Company: MYI
Filing Date: 2025-09-02
Form Type: N-14 8C/A
Source: 0001193125-25-193985
Chunk: 216

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-02
Form: N-14 8C/A
Chunk 216
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 the Investment Advisor, market conditions warrant.

Strategic Transactions and Other Management Techniques

MVF may purchase and sell futures contracts, enter into various interest rate transactions and swap contracts (including, but not limited to, credit default
swaps) and may purchase and sell exchange-listed and OTC put and call options on securities and swap contracts, financial indices and futures contracts and use other derivative instruments or management techniques (collectively, “Strategic
Transactions”). These Strategic Transactions may be used for duration management and other risk management purposes, subject to MVF’s investment restrictions. While MVF’s use of Strategic Transactions is intended to reduce the
volatility of the NAV of MVF’s common shares, the NAV of MVF’s common shares will fluctuate. No assurance can be given that MVF’s Strategic Transactions will be effective.

There is no particular strategy that requires use of one technique rather than another as the decision to use any particular strategy or instrument is a
function of market conditions and the composition of the portfolio. The ability of MVF to use Strategic Transactions successfully will depend on the Investment Advisor’s ability to predict pertinent market movements as well as sufficient
correlation among the instruments, which cannot be assured. Strategic Transactions subject MVF to the risk that, if the Investment Advisor incorrectly forecasts market values, interest rates or other applicable factors, MVF’s performance could
suffer. Certain of these Strategic Transactions, such as investments in inverse floating rate securities and credit default swaps, may provide investment leverage to MVF’s portfolio. MVF is not required to use derivatives or other portfolio
strategies to seek to hedge its portfolio and may choose not to do so.

The use of Strategic Transactions may result in losses greater
than if they had not been used, may require MVF to sell or purchase portfolio securities at inopportune times or for prices other than current market values, may limit the amount of appreciation MVF can realize on an investment or may cause MVF to
hold a security that it might otherwise sell. Furthermore, MVF may only engage in Strategic Transactions from time to time and may not necessarily be engaging in hedging activities when movements in interest rates occur.

MVF’s investment objectives and the requirements of Subchapter M of the Code for qualification as a regulated investment company may restrict or affect
the ability of MVF to engage in Strategic Transactions. In addition, the use of certain Strategic Transactions may give rise to taxable income and have certain other consequences, such as subjecting a portion of MVF’s dividends to