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BLACKROCK MULTI STATE MUNICIPAL SERIES TRUST 0.0122 0.0235 0.0277 0.0694 0.0098 0.0708 0.0022 0.0552 -0.0836 0.0683 0.0122 0.0694 0.0103 0.0714 0.0027 0.0557 -0.0841 0.0698 0.0240 0.0282 0.0110 0.0684 0.0097 0.0688 0.0012 0.0551 -0.0853 0.0681 0.0226 0.0257 N-1A 2026-10-28 Fund Overview Key Facts About BlackRock New York Municipal Opportunities Fund Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of the BlackRock New York Municipal Opportunities Fund (the “Fund”) is to provide </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders with income exempt from Federal income tax and New York State and New York City personal income </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">taxes.</span></div> Fees and Expenses of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This table describes the fees and expenses that you may pay if you buy, hold and sell Investor and Institutional shares </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of the Fund. Amounts in the table are rounded to the nearest basis point, which in some cases may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">0.00.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">You </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">may pay other fees, such as brokerage commissions and other fees to your financial professional or selected </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">securities dealer, broker, investment adviser, service provider or industry professional (including BlackRock </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">Advisors, LLC (</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">BlackRock</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">) and its affiliates) (each a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">Financial Intermediary</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">), which are not reflected in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">table and example below.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> 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 fund complex advised by BlackRock or its affiliates. More information about these </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and other discounts is available from your Financial Intermediary and in the “Details About the Share Classes” and the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“Intermediary-Defined Sales Charge Waiver Policies” sections on pages </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">28</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">A-1</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, respectively, of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">prospectus and in the “Purchase of Shares” section on page </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">II-97</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> of Part II of the Fund’s Statement of Additional </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Information.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> 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 fund complex advised by BlackRock or its affiliates. 100000 Shareholder Fees (fees paid directly from your investment) 0.0425 0 0 0 0.0100 0 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0047 0.0047 0.0047 0.0025 0.0100 0 0.0029 0.0031 0.0031 0.0010 0.0012 0.0012 0.0019 0.0019 0.0019 0.0001 0.0001 0.0001 0.0102 0.0179 0.0079 -0.0007 -0.0009 -0.0009 0.0095 0.0170 0.0070 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 as part of an investment of $250,000 or more. June 30, 2028 The Total Annual Fund Operating Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which includes extraordinary expenses and does not include Acquired Fund Fees and Expenses. Example: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or lower, based on these assumptions your costs would be:</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> 518 729 958 1614 273 555 961 1895 72 243 430 970 You would pay the following expenses if you did not redeem your shares:  173 555 961 1895 Portfolio Turnover: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">28</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">% of the average value of its portfolio.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 0.28 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Under normal circumstances, the Fund will invest at least 80% of its net assets, plus the amount of any borrowing for investment purposes, in investment grade New York municipal bonds and derivatives that provide investment exposure to such securities or to one or more market risk factors associated with such securities. New York municipal bonds may be obligations of a variety of issuers including governmental entities in New York and issuers located in Puerto Rico, the U.S. Virgin Islands and Guam. The interest on these obligations may not be exempt from the Federal Alternative Minimum Tax.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Municipal bonds also include short-term tax-exempt obligations, like municipal notes, variable rate demand </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligations, private activity bonds and insured municipal bonds. The Fund may invest in both fixed rate and variable </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rate obligations.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest in bonds of any maturity. The Fund’s average weighted duration may vary significantly from time to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">time depending on the views of Fund management.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund’s investment process begins with bottom-up, fundamental analysis focused on sector and security selection, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and then incorporates a macroeconomic framework for evaluating and managing risk, including geographic, technical </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and economic risk. The Fund’s investment process is generally expected to place greater emphasis on duration </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">management and capital structure compared to that of a more traditional municipal fixed-income fund. When selecting </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments for the Fund, Fund management considers a variety of factors, including the credit quality of issuers and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the yield and duration of the obligations.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund is permitted to engage in transactions in derivatives, such as options or futures on a security or an index of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities (including, but not limited to, interest rate futures contracts, financial futures contracts and options </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">thereon), for hedging purposes (including anticipatory hedges) or to seek to enhance returns. The Fund may also invest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in other derivatives, such as swap agreements, including credit default swap agreements. Derivatives are financial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments whose value is derived from another security or an index. Derivatives may allow the Fund to increase or </span></div> <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">decrease its risk exposure more quickly and efficiently than other types of instruments. The Fund may also invest in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">indexed and inverse floating rate obligations.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may leverage its assets through the use of proceeds received through tender option bond transactions. In a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tender option bond transaction, the Fund transfers municipal bonds or other municipal securities into a special </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">purpose entity (a “TOB Trust”). A TOB Trust typically issues two classes of beneficial interests: short-term floating rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interests (“TOB Floaters”), which are sold to third-party investors, and residual inverse floating rate interests (“TOB </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Residuals”), which are generally issued to the Fund. The Fund may invest in TOB Residuals and may also invest in TOB </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Floaters. The Fund will look through to the underlying municipal bond held by a TOB Trust for purposes of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">80% policy.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest up to 20% of its assets in securities that are not New York municipal bonds (including, but not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">limited to, taxable municipal bonds, U.S. Treasury and Government agency issues, and investment grade corporate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bonds).</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may also invest up to 20% of its assets in non-investment grade municipal bonds (high yield or junk bonds), </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">including debt securities that at the time of purchase are in default or that the Fund’s management team believes will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be in default.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may also buy when-issued securities and participate in delayed delivery transactions.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may engage in active and frequent trading of portfolio securities to achieve its primary investment strategies.</span></div> Under normal circumstances, the Fund will invest at least 80% of its net assets, plus the amount of any borrowing for investment purposes, in investment grade New York municipal bonds and derivatives that provide investment exposure to such securities or to one or more market risk factors associated with such securities. New York municipal bonds may be obligations of a variety of issuers including governmental entities in New York and issuers located in Puerto Rico, the U.S. Virgin Islands and Guam. The interest on these obligations may not be exempt from the Federal Alternative Minimum Tax.Municipal bonds also include short-term tax-exempt obligations, like municipal notes, variable rate demand obligations, private activity bonds and insured municipal bonds. The Fund may invest in both fixed rate and variable rate obligations. <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund’s investment process begins with bottom-up, fundamental analysis focused on sector and security selection, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and then incorporates a macroeconomic framework for evaluating and managing risk, including geographic, technical </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and economic risk. The Fund’s investment process is generally expected to place greater emphasis on duration </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">management and capital structure compared to that of a more traditional municipal fixed-income fund. When selecting </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments for the Fund, Fund management considers a variety of factors, including the credit quality of issuers and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the yield and duration of the obligations.</span></div> You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Debt Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Debt securities, such as bonds, involve risks, such as credit risk, interest rate risk, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extension risk, and prepayment risk, each of which are described in further detail below:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Credit Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">able to make payments of interest and principal when due. Changes in an issuer’s credit rating or the market’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Interest Rate Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The market value of bonds and other fixed-income securities changes in response to interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rate changes and other factors. Interest rate risk is the risk that prices of bonds and other fixed-income securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">will increase as interest rates fall and decrease as interest rates rise.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may be subject to a greater risk of rising interest rates during a period of low interest rates. For example, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors being </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The magnitude </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of these fluctuations in the market price of bonds and other fixed-income securities is generally greater for those </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset value. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">management.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Since rates on certain floating rate debt securities typically reset only periodically, changes in prevailing interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the net asset </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value of the Fund to the extent that it invests in floating rate debt securities.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These basic principles of bond prices also apply to U.S. Government securities. A security backed by the “full faith </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and credit” of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its current market price. Just like other fixed-income securities, government-guaranteed securities will fluctuate in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value when interest rates change.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">scale, which may increase redemptions from funds that hold large amounts of fixed-income securities. Heavy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">hurt the Fund’s performance.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Extension Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — When interest rates rise, certain obligations will be paid off by the obligor more slowly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated, causing the value of these obligations to fall.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Prepayment Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — When interest rates fall, certain obligations will be paid off by the obligor more quickly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Municipal Securities Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Municipal securities risks include the ability of the issuer to repay the obligation, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">relative lack of information about certain issuers of municipal securities, and the possibility of future legislative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and federal governments upon which the issuers may be relying for funding may also impact municipal securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These risks include:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">General Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Timely payments depend on the issuer’s credit quality, ability to raise tax </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">revenues and ability to maintain an adequate tax base.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Revenue Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> These payments depend on the money earned by the particular facility or class of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">facilities, or the amount of revenues derived from another source.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Private Activity Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipalities and other public authorities issue private activity bonds to finance </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest on the bond, and the issuer does not pledge its full faith, credit and taxing power for repayment.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Moral Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Moral obligation bonds are generally issued by special purpose public authorities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commitment, but not a legal obligation, of the state or municipality.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Notes Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Lease Obligations Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> In a municipal lease obligation, the issuer agrees to make payments when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligation, the lease obligation is secured by the leased property.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Tax-Exempt Status Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and payments under derivative securities. Neither the Fund nor its investment manager will independently review the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders to substantial tax liabilities.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">State Specific Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> The Fund will invest significantly in municipal securities issued by or on behalf of the State of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">New York and The City of New York, their political subdivisions, authorities and agencies. As a result, the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance will be affected by the fiscal and economic health of that state, the city and their municipalities.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Derivatives Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s use of derivatives may increase its costs, reduce the Fund’s returns and/or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increase volatility. Derivatives involve significant risks, including:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Leverage Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s use of derivatives can magnify the Fund’s gains and losses. Relatively small market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">movements may result in large changes in the value of a derivatives position and can result in losses that greatly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exceed the amount originally invested.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Market Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some derivatives are more sensitive to interest rate changes and market price fluctuations than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other securities. The Fund could also suffer losses related to its derivatives positions as a result of unanticipated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market movements, which losses are potentially unlimited. Finally, BlackRock may not be able to predict correctly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the direction of securities prices, interest rates and other economic factors, which could cause the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">derivatives positions to lose value.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Counterparty Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Derivatives are also subject to counterparty risk, which is the risk that the other party in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transaction will be unable or unwilling to fulfill its contractual obligation, and the related risks of having concentrated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure to such a counterparty.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Illiquidity Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">difficult for the Fund to value accurately.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Operational Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The use of derivatives includes the risk of potential operational issues, including documentation </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues, settlement issues, systems failures, inadequate controls and human error.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Legal Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">enforceability of a contract.</span></div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Volatility and Correlation Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Volatility is defined as the characteristic of a security, an index or a market to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuations in their values may not correlate with the overall securities markets.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Valuation Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Valuation for derivatives may not be readily available in the market. Valuation may be more difficult </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in times of market turmoil since many investors and market makers may be reluctant to purchase complex </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments or quote prices for them.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Hedging Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Hedges are sometimes subject to imperfect matching between the derivative and the underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may result in certain adverse tax consequences.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Tax Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Certain aspects of the tax treatment of derivative instruments, including swap agreements and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commodity-linked derivative instruments, are currently unclear and may be affected by changes in legislation, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulations or other legally binding authority. Such treatment may be less favorable than that given to a direct </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">realizes from its investments.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">High Yield Bonds Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Although junk bonds generally pay higher rates of interest than investment grade bonds, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">junk bonds are high risk investments that are considered speculative and may cause income and principal losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the Fund.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Illiquid Investments Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund may not acquire any illiquid investment if, immediately after the acquisition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">calendar days or less without the sale or disposition significantly changing the market value of the investment. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Liquid investments may become illiquid after purchase by the Fund, particularly during periods of market turmoil. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">There can be no assurance that a security or instrument that is deemed to be liquid when purchased will continue </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to be liquid for as long as it is held by the Fund, and any security or instrument held by the Fund may be deemed an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">illiquid investment pursuant to the Fund’s liquidity risk management program. The Fund’s illiquid investments may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reduce the returns of the Fund because it may be difficult to sell the illiquid investments at an advantageous time </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or price. In addition, if the Fund is limited in its ability to dispose of illiquid investments during periods when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders are redeeming or selling their shares or the Fund’s net assets otherwise shrink, the Fund will need to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">dispose of liquid securities to meet redemption requests and illiquid securities will become a larger portion of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund’s holdings. An investment may be illiquid due to, among other things, the reduced number and capacity of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">traditional market participants to make a market in fixed-income securities or the lack of an active trading market. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">To the extent that the Fund’s principal investment strategies involve derivatives or securities with substantial market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and/or credit risk, the Fund will tend to have greater exposure to the risks associated with illiquid investments. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Illiquid investments may be harder to value, especially in changing markets, and if the Fund is forced to sell these </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments to meet redemption requests or for other cash needs, the Fund may suffer a loss. This may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">magnified in a rising interest rate environment or other circumstances where investor redemptions or sales of Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares may be higher than normal. In addition, when there is illiquidity in the market for certain securities, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund, due to limitations on illiquid investments, may be subject to purchase and sale restrictions.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Indexed and Inverse Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Indexed and inverse securities provide a potential return based on a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">particular index of value or interest rates. The Fund’s return on these securities will be subject to risk with respect </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to the value of the particular index. These securities are subject to leverage risk and correlation risk. Certain </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">indexed and inverse securities have greater sensitivity to changes in interest rates or index levels than other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities, and the Fund’s investment in such instruments may decline significantly in value if interest rates or index </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">levels move in a way Fund management does not anticipate.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Insurance Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Insurance guarantees that interest payments on a municipal security will be made on time and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that the principal will be repaid when the security matures. However, insurance does not protect against losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">caused by declines in a municipal security’s value. The Fund cannot be certain that any insurance company will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">make the payments it guarantees. If a municipal security’s insurer fails to fulfill its obligations or loses its credit </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rating, the value of the security could drop.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Leverage Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some transactions may give rise to a form of economic leverage. These transactions may include, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to meet the applicable requirements of the Investment Company Act of 1940, as amended (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Company Act</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">), and the rules thereunder. Increases and decreases in the value of the Fund’s portfolio will be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">magnified when the Fund uses leverage.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Market Risk and Selection Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">go down in value, including the possibility that the markets will go down sharply and unpredictably. An investor could </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">lose money over short periods due to fluctuation in the Fund’s net asset value in response to short-term market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">movements and over longer periods during market downturns. Securities or other investments held by the Fund may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underperform the markets, the relevant indices or benchmarks, or the securities selected by other funds with </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">similar investment objectives and investment strategies, or may otherwise fail to perform as intended. The value of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">a security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The success of a Fund’s activities could be affected by interest rates, availability of credit, inflation rates, economic </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">uncertainty, changes in laws, tariffs and trade barriers, supply chain disruptions, economic sanctions, currency </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exchange controls, and local, regional or global events such as war, acts of terrorism, natural and environmental </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">disasters, the spread of infectious illness or other public health issues, recessions, or other events.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Recent policy initiatives undertaken by the U.S. government have the potential to impact international relations, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">trade agreements and the overall regulatory environment in ways that could create uncertainty and instability in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">domestic and global markets, and could adversely affect the investment performance of the Fund. In particular, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">actions taken by the U.S. government in respect of international trade relations could lead to trade wars, increased </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">costs for imported goods, disruptions in supply chains, reduced foreign investment, and instability in regions where </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund invests.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Municipal Securities Concentration Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;"> —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> From time to time the Fund may invest a substantial amount of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">assets in municipal securities whose interest is paid solely from revenues of similar projects. If the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">concentrates its investments in this manner, it assumes the legal and economic risks relating to such projects and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">this may have a significant impact on the Fund’s investment performance.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Operational and Technology Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cybersecurity incidents, and the use of artificial intelligence and machine learning (“AI”), which may result in losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the Fund and its shareholders or may impair the Fund’s operations. While the Fund’s service providers are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">required to have appropriate operational, information security and cybersecurity risk management policies and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">procedures, their methods of risk management may differ from those of the Fund. Operational and technology risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may cause the Fund’s investments in such issuers to lose value.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Taxability Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Investments in taxable municipal bonds, U.S. Treasury and Government agency issues, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment grade corporate bonds and taxable money market securities as well as some of the derivatives and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other instruments discussed herein will cause the Fund to have taxable investment income. The Fund may also </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">realize capital gains on the sale of its municipal bonds (and other securities and derivatives it holds). These capital </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">gains will be taxable regardless of whether they are derived from a sale of municipal bonds. Fund investments may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">also cause the Fund to recognize taxable ordinary income from market discount. The Fund will report distributions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">from taxable investment income, from market discount and from realized capital gains as taxable to Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders. In order for the Fund to be eligible to report distributions of tax-exempt interest income from tax-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exempt or municipal securities as tax-exempt income to Fund shareholders, at least half of the Fund’s total assets </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">must be invested in tax-exempt securities as of the end of each calendar quarter. If the Fund did not maintain that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">level of investment with respect to tax-exempt securities, the Fund would lose the ability to report distributions of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tax-exempt interest income as tax-exempt income to Fund shareholders.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund expects to use derivatives for hedging purposes or to seek to enhance returns, among other things. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Federal income tax treatment of a derivative may not be as favorable as a direct investment in an underlying asset. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Derivatives may produce taxable income and taxable realized gain. Derivatives may adversely affect the timing, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">character and amount of income the Fund realizes from its investments. As a result, a larger portion of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">distributions may be treated as ordinary income rather than as tax-exempt income or as capital gains. In addition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain derivatives are subject to mark-to-market or straddle provisions of the Internal Revenue Code of 1986, as </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">amended (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Internal Revenue Code</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">). If such provisions are applicable, there could be an increase (or decrease) </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the amount of taxable dividends paid by the Fund. Payments received by the Fund from swap agreements will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">generally produce taxable income, while payments made by the Fund on swap agreements will be allocated against </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">both tax-exempt and taxable gross income, decreasing the Fund’s distributable net tax-exempt income. In addition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the tax treatment of certain derivatives, such as swaps, is unsettled and may be subject to future legislation, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulation or administrative pronouncements issued by the Internal Revenue Service.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Tender Option Bonds and Related Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s participation in tender option bond transactions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may reduce the Fund’s returns and/or increase volatility. Investments in tender option bond transactions expose the </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund to counterparty risk and leverage risk. An investment in a tender option bond transaction typically will involve </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">greater risk than an investment in a municipal fixed rate security, including the risk of loss of principal. Distributions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">on TOB Residuals will bear an inverse relationship to short-term municipal security interest rates. Distributions on </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">TOB Residuals paid to the Fund will be reduced or, in the extreme, eliminated as short-term municipal interest rates </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rise and will increase when short-term municipal interest rates fall. TOB Residuals generally will underperform the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market for fixed rate municipal securities in a rising interest rate environment. The Fund may invest in TOB Trusts on </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">either a non-recourse or recourse basis. If the Fund invests in a TOB Trust on a recourse basis, it could suffer </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">losses in excess of the value of its TOB Residuals.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">U.S. Government Obligations Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Certain securities in which the Fund may invest, including securities issued by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain U.S. Government agencies and U.S. Government sponsored enterprises, are not guaranteed by the U.S. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Government or supported by the full faith and credit of the United States. In addition, circumstances could arise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that could prevent the timely payment of interest or principal on U.S. Government obligations, such as reaching the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">legislative “debt ceiling.” Such non-payment could result in losses to the Fund and substantial negative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">consequences for the U.S. economy and the global financial system.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Variable Rate Demand Obligations Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Variable rate demand obligations are floating rate securities that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">combine an interest in a long term municipal bond with a right to demand payment before maturity from a bank or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other financial institution. If the bank or financial institution is unable to pay, the Fund may lose money.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">When-Issued and Delayed Delivery Securities and Forward Commitments Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— When-issued and delayed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">delivery securities and forward commitments involve the risk that the security the Fund buys will lose value prior to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its delivery. There also is the risk that the security will not be issued or that the other party to the transaction will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">not meet its obligation. If this occurs, the Fund may lose both the investment opportunity for the assets it set aside </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to pay for the security and any gain in the security’s price.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> Performance Information <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. The table compares the Fund’s performance to that of the Bloomberg Municipal Bond Index and a customized weighted index comprised of 85% Bloomberg Municipal Bond: New York Exempt Total Return Index Unhedged USD/10% Bloomberg Municipal Bond: New York High Yield (non-Investment Grade) Total Return Index/5% Bloomberg Municipal Index New York Taxable Bonds Total Return Index Value (the “Customized Reference Benchmark”). To the extent that dividends and distributions have been paid by the Fund, the performance information for the Fund in the chart and table assumes reinvestment of the dividends and distributions. 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 Fund’s investment manager and its affiliates had not waived or reimbursed certain Fund expenses during these periods, the Fund’s returns would have been lower. Updated information on the Fund’s performance, including its current net asset value, can be obtained by visiting www.blackrock.com or can be obtained by phone at (800) 882-0052.</span></div> The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. The table compares the Fund’s performance to that of the Bloomberg Municipal Bond Index and a customized weighted index comprised of 85% Bloomberg Municipal Bond: New York Exempt Total Return Index Unhedged USD/10% Bloomberg Municipal Bond: New York High Yield (non-Investment Grade) Total Return Index/5% Bloomberg Municipal Index New York Taxable Bonds Total Return Index Value (the “Customized Reference Benchmark”). 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. www.blackrock.com (800) 882-0052 Institutional Shares ANNUAL TOTAL RETURNS BlackRock New York Municipal Opportunities Fund As of 12/31 <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">During the ten-year period shown in the bar chart, the highest return for a quarter was 8.13% (quarter ended </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">December 31, 2023) and the lowest return for a quarter was -6.14% (quarter ended March 31, 2020). The year-to-date return</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> as of September 30, 2026 was -3.21%.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.0813 2023-12-31 lowest return -0.0614 2020-03-31 year-to-date return 2026-09-30 -0.0321 For the periods ended 12/31/25Average Annual Total Returns 0.0277 0.0167 0.0246 0.0277 0.0161 0.0237 0.0314 0.0193 0.0252 -0.0194 0.0053 0.0176 0.0076 0.0066 0.0160 0.0425 0.0080 0.0234 0.0375 0.0090 <div style="margin-top: 12pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">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 investor’s 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.</span></div> 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 investor’s 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. Fund OverviewKey Facts About BlackRock New York Municipal Opportunities Fund Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of the BlackRock New York Municipal Opportunities Fund (the “Fund”) is to provide </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders with income exempt from Federal income tax and New York State and New York City personal income </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">taxes.</span></div> Fees and Expenses of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This table describes the fees and expenses that you may pay if you buy, hold and sell Class K Shares of the Fund. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Amounts in the table are rounded to the nearest basis point, which in some cases may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">0.00.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">You may pay other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">fees, such as brokerage commissions and other fees to your financial professional or selected securities dealer, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">broker, investment adviser, service provider or industry professional (including BlackRock Advisors, LLC </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">(</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">BlackRock</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">) and its affiliates) (each a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">Financial Intermediary</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">), which are not reflected in the table and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">example below.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0047 0 0.0024 0.0005 0.0019 0.0001 0.0072 -0.0007 0.0065 June 30, 2028 The Total Annual Fund Operating Expenses does not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which includes extraordinary expenses and does not include Acquired Fund Fees and Expenses. Example: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or lower, based on these assumptions your costs would be:</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> 66 223 394 888 Portfolio Turnover: <div style="line-height: 10.695pt; margin-top: 0.0pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">28</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">% of the average value of its portfolio.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 0.28 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Under normal circumstances, the Fund will invest at least 80% of its net assets, plus the amount of any borrowing for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment purposes, in investment grade New York municipal bonds and derivatives that provide investment exposure </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to such securities or to one or more market risk factors associated with such securities. New York municipal bonds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may be obligations of a variety of issuers including governmental entities in New York and issuers located in Puerto </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Rico, the U.S. Virgin Islands and Guam. The interest on these obligations may not be exempt from the Federal </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Alternative Minimum Tax.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Municipal bonds also include short-term tax-exempt obligations, like municipal notes, variable rate demand </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligations, private activity bonds and insured municipal bonds. The Fund may invest in both fixed rate and variable </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rate obligations.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest in bonds of any maturity. The Fund’s average weighted duration may vary significantly from time to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">time depending on the views of Fund management.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund’s investment process begins with bottom-up, fundamental analysis focused on sector and security selection, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and then incorporates a macroeconomic framework for evaluating and managing risk, including geographic, technical </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and economic risk. The Fund’s investment process is generally expected to place greater emphasis on duration </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">management and capital structure compared to that of a more traditional municipal fixed-income fund. When selecting </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments for the Fund, Fund management considers a variety of factors, including the credit quality of issuers and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the yield and duration of the obligations.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund is permitted to engage in transactions in derivatives, such as options or futures on a security or an index of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities (including, but not limited to, interest rate futures contracts, financial futures contracts and options </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">thereon), for hedging purposes (including anticipatory hedges) or to seek to enhance returns. The Fund may also invest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in other derivatives, such as swap agreements, including credit default swap agreements. Derivatives are financial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments whose value is derived from another security or an index. Derivatives may allow the Fund to increase or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">decrease its risk exposure more quickly and efficiently than other types of instruments. The Fund may also invest in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">indexed and inverse floating rate obligations.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may leverage its assets through the use of proceeds received through tender option bond transactions. In a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tender option bond transaction, the Fund transfers municipal bonds or other municipal securities into a special </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">purpose entity (a “TOB Trust”). A TOB Trust typically issues two classes of beneficial interests: short-term floating rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interests (“TOB Floaters”), which are sold to third-party investors, and residual inverse floating rate interests (“TOB </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Residuals”), which are generally issued to the Fund. The Fund may invest in TOB Residuals and may also invest in TOB </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Floaters. The Fund will look through to the underlying municipal bond held by a TOB Trust for purposes of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">80% policy.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest up to 20% of its assets in securities that are not New York municipal bonds (including, but not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">limited to, taxable municipal bonds, U.S. Treasury and Government agency issues, and investment grade corporate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bonds).</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may also invest up to 20% of its assets in non-investment grade municipal bonds (high yield or junk bonds), </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">including debt securities that at the time of purchase are in default or that the Fund’s management team believes will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be in default.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may also buy when-issued securities and participate in delayed delivery transactions.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may engage in active and frequent trading of portfolio securities to achieve its primary investment strategies.</span></div> Under normal circumstances, the Fund will invest at least 80% of its net assets, plus the amount of any borrowing for investment purposes, in investment grade New York municipal bonds and derivatives that provide investment exposure to such securities or to one or more market risk factors associated with such securities. New York municipal bonds may be obligations of a variety of issuers including governmental entities in New York and issuers located in Puerto Rico, the U.S. Virgin Islands and Guam. The interest on these obligations may not be exempt from the Federal Alternative Minimum Tax.Municipal bonds also include short-term tax-exempt obligations, like municipal notes, variable rate demand obligations, private activity bonds and insured municipal bonds. The Fund may invest in both fixed rate and variable rate obligations. <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund’s investment process begins with bottom-up, fundamental analysis focused on sector and security selection, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and then incorporates a macroeconomic framework for evaluating and managing risk, including geographic, technical </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and economic risk. The Fund’s investment process is generally expected to place greater emphasis on duration </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">management and capital structure compared to that of a more traditional municipal fixed-income fund. When selecting </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments for the Fund, Fund management considers a variety of factors, including the credit quality of issuers and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the yield and duration of the obligations.</span></div> You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Debt Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Debt securities, such as bonds, involve risks, such as credit risk, interest rate risk, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extension risk, and prepayment risk, each of which are described in further detail below:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Credit Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">able to make payments of interest and principal when due. Changes in an issuer’s credit rating or the market’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Interest Rate Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The market value of bonds and other fixed-income securities changes in response to interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rate changes and other factors. Interest rate risk is the risk that prices of bonds and other fixed-income securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">will increase as interest rates fall and decrease as interest rates rise.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may be subject to a greater risk of rising interest rates during a period of low interest rates. For example, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors being </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The magnitude </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of these fluctuations in the market price of bonds and other fixed-income securities is generally greater for those </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset value. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">management.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Since rates on certain floating rate debt securities typically reset only periodically, changes in prevailing interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the net asset </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value of the Fund to the extent that it invests in floating rate debt securities.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These basic principles of bond prices also apply to U.S. Government securities. A security backed by the “full faith </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and credit” of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its current market price. Just like other fixed-income securities, government-guaranteed securities will fluctuate in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value when interest rates change.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">scale, which may increase redemptions from funds that hold large amounts of fixed-income securities. Heavy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">hurt the Fund’s performance.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Extension Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — When interest rates rise, certain obligations will be paid off by the obligor more slowly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated, causing the value of these obligations to fall.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Prepayment Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — When interest rates fall, certain obligations will be paid off by the obligor more quickly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Municipal Securities Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Municipal securities risks include the ability of the issuer to repay the obligation, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">relative lack of information about certain issuers of municipal securities, and the possibility of future legislative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and federal governments upon which the issuers may be relying for funding may also impact municipal securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These risks include:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">General Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Timely payments depend on the issuer’s credit quality, ability to raise tax </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">revenues and ability to maintain an adequate tax base.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Revenue Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> These payments depend on the money earned by the particular facility or class of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">facilities, or the amount of revenues derived from another source.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Private Activity Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipalities and other public authorities issue private activity bonds to finance </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest on the bond, and the issuer does not pledge its full faith, credit and taxing power for repayment.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Moral Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Moral obligation bonds are generally issued by special purpose public authorities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commitment, but not a legal obligation, of the state or municipality.</span></div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Notes Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Lease Obligations Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> In a municipal lease obligation, the issuer agrees to make payments when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligation, the lease obligation is secured by the leased property.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Tax-Exempt Status Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and payments under derivative securities. Neither the Fund nor its investment manager will independently review the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders to substantial tax liabilities.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">State Specific Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> The Fund will invest significantly in municipal securities issued by or on behalf of the State of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">New York and The City of New York, their political subdivisions, authorities and agencies. As a result, the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance will be affected by the fiscal and economic health of that state, the city and their municipalities.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Derivatives Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s use of derivatives may increase its costs, reduce the Fund’s returns and/or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increase volatility. Derivatives involve significant risks, including:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Leverage Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s use of derivatives can magnify the Fund’s gains and losses. Relatively small market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">movements may result in large changes in the value of a derivatives position and can result in losses that greatly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exceed the amount originally invested.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Market Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some derivatives are more sensitive to interest rate changes and market price fluctuations than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other securities. The Fund could also suffer losses related to its derivatives positions as a result of unanticipated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market movements, which losses are potentially unlimited. Finally, BlackRock may not be able to predict correctly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the direction of securities prices, interest rates and other economic factors, which could cause the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">derivatives positions to lose value.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Counterparty Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Derivatives are also subject to counterparty risk, which is the risk that the other party in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transaction will be unable or unwilling to fulfill its contractual obligation, and the related risks of having concentrated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure to such a counterparty.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Illiquidity Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">difficult for the Fund to value accurately.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Operational Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The use of derivatives includes the risk of potential operational issues, including documentation </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues, settlement issues, systems failures, inadequate controls and human error.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Legal Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">enforceability of a contract.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Volatility and Correlation Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Volatility is defined as the characteristic of a security, an index or a market to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuations in their values may not correlate with the overall securities markets.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Valuation Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Valuation for derivatives may not be readily available in the market. Valuation may be more difficult </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in times of market turmoil since many investors and market makers may be reluctant to purchase complex </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments or quote prices for them.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Hedging Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Hedges are sometimes subject to imperfect matching between the derivative and the underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may result in certain adverse tax consequences.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Tax Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Certain aspects of the tax treatment of derivative instruments, including swap agreements and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commodity-linked derivative instruments, are currently unclear and may be affected by changes in legislation, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulations or other legally binding authority. Such treatment may be less favorable than that given to a direct </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">realizes from its investments.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">High Yield Bonds Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Although junk bonds generally pay higher rates of interest than investment grade bonds, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">junk bonds are high risk investments that are considered speculative and may cause income and principal losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the Fund.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Illiquid Investments Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund may not acquire any illiquid investment if, immediately after the acquisition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">calendar days or less without the sale or disposition significantly changing the market value of the investment. </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Liquid investments may become illiquid after purchase by the Fund, particularly during periods of market turmoil. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">There can be no assurance that a security or instrument that is deemed to be liquid when purchased will continue </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to be liquid for as long as it is held by the Fund, and any security or instrument held by the Fund may be deemed an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">illiquid investment pursuant to the Fund’s liquidity risk management program. The Fund’s illiquid investments may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reduce the returns of the Fund because it may be difficult to sell the illiquid investments at an advantageous time </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or price. In addition, if the Fund is limited in its ability to dispose of illiquid investments during periods when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders are redeeming or selling their shares or the Fund’s net assets otherwise shrink, the Fund will need to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">dispose of liquid securities to meet redemption requests and illiquid securities will become a larger portion of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund’s holdings. An investment may be illiquid due to, among other things, the reduced number and capacity of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">traditional market participants to make a market in fixed-income securities or the lack of an active trading market. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">To the extent that the Fund’s principal investment strategies involve derivatives or securities with substantial market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and/or credit risk, the Fund will tend to have greater exposure to the risks associated with illiquid investments. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Illiquid investments may be harder to value, especially in changing markets, and if the Fund is forced to sell these </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments to meet redemption requests or for other cash needs, the Fund may suffer a loss. This may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">magnified in a rising interest rate environment or other circumstances where investor redemptions or sales of Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares may be higher than normal. In addition, when there is illiquidity in the market for certain securities, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund, due to limitations on illiquid investments, may be subject to purchase and sale restrictions.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Indexed and Inverse Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Indexed and inverse securities provide a potential return based on a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">particular index of value or interest rates. The Fund’s return on these securities will be subject to risk with respect </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to the value of the particular index. These securities are subject to leverage risk and correlation risk. Certain </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">indexed and inverse securities have greater sensitivity to changes in interest rates or index levels than other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities, and the Fund’s investment in such instruments may decline significantly in value if interest rates or index </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">levels move in a way Fund management does not anticipate.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Insurance Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Insurance guarantees that interest payments on a municipal security will be made on time and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that the principal will be repaid when the security matures. However, insurance does not protect against losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">caused by declines in a municipal security’s value. The Fund cannot be certain that any insurance company will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">make the payments it guarantees. If a municipal security’s insurer fails to fulfill its obligations or loses its credit </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rating, the value of the security could drop.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Leverage Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some transactions may give rise to a form of economic leverage. These transactions may include, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to meet the applicable requirements of the Investment Company Act of 1940, as amended (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Company Act</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">), and the rules thereunder. Increases and decreases in the value of the Fund’s portfolio will be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">magnified when the Fund uses leverage.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Market Risk and Selection Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">go down in value, including the possibility that the markets will go down sharply and unpredictably. An investor could </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">lose money over short periods due to fluctuation in the Fund’s net asset value in response to short-term market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">movements and over longer periods during market downturns. Securities or other investments held by the Fund may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underperform the markets, the relevant indices or benchmarks, or the securities selected by other funds with </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">similar investment objectives and investment strategies, or may otherwise fail to perform as intended. The value of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">a security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The success of a Fund’s activities could be affected by interest rates, availability of credit, inflation rates, economic </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">uncertainty, changes in laws, tariffs and trade barriers, supply chain disruptions, economic sanctions, currency </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exchange controls, and local, regional or global events such as war, acts of terrorism, natural and environmental </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">disasters, the spread of infectious illness or other public health issues, recessions, or other events.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Recent policy initiatives undertaken by the U.S. government have the potential to impact international relations, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">trade agreements and the overall regulatory environment in ways that could create uncertainty and instability in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">domestic and global markets, and could adversely affect the investment performance of the Fund. In particular, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">actions taken by the U.S. government in respect of international trade relations could lead to trade wars, increased </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">costs for imported goods, disruptions in supply chains, reduced foreign investment, and instability in regions where </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund invests.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Municipal Securities Concentration Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;"> —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> From time to time the Fund may invest a substantial amount of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">assets in municipal securities whose interest is paid solely from revenues of similar projects. If the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">concentrates its investments in this manner, it assumes the legal and economic risks relating to such projects and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">this may have a significant impact on the Fund’s investment performance.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Operational and Technology Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cybersecurity incidents, and the use of artificial intelligence and machine learning (“AI”), which may result in losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the Fund and its shareholders or may impair the Fund’s operations. While the Fund’s service providers are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">required to have appropriate operational, information security and cybersecurity risk management policies and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">procedures, their methods of risk management may differ from those of the Fund. Operational and technology risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may cause the Fund’s investments in such issuers to lose value.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Taxability Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Investments in taxable municipal bonds, U.S. Treasury and Government agency issues, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment grade corporate bonds and taxable money market securities as well as some of the derivatives and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other instruments discussed herein will cause the Fund to have taxable investment income. The Fund may also </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">realize capital gains on the sale of its municipal bonds (and other securities and derivatives it holds). These capital </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">gains will be taxable regardless of whether they are derived from a sale of municipal bonds. Fund investments may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">also cause the Fund to recognize taxable ordinary income from market discount. The Fund will report distributions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">from taxable investment income, from market discount and from realized capital gains as taxable to Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders. In order for the Fund to be eligible to report distributions of tax-exempt interest income from tax-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exempt or municipal securities as tax-exempt income to Fund shareholders, at least half of the Fund’s total assets </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">must be invested in tax-exempt securities as of the end of each calendar quarter. If the Fund did not maintain that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">level of investment with respect to tax-exempt securities, the Fund would lose the ability to report distributions of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tax-exempt interest income as tax-exempt income to Fund shareholders.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund expects to use derivatives for hedging purposes or to seek to enhance returns, among other things. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Federal income tax treatment of a derivative may not be as favorable as a direct investment in an underlying asset. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Derivatives may produce taxable income and taxable realized gain. Derivatives may adversely affect the timing, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">character and amount of income the Fund realizes from its investments. As a result, a larger portion of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">distributions may be treated as ordinary income rather than as tax-exempt income or as capital gains. In addition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain derivatives are subject to mark-to-market or straddle provisions of the Internal Revenue Code of 1986, as </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">amended (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Internal Revenue Code</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">). If such provisions are applicable, there could be an increase (or decrease) </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the amount of taxable dividends paid by the Fund. Payments received by the Fund from swap agreements will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">generally produce taxable income, while payments made by the Fund on swap agreements will be allocated against </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">both tax-exempt and taxable gross income, decreasing the Fund’s distributable net tax-exempt income. In addition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the tax treatment of certain derivatives, such as swaps, is unsettled and may be subject to future legislation, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulation or administrative pronouncements issued by the Internal Revenue Service.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Tender Option Bonds and Related Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s participation in tender option bond transactions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may reduce the Fund’s returns and/or increase volatility. Investments in tender option bond transactions expose the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund to counterparty risk and leverage risk. An investment in a tender option bond transaction typically will involve </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">greater risk than an investment in a municipal fixed rate security, including the risk of loss of principal. Distributions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">on TOB Residuals will bear an inverse relationship to short-term municipal security interest rates. Distributions on </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">TOB Residuals paid to the Fund will be reduced or, in the extreme, eliminated as short-term municipal interest rates </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rise and will increase when short-term municipal interest rates fall. TOB Residuals generally will underperform the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market for fixed rate municipal securities in a rising interest rate environment. The Fund may invest in TOB Trusts on </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">either a non-recourse or recourse basis. If the Fund invests in a TOB Trust on a recourse basis, it could suffer </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">losses in excess of the value of its TOB Residuals.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">U.S. Government Obligations Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Certain securities in which the Fund may invest, including securities issued by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain U.S. Government agencies and U.S. Government sponsored enterprises, are not guaranteed by the U.S. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Government or supported by the full faith and credit of the United States. In addition, circumstances could arise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that could prevent the timely payment of interest or principal on U.S. Government obligations, such as reaching the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">legislative “debt ceiling.” Such non-payment could result in losses to the Fund and substantial negative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">consequences for the U.S. economy and the global financial system.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Variable Rate Demand Obligations Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Variable rate demand obligations are floating rate securities that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">combine an interest in a long term municipal bond with a right to demand payment before maturity from a bank or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other financial institution. If the bank or financial institution is unable to pay, the Fund may lose money.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">When-Issued and Delayed Delivery Securities and Forward Commitments Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— When-issued and delayed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">delivery securities and forward commitments involve the risk that the security the Fund buys will lose value prior to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its delivery. There also is the risk that the security will not be issued or that the other party to the transaction will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">not meet its obligation. If this occurs, the Fund may lose both the investment opportunity for the assets it set aside </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to pay for the security and any gain in the security’s price.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> Performance Information <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The information shows you how the Fund’s performance has varied year by year and provides some indication of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks of investing in the Fund. The table compares the Fund’s performance to that of the Bloomberg Municipal Bond </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index and a customized weighted index comprised of 85% Bloomberg Municipal Bond: New York Exempt Total Return </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index Unhedged USD/10% Bloomberg Municipal Bond: New York High Yield (non-Investment Grade) Total Return Index/5%</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Bloomberg Municipal Index New York Taxable Bonds Total Return Index Value (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Customized Reference </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Benchmark</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">). The performance information for periods prior to January 25, 2018, the commencement of operations of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Class K Shares, shows the performance of the Fund’s Institutional Shares. The performance of the Fund’s Class K </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Shares would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Institutional Shares because Class K Shares have lower expenses than the Institutional Shares. To the extent that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">dividends and distributions have been paid by the Fund, the performance information for the Fund in the chart and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">table assumes reinvestment of the dividends and distributions. As with all such investments, past performance </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(before and after taxes) is not an indication of future results. The table includes all applicable fees. If the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment manager and its affiliates had not waived or reimbursed certain Fund expenses during these periods, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund’s returns would have been lower. Updated information on the Fund’s performance, including its current net asset </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value, can be obtained by visiting www.blackrock.com or can be obtained by phone at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(800) 882-0052</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">.</span></div> The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. As with all such investments, past performance (before and after taxes) is not an indication of future results. www.blackrock.com (800) 882-0052 Class K Shares ANNUAL TOTAL RETURNS BlackRock New York Municipal Opportunities Fund As of 12/31 <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">During the ten-year period shown in the bar chart, the highest return for a quarter was 8.15% (quarter ended </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">December 31, 2023) and the lowest return for a quarter was -6.13% (quarter ended March 31, 2020). The year-to-date return as of September 30, 2026 was -3.17%.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.0815 2023-12-31 lowest return -0.0613 2020-03-31 year-to-date return 2026-09-30 -0.0317 For the periods ended 12/31/25Average Annual Total Returns 0.0282 0.0173 0.0250 0.0282 0.0166 0.0241 0.0319 0.0198 0.0256 0.0425 0.0080 0.0234 0.0375 0.0090 <div style="margin-top: 12pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 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 investor’s 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. Fund Overview Key Facts About BlackRock New York Municipal Opportunities Fund Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of the BlackRock New York Municipal Opportunities Fund (the “Fund”) is to provide </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders with income exempt from Federal income tax and New York State and New York City personal income </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">taxes.</span></div> Fees and Expenses of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This table describes the fees and expenses that you may pay if you buy, hold and sell Investor A1 Shares of the Fund. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Amounts in the table are rounded to the nearest basis point, which in some cases may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">0.00.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">You may pay other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">fees, such as brokerage commissions and other fees to your financial professional or selected securities dealer, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">broker, investment adviser, service provider or industry professional (including BlackRock Advisors, LLC </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">(</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">BlackRock</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">) and its affiliates) (each a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">Financial Intermediary</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">), which are not reflected in the table and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">example below.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> Shareholder Fees (fees paid directly from your investment) 0 0 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0047 0.0010 0.0028 0.0009 0.0019 0.0001 0.0086 -0.0006 0.0080 A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A1 Shares made within 18 months after purchase where no initial sales charge was paid at the time of purchase. The CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders. June 30, 2028 The Total Annual Fund Operating Expenses does not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which includes extraordinary expenses and does not include Acquired Fund Fees and Expenses. Example: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or lower, based on these assumptions your costs would be:</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> 82 268 471 1055 Portfolio Turnover: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">28</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">% of the average value of its portfolio.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 0.28 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Under normal circumstances, the Fund will invest at least 80% of its net assets, plus the amount of any borrowing for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment purposes, in investment grade New York municipal bonds and derivatives that provide investment exposure </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to such securities or to one or more market risk factors associated with such securities. New York municipal bonds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may be obligations of a variety of issuers including governmental entities in New York and issuers located in Puerto </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Rico, the U.S. Virgin Islands and Guam. The interest on these obligations may not be exempt from the Federal </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Alternative Minimum Tax.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Municipal bonds also include short-term tax-exempt obligations, like municipal notes, variable rate demand </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligations, private activity bonds and insured municipal bonds. The Fund may invest in both fixed rate and variable </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rate obligations.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest in bonds of any maturity. The Fund’s average weighted duration may vary significantly from time to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">time depending on the views of Fund management.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund’s investment process begins with bottom-up, fundamental analysis focused on sector and security selection, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and then incorporates a macroeconomic framework for evaluating and managing risk, including geographic, technical </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and economic risk. The Fund’s investment process is generally expected to place greater emphasis on duration </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">management and capital structure compared to that of a more traditional municipal fixed-income fund. When selecting </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments for the Fund, Fund management considers a variety of factors, including the credit quality of issuers and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the yield and duration of the obligations.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund is permitted to engage in transactions in derivatives, such as options or futures on a security or an index of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities (including, but not limited to, interest rate futures contracts, financial futures contracts and options </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">thereon), for hedging purposes (including anticipatory hedges) or to seek to enhance returns. The Fund may also invest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in other derivatives, such as swap agreements, including credit default swap agreements. Derivatives are financial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments whose value is derived from another security or an index. Derivatives may allow the Fund to increase or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">decrease its risk exposure more quickly and efficiently than other types of instruments. The Fund may also invest in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">indexed and inverse floating rate obligations.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may leverage its assets through the use of proceeds received through tender option bond transactions. In a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tender option bond transaction, the Fund transfers municipal bonds or other municipal securities into a special </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">purpose entity (a “TOB Trust”). A TOB Trust typically issues two classes of beneficial interests: short-term floating rate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interests (“TOB Floaters”), which are sold to third-party investors, and residual inverse floating rate interests (“TOB </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Residuals”), which are generally issued to the Fund. The Fund may invest in TOB Residuals and may also invest in TOB </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Floaters. The Fund will look through to the underlying municipal bond held by a TOB Trust for purposes of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">80% policy.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may invest up to 20% of its assets in securities that are not New York municipal bonds (including, but not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">limited to, taxable municipal bonds, U.S. Treasury and Government agency issues, and investment grade corporate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bonds).</span></div> <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may also invest up to 20% of its assets in non-investment grade municipal bonds (high yield or junk bonds), </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">including debt securities that at the time of purchase are in default or that the Fund’s management team believes will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">be in default.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may also buy when-issued securities and participate in delayed delivery transactions.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may engage in active and frequent trading of portfolio securities to achieve its primary investment strategies.</span></div> Under normal circumstances, the Fund will invest at least 80% of its net assets, plus the amount of any borrowing for investment purposes, in investment grade New York municipal bonds and derivatives that provide investment exposure to such securities or to one or more market risk factors associated with such securities. New York municipal bonds may be obligations of a variety of issuers including governmental entities in New York and issuers located in Puerto Rico, the U.S. Virgin Islands and Guam. The interest on these obligations may not be exempt from the Federal Alternative Minimum Tax.Municipal bonds also include short-term tax-exempt obligations, like municipal notes, variable rate demand obligations, private activity bonds and insured municipal bonds. The Fund may invest in both fixed rate and variable rate obligations. <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund’s investment process begins with bottom-up, fundamental analysis focused on sector and security selection, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and then incorporates a macroeconomic framework for evaluating and managing risk, including geographic, technical </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and economic risk. The Fund’s investment process is generally expected to place greater emphasis on duration </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">management and capital structure compared to that of a more traditional municipal fixed-income fund. When selecting </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments for the Fund, Fund management considers a variety of factors, including the credit quality of issuers and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the yield and duration of the obligations.</span></div> You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Debt Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Debt securities, such as bonds, involve risks, such as credit risk, interest rate risk, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">extension risk, and prepayment risk, each of which are described in further detail below:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Credit Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">able to make payments of interest and principal when due. Changes in an issuer’s credit rating or the market’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Interest Rate Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The market value of bonds and other fixed-income securities changes in response to interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rate changes and other factors. Interest rate risk is the risk that prices of bonds and other fixed-income securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">will increase as interest rates fall and decrease as interest rates rise.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may be subject to a greater risk of rising interest rates during a period of low interest rates. For example, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors being </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The magnitude </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of these fluctuations in the market price of bonds and other fixed-income securities is generally greater for those </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset value. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">management.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Since rates on certain floating rate debt securities typically reset only periodically, changes in prevailing interest </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the net asset </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value of the Fund to the extent that it invests in floating rate debt securities.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These basic principles of bond prices also apply to U.S. Government securities. A security backed by the “full faith </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and credit” of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its current market price. Just like other fixed-income securities, government-guaranteed securities will fluctuate in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">value when interest rates change.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">scale, which may increase redemptions from funds that hold large amounts of fixed-income securities. Heavy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">hurt the Fund’s performance.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Extension Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — When interest rates rise, certain obligations will be paid off by the obligor more slowly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated, causing the value of these obligations to fall.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Prepayment Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — When interest rates fall, certain obligations will be paid off by the obligor more quickly than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Municipal Securities Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Municipal securities risks include the ability of the issuer to repay the obligation, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">relative lack of information about certain issuers of municipal securities, and the possibility of future legislative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">changes which could affect the market for and value of municipal securities. Budgetary constraints of local, state, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and federal governments upon which the issuers may be relying for funding may also impact municipal securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">These risks include:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">General Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Timely payments depend on the issuer’s credit quality, ability to raise tax </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">revenues and ability to maintain an adequate tax base.</span></div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Revenue Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> These payments depend on the money earned by the particular facility or class of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">facilities, or the amount of revenues derived from another source.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Private Activity Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipalities and other public authorities issue private activity bonds to finance </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest on the bond, and the issuer does not pledge its full faith, credit and taxing power for repayment.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Moral Obligation Bonds Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Moral obligation bonds are generally issued by special purpose public authorities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commitment, but not a legal obligation, of the state or municipality.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Notes Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Municipal Lease Obligations Risks —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> In a municipal lease obligation, the issuer agrees to make payments when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">obligation, the lease obligation is secured by the leased property.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Tax-Exempt Status Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The Fund and its investment manager will rely on the opinion of issuers’ bond counsel </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and, in the case of derivative securities, sponsors’ counsel, on the tax-exempt status of interest on municipal bonds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and payments under derivative securities. Neither the Fund nor its investment manager will independently review the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders to substantial tax liabilities.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">State Specific Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> The Fund will invest significantly in municipal securities issued by or on behalf of the State of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">New York and The City of New York, their political subdivisions, authorities and agencies. As a result, the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance will be affected by the fiscal and economic health of that state, the city and their municipalities.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Derivatives Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s use of derivatives may increase its costs, reduce the Fund’s returns and/or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increase volatility. Derivatives involve significant risks, including:</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Leverage Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s use of derivatives can magnify the Fund’s gains and losses. Relatively small market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">movements may result in large changes in the value of a derivatives position and can result in losses that greatly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exceed the amount originally invested.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Market Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some derivatives are more sensitive to interest rate changes and market price fluctuations than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other securities. The Fund could also suffer losses related to its derivatives positions as a result of unanticipated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market movements, which losses are potentially unlimited. Finally, BlackRock may not be able to predict correctly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the direction of securities prices, interest rates and other economic factors, which could cause the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">derivatives positions to lose value.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Counterparty Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Derivatives are also subject to counterparty risk, which is the risk that the other party in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transaction will be unable or unwilling to fulfill its contractual obligation, and the related risks of having concentrated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure to such a counterparty.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Illiquidity Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">difficult for the Fund to value accurately.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Operational Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The use of derivatives includes the risk of potential operational issues, including documentation </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues, settlement issues, systems failures, inadequate controls and human error.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Legal Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">enforceability of a contract.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Volatility and Correlation Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Volatility is defined as the characteristic of a security, an index or a market to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuations in their values may not correlate with the overall securities markets.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Valuation Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Valuation for derivatives may not be readily available in the market. Valuation may be more difficult </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in times of market turmoil since many investors and market makers may be reluctant to purchase complex </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments or quote prices for them.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Hedging Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Hedges are sometimes subject to imperfect matching between the derivative and the underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may result in certain adverse tax consequences.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Tax Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Certain aspects of the tax treatment of derivative instruments, including swap agreements and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commodity-linked derivative instruments, are currently unclear and may be affected by changes in legislation, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulations or other legally binding authority. Such treatment may be less favorable than that given to a direct </span></div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">realizes from its investments.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">High Yield Bonds Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Although junk bonds generally pay higher rates of interest than investment grade bonds, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">junk bonds are high risk investments that are considered speculative and may cause income and principal losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the Fund.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Illiquid Investments Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund may not acquire any illiquid investment if, immediately after the acquisition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">calendar days or less without the sale or disposition significantly changing the market value of the investment. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Liquid investments may become illiquid after purchase by the Fund, particularly during periods of market turmoil. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">There can be no assurance that a security or instrument that is deemed to be liquid when purchased will continue </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to be liquid for as long as it is held by the Fund, and any security or instrument held by the Fund may be deemed an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">illiquid investment pursuant to the Fund’s liquidity risk management program. The Fund’s illiquid investments may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">reduce the returns of the Fund because it may be difficult to sell the illiquid investments at an advantageous time </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or price. In addition, if the Fund is limited in its ability to dispose of illiquid investments during periods when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders are redeeming or selling their shares or the Fund’s net assets otherwise shrink, the Fund will need to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">dispose of liquid securities to meet redemption requests and illiquid securities will become a larger portion of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund’s holdings. An investment may be illiquid due to, among other things, the reduced number and capacity of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">traditional market participants to make a market in fixed-income securities or the lack of an active trading market. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">To the extent that the Fund’s principal investment strategies involve derivatives or securities with substantial market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and/or credit risk, the Fund will tend to have greater exposure to the risks associated with illiquid investments. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Illiquid investments may be harder to value, especially in changing markets, and if the Fund is forced to sell these </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments to meet redemption requests or for other cash needs, the Fund may suffer a loss. This may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">magnified in a rising interest rate environment or other circumstances where investor redemptions or sales of Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares may be higher than normal. In addition, when there is illiquidity in the market for certain securities, the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund, due to limitations on illiquid investments, may be subject to purchase and sale restrictions.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Indexed and Inverse Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Indexed and inverse securities provide a potential return based on a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">particular index of value or interest rates. The Fund’s return on these securities will be subject to risk with respect </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to the value of the particular index. These securities are subject to leverage risk and correlation risk. Certain </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">indexed and inverse securities have greater sensitivity to changes in interest rates or index levels than other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities, and the Fund’s investment in such instruments may decline significantly in value if interest rates or index </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">levels move in a way Fund management does not anticipate.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Insurance Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Insurance guarantees that interest payments on a municipal security will be made on time and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that the principal will be repaid when the security matures. However, insurance does not protect against losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">caused by declines in a municipal security’s value. The Fund cannot be certain that any insurance company will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">make the payments it guarantees. If a municipal security’s insurer fails to fulfill its obligations or loses its credit </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rating, the value of the security could drop.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Leverage Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some transactions may give rise to a form of economic leverage. These transactions may include, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to meet the applicable requirements of the Investment Company Act of 1940, as amended (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Company Act</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">), and the rules thereunder. Increases and decreases in the value of the Fund’s portfolio will be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">magnified when the Fund uses leverage.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Market Risk and Selection Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">go down in value, including the possibility that the markets will go down sharply and unpredictably. An investor could </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">lose money over short periods due to fluctuation in the Fund’s net asset value in response to short-term market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">movements and over longer periods during market downturns. Securities or other investments held by the Fund may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underperform the markets, the relevant indices or benchmarks, or the securities selected by other funds with </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">similar investment objectives and investment strategies, or may otherwise fail to perform as intended. The value of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">a security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The success of a Fund’s activities could be affected by interest rates, availability of credit, inflation rates, economic </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">uncertainty, changes in laws, tariffs and trade barriers, supply chain disruptions, economic sanctions, currency </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exchange controls, and local, regional or global events such as war, acts of terrorism, natural and environmental </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">disasters, the spread of infectious illness or other public health issues, recessions, or other events.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Recent policy initiatives undertaken by the U.S. government have the potential to impact international relations, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">trade agreements and the overall regulatory environment in ways that could create uncertainty and instability in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">domestic and global markets, and could adversely affect the investment performance of the Fund. In particular, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">actions taken by the U.S. government in respect of international trade relations could lead to trade wars, increased </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">costs for imported goods, disruptions in supply chains, reduced foreign investment, and instability in regions where </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund invests.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Municipal Securities Concentration Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;"> —</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> From time to time the Fund may invest a substantial amount of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">assets in municipal securities whose interest is paid solely from revenues of similar projects. If the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">concentrates its investments in this manner, it assumes the legal and economic risks relating to such projects and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">this may have a significant impact on the Fund’s investment performance.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Operational and Technology Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cybersecurity incidents, and the use of artificial intelligence and machine learning (“AI”), which may result in losses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the Fund and its shareholders or may impair the Fund’s operations. While the Fund’s service providers are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">required to have appropriate operational, information security and cybersecurity risk management policies and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">procedures, their methods of risk management may differ from those of the Fund. Operational and technology risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may cause the Fund’s investments in such issuers to lose value.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Taxability Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Investments in taxable municipal bonds, U.S. Treasury and Government agency issues, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment grade corporate bonds and taxable money market securities as well as some of the derivatives and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other instruments discussed herein will cause the Fund to have taxable investment income. The Fund may also </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">realize capital gains on the sale of its municipal bonds (and other securities and derivatives it holds). These capital </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">gains will be taxable regardless of whether they are derived from a sale of municipal bonds. Fund investments may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">also cause the Fund to recognize taxable ordinary income from market discount. The Fund will report distributions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">from taxable investment income, from market discount and from realized capital gains as taxable to Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders. In order for the Fund to be eligible to report distributions of tax-exempt interest income from tax-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exempt or municipal securities as tax-exempt income to Fund shareholders, at least half of the Fund’s total assets </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">must be invested in tax-exempt securities as of the end of each calendar quarter. If the Fund did not maintain that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">level of investment with respect to tax-exempt securities, the Fund would lose the ability to report distributions of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tax-exempt interest income as tax-exempt income to Fund shareholders.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund expects to use derivatives for hedging purposes or to seek to enhance returns, among other things. The </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Federal income tax treatment of a derivative may not be as favorable as a direct investment in an underlying asset. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Derivatives may produce taxable income and taxable realized gain. Derivatives may adversely affect the timing, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">character and amount of income the Fund realizes from its investments. As a result, a larger portion of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">distributions may be treated as ordinary income rather than as tax-exempt income or as capital gains. In addition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain derivatives are subject to mark-to-market or straddle provisions of the Internal Revenue Code of 1986, as </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">amended (the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Internal Revenue Code</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">). If such provisions are applicable, there could be an increase (or decrease) </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in the amount of taxable dividends paid by the Fund. Payments received by the Fund from swap agreements will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">generally produce taxable income, while payments made by the Fund on swap agreements will be allocated against </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">both tax-exempt and taxable gross income, decreasing the Fund’s distributable net tax-exempt income. In addition, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the tax treatment of certain derivatives, such as swaps, is unsettled and may be subject to future legislation, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulation or administrative pronouncements issued by the Internal Revenue Service.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Tender Option Bonds and Related Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s participation in tender option bond transactions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may reduce the Fund’s returns and/or increase volatility. Investments in tender option bond transactions expose the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund to counterparty risk and leverage risk. An investment in a tender option bond transaction typically will involve </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">greater risk than an investment in a municipal fixed rate security, including the risk of loss of principal. Distributions </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">on TOB Residuals will bear an inverse relationship to short-term municipal security interest rates. Distributions on </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">TOB Residuals paid to the Fund will be reduced or, in the extreme, eliminated as short-term municipal interest rates </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rise and will increase when short-term municipal interest rates fall. TOB Residuals generally will underperform the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market for fixed rate municipal securities in a rising interest rate environment. The Fund may invest in TOB Trusts on </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">either a non-recourse or recourse basis. If the Fund invests in a TOB Trust on a recourse basis, it could suffer </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">losses in excess of the value of its TOB Residuals.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">U.S. Government Obligations Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Certain securities in which the Fund may invest, including securities issued by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">certain U.S. Government agencies and U.S. Government sponsored enterprises, are not guaranteed by the U.S. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Government or supported by the full faith and credit of the United States. In addition, circumstances could arise </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">that could prevent the timely payment of interest or principal on U.S. Government obligations, such as reaching the </span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">legislative “debt ceiling.” Such non-payment could result in losses to the Fund and substantial negative </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">consequences for the U.S. economy and the global financial system.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Variable Rate Demand Obligations Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Variable rate demand obligations are floating rate securities that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">combine an interest in a long term municipal bond with a right to demand payment before maturity from a bank or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other financial institution. If the bank or financial institution is unable to pay, the Fund may lose money.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">When-Issued and Delayed Delivery Securities and Forward Commitments Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — When-issued and delayed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">delivery securities and forward commitments involve the risk that the security the Fund buys will lose value prior to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its delivery. There also is the risk that the security will not be issued or that the other party to the transaction will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">not meet its obligation. If this occurs, the Fund may lose both the investment opportunity for the assets it set aside </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to pay for the security and any gain in the security’s price.</span></div> </div> <div style="clear: both; position: relative;"> </div> </div> Performance Information <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. The table compares the Fund’s performance to that of the Bloomberg Municipal Bond Index and a customized weighted index comprised of 85% Bloomberg Municipal Bond: New York Exempt Total Return Index Unhedged USD/10% Bloomberg Municipal Bond: New York High Yield (non-Investment Grade) Total Return Index/5% Bloomberg Municipal Index New York Taxable Bonds Total Return Index Value (the “Customized Reference Benchmark”). To the extent that dividends and distributions have been paid by the Fund, the performance information for the Fund in the chart and table assumes reinvestment of the dividends and distributions. 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 Fund’s investment manager and its affiliates had not waived or reimbursed certain Fund expenses during these periods, the Fund’s returns would have been lower. Updated information on the Fund’s performance, including its current net asset value, can be obtained by visiting www.blackrock.com or can be obtained by phone at (800) 882-0052</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">.</span></div> The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. 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. www.blackrock.com (800) 882-0052 Investor A1 Shares ANNUAL TOTAL RETURNS BlackRock New York Municipal Opportunities Fund As of 12/31 <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">During the ten-year period shown in the bar chart, the highest return for a quarter was 8.10% (quarter ended </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">December 31, 2023) and the lowest return for a quarter was -6.07% (quarter ended March 31, 2020). The year-to-date return as of September 30, 2026 was -3.18%.  </span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.0810 2023-12-31 lowest return -0.0607 2020-03-31 year-to-date return 2026-09-30 -0.0318 For the periods ended 12/31/25Average Annual Total Returns 0.0257 0.0156 0.0235 0.0257 0.0150 0.0227 0.0298 0.0182 0.0242 0.0425 0.0080 0.0234 0.0375 0.0090 <div style="margin-top: 12pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">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 investor’s 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.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 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 investor’s 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. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 44, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds (“ETFs”) managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of BlackRock Multi-State Municipal Series Trust (the “Trust”) or by a vote of a majority of the outstanding voting securities of the Fund. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 33, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds (“ETFs”) managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of BlackRock Multi-State Municipal Series Trust (the “Trust”) or by a vote of a majority of the outstanding voting securities of the Fund. The Customized Reference Benchmark commenced in September 2016 and therefore the Customized Reference Benchmark does not have a 10-year return. Miscellaneous Other Expenses does not include extraordinary expenses incurred by the Fund. If included, Miscellaneous Other Expenses would have been 0.14% of average daily net assets. The Total Annual Fund Operating Expenses does not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which includes extraordinary expenses and does not include Acquired Fund Fees and Expenses. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 33, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.60% of average daily net assets through June 30, 2028. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. Investor A1 Shares are subject to a maximum sales charge on purchases of 4.00%. The sales charge does not apply to dividend and capital gain reinvestments by existing shareholders and new purchases for certain employer-sponsored retirement plans, which are currently the only investors who may invest in Investor A1 Shares. A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A1 Shares made within 18 months after purchase where no initial sales charge was paid at the time of purchase. The CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders. The Customized Reference Benchmark commenced in September 2016 and therefore the Customized Reference Benchmark does not have a 10-year return. Miscellaneous Other Expenses do not include extraordinary expenses incurred by the Fund. If included, Miscellaneous Other Expenses would have been 0.15% (for Investor A Shares), 0.17% (for Investor C Shares) and 0.17% (for Institutional Shares) of average daily net assets. The Total Annual Fund Operating Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which includes extraordinary expenses and does not include Acquired Fund Fees and Expenses. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 44, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.75% (for Investor A Shares), 1.50% (for Investor C Shares) and 0.50% (for Institutional Shares) of average daily net assets through June 30, 2028. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. 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 as part of an investment of $250,000 or more. There is no CDSC on Investor C Shares after one year. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 33, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds (“ETFs”) managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of BlackRock Multi-State Municipal Series Trust (the “Trust”) or by a vote of a majority of the outstanding voting securities of the Fund. Miscellaneous Other Expenses does not include extraordinary expenses incurred by the Fund. If included, Miscellaneous Other Expenses would have been 0.10% of average daily net assets. The Total Annual Fund Operating Expenses does not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which includes extraordinary expenses and does not include Acquired Fund Fees and Expenses. The Customized Reference Benchmark commenced in September 2016 and therefore the Customized Reference Benchmark does not have a 10-year return. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 33, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.45% of average daily net assets through (for Class K shares) June 30, 2028. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund.