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: 07/31/2014

Date of reporting period: 10/31/2013

Item 1 – Schedule of Investments

Schedule of Investments October 31, 2013 (Unaudited)

   

BlackRock MuniYield Investment Quality Fund (MFT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Alabama — 5.0%

     

City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital, (AGC): 6.13%, 6/01/34

    $ 1,500      $ 1,689,915   

6.00%, 6/01/39

      2,985        3,350,632   

City of Madison Alabama, GO, Refunding, 5.00%, 4/01/37

      375        388,084   

City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35

      350        342,111   
    

 

 

  
               5,770,742   

California — 19.1%

     

California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38

      1,960        2,099,199   

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42

      1,150        1,326,341   

California State Public Works Board, LRB, Department of Corrections and Rehabilitation, Series F, 5.25%, 9/01/33

      490        518,910   

City & County of San Francisco Airports Commission, Refunding ARB, Second Series A, AMT:

     

5.50%, 5/01/28

      720        787,392   

5.25%, 5/01/33

      560        582,949   

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

     

5.50%, 3/01/30

      1,600        1,698,896   

6.25%, 3/01/34

      1,250        1,387,725   

County of Sacramento California, ARB, Senior Series A (AGC), 5.50%, 7/01/41

      1,400        1,541,372   

Kern Community College District, GO, Safety, Repair & Improvement, Series C, 5.50%, 11/01/33

      970        1,088,961   

Los Angeles Community College District California, GO, Election of 2001, Series A (NPFGC), 5.00%, 8/01/32

      2,780        2,932,872   

Redondo Beach Unified School District, GO, Election of 2008, Series E, 5.50%, 8/01/34

      1,000        1,066,770   
Municipal Bonds    Par  
(000)		     Value  

California (concluded)

     

San Diego Public Facilities Financing Authority Water, Refunding RB, Series B (AGC), 5.38%, 8/01/34

    $ 1,020      $ 1,114,819   

State of California, GO, Various Purposes (AGC), 5.50%, 11/01/39

      3,450        3,744,699   

University of California Medical Center, Refunding RB, Series J, 5.25%, 5/15/38

      2,235        2,344,359   
    

 

 

  
               22,235,264   

Colorado — 2.2%

     

City & County of Denver Colorado Airport System, ARB, Series A, AMT: 5.50%, 11/15/28

      500        537,510   

5.50%, 11/15/30

      225        237,978   

5.50%, 11/15/31

      270        283,595   

Colorado Health Facilities Authority, RB, Hospital, NCMC, Inc. Project, Series B (AGM), 6.00%, 5/15/26

      1,300        1,456,117   
    

 

 

  
               2,515,200   

Florida — 17.3%

     

City of Jacksonville Florida, Refunding RB, Series A, 5.25%, 10/01/33

      270        288,498   

County of Hillsborough Florida Aviation Authority, Refunding RB, Tampa International Airport, Series A, AMT, 5.50%, 10/01/29

      1,170        1,236,807   

County of Lee Florida, Refunding ARB, Series A, AMT, 5.38%, 10/01/32

      1,000        1,025,490   

County of Manatee Florida Housing Finance Authority, RB, Series A, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 5.90%, 9/01/40

      155        158,269   

County of Miami-Dade Florida, RB, Seaport: Series A, 6.00%, 10/01/38

      1,840        2,014,046   

Series A, 5.50%, 10/01/42

      2,125        2,217,310   

Series B, AMT, 6.00%, 10/01/26

      590        653,171   

Series B, AMT, 6.00%, 10/01/27

      775        853,128   

Series B, AMT, 6.25%, 10/01/38

      310        331,238   

Series B, AMT, 6.00%, 10/01/42

      410        428,036   

 

                
   BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    OCTOBER 31, 2013    1

Schedule of Investments (continued)

   

BlackRock MuniYield Investment Quality Fund (MFT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Florida (concluded)

     

County of Miami-Dade Florida, Refunding RB:

     

Expressway Authority, Series A, 5.00%, 7/01/33

    $ 1,370      $ 1,407,730   

Seaport, Series D, AMT, 6.00%, 10/01/26

      735        813,696   

Transit System Sales Surtax, 5.00%, 7/01/42

      2,660        2,700,964   

Water & Sewer System, Series B, 5.25%, 10/01/29

      1,890        2,057,548   

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

     

5.00%, 10/01/31

      2,165        2,192,885   

5.00%, 10/01/32

      1,000        1,005,680   

Reedy Creek Improvement District, GO, Series A, 5.25%, 6/01/32

      710        761,915   
    

 

 

  
               20,146,411   

Illinois — 17.7%

     

Chicago Transit Authority, Refunding RB, Federal Transit Administration, Section 5309 (AGM), 5.00%, 6/01/28

      3,000        3,081,810   

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

     

Series A, 5.75%, 1/01/39

      770        802,017   

Series C, 6.50%, 1/01/41

      3,680        4,138,307   

City of Chicago Illinois, Refunding RB, Sales Tax, Series A, 5.25%, 1/01/38

      525        547,979   

City of Chicago Illinois Transit Authority, RB:

     

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

      1,400        1,525,076   

Sales Tax Receipts, 5.25%, 12/01/36

      425        435,952   

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

      2,355        2,393,646   

City of Chicago Illinois Wastewater Transmission Revenue, RB, Wastewater Transmission, Second Lien, 5.00%, 1/01/42

      1,375        1,332,499   

County of Cook Illinois Community College District No. 508, GO, City College of Chicago:

     

5.50%, 12/01/38

      470        493,350   

5.25%, 12/01/43

      1,000        1,007,740   

Illinois Finance Authority, RB, Carle Foundation, Series A, 6.00%, 8/15/41

      1,555        1,681,235   
Municipal Bonds    Par  
(000)		     Value  

Illinois (concluded)

     

Railsplitter Tobacco Settlement Authority, RB:

     

5.50%, 6/01/23

    $ 940      $ 1,033,633   

6.00%, 6/01/28

      270        289,494   

State of Illinois, GO, Various Purposes:

     

5.50%, 7/01/33

      1,500        1,531,455   

5.50%, 7/01/38

      280        281,019   
    

 

 

  
               20,575,212   

Indiana — 4.2%

     

Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/40

      375        341,595   

Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC), 5.50%, 1/01/38

      4,310        4,545,024   
    

 

 

  
               4,886,619   

Louisiana — 1.9%

     

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

     

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

      375        428,261   

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

      160        182,725   

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:

     

5.50%, 5/15/28

      755        786,454   

5.50%, 5/15/29

      805        831,114   
    

 

 

  
               2,228,554   

Massachusetts — 3.5%

     

Massachusetts HFA, Refunding, HRB, Series C, AMT, 5.35%, 12/01/42

      1,910        1,908,969   

Massachusetts School Building Authority, RB, Senior Series B, 5.00%, 10/15/41

      2,035        2,125,903   
    

 

 

  
               4,034,872   

Michigan — 5.6%

     

City of Detroit Michigan, RB, Water Supply System, Second Lien, Series B (AGM), 6.25%, 7/01/36

      1,800        1,825,128   

City of Detroit Michigan, Refunding RB, Sewage Disposal System Senior Lien:

     

Series B (AGM), 7.50%, 7/01/33

      660        708,523   

 

                
2    BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    OCTOBER 31, 2013   

Schedule of Investments (continued)

   

BlackRock MuniYield Investment Quality Fund (MFT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Michigan (concluded)

     

City of Detroit Michigan, Refunding RB, Sewage Disposal System Senior Lien (concluded):

     

Series C-1 (AGM), 7.00%, 7/01/27

    $ 2,285      $ 2,412,983   

Royal Oak Hospital Finance Authority, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39

      1,265        1,521,643   
    

 

 

  
               6,468,277   

Minnesota — 2.9%

     

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38

      3,000        3,438,690   

Mississippi — 1.5%

     

Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40

      1,190        1,423,157   

Mississippi State University Educational Building Corp., Refunding RB, 5.25%, 8/01/38

      260        279,271   
    

 

 

  
               1,702,428   

Nevada — 4.4%

     

County of Clark Nevada, ARB:

     

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

      2,375        2,455,631   

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

      1,000        1,001,560   

County of Clark Nevada Water Reclamation District, GO, Series A, 5.25%, 7/01/34

      1,500        1,668,420   
    

 

 

  
               5,125,611   

New Jersey — 6.1%

     

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

     

6.00%, 12/15/18 (a)

      330        409,566   

6.00%, 12/15/34

      670        754,319   

New Jersey Health Care Facilities Financing Authority, RB, Virtua Health, Series A (AGC), 5.50%, 7/01/38

      1,400        1,445,220   

New Jersey Transportation Trust Fund Authority, RB:

     

Transportation Program, Series AA, 5.50%, 6/15/39

      1,600        1,712,144   
Municipal Bonds    Par  
(000)		     Value  

New Jersey (concluded)

     

New Jersey Transportation Trust Fund Authority, RB (concluded):

     

Transportation System, Series A, 5.50%, 6/15/41

    $ 1,195      $ 1,257,929   

Rutgers—The State University of New Jersey, Refunding RB:

     

Series J, 5.00%, 5/01/32

      845        916,808   

Series L, 5.00%, 5/01/32

      520        564,190   
    

 

 

  
               7,060,176   

New York — 5.6%

     

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 6/15/40

      1,545        1,654,154   

City of New York New York Transitional Finance Authority Building Aid, BARB, Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/29

      2,000        2,242,840   

Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 166th Series, 5.25%, 7/15/36

      2,500        2,679,250   
    

 

 

  
               6,576,244   

Ohio — 2.1%

     

Ohio Higher Educational Facility Commission, Refunding RB, Kenyon College Project, 5.00%, 7/01/37

      190        193,783   

Ohio State Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1:

     

5.25%, 2/15/30

      585        631,338   

5.25%, 2/15/31

      1,500        1,611,645   
    

 

 

  
               2,436,766   

Pennsylvania — 2.7%

     

Pennsylvania Higher Educational Facilities Authority, RB, Temple University, 1st Series, 5.00%, 4/01/42

      1,000        1,025,510   

Pennsylvania Turnpike Commission, RB, Sub-Series A, 6.00%, 12/01/41

      2,000        2,168,660   
    

 

 

  
               3,194,170   

 

 

                
   BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND   

OCTOBER 31, 2013

    3

Schedule of Investments (continued)

   

BlackRock MuniYield Investment Quality Fund (MFT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

South Carolina — 3.7%

     

County of Charleston South Carolina Airport District, ARB, Series A, AMT:

     

6.00%, 7/01/38

    $ 1,155      $ 1,235,284   

5.50%, 7/01/41

      1,000        1,030,920   

County of Charleston South Carolina Airport District, RB, Series A, AMT, 5.50%, 7/01/26

      1,810        1,999,833   
    

 

 

  
               4,266,037   

Texas — 22.4%

     

Austin Community College District Public Facility Corp., RB, Educational Facilities Project, Round Rock Campus, 5.25%, 8/01/33

      2,250        2,404,935   

City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 3/01/37

      930        1,006,948   

City of Houston Texas Utility System, Refunding RB, Combined 1st Lien, Series A, (AGC):

     

6.00%, 11/15/35

      2,700        3,069,387   

6.00%, 11/15/36

      2,055        2,350,694   

5.38%, 11/15/38

      1,000        1,067,180   

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Christus Health, Series A (AGC), 6.50%, 7/01/37

      1,100        1,205,105   

Dallas-Fort Worth International Airport, ARB, Joint Improvement AMT:

     

Series A, 5.00%, 11/01/38

      875        833,053   

Series H, 5.00%, 11/01/37

      980        940,339   

Dallas-Fort Worth International Airport, Refunding RB, Joint Revenue, Series E, 5.50%, 11/01/27

      2,500        2,729,000   

Frisco Texas ISD, GO, School Building (AGC), 5.50%, 8/15/41

      1,210        1,360,633   

Lower Colorado River Authority, Refunding RB, 5.50%, 5/15/33

      730        783,166   

North Texas Tollway Authority, RB, Special Projects, Series A, 5.50%, 9/01/41

      2,750        2,969,230   

North Texas Tollway Authority, Refunding RB, 1st Tier:

     

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

      1,000        1,083,940   

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

      1,400        1,531,670   
Municipal Bonds    Par  
(000)		     Value  

Texas (concluded)

     

Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38

    $ 420      $ 454,532   

Waco Educational Finance Corp., Refunding RB, Baylor University, 5.00%, 3/01/43

      2,225        2,268,899   
    

 

 

  
               26,058,711   

Virginia — 1.4%

     

City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 1/01/43

      380        398,400   

Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/18 (a)

      1,000        1,266,700   
    

 

 

  
               1,665,100   

Washington — 1.6%

     

City of Seattle Washington Municipal Light & Power, Refunding RB, Series A, 5.25%, 2/01/36

      1,000        1,072,730   

State of Washington, GO, Various Purposes, Series B, 5.25%, 2/01/36

      725        780,086   
    

 

 

  
               1,852,816   
Total Municipal Bonds — 130.9%              152,237,900   
    
   
Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts (b)		  

Alabama — 1.3%

     

City of Mobile Alabama Board of Water and Sewer Commissioners, RB, (NPFGC), 5.00%, 1/01/31

      1,500        1,570,739   

California — 0.9%

     

University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37

      1,000        1,048,938   

District of Columbia — 0.7%

     

District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 10/01/35 (c)

      760        850,116   

Florida — 2.6%

     

County of Hillsborough Florida Aviation Authority, RB, Tempa International Airport, Series A, AMT (AGC), 5.50%, 10/01/38

      2,499        2,661,327   

 

                
4    BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    OCTOBER 31, 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 (b)		    Par  
(000)		     Value  

Florida (concluded)

     

County of Lee Florida Housing Finance Authority, RB, Multi-County Program, Series A-2, AMT (Ginnie Mae), 6.00%, 9/01/40

    $ 315      $ 329,673   
    

 

 

  
               2,991,000   

Kentucky — 1.0%

     

Kentucky State Property & Building Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27

      1,002        1,112,069   

Nevada — 7.8%

     

County of Clark Nevada Water Reclamation District, GO:

     

Limited Tax, 6.00%, 7/01/38

      2,010        2,279,581   

Series B, 5.50%, 7/01/29

      1,994        2,286,558   

Las Vegas Valley Water District, GO, Refunding, Series C, 5.00%, 6/01/28

      4,200        4,537,848   
    

 

 

  
               9,103,987   

New Jersey — 2.3%

     

New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29

      1,610        1,679,650   

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (c)

      1,000        1,051,411   
    

 

 

  
               2,731,061   

New York — 14.7%

     

City of New York New York Transitional Finance Authority, BARB, Series S-3, 5.25%, 1/15/39

      1,000        1,096,100   

Hudson Yards Infrastructure Corp., RB, Senior Series A, 5.75%, 2/15/47 (c)

      1,000        1,059,206   

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (c)

      1,770        1,889,528   

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43

      3,000        3,130,770   
Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts (b)		   

Par  

(000)

     Value  

New York (concluded)

  

New York Municipal Water Finance Authority, Refunding RB, Second General Resolution:

     

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

    $ 2,999      $ 3,164,860   

Water & Sewer System, Series FF-2, 5.50%, 6/15/40

      1,095        1,172,190   

New York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38

      3,250        3,442,887   

New York State Thruway Authority, Refunding RB, General, Series G (AGM), 5.00%, 1/01/32

      2,000        2,084,920   
    

 

 

  
               17,040,461   

Texas — 2.5%

  

City of San Antonio Texas Public Service Board, Refunding RB, Electric and Gas System, Series A, 5.25%, 2/01/31 (c)

      2,609        2,885,266   

Utah — 0.9%

     

City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 8/15/41

      1,005        1,018,131   
Total Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts — 34.7%		              40,351,768   

Total Long-Term Investments

(Cost — $185,157,830) — 165.6%

              192,589,668   
   
Short-Term Securities    Shares         

FFI Institutional Tax-Exempt Fund, 0.03% (d)(e)

      2,301,667        2,301,667   

Total Short-Term Securities

(Cost — $2,301,667) — 2.0%

  

  

     2,301,667   
Total Investments (Cost — $187,459,497*) — 167.6%        194,891,335   
Liabilities in Excess of Other Assets — (0.2)%        (257,159 ) 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (18.8%)

   

     (21,840,947 ) 
VMTP Shares, at Liquidation Value — (48.6%)        (56,500,000 ) 
    

 

 

  
Net Assets Applicable to Common Shares — 100.0%      $ 116,293,229   
    

 

 

  

 

                
   BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    OCTOBER 31, 2013    5

Schedule of Investments (continued)

   

BlackRock MuniYield Investment Quality Fund (MFT)

    

 

*   As of October 31, 2013, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $  165,927,673   
 

 

 

  

Gross unrealized appreciation

   $ 8,765,248   

Gross unrealized depreciation

     (1,635,831 ) 
 

 

 

  

Net unrealized appreciation

   $ 7,129,417   
 

 

 

  

 

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)   Represent bonds transferred to a TOB. In exchange the Fund acquired residual interest certificates. These bonds serve as collateral in a financing transaction.

 

(c)   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 October 1, 2016 to November 15,2019 is $4,647,047.

 

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

 

(e)   Investments in issuers considered to be an affiliate of the Fund during the period ended October 31, 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,

2013

       

Net

Activity

       

Shares Held

at October 31,

2013

        Income  

FFI Institutional Tax-Exempt Fund

        8,162,312           (5,860,645 )         2,301,667         $ 218   

 

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 Guarantee Corp.      
     AGM    Assured Guaranty Municipal Corp.      
     AMT    Alternative Minimum Tax (subject to)      
     ARB    Airport Revenue Bonds      
     BARB    Building Aid Revenue Bonds      
     EDA    Economic Development Authority      
     ERB    Education Revenue Bonds      
     Fannie Mae    Federal National Mortgage Association      
     Freddie Mac    Federal Home Loan Mortgage Corp.      
     GARB    General Airport Revenue Bonds      
     Ginnie Mae    Government National Mortgage Association      
     GO    General Obligation Bonds      
     HFA    Housing Finance Agency      
     HRB    Housing Revenue Bonds      
     IDA    Industrial Development Authority      
     IDB    Industrial Development Board      
     ISD    Independent School District      
     LRB    Lease Revenue Bonds      
     NPFGC    National Public Finance Guarantee Corp.      
     RB    Revenue Bonds      
     S/F    Single Family      

 

                
6    BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    OCTOBER 31, 2013   

Schedule of Investments (continued)

   

BlackRock MuniYield Investment Quality Fund (MFT)

    

 

Ÿ  

Financial futures contracts as of October 31, 2013 were as follows:

 

Contracts

Sold

     Issue   Exchange   Expiration   Notional
Value		     Unrealized
Depreciation		  
  (72 )    10-Year US Treasury Note   Chicago Board of Trade   December 2013   $ 9,169,875      $ (5,703 ) 

 

Ÿ  

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

 

Ÿ  

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

 

Ÿ  

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

 

Ÿ  

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

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.

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, please refer to the Fund’s most recent financial statements as contained in its annual report.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of October 31, 2013:

 

     Level 1        Level 2        Level 3        Total  

Assets:

                 
Investments:                 

Long-Term Investments 1

     —         $ 192,589,668           —         $ 192,589,668   

Short-Term Securities

   $ 2,301,667           —           —           2,301,667   
 

 

 

       

 

 

       

 

 

       

 

 

  

Total

   $ 2,301,667         $ 192,589,668           —         $ 194,891,335   
 

 

 

       

 

 

       

 

 

       

 

 

  

 

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

      

     Level 1        Level 2        Level 3        Total  
Derivative Financial Instruments 2             

Liabilities:

                 

Interest rate contracts

   $ (5,703 )         —           —         $ (5,703 ) 

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

      

 

                
   BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    OCTOBER 31, 2013    7

Schedule of Investments (concluded)

   

BlackRock MuniYield Investment Quality Fund (MFT)

    

 

Certain of the Fund’s assets and/or liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of October 31, 2013, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1        Level 2        Level 3        Total  

Assets:

                 

Cash pledged for financial futures contracts

   $  128,000           —           —         $ 128,000   

Liabilities:

                 

TOB trust certificates

     —         $ (21,834,245 )         —           (21,834,245 ) 

VMTP Shares

     —           (56,500,000 )         —           (56,500,000 ) 
 

 

 

       

 

 

       

 

 

       

 

 

  

Total

   $ 128,000         $ (78,334,245 )         —         $ (78,206,245 ) 
 

 

 

       

 

 

       

 

 

       

 

 

  

There were no transfers between levels during the period ended October 31, 2013.

 

                
8    BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    OCTOBER 31, 2013   

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: December 23, 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: December 23, 2013
By:  

/s/ Neal J. Andrews

  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock MuniYield Investment Quality Fund
Date: December 23, 2013