |  |  |  | 8 |
Housing |  |  | 3 |  |  |  | 3 |

CALL/MATURITY SCHEDULE

Calendar Year Ended December 31,(a)(c) |  |  | Percentage |
2020 |  |  | 11 | %
2021 |  |  | 3 |
2022 |  |  | 5 |
2023 |  |  | 6 |
2024 |  |  | 5 |

| (a) | Excludes short-term securities. |

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

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

CREDIT QUALITY ALLOCATION

Credit Rating(a)(d) |  | 08/31/20 |  |  | 08/31/19 |
AAA/Aaa |  |  | — | % |  |  | 3 | %
AA/Aa |  |  | 30 |  |  |  | 30 |
A |  |  | 30 |  |  |  | 28 |
BBB/Baa |  |  | 22 |  |  |  | 21 |
BB/Ba |  |  | 4 |  |  |  | 4 |
B |  |  | 3 |  |  |  | 3 |
C |  |  | 1 |  |  |  | — |
CC |  |  | — |  |  |  | 1 |
N/R(e) |  |  | 10 |  |  |  | 10 |

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

| (e) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of August 31, 2020 and August 31, 2019, the market value of unrated securities deemed by the investment adviser to be investment grade represents 2% and 1%, respectively, of the Trust’s total investments. |

24 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments August 31, 2020 |  | BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Municipal Bonds |
Alabama — 0.6% |
Opelika Utilities Board, Refunding RB, 4.00%, 06/01/41 |  | $ | 960 |  |  | $ | 1,080,346 |
Arizona — 7.5% |
Arizona Health Facilities Authority, Refunding RB, |  |  |  |  |  |  |  |
Series A, 5.00%, 02/01/42 |  |  | 2,200 |  |  |  | 2,315,566 |
Arizona Industrial Development Authority, Refunding RB(a) |  |  |  |  |  |  |  |
Series A, 5.50%, 07/01/52 |  |  | 130 |  |  |  | 139,105 |
Series G, 5.00%, 07/01/47 |  |  | 435 |  |  |  | 444,213 |
Industrial Development Authority of the County of Pima, RB, 5.00%, 07/01/34(a) |  |  | 400 |  |  |  | 409,368 |
Pinal County Electric District No. 3, Refunding RB |  |  |  |  |  |  |  |
4.75%, 07/01/21(b) |  |  | 680 |  |  |  | 705,759 |
4.75%, 07/01/31 |  |  | 3,070 |  |  |  | 3,175,240 |
Salt Verde Financial Corp., RB |  |  |  |  |  |  |  |
5.00%, 12/01/32 |  |  | 1,500 |  |  |  | 1,987,830 |
5.00%, 12/01/37 |  |  | 2,065 |  |  |  | 2,822,132 |
University Medical Center Corp., Refunding RB, 6.00%, 07/01/21(b) |  |  | 900 |  |  |  | 943,227 |
|  |  |  |  |  |  | 12,942,440 |
Arkansas — 2.8% |
Arkansas Development Finance Authority, RB, AMT, 4.50%, 09/01/49(a) |  |  | 960 |  |  |  | 965,779 |
City of Benton Arkansas, RB, 4.00%, 06/01/39 |  |  | 505 |  |  |  | 543,234 |
City of Fort Smith Arkansas Water & Sewer Revenue, Refunding RB, 4.00%, 10/01/40 |  |  | 840 |  |  |  | 923,479 |
City of Little Rock Arkansas, RB, 4.00%, 07/01/41 |  |  | 1,835 |  |  |  | 1,895,023 |
Pulaski County Public Facilities Board, RB, 5.00%, 12/01/42 |  |  | 465 |  |  |  | 522,274 |
|  |  |  |  |  |  | 4,849,789 |
California — 17.1% |
California Statewide Communities Development Authority, Refunding RB, 4.00%, 03/01/48 |  |  | 1,345 |  |  |  | 1,484,840 |
Carlsbad Unified School District, GO, |  |  |  |  |  |  |  |
Series B, Convertible, 6.00%, 05/01/34 |  |  | 1,000 |  |  |  | 1,214,010 |
Golden State Tobacco Securitization Corp., Refunding RB |  |  |  |  |  |  |  |
Series A-1, 5.00%, 06/01/47 |  |  | 735 |  |  |  | 753,140 |
Series A-2, 5.00%, 06/01/47 |  |  | 525 |  |  |  | 537,962 |
Hartnell Community College District, GO, Series D, 7.00%, 08/01/34(c) |  |  | 1,650 |  |  |  | 2,105,796 |
Norman Y Mineta San Jose International Airport SJC, Refunding RB, Series A-1, AMT, 5.75%, 03/01/34 |  |  | 2,000 |  |  |  | 2,047,600 |
Norwalk-La Mirada Unified School District, Refunding GO, Series E, (AGC), 0.00%, 08/01/38(d) |  |  | 8,000 |  |  |  | 4,994,880 |
Palomar Community College District, GO |  |  |  |  |  |  |  |
Series B, 0.00%, 08/01/30(d) |  |  | 1,500 |  |  |  | 1,343,340 |
Series B, Convertible, 6.20%, 08/01/39(c) |  |  | 2,605 |  |  |  | 3,309,105 |
Riverside County Redevelopment Successor Agency, Refunding TA, Series A, (BAM), 4.00%, 10/01/39 |  |  | 1,550 |  |  |  | 1,732,900 |
San Diego Community College District, GO, CAB, 6.00%, 08/01/33 |  |  | 2,800 |  |  |  | 3,708,600 |
San Diego County Regional Airport Authority, RB, Series B, AMT, 5.00%, 07/01/47 |  |  | 1,405 |  |  |  | 1,635,027 |
State of California, GO, 6.00%, 03/01/33 |  |  | 170 |  |  |  | 170,831 |

Security |  | Par (000) |  |  | Value |
California (continued) |
State of California, Refunding GO, 5.00%, 02/01/38 |  | $ | 3,000 |  |  | $ | 3,307,110 |
Visalia Unified School District, COP, (AGM), 4.00%, 05/01/48 |  |  | 1,225 |  |  |  | 1,234,334 |
|  |  |  |  |  |  | 29,579,475 |
Colorado — 0.4% |
Colorado Educational & Cultural Facilities Authority, Refunding RB, 5.00%, 10/01/59(a) |  |  | 595 |  |  |  | 601,664 |
Connecticut — 1.0% |
Connecticut State Health & Educational Facilities Authority, Refunding RB, Series F, 5.00%, 07/01/21(b) |  |  | 550 |  |  |  | 572,077 |
State of Connecticut, Refunding GO, Series E,5.00%, 09/15/37 |  |  | 970 |  |  |  | 1,199,240 |
|  |  |  |  |  |  | 1,771,317 |
Delaware — 2.0% |
County of Kent Delaware, RB |  |  |  |  |  |  |  |
Series A, 5.00%, 07/01/40 |  |  | 330 |  |  |  | 330,284 |
Series A, 5.00%, 07/01/48 |  |  | 900 |  |  |  | 889,191 |
County of Sussex Delaware, RB, 6.00%, 10/01/40 |  |  | 1,200 |  |  |  | 1,214,136 |
Delaware Transportation Authority, RB, 5.00%, 06/01/55 |  |  | 950 |  |  |  | 1,070,498 |
|  |  |  |  |  |  | 3,504,109 |
Florida — 2.9% |
County of Miami-Dade Seaport Department, RB, Series B, AMT, 6.00%, 10/01/31 |  |  | 4,135 |  |  |  | 4,628,471 |
Stevens Plantation Community Development District RB, SAB, Series A, 7.10%, 05/01/35(e)(f)(g) |  |  | 860 |  |  |  | 412,800 |
|  |  |  |  |  |  | 5,041,271 |
Georgia — 0.7% |
Georgia Housing & Finance Authority, RB, S/F Housing |  |  |  |  |  |  |  |
Series A, 3.95%, 12/01/43 |  |  | 195 |  |  |  | 214,248 |
Series A, 4.00%, 12/01/48 |  |  | 210 |  |  |  | 226,779 |
Main Street Natural Gas, Inc., RB |  |  |  |  |  |  |  |
Series A, 5.00%, 05/15/38 |  |  | 255 |  |  |  | 346,066 |
Series A, 5.00%, 05/15/43 |  |  | 330 |  |  |  | 389,017 |
|  |  |  |  |  |  | 1,176,110 |
Hawaii — 0.2% |
State of Hawaii Department of Budget & Finance, Refunding RB, 5.25%, 11/15/37 |  |  | 400 |  |  |  | 427,756 |
Idaho — 0.3% |
Idaho Health Facilities Authority, RB, Series A,5.00%, 03/01/39 |  |  | 500 |  |  |  | 556,245 |
Illinois — 9.7% |
Chicago Board of Education, GO |  |  |  |  |  |  |  |
Series C, 5.25%, 12/01/35 |  |  | 775 |  |  |  | 831,877 |
Series D, 5.00%, 12/01/46 |  |  | 1,005 |  |  |  | 1,054,345 |
Series H, 5.00%, 12/01/36 |  |  | 235 |  |  |  | 258,643 |
Chicago Board of Education, Refunding GO |  |  |  |  |  |  |  |
Series C, 5.00%, 12/01/25 |  |  | 760 |  |  |  | 855,372 |
Series C, 5.00%, 12/01/34 |  |  | 235 |  |  |  | 260,258 |
Series F, 5.00%, 12/01/23 |  |  | 310 |  |  |  | 336,015 |
Chicago Midway International Airport, Refunding GARB, Series A, 2nd Lien, AMT, 5.00%, 01/01/41 |  |  | 870 |  |  |  | 950,466 |
Chicago O’Hare International Airport, Refunding RB, Series B, AMT, 4.00%, 01/01/29 |  |  | 1,600 |  |  |  | 1,661,120 |
Chicago Transit Authority Sales Tax Receipts Fund, RB, 5.25%, 12/01/21(b) |  |  | 665 |  |  |  | 695,630 |
County of Will Illinois, GO, 5.00%, 11/15/45 |  |  | 600 |  |  |  | 696,552 |

SCHEDULE OF INVESTMENTS |  | 25

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Illinois (continued) |
Illinois Finance Authority, RB |  |  |  |  |  |  |  |
Series A, 5.00%, 02/15/37 |  | $ | 300 |  |  | $ | 302,679 |
Series A, 5.00%, 02/15/47 |  |  | 205 |  |  |  | 203,942 |
Series A, 5.00%, 02/15/50 |  |  | 100 |  |  |  | 99,453 |
Illinois Finance Authority, Refunding RB, Series A, 5.00%, 11/15/45 |  |  | 1,205 |  |  |  | 1,365,422 |
Illinois State Toll Highway Authority, RB, Series A, 5.00%, 01/01/40 |  |  | 2,980 |  |  |  | 3,456,890 |
Metropolitan Pier & Exposition Authority, RB, Series A, 5.00%, 06/15/57 |  |  | 285 |  |  |  | 307,230 |
Metropolitan Pier & Exposition Authority, Refunding RB, 4.00%, 06/15/50 |  |  | 220 |  |  |  | 223,995 |
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 06/01/21(b) |  |  | 1,150 |  |  |  | 1,199,876 |
State of Illinois, GO |  |  |  |  |  |  |  |
5.50%, 05/01/39 |  |  | 795 |  |  |  | 927,813 |
Series D, 5.00%, 11/01/28 |  |  | 645 |  |  |  | 725,238 |
Upper Illinois River Valley Development Authority, Refunding RB, 5.00%, 01/01/55(a) |  |  | 390 |  |  |  | 396,092 |
|  |  |  |  |  |  | 16,808,908 |
Iowa — 0.2% |
Iowa Finance Authority, Refunding RB, Series B, 5.25%, 12/01/50(h) |  |  | 250 |  |  |  | 262,555 |
Kansas — 0.5% |
Seward County Unified School District No. 480 Liberal, Refunding GO, 5.00%, 09/01/39 |  |  | 720 |  |  |  | 788,198 |
Kentucky — 3.8% |
County of Boyle Kentucky, Refunding RB, 5.00%, 06/01/37 |  |  | 2,500 |  |  |  | 2,961,200 |
Kentucky Economic Development Finance Authority, RB, Series A, 5.38%, 01/01/23(b) |  |  | 1,830 |  |  |  | 2,048,081 |
Kentucky Public Transportation Infrastructure Authority, RB, Convertible CAB(c) |  |  |  |  |  |  |  |
Series C, 6.45%, 07/01/34 |  |  | 500 |  |  |  | 493,980 |
Series C, 6.60%, 07/01/39 |  |  | 830 |  |  |  | 806,686 |
Series C, 6.75%, 07/01/43 |  |  | 270 |  |  |  | 262,248 |
|  |  |  |  |  |  | 6,572,195 |
Louisiana — 1.8% |
City of Alexandria Louisiana Utilities, RB, 5.00%, 05/01/24(b) |  |  | 860 |  |  |  | 1,007,722 |
Louisiana Local Government Environmental Facilities & Community Development Auth, RB, Series A-1, 6.50%, 11/01/35 |  |  | 1,050 |  |  |  | 1,058,096 |
Louisiana Public Facilities Authority, RB, 6.50%, 05/01/21(b) |  |  | 400 |  |  |  | 416,672 |
Parish of St John the Baptist LA, Refunding RB, Sub- Series B-1, 2.38%, 06/01/37(h) |  |  | 650 |  |  |  | 657,904 |
|  |  |  |  |  |  | 3,140,394 |
Maryland — 0.3% |
Anne Arundel County Consolidated Special Taxing District, ST 5.13%, 07/01/36 |  |  | 170 |  |  |  | 171,340 |

Security |  | Par (000) |  |  | Value |
Maryland (continued) |
Anne Arundel County Consolidated Special Taxing District, ST (continued) 5.25%, 07/01/44 |  | $ | 170 |  |  | $ | 170,422 |
Maryland Community Development Administration, Refunding RB, S/F Housing, Series A, 4.10%, 09/01/38 |  |  | 210 |  |  |  | 231,722 |
|  |  |  |  |  |  | 573,484 |
Massachusetts — 3.5% |
Massachusetts Development Finance Agency, RB 5.00%, 01/01/48 |  |  | 1,115 |  |  |  | 1,257,675 |
5.00%, 10/01/48 |  |  | 830 |  |  |  | 767,982 |
Series A, 5.25%, 01/01/42 |  |  | 565 |  |  |  | 642,043 |
Series A, 5.00%, 01/01/47 |  |  | 630 |  |  |  | 701,385 |
Massachusetts Development Finance Agency, Refunding RB 5.00%, 04/15/40 |  |  | 400 |  |  |  | 430,956 |
5.00%, 09/01/43 |  |  | 750 |  |  |  | 859,890 |
Series A, 5.00%, 10/01/43 |  |  | 750 |  |  |  | 835,208 |
Series A, 4.00%, 06/01/49 |  |  | 75 |  |  |  | 80,770 |
Massachusetts HFA, RB, M/F Housing |  |  |  |  |  |  |  |
Series A, 3.80%, 12/01/43 |  |  | 160 |  |  |  | 171,845 |
Series A, 3.85%, 06/01/46 |  |  | 205 |  |  |  | 219,793 |
|  |  |  |  |  |  | 5,967,547 |
Michigan — 7.5% |
Michigan Finance Authority, RB 5.00%, 11/01/44 |  |  | 1,555 |  |  |  | 1,786,539 |
Series 2014 C-2, Senior Lien, AMT, 5.00%, 07/01/22(b) |  |  | 240 |  |  |  | 260,513 |
Michigan Finance Authority, Refunding RB, 5.00%, 11/15/41 |  |  | 5,560 |  |  |  | 6,506,646 |
Michigan State Hospital Finance Authority, Refunding RB 5.00%, 11/15/47 |  |  | 215 |  |  |  | 272,669 |
Series C, 4.00%, 12/01/32 |  |  | 2,100 |  |  |  | 2,211,489 |
Michigan State Housing Development Authority, RB, S/F Housing, Series A, 3.80%, 10/01/38 |  |  | 1,690 |  |  |  | 1,866,909 |
|  |  |  |  |  |  | 12,904,765 |
Minnesota — 2.6% |
City of Maple Grove Minnesota, Refunding RB, 4.00%, 05/01/37 |  |  | 880 |  |  |  | 964,278 |
City of Minneapolis Minnesota, Refunding RB, Series A, 5.00%, 11/15/49 |  |  | 560 |  |  |  | 663,124 |
City of Otsego Minnesota, Refunding RB, Series A, 5.00%, 09/01/44 |  |  | 425 |  |  |  | 434,316 |
City of Spring Lake Park Minnesota, RB, 5.00%, 06/15/39 |  |  | 1,080 |  |  |  | 1,131,354 |
Minneapolis-St Paul Metropolitan Airports Commission, Refunding ARB, Sub Series D, AMT, 5.00%, 01/01/41 . |  |  | 290 |  |  |  | 332,987 |
Minnesota Higher Education Facilities Authority, RB Series 8-K, 4.00%, 03/01/43 |  |  | 385 |  |  |  | 407,445 |
Series B, 4.25%, 05/01/40 |  |  | 660 |  |  |  | 611,087 |
|  |  |  |  |  |  | 4,544,591 |

26 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Mississippi — 0.7% |
County of Warren Mississippi, RB, Series A, 5.38%, 12/01/35 |  | $ | 400 |  |  | $ | 420,508 |
Mississippi Development Bank, RB, ARB, (AGM), 5.00%, 04/01/21(b) |  |  | 845 |  |  |  | 868,609 |
|  |  |  |  |  |  | 1,289,117 |
Missouri — 2.4% |
Health & Educational Facilities Authority of the State of Missouri, RB 5.25%, 10/01/21(b) |  |  | 500 |  |  |  | 527,260 |
4.13%, 02/15/43 |  |  | 300 |  |  |  | 308,439 |
Series A, 5.00%, 10/01/23(b) |  |  | 500 |  |  |  | 573,085 |
Series A, 5.00%, 06/01/42 |  |  | 540 |  |  |  | 651,359 |
Series C-2, 5.00%, 10/01/34 |  |  | 1,000 |  |  |  | 1,131,630 |
Missouri Development Finance Board, RB, Series B, 5.00%, 11/01/41 |  |  | 900 |  |  |  | 936,279 |
|  |  |  |  |  |  | 4,128,052 |
Nebraska — 1.0% |
Central Plains Energy Project, RB, 5.00%, 09/01/42 |  |  | 600 |  |  |  | 652,296 |
Douglas County Hospital Authority No. 3, Refunding RB, 5.00%, 11/01/45 |  |  | 400 |  |  |  | 452,388 |
Nebraska Public Power District, Refunding RB Series A, 5.00%, 01/01/32 |  |  | 250 |  |  |  | 265,180 |
Series A, 4.00%, 01/01/44 |  |  | 400 |  |  |  | 416,048 |
|  |  |  |  |  |  | 1,785,912 |
Nevada — 0.9% |
City of Las Vegas Nevada Special Improvement District No. 809, SAB, 5.65%, 06/01/23 |  |  | 420 |  |  |  | 424,973 |
County of Clark Department of Aviation, Refunding RB, Series A-2, Subordinate Lien, 4.25%, 07/01/36 |  |  | 1,000 |  |  |  | 1,106,100 |
|  |  |  |  |  |  | 1,531,073 |
New Hampshire(a) — 0.2% |
New Hampshire Business Finance Authority, Refunding RB Series B, 4.63%, 11/01/42 |  |  | 255 |  |  |  | 261,620 |
Series C, AMT, 4.88%, 11/01/42 |  |  | 145 |  |  |  | 149,730 |
|  |  |  |  |  |  | 411,350 |
New Jersey — 11.8% |
New Jersey Economic Development Authority, RB Series UU, 5.00%, 06/15/24(b) |  |  | 80 |  |  |  | 94,233 |
Series UU, 5.00%, 06/15/40 |  |  | 345 |  |  |  | 373,542 |
AMT, (AGM), 5.13%, 07/01/42 |  |  | 200 |  |  |  | 217,508 |
Series B, AMT, 5.63%, 11/15/30 |  |  | 660 |  |  |  | 680,830 |
New Jersey Economic Development Authority, Refunding SAB, 6.50%, 04/01/28 |  |  | 5,000 |  |  |  | 5,515,950 |
New Jersey Health Care Facilities Financing Authority, Refunding RB 5.00%, 10/01/37 |  |  | 685 |  |  |  | 767,207 |
Series A, 4.63%, 07/01/21(b) |  |  | 510 |  |  |  | 528,656 |
Series A, 5.63%, 07/01/21(b) |  |  | 1,700 |  |  |  | 1,776,279 |
Series A, 5.00%, 07/01/25 |  |  | 500 |  |  |  | 540,385 |
New Jersey Transportation Trust Fund Authority, RB Series A, 0.00%, 12/15/35(d) |  |  | 1,000 |  |  |  | 588,200 |
Series AA, 5.00%, 06/15/45 |  |  | 900 |  |  |  | 979,434 |
Series AA, 5.00%, 06/15/46 |  |  | 400 |  |  |  | 434,808 |
Series S, 5.25%, 06/15/43 |  |  | 1,070 |  |  |  | 1,257,892 |
New Jersey Transportation Trust Fund Authority, Refunding RB, Series A, 5.00%, 12/15/36 |  |  | 140 |  |  |  | 163,040 |

Security |  | Par (000) |  |  | Value |
New Jersey (continued) |  |  |  |  |  |  |  |
New Jersey Turnpike Authority, RB, Series E, 5.00%, 01/01/45 |  | $ | 1,860 |  |  | $ | 2,089,803 |
South Jersey Port Corp., RB, Series B, AMT, 5.00%, 01/01/35 |  |  | 625 |  |  |  | 698,325 |
Tobacco Settlement Financing Corp., Refunding RB Series A, 5.00%, 06/01/35 |  |  | 760 |  |  |  | 919,227 |
Series A, 5.25%, 06/01/46 |  |  | 1,810 |  |  |  | 2,132,180 |
Sub-Series B, 5.00%, 06/01/46 |  |  | 490 |  |  |  | 554,312 |
|  |  |  |  |  |  | 20,311,811 |
New Mexico — 0.3% |
New Mexico Hospital Equipment Loan Council, Refunding RB, Series VIC, 5.00%, 08/01/44 |  |  | 450 |  |  |  | 514,224 |
New York — 4.9% |
Erie Tobacco Asset Securitization Corp., Refunding RB, Series A, 5.00%, 06/01/45 |  |  | 1,160 |  |  |  | 1,160,035 |
Metropolitan Transportation Authority, Refunding RB Series C-1, 5.25%, 11/15/55 |  |  | 490 |  |  |  | 554,190 |
Series C-1, 5.00%, 11/15/56 |  |  | 320 |  |  |  | 344,486 |
New York City Industrial Development Agency, RB, (AMBAC), 5.00%, 01/01/39 |  |  | 925 |  |  |  | 926,166 |
New York City Water & Sewer System, Refunding RB, Series CC, 5.00%, 06/15/47 |  |  | 1,000 |  |  |  | 1,105,620 |
New York Counties Tobacco Trust IV, Refunding RB, Series A, 6.25%, 06/01/41(a) |  |  | 900 |  |  |  | 903,141 |
New York Counties Tobacco Trust VI, Refunding RB, Series A-2, 5.00%, 06/01/45 |  |  | 500 |  |  |  | 507,580 |
New York Liberty Development Corp., Refunding RB(a) |  |  |  |  |  |  |  |
Class 1, 5.00%, 11/15/44 |  |  | 1,250 |  |  |  | 1,308,900 |
Class 2, 5.38%, 11/15/40 |  |  | 405 |  |  |  | 430,859 |
State of New York Mortgage Agency, Refunding RB, Series 211, 3.75%, 10/01/43 |  |  | 1,190 |  |  |  | 1,292,947 |
|  |  |  |  |  |  | 8,533,924 |
North Dakota — 0.3% |
County of Burleigh North Dakota, Refunding RB, Series A, 5.00%, 07/01/21(b) |  |  | 480 |  |  |  | 499,051 |
Ohio — 5.3% |
Buckeye Tobacco Settlement Financing Authority, Refunding RB Series A-2, Class 1, 3.00%, 06/01/48 |  |  | 1,505 |  |  |  | 1,487,286 |
Series B-2, Class 2, 5.00%, 06/01/55 |  |  | 2,255 |  |  |  | 2,472,404 |
City of Dayton Ohio Airport Revenue, Refunding RB, Series A, AMT, (AGM), 4.00%, 12/01/32 |  |  | 2,000 |  |  |  | 2,088,200 |
Northwest Local School District/Hamilton & Butler Counties, GO, 4.00%, 12/01/50 |  |  | 1,135 |  |  |  | 1,213,043 |
Ohio Air Quality Development Authority, RB, AMT, 5.00%, 07/01/49(a) |  |  | 395 |  |  |  | 400,984 |
State of Ohio, Refunding RB, Series A, 5.00%, 01/15/41 . |  |  | 1,500 |  |  |  | 1,569,780 |
|  |  |  |  |  |  | 9,231,697 |
Oklahoma — 0.9% |  |  |  |  |  |  |  |
Oklahoma City Public Property Authority, Refunding RB, 5.00%, 10/01/39 |  |  | 720 |  |  |  | 797,767 |
Oklahoma Development Finance Authority, RB, Series B, 5.25%, 08/15/48 |  |  | 605 |  |  |  | 704,402 |
|  |  |  |  |  |  | 1,502,169 |

SCHEDULE OF INVESTMENTS |  | 27

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Oregon — 1.4% |
Oregon Health & Science University, RB, Series A, 4.00%, 07/01/37 |  | $ | 675 |  |  | $ | 769,196 |
Oregon State Facilities Authority, Refunding RB, Series A, 5.00%, 04/01/45 |  |  | 1,475 |  |  |  | 1,655,894 |
|  |  |  |  |  |  | 2,425,090 |
Pennsylvania — 4.2% |
Commonwealth Financing Authority, RB |  |  |  |  |  |  |  |
5.00%, 06/01/33 |  |  | 335 |  |  |  | 412,258 |
5.00%, 06/01/34 |  |  | 750 |  |  |  | 918,022 |
(AGM), 4.00%, 06/01/39 |  |  | 1,365 |  |  |  | 1,552,483 |
Delaware River Port Authority, RB, 4.50%, 01/01/32 |  |  | 1,500 |  |  |  | 1,678,395 |
Montgomery County Higher Education and Health Authority, Refunding RB |  |  |  |  |  |  |  |
4.00%, 09/01/49 |  |  | 715 |  |  |  | 788,924 |
Series A, 4.00%, 09/01/49 |  |  | 495 |  |  |  | 539,342 |
Pottsville Hospital Authority, Refunding RB, Series B, 5.00%, 07/01/45 |  |  | 1,250 |  |  |  | 1,444,062 |
|  |  |  |  |  |  | 7,333,486 |
Puerto Rico — 6.5% |
Children’s Trust Fund, Refunding RB |  |  |  |  |  |  |  |
Asset-Backed Bonds, 5.50%, 05/15/39 |  |  | 315 |  |  |  | 315,258 |
Asset-Backed Bonds, 5.63%, 05/15/43 |  |  | 345 |  |  |  | 345,248 |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB |  |  |  |  |  |  |  |
Series A, Senior Lien, 5.00%, 07/01/33 |  |  | 1,305 |  |  |  | 1,338,787 |
Series A, Senior Lien, 5.13%, 07/01/37 |  |  | 375 |  |  |  | 385,061 |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB |  |  |  |  |  |  |  |
Series A, Senior Lien, 6.00%, 07/01/38 |  |  | 385 |  |  |  | 386,471 |
Series A, Senior Lien, 6.00%, 07/01/44 |  |  | 700 |  |  |  | 702,688 |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB |  |  |  |  |  |  |  |
Series A-1, Restructured, 4.75%, 07/01/53 |  |  | 838 |  |  |  | 877,151 |
Series A-1, Restructured, 5.00%, 07/01/58 |  |  | 3,553 |  |  |  | 3,782,737 |
Series A-2, Restructured, 4.33%, 07/01/40 |  |  | 552 |  |  |  | 574,604 |
Series A-2, Restructured, 4.78%, 07/01/58 |  |  | 896 |  |  |  | 943,390 |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(d) |  |  | 5,318 |  |  |  | 1,517,598 |
|  |  |  |  |  |  | 11,168,993 |
Rhode Island — 3.3% |
Rhode Island Health and Educational Building Corp., Refunding RB, Series A, (AGM), 3.75%, 05/15/32 |  |  | 1,155 |  |  |  | 1,305,034 |
Rhode Island Housing and Mortgage Finance Corp., RB, M/F Housing, Series 3-B, (FHA),4.13%, 10/01/49 |  |  | 480 |  |  |  | 500,338 |
Tobacco Settlement Financing Corp., Refunding RB |  |  |  |  |  |  |  |
Series A, 5.00%, 06/01/40 |  |  | 1,000 |  |  |  | 1,069,780 |
Series B, 4.50%, 06/01/45 |  |  | 2,730 |  |  |  | 2,858,255 |
|  |  |  |  |  |  | 5,733,407 |
South Carolina — 1.4% |
South Carolina Jobs-Economic Development Authority, RB |  |  |  |  |  |  |  |
5.00%, 04/01/44 |  |  | 100 |  |  |  | 108,294 |
4.00%, 04/01/49 |  |  | 100 |  |  |  | 98,563 |
5.00%, 04/01/49 |  |  | 135 |  |  |  | 145,396 |
4.00%, 04/01/54 |  |  | 105 |  |  |  | 102,356 |
5.00%, 04/01/54 |  |  | 245 |  |  |  | 263,027 |

Security |  | Par (000) |  |  | Value |
South Carolina (continued) |
South Carolina Jobs-Economic Development Authority, RB (continued) |  |  |  |  |  |  |  |
5.00%, 01/01/55(a) |  | $ | 470 |  |  | $ | 402,729 |
South Carolina Public Service Authority, RB, Series E, 5.50%, 12/01/53 |  |  | 1,000 |  |  |  | 1,119,710 |
South Carolina Public Service Authority, Refunding RB, Series A, 5.00%, 12/01/36 |  |  | 175 |  |  |  | 206,304 |
|  |  |  |  |  |  | 2,446,379 |
South Dakota — 0.5% |
City of Rapid City South Dakota, RB, 4.00%, 12/01/48 |  |  | 740 |  |  |  | 810,589 |
Tennessee — 2.8% |
Chattanooga Health Educational & Housing Facility Board, RB, Series A, 5.25%, 01/01/23(b) |  |  | 1,950 |  |  |  | 2,176,609 |
Chattanooga-Hamilton County Hospital Authority, Refunding RB, Series A, 5.00%, 10/01/44 |  |  | 875 |  |  |  | 950,714 |
Johnson City Health & Educational Facilities Board, RB, Series A, 5.00%, 08/15/42 |  |  | 800 |  |  |  | 848,208 |
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Building, RB, Series A, 5.00%, 07/01/40 |  |  | 675 |  |  |  | 774,765 |
|  |  |  |  |  |  | 4,750,296 |
Texas — 9.3% |
El Paso Independent School District, GO, (PSF-GTD), 4.00%, 08/15/43 |  |  | 890 |  |  |  | 1,044,344 |
Harris County-Houston Sports Authority, Refunding RB, CAB, Series G, Senior Lien, (NPFGC), 0.00%, 11/15/41(d) |  |  | 11,690 |  |  |  | 4,484,752 |
Leander Independent School District, Refunding GO(d) |  |  |  |  |  |  |  |
Series D, (PSF-GTD), 0.00%, 08/15/24(b) |  |  | 370 |  |  |  | 216,831 |
Series D, (PSF-GTD), 0.00%, 08/15/35 |  |  | 3,630 |  |  |  | 2,078,901 |
Midland County Fresh Water Supply District No. 1, RB, Series A, 0.00%, 09/15/38(d) |  |  | 10,760 |  |  |  | 5,423,040 |
Red River Education Finance Corp., RB, 5.25%, 03/15/23(b) |  |  | 760 |  |  |  | 856,505 |
San Antonio Public Facilities Corp., Refunding RB, 4.00%, 09/15/42 |  |  | 1,355 |  |  |  | 1,428,671 |
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, 7.00%, 06/30/40 |  |  | 500 |  |  |  | 502,280 |
|  |  |  |  |  |  | 16,035,324 |
Utah — 0.9% |
Salt Lake City Corp. Airport Revenue, RB, Series A, AMT, 5.00%, 07/01/43 |  |  | 530 |  |  |  | 631,384 |
Utah Charter School Finance Authority, RB, 5.00%, 10/15/48 |  |  | 360 |  |  |  | 423,457 |
Utah Charter School Finance Authority, Refunding RB, 4.00%, 04/15/42 |  |  | 400 |  |  |  | 428,728 |
|  |  |  |  |  |  | 1,483,569 |
Vermont — 0.5% |  |  |  |  |  |  |  |
University of Vermont and State Agricultural College, Refunding RB, 4.00%, 10/01/37 |  |  | 500 |  |  |  | 543,850 |
Vermont Student Assistance Corp., RB, Series A, AMT, 4.13%, 06/15/30 |  |  | 350 |  |  |  | 366,562 |
|  |  |  |  |  |  | 910,412 |
Virginia — 1.8% |  |  |  |  |  |  |  |
Ballston Quarter Community Development Authority, TA, Series A, 5.38%, 03/01/36 |  |  | 490 |  |  |  | 485,061 |

28 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Virginia (continued) |
Virginia Beach Development Authority, Refunding RB 5.00%, 09/01/44 |  | $ | 585 |  |  | $ | 624,838 |
4.00%, 09/01/48 |  |  | 375 |  |  |  | 361,781 |
Virginia Housing Development Authority, RB, M/F Housing, Series B, 4.00%, 06/01/53 |  |  | 385 |  |  |  | 418,326 |
Virginia Small Business Financing Authority, RB AMT, 5.00%, 01/01/48(a)(h) |  |  | 470 |  |  |  | 471,382 |
Senior Lien, AMT, 6.00%, 01/01/37 |  |  | 725 |  |  |  | 781,992 |
|  |  |  |  |  |  | 3,143,380 |
Washington — 0.4% |
Washington State Housing Finance Commission, Refunding RB, 5.00%, 01/01/38(a) |  |  | 600 |  |  |  | 632,370 |
West Virginia — 0.8% |
West Virginia Hospital Finance Authority, RB, Series A, 4.00%, 06/01/51 |  |  | 1,305 |  |  |  | 1,404,585 |
Wisconsin — 1.2% |
Public Finance Authority, Refunding RB, AMT, 4.00%, 08/01/35 |  |  | 280 |  |  |  | 283,312 |
Wisconsin Health & Educational Facilities Authority, Refunding RB, 5.00%, 04/01/44 |  |  | 800 |  |  |  | 977,312 |
WPPI Energy, Refunding RB, Series A, 5.00%, 07/01/37 |  |  | 665 |  |  |  | 759,763 |
|  |  |  |  |  |  | 2,020,387 |
Total Municipal Bonds — 129.1% (Cost: $200,577,311) |  |  |  | 223,129,806 |
Municipal Bonds Transferred to Tender Option Bond Trusts(i) |
California — 1.1% |
Los Angeles Unified School District, GO, Series B-1, 5.25%, 07/01/42(j) |  |  | 1,451 |  |  |  | 1,817,602 |
Colorado — 1.4% |
Colorado Health Facilities Authority, Refunding RB, Series A, 5.00%, 08/01/44(j) |  |  | 1,950 |  |  |  | 2,350,608 |
Connecticut — 1.8% |
Connecticut State Health & Educational Facilities Authority, Refunding RB, 5.00%, 12/01/45 |  |  | 2,611 |  |  |  | 3,069,471 |
District of Columbia — 2.1% |
Washington Metropolitan Area Transit Authority, RB, Series B, 5.00%, 07/01/42 |  |  | 2,992 |  |  |  | 3,624,252 |
Michigan — 3.5% |
Michigan State Housing Development Authority, RB, S/F Housing, Series C, 3.90%, 12/01/33 |  |  | 5,385 |  |  |  | 6,061,625 |
New Jersey — 0.8% |
New Jersey Transportation Trust Fund Authority, RB, Series B, 5.25%, 06/15/36(j) |  |  | 1,401 |  |  |  | 1,437,360 |
New York — 12.6% |
City of New York Water & Sewer System, RB, Series CC, 5.00%, 06/15/47 |  |  | 6,000 |  |  |  | 6,702,425 |
City of New York, Refunding GO, Series B, 4.00%, 08/01/32 |  |  | 3,990 |  |  |  | 4,354,367 |
Hudson Yards Infrastructure Corp., RB (j) |  |  |  |  |  |  |  |
5.75%, 02/15/21(b) |  |  | 1,548 |  |  |  | 1,583,931 |
5.75%, 02/15/47 |  |  | 952 |  |  |  | 974,386 |

Security |  | Par (000) |  |  | Value |
New York (continued) |
New York City Water & Sewer System, Refunding RB, Series BB, 4.00%, 06/15/47 |  | $ | 3,660 |  |  | $ | 3,878,502 |
New York Liberty Development Corp., RB, 5.25%, 12/15/43 |  |  | 2,505 |  |  |  | 2,632,606 |
New York State Thruway Authority, Refunding RB, Series A, 5.00%, 03/15/31 |  |  | 1,560 |  |  |  | 1,631,682 |
|  |  |  |  |  |  | 21,757,899 |
Texas — 6.0% |
City of San Antonio Texas Electric & Gas Systems Revenue, RB, Junior Lien, 5.00%, 02/01/43 |  |  | 1,580 |  |  |  | 1,731,980 |
El Paso Independent School District, GO, (PSF-GTD), 4.00%, 08/15/48 |  |  | 2,999 |  |  |  | 3,588,845 |
Houston Community College System, GO, 4.00%, 02/15/43 |  |  | 2,998 |  |  |  | 3,218,110 |
San Antonio Water System, Refunding RB, Series C, Junior Lien, 5.00%, 05/15/46 |  |  | 1,515 |  |  |  | 1,825,515 |
|  |  |  |  |  |  | 10,364,450 |
Virginia — 2.6% |
Hampton Roads Transportation Accountability Commission, RB, Series A, Senior Lien, 5.00%, 07/01/48 |  |  | 1,996 |  |  |  | 2,453,792 |
Virginia Small Business Financing Authority, Refunding RB, Series A, 4.00%, 12/01/49 |  |  | 1,860 |  |  |  | 2,090,863 |
|  |  |  |  |  |  | 4,544,655 |
Washington — 1.9% |  |  |  |  |  |  |  |
Washington State Convention Center Public Facilities District, RB, 5.00%, 07/01/58 |  |  | 3,000 |  |  |  | 3,353,340 |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 33.8% (Cost: $55,406,729) |  |  |  | 58,381,262 |
Total Long-Term Investments — 162.9% (Cost: $255,984,040) |  |  |  | 281,511,068 |
|  | Shares |  |  |  |
Short-Term Securities |
Money Market Funds — 2.4% |
BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.01%(k)(l) |  |  | 4,208,944 |  |  |  | 4,209,786 |
Total Short-Term Securities — 2.4% (Cost: $4,209,942) |  |  |  | 4,209,786 |
Total Investments — 165.3% (Cost: $260,193,982) |  |  |  | 285,720,854 |
Other Assets Less Liabilities — 1.0% |  |  |  | 1,715,601 |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (20.1)% |  |  |  | (34,698,046 | )
VMTP Shares at Liquidation Value — (46.2)% |  |  |  | (79,900,000 | )
Net Assets Applicable to Common Shares — 100.0% |  |  | $ | 172,838,409 |

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

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

(c) | Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

SCHEDULE OF INVESTMENTS |  | 29

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Bond Trust (BBK)

(d) | Zero-coupon bond.

(e) | Issuer filed for bankruptcy and/or is in default.

(f) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(g) | Non-income producing security.

(h) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

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

(j) | All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between December 15, 2020 to February 15, 2047, is $4,765,903. See Note 4 of the Notes to Financial Statements for details.

(k) | Affiliate of the Trust.

(l) | Annualized 7-day yield as of period end.

Affiliates

Investments in issuers considered to be an affiliate of the Trust during the year ended August 31, 2020, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliated Issuer |  | Value at 08/31/19 |  |  | Purchases at Cost |  |  | Proceeds from Sales |  |  | Net Realized Gain (Loss) |  |  | Change in Unrealized Appreciation (Depreciation) |  |  | Value at 08/31/20 |  |  | Shares Held at 08/31/20 |  |  | Income |  |  | Capital Gain Distributions from Underlying Funds |
BlackRock Liquidity Funds, MuniCash, Institutional Class |  | $ | 7,802 |  |  | $ | 4,200,116 | (a) |  | $ | — |  |  | $ | 2,024 |  |  | $ | (156 | ) |  | $ | 4,209,786 |  |  |  | 4,208,944 |  |  | $ | 9,159 |  |  | $ | — |

| (a) | Represents net amount purchased (sold). |

Derivative Financial Instruments Categorized by Risk Exposure

For the year ended August 31, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

|  | Commodity Contracts |  |  | Credit Contracts |  |  | Equity Contracts |  |  | Foreign Currency Exchange Contracts |  |  | Interest Rate Contracts |  |  | Other Contracts |  |  | Total |
Net Realized Gain (Loss) from |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Futures contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1,677,947 | ) |  | $ | — |  |  | $ | (1,677,947 | )
Net Change in Unrealized Appreciation (Depreciation) on |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Futures contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 34,381 |  |  | $ | — |  |  | $ | 34,381 |

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts |  |  |  |
Average notional value of contracts — long |  | $ | — | (a)
Average notional value of contracts — short |  | $ | 8,060,484 |

| (a) | Derivative not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period. |

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

30 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Bond Trust (BBK)

Fair Value Hierarchy as of Period End

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

The following table summarizes the Trust’s investments categorized in the disclosure hierarchy. The breakdown of the Trust’s investments into major categories is disclosed in the Schedule of Investments above.

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-Term Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds |  | $ | — |  |  | $ | 222,717,006 |  |  | $ | 412,800 |  |  | $ | 223,129,806 |
Municipal Bonds Transferred to Tender Option Bond Trusts |  |  | — |  |  |  | 58,381,262 |  |  |  | — |  |  |  | 58,381,262 |
Short-Term Securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money Market Funds |  |  | 4,209,786 |  |  |  | — |  |  |  | — |  |  |  | 4,209,786 |
|  | $ | 4,209,786 |  |  | $ | 281,098,268 |  |  | $ | 412,800 |  |  | $ | 285,720,854 |

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

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOB Trust Certificates |  | $ | — |  |  | $ | (34,682,946 | ) |  | $ | — |  |  | $ | (34,682,946 | )
VMTP Shares at Liquidation Value |  |  | — |  |  |  | (79,900,000 | ) |  |  | — |  |  |  | (79,900,000 | )
|  | $ | — |  |  | $ | (114,582,946 | ) |  | $ | — |  |  | $ | (114,582,946 | )

See notes to financial statements.

SCHEDULE OF INVESTMENTS |  | 31

Schedule of Investments August 31, 2020 |  | BlackRock Municipal Income Investment Quality Trsut (BAF) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Municipal Bonds |
Alabama — 0.3% |
Selma Industrial Development Board, RB, Series A, 5.38%, 12/01/35 |  | $ | 335 |  |  | $ | 352,175 |
Arizona — 2.6% |
Arizona Industrial Development Authority, RB (a) 4.38%, 07/01/39 |  |  | 250 |  |  |  | 257,595 |
Series A, 5.00%, 07/01/39 |  |  | 210 |  |  |  | 217,751 |
Series A, 5.00%, 07/01/49 |  |  | 240 |  |  |  | 246,310 |
Series A, 5.00%, 07/01/54 |  |  | 185 |  |  |  | 189,285 |
Industrial Development Authority of the County of Pima, RB, 5.00%, 06/15/47(a) |  |  | 370 |  |  |  | 357,945 |
Maricopa County Industrial Development Authority, Refunding RB |  |  |  |  |  |  |  |
5.00%, 07/01/39(a) |  |  | 100 |  |  |  | 106,952 |
5.00%, 07/01/54(a) |  |  | 225 |  |  |  | 235,764 |
Series A, 4.13%, 09/01/38 |  |  | 300 |  |  |  | 341,820 |
Maricopa County Pollution Control Corp., Refunding RB,Series B, 3.60%, 04/01/40 |  |  | 1,400 |  |  |  | 1,461,894 |
|  |  |  |  |  |  | 3,415,316 |
California — 8.1% |
California State Public Works Board, RB |  |  |  |  |  |  |  |
Series F, 5.25%, 09/01/33 |  |  | 505 |  |  |  | 571,261 |
Series I, 5.50%, 11/01/30 |  |  | 1,000 |  |  |  | 1,158,900 |
Series I, 5.50%, 11/01/31 |  |  | 1,500 |  |  |  | 1,735,695 |
California Statewide Communities Development Authority, Refunding RB, 4.00%, 03/01/42 |  |  | 1,000 |  |  |  | 1,130,150 |
Golden State Tobacco Securitization Corp., Refunding RB |  |  |  |  |  |  |  |
Series A-1, 5.00%, 06/01/47 |  |  | 690 |  |  |  | 707,029 |
Series A-2, 5.00%, 06/01/47 |  |  | 195 |  |  |  | 199,814 |
Kern Community College District, GO, Series C, 5.50%, 11/01/23(b) |  |  | 1,025 |  |  |  | 1,194,791 |
Redondo Beach Unified School District, GO, Series E, 5.50%, 08/01/21(b) |  |  | 1,000 |  |  |  | 1,048,590 |
Regents of the University of California Medical Center Pooled Revenue, Refunding RB |  |  |  |  |  |  |  |
Series J, 5.25%, 05/15/23(b) |  |  | 1,835 |  |  |  | 2,083,074 |
Series J, 5.25%, 05/15/38 |  |  | 520 |  |  |  | 581,308 |
Washington Township Health Care District, GO, Series B, 5.50%, 08/01/40 |  |  | 380 |  |  |  | 427,257 |
|  |  |  |  |  |  | 10,837,869 |
Colorado — 4.2% |
City & County of Denver Colorado Airport System Revenue, RB, Series B, 5.25%, 11/15/32 |  |  | 3,250 |  |  |  | 3,680,072 |
City & County of Denver Colorado, RB, CAB, Series A-2, 0.00%, 08/01/38(c) |  |  | 915 |  |  |  | 490,833 |
Colorado Educational & Cultural Facilities Authority, RB, 5.00%, 03/01/50(a) |  |  | 360 |  |  |  | 357,052 |
Colorado Educational & Cultural Facilities Authority, Refunding RB, 5.00%, 10/01/59(a) |  |  | 480 |  |  |  | 485,376 |
Denver International Business Center Metropolitan District No. 1, GO, Series A, 4.00%, 12/01/48 |  |  | 555 |  |  |  | 562,870 |
|  |  |  |  |  |  | 5,576,203 |
District of Columbia — 0.6% |
Metropolitan Washington Airports Authority Dulles Toll Road Revenue, Refunding RB, Series B, Subordinate, 4.00%, 10/01/49 |  |  | 700 |  |  |  | 763,070 |

Security |  | Par (000) |  |  | Value |
Florida — 10.9% |
Capital Trust Agency, Inc., RB |  |  |  |  |  |  |  |
Series A, 5.00%, 06/01/45(a)(d) |  | $ | 205 |  |  | $ | 202,101 |
Series A, 5.00%, 12/15/49 |  |  | 160 |  |  |  | 173,787 |
Series A, 5.00%, 12/15/54 |  |  | 140 |  |  |  | 152,018 |
City of Jacksonville Florida, RB, Series A, 5.25%, 10/01/31 . |  |  | 4,525 |  |  |  | 4,743,196 |
Collier County Health Facilities Authority, Refunding RB, Series A, 5.00%, 05/01/45 |  |  | 795 |  |  |  | 882,092 |
County of Miami-Dade Seaport Department, RB, Series A, 6.00%, 10/01/38 |  |  | 4,215 |  |  |  | 4,705,415 |
County of Osceola Florida Transportation Revenue, Refunding RB(c) |  |  |  |  |  |  |  |
Series A-2, 0.00%, 10/01/46 |  |  | 625 |  |  |  | 248,800 |
Series A-2, 0.00%, 10/01/47 |  |  | 605 |  |  |  | 231,007 |
Series A-2, 0.00%, 10/01/48 |  |  | 430 |  |  |  | 157,931 |
Series A-2, 0.00%, 10/01/49 |  |  | 355 |  |  |  | 125,059 |
Esplanade Lake Club Community Development District, SAB, Series A-1, 4.13%, 11/01/50 |  |  | 615 |  |  |  | 625,000 |
Florida Development Finance Corp., Refunding RB, Series C, 5.00%, 09/15/50(a) |  |  | 115 |  |  |  | 120,634 |
Orange County Health Facilities Authority, Refunding RB, 5.00%, 08/01/41 |  |  | 1,305 |  |  |  | 1,412,715 |
Reedy Creek Improvement District, GO, Series A, 5.25%, 06/01/23(b) |  |  | 745 |  |  |  | 846,305 |
|  |  |  |  |  |  | 14,626,060 |
Georgia — 6.2% |
City of Atlanta Georgia Department of Aviation, Refunding RB, Series C, 6.00%, 01/01/30 |  |  | 2,500 |  |  |  | 2,545,825 |
Main Street Natural Gas, Inc., RB, Series A, 5.00%, 05/15/49 |  |  | 2,225 |  |  |  | 3,147,863 |
Municipal Electric Authority of Georgia, RB |  |  |  |  |  |  |  |
4.00%, 01/01/49 |  |  | 710 |  |  |  | 807,696 |
4.00%, 01/01/59 |  |  | 1,335 |  |  |  | 1,488,805 |
Municipal Electric Authority of Georgia, Refunding RB, Series A, 4.00%, 01/01/49 |  |  | 260 |  |  |  | 294,388 |
|  |  |  |  |  |  | 8,284,577 |
Idaho — 0.6% |
Idaho Health Facilities Authority, RB, 4.00%, 12/01/43 |  |  | 670 |  |  |  | 767,304 |
Illinois — 18.7% |
Chicago O’Hare International Airport, RB |  |  |  |  |  |  |  |
Series A, 3rd Lien, 5.75%, 01/01/21(b) |  |  | 690 |  |  |  | 702,661 |
Series A, 3rd Lien, 5.75%, 01/01/39 |  |  | 135 |  |  |  | 137,025 |
Series C, 3rd Lien, 6.50%, 01/01/21(b) |  |  | 1,500 |  |  |  | 1,531,260 |
Chicago O’Hare International Airport, Refunding RB, Series C, 3rd Lien, (AGC), 5.25%, 01/01/30 |  |  | 1,000 |  |  |  | 1,003,720 |
Chicago Transit Authority Sales Tax Receipts Fund, RB, 5.25%, 12/01/21(b) |  |  | 6,185 |  |  |  | 6,479,341 |
Chicago Transit Authority, Refunding RB, (AGM), 5.00%, 06/01/28 |  |  | 3,000 |  |  |  | 3,007,170 |
City of Chicago Illinois Wastewater Transmission Revenue, RB, 2nd Lien, 5.00%, 01/01/42 |  |  | 1,480 |  |  |  | 1,540,562 |
Cook County Community College District No. 508, GO |  |  |  |  |  |  |  |
5.50%, 12/01/38 |  |  | 855 |  |  |  | 903,316 |
5.25%, 12/01/43 |  |  | 1,430 |  |  |  | 1,487,758 |
Illinois Finance Authority, RB |  |  |  |  |  |  |  |
Series A, 5.00%, 02/15/37 |  |  | 520 |  |  |  | 524,644 |
Series A, 6.00%, 08/15/41 |  |  | 1,885 |  |  |  | 1,973,369 |
Metropolitan Pier & Exposition Authority, RB, Series A, 5.00%, 06/15/57 |  |  | 450 |  |  |  | 485,100 |

32 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Investment Quality Trsut (BAF) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Illinois (continued) |
Metropolitan Pier & Exposition Authority, Refunding RB, 4.00%, 06/15/50 |  | $ | 465 |  |  | $ | 473,444 |
Railsplitter Tobacco Settlement Authority, RB(b) |  |  |  |  |  |  |  |
5.50%, 06/01/21 |  |  | 915 |  |  |  | 951,179 |
6.00%, 06/01/21 |  |  | 260 |  |  |  | 271,276 |
State of Illinois, GO |  |  |  |  |  |  |  |
5.25%, 02/01/31 |  |  | 610 |  |  |  | 661,697 |
5.25%, 02/01/32 |  |  | 1,010 |  |  |  | 1,094,173 |
5.50%, 07/01/33 |  |  | 1,000 |  |  |  | 1,075,970 |
5.50%, 07/01/38 |  |  | 270 |  |  |  | 287,828 |
Series D, 5.00%, 11/01/28 |  |  | 255 |  |  |  | 286,722 |
State of Illinois, Refunding GO, Series B, 5.00%, 10/01/27 . |  |  | 90 |  |  |  | 102,835 |
|  |  |  |  |  |  | 24,981,050 |
Louisiana — 0.1% |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Series A-2, 6.50%, 11/01/35 |  |  | 155 |  |  |  | 156,195 |
Maryland — 0.4% |
Maryland Community Development Administration, Refunding RB, S/F Housing, Series A, 4.10%, 09/01/38 . |  |  | 475 |  |  |  | 524,134 |
Massachusetts — 1.7% |
Massachusetts Development Finance Agency, RB, Series A, 5.00%, 01/01/47 |  |  | 695 |  |  |  | 773,751 |
Massachusetts Development Finance Agency, Refunding RB |  |  |  |  |  |  |  |
Series A, 5.00%, 10/01/35 |  |  | 500 |  |  |  | 562,255 |
Series C, (AGM), 3.00%, 10/01/45 |  |  | 375 |  |  |  | 380,010 |
Series C, (AGM), 4.00%, 10/01/45 |  |  | 470 |  |  |  | 528,106 |
|  |  |  |  |  |  | 2,244,122 |
Michigan — 0.0% |
City of Detroit Michigan Water Supply System Revenue, RB, Series B, 2nd Lien, (AGM), 6.25%, 07/01/36 |  |  | 5 |  |  |  | 5,022 |
Minnesota — 2.9% |
Duluth Economic Development Authority, Refunding RB |  |  |  |  |  |  |  |
Series A, 4.25%, 02/15/48 |  |  | 3,050 |  |  |  | 3,334,687 |
Series A, 5.25%, 02/15/58 |  |  | 520 |  |  |  | 609,404 |
|  |  |  |  |  |  | 3,944,091 |
Mississippi — 1.7% |
Mississippi Development Bank, RB, (AGM), 6.88%, 12/01/40 |  |  | 1,000 |  |  |  | 1,174,470 |
Mississippi State University Educational Building Corp., Refunding RB, 5.25%, 08/01/23(b) |  |  | 1,000 |  |  |  | 1,145,980 |
|  |  |  |  |  |  | 2,320,450 |
New Hampshire — 0.1% |
New Hampshire Business Finance Authority, Refunding RB, Series A, 3.63%, 07/01/43(a)(e) |  |  | 185 |  |  |  | 186,156 |
New Jersey — 7.0% |
New Jersey Economic Development Authority, RB, Series EEE, 5.00%, 06/15/43 |  |  | 160 |  |  |  | 183,861 |
New Jersey Health Care Facilities Financing Authority, RB, 4.00%, 07/01/47 |  |  | 300 |  |  |  | 326,457 |
New Jersey State Turnpike Authority, RB, 5.00%, 07/01/22(b) |  |  | 1,120 |  |  |  | 1,218,045 |
New Jersey Transportation Trust Fund Authority, RB |  |  |  |  |  |  |  |
5.00%, 06/15/46 |  |  | 2,070 |  |  |  | 2,366,424 |
Series AA, 5.50%, 06/15/39 |  |  | 1,620 |  |  |  | 1,762,933 |

Security |  | Par (000) |  |  | Value |
New Jersey (continued) |
New Jersey Turnpike Authority, RB, Series A, 4.00%, 01/01/48 |  | $ | 270 |  |  | $ | 299,138 |
Tobacco Settlement Financing Corp., Refunding RB |  |  |  |  |  |  |  |
Series A, 5.00%, 06/01/35 |  |  | 580 |  |  |  | 701,516 |
Series A, 5.25%, 06/01/46 |  |  | 1,365 |  |  |  | 1,607,970 |
Sub-Series B, 5.00%, 06/01/46 |  |  | 810 |  |  |  | 916,312 |
|  |  |  |  |  |  | 9,382,656 |
New Mexico — 0.1% |
City of Santa Fe New Mexico, RB, Series A, 5.00%, 05/15/44 |  |  | 100 |  |  |  | 105,538 |
New York — 3.8% |
Metropolitan Transportation Authority, RB |  |  |  |  |  |  |  |
Series A, 5.25%, 11/15/21(b) |  |  | 1,565 |  |  |  | 1,660,184 |
Series A-1, 5.25%, 11/15/39 |  |  | 1,000 |  |  |  | 1,058,880 |
Metropolitan Transportation Authority, Refunding RB |  |  |  |  |  |  |  |
Series C-1, 4.75%, 11/15/45 |  |  | 805 |  |  |  | 872,950 |
Series C-1, 5.25%, 11/15/56 |  |  | 10 |  |  |  | 10,862 |
New York Liberty Development Corp., Refunding RB, Class 1, 5.00%, 11/15/44(a) |  |  | 460 |  |  |  | 481,675 |
New York Power Authority, Refunding RB, Series A, 4.00%, 11/15/60 |  |  | 460 |  |  |  | 533,347 |
Westchester Tobacco Asset Securitization Corp., Refunding RB, Series C, 4.00%, 06/01/42 |  |  | 400 |  |  |  | 401,644 |
|  |  |  |  |  |  | 5,019,542 |
North Carolina — 0.2% |
North Carolina Turnpike Authority, RB, Senior Lien, (AGM), 4.00%, 01/01/55 |  |  | 260 |  |  |  | 292,802 |
Ohio — 2.5% |
Buckeye Tobacco Settlement Financing Authority, Refunding RB, Series B-2, Class 2, 5.00%, 06/01/55 |  |  | 1,890 |  |  |  | 2,072,215 |
County of Hamilton Ohio, Refunding RB, 4.00%, 08/15/50 |  |  | 655 |  |  |  | 738,657 |
Ohio Turnpike & Infrastructure Commission, RB, Series A-1, Junior Lien, 5.25%, 02/15/31 |  |  | 470 |  |  |  | 524,797 |
|  |  |  |  |  |  | 3,335,669 |
Oregon — 0.7% |
Clackamas County School District No. 12 North Clackamas, GO, Series A, 0.00%, 06/15/38(c) |  |  | 510 |  |  |  | 272,299 |
Medford Hospital Facilities Authority, Refunding RB, Series A, 4.00%, 08/15/50 |  |  | 290 |  |  |  | 331,290 |
Multnomah & Clackamas Counties School District No. 10JT Gresham-Barlow, GO, CAB, Series A, 0.00%, 06/15/38(c) |  |  | 530 |  |  |  | 320,730 |
|  |  |  |  |  |  | 924,319 |
Pennsylvania — 2.7% |
Bristol Township School District, GO, 5.25%, 06/01/37 |  |  | 1,500 |  |  |  | 1,662,660 |
Pennsylvania Turnpike Commission, RB |  |  |  |  |  |  |  |
Series C, 5.00%, 12/01/23(b) |  |  | 1,305 |  |  |  | 1,506,009 |
Series C, 5.00%, 12/01/43 |  |  | 415 |  |  |  | 462,501 |
|  |  |  |  |  |  | 3,631,170 |
Puerto Rico — 4.5% |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB |  |  |  |  |  |  |  |
Series A-1, Restructured, 4.75%, 07/01/53 |  |  | 1,774 |  |  |  | 1,856,881 |
Series A-1, Restructured, 5.00%, 07/01/58 |  |  | 2,403 |  |  |  | 2,558,378 |
Series A-2, Restructured, 4.33%, 07/01/40 |  |  | 580 |  |  |  | 603,751 |
Series A-2, Restructured, 4.78%, 07/01/58 |  |  | 121 |  |  |  | 127,400 |

SCHEDULE OF INVESTMENTS |  | 33

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Investment Quality Trust (BAF) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Puerto Rico (continued) |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB (continued) |  |  |  |  |  |  |  |
Series B-1, Restructured, 4.75%, 07/01/53 |  | $ | 187 |  |  | $ | 196,152 |
Series B-2, Restructured, 4.78%, 07/01/58 |  |  | 181 |  |  |  | 190,171 |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(c) |  |  | 1,638 |  |  |  | 467,436 |
|  |  |  |  |  |  | 6,000,169 |
Rhode Island — 0.8% |
Tobacco Settlement Financing Corp., Refunding RB, Series A, 5.00%, 06/01/40 |  |  | 1,050 |  |  |  | 1,123,269 |
South Carolina — 8.2% |
County of Berkeley South Carolina, SAB |  |  |  |  |  |  |  |
4.25%, 11/01/40 |  |  | 140 |  |  |  | 141,771 |
4.38%, 11/01/49 |  |  | 205 |  |  |  | 206,716 |
County of Charleston South Caolina, RB, 5.25%, 12/01/38 . |  |  | 1,525 |  |  |  | 1,741,275 |
South Carolina Jobs-Economic Development Authority, RB, 5.00%, 01/01/55(a) |  |  | 375 |  |  |  | 321,326 |
South Carolina Jobs-Economic Development Authority, Refunding RB |  |  |  |  |  |  |  |
5.00%, 02/01/38 |  |  | 2,875 |  |  |  | 3,366,424 |
Series A, 5.00%, 05/01/43 |  |  | 880 |  |  |  | 1,031,923 |
Series A, 5.00%, 05/01/48 |  |  | 785 |  |  |  | 920,766 |
South Carolina Public Service Authority, RB |  |  |  |  |  |  |  |
Series E, 5.00%, 12/01/48 |  |  | 440 |  |  |  | 485,971 |
Series E, 5.50%, 12/01/53 |  |  | 500 |  |  |  | 559,855 |
South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55 |  |  | 1,825 |  |  |  | 2,119,993 |
|  |  |  |  |  |  | 10,896,020 |
Tennessee — 1.9% |
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Building, Refunding RB |  |  |  |  |  |  |  |
Series A, 4.00%, 10/01/49 |  |  | 230 |  |  |  | 212,881 |
Series A, 5.25%, 10/01/58 |  |  | 2,155 |  |  |  | 2,298,502 |
|  |  |  |  |  |  | 2,511,383 |
Texas — 6.0% |
City of Beaumont Texas, GO, 5.25%, 03/01/37 |  |  | 980 |  |  |  | 1,086,624 |
Lower Colorado River Authority, Refunding RB, 5.50%, 05/15/33 |  |  | 1,000 |  |  |  | 1,126,520 |
New Hope Cultural Education Facilities Finance Corp., RB, Series A, 5.00%, 08/15/50(a) |  |  | 195 |  |  |  | 198,565 |
North Texas Tollway Authority, Refunding RB (AGM), 6.00%, 01/01/21(b) |  |  | 1,000 |  |  |  | 1,019,220 |
4.25%, 01/01/49 |  |  | 2,555 |  |  |  | 2,921,898 |
Red River Education Finance Corp., RB, 5.25%, 03/15/23(b) |  |  | 440 |  |  |  | 495,871 |
Texas City Industrial Development Corp., RB, Series 2012, 4.13%, 12/01/45 |  |  | 110 |  |  |  | 114,288 |
Texas Transportation Commission, RB |  |  |  |  |  |  |  |
0.00%, 08/01/43(c) |  |  | 795 |  |  |  | 307,625 |
Series A, 5.00%, 08/01/57 |  |  | 240 |  |  |  | 279,081 |
Texas Transportation Commission, RB, CAB, 0.00%, 08/01/39(c) |  |  | 1,000 |  |  |  | 484,630 |
|  |  |  |  |  |  | 8,034,322 |

Security |  | Par (000) |  |  | Value |
Utah(a) — 0.2% |
Utah Charter School Finance Authority, RB, Series A, 5.00%, 06/15/39 |  | $ | 100 |  |  | $ | 104,755 |
Utah Charter School Finance Authority, Refunding RB, 5.00%, 06/15/40 |  |  | 150 |  |  |  | 157,024 |
|  |  |  |  |  |  | 261,779 |
Virginia — 0.8% |
Lexington Industrial Development Authority, RB, 5.00%, 01/01/22(b) |  |  | 370 |  |  |  | 393,702 |
Virginia Housing Development Authority, RB, S/F Housing, Series E, 2.80%, 07/01/55 |  |  | 685 |  |  |  | 694,659 |
|  |  |  |  |  |  | 1,088,361 |
Washington(a) — 0.9% |
Washington State Housing Finance Commission, RB, Series A, 5.00%, 01/01/55 |  |  | 220 |  |  |  | 213,400 |
Washington State Housing Finance Commission, Refunding RB, 5.00%, 01/01/43 |  |  | 900 |  |  |  | 937,530 |
|  |  |  |  |  |  | 1,150,930 |
Wisconsin — 0.6% |
Public Finance Authority, RB |  |  |  |  |  |  |  |
Series A, 5.00%, 11/15/41 |  |  | 75 |  |  |  | 87,201 |
Series A, 5.00%, 07/01/55 |  |  | 130 |  |  |  | 132,193 |
Series A-1, 4.50%, 01/01/35(a) |  |  | 230 |  |  |  | 228,696 |
Public Finance Authority, Refunding RB |  |  |  |  |  |  |  |
5.00%, 09/01/54(a) |  |  | 130 |  |  |  | 115,145 |
Series A, 3.00%, 01/01/50 |  |  | 235 |  |  |  | 237,030 |
|  |  |  |  |  |  | 800,265 |
Total Municipal Bonds — 100.0% (Cost: $123,814,605) |  |  |  | 133,541,988 |
Municipal Bonds Transferred to Tender Option Bond Trusts(f) |
California — 10.9% |
Sacramento Area Flood Control Agency, Refunding SAB, Series A, 5.00%, 10/01/43 |  |  | 2,775 |  |  |  | 3,369,294 |
San Marcos Unified School District, GO, Series A, 5.25%, 08/01/21(b) |  |  | 10,680 |  |  |  | 11,174,591 |
|  |  |  |  |  |  | 14,543,885 |
Colorado — 1.2% |
Colorado Health Facilities Authority, Refunding RB, Series A, 4.00%, 08/01/49(g) |  |  | 1,490 |  |  |  | 1,639,760 |
Connecticut — 1.1% |
Connecticut State Health & Educational Facilities Authority, Refunding RB, 5.00%, 12/01/45 |  |  | 1,306 |  |  |  | 1,534,736 |
District of Columbia — 0.7% |
District of Columbia Housing Finance Agency, RB, M/F Housing, Series B-2, (FHA), 4.10%, 09/01/39 |  |  | 790 |  |  |  | 893,237 |
Florida — 1.4% |
Escambia County Health Facilities Authority, Refunding RB, 4.00%, 08/15/45(g) |  |  | 1,771 |  |  |  | 1,925,448 |
Georgia — 0.9% |
Dalton Whitfield County Joint Development Authority, RB, 4.00%, 08/15/48 |  |  | 1,025 |  |  |  | 1,146,462 |

34 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Investment Quality Trust (BAF) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Idaho — 1.5% |
Idaho State Building Authority, RB, Series A, 4.00%, 09/01/48 |  | $ | 1,700 |  |  | $ | 1,935,824 |
Illinois — 5.6% |
Illinois State Toll Highway Authority, RB |  |  |  |  |  |  |  |
Series A, 5.00%, 01/01/40 |  |  | 825 |  |  |  | 957,181 |
Series B, 5.00%, 01/01/40 |  |  | 3,329 |  |  |  | 3,882,257 |
Series C, 5.00%, 01/01/38 |  |  | 2,252 |  |  |  | 2,582,979 |
|  |  |  |  |  |  | 7,422,417 |
Iowa — 1.2% |
Iowa Finance Authority, Refunding RB, Series E, 4.00%, 08/15/46 |  |  | 1,455 |  |  |  | 1,572,782 |
Michigan — 3.7% |
Michigan Finance Authority, RB, 4.00%, 02/15/47 |  |  | 1,624 |  |  |  | 1,828,188 |
Michigan State Building Authority, Refunding RB, Series I, 5.00%, 10/15/45 |  |  | 2,650 |  |  |  | 3,154,772 |
|  |  |  |  |  |  | 4,982,960 |
Nevada — 3.2% |
Las Vegas Valley Water District, Refunding GO, Series C, 5.00%, 06/01/28 |  |  | 4,100 |  |  |  | 4,245,509 |
New Jersey — 0.8% |
New Jersey Transportation Trust Fund Authority, RB, Series B, 5.25%, 06/15/36(g) |  |  | 1,000 |  |  |  | 1,026,686 |
New York — 14.8% |
City of New York, GO, Sub-Series-D1, Series D, 5.00%, 12/01/43(g) |  |  | 2,620 |  |  |  | 3,185,553 |
Hudson Yards Infrastructure Corp., RB (g) |  |  |  |  |  |  |  |
5.75%, 02/15/21(b) |  |  | 619 |  |  |  | 633,572 |
5.75%, 02/15/47 |  |  | 381 |  |  |  | 389,754 |
New York City Housing Development Corp., Refunding RB, Series A, 4.15%, 11/01/38 |  |  | 1,890 |  |  |  | 2,114,759 |
New York City Water & Sewer System, Refunding RB |  |  |  |  |  |  |  |
Series BB, 5.25%, 12/15/21(b) |  |  | 4,993 |  |  |  | 5,317,579 |
Series FF, 5.00%, 06/15/45 |  |  | 3,019 |  |  |  | 3,231,050 |
New York Liberty Development Corp., RB, 5.25%, 12/15/43 |  |  | 2,955 |  |  |  | 3,105,530 |
New York Liberty Development Corp., Refunding RB, 5.75%, 11/15/51(g) |  |  | 1,740 |  |  |  | 1,835,609 |
|  |  |  |  |  |  | 19,813,406 |
North Carolina — 3.0% |
North Carolina Capital Facilities Finance Agency, Refunding RB, Series B, 5.00%, 10/01/55(b) |  |  | 2,400 |  |  |  | 2,962,224 |
North Carolina Housing Finance Agency, RB, S/F Housing, Series 39-B, (FHLMC, FNMA, GNMA), 4.00%, 01/01/48 |  |  | 912 |  |  |  | 982,174 |
|  |  |  |  |  |  | 3,944,398 |
Pennsylvania — 3.7% |
Pennsylvania Turnpike Commission, RB, Series A, 5.50%, 12/01/42 |  |  | 1,094 |  |  |  | 1,310,635 |
Pennsylvania Turnpike Commission, Refunding RB, Sub- Series B-2, (AGM), 5.00%, 06/01/35 |  |  | 1,640 |  |  |  | 2,008,967 |
Westmoreland County Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/38 |  |  | 1,349 |  |  |  | 1,573,366 |
|  |  |  |  |  |  | 4,892,968 |

Security |  | Par (000) |  |  | Value |
Rhode Island — 1.6% |
Rhode Island Health and Educational Building Corp., RB, Series A, 4.00%, 09/15/47 |  | $ | 1,982 |  |  | $ | 2,160,222 |
Texas — 7.0% |
North Texas Tollway Authority, RB, Series A, 5.50%, 09/01/21(b) |  |  | 2,310 |  |  |  | 2,431,298 |
Tarrant County Cultural Education Facilities Finance Corp., RB, Series A, 5.00%, 11/15/38 |  |  | 4,456 |  |  |  | 4,904,594 |
Texas Department of Housing & Community Affairs, RB, S/F Housing |  |  |  |  |  |  |  |
Series A, (GNMA), 3.63%, 09/01/44 |  |  | 1,114 |  |  |  | 1,200,098 |
Series A, (GNMA), 3.75%, 09/01/49 |  |  | 790 |  |  |  | 851,570 |
|  |  |  |  |  |  | 9,387,560 |
Virginia — 1.2% |
Hampton Roads Transportation Accountability Commission, RB, Series A, Senior Lien, 5.50%, 07/01/57(g) |  |  | 1,338 |  |  |  | 1,663,588 |
West Virginia — 1.3% |
Morgantown Utility Board, Inc., RB, Series B, 4.00%, 12/01/48(g) |  |  | 1,511 |  |  |  | 1,702,642 |
Wisconsin — 2.5% |
Wisconsin Housing & Economic Development Authority, RB, M/F Housing |  |  |  |  |  |  |  |
Series A, 4.10%, 11/01/43 |  |  | 1,342 |  |  |  | 1,489,871 |
Series A, 4.45%, 05/01/57 |  |  | 1,678 |  |  |  | 1,862,373 |
|  |  |  |  |  |  | 3,352,244 |
Total Municipal Bonds Transferred to Tender Option BondTrusts — 67.3% (Cost: $83,870,972) |  |  |  | 89,786,734 |
Total Long-Term Investments — 167.3% (Cost: $207,685,577) |  |  |  | 223,328,722 |
|  | Shares |  |  |  |
Short-Term Securities |
Money Market Funds — 0.2% |  |  |  |  |  |
BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.01%(h)(i) |  |  | 335,407 |  |  |  | 335,474 |
Total Short-Term Securities — 0.2% (Cost: $335,474) |  |  |  | 335,474 |
Total Investments — 167.5% (Cost: $208,021,051) |  |  |  | 223,664,196 |
Other Assets Less Liabilities — 1.2% |  |  |  | 1,638,915 |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (37.1)% |  |  |  | (49,576,705 | )
VMTP Shares at Liquidation Value — (31.6)% |  |  |  | (42,200,000 | )
Net Assets Applicable to Common Shares — 100.0% |  |  | $ | 133,526,406 |

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

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

(c) | Zero-coupon bond.

(d) | When-issued security.

(e) | Represents less than 1% of the Trust’s total investments.

SCHEDULE OF INVESTMENTS |  | 35

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Investment Quality Trust (BAF)

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

(g) | All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between December 15, 2020 to February 15, 2047, is $7,006,251. See Note 4 of the Notes to Financial Statements for details.

(h) | Affiliate of the Trust.

(i) | Annualized 7-day yield as of period end.

Affiliates

Investments in issuers considered to be an affiliate of the Trust during the year ended August 31, 2020, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliated Issuer |  | Value at 08/31/19 |  |  | Purchases at Cost |  |  | Proceeds from Sales |  |  | Net Realized Gain (Loss) |  |  | Change in Unrealized Appreciation (Depreciation) |  |  | Value at 08/31/20 |  |  | Shares Held at 08/31/20 |  |  | Income |  |  | Capital Gain Distributions from Underlying Funds |
BlackRock Liquidity Funds, MuniCash,Institutional Class |  | $ | 467,015 |  |  | $ | — |  |  | $ | (132,110 | )(a) |  | $ | 569 |  |  | $ | — |  |  | $ | 335,474 |  |  |  | 335,407 |  |  | $ | 2,723 |  |  | $ | — |

| (a) | Represents net amount purchased (sold). |

Derivative Financial Instruments Categorized by Risk Exposure

For the year ended August 31, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

|  | Commodity Contracts |  |  | Credit Contracts |  |  | Equity Contracts |  |  | Foreign Currency Exchange Contracts |  |  | Interest Rate Contracts |  |  | Other Contracts |  |  | Total |
Net Realized Gain (Loss) from |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Futures contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1,387,561 | ) |  | $ | — |  |  | $ | (1,387,561 | )
Net Change in Unrealized Appreciation (Depreciation) on |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Futures contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 23,686 |  |  | $ | — |  |  | $ | 23,686 |

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts |  |  |  |
Average notional value of contracts — long |  | $ | — | (a)
Average notional value of contracts — short |  | $ | 6,001,598 |

| (a) | Der\ivative not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period. |

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

36 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Investment Quality Trust (BAF)

Fair Value Hierarchy as of Period End

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

The following table summarizes the Trust’s investments categorized in the disclosure hierarchy. The breakdown of the Trust’s investments into major categories is disclosed in the Schedule of Investments above.

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-Term Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds |  | $ | — |  |  | $ | 133,541,988 |  |  | $ | — |  |  | $ | 133,541,988 |
Municipal Bonds Transferred to Tender Option Bond Trusts |  |  | — |  |  |  | 89,786,734 |  |  |  | — |  |  |  | 89,786,734 |
Short-Term Securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money Market Funds |  |  | 335,474 |  |  |  | — |  |  |  | — |  |  |  | 335,474 |
|  | $ | 335,474 |  |  | $ | 223,328,722 |  |  | $ | — |  |  | $ | 223,664,196 |

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

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOB Trust Certificates |  | $ | — |  |  | $ | (49,539,022 | ) |  | $ | — |  |  | $ | (49,539,022 | )
VMTP Shares at Liquidation Value |  |  | — |  |  |  | (42,200,000 | ) |  |  | — |  |  |  | (42,200,000 | )
|  | $ | — |  |  | $ | (91,739,022 | ) |  | $ | — |  |  | $ | (91,739,022 | )

See notes to financial statements.

SCHEDULE OF INVESTMENTS |  | 37

Schedule of Investments August 31, 2020 |  | BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Municipal Bonds |  |  |  |  |  |  |  |
Alabama — 1.3% |
City of Birmingham Albama, GO, Series A-1, Convertible, 5.00%, 03/01/45 |  | $ | 1,165 |  |  | $ | 1,357,330 |
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/20(a) |  |  | 3,800 |  |  |  | 3,817,860 |
|  |  |  |  |  |  | 5,175,190 |
Alaska — 0.3% |
Alaska Industrial Development & Export Authority, RB, Series A, 5.50%, 10/01/41 |  |  | 1,070 |  |  |  | 1,119,252 |
Arizona(b) — 1.2% |
Arizona Industrial Development Authority, RB 4.38%, 07/01/39 |  |  | 725 |  |  |  | 747,025 |
Series A, 5.00%, 07/01/39 |  |  | 610 |  |  |  | 632,515 |
Series A, 5.00%, 07/01/49 |  |  | 690 |  |  |  | 708,140 |
Series A, 5.00%, 07/01/54 |  |  | 530 |  |  |  | 542,275 |
Industrial Development Authority of the County of Pima, RB, 5.00%, 06/15/47 |  |  | 1,065 |  |  |  | 1,030,302 |
Industrial Development Authority of the County of Pima, Refunding RB, 5.00%, 06/15/52 |  |  | 595 |  |  |  | 567,874 |
Maricopa County Industrial Development Authority, Refunding RB |  |  |  |  |  |  |  |
5.00%, 07/01/39 |  |  | 255 |  |  |  | 272,728 |
5.00%, 07/01/54 |  |  | 590 |  |  |  | 618,226 |
|  |  |  |  |  |  | 5,119,085 |
California — 12.2% |
California Health Facilities Financing Authority, Refunding RB, Sub-Series A-2, 5.00%, 11/01/47 |  |  | 1,465 |  |  |  | 2,301,164 |
California Infrastructure & Economic Development Bank, RB, Series A, 1st Lien, (AMBAC), 5.00%, 01/01/28(a) |  |  | 10,100 |  |  |  | 13,314,325 |
California State Public Works Board, RB, Series I, 5.50%, 11/01/33 |  |  | 1,415 |  |  |  | 1,632,089 |
California Statewide Communities Development Authority, RB, Series A, 5.00%, 04/01/42 |  |  | 1,620 |  |  |  | 1,720,310 |
California Statewide Communities Development Authority, Refunding RB, 4.00%, 03/01/48 |  |  | 3,175 |  |  |  | 3,505,105 |
Golden State Tobacco Securitization Corp., Refunding RB Series A-1, 5.00%, 06/01/47 |  |  | 2,060 |  |  |  | 2,110,841 |
Series A-2, 5.00%, 06/01/47 |  |  | 565 |  |  |  | 578,950 |
Mount San Antonio Community College District, Refunding GO, Series A, Convertible, 6.25%,08/01/43(c) |  |  | 1,580 |  |  |  | 1,724,001 |
Riverside County Redevelopment Successor Agency, Refunding TA, Series A, (BAM), 4.00%, 10/01/39 |  |  | 3,700 |  |  |  | 4,136,600 |
San Diego Unified School District, GO(d) Series C, 0.00%, 07/01/38 |  |  | 2,000 |  |  |  | 1,362,800 |
Series G, 0.00%, 01/01/24(a) |  |  | 3,425 |  |  |  | 1,754,207 |
San Diego Unified School District, GO, CAB(d) Series K-2, 0.00%, 07/01/38 |  |  | 1,745 |  |  |  | 989,363 |
Series K-2, 0.00%, 07/01/39 |  |  | 2,115 |  |  |  | 1,147,366 |
Series K-2, 0.00%, 07/01/40 |  |  | 2,715 |  |  |  | 1,410,904 |
San Diego Unified School District, Refunding GO, Series R-1, 0.00%, 07/01/31(d) |  |  | 1,400 |  |  |  | 1,206,772 |
State of California, GO, 5.00%, 04/01/42 |  |  | 3,000 |  |  |  | 3,196,740 |

Security |  | Par (000) |  |  | Value |
California (continued) |
State of California, Refunding GO, 5.00%, 10/01/41 |  | $ | 1,100 |  |  | $ | 1,150,127 |
Yosemite Community College District, GO, Series D, 0.00%, 08/01/37(d) |  |  | 10,000 |  |  |  | 7,075,500 |
|  |  |  |  |  |  | 50,317,164 |
Colorado — 0.6% |
Regional Transportation District, COP, Series A, 5.00%, 06/01/39 |  |  | 1,305 |  |  |  | 1,445,052 |
Sabell Metropolitan District, GO, Series A, 5.00%, 12/01/50(b) |  |  | 1,055 |  |  |  | 1,024,901 |
|  |  |  |  |  |  | 2,469,953 |
Connecticut — 0.7% |
State of Connecticut, Refunding GO, Series E, 5.00%, 09/15/37 |  |  | 2,280 |  |  |  | 2,818,832 |
Delaware — 0.7% |
County of Kent Delaware, RB |  |  |  |  |  |  |  |
Series A, 5.00%, 07/01/40 |  |  | 770 |  |  |  | 770,662 |
Series A, 5.00%, 07/01/48 |  |  | 2,110 |  |  |  | 2,084,659 |
|  |  |  |  |  |  | 2,855,321 |
District of Columbia — 2.4% |
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, 6.75%, 05/15/40 |  |  | 9,500 |  |  |  | 9,767,805 |
Florida — 4.6% |
Brevard County Health Facilities Authority, Refunding RB, 5.00%, 04/01/39 |  |  | 1,795 |  |  |  | 1,978,449 |
Capital Trust Agency, Inc., RB, Series A, 5.00%, 06/01/45(b)(e) |  |  | 615 |  |  |  | 606,304 |
County of Miami-Dade Seaport Department, RB, Series A, 6.00%, 10/01/38 |  |  | 2,770 |  |  |  | 3,092,289 |
Florida Development Finance Corp., Refunding RB, 5.00%, 09/15/40(b) |  |  | 340 |  |  |  | 358,486 |
Miami-Dade County Educational Facilities Authority, Refunding RB, Series A, 5.00%, 04/01/40 |  |  | 3,910 |  |  |  | 4,355,701 |
Miami-Dade County Health Facilities Authority, Refunding RB, 5.00%, 08/01/42 |  |  | 685 |  |  |  | 808,081 |
Orange County Health Facilities Authority, Refunding RB |  |  |  |  |  |  |  |
5.00%, 08/01/41 |  |  | 630 |  |  |  | 682,000 |
5.00%, 08/01/47 |  |  | 1,845 |  |  |  | 1,982,582 |
Preserve at South Branch Community Development District, SAB |  |  |  |  |  |  |  |
4.00%, 11/01/39 |  |  | 300 |  |  |  | 303,762 |
4.00%, 11/01/50 |  |  | 500 |  |  |  | 495,780 |
Reedy Creek Improvement District, GO, Series A, 5.25%, 06/01/23(a) |  |  | 1,340 |  |  |  | 1,522,213 |
Tohopekaliga Water Authority, Refunding RB, Series A, 5.25%, 10/01/21(a) |  |  | 2,000 |  |  |  | 2,108,840 |
Westside Community Development District, Refunding SAB (b) |  |  |  |  |  |  |  |
4.10%, 05/01/37 |  |  | 260 |  |  |  | 269,635 |
4.13%, 05/01/38 |  |  | 260 |  |  |  | 269,337 |
|  |  |  |  |  |  | 18,833,459 |
Georgia — 2.9% |
City of Atlanta Georgia Department of Aviation, Refunding RB, |  |  |  |  |  |  |  |
Series C, 6.00%, 01/01/30 |  |  | 7,500 |  |  |  | 7,637,475 |
Gainesville & Hall County Hospital Authority, Refunding RB, |  |  |  |  |  |  |  |
Series A, (GTD), 5.50%, 08/15/54 |  |  | 545 |  |  |  | 634,974 |

38 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Georgia (continued) |
Georgia Housing & Finance Authority, RB, S/F Housing |  |  |  |  |  |  |  |
Series A, 3.95%, 12/01/43 |  | $ | 460 |  |  | $ | 505,407 |
Series A, 4.00%, 12/01/48 |  |  | 500 |  |  |  | 539,950 |
Main Street Natural Gas, Inc., RB |  |  |  |  |  |  |  |
Series A, 5.00%, 05/15/38 |  |  | 595 |  |  |  | 807,486 |
Series A, 5.00%, 05/15/43 |  |  | 775 |  |  |  | 913,601 |
Private Colleges & Universities Authority, RB |  |  |  |  |  |  |  |
5.00%, 04/01/33 |  |  | 155 |  |  |  | 175,424 |
5.00%, 04/01/44 |  |  | 595 |  |  |  | 658,201 |
|  |  |  |  |  |  | 11,872,518 |
Illinois — 15.2% |
Chicago O’Hare International Airport, RB, Series D, Senior Lien, 5.25%, 01/01/42 |  |  | 3,300 |  |  |  | 3,904,098 |
Chicago O’Hare International Airport, Refunding RB, Series D, Senior Lien, 5.25%, 01/01/34 |  |  | 9,800 |  |  |  | 10,718,554 |
Chicago Transit Authority Sales Tax Receipts Fund, RB |  |  |  |  |  |  |  |
5.25%, 12/01/21(a) |  |  | 650 |  |  |  | 681,870 |
5.25%, 12/01/49 |  |  | 3,500 |  |  |  | 3,891,265 |
Cook County Community College District No. 508, GO |  |  |  |  |  |  |  |
5.13%, 12/01/38 |  |  | 7,700 |  |  |  | 8,010,926 |
5.50%, 12/01/38 |  |  | 1,000 |  |  |  | 1,056,510 |
Cook County Forest Preserve District, Refunding GO, Series B, 5.00%, 12/15/37 |  |  | 210 |  |  |  | 224,034 |
County of Will Illinois, GO, 5.00%, 11/15/45 |  |  | 1,400 |  |  |  | 1,625,288 |
Illinois Finance Authority, RB |  |  |  |  |  |  |  |
Series A, 5.00%, 02/15/47 |  |  | 480 |  |  |  | 477,523 |
Series A, 5.00%, 02/15/50 |  |  | 240 |  |  |  | 238,687 |
Illinois Finance Authority, Refunding RB |  |  |  |  |  |  |  |
Series A, 5.00%, 11/15/45 |  |  | 2,815 |  |  |  | 3,189,761 |
Series B, 4.00%, 08/15/41 |  |  | 900 |  |  |  | 994,680 |
Series C, 4.13%, 08/15/37 |  |  | 3,130 |  |  |  | 3,372,481 |
Series C, 5.00%, 08/15/44 |  |  | 390 |  |  |  | 435,497 |
Illinois State Toll Highway Authority, RB, Series A, 5.00%, 01/01/40 |  |  | 7,020 |  |  |  | 8,143,411 |
Metropolitan Pier & Exposition Authority, RB, Series A, 5.00%, 06/15/57 |  |  | 670 |  |  |  | 722,260 |
Metropolitan Pier & Exposition Authority, Refunding RB, 4.00%, 06/15/50 |  |  | 515 |  |  |  | 524,352 |
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 06/01/21(a) |  |  | 710 |  |  |  | 740,793 |
State of Illinois, GO |  |  |  |  |  |  |  |
5.25%, 07/01/29 |  |  | 8,345 |  |  |  | 8,964,283 |
5.50%, 07/01/33 |  |  | 880 |  |  |  | 946,854 |
5.50%, 07/01/38 |  |  | 1,475 |  |  |  | 1,572,394 |
5.50%, 05/01/39 |  |  | 1,840 |  |  |  | 2,147,390 |
|  |  |  |  |  |  | 62,582,911 |
Indiana — 0.3% |
Indiana Finance Authority, RB, Series A, 1st Lien, 5.25%, 10/01/38 |  |  | 1,100 |  |  |  | 1,153,097 |
Iowa — 0.8% |
Iowa Finance Authority, RB, 5.50%, 07/01/33 |  |  | 3,000 |  |  |  | 3,379,710 |
Louisiana — 0.1% |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Series A-2, 6.50%, 11/01/35 |  |  | 465 |  |  |  | 468,585 |

Security |  | Par (000) |  |  | Value |
Maryland — 1.7% |  |  |  |  |  |  |  |
County of Montgomery Maryland, RB, 4.00%, 12/01/44 |  | $ | 1,810 |  |  | $ | 1,958,782 |
Maryland Community Development Administration, Refunding RB, S/F Housing, Series A, 4.10%, 09/01/38 |  |  | 500 |  |  |  | 551,720 |
Maryland Health & Higher Educational Facilities Authority, RB, |  |  |  |  |  |  |  |
4.00%, 07/01/48 |  |  | 4,000 |  |  |  | 4,411,360 |
|  |  |  |  |  |  | 6,921,862 |
Massachusetts — 2.9% |  |  |  |  |  |  |  |
Massachusetts Development Finance Agency, RB |  |  |  |  |  |  |  |
5.00%, 01/01/48 |  |  | 2,595 |  |  |  | 2,927,056 |
5.00%, 10/01/48 |  |  | 1,970 |  |  |  | 1,822,802 |
Series A, 5.00%, 01/01/47 |  |  | 2,370 |  |  |  | 2,638,545 |
Massachusetts Development Finance Agency, Refunding RB |  |  |  |  |  |  |  |
5.00%, 07/01/37 |  |  | 190 |  |  |  | 211,584 |
5.00%, 09/01/43 |  |  | 1,750 |  |  |  | 2,006,410 |
Series A, 4.00%, 06/01/49 |  |  | 185 |  |  |  | 199,232 |
Massachusetts HFA, RB, M/F Housing, Series A, 3.85%, 06/01/46 |  |  | 490 |  |  |  | 525,358 |
Massachusetts School Building Authority, RB, Series A, 5.00%, 05/15/43 |  |  | 1,395 |  |  |  | 1,547,376 |
|  |  |  |  |  |  | 11,878,363 |
Michigan — 6.9% |
Michigan Finance Authority, RB, 5.00%, 11/01/44 |  |  | 3,640 |  |  |  | 4,181,996 |
Michigan Finance Authority, Refunding RB |  |  |  |  |  |  |  |
5.00%, 12/01/21(a) |  |  | 9,050 |  |  |  | 9,593,090 |
5.00%, 11/15/41 |  |  | 2,235 |  |  |  | 2,615,531 |
Michigan State Building Authority, Refunding RB |  |  |  |  |  |  |  |
Series I-A, 5.38%, 10/15/36 |  |  | 2,000 |  |  |  | 2,105,600 |
Series I-A, 5.38%, 10/15/41 |  |  | 800 |  |  |  | 839,872 |
Series II-A, 5.38%, 10/15/36 |  |  | 1,500 |  |  |  | 1,579,200 |
Michigan State Hospital Finance Authority, Refunding RB, 5.00%, 11/15/47 |  |  | 500 |  |  |  | 634,115 |
Michigan State Housing Development Authority, RB, S/F Housing, Series A, 3.80%, 10/01/38 |  |  | 3,965 |  |  |  | 4,380,056 |
Royal Oak Hospital Finance Authority, Refunding RB, Series D, 5.00%, 09/01/39 |  |  | 1,560 |  |  |  | 1,754,673 |
Western Michigan University, Refunding RB, (AGM), 5.00%, 11/15/39 |  |  | 430 |  |  |  | 478,014 |
|  |  |  |  |  |  | 28,162,147 |
Minnesota — 0.4% |
City of Minneapolis Minnesota, Refunding RB, Series A, 5.00%, 11/15/49 |  |  | 1,315 |  |  |  | 1,557,157 |
Nebraska — 1.7% |
Central Plains Energy Project, RB, 5.25%, 09/01/37 |  |  | 6,345 |  |  |  | 6,929,248 |
New Hampshire — 0.1% |
New Hampshire Business Finance Authority, Refunding RB, Series A, 3.63%, 07/01/43(b)(f) |  |  | 550 |  |  |  | 553,438 |
New Jersey — 9.6% |
New Jersey Economic Development Authority, RB |  |  |  |  |  |  |  |
Series DDD, 5.00%, 06/15/42 |  |  | 375 |  |  |  | 421,965 |
Series WW, 5.25%, 06/15/25(a) |  |  | 20 |  |  |  | 24,674 |
Series WW, 5.25%, 06/15/33 |  |  | 170 |  |  |  | 192,022 |
Series WW, 5.00%, 06/15/34 |  |  | 225 |  |  |  | 249,950 |
Series WW, 5.00%, 06/15/36 |  |  | 1,395 |  |  |  | 1,542,298 |

SCHEDULE OF INVESTMENTS |  | 39

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
New Jersey (continued) |
New Jersey Economic Development Authority, RB (continued) |  |  |  |  |  |  |  |
Series WW, 5.25%, 06/15/40 |  | $ | 380 |  |  | $ | 422,590 |
New Jersey Economic Development Authority, Refunding RB, Series A, 4.00%, 07/01/32 |  |  | 930 |  |  |  | 981,076 |
New Jersey Health Care Facilities Financing Authority, Refunding RB, 5.00%, 10/01/37 |  |  | 1,605 |  |  |  | 1,797,616 |
New Jersey Transportation Trust Fund Authority, RB |  |  |  |  |  |  |  |
Series A, 5.50%, 06/15/21(a) |  |  | 3,000 |  |  |  | 3,125,970 |
Series AA, 5.25%, 06/15/33 |  |  | 1,660 |  |  |  | 1,810,678 |
Series AA, 5.00%, 06/15/36 |  |  | 5,070 |  |  |  | 5,424,241 |
Series AA, 5.00%, 06/15/38 |  |  | 945 |  |  |  | 1,026,450 |
Series AA, 5.50%, 06/15/39 |  |  | 3,785 |  |  |  | 4,118,951 |
Series B, 5.25%, 06/15/36 |  |  | 5,000 |  |  |  | 5,131,450 |
Series D, 5.00%, 06/15/32 |  |  | 900 |  |  |  | 1,001,556 |
Series S, 5.25%, 06/15/43 |  |  | 2,150 |  |  |  | 2,527,540 |
New Jersey Transportation Trust Fund Authority, RB, CAB, Series A, 0.00%, 12/15/38(d) |  |  | 5,845 |  |  |  | 3,052,376 |
New Jersey Transportation Trust Fund Authority, Refunding RB, Series A, 5.00%, 12/15/36 |  |  | 340 |  |  |  | 395,954 |
South Jersey Port Corp., RB, Series A, 5.00%, 01/01/49 |  |  | 720 |  |  |  | 795,514 |
Tobacco Settlement Financing Corp., Refunding RB |  |  |  |  |  |  |  |
Series A, 5.00%, 06/01/35 |  |  | 1,750 |  |  |  | 2,116,642 |
Series A, 5.25%, 06/01/46 |  |  | 1,725 |  |  |  | 2,032,050 |
Sub-Series B, 5.00%, 06/01/46 |  |  | 1,130 |  |  |  | 1,278,312 |
|  |  |  |  |  |  | 39,469,875 |
New Mexico — 0.2% |
City of Santa Fe New Mexico, RB, Series A, 5.00%, 05/15/49 |  |  | 220 |  |  |  | 230,747 |
New Mexico Hospital Equipment Loan Council, Refunding |  |  |  |  |  |  |  |
RB, Series VIC, 5.00%, 08/01/44 |  |  | 405 |  |  |  | 462,802 |
|  |  |  |  |  |  | 693,549 |
New York — 3.1% |  |  |  |  |  |  |  |
Hudson Yards Infrastructure Corp., RB, 5.75%, 02/15/21(a) |  |  | 480 |  |  |  | 491,885 |
Metropolitan Transportation Authority, Refunding RB |  |  |  |  |  |  |  |
Series C-1, 5.25%, 11/15/55 |  |  | 1,135 |  |  |  | 1,283,685 |
Series C-1, 5.00%, 11/15/56 |  |  | 1,690 |  |  |  | 1,819,319 |
New York City Transitional Finance Authority Future Tax |  |  |  |  |  |  |  |
Secured Revenue, Refunding RB, Series B, 5.00%, 11/01/32 |  |  | 1,650 |  |  |  | 1,803,186 |
New York City Water & Sewer System, Refunding RB, Series BB, 4.00%, 06/15/47 |  |  | 2,855 |  |  |  | 3,025,443 |
New York Liberty Development Corp., Refunding RB, Class 1, 5.00%, 11/15/44(b) |  |  | 1,240 |  |  |  | 1,298,429 |
State of New York Mortgage Agency, Refunding RB, Series 211, 3.75%, 10/01/43 |  |  | 2,810 |  |  |  | 3,053,093 |
|  |  |  |  |  |  | 12,775,040 |
Ohio — 4.3% |  |  |  |  |  |  |  |
Buckeye Tobacco Settlement Financing Authority, Refunding RB |  |  |  |  |  |  |  |
Series A-2, Class 1, 3.00%, 06/01/48 |  |  | 3,495 |  |  |  | 3,453,864 |
Series B-2, Class 2, 5.00%, 06/01/55 |  |  | 5,455 |  |  |  | 5,980,917 |
County of Lucas Ohio, Refunding RB, Series A, 6.50%, 11/15/21(a) |  |  | 610 |  |  |  | 656,256 |
Northwest Local School District/Hamilton & Butler Counties, GO, 4.00%, 12/01/50 |  |  | 2,645 |  |  |  | 2,826,870 |

Security |  | Par (000) |  |  | Value |
Ohio (continued) |
Ohio Turnpike & Infrastructure Commission, RB |  |  |  |  |  |  |  |
Series A-1, Junior Lien, 5.25%, 02/15/32 |  | $ | 780 |  |  | $ | 869,965 |
Series A-1, Junior Lien, 5.25%, 02/15/33 |  |  | 1,095 |  |  |  | 1,219,907 |
State of Ohio, Refunding RB, Series A, 5.00%, 01/15/41 |  |  | 2,500 |  |  |  | 2,616,300 |
|  |  |  |  |  |  | 17,624,079 |
Oregon — 0.4% |
Clackamas County School District No. 12 North Clackamas, GO, Series A, 0.00%, 06/15/38(d) |  |  | 1,115 |  |  |  | 595,321 |
Washington & Multnomah Counties School District No. 48J Beaverton, GO, CAB, Series D, 5.00%, 06/15/36 |  |  | 945 |  |  |  | 1,177,801 |
|  |  |  |  |  |  | 1,773,122 |
Pennsylvania — 5.2% |
Commonwealth Financing Authority, RB |  |  |  |  |  |  |  |
5.00%, 06/01/33 |  |  | 790 |  |  |  | 972,190 |
5.00%, 06/01/34 |  |  | 1,750 |  |  |  | 2,142,052 |
(AGM), 4.00%, 06/01/39 |  |  | 3,230 |  |  |  | 3,673,640 |
Montgomery County Higher Education and Health Authority, Refunding RB, Series A, 4.00%, 09/01/49 |  |  | 1,145 |  |  |  | 1,247,569 |
Pennsylvania Higher Educational Facilities Authority, Refunding RB, Series A, 5.25%, 09/01/50 |  |  | 4,245 |  |  |  | 4,837,050 |
Pennsylvania Turnpike Commission, RB |  |  |  |  |  |  |  |
6.00%, 12/01/20(a) |  |  | 625 |  |  |  | 633,994 |
Series A, 5.00%, 12/01/38 |  |  | 695 |  |  |  | 800,133 |
Series A-1, 5.00%, 12/01/41 |  |  | 2,730 |  |  |  | 3,190,032 |
Series B, 5.00%, 12/01/40 |  |  | 1,060 |  |  |  | 1,232,801 |
Series C, 5.50%, 12/01/23(a) |  |  | 630 |  |  |  | 737,220 |
Pennsylvania Turnpike Commission, Refunding RB |  |  |  |  |  |  |  |
5.00%, 12/01/35 |  |  | 860 |  |  |  | 1,031,665 |
Series A-1, 5.00%, 12/01/40 |  |  | 850 |  |  |  | 981,546 |
|  |  |  |  |  |  | 21,479,892 |
Puerto Rico — 4.3% |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB |  |  |  |  |  |  |  |
Series A-1, Restructured, 4.75%, 07/01/53 |  |  | 5,112 |  |  |  | 5,350,833 |
Series A-1, Restructured, 5.00%, 07/01/58 |  |  | 6,950 |  |  |  | 7,399,387 |
Series A-2, Restructured, 4.33%, 07/01/40 |  |  | 1,688 |  |  |  | 1,757,123 |
Series A-2, Restructured, 4.78%, 07/01/58 |  |  | 349 |  |  |  | 367,459 |
Series B-1, Restructured, 4.75%, 07/01/53 |  |  | 536 |  |  |  | 562,232 |
Series B-2, Restructured, 4.78%, 07/01/58 |  |  | 520 |  |  |  | 546,348 |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(d) |  |  | 6,308 |  |  |  | 1,800,114 |
|  |  |  |  |  |  | 17,783,496 |
Rhode Island — 1.5% |
Tobacco Settlement Financing Corp., Refunding RB, Series B, 4.50%, 06/01/45 |  |  | 5,855 |  |  |  | 6,130,068 |
South Carolina — 5.0% |
South Carolina Jobs-Economic Development Authority, RB, 5.00%, 01/01/55(b) |  |  | 1,095 |  |  |  | 938,272 |
South Carolina Jobs-Economic Development Authority, Refunding RB, Series A, (AGM), 6.50%, 08/01/21(a) |  |  | 260 |  |  |  | 275,111 |
South Carolina Public Service Authority, RB |  |  |  |  |  |  |  |
Series A, 5.50%, 12/01/54 |  |  | 6,960 |  |  |  | 7,878,929 |
Series E, 5.50%, 12/01/53 |  |  | 1,610 |  |  |  | 1,802,733 |
South Carolina Public Service Authority, Refunding RB |  |  |  |  |  |  |  |
Series B, 5.00%, 12/01/38 |  |  | 2,360 |  |  |  | 2,625,689 |

40 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
South Carolina (continued) |  |  |  |  |  |  |  |
South Carolina Public Service Authority, Refunding RB (continued) Series B, (AGM), 5.00%, 12/01/56 |  | $ | 2,845 |  |  | $ | 3,373,402 |
Spartanburg Regional Health Services District, Refunding RB, Series A, 4.00%, 04/15/43 |  |  | 3,500 |  |  |  | 3,823,820 |
|  |  |  |  |  |  | 20,717,956 |
South Dakota — 0.5% |  |  |  |  |  |  |  |
City of Rapid City South Dakota, RB, 4.00%, 12/01/48 |  |  | 1,760 |  |  |  | 1,927,886 |
Tennessee — 0.0% |  |  |  |  |  |  |  |
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Building, RB, Series A, 5.00%, 07/01/40 |  |  | 35 |  |  |  | 40,173 |
Texas — 15.4% |  |  |  |  |  |  |  |
City of San Antonio Texas Electric & Gas Systems Revenue, RB, Junior Lien, 5.00%, 02/01/38 |  |  | 615 |  |  |  | 676,875 |
Coppell Independent School District, Refunding GO, CAB, (PSF-GTD), 0.00%, 08/15/30(d) |  |  | 10,030 |  |  |  | 8,722,489 |
County of Harris Texas, Refunding GO(d) |  |  |  |  |  |  |  |
(NPFGC), 0.00%, 08/15/25 |  |  | 7,485 |  |  |  | 7,238,220 |
(NPFGC), 0.00%, 08/15/28 |  |  | 10,915 |  |  |  | 9,932,977 |
Dallas Fort Worth International Airport, Refunding RB, Series F, 5.25%, 11/01/33 |  |  | 1,090 |  |  |  | 1,236,049 |
El Paso Independent School District, GO, (PSF-GTD), 4.00%, 08/15/43 |  |  | 2,110 |  |  |  | 2,475,916 |
Grand Parkway Transportation Corp., RB, CAB, Series B, 5.80%, 10/01/46(c) |  |  | 2,365 |  |  |  | 2,611,930 |
Harris County-Houston Sports Authority, Refunding RB(d) |  |  |  |  |  |  |  |
Series A, 3rd Lien, (NPFGC), 0.00%, 11/15/24(a) |  |  | 5,965 |  |  |  | 2,544,550 |
Series A, 3rd Lien, (NPFGC), 0.00%, 11/15/38 |  |  | 10,925 |  |  |  | 4,164,501 |
Harris County-Houston Sports Authority, Refunding RB, CAB(d) |  |  |  |  |  |  |  |
Series H, Junior Lien, (NPFGC), 0.00%, 11/15/38 |  |  | 5,785 |  |  |  | 2,525,268 |
Series H, Junior Lien, (NPFGC), 0.00%, 11/15/39 |  |  | 6,160 |  |  |  | 2,516,976 |
Leander Independent School District, Refunding GO, Series D, (PSF-GTD), 0.00%, 08/15/38(d) |  |  | 3,775 |  |  |  | 1,843,483 |
Midland County Fresh Water Supply District No. 1, RB, Series A, 0.00%, 09/15/36(d) |  |  | 2,340 |  |  |  | 1,316,110 |
New Hope Cultural Education Facilities Finance Corp., RB, Series A, 5.00%, 08/15/50(b) |  |  | 580 |  |  |  | 590,602 |
North Texas Tollway Authority, RB(a) |  |  |  |  |  |  |  |
Series A, 6.00%, 09/01/21 |  |  | 1,000 |  |  |  | 1,057,480 |
Series B, 0.00%, 09/01/31(d) |  |  | 1,975 |  |  |  | 1,062,965 |
Series C, Convertible, 6.75%, 09/01/31(c) |  |  | 2,500 |  |  |  | 3,747,350 |
North Texas Tollway Authority, Refunding RB, Series B, 5.00%, 01/01/40 |  |  | 385 |  |  |  | 418,953 |
San Antonio Public Facilities Corp., Refunding RB, 4.00%, 09/15/42 |  |  | 3,155 |  |  |  | 3,326,537 |
Texas City Industrial Development Corp., RB, Series 2012, 4.13%, 12/01/45 |  |  | 330 |  |  |  | 342,863 |
Texas Municipal Gas Acquisition & Supply Corp. III, RB |  |  |  |  |  |  |  |
5.00%, 12/15/31 |  |  | 2,105 |  |  |  | 2,219,386 |
5.00%, 12/15/32 |  |  | 2,540 |  |  |  | 2,665,451 |
|  |  |  |  |  |  | 63,236,931 |

Security |  | Par (000) |  |  | Value |
Utah — 0.8% |
Salt Lake City Corp. Airport Revenue, RB, Series B, 5.00%, 07/01/43 |  | $ | 2,100 |  |  | $ | 2,543,541 |
Utah Charter School Finance Authority, RB, Series A, 5.00%, 06/15/49(b) |  |  | 235 |  |  |  | 242,069 |
Utah Charter School Finance Authority, Refunding RB, 5.00%, 06/15/55(b) |  |  | 450 |  |  |  | 460,057 |
|  |  |  |  |  |  | 3,245,667 |
Virginia — 0.8% |
Virginia Beach Development Authority, Refunding RB |  |  |  |  |  |  |  |
5.00%, 09/01/44 |  |  | 1,375 |  |  |  | 1,468,637 |
4.00%, 09/01/48 |  |  | 885 |  |  |  | 853,804 |
Virginia Housing Development Authority, RB, M/F |  |  |  |  |  |  |  |
Housing, Series B, 4.00%, 06/01/53 |  |  | 895 |  |  |  | 972,471 |
|  |  |  |  |  |  | 3,294,912 |
Washington — 1.0% |
Washington Health Care Facilities Authority, RB, Series B, 5.00%, 08/15/44 |  |  | 2,000 |  |  |  | 2,147,700 |
Washington State Housing Finance Commission, RB, Series A, 5.00%, 01/01/55(b) |  |  | 625 |  |  |  | 606,250 |
Washington State Housing Finance Commission, Refunding RB, 5.00%, 01/01/38(b) |  |  | 1,400 |  |  |  | 1,475,530 |
|  |  |  |  |  |  | 4,229,480 |
West Virginia — 0.8% |
West Virginia Hospital Finance Authority, RB, Series A, 4.00%, 06/01/51 |  |  | 3,050 |  |  |  | 3,282,746 |
Wisconsin — 2.4% |
Public Finance Authority, RB |  |  |  |  |  |  |  |
Series A, 5.00%, 07/15/39(b) |  |  | 120 |  |  |  | 124,298 |
Series A, 5.00%, 07/15/49(b) |  |  | 455 |  |  |  | 464,114 |
Series A, 5.00%, 07/15/54(b) |  |  | 215 |  |  |  | 218,666 |
Series A, 5.00%, 07/01/55 |  |  | 395 |  |  |  | 401,664 |
Series A-1, 4.50%, 01/01/35(b) |  |  | 685 |  |  |  | 681,116 |
Public Finance Authority, Refunding RB, 5.00%, 09/01/39(b) |  |  | 375 |  |  |  | 353,051 |
Wisconsin Health & Educational Facilities Authority, Refunding RB |  |  |  |  |  |  |  |
5.00%, 04/01/44 |  |  | 1,895 |  |  |  | 2,315,008 |
Series C, 4.00%, 02/15/42 |  |  | 5,000 |  |  |  | 5,376,400 |
|  |  |  |  |  |  | 9,934,317 |
Total Municipal Bonds — 112.3% (Cost: $412,096,617) |  |  |  |  |  |  | 461,574,286 |
Municipal Bonds Transferred to Tender Option Bond Trusts(g) |
California — 1.8% |  |  |  |  |  |  |  |
Los Angeles Unified School District, GO, Series B-1, 5.25%, 07/01/42(h) |  |  | 3,432 |  |  |  | 4,299,149 |
Visalia Unified School District, COP, (AGM), 4.00%, 05/01/48 |  |  | 3,078 |  |  |  | 3,100,789 |
|  |  |  |  |  |  | 7,399,938 |
Colorado — 1.3% |  |  |  |  |  |  |  |
Colorado Health Facilities Authority, Refunding RB, Series A, 5.00%, 08/01/44(h) |  |  | 4,605 |  |  |  | 5,551,051 |

SCHEDULE OF INVESTMENTS |  | 41

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Connecticut — 0.4% |
Connecticut State Health & Educational Facilities Authority, Refunding RB, 5.00%, 12/01/45 |  | $ | 1,561 |  |  | $ | 1,834,627 |
Florida — 1.4% |
City of Miami Beach Florida, RB, 5.00%, 09/01/45 |  |  | 3,500 |  |  |  | 3,850,910 |
County of Miami-Dade Florida Transit System, Refunding RB, 5.00%, 07/01/22(a) |  |  | 1,950 |  |  |  | 2,118,032 |
|  |  |  |  |  |  | 5,968,942 |
Illinois — 4.6% |
Illinois Finance Authority, RB, Series A, (AGM), 6.00%, 08/15/41 |  |  | 2,400 |  |  |  | 2,509,704 |
Illinois State Toll Highway Authority, RB |  |  |  |  |  |  |  |
Series A, 5.00%, 01/01/38 |  |  | 7,714 |  |  |  | 8,389,106 |
Series A, 5.00%, 01/01/40 |  |  | 3,045 |  |  |  | 3,532,867 |
Series B, 5.00%, 01/01/40 |  |  | 1,170 |  |  |  | 1,364,036 |
Series C, 5.00%, 01/01/38 |  |  | 2,658 |  |  |  | 3,047,915 |
|  |  |  |  |  |  | 18,843,628 |
Kansas — 1.7% |  |  |  |  |  |  |  |
Wyandotte County Unified School District No. 500 Kansas |  |  |  |  |  |  |  |
City, GO, Series A, 5.50%, 09/01/26(a) |  |  | 5,363 |  |  |  | 6,964,387 |
Maryland — 0.9% |
City of Baltimore Maryland, RB, Series A, 5.00%, 07/01/41 |  |  | 3,139 |  |  |  | 3,724,010 |
Massachusetts — 4.8% |
Commonwealth of Massachusetts, GO, Series A, 5.00%, 03/01/46 |  |  | 1,661 |  |  |  | 1,885,035 |
Massachusetts Development Finance Agency, RB, 4.00%, 09/01/49 |  |  | 5,500 |  |  |  | 5,612,585 |
Massachusetts Development Finance Agency, Refunding |  |  |  |  |  |  |  |
RB, 4.00%, 07/01/35 |  |  | 4,500 |  |  |  | 8,108,724 |
Massachusetts School Building Authority, RB, Series B, 5.00%, 11/15/46(h) |  |  | 3,300 |  |  |  | 3,967,755 |
|  |  |  |  |  |  | 19,574,099 |
Michigan — 4.4% |  |  |  |  |  |  |  |
Michigan Finance Authority, RB, Series A, 5.00%, 11/01/44 |  |  | 2,221 |  |  |  | 2,551,083 |
Michigan State Building Authority, Refunding RB, Series I, 5.00%, 10/15/45 |  |  | 960 |  |  |  | 1,142,861 |
Michigan State Housing Development Authority, RB, S/F |  |  |  |  |  |  |  |
Housing, Series C, 3.90%, 12/01/33 |  |  | 12,615 |  |  |  | 14,200,075 |
|  |  |  |  |  |  | 17,894,019 |
Nevada — 1.1% |
Las Vegas Valley Water District, Refunding GO, Series A, 5.00%, 06/01/46 |  |  | 3,900 |  |  |  | 4,668,378 |
New Jersey — 0.8% |
Hudson County Improvement Authority, RB, 5.25%, 05/01/51 |  |  | 920 |  |  |  | 1,096,714 |
New Jersey Transportation Trust Fund Authority, RB, Series B, 5.25%, 06/15/36(h) |  |  | 2,001 |  |  |  | 2,053,371 |
|  |  |  |  |  |  | 3,150,085 |
New York — 11.2% |
City of New York Water & Sewer System, RB, Series CC, 5.00%, 06/15/47 |  |  | 6,240 |  |  |  | 6,970,521 |

Security |  | Par (000) |  |  | Value |
New York (continued) |
Metropolitan Transportation Authority, RB, Sub-Series D-1, 5.25%, 11/15/44 |  | $ | 3,850 |  |  | $ | 4,088,739 |
New York City Transitional Finance Authority Future Tax Secured Revenue, Refunding RB, Series B, 5.00%, 11/01/30 |  |  | 12,500 |  |  |  | 13,688,125 |
New York City Water & Sewer System, Refunding RB |  |  |  |  |  |  |  |
Series DD, 5.00%, 06/15/35 |  |  | 1,845 |  |  |  | 2,134,075 |
Series FF, 5.00%, 06/15/39 |  |  | 8,355 |  |  |  | 9,862,158 |
New York State Urban Development Corp, RB, |  |  |  |  |  |  |  |
Series A-1, 5.00%, 03/15/43 |  |  | 5,720 |  |  |  | 6,256,193 |
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 198th Series, 5.25%, 11/15/56 |  |  | 2,561 |  |  |  | 3,058,700 |
|  |  |  |  |  |  | 46,058,511 |
North Carolina — 1.4% |
Durham Capital Financing Corp, Refunding RB, 4.00%, 06/01/23(a) |  |  | 5,125 |  |  |  | 5,658,051 |
Pennsylvania — 1.7% |
Pennsylvania Turnpike Commission, RB, Series A, 5.50%, 12/01/42 |  |  | 4,997 |  |  |  | 5,985,099 |
Westmoreland County Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/42 |  |  | 1,020 |  |  |  | 1,185,271 |
|  |  |  |  |  |  | 7,170,370 |
Texas — 6.3% |
El Paso Independent School District, GO, (PSF-GTD), 4.00%, 08/15/48 |  |  | 7,001 |  |  |  | 8,379,953 |
Houston Community College System, GO, 4.00%, 02/15/43 |  |  | 7,002 |  |  |  | 7,514,287 |
San Antonio Water System, Refunding RB, Series C, Junior Lien, 5.00%, 05/15/46 |  |  | 3,750 |  |  |  | 4,518,600 |
Tarrant County Cultural Education Facilities Finance Corp., RB, Series A, 5.00%, 11/15/38 |  |  | 719 |  |  |  | 791,773 |
Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Series A, 5.00%, 02/15/41 |  |  | 3,920 |  |  |  | 4,649,002 |
|  |  |  |  |  |  | 25,853,615 |
Virginia — 1.8% |
Hampton Roads Transportation Accountability Commission, RB, Series A, Senior Lien, 5.00%, 07/01/48 |  |  | 1,996 |  |  |  | 2,453,791 |
Virginia Small Business Financing Authority, Refunding RB, Series A, 4.00%, 12/01/49 |  |  | 4,305 |  |  |  | 4,839,337 |
|  |  |  |  |  |  | 7,293,128 |
Washington — 2.9% |
Washington Health Care Facilities Authority, Refunding RB, Series A, 5.00%, 10/01/38 |  |  | 3,210 |  |  |  | 4,119,939 |
Washington State Convention Center Public Facilities District, RB, 5.00%, 07/01/58 |  |  | 7,000 |  |  |  | 7,824,460 |
|  |  |  |  |  |  | 11,944,399 |

42 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Wisconsin — 0.9% |  |  |  |  |  |
Wisconsin Health & Educational Facilities Authority, Refunding RB, Series A, 5.00%, 04/01/42 |  | $ | 3,520 |  |  | $ | 3,793,046 |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 49.4% (Cost: $191,215,914) |  |  |  | 203,344,284 |
Total Long-Term Investments — 161.7% (Cost: $603,312,531) |  |  |  | 664,918,570 |

|  | Shares |  |  |  |
Short-Term Securities |
Money Market Funds — 0.1% |  |  |  |  |  |
BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.01%(i)(j) |  |  | 466,390 |  |  |  | 466,483 |
Total Short-Term Securities — 0.1% (Cost: $466,483) |  |  |  | 466,483 |
Total Investments — 161.8% (Cost: $603,779,014) |  |  |  |  |  |  | 665,385,053 |
Other Assets Less Liabilities — 1.1% |  |  |  |  |  |  | 4,091,984 |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (29.5)% |  |  |  |  |  |  | (121,138,643 | )
VMTP Shares at Liquidation Value — (33.4)% |  |  |  |  |  |  | (137,200,000 | )
Net Assets Applicable to Common Shares — 100.0% |  |  |  |  |  | $ | 411,138,394 |

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

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

(c) | Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

(d) | Zero-coupon bond.

(e) | When-issued security.

(f) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

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

(h) | All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between December 15, 2020 to August 1, 2027, is $9,680,474.

| See Note 4 of the Notes to Financial Statements for details.

(i) | Affiliate of the Trust.

(j) | Annualized 7-day yield as of period end.

Affiliates

Investments in issuers considered to be an affiliate of the Trust during the year ended August 31, 2020, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliated Issuer |  | Value at 08/31/19 |  |  | Purchases at Cost |  |  | Proceeds from Sales |  |  | Net Realized Gain (Loss) |  |  | Change in Unrealized Appreciation (Depreciation) |  |  | Value at 08/31/20 |  |  | Shares Held at 08/31/20 |  |  | Income |  |  | Capital Gain Distributions from Underlying Funds |
BlackRock Liquidity Funds, MuniCash, Institutional Class |  | $ | 972,055 |  |  | $ | — |  |  | $ | (512,047 | )(a) |  | $ | 6,475 |  |  | $ | — |  |  | $ | 466,483 |  |  |  | 466,390 |  |  | $ | 24,799 |  |  | $ | — |

| (a) | Represents net amount purchased (sold). |

Derivative Financial Instruments Categorized by Risk Exposure

For the year ended August 31, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

|  | Commodity Contracts |  |  | Credit Contracts |  |  | Equity Contracts |  |  | Foreign Currency Exchange Contracts |  |  | Interest Rate Contracts |  |  | Other Contracts |  |  | Total |
Net Realized Gain (Loss) from |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Futures contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (3,747,680 | ) |  | $ | — |  |  | $ | (3,747,680 | )
Net Change in Unrealized Appreciation (Depreciation) on |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Futures contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 81,009 |  |  | $ | — |  |  | $ | 81,009 |

SCHEDULE OF INVESTMENTS |  | 43

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Quality Trust (BYM)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts |  |  |
Average notional value of contracts — long |  | $ | — | (a)
Average notional value of contracts — short |  | $ | 19,750,320 |

| (a) | Derivative not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period. |

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

Fair Value Hierarchy as of Period End

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

The following table summarizes the Trust’s investments categorized in the disclosure hierarchy. The breakdown of the Trust’s investments into major categories is disclosed in the Schedule of Investments above.

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-Term Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds |  | $ | — |  |  | $ | 461,574,286 |  |  | $ | — |  |  | $ | 461,574,286 |
Municipal Bonds Transferred to Tender Option Bond Trusts |  |  | — |  |  |  | 203,344,284 |  |  |  | — |  |  |  | 203,344,284 |
Short-Term Securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money Market Funds |  |  | 466,483 |  |  |  | — |  |  |  | — |  |  |  | 466,483 |
|  | $ | 466,483 |  |  | $ | 664,918,570 |  |  | $ | — |  |  | $ | 665,385,053 |

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

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOB Trust Certificates |  | $ | — |  |  | $ | (121,029,335 | ) |  | $ | — |  |  | $ | (121,029,335 | )
VMTP Shares at Liquidation Value |  |  | — |  |  |  | (137,200,000 | ) |  |  | — |  |  |  | (137,200,000 | )
|  | $ | — |  |  | $ | (258,229,335 | ) |  | $ | — |  |  | $ | (258,229,335 | )

See notes to financial statements.

44 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments August 31, 2020 |  | BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Municipal Bonds |  |  |  |  |  |  |  |
Alabama — 2.2% |
County of Jefferson Alabama Sewer Revenue, Refunding RB |  |  |  |  |  |  |  |
Series A, Senior Lien, (AGM), 5.00%, 10/01/44 |  | $ | 540 |  |  | $ | 600,507 |
Series A, Senior Lien, (AGM), 5.25%, 10/01/48 |  |  | 1,320 |  |  |  | 1,474,704 |
Series D, Sub-Lien, 7.00%, 10/01/51 |  |  | 3,220 |  |  |  | 3,797,829 |
Lower Alabama Gas District, RB, Series A, 5.00%, 09/01/46 |  |  | 1,170 |  |  |  | 1,653,491 |
|  |  |  |  |  |  | 7,526,531 |
Arizona — 3.1% |
Industrial Development Authority of the City of Phoenix, RB, Series A, 5.00%, 07/01/46(a) |  |  | 1,825 |  |  |  | 1,894,386 |
Salt Verde Financial Corp., RB |  |  |  |  |  |  |  |
5.00%, 12/01/32 |  |  | 5,635 |  |  |  | 7,467,615 |
5.00%, 12/01/37 |  |  | 1,000 |  |  |  | 1,366,650 |
|  |  |  |  |  |  | 10,728,651 |
Arkansas — 0.5% |
Arkansas Development Finance Authority, RB, AMT, 4.50%, 09/01/49(a) |  |  | 1,920 |  |  |  | 1,931,558 |
California — 5.0% |
California Educational Facilities Authority, RB, Series V-1, 5.00%, 05/01/49 |  |  | 2,315 |  |  |  | 3,767,570 |
California Health Facilities Financing Authority, Refunding RB, Series A, 5.00%, 07/01/33 |  |  | 1,365 |  |  |  | 1,522,152 |
California Municipal Finance Authority, RB, S/F Housing |  |  |  |  |  |  |  |
Series A, 5.25%, 08/15/39 |  |  | 160 |  |  |  | 177,128 |
Series A, 5.25%, 08/15/49 |  |  | 395 |  |  |  | 426,667 |
California Pollution Control Financing Authority, RB, AMT, 5.00%, 11/21/45(a) |  |  | 1,655 |  |  |  | 1,709,731 |
California State Public Works Board, RB, Series I, 5.00%, 11/01/38 |  |  | 825 |  |  |  | 928,529 |
Golden State Tobacco Securitization Corp., Refunding RB |  |  |  |  |  |  |  |
Series A-1, 5.25%, 06/01/47 |  |  | 590 |  |  |  | 606,839 |
Series A-2, 5.00%, 06/01/47 |  |  | 3,195 |  |  |  | 3,273,884 |
San Marcos Unified School District, GO, CAB(b) |  |  |  |  |  |  |  |
Series B, 0.00%, 08/01/33 |  |  | 3,000 |  |  |  | 2,387,220 |
Series B, 0.00%, 08/01/43 |  |  | 2,500 |  |  |  | 1,485,050 |
State of California, GO, 6.00%, 03/01/33 |  |  | 590 |  |  |  | 592,885 |
Stockton Public Financing Authority, RB, Series A, 6.25%, 10/01/23(c) |  |  | 380 |  |  |  | 450,251 |
|  |  |  |  |  |  | 17,327,906 |
Colorado — 1.8% |
Arapahoe County School District No. 6 Littleton, GO, Series A, 5.50%, 12/01/43 |  |  | 1,915 |  |  |  | 2,503,096 |
Colorado Health Facilities Authority, Refunding RB, Series A, 4.00%, 08/01/44 |  |  | 1,945 |  |  |  | 2,152,162 |
State of Colorado, COP, Series O, 4.00%, 03/15/44 |  |  | 1,405 |  |  |  | 1,603,906 |
|  |  |  |  |  |  | 6,259,164 |
Connecticut — 1.3% |
State of Connecticut Special Tax Revenue, RB |  |  |  |  |  |  |  |
Series A, 4.00%, 05/01/36 |  |  | 365 |  |  |  | 427,357 |
Series A, 4.00%, 05/01/39 |  |  | 230 |  |  |  | 266,943 |
State of Connecticut, GO, Series A, 4.00%, 01/15/38 |  |  | 3,435 |  |  |  | 4,010,637 |
|  |  |  |  |  |  | 4,704,937 |

Security |  | Par (000) |  |  | Value |
Delaware — 2.0% |
County of Sussex Delaware, RB, 6.00%, 10/01/40 |  | $ | 1,240 |  |  | $ | 1,254,607 |
Delaware State Economic Development Authority, RB, 5.38%, 10/01/45 |  |  | 4,275 |  |  |  | 4,288,552 |
Delaware Transportation Authority, RB, 5.00%, 06/01/55 |  |  | 1,260 |  |  |  | 1,419,818 |
|  |  |  |  |  |  | 6,962,977 |
District of Columbia — 5.6% |
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, 6.75%, 05/15/40 |  |  | 11,500 |  |  |  | 11,824,185 |
District of Columbia, Refunding RB |  |  |  |  |  |  |  |
5.00%, 04/01/35 |  |  | 465 |  |  |  | 548,286 |
5.00%, 10/01/48 |  |  | 2,525 |  |  |  | 2,946,978 |
Series A, 6.00%, 07/01/23(c) |  |  | 820 |  |  |  | 951,561 |
Metropolitan Washington Airports Authority Dulles Toll Road Revenue, Refunding RB |  |  |  |  |  |  |  |
Series A, 5.00%, 10/01/53 |  |  | 2,195 |  |  |  | 2,295,575 |
Series B, Subordinate, 4.00%, 10/01/49 |  |  | 845 |  |  |  | 921,134 |
|  |  |  |  |  |  | 19,487,719 |
Florida — 4.7% |
Collier County Health Facilities Authority, Refunding RB, Series A, 5.00%, 05/01/45 |  |  | 1,450 |  |  |  | 1,608,848 |
County of Miami-Dade Florida Aviation Revenue, Refunding RB, Series A, 5.38%, 10/01/20(c) |  |  | 1,255 |  |  |  | 1,260,183 |
County of Miami-Dade Florida Water & Sewer System Revenue, RB, (AGM), 5.00%, 10/01/20(c) |  |  | 5,000 |  |  |  | 5,019,100 |
Jacksonville Port Authority, Refunding RB, AMT, 5.00%, 11/01/22(c) |  |  | 1,665 |  |  |  | 1,828,969 |
Mid-Bay Bridge Authority, RB, Series A, 7.25%, 10/01/21(c) |  |  | 3,300 |  |  |  | 3,550,800 |
Stevens Plantation Community Development District RB, SAB, Series A, 7.10%, 05/01/35(d)(e)(f) |  |  | 1,795 |  |  |  | 861,600 |
Volusia County Educational Facility Authority, Refunding RB, 5.00%, 10/15/49 |  |  | 1,930 |  |  |  | 2,340,607 |
|  |  |  |  |  |  | 16,470,107 |
Georgia — 2.2% |
Gainesville & Hall County Hospital Authority, Refunding RB, Series A, (GTD), 5.50%, 08/15/54 |  |  | 555 |  |  |  | 646,625 |
Main Street Natural Gas, Inc., RB |  |  |  |  |  |  |  |
Series A, 5.00%, 05/15/35 |  |  | 540 |  |  |  | 717,828 |
Series A, 5.00%, 05/15/36 |  |  | 540 |  |  |  | 722,164 |
Series A, 5.00%, 05/15/37 |  |  | 595 |  |  |  | 801,780 |
Series A, 5.00%, 05/15/38 |  |  | 325 |  |  |  | 441,064 |
Series A, 5.00%, 05/15/49 |  |  | 1,095 |  |  |  | 1,549,173 |
Municipal Electric Authority of Georgia, RB, 4.00%, 01/01/49 |  |  | 1,720 |  |  |  | 1,914,532 |
Municipal Electric Authority of Georgia, Refunding RB, Series A, 4.00%, 01/01/49 |  |  | 670 |  |  |  | 758,614 |
|  |  |  |  |  |  | 7,551,780 |
Hawaii — 0.4% |
State of Hawaii Harbor System Revenue, RB, Series A, 5.25%, 07/01/30 |  |  | 1,480 |  |  |  | 1,485,683 |
Idaho — 0.3% |
Idaho Health Facilities Authority, RB, Series 2017, 5.00%, 12/01/46 |  |  | 805 |  |  |  | 957,000 |
Illinois — 11.7% |
Chicago Board of Education, GO |  |  |  |  |  |  |  |
Series C, 5.25%, 12/01/35 |  |  | 1,600 |  |  |  | 1,717,424 |
Series D, 5.00%, 12/01/46 |  |  | 2,090 |  |  |  | 2,192,745 |

SCHEDULE OF INVESTMENTS |  | 45

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Illinois (continued) |
Chicago Board of Education, GO (continued) Series H, 5.00%, 12/01/36 |  | $ | 495 |  |  | $ | 544,802 |
Chicago Board of Education, Refunding GO |  |  |  |  |  |  |  |
Series C, 5.00%, 12/01/25 |  |  | 705 |  |  |  | 793,470 |
Series D, 5.00%, 12/01/27 |  |  | 920 |  |  |  | 1,061,156 |
Series F, 5.00%, 12/01/22 |  |  | 675 |  |  |  | 715,014 |
Series G, 5.00%, 12/01/34 |  |  | 495 |  |  |  | 548,203 |
Chicago O’Hare International Airport, RB |  |  |  |  |  |  |  |
Series A, 3rd Lien, 5.75%, 01/01/21(c) |  |  | 4,200 |  |  |  | 4,277,070 |
Series A, 3rd Lien, 5.75%, 01/01/39 |  |  | 800 |  |  |  | 812,000 |
Series C, 3rd Lien, 6.50%, 01/01/21(c) |  |  | 6,430 |  |  |  | 6,564,001 |
Chicago Transit Authority Sales Tax Receipts Fund, RB, 5.25%, 12/01/21(c) |  |  | 1,150 |  |  |  | 1,202,969 |
Cook County Community College District No. 508, GO, 5.50%, 12/01/38 |  |  | 845 |  |  |  | 892,751 |
Illinois State Toll Highway Authority, RB, Series C, 5.00%, 01/01/37 |  |  | 3,005 |  |  |  | 3,472,037 |
Metropolitan Pier & Exposition Authority, RB, Series A, 5.00%, 06/15/57 |  |  | 960 |  |  |  | 1,034,880 |
Metropolitan Pier & Exposition Authority, Refunding RB, 4.00%, 06/15/50 |  |  | 1,475 |  |  |  | 1,501,786 |
Metropolitan Pier & Exposition Authority, Refunding RB, CAB, Series B, (AGM), 0.00%, 06/15/43(b) |  |  | 5,700 |  |  |  | 2,591,277 |
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 06/01/21(c) |  |  | 1,255 |  |  |  | 1,309,429 |
State of Illinois, GO |  |  | 1,640 |  |  |  | 1,722,344 |
5.00%, 02/01/39 |  |  |  |  |  |  |  |
Series A, 5.00%, 04/01/35 |  |  | 2,500 |  |  |  | 2,621,100 |
Series A, 5.00%, 04/01/38 |  |  | 3,885 |  |  |  | 4,050,346 |
University of Illinois, RB, Series A, 5.00%, 04/01/44 |  |  | 1,050 |  |  |  | 1,149,866 |
|  |  |  |  |  |  | 40,774,670 |
Indiana — 4.0% |
City of Valparaiso Indiana, RB |  |  |  |  |  |  |  |
AMT, 6.75%, 01/01/34 |  |  | 845 |  |  |  | 923,534 |
AMT, 7.00%, 01/01/44 |  |  | 3,535 |  |  |  | 3,907,448 |
Indiana Finance Authority, RB |  |  |  |  |  |  |  |
Series A, 1st Lien, 5.25%, 10/01/38 |  |  | 3,510 |  |  |  | 3,679,428 |
Series A, AMT, 5.00%, 07/01/44 |  |  | 485 |  |  |  | 518,353 |
Series A, AMT, 5.00%, 07/01/48 |  |  | 1,610 |  |  |  | 1,719,947 |
Series A, AMT, 5.25%, 01/01/51 |  |  | 435 |  |  |  | 467,012 |
Indiana Finance Authority, Refunding RB, 4.75%, 03/01/32 |  |  | 1,180 |  |  |  | 1,213,064 |
Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40 |  |  | 1,380 |  |  |  | 1,508,933 |
|  |  |  |  |  |  | 13,937,719 |
Iowa — 1.7% |
Iowa Finance Authority, Refunding RB |  |  |  |  |  |  |  |
5.25%, 12/01/25 |  |  | 500 |  |  |  | 523,550 |
5.88%, 12/01/26(a) |  |  | 445 |  |  |  | 460,450 |
Series B, 5.25%, 12/01/50(g) |  |  | 3,060 |  |  |  | 3,213,673 |
Iowa Tobacco Settlement Authority, Refunding RB, Series C, 5.63%, 06/01/46 |  |  | 1,610 |  |  |  | 1,611,755 |
|  |  |  |  |  |  | 5,809,428 |

Security |  | Par (000) |  |  | Value |
Kentucky — 0.7% |
Kentucky Economic Development Finance Authority, RB, Series A, 5.25%, 01/01/23(c) |  | $ | 1,060 |  |  | $ | 1,183,236 |
Kentucky Public Transportation Infrastructure Authority, RB, Convertible CAB, Series C, 6.75%, 07/01/43(h) . |  |  | 1,280 |  |  |  | 1,243,251 |
|  |  |  |  |  |  | 2,426,487 |
Louisiana — 2.6% |
Louisiana Local Government Environmental Facilities & Community Development Auth, RB, Series A-1, 6.50%, 11/01/35 |  |  | 3,650 |  |  |  | 3,678,142 |
Tobacco Settlement Financing Corp., Refunding RB |  |  |  |  |  |  |  |
Series A, 5.50%, 05/15/30 |  |  | 875 |  |  |  | 876,601 |
Series A, 5.25%, 05/15/31 |  |  | 935 |  |  |  | 956,533 |
Series A, 5.25%, 05/15/32 |  |  | 1,195 |  |  |  | 1,257,427 |
Series A, 5.25%, 05/15/33 |  |  | 1,300 |  |  |  | 1,366,781 |
Series A, 5.25%, 05/15/35 |  |  | 795 |  |  |  | 850,610 |
|  |  |  |  |  |  | 8,986,094 |
Maryland — 1.0% |
Maryland Economic Development Corp., Refunding RB, 5.75%, 09/01/25 |  |  | 670 |  |  |  | 671,253 |
Maryland Health & Higher Educational Facilities Authority, RB, Series 2017, 5.00%, 12/01/46 |  |  | 455 |  |  |  | 538,633 |
Maryland Health & Higher Educational Facilities Authority, Refunding RB, 6.25%, 01/01/21(c) |  |  | 2,400 |  |  |  | 2,448,048 |
|  |  |  |  |  |  | 3,657,934 |
Michigan — 2.9% |
City of Detroit Michigan Sewage Disposal System Revenue, Refunding RB, Series A, Senior Lien, 5.25%, 07/01/22(c) |  |  | 4,825 |  |  |  | 5,269,624 |
Michigan Finance Authority, RB, Series C-1, Senior Lien, 5.00%, 07/01/22(c) |  |  | 940 |  |  |  | 1,022,485 |
Michigan Finance Authority, Refunding RB, Series A, 4.00%, 12/01/49 |  |  | 895 |  |  |  | 1,018,053 |
Michigan State University, Refunding RB, Series B, 5.00%, 02/15/48 |  |  | 1,100 |  |  |  | 1,360,260 |
Michigan Strategic Fund, RB, AMT, 5.00%, 06/30/48 |  |  | 1,165 |  |  |  | 1,293,511 |
|  |  |  |  |  |  | 9,963,933 |
Minnesota — 1.1% |
Duluth Economic Development Authority, Refunding RB |  |  |  |  |  |  |  |
Series A, 4.25%, 02/15/48 |  |  | 1,115 |  |  |  | 1,219,074 |
Series A, 5.25%, 02/15/53 |  |  | 2,230 |  |  |  | 2,616,794 |
|  |  |  |  |  |  | 3,835,868 |
Missouri — 0.7% |
370/Missouri Bottom Road/Taussig Road Transportation Development District, RB, 7.20%, 05/01/33(d)(f) |  |  | 6,000 |  |  |  | 2,130,000 |
Health & Educational Facilities Authority of the State of Missouri, Refunding RB, 5.50%, 05/01/43 |  |  | 265 |  |  |  | 282,538 |
|  |  |  |  |  |  | 2,412,538 |
Nebraska — 0.8% |
Central Plains Energy Project, RB |  |  |  |  |  |  |  |
5.25%, 09/01/37 |  |  | 895 |  |  |  | 977,412 |
5.00%, 09/01/42 |  |  | 1,570 |  |  |  | 1,706,841 |
|  |  |  |  |  |  | 2,684,253 |

46 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
New Hampshire(a) — 0.8% |
New Hampshire Business Finance Authority, Refunding RB |  |  |  |  |  |  |  |
Series B, 4.63%, 11/01/42 |  | $ | 1,860 |  |  | $ | 1,908,286 |
Series C, AMT, 4.88%, 11/01/42 |  |  | 975 |  |  |  | 1,006,804 |
|  |  |  |  |  |  | 2,915,090 |
New Jersey — 14.7% |
Casino Reinvestment Development Authority, Inc., Refunding RB |  |  |  |  |  |  |  |
5.25%, 11/01/39 |  |  | 1,805 |  |  |  | 1,855,179 |
5.25%, 11/01/44 |  |  | 1,640 |  |  |  | 1,674,850 |
New Jersey Economic Development Authority, RB |  |  |  |  |  |  |  |
4.00%, 11/01/38 |  |  | 560 |  |  |  | 603,702 |
4.00%, 11/01/39 |  |  | 450 |  |  |  | 483,660 |
5.00%, 06/15/49 |  |  | 2,535 |  |  |  | 2,929,953 |
Series EEE, 5.00%, 06/15/48 |  |  | 4,020 |  |  |  | 4,588,750 |
AMT, 5.13%, 09/15/23 |  |  | 2,130 |  |  |  | 2,169,895 |
New Jersey Economic Development Authority, Refunding RB, AMT, 5.00%, 10/01/47 |  |  | 1,570 |  |  |  | 1,689,571 |
New Jersey Economic Development Authority, Refunding SAB, 6.50%, 04/01/28 |  |  | 7,475 |  |  |  | 8,246,345 |
New Jersey Transportation Trust Fund Authority, RB |  |  |  |  |  |  |  |
Series AA, 5.00%, 06/15/44 |  |  | 2,085 |  |  |  | 2,221,330 |
Series B, 5.25%, 06/15/36 |  |  | 2,690 |  |  |  | 2,760,720 |
Series BB, 4.00%, 06/15/50 |  |  | 1,645 |  |  |  | 1,737,350 |
Series BB, 5.00%, 06/15/50 |  |  | 5,395 |  |  |  | 6,156,450 |
New Jersey Turnpike Authority, RB |  |  |  |  |  |  |  |
Series A, 5.00%, 01/01/43 |  |  | 770 |  |  |  | 821,013 |
Series E, 5.00%, 01/01/45 |  |  | 2,810 |  |  |  | 3,157,176 |
Rutgers The State University of New Jersey, Refunding RB, Series L, 5.00%, 05/01/23(c) |  |  | 570 |  |  |  | 642,242 |
Tobacco Settlement Financing Corp., Refunding RB |  |  |  |  |  |  |  |
Series A, 5.25%, 06/01/46 |  |  | 580 |  |  |  | 683,240 |
Sub-Series B, 5.00%, 06/01/46 |  |  | 7,830 |  |  |  | 8,857,688 |
|  |  |  |  |  |  | 51,279,114 |
New York — 12.0% |
Metropolitan Transportation Authority, RB |  |  |  |  |  |  |  |
Series B, 5.25%, 11/15/38 |  |  | 2,555 |  |  |  | 2,687,400 |
Series B, 5.25%, 11/15/39 |  |  | 910 |  |  |  | 957,629 |
Metropolitan Transportation Authority, Refunding RB |  |  |  |  |  |  |  |
Series C-1, 4.75%, 11/15/45 |  |  | 1,760 |  |  |  | 1,908,562 |
Series C-1, 5.00%, 11/15/50 |  |  | 575 |  |  |  | 637,526 |
Series C-1, 5.25%, 11/15/55 |  |  | 845 |  |  |  | 955,695 |
Monroe County Industrial Development Corp., Refunding RB, Series A, 4.00%, 07/01/50 |  |  | 1,175 |  |  |  | 1,357,231 |
New York City Housing Development Corp., RB, M/F Housing, Series A, 3.00%, 11/01/55 |  |  | 1,170 |  |  |  | 1,203,895 |
New York City Transitional Finance Authority Future Tax Secured Revenue, RB |  |  |  |  |  |  |  |
Series C, 4.00%, 05/01/45 |  |  | 1,200 |  |  |  | 1,393,152 |
Sub-Series C-1, 4.00%, 05/01/40 |  |  | 480 |  |  |  | 564,677 |
Sub-Series E-1, 5.00%, 02/01/42 |  |  | 2,680 |  |  |  | 2,827,507 |
New York Counties Tobacco Trust IV, Refunding RB, Series A, 6.25%, 06/01/41(a) |  |  | 2,000 |  |  |  | 2,006,980 |
New York Liberty Development Corp., Refunding RB(a) |  |  |  |  |  |  |  |
Class 1, 5.00%, 11/15/44 |  |  | 4,320 |  |  |  | 4,523,558 |
Class 2, 5.15%, 11/15/34 |  |  | 365 |  |  |  | 384,279 |
Class 2, 5.38%, 11/15/40 |  |  | 910 |  |  |  | 968,104 |

Security |  | Par (000) |  |  | Value |
New York (continued) |
New York State Environmental Facilities Corp., RB, Series B, 5.00%, 06/15/48 |  | $ | 1,945 |  |  | $ | 2,414,231 |
New York State Urban Development Corp., RB |  |  |  |  |  |  |  |
Series A, 4.00%, 03/15/49 |  |  | 8,750 |  |  |  | 10,167,237 |
Series A, 3.00%, 03/15/50 |  |  | 1,420 |  |  |  | 1,491,923 |
Port Authority of New York & New Jersey, RB |  |  |  |  |  |  |  |
Series 8, 6.00%, 12/01/36 |  |  | 1,410 |  |  |  | 1,426,286 |
Series 8, 6.00%, 12/01/42 |  |  | 1,635 |  |  |  | 1,652,380 |
Triborough Bridge & Tunnel Authority, RB |  |  |  |  |  |  |  |
Series A, 4.00%, 11/15/54 |  |  | 290 |  |  |  | 332,981 |
Series A, 5.00%, 11/15/54 |  |  | 935 |  |  |  | 1,174,491 |
Westchester County Healthcare Corp., RB, Series A, Senior Lien, 5.00%, 11/01/44 |  |  | 775 |  |  |  | 852,418 |
|  |  |  |  |  |  | 41,888,142 |
North Carolina — 0.7% |
North Carolina Capital Facilities Finance Agency, Refunding RB, Series B, 4.63%, 11/01/40 |  |  | 1,000 |  |  |  | 1,006,250 |
North Carolina Medical Care Commission, Refunding RB, Series A, 7.75%, 03/01/21(c) |  |  | 625 |  |  |  | 648,606 |
University of North Carolina at Chapel Hill, RB, 5.00%, 02/01/49 |  |  | 590 |  |  |  | 919,775 |
|  |  |  |  |  |  | 2,574,631 |
North Dakota — 0.4% |
County of Cass North Dakota, Refunding RB, Series B, 5.25%, 02/15/58 |  |  | 1,035 |  |  |  | 1,238,802 |
Ohio — 3.3% |
Buckeye Tobacco Settlement Financing Authority, Refunding RB |  |  |  |  |  |  |  |
Series A-2, Class 1, 4.00%, 06/01/37 |  |  | 315 |  |  |  | 368,024 |
Series A-2, Class 1, 4.00%, 06/01/38 |  |  | 315 |  |  |  | 367,095 |
Series A-2, Class 1, 4.00%, 06/01/39 |  |  | 315 |  |  |  | 364,398 |
Series A-2, Class 1, 4.00%, 06/01/48 |  |  | 825 |  |  |  | 914,191 |
Series B-2, Class 2, 5.00%, 06/01/55 |  |  | 3,640 |  |  |  | 3,990,932 |
County of Franklin Ohio, RB |  |  |  |  |  |  |  |
Series 2017, 5.00%, 12/01/46 |  |  | 435 |  |  |  | 509,181 |
Series A, 6.13%, 07/01/22(c) |  |  | 40 |  |  |  | 44,329 |
Series A, 6.13%, 07/01/40 |  |  | 670 |  |  |  | 704,833 |
Series A, 4.00%, 12/01/49 |  |  | 555 |  |  |  | 625,513 |
County of Hamilton Ohio, Refunding RB |  |  |  |  |  |  |  |
4.00%, 08/15/50 |  |  | 660 |  |  |  | 744,295 |
Series A, 3.75%, 08/15/50 |  |  | 1,155 |  |  |  | 1,261,976 |
Ohio Air Quality Development Authority, RB, AMT, 5.00%, 07/01/49(a) |  |  | 810 |  |  |  | 822,272 |
State of Ohio, RB, AMT, 5.00%, 06/30/53 |  |  | 870 |  |  |  | 955,825 |
|  |  |  |  |  |  | 11,672,864 |
Oklahoma — 1.8% |
Oklahoma Development Finance Authority, RB, Series B, 5.25%, 08/15/48 |  |  | 1,275 |  |  |  | 1,484,482 |
Oklahoma Turnpike Authority, RB |  |  |  |  |  |  |  |
Series A, 4.00%, 01/01/48 |  |  | 2,230 |  |  |  | 2,489,126 |
Series C, 4.00%, 01/01/42 |  |  | 2,120 |  |  |  | 2,386,251 |
|  |  |  |  |  |  | 6,359,859 |
Pennsylvania — 3.8% |
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A, 5.00%, 05/01/42 |  |  | 2,500 |  |  |  | 2,582,475 |

SCHEDULE OF INVESTMENTS |  | 47

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Pennsylvania (continued) |
Hospitals & Higher Education Facilities Authority of Philadelphia, RB, Series A, 5.63%, 07/01/42 |  | $ | 685 |  |  | $ | 722,915 |
Montgomery County Higher Education and Health Authority, Refunding RB |  |  |  |  |  |  |  |
Series A, 5.00%, 09/01/43 |  |  | 1,350 |  |  |  | 1,588,558 |
Series A, 4.00%, 09/01/49 |  |  | 615 |  |  |  | 670,092 |
Pennsylvania Economic Development Financing Authority, RB, AMT, 5.00%, 06/30/42 |  |  | 3,030 |  |  |  | 3,383,601 |
Pennsylvania Higher Educational Facilities Authority, RB, 4.00%, 08/15/49 |  |  | 2,545 |  |  |  | 2,895,676 |
Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44 |  |  | 1,190 |  |  |  | 1,350,364 |
|  |  |  |  |  |  | 13,193,681 |
Puerto Rico — 6.5% |
Children’s Trust Fund, Refunding RB |  |  |  |  |  |  |  |
Asset-Backed Bonds, 5.50%, 05/15/39 |  |  | 715 |  |  |  | 715,586 |
Asset-Backed Bonds, 5.63%, 05/15/43 |  |  | 740 |  |  |  | 740,533 |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB |  |  |  |  |  |  |  |
Series A, Senior Lien, 5.00%, 07/01/33 |  |  | 2,690 |  |  |  | 2,759,644 |
Series A, Senior Lien, 5.13%, 07/01/37 |  |  | 770 |  |  |  | 790,659 |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB |  |  |  |  |  |  |  |
Series A, Senior Lien, 6.00%, 07/01/38 |  |  | 795 |  |  |  | 798,037 |
Series A, Senior Lien, 6.00%, 07/01/44 |  |  | 1,445 |  |  |  | 1,450,549 |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB |  |  |  |  |  |  |  |
Series A-1, Restructured, 4.75%, 07/01/53 |  |  | 2,177 |  |  |  | 2,278,709 |
Series A-1, Restructured, 5.00%, 07/01/58 |  |  | 7,707 |  |  |  | 8,205,335 |
Series A-2, Restructured, 4.33%, 07/01/40 |  |  | 1,052 |  |  |  | 1,095,079 |
Series A-2, Restructured, 4.78%, 07/01/58 |  |  | 1,812 |  |  |  | 1,907,837 |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(b) |  |  | 6,135 |  |  |  | 1,750,745 |
|  |  |  |  |  |  | 22,492,713 |
Rhode Island — 2.4% |
Tobacco Settlement Financing Corp., Refunding RB |  |  |  |  |  |  |  |
Series A, 5.00%, 06/01/35 |  |  | 1,690 |  |  |  | 1,845,615 |
Series B, 4.50%, 06/01/45 |  |  | 2,850 |  |  |  | 2,983,893 |
Series B, 5.00%, 06/01/50 |  |  | 3,175 |  |  |  | 3,401,822 |
|  |  |  |  |  |  | 8,231,330 |
South Carolina — 3.4% |
South Carolina Jobs-Economic Development Authority, Refunding RB, Series A, 5.00%, 05/01/48 |  |  | 3,340 |  |  |  | 3,917,653 |
South Carolina Public Service Authority, RB, Series A, 5.50%, 12/01/54 |  |  | 3,575 |  |  |  | 4,047,007 |
South Carolina Public Service Authority, Refunding RB |  |  |  |  |  |  |  |
Series A, 5.00%, 12/01/50 |  |  | 1,545 |  |  |  | 1,746,638 |
Series E, 5.25%, 12/01/55 |  |  | 1,840 |  |  |  | 2,137,418 |
|  |  |  |  |  |  | 11,848,716 |
Tennessee — 1.1% |
Chattanooga Health Educational & Housing Facility Board, RB, Series A, 5.25%, 01/01/23(c) |  |  | 1,470 |  |  |  | 1,640,829 |
Chattanooga Health Educational & Housing Facility Board, Refunding RB, Series A, 4.00%, 08/01/44 |  |  | 170 |  |  |  | 188,159 |

Security |  | Par (000) |  |  | Value |
Tennessee (continued) |  |  |  |  |  |  |  |
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Building, RB, Series A, 5.00%, 07/01/40 |  | $ | 740 |  |  | $ | 849,372 |
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Building, Refunding RB, Series A, 5.25%, 10/01/58 |  |  | 1,055 |  |  |  | 1,125,253 |
|  |  |  |  |  |  | 3,803,613 |
Texas — 8.9% |  |  |  |  |  |  |  |
Central Texas Regional Mobility Authority, Refunding RB(c) |  |  |  |  |  |  |  |
Senior Lien, 6.25%, 01/01/21 |  |  | 2,350 |  |  |  | 2,396,835 |
Sub-Lien, 5.00%, 01/01/23 |  |  | 390 |  |  |  | 422,850 |
City of Austin Texas Airport System Revenue, RB, AMT, 5.00%, 11/15/39 |  |  | 665 |  |  |  | 749,156 |
City of Houston Texas Airport System Revenue, Refunding RB, AMT, 5.00%, 07/01/29 |  |  | 460 |  |  |  | 471,150 |
City of San Antonio Texas Electric & Gas Systems Revenue, Refunding RB, Series A, 5.00%, 02/01/48 |  |  | 1,260 |  |  |  | 1,581,590 |
Harris County Cultural Education Facilities Finance Corp., RB, Series B, 7.00%, 01/01/23(c) |  |  | 485 |  |  |  | 560,985 |
Harris County-Houston Sports Authority, Refunding RB(b) |  |  |  |  |  |  |  |
Series A, 3rd Lien, (NPFGC), 0.00%, 11/15/24(c) |  |  | 2,300 |  |  |  | 1,106,438 |
Series A, 3rd Lien, (NPFGC), 0.00%, 11/15/36 |  |  | 13,075 |  |  |  | 5,631,141 |
Midland County Fresh Water Supply District No. 1, RB, Series A, 0.00%, 09/15/37(b) |  |  | 6,055 |  |  |  | 3,262,131 |
New Hope Cultural Education Facilities Finance Corp., RB, Series A, 5.13%, 08/15/47(a) |  |  | 1,085 |  |  |  | 1,090,696 |
San Antonio Water System, Refunding RB, Series A, Junior Lien, 5.00%, 05/15/48 |  |  | 2,720 |  |  |  | 3,344,566 |
Tarrant County Cultural Education Facilities Finance Corp., RB, Series B, 5.00%, 07/01/48 |  |  | 4,955 |  |  |  | 5,966,861 |
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, 7.00%, 06/30/40 |  |  | 3,000 |  |  |  | 3,013,680 |
Texas Transportation Commission, RB, Series A, 5.00%, 08/01/57 |  |  | 1,270 |  |  |  | 1,476,807 |
|  |  |  |  |  |  | 31,074,886 |
Utah — 1.1% |
County of Utah Utah, RB |  |  |  |  |  |  |  |
Series A, 4.00%, 05/15/43 |  |  | 240 |  |  |  | 281,006 |
Series A, 3.00%, 05/15/50 |  |  | 1,085 |  |  |  | 1,133,554 |
Salt Lake City Corp. Airport Revenue, RB |  |  |  |  |  |  |  |
Series A, AMT, 5.00%, 07/01/47 |  |  | 995 |  |  |  | 1,156,499 |
Series A, AMT, 5.00%, 07/01/48 |  |  | 955 |  |  |  | 1,130,777 |
|  |  |  |  |  |  | 3,701,836 |
Vermont — 1.3% |
Vermont Educational & Health Buildings Financing Agency, Refunding RB |  |  |  |  |  |  |  |
5.00%, 11/01/49 |  |  | 1,915 |  |  |  | 2,414,471 |
4.00%, 11/01/50 |  |  | 1,725 |  |  |  | 2,001,293 |
|  |  |  |  |  |  | 4,415,764 |
Virginia — 1.5% |
Front Royal & Warren County Industrial Development Authority, RB, 4.00%, 01/01/50 |  |  | 865 |  |  |  | 946,700 |

48 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Virginia (continued) |
Virginia Small Business Financing Authority, RB |  |  |  |  |  |  |  |
Senior Lien, AMT, 5.25%, 01/01/32 |  | $ | 1,755 |  |  | $ | 1,879,096 |
Senior Lien, AMT, 6.00%, 01/01/37 |  |  | 2,120 |  |  |  | 2,286,653 |
|  |  |  |  |  |  | 5,112,449 |
Washington — 4.0% |
City of Bellingham Washington Water & Sewer Revenue, RB, 5.00%, 08/01/36 |  |  | 5,050 |  |  |  | 5,250,889 |
Grant County Public Utility District No. 2 Priest Rapids Hydroelectric Project, Refunding RB, Series A, 5.00%, 01/01/26(c) |  |  | 2,335 |  |  |  | 2,906,094 |
Port of Seattle Washington, RB |  |  |  |  |  |  |  |
Series A, AMT, 5.00%, 05/01/43 |  |  | 1,615 |  |  |  | 1,865,212 |
Series C, AMT, 5.00%, 04/01/40 |  |  | 815 |  |  |  | 910,420 |
Washington Health Care Facilities Authority, RB, Series A, 5.75%, 01/01/45 |  |  | 2,445 |  |  |  | 2,741,187 |
Washington Health Care Facilities Authority, Refunding RB, Series A, 4.00%, 08/01/44 |  |  | 375 |  |  |  | 409,118 |
|  |  |  |  |  |  | 14,082,920 |
Total Municipal Bonds — 124.0% Cost: $405,133,465) |  |  |  | 431,769,347 |
Municipal Bonds Transferred to Tender Option Bond Trusts(i) |
California — 2.2% |
Bay Area Toll Authority, Refunding RB, 4.00%, 04/01/42(j) |  |  | 3,358 |  |  |  | 3,795,779 |
Sacramento Area Flood Control Agency, Refunding SAB, 5.00%, 10/01/47 |  |  | 3,345 |  |  |  | 4,020,588 |
|  |  |  |  |  |  | 7,816,367 |
Colorado — 0.9% |
City & County of Denver Colorado Airport System Revenue, Refunding RB, Series A, AMT, 5.25%, 12/01/48(j) |  |  | 2,463 |  |  |  | 2,987,409 |
District of Columbia — 0.6% |
Metropolitan Washington Airports Authority Dulles Toll Road Revenue, Refunding RB, Series B, Subordinate, (AGM), 4.00%, 10/01/53 |  |  | 1,978 |  |  |  | 2,184,461 |
Georgia — 0.9% |  |  |  |  |  |  |  |
Dalton Whitfield County Joint Development Authority, RB, 4.00%, 08/15/48 |  |  | 1,321 |  |  |  | 1,477,701 |
Georgia Housing & Finance Authority, Refunding RB, Series A, 3.60%, 12/01/44 |  |  | 1,582 |  |  |  | 1,712,393 |
|  |  |  |  |  |  | 3,190,094 |
Illinois — 0.5% |
Illinois Finance Authority, Refunding RB |  |  |  |  |  |  |  |
Series C, 4.00%, 02/15/27(c) |  |  | 4 |  |  |  | 4,285 |
Series C, 4.00%, 02/15/41 |  |  | 1,540 |  |  |  | 1,708,132 |
|  |  |  |  |  |  | 1,712,417 |
Massachusetts — 3.1% |
Commonwealth of Massachusetts Transportation Fund Revenue, RB, Series A, 4.00%, 06/01/45 |  |  | 2,238 |  |  |  | 2,473,037 |

Security |  | Par (000) |  |  | Value |
Massachusetts (continued) |
Massachusetts Development Finance Agency, Refunding RB, 5.00%, 07/01/47 |  | $ | 4,979 |  |  | $ | 5,825,076 |
Massachusetts School Building Authority, RB, Series B, 5.00%, 10/15/21(c) |  |  | 2,461 |  |  |  | 2,593,750 |
|  |  |  |  |  |  | 10,891,863 |
New York — 15.9% |
Hudson Yards Infrastructure Corp., RB (j) |  |  |  |  |  |  |  |
5.75%, 02/15/21(c) |  |  | 1,083 |  |  |  | 1,108,752 |
5.75%, 02/15/47 |  |  | 666 |  |  |  | 682,070 |
New York City Water & Sewer System, Refunding RB, Series HH, 5.00%, 06/15/31(j) |  |  | 9,150 |  |  |  | 9,483,792 |
New York Liberty Development Corp., RB, 5.25%, 12/15/43 |  |  | 11,670 |  |  |  | 12,264,478 |
New York Liberty Development Corp., Refunding RB, 5.75%, 11/15/51(j) |  |  | 7,040 |  |  |  | 7,426,830 |
New York Power Authority, Refunding RB, Series A, 4.00%, 11/15/60 |  |  | 1,459 |  |  |  | 1,691,207 |
New York State Dormitory Authority, Refunding RB, Series D, 4.00%, 02/15/47 |  |  | 6,576 |  |  |  | 7,584,856 |
New York State Thruway Authority, Refunding RB, Series B, Subordinate, 4.00%, 01/01/50 |  |  | 3,164 |  |  |  | 3,591,586 |
New York State Urban Development Corp., RB, Series A, 4.00%, 03/15/46 |  |  | 7,217 |  |  |  | 8,171,226 |
Port Authority of New York & New Jersey, Refunding RB, 194th Series, 5.25%, 10/15/55 |  |  | 2,790 |  |  |  | 3,259,613 |
|  |  |  |  |  |  | 55,264,410 |
North Carolina — 1.0% |
North Carolina Capital Facilities Finance Agency, Refunding RB, Series B, 5.00%, 10/01/55(c) |  |  | 2,740 |  |  |  | 3,381,872 |
Pennsylvania — 0.9% |
Pennsylvania Turnpike Commission, RB, Series A, 5.50%, 12/01/42 |  |  | 2,521 |  |  |  | 3,019,509 |
Rhode Island — 0.5% |
Narragansett Bay Commission, Refunding RB, Series A, 4.00%, 09/01/22(c) |  |  | 1,695 |  |  |  | 1,823,566 |
Texas — 6.2% |
Board of Regents of the University of Texas System, Refunding RB, Series B, 5.00%, 08/15/43 |  |  | 3,346 |  |  |  | 3,609,473 |
City of San Antonio Texas Electric & Gas Systems Revenue, RB, Junior Lien, 5.00%, 02/01/43 |  |  | 2,660 |  |  |  | 2,915,865 |
Lower Colorado River Authority, Refunding RB, 4.00%, 05/15/43 |  |  | 2,241 |  |  |  | 2,327,145 |
Metropolitan Transit Authority of Harris County Sales & Use Tax Revenue, Refunding RB, Series A, 5.00%, 11/01/21(c) |  |  | 3,720 |  |  |  | 3,927,688 |
Texas Water Development Board, RB, Series A, 4.00%, 10/15/49 |  |  | 7,600 |  |  |  | 8,913,584 |
|  |  |  |  |  |  | 21,693,755 |
Virginia — 1.7% |
Virginia Small Business Financing Authority, Refunding RB, Series A, 4.00%, 12/01/49 |  |  | 5,320 |  |  |  | 5,980,319 |

SCHEDULE OF INVESTMENTS |  | 49

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Wisconsin — 1.0% |
Wisconsin Health & Educational Facilities Authority, Refunding RB, 4.00%, 12/01/46 |  | $ | 3,072 |  |  | $ | 3,394,431 |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 35.4% (Cost: $115,984,422) |  |  |  | 123,340,473 |
Total Long-Term Investments — 159.4% (Cost: $521,117,887) |  |  |  | 555,109,820 |
|  | Shares |  |  |  |
Short-Term Securities |
Money Market Funds — 4.1% |
BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.01%(k)(l) |  |  | 14,393,796 |  |  |  | 14,396,675 |
Total Short-Term Securities — 4.1% (Cost: $14,396,244) |  |  |  | 14,396,675 |
Total Investments — 163.5% (Cost: $535,514,131) |  |  |  | 569,506,495 |
Other Assets Less Liabilities — 1.1% |  |  |  | 3,942,250 |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (21.2)% |  |  |  | (73,820,867 | )
VMTP Shares at Liquidation Value — (43.4)% |  |  |  | (151,300,000 | )
Net Assets Applicable to Common Shares — 100.0% |  |  | $ | 348,327,878 |

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

(b) | Zero-coupon bond.

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

(d) | Issuer filed for bankruptcy and/or is in default.

(e) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(f) | Non-income producing security.

(g) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

(h) | Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

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

(j) | All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between December 15, 2020 to February 15, 2047, is $15,285,306. See Note 4 of the Notes to Financial Statements for details.

(k) | Affiliate of the Trust.

(l) | Annualized 7-day yield as of period end.

Affiliates

Investments in issuers considered to be an affiliate of the Trust during the year ended August 31, 2020, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliated Issuer |  | Value at 08/31/19 |  |  | Purchases at Cost |  |  | Proceeds from Sales |  |  | Net Realized Gain (Loss) |  |  | Change in Unrealized Appreciation (Depreciation) |  |  | Value at 08/31/20 |  |  | Shares Held at 08/31/20 |  |  | Income |  |  | Capital Gain Distributions from Underlying Funds |
BlackRock Liquidity Funds, MuniCash, Institutional Class |  | $ | 7,111,649 |  |  | $ | 7,283,422 | (a) |  | $ | — |  |  | $ | 639 |  |  | $ | 965 |  |  | $ | 14,396,675 |  |  |  | 14,393,796 |  |  | $ | 49,440 |  |  | $ | — |

| (a) | Represents net amount purchased (sold). |

50 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock Municipal Income Trust II (BLE)

Derivative Financial Instruments Categorized by Risk Exposure

For the year ended August 31, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

|  | Commodity Contracts |  |  | Credit Contracts |  |  | Equity Contracts |  |  | Foreign Currency Exchange Contracts |  |  | Interest Rate Contracts |  |  | Other Contracts |  |  | Total |
Net Realized Gain (Loss) from |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Futures contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (2,426,704 | ) |  | $ | — |  |  | $ | (2,426,704 | )
Net Change in Unrealized Appreciation (Depreciation) on |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Futures contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 50,091 |  |  | $ | — |  |  | $ | 50,091 |

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts |  |  |  |  |  |  |  |
Average notional value of contracts — long |  |  |  |  |  | $ | — | (a)
Average notional value of contracts — short |  |  |  |  |  | $ | 10,988,965 |

| (a) | Derivative not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period. |

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

Fair Value Hierarchy as of Period End

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

The following table summarizes the Trust’s investments categorized in the disclosure hierarchy. The breakdown of the Trust’s investments into major categories is disclosed in the Schedule of Investments above.

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-Term Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds |  | $ | — |  |  | $ | 430,907,747 |  |  | $ | 861,600 |  |  | $ | 431,769,347 |
Municipal Bonds Transferred to Tender Option Bond Trusts |  |  | — |  |  |  | 123,340,473 |  |  |  | — |  |  |  | 123,340,473 |
Short-Term Securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money Market Funds |  |  | 14,396,675 |  |  |  | — |  |  |  | — |  |  |  | 14,396,675 |
|  | $ | 14,396,675 |  |  | $ | 554,248,220 |  |  | $ | 861,600 |  |  | $ | 569,506,495 |

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

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOB Trust Certificates |  | $ | — |  |  | $ | (73,763,358 | ) |  | $ | — |  |  | $ | (73,763,358 | )
VMTP Shares at Liquidation Value |  |  | — |  |  |  | (151,300,000 | ) |  |  | — |  |  |  | (151,300,000 | )
|  | $ | — |  |  | $ | (225,063,358 | ) |  | $ | — |  |  | $ | (225,063,358 | )

See notes to financial statements.

SCHEDULE OF INVESTMENTS |  | 51

Schedule of Investments August 31, 2020 |  | BlackRock MuniHoldings Investment Quality Fund (MFL) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Municipal Bonds |  |  |  |  |  |  |  |
Alabama — 0.3% |  |  |  |  |  |
Selma Industrial Development Board, RB, Series A, 5.38%, 12/01/35 |  | $ | 1,745 |  |  | $ | 1,834,466 |
Arizona — 5.4% |  |  |  |  |  |
Arizona Industrial Development Authority, RB (a) 4.38%, 07/01/39 |  |  | 1,015 |  |  |  | 1,045,836 |
Series A, 5.00%, 07/01/39 |  |  | 855 |  |  |  | 886,558 |
Series A, 5.00%, 07/01/49 |  |  | 965 |  |  |  | 990,370 |
Series A, 5.00%, 07/01/54 |  |  | 745 |  |  |  | 762,254 |
Industrial Development Authority of the County of Pima, RB, 5.00%, 06/15/47(a) |  |  | 1,480 |  |  |  | 1,431,782 |
Industrial Development Authority of the County of Pima, Refunding RB, 5.00%, 06/15/52(a) |  |  | 825 |  |  |  | 787,388 |
Maricopa County Industrial Development Authority, Refunding RB |  |  |  |  |  |  |  |
5.00%, 07/01/39(a) |  |  | 360 |  |  |  | 385,027 |
5.00%, 07/01/54(a) |  |  | 820 |  |  |  | 859,229 |
Series A, 5.00%, 01/01/38 |  |  | 3,000 |  |  |  | 3,572,640 |
Salt River Project Agricultural Improvement & Power District, RB, 4.00%, 01/01/41 |  |  | 12,000 |  |  |  | 14,464,560 |
Salt River Project Agricultural Improvement & Power District, Refunding RB, 5.00%, 01/01/37 |  |  | 2,000 |  |  |  | 2,530,120 |
University of Arizona, Refunding RB, Series A, 5.00%, 06/01/40 |  |  | 2,300 |  |  |  | 2,682,329 |
|  |  |  |  |  |  | 30,398,093 |
Arkansas — 0.4% |  |  |  |  |  |
Arkansas Development Finance Authority, RB, AMT, 4.50%, 09/01/49(a) |  |  | 2,395 |  |  |  | 2,409,418 |
California — 16.4% |  |  |  |  |  |
California State Public Works Board, RB |  |  |  |  |  |  |  |
Series F, 5.25%, 09/01/33 |  |  | 3,240 |  |  |  | 3,665,120 |
Series I, 5.50%, 11/01/30 |  |  | 4,500 |  |  |  | 5,215,050 |
Series I, 5.50%, 11/01/33 |  |  | 2,000 |  |  |  | 2,306,840 |
California State University, Refunding RB, Series A, 5.00%, 11/01/42 |  |  | 3,500 |  |  |  | 4,249,350 |
City of Los Angeles Department of Airports, RB, Series A, AMT, 5.00%, 05/15/42 |  |  | 1,750 |  |  |  | 2,060,345 |
County of Sacramento California Airport System Revenue, Refunding RB, Series C, AMT, 5.00%, 07/01/39 |  |  | 3,410 |  |  |  | 4,119,621 |
Golden State Tobacco Securitization Corp., Refunding RB |  |  |  |  |  |  |  |
Series A-1, 5.00%, 06/01/47 |  |  | 2,880 |  |  |  | 2,951,078 |
Series A-2, 5.00%, 06/01/47 |  |  | 785 |  |  |  | 804,382 |
Manteca Financing Authority, RB, Series A, (AGC), 5.75%, 12/01/36 |  |  | 3,285 |  |  |  | 3,299,191 |
Norman Y Mineta San Jose International Airport SJC, Refunding RB, Series A-1, AMT, 5.75%, 03/01/34 |  |  | 4,450 |  |  |  | 4,555,910 |
Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series J, 5.25%, 05/15/38 |  |  | 2,705 |  |  |  | 3,023,920 |
San Francisco City & County Airport Comm-San Francisco International Airport, Refunding RB |  |  |  |  |  |  |  |
Series A, AMT, 5.50%, 05/01/28 |  |  | 3,330 |  |  |  | 3,738,691 |
Series A, AMT, 5.25%, 05/01/33 |  |  | 6,370 |  |  |  | 7,072,293 |
Series A, AMT, 5.00%, 05/01/38 |  |  | 3,025 |  |  |  | 3,732,850 |
Series A, AMT, 5.00%, 05/01/44 |  |  | 3,430 |  |  |  | 3,837,450 |

Security |  | Par (000) |  |  | Value |
California (continued) |  |  |  |  |  |
Series B, AMT, 5.00%, 05/01/46 |  | $ | 7,840 |  |  | $ | 8,981,347 |
State of California, Refunding GO, 4.00%, 03/01/36 |  |  | 13,125 |  |  |  | 15,925,087 |
University of California, Refunding RB, Series AR, 5.00%, 05/15/38 |  |  | 10,000 |  |  |  | 12,178,100 |
|  |  |  |  |  |  | 91,716,625 |
Colorado — 2.6% |  |  |  |  |  |
City & County of Denver Colorado Airport System Revenue, RB |  |  |  |  |  |  |  |
Series A, AMT, 5.50%, 11/15/28 |  |  | 2,700 |  |  |  | 3,074,112 |
Series A, AMT, 5.50%, 11/15/30 |  |  | 1,040 |  |  |  | 1,180,660 |
Series A, AMT, 5.50%, 11/15/31 |  |  | 1,250 |  |  |  | 1,417,000 |
City & County of Denver Colorado Airport System Revenue, Refunding RB, Series A, AMT, 5.00%, 12/01/43 |  |  | 7,500 |  |  |  | 9,012,000 |
|  |  |  |  |  |  | 14,683,772 |
Connecticut — 0.1% |  |  |  |  |  |
Connecticut State Health & Educational Facilities Authority, RB, Series A-1, 5.00%, 10/01/54(a) |  |  | 415 |  |  |  | 409,078 |
Florida — 5.3% |  |  |  |  |  |
Capital Trust Agency, Inc., RB, Series A, 5.00%, 06/01/45(a)(b) |  |  | 850 |  |  |  | 837,981 |
County of Lee Florida Airport Revenue, Refunding RB, Series A, AMT, 5.38%, 10/01/32 |  |  | 7,100 |  |  |  | 7,375,977 |
County of Miami-Dade Seaport Department, RB |  |  |  |  |  |  |  |
Series A, 5.38%, 10/01/33 |  |  | 3,145 |  |  |  | 3,476,609 |
Series B, AMT, 6.25%, 10/01/38 |  |  | 1,405 |  |  |  | 1,567,741 |
Series B, AMT, 6.00%, 10/01/42 |  |  | 1,885 |  |  |  | 2,095,743 |
Esplanade Lake Club Community Development District, SAB |  |  |  |  |  |  |  |
Series A-1, 4.00%, 11/01/40 |  |  | 1,080 |  |  |  | 1,101,470 |
Series A-1, 4.13%, 11/01/50 |  |  | 385 |  |  |  | 391,260 |
Series A-2, 4.00%, 11/01/40 |  |  | 500 |  |  |  | 509,935 |
Series A-2, 4.13%, 11/01/50 |  |  | 500 |  |  |  | 508,125 |
Florida Development Finance Corp., RB(a) AMT, 5.00%, 05/01/29 |  |  | 825 |  |  |  | 879,293 |
Series A, AMT, 5.00%, 08/01/29(c) |  |  | 325 |  |  |  | 329,787 |
Florida Development Finance Corp., Refunding RB, Series C, 5.00%, 09/15/50(a) |  |  | 475 |  |  |  | 498,270 |
Hillsborough County Aviation Authority, Refunding RB |  |  |  |  |  |  |  |
Series A, AMT, 5.50%, 10/01/29 |  |  | 5,360 |  |  |  | 6,059,480 |
Series A, AMT, 5.25%, 10/01/30 |  |  | 3,255 |  |  |  | 3,649,376 |
Lee County Housing Finance Authority, RB, S/F Housing, Series A-2, AMT, (FHLMC, FNMA, GNMA), 6.00%, 09/01/40 |  |  | 225 |  |  |  | 228,101 |
Manatee County Housing Finance Authority, RB, S/F Housing, Series A, AMT, (FHLMC, FNMA, GNMA), 5.90%, 09/01/40 |  |  | 80 |  |  |  | 81,097 |
|  |  |  |  |  |  | 29,590,245 |
Hawaii — 2.0% |  |  |  |  |  |
State of Hawaii Airports System Revenue, COP AMT, 5.25%, 08/01/25 |  |  | 1,350 |  |  |  | 1,499,958 |

52 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock MuniHoldings Investment Quality Fund (MFL) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Hawaii (continued) |  |  |  |  |  |
AMT, 5.25%, 08/01/26 |  | $ | 2,500 |  |  | $ | 2,774,050 |
State of Hawaii Airports System Revenue, RB, Series A, AMT, 5.00%, 07/01/45 |  |  | 5,985 |  |  |  | 6,734,681 |
|  |  |  |  |  |  | 11,008,689 |
Idaho — 2.1% |  |  |  |  |  |
Idaho Health Facilities Authority, RB, 4.00%, 12/01/43 |  |  | 10,000 |  |  |  | 11,452,300 |
Illinois — 16.9% |  |  |  |  |  |
Chicago Board of Education, Refunding GO |  |  |  |  |  |  |  |
Series A, 0.00%, 12/01/25(d) |  |  | 395 |  |  |  | 338,310 |
Series A, 5.00%, 12/01/28 |  |  | 365 |  |  |  | 423,871 |
Series A, 5.00%, 12/01/29 |  |  | 440 |  |  |  | 514,312 |
Series A, 5.00%, 12/01/30 |  |  | 1,485 |  |  |  | 1,724,248 |
Chicago Midway International Airport, Refunding GARB, Series A, 2nd Lien, AMT, 5.00%, 01/01/41 |  |  | 8,020 |  |  |  | 8,761,770 |
Chicago Midway International Airport, Refunding RB |  |  |  |  |  |  |  |
Series A, 2nd Lien, AMT, 5.50%, 01/01/30 |  |  | 6,500 |  |  |  | 7,121,140 |
Series A, 2nd Lien, AMT, 5.50%, 01/01/32 |  |  | 6,275 |  |  |  | 6,859,453 |
Chicago O’Hare International Airport, RB |  |  |  |  |  |  |  |
Series A, 3rd Lien, 5.75%, 01/01/39 |  |  | 1,185 |  |  |  | 1,202,775 |
Series C, 3rd Lien, 6.50%, 01/01/21(e) |  |  | 16,800 |  |  |  | 17,150,112 |
Series D, Senior Lien, 5.25%, 01/01/42 |  |  | 2,630 |  |  |  | 3,111,448 |
Chicago O’Hare International Airport, Refunding RB, Series B, Senior Lien, 5.00%, 01/01/35 |  |  | 4,300 |  |  |  | 5,112,958 |
Chicago Transit Authority Sales Tax Receipts Fund, RB, 5.25%, 12/01/21(e) |  |  | 10,960 |  |  |  | 11,464,817 |
Illinois Finance Authority, RB, Series A, 6.00%, 08/15/41 |  |  | 4,000 |  |  |  | 4,187,520 |
Illinois State Toll Highway Authority, RB, Series A, 5.00%, 01/01/40 |  |  | 5,000 |  |  |  | 5,800,150 |
State of Illinois, GO |  |  |  |  |  |  |  |
5.50%, 05/01/39 |  |  | 15,000 |  |  |  | 17,505,900 |
5.75%, 05/01/45 |  |  | 2,500 |  |  |  | 2,934,575 |
|  |  |  |  |  |  | 94,213,359 |
Indiana — 0.7% |  |  |  |  |  |
Bloomington Redevelopment District, TA, Series B, 5.00%, 02/01/40 |  |  | 2,205 |  |  |  | 2,764,651 |
Indiana Finance Authority, RB, Series A, AMT, 5.00%, 07/01/40 |  |  | 1,240 |  |  |  | 1,334,401 |
|  |  |  |  |  |  | 4,099,052 |
Kentucky — 2.0% |  |  |  |  |  |
Kentucky Public Energy Authority, RB, Series C-1, 4.00%, 12/01/49(c) |  |  | 9,920 |  |  |  | 11,276,461 |
Louisiana — 0.1% |  |  |  |  |  |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Series A-2, 6.50%, 11/01/35 |  |  | 635 |  |  |  | 639,896 |
Massachusetts — 7.6% |  |  |  |  |  |
Commonwealth of Massachusetts, GO, Series G, 4.00%, 09/01/42 |  |  | 22,535 |  |  |  | 25,418,128 |
Massachusetts Development Finance Agency, Refunding RB, 5.00%, 07/01/41 |  |  | 4,710 |  |  |  | 5,562,651 |

Security |  | Par (000) |  |  | Value |
Massachusetts (continued) |  |  |  |  |  |
Massachusetts Educational Financing Authority, RB, AMT, 5.00%, 01/01/27 |  | $ | 1,000 |  |  | $ | 1,126,410 |
Massachusetts Housing Finance Agency, Refunding RB, Series G, 3.45%, 12/01/30 |  |  | 3,100 |  |  |  | 3,343,846 |
Massachusetts School Building Authority, RB, Series B, 4.00%, 02/15/42 |  |  | 6,200 |  |  |  | 6,748,142 |
|  |  |  |  |  |  | 42,199,177 |
Michigan — 2.1% |  |  |  |  |  |
City of Detroit Michigan Water Supply System Revenue, RB, Series B, 2nd Lien, (AGM), 6.25%, 07/01/36 |  |  | 10 |  |  |  | 10,044 |
Michigan Finance Authority, RB, 4.00%, 02/15/44 |  |  | 10,000 |  |  |  | 11,337,600 |
Michigan Finance Authority, Refunding RB, 5.00%, 11/15/41 |  |  | 525 |  |  |  | 614,386 |
|  |  |  |  |  |  | 11,962,030 |
Mississippi — 2.7% |  |  |  |  |  |
Mississippi Development Bank, RB |  |  |  |  |  |  |  |
(AGM), 6.75%, 12/01/31 |  |  | 3,775 |  |  |  | 4,489,645 |
(AGM), 6.75%, 12/01/33 |  |  | 2,350 |  |  |  | 2,783,834 |
(AGM), 6.88%, 12/01/40 |  |  | 6,405 |  |  |  | 7,522,480 |
|  |  |  |  |  |  | 14,795,959 |
New Jersey — 12.0% |  |  |  |  |  |
New Jersey Economic Development Authority, RB |  |  |  |  |  |  |  |
AMT, (AGM), 5.00%, 01/01/31 |  |  | 2,425 |  |  |  | 2,696,091 |
AMT, 5.38%, 01/01/43 |  |  | 7,000 |  |  |  | 7,700,700 |
New Jersey Economic Development Authority, Refunding RB, Series B, 5.50%, 06/15/30 |  |  | 4,080 |  |  |  | 4,855,894 |
New Jersey Higher Education Student Assistance Authority, Refunding RB, Series 1, AMT, 5.75%, 12/01/28 |  |  | 1,705 |  |  |  | 1,786,073 |
New Jersey Transportation Trust Fund Authority, RB |  |  |  |  |  |  |  |
Series AA, 5.50%, 06/15/39 |  |  | 8,175 |  |  |  | 8,896,280 |
Series S, 5.25%, 06/15/43 |  |  | 10,000 |  |  |  | 11,756,000 |
New Jersey Turnpike Authority, Refunding RB, Series A, 5.00%, 01/01/34 |  |  | 1,685 |  |  |  | 1,994,113 |
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 166th Series, 5.25%, 07/15/36 |  |  | 10,000 |  |  |  | 10,163,500 |
Tobacco Settlement Financing Corp., Refunding RB, Sub-Series B, 5.00%, 06/01/46 |  |  | 15,000 |  |  |  | 16,968,750 |
|  |  |  |  |  |  | 66,817,401 |
New Mexico — 0.1% |  |  |  |  |  |
City of Santa Fe New Mexico, RB, Series A, 5.00%, 05/15/39 |  |  | 310 |  |  |  | 330,953 |
New York — 9.8% |  |  |  |  |  |
City of New York, GO, Sub-Series F-1, 5.00%, 04/01/40 |  |  | 4,850 |  |  |  | 5,865,929 |
Hudson Yards Infrastructure Corp., RB, 5.75%, 02/15/47 |  |  | 8,820 |  |  |  | 9,007,690 |
Hudson Yards Infrastructure Corp., Refunding RB, Series A, 4.00%, 02/15/44 |  |  | 5,000 |  |  |  | 5,509,500 |
Metropolitan Transportation Authority, RB |  |  |  |  |  |  |  |
Series A-1, 5.25%, 11/15/39 |  |  | 4,490 |  |  |  | 4,754,371 |
Series C, 5.00%, 11/15/38 |  |  | 4,450 |  |  |  | 4,593,913 |

SCHEDULE OF INVESTMENTS |  | 53

Schedule of Investments (continued) August 31, 2020 |  | BlackRock MuniHoldings Investment Quality Fund (MFL) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
New York (continued) |  |  |  |  |  |
Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/55 |  | $ | 5,000 |  |  | $ | 5,655,000 |
New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Series C-3, 4.00%, 05/01/43 |  |  | 5,000 |  |  |  | 5,599,900 |
New York Convention Center Development Corp., RB, CAB, Series B, Sub-Lien, (BAM), 0.00%, 11/15/40(d) |  |  | 7,000 |  |  |  | 3,834,180 |
New York Liberty Development Corp., Refunding RB, Class 1, 5.00%, 11/15/44(a) |  |  | 1,730 |  |  |  | 1,811,518 |
New York State Dormitory Authority, RB, Series A, 5.00%, 03/15/41 |  |  | 2,450 |  |  |  | 2,955,631 |
Triborough Bridge & Tunnel Authority, Refunding RB, Series B, 5.00%, 11/15/38 |  |  | 4,400 |  |  |  | 5,318,104 |
|  |  |  |  |  |  | 54,905,736 |
Ohio — 4.4% |  |  |  |  |  |
Buckeye Tobacco Settlement Financing Authority, Refunding RB, Series B-2, Class 2, 5.00%, 06/01/55 |  |  | 8,530 |  |  |  | 9,352,377 |
Ohio Turnpike & Infrastructure Commission, RB |  |  |  |  |  |  |  |
Series A-1, Junior Lien, 5.25%, 02/15/31 |  |  | 5,145 |  |  |  | 5,744,856 |
Series A-1, Junior Lien, 5.25%, 02/15/32 |  |  | 2,250 |  |  |  | 2,509,515 |
State of Ohio, RB, 4.00%, 01/01/41 |  |  | 6,000 |  |  |  | 6,927,960 |
State of Ohio, Refunding RB, Series A, 4.00%, 01/01/28(e) |  |  | 25 |  |  |  | 31,174 |
|  |  |  |  |  |  | 24,565,882 |
Pennsylvania — 5.7% |  |  |  |  |  |
Bristol Township School District, GO, 5.25%, 06/01/37 |  |  | 3,000 |  |  |  | 3,325,320 |
Pennsylvania Turnpike Commission, RB |  |  |  |  |  |  |  |
Series A, 5.25%, 12/01/44 |  |  | 5,000 |  |  |  | 6,230,300 |
Series A, 5.50%, 12/01/46 |  |  | 18,570 |  |  |  | 22,528,938 |
|  |  |  |  |  |  | 32,084,558 |
Puerto Rico — 4.4% |  |  |  |  |  |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB |  |  |  |  |  |  |  |
Series A-1, Restructured, 4.75%, 07/01/53 |  |  | 719 |  |  |  | 752,592 |
Series A-1, Restructured, 5.00%, 07/01/58 |  |  | 6,203 |  |  |  | 6,604,086 |
Series A-2, Restructured, 4.33%, 07/01/40 |  |  | 12,484 |  |  |  | 12,995,220 |
Series A-2, Restructured, 4.78%, 07/01/58 |  |  | 488 |  |  |  | 513,810 |
Series B-1, Restructured, 4.75%, 07/01/53 |  |  | 749 |  |  |  | 785,656 |
Series B-2, Restructured, 4.78%, 07/01/58 |  |  | 726 |  |  |  | 762,786 |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(d) |  |  | 8,018 |  |  |  | 2,288,097 |
|  |  |  |  |  |  | 24,702,247 |
South Carolina — 5.7% |  |  |  |  |  |
Charleston County Airport District, RB |  |  |  |  |  |  |  |
Series A, AMT, 5.25%, 07/01/25 |  |  | 4,490 |  |  |  | 5,040,788 |
Series A, AMT, 5.50%, 07/01/38 |  |  | 3,000 |  |  |  | 3,327,780 |
Series A, AMT, 6.00%, 07/01/38 |  |  | 5,270 |  |  |  | 5,918,526 |
Series A, AMT, 5.50%, 07/01/41 |  |  | 4,170 |  |  |  | 4,611,144 |
County of Charleston South Caolina, RB, 5.25%, 12/01/38 |  |  | 6,735 |  |  |  | 7,690,158 |
South Carolina Jobs-Economic Development Authority, Refunding RB, Series A, 5.00%, 05/01/37 |  |  | 4,480 |  |  |  | 5,279,949 |
|  |  |  |  |  |  | 31,868,345 |

Security |  | Par (000) |  |  | Value |
Texas — 12.4% |  |  |  |  |  |
City of Beaumont Texas, GO, 5.25%, 03/01/37 |  | $ | 4,190 |  |  | $ | 4,645,872 |
City of Houston Texas Airport System Revenue, RB, Series A, AMT, 6.63%, 07/15/38 |  |  | 700 |  |  |  | 713,734 |
City of Houston Texas Airport System Revenue, Refunding RB |  |  |  |  |  |  |  |
Series A, AMT, 5.00%, 07/01/27 |  |  | 400 |  |  |  | 415,852 |
Series B-2, AMT, 5.00%, 07/15/27 |  |  | 410 |  |  |  | 426,265 |
Dallas Fort Worth International Airport, RB |  |  |  |  |  |  |  |
Series A, AMT, 5.00%, 11/01/28 |  |  | 2,000 |  |  |  | 2,181,000 |
Series B, AMT, 5.00%, 11/01/29 |  |  | 1,490 |  |  |  | 1,610,899 |
Series H, AMT, 5.00%, 11/01/21(e) |  |  | 4,575 |  |  |  | 4,820,403 |
Lower Colorado River Authority, Refunding RB, 5.50%, 05/15/33 |  |  | 3,735 |  |  |  | 4,207,552 |
New Hope Cultural Education Facilities Finance Corp., RB, Series A, 5.00%, 08/15/50(a) |  |  | 800 |  |  |  | 814,624 |
North Texas Tollway Authority, Refunding RB, (AGM), 6.00%, 01/01/21(e) |  |  | 5,555 |  |  |  | 5,661,767 |
Red River Education Finance Corp., RB, 5.25%, 03/15/23(e) |  |  | 7,170 |  |  |  | 8,080,446 |
State of Texas, GO |  |  |  |  |  |  |  |
5.00%, 04/01/43 |  |  | 15,550 |  |  |  | 18,703,851 |
Series D, 5.00%, 05/15/40 |  |  | 4,000 |  |  |  | 4,732,560 |
Texas City Industrial Development Corp., RB, Series 2012, 4.13%, 12/01/45 |  |  | 445 |  |  |  | 462,346 |
Texas Water Development Board, RB 5.25%, 10/15/46 |  |  | 4,780 |  |  |  | 5,891,637 |
Series B, 4.00%, 10/15/43 |  |  | 5,000 |  |  |  | 5,868,100 |
|  |  |  |  |  |  | 69,236,908 |
Utah — 2.7% |  |  |  |  |  |
County of Utah Utah, RB, Series B, 5.00%, 05/15/46 |  |  | 8,590 |  |  |  | 10,088,869 |
Utah Charter School Finance Authority, RB, Series A, 5.00%, 06/15/49(a) |  |  | 320 |  |  |  | 329,625 |
Utah State University, RB, Series B, (AGM), 4.00%, 12/01/45 |  |  | 4,390 |  |  |  | 4,933,570 |
|  |  |  |  |  |  | 15,352,064 |
Washington — 0.7% |  |  |  |  |  |
State of Washington, GO, Series C, 5.00%, 02/01/41 |  |  | 2,500 |  |  |  | 3,111,400 |
Washington State Housing Finance Commission, RB, Series A, 5.00%, 01/01/55(a) |  |  | 875 |  |  |  | 848,750 |
|  |  |  |  |  |  | 3,960,150 |
Wisconsin(a) — 0.5% |  |  |  |  |  |
Public Finance Authority, RB |  |  |  |  |  |  |  |
Series A, 5.00%, 07/15/39 |  |  | 165 |  |  |  | 170,910 |
Series A, 5.00%, 07/15/49 |  |  | 630 |  |  |  | 642,619 |
Series A, 5.00%, 07/15/54 |  |  | 300 |  |  |  | 305,115 |
Series A-1, 5.00%, 01/01/55 |  |  | 945 |  |  |  | 929,389 |
Public Finance Authority, Refunding RB, 5.00%, 09/01/49 |  |  | 520 |  |  |  | 467,402 |
|  |  |  |  |  |  | 2,515,435 |
Total Municipal Bonds — 125.1% |  |  |  |  |  |  |  |
(Cost: $654,513,775) |  |  |  |  |  |  | 699,028,299 |

54 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock MuniHoldings Investment Quality Fund (MFL) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Municipal Bonds Transferred to Tender Option Bond Trusts(f) |
Alabama — 8.3% |  |  |  |  |  |
Alabama Special Care Facilities Financing Authority- Birmingham AL, Refunding RB, Series B, 5.00%, 11/15/46 |  | $ | 39,718 |  |  | $ | 46,549,444 |
Massachusetts — 4.6% |  |  |  |  |  |
Commonwealth of Massachusetts, GO, Series E, 5.25%, 09/01/43 |  |  | 20,000 |  |  |  | 25,529,800 |
Michigan — 2.0% |  |  |  |  |  |
Michigan Finance Authority, Refunding RB, Series A, 4.00%, 12/01/40 |  |  | 10,100 |  |  |  | 11,347,552 |
Nevada — 2.0% |  |  |  |  |  |
County of Clark Nevada, GO, 4.00%, 07/01/47 |  |  | 10,000 |  |  |  | 11,070,000 |
New Jersey — 0.6% |  |  |  |  |  |
New Jersey Transportation Trust Fund Authority, RB, Series B, 5.25%, 06/15/36(g) |  |  | 2,961 |  |  |  | 3,038,990 |
New York — 16.8% |  |  |  |  |  |
Hudson Yards Infrastructure Corp, Refunding RB, Series A, 4.00%, 02/15/44 |  |  | 30,165 |  |  |  | 33,238,808 |
New York City Transitional Finance Authority Building Aid Revenue, RB, Series S-1, 5.00%, 07/15/43 |  |  | 11,825 |  |  |  | 14,448,851 |
New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Sub-Series B-1, 4.00%, 11/01/41 |  |  | 20,000 |  |  |  | 23,100,800 |
New York Liberty Development Corp., RB, 5.25%, 12/15/43 |  |  | 13,950 |  |  |  | 14,660,622 |
New York Liberty Development Corp., Refunding RB, 5.75%, 11/15/51(g) |  |  | 8,200 |  |  |  | 8,650,570 |
|  |  |  |  |  |  | 94,099,651 |
Pennsylvania — 1.9% |  |  |  |  |  |
Geisinger Authority, Refunding RB, Series A, 4.00%, 06/01/41 |  |  | 10,000 |  |  |  | 10,705,900 |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 36.2% |  |  |  |  |
(Cost: $191,767,418) |  |  |  | 202,341,337 |
Total Long-Term Investments — 161.3% |  |  |  |  |
(Cost: $846,281,193) |  |  |  | 901,369,636 |

Security |  | Shares |  |  | Value |
Short-Term Securities |  |  |  |  |  |  |  |
Money Market Funds — 3.1% |  |  |  |  |  |
BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.01%(h)(i) |  |  | 17,309,545 |  |  | $ | 17,313,007 |
Total Short-Term Securities — 3.1% |  |  |  |  |
(Cost: $17,313,007) |  |  |  | 17,313,007 |
Total Investments — 164.4% |  |  |  |  |
(Cost: $863,594,200) |  |  |  | 918,682,643 |
Other Assets Less Liabilities — 1.1% |  |  |  | 6,095,990 |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (16.4)% |  |  |  | (91,602,785 | )
VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (49.1)% |  |  |  | (274,247,069 | )
Net Assets Applicable to Common Shares — 100.0% |  |  | $ | 558,928,779 |

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

(b) | When-issued security.

(c) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

(d) | Zero-coupon bond.

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

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

(g) | All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between December 15, 2020 to May 15, 2021, is $6,642,201. See Note 4 of the Notes to Financial Statements for details.

(h) | Affiliate of the Trust.

(i) | Annualized 7-day yield as of period end.

Affiliates

Investments in issuers considered to be an affiliate of the Trust during the year ended August 31, 2020, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliated Issuer |  | Value at 08/31/19 |  |  | Purchases at Cost |  |  | Proceeds from Sales |  |  | Net Realized Gain (Loss) |  |  | Change in Unrealized Appreciation (Depreciation) |  |  | Value at 08/31/20 |  |  | Shares Held at 08/31/20 |  |  | Income |  |  | Capital Gain Distributions from Underlying Funds |
BlackRock Liquidity Funds, MuniCash, Institutional Class |  | $ | 3,256,093 |  |  | $ | 14,047,067 | (a) |  | $ | — |  |  | $ | 9,842 |  |  | $ | 5 |  |  | $ | 17,313,007 |  |  |  | 17,309,545 |  |  | $ | 76,558 |  |  | $ | — |

| (a) | Represents net amount purchased (sold). |

SCHEDULE OF INVESTMENTS |  | 55

Schedule of Investments (continued) August 31, 2020 |  | BlackRock MuniHoldings Investment Quality Fund (MFL)

Derivative Financial Instruments Categorized by Risk Exposure

For the year ended August 31, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

|  | Commodity Contracts |  |  | Credit Contracts |  |  | Equity Contracts |  |  | Foreign Currency Exchange Contracts |  |  | Interest Rate Contracts |  |  | Other Contracts |  |  | Total |
Net Realized Gain (Loss) from |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Futures contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (4,942,557 | ) |  | $ | — |  |  | $ | (4,942,557 | )
Net Change in Unrealized Appreciation (Depreciation) on |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Futures contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 109,416 |  |  | $ | — |  |  | $ | 109,416 |

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts |  |  |  |  |  |  |  |
Average notional value of contracts — long |  |  |  |  |  | $ | — | (a)
Average notional value of contracts — short |  |  |  |  |  | $ | 26,473,473 |

| (a) | Derivative not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period. |

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

Fair Value Hierarchy as of Period End

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

The following table summarizes the Trust’s investments categorized in the disclosure hierarchy. The breakdown of the Trust’s investments into major categories is disclosed in the Schedule of Investments above.

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-Term Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds |  | $ | — |  |  | $ | 699,028,299 |  |  | $ | — |  |  | $ | 699,028,299 |
Municipal Bonds Transferred to Tender Option Bond Trusts |  |  | — |  |  |  | 202,341,337 |  |  |  | — |  |  |  | 202,341,337 |
Short-Term Securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money Market Funds |  |  | 17,313,007 |  |  |  | — |  |  |  | — |  |  |  | 17,313,007 |
|  | $ | 17,313,007 |  |  | $ | 901,369,636 |  |  | $ | — |  |  | $ | 918,682,643 |

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

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOB Trust Certificates |  | $ | — |  |  | $ | (91,534,330 | ) |  | $ | — |  |  | $ | (91,534,330 | )
VRDP Shares at Liquidation Value |  |  | — |  |  |  | (274,600,000 | ) |  |  | — |  |  |  | (274,600,000 | )
|  | $ | — |  |  | $ | (366,134,330 | ) |  | $ | — |  |  | $ | (366,134,330 | )

See notes to financial statements.

56 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments August 31, 2020 |  | BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Municipal Bonds |  |  |  |  |  |  |  |
Alabama — 1.7% |  |  |  |  |  |
Selma Industrial Development Board, RB, Series A, 5.38%, 12/01/35 |  | $ | 1,000 |  |  | $ | 1,051,270 |
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/20(a) |  |  | 7,610 |  |  |  | 7,645,767 |
Tuscaloosa County Industrial Development Authority, Refunding RB, Series A, 4.50%, 05/01/32(b) |  |  | 1,820 |  |  |  | 1,927,981 |
|  |  |  |  |  |  | 10,625,018 |
Alaska — 0.6% |  |  |  |  |  |
City of Anchorage Alaska Electric Revenue, Refunding RB, Series A, Senior Lien, 5.00%, 12/01/41 |  |  | 3,000 |  |  |  | 3,458,730 |
Arizona — 5.3% |  |  |  |  |  |
Arizona Industrial Development Authority, RB, Series A, (BAM), 4.00%, 06/01/44 |  |  | 1,435 |  |  |  | 1,594,213 |
Arizona Industrial Development Authority, Refunding RB(b) |  |  |  |  |  |  |  |
Series A, 5.38%, 07/01/50 |  |  | 2,500 |  |  |  | 2,590,250 |
Series G, 5.00%, 07/01/47 |  |  | 715 |  |  |  | 730,144 |
City of Phoenix Civic Improvement Corp., RB, Series B, AMT, 3.25%, 07/01/49 |  |  | 2,195 |  |  |  | 2,274,810 |
Industrial Development Authority of the City of Phoenix, RB(a) |  |  |  |  |  |  |  |
6.63%, 07/01/23 |  |  | 2,245 |  |  |  | 2,650,582 |
6.88%, 07/01/23 |  |  | 3,440 |  |  |  | 4,085,722 |
Industrial Development Authority of the City of Phoenix, Refunding RB(b) |  |  |  |  |  |  |  |
5.00%, 07/01/35 |  |  | 600 |  |  |  | 620,058 |
5.00%, 07/01/45 |  |  | 700 |  |  |  | 722,834 |
Series A, 5.00%, 07/01/35 |  |  | 1,125 |  |  |  | 1,162,609 |
Maricopa County Pollution Control Corp., Refunding RB, Series A, 5.00%, 06/01/35 |  |  | 3,300 |  |  |  | 3,310,230 |
Salt Verde Financial Corp., RB, 5.00%, 12/01/37 |  |  | 9,805 |  |  |  | 13,400,003 |
|  |  |  |  |  |  | 33,141,455 |
Arkansas — 0.6% |  |  |  |  |  |
Arkansas Development Finance Authority, RB, AMT, 4.50%, 09/01/49(b) |  |  | 3,790 |  |  |  | 3,812,816 |
California — 2.6% |  |  |  |  |  |
California Municipal Finance Authority, RB, Senior Lien, AMT, 5.00%, 12/31/43 |  |  | 2,800 |  |  |  | 3,211,152 |
Golden State Tobacco Securitization Corp., Refunding RB |  |  |  |  |  |  |  |
Series A-1, 5.25%, 06/01/47 |  |  | 1,025 |  |  |  | 1,054,253 |
Series A-2, 5.00%, 06/01/47 |  |  | 855 |  |  |  | 876,110 |
Poway Unified School District, Refunding GO, CAB, Series B, 0.00%, 08/01/46(c) |  |  | 10,000 |  |  |  | 4,757,100 |
San Francisco City & County Airport Comm-San Francisco International Airport, Refunding RB, Series E, AMT, 5.00%, 05/01/50 |  |  | 5,000 |  |  |  | 5,982,450 |
|  |  |  |  |  |  | 15,881,065 |
Colorado — 1.7% |  |  |  |  |  |
Centerra Metropolitan District No. 1, TA, 5.00%, 12/01/47(b) |  |  | 1,025 |  |  |  | 1,032,759 |
Colorado Health Facilities Authority, Refunding RB 4.00%, 11/15/43 |  |  | 2,320 |  |  |  | 2,688,810 |

Security |  | Par (000) |  |  | Value |
Colorado (continued) |  |  |  |  |  |
Series A, 5.00%, 08/01/44 |  | $ | 3,840 |  |  | $ | 4,628,890 |
Copperleaf Metropolitan District No. 2, Refunding GO, 5.75%, 12/01/45 |  |  | 1,000 |  |  |  | 1,024,400 |
Serenity Ridge Metropolitan District No. 2, GO, Series A, 5.13%, 12/01/43 |  |  | 1,000 |  |  |  | 1,012,080 |
|  |  |  |  |  |  | 10,386,939 |
Connecticut — 0.7% |  |  |  |  |  |
Connecticut Housing Finance Authority, Refunding RB, S/F Housing, Sub-Series B-1, 4.00%, 05/15/45 |  |  | 150 |  |  |  | 166,668 |
State of Connecticut, GO, Series A, 5.00%, 04/15/38 |  |  | 3,325 |  |  |  | 4,070,399 |
|  |  |  |  |  |  | 4,237,067 |
Delaware — 0.9% |  |  |  |  |  |
County of Sussex Delaware, RB, 6.00%, 10/01/40 |  |  | 2,500 |  |  |  | 2,529,450 |
Delaware State Health Facilities Authority, RB, 5.00%, 06/01/43 |  |  | 2,780 |  |  |  | 3,235,920 |
|  |  |  |  |  |  | 5,765,370 |
Florida — 7.3% |  |  |  |  |  |
Celebration Pointe Community Development District, SAB (b) |  |  |  |  |  |  |  |
5.00%, 05/01/32 |  |  | 860 |  |  |  | 944,641 |
5.00%, 05/01/48 |  |  | 2,160 |  |  |  | 2,301,804 |
Central Florida Expressway Authority, Refunding RB, Senior Lien, 5.00%, 07/01/48 |  |  | 9,370 |  |  |  | 11,399,636 |
County of Miami-Dade Florida Aviation Revenue, Refunding RB, Series A, 5.38%, 10/01/20(a) |  |  | 10,290 |  |  |  | 10,332,498 |
County of Miami-Dade Florida Transit System, Refunding RB, 5.00%, 07/01/22(a) |  |  | 3,750 |  |  |  | 4,073,138 |
Lakewood Ranch Stewardship District, SAB |  |  |  |  |  |  |  |
4.63%, 05/01/27 |  |  | 255 |  |  |  | 272,694 |
5.25%, 05/01/37 |  |  | 470 |  |  |  | 511,854 |
5.38%, 05/01/47 |  |  | 770 |  |  |  | 834,826 |
Miami-Dade County Educational Facilities Authority, Refunding RB, Series A, 5.00%, 04/01/45 |  |  | 4,625 |  |  |  | 5,146,191 |
Miami-Dade County Expressway Authority, Refunding RB, Series A, (AGM), 5.00%, 07/01/35 |  |  | 8,900 |  |  |  | 8,930,616 |
Palm Beach County Health Facilities Authority, RB |  |  |  |  |  |  |  |
Series B, 4.00%, 11/15/41 |  |  | 300 |  |  |  | 323,679 |
Series B, 5.00%, 11/15/42 |  |  | 135 |  |  |  | 156,632 |
|  |  |  |  |  |  | 45,228,209 |
Georgia — 1.4% |  |  |  |  |  |
City of Atlanta Georgia Department of Aviation, Refunding RB, Series B, AMT, 5.00%, 01/01/29 |  |  | 1,070 |  |  |  | 1,085,504 |
Development Authority for Fulton County, RB, 4.00%, 06/15/49 |  |  | 1,575 |  |  |  | 1,775,529 |
Main Street Natural Gas, Inc., RB, Series A, 5.00%, 05/15/49 |  |  | 1,855 |  |  |  | 2,624,398 |
Municipal Electric Authority of Georgia, RB, 5.00%, 01/01/48 |  |  | 2,745 |  |  |  | 3,253,045 |
|  |  |  |  |  |  | 8,738,476 |
Hawaii — 0.8% |  |  |  |  |  |
State of Hawaii Harbor System Revenue, RB, Series A, 5.50%, 07/01/35 |  |  | 5,000 |  |  |  | 5,019,450 |

SCHEDULES OF INVESTMENTS |  | 57

Schedule of Investments (continued) August 31, 2020 |  | BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Illinois — 10.7% |  |  |  |  |  |
Chicago Board of Education, GO |  |  |  |  |  |  |  |
Series C, 5.25%, 12/01/35 |  | $ | 2,785 |  |  | $ | 2,989,391 |
Series D, 5.00%, 12/01/46 |  |  | 3,570 |  |  |  | 3,745,302 |
Series H, 5.00%, 12/01/36 |  |  | 865 |  |  |  | 952,028 |
Chicago Board of Education, Refunding GO |  |  |  |  |  |  |  |
Series C, 5.00%, 12/01/25 |  |  | 1,200 |  |  |  | 1,350,588 |
Series D, 5.00%, 12/01/25 |  |  | 1,560 |  |  |  | 1,755,764 |
Series G, 5.00%, 12/01/34 |  |  | 865 |  |  |  | 957,970 |
Chicago O’Hare International Airport, RB, Series D, Senior Lien, AMT, 5.00%, 01/01/42 |  |  | 1,450 |  |  |  | 1,661,236 |
Chicago Transit Authority Sales Tax Receipts Fund, RB, 5.25%, 12/01/21(a) |  |  | 2,110 |  |  |  | 2,213,453 |
City of Chicago Illinois Wastewater Transmission Revenue, Refunding RB, Series C, 2nd Lien, 5.00%, 01/01/39 |  |  | 1,000 |  |  |  | 1,102,720 |
Cook County Community College District No. 508, GO, 5.25%, 12/01/31 |  |  | 5,000 |  |  |  | 5,355,700 |
Illinois Finance Authority, RB, Series A, 5.25%, 07/01/44 |  |  | 1,785 |  |  |  | 1,969,587 |
Illinois Finance Authority, Refunding RB, Series C, 5.00%, 02/15/41 |  |  | 3,600 |  |  |  | 4,275,072 |
Illinois State Toll Highway Authority, RB, Series A, 5.00%, 01/01/42 |  |  | 7,990 |  |  |  | 9,634,422 |
Metropolitan Pier & Exposition Authority, RB |  |  |  |  |  |  |  |
(BAM), 0.00%, 12/15/56(c) |  |  | 8,755 |  |  |  | 2,331,369 |
Series A, 5.00%, 06/15/57 |  |  | 2,515 |  |  |  | 2,711,170 |
Metropolitan Pier & Exposition Authority, Refunding RB |  |  |  |  |  |  |  |
4.00%, 06/15/50 |  |  | 2,010 |  |  |  | 2,046,502 |
Series B, (BAM), 0.00%, 12/15/54(c) |  |  | 12,215 |  |  |  | 3,524,760 |
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 06/01/21(a) |  |  | 2,645 |  |  |  | 2,759,714 |
Regional Transportation Authority, RB, Series A, (AMBAC), 7.20%, 11/01/20 |  |  | 440 |  |  |  | 444,690 |
State of Illinois, GO, Series D, 5.00%, 11/01/28 |  |  | 6,965 |  |  |  | 7,831,446 |
Village of Hodgkins Illinois, RB, AMT, 6.00%, 11/01/23 |  |  | 7,045 |  |  |  | 7,073,251 |
|  |  |  |  |  |  | 66,686,135 |
Indiana — 1.6% |  |  |  |  |  |
City of Valparaiso Indiana, RB, AMT, 6.75%, 01/01/34 |  |  | 2,250 |  |  |  | 2,459,115 |
County of Allen Indiana, RB(b) |  |  |  |  |  |  |  |
Series A-1, 6.63%, 01/15/34 |  |  | 700 |  |  |  | 625,366 |
Series A-1, 6.75%, 01/15/43 |  |  | 570 |  |  |  | 508,531 |
Indiana Finance Authority, RB, Series A, AMT, 5.00%, 07/01/40 |  |  | 2,640 |  |  |  | 2,840,983 |
Indiana Finance Authority, Refunding RB, Series A, 5.00%, 03/01/39 |  |  | 3,000 |  |  |  | 3,451,020 |
|  |  |  |  |  |  | 9,885,015 |
Iowa — 1.7% |  |  |  |  |  |
Iowa Finance Authority, RB |  |  |  |  |  |  |  |
5.00%, 05/15/36 |  |  | 1,050 |  |  |  | 1,109,042 |
Series A, 5.00%, 05/15/48 |  |  | 3,950 |  |  |  | 4,121,469 |

Security |  | Par (000) |  |  | Value |
Iowa (continued) |  |  |  |  |  |
Iowa Finance Authority, Refunding RB, 5.25%, 12/01/25 |  | $ | 4,000 |  |  | $ | 4,188,400 |
Iowa Tobacco Settlement Authority, Refunding RB, Series B, 5.60%, 06/01/34 |  |  | 1,000 |  |  |  | 1,009,790 |
|  |  |  |  |  |  | 10,428,701 |
Kansas — 1.0% |  |  |  |  |  |
City of Lenexa Kansas, Refunding RB, Series A, 5.00%, 05/15/43 |  |  | 1,965 |  |  |  | 1,965,904 |
Wyandotte County-Kansas City Unified Government Utility System Revenue, RB, Series A, 5.00%, 09/01/40 |  |  | 3,700 |  |  |  | 4,327,779 |
|  |  |  |  |  |  | 6,293,683 |
Louisiana — 4.0% |  |  |  |  |  |
Louisiana Local Government Environmental Facilities & Community Development Auth, RB, Series A-1, 6.50%, 11/01/35 |  |  | 2,615 |  |  |  | 2,635,162 |
Parish of St Charles LA, RB, 4.00%, 12/01/40(d) |  |  | 2,210 |  |  |  | 2,325,627 |
Parish of St John the Baptist LA, Refunding RB (d) 2.00%, 06/01/37 |  |  | 2,250 |  |  |  | 2,255,333 |
Sub-Series B-1, 2.13%, 06/01/37 |  |  | 600 |  |  |  | 603,822 |
Sub-Series B-1, 2.38%, 06/01/37 |  |  | 1,090 |  |  |  | 1,103,254 |
Parish of St John the Baptist. Louisiana, Refunding RB, 2.10%, 06/01/37(d) |  |  | 1,310 |  |  |  | 1,316,078 |
Tobacco Settlement Financing Corp., Refunding RB |  |  |  |  |  |  |  |
Series A, 5.25%, 05/15/31 |  |  | 3,420 |  |  |  | 3,498,763 |
Series A, 5.25%, 05/15/32 |  |  | 4,375 |  |  |  | 4,603,550 |
Series A, 5.25%, 05/15/33 |  |  | 4,750 |  |  |  | 4,994,007 |
Series A, 5.25%, 05/15/35 |  |  | 1,500 |  |  |  | 1,604,925 |
|  |  |  |  |  |  | 24,940,521 |
Maryland — 3.0% |  |  |  |  |  |
City of Baltimore Maryland, Refunding RB, Series A, 4.50%, 09/01/33 |  |  | 545 |  |  |  | 552,347 |
Howard County Housing Commission, RB, M/F Housing, 5.00%, 12/01/42 |  |  | 4,935 |  |  |  | 5,942,776 |
Maryland Health & Higher Educational Facilities Authority, RB, Series B, 4.00%, 04/15/45 |  |  | 2,560 |  |  |  | 2,892,928 |
Maryland Health & Higher Educational Facilities Authority, Refunding RB |  |  |  |  |  |  |  |
6.25%, 01/01/21(a) |  |  | 2,000 |  |  |  | 2,040,040 |
5.00%, 07/01/40 |  |  | 6,350 |  |  |  | 7,090,156 |
|  |  |  |  |  |  | 18,518,247 |
Massachusetts — 1.9% |  |  |  |  |  |
Massachusetts Development Finance Agency, RB |  |  |  |  |  |  |  |
Series A, 5.25%, 01/01/42 |  |  | 1,895 |  |  |  | 2,153,402 |
Series A, 5.00%, 01/01/47 |  |  | 845 |  |  |  | 940,747 |
Massachusetts Development Finance Agency, Refunding RB, Series A, 5.00%, 01/01/40 |  |  | 1,620 |  |  |  | 1,846,816 |
Massachusetts Port Authority, Refunding RB, Series A, AMT, 4.00%, 07/01/44 |  |  | 6,180 |  |  |  | 6,890,268 |
|  |  |  |  |  |  | 11,831,233 |

58 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Michigan — 0.3% |  |  |  |  |  |
Michigan Strategic Fund, RB, AMT, 5.00%, 06/30/48 |  | $ | 1,775 |  |  | $ | 1,970,800 |
Minnesota — 0.7% |  |  |  |  |  |
City of Cologne Minnesota, RB, Series A, 5.00%, 07/01/45 |  |  | 1,500 |  |  |  | 1,527,195 |
Housing & Redevelopment Authority of The City of St. Paul Minnesota, RB, Series A, 5.50%, 07/01/52(b) |  |  | 695 |  |  |  | 734,671 |
Housing & Redevelopment Authority of The City of St. Paul Minnesota, Refunding RB, Series A, 4.00%, 11/15/43 |  |  | 1,940 |  |  |  | 2,107,286 |
|  |  |  |  |  |  | 4,369,152 |
Mississippi — 4.1% |  |  |  |  |  |
County of Lowndes Mississippi, Refunding RB |  |  |  |  |  |  |  |
Series A, 6.80%, 04/01/22 |  |  | 9,160 |  |  |  | 10,012,704 |
Series B, 6.70%, 04/01/22 |  |  | 4,500 |  |  |  | 4,911,840 |
Mississippi Development Bank, Refunding RB, Series A, (AGM), 4.00%, 03/01/41 |  |  | 3,000 |  |  |  | 3,179,070 |
State of Mississippi, RB |  |  |  |  |  |  |  |
Series A, 5.00%, 10/15/37 |  |  | 1,105 |  |  |  | 1,294,121 |
Series A, 4.00%, 10/15/38 |  |  | 5,535 |  |  |  | 5,992,855 |
|  |  |  |  |  |  | 25,390,590 |
Montana — 0.1% |  |  |  |  |  |
Montana Board of Housing, RB, S/F Housing |  |  |  |  |  |  |  |
Series B-2, 3.50%, 12/01/42 |  |  | 330 |  |  |  | 348,814 |
Series B-2, 3.60%, 12/01/47 |  |  | 510 |  |  |  | 547,546 |
|  |  |  |  |  |  | 896,360 |
Nebraska — 1.1% |  |  |  |  |  |
Central Plains Energy Project, RB, 5.00%, 09/01/42 |  |  | 6,200 |  |  |  | 6,740,392 |
Nevada — 2.5% |  |  |  |  |  |
City of Carson City Nevada, Refunding RB, 5.00%, 09/01/42 |  |  | 2,250 |  |  |  | 2,628,742 |
City of Reno Nevada, Refunding RB |  |  |  |  |  |  |  |
Series A-1, (AGM), 4.00%, 06/01/43 |  |  | 5,230 |  |  |  | 5,877,788 |
Series A-1, (AGM), 4.00%, 06/01/46 |  |  | 245 |  |  |  | 273,687 |
County of Clark Nevada, GO |  |  |  |  |  |  |  |
Series A, 5.00%, 06/01/36 |  |  | 4,080 |  |  |  | 5,088,821 |
Series A, 5.00%, 06/01/37 |  |  | 1,500 |  |  |  | 1,862,835 |
|  |  |  |  |  |  | 15,731,873 |
New Jersey — 10.7% |  |  |  |  |  |
Casino Reinvestment Development Authority, Inc., Refunding RB, 5.25%, 11/01/44 |  |  | 1,400 |  |  |  | 1,429,750 |
New Jersey Economic Development Authority, RB |  |  |  |  |  |  |  |
Series UU, 5.00%, 06/15/40 |  |  | 2,755 |  |  |  | 2,982,921 |
AMT, 5.13%, 01/01/34 |  |  | 1,050 |  |  |  | 1,163,978 |
AMT, 5.38%, 01/01/43 |  |  | 10,000 |  |  |  | 11,001,000 |
Series A, AMT, 5.63%, 11/15/30 |  |  | 1,530 |  |  |  | 1,576,956 |
New Jersey Housing & Mortgage Finance Agency, Refunding RB, Series A, AMT, 3.80%, 10/01/32 |  |  | 4,555 |  |  |  | 4,961,078 |
New Jersey Transportation Trust Fund Authority, RB |  |  |  |  |  |  |  |
Series AA, 5.25%, 06/15/33 |  |  | 8,750 |  |  |  | 9,544,238 |
Series AA, 5.25%, 06/15/41 |  |  | 780 |  |  |  | 865,511 |
Series AA, 5.00%, 06/15/44 |  |  | 4,450 |  |  |  | 4,782,237 |
Series B, 5.50%, 06/15/31 |  |  | 8,000 |  |  |  | 8,245,200 |
Series BB, 4.00%, 06/15/50 |  |  | 3,795 |  |  |  | 4,008,051 |
New Jersey Transportation Trust Fund Authority, RB, CAB, Series A, 0.00%, 12/15/38(c) |  |  | 7,260 |  |  |  | 3,791,317 |

Security |  | Par (000) |  |  | Value |
New Jersey (continued) |  |  |  |  |  |
New Jersey Transportation Trust Fund Authority, Refunding RB, Series A, 5.00%, 12/15/32 |  | $ | 5,430 |  |  | $ | 6,400,233 |
Tobacco Settlement Financing Corp., Refunding RB |  |  |  |  |  |  |  |
Series A, 5.25%, 06/01/46 |  |  | 4,550 |  |  |  | 5,359,900 |
Sub-Series B, 5.00%, 06/01/46 |  |  | 665 |  |  |  | 752,281 |
|  |  |  |  |  |  | 66,864,651 |
New York — 5.2% |  |  |  |  |  |
Build NYC Resource Corp., Refunding RB, AMT, 5.00%, 01/01/35(b) |  |  | 2,145 |  |  |  | 2,238,286 |
Erie Tobacco Asset Securitization Corp., Refunding RB, Series A, 5.00%, 06/01/45 |  |  | 4,435 |  |  |  | 4,435,133 |
New York Counties Tobacco Trust IV, Refunding RB |  |  |  |  |  |  |  |
Series A, 5.00%, 06/01/38 |  |  | 3,675 |  |  |  | 3,682,130 |
Series A, 6.25%, 06/01/41(b) |  |  | 3,500 |  |  |  | 3,512,215 |
New York Liberty Development Corp., Refunding RB(b) |  |  |  |  |  |  |  |
Class 2, 5.15%, 11/15/34 |  |  | 460 |  |  |  | 484,297 |
Class 2, 5.38%, 11/15/40 |  |  | 1,145 |  |  |  | 1,218,108 |
New York State Urban Development Corp., RB, Series A, 4.00%, 03/15/49 |  |  | 7,500 |  |  |  | 8,714,775 |
Port Authority of New York & New Jersey, RB, Series 8, 6.00%, 12/01/36 |  |  | 3,165 |  |  |  | 3,201,556 |
TSASC Inc, Refunding RB, Series A, 5.00%, 06/01/41 |  |  | 1,785 |  |  |  | 1,999,896 |
Westchester Tobacco Asset Securitization Corp., Refunding RB, Series C, 5.13%, 06/01/51 |  |  | 2,740 |  |  |  | 2,803,952 |
|  |  |  |  |  |  | 32,290,348 |
North Carolina — 0.3% |  |  |  |  |  |
North Carolina Turnpike Authority, RB, Senior Lien, (AGM), 4.00%, 01/01/55 |  |  | 1,045 |  |  |  | 1,176,837 |
University of North Carolina at Chapel Hill, RB, 5.00%, 02/01/49 |  |  | 525 |  |  |  | 818,444 |
|  |  |  |  |  |  | 1,995,281 |
Ohio — 5.4% |  |  |  |  |  |
Buckeye Tobacco Settlement Financing Authority, Refunding RB, Series B-2, Class 2, 5.00%, 06/01/55 |  |  | 7,625 |  |  |  | 8,360,126 |
Butler County Port Authority, RB(b) |  |  |  |  |  |  |  |
Series A-1, 6.38%, 01/15/43 |  |  | 675 |  |  |  | 596,855 |
Series A-1, 6.50%, 01/15/52 |  |  | 390 |  |  |  | 344,752 |
County of Franklin Ohio, RB |  |  |  |  |  |  |  |
Series A, 6.13%, 07/01/22(a) |  |  | 100 |  |  |  | 110,823 |
Series A, 6.13%, 07/01/40 |  |  | 1,590 |  |  |  | 1,672,664 |
County of Lucas Ohio, Refunding RB, Series A, 6.50%, 11/15/21(a) |  |  | 1,915 |  |  |  | 2,060,215 |
County of Montgomery Ohio, RB, 5.45%, 11/13/23(a) |  |  | 7,430 |  |  |  | 8,675,565 |
Ohio Air Quality Development Authority, RB, AMT, 5.00%, 07/01/49(b) |  |  | 1,385 |  |  |  | 1,405,983 |
Ohio Air Quality Development Authority, Refunding RB, 3.25%, 09/01/29 |  |  | 5,000 |  |  |  | 5,197,400 |
State of Ohio, Refunding RB, Series A, 4.00%, 01/15/50 |  |  | 4,420 |  |  |  | 4,892,454 |
|  |  |  |  |  |  | 33,316,837 |
Oklahoma — 0.4% |  |  |  |  |  |
Oklahoma Development Finance Authority, RB, Series B, 5.25%, 08/15/48 |  |  | 2,205 |  |  |  | 2,567,282 |

SCHEDULE OF INVESTMENTS |  | 59

Schedule of Investments (continued) August 31, 2020 |  | BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Oregon — 0.2% |  |  |  |  |  |
Oregon Health & Science University, RB, Series A, 5.00%, 07/01/42 |  | $ | 800 |  |  | $ | 968,352 |
Pennsylvania — 11.7% |  |  |  |  |  |
Allentown Neighborhood Improvement Zone Development Authority, RB, 5.00%, 05/01/42(b) |  |  | 1,725 |  |  |  | 1,771,109 |
Altoona Area School District, GO, (BAM), 5.00%, 12/01/36 |  |  | 365 |  |  |  | 434,620 |
City of Philadelphia Pennsylvania Water & Wastewater Revenue, RB, Series B, 5.00%, 11/01/49 |  |  | 6,030 |  |  |  | 7,506,807 |
County of Lehigh Pennsylvania, Refunding RB, Series A, 4.00%, 07/01/49 |  |  | 1,435 |  |  |  | 1,596,610 |
Geisinger Authority, Refunding RB, Series A, 4.00%, 04/01/50 |  |  | 6,495 |  |  |  | 7,370,331 |
Montgomery County Higher Education and Health Authority, Refunding RB |  |  |  |  |  |  |  |
4.00%, 09/01/49 |  |  | 6,750 |  |  |  | 7,447,883 |
Series A, 5.00%, 09/01/48 |  |  | 3,330 |  |  |  | 3,921,208 |
Montgomery County Industrial Development Authority, Refunding RB, 5.25%, 01/01/40 |  |  | 4,170 |  |  |  | 4,063,957 |
Northampton County General Purpose Authority, Refunding RB, 4.00%, 11/01/38 |  |  | 1,855 |  |  |  | 2,103,496 |
Pennsylvania Economic Development Financing Authority, RB, AMT, 5.00%, 12/31/38 |  |  | 2,565 |  |  |  | 2,886,035 |
Pennsylvania Housing Finance Agency, RB, S/F Housing, Series 125B, 3.65%, 10/01/42 |  |  | 7,000 |  |  |  | 7,511,140 |
Pennsylvania Turnpike Commission, RB |  |  |  |  |  |  |  |
Series A-1, 5.00%, 12/01/41 |  |  | 440 |  |  |  | 514,144 |
Sub-Series B-1, 5.25%, 06/01/47 |  |  | 5,680 |  |  |  | 6,687,575 |
Series A, Subordinate, 5.00%, 12/01/44 |  |  | 4,540 |  |  |  | 5,535,486 |
Pennsylvania Turnpike Commission, Refunding RB, 2nd Series, 5.00%, 12/01/41 |  |  | 1,700 |  |  |  | 2,034,135 |
Springfield School District/Delaware County, GO |  |  |  |  |  |  |  |
5.00%, 03/01/40 |  |  | 2,955 |  |  |  | 3,673,036 |
5.00%, 03/01/43 |  |  | 2,145 |  |  |  | 2,644,099 |
Westmoreland County Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/36 |  |  | 4,385 |  |  |  | 5,355,225 |
|  |  |  |  |  |  | 73,056,896 |
Puerto Rico — 5.8% |  |  |  |  |  |
Children’s Trust Fund, Refunding RB |  |  |  |  |  |  |  |
Asset-Backed Bonds, 5.50%, 05/15/39 |  |  | 1,340 |  |  |  | 1,341,099 |
Asset-Backed Bonds, 5.63%, 05/15/43 |  |  | 1,335 |  |  |  | 1,335,961 |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB, Series A, Senior Lien, 5.00%, 07/01/33 |  |  | 3,820 |  |  |  | 3,918,900 |
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB |  |  |  |  |  |  |  |
Series A, Senior Lien, 6.00%, 07/01/38 |  |  | 1,360 |  |  |  | 1,365,195 |
Series A, Senior Lien, 6.00%, 07/01/44 |  |  | 2,455 |  |  |  | 2,464,427 |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB |  |  |  |  |  |  |  |
Series A-1, Restructured, 4.75%, 07/01/53 |  |  | 3,376 |  |  |  | 3,533,727 |
Series A-1, Restructured, 5.00%, 07/01/58 |  |  | 12,657 |  |  |  | 13,475,402 |
Series A-2, Restructured, 4.33%, 07/01/40 |  |  | 2,240 |  |  |  | 2,331,728 |

Security |  | Par (000) |  |  | Value |
Puerto Rico (continued) |  |  |  |  |  |
Series A-2, Restructured, 4.78%, 07/01/58 |  | $ | 3,133 |  |  | $ | 3,298,704 |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(c) |  |  | 10,130 |  |  |  | 2,890,798 |
|  |  |  |  |  |  | 35,955,941 |
Rhode Island — 1.5% |  |  |  |  |  |
Rhode Island Turnpike & Bridge Authority, RB, Series A, 3.00%, 10/01/39 |  |  | 240 |  |  |  | 252,751 |
Tobacco Settlement Financing Corp., Refunding RB |  |  |  |  |  |  |  |
Series B, 4.50%, 06/01/45 |  |  | 6,820 |  |  |  | 7,140,404 |
Series B, 5.00%, 06/01/50 |  |  | 2,000 |  |  |  | 2,142,880 |
|  |  |  |  |  |  | 9,536,035 |
South Carolina — 1.8% |  |  |  |  |  |
South Carolina Jobs-Economic Development Authority, Refunding RB, Series A, 5.00%, 05/01/43 |  |  | 2,690 |  |  |  | 3,154,402 |
South Carolina Public Service Authority, RB, Series E, 5.50%, 12/01/53 |  |  | 750 |  |  |  | 839,782 |
South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55 |  |  | 6,450 |  |  |  | 7,492,578 |
|  |  |  |  |  |  | 11,486,762 |
Texas — 9.8% |  |  |  |  |  |
Central Texas Regional Mobility Authority, RB |  |  |  |  |  |  |  |
Series A, Senior Lien, 5.00%, 01/01/40 |  |  | 1,215 |  |  |  | 1,386,631 |
Series A, Senior Lien, 5.00%, 01/01/45 |  |  | 3,500 |  |  |  | 3,961,300 |
Central Texas Regional Mobility Authority, Refunding RB(a) |  |  |  |  |  |  |  |
Senior Lien, 5.75%, 01/01/21 |  |  | 1,000 |  |  |  | 1,018,270 |
Senior Lien, 6.00%, 01/01/21 |  |  | 4,300 |  |  |  | 4,382,259 |
Series A, Senior Lien, 5.00%, 01/01/23 |  |  | 6,925 |  |  |  | 7,459,333 |
City of Houston Texas Airport System Revenue, Refunding RB |  |  |  |  |  |  |  |
Series D, 5.00%, 07/01/37 |  |  | 4,005 |  |  |  | 4,888,703 |
AMT, 5.00%, 07/01/29 |  |  | 2,135 |  |  |  | 2,186,752 |
County of Nueces Texas, Refunding GO |  |  |  |  |  |  |  |
4.00%, 02/15/37 |  |  | 575 |  |  |  | 688,108 |
4.00%, 02/15/39 |  |  | 1,205 |  |  |  | 1,435,806 |
Harris County Cultural Education Facilities Finance Corp., RB, Series B, 7.00%, 01/01/23(a) |  |  | 850 |  |  |  | 983,170 |
Love Field Airport Modernization Corp., RB, 5.25%, 11/01/40 |  |  | 1,100 |  |  |  | 1,105,753 |
New Hope Cultural Education Facilities Finance Corp., RB |  |  |  |  |  |  |  |
Series A, 5.00%, 04/01/25(a) |  |  | 500 |  |  |  | 606,220 |
Series A, 5.00%, 08/15/37(b) |  |  | 2,000 |  |  |  | 2,013,840 |
North Texas Education Finance Corp., RB, Series A, 5.13%, 06/01/22(a) |  |  | 1,000 |  |  |  | 1,085,060 |
North Texas Tollway Authority, Refunding RB |  |  |  |  |  |  |  |
Series A, 5.00%, 01/01/38 |  |  | 5,000 |  |  |  | 5,732,600 |
Series A, 5.00%, 01/01/48 |  |  | 5,350 |  |  |  | 6,450,013 |
Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Series A-1, 5.00%, 10/01/44 |  |  | 3,500 |  |  |  | 3,577,210 |

60 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Texas (continued) |  |  |  |  |  |
Texas Private Activity Bond Surface Transportation Corp., RB |  |  |  |  |  |  |  |
AMT, 5.00%, 06/30/58 |  | $ | 3,575 |  |  | $ | 4,121,439 |
Senior Lien, 7.00%, 06/30/40 |  |  | 8,000 |  |  |  | 8,036,480 |
|  |  |  |  |  |  | 61,118,947 |
Virginia — 3.9% |
Ballston Quarter Community Development Authority, TA |  |  |  |  |  |  |  |
Series A, 5.38%, 03/01/36 |  |  | 430 |  |  |  | 425,666 |
Series A, 5.50%, 03/01/46 |  |  | 1,475 |  |  |  | 1,416,059 |
Tobacco Settlement Financing Corp., Refunding RB, Series B-1, 5.00%, 06/01/47 |  |  | 3,665 |  |  |  | 3,665,073 |
Virginia Small Business Financing Authority, RB |  |  |  |  |  |  |  |
AMT, 5.00%, 07/01/49 |  |  | 1,990 |  |  |  | 2,055,590 |
AMT, 5.00%, 12/31/52 |  |  | 7,895 |  |  |  | 8,845,242 |
AMT, Senior Lien, 5.50%, 01/01/42 |  |  | 5,140 |  |  |  | 5,472,712 |
Senior Lien, AMT, 6.00%, 01/01/37 |  |  | 2,150 |  |  |  | 2,319,012 |
|  |  |  |  |  |  | 24,199,354 |
Washington — 3.2% |
Port of Seattle Washington, RB |  |  |  |  |  |  |  |
Series A, AMT, 5.00%, 05/01/43 |  |  | 1,295 |  |  |  | 1,495,634 |
Series C, AMT, 5.00%, 05/01/37 |  |  | 4,905 |  |  |  | 5,742,136 |
State of Washington, COP |  |  |  |  |  |  |  |
Series B, 5.00%, 07/01/36 |  |  | 1,725 |  |  |  | 2,173,897 |
Series B, 5.00%, 07/01/38 |  |  | 2,300 |  |  |  | 2,886,753 |
Washington Health Care Facilities Authority, RB, |  |  |  |  |  |  |  |
Series A, 5.75%, 01/01/45 |  |  | 4,010 |  |  |  | 4,495,772 |
Washington Health Care Facilities Authority, Refunding |  |  |  |  |  |  |  |
RB, 4.00%, 09/01/45 |  |  | 3,000 |  |  |  | 3,420,600 |
|  |  |  |  |  |  | 20,214,792 |
Wisconsin — 1.7% |
Public Finance Authority, RB |  |  |  |  |  |  |  |
Series A, 4.00%, 11/15/37 |  |  | 325 |  |  |  | 355,950 |
Series A, 5.00%, 11/15/41 |  |  | 625 |  |  |  | 726,675 |
Public Finance Authority, Refunding RB, 5.00%, 11/15/49 |  |  | 1,095 |  |  |  | 1,165,529 |
Wisconsin Health & Educational Facilities Authority, Refunding RB |  |  |  |  |  |  |  |
5.00%, 04/01/44 |  |  | 4,080 |  |  |  | 4,984,291 |
4.00%, 12/15/49 |  |  | 3,220 |  |  |  | 3,610,779 |
|  |  |  |  |  |  | 10,843,224 |
Wyoming — 0.6% |
Wyoming Community Development Authority, Refunding RB, Series 2, 4.05%, 12/01/38 |  |  | 2,215 |  |  |  | 2,336,692 |
Wyoming Municipal Power Agency, Inc., Refunding RB, Series A, (BAM), 5.00%, 01/01/42 |  |  | 1,120 |  |  |  | 1,344,515 |
|  |  |  |  |  |  | 3,681,207 |
Total Municipal Bonds — 118.5% (Cost: $686,443,812) |  |  |  | 738,073,206 |

Security |  | Par (000) |  |  | Value |
Municipal Bonds Transferred to Tender Option Bond Trusts(e) |
California — 2.9% |
Sacramento Area Flood Control Agency, Refunding SAB, 5.00%, 10/01/47 |  | $ | 14,998 |  |  | $ | 18,029,545 |
Colorado(f) — 1.9% |
City & County of Denver Colorado Airport System Revenue, Refunding RB, Series A, AMT, 5.25%, 12/01/43 |  |  | 6,504 |  |  |  | 7,948,450 |
Colorado Health Facilities Authority, Refunding RB, Series A, 4.00%, 08/01/49 |  |  | 3,290 |  |  |  | 3,620,678 |
|  |  |  |  |  |  | 11,569,128 |
Florida — 4.2% |
County of Miami-Dade Florida Water & Sewer System Revenue, RB, (AGM), 5.00%, 10/01/20(a) |  |  | 14,747 |  |  |  | 14,803,189 |
Greater Orlando Aviation Authority, RB, Series A, AMT, 4.00%, 10/01/49 |  |  | 10,000 |  |  |  | 11,084,299 |
|  |  |  |  |  |  | 25,887,488 |
Illinois — 2.0% |
Illinois State Toll Highway Authority, RB, Series B, 5.00%, 01/01/40 |  |  | 10,976 |  |  |  | 12,800,956 |
Louisiana — 3.0% |
City of Shreveport Louisiana Water & Sewer Revenue, RB |  |  |  |  |  |  |  |
Series B, Junior Lien, (AGM), 4.00%, 12/01/44 |  |  | 5,542 |  |  |  | 6,284,913 |
Series B, Junior Lien, (AGM), 4.00%, 12/01/49 |  |  | 11,133 |  |  |  | 12,626,154 |
|  |  |  |  |  |  | 18,911,067 |
Maryland — 2.0% |
City of Baltimore Maryland, RB, Series A, 5.00%, 07/01/46 |  |  | 4,898 |  |  |  | 5,816,525 |
Maryland Stadium Authority, RB, 5.00%, 05/01/47 |  |  | 5,509 |  |  |  | 6,843,572 |
|  |  |  |  |  |  | 12,660,097 |
Michigan(f) — 2.5% |
Michigan Finance Authority, RB |  |  |  |  |  |  |  |
4.00%, 02/15/47 |  |  | 7,434 |  |  |  | 8,396,765 |
Series A, 4.00%, 02/15/44 |  |  | 6,646 |  |  |  | 7,506,581 |
|  |  |  |  |  |  | 15,903,346 |
New York — 1.7% |
New York Liberty Development Corp., Refunding RB, 5.75%, 11/15/51(f) |  |  | 10,001 |  |  |  | 10,549,475 |
Oregon — 0.2% |
State of Oregon Housing & Community Services Department, RB, M/F Housing, Series A, AMT, 4.95%, 07/01/30 |  |  | 1,199 |  |  |  | 1,202,285 |
Pennsylvania — 3.9% |
Commonwealth of Pennsylvania, GO, 1st Series, 4.00%, 03/01/38(f) |  |  | 7,250 |  |  |  | 8,416,308 |
County of Lehigh Pennsylvania, Refunding RB, Series A, 4.00%, 07/01/49(f) |  |  | 10,009 |  |  |  | 11,136,215 |
Westmoreland County Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/38 |  |  | 3,925 |  |  |  | 4,578,552 |
|  |  |  |  |  |  | 24,131,075 |

SCHEDULES OF INVESTMENTS |  | 61

Schedule of Investments (continued) August 31, 2020 |  | BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets)

Security |  | Par (000) |  |  | Value |
Texas — 3.9% |
Harris County Health Facilities Development Corp, Refunding RB, Series B, 5.75%, 07/01/27(g) |  | $ | 19,090 |  |  | $ | 24,043,645 |
Virginia — 1.3% |
Fairfax County Economic Development Authority, RB, 5.00%, 04/01/47(f) |  | $ | 6,960 |  |  | $ | 8,228,460 |
Washington — 2.1% |
Washington Health Care Facilities Authority, Refunding RB, Series A, 5.00%, 10/01/38 |  |  | 10,000 |  |  |  | 12,834,700 |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 31.6% (Cost: $180,501,678) |  |  |  | 196,751,267 |
Total Long-Term Investments — 150.1% (Cost: $866,945,490) |  |  |  | 934,824,473 |
|  | Shares |  |  |  |
Short-Term Securities |
Money Market Funds — 3.5% |
BlackRock Liquidity Funds, MuniCash, Institutional |  |  |  |  |  |  |  |
Class, 0.01%(h)(i) |  |  | 21,827,286 |  |  |  | 21,831,651 |
Total Short-Term Securities — 3.5% (Cost: $21,831,070) |  |  |  | 21,831,651 |
Total Investments — 153.6% (Cost: $888,776,560) |  |  |  | 956,656,124 |
Other Assets Less Liabilities — 1.1% |  |  |  | 7,236,747 |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (15.6)% |  |  |  | (97,343,333 | )
VMTP Shares at Liquidation Value — (39.1)% |  |  |  | (243,800,000 | )
Net Assets Applicable to Common Shares — 100.0% |  |  | $ | 622,749,538 |

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

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

(c) | Zero-coupon bond.

(d) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

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

(f) | All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between May 15, 2021 to August 1, 2027, is $32,066,619. See Note 4 of the Notes to Financial Statements for details.

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

(h) | Affiliate of the Trust.

(i) | Annualized 7-day yield as of period end.

Affiliates

Investments in issuers considered to be an affiliate of the Trust during the year ended August 31, 2020, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliated Issuer |  | Value at 08/31/19 |  |  | Purchases at Cost |  |  | Proceeds from Sales |  |  | Net Realized Gain (Loss) |  |  | Change in Unrealized Appreciation (Depreciation) |  |  | Value at 08/31/20 |  |  | Shares Held at 08/31/20 |  |  | Income |  |  | Capital Gain Distributions from Underlying Funds |
BlackRock Liquidity Funds, MuniCash, Institutional Class |  | $ | 16,625,304 |  |  | $ | 5,206,101 | (a) |  | $ | — |  |  | $ | (1,996 | ) |  | $ | 2,242 |  |  | $ | 21,831,651 |  |  |  | 21,827,286 |  |  | $ | 43,051 |  |  | $ | — |

| (a) | Represents net amount purchased (sold). |

62 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued) August 31, 2020 |  | BlackRock MuniVest Fund, Inc. (MVF)

Derivative Financial Instruments Categorized by Risk Exposure

For the year ended August 31, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

|  | Commodity Contracts |  |  | Credit Contracts |  |  | Equity Contracts |  |  | Foreign Currency Exchange Contracts |  |  | Interest Rate Contracts |  |  | Other Contracts |  |  | Total |
Net Realized Gain (Loss) from |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Futures contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (5,956,626 | ) |  | $ | — |  |  | $ | (5,956,626 | )
Net Change in Unrealized Appreciation (Depreciation) on |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Futures contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 58,046 |  |  | $ | — |  |  | $ | 58,046 |

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts |  |  |  |
Average notional value of contracts — long |  | $ | — | (a)
Average notional value of contracts — short |  | $ | 25,834,785 |

| (a) | Derivative not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period. |

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

Fair Value Hierarchy as of Period End

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

The following table summarizes the Trust’s investments categorized in the disclosure hierarchy. The breakdown of the Trust’s investments into major categories is disclosed in the Schedule of Investments above.

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-Term Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds |  | $ | — |  |  | $ | 738,073,206 |  |  | $ | — |  |  | $ | 738,073,206 |
Municipal Bonds Transferred to Tender Option Bond Trusts |  |  | — |  |  |  | 196,751,267 |  |  |  | — |  |  |  | 196,751,267 |
Short-Term Securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money Market Funds |  |  | 21,831,651 |  |  |  | — |  |  |  | — |  |  |  | 21,831,651 |
|  | $ | 21,831,651 |  |  | $ | 934,824,473 |  |  | $ | — |  |  | $ | 956,656,124 |

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

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOB Trust Certificates |  | $ | — |  |  | $ | (97,265,521 | ) |  | $ | — |  |  | $ | (97,265,521 | )
VMTP Shares at Liquidation Value |  |  | — |  |  |  | (243,800,000 | ) |  |  | — |  |  |  | (243,800,000 | )
|  | $ | — |  |  | $ | (341,065,521 | ) |  | $ | — |  |  | $ | (341,065,521 | )

See notes to financial statements.

SCHEDULES OF INVESTMENTS |  | 63

Statement of Assets and Liabilities

August 31, 2020

|  | BBK |  |  | BAF |  |  | BYM |  |  | BLE |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments at value — unaffiliated(a) |  | $ | 281,511,068 |  |  | $ | 223,328,722 |  |  | $ | 664,918,570 |  |  | $ | 555,109,820 |
Investments at value — affiliated(b) |  |  | 4,209,786 |  |  |  | 335,474 |  |  |  | 466,483 |  |  |  | 14,396,675 |
Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments sold |  |  | 100,986 |  |  |  | 402,415 |  |  |  | 227,222 |  |  |  | — |
Dividends — affiliated |  |  | 49 |  |  |  | 4 |  |  |  | 10 |  |  |  | 127 |
Interest — unaffiliated |  |  | 2,730,283 |  |  |  | 2,328,522 |  |  |  | 6,542,810 |  |  |  | 6,069,450 |
Prepaid expenses |  |  | 28,950 |  |  |  | 28,892 |  |  |  | 29,452 |  |  |  | 29,204 |
Total assets |  |  | 288,581,122 |  |  |  | 226,424,029 |  |  |  | 672,184,547 |  |  |  | 575,605,276 |
ACCRUED LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bank overdraft |  |  | 150,214 |  |  |  | 114,978 |  |  |  | 325,370 |  |  |  | 279,236 |
Payables: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments purchased |  |  | — |  |  |  | 207,155 |  |  |  | 621,464 |  |  |  | — |
Income dividend distributions — Common Shares |  |  | 641,900 |  |  |  | 503,092 |  |  |  | 1,267,501 |  |  |  | 1,413,168 |
Interest expense and fees |  |  | 15,100 |  |  |  | 37,683 |  |  |  | 109,308 |  |  |  | 57,509 |
Investment advisory fees |  |  | 140,621 |  |  |  | 105,677 |  |  |  | 314,022 |  |  |  | 268,099 |
Trustees’ and Officer’s fees |  |  | 32,102 |  |  |  | 23,617 |  |  |  | 74,283 |  |  |  | 67,152 |
Other accrued expenses |  |  | 87,949 |  |  |  | 81,535 |  |  |  | 104,870 |  |  |  | 104,749 |
Reorganization costs |  |  | 91,881 |  |  |  | 84,864 |  |  |  | — |  |  |  | 24,127 |
Total accrued liabilities |  |  | 1,159,767 |  |  |  | 1,158,601 |  |  |  | 2,816,818 |  |  |  | 2,214,040 |
OTHER LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOB Trust Certificates |  |  | 34,682,946 |  |  |  | 49,539,022 |  |  |  | 121,029,335 |  |  |  | 73,763,358 |
VMTP Shares, at liquidation value of $100,000 per share(c)(d)(e) |  |  | 79,900,000 |  |  |  | 42,200,000 |  |  |  | 137,200,000 |  |  |  | 151,300,000 |
Total other liabilities |  |  | 114,582,946 |  |  |  | 91,739,022 |  |  |  | 258,229,335 |  |  |  | 225,063,358 |
Total liabilities |  |  | 115,742,713 |  |  |  | 92,897,623 |  |  |  | 261,046,153 |  |  |  | 227,277,398 |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |  | $ | 172,838,409 |  |  | $ | 133,526,406 |  |  | $ | 411,138,394 |  |  | $ | 348,327,878 |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Paid-in capital(f)(g)(h) |  | $ | 149,453,050 |  |  | $ | 123,934,510 |  |  | $ | 362,795,037 |  |  | $ | 325,263,339 |
Accumulated earnings |  |  | 23,385,359 |  |  |  | 9,591,896 |  |  |  | 48,343,357 |  |  |  | 23,064,539 |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |  | $ | 172,838,409 |  |  | $ | 133,526,406 |  |  | $ | 411,138,394 |  |  | $ | 348,327,878 |
Net asset value per Common Share |  | $ | 16.42 |  |  | $ | 15.26 |  |  | $ | 15.57 |  |  | $ | 14.79 |
(a)Investments at cost — unaffiliated |  | $ | 255,984,040 |  |  | $ | 207,685,577 |  |  | $ | 603,312,531 |  |  | $ | 521,117,887 |
(b)Investments at cost — affiliated |  | $ | 4,209,942 |  |  | $ | 335,474 |  |  | $ | 466,483 |  |  | $ | 14,396,244 |
(c)Preferred Shares outstanding |  |  | 799 |  |  |  | 422 |  |  |  | 1,372 |  |  |  | 1,513 |
(d)Preferred Shares authorized |  |  | Unlimited |  |  |  | Unlimited |  |  |  | Unlimited |  |  |  | Unlimited |
(e)Par value per Preferred Share |  | $ | 0.001 |  |  | $ | 0.001 |  |  | $ | 0.001 |  |  | $ | 0.001 |
(f)Common Shares outstanding |  |  | 10,522,957 |  |  |  | 8,749,418 |  |  |  | 26,406,273 |  |  |  | 23,552,797 |
(g)Common Shares authorized |  |  | Unlimited |  |  |  | Unlimited |  |  |  | Unlimited |  |  |  | Unlimited |
(h)Par value per Common Share |  | $ | 0.001 |  |  | $ | 0.001 |  |  | $ | 0.001 |  |  | $ | 0.001 |

See notes to financial statements.

64 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Statement of Assets and Liabilities (continued)

August 31, 2020

|  | MFL |  |  | MVF |
ASSETS |  |  |  |  |  |  |  |
Investments at value — unaffiliated(a) |  | $ | 901,369,636 |  |  | $ | 934,824,473 |
Investments at value — affiliated(b) |  |  | 17,313,007 |  |  |  | 21,831,651 |
Receivables: |  |  |  |  |  |  |  |
Investments sold |  |  | 25,000 |  |  |  | — |
Dividends — affiliated |  |  | 220 |  |  |  | 190 |
Interest — unaffiliated |  |  | 9,918,820 |  |  |  | 10,510,262 |
Prepaid expenses |  |  | 32,989 |  |  |  | 34,032 |
Total assets |  |  | 928,659,672 |  |  |  | 967,200,608 |
ACCRUED LIABILITIES |  |  |  |  |  |  |  |
Bank overdraft |  |  | 415,215 |  |  |  | 425,003 |
Payables: |  |  |  |  |  |  |  |
Investments purchased |  |  | 858,934 |  |  |  | — |
Income dividend distributions — Common Shares |  |  | 1,724,277 |  |  |  | 2,172,019 |
Interest expense and fees |  |  | 68,455 |  |  |  | 77,812 |
Investment advisory fees |  |  | 403,607 |  |  |  | 409,671 |
Trustees’ and Officer’s fees |  |  | 317,178 |  |  |  | 138,677 |
Other accrued expenses |  |  | 161,828 |  |  |  | 162,367 |
Total accrued liabilities |  |  | 3,949,494 |  |  |  | 3,385,549 |
OTHER LIABILITIES |  |  |  |  |  |  |  |
TOB Trust Certificates |  |  | 91,534,330 |  |  |  | 97,265,521 |
VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs(c)(d)(e) |  |  | 274,247,069 |  |  |  | — |
VMTP Shares, at liquidation value of $100,000 per share(c)(d)(e) |  |  | — |  |  |  | 243,800,000 |
Total other liabilities |  |  | 365,781,399 |  |  |  | 341,065,521 |
Total liabilities |  |  | 369,730,893 |  |  |  | 344,451,070 |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |  | $ | 558,928,779 |  |  | $ | 622,749,538 |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF |  |  |  |  |  |  |  |
Paid-in capital(f)(g)(h) |  | $ | 513,557,353 |  |  | $ | 577,197,773 |
Accumulated earnings |  |  | 45,371,426 |  |  |  | 45,551,765 |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |  | $ | 558,928,779 |  |  | $ | 622,749,538 |
Net asset value per Common Share |  | $ | 14.75 |  |  | $ | 9.60 |
(a)Investments at cost — unaffiliated |  | $ | 846,281,193 |  |  | $ | 866,945,490 |
(b)Investments at cost — affiliated |  | $ | 17,313,007 |  |  | $ | 21,831,070 |
(c)Preferred Shares outstanding |  |  | 2,746 |  |  |  | 2,438 |
(d)Preferred Shares authorized |  |  | 1,000,000 |  |  |  | 10,000,000 |
(e)Par value per Preferred Share |  | $ | 0.10 |  |  | $ | 0.10 |
(f)Common Shares outstanding |  |  | 37,896,208 |  |  |  | 64,836,371 |
(g)Common Shares authorized |  |  | Unlimited |  |  |  | 150,000,000 |
(h)Par value per Common Share |  | $ | 0.10 |  |  | $ | 0.10 |

See notes to financial statements.

FINANCIAL STATEMENTS |  | 65

Statement of Operations

August 31, 2020

|  | BBK |  |  | BAF |  |  | BYM |  |  | BLE |
INVESTMENT INCOME |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dividends — affiliated |  | $ | 9,159 |  |  | $ | 2,723 |  |  | $ | 24,799 |  |  | $ | 49,440 |
Interest — unaffiliated |  |  | 11,523,362 |  |  |  | 8,985,232 |  |  |  | 25,588,319 |  |  |  | 24,001,917 |
Total investment income |  |  | 11,532,521 |  |  |  | 8,987,955 |  |  |  | 25,613,118 |  |  |  | 24,051,357 |
EXPENSES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment advisory |  |  | 1,849,215 |  |  |  | 1,251,032 |  |  |  | 3,654,002 |  |  |  | 3,097,978 |
Reorganization |  |  | 92,138 |  |  |  | 85,121 |  |  |  | — |  |  |  | 115,913 |
Professional |  |  | 58,206 |  |  |  | 55,218 |  |  |  | 78,660 |  |  |  | 75,475 |
Accounting services |  |  | 57,682 |  |  |  | 50,672 |  |  |  | 70,871 |  |  |  | 70,870 |
Rating agency |  |  | 47,551 |  |  |  | 47,551 |  |  |  | 47,551 |  |  |  | 47,551 |
Transfer agent |  |  | 24,745 |  |  |  | 21,123 |  |  |  | 40,779 |  |  |  | 36,179 |
Trustees and Officer |  |  | 13,255 |  |  |  | 10,574 |  |  |  | 29,163 |  |  |  | 25,205 |
Custodian |  |  | 10,164 |  |  |  | 13,332 |  |  |  | 9,655 |  |  |  | 7,006 |
Registration |  |  | 8,841 |  |  |  | 8,841 |  |  |  | 9,571 |  |  |  | 8,703 |
Printing and postage |  |  | 5,097 |  |  |  | 4,492 |  |  |  | 8,195 |  |  |  | 6,295 |
Miscellaneous |  |  | 8,937 |  |  |  | 8,575 |  |  |  | 10,770 |  |  |  | 10,378 |
Total expenses excluding interest expense, fees and amortization of offering costs |  |  | 2,175,831 |  |  |  | 1,556,531 |  |  |  | 3,959,217 |  |  |  | 3,501,553 |
Interest expense, fees and amortization of offering costs(a) |  |  | 1,837,877 |  |  |  | 1,547,952 |  |  |  | 4,216,717 |  |  |  | 3,518,123 |
Total expenses |  |  | 4,013,708 |  |  |  | 3,104,483 |  |  |  | 8,175,934 |  |  |  | 7,019,676 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fees waived and/or reimbursed by the Manager |  |  | (214,806 | ) |  |  | (277 | ) |  |  | (2,352 | ) |  |  | (98,739 | )
Total expenses after fees waived and/or reimbursed |  |  | 3,798,902 |  |  |  | 3,104,206 |  |  |  | 8,173,582 |  |  |  | 6,920,937 |
Net investment income |  |  | 7,733,619 |  |  |  | 5,883,749 |  |  |  | 17,439,536 |  |  |  | 17,130,420 |
REALIZED AND UNREALIZED GAIN (LOSS) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net realized gain (loss) from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments — unaffiliated |  |  | 297,287 |  |  |  | (288,144 | ) |  |  | (229,997 | ) |  |  | 635,837 |
Investments — affiliated |  |  | 2,024 |  |  |  | 569 |  |  |  | 6,475 |  |  |  | 639 |
Futures contracts |  |  | (1,677,947 | ) |  |  | (1,387,561 | ) |  |  | (3,747,680 | ) |  |  | (2,426,704 | )
|  |  | (1,378,636 | ) |  |  | (1,675,136 | ) |  |  | (3,971,202 | ) |  |  | (1,790,228 | )
Net change in unrealized appreciation (depreciation) on: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments — unaffiliated |  |  | (3,446,008 | ) |  |  | (2,366,775 | ) |  |  | (2,328,413 | ) |  |  | (7,486,686 | )
Investments — affiliated |  |  | (156 | ) |  |  | — |  |  |  | — |  |  |  | 965 |
Futures contracts |  |  | 34,381 |  |  |  | 23,686 |  |  |  | 81,009 |  |  |  | 50,091 |
|  |  | (3,411,783 | ) |  |  | (2,343,089 | ) |  |  | (2,247,404 | ) |  |  | (7,435,630 | )
Net realized and unrealized loss |  |  | (4,790,419 | ) |  |  | (4,018,225 | ) |  |  | (6,218,606 | ) |  |  | (9,225,858 | )
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS |  | $ | 2,943,200 |  |  | $ | 1,865,524 |  |  | $ | 11,220,930 |  |  | $ | 7,904,562 |

(a) | Related to TOB Trusts, VMTP Shares and/or VRDP Shares.

See notes to financial statements.

66 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Statement of Operations (continued)

August 31, 2020

|  | MFL |  |  | MVF |
INVESTMENT INCOME |  |  |  |  |  |  |  |
Dividends — affiliated |  | $ | 76,558 |  |  | $ | 43,051 |
Interest — unaffiliated |  |  | 33,021,205 |  |  |  | 38,469,514 |
Total investment income |  |  | 33,097,763 |  |  |  | 38,512,565 |
EXPENSES |  |  |  |  |  |  |  |
Investment advisory |  |  | 5,072,314 |  |  |  | 4,793,441 |
Accounting services |  |  | 130,720 |  |  |  | 134,786 |
Professional |  |  | 110,224 |  |  |  | 105,036 |
Trustees and Officer |  |  | 50,303 |  |  |  | 45,525 |
Transfer agent |  |  | 48,631 |  |  |  | 54,504 |
Rating agency |  |  | 47,551 |  |  |  | 47,551 |
Liquidity fees |  |  | 28,045 |  |  |  | — |
Remarketing fees on Preferred Shares |  |  | 27,535 |  |  |  | — |
Registration |  |  | 13,736 |  |  |  | 23,000 |
Custodian |  |  | 12,833 |  |  |  | 10,717 |
Printing and postage |  |  | 8,305 |  |  |  | 9,629 |
Miscellaneous |  |  | 11,953 |  |  |  | 14,603 |
Total expenses excluding interest expense, fees and amortization of offering costs |  |  | 5,562,150 |  |  |  | 5,238,792 |
Interest expense, fees and amortization of offering costs(a) |  |  | 6,486,698 |  |  |  | 5,670,069 |
Total expenses |  |  | 12,048,848 |  |  |  | 10,908,861 |
Less: |  |  |  |  |  |  |  |
Fees waived and/or reimbursed by the Manager |  |  | (418,726 | ) |  |  | (7,144 | )
Total expenses after fees waived and/or reimbursed |  |  | 11,630,122 |  |  |  | 10,901,717 |
Net investment income |  |  | 21,467,641 |  |  |  | 27,610,848 |
REALIZED AND UNREALIZED GAIN (LOSS) |  |  |  |  |  |  |  |
Net realized gain (loss) from: |  |  |  |  |  |  |  |
Investments — unaffiliated |  |  | 5,603,226 |  |  |  | (1,504,820 | )
Investments — affiliated |  |  | 9,842 |  |  |  | (1,996 | )
Futures contracts |  |  | (4,942,557 | ) |  |  | (5,956,626 | )
|  |  | 670,511 |  |  |  | (7,463,442 | )
Net change in unrealized appreciation (depreciation) on: |  |  |  |  |  |  |  |
Investments — unaffiliated |  |  | (8,968,537 | ) |  |  | (8,484,078 | )
Investments — affiliated |  |  | 5 |  |  |  | 2,242 |
Futures contracts |  |  | 109,416 |  |  |  | 58,046 |
|  |  | (8,859,116 | ) |  |  | (8,423,790 | )
Net realized and unrealized loss |  |  | (8,188,605 | ) |  |  | (15,887,232 | )
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS |  | $ | 13,279,036 |  |  | $ | 11,723,616 |

(a) | Related to TOB Trusts, VMTP Shares and/or VRDP Shares.

See notes to financial statements.

FINANCIAL STATEMENTS |  | 67

Statement of Changes in Net Assets

|  | BBK |  |  |  |  |  | BAF |
|  | Year Ended August 31, |  |  |  |  |  | Year Ended August 31, |
|  | 2020 |  |  | 2019 |  |  |  |  |  | 2020 |  |  | 2019 |
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OPERATIONS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  | $ | 7,733,619 |  |  | $ | 6,872,366 |  |  |  |  |  |  | $ | 5,883,749 |  |  | $ | 5,709,453 |
Net realized loss |  |  | (1,378,636 | ) |  |  | (1,811,757 | ) |  |  |  |  |  |  | (1,675,136 | ) |  |  | (922,047 | )
Net change in unrealized appreciation (depreciation) |  |  | (3,411,783 | ) |  |  | 13,838,815 |  |  |  |  |  |  |  | (2,343,089 | ) |  |  | 8,435,693 |
Net increase in net assets applicable to Common Shareholders resulting from operations |  |  | 2,943,200 |  |  |  | 18,899,424 |  |  |  |  |  |  |  | 1,865,524 |  |  |  | 13,223,099 |
DISTRIBUTIONS TO COMMON SHAREHOLDERS(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Decrease in net assets resulting from distributions to Common Shareholders |  |  | (7,134,565 | ) |  |  | (7,948,273 | ) |  |  |  |  |  |  | (5,564,630 | ) |  |  | (6,019,600 | )
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total increase (decrease) in net assets applicable to Common Shareholders |  |  | (4,191,365 | ) |  |  | 10,951,151 |  |  |  |  |  |  |  | (3,699,106 | ) |  |  | 7,203,499 |
Beginning of year |  |  | 177,029,774 |  |  |  | 166,078,623 |  |  |  |  |  |  |  | 137,225,512 |  |  |  | 130,022,013 |
End of year |  | $ | 172,838,409 |  |  | $ | 177,029,774 |  |  |  |  |  |  | $ | 133,526,406 |  |  | $ | 137,225,512 |

(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

68 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Statement of Changes in Net Assets (continued)

|  | BYM |  |  |  |  |  | BLE |
|  | Year Ended August 31, |  |  |  |  |  | Year Ended August 31, |
|  | 2020 |  |  | 2019 |  |  |  |  |  | 2020 |  |  | 2019 |
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OPERATIONS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  | $ | 17,439,536 |  |  | $ | 16,163,564 |  |  |  |  |  |  | $ | 17,130,420 |  |  | $ | 16,652,798 |
Net realized loss |  |  | (3,971,202 | ) |  |  | (4,197,389 | ) |  |  |  |  |  |  | (1,790,228 | ) |  |  | (2,843,168 | )
Net change in unrealized appreciation (depreciation) |  |  | (2,247,404 | ) |  |  | 31,612,385 |  |  |  |  |  |  |  | (7,435,630 | ) |  |  | 16,739,939 |
Net increase in net assets applicable to Common Shareholders resulting from operations |  |  | 11,220,930 |  |  |  | 43,578,560 |  |  |  |  |  |  |  | 7,904,562 |  |  |  | 30,549,569 |
DISTRIBUTIONS TO COMMON SHAREHOLDERS(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Decrease in net assets resulting from distributions to Common Shareholders |  |  | (15,210,013 | ) |  |  | (16,599,960 | ) |  |  |  |  |  |  | (16,527,555 | ) |  |  | (16,376,933 | )
CAPITAL SHARE TRANSACTIONS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Reinvestment of common distributions |  |  | — |  |  |  | — |  |  |  |  |  |  |  | 302,128 |  |  |  | 38,608 |
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total increase (decrease) in net assets applicable to Common Shareholders |  |  | (3,989,083 | ) |  |  | 26,978,600 |  |  |  |  |  |  |  | (8,320,865 | ) |  |  | 14,211,244 |
Beginning of year |  |  | 415,127,477 |  |  |  | 388,148,877 |  |  |  |  |  |  |  | 356,648,743 |  |  |  | 342,437,499 |
End of year |  | $ | 411,138,394 |  |  | $ | 415,127,477 |  |  |  |  |  |  | $ | 348,327,878 |  |  | $ | 356,648,743 |

(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

FINANCIAL STATEMENTS |  | 69

Statement of Changes in Net Assets (continued)

|  | MFL |  |  |  |  |  | MVF |
|  | Year Ended August 31, |  |  |  |  |  | Year Ended August 31, |
|  | 2020 |  |  | 2019 |  |  |  |  |  | 2020 |  |  | 2019 |
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OPERATIONS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  | $ | 21,467,641 |  |  | $ | 22,233,643 |  |  |  |  |  |  | $ | 27,610,848 |  |  | $ | 28,718,159 |
Net realized gain (loss) |  |  | 670,511 |  |  |  | 2,226,310 |  |  |  |  |  |  |  | (7,463,442 | ) |  |  | (4,769,186 | )
Net change in unrealized appreciation (depreciation) |  |  | (8,859,116 | ) |  |  | 32,059,502 |  |  |  |  |  |  |  | (8,423,790 | ) |  |  | 37,783,965 |
Net increase in net assets applicable to Common Shareholders resulting from operations |  |  | 13,279,036 |  |  |  | 56,519,455 |  |  |  |  |  |  |  | 11,723,616 |  |  |  | 61,732,938 |
DISTRIBUTIONS TO COMMON SHAREHOLDERS(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Decrease in net assets resulting from distributions to Common Shareholders |  |  | (20,691,330 | ) |  |  | (24,253,573 | ) |  |  |  |  |  |  | (26,610,402 | ) |  |  | (30,068,516 | )
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total increase (decrease) in net assets applicable to Common Shareholders |  |  | (7,412,294 | ) |  |  | 32,265,882 |  |  |  |  |  |  |  | (14,886,786 | ) |  |  | 31,664,422 |
Beginning of year |  |  | 566,341,073 |  |  |  | 534,075,191 |  |  |  |  |  |  |  | 637,636,324 |  |  |  | 605,971,902 |
End of year |  | $ | 558,928,779 |  |  | $ | 566,341,073 |  |  |  |  |  |  | $ | 622,749,538 |  |  | $ | 637,636,324 |

(a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

70 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Statement of Cash Flows

Year Ended August 31, 2020

|  | BBK |  |  | BAF |  |  | BYM |  |  | BLE |
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net increase in net assets resulting from operations |  | $ | 2,943,200 |  |  | $ | 1,865,524 |  |  | $ | 11,220,930 |  |  | $ | 7,904,562 |
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 |  |  | 31,354,824 |  |  |  | 64,966,831 |  |  |  | 85,930,929 |  |  |  | 105,183,965 |
Purchases of long-term investments |  |  | (32,186,037 | ) |  |  | (60,894,798 | ) |  |  | (88,785,922 | ) |  |  | (112,680,396 | )
Net proceeds from sales (purchases) of short-term securities |  |  | (4,200,116 | ) |  |  | 132,110 |  |  |  | 512,047 |  |  |  | (7,283,422 | )
Amortization of premium and accretion of discount on investments and other fees |  |  | (4,986 | ) |  |  | 1,099,178 |  |  |  | 861,415 |  |  |  | 1,211,837 |
Net realized (gain) loss on investments |  |  | (299,311 | ) |  |  | 287,575 |  |  |  | 223,522 |  |  |  | (636,476 | )
Net unrealized depreciation on investments |  |  | 3,446,164 |  |  |  | 2,366,775 |  |  |  | 2,328,413 |  |  |  | 7,485,721 |
(Increase) Decrease in Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Receivables |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dividends — affiliated |  |  | 261 |  |  |  | 681 |  |  |  | 1,274 |  |  |  | 8,389 |
Interest — unaffiliated |  |  | 148,367 |  |  |  | (601 | ) |  |  | 167,022 |  |  |  | 349,645 |
Prepaid expenses |  |  | (1,609 | ) |  |  | (1,692 | ) |  |  | (1,054 | ) |  |  | (1,355 | )
Increase (Decrease) in Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payables |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense and fees |  |  | (61,444 | ) |  |  | (142,125 | ) |  |  | (376,098 | ) |  |  | (201,010 | )
Investment advisory fees |  |  | 1,928 |  |  |  | (2,794 | ) |  |  | 2,189 |  |  |  | 3,725 |
Trustees’ and Officer’s fees |  |  | 642 |  |  |  | 476 |  |  |  | 1,551 |  |  |  | 1,345 |
Other accrued expenses |  |  | (38,104 | ) |  |  | (30,169 | ) |  |  | (61,717 | ) |  |  | (49,205 | )
Reorganization costs |  |  | 91,881 |  |  |  | 84,864 |  |  |  | — |  |  |  | 24,127 |
Variation margin on futures contracts |  |  | (3,938 | ) |  |  | (2,344 | ) |  |  | (11,531 | ) |  |  | (4,875 | )
Net cash provided by operating activities |  |  | 1,191,722 |  |  |  | 9,729,491 |  |  |  | 12,012,970 |  |  |  | 1,316,577 |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash dividends paid to Common Shareholders |  |  | (7,066,166 | ) |  |  | (5,512,133 | ) |  |  | (15,210,013 | ) |  |  | (16,177,141 | )
Repayments of TOB Trust Certificates |  |  | (3,071,554 | ) |  |  | (9,307,045 | ) |  |  | (43,408,847 | ) |  |  | (16,931,810 | )
Repayments of Loan for TOB Trust Certificates |  |  | (3,071,511 | ) |  |  | (1,490,669 | ) |  |  | (32,925,825 | ) |  |  | (9,546,780 | )
Proceeds from TOB Trust Certificates |  |  | 8,560,234 |  |  |  | 4,816,518 |  |  |  | 45,712,641 |  |  |  | 31,176,299 |
Proceeds from Loan for TOB Trust Certificates |  |  | 3,071,511 |  |  |  | 1,490,669 |  |  |  | 32,925,825 |  |  |  | 9,546,780 |
Increase in bank overdraft |  |  | 150,214 |  |  |  | 114,978 |  |  |  | 325,370 |  |  |  | 279,236 |
Net cash used for financing activities |  |  | (1,427,272 | ) |  |  | (9,887,682 | ) |  |  | (12,580,849 | ) |  |  | (1,653,416 | )
CASH |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net decrease in restricted and unrestricted cash |  |  | (235,550 | ) |  |  | (158,191 | ) |  |  | (567,879 | ) |  |  | (336,839 | )
Restricted and unrestricted cash at beginning of year |  |  | 235,550 |  |  |  | 158,191 |  |  |  | 567,879 |  |  |  | 336,839 |
Restricted and unrestricted cash at end of year |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
SUPPLEMENTAL DISCLOSURE OFCASH FLOW INFORMATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash paid during the year for interest expense |  | $ | 1,899,321 |  |  | $ | 1,690,077 |  |  | $ | 4,592,815 |  |  | $ | 3,719,133 |
NON-CASH FINANCING ACTIVITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital shares issued in reinvestment of distributions paid to Common Shareholders |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 302,128 |
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF YEAR TO THE STATEMENTS OF ASSETS AND LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash |  | $ | 54,500 |  |  | $ | 36,391 |  |  | $ | 130,829 |  |  | $ | 78,039 |
Cash pledged |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Futures contracts |  |  | 181,050 |  |  |  | 121,800 |  |  |  | 437,050 |  |  |  | 258,800 |
|  | $ | 235,550 |  |  | $ | 158,191 |  |  | $ | 567,879 |  |  | $ | 336,839 |

See notes to financial statements.

FINANCIAL STATEMENTS |  | 71

Statement of Cash Flows (continued)

Year Ended August 31, 2020

|  | MFL |  |  | MVF |
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES |  |  |  |  |  |  |  |
Net increase in net assets resulting from operations |  | $ | 13,279,036 |  |  | $ | 11,723,616 |
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 |  |  | 422,259,284 |  |  |  | 176,870,287 |
Purchases of long-term investments |  |  | (407,604,492 | ) |  |  | (167,535,704 | )
Net proceeds from purchases of short-term securities |  |  | (14,047,067 | ) |  |  | (5,206,101 | )
Amortization of premium and accretion of discount on investments and other fees |  |  | 6,894,298 |  |  |  | 3,823,863 |
Net realized (gain) loss on investments |  |  | (5,613,068 | ) |  |  | 1,506,816 |
Net unrealized depreciation on investments |  |  | 8,968,532 |  |  |  | 8,481,836 |
(Increase) Decrease in Assets |  |  |  |  |  |  |  |
Receivables |  |  |  |  |  |  |  |
Dividends — affiliated |  |  | 3,254 |  |  |  | 16,071 |
Interest — unaffiliated |  |  | 187,106 |  |  |  | (115,718 | )
Prepaid expenses |  |  | (2,627 | ) |  |  | (542 | )
Increase (Decrease) in Liabilities |  |  |  |  |  |  |  |
Payables |  |  |  |  |  |  |  |
Interest expense and fees |  |  | (272,355 | ) |  |  | (345,453 | )
Investment advisory fees |  |  | (903 | ) |  |  | (3,914 | )
Trustees’ and Officer’s fees |  |  | 2,834 |  |  |  | (10,013 | )
Other accrued expenses |  |  | (93,698 | ) |  |  | (93,046 | )
Variation margin on futures contracts |  |  | (10,619 | ) |  |  | (5,344 | )
Net cash provided by operating activities |  |  | 23,949,515 |  |  |  | 29,106,654 |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES |  |  |  |  |  |  |  |
Cash dividends paid to Common Shareholders |  |  | (20,691,330 | ) |  |  | (26,740,074 | )
Repayments of TOB Trust Certificates |  |  | (19,653,057 | ) |  |  | (16,536,801 | )
Repayments of Loan for TOB Trust Certificates |  |  | (5,208,871 | ) |  |  | — |
Proceeds from TOB Trust Certificates |  |  | 15,209,342 |  |  |  | 13,339,000 |
Proceeds from Loan for TOB Trust Certificates |  |  | 5,208,871 |  |  |  | — |
Increase in bank overdraft |  |  | 415,215 |  |  |  | 425,003 |
Amortization of deferred offering costs |  |  | 16,984 |  |  |  | — |
Net cash used for financing activities |  |  | (24,702,846 | ) |  |  | (29,512,872 | )
CASH |  |  |  |  |  |  |  |
Net decrease in restricted and unrestricted cash |  |  | (753,331 | ) |  |  | (406,218 | )
Restricted and unrestricted cash at beginning of year |  |  | 753,331 |  |  |  | 406,218 |
Restricted and unrestricted cash at end of year |  | $ | — |  |  | $ | — |
SUPPLEMENTAL DISCLOSURE OFCASH FLOW INFORMATION |  |  |  |  |  |  |  |
Cash paid during the year for interest expense |  | $ | 6,742,069 |  |  | $ | 6,015,522 |
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF YEAR TO THE STATEMENTS OF ASSETS AND LIABILITIES |  |  |  |  |  |  |  |
Cash |  | $ | 174,181 |  |  | $ | 94,718 |
Cash pledged |  |  |  |  |  |  |  |
Futures contracts |  |  | 579,150 |  |  |  | 311,500 |
|  | $ | 753,331 |  |  | $ | 406,218 |

See notes to financial statements.

72 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

(For a share outstanding throughout each period)

|  | BBK |
|  | Year Ended August 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2016 |
Net asset value, beginning of year |  | $ | 16.82 |  |  | $ | 15.78 |  |  | $ | 16.32 |  |  | $ | 17.89 |  |  | $ | 16.49 |
Net investment income(a) |  |  | 0.73 |  |  |  | 0.65 |  |  |  | 0.70 |  |  |  | 0.74 |  |  |  | 0.89 |
Net realized and unrealized gain (loss) |  |  | (0.45 | ) |  |  | 1.15 |  |  |  | (0.47 | ) |  |  | (1.09 | ) |  |  | 1.42 |
Net increase (decrease) from investment operations |  |  | 0.28 |  |  |  | 1.80 |  |  |  | 0.23 |  |  |  | (0.35 | ) |  |  | 2.31 |
Distributions to Common Shareholders(b) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
From net investment income |  |  | (0.68 | ) |  |  | (0.70 | ) |  |  | (0.77 | ) |  |  | (0.83 | ) |  |  | (0.90 | )
From net realized gain |  |  | — |  |  |  | (0.06 | ) |  |  | — |  |  |  | (0.39 | ) |  |  | (0.01 | )
Total distributions to Common Shareholders |  |  | (0.68 | ) |  |  | (0.76 | ) |  |  | (0.77 | ) |  |  | (1.22 | ) |  |  | (0.91 | )
Net asset value, end of year |  | $ | 16.42 |  |  | $ | 16.82 |  |  | $ | 15.78 |  |  | $ | 16.32 |  |  | $ | 17.89 |
Market price, end of year |  | $ | 15.39 |  |  | $ | 15.95 |  |  | $ | 14.35 |  |  | $ | 15.99 |  |  | $ | 18.22 |
Total Return Applicable to Common Shareholders(c) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Based on net asset value |  |  | 2.02 | % |  |  | 12.35 | % |  |  | 1.87 | % |  |  | (1.44 | )% |  |  | 14.53 | %
Based on market price |  |  | 0.84 | % |  |  | 17.16 | % |  |  | (5.45 | )% |  |  | (5.18 | )% |  |  | 26.29 | %
Ratios to Average Net Assets Applicable to Common Shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total expenses |  |  | 2.34 | %(d) |  |  | 2.79 | % |  |  | 2.49 | % |  |  | 2.31 | % |  |  | 1.78 | %
Total expenses after fees waived and/or reimbursed |  |  | 2.21 | %(d) |  |  | 2.77 | % |  |  | 2.49 | % |  |  | 2.31 | % |  |  | 1.77 | %
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of offering costs(e) |  |  | 1.14 | %(d) |  |  | 1.18 | % |  |  | 1.18 | % |  |  | 1.19 | % |  |  | 1.16 | %
Net investment income to Common Shareholders |  |  | 4.51 | % |  |  | 4.13 | % |  |  | 4.39 | % |  |  | 4.55 | % |  |  | 5.18 | %
Supplemental Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net assets applicable to Common Shareholders, end of year (000) |  | $ | 172,838 |  |  | $ | 177,030 |  |  | $ | 166,079 |  |  | $ | 171,705 |  |  | $ | 188,107 |
VMTP Shares outstanding at $100,000 liquidation value, end of year (000) |  | $ | 79,900 |  |  | $ | 79,900 |  |  | $ | 79,900 |  |  | $ | 79,900 |  |  | $ | 79,900 |
Asset coverage per VMTP Shares at $100,000 liquidation value, end of year |  | $ | 316,318 |  |  | $ | 321,564 |  |  | $ | 307,858 |  |  | $ | 314,899 |  |  | $ | 335,428 |
Borrowings outstanding, end of year (000) |  | $ | 34,683 |  |  | $ | 29,194 |  |  | $ | 23,232 |  |  | $ | 22,404 |  |  | $ | 25,054 |
Portfolio turnover rate |  |  | 11 | % |  |  | 19 | % |  |  | 38 | % |  |  | 46 | % |  |  | 29 | %

(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) | 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 costs would have been 2.29%, 2.16% and 1.09%, respectively.

(e) | 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.

FINANCIAL HIGHLIGHTS |  | 73

Financial Highlights (continued)

(For a share outstanding throughout each period)

|  | BAF |
|  | Year Ended August 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2016 |
Net asset value, beginning of year |  | $ | 15.68 |  |  | $ | 14.86 |  |  | $ | 15.69 |  |  | $ | 16.56 |  |  | $ | 15.80 |
Net investment income(a) |  |  | 0.67 |  |  |  | 0.65 |  |  |  | 0.74 |  |  |  | 0.79 |  |  |  | 0.83 |
Net realized and unrealized gain (loss) |  |  | (0.45 | ) |  |  | 0.86 |  |  |  | (0.77 | ) |  |  | (0.84 | ) |  |  | 0.75 |
Net increase (decrease) from investment operations |  |  | 0.22 |  |  |  | 1.51 |  |  |  | (0.03 | ) |  |  | (0.05 | ) |  |  | 1.58 |
Distributions to Common Shareholders from net investment income(b) |  |  | (0.64 | ) |  |  | (0.69 | ) |  |  | (0.80 | ) |  |  | (0.82 | ) |  |  | (0.82 | )
Net asset value, end of year |  | $ | 15.26 |  |  | $ | 15.68 |  |  | $ | 14.86 |  |  | $ | 15.69 |  |  | $ | 16.56 |
Market price, end of year |  | $ | 14.39 |  |  | $ | 14.53 |  |  | $ | 13.54 |  |  | $ | 15.11 |  |  | $ | 15.79 |
Total Return Applicable to Common Shareholders(c) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Based on net asset value |  |  | 1.76 | % |  |  | 10.96 | % |  |  | 0.18 | % |  |  | 0.14 | % |  |  | 10.57 | %
Based on market price |  |  | 3.55 | % |  |  | 12.85 | % |  |  | (5.22 | )% |  |  | 1.15 | % |  |  | 19.92 | %
Ratios to Average Net Assets Applicable to Common Shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total expenses |  |  | 2.34 | %(d) |  |  | 2.82 | % |  |  | 2.47 | % |  |  | 2.06 | % |  |  | 1.61 | %
Total expenses after fees waived and/or reimbursed |  |  | 2.34 | %(d) |  |  | 2.82 | % |  |  | 2.47 | % |  |  | 2.06 | % |  |  | 1.61 | %
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of offering costs(e) |  |  | 1.17 | %(d) |  |  | 1.11 | % |  |  | 1.08 | % |  |  | 1.06 | % |  |  | 1.01 | %
Net investment income to Common Shareholders |  |  | 4.43 | % |  |  | 4.38 | % |  |  | 4.84 | % |  |  | 5.06 | % |  |  | 5.09 | %
Supplemental Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net assets applicable to Common Shareholders, end of year (000) |  | $ | 133,526 |  |  | $ | 137,226 |  |  | $ | 130,022 |  |  | $ | 137,264 |  |  | $ | 144,927 |
VMTP Shares outstanding at $100,000 liquidation value, end of year (000) |  | $ | 42,200 |  |  | $ | 42,200 |  |  | $ | 42,200 |  |  | $ | 42,200 |  |  | $ | 42,200 |
Asset coverage per VMTP Shares at $100,000 liquidation value, end of year |  | $ | 416,413 |  |  | $ | 425,179 |  |  | $ | 408,109 |  |  | $ | 425,270 |  |  | $ | 443,429 |
Borrowings outstanding, end of year (000) |  | $ | 49,539 |  |  | $ | 54,030 |  |  | $ | 49,192 |  |  | $ | 44,937 |  |  | $ | 42,089 |
Portfolio turnover rate |  |  | 27 | % |  |  | 36 | % |  |  | 28 | % |  |  | 31 | % |  |  | 29 | %

(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) | 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 costs would have been 2.28%, 2.28% and 1.11%, respectively.

(e) | 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.

74 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (continued)

(For a share outstanding throughout each period)

|  | BYM |
|  | Year Ended August 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2016 |
Net asset value, beginning of year |  | $ | 15.72 |  |  | $ | 14.70 |  |  | $ | 15.32 |  |  | $ | 16.22 |  |  | $ | 15.21 |
Net investment income(a) |  |  | 0.66 |  |  |  | 0.61 |  |  |  | 0.67 |  |  |  | 0.75 |  |  |  | 0.82 |
Net realized and unrealized gain (loss) |  |  | (0.23 | ) |  |  | 1.04 |  |  |  | (0.62 | ) |  |  | (0.87 | ) |  |  | 1.02 |
Net increase (decrease) from investment operations |  |  | 0.43 |  |  |  | 1.65 |  |  |  | 0.05 |  |  |  | (0.12 | ) |  |  | 1.84 |
Distributions to Common Shareholders from net investment income(b) |  |  | (0.58 | ) |  |  | (0.63 | ) |  |  | (0.67 | ) |  |  | (0.78 | ) |  |  | (0.83 | )
Net asset value, end of year |  | $ | 15.57 |  |  | $ | 15.72 |  |  | $ | 14.70 |  |  | $ | 15.32 |  |  | $ | 16.22 |
Market price, end of year |  | $ | 14.19 |  |  | $ | 14.19 |  |  | $ | 13.09 |  |  | $ | 14.84 |  |  | $ | 15.55 |
Total Return Applicable to Common Shareholders(c) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Based on net asset value |  |  | 3.20 | % |  |  | 12.12 | % |  |  | 0.80 | % |  |  | (0.30 | )% |  |  | 12.71 | %
Based on market price |  |  | 4.19 | % |  |  | 13.66 | % |  |  | (7.34 | )% |  |  | 0.74 | % |  |  | 20.23 | %
Ratios to Average Net Assets Applicable to Common Shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total expenses |  |  | 2.02 | % |  |  | 2.53 | % |  |  | 2.23 | % |  |  | 1.93 | % |  |  | 1.56 | %
Total expenses after fees waived and/or reimbursed |  |  | 2.02 | % |  |  | 2.53 | % |  |  | 2.23 | % |  |  | 1.93 | % |  |  | 1.56 | %
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of offering costs(d) |  |  | 0.98 | % |  |  | 0.98 | % |  |  | 0.97 | % |  |  | 0.97 | % |  |  | 0.95 | %
Net investment income to Common Shareholders |  |  | 4.31 | % |  |  | 4.13 | % |  |  | 4.50 | % |  |  | 4.95 | % |  |  | 5.19 | %
Supplemental Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net assets applicable to Common Shareholders, end of year (000) |  | $ | 411,138 |  |  | $ | 415,127 |  |  | $ | 388,149 |  |  | $ | 404,474 |  |  | $ | 428,389 |
VMTP Shares outstanding at $100,000 liquidation value, end of year (000) |  | $ | 137,200 |  |  | $ | 137,200 |  |  | $ | 137,200 |  |  | $ | 137,200 |  |  | $ | 137,200 |
Asset coverage per VMTP Shares at $100,000 liquidation value, end of year |  | $ | 399,664 |  |  | $ | 402,571 |  |  | $ | 382,907 |  |  | $ | 394,806 |  |  | $ | 412,237 |
Borrowings outstanding, end of year (000) |  | $ | 121,029 |  |  | $ | 118,726 |  |  | $ | 111,781 |  |  | $ | 101,288 |  |  | $ | 100,250 |
Portfolio turnover rate |  |  | 13 | % |  |  | 15 | % |  |  | 30 | % |  |  | 18 | % |  |  | 10 | %

(a) | Based on average Common Shares outstanding.

(b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(d) | 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.

FINANCIAL HIGHLIGHTS |  | 75

Financial Highlights (continued)

(For a share outstanding throughout each period)

|  | BLE |
|  | Year Ended August 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2016 |
Net asset value, beginning of year |  | $ | 15.16 |  |  | $ | 14.55 |  |  | $ | 15.17 |  |  | $ | 16.12 |  |  | $ | 15.25 |
Net investment income(a) |  |  | 0.73 |  |  |  | 0.71 |  |  |  | 0.76 |  |  |  | 0.83 |  |  |  | 0.93 |
Net realized and unrealized gain (loss) |  |  | (0.40 | ) |  |  | 0.60 |  |  |  | (0.60 | ) |  |  | (0.89 | ) |  |  | 0.87 |
Net increase (decrease) from investment operations |  |  | 0.33 |  |  |  | 1.31 |  |  |  | 0.16 |  |  |  | (0.06 | ) |  |  | 1.80 |
Distributions to Common Shareholders from net investment income(b) |  |  | (0.70 | ) |  |  | (0.70 | ) |  |  | (0.78 | ) |  |  | (0.89 | ) |  |  | (0.93 | )
Net asset value, end of year |  | $ | 14.79 |  |  | $ | 15.16 |  |  | $ | 14.55 |  |  | $ | 15.17 |  |  | $ | 16.12 |
Market price, end of year |  | $ | 14.83 |  |  | $ | 15.48 |  |  | $ | 13.77 |  |  | $ | 15.45 |  |  | $ | 16.34 |
Total Return Applicable to Common Shareholders(c) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Based on net asset value |  |  | 2.37 | % |  |  | 9.52 | % |  |  | 1.35 | % |  |  | (0.18 | )% |  |  | 12.21 | %
Based on market price |  |  | 0.52 | % |  |  | 18.17 | % |  |  | (5.82 | )% |  |  | 0.29 | % |  |  | 22.33 | %
Ratios to Average Net Assets Applicable to Common Shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total expenses |  |  | 2.03 | %(d) |  |  | 2.55 | % |  |  | 2.32 | % |  |  | 2.02 | % |  |  | 1.62 | %
Total expenses after fees waived and/or reimbursed |  |  | 2.00 | %(d) |  |  | 2.55 | % |  |  | 2.31 | % |  |  | 2.02 | % |  |  | 1.62 | %
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of offering costs(e) |  |  | 0.99 | %(d) |  |  | 0.98 | % |  |  | 0.98 | % |  |  | 0.99 | % |  |  | 0.98 | %
Net investment income to Common Shareholders |  |  | 4.96 | % |  |  | 4.86 | % |  |  | 5.12 | % |  |  | 5.47 | % |  |  | 5.90 | %
Supplemental Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net assets applicable to Common Shareholders, end of year (000) |  | $ | 348,328 |  |  | $ | 356,649 |  |  | $ | 342,437 |  |  | $ | 356,901 |  |  | $ | 378,572 |
VMTP Shares outstanding at $100,000 liquidation value, end of year (000) |  | $ | 151,300 |  |  | $ | 151,300 |  |  | $ | 151,300 |  |  | $ | 151,300 |  |  | $ | 151,300 |
Asset coverage per VMTP Shares at $100,000 liquidation value, end of year |  | $ | 330,223 |  |  | $ | 335,723 |  |  | $ | 326,330 |  |  | $ | 335,890 |  |  | $ | 350,213 |
Borrowings outstanding, end of year (000) |  | $ | 73,763 |  |  | $ | 59,519 |  |  | $ | 67,497 |  |  | $ | 71,274 |  |  | $ | 77,130 |
Portfolio turnover rate |  |  | 19 | % |  |  | 18 | % |  |  | 7 | % |  |  | 9 | % |  |  | 7 | %

(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) | 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 costs would have been 2.00%, 2.00% and 0.98%, respectively.

(e) | 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.

76 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (continued)

(For a share outstanding throughout each period)

|  | MFL |
|  | Year Ended August 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2016 |
Net asset value, beginning of year |  | $ | 14.94 |  |  | $ | 14.09 |  |  | $ | 14.91 |  |  | $ | 15.86 |  |  | $ | 15.18 |
Net investment income(a) |  |  | 0.57 |  |  |  | 0.59 |  |  |  | 0.71 |  |  |  | 0.78 |  |  |  | 0.86 |
Net realized and unrealized gain (loss) |  |  | (0.21 | ) |  |  | 0.90 |  |  |  | (0.76 | ) |  |  | (0.87 | ) |  |  | 0.68 |
Net increase (decrease) from investment operations |  |  | 0.36 |  |  |  | 1.49 |  |  |  | (0.05 | ) |  |  | (0.09 | ) |  |  | 1.54 |
Distributions to Common Shareholders from net investment income(b) |  |  | (0.55 | ) |  |  | (0.64 | ) |  |  | (0.77 | ) |  |  | (0.86 | ) |  |  | (0.86 | )
Net asset value, end of year |  | $ | 14.75 |  |  | $ | 14.94 |  |  | $ | 14.09 |  |  | $ | 14.91 |  |  | $ | 15.86 |
Market price, end of year |  | $ | 13.45 |  |  | $ | 13.60 |  |  | $ | 12.73 |  |  | $ | 15.03 |  |  | $ | 15.86 |
Total Return Applicable to Common Shareholders(c) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Based on net asset value |  |  | 2.85 | % |  |  | 11.42 | % |  |  | (0.05 | )% |  |  | (0.34 | )% |  |  | 10.56 | %
Based on market price |  |  | 3.02 | % |  |  | 12.27 | % |  |  | (10.42 | )% |  |  | 0.46 | % |  |  | 19.37 | %
Ratios to Average Net Assets Applicable to Common Shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total expenses |  |  | 2.19 | % |  |  | 2.67 | % |  |  | 2.51 | % |  |  | 2.17 | % |  |  | 1.65 | %
Total expenses after fees waived and/or reimbursed |  |  | 2.11 | % |  |  | 2.58 | % |  |  | 2.41 | % |  |  | 2.08 | % |  |  | 1.60 | %
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of offering costs(d)(e) |  |  | 0.93 | % |  |  | 0.94 | % |  |  | 0.94 | % |  |  | 0.95 | % |  |  | 0.94 | %
Net investment income to Common Shareholders |  |  | 3.90 | % |  |  | 4.15 | % |  |  | 4.91 | % |  |  | 5.22 | % |  |  | 5.54 | %
Supplemental Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net assets applicable to Common Shareholders, end of year (000) |  | $ | 558,929 |  |  | $ | 566,341 |  |  | $ | 534,075 |  |  | $ | 564,383 |  |  | $ | 599,930 |
VRDP Shares outstanding at $100,000 liquidation value, end of year (000) |  | $ | 274,600 |  |  | $ | 274,600 |  |  | $ | 274,600 |  |  | $ | 274,600 |  |  | $ | 274,600 |
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year |  | $ | 303,543 |  |  | $ | 306,242 |  |  | $ | 294,492 |  |  | $ | 305,529 |  |  | $ | 318,474 |
Borrowings outstanding, end of year (000) |  | $ | 91,534 |  |  | $ | 95,978 |  |  | $ | 114,546 |  |  | $ | 123,111 |  |  | $ | 131,279 |
Portfolio turnover rate |  |  | 44 | % |  |  | 52 | % |  |  | 22 | % |  |  | 16 | % |  |  | 27 | %

(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) | 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.

(e) | 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:

|  | Year Ended August 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2016 |
Expense ratios |  |  | 0.92 | % |  |  | 0.93 | % |  |  | 0.93 | % |  |  | 0.94 | % |  |  | 0.93 | %

See notes to financial statements.

FINANCIAL HIGHLIGHTS |  | 77

Financial Highlights (continued)

(For a share outstanding throughout each period)

|  | MVF |
|  | Year Ended August 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2016 |
Net asset value, beginning of year |  | $ | 9.83 |  |  | $ | 9.35 |  |  | $ | 9.75 |  |  | $ | 10.38 |  |  | $ | 10.04 |
Net investment income(a) |  |  | 0.43 |  |  |  | 0.44 |  |  |  | 0.51 |  |  |  | 0.56 |  |  |  | 0.61 |
Net realized and unrealized gain (loss) |  |  | (0.25 | ) |  |  | 0.50 |  |  |  | (0.39 | ) |  |  | (0.62 | ) |  |  | 0.36 |
Net increase (decrease) from investment operations |  |  | 0.18 |  |  |  | 0.94 |  |  |  | 0.12 |  |  |  | (0.06 | ) |  |  | 0.97 |
Distributions to Common Shareholders from net investment income(b) |  |  | (0.41 | ) |  |  | (0.46 | ) |  |  | (0.52 | ) |  |  | (0.57 | ) |  |  | (0.63 | )
Net asset value, end of year |  | $ | 9.60 |  |  | $ | 9.83 |  |  | $ | 9.35 |  |  | $ | 9.75 |  |  | $ | 10.38 |
Market price, end of year |  | $ | 8.77 |  |  | $ | 9.49 |  |  | $ | 8.81 |  |  | $ | 9.84 |  |  | $ | 10.77 |
Total Return Applicable to Common Shareholders(c) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Based on net asset value |  |  | 2.30 | % |  |  | 10.76 | % |  |  | 1.52 | % |  |  | (0.38 | )% |  |  | 9.96 | %
Based on market price |  |  | (3.19 | )% |  |  | 13.47 | % |  |  | (5.22 | )% |  |  | (3.10 | )% |  |  | 18.70 | %
Ratios to Average Net Assets Applicable to Common Shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total expenses |  |  | 1.77 | % |  |  | 2.29 | % |  |  | 2.16 | % |  |  | 1.92 | % |  |  | 1.55 | %
Total expenses after fees waived and/or reimbursed |  |  | 1.77 | % |  |  | 2.29 | % |  |  | 2.16 | % |  |  | 1.92 | % |  |  | 1.55 | %
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of offering costs(d) |  |  | 0.85 | % |  |  | 0.87 | % |  |  | 0.89 | % |  |  | 0.91 | % |  |  | 0.89 | %
Net investment income to Common Shareholders |  |  | 4.48 | % |  |  | 4.74 | % |  |  | 5.35 | % |  |  | 5.71 | % |  |  | 5.95 | %
Supplemental Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net assets applicable to Common Shareholders, end of year (000) |  | $ | 622,750 |  |  | $ | 637,636 |  |  | $ | 605,972 |  |  | $ | 630,489 |  |  | $ | 667,589 |
VMTP Shares outstanding at $100,000 liquidation value, end of year (000) |  | $ | 243,800 |  |  | $ | 243,800 |  |  | $ | 243,800 |  |  | $ | 243,800 |  |  | $ | 243,800 |
Asset coverage per VMTP Shares at $100,000 liquidation value, end of year |  | $ | 355,435 |  |  | $ | 361,541 |  |  | $ | 348,553 |  |  | $ | 358,609 |  |  | $ | 373,827 |
Borrowings outstanding, end of year (000) |  | $ | 97,266 |  |  | $ | 100,463 |  |  | $ | 112,817 |  |  | $ | 139,989 |  |  | $ | 161,957 |
Portfolio turnover rate |  |  | 18 | % |  |  | 31 | % |  |  | 21 | % |  |  | 26 | % |  |  | 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) | 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.

78 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements

1. | ORGANIZATION

The following are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as closed-end management investment companies and are referred to herein collectively as the “Trusts”, or individually as a “Trust”:

Trust Name |  | Herein Referred To As |  | Organized |  | Diversification Classification
BlackRock Municipal Bond Trust |  | BBK |  | Delaware |  | Diversified
BlackRock Municipal Income Investment Quality Trust |  | BAF |  | Delaware |  | Diversified
BlackRock Municipal Income Quality Trust |  | BYM |  | Delaware |  | Diversified
BlackRock Municipal Income Trust II |  | BLE |  | Delaware |  | Diversified
BlackRock MuniHoldings Investment Quality Fund |  | MFL |  | Massachusetts |  | Diversified
BlackRock MuniVest Fund, Inc. |  | MVF |  | Maryland |  | Diversified

The Boards of Directors and Boards of Trustees of the Trusts are collectively referred to throughout this report as the “Board,” and the trustees thereof are collectively referred to throughout this report as “Trustees”. The Trusts determine and make available for publication the net asset values (“NAVs”) of their Common Shares on a daily basis.

On June 16, 2020, the Board of Trustees of BBK and the Board of Directors of BlackRock MuniHoldings Fund, Inc. (MHD) each approved the reorganization of BBK into MHD. Subject to approvals by each Trust’s shareholders and the satisfaction of customary closing conditions, the reorganization is expected to occur during the first quarter of 2021.

On June 16, 2020, the Board of Trustees of BAF and the Board of Directors of BlackRock MuniHoldings Fund, Inc. (MHD) each approved the reorganization of BAF into MHD. Subject to approvals by each Trust’s shareholders and the satisfaction of customary closing conditions, the reorganization is expected to occur during the first quarter of 2021.

On June 16, 2020, the Board of Trustees of BlackRock Strategic Municipal Trust (BSD), the Board of Directors of BlackRock MuniYield Investment Quality Fund (MFT), the Board of Trustees of BlackRock Municipal Income Investment Trust (BBF) and the Board of Trustees of BLE each approved the reorganizations of BSD, MFT and BBF into BLE. Subject to approvals by each Trust’s shareholders and the satisfaction of customary closing conditions, the reorganizations are expected to occur during the first quarter of 2021.

The Trusts, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of non-index fixed-income mutual 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 Trust 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 on the identified cost basis. Dividend income and non-cash dividend income, if any, are recorded on the ex-dividend date. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on an accrual basis.

Segregation and Collateralization: In cases where a Trust 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 Trust 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 Trusts 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 date 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 Trust’s Board, the trustees who are not “interested persons” of the Trusts, as defined in the 1940 Act (“Independent Trustees”), 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 Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.

NOTES TO FINANCIAL STATEMENTS |  | 79

Notes to Financial Statements (continued)

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust, as applicable. Deferred compensation liabilities, if any, are included in the Trustees’ and Officer’s fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Trusts until such amounts are distributed in accordance with the Plan.

Recent Accounting Standards: The Trusts have adopted Financial Accounting Standards Board Accounting Standards Update 2017-08 to amend the amortization period for certain purchased callable debt securities held at a premium. Under the new standard, the Trusts have changed the amortization period for the premium on certain purchased callable debt securities with non-contingent call features to the earliest call date. In accordance with the transition provisions of the standard, the Trusts applied the amendments on a modified retrospective basis beginning with the fiscal period ended August 31, 2020. The adjusted cost basis of securities at August 31, 2019 are as follows:

Trust Name |  | Amounts |
BBK |  | $ | 254,959,342 |
BAF |  |  | 213,803,733 |
BYM |  |  | 600,981,763 |
BLE |  |  | 521,309,639 |
MFL |  |  | 871,235,972 |
MVF |  |  | 895,745,721 |

This change in accounting policy has been made to comply with the newly issued accounting standard and had no impact on accumulated earnings (loss) or the net asset value of the Trusts.

Indemnifications: In the normal course of business, a Trust enters into contracts that contain a variety of representations that provide general indemnification. A Trust’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Trust, which cannot be predicted with any certainty.

Other: Expenses directly related to a Trust are charged to that Trust. 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: Investment Valuation Policies: The Trusts’ investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Trust is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price the Trusts would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trusts determine the fair values of their financial instruments using various independent dealers or pricing services under policies approved by the Board. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with 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 Trust’s assets and liabilities:

| • |  | Fixed-income investments for which market quotations are readily available are generally valued using the last available bid prices or current market quotations provided by independent dealers or third party pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more independent brokers or dealers as obtained from a third party pricing service. 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.

| • |  | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will 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 Trust might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant 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.

80 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Global Valuation Committee and third party pricing services utilize one or a combination of, but not limited to, the following inputs.

|  | Standard Inputs Generally Considered By Third Party Pricing Services
Market approach |  | (i)  recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers; (ii) recapitalizations and other transactions across the capital structure; and (iii)   market multiples of comparable issuers.
Income approach |  | (i)  future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks; (ii) quoted prices for similar investments or assets in active markets; and (iii)   other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts, and/or default rates.
Cost approach |  | (i)  audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company; (ii) changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company; (iii)   relevant news and other public sources; and (iv)   known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”) or a hybrid of those techniques are used in allocating enterprise value of the company, as deemed appropriate under the circumstances. The use of OPM and PWERM techniques involve a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by a Trust. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date a Trust is calculating its NAV. This factor may result in a difference between the value of the investment and the price a Trust could receive upon the sale of the investment.

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:

| • |  | Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Trust has the ability to access

| • |  | Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

| • |  | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the 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. There may not be a secondary market, and/or there are 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.

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: Certain Trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. A fund may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, a fund may be required to pay more at settlement than the security is worth. In addition, a fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, a fund’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

Municipal Bonds Transferred to TOB Trusts: Certain Trusts 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

NOTES TO FINANCIAL STATEMENTS |  | 81

Notes to Financial Statements (continued)

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 Trusts) whereas in other termination events, TOB Trust Certificates holders and TOB Residuals holders will be paid pro rata.

While a fund’s investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they restrict the ability of a fund to borrow money for purposes of making investments. MVF’s management believes that the Trust’s restrictions on borrowings do not apply to the Trust’s TOB Trust transactions. Each fund’s transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less certain transaction expenses, is paid to a fund. A fund typically invests the cash received in additional municipal bonds.

Accounting for TOB Trusts: The municipal bonds deposited into a TOB Trust are presented in a fund’s Schedule of Investments and the TOB Trust Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust pursuant to the liquidity facility to purchase tendered TOB Trust Certificates are shown as Loan for TOB Trust Certificates. The carrying amount of a fund’s payable to the holder of the TOB Trust Certificates, as reported in the Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by a fund on an accrual basis. Interest expense incurred on the TOB Trust transaction and other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. Fees paid upon creation of the TOB Trust are recorded as debt issuance costs and are amortized to interest expense, fees and amortization of offering costs in the Statements of Operations to the expected maturity of the TOB Trust. In connection with the restructurings of the TOB Trusts to non-bank sponsored TOB Trusts, a fund incurred non-recurring, legal and restructuring fees, which are recorded as interest expense, fees and amortization of offering costs in the Statements of Operations.

Amounts recorded within interest expense, fees and amortization of offering costs in the Statements of Operations are:

Trust Name |  | Interest Expense |  |  | Liquidity Fees |  |  | Other Expenses |  |  | Total |
BBK |  | $ | 323,602 |  |  | $ | 130,915 |  |  | $ | 51,131 |  |  | $ | 505,648 |
BAF |  |  | 539,490 |  |  |  | 220,929 |  |  |  | 83,903 |  |  |  | 844,322 |
BYM |  |  | 1,234,979 |  |  |  | 524,244 |  |  |  | 169,862 |  |  |  | 1,929,085 |
BLE |  |  | 633,984 |  |  |  | 269,233 |  |  |  | 92,174 |  |  |  | 995,391 |
MFL |  |  | 980,881 |  |  |  | 394,457 |  |  |  | 138,028 |  |  |  | 1,513,366 |
MVF |  |  | 1,023,012 |  |  |  | 413,712 |  |  |  | 154,891 |  |  |  | 1,591,615 |

For the year ended August 31, 2020, the following table is a summary of each Trust’s TOB Trusts:

Trust Name |  | Underlying Municipal Bonds Transferred to TOB Trusts (a) |  |  | Liability for TOB Trust Certificates (b) |  |  | Range of Interest Rates on TOB Trust Certificates at Period End |  |  | Average TOB Trust Certificates Outstanding |  |  | Daily Weighted Average Rate of Interest and Other Expenses on TOB Trusts |
BBK |  | $ | 58,381,262 |  |  | $ | 34,682,946 |  |  |  | 0.11% — 0.46 | % |  | $ | 32,620,135 |  |  |  | 1.53 | %
BAF |  |  | 89,786,734 |  |  |  | 49,539,022 |  |  |  | 0.11 — 0.42 |  |  |  | 52,357,898 |  |  |  | 1.61 |
BYM |  |  | 203,344,284 |  |  |  | 121,029,335 |  |  |  | 0.11 — 0.59 |  |  |  | 120,871,421 |  |  |  | 1.57 |
BLE |  |  | 123,340,473 |  |  |  | 73,763,358 |  |  |  | 0.09 — 0.42 |  |  |  | 66,441,783 |  |  |  | 1.49 |
MFL |  |  | 202,341,337 |  |  |  | 91,534,330 |  |  |  | 0.12 — 0.17 |  |  |  | 96,645,845 |  |  |  | 1.57 |
MVF |  |  | 196,751,267 |  |  |  | 97,265,521 |  |  |  | 0.11 — 0.30 |  |  |  | 98,875,131 |  |  |  | 1.61 |

| (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. |

82 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

| (b) | TOB Trusts may be structured on a non-recourse or recourse basis. When a Trust 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 August 31, 2020, 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 August 31, 2020. |

For the year ended August 31, 2020, the following table is a summary of each Trust’s Loan for TOB Trust Certificates:

Trust Name |  | Loans Outstanding at Period End |  |  | Range of Interest Rates on Loans at Period End |  |  | Average Loans Outstanding |  |  | Daily Weighted Average Rate of Interest and Other Expenses on Loans |
BBK |  | $ | — |  |  |  | — | % |  | $ | 405,404 |  |  |  | 0.66 | %
BAF |  |  | — |  |  |  | — |  |  |  | 56,985 |  |  |  | 0.71 |
BYM |  |  | — |  |  |  | — |  |  |  | 1,908,672 |  |  |  | 0.69 |
BLE |  |  | — |  |  |  | — |  |  |  | 223,800 |  |  |  | 0.71 |
MFL |  |  | — |  |  |  | — |  |  |  | 28,464 |  |  |  | 0.68 |

5. | DERIVATIVE FINANCIAL INSTRUMENTS

The Trusts engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Trusts 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 agreements between the Trusts 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 Trusts are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Trusts 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, foreign currency exchange rates or underlying assets.

6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: Each Trust entered into an Investment Advisory Agreement with the Manager, the Trusts’ 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 Trust’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Trust.

For such services, each Trust, except for MFL and MVF, pays the Manager a monthly fee at an annual rate equal to the following percentages of the average weekly value of each Trust’s managed assets.

Trust Name |  | Investment Advisory Fees |
BBK |  |  | 0.65 | %
BAF |  |  | 0.55 |
BYM |  |  | 0.55 |
BLE |  |  | 0.55 |

For purposes of calculating these fees, “managed assets” are determined as total assets of the Trust (including any assets attributable to money borrowed for investment purposes) less the sum of its accrued liabilities (other than money borrowed for investment purposes).

For such services, MFLand MVF pays the Manager a monthly fee at an annual rate equal to 0.55% and 0.50%, respectively, of the average daily value of each Trust’s net assets.

NOTES TO FINANCIAL STATEMENTS |  | 83

Notes to Financial Statements (continued)

For purposes of calculating these fees, “net assets” mean the total assets of the Trust 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 Trust’s net asset value.

Expense Limitations, Waivers and Reimbursements: The Manager, for MFL, 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 year ended August 31, 2020 the waiver was $410,502.

The Manager voluntarily agreed to waive a portion of the investment advisory fees or other expenses on BBK as a percentage of its average weekly managed assets at a rate of 0.075%.

This voluntary reimbursement may be reduced or discontinued at any time. For the year ended August 31, 2020, the investment advisory fees waived, which are included in fees waived and/or reimbursed by the Manager in the Statements of Operations was $213,371.

With respect to each Trust, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through June 30, 2022. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Trust. Prior to December 1, 2019, this waiver was voluntary. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended August 31, 2020, the amounts waived were as follows:

Trust Name |  | Amounts Waived |
BBK |  | $ | 1,435 |
BAF |  |  | 277 |
BYM |  |  | 2,352 |
BLE |  |  | 6,953 |
MFL |  |  | 8,224 |
MVF |  |  | 7,144 |

The Manager contractually agreed to waive its investment advisory fee with respect to any portion of each Trust’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2022. 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 Trusts’ Independent Trustees. For the year ended August 31, 2020, there were no fees waived by the Manager pursuant to this arrangement.

Reorganization costs incurred by BLE in connection with the respective reorganizations were expensed by BLE. The Manager reimbursed BLE $91,786, which is included in fees waived and/or reimbursed by the Manager in the Statements of Operations.

Reorganization costs incurred in connection with the respective reorganization were expensed by BBK and BAF.

Trustees and Officers: Certain trustees and/or officers of the Trusts are directors and/or officers of BlackRock or its affiliates. The Trusts reimburse the Manager for a portion of the compensation paid to the Trusts’ Chief Compliance Officer, which is included in Trustees and Officer in the Statements of Operations.

Other Transactions: The Trusts may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the year ended August 31, 2020, the purchase and sale transactions and any net realized gains (losses) with affiliated funds in compliance with Rule 17a-7 under the 1940 Act were as follows:

Trust Name |  | Purchases |  |  | Sales |  |  | Net Realized Gain (Loss) |
MVF |  | $ | — |  |  | $ | 13,819,913 |  |  | $ | — |

7. | PURCHASES AND SALES

For the year ended August 31, 2020, purchases and sales of investments, excluding short-term investments, were as follows:

Trust Name |  | Purchases |  |  | Sales |
BBK |  | $ | 32,186,037 |  |  | $ | 31,455,810 |
BAF |  |  | 61,101,953 |  |  |  | 65,365,772 |
BYM |  |  | 89,407,386 |  |  |  | 85,013,151 |
BLE |  |  | 112,680,396 |  |  |  | 105,183,965 |
MFL |  |  | 397,141,926 |  |  |  | 417,549,535 |
MVF |  |  | 167,535,704 |  |  |  | 174,380,287 |

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Notes to Financial Statements (continued)

8. | INCOME TAX INFORMATION

It is each Trust’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Each Trust 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 Trust’s 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 Trust’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Trusts as of August 31, 2020, 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 Trusts’ financial statements.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAVs per share. As of period end, the following permanent differences attributable to non-deductible expenses were reclassified to the following accounts:

|  | BBK |  |  | BAF |  |  | BLE |  |  | MFL |
Paid-in capital |  |  | $ (92,138) |  |  |  | $ (85,121) |  |  |  | $ (24,127) |  |  |  | $ (16,984) |
Accumulated earnings (loss) |  |  | 92,138 |  |  |  | 85,121 |  |  |  | 24,127 |  |  |  | 16,984 |

The tax character of distributions paid was as follows:

|  | Periods |  |  | BBK |  |  | BAF |  |  | BYM |  |  | BLE |  |  | MFL |  |  | MVF |
Tax-exempt income(a) |  |  | 08/31/20 |  |  | $ | 8,463,377 |  |  | $ | 6,265,801 |  |  | $ | 17,488,919 |  |  | $ | 19,045,703 |  |  | $ | 25,635,066 |  |  | $ | 30,497,864 |
|  |  | 08/31/19 |  |  |  | 9,442,804 |  |  |  | 7,116,278 |  |  |  | 19,801,145 |  |  |  | 20,312,445 |  |  |  | 30,950,975 |  |  |  | 36,393,995 |
Ordinary income(b) |  |  | 08/31/20 |  |  |  | 3,417 |  |  |  | 2,459 |  |  |  | 8,726 |  |  |  | 4,584 |  |  |  | 12,612 |  |  |  | 190,992 |
|  |  | 08/31/19 |  |  |  | 1,978 |  |  |  | 1,532 |  |  |  | 393,846 |  |  |  | 1,908 |  |  |  | 4,493 |  |  |  | 20,302 |
Long-term capital gains |  |  | 08/31/19 |  |  |  | 609,986 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 08/31/20 |  |  | $ | 8,466,794 |  |  | $ | 6,268,260 |  |  | $ | 17,497,645 |  |  | $ | 19,050,287 |  |  | $ | 25,647,678 |  |  | $ | 30,688,856 |
|  |  | 08/31/19 |  |  | $ | 10,054,768 |  |  | $ | 7,117,810 |  |  | $ | 20,194,991 |  |  | $ | 20,314,353 |  |  | $ | 30,955,468 |  |  | $ | 36,414,297 |

| (a) | The Trusts designate these amounts paid during the fiscal year ended August 31, 2020, as exempt-interest dividends. |

| (b) | Ordinary income consists primarily of taxable income recognized from market discount. Additionally, all ordinary income distributions are comprised of interest related dividends for non-US residents and are eligible for exemption from US withholding tax for nonresident aliens and foreign corporations. |

As of period end, the tax components of accumulated earnings (loss) were as follows:

|  | BBK |  |  | BAF |  |  | BYM |  |  | BLE |  |  | MFL |  |  | MVF |
Undistributed tax-exempt income |  | $ | 1,200,925 |  |  | $ | 439,904 |  |  | $ | 1,028,139 |  |  | $ | 1,500,761 |  |  | $ | 992,885 |  |  | $ | 410,653 |
Undistributed ordinary income |  |  | 584 |  |  |  | 240 |  |  |  | 766 |  |  |  | 435 |  |  |  | 35,660 |  |  |  | 802 |
Non-expiring capital loss carryforwards(a) |  |  | (3,339,636 | ) |  |  | (6,215,759 | ) |  |  | (13,574,066 | ) |  |  | (12,422,377 | ) |  |  | (10,214,772 | ) |  |  | (21,504,380 | )
Net unrealized gains(b) |  |  | 25,523,486 |  |  |  | 15,367,511 |  |  |  | 60,888,518 |  |  |  | 33,985,720 |  |  |  | 54,557,653 |  |  |  | 66,644,690 |
|  | $ | 23,385,359 |  |  | $ | 9,591,896 |  |  | $ | 48,343,357 |  |  | $ | 23,064,539 |  |  | $ | 45,371,426 |  |  | $ | 45,551,765 |

| (a) | Amounts available to offset future realized capital gains. |

| (b) | The differences between book-basis and tax-basis net unrealized gains were attributable primarily to the tax deferral of losses on wash sales and straddles, amortization methods of premiums and discounts on fixed income securities, the deferral of compensation to Trustees and the treatment of residual interests in tender option bond trusts. |

During the year ended August 31, 2020, MFL utilized $914,853 of its capital loss carryforward.

As of August 31, 2020, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:

|  | BBK |  |  | BAF |  |  | BYM |  |  | BLE |  |  | MFL |  |  | MVF |
Tax cost |  | $ | 225,484,336 |  |  | $ | 158,735,676 |  |  | $ | 483,397,373 |  |  | $ | 461,694,070 |  |  | $ | 772,277,689 |  |  | $ | 792,542,883 |
Gross unrealized appreciation |  | $ | 26,710,379 |  |  | $ | 15,846,777 |  |  | $ | 62,578,118 |  |  | $ | 38,764,898 |  |  | $ | 56,449,339 |  |  | $ | 68,765,916 |
Gross unrealized depreciation |  |  | (1,156,806 | ) |  |  | (457,280 | ) |  |  | (1,619,773 | ) |  |  | (4,715,831 | ) |  |  | (1,578,716 | ) |  |  | (1,918,197 | )
Net unrealized appreciation (depreciation) |  | $ | 25,553,573 |  |  | $ | 15,389,497 |  |  | $ | 60,958,345 |  |  | $ | 34,049,067 |  |  | $ | 54,870,623 |  |  | $ | 66,847,719 |

9. | PRINCIPAL RISKS

In the normal course of business, certain Trusts invest in securities or other instruments and may enter into certain transactions, and such activities subject each Trust 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

NOTES TO FINANCIAL STATEMENTS |  | 85

Notes to Financial Statements (continued)

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 Trusts and their investments.

The Trusts may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Trusts reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Trust.

A Trust 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 Trusts’ investments in the TOB Trusts may adversely affect the Trusts’ 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 Trusts’ NAVs per share.

The U.S. Securities and Exchange Commission (“SEC”) and various federal banking and housing agencies have adopted credit risk retention rules for securitizations (the “Risk Retention Rules”). The Risk Retention Rules would require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Risk Retention Rules may adversely affect the Trusts’ 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 Trusts, 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 Trust 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 Trust may not be able to readily dispose of such investments at prices that approximate those at which a Trust could sell such investments if they were more widely traded and, as a result of such illiquidity, a Trust 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 Trust’s net asset value 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 Trust 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 Trust to reinvest in lower yielding securities. Each Trust may also be exposed to reinvestment risk, which is the risk that income from each Trust’s portfolio will decline if each Trust invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Trust portfolio’s current earnings rate.

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 fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.

Counterparty Credit Risk: The Trusts 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 honor its obligations. The Trusts 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 Trusts to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Trusts’ 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 Trusts.

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 Trusts 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 Trust does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Trusts.

Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions, credit rating downgrades, or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest or otherwise affect the value of such securities. Municipal securities can be significantly affected by political or economic changes, including changes made in the law after issuance of the securities, as well as uncertainties in the municipal market related to, taxation, legislative changes or the rights of municipal security holders, including in connection with an issuer insolvency. Municipal securities

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Notes to Financial Statements (continued)

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.

Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within certain Trust’s portfolio are disclosed in its Schedule of Investments.

Certain Trusts invest a substantial amount of their assets in issuers located in a single state or limited number of states. When a Trust concentrates its investments in this manner, it assumes the risk that economic, regulatory, political or social conditions affecting that state or group of states could have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific states or U.S. territories are presented in the Schedules of Investments.

Certain Trusts invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Trust 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 Trust and could affect the income from, or the value or liquidity of, the Trust’s portfolio. Investment percentages in specific sectors are presented in the Schedules of Investments.

Certain Trusts 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 Trusts 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 Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”) by the end of 2021, and it is expected that LIBOR will cease to be published after that time. The Trusts 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 Trusts is uncertain.

10. | CAPITAL SHARE TRANSACTIONS

Each of BBK, BAF, BYM, and BLE is authorized to issue an unlimited number of shares, including Preferred Shares, par value $0.001 per share, all of which were initially classified as Common Shares. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without the approval of Common Shareholders.

MFL is authorized to issue an unlimited number of shares, including 1 million Preferred Shares, par value $0.10 per share.

MVF is authorized to issue 160 million shares, 150 million of which were initially classified as Common Shares, par value $0.10 per share and 10 million of which were classified as Preferred Shares, par value $0.10 per share.

Common Shares

For the years shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

|  | Year Ended |
Trust Name |  | 08/31/20 |  |  | 08/31/19 |
BLE |  |  | 20,351 |  |  |  | 2,585 |

For the years ended August 31, 2020 and August 31, 2019, shares issued and outstanding remained constant for BBK, BAF, BYM, MFL and MVF.

The Trusts participate in an open market share repurchase program (the “Repurchase Program”). From December 1, 2018 through November 30, 2019, each Trust 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, 2018, subject to certain conditions. From December 1, 2019 through November 30, 2020, each Trust 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, 2019, subject to certain conditions. There is no assurance that the Trusts will purchase shares in any particular amounts. For the year ended August 31, 2020, the Trusts did not repurchase any shares.

Preferred Shares

A Trust’s Preferred Shares rank prior to its Common Shares as to the payment of dividends by the Trust and distribution of assets upon dissolution or liquidation of the Trust. The 1940 Act prohibits the declaration of any dividend on Common Shares or the repurchase of Common Shares if the Trust fails to maintain asset coverage of at least 200% of the liquidation preference of the Trust’s outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instruments, a Trust 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 Trust 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

NOTES TO FINANCIAL STATEMENTS |  | 87

Notes to Financial Statements (continued)

of reorganization that would adversely affect the Preferred Shares, (b) change a Trust’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

VRDP Shares

MFL (for purposes of this section, a “VRDP Trust”), has issued Series W-7 VRDP Shares, $100,000 liquidation preference per share, in one or more privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144Aunder 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:

Trust Name |  | Issue Date |  |  | Shares Issued |  |  | Aggregate Principal |  |  | Maturity Date |
MFL |  |  | 06/30/11 |  |  |  | 2,746 |  |  | $ | 274,600,000 |  |  |  | 07/01/41 |

RedemptionTerms:AVRDP Trust 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 Trust is required to begin to segregate liquid assets with the Trust’s custodian to fund the redemption. In addition, a VRDP Trust 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 Trust. 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 Trust 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:

|  | MFL |
Expiration date |  |  | 04/30/21 |

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 Trust is required to redeem the VRDP Shares six months after the purchase date. Immediately after such mandatory purchase, the VRDP Trust is required to begin to segregate liquid assets with its custodian to fund the redemption. There is no assurance that a VRDP Trust will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

Remarketing: AVRDP Trust 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 Trust may incur nominal or no remarketing fees.

Ratings: As of period end, the VRDP Shares were assigned the following ratings:

Trust Name |  | Moody’s Investors Service, Inc. Long-Term Ratings |  |  | Fitch Ratings, Inc. Long-Term Ratings |
MFL |  |  | Aa1 |  |  |  | AAA |

Any short-term ratings on VRDP Shares are directly related to the short-term ratings of the liquidity provider for such VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in the short-term credit ratings of the VRDP Shares as rated by Moody’s Investors Service (“Moody’s”) and Fitch. 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 Trust 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 Trusts have commenced or are set to commence a special rate period:

Trust Name |  | Commencement Date |  |  | Expiration Date as of Period Ended 08/31/20 |
MFL |  |  | 04/17/14 |  |  |  | 04/15/21 |

Prior to the expiration date, the VRDP Trust 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 Trust on the maturity date, (iii) VRDP Shares will not be remarketed or subject to optional or mandatory tender events, (iv) the VRDP Trust 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 Trust 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 Trust will pay nominal or no fees to the liquidity provider and remarketing agent.

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Notes to Financial Statements (continued)

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 year ended August 31, 2020, the annualized dividend rate for the VRDP Shares were as follows:

|  | MFL |
Dividend rates |  |  | 1.80 | %

For the year ended August 31, 2020, VRDP Shares issued and outstanding of each VRDP Trust remained constant.

VMTP Shares

BBK, BAF, BYM, BLE and MVF (collectively for purposes of this section, the “VMTP Trusts”) have issued SeriesW-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 Trust 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:

Trust Name |  | Issue Date |  |  | Shares Issued |  |  | Aggregate Principal |  |  | Term Redemption Date |  |  | Moody’s Rating |  |  | Fitch Rating |
BBK |  |  | 12/16/11 |  |  |  | 799 |  |  | $ | 79,900,000 |  |  |  | 07/02/21 |  |  |  | Aa1 |  |  |  | AAA |
BAF |  |  | 12/16/11 |  |  |  | 422 |  |  |  | 42,200,000 |  |  |  | 07/02/21 |  |  |  | Aa1 |  |  |  | AAA |
BYM |  |  | 12/16/11 |  |  |  | 1,372 |  |  |  | 137,200,000 |  |  |  | 07/02/21 |  |  |  | Aa1 |  |  |  | AAA |
BLE |  |  | 12/16/11 |  |  |  | 1,513 |  |  |  | 151,300,000 |  |  |  | 07/02/21 |  |  |  | Aa1 |  |  |  | AAA |
MVF |  |  | 12/16/11 |  |  |  | 2,438 |  |  |  | 243,800,000 |  |  |  | 07/02/21 |  |  |  | Aa1 |  |  |  | AAA |

Redemption Terms: Each VMTP Trust 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 Trust is required to begin to segregate liquid assets with its custodian to fund the redemption. In addition, a VMTP Trust 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.

Subject to certain conditions, VMTP Shares may be redeemed, in whole or in part, at any time at the option of the VMTP Trust. 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 Trust 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 year ended August 31, 2020, the average annualized dividend rates for the VMTP Shares were as follows:

|  | BBK |  |  | BAF |  |  | BYM |  |  | BLE |  |  | MVF |
Dividend rates |  |  | 1.67 | % |  |  | 1.67 | % |  |  | 1.67 | % |  |  | 1.67 | % |  |  | 1.67 | %

For the year ended August 31, 2020, VMTP Shares issued and outstanding of each VMTP Trust remained constant.

Offering Costs: The Trusts 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 Trust 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

NOTES TO FINANCIAL STATEMENTS |  | 89

Notes to Financial Statements (continued)

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:

Trust Name |  | Dividends Accrued |  |  | Deferred Offering Costs Amortization |
BBK |  | $ | 1,332,229 |  |  | $ | — |
BAF |  |  | 703,630 |  |  |  | — |
BYM |  |  | 2,287,632 |  |  |  | — |
BLE |  |  | 2,522,732 |  |  |  | — |
MFL |  |  | 4,956,348 |  |  |  | 16,984 |
MVF |  |  | 4,078,454 |  |  |  | — |

11. | SUBSEQUENT EVENTS

Management’s evaluation of the impact of all subsequent events on the Trusts’ financial statements was completed through the date the financial statements were issued and the following items were noted:

The Trusts declared and paid distributions to Common Shareholders and Preferred Shareholders as follows:

|  | Common Dividend Per Share |  |  | Common Dividend Per Share |  |  | Preferred Shares(a) |
Trust Name |  | Paid(b) |  |  | Declared(c) |  |  | Shares |  |  | Series |  |  | Declared |
BBK |  | $ | 0.061000 |  |  | $ | 0.065000 |  |  |  | VMTP |  |  |  | W-7 |  |  | $ | 66,523 |
BAF |  |  | 0.057500 |  |  |  | 0.061500 |  |  |  | VMTP |  |  |  | W-7 |  |  |  | 35,135 |
BYM |  |  | 0.048000 |  |  |  | 0.058000 |  |  |  | VMTP |  |  |  | W-7 |  |  |  | 114,230 |
BLE |  |  | 0.060000 |  |  |  | 0.062000 |  |  |  | VMTP |  |  |  | W-7 |  |  |  | 125,969 |
MFL |  |  | 0.045500 |  |  |  | 0.048500 |  |  |  | VRDP |  |  |  | W-7 |  |  |  | 211,427 |
MVF |  |  | 0.033500 |  |  |  | 0.033500 |  |  |  | VMTP |  |  |  | W-7 |  |  |  | 202,983 |

| (a) | Dividends declared for period September 1, 2020 to September 30, 2020. |

| (b) | Net investment income dividend paid on October 1, 2020 to Common Shareholders of record on September 15, 2020. |

| (c) | Net investment income dividend declared on October 1, 2020, payable to Common Shareholders of record on October 15, 2020. |

On September 28, 2020, each Trust announced a continuation of its open market share repurchase program. Commencing on December 1, 2020, each Trust may repurchase through November 30, 2021, up to 5% of its common shares outstanding as of the close of business on November 30, 2020, subject to certain conditions. There is no assurance that the Trusts will purchase shares in any particular amounts.

90 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees/Directors of

BlackRock Municipal Bond Trust,

BlackRock Municipal Income Investment Quality Trust,

BlackRock Municipal Income Quality Trust,

BlackRock Municipal Income Trust II,

BlackRock MuniHoldings Investment Quality Fund, and

BlackRock MuniVest Fund, Inc.:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities of BlackRock Municipal Bond Trust, BlackRock Municipal Income Investment Quality Trust, BlackRock Municipal Income Quality Trust, BlackRock Municipal Income Trust II, BlackRock MuniHoldings Investment Quality Fund, and BlackRock MuniVest Fund, Inc. (the “Funds”), including the schedules of investments, as of August 31, 2020, the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of August 31, 2020, and the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of August 31, 2020, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Deloitte &Touche LLP

Boston, Massachusetts

October 21, 2020

We have served as the auditor of one or more BlackRock investment companies since 1992.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |  | 91

Disclosure of Investment Advisory Agreement

The Boards of Directors/Trustees, as applicable (collectively, the “Board,” the members of which are referred to as “Board Members”) of BlackRock Municipal Income Quality Trust (“BYM”), BlackRock Municipal Income Investment Quality Trust (“BAF”), BlackRock Municipal Bond Trust (“BBK”), BlackRock Municipal Income Trust II (“BLE”), BlackRock MuniHoldings Investment Quality Fund (“MFL”) and BlackRock MuniVest Fund, Inc. (“MVF” and together with BYM, BAF, BBK, BLE and MFL, the “Funds” and each, a “Fund”) met on April 16, 2020 (the “April Meeting”) and May 20-21, 2020 (the “May Meeting”) to consider the approval of the investment advisory agreements (the “Advisory Agreements” or the “Agreements”) between each Fund and BlackRock Advisors, LLC (the “Manager” or “BlackRock”), each Fund’s investment advisor.

Activities and Composition of the Board

On the date of the May Meeting, the Board consisted of ten individuals, eight of whom were not “interested persons” of each Fund as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of each Fund and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Co-Chairs of the Board are Independent Board Members. The Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Executive Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Executive Committee, which also has one interested Board Member).

The Agreements

Consistent with the requirements of the 1940 Act, the Board considers the continuation of the Agreements on an annual basis. The Board has four quarterly meetings per year, each typically extending for two days, and additional in-person and telephonic meetings throughout the year, as needed. While the Board also has a fifth one-day meeting to consider specific information surrounding the renewal of the Agreements, the Board’s consideration entails a year-long deliberative process whereby the Board and its committees assess BlackRock’s services to each Fund. In particular, the Board assessed, among other things, the nature, extent and quality of the services provided to each Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management services; accounting oversight; administrative and shareholder services; oversight of each Fund’s service providers; risk management and oversight; and legal, regulatory and compliance services. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of BlackRock’s management.

During the year, the Board, acting directly and through its committees, considers information that is relevant to its annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to each Fund and its shareholders. BlackRock also furnished additional information to the Board in response to specific questions from the Board. This additional information is discussed further in the section titled “Board Considerations in Approving the Agreements.” Among the matters the Board considered were: (a) investment performance for one-year, three-year, five-year, and/or since inception periods, as applicable, against peer funds, applicable benchmarks, and other performance metrics, as applicable, as well as BlackRock senior management’s and portfolio managers’ analyses of the reasons for any outperformance or underperformance relative to its peers, benchmarks, and other performance metrics, as applicable; (b) leverage management, as applicable; (c) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by each Fund for services; (d) Fund operating expenses and how BlackRock allocates expenses to each Fund; (e) the resources devoted to risk oversight of, and compliance reports relating to, implementation of each Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (f) BlackRock’s and each Fund’s adherence to applicable compliance policies and procedures; (g) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of such services; (h) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (i) BlackRock’s implementation of the proxy voting policies approved by the Board; (j) execution quality of portfolio transactions; (k) BlackRock’s implementation of each Fund’s valuation and liquidity procedures; (l) an analysis of management fees for products with similar investment mandates across the open-end fund, closed-end fund, sub-advised mutual fund, collective investment trust and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to each Fund; (m) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; (n) periodic updates on BlackRock’s business; and (o) each Fund’s market discount/premium compared to peer funds.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April Meeting, the Board requested and received materials specifically relating to the Agreements. The Independent Board Members are continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to the Board to better assist its deliberations. The materials provided in connection with the April Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on Lipper classifications, regarding each Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of each Fund as compared with a peer group of funds (“Performance Peers”); (b) information on the composition of the Expense Peers and Performance Peers and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts, sub-advised mutual funds, closed-end funds, and open-end funds, under similar investment mandates, as applicable; (e) a review of non-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with each Fund; (g) a summary of aggregate amounts paid by each Fund to BlackRock; and (h) various additional information requested by the Board as appropriate regarding BlackRock’s and each Fund’s operations.

At the April Meeting, the Board reviewed materials relating to its consideration of the Agreements. As a result of the discussions that occurred during the April Meeting, and as a culmination of the Board’s year-long deliberative process, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these questions and requests with additional written information in advance of the May Meeting. Topics covered included: (a) the methodology for measuring estimated fund profitability; (b) fund expenses and potential fee waivers; (c) differences in services provided and management fees between closed-end funds and other product channels; and (d) BlackRock’s option overwrite strategy.

92 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Disclosure of Investment Advisory Agreements (continued)

At the May Meeting, the Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of each Fund as compared to its Performance Peers and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with each Fund; (d) each Fund’s fees and expenses compared to its Expense Peers; (e) the existence and sharing of potential economies of scale; (f) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with each Fund; and (g) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of Fund portfolio holdings. The Board noted the willingness of BlackRock’s personnel to engage in open, candid discussions with the Board. The Board did not identify any particular information as determinative, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock

The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services, and the resulting performance of each Fund. Throughout the year, the Board compared Fund performance to the performance of a comparable group of closed-end funds, relevant benchmarks, and performance metrics, as applicable. The Board met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. The Board also reviewed the materials provided by each Fund’s portfolio management team discussing each Fund’s performance, investment strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and each Fund’s portfolio management team; research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. The Board engaged in a review of BlackRock’s compensation structure with respect to each Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Board considered the nature and quality of the administrative and other non-investment advisory services provided to each Fund. BlackRock and its affiliates provide each Fund with certain administrative, shareholder and other services (in addition to any such services provided to each Fund by third-parties) and officers and other personnel as are necessary for the operations of each Fund. In particular, BlackRock and its affiliates provide each Fund with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus and the statement of additional information in connection with the initial public offering and periodic shareholder reports; (ii) preparing communications with analysts to support secondary market trading of each Fund; (iii) oversight of daily accounting and pricing; (iv) responsibility for periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities of third-party service providers including, among others, each Fund’s custodian, fund accountant, transfer agent, and auditor; (vi) organizing Board meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; (viii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain closed-end funds; and (ix) performing or managing administrative functions necessary for the operation of each Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal & compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of each Fund and BlackRock

The Board, including the Independent Board Members, also reviewed and considered the performance history of each Fund. In preparation for the April Meeting, the Board was provided with reports independently prepared by Broadridge, which included an analysis of each Fund’s performance as of December 31, 2019, as compared to its Performance Peers. The performance information is based on net asset value (NAV), and utilizes Lipper data. Lipper’s methodology calculates a fund’s total return assuming distributions are reinvested on the ex-date at a fund’s ex-date NAV. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of each Fund as compared to its Performance Peers and a custom peer group of funds as defined by BlackRock (“Customized Peer Group”) and a composite measuring a blend of total return and yield (“Composite”). The Board and its Performance Oversight Committee regularly review and meet with Fund management to discuss the performance of each Fund throughout the year.

In evaluating performance, the Board focused particular attention on funds with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and its Performance Peers (for example, the investment objectives and strategies). Further, the Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to disproportionately affect long-term performance.

The Board noted that for the one-, three- and five-year periods reported, BYM ranked in the third, fourth and fourth quartiles, respectively, against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for BYM, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed BYM’s underperformance relative to its Customized Peer Group Composite during the applicable periods.

DISCLOSURE OF INVESTMENT ADVISORY AGREEMENTS |  | 93

Disclosure of Investment Advisory Agreements (continued)

The Board noted that for the one-, three- and five-year periods reported, BAF ranked in third, fourth, and fourth quartiles, respectively, against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for BAF, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed BAF’s underperformance relative to its Customized Peer Group Composite during the applicable periods.

The Board noted that for the one-, three- and five-year periods reported, BBK ranked in the first, first and second quartiles, respectively, against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for BBK, and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for the one-, three- and five-year periods reported, BLE ranked in the third, first and first quartiles, respectively, against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for BLE, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed BLE’s underperformance relative to its Customized Peer Group Composite during the applicable period.

The Board noted that for the one-, three- and five-year periods reported, MFL ranked in the third, third, and fourth quartiles, respectively, against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MFL, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed MFL’s underperformance relative to its Customized Peer Group Composite during the applicable periods.

The Board noted that for each of the one-, three- and five-year periods reported, MVF ranked in the first quartile against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MVF, and that BlackRock has explained its rationale for this belief to the Board.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with each Fund

The Board, including the Independent Board Members, reviewed each Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared each Fund’s total expense ratio, as well as its actual management fee rate as a percentage of managed assets, which is the total assets of each Fund (including any assets attributable to money borrowed for investment purposes) minus the sum of each Fund’s accrued liabilities (other than money borrowed for investment purposes) to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, excluding any investment related expenses. The total expense ratio gives effect to any expense reimbursements or fee waivers, and the actual management fee rate gives effect to any management fee reimbursements or waivers. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

The Board received and reviewed statements relating to BlackRock’s financial condition. The Board reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. The Board reviewed BlackRock’s estimated profitability with respect to each Fund and other funds the Board currently oversees for the year ended December 31, 2019 compared to available aggregate estimated profitability data provided for the prior two years. The Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at the individual fund level is difficult.

The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available. The Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly traded asset management firms. The Board considered the differences between BlackRock and these other firms, including the contribution of technology at BlackRock, BlackRock’s expense management, and the relative product mix.

The Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRock’s commitment of time, assumption of risk, and liability profile in servicing each Fund, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, closed-end fund, sub-advised mutual fund, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that BYM’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and third quartiles, respectively, relative to the Expense Peers.

The Board noted that BAF’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and third quartiles, respectively, relative to the Expense Peers. Given BAF’s relatively small size, the Board and BlackRock discussed potential strategic actions for BAF.

The Board noted that BBK’s contractual management fee rate ranked in the fourth quartile, and that the actual management fee rate and total expense ratio ranked in the second and third quartiles, respectively, relative to the Expense Peers. In addition, the Board noted that BlackRock had agreed to voluntarily waive a portion of the advisory fee payable by BBK. An advisory fee waiver has been in effect since 2019, the amount of which may have varied from time to time. After discussions between the Board, including Independent Board Members, and BlackRock, the Board and BlackRock agreed to a continuation of the current 7.5 basis points voluntary advisory fee waiver. Given BBK’s relatively small size, the Board and BlackRock discussed potential strategic actions for BBK.

94 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Disclosure of Investment Advisory Agreements (continued)

The Board noted that BLE’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and second quartiles, respectively, relative to the Expense Peers.

The Board noted that MFL’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and third quartiles, respectively, relative to the Expense Peers.

The Board noted that MVF’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Expense Peers.

D. Economies of Scale

The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of each Fund increase. The Board also considered the extent to which each Fund benefits from such economies of scale in a variety of ways, and whether there should be changes in the advisory fee rate or breakpoint structure in order to enable each Fund to more fully participate in these economies of scale. The Board considered each Fund’s asset levels and whether the current fee was appropriate.

Based on the Board’s review and consideration of the issue, the Board concluded that most closed-end funds do not have fund level breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering. Closed-end funds are typically priced at scale at a fund’s inception.

E. Other Factors Deemed Relevant by the Board Members

The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with each Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and its risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to each Fund, including for administrative, securities lending and cash management services. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third-party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with its consideration of the Agreements, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Board noted the competitive nature of the closed-end fund marketplace, and that shareholders are able to sell their Fund shares in the secondary market if they believe that each Fund’s fees and expenses are too high or if they are dissatisfied with the performance of each Fund.

The Board also considered the various notable initiatives and projects BlackRock performed in connection with its closed-end fund product line. These initiatives included developing equity shelf programs; efforts to eliminate product overlap with fund mergers; ongoing services to manage leverage that has become increasingly complex; periodic evaluation of share repurchases and other support initiatives for certain BlackRock funds; and continued communication efforts with shareholders, fund analysts and financial advisers. With respect to the latter, the Independent Board Members noted BlackRock’s continued commitment to supporting the secondary market for the common shares of its closed-end funds through a comprehensive secondary market communication program designed to raise investor and analyst awareness and understanding of closed-end funds. BlackRock’s support services included, among other things: sponsoring and participating in conferences; communicating with closed-end fund analysts covering the BlackRock funds throughout the year; providing marketing and product updates for the closed-end funds; and maintaining and enhancing its closed-end fund website.

Conclusion

The Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreements between the Manager and each Fund for a one-year term ending June 30, 2021. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund and its shareholders. In arriving at its decision to approve the Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

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Fund Investment Objectives, Policies and Risks

Recent Changes

The following information is a summary of certain changes since August 31, 2019. This information may not reflect all of the changes that have occurred since you purchased the relevant Fund.

Effective March 24, 2020, MFL may enter into reverse repurchase agreements. The Fund’s use of reverse repurchase agreements may generate taxable income for the Fund and may increase the amount of ordinary income distributions paid to shareholders. See “Risk Factors—Reverse Repurchase Agreements” below for a discussion of the risks associated with the use of reverse repurchase agreements to which MFL is now subject.

Except as noted above, during each Fund’s most recent fiscal year, there were no material changes in the Fund’s investment objectives or policies that have not been approved by shareholders or in the principal risk factors associated with investment in the Fund.

Investment Objectives and Policies

BlackRock Municipal Bond Trust (BBK)

The Fund’s investment objective is to provide current income exempt from regular federal income taxes. As a fundamental policy, under normal market conditions, the Fund will invest at least 80% of its managed assets in municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities (“Municipal Bonds”) the interest of which is exempt from regular federal income tax. The Fund cannot change its investment objective or the foregoing fundamental policy without the approval of the holders of a majority of the outstanding common shares and the outstanding preferred shares, including the variable rate muni term preferred shares (“VMTP Shares”), voting together as a single class, and of the holders of a majority of the outstanding preferred shares, including the VMTP Shares, voting as a separate class. A majority of the outstanding means (1) 67% or more of the shares present at a meeting, if the holders of more than 50% of the outstanding shares are present or represented by proxy, or (2) more than 50% of the outstanding shares, whichever is less.

The Fund’s investment policies provide that, under normal market conditions, the Fund will invest at least 80% of its managed assets in investment grade quality Municipal Bonds. Investment grade quality means that such bonds are rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody’s, S&P or Fitch) or are unrated but judged to be of comparable quality by BlackRock Advisors, LLC (the “Manager”). Municipal Bonds rated Baa by Moody’s are investment grade, but Moody’s considers Municipal Bonds rated Baa to have speculative characteristics. Changes in economic conditions or other circumstances are more likely to lead to a weakened capacity for issuers of Municipal Bonds that are rated BBB or Baa (or that have equivalent ratings) to make principal and interest payments than is the case for issues of higher grade Municipal Bonds. In the case of short term notes, the investment grade rating categories are SP-1+ through SP-2 for S&P, MIG-1 through MIG-3 for Moody’s and F-1+ through F-3 for Fitch. In the case of tax exempt commercial paper, the investment grade rating categories are A-1+ through A-3 for S&P, Prime-1 through Prime-3 for Moody’s and F-1+ through F-3 for Fitch. Obligations ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for S&P; Baa, MIG-3 and Prime-3 for Moody’s and BBB and F-3 for Fitch), while considered “investment grade,” may have certain speculative characteristics. There may be sub-categories or gradations indicating relative standing within the rating categories set forth above. In assessing the quality of Municipal Bonds with respect to the foregoing requirements, the Manager takes into account the nature of any letters of credit or similar credit enhancement to which particular Municipal Bonds are entitled and the creditworthiness of the financial institution that provided such credit enhancement.

The Fund may invest up to 20% of its managed assets in Municipal Bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by the Manager. Bonds of below investment grade quality are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. Such securities are sometimes referred to as “high yield” or “junk” bonds.

The foregoing credit quality policies apply only at the time a security is purchased, and the Fund is not required to dispose of a security if a rating agency downgrades its assessment of the credit characteristics of a particular issue. In determining whether to retain or sell a security that a rating agency has downgraded, the Manager may consider such factors as the Manager’s assessment of the credit quality of the issuer of the security, the price at which the security could be sold and the rating, if any, assigned to the security by other rating agencies. In the event that the Fund disposes of a portfolio security subsequent to its being downgraded, the Fund may experience a greater risk of loss than if such security had been sold prior to such downgrade.

The Fund may also invest in securities of other open- or closed-end investment companies that invest primarily in Municipal Bonds of the types in which the Fund may invest directly and in tax-exempt preferred shares that pay dividends that are exempt from regular federal income tax. In addition, the Fund may purchase Municipal Bonds that are additionally secured by insurance, bank credit agreements or escrow accounts. The credit quality of companies which provide these credit enhancements will affect the value of those securities. Although the insurance feature reduces certain financial risks, the premiums for insurance and the higher market price paid for insured obligations may reduce the Fund’s income. The insurance feature does not guarantee the market value of the insured obligations or the net asset value of the common shares. The Fund may purchase insured bonds and may purchase insurance for bonds in its portfolio.

The Fund may invest in certain tax exempt securities classified as “private activity bonds” (or industrial development bonds, under pre-1986 law) (“PABs”) (in general, bonds that benefit non-governmental entities) that may subject certain investors in the Fund to an alternative minimum tax. The percentage of the Fund’s total assets invested in PABs will vary from time to time. The Fund has not established any limit on the percentage of its portfolio that may be invested in Municipal Bonds subject to the federal alternative minimum tax provisions of federal tax law, and the Fund expects that a portion of the income it produces will be includable in alternative minimum taxable income. VMTP Shares therefore would not ordinarily be a suitable investment for investors who are subject to the federal alternative minimum tax or who would become subject to such tax by purchasing VMTP Shares. The suitability of an investment in VMTP Shares will depend upon a comparison of the after-tax yield likely to be provided from the Fund with that from comparable tax-exempt investments not subject to the alternative minimum tax, and from comparable fully taxable investments, in light of each such investor’s tax position. Special considerations may apply to corporate investors.

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Fund Investment Objectives, Policies and Risks (continued)

The average maturity of the Fund’s portfolio securities varies from time to time based upon an assessment of economic and market conditions by the Manager. The Fund’s portfolio at any given time may include both long- term and intermediate-term Municipal Bonds.

The Fund’s stated expectation is that it will invest in Municipal Bonds that, in the Manager’s opinion, are underrated or undervalued. Underrated Municipal Bonds are those whose ratings do not, in the opinion of the Manager, reflect their true higher creditworthiness. Undervalued Municipal Bonds are bonds that, in the opinion of the Manager, are worth more than the value assigned to them in the marketplace. The Manager may at times believe that bonds associated with a particular municipal market sector (for example, but not limited to electric utilities), or issued by a particular municipal issuer, are undervalued. The Manager may purchase those bonds for the Fund’s portfolio because they represent a market sector or issuer that the Manager considers undervalued, even if the value of those particular bonds appears to be consistent with the value of similar bonds. Municipal Bonds of particular types (for example, but not limited to hospital bonds, industrial revenue bonds or bonds issued by a particular municipal issuer) may be undervalued because there is a temporary excess of supply in that market sector, or because of a general decline in the market price of Municipal Bonds of the market sector for reasons that do not apply to the particular Municipal Bonds that are considered undervalued. The Fund’s investment in underrated or undervalued Municipal Bonds will be based on the Manager’s belief that their yield is higher than that available on bonds bearing equivalent levels of interest rate risk, credit risk and other forms of risk, and that their prices will ultimately rise, relative to the market, to reflect their true value. Any capital appreciation realized by the Fund will generally result in capital gain distributions subject to federal capital gains taxation.

The Fund ordinarily does not intend to realize significant investment income not exempt from federal income tax. From time to time, the Fund may realize taxable capital gains.

Federal tax legislation has limited the types and volume of bonds the interest on which qualifies for a federal income tax exemption. As a result, this legislation and legislation that may be enacted in the future may affect the availability of Municipal Bonds for investment by the Fund.

The Fund may purchase and sell futures contracts, enter into various interest rate transactions and swap contracts (including, but not limited to, credit default swaps) and may purchase and sell exchange- listed and over-the-counter put and call options on securities, financial indices and futures contracts. These derivative transactions may be used for duration management and other risk management to attempt to protect against possible changes in the market value of the Fund’s portfolio resulting from trends in the debt securities markets and changes in interest rates, to protect the Fund’s unrealized gains in the value of its portfolio securities, to facilitate the sale of such securities for investment purposes, to establish a position in the securities markets as a temporary substitute for purchasing particular securities and to enhance income or gain.

Leverage: The Fund may utilize leverage to seek to enhance the yield and net asset value of its common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of VMTP Shares and residual interest municipal tender option bonds (“TOB Residuals”), which are derivative interests in municipal bonds. The TOB Residuals in which the Fund will invest pay interest or income that, in the opinion of counsel to the issuer of such TOB Residuals, is exempt from regular U.S. federal income tax.

The Fund may enter into reverse repurchase agreements with respect to its portfolio investments subject to the Fund’s investment restrictions.

The Fund reserves the right to borrow funds subject to the Fund’s investment restrictions. The proceeds of borrowings may be used for any valid purpose including, without limitation, liquidity, investments and repurchases of shares of the Fund.

Other Investment Policies: The Fund may invest up to 10% of its total assets in securities of other open- or closed-end investment companies that invest primarily in Municipal Bonds of the types in which the Fund may invest directly, subject to certain requirements.

The Fund may invest up to 15% of its total assets in preferred interests of other investment funds that pay dividends that are exempt from regular federal income tax, subject to certain requirements.

During temporary defensive periods (e.g., times when, in the Manager’s opinion, temporary imbalances of supply and demand or other temporary dislocations in the tax-exempt bond market adversely affect the price at which long-term or intermediate-term Municipal Bonds are available), and in order to keep cash on hand fully invested, the Fund may invest up to 100% of its total assets in liquid, short-term investments including high quality, short-term securities which may be either tax-exempt or taxable and securities of other open- or closed-end investment companies that invest primarily in Municipal Bonds of the type in which the Fund may invest directly. The Fund intends to invest in taxable short-term investments only in the event that suitable tax-exempt temporary investments are not available at reasonable prices and yields. The Fund’s stated expectation is that it will invest only in taxable temporary investments which are U.S. government securities or securities rated within the highest grade by Moody’s, S&P or Fitch, and which mature within one year from the date of purchase or carry a variable or floating rate of interest (such short-term obligations being referred to herein as “Temporary Investments”). Temporary Investments of the Fund may include certificates of deposit issued by U.S. banks with assets of at least $1 billion, commercial paper or corporate notes, bonds or debentures with a remaining maturity of one year or less, or repurchase agreements. To the extent the Fund invests in Temporary Investments, the Fund will not at such times be in a position to achieve its investment objective of tax-exempt income.

Short-term taxable fixed-income investments include, without limitation, the following: (i) U.S. Government securities, including bills, notes and bonds differing as to maturity and rates of interest that are either issued or guaranteed by the U.S. Treasury or by U.S. Government agencies or instrumentalities, (ii) certificates of deposit issued against funds deposited in a bank or a savings and loan association, (iii) repurchase agreements, which involve purchases of debt securities, and (iv) commercial paper, which consists of short-term unsecured promissory notes, including variable rate master demand notes issued by corporations to finance their current operations. Short-term tax-exempt fixed-income securities are securities that are exempt from regular federal income tax and mature within three years or less from the date of issuance.

Short-term tax-exempt fixed-income securities include, without limitation, the following: (i) Bond Anticipation Notes (“BANs”), which are usually general obligations of state and local governmental issuers which are sold to obtain interim financing for projects that will eventually be funded through the sale of long-term debt obligations or bonds, (ii) Tax Anticipation Notes (“TANs”), which are issued by state and local governments to finance the current operations of such governments, (iii) Revenue Anticipation Notes (“RANs”), which are issued by governments or governmental bodies with the expectation that future revenues from a designated source will be used to repay the notes, (iv) Construction Loan Notes, which are issued to provide construction financing for specific projects, (v) Bank Notes, which are notes issued by local government bodies and agencies to

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Fund Investment Objectives, Policies and Risks (continued)

commercial banks as evidence of borrowings, and (vi) Tax-Exempt Commercial Paper (“municipal paper”), which represents very short-term unsecured, negotiable promissory notes, issued by states, municipalities and their agencies.

The Fund may invest in variable rate demand obligations. The Fund may invest in all types of tax exempt instruments currently outstanding or to be issued in the future which satisfy its short-term maturity and quality standards.

Certain Municipal Bonds may carry variable or floating rates of interest whereby the rate of interest is not fixed by varies with changes in specified market rates or indices, such as a bank prime rate or tax-exempt money market indices.

The Fund may make short sales of Municipal Bonds. The Fund may make short sales to hedge positions, for duration and risk management, in order to maintain portfolio flexibility or to enhance income or gain. The Fund may not make a short sale if, after giving effect to such sale, the market value of all securities sold short exceeds 25% of the value of its total assets or the Fund’s aggregate short sales of a particular class of securities exceeds 25% of the outstanding securities of that class. The Fund may also make short sales “against the box” without respect to such limitations.

The Fund may invest in restricted and illiquid securities.

The Fund may invest in repurchase agreements as temporary investments. The Fund may only enter into repurchase agreements with registered securities dealers or domestic banks that, in the opinion of the Manager, present minimal credit risk.

The Fund may lend portfolio securities to certain borrowers determined to be creditworthy by the Manager, including to borrowers affiliated with the Manager.

BlackRock Municipal Income Investment Quality Trust (BAF)

The Fund’s investment objective is to provide current income exempt from federal income taxes, including the alternative minimum tax, and Florida intangible property tax. The Fund’s investment policies provide that, under normal circumstances, The Fund as a fundamental policy will invest at least 80% of its managed assets in in municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities (“Municipal Bonds”) that pay interest that is exempt from federal income tax, including the alternative minimum tax, and Florida intangible property tax. The Fund’s investment policies provide that the Fund will not invest in any bond if the interest on that bond is subject to the alternative minimum tax. The Fund cannot change its investment objectives or its policy of investing 80% of its managed assets in bonds that pay interest that is exempt from federal income tax, including the alternative minimum tax, and Florida intangible property tax, without the approval of the holders of a majority of the outstanding common shares and the outstanding preferred shares, including the variable rate muni term preferred shares (“VMTP Shares”), voting together as a single class, and of the holders of a majority of the outstanding preferred shares, including the VMTP Shares, voting as a separate class. A majority of the outstanding means (1) 67% or more of the shares present at a meeting, if the holders of more than 50% of the outstanding shares are present or represented by proxy, or (2) more than 50% of the outstanding shares, whichever is less.

The Fund invests primarily in municipal bonds that are investment grade quality at the time of investment. Investment grade quality means that such bonds are rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody’s, S&P or Fitch) or are unrated but judged to be of comparable quality by BlackRock Advisors, LLC (the “Manager”). Municipal Bonds rated Baa by Moody’s are investment grade, but Moody’s considers Municipal Bonds rated Baa to have speculative characteristics.

Changes in economic conditions or other circumstances are more likely to lead to a weakened capacity for issuers of Municipal Bonds that are rated BBB or Baa (or that have equivalent ratings) to make principal and interest payments than is the case for issues of higher grade Municipal Bonds. In the case of short term notes, the investment grade rating categories are SP-1+ through SP-2 for S&P, MIG-1 through MIG-3 for Moody’s and F-1+ through F-3 for Fitch. In the case of tax exempt commercial paper, the investment grade rating categories are A-1+ through A-3 for S&P, Prime-1 through Prime-3 for Moody’s and F-1+ through F-3 for Fitch. Obligations ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for S&P; Baa, MIG-3 and Prime-3 for Moody’s and BBB and F-3 for Fitch), while considered “investment grade,” may have certain speculative characteristics. There may be sub-categories or gradations indicating relative standing within the rating categories set forth above. In assessing the quality of Municipal Bonds with respect to the foregoing requirements, the Manager takes into account the nature of any letters of credit or similar credit enhancement to which particular Municipal Bonds are entitled and the creditworthiness of the financial institution that provided such credit enhancement.

The Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by the Manager to be of comparable quality, at the time of purchase, subject to the Fund’s other investment policies. Bonds of below investment grade quality are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. Such securities are sometimes referred to as “high yield” or “junk” bonds.

The foregoing credit quality policies apply only at the time a security is purchased, and the Fund is not required to dispose of a security if a rating agency downgrades its assessment of the credit characteristics of a particular issue. In determining whether to retain or sell a security that a rating agency has downgraded, Manager may consider such factors as the Manager’s assessment of the credit quality of the issuer of the security, the price at which the security could be sold and the rating, if any, assigned to the security by other rating agencies. In the event that the Fund disposes of a portfolio security subsequent to its being downgraded, the Fund may experience a greater risk of loss than if such security had been sold prior to such downgrade.

The Fund may purchase Municipal Bonds that are additionally secured by insurance, bank credit agreements or escrow accounts. The credit quality of companies which provide these credit enhancements will affect the value of those securities. Although the insurance feature reduces certain financial risks, the premiums for insurance and the higher market price paid for insured obligations may reduce the Fund’s income. The insurance feature does not guarantee the market value of the insured obligations or the net asset value of the common shares. The Fund may purchase insured bonds and may purchase insurance for bonds in its portfolio.

The average maturity of the Fund’s portfolio securities varies from time to time based upon an assessment of economic and market conditions by the Manager. The Fund’s portfolio at any given time may include both long- term and intermediate-term Municipal Bonds.

The Fund’s stated expectation is that it will invest in Municipal Bonds that, in the Manager’s opinion, are underrated or undervalued. Underrated Municipal Bonds are those whose ratings do not, in the opinion of the Manager, reflect their true higher creditworthiness. Undervalued Municipal Bonds are bonds that, in the opinion of the Manager, are

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Fund Investment Objectives, Policies and Risks (continued)

worth more than the value assigned to them in the marketplace. The Manager may at times believe that bonds associated with a particular municipal market sector (for example, but not limited to electric utilities), or issued by a particular municipal issuer, are undervalued. The Manager may purchase those bonds for the Fund’s portfolio because they represent a market sector or issuer that the Manager considers undervalued, even if the value of those particular bonds appears to be consistent with the value of similar bonds. Municipal Bonds of particular types (for example, but not limited to hospital bonds, industrial revenue bonds or bonds issued by a particular municipal issuer) may be undervalued because there is a temporary excess of supply in that market sector, or because of a general decline in the market price of Municipal Bonds of the market sector for reasons that do not apply to the particular Municipal Bonds that are considered undervalued. The Fund’s investment in underrated or undervalued Municipal Bonds will be based on the Manager’s belief that their yield is higher than that available on bonds bearing equivalent levels of interest rate risk, credit risk and other forms of risk, and that their prices will ultimately rise, relative to the market, to reflect their true value. Any capital appreciation realized by the Fund will generally result in capital gain distributions subject to federal capital gains taxation.

Federal tax legislation has limited the types and volume of bonds the interest on which qualifies for a federal income tax exemption. As a result, this legislation and legislation that may be enacted in the future may affect the availability of Municipal Bonds for investment by the Fund.

The State of Florida repealed the Florida Intangible Tax as of January 2007. As a result, on September 12, 2008, the Board of Trustees of the Fund voted unanimously to approve the Fund investing in Municipal Bonds regardless of geographic location. If Florida were to reinstate the Florida Intangible Tax or adopt a state income tax, however, the Fund would be required to realign its portfolio such that substantially all of its assets would be invested in Florida Municipal Bonds or obtain shareholder approval to amend the Fund’s fundamental investment objective to remove references to the Florida Intangible Tax. There can be no assurance that the State of Florida will not reinstate the Florida Intangible Tax or adopt a state income tax in the future. There can also be no assurance that the reinstatement of the Florida Intangible Tax or the adoption of a state income tax will not have a material adverse effect on the Fund or will not impair the ability of the Fund to achieve its investment objectives.

The Fund may purchase and sell futures contracts, enter into various interest rate transactions and swap contracts (including, but not limited to, credit default swaps) and may purchase and sell exchange- listed and over-the-counter put and call options on securities, financial indices and futures contracts. These derivative transactions may be used for duration management and other risk management to attempt to protect against possible changes in the market value of the Fund’s portfolio resulting from trends in the debt securities markets and changes in interest rates, to protect the Fund’s unrealized gains in the value of its portfolio securities, to facilitate the sale of such securities for investment purposes, to establish a position in the securities markets as a temporary substitute for purchasing particular securities and to enhance income or gain.

Leverage: The Fund may utilize leverage to seek to enhance the yield and net asset value of its common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of VMTP Shares and residual interest municipal tender option bonds (“TOB Residuals”), which are derivative interests in municipal bonds. The TOB Residuals in which the Fund will invest pay interest or income that, in the opinion of counsel to the issuer of such TOB Residuals, is exempt from regular U.S. federal income tax.

The Fund may enter into reverse repurchase agreements with respect to its portfolio investments subject to the Fund’s investment restrictions.

The Fund reserves the right to borrow funds subject to the Fund’s investment restrictions. The proceeds of borrowings may be used for any valid purpose including, without limitation, liquidity, investments and repurchases of shares of the Fund.

Other Investment Policies: The Fund may invest up to 10% of its total assets in securities of other open- or closed-end investment companies that invest primarily in Municipal Bonds of the types in which the Fund may invest directly, subject certain requirements.

The Fund may invest up to 15% of its total assets in preferred interests of other investment funds that pay dividends that are exempt from federal income tax, including the alternative minimum tax and Florida intangible property tax, subject to certain requirements.

During temporary defensive periods (e.g., times when, in Advisor’s opinion, temporary imbalances of supply and demand or other temporary dislocations in the tax-exempt bond market adversely affect the price at which long-term or intermediate-term Municipal Bonds are available), and in order to keep cash on hand fully invested, the Fund may invest up to 100% of its total assets in liquid, short-term investments including high quality, short-term securities which may be either tax-exempt or taxable and securities of other open- or closed-end investment companies that invest primarily in Municipal Bonds of the type in which the Fund may invest directly. The Fund intends to invest in taxable short-term investments only in the event that suitable tax-exempt temporary investments are not available at reasonable prices and yields. The Fund’s stated expectation is that it will invest only in taxable temporary investments which are U.S. government securities or securities rated within the highest grade by Moody’s, S&P or Fitch, and which mature within one year from the date of purchase or carry a variable or floating rate of interest (such short-term obligations being referred to herein as “Temporary Investments”). Temporary Investments of the Fund may include certificates of deposit issued by U.S. banks with assets of at least $1 billion, commercial paper or corporate notes, bonds or debentures with a remaining maturity of one year or less, or repurchase agreements. To the extent the Fund invests in Temporary Investments, the Fund will not at such times be in a position to achieve its investment objective of tax-exempt income.

Short-term taxable fixed-income investments include, without limitation, the following: (i) U.S. Government securities, including bills, notes and bonds differing as to maturity and rates of interest that are either issued or guaranteed by the U.S. Treasury or by U.S. Government agencies or instrumentalities, (ii) certificates of deposit issued against funds deposited in a bank or a savings and loan association, (iii) repurchase agreements, which involve purchases of debt securities, and (iv) commercial paper, which consists of short-term unsecured promissory notes, including variable rate master demand notes issued by corporations to finance their current operations. Short-term tax-exempt fixed-income securities are securities that are exempt from regular federal income tax and mature within three years or less from the date of issuance.

Short-term tax-exempt fixed-income securities include, without limitation, the following: (i) Bond Anticipation Notes (“BANs”), which are usually general obligations of state and local governmental issuers which are sold to obtain interim financing for projects that will eventually be funded through the sale of long-term debt obligations or bonds, (ii) Tax Anticipation Notes (“TANs”), which are issued by state and local governments to finance the current operations of such governments, (iii) Revenue Anticipation Notes (“RANs”), which are issued by governments or governmental bodies with the expectation that future revenues from a designated source will be used to repay the notes, (iv) Construction Loan Notes, which are issued to provide construction financing for specific projects, (v) Bank Notes, which are notes issued by local government bodies and agencies to

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Fund Investment Objectives, Policies and Risks (continued)

commercial banks as evidence of borrowings, and (vi) Tax-Exempt Commercial Paper (“municipal paper”), which represents very short-term unsecured, negotiable promissory notes, issued by states, municipalities and their agencies.

The Fund may invest in variable rate demand obligations. The Fund may invest in all types of tax exempt instruments currently outstanding or to be issued in the future which satisfy its short term maturity and quality standards.

Certain Municipal Bonds may carry variable or floating rates of interest whereby the rate of interest is not fixed but varies with changes in specified market rates or indices, such as a bank prime rate or tax-exempt money market indices.

The Fund may make short sales of Municipal Bonds. The Fund may make short sales to hedge positions, for duration and risk management, in order to maintain portfolio flexibility or to enhance income or gain.

The Fund may not make a short sale if, after giving effect to such sale, the market value of all securities sold short exceeds 25% of the value of its total assets or the Fund’s aggregate short sales of a particular class of securities exceeds 25% of the outstanding securities of that class. The Fund may also make short sales “against the box” without respect to such limitations.

The Fund may invest in restricted and illiquid securities.

The Fund may invest in repurchase agreements as temporary investments. The Fund may only enter into repurchase agreements with registered securities dealers or domestic banks that, in the opinion of the Advisor, present minimal credit risk.

The Fund may lend portfolio securities to certain borrowers determined to be creditworthy by the Manager, including to borrowers affiliated with the Manager.

BlackRock Municipal Income Quality Trust (BYM)

The Fund’s investment objective is to provide current income exempt from federal income taxes, including the alternative minimum tax. The Fund’s investment policies provide that, under normal circumstances, the Fund as a fundamental policy will invest at least 80% of its managed assets in securities that pay interest that is, or make other distributions that are, exempt from federal income tax, including the alternative minimum tax and/or state and local personal taxes, regardless of the technical structure of the issuer of the instrument (“Municipal Bonds”) that pay interest that is exempt from federal income tax, including the alternative minimum tax. The Fund’s investment policies provide that the Fund will not invest in any bond if the interest on that bond is subject to the alternative minimum tax. The Fund cannot change its investment objectives or its policy of investing 80% of its managed assets in bonds that pay interest that is exempt from federal income tax, including the alternative minimum tax without the approval of the holders of a majority of the outstanding common shares and the outstanding preferred shares, including the variable rate muni term preferred shares (“VMTP Shares”), voting together as a single class, and of the holders of a majority of the outstanding preferred shares, including the VMTP Shares, voting as a separate class. A majority of the outstanding means (1) 67% or more of the shares present at a meeting, if the holders of more than 50% of the outstanding shares are present or represented by proxy, or (2) more than 50% of the outstanding shares, whichever is less.

The Fund invests at least 80% of its managed assets in municipal bonds that are investment grade quality at the time of investment. Investment grade quality means that such bonds are rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody’s, S&P or Fitch) or are unrated but judged to be of comparable quality by BlackRock Advisors, LLC (the “Manager”). Municipal Bonds rated Baa by Moody’s are investment grade, but Moody’s considers Municipal Bonds rated Baa to have speculative characteristics. Changes in economic conditions or other circumstances are more likely to lead to a weakened capacity for issuers of Municipal Bonds that are rated BBB or Baa (or that have equivalent ratings) to make principal and interest payments than is the case for issues of higher grade Municipal Bonds. In the case of short term notes, the investment grade rating categories are SP-1+ through SP-2 for S&P, MIG-1 through MIG-3 for Moody’s and F-1+ through F-3 for Fitch. In the case of tax exempt commercial paper, the investment grade rating categories are A-1+ through A-3 for S&P, Prime-1 through Prime-3 for Moody’s and F-1+ through F-3 for Fitch. Obligations ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for S&P; Baa, MIG-3 and Prime-3 for Moody’s and BBB and F-3 for Fitch), while considered “investment grade,” may have certain speculative characteristics. There may be sub-categories or gradations indicating relative standing within the rating categories set forth above. In assessing the quality of Municipal Bonds with respect to the foregoing requirements, the Manager takes into account the nature of any letters of credit or similar credit enhancement to which particular Municipal Bonds are entitled and the creditworthiness of the financial institution that provided such credit enhancement.

The Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by the Manager to be of comparable quality, at the time of purchase, subject to the Fund’s other investment policies. Bonds of below investment grade quality are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. Such securities are sometimes referred to as “high yield” or “junk” bonds.

The foregoing credit quality policies apply only at the time a security is purchased, and the Fund is not required to dispose of a security if a rating agency downgrades its assessment of the credit characteristics of a particular issue. In determining whether to retain or sell a security that a rating agency has downgraded, the Manager may consider such factors as the Manager’s assessment of the credit quality of the issuer of the security, the price at which the security could be sold and the rating, if any, assigned to the security by other rating agencies. In the event that the Fund disposes of a portfolio security subsequent to its being downgraded, the Fund may experience a greater risk of loss than if such security had been sold prior to such downgrade.

The Fund may purchase Municipal Bonds that are additionally secured by insurance, bank credit agreements or escrow accounts. The credit quality of companies which provide these credit enhancements will affect the value of those securities. Although the insurance feature reduces certain financial risks, the premiums for insurance and the higher market price paid for insured obligations may reduce the Fund’s income. The insurance feature does not guarantee the market value of the insured obligations or the net asset value of the common shares. The Fund may purchase insured bonds and may purchase insurance for bonds in its portfolio.

The average maturity of the Fund’s portfolio securities varies from time to time based upon an assessment of economic and market conditions by the Manager. The Fund’s portfolio at any given time may include both long-term and intermediate-term Municipal Bonds.

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Fund Investment Objectives, Policies and Risks (continued)

The Fund’s stated expectation is that it will invest in Municipal Bonds that, in the Manager’s opinion, are underrated or undervalued. Underrated Municipal Bonds are those whose ratings do not, in the opinion of the Manager, reflect their true higher creditworthiness. Undervalued Municipal Bonds are bonds that, in the opinion of the Manager, are worth more than the value assigned to them in the marketplace. The Manager may at times believe that bonds associated with a particular municipal market sector (for example, but not limited to electric utilities), or issued by a particular municipal issuer, are undervalued. The Manager may purchase those bonds for the Fund’s portfolio because they represent a market sector or issuer that the Manager considers undervalued, even if the value of those particular bonds appears to be consistent with the value of similar bonds. Municipal Bonds of particular types (for example, but not limited to hospital bonds, industrial revenue bonds or bonds issued by a particular municipal issuer) may be undervalued because there is a temporary excess of supply in that market sector, or because of a general decline in the market price of Municipal Bonds of the market sector for reasons that do not apply to the particular Municipal Bonds that are considered undervalued. The Fund’s investment in underrated or undervalued Municipal Bonds will be based on the Manager’s belief that their yield is higher than that available on bonds bearing equivalent levels of interest rate risk, credit risk and other forms of risk, and that their prices will ultimately rise, relative to the market, to reflect their true value. Any capital appreciation realized by the Fund will generally result in capital gain distributions subject to federal capital gains taxation.

The Fund ordinarily does not intend to realize significant investment income not exempt from federal income tax. From time to time, the Fund may realize taxable capital gains. Federal tax legislation has limited the types and volume of bonds the interest on which qualifies for a federal income tax exemption. As a result, this legislation and legislation that may be enacted in the future may affect the availability of Municipal Bonds for investment by the Fund.

The Fund may purchase and sell futures contracts, enter into various interest rate transactions and may purchase and sell exchange-listed and over-the-counter put and call options on securities, financial indices and futures contracts. These derivative transactions may be used for duration management and other risk management to attempt to protect against possible changes in the market value of the Fund’s portfolio resulting from trends in the debt securities markets and changes in interest rates, to protect the Fund’s unrealized gains in the value of its portfolio securities, to facilitate the sale of such securities for investment purposes, to establish a position in the securities markets as a temporary substitute for purchasing particular securities and to enhance income or gain.

Leverage: The Fund may utilize leverage to seek to enhance the yield and net asset value of its common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of VMTP Shares and residual interest municipal tender option bonds (“TOB Residuals”), which are derivative interests in municipal bonds. The TOB Residuals in which the Fund will invest pay interest or income that, in the opinion of counsel to the issuer of such TOB

Residuals, is exempt from regular U.S. federal income tax.

The Fund may enter into reverse repurchase agreements with respect to its portfolio investments subject to the Fund’s investment restrictions.

The Fund reserves the right to borrow funds subject to the Fund’s investment restrictions. The proceeds of borrowings may be used for any valid purpose including, without limitation, liquidity, investments and repurchases of shares of the Fund.

Other Investment Policies: The Fund may invest up to 10% of its total assets in securities of other open- or closed-end investment companies that invest primarily in Municipal Bonds of the types in which the Fund may invest directly, subject certain requirements.

The Fund may invest up to 15% of its total assets in preferred interests of other investment funds that pay dividends that are exempt from federal income tax, including the alternative minimum tax, subject to certain requirements.

During temporary defensive periods (e.g., times when, in the Manger’s opinion, temporary imbalances of supply and demand or other temporary dislocations in the tax-exempt bond market adversely affect the price at which long-term or intermediate-term Municipal Bonds are available), and in order to keep cash on hand fully invested, the Fund may invest up to 100% of its total assets in liquid, short-term investments including high quality, short-term securities which may be either tax-exempt or taxable and securities of other open- or closed-end investment companies that invest primarily in Municipal Bonds of the type in which the Fund may invest directly. The Fund intends to invest in taxable short-term investments only in the event that suitable tax-exempt temporary investments are not available at reasonable prices and yields. The Fund’s stated expectation is that it will invest only in taxable temporary investments which are U.S. government securities or securities rated within the highest grade by Moody’s, S&P or Fitch, and which mature within one year from the date of purchase or carry a variable or floating rate of interest (such short-term obligations being referred to herein as “Temporary Investments”). Temporary Investments of the Fund may include certificates of deposit issued by U.S. banks with assets of at least $1 billion, commercial paper or corporate notes, bonds or debentures with a remaining maturity of one year or less, or repurchase agreements. To the extent the Fund invests in Temporary Investments, the Fund will not at such times be in a position to achieve its investment objective of tax-exempt income.

Short-term taxable fixed-income investments include, without limitation, the following: (i) U.S. Government securities, including bills, notes and bonds differing as to maturity and rates of interest that are either issued or guaranteed by the U.S. Treasury or by U.S. Government agencies or instrumentalities, (ii) certificates of deposit issued against funds deposited in a bank or a savings and loan association, (iii) repurchase agreements, which involve purchases of debt securities, and (iv) commercial paper, which consists of short-term unsecured promissory notes, including variable rate master demand notes issued by corporations to finance their current operations. Short-term tax-exempt fixed-income securities are securities that are exempt from regular federal income tax and mature within three years or less from the date of issuance.

Short-term tax-exempt fixed-income securities include, without limitation, the following: (i) Bond Anticipation Notes (“BANs”), which are usually general obligations of state and local governmental issuers which are sold to obtain interim financing for projects that will eventually be funded through the sale of long-term debt obligations or bonds, (ii) Tax Anticipation Notes (“TANs”), which are issued by state and local governments to finance the current operations of such governments, (iii) Revenue Anticipation Notes (“RANs”), which are issued by governments or governmental bodies with the expectation that future revenues from a designated source will be used to repay the notes, (iv) Construction Loan Notes, which are issued to provide construction financing for specific projects, (v) Bank Notes, which are notes issued by local government bodies and agencies to commercial banks as evidence of borrowings, and (vi) Tax-Exempt Commercial Paper (“municipal paper”), which represents very short-term unsecured, negotiable promissory notes, issued by states, municipalities and their agencies.

The Fund may invest in variable rate demand obligations. The Fund may invest in all types of tax exempt instruments currently outstanding or to be issued in the future which satisfy its short term maturity and quality standards.

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Fund Investment Objectives, Policies and Risks (continued)

Certain Municipal Bonds may carry variable or floating rates of interest whereby the rate of interest is not fixed but varies with changes in specified market rates or indices, such as a bank prime rate or tax-exempt money market indices.

The Fund may make short sales of Municipal Bonds. The Fund may make short sales to hedge positions, for duration and risk management, in order to maintain portfolio flexibility or to enhance income or gain. The Fund may not make a short sale if, after giving effect to such sale, the market value of all securities sold short exceeds 25% of the value of its total assets or the Fund’s aggregate short sales of a particular class of securities exceeds 25% of the outstanding securities of that class. The Fund may also make short sales “against the box” without respect to such limitations.

The Fund may invest in restricted and illiquid securities.

The Fund may invest in repurchase agreements as temporary investments. The Fund may only enter into repurchase agreements with registered securities dealers or domestic banks that, in the opinion of the Manager, present minimal credit risk.

The Fund may lend its portfolio securities to brokers, dealers and other financial institutions which meet the creditworthiness standards established by the Board of Trustees of the Fund.

BlackRock Municipal Income Trust II (BLE)

The Fund’s investment objective is to provide current income exempt from regular federal income taxes. As a fundamental policy, under normal market conditions, the Fund will invest at least 80% of its managed assets in municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities (“Municipal Bonds”), the interest of which is exempt from regular federal income tax (except that the interest may be subject to the alternative minimum tax). The Fund cannot change its investment objectives or the foregoing fundamental policy without the approval of the holders of a majority of the outstanding common shares and the outstanding preferred shares, including the variable rate muni term preferred shares (“VMTP Shares”), voting together as a single class, and of the holders of a majority of the outstanding preferred shares, including the VMTP Shares, voting as a separate class. A majority of the outstanding means (1) 67% or more of the shares present at a meeting, if the holders of more than 50% of the outstanding shares are present or represented by proxy, or (2) more than 50% of the outstanding shares, whichever is less.

The Fund’s investment policies provide that, under normal market conditions, the Fund will invest at least 80% of its managed assets in investment grade quality Municipal Bonds. Investment grade quality means that such bonds are rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody’s, S&P or Fitch) or are unrated but judged to be of comparable quality by BlackRock Advisors, LLC (the “Manager”). Municipal Bonds rated Baa by Moody’s are investment grade, but Moody’s considers Municipal Bonds rated Baa to have speculative characteristics. Changes in economic conditions or other circumstances are more likely to lead to a weakened capacity for issuers of Municipal Bonds that are rated BBB or Baa (or that have equivalent ratings) to make principal and interest payments than is the case for issues of higher grade Municipal Bonds. In the case of short-term notes, the investment grade rating categories are SP-1+ through SP-2 for S&P, MIG-1 through MIG-3 for Moody’s and F-1+ through F-3 for Fitch. In the case of tax exempt commercial paper, the investment grade rating categories are A-1+ through A-3 for S&P, Prime-1 through Prime-3 for Moody’s and F-1+ through F-3 for Fitch. Obligations ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for S&P; Baa, MIG-3 and Prime-3 for Moody’s and BBB and F-3 for Fitch), while considered “investment grade,” may have certain speculative characteristics. There may be sub-categories or gradations indicating relative standing within the rating categories set forth above. In assessing the quality of Municipal Bonds with respect to the foregoing requirements, the Manager takes into account the nature of any letters of credit or similar credit enhancement to which particular Municipal Bonds are entitled and the creditworthiness of the financial institution that provided such credit enhancement.

The Fund may invest up to 20% of its managed assets in Municipal Bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by the Manager. Bonds of below investment grade quality are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. Such securities are sometimes referred to as “high yield” or “junk” bonds.

The foregoing credit quality policies apply only at the time a security is purchased, and the Fund is not required to dispose of a security if a rating agency downgrades its assessment of the credit characteristics of a particular issue. In determining whether to retain or sell a security that a rating agency has downgraded, the Manager may consider such factors as the Manager’s assessment of the credit quality of the issuer of the security, the price at which the security could be sold and the rating, if any, assigned to the security by other rating agencies. In the event that the Fund disposes of a portfolio security subsequent to its being downgraded, the Fund may experience a greater risk of loss than if such security had been sold prior to such downgrade.

The Fund may also invest in securities of other open- or closed-end investment companies that invest primarily in Municipal Bonds of the types in which the Fund may invest directly and in tax-exempt preferred shares that pay dividends that are exempt from regular federal income tax. In addition, the Fund may purchase Municipal Bonds that are additionally secured by insurance, bank credit agreements or escrow accounts. The credit quality of companies which provide these credit enhancements will affect the value of those securities. Although the insurance feature reduces certain financial risks, the premiums for insurance and the higher market price paid for insured obligations may reduce the Fund’s income. The insurance feature does not guarantee the market value of the insured obligations or the net asset value of the common shares. The Fund may purchase insured bonds and may purchase insurance for bonds in its portfolio.

The Fund may invest in certain tax exempt securities classified as “private activity bonds” (or industrial development bonds, under pre-1986 law) (in general, bonds that benefit non-governmental entities) that may subject certain investors in the Fund to an alternative minimum tax. The percentage of the Fund’s total assets invested in private activity bonds will vary from time to time. The Fund has not established any limit on the percentage of its portfolio that may be invested in Municipal Bonds subject to the alternative minimum tax provisions of federal tax law, and the Fund expects that a portion of the income it produces will be includable in alternative minimum taxable income. VMTP Shares therefore would not ordinarily be a suitable investment for investors who are subject to the federal alternative minimum tax or who would become subject to such tax by purchasing VMTP Shares. The suitability of an investment in VMTP Shares will depend upon a comparison of the after-tax yield likely to be provided from the Fund with that from comparable tax-exempt investments not subject to the alternative minimum tax, and from comparable fully taxable investments, in light of each such investor’s tax position. Special considerations may apply to corporate investors.

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Fund Investment Objectives, Policies and Risks (continued)

The average maturity of the Fund’s portfolio securities varies from time to time based upon an assessment of economic and market conditions by the Manager. The Fund’s portfolio at any given time may include both long- term and intermediate-term Municipal Bonds.

The Fund’s stated expectation is that it will invest in Municipal Bonds that, in the Manager’s opinion, are underrated or undervalued. Underrated Municipal Bonds are those whose ratings do not, in the opinion of the Manager, reflect their true higher creditworthiness. Undervalued Municipal Bonds are bonds that, in the opinion of the Manager, are worth more than the value assigned to them in the marketplace. The Manager may at times believe that bonds associated with a particular municipal market sector (for example, but not limited to electric utilities), or issued by a particular municipal issuer, are undervalued. The Manager may purchase those bonds for the Fund’s portfolio because they represent a market sector or issuer that the Manager considers undervalued, even if the value of those particular bonds appears to be consistent with the value of similar bonds. Municipal Bonds of particular types (for example, but not limited to hospital bonds, industrial revenue bonds or bonds issued by a particular municipal issuer) may be undervalued because there is a temporary excess of supply in that market sector, or because of a general decline in the market price of Municipal Bonds of the market sector for reasons that do not apply to the particular Municipal Bonds that are considered undervalued. The Fund’s investment in underrated or undervalued Municipal Bonds will be based on the Manager’s belief that their yield is higher than that available on bonds bearing equivalent levels of interest rate risk, credit risk and other forms of risk, and that their prices will ultimately rise, relative to the market, to reflect their true value. Any capital appreciation realized by the Fund will generally result in capital gain distributions subject to federal capital gains taxation.

The Fund ordinarily does not intend to realize significant investment income not exempt from federal income tax. From time to time, the Fund may realize taxable capital gains.

Federal tax legislation has limited the types and volume of bonds the interest on which qualifies for a federal income tax exemption. As a result, this legislation and legislation that may be enacted in the future may affect the availability of Municipal Bonds for investment by the Fund.

The Fund may purchase and sell futures contracts, enter into various interest rate transactions and swap contracts (including, without limitation, credit default swaps) and may purchase and sell exchange- listed and over-the-counter put and call options on securities, financial indices and futures contracts. These derivative transactions may be used for duration management and other risk management to attempt to protect against possible changes in the market value of the Fund’s portfolio resulting from trends in the debt securities markets and changes in interest rates, to protect the Fund’s unrealized gains in the value of its portfolio securities, to facilitate the sale of such securities for investment purposes, to establish a position in the securities markets as a temporary substitute for purchasing particular securities and to enhance income or gain.

Leverage:The Fund may utilize leverage to seek to enhance the yield and net asset value of its common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of VMTP Shares and residual interest municipal tender option bonds (“TOB Residuals”), which are derivative interests in municipal bonds. The TOB Residuals in which the Fund will invest pay interest or income that, in the opinion of counsel to the issuer of such TOB Residuals, is exempt from regular U.S. federal income tax.

The Fund may enter into reverse repurchase agreements with respect to its portfolio investments subject to the Fund’s investment restrictions.

The Fund reserves the right to borrow funds subject to the Fund’s investment restrictions. The proceeds of borrowings may be used for any valid purpose including, without limitation, liquidity, investments and repurchases of shares of the Fund.

Other Investment Policies:The Fund may invest up to 10% of its total assets in securities of other open- or closed-end investment companies that invest primarily in Municipal Bonds of the types in which the Fund may invest directly, subject to certain requirements.

The Fund may invest up to 15% of its total assets in preferred interests of other investment funds that pay dividends that are exempt from regular federal income tax, subject to certain requirements.

During temporary defensive periods (e.g., times when, in the Manager’s opinion, temporary imbalances of supply and demand or other temporary dislocations in the tax exempt bond market adversely affect the price at which long-term or intermediate-term Municipal Bonds are available), and in order to keep cash on hand fully invested, the Fund may invest up to 100% of its total assets in liquid, short-term investments including high quality, short-term securities which may be either tax-exempt or taxable and securities of other open- or closed-end investment companies that invest primarily in Municipal Bonds of the type in which the Fund may invest directly. The Fund intends to invest in taxable short-term investments only in the event that suitable tax-exempt temporary investments are not available at reasonable prices and yields. The Fund’s stated expectation is that it will invest only in taxable temporary investments which are U.S. government securities or securities rated within the highest grade by Moody’s, S&P or Fitch, and which mature within one year from the date of purchase or carry a variable or floating rate of interest (such short-term obligations being referred to herein as “Temporary Investments”). Temporary Investments of the Fund may include certificates of deposit issued by U.S. banks with assets of at least $1 billion, commercial paper or corporate notes, bonds or debentures with a remaining maturity of one year or less, or repurchase agreements. To the extent the Fund invests in Temporary Investments, the Fund will not at such times be in a position to achieve its investment objective of tax-exempt income.

Short-term taxable fixed-income investments include, without limitation, the following: (i) U.S. Government securities, including bills, notes and bonds differing as to maturity and rates of interest that are either issued or guaranteed by the U.S. Treasury or by U.S. Government agencies or instrumentalities, (ii) certificates of deposit issued against funds deposited in a bank or a savings and loan association, (iii) repurchase agreements, which involve purchases of debt securities, and (iv) commercial paper, which consists of short-term unsecured promissory notes, including variable rate master demand notes issued by corporations to finance their current operations. Short-term tax-exempt fixed-income securities are securities that are exempt from regular federal income tax and mature within three years or less from the date of issuance.

Short-term tax-exempt fixed-income securities include, without limitation, the following: (i) Bond Anticipation Notes (“BANs”), which are usually general obligations of state and local governmental issuers which are sold to obtain interim financing for projects that will eventually be funded through the sale of long-term debt obligations or bonds, (ii) Tax Anticipation Notes (“TANs”), which are issued by state and local governments to finance the current operations of such governments, (iii) Revenue Anticipation Notes (“RANs”), which are issued by governments or governmental bodies with the expectation that future revenues from a designated source will be used to repay the notes, (iv) Construction Loan Notes, which are issued to provide construction financing for specific projects, (v) Bank Notes, which are notes issued by local government bodies and agencies to commercial banks as evidence of borrowings, and (vi) Tax-Exempt Commercial Paper (“municipal paper”), which represents very short-term unsecured, negotiable promissory notes, issued by states, municipalities and their agencies.

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Fund Investment Objectives, Policies and Risks (continued)

The Fund may invest in variable rate demand obligations. The Fund may invest in all types of tax exempt instruments currently outstanding or to be issued in the future which satisfy its short-term maturity and quality standards.

Certain Municipal Bonds may carry variable or floating rates of interest whereby the rate of interest is not fixed but varies with changes in specified market rates or indices, such as a bank prime rate or tax-exempt money market indices.

The Fund may make short sales of Municipal Bonds. The Fund may make short sales to hedge positions, for duration and risk management, in order to maintain portfolio flexibility or to enhance income or gain. The Fund may not make a short sale if, after giving effect to such sale, the market value of all securities sold short exceeds 25% of the value of its total assets or the Fund’s aggregate short sales of a particular class of securities exceeds 25% of the outstanding securities of that class. The Fund may also make short sales “against the box” without respect to such limitations.

The Fund may invest in restricted and illiquid securities.

The Fund may invest in repurchase agreements as temporary investments. The Fund may only enter into repurchase agreements with registered securities dealers or domestic banks that, in the opinion of the Manager, present minimal credit risk.

The Fund may lend portfolio securities to certain borrowers determined to be creditworthy by the Manager, including to borrowers affiliated with the Manager.

BlackRock MuniHoldings Investment Quality Fund (MFL)

The Fund seeks as a fundamental investment objective to provide shareholders with current income exempt from federal income tax and to provide shareholders with the opportunity to own shares the value of which is exempt from Florida intangible personal property tax. The investment objective of the Fund is a fundamental policy that may not be changed without a vote of a majority of the Fund’s outstanding voting securities.

The Fund seeks to achieve its investment objective by investing primarily in a portfolio of long-term, investment grade municipal obligations, the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income tax (“Municipal Bonds”). At all times, at least 80% of the Fund’s total assets is invested in Municipal Bonds, except during interim periods pending investment of the net proceeds of public offerings of its securities and during temporary defensive periods. At times, the Fund may seek to hedge its portfolio through the use of futures and options transactions to reduce volatility in the net asset value of its Common Shares. Under normal circumstances, at least 80% of the Fund’s total assets will be invested in municipal obligations with remaining maturities of one year or more. The Fund may invest directly in such securities or synthetically through the use of derivatives. There can be no assurance that the Fund’s investment objective will be realized.

The Fund may invest in certain tax-exempt securities classified as “private activity bonds” (or industrial development bonds, under pre-1986 law) (“PABs”) (in general, bonds that benefit nongovernmental entities) that may subject certain investors in the Fund to an alternative minimum tax. The percentage of the Fund’s total assets invested in PABs will vary from time to time.

The investment grade Municipal Bonds in which the Fund will primarily invest are those Municipal Bonds that are rated at the date of purchase in the four highest rating categories of S&P, Moody’s or Fitch or, if unrated, are considered to be of comparable quality by BlackRock Advisors, LLC (the “Manager”). In the case of long-term debt, the investment grade rating categories are AAA through BBB for S&P and Fitch and Aaa through Baa for Moody’s. In the case of short-term notes, the investment grade rating categories are SP-1+ through SP-2 for S&P, MIG-1 through MIG-3 for Moody’s and F-1+ through F-3 for Fitch. In the case of tax-exempt commercial paper, the investment grade rating categories are A-1+ through A-3 for S&P, Prime-I through Prime-3 for Moody’s and F-1+ through F-3 for Fitch. Obligations ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for S&P; Baa, MIG-3 and Prime-3 for Moody’s; and BBB and F-3 for Fitch), while considered “investment grade,” may have certain speculative characteristics. There may be sub-categories or gradations indicating relative standing within the rating categories set forth above. In assessing the quality of Municipal Bonds with respect to the foregoing requirements, the Manager takes into account the nature of any letters of credit or similar credit enhancement to which particular Municipal Bonds are entitled and the creditworthiness of the financial institution that provided such credit enhancements.

The Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by the Manager to be of comparable quality, at the time of purchase, subject to the Fund’s other investment policies. Bonds of below investment grade quality are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. Such securities are sometimes referred to as “high yield” or “junk” bonds.

All percentage and ratings limitations on securities in which the Fund may invest apply at the time of making an investment and shall not be considered violated if an investment rating is subsequently downgraded to a rating that would have precluded the Fund’s initial investment in such security. In the event that the Fund disposes of a portfolio security subsequent to its being downgraded, the Fund may experience a greater risk of loss than if such security had been sold prior to such downgrade.

The Fund intends to invest primarily in long-term Municipal Bonds with maturities of more than ten years. However, the Fund also may invest in intermediate term Municipal Bonds with maturities of between three years and ten years. The Fund also may invest from time to time in short-term Municipal Bonds with maturities of less than three years. The average maturity of the Fund’s portfolio securities will vary based upon the Manager’s assessment of economic and market conditions.

The Fund may invest in short-term, tax-exempt securities, short-term U.S. Government securities, repurchase agreements or cash. Such short-term securities or cash will not exceed 20% of its total assets except during interim periods pending investment of the net proceeds of public offerings of the Fund’s securities or in anticipation of the repurchase or redemption of the Fund’s securities and temporary periods when, in the opinion of the Manager, prevailing market or :financial conditions warrant. The Fund also may invest in variable rate demand obligations (“VRDOs”) and VRDOs in the form of participation interests (“Participating VRDOs”) in variable rate tax-exempt obligations held by a :financial institution. The Fund’s hedging strategies are not fundamental policies and may be modified by the Board of Directors of the Fund without the approval of the Fund’s stockholders. The Fund is also authorized to invest in indexed and inverse floating rate obligations for hedging purposes and to seek to enhance return.

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Fund Investment Objectives, Policies and Risks (continued)

The Fund may invest in securities not issued by or on behalf of a state or territory or by an agency or instrumentality thereof, if the Fund nevertheless believes such securities pay interest that is excludable from gross income for federal income tax purposes (“Non-Municipal Tax-Exempt Securities”). Non-Municipal Tax-Exempt Securities could include trust certificates, partnership interests or other instruments evidencing interest in one or more long-term Municipal Bonds. Non-Municipal Tax-Exempt Securities also may include securities issued by other investment companies that invest in Municipal Bonds, to the extent such investments are permitted by the Fund’s investment restrictions and applicable law, including the 1940 Act. Non-Municipal Tax-Exempt Securities are subject to the same risks associated with an investment in Municipal Bonds as well as many of the risks associated with investments in derivatives. For purposes of the Fund’s investment objective and policies, Non-Municipal Tax-Exempt Securities that pay interest that is exempt from federal income taxes will be considered “Municipal Bonds.”

The Fund ordinarily does not intend to realize significant investment income not exempt from federal income tax. From time to time, the Fund may realize taxable capital gains.

Federal tax legislation has limited the types and volume of bonds the interest on which qualifies for a federal income tax-exemption. As a result, this legislation and legislation that may be enacted in the future may affect the availability of Municipal Bonds for investment by the Fund.

The State of Florida repealed the Florida Intangible Tax as of January 2007. As a result, on September 12, 2008, the Board of Trustees of the Fund voted unanimously to approve the Fund investing in Municipal Bonds regardless of geographic location. If Florida were to reinstate the Florida Intangible Tax or adopt a state income tax, however, the Fund would be required to realign its portfolio such that at substantially all of its assets would be invested in Florida Municipal Bonds or obtain shareholder approval to amend the Fund’s fundamental investment objective to remove references to the Florida Intangible Tax. There can be no assurance that the State of Florida will not reinstate the Florida Intangible Tax or adopt a state income tax in the future. There can also be no assurance that the reinstatement of the Florida Intangible Tax or the adoption of a state income tax will not have a material adverse effect on the Fund or will not impair the ability of the Fund to achieve its investment objectives.

The Fund may hedge all or a portion of its portfolio investments against fluctuations in interest rates through the use of options and certain financial futures contracts and options thereon. The Fund may purchase and sell futures contracts and exchange- listed and over-the-counter put and call options on futures contracts as a hedging strategy. In order to seek to hedge the value of the Fund against interest rate fluctuations, to hedge against increases in the Fund’s costs associated with the dividend payments on any preferred shares or to seek to increase the Fund’s return, the Fund may enter into interest rate swap transactions such as Municipal Market Data AAA Cash Curve swaps or Bond Market Association Municipal Swap Index swaps. The Fund may enter into credit default swap agreements for hedging purposes or to seek to increase its return.

Leverage: The Fund may utilize leverage to seek to enhance the yield and net asset value of its common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of variable rate demand preferred shares (“VRDP Shares”) and residual interest municipal tender option bonds (“TOB Residuals”), which are derivative interests in municipal bonds. The TOB Residuals in which the Fund will invest pay interest or income that, in the opinion of counsel to the issuer of such TOB Residuals, is exempt from regular U.S. federal income tax.

The Fund may enter into reverse repurchase agreements with respect to its portfolio investments subject to the Fund’s investment restrictions.

The Fund is authorized to borrow money in amounts of up to 5% of the value of its total assets at the time of such borrowings; provided, however, that the Fund is authorized to borrow moneys in amounts of up to 33 1/3% of the value of its total assets at the time of such borrowings to finance the repurchase of its own common shares pursuant to tender offers or otherwise to redeem or repurchase preferred shares.

Other Investment Policies:The Fund may invest in short-term tax-exempt securities, short-term U.S. Government securities, repurchase agreements or cash. Such short-term securities or cash will not exceed 20% of its total assets except during interim periods pending investment of the net proceeds of public offerings of the Fund’s securities or in anticipation of the repurchase or redemption of the Fund’s securities and temporary periods when, in the opinion of the Investment Advisor, prevailing market or financial conditions warrant Tax-exempt money market securities may include municipal notes, municipal commercial paper, Municipal Bonds with a remaining maturity of less than one year, variable rate demand notes and participations therein. Municipal Notes include tax anticipation notes, bond anticipation notes, revenue anticipation notes and grant anticipation notes. Anticipation notes are sold as interim financing in anticipation of tax collection, bond sales, government grants or revenue receipts. Municipal commercial paper refers to short-term unsecured promissory notes generally issued to finance short-term credit needs.

Short-term taxable fixed-income investments include, without limitation, the following: (i) U.S. Government securities, including bills, notes and bonds differing as to maturity and rates of interest that are either issued or guaranteed by the U.S. Treasury or by U.S. Government agencies or instrumentalities, (ii) certificates of deposit issued against funds deposited in a bank or a savings and loan association, (iii) repurchase agreements, which involve purchases of debt securities, and (iv) commercial paper, which consists of short-term unsecured promissory notes, including variable rate master demand notes issued by corporations to finance their current operations. Short-term tax-exempt fixed-income securities are securities that are exempt from regular federal income tax and mature within three years or less from the date of issuance.

Short-term tax-exempt fixed-income securities include, without limitation, the following: (i) Bond Anticipation Notes (“BANs”), which are usually general obligations of state and local governmental issuers which are sold to obtain interim financing for projects that will eventually be funded through the sale of long-term debt obligations or bonds, (ii) Tax Anticipation Notes (“TANs”), which are issued by state and local governments to finance the current operations of such governments, (iii) Revenue Anticipation Notes (“RANs”), which are issued by governments or governmental bodies with the expectation that future revenues from a designated source will be used to repay the notes, (iv) Construction Loan Notes, which are issued to provide construction financing for specific projects, (v) Bank Notes, which are notes issued by local government bodies and agencies to commercial banks as evidence of borrowings, and (vi) Tax-Exempt Commercial Paper (“municipal paper”), which represents very short-term unsecured, negotiable promissory notes, issued by states, municipalities and their agencies.

The Fund may invest in variable rate demand obligations. The Fund may invest in all types of tax exempt instruments currently outstanding or to be issued in the future which satisfy its short-term maturity and quality standards. The Fund may invest in securities pursuant to repurchase agreements. Repurchase agreements may be entered into only with a member bank of the Federal Reserve System or a primary dealer in U.S. Government securities or an affiliate thereof.

The Fund may invest in restricted and illiquid securities.

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Fund Investment Objectives, Policies and Risks (continued)

BlackRock MuniVest Fund, Inc. (MVF)

The Fund’s investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Fund’s investment policies provide that it seeks to achieve its investment objective by investing, as a fundamental policy, at least 80% of an aggregate of the Fund’s net assets (including proceeds from the issuance of any preferred stock) and the proceeds of any borrowings for investment purposes, in a portfolio of municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities, each of which pays interest that, in the opinion of bond counsel to the issuer, is excludable from gross income for federal income tax purposes (except that the interest may be includable in taxable income for purposes of the alternative minimum tax) (“Municipal Bonds”).

The Fund’s investment objective and its policy of investing at least 80% of an aggregate of the Fund’s net assets (including proceeds from the issuance of any preferred stock) and the proceeds of any borrowings for investment purposes, in Municipal Bonds are fundamental policies that may not be changed without the approval of the holders of a majority of the outstanding common shares and the outstanding preferred shares, including the variable rate muni term preferred shares (“VMTP Shares”), voting together as a single class, and of the holders of a majority of the outstanding preferred shares, including the VMTP Shares, voting as a separate class. A majority of the outstanding means (1) 67% or more of the shares present at a meeting, if the holders of more than 50% of the outstanding shares are present or represented by proxy, or (2) more than 50% of the outstanding shares, whichever is less.

The Fund’s investment policies provide that, under normal market conditions, the Fund will invest primarily in a portfolio of long term Municipal Bonds that are commonly referred to as “investment grade” securities, which are obligations rated at the time of purchase within the four highest quality ratings as determined by either Moody’s Investors Service, Inc. (“Moody’s”) (currently Aaa, Aa, A and Baa), Standard & Poor’s (“S&P”)(currently AAA, AA, A and BBB) or Fitch Ratings (“Fitch”) (currently AAA, AA, A and BBB). In the case of short-term notes, the investment grade rating categories are SP-1+ through SP-2 for S&P, MIG-1 through MIG-3 for Moody’s and F-1+ through F-3 for Fitch. In the case of tax exempt commercial paper, the investment grade rating categories are A-1+ through A-3 for S&P, Prime-1 through Prime-3 for Moody’s and F-1+ through F-3 for Fitch. Obligations ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for S&P; Baa, MIG-3 and Prime-3 for Moody’s and BBB and F-3 for Fitch), while considered “investment grade,” may have certain speculative characteristics. There may be sub-categories or gradations indicating relative standing within the rating categories set forth above. In assessing the quality of Municipal Bonds with respect to the foregoing requirements, BlackRock Advisors, LLC (the “Manager”) takes into account the nature of any letters of credit or similar credit enhancement to which particular Municipal Bonds are entitled and the creditworthiness of the financial institution that provided such credit enhancement. If unrated, such securities will possess creditworthiness comparable, in the opinion of the Manager, to other obligations in which the Fund may invest.

The foregoing credit quality policies apply only at the time a security is purchased, and the Fund is not required to dispose of a security if a rating agency downgrades its assessment of the credit characteristics of a particular issue. In determining whether to retain or sell a security that a rating agency has downgraded, the Manager may consider such factors as the Manager’s assessment of the credit quality of the issuer of the security, the price at which the security could be sold and the rating, if any, assigned to the security by other rating agencies. In the event that the Fund disposes of a portfolio security subsequent to its being downgraded, the Fund may experience a greater risk of loss than if such security had been sold prior to such downgrade.

The Fund may invest up to 20% of its total assets in securities rated below investment grade at time of purchase, or deemed equivalent. Bonds of below investment grade quality are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. Such securities are sometimes referred to as “high yield” or “junk” bonds.

The Fund may also purchase Municipal Bonds that are additionally secured by insurance, bank credit agreements or escrow accounts. The credit quality of companies which provide these credit enhancements will affect the value of those securities. Although the insurance feature reduces certain financial risks, the premiums for insurance and the higher market price paid for insured obligations may reduce the Fund’s income. The insurance feature does not guarantee the market value of the insured obligations or the net asset value of the common shares. The Fund may purchase insured bonds and may purchase insurance for bonds in its portfolio.

The Fund may invest in certain tax exempt securities classified as “private activity bonds” (or industrial development bonds, under pre-1986 law) (“PABs”) (in general, bonds that benefit non-governmental entities) that may subject certain investors in the Fund to an alternative minimum tax. The percentage of the Fund’s total assets invested in PABs will vary from time to time. The Fund has not established any limit on the percentage of its portfolio that may be invested in Municipal Bonds subject to the federal alternative minimum tax provisions of federal tax law, and the Fund expects that a portion of the income it produces will be includable in alternative minimum taxable income. VMTP Shares therefore would not ordinarily be a suitable investment for investors who are subject to the federal alternative minimum tax or who would become subject to such tax by purchasing VMTP Shares. The suitability of an investment in VMTP Shares will depend upon a comparison of the after-tax yield likely to be provided from the Fund with that from comparable tax-exempt investments not subject to the alternative minimum tax, and from comparable fully taxable investments, in light of each such investor’s tax position. Special considerations may apply to corporate investors.

The Fund also may not invest more than 25% of its total assets (taken at market value at the time of each investment) in Municipal Bonds whose issuers are located in the same state.

The average maturity of the Fund’s portfolio securities varies from time to time based upon an assessment of economic and market conditions by the Manager. The Fund’s portfolio at any given time may include long-term, intermediate-term and short-term Municipal Bonds.

The Fund’s stated expectation is that it will invest in Municipal Bonds that, in the Manager’s opinion, are underrated or undervalued. Underrated Municipal Bonds are those whose ratings do not, in the opinion of the Manager, reflect their true higher creditworthiness. Undervalued Municipal Bonds are bonds that, in the opinion of the Manager, are worth more than the value assigned to them in the marketplace. The Manager may at times believe that bonds associated with a particular municipal market sector (for example, but not limited to electric utilities), or issued by a particular municipal issuer, are undervalued. The Manager may purchase those bonds for the Fund’s portfolio because they represent a market sector or issuer that the Manager considers undervalued, even if the value of those particular bonds appears to be consistent with the value of similar bonds. Municipal Bonds of particular types (for example, but not limited to hospital bonds, industrial revenue bonds or bonds issued by a particular municipal issuer)

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Fund Investment Objectives, Policies and Risks (continued)

may be undervalued because there is a temporary excess of supply in that market sector, or because of a general decline in the market price of Municipal Bonds of the market sector for reasons that do not apply to the particular Municipal Bonds that are considered undervalued. The Fund’s investment in underrated or undervalued Municipal Bonds will be based on the Manager’s belief that their yield is higher than that available on bonds bearing equivalent levels of interest rate risk, credit risk and other forms of risk, and that their prices will ultimately rise, relative to the market, to reflect their true value. Any capital appreciation realized by the Fund will generally result in capital gain distributions subject to federal capital gains taxation.

The Fund ordinarily does not intend to realize significant investment income not exempt from federal income tax. From time to time, the Fund may realize taxable capital gains.

Federal tax legislation has limited the types and volume of bonds the interest on which qualifies for a federal income tax exemption. As a result, this legislation and legislation that may be enacted in the future may affect the availability of Municipal Bonds for investment by the Fund.

The Fund may purchase and sell futures contracts, enter into various interest rate transactions and swap contracts (including, but not limited to, credit default swaps) and may purchase and sell exchange-listed and over-the-counter put and call options on securities, financial indices and futures contracts. These derivative transactions may be used for duration management and other risk management to attempt to protect against possible changes in the market value of the Fund’s portfolio resulting from trends in the debt securities markets and changes in interest rates, to protect the Fund’s unrealized gains in the value of its portfolio securities, to facilitate the sale of such securities for investment purposes, to establish a position in the securities markets as a temporary substitute for purchasing particular securities and to enhance income or gain.

Leverage: The Fund may utilize leverage to seek to enhance the yield and net asset value of its common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of VMTP Shares and residual interest municipal tender option bonds (“TOB Residuals”), which are derivative interests in municipal bonds. The TOB Residuals in which the Fund will invest pay interest or income that, in the opinion of counsel to the issuer of such TOB Residuals, is exempt from regular U.S. federal income tax.

The Fund may enter into reverse repurchase agreements with respect to its portfolio investments subject to the Fund’s investment restrictions.

The Fund is authorized to borrow money in amounts of up to 5% of the value of its total assets at the time of such borrowings.

Other Investment Policies:For temporary periods or to provide liquidity, the Fund has the authority to invest as much as 20% of its total assets in tax-exempt and taxable money market obligations with a maturity of one year or less (such short-term obligations being referred to herein as “Temporary Investments”). In addition, the Fund reserves the right as a defensive measure to invest temporarily a greater portion of its assets in Temporary Investments, when, in the Advisors’ opinion, prevailing market or financial conditions warrant. Taxable money market obligations will yield taxable income. The tax exempt money market securities may include municipal notes, municipal commercial paper, municipal bonds with a remaining maturity of less than one year, variable rate demand notes and participations therein. Municipal notes include tax anticipation notes, bond anticipation notes, revenue anticipation notes and grant anticipation notes. Anticipation notes are sold as interim financing in anticipation of tax collection, bond sales, government grants or revenue receipts. Municipal commercial paper refers to short-term unsecured promissory notes generally issued to finance short-term credit needs. The taxable money market securities in which the Fund may invest as Temporary Investments consist of U.S. Government securities, U.S. Government agency securities, domestic bank or savings institution certificates of deposit and bankers’ acceptances, short-term corporate debt securities such as commercial paper and repurchase agreements. These Temporary Investments must have a stated maturity not in excess of one year from the date of purchase. The Fund may not invest in any security issued by a commercial bank or a savings institution unless the bank or institution is organized and operating in the United States, has total assets of at least one billion dollars. To the extent the Fund invests in Temporary Investments, the Fund may not at such times be in a position to achieve its investment objective of tax-exempt income. To the extent the Fund invests in Temporary Investments, the Fund will not at such times be in a position to achieve its investment objective of tax-exempt income.

Short-term taxable fixed-income investments include, without limitation, the following: (i) U.S. Government securities, including bills, notes and bonds differing as to maturity and rates of interest that are either issued or guaranteed by the U.S. Treasury or by U.S. Government agencies or instrumentalities, (ii) certificates of deposit issued against funds deposited in a bank or a savings and loan association, (iii) repurchase agreements, which involve purchases of debt securities, and (iv) commercial paper, which consists of short-term unsecured promissory notes, including variable rate master demand notes issued by corporations to finance their current operations. Short-term tax-exempt fixed-income securities are securities that are exempt from regular federal income tax and mature within three years or less from the date of issuance.

Short-term tax-exempt fixed-income securities include, without limitation, the following: (i) Bond Anticipation Notes (“BANs”), which are usually general obligations of state and local governmental issuers which are sold to obtain interim financing for projects that will eventually be funded through the sale of long-term debt obligations or bonds, (ii) Tax Anticipation Notes (“TANs”), which are issued by state and local governments to finance the current operations of such governments, (iii) Revenue Anticipation Notes (“RANs”), which are issued by governments or governmental bodies with the expectation that future revenues from a designated source will be used to repay the notes, (iv) Construction Loan Notes, which are issued to provide construction financing for specific projects, (v) Bank Notes, which are notes issued by local government bodies and agencies to commercial banks as evidence of borrowings, and (vi) Tax-Exempt Commercial Paper (“municipal paper”), which represents very short-term unsecured, negotiable promissory notes, issued by states, municipalities and their agencies.

The Fund may invest in variable rate demand obligations. The Fund may invest in all types of tax exempt instruments currently outstanding or to be issued in the future which satisfy its short-term maturity and quality standards.

The Fund may invest in restricted and illiquid securities.

The Fund may invest in repurchase agreements as temporary investments. The Fund may only enter into repurchase agreements with registered securities dealers or domestic banks that, in the opinion of the Manager, present minimal credit risk.

The Fund may lend its portfolio securities to brokers, dealers and other financial institutions which meet the creditworthiness standards established by the Board of Directors of the Fund.

FUND INVESTMENT OBJECTIVES, POLICIES AND RISKS |  | 107

Fund Investment Objectives, Policies and Risks (continued)

Risk Factors

This section contains a discussion of the general risks of investing in each Fund. The net asset value and market price of, and dividends paid on, the common shares will fluctuate with and be affected by, among other things, the risks more fully described below. As with any fund, there can be no guarantee that a Fund will meet its investment objective or that the Fund’s performance will be positive for any period of time. Each risk noted below is applicable to each Fund unless the specific Fund or Funds are noted in a parenthetical.

Investment and Market Discount Risk: An investment in the Fund’s common shares is subject to investment risk, including the possible loss of the entire amount that you invest. As with any stock, the price of the Fund’s common shares will fluctuate with market conditions and other factors. If shares are sold, the price received may be more or less than the original investment. Common shares are designed for long-term investors and the Fund should not be treated as a trading vehicle. Shares of closed-end management investment companies frequently trade at a discount from their net asset value. This risk is separate and distinct from the risk that the Fund’s net asset value could decrease as a result of its investment activities. At any point in time an investment in the Fund’s common shares may be worth less than the original amount invested, even after taking into account distributions paid by the Fund. During periods in which the Fund may use leverage, the Fund’s investment, market discount and certain other risks will be magnified.

Debt Securities Risk: Debt securities, such as bonds, involve interest rate risk, credit risk, extension risk, and prepayment risk, among other things

| • |  | Interest rate risk — The market value of bonds and other fixed-income securities changes in response to interest rate changes and other factors. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise.

| • |  | The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates. For example, if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors being equal, the value of the Fund’s investments would be expected to decrease by 10%. The magnitude of these fluctuations in the market price of bonds and other fixed-income securities is generally greater for those securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect interest income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset value. The Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by Fund management.

| • |  | To the extent the Fund invests in debt securities that may be prepaid at the option of the obligor (such as mortgage-backed securities), the sensitivity of such securities to changes in interest rates may increase (to the detriment of the Fund) when interest rates rise. Moreover, because rates on certain floating rate debt securities typically reset only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the net asset value of the Fund to the extent that it invests in floating rate debt securities.

| • |  | These basic principles of bond prices also apply to U.S. Government securities. A security backed by the “full faith and credit” of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not its current market price. Just like other fixed-income securities, government-guaranteed securities will fluctuate in value when interest rates change.

| • |  | A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large scale, which may increase redemptions from funds that hold large amounts of fixed-income securities. Heavy redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could hurt the Fund’s performance.

| • |  | Credit risk — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be able to make payments of interest and principal when due. Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.

| • |  | Extension risk — When interest rates rise, certain obligations will be paid off by the obligor more slowly than anticipated, causing the value of these obligations to fall.

| • |  | Prepayment risk — When interest rates fall, certain obligations will be paid off by the obligor more quickly than originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.

Municipal Securities Risks: Municipal securities risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers of municipal securities, and the possibility of future legislative changes which could affect the market for and value of municipal securities. These risks include:

| • |  | General obligation bonds risks — Timely payments depend on the issuer’s credit quality, ability to raise tax revenues and ability to maintain an adequate tax base.

| • |  | Revenue bonds risks — These payments depend on the money earned by the particular facility or class of facilities, or the amount of revenues derived from another source.

| • |  | Private activity bonds risks — Municipalities and other public authorities issue private activity bonds to finance development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and interest on the bond, and the issuer does not pledge its faith, credit and taxing power for repayment. The Fund’s investments may consist of private activity bonds that may subject certain shareholders to an alternative minimum tax.

| • |  | Moral obligation bonds risks — Moral obligation bonds are generally issued by special purpose public authorities of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral commitment, but not a legal obligation, of the state or municipality.

| • |  | Municipal notes risks — Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.

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Fund Investment Objectives, Policies and Risks (continued)

| • |  | Municipal lease obligations risks — In a municipal lease obligation, the issuer agrees to make payments when due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease obligation, the lease obligation is secured by the leased property.

| • |  | Tax-exempt status risk — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds and payments under derivative securities. Neither the Fund nor its investment manager will independently review the bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its shareholders to substantial tax liabilities.

Taxability Risk: The Fund intends to minimize the payment of taxable income to shareholders by investing in tax-exempt or municipal securities in reliance at the time of purchase on an opinion of bond counsel to the issuer that the interest paid on those securities will be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined to pay, or have paid, taxable income subsequent to the Fund’s acquisition of the securities. In that event, the Internal Revenue Service may demand that the Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to do so, the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or to be paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to increased U.S. federal income tax liabilities. Federal tax legislation may limit the types and volume of bonds the interest on which qualifies for a federal income tax-exemption. As a result, current legislation and legislation that may be enacted in the future may affect the availability of municipal bonds for investment by the Fund. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal securities to be subject, directly or indirectly, to U.S. federal income taxation or interest on state municipal securities to be subject to state or local income taxation, or the value of state municipal securities to be subject to state or local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the tax-exempt status of such securities. Any such change could also affect the market price of such securities, and thus the value of an investment in the Fund.

Insurance Risk: Insurance guarantees that interest payments on a municipal security will be made on time and that the principal will be repaid when the security matures. However, insurance does not protect against losses caused by declines in a municipal security’s value. The Fund cannot be certain that any insurance company will make the payments it guarantees. If a municipal security’s insurer fails to fulfill its obligations or loses its credit rating, the value of the security could drop

Junk Bonds Risk: Although junk bonds generally pay higher rates of interest than investment grade bonds, junk bonds are high risk investments that are considered speculative and may cause income and principal losses for the Fund.

Zero Coupon Securities Risk: While interest payments are not made on such securities, holders of such securities are deemed to have received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of owning instruments that do not make current interest payments is that a fixed yield is earned not only on the original investment but also, in effect, on all discount accretion during the life of the obligations. This implicit reinvestment of earnings at a fixed rate eliminates the risk of being unable to invest distributions at a rate as high as the implicit yield on the zero coupon bond, but at the same time eliminates the holder’s ability to reinvest at higher rates in the future. For this reason, some of these securities may be subject to substantially greater price fluctuations during periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments benefit the issuer by mitigating its need for cash to meet debt service, but also require a higher rate of return to attract investors who are willing to defer receipt of cash.

When-Issued and Delayed Delivery Securities and Forward Commitments Risk: When-issued and delayed delivery securities and forward commitments involve the risk that the security the Fund buys will lose value prior to its delivery. There also is the risk that the security will not be issued or that the other party to the transaction will not meet its obligation. If this occurs, the Fund may lose both the investment opportunity for the assets it set aside to pay for the security and any gain in the security’s price.

U.S. Government Obligations Risk: Certain securities in which the Fund may invest, including securities issued by certain U.S. Government agencies and U.S. Government sponsored enterprises, are not guaranteed by the U.S. Government or supported by the full faith and credit of the United States.

Variable Rate Demand Obligations Risks: Variable rate demand obligations are floating rate securities that combine an interest in a long term municipal bond with a right to demand payment before maturity from a bank or other financial institution. If the bank or financial institution is unable to pay, the Fund may lose money.

Repurchase Agreements and Purchase and Sale Contracts Risk: If the other party to a repurchase agreement or purchase and sale contract defaults on its obligation under the agreement, the Fund may suffer delays and incur costs or lose money in exercising its rights under the agreement. If the seller fails to repurchase the security in either situation and the market value of the security declines, the Fund may lose money.

Leverage Risk: The Fund uses leverage for investment purposes through the issuance of VMTP Shares or VRDP Shares, as applicable. The Fund also utilizes leverage for investment purposes by entering into reverse repurchase agreements, derivative instruments with leverage embedded in then, such as TOB Residuals. The Fund’s use of leverage may increase or decrease from time to time in its discretion and the Fund may, in the future, determine not to use leverage.

The use of leverage creates an opportunity for increased common share net investment income dividends, but also creates risks for the holders of common shares. The Fund cannot assure you that the use of leverage will result in a higher yield on the common shares. Any leveraging strategy the Fund employs may not be successful.

Leverage involves risks and special considerations for common shareholders, including:

| • |  | the likelihood of greater volatility of net asset value, market price and dividend rate of the common shares than a comparable portfolio without leverage;

| • |  | the risk that fluctuations in interest rates or dividend rates on any leverage that the Fund must pay will reduce the return to the common shareholders;

| • |  | the effect of leverage in a declining market, which is likely to cause a greater decline in the net asset value of the common shares than if the Fund were not leveraged, which may result in a greater decline in the market price of the common shares;

| • |  | leverage may increase operating costs, which may reduce total return.

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Fund Investment Objectives, Policies and Risks (continued)

Any decline in the net asset value of the Fund’s investments will be borne entirely by the holders of common shares. Therefore, if the market value of the Fund’s portfolio declines, leverage will result in a greater decrease in net asset value to the holders of common shares than if the Fund were not leveraged. This greater net asset value decrease will also tend to cause a greater decline in the market price for the common shares.

Tender Option Bonds Risk: The Fund’s participation in tender option bond transactions may reduce the Fund’s returns and/or increase volatility. Investments in tender option bond transactions expose the Fund to counterparty risk and leverage risk. An investment in a tender option bond transaction typically will involve greater risk than an investment in a municipal fixed rate security, including the risk of loss of principal. Distributions on TOB Residuals will bear an inverse relationship to short-term municipal security interest rates. Distributions on TOB Residuals paid to the Fund will be reduced or, in the extreme, eliminated as short-term municipal interest rates rise and will increase when short-term municipal interest rates fall. TOB Residuals generally will underperform the market for fixed rate municipal securities in a rising interest rate environment. The Fund may invest special purpose trusts formed for the purpose of holding municipal bonds contributed by one or more funds (“TOB Trusts”) on either a non-recourse or recourse basis. If the Fund invests in a TOB Trust on a recourse basis, it could suffer losses in excess of the value of its TOB Residuals.

Reverse Repurchase Agreements Risk: Reverse repurchase agreements involve the sale of securities held by the Fund with an agreement to repurchase the securities at an agreed-upon price, date and interest payment. Reverse repurchase agreements involve the risk that the other party may fail to return the securities in a timely manner or at all. The Fund could lose money if it is unable to recover the securities and the value of the collateral held by the Fund, including the value of the investments made with cash collateral, is less than the value of the securities. These events could also trigger adverse tax consequences for the Fund. In addition, reverse repurchase agreements involve the risk that the interest income earned in the investment of the proceeds will be less than the interest expense.

Short Sales Risk (BBK, BAF, BYM and BLE): Because making short sales in securities that it does not own exposes the Fund to the risks associated with those securities, such short sales involve speculative exposure risk. The Fund will incur a loss as a result of a short sale if the price of the security increases between the date of the short sale and the date on which the Fund replaces the security sold short.

Illiquid Investments Risk: The Fund may invest without limitation in illiquid or less liquid investments or investments in which no secondary market is readily available or which are otherwise illiquid, including private placement securities. The Fund may not be able to readily dispose of such investments at prices that approximate those at which the Fund could sell such investments if they were more widely traded and, as a result of such illiquidity, the Fund may have to sell other investments or engage in borrowing transactions if necessary to raise cash to meet its obligations. Limited liquidity can also affect the market price of investments, thereby adversely affecting the Fund’s net asset value and ability to make dividend distributions. The financial markets in general, and certain segments of the mortgage-related securities markets in particular, have in recent years experienced periods of extreme secondary market supply and demand imbalance, resulting in a loss of liquidity during which market prices were suddenly and substantially below traditional measures of intrinsic value. During such periods, some investments could be sold only at arbitrary prices and with substantial losses. Periods of such market dislocation may occur again at any time. Privately issued debt securities are often of below investment grade quality, frequently are unrated and present many of the same risks as investing in below investment grade public debt securities.

Investment Companies and ETFs Risk (BBK, BAF, BYM, BLE and MFL): Subject to the limitations set forth in the Investment Company Act of 1940, as amended (the “1940 Act”), or as otherwise limited by the SEC, the Fund may acquire shares in other investment companies and in exchange-traded funds (“ETFs”), some of which may be affiliated investment companies. The market value of the shares of other investment companies and ETFs may differ from their net asset value. As an investor in investment companies and ETFs, the Fund would bear its ratable share of that entity’s expenses, including its investment advisory and administration fees, while continuing to pay its own advisory and administration fees and other expenses (to the extent not offset by the Manager through waivers). As a result, shareholders will be absorbing duplicate levels of fees with respect to investments in other investment companies and ETFs (to the extent not offset by the Manager through waivers).

The securities of other investment companies and ETFs in which the Fund may invest may be leveraged. As a result, the Fund may be indirectly exposed to leverage through an investment in such securities. An investment in securities of other investment companies and ETFs that use leverage may expose the Fund to higher volatility in the market value of such securities and the possibility that the Fund’s long-term returns on such securities (and, indirectly, the long-term returns of shares of the Fund) will be diminished.

As with other investments, investments in other investment companies, including ETFs, are subject to market and selection risk. To the extent the Fund is held by an affiliated fund, the ability of the Fund itself to hold other investment companies may be limited.

Derivatives Risk: The Fund’s use of derivatives may increase its costs, reduce the Fund’s returns and/or increase volatility. Derivatives involve significant risks, including:

| • |  | Volatility risk — Volatility is defined as the characteristic of a security, an index or a market to fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the fluctuations in their values may not correlate with the overall securities markets.

| • |  | Counterparty risk — Derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation.

| • |  | Market and illiquidity risk — The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more difficult for the Fund to value accurately.

| • |  | Valuation risk — Valuation may be more difficult in times of market turmoil since many investors and market makers may be reluctant to purchase complex instruments or quote prices for them.

| • |  | Hedging risk — Hedges are sometimes subject to imperfect matching between the derivative and the underlying security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging may result in certain adverse tax consequences

110 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Fund Investment Objectives, Policies and Risks (continued)

| • |  | Tax risk — Certain aspects of the tax treatment of derivative instruments, including swap agreements and commodity-linked derivative instruments, are currently unclear and may be affected by changes in legislation, regulations or other legally binding authority. Such treatment may be less favorable than that given to a direct investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund realizes from its investments.

| • |  | Regulatory risk — Derivative contracts, including, without limitation, swaps, currency forwards and non-deliverable forwards, are subject to regulation under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) in the United States and under comparable regimes in Europe, Asia and other non-U.S. jurisdictions. Under the Dodd-Frank Act, certain derivatives are subject to margin requirements and swap dealers are required to collect margin from the Fund with respect to such derivatives. Specifically, regulations are now in effect that require swap dealers to post and collect variation margin (comprised of specified liquid instruments and subject to a required haircut) in connection with trading of OTC swaps with the Fund. Shares of investment companies (other than certain money market funds) may not be posted as collateral under these regulations. Requirements for posting of initial margin in connection with OTC swaps will be phased-in through at least 2021. In addition, regulations adopted by global prudential regulators that are now in effect require certain bank-regulated counterparties and certain of their affiliates to include in certain financial contracts, including many derivatives contracts, terms that delay or restrict the rights of counterparties, such as the Fund, to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. The implementation of these requirements with respect to derivatives, as well as regulations under the Dodd-Frank Act regarding clearing, mandatory trading and margining of other derivatives, may increase the costs and risks to the Fund of trading in these instruments and, as a result, may affect returns to investors in the Fund.

In November 2019, the SEC proposed new regulations governing the use of derivatives by registered investment companies. If adopted as proposed, new Rule 18f-4 would impose limits on the amount of derivatives a fund could enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities so that a failure to comply with the proposed limits would result in a statutory violation and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

Market Risk and Selection Risk: Market risk is the risk that one or more markets in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and unpredictably. The value of a security or other asset may decline due to changes in general market conditions, economic trends or events that are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues like pandemics or epidemics, recessions, or other events could have a significant impact on the Fund and its investments. Selection risk is the risk that the securities selected by Fund management will underperform the markets, the relevant indices or the securities selected by other funds with similar investment objectives and investment strategies. This means you may lose money.

A recent outbreak of an infectious coronavirus has developed into a global pandemic that has resulted in numerous disruptions in the market and has had significant economic impact leaving general concern and uncertainty. The impact of this coronavirus, and other epidemics and pandemics that may arise in the future, could affect the economies of many nations, individual companies and the market in general ways that cannot necessarily be foreseen at the present time.

FUND INVESTMENT OBJECTIVES, POLICIES AND RISKS |  | 111

Automatic Dividend Reinvestment Plan

Pursuant to BBK, BAF, BYM, BLE, MFL and MVF’s Dividend Reinvestment Plan (the “Reinvestment Plan”), Common Shareholders are automatically enrolled to have all distributions of dividends and capital gains and other distributions reinvested by Computershare Trust Company, N.A. (the “Reinvestment Plan Agent”) in the respective Trust’s Common Shares pursuant to the Reinvestment Plan. Shareholders who do not participate in the Reinvestment Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street name or other nominee name, then to the nominee) by the Reinvestment Plan Agent, which serves as agent for the shareholders in administering the Reinvestment Plan.

After BBK, BAF, BYM, BLE, MFL and MVF declare a dividend or determine to make a capital gain or other distribution, the Reinvestment Plan Agent will acquire shares for the participants’ accounts, depending upon the following circumstances, either (i) through receipt of unissued but authorized shares from the Trusts (“newly issued shares”) or (ii) by purchase of outstanding shares on the open market or on the Trust’s primary exchange (“open-market purchases”). If, on the dividend payment date, the net asset value per share (“NAV”) is equal to or less than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market premium”), the Reinvestment Plan Agent will invest the dividend amount in newly issued shares acquired on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the dividend payment date, the dollar amount of the dividend will be divided by 95% of the market price on the dividend payment date. If, on the dividend payment date, the NAV is greater than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market discount”), the Reinvestment Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases. If the Reinvestment Plan Agent is unable to invest the full dividend amount in open-market purchases, or if the market discount shifts to a market premium during the purchase period, the Reinvestment Plan Agent will invest any un-invested portion in newly issued shares. Investments in newly issued shares made in this manner would be made pursuant to the same process described above and the date of issue for such newly issued shares will substitute for the dividend payment date.

You may elect not to participate in the Reinvestment Plan and to receive all dividends in cash by contacting the Reinvestment Plan Agent, at the address set forth below.

Participation in the Reinvestment Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Reinvestment Plan Agent prior to the dividend record date. Additionally, the Reinvestment Plan Agent seeks to process notices received after the record date but prior to the payable date and such notices often will become effective by the payable date. Where late notices are not processed by the applicable payable date, such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

The Reinvestment Plan Agent’s fees for the handling of the reinvestment of distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Reinvestment Plan Agent’s open-market purchases in connection with the reinvestment of all distributions. The automatic reinvestment of all distributions will not relieve participants of any U.S. federal, state or local income tax that may be payable on such dividends or distributions.

Each Trust reserves the right to amend or terminate the Reinvestment Plan. There is no direct service charge to participants in the Reinvestment Plan; however, each Trust reserves the right to amend the Reinvestment Plan to include a service charge payable by the participants. Participants in BBK, BAF, BYM and BLE that request a sale of shares are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission fee. Participants in MFL and MVF that request a sale of shares are subject to a $0.02 per share sold brokerage commission. All correspondence concerning the Reinvestment Plan should be directed to Computershare Trust Company, N.A. through the internet at computershare.com/blackrock, or in writing to Computershare, P.O. Box 505000, Louisville, KY 40233, Telephone: (800) 699-1236. Overnight correspondence should be directed to the Reinvestment Plan Agent at Computershare, 462 South 4th Street, Suite 1600, Louisville, KY 40202.

112 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information

Independent Trustees (a)
Name Year of Birth (b) |  | Position(s) Held (Length of Service) (c) |  | Principal Occupation(s) During Past Five Years |  | Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen |  | Public Company and Other Investment Company Directorships Held During Past Five Years
Richard E. Cavanagh 1946 |  | Co-Chair of the Board and Trustee (Since 2007) |  | Director, The Guardian Life Insurance Company of America since 1998; Board Chair, Volunteers of America (a not-for-profit organization) from 2015 to 2018 (board member since 2009); Director, Arch Chemicals (chemical and allied products) from 1999 to 2011; Trustee, Educational Testing Service from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996; Faculty Member/Adjunct Lecturer, Harvard University since 2007 and Executive Dean from 1987 to 1995; President and Chief Executive Officer, The Conference Board, Inc. (global business research organization) from 1995 to 2007. |  | 86 RICs consisting of 110 Portfolios |  | None
Karen P. Robards 1950 |  | Co-Chair of the Board and Trustee (Since 2007) |  | Principal of Robards & Company, LLC (consulting and private investing) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Director of Enable Injections, LLC (medical devices) since 2019; Investment Banker at Morgan Stanley from 1976 to 1987. |  | 86 RICs consisting of 110 Portfolios |  | Greenhill & Co., Inc.; AtriCure, Inc. (medical devices) from 2000 until 2017
Michael J. Castellano 1946 |  | Trustee (Since 2011) |  | Chief Financial Officer of Lazard Group LLC from 2001 to 2011; Chief Financial Officer of Lazard Ltd from 2004 to 2011; Director, Support Our Aging Religious (non-profit) from 2009 to June 2015 and since 2017; Director, National Advisory Board of Church Management at Villanova University since 2010; Trustee, Domestic Church Media Foundation since 2012; Director, CircleBlack Inc. (financial technology company) since 2015. |  | 86 RICs consisting of 110 Portfolios |  | None
Cynthia L. Egan 1955 |  | Trustee (Since 2016) |  | Advisor, U.S. Department of the Treasury from 2014 to 2015; President, Retirement Plan Services, for T. Rowe Price Group, Inc. from 2007 to 2012; executive positions within Fidelity Investments from 1989 to 2007. |  | 86 RICs consisting of 110 Portfolios |  | Unum (insurance); The Hanover Insurance Group (insurance); Envestnet (investment platform) from 2013 until 2016
Frank J. Fabozzi (d) 1948 |  | Trustee (Since 2007) |  | Editor of The Journal of Portfolio Management since 1986; Professor of Finance, EDHEC Business School (France) since 2011; Visiting Professor, Princeton University for the 2013 to 2014 academic year and Spring 2017 semester; Professor in the Practice of Finance, Yale University School of Management from 1994 to 2011 and currently a Teaching Fellow in Yale’s Executive Programs; Board Member, BlackRock Equity-Liquidity Funds from 2014 to 2016; affiliated professor Karlsruhe Institute of Technology from 2008 to 2011; Visiting Professor, Rutgers University for the Spring 2019 semester; Visiting Professor, New York University for the 2019 academic year. |  | 87 RICs consisting of 111 Portfolios |  | None
R. Glenn Hubbard 1958 |  | Trustee (Since 2007) |  | Dean, Columbia Business School from 2004 to 2019; Faculty member, Columbia Business School since 1988. |  | 86 RICs consisting of 110 Portfolios |  | ADP (data and information services); Metropolitan Life Insurance Company (insurance); KKR Financial Corporation (finance) from 2004 until 2014

TRUSTEE AND OFFICER INFORMATION |  | 113

Trustee and Officer Information (continued)

Independent Trustees (a) (continued)
Name Year of Birth (b) |  | Position(s) Held (Length of Service) (c) |  | Principal Occupation(s) During Past Five Years |  | Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen |  | Public Company and Other Investment Company Directorships Held During Past Five Years
W. Carl Kester (d) 1951 |  | Trustee (Since 2007) |  | George Fisher Baker Jr. Professor of Business Administration, Harvard Business School since 2008; Deputy Dean for Academic Affairs from 2006 to 2010; Chairman of the Finance Unit, from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program from 1999 to 2005; Member of the faculty of Harvard Business School since 1981. |  | 87 RICs consisting of 111 Portfolios |  | None
Catherine A. Lynch (d) 1961 |  | Trustee (Since 2016) |  | Chief Executive Officer, Chief Investment Officer and various other positions, National Railroad Retirement Investment Trust from 2003 to 2016; Associate Vice President for Treasury Management, The George Washington University from 1999 to 2003; Assistant Treasurer, Episcopal Church of America from 1995 to 1999. |  | 87 RICs consisting of 111 Portfolios |  | None
Interested Trustees (a)(e)
Name Year of Birth (b) |  | Position(s) Held (Length of Service) (c) |  | Principal Occupation(s) During Past Five Years |  | Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen |  | Public Company and Other Investment Company Directorships Held During Past Five Years
Robert Fairbairn 1965 |  | Trustee (Since 2018) |  | Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Executive and Global Operating Committees; Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares® businesses from 2012 to 2016. |  | 121 RICs consisting of 275 Portfolios |  | None
John M. Perlowski (d) 1964 |  | Trustee (Since 2015); President and Chief Executive Officer (Since 2010) |  | Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009. |  | 122 RICs consisting of 276 Portfolios |  | None
(a)The address of each Trustee is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.
(b)Each Independent Trustee holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation, retirement or removal as provided by the Trust’s by-laws or charter or statute, or until December 31 of the year in which he or she turns 75. Trustees who are “interested persons,” as defined in the Investment Company Act serve until their successor is duly elected and qualifies or until their earlier death, resignation, retirement or removal as provided by the Trust’s by-laws or statute, or until December 31 of the year in which they turn 72. The Board may determine to extend the terms of Independent Trustees on a case-by-case basis, as appropriate.
(c)Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. Certain Independent Trustees first became members of the boards of other legacy MLIM or legacy BlackRock funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; R. Glenn Hubbard, 2004; W. Carl Kester, 1995; and Karen P. Robards, 1998.
(d)Dr. Fabozzi, Dr. Kester, Ms. Lynch and Mr. Perlowski are also trustees of the BlackRock Credit Strategies Fund.
(e)Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Trust based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Multi-Asset Complex.

114 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (continued)

Officers Who Are Not Trustees (a)
Name Year of Birth (b) |  | Position(s) Held (Length of Service) |  | Principal Occupation(s) During Past Five Years
Jonathan Diorio 1980 |  | Vice President (Since 2015) |  | Managing Director of BlackRock, Inc. since 2015; Director of BlackRock, Inc. from 2011 to 2015.
Neal J. Andrews 1966 |  | Chief Financial Officer (Since 2007) |  | Chief Financial Officer of the iShares® exchange traded funds from 2019 to 2020; Managing Director of BlackRock, Inc. since 2006.
Jay M. Fife 1970 |  | Treasurer (Since 2007) |  | Managing Director of BlackRock, Inc. since 2007.
Charles Park 1967 |  | Chief Compliance Officer (Since 2014) |  | Anti-Money Laundering Compliance Officer for certain BlackRock-advised Funds from 2014 to 2015; Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex since 2014; Principal of and Chief Compliance Officer for iShares® Delaware Trust Sponsor LLC since 2012 and BlackRock Fund Advisors (“BFA”) since 2006; Chief Compliance Officer for the BFA-advised iShares® exchange traded funds since 2006; Chief Compliance Officer for BlackRock Asset Management International Inc. since 2012.
Lisa Belle 1968 |  | Anti-Money Laundering Compliance Officer (Since 2019) |  | Managing Director of BlackRock, Inc. since 2019; Global Financial Crime Head for Asset and Wealth Management of JP Morgan from 2013 to 2019; Managing Director of RBS Securities from 2012 to 2013; Head of Financial Crimes for Barclays Wealth Americas from 2010 to 2012.
Janey Ahn 1975 |  | Secretary (Since 2019) |  | Managing Director of BlackRock, Inc. since 2018; Director of BlackRock, Inc. from 2009 to 2017.
(a)The address of each Officer is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.
(b)Officers of the Trust serve at the pleasure of the Board.

TRUSTEE AND OFFICER INFORMATION |  | 115

Additional Information

Proxy Results

The Annual Meeting of Shareholders was held on July 27, 2020 for shareholders of record on May 29, 2020 to elect director nominees for each Trust. There were no broker non-votes with regard to any of the Trusts.

Shareholders elected the Class I Trustees as follows:

|  | Michael J. Castellano |  |  | R. Glenn Hubbard |  |  | John M. Perlowski |  |  | W. Carl Kester(a) |
| Votes For |  |  | Votes Withheld |  |  | Votes For |  |  | Votes Withheld |  |  | Votes For |  |  | Votes Withheld |  |  | Votes For |  |  | Votes Withheld |
BYM |  |  | 21,326,585 |  |  |  | 2,991,536 |  |  |  | 22,048,883 |  |  |  | 2,269,238 |  |  |  | 22,212,985 |  |  |  | 2,105,136 |  |  |  | 1,372 |  |  |  | 0 |
BAF |  |  | 7,698,603 |  |  |  | 230,725 |  |  |  | 7,726,554 |  |  |  | 202,774 |  |  |  | 7,706,266 |  |  |  | 223,062 |  |  |  | 422 |  |  |  | 0 |
BBK |  |  | 8,505,536 |  |  |  | 247,394 |  |  |  | 8,486,917 |  |  |  | 266,013 |  |  |  | 8,517,987 |  |  |  | 234,943 |  |  |  | 799 |  |  |  | 0 |
BLE |  |  | 19,920,379 |  |  |  | 454,877 |  |  |  | 19,851,452 |  |  |  | 523,804 |  |  |  | 19,934,563 |  |  |  | 440,693 |  |  |  | 1,513 |  |  |  | 0 |

| (a) | Voted on by holders of preferred shares only. |

For the Trusts listed above, Trustees whose term of office continued after the Annual Meeting of Shareholders because they were not up for election are Richard E. Cavanagh, Cynthia L. Egan, Robert Fairbairn, Catherine A. Lynch, Karen P. Robards, and Frank J. Fabozzi.

Shareholders elected the Trustees as follows:

|  | Michael J. Castellano |  |  | Richard E. Cavanagh |  |  | Cynthia L. Egan |
Trust Name |  | Votes For |  |  | Votes Withheld |  |  |  |  |  | Votes For |  |  | Votes Witheld |  |  |  |  |  | Votes For |  |  | Votes Withheld |  |  |  |
MVF |  |  | 56,653,327 |  |  |  | 1,703,364 |  |  |  |  |  |  |  | 57,081,187 |  |  |  | 1,275,504 |  |  |  |  |  |  |  | 57,237,193 |  |  |  | 1,119,498 |  |  |  |  |
|  |  |  |  | Votes Against |  |  | Abstain |  |  |  |  |  | Votes Against |  |  | Abstain |  |  |  |  |  | Votes Against |  |  | Abstain |
MFL |  |  | 33,426,960 |  |  |  | 2,289,941 |  |  |  | 0 |  |  |  | 33,821,724 |  |  |  | 1,895,177 |  |  |  | 0 |  |  |  | 33,924,547 |  |  |  | 1,792,354 |  |  |  | 0 |
|  | Robert Fairbairn |  |  | R. Glenn Hubbard |  |  | Catherine A. Lynch |
Trust Name |  | Votes For |  |  | Votes Withheld |  |  |  |  |  | Votes For |  |  | Votes Witheld |  |  |  |  |  | Votes For |  |  | Votes Withheld |  |  |  |
MVF |  |  | 57,092,155 |  |  |  | 1,264,536 |  |  |  |  |  |  |  | 57,095,894 |  |  |  | 1,260,797 |  |  |  |  |  |  |  | 56,809,391 |  |  |  | 1,547,300 |  |  |  |  |
|  |  |  |  | Votes Against |  |  | Abstain |  |  |  |  |  | Votes Against |  |  | Abstain |  |  |  |  |  | Votes Against |  |  | Abstain |
MFL |  |  | 34,148,696 |  |  |  | 1,568,205 |  |  |  | 0 |  |  |  | 33,841,051 |  |  |  | 1,875,849 |  |  |  | 0 |  |  |  | 33,305,154 |  |  |  | 2,411,747 |  |  |  | 0 |
|  | John M. Perlowski |  |  | Karen P. Robards |  |  | Frank J. Fabozzi(a) |
Trust Name |  | Votes For |  |  | Votes Withheld |  |  |  |  |  | Votes For |  |  | Votes Witheld |  |  |  |  |  | Votes For |  |  | Votes Withheld |  |  |  |
MVF |  |  | 57,230,408 |  |  |  | 1,126,283 |  |  |  |  |  |  |  | 56,737,318 |  |  |  | 1,619,373 |  |  |  |  |  |  |  | 2,438 |  |  |  | 0 |  |  |  |  |
|  |  |  |  | Votes Against |  |  | Abstain |  |  |  |  |  | Votes Against |  |  | Abstain |  |  |  |  |  | Votes Against |  |  | Abstain |
MFL |  |  | 34,151,234 |  |  |  | 1,565,667 |  |  |  | 0 |  |  |  | 33,258,813 |  |  |  | 2,458,088 |  |  |  | 0 |  |  |  | 2,746 |  |  |  | 0 |  |  |  | 0 |
|  | W. Carl Kester(a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust Name |  | Votes For |  |  | Votes Withheld |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
MVF |  |  | 2,438 |  |  |  | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  | Votes Against |  |  | Abstain |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
MFL |  |  | 2,746 |  |  |  | 0 |  |  |  | 0 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

| (a) | Voted on by holders of preferred shares only. |

Trust Certification

The Trusts are listed for trading on the NYSE and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. The Trusts filed with the SEC the certification of its chief executive officer and chief financial officer required by Section 302 of the Sarbanes-Oxley Act.

116 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Additional Information (continued)

Dividend Policy

Each Trust’s dividend policy is to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In order to provide shareholders with a more stable level of distributions, the Trusts may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the distributions paid by the Trusts for any particular month may be more or less than the amount of net investment income earned by the Trusts during such month. The Trusts’ current accumulated but undistributed net investment income, if any, is disclosed as accumulated earnings (loss) in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

General Information

The Trusts do not make available copies of their Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statements of Additional Information of each Trust has not been updated after completion of the respective Trust’s offerings and the information contained in each Trust’s Statement of Additional Information may have become outdated.

Except if noted otherwise herein, there were no changes to the Trusts’ charters or by-laws that would delay or prevent a change of control of the Trusts that were not approved by the shareholders. Except if noted otherwise herein, there have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolios.

In accordance with Section 23(c) of the Investment Company Act of 1940, each Trust may from time to time purchase shares of its common stock in the open market or in private transactions.

Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports by enrolling in the electronic delivery program. Electronic copies of shareholder reports are available on BlackRock’s website.

To enroll in electronic delivery:

Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:

Please contact your financial adviser. Please note that not all investment advisers, banks or brokerages may offer this service.

Householding

The Trusts will mail only one copy of shareholder documents, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Trusts at (800) 882-0052.

Availability of Quarterly Schedule of Investments

The Trusts file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Trusts’ Forms N-PORT are available on the SEC’s website at sec.gov.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 882-0052; (2) at blackrock.com; and (3) on the SEC’s website at sec.gov.

Availability of Proxy Voting Record

Information about how the Trusts voted proxies relating to securities held in the Trusts’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at blackrock.com; or by calling (800) 882-0052 and (2) on the SEC’s website at sec.gov.

Availability of Trust Updates

BlackRock will update performance and certain other data for the Trusts on a monthly basis on its website in the “Closed-end Funds” section of blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Trusts. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.

ADDITIONAL INFORMATION |  | 117

Additional Information (continued)

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

Trusts’ Service Providers

Investment Adviser

BlackRock Advisors, LLC

Wilmington, DE 19809

Accounting Agent and Custodian

State Street Bank and Trust Company

Boston, MA 02111

Transfer Agent

Computershare Trust Company, N.A.

Canton, MA 02021

VRDP Liquidity Provider

Bank of America, N.A.

New York, NY 10036

VRDP Remarketing Agent

BofA Securities, Inc.

New York, NY 10036

VRDP Tender and Paying Agent and VMTP Redemption and Paying Agent

The Bank of New York Mellon

New York, NY 10286

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Legal Counsel

Willkie Farr & Gallagher LLP

New York, NY 10019

Address of the Trusts

100 Bellevue Parkway

Wilmington, DE 19809

118 |  | 2020 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Glossary of Terms Used in this Report

Portfolio Abbreviation
AGC |  | Assured Guaranty Corp.
AGM |  | Assured Guaranty Municipal Corp.
AMBAC |  | AMBAC Assurance Corp.
AMT |  | Alternative Minimum Tax
ARB |  | Airport Revenue Bonds
BAM |  | Build America Mutual Assurance Co.
CAB |  | Capital Appreciation Bonds
COP |  | Certificates of Participation
FHA |  | Federal Housing Administration
FHLMC |  | Federal Home Loan Mortgage Corp.
FNMA |  | Federal National Mortgage Association
GARB |  | General Airport Revenue Bonds
GNMA |  | Government National Mortgage Association
GO |  | General Obligation Bonds
GTD |  | GTD Guaranteed
HFA |  | Housing Finance Agency
M/F |  | Multi-Family
NPFGC |  | National Public Finance Guarantee Corp.
PSF-GTD |  | Permanent School Fund Guaranteed
RB |  | Revenue Bond
S/F |  | Single-Family
SAB |  | Special Assessment Bonds
SAN |  | State Aid Notes
ST |  | Special Tax
TA |  | Tax Allocation

GLOSSARY OF TERMS USED IN THIS REPORT |  | 119

Want to know more?

blackrock.com | 800-882-0052

This report is intended for current holders. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. Statements and other information herein are as dated and are subject to change.

CEF-NTL-08/20-AR

Item 2 – | Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-882-0052, option 4.

Item 3 – | Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

Michael Castellano

Frank J. Fabozzi

Catherine A. Lynch

Karen P. Robards

The registrant’s board of directors has determined that Karen P. Robards qualifies as an audit committee financial expert pursuant to Item 3(c)(4) of Form N-CSR.

Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization.

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

Item 4 – | Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:

2

|  | (a) Audit Fees |  | (b) Audit-Related Fees1 |  | (c) Tax Fees2 |  | (d) All Other Fees
Entity Name |  | Current Fiscal Year End |  |  |  | Previous Fiscal Year End |  |  |  | Current Fiscal Year End |  |  |  | Previous Fiscal Year End |  |  |  | Current Fiscal Year End |  |  |  | Previous Fiscal Year End |  |  |  | Current Fiscal Year End |  |  |  | Previous Fiscal Year End
BlackRock MuniVest Fund, Inc. |  | $36,720 |  |  |  | $37,944 |  |  |  | $0 |  |  |  | $0 |  |  |  | $21,300 |  |  |  | $22,000 |  |  |  | $0 |  |  |  | $0

The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (“Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):

|  | Current Fiscal Year End |  | Previous Fiscal Year End
(b) Audit-Related Fees1 |  | $0 |  | $0
(c) Tax Fees2 |  | $0 |  | $0
(d) All Other Fees3 |  | $1,984,000 |  | $2,050,500

1 The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.

2 The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.

3 Non-audit fees of $1,984,000 and $2,050,500 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription. These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-

3

approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:

Entity Name |  | Current Fiscal Year End |  | Previous Fiscal Year End |  |
BlackRock MuniVest Fund, Inc. |  | $21,300 |  | $22,000 |  |

Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored or advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:

Current Fiscal Year End |  | Previous Fiscal Year End
$1,984,000 |  | $2,050,500

These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser, and the Affiliated Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5 – | Audit Committee of Listed Registrant

| (a) | The following individuals are members of the registrant’s separately designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

|  | Michael Castellano

|  | Frank J. Fabozzi

|  | Catherine A. Lynch

|  | Karen P. Robards

| (b) | Not Applicable

4

Item 6 – | Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 – | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – The board of directors has delegated the voting of proxies for the Fund’s portfolio securities to the Investment Adviser pursuant to the Investment Adviser’s proxy voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund securities in the best interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Fund’s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or the Investment Adviser, on the other. In such event, provided that the Investment Adviser’s Equity Investment Policy Oversight Committee, or a sub-committee thereof (the “Oversight Committee”) is aware of the real or potential conflict or material non-routine matter and if the Oversight Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment Adviser’s clients. If the Investment Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Oversight Committee shall determine how to vote the proxy after consulting with the Investment Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal and Compliance Department and concluding that the vote cast is in its client’s best interest notwithstanding the conflict. A copy of the Fund’s Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL, a copy of the Fund’s Global Corporate Governance & Engagement Principles are attached as Exhibit 99.GLOBAL.CORP.GOV and a copy of the Fund’s Corporate Governance and Proxy Voting Guidelines for U.S. Securities are attached as Exhibit 99.US.CORP.GOV. Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SEC’s website at http://www.sec.gov.

Item 8 – | Portfolio Managers of Closed-End Management Investment Companies

(a)(1) As of the date of filing this Report:

The registrant is managed by a team of investment professionals comprised of Phillip Soccio, CFA, Director at BlackRock, Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock and Michael Perilli, Vice President at BlackRock. Each of the foregoing professionals is a member of BlackRock’s municipal tax-exempt management group and is jointly responsible for the day-to-day management of the registrant’s portfolio, which includes setting the registrant’s overall investment strategy, overseeing the management of the registrant and/or selection of its investments. Messrs. Soccio, Jaeckel and Perilli have been members of the registrant’s portfolio management team since 2008, 2006, and 2018 respectively.

5

|  | Portfolio Manager |  | Biography
|  | Phillip Soccio |  | Director of BlackRock since 2009; Vice President of BlackRock from 2005 to 2008.
|  | Theodore R. Jaeckel, Jr. |  | Managing Director of BlackRock since 2006; Managing Director of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2005 to 2006; Director of MLIM from 1997 to 2005.
|  | Michael Perilli |  | Vice President of BlackRock since 2014; Associate of BlackRock from 2008 to 2014.

(a)(2) As of August 31, 2020:

|  | (ii) Number of Other Accounts Managed and Assets by Account Type |  | (iii) Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based
(i) Name of Portfolio Manager |  | Other Registered Investment Companies |  |  |  | Other Pooled Investment Vehicles |  |  |  | Other Accounts |  |  |  | Other Registered Investment Companies |  |  |  | Other Pooled Investment Vehicles |  |  |  | Other Accounts
Phillip Soccio |  | 15 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0
|  | $5.68 Billion |  |  |  | $0 |  |  |  | $0 |  |  |  | $0 |  |  |  | $0 |  |  |  | $0
Theodore R. Jaeckel, Jr. |  | 33 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0
|  | $26.81 Billion |  |  |  | $0 |  |  |  | $0 |  |  |  | $0 |  |  |  | $0 |  |  |  | $0
Michael Perilli |  | 21 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0
|  | $6.22 Billion |  |  |  | $0 |  |  |  | $0 |  |  |  | $0 |  |  |  | $0 |  |  |  | $0

(iv) Portfolio Manager Potential Material Conflicts of Interest

BlackRock has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition, BlackRock, Inc., its affiliates and significant shareholders and any officer, director, shareholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, Inc., or any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock, Inc.’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock, Inc. or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information. Certain portfolio managers also may manage accounts whose investment

6

strategies may at times be opposed to the strategy utilized for a fund. It should also be noted that a portfolio manager may be managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only accounts, subject to incentive fees. Such portfolio managers may therefore be entitled to receive a portion of any incentive fees earned on such accounts. Currently, the portfolio managers of this Fund are not entitled to receive a portion of incentive fees of other accounts.

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock, Inc. has adopted policies that are intended to ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.

(a)(3) As of August 31, 2020:

Portfolio Manager Compensation Overview

The discussion below describes the portfolio managers’ compensation as of August 31, 2020.

BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock.

Base Compensation. Generally, portfolio managers receive base compensation based on their position with the firm.

Discretionary Incentive Compensation. Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Funds or other accounts managed by the portfolio managers are measured. Among other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio manager’s compensation based on the performance of the Funds and other accounts managed by each portfolio manager relative to the various benchmarks. Performance of fixed income funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-, 3- and 5- year periods, as applicable. With respect to these portfolio managers, such benchmarks for the Fund and other accounts are: a combination of market-based indices (e.g., Standard & Poor’s Municipal Bond Index), certain customized indices and certain fund industry peer groups.

7

Distribution of Discretionary Incentive Compensation. Discretionary incentive compensation is distributed to portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards that notionally track the return of certain BlackRock investment products.

Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio managers of this Fund have deferred BlackRock, Inc. stock awards.

For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage, which provides direct alignment of portfolio manager discretionary incentive compensation with investment product results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only portfolio managers who manage specified products and whose total compensation is above a specified threshold are eligible to participate in the deferred cash award program.

Other Compensation Benefits. In addition to base salary and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:

Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock, Inc. employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit ($285,000 for 2020). The RSP offers a range of investment options, including registered investment companies and collective investment funds managed by the firm. BlackRock, Inc. contributions follow the investment direction set by participants for their own contributions or, absent participant investment direction, are invested into a target date fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for investment in BlackRock, Inc. common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of $25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to participate in these plans.

8

(a)(4) Beneficial Ownership of Securities – As of August 31, 2020.

Portfolio Manager |  | Dollar Range of Equity Securities of the Fund Beneficially Owned
Phillip Soccio |  | $10,001-$50,000
Theodore R. Jaeckel, Jr. |  | None
Michael Perilli |  | $1-$10,000

(b) Not Applicable

Item 9 – | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases during the period covered by this report.

Item 10 – | Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

Item 11 – | Controls and Procedures

(a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 – | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable

Item 13 – | Exhibits attached hereto

(a)(1) – Code of Ethics – See Item 2

(a)(2) – Section 302 Certifications are attached

(a)(3) – Not Applicable

(a)(4) – Not Applicable

(b) – Section 906 Certifications are attached

9

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock MuniVest Fund, Inc.
By: |  | /s/ John M. Perlowski
|  | John M. Perlowski
|  | Chief Executive Officer (principal executive officer) of
|  | BlackRock MuniVest Fund, Inc.

Date: October 30, 2020

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By: |  | /s/ John M. Perlowski
|  | John M. Perlowski
|  | Chief Executive Officer (principal executive officer) of
|  | BlackRock MuniVest Fund, Inc.

Date: October 30, 2020

By: |  | /s/ Neal J. Andrews
|  | Neal J. Andrews
|  | Chief Financial Officer (principal financial officer) of
|  | BlackRock MuniVest Fund, Inc.

Date: October 30, 2020

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