Form 4: BlackRock Director Reports Share Exchange in Fund Reorganization

Director Robert Glenn Hubbard exchanged shares of BlackRock New York Municipal Income Trust for shares of BlackRock MuniYield New York Quality Fund due to a fund reorganization.

Summary

• Robert Glenn Hubbard, a director of BlackRock New York Municipal Income Trust (BNY), reported a change in beneficial ownership.
• The change resulted from the reorganization of BlackRock New York Municipal Income Trust (referred to as the "Target Fund") into BlackRock MuniYield New York Quality Fund (referred to as the "Acquiring Fund").
• Effective February 9, 2026, common shareholders of the Target Fund received common shares of the Acquiring Fund.
• The value received was equal to the aggregate Net Asset Value (NAV) of the surrendered Target Fund common shares, less the costs of the reorganization.
• As of February 6, 2026, the Target Fund's NAV per share was $11.1056, and the Acquiring Fund's NAV per share was $10.8726.
• The conversion ratio for the Target Fund's common shares was 1.02143002.
• Hubbard exchanged 889 common shares of the Target Fund for 908 common shares of the Acquiring Fund, along with cash for any fractional shares.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral event for the reporting person, as it's a mandatory share exchange due to a fund reorganization rather than a discretionary buy or sell, with minor negative impact from reorganization costs.

Positives

• The reorganization provides a structured mechanism for shareholders to transition their investment into the Acquiring Fund.
• The share exchange was based on Net Asset Values, ensuring a fair value transfer for shareholders.

Negatives

• Shareholders of the Target Fund bore the costs of the reorganization, which reduced the overall value received.
• The Target Fund's NAV per share ($11.1056) was higher than the Acquiring Fund's NAV per share ($10.8726) as of February 6, 2026, though the conversion ratio was designed to account for this difference in the exchange.

Risks

• Shareholders of the Target Fund incurred reorganization costs, which could slightly diminish the value of their investment.
• Potential for market volatility between the NAV determination date (February 6, 2026) and the effective date of the reorganization (February 9, 2026) could have theoretically impacted the actual value received, although the conversion was based on the determined NAVs.

Future Outlook

The filing details a completed reorganization and does not provide forward-looking statements or guidance beyond the transaction itself.

Industry Context

StockSavvy.ai notes that fund reorganizations, particularly mergers of similar funds within the same fund family like BlackRock, are common strategies to optimize fund structures, achieve economies of scale, or streamline product offerings. This specific reorganization appears to consolidate municipal income trusts.

Comparison to Industry Standards

• The conversion ratio calculation based on NAVs is a standard practice in fund reorganizations to ensure fair value exchange for shareholders.
• The disclosure of reorganization costs is also standard, as these are typically borne by the shareholders of the dissolving fund.
• Similar reorganizations have occurred across the asset management industry, for example, when Vanguard merged several of its actively managed funds into lower-cost index funds to simplify its product lineup and reduce expenses for investors.

Management Changes

Related Party Transactions

• The transaction involves a director of the Target Fund exchanging shares as part of a corporate reorganization. This is a related party transaction, but it is a non-discretionary event mandated by the fund's reorganization.

Stakeholder Impact

• Shareholders of the Target Fund received shares in the Acquiring Fund, maintaining their investment in a similar municipal income strategy, but incurred reorganization costs.
• Shareholders of the Acquiring Fund likely saw an increase in the fund's asset base due to the merger.

Key Dates

Recommendation

This Form 4 reports a mandatory share exchange by a director due to a fund reorganization, not a discretionary investment decision. It provides no new information to warrant a change in investment recommendation for the underlying funds. The event is neutral for the director's position and the funds' strategy.

Keywords

BlackRock, BNY, Fund Reorganization, SEC Form 4, Insider Transaction, Municipal Income Trust, MuniYield Fund, Robert Glenn Hubbard, Director, Share Exchange