BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-07156

Name of Fund: BlackRock MuniYield Investment Quality Fund (MFT)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield Investment Quality Fund, 55 East 52nd Street, New York, NY 10055

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

Date of fiscal year end: 07/31/2013

Date of reporting period: 04/30/2013

Item 1    –    Schedule of Investments

Schedule of Investments April 30, 2013 (Unaudited)    BlackRock MuniYield Investment Quality Fund (MFT)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Alabama – 8.4%

      

Alabama Incentives Financing Authority, RB, Series A,

      

5.00%, 9/01/42

    $ 3,900       $ 4,365,621   

Birmingham Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC):

      

6.13%, 6/01/34

      1,500         1,784,655   

6.00%, 6/01/39

      2,985         3,552,807   

Birmingham Water Works Board, RB, Series B:

      

5.00%, 1/01/38

      355         399,276   

5.00%, 1/01/43

      740         827,779   

Selma IDB, RB, International Paper Co. Project,

      350         387,215   
     

 

 

  

5.38%, 12/01/35

         11,317,353   
     

 

 

  

California – 16.8%

      

California Educational Facilities Authority, RB, University of Southern California, Series A,

      

5.25%, 10/01/38

      1,960         2,292,730   

California Health Facilities Financing Authority, RB, Sutter Health, Series B,

      

6.00%, 8/15/42

      1,150         1,422,608   

City of San Jose California, Refunding ARB, Series A-1, AMT:

      

5.50%, 3/01/30

      1,600         1,830,544   

6.25%, 3/01/34

      1,250         1,496,050   

County of Sacramento California, ARB, Senior Series A (AGC),

      

5.50%, 7/01/41

      1,400         1,622,334   

Los Angeles Community College District California, GO, Election of 2001, Series A (NPFGC),

      

5.00%, 8/01/32

      2,780         3,131,837   

Redondo Beach Unified School District, GO, Election of 2008, Series E,

      

5.50%, 8/01/34

      1,000         1,191,180   

San Bernardino Community College District, GO, Election of 2002, Series A,

      

6.25%, 8/01/18(a)

      840         1,072,243   

San Diego Public Facilities Financing Authority, Refunding RB, Series B (AGC),

      

5.38%, 8/01/34

      1,020         1,194,910   

State of California, GO, Various Purpose:

      

5.00%, 4/01/37

      1,135         1,290,892   

(AGC), 5.50%, 11/01/39

      3,450         4,063,099   

State of California, GO, Refunding, Various Purpose,

      

5.00%, 9/01/41

      1,860         2,067,241   
     

 

 

  
        22,675,668   
     

 

 

  

Colorado – 1.1%

      

Colorado Health Facilities Authority, RB, Hospital, NCMC, Inc. Project, Series B (AGM),

      

6.00%, 5/15/26

      1,300         1,539,460   
     

 

 

  

Florida – 10.6%

      

City of Jacksonville Florida, Refunding RB, Better Jacksonville, Series A,

      

5.00%, 10/01/30

      1,000         1,155,920   

County of Lee Florida, Refunding ARB, Series A, AMT,

      

5.38%, 10/01/32

      1,000         1,115,210   

County of Miami-Dade Florida Aviation, Refunding RB, Series A, AMT:

      

5.00%, 10/01/31

      1,500         1,672,800   

5.00%, 10/01/32

      1,000         1,108,440   

Florida Housing Finance Corp., HRB, Brittany Rosemont Apartments, Series C-1, AMT (AMBAC),

      

6.75%, 8/01/14

      170         170,413   

Jacksonville Florida Port Authority, Refunding RB, AMT,

      

5.00%, 11/01/38

      850         924,358   

JEA Electric System, Refunding RB, Sub-Series C,

      

5.00%, 10/01/37(b)

      2,280         2,591,562   

Manatee County Housing Finance Authority, RB, Series A, AMT (Fannie Mae),

      

5.90%, 9/01/40

      205         223,196   

Miami-Dade County Expressway Authority, Refunding RB, Series A,

      

5.00%, 7/01/33

      1,400         1,579,830   

Orlando-Orange County Expressway Authority, Refunding RB,

      

5.00%, 7/01/35

      2,500         2,839,050   

Tampa-Hillsborough County Expressway Authority, Refunding RB, Series B,

      

5.00%, 7/01/42

      810         902,542   
     

 

 

  
        14,283,321   
     

 

 

  

Georgia – 3.2%

      

City of Atlanta Georgia, Refunding ARB, Series C, AMT:

      

5.00%, 1/01/37

      3,000         3,286,830   

5.00%, 1/01/42

      1,000         1,088,650   
     

 

 

  
        4,375,480   
     

 

 

  

Illinois – 16.4%

      

Chicago Illinois Board of Education, GO, Series A,

      

5.50%, 12/01/39

      1,500         1,712,415   

Chicago Illinois Transit Authority, RB, Sales Tax Receipts Revenue,

      

5.25%, 12/01/36

      425         487,539   

Chicago Transit Authority, RB:

      

Federal Transit Administration Section 5309, Series A (AGC), 6.00%, 6/01/26

      1,400         1,625,232   

Sales Tax Receipts Revenue, 5.25%, 12/01/40

      2,355         2,693,955   

City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien:

      

Series A, 5.75%, 1/01/39

      770         904,850   

Series C, 6.50%, 1/01/41

      3,680         4,766,888   

 

    BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    APRIL 30, 2013   1

Schedule of Investments (continued)    BlackRock MuniYield Investment Quality Fund (MFT)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Illinois (concluded)

      

City of Chicago Illinois, RB, Wastewater Transmission, Second Lien,

      

5.00%, 1/01/42

    $ 2,000       $ 2,235,260   

City of Chicago Illinois, Refunding RB, Sales Tax Revenue, Series A,

      

5.25%, 1/01/38

      525         603,750   

Cook County Forest Preserve District, GO, Series C,

      

5.00%, 12/15/32

      385         440,763   

Cook County Forest Preserve District, GO, Refunding, Limited Tax Project, Series B,

      

5.00%, 12/15/32

      180         206,071   

Illinois Finance Authority, RB, Carle Foundation, Series A,

      

6.00%, 8/15/41

      1,555         1,864,803   

Illinois Finance Authority, Refunding RB, Northwestern Memorial Healthcare,

      

5.00%, 8/15/37

      305         348,548   

Illinois State Toll Highway Authority, RB, Series A,

      

5.00%, 1/01/38(b)

      995         1,125,216   

Metropolitan Pier & Exposition Authority, Refunding RB, Mccormick Place Project, Series B,

      

5.00%, 12/15/28

      1,360         1,581,571   

Railsplitter Tobacco Settlement Authority, RB:

      

5.50%, 6/01/23

      940         1,148,887   

6.00%, 6/01/28

      270         329,721   
     

 

 

  
        22,075,469   
     

 

 

  

Indiana – 4.3%

      

Indiana Finance Authority, RB, Private Activity Bonds, Ohio River Bridges East End Crossing Project, Series A, AMT,

      

5.00%, 7/01/40

      375         399,600   

Indiana Finance Authority Waste Water Utility, RB, CWA Authority Project, First Lien, Series A,

      

5.00%, 10/01/41

      1,500         1,713,315   

Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC),

      

5.50%, 1/01/38

      3,310         3,742,021   
     

 

 

  
        5,854,936   
     

 

 

  

Kansas – 2.1%

      

Kansas Development Finance Authority, Refunding RB, Adventist Health System, Sunbelt Obligation Group,
Series A,

      

5.00%, 11/15/32

      2,410         2,778,875   
     

 

 

  

Louisiana – 0.7%

      

Louisiana State University & Agricultural & Mechanical College, RB,

      

5.00%, 7/01/37

      300         342,348   

New Orleans Aviation Board Louisiana, Refunding GARB, Restructuring (AGC):

      

Series A-1, 6.00%, 1/01/23

      375         447,900   

New Orleans Aviation Board Louisiana, Refunding GARB, Restructuring (AGC) (concluded):

      

Series A-2, 6.00%, 1/01/23

      160         191,104   
     

 

 

  
        981,352   
     

 

 

  

Massachusetts – 0.9%

      

University of Massachusetts Building Authority, RB, Senior Series 2,

      

5.00%, 11/01/39

      1,000         1,157,140   
     

 

 

  

Michigan – 4.9%

      

City of Detroit Michigan, RB, Water Supply System, Second Lien, Series B (AGM),

      

6.25%, 7/01/36

      1,800         2,090,844   

City of Detroit Michigan, Refunding RB (AGM):

      

Sewage Disposal System, Senior Lien, Series B, 7.50%, 7/01/33

      660         817,707   

Sewage Disposal System, Series C-1, 7.00%, 7/01/27

      1,650         2,024,336   

Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital,

      

8.25%, 9/01/39

      1,265         1,620,680   
     

 

 

  
        6,553,567   
     

 

 

  

Minnesota – 2.7%

      

City of Minneapolis Minnesota, Refunding RB, Fairview Health Service, Series B (AGC),

      

6.50%, 11/15/38

      3,000         3,673,500   
     

 

 

  

Mississippi – 2.3%

      

Mississippi Development Bank, Refunding RB:

      

Jackson Mississippi Water & Sewer System, Series A (AGM), 5.00%, 9/01/30

      1,715         1,992,418   

Jackson Public School District Project, 5.00%, 4/01/28

      1,000         1,140,970   
     

 

 

  
        3,133,388   
     

 

 

  

Nevada – 4.1%

      

Clark County Water Reclamation District, GO, Series A,

      

5.25%, 7/01/34

      1,500         1,787,340   

County of Clark Nevada, ARB:

      

Las Vegas-McCarran International Airport, Series A (AGM), 5.25%, 7/01/39

      2,375         2,678,905   

Subordinate Lien, Series A-2 (NPFGC), 5.00%, 7/01/36

      1,000         1,041,000   
     

 

 

  
        5,507,245   
     

 

 

  

 

2   BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    APRIL 30, 2013    

Schedule of Investments (continued)    BlackRock MuniYield Investment Quality Fund (MFT)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

New Jersey – 3.0%

      

New Jersey Health Care Facilities Financing Authority, RB, Virtua Health (AGC),

      

5.50%, 7/01/38

    $ 1,400       $ 1,555,722   

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

      

5.50%, 6/15/41

      1,195         1,400,492   

5.00%, 6/15/42

      1,000         1,110,490   
     

 

 

  
        4,066,704   
     

 

 

  

New York – 4.5%

      

Metropolitan Transportation Authority, Refunding RB, Transportation Revenue, Series C,

      

5.00%, 11/15/28

      1,200         1,405,452   

New York City Municipal Water Finance Authority, Refunding RB, Series FF-2,

      

5.50%, 6/15/40

      1,545         1,823,440   

New York City Transitional Finance Authority, RB, Fiscal 2009, Series S-4 (AGC),

      

5.50%, 1/15/29

      2,000         2,398,480   

New York State Dormitory Authority, RB, Series B,

      

5.00%, 3/15/37

      390         447,420   
     

 

 

  
        6,074,792   
     

 

 

  

North Carolina – 1.2%

      

North Carolina Medical Care Commission, RB, Duke University Health System, Health Care Facilities, Series A,

      

5.00%, 6/01/32

      1,360         1,591,390   
     

 

 

  

Ohio – 1.2%

      

The Ohio State University, RB, Special Purpose General Receipts, Series A,

      

5.00%, 6/01/38

      1,400         1,623,594   
     

 

 

  

Pennsylvania – 4.0%

      

Pennsylvania Higher Educational Facilities Authority, RB, Temple University, First Series,

      

5.00%, 4/01/42

      2,000         2,267,420   

Pennsylvania Turnpike Commission, RB:

      

Motor License Fund-Enhanced, Sub-Series A, 5.00%, 12/01/36

      380         431,038   

Motor License Fund-Enhanced, Sub-Series A, 5.00%, 12/01/38

      320         359,625   

Sub-Series A, 6.00%, 12/01/41

      2,000         2,272,060   
     

 

 

  
        5,330,143   
     

 

 

  

Puerto Rico – 1.2%

      

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A,

      

6.38%, 8/01/39

      1,425         1,606,288   
     

 

 

  

South Carolina – 2.0%

      

Charleston Educational Excellence Finance Corp., Refunding RB, Charleston County School(b):

      

5.00%, 12/01/29

      1,050         1,247,621   

5.00%, 12/01/30

      1,205         1,424,575   
     

 

 

  
        2,672,196   
     

 

 

  

Texas – 16.7%

      

Austin Community College District, RB, Educational Facilities Project, Round Rock Campus,

      

5.25%, 8/01/33

      2,250         2,562,435   

City of Brownsville Texas Utilities System, Refunding RB, Series A,

      

5.00%, 9/01/29(b)

      825         965,118   

City of Houston, GO, Refunding, Public Improvement, Series A,

      

5.00%, 3/01/38(b)

      530         612,844   

City of Houston Texas Utility System, Refunding RB, First Lien, Series A (AGC):

      

6.00%, 11/15/35

      2,700         3,265,542   

6.00%, 11/15/36

      2,055         2,503,586   

5.38%, 11/15/38

      1,000         1,162,100   

Dallas Fort Worth International Airport, ARB, Series H, AMT,

      

5.00%, 11/01/42

      1,355         1,440,799   

Frisco ISD Texas, GO, School Building (AGC),

      

5.50%, 8/15/41

      1,210         1,452,823   

Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B,

      

7.25%, 12/01/18(a)

      500         668,740   

North Texas Tollway Authority, RB, Special Projects System, Series A,

      

5.50%, 9/01/41

      2,750         3,269,255   

North Texas Tollway Authority, Refunding RB:

      

First Tier (AGM), 6.00%, 1/01/43

      1,000         1,190,540   

First Tier, Series K-1 (AGC), 5.75%, 1/01/38

      1,400         1,610,308   

Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Christus Health, Series A (AGC),

      

6.50%, 7/01/37

      1,100         1,296,779   

Texas Transportation Commission, Refunding RB, First Tier, Series A,

      

5.00%, 8/15/41

      450         490,446   
     

 

 

  
        22,491,315   
     

 

 

  

Utah – 0.8%

      

Utah Transit Authority, Refunding RB, Sales Tax Revenue,

      

5.00%, 6/15/42

      1,000         1,131,290   
     

 

 

  

 

    BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    APRIL 30, 2013   3

Schedule of Investments (continued)    BlackRock MuniYield Investment Quality Fund (MFT)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

Virginia – 5.0%

      

Fairfax County IDA, RB, Inova Health System Project, Series A,

      

5.00%, 5/15/40

    $ 700       $ 798,826   

Norfolk EDA, Refunding RB, Sentara Healthcare, Series B,

      

5.00%, 11/01/36

      4,000         4,578,920   

Virginia Public School Authority, RB, School Financing,

      

6.50%, 12/01/18(a)

      1,000         1,308,910   
     

 

 

  
        6,686,656   
     

 

 

  

Washington – 1.5%

      

City of Seattle Washington, Refunding RB, Series A,

      

5.25%, 2/01/36

      1,000         1,162,820   

State of Washington, GO, Various Purpose, Series B,

      

5.25%, 2/01/36

      725         851,846   
     

 

 

  
        2,014,666   
     

 

 

  

Wisconsin – 0.3%

      

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert Health, Inc. Obligated Group,
Series A,

      

5.00%, 4/01/42

      320         357,136   
     

 

 

  

Total Municipal Bonds – 119.8%

         161,552,924   
     

 

 

  

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts(c)

              

Alabama – 1.2%

      

Mobile Board of Water & Sewer Commissioners, RB (NPFGC),

      

5.00%, 1/01/31

      1,500         1,620,840   
     

 

 

  

California – 0.9%

      

University of California, Refunding RB, Limited Project, Series G,

      

5.00%, 5/15/37

      1,000         1,148,846   
     

 

 

  

District of Columbia – 0.7%

      

District of Columbia Water & Sewer Authority, Refunding RB, Series A,

      

6.00%, 10/01/35(d)

      760         917,574   
     

 

 

  

Florida – 3.0%

      

County of Miami-Dade Florida, Refunding RB, Transit System, Sales Surtax,

      

5.00%, 7/01/42

      660         743,668   

Hillsborough County Aviation Authority, RB, Series A, AMT (AGC),

      

5.50%, 10/01/38

      2,499         2,853,328   

Lee County Housing Finance Authority, RB, Multi-County Program, Series A-2, AMT (Ginnie Mae),

      

6.00%, 9/01/40

      360         379,746   
     

 

 

  
        3,976,742   
     

 

 

  

Illinois – 3.3%

      

Chicago Transit Authority, Refunding RB, Federal Transit Administration Section 5309 (AGM),

      

5.00%, 6/01/28

      2,999         3,332,868   

City of Chicago Illinois, Refunding RB, Second Lien,

      

5.00%, 11/01/42

      960         1,086,707   
     

 

 

  
        4,419,575   
     

 

 

  

Kentucky – 0.9%

      

Kentucky State Property & Building Commission, Refunding RB, Project No. 93 (AGC),

      

5.25%, 2/01/27

      1,002         1,173,163   
     

 

 

  

Massachusetts – 1.7%

      

Massachusetts School Building Authority, RB, Senior Series B,

      

5.00%, 10/15/41

      2,040         2,354,303   
     

 

 

  

Nevada – 7.2%

      

Clark County Water Reclamation District, GO:

      

Limited Tax, 6.00%, 7/01/38

      2,010         2,416,100   

Series B, 5.50%, 7/01/29

      1,994         2,436,562   

Las Vegas Valley Water District, GO, Refunding, Series C,

      

5.00%, 6/01/28

      4,200         4,907,406   
     

 

 

  
        9,760,068   
     

 

 

  

New Jersey – 3.1%

      

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

      

6.00%, 12/15/34(a)

      329         391,848   

6.00%, 12/15/34

      671         799,062   

New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC,

      

5.25%, 10/01/29

      1,610         1,785,282   

New Jersey Transportation Trust Fund Authority, RB, Series B,

      

5.25%, 6/15/36(d)

      1,000         1,142,540   
     

 

 

  
        4,118,732   
     

 

 

  

New York – 21.0%

      

Hudson New York Yards Infrastructure Corp., RB, Series A,

      

5.75%, 2/15/47

      1,000         1,187,146   

New York City Municipal Water Finance Authority, Refunding RB:

      

Fiscal 2012, Series BB, 5.25%, 6/15/44

      2,999         3,444,200   

Series FF, 5.00%, 6/15/45

      2,999         3,395,323   

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

      1,095         1,292,037   

New York City Transitional Finance Authority, BARB, Fiscal 2009, Series S-3,

      

5.25%, 1/15/39

      1,000         1,154,400   

New York City Transitional Finance Authority, RB, Future Tax Secured, Sub-Series E-1,

      

5.00%, 2/01/42

      1,160         1,321,772   

 

4   BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    APRIL 30, 2013    

Schedule of Investments (continued)    BlackRock MuniYield Investment Quality Fund (MFT)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts(c)

    Par
(000)		      Value  

New York (concluded)

      

New York Liberty Development Corp., RB, 1 World Trade Center Project,

      

5.25%, 12/15/43

    $ 3,000       $ 3,445,513   

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project,

      

5.75%, 11/15/51

      1,770         2,099,149   

New York State Dormitory Authority, ERB, Series B,

      

5.25%, 3/15/38

      3,250         3,777,832   

New York State Dormitory Authority, RB, General Purpose, Series C,

      

5.00%, 3/15/41

      4,500         5,099,940   

New York State Thruway Authority, Refunding RB, Series G (AGM),

      

5.00%, 1/01/32

      2,000         2,157,780   
     

 

 

  
        28,375,092   
     

 

 

  

Puerto Rico – 1.0%

      

Puerto Rico Sales Tax Financing Corp., Refunding RB, Series C,

      

5.25%, 8/01/40

      1,200         1,300,116   
     

 

 

  

Texas – 4.1%

      

City of San Antonio Texas, Refunding RB, Series A,

      

5.25%, 2/01/31(d)

      2,609         3,069,541   

Waco Educational Finance Corp., Refunding RB, Baylor University,

      

5.00%, 3/01/43

      2,220         2,499,875   
     

 

 

  
        5,569,416   
     

 

 

  

Utah – 0.8%

      

City of Riverton Utah Hospital, RB, IHC Health Services, Inc.,

      

5.00%, 8/15/41

      1,005         1,129,834   
     

 

 

  

Washington – 1.6%

      

University of Washington, Refunding RB, Series A,

      

5.00%, 7/01/41

      1,875         2,173,156   
     

 

 

  

Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts – 50.5%

         68,037,457   
     

 

 

  

Total Long-Term Investments
(Cost – $209,541,570) – 170.3%

         229,590,381   
     

 

 

  

Short-Term Securities

    Shares         

FFI Institutional Tax-Exempt Fund,

      

0.03%(e)(f)

      3,162,531         3,162,531   
     

 

 

  

Total Short-Term Securities
(Cost – $3,162,531) – 2.4%

         3,162,531   
     

 

 

  

Total Investments
(Cost – $212,704,101*) – 172.7%

         232,752,912   

Liabilities in Excess of Other Assets – (4.5)%

         (6,051,216 ) 

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable – (26.3)%

  

      (35,399,197 ) 

VMTP Shares, at Liquidation Value – (41.9)%

         (56,500,000 ) 
     

 

 

  

Net Assets Applicable to Common Shares– 100.0%

       $ 134,802,499   
     

 

 

  

 

* As of April 30, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

    $ 177,515,930   
  

 

 

  

Gross unrealized appreciation

    $ 20,154,376   

Gross unrealized depreciation

      (298,038 ) 
  

 

 

  

Net unrealized appreciation

    $ 19,856,338   
  

 

 

  

Notes to Schedule of Investments

 

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

 

(b) When-issued security. Unsettled when-issued transactions were as follows:

 

Counterparty

    Value      Unrealized
Appreciation		  

Apex Pryor Securities, Inc.

    $ 612,844       $ 6,095   

Jefferies & Co.

    $ 965,118       $ 5,825   

JPMorgan Chase & Co.

    $ 1,125,216       $ 11,781   

Wells Fargo & Co.

    $ 5,263,758       $ 49,918   

 

(c) Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

(d) All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from 10/01/16 to 6/15/19, is $3,180,048.

 

    BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    APRIL 30, 2013   5

Schedule of Investments (continued)    BlackRock MuniYield Investment Quality Fund (MFT)
  

 

(e) Investments in issuers considered to be an affiliate of the Fund during the period ended April 30, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate

    Shares Held at
July  31,
2012		      Net Activity      Shares Held at
April  30,
2013		      Income  

FFI Institutional Tax-Exempt Fund

      –         3,162,531         3,162,531       $ 349   

 

(f) Represents the current yield as of report date.

 

•  

Financial futures contracts as of April 30, 2013 were as follows:

 

Contracts
Sold		   

Issue

    Exchange    Expiration    Notional Value      Unrealized
Depreciation		  
(126)    10-Year US Treasury Note    Chicago Board of Trade    June 2013    $ 16,803,281       $ (170,566 ) 

Portfolio Abbreviations

 

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:   AGC   Assured Guaranty Corp.   Ginnie Mae   Government National Mortgage Association
  AGM   Assured Guaranty Municipal Corp.   GO   General Obligation Bonds
  AMBAC   American Municipal Bond Assurance Corp.   HRB   Housing Revenue Bonds
  AMT   Alternative Minimum Tax (subject to)   IDA   Industrial Development Authority
  ARB   Airport Revenue Bonds   IDB   Industrial Development Board
  BARB   Building Aid Revenue Bonds   ISD   Independent School District
  EDA   Economic Development Authority   NPFGC   National Public Finance Guarantee Corp.
  ERB   Education Revenue Bonds   RB   Revenue Bonds
  Fannie Mae   Federal National Mortgage Association   S/F   Single-Family
  GARB   General Airport Revenue Bonds    

 

6   BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    APRIL 30, 2013    

Schedule of Investments (concluded)    BlackRock MuniYield Investment Quality Fund (MFT)
  

 

•  

Fair Value Measurements – Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 – unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Fund has the ability to access

 

  •  

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

 

  •  

Level 3 – unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

      Level 1      Level 2      Level 3      Total  

Assets:

            

Investments:

            

Long-Term Investments1

      –       $ 229,590,381         –       $ 229,590,381   

Short-Term Securities

    $ 3,162,531         –         –         3,162,531   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 3,162,531       $ 229,590,381         –       $ 232,752,912   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

1

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

 

      Level 1     Level 2      Level 3      Total  

Derivative Financial Instruments2

           

Liabilities:

           

Interest rate contracts

    $ (170,566 )      –         –       $ (170,566 ) 

 

2 

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

Certain of the Fund’s assets and liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1      Level 2     Level 3      Total  

Assets:

           

Cash pledged for financial futures contracts

    $ 167,000         –        –       $ 167,000   

Liabilities:

           

TOB trust certificates

      –       $ (35,380,644 )      –         (35,380,644 ) 

VMTP shares

      –         (56,500,000 )      –         (56,500,000 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 167,000       $ (91,880,644 )      –       $ (91,713,644 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

There were no transfers between levels during the period ended April 30, 2013.

 

    BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    APRIL 30, 2013   7

Item 2    –    Controls and Procedures
2(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.
2(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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3    –    Exhibits

Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

BlackRock MuniYield Investment Quality Fund

    
By:  

/s/ John M. Perlowski

    
  John M. Perlowski    
  Chief Executive Officer (principal executive officer) of  
  BlackRock MuniYield Investment Quality Fund

Date: June 24, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:  

/s/ John M. Perlowski

    
  John M. Perlowski    
  Chief Executive Officer (principal executive officer) of  
  BlackRock MuniYield Investment Quality Fund  
Date: June 24, 2013
By:  

/s/ Neal J. Andrews

    
  Neal J. Andrews    
  Chief Financial Officer (principal financial officer) of  
  BlackRock MuniYield Investment Quality Fund  

Date: June 24, 2013