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: 07/31/2016

Date of reporting period: 10/31/2015

Item 1 – Schedule of Investments

Schedule of Investments October 31, 2015 (Unaudited)

   

BlackRock MuniYield Investment Quality Fund (MFT)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)		     Value  

Alabama — 4.4%

  

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

     

6.00%, 6/01/19

    $ 2,985      $ 3,498,838   

6.13%, 6/01/19

      1,500        1,764,795   

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

      350        386,487   
    

 

 

  
               5,650,120   

California — 22.2%

  

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

      1,960        2,181,206   

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

      1,150        1,359,151   

City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT:

     

5.50%, 5/01/28

      720        850,205   

5.25%, 5/01/33

      560        634,838   

City & County of San Francisco California Airports Commission, Refunding RB, Series A, AMT, 5.00%, 5/01/44

      745        808,876   

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

     

5.50%, 3/01/30

      1,600        1,803,376   

6.25%, 3/01/34

      1,250        1,472,850   

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

      1,400        1,546,958   

Kern Community College District, GO, Safety, Repair & Improvement, Election of 2002, Series C, 5.50%, 11/01/33

      970        1,147,452   

Los Angeles Community College District California, GO, Election of 2001, Series A (NPFGC),
5.00%, 8/01/17 (a)

      2,780        2,998,591   

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

      1,000        1,178,110   

Riverside County Public Financing Authority, RB, Capital Facilities Project, 5.25%, 11/01/40

      2,000        2,317,040   
Municipal Bonds    Par  
(000)		     Value  

California (continued)

  

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

    $ 1,020      $ 1,158,190   

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

      3,450        3,998,757   

State of California Public Works Board, LRB, Various Capital Projects, Series I, 5.50%, 11/01/31

      1,000        1,205,900   

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

      490        572,423   

Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/40

      370        435,116   

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

      2,235        2,549,464   
    

 

 

  
               28,218,503   

Colorado — 2.5%

  

Board of Governors of Colorado State University System, RB, Series A, 5.00%, 3/01/45

      500        558,425   

City & County of Denver Colorado Airport System, ARB, Series A, AMT:

     

5.50%, 11/15/28

      500        582,795   

5.50%, 11/15/30

      225        259,538   

5.50%, 11/15/31

      270        310,211   

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

      1,300        1,454,310   
    

 

 

  
               3,165,279   

Connecticut — 1.7%

  

Connecticut State Health & Educational Facility Authority, Refunding RB, Quinnipiac University, Series L, 5.00%, 7/01/45

      1,935        2,116,406   

Florida — 13.4%

  

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

      270        315,436   
 

 

                
   BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    OCTOBER 31, 2015    1

Schedule of Investments (continued)

   

BlackRock MuniYield Investment Quality Fund (MFT)

 

Municipal Bonds    Par  
(000)		     Value  

Florida (continued)

  

County of Broward Florida Airport System, RB, Series A, AMT, 5.00%, 10/01/45 (b)

    $ 575      $ 624,927   

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

      1,170        1,343,675   

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

      1,000        1,111,870   

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

      145        146,125   

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

      90        91,644   

County of Miami-Dade Educational Facilities Authority, Refunding RB, University of Miami-Dade, Series A, 5.00%, 4/01/45

      1,395        1,517,244   

County of Miami-Dade Florida, RB, Seaport:

     

Series A, 6.00%, 10/01/38

      1,840        2,200,695   

Series A, 5.50%, 10/01/42

      2,125        2,435,654   

Series B, AMT, 6.00%, 10/01/26

      590        722,904   

Series B, AMT, 6.00%, 10/01/27

      775        949,112   

Series B, AMT, 6.25%, 10/01/38

      310        377,124   

Series B, AMT, 6.00%, 10/01/42

      410        480,659   

County of Miami-Dade Florida, Refunding RB:

     

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

      735        900,566   

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

      500        583,750   

County of Miami-Dade Florida Aviation, Refunding ARB, Series A, AMT, 5.00%, 10/01/31

      2,165        2,377,776   
Municipal Bonds    Par  
(000)		     Value  

Florida (continued)

  

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

    $ 710      $ 823,394   
    

 

 

  
               17,002,555   

Hawaii — 1.0%

  

State of Hawaii, Department of Transportation, COP, AMT:

     

5.25%, 8/01/25

      250        293,808   

5.25%, 8/01/26

      810        947,870   
    

 

 

  
               1,241,678   

Illinois — 19.8%

  

City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien:

     

Series A, 5.75%, 1/01/39

      770        895,895   

Series C, 6.50%, 1/01/41

      3,680        4,431,125   

City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, 5.00%, 1/01/41

      1,010        1,061,763   

City of Chicago Illinois Transit Authority, RB:

     

Federal Transit Administration, Section 5309, Series A (AGC), 6.00%, 12/01/18 (a)

      1,400        1,616,426   

Sales Tax Receipts, 5.25%, 12/01/36

      1,000        1,067,450   

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

      3,000        3,175,590   

City of Chicago Illinois Wastewater Transmission, RB, 2nd Lien, 5.00%, 1/01/42

      1,375        1,428,102   

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

     

5.50%, 12/01/38

      1,500        1,693,860   

5.25%, 12/01/43

      2,700        2,976,210   

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

      1,555        1,822,895   

Railsplitter Tobacco Settlement Authority, RB:

     

5.50%, 6/01/23

      940        1,096,698   

6.00%, 6/01/28

      270        320,201   

State of Illinois, GO:

     

5.25%, 2/01/31

      585        621,972   

5.25%, 2/01/32

      1,000        1,058,930   

5.50%, 7/01/33

      1,500        1,610,370   
 

 

                
2    BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    OCTOBER 31, 2015   

Schedule of Investments (continued)

   

BlackRock MuniYield Investment Quality Fund (MFT)

 

Municipal Bonds    Par  
(000)		     Value  

Illinois (continued)

  

State of Illinois, GO (continued):

     

5.50%, 7/01/38

    $ 280      $ 295,187   
    

 

 

  
               25,172,674   

Indiana — 4.1%

  

Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges, Series A, AMT, 5.00%, 7/01/40

      375        399,154   

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

      4,310        4,871,636   
    

 

 

  
               5,270,790   

Louisiana — 2.1%

  

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

     

Series A-1, 6.00%, 1/01/23

      375        426,158   

Series A-2, 6.00%, 1/01/23

      160        181,190   

Lake Charles Harbor & Terminal District, RB, Series B, AMT, 5.50%, 1/01/29

      1,000        1,132,640   

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 5/15/29

      805        884,751   
    

 

 

  
               2,624,739   

Massachusetts — 1.6%

  

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

      1,910        1,974,653   

Michigan — 2.8%

  

City of Detroit Michigan Water Supply System, RB, 2nd Lien, Series B (AGM), 6.25%, 7/01/36

      1,800        1,984,626   

Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital,
Series V, 8.25%, 9/01/18 (a)

      1,265        1,524,211   
    

 

 

  
               3,508,837   

Minnesota — 2.7%

  

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services:

     

Series A (AGC), 6.50%, 11/15/38

      2,540        2,886,634   
Municipal Bonds    Par  
(000)		     Value  

Minnesota (continued)

  

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services (continued):

     

Series B (AGC), 6.50%, 11/15/18 (a)

    $ 460      $ 536,024   
    

 

 

  
               3,422,658   

Mississippi — 1.4%

  

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

      1,190        1,515,679   

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

      260        294,988   
    

 

 

  
               1,810,667   

Nevada — 4.3%

  

County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A (AGM), 5.25%, 7/01/39

      2,375        2,658,979   

County of Clark Nevada, GO, Limited Tax, 5.00%, 6/01/38

      1,000        1,084,620   

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

      1,500        1,692,345   
    

 

 

  
               5,435,944   

New Jersey — 5.8%

  

New Jersey EDA, RB:

     

School Facilities Construction (AGC), 6.00%, 12/15/18 (a)

      980        1,131,890   

School Facilities Construction (AGC), 6.00%, 12/15/34

      20        22,695   

The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43

      1,000        1,066,240   

The Goethals Bridge Replacement Project, Private Activity Bond, AMT (AGM), 5.00%, 1/01/31

      530        583,662   

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

      1,400        1,542,716   

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

     

Series A, 5.50%, 6/15/41

      1,195        1,267,752   
 

 

                
   BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    OCTOBER 31, 2015    3

Schedule of Investments (continued)

   

BlackRock MuniYield Investment Quality Fund (MFT)

 

Municipal Bonds    Par  
(000)		     Value  

New Jersey (continued)

     

New Jersey Transportation Trust Fund Authority, RB, Transportation System (continued):

     

Series AA, 5.50%, 6/15/39

    $ 1,600      $ 1,703,280   
    

 

 

  
               7,318,235   

New York — 5.4%

     

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

      1,545        1,759,400   

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

      2,000        2,271,540   

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

      2,500        2,853,050   
    

 

 

  
               6,883,990   

Ohio — 1.4%

     

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 2/15/31

      1,500        1,727,985   

Pennsylvania — 1.7%

     

Pennsylvania Turnpike Commission, RB, Sub-Series A, 6.00%, 12/01/16 (a)

      2,000        2,122,680   

South Carolina — 7.7%

     

County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38

      1,470        1,687,678   

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

     

5.50%, 7/01/26

      1,810        2,124,687   

6.00%, 7/01/38

      1,155        1,333,413   

5.50%, 7/01/41

      1,000        1,119,890   

South Carolina Ports Authority, RB, AMT, 5.25%, 7/01/50 (b)

      750        820,687   
Municipal Bonds    Par  
(000)		     Value  

South Carolina (continued)

     

South Carolina State Public Service Authority, Refunding RB, Series C, 5.00%, 12/01/46

    $ 2,535      $ 2,759,778   
    

 

 

  
               9,846,133   

Texas — 20.2%

     

Austin Community College District Public Facility Corp., RB, Educational Facilities Project, Round Rock Campus, 5.25%, 8/01/18 (a)

      2,250        2,519,302   

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

      930        1,055,690   

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

      1,210        1,397,732   

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

     

6.00%, 11/15/35

      2,700        3,154,680   

6.00%, 11/15/36

      2,055        2,401,062   

5.38%, 11/15/38

      1,000        1,131,860   

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

     

6.50%, 1/01/19 (a)

      265        309,902   

6.50%, 7/01/37

      835        942,940   

Dallas-Fort Worth International Airport, ARB, Joint Improvement, Series H, AMT, 5.00%, 11/01/37

      980        1,052,932   

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

      2,500        2,934,575   

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

      730        850,209   

Mesquite Independent School District, GO, Series E, 5.00%, 8/15/41 (b)

      365        418,859   

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

      2,750        3,228,170   

North Texas Tollway Authority, Refunding RB:

     

1st Tier (AGM), 6.00%, 1/01/43

      1,000        1,181,470   

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

      1,400        1,568,210   

Series B, 5.00%, 1/01/40

      1,000        1,091,030   
 

 

                
4    BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    OCTOBER 31, 2015   

Schedule of Investments (continued)

   

BlackRock MuniYield Investment Quality Fund (MFT)

 

Municipal Bonds    Par  
(000)		     Value  

Texas (continued)

     

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

    $ 420      $ 477,036   
    

 

 

  
               25,715,659   

Virginia — 1.2%

     

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

      380        417,780   

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

      1,000        1,171,780   
    

 

 

  
               1,589,560   

Washington — 1.5%

     

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

      1,000        1,125,620   

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

      725        841,421   
    

 

 

  
               1,967,041   
Total Municipal Bonds — 128.9%        163,786,786   
    
                  

Municipal Bonds Transferred to

Tender Option Bond Trusts (c)

               

District of Columbia — 0.7%

     

District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 10/01/18 (a)(d)

      760        871,477   

Florida — 2.2%

  

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

      2,499        2,744,128   

Kentucky — 0.9%

  

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

      1,002        1,124,671   

Nevada — 7.4%

  

County of Clark Nevada Water Reclamation District, GO:

     

Limited Tax, 6.00%, 7/01/18 (a)

      2,010        2,284,908   

Series B, 5.50%, 7/01/29

      1,994        2,280,473   

Municipal Bonds Transferred to

Tender Option Bond Trusts (c)

    Par  
(000)		     Value  

Nevada (continued)

     

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

    $ 4,200      $ 4,869,228   
    

 

 

  
               9,434,609   

New Jersey — 2.1%

     

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

      1,610        1,700,999   

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

      1,000        1,037,088   
    

 

 

  
               2,738,087   

New York — 12.6%

     

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution:

     

Series BB, 5.25%, 6/15/44

      2,999        3,462,160   

Series FF-2, 5.50%, 6/15/40

      1,095        1,246,781   

City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39

      1,000        1,110,597   

Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (d)

      1,000        1,137,317   

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

      3,000        3,439,956   

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

      1,770        2,038,278   

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

      3,250        3,648,418   
    

 

 

  
               16,083,507   

Texas — 2.3%

     

City of San Antonio Texas Public Service Board, Refunding RB, Series A, 5.25%, 2/01/31 (d)

      2,609        2,912,819   

Utah — 0.9%

     

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

      1,005        1,091,982   

 

 

 

                
   BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    OCTOBER 31, 2015    5

Schedule of Investments (continued)

   

BlackRock MuniYield Investment Quality Fund (MFT)

 

             Value  

Total Municipal Bonds Transferred to

Tender Option Bond Trusts — 29.1%

            $ 37,001,280   
Total Long-Term Investments
(Cost — $181,710,279) — 158.0%		              200,788,066   
    
                  
Short-Term Securities    Shares         

FFI Institutional Tax-Exempt Fund, 0.02% (e)(f)

      1,696,118        1,696,118   

Total Short-Term Securities

(Cost — $1,696,118) — 1.3%

              1,696,118   
           Value  
Total Investments
(Cost — $183,406,397*) — 159.3%		   $ 202,484,184   
Other Assets Less Liabilities — 0.5%     467,870   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (15.3)%

     (19,378,751 ) 
VMTP Shares, at Liquidation Value — (44.5)%     (56,500,000 ) 
    

 

 

  
Net Assets Applicable to Common Shares — 100.0%   $ 127,073,303   
    

 

 

  

 

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

 

Tax cost

   $ 164,260,765   
 

 

 

  

Gross unrealized appreciation

   $ 19,121,192   

Gross unrealized depreciation

     (271,601 ) 
 

 

 

  

Net unrealized appreciation

   $ 18,849,591   
 

 

 

  
 
Notes to Schedule of Investments

 

(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)   When-issued security.

 

(c)   Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing.

 

(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 or in the event of a default on the security. In the case of a shortfall or default, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from February 1, 2017 to November 15, 2019, is $4,627,654.

 

(e)   During the period ended October 31, 2015, investments in issuers considered to be an affiliate of the Fund 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,
2015

        Net
Activity		       

Shares Held

at October 31,
2015

        Income  

FFI Institutional Tax-Exempt Fund

        2,437,027           (740,909 )         1,696,118         $ 52   

 

(f)   Represents the current yield as of period end.

 

Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
BARB    Building Aid Revenue Bonds
COP    Certificates of Participation
EDA    Economic Development Authority
ERB    Education Revenue Bonds
GARB    General Airport Revenue Bonds
GO    General Obligation Bonds
HFA    Housing Finance Agency

 

                
6    BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    OCTOBER 31, 2015   

Schedule of Investments (continued)

   

BlackRock MuniYield Investment Quality Fund (MFT)

 

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

 

Derivative Financial Instruments Outstanding as of Period End

Financial Futures Contracts

 

Contracts
Short		     Issue   Expiration   Notional
Value		   Unrealized
Appreciation		  
  (11)      5-Year U.S. Treasury Note   December 2015   $1,317,508   $ 15,799   
  (13)      10-Year U.S. Treasury Note   December 2015   $1,659,937     26,281   
  (4)      Long U.S. Treasury Bond   December 2015   $   625,750     13,523   
  (1)      U.S. Ultra Bond   December 2015   $   159,750     1,655   
  Total            $ 57,258   
       

 

 

  

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative 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 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 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. The significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments are typically categorized as level 3.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value 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 investments and derivative financial instruments 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, refer to the Fund’smost recent financial statements as contained in its annual report.

As of period end, the following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy

 

     Level 1        Level 2        Level 3      Total  

Assets:

                 
Investments:                 

Long-Term Investments1

     —         $ 200,788,066         —      $ 200,788,066   

Short-Term Securities

   $ 1,696,118           —         —        1,696,118   
 

 

 

  

Total

   $ 1,696,118         $ 200,788,066         —      $ 202,484,184   
 

 

 

  

1    See above Schedule of Investments for values in each state or political sub-division.

       

 

                
   BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    OCTOBER 31, 2015    7

Schedule of Investments (concluded)

   

BlackRock MuniYield Investment Quality Fund (MFT)

 

 

     Level 1        Level 2        Level 3        Total  
Derivative Financial Instruments1                 
Assets:                 

Interest rate contracts

   $ 57,258           —           —         $ 57,258   

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

       

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting 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  
Assets:   

Cash pledged for financial futures contracts

   $ 45,550           —           —         $ 45,550   
Liabilities:                 

TOB Trust Certificates

     —         $ (19,373,828 )         —           (19,373,828 ) 

VMTP Shares

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

 

 

  

Total

   $ 45,550         $ (75,873,828 )         —         $ (75,828,278 ) 
 

 

 

  

During the period ended October 31, 2015, there were no transfers between levels.

  

 

                
8    BLACKROCK MUNIYIELD INVESTMENT QUALITY FUND    OCTOBER 31, 2015   

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 22, 2015

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 22, 2015
By:   /s/ Neal J. Andrews                        
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of BlackRock MuniYield Investment Quality Fund
Date:   December 22, 2015