Fixed Income

MKYHX

High Yield Municipal Fund

Buy MKYHX
  • NAV as of Dec 26, 2024 $9.07
    52 WK: 8.72 - 9.40
  • 1 Day NAV Change as of Dec 26, 2024 -0.01 (-0.11%)
  • NAV Total Return as of Dec 26, 2024 YTD: 5.92%
  • Morningstar Rating

Overview

About this Fund

  • High-Income, Low Volatility Holding
  • Commitment to Credit Research
  • Seeking Attractive, Tax Advantaged Income

Investment Approach

Invests at least 80% of its assets in municipal bonds. Although the Fund may invest in municipal bonds in any rating category, presently, portfolio management intends to invest at least 65% of the Fund's net assets in medium- to low-quality bonds.
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Performance

Performance

  1y 3y 5y 10y
Total Return (%) 18.84 -0.36 2.36 4.12
Benchmark (%) 17.38 1.05 3.07 4.52
BBG Muni 60% HY + 20% Muni BBB + 20% Muni IG ex BBB Custom (USD) 15.20 0.73 2.56 -
Morningstar Category Avg. (%) 15.32 -0.62 1.25 2.98
Morningstar Ranking 15/189 103/183 26/175 -
Morningstar Quartile 1 2 1 1
Lipper Ranking 14/190 106/183 29/177 -
Lipper Quartile 1 3 1 -
  YTD 1m 3m 1y 3y 5y 10y
Total Return (%) 7.39 0.68 2.51 18.84 -1.09 12.38 49.81
Benchmark (%) 7.48 0.90 3.21 17.38 3.18 16.34 55.62
Morningstar Category Avg. (%) 4.87 -1.37 0.66 15.32 -0.87 7.96 37.23
BBG Muni 60% HY + 20% Muni BBB + 20% Muni IG ex BBB Custom (USD) 5.75 0.93 3.05 15.20 2.22 13.46 -
  2019 2020 2021 2022 2023
Total Return (%) 10.05 4.58 9.16 -15.24 7.15
Benchmark (%) 7.26 4.95 7.77 -13.10 9.21
Morningstar Category Avg. (%) 9.12 3.45 5.44 -13.71 6.48
BBG Muni 60% HY + 20% Muni BBB + 20% Muni IG ex BBB Custom (USD) 9.85 4.98 5.85 -11.85 8.56

Performance is shown after deduction of ongoing charges. Any entry and exit charges are excluded from the calculation.

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.

The performance information for periods prior to January 25, 2018, the commencement of operations of the share class, shows the performance of the Fund’s Institutional Shares. The performance of this share class would be substantially similar to Institutional Shares because this share class and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that this share class and Institutional Shares have different expenses.

Effective October 1, 2021, the Bloomberg Municipal High Yield Bond Index and a customized weighted index comprised of 20% Bloomberg Municipal Bond Rated Baa Index / 60% Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index / 20% Bloomberg Municipal Investment Grade ex BBB (the “High Yield Customized Reference Benchmark”) replaced the S&P® Municipal Bond Index and the Custom High Yield Index (a customized benchmark that reflects the returns of the S&P® Customized High Yield Municipal Bond Index for periods prior to January 1, 2013, and the returns of only those bonds in the S&P® Customized High Yield Municipal Bond Index that have maturities greater than five years for periods subsequent to January 1, 2013) as the performance benchmarks against which the Fund measures its performance.

See the Fund’s prospectus for more details.
Click here for Distribution data

Key Facts

Key Facts

Size of Fund (Millions)
as of Dec 26, 2024
$1,591.8 M
Share Class launch date
Jan 25, 2018
Benchmark Index
BBG Municipal High Yield Bond Index (Risk Basis: MUNI)
Morningstar Category
High Yield Muni
CUSIP
09253C710
Open to New Investors
No
Size of Class (Millions)
as of Dec 26, 2024
$307.1 M
Asset Class
Fixed Income
Distribution Frequency
Monthly
Lipper Classification
Hi Yld Muni Debt Funds
Max Offer Price
as of Dec 26, 2024
$9.07
Turnover Percent in the Annual Report
as of Jun 30, 2024
34%

Portfolio Characteristics

Portfolio Characteristics

Number of Holdings
as of Nov 29, 2024
709
Alpha (3y)
as of Sep 30, 2021
-0.24
R-Squared (3y)
as of Sep 30, 2021
78.12
Beta (3y)
as of Sep 30, 2021
2.19
Unsubsidized 30-Day SEC Yield
as of Nov 30, 2024
4.26%
Effective Duration
as of Nov 29, 2024
7.39 yrs
Best 3-Month Return Over the Last 3 Years
3 months ending Jan 31, 2024
11.98%
30 Day SEC Yield
as of Nov 30, 2024
4.28%
Yield to Maturity
as of Nov 29, 2024
4.92%
Fund Standard Deviation (3y)
as of Sep 30, 2021
9.13
Average Coupon
as of Nov 29, 2024
3.47%
Yield to Worst
as of Nov 29, 2024
4.74%
Nominal WAL
as of Nov 29, 2024
10.68 yrs
Worst 3-Month Return Over the Last 3 Years
3 months ending Oct 31, 2022
-10.67%

For the latest month-end Distribution Yield, click here.


This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.

Sustainability Characteristics

Sustainability Characteristics

To be included in MSCI ESG Fund Ratings, 65% (or 50% for bond funds and money market funds) of the fund’s gross weight must come from securities with ESG coverage by MSCI ESG Research (certain cash positions and other asset types deemed not relevant for ESG analysis by MSCI are removed prior to calculating a fund’s gross weight; the absolute values of short positions are included but treated as uncovered), the fund’s holdings date must be less than one year old, and the fund must have at least ten securities. MSCI Ratings are currently unavailable for this fund.

Business Involvement

Business Involvement

Business Involvement metrics can help investors gain a more comprehensive view of specific activities in which a fund may be exposed through its investments.


Business Involvement metrics are not indicative of a fund’s investment objective, and, unless otherwise stated in fund documentation and included within a fund’s investment objective, do not change a fund’s investment objective or constrain the fund’s investable universe. For more information regarding a fund's investment strategy, please see the fund's prospectus.


Review the MSCI methodology behind the Business Involvement metrics, using links below.

MSCI - Controversial Weapons
as of Nov 29, 2024
0.00%
MSCI - Nuclear Weapons
as of Nov 29, 2024
0.00%
MSCI - Civilian Firearms
as of Nov 29, 2024
0.00%
MSCI - Tobacco
as of Nov 29, 2024
0.00%
MSCI - UN Global Compact Violators
as of Nov 29, 2024
0.00%
MSCI - Thermal Coal
as of Nov 29, 2024
0.00%
MSCI - Oil Sands
as of Nov 29, 2024
0.00%
Business Involvement Coverage
as of Nov 29, 2024
5.69%
Percentage of Fund not covered
as of Nov 29, 2024
94.31%
BlackRock business involvement exposures as shown above for Thermal Coal and Oil Sands are calculated and reported for companies that generate more than 5% of revenue from thermal coal or oil sands as defined by MSCI ESG Research. For the exposure to companies that generate any revenue from thermal coal or oil sands (at a 0% revenue threshold), as defined by MSCI ESG Research, it is as follows: Thermal Coal 0.00% and for Oil Sands 0.26%.

Business Involvement metrics are calculated by BlackRock using data from MSCI ESG Research which provides a profile of each company’s specific business involvement. BlackRock leverages this data to provide a summed up view across holdings and translates it to a fund's market value exposure to the listed Business Involvement areas above.


Business Involvement metrics are designed only to identify companies where MSCI has conducted research and identified as having involvement in the covered activity. As a result, it is possible there is additional involvement in these covered activities where MSCI does not have coverage. This information should not be used to produce comprehensive lists of companies without involvement. Business Involvement metrics are only displayed if at least 1% of the fund’s gross weight includes securities covered by MSCI ESG Research.

ESG Integration

ESG Integration

BlackRock considers many investment risks in our processes. In order to seek the best risk-adjusted returns for our clients, we manage material risks and opportunities that could impact portfolios, including financially material Environmental, Social and/or Governance (ESG) data or information, where available. See our Firm Wide ESG Integration Statement for more information on this approach and fund documentation for how these material risks are considered within this product, where applicable.

Fees

Fees

as of current prospectus
Gross Expense Ratio 0.55%
Net Expense Ratio 0.53%

Net Expense Ratio excluding Investment Related Expenses is 0.49%

  • Acquired Fund Fees and Expenses 0.01%
  • Interest expense 0.03%

Ratings

Ratings

Morningstar Rating

4 stars
Overall Morningstar Rating for High Yield Municipal Fund, as of Nov 30, 2024 rated against 184 High Yield Muni Funds based on risk adjusted total return.

Morningstar Medalist Rating

Morningstar Medalist Rating - BRONZE
Morningstar has awarded the Fund a Bronze medal. (Effective Mar 26, 2024)
Analyst-Driven % as of Mar 26, 2024
100.00
Data Coverage % as of Mar 26, 2024
100.00

Lipper Leader

 
 
 
 
Overall Lipper Leaders ratings based on an equal-weighted average of percentile ranks for each measure over 3-, 5-, and 10-year periods (if applicable) and do not take into account the effects of sales charges for these categories (Consistent Return, Preservation, Total Return, Expense, and Tax Efficiency) as of Nov 30, 2024 out of 182, 6,082, 182, 88 and 182 Funds, respectively in Lipper's Hi Yld Muni Debt Funds classification.

Holdings

Holdings

as of Nov 29, 2024
Name Weight (%)
PUERTO RICO COMWLTH 0 11/01/2051 3.18
CALIFORNIA INFRASTRUCTURE & EC 8 01/01/2050 1.95
PORT BEAUMONT TEX NAV DIST DOC 5 01/01/2039 1.39
SOUTHEAST ENERGY AUTH COMMODIT 5 05/01/2053 1.32
TOB 5.25 469487WG3 JAC 144A 1.29
Name Weight (%)
ARKANSAS ST DEV FIN AUTH INDL 4.5 09/01/2049 1.21
OKLAHOMA DEV FIN AUTH REV 7.25 09/01/2051 1.02
BLACK BELT ENERGY GAS DIST ALA 5.25 02/01/2053 0.91
ARKANSAS ST DEV FIN AUTH INDL 4.75 09/01/2049 0.88
TOB 5.45 70879QUL5 PASSFH 144A 0.80
Name Market Value Weight (%) Shares Maturity Coupon (%)
Detailed Holdings and Analytics
References to holdings in “Restructured Puerto Rico Electric” reflects a contingent forward gross commitment on restructured Puerto Rico Electric Power Authority (“PREPA”) bonds. The future purchase of the restructured PREPA bonds is contingent on the PREPA bankruptcy plan being confirmed.

Holdings are subject to change. Fund holdings and allocations shown are unaudited, and may not be representative of current or future investments. The Fund is actively managed and its details, holdings and characteristics will vary. Holdings shown should not be deemed as a recommendation to buy or sell securities. The user relies on this data at its own risk and neither BlackRock nor any other party makes any representations or express or implied warranties (which are expressly disclaimed) nor shall they incur any liability for any errors or omissions in the data.

Exposure Breakdowns

Exposure Breakdowns

as of Nov 29, 2024

% of Market Value

Type Fund Benchmark Net
as of Nov 29, 2024

% of Market Value

Type Fund Benchmark Net
as of Nov 29, 2024

% of Market Value

Type Fund Benchmark Net
as of Nov 29, 2024

% of Market Value

Type Fund Benchmark Net
The fund itself has not been rated by an independent rating agency. Credit quality ratings on underlying securities of the fund are received from S&P, Moody’s and Fitch and converted to the equivalent S&P major rating category. This breakdown is provided by BlackRock and takes the median rating of the three agencies when all three agencies rate a security the lower of the two ratings if only two agencies rate a security and one rating if that is all that is provided. Unrated securities do not necessarily indicate low quality. Below investment-grade is represented by a rating of BB and below. Ratings and portfolio credit quality may change over time.

Notional value represents a fund’s use of derivatives, including but not limited to futures, options, and swaps. This value captures the fund exposures as if the derivative was replaced with the underlying asset and the corresponding financing or lending, such that all exposures sum to the net asset value. For non-derivatives, the market value and the notional value are identical.

Allocations are subject to change.

Portfolio Managers

Portfolio Managers

Phillip Soccio, CFA
Phillip Soccio, CFA
Director, Portfolio Manager, Municipal Mutual Funds

  

Read More

Phillip Soccio, CFA, Director, is a Portfolio Manager for the Municipal Fixed Income business in BlackRock's Portfolio Management Group. Prior to assuming his current role in 2007, Mr. Soccio was a member of BlackRock's Cash Management Group, where he was responsible for managing various tax-exempt money market funds. From 1998 to 2000, he was a member of BlackRock's Account Management Group responsible for institutional client service and marketing support. Mr. Soccio began his career at BlackRock in 1998.

Mr. Soccio earned a BS degree in finance from Wilmington University.

Ryan McDonald, CFA
Ryan McDonald, CFA
Managing Director, Municipal Fixed Income

    

Read More

Ryan McDonald, CFA, Managing Director, is a member of Municipal Fixed Income business in BlackRock's Portfolio Management Group. Mr. McDonald is a Credit Research analyst, covering various sectors in municipal high yield with a particular focus on distressed securities and special situations in the municipal market.

 

Prior to joining BlackRock in 2014, Mr. McDonald was a vice president at Moelis & Co. where his responsibilities included the analysis of distressed municipal bonds and derivative products. His work also encompassed the analysis of monoline insurers and their various municipal/structured finance exposures. Prior to Moelis & Co., Mr. McDonald was a financial analyst at MAEVA Group, LLC, where he was responsible for analyzing state & local municipal pension plans and making restructuring recommendations. Prior to MAEVA, Mr. McDonald spent 8 years at JPMorgan where he worked in both the Public Finance and Structured Credit departments.

 

Mr. McDonald earned a BA degree in finance from the University of Notre Dame in 2004.

Walter O'Connor, CFA
Walter O'Connor, CFA
Managing Director, Co-Head and Portfolio Manager, Municipal Mutual Funds

  

Read More

Walter O'Connor, CFA, Managing Director and Co-Head of the Municipal Funds team within the Municipal Fixed Income business in BlackRock's Portfolio Management Group. He is also a member of the Municipal Management Committee, which oversees all municipal bond portfolio management, research and trading activities.

 

Mr. O'Connor's service with the firm dates back to 1991, including his years with Merrill Lynch Investment Managers (MLIM), which merged with BlackRock in 2006. At MLIM, he was a portfolio manager for municipal bond retail mutual funds. Prior to joining MLIM, Mr. O'Connor was with Prudential Securities, where he was involved in trading, underwriting, and arbitrage for municipal securities and financial futures.

 

Mr. O'Connor earned a BA degree in finance and philosophy from the University of Notre Dame in 1984.

Kevin Maloney, CFA
Kevin Maloney, CFA
Director, Co-Head and Portfolio Manager, Municipal Mutual Funds

  

Read More

Kevin Maloney, CFA, Director and Co-Head of the Municipal Funds team, is a Portfolio Manager within the Municipal Fixed Income business in BlackRock's Portfolio Management Group. He is also a member of the Municipal Management Committee, which oversees all municipal bond portfolio management, research, and trading activities.

 

Mr. Maloney began his career at BlackRock in 2011 as a research analyst on the Municipal Credit Research Team.

 

He graduated from Drexel University in 2011 with a BS degree in Finance.

Portfolio Manager

Literature

Literature

 

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Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares ETF and BlackRock Fund prospectus pages. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.

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