Unassociated Document
BlackRock Municipal Bond Fund,
Inc. | Investor and Institutional Shares
> BlackRock High Yield Municipal
Fund
Fund
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Investor A Shares
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Investor C Shares
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Institutional Shares
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BlackRock High Yield Municipal Fund |
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MDYHX |
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MCYHX |
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MAYHX |
Before you invest, you may want to review the Funds
prospectus, which contains more information about the Fund and its risks. You can find the Funds prospectus (including amendments and
supplements) and other information about the Fund, including the Funds statement of additional information and shareholder report, online at
http://www.blackrock.com/prospectus. You can also get this information at no cost by calling (800) 441-7762 or by sending an e-mail request to
prospectus.request@blackrock.com, or from your financial professional. The Funds prospectus and statement of additional information, both
dated October 26, 2012, as amended and supplemented from time to time, are incorporated by reference into (legally made a part of) this Summary
Prospectus.
This Summary Prospectus contains information you should know
before investing, including information about risks. Please read it before you invest and keep it for future reference.
The Securities and Exchange Commission has not approved or
disapproved these securities or passed upon the adequacy of this Summary Prospectus. Any representation to the contrary is a criminal
offense.
Not FDIC Insured No Bank Guarantee May Lose Value |
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Summary Prospectus
Key Facts about BlackRock High Yield
Municipal Fund
Investment Objective
The investment objective of the BlackRock High Yield Municipal
Fund (the High Yield Fund or the Fund) is to provide shareholders with as high a level of income exempt from Federal income
taxes as is consistent with the investment policies of the Fund.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least
$100,000 in the BlackRock-advised fund complex. More information about these and other discounts is available from your financial professional and in
the Details about the Share Classes section on page 30 of the Funds prospectus and in the Purchase of Shares section on
page II-71 of the Funds statement of additional information.
Shareholder Fees (fees paid directly
from your investment)
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Investor A Shares
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Investor C Shares
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Institutional Shares
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Maximum Sales Charge (Load) Imposed on Purchases (as percentage of offering price) |
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4.25% |
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None |
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None |
Maximum Deferred Sales Charge (Load) (as percentage of offering price or redemption proceeds, whichever
is lower) |
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None1 |
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1.00%2 |
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None |
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
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Investor A Shares
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Investor C Shares
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Institutional Shares
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Management Fee |
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0.55 |
% |
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0.55 |
% |
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0.55 |
% |
Distribution and/or Service (12b-1) Fees |
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0.25 |
% |
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1.00 |
% |
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None |
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Other Expenses |
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0.26 |
% |
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0.27 |
% |
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0.24 |
% |
Interest Expense |
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0.09% |
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0.09% |
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0.09% |
Miscellaneous Other Expenses |
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0.17% |
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0.18% |
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0.15% |
Acquired Fund Fees and Expenses3 |
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0.01 |
% |
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0.01 |
% |
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0.01 |
% |
Total Annual Fund Operating Expenses3 |
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1.07 |
% |
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1.83 |
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0.80 |
% |
1 |
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A contingent deferred sales charge (CDSC) of 1.00% is
assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at the time of
purchase of an investment of $1,000,000 or more. |
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There is no CDSC on Investor C Shares after one year. |
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The Total Annual Fund Operating Expenses do not correlate to the
ratio of expenses to average net assets given in the Funds most recent annual report, which does not include Acquired Fund Fees and
Expenses. |
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Example:
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated
and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would
be:
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1 Year
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3 Years
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5 Years
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10 Years
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Investor A Shares |
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$ |
529 |
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$ |
751 |
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$ |
990 |
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$ |
1,675 |
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Investor C Shares |
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$ |
286 |
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$ |
576 |
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$ |
990 |
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$ |
2,148 |
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Institutional Shares |
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$ |
82 |
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$ |
255 |
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$ |
444 |
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$ |
990 |
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You would pay the following expenses if you did not redeem your
shares:
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1 Year
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3 Years
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5 Years
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10 Years
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Investor C Shares |
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$ |
186 |
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$ |
576 |
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$ |
990 |
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$ |
2,148 |
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Portfolio Turnover:
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or turns over its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in
higher taxes when shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example,
affect the Funds performance. During the most recent fiscal year, the Funds portfolio turnover rate was 17% of the average value of its
portfolio.
Principal Investment Strategies of the Fund
Under normal circumstances, the High Yield Fund seeks to achieve
its objective by investing at least 80% of its assets in municipal bonds. Municipal bonds include debt obligations issued by or on behalf of a
governmental entity or other qualifying issuer that pay interest that is, in the opinion of bond counsel to the issuer, generally excludable from gross
income for Federal income tax purposes (except that the interest may be includable in taxable income for purposes of the Federal alternative minimum
tax). Municipal bonds may be obligations of a variety of issuers, including governmental entities or other qualifying issuers. Issuers may be states,
territories and possessions of the United States and the District of Columbia and their political subdivisions, agencies and instrumentalities.
Municipal bonds also include short-term tax-exempt obligations like municipal notes and variable rate demand obligations.
The High Yield Fund may invest in municipal bonds rated in any
rating category or in unrated municipal bonds. Although the Fund may invest in municipal bonds in any rating category, Fund management presently
intends to invest at least 65% of the Funds net assets in medium- to low-quality bonds as rated by at least one independent rating agency (BBB or
lower by Standard & Poors (S&P) or Fitch Ratings (Fitch) or Baa or lower by Moodys Investors Service, Inc.
(Moodys)), or if unrated, judged to be of comparable quality by BlackRock. Obligations rated below BBB or Baa are commonly known as
junk bonds. It is possible that the Fund could invest up to 100% of its assets in junk bonds.
The Fund may also invest up to 10% of its assets in municipal
bonds that are distressed securities. Distressed securities are securities that are the subject of bankruptcy proceedings or otherwise in default as to
the repayment of principal and/or payment of interest at the time of acquisition or are rated in the lowest rating categories by at least one
independent rating agency (CC or lower by S&P or Fitch or Ca or lower by Moodys), or if unrated, judged to be of comparable quality by
BlackRock. The Fund will usually invest in municipal bonds that have a maturity of five years or longer.
Principal Risks of Investing in the Fund
Risk is inherent in all investing. The value of your investment in
the Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part
or all of your investment in the Fund or your investment may not perform as well as other similar investments. The following is a summary description
of principal risks of investing in the Fund.
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Credit Risk Credit risk refers to the
possibility that the issuer of a security will not be able to make payments of interest and principal when due. Changes in an issuers credit
rating or the markets perception of an issuers creditworthiness may also affect the value of the Funds investment in that
issuer. |
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Distressed Securities Risk Distressed
securities are speculative and involve substantial risks in addition to the risks of investing in junk bonds. The Fund will generally not receive
interest payments on the distressed securities and may incur costs to protect its investment. In addition, distressed securities involve the
substantial risk that principal will not be repaid. These securities may present a substantial risk of default or may be in default at the time of
investment. The Fund may incur additional expenses to the extent it is required to seek recovery upon a default in the payment of principal of or
interest on its portfolio holdings. In any reorganization or liquidation proceeding relating to a portfolio company, the Fund may lose its entire
investment or may be required to accept cash or securities with a value less than its original investment. Distressed securities and any securities
received in an exchange for such securities may be subject to restrictions on resale. |
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Interest Rate Risk Interest rate risk is the
risk that prices of bonds and other fixed-income securities will increase as interest rates fall, and decrease as interest rates rise. |
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Junk Bonds Risk Although junk bonds generally
pay higher rates of interest than investment grade bonds, junk bonds are high risk investments that may cause income and principal losses for the
Fund. |
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Leverage Risk Some transactions may give rise
to a form of economic leverage. These transactions may include, among others, derivatives, and may expose the Fund to greater risk and increase its
costs. The use of leverage may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or
to meet any required asset segregation requirements. Increases and decreases in the value of the Funds portfolio will be magnified when the Fund
uses leverage. |
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Liquidity Risk Liquidity risk exists when
particular investments are difficult to purchase or sell. The Funds investments in illiquid securities may reduce the returns of the Fund because
it may be difficult to sell the illiquid securities at an advantageous time or price. To the extent that the Funds principal investment
strategies involve derivatives or securities with substantial market and/or credit risk, the Fund will tend to have the greatest exposure to liquidity
risk. Liquid investments may become illiquid after purchase by the Fund, particularly during periods of market turmoil. Illiquid investments may be
harder to value, especially in changing markets, and if the Fund is forced to sell these investments to meet redemption requests or for other cash
needs, the Fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the Fund, due to limitations on
illiquid investments, may be subject to purchase and sale restrictions. |
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Market Risk and Selection Risk Market risk is
the risk that one or more markets in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and
unpredictably. Selection risk is the risk that the securities selected by Fund management will underperform the markets, the relevant indices or the
securities selected by other funds with similar investment objectives and investment strategies. This means you may lose money. |
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Municipal Securities Risks Municipal
securities risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers of municipal
securities, and the possibility of future legislative changes which could affect the market for and value of municipal securities. These risks
include: |
General Obligation Bonds Risks
Timely payments depend on the issuers credit quality, ability to raise tax revenues and ability to maintain an adequate tax
base.
Revenue Bonds Risks These
payments depend on the money earned by the particular facility or class of facilities, or the amount of revenues derived from another
source.
Private Activity Bonds Risks
Municipalities and other public authorities issue private activity bonds to finance development of industrial facilities for use by a private
enterprise. The private enterprise pays the principal and interest on the bond, and the issuer does not pledge its faith, credit and taxing power for
repayment.
Moral Obligation Bonds Risks
Moral obligation bonds are generally issued by special purpose public authorities of a state or municipality. If the issuer is unable to meet
its obligations, repayment of these bonds becomes a moral commitment, but not a legal obligation, of the state or municipality.
Municipal Notes Risks
Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the anticipated proceeds, the notes may not be fully repaid and
the Fund may lose money.
Municipal Lease Obligations Risks
In a municipal lease obligation, the issuer agrees to make payments when due on the lease obligation. Although the issuer does not pledge its
unlimited taxing power for payment of the lease obligation, the lease obligation is secured by the leased property.
Tax-Exempt Status Risk The
Fund and its investment manager will rely on the opinion of issuers bond counsel and, in the case of derivative securities, sponsors
counsel, on the tax-exempt status of interest on municipal bonds and payments under derivative securities. Neither the Fund nor its investment manager
will independently review the bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its
shareholders to substantial tax liabilities.
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Prepayment and Extension Risk When interest
rates fall, an issuer may redeem a security with call features by repaying it early, and the Fund may have to invest the proceeds in securities with
lower yields. When interest rates rise, certain obligations will be paid off by the issuer more slowly than anticipated, causing the value of these
securities to fall. |
Performance Information
The information shows you how the Funds performance has
varied year by year and provides some indication of the risks of investing in the Fund. The table compares the Funds performance to that of the
S&P Municipal Bond Index and the S&P Customized High Yield Municipal Bond Index, which are relevant to the Fund because they have
characteristics similar to the Funds investment strategies. As with all such investments, past performance (before and after taxes) is not an
indication of future results. Sales charges are not reflected in the bar chart. If they were, returns would be less than those shown. However, the
table includes all applicable fees and sales charges. If the Funds investment manager and its affiliates had not waived or reimbursed certain
Fund expenses during these periods, the Funds returns would have been lower. Updated information on the Funds performance can be obtained
by visiting http://www.blackrock.com/funds or can be obtained by phone at 800-882-0052.
Institutional Shares
ANNUAL TOTAL RETURNS
BlackRock
High Yield Municipal Fund
As of 12/31
During the period shown in the bar chart, the highest return for a
quarter was 16.53% (quarter ended September 30, 2009) and the lowest return for a quarter was 19.35% (quarter ended December 31, 2008). The
year-to-date return as of September 30, 2012 was 13.30%.
As of 12/31/11
Average Annual Total Returns
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1 Year
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5 Years
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Since Inception
(August 1, 2006)
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BlackRock High Yield Municipal Fund Institutional |
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Return Before Taxes |
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12.13 |
% |
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2.35 |
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2.84% |
Return After Taxes on Distributions |
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12.13 |
% |
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2.33 |
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2.82% |
Return After Taxes on Distributions and Sale of Shares |
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9.91 |
% |
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2.70 |
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3.11% |
BlackRock High Yield Municipal Fund Investor A
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Return Before Taxes |
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7.09 |
% |
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1.19 |
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1.71% |
BlackRock High Yield Municipal Fund Investor C
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Return Before Taxes |
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9.98 |
% |
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1.32 |
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1.80% |
S&P Municipal Bond Index (Reflects no deduction for fees, expenses or
taxes) |
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10.62 |
% |
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4.86 |
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5.12% |
S&P Customized High Yield Municipal Bond Index (Reflects no deduction for fees, expenses or
taxes) |
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10.13 |
% |
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2.43 |
% |
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3.05% |
After-tax returns are calculated using the historical highest
individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the
investors tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares
through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Shares only,
and the after-tax returns for Investor A and Investor C Shares will vary.
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Investment Manager
The Funds investment manager is BlackRock Advisors, LLC
(BlackRock). The Funds sub-adviser is BlackRock Investment Management, LLC. Where applicable, the use of the term BlackRock also
refers to the Funds sub-adviser.
Portfolio Managers
Name
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Portfolio Manager of the Fund
Since
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Title
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Walter OConnor, CFA |
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2006 |
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Managing Director of BlackRock, Inc. |
Theodore R. Jaeckel, CFA |
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2006 |
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Managing Director of BlackRock, Inc. |
Purchase and Sale of Fund Shares
You may purchase or redeem shares of the Fund each day the New
York Stock Exchange (NYSE) is open. To purchase or sell shares you should contact your financial intermediary or financial professional,
or, if you hold your shares through the Fund, you should contact the Fund by phone at (800) 441-7762, by mail (c/o BlackRock Funds, P.O. Box 9819,
Providence, Rhode Island 02940-8019), or by the Internet at www.blackrock.com/funds. The Funds initial and subsequent investment minimums
generally are as follows, although the Fund may reduce or waive the minimums in some cases:
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Investor A and Investor C
Shares
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Institutional Shares
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Minimum Initial Investment |
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$1,000 for all accounts except: · $250 for certain fee-based programs.
· $100 for retirement plans. · $50, if establishing Automatic Investment Plan (AIP). |
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$2 million for institutions and individuals. Institutional Shares are available to clients of
registered investment advisors who have $250,000 invested in the Fund. |
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Minimum Additional Investment |
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$50 for all accounts except certain retirement plans and payroll deduction programs may have a
lower minimum. |
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No subsequent minimum. |
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Tax Information
The Funds dividends and distributions may be subject to
Federal income taxes and may be taxed as ordinary income or capital gains, unless you are a tax-exempt investor or are investing through a retirement
plan, in which case you may be subject to Federal income tax upon withdrawal from such tax deferred arrangements. The Fund intends to make
distributions most of which will be excludable from gross income for Federal income tax purposes.
Payments to Broker/Dealers and Other Financial
Intermediaries
If you purchase shares of the Fund through a broker-dealer or
other financial intermediary, the Fund and BlackRock Investments, LLC, the Funds distributor, or its affiliates may pay the intermediary for the
sale of Fund shares and other services. These payments may create a conflict of interest by influencing the broker-dealer or other financial
intermediary and your individual financial professional to recommend the Fund over another investment. Ask your individual financial professional or
visit your financial intermediarys website for more information.
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INVESTMENT COMPANY ACT FILE #811-02688 © BlackRock Advisors, LLC SPRO-MBFHY-1012 |
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