UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number			811-06377
	BNY Mellon Municipal Funds, Inc.
	(Exact name of Registrant as specified in charter)
	c/o BNY Mellon Investment Adviser, Inc. 240 Greenwich Street New York, New York 10286
	(Address of principal executive offices)        (Zip code)
	Deirdre Cunnane, Esq. 240 Greenwich Street New York, New York 10286
	(Name and address of agent for service)
Registrant's telephone number, including area code:				(212) 922-6400
Date of fiscal year end:		08/31
Date of reporting period:		08/31/2021

FORM N-CSR

Item 1. Reports to Stockholders.

BNY Mellon AMT-Free Municipal Bond Fund

ANNUAL REPORT

August 31, 2021

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The views expressed in this report reflect those of the portfolio manager(s) only through the end of the period covered and do not necessarily represent the views of BNY Mellon Investment Adviser, Inc. or any other person in the BNY Mellon Investment Adviser, Inc. organization. Any such views are subject to change at any time based upon market or other conditions and BNY Mellon Investment Adviser, Inc. disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund in the BNY Mellon Family of Funds are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any fund in the BNY Mellon Family of Funds.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

Contents

T H E F U N D

Discussion of Fund Performance	2
Fund Performance	5
Understanding Your Fund’s Expenses	8
Comparing Your Fund’s Expenses With Those of Other Funds	8
Statement of Investments	9
Statement of Assets and Liabilities	36
Statement of Operations	37
Statement of Changes in Net Assets	38
Financial Highlights	40
Notes to Financial Statements	45
Report of Independent Registered Public Accounting Firm	54
Important Tax Information	55
Information About the Approval of the Fund’s Management Agreement and Approval of Sub-Investment Advisory Agreement	56
Liquidity Risk Management Program	59
Board Members Information	60
Officers of the Fund	63

F O R M O R E I N F O R M AT I O N

Back Cover

DISCUSSION OF FUND PERFORMANCE(Unaudited)

For the period from September 1, 2020 through August 31, 2021, as provided by Daniel Rabasco and Thomas Casey, Primary Portfolio Managers

Market and Fund Performance Overview

For the 12-month period ended August 31, 2021, BNY Mellon AMT-Free Municipal Bond Fund’s Class A shares achieved a total return of 3.49%, Class C shares returned 2.72%, Class I shares returned 3.68%, Class Y shares returned 3.70% and Class Z shares returned 3.72%.¹ In comparison, the fund’s benchmark, the Bloomberg U.S. Municipal Bond Index (the “Index”), produced a total return of 3.40%.²

Municipal bonds continued to recover from the volatility that occurred early in 2020 due to the COVID-19 virus. The fund’s Class A, I, Y and Z shares outperformed the Index, mainly due to favorable asset allocation and security selection.

The Fund’s Investment Approach

The fund seeks as high a level of current income exempt from federal income tax as is consistent with the preservation of capital.

To pursue its goal, the fund normally invests substantially all of its net assets in municipal bonds that provide income exempt from federal income tax. The fund also seeks to provide income exempt from the federal alternative minimum tax.

The fund invests at least 65% of its assets in municipal bonds with an A or higher credit rating, or the unrated equivalent as determined by BNY Mellon Investment Adviser, Inc. The fund may invest the remaining 35% of its assets in municipal bonds with a credit rating lower than A, including municipal bonds rated below investment grade (“high yield” or “junk” bonds), or the unrated equivalent as determined by BNY Mellon Investment Adviser, Inc.

The fund’s portfolio managers focus on identifying undervalued sectors and securities and minimize the use of interest-rate forecasting. The portfolio managers select municipal bonds for the fund’s portfolio by:

·Using fundamental credit analysis to estimate the relative value and attractiveness of various sectors and securities and to exploit pricing inefficiencies in the municipal bond market; and

·Actively trading among various sectors, such as pre-refunded, general obligation and revenue, based on their apparent relative values. The fund seeks to invest in several of these sectors.

Market Benefits from Policy Support and Strong Inflows

During the reporting period, the market continued to benefit from policies put in place in response to the COVID-19 pandemic, including support from the Federal Reserve (the “Fed”). While the Fed made no notable changes to monetary policy, early in the period it did commit to continuing its bond purchasing program. In the second half of the period, the Fed adopted a more hawkish tone, however.

2

Robust fiscal support also benefited the market. The $1.9 trillion American Rescue Plan extended unemployment benefits, provided aid to schools and businesses, and sent stimulus checks to families. That supported the U.S. economy and also the municipal bond market.

The election also increased the likelihood of income tax hikes for higher-income households, adding to the appeal of tax-exempt municipal securities. The prospect of an increase in the corporate tax rate made municipal bonds more appealing to institutional buyers, and low interest rates overseas attracted foreign investors to the market.

Performance in the Treasury market was generally hindered as the market sold off, especially at the long end of the curve. Performance in fixed-income risk markets, however, was stronger as the approval of COVID-19 vaccines provided support. Both the investment-grade and high yield corporate segments of the market posted positive returns.

In the municipal bond market, performance was also strong, supported especially by strong supply-and- demand factors. While supply surged prior to the November 2020 election, it tapered off later in the year. At the same time, flows into municipal bond mutual funds were strong, helped in part by a surge in investor optimism resulting from the approval of COVID-19 vaccines.

Volatility experienced in the Treasury market also occurred in the municipal bond market, though to a lesser extent. Generally, the municipal yield curve flattened during the period, with the 10-year maturities selling off more than 30-year maturities.

The municipal bond market generally finished the period relatively richly valued versus Treasuries, with the ratio of yields on 10-year municipal maturities at 70% of those on 10-year Treasuries and the ratio of 30-year municipals finishing at 79% of 30-year Treasuries.

Credit conditions also improved over the period, which resulted in spread tightening in the municipal market, with the revenue segment outperforming the general obligation segment. In the revenue segment, transportation and hospitals performed particularly well. Finally, lower-quality bonds performed more strongly than higher quality.

Asset Allocation and Security Selection Drove Fund Results

The fund outperformed the Index during the reporting period due largely to favorable security selection. Asset allocation also contributed somewhat. Security selections were particularly strong in the special tax, water & sewer, airport, and education sectors. As for asset allocation, the fund’s overweight position in revenue bonds and underweight in general obligation bonds were beneficial. Also, overweight positions in the airport, health care and tobacco segments of the revenue sector were especially positive.

On a less positive note, performance was hindered by unfavorable selections in certain sectors. In particular, selections in the transportation sector hampered performance. In addition, certain selections of state general obligation bonds also contributed negatively to results.

Policy Support and Supply/Demand Factors Bode Well for Municipal Bonds

We anticipate that the opening of the economy and ongoing federal spending will support fundamentals in 2021. We expect that demand will remain strong from both retail investors as well as banks and insurance companies. We are watching the progress on the proposed

3

DISCUSSION OF FUND PERFORMANCE(Unaudited) (continued)

infrastructure bill in Congress as this is likely to impact supply, lessening the need for state and local governments to issue new bonds. Higher rates may also influence new supply. Generally, we believe that issuance may remain low.

We are also paying close attention to the Treasury market and a possible spike in rates, perhaps due to higher levels of inflation. Generally, municipal bonds are less volatile than Treasuries, so investors may seek out municipal bonds in a defensive move.

Credit spreads compressed during the reporting period, but we continue to look for idiosyncratic opportunities. We expect to keep the fund’s duration neutral in relation to the benchmark.

September 15, 2021

¹Total return includes reinvestment of dividends and any capital gains paid and does not take into consideration the maximum initial sales charge in the case of Class A shares or the applicable contingent deferred sales charge imposed on redemptions in the case of Class C shares. Had these charges been reflected, returns would have been lower. Neither Class I, Class Y nor Class Z shares are subject to any initial or deferred sales charge. Past performance is no guarantee of future results. Share price, yield and investment return fluctuate such that upon redemption, fund shares may be worth more or less than their original cost. Income may be subject to state and local taxes. Capital gains, if any, are fully taxable. The fund’s returns reflect the absorption of certain fund expenses by BNY Mellon Investment Adviser, Inc. pursuant to an agreement in effect through December 31, 2021, at which time it may be extended, terminated or modified. Had these expenses not been absorbed, the fund’s returns would have been lower.

²Source: Lipper Inc. — The Bloomberg U.S. Municipal Bond Index covers the USD-denominated, long-term, tax-exempt bond market. Investors cannot invest directly in any index.

Bonds are subject generally to interest-rate, credit, liquidity and market risks, to varying degrees, all of which are more fully described in the fund’s prospectus. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes, and rate increases can cause price declines.

High yield bonds involve increased credit and liquidity risks compared with investment-grade bonds and are considered speculative in terms of the issuer’s ability to pay interest and repay principal on a timely basis.

Recent market risks include pandemic risks related to COVID-19. The effects of COVID-19 have contributed to increased volatility in global markets and will likely affect certain countries, companies, industries and market sectors more dramatically than others. To the extent the fund may overweight its investments in certain countries, companies, industries or market sectors, such positions will increase the fund’s exposure to risk of loss from adverse developments affecting those countries, companies, industries or sectors.

4

FUND PERFORMANCE(Unaudited)

Comparison of change in value of a $10,000 investment in Class A shares, Class C shares, Class I shares and Class Z shares of BNY Mellon AMT-Free Municipal Bond Fund with a hypothetical investment of $10,000 in the Bloomberg U.S. Municipal Bond Index (the “Index”)

^†Source: Lipper Inc.

Past performance is not predictive of future performance.

The above graph compares a hypothetical $10,000 investment made in each of the Class A shares, Class C shares, Class I shares and Class Z shares of BNY Mellon AMT-Free Municipal Bond Fund on 8/31/11 to a hypothetical investment of $10,000 made in the Index on that date. All dividends and capital gain distributions are reinvested.

The fund’s performance shown in the line graph above takes into account the maximum initial sales charge on Class A shares and all other applicable fees and expenses on all classes. The Index covers the U.S. dollar-denominated long-term tax-exempt bond market. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

5

FUND PERFORMANCE(Unaudited) (continued)

Comparison of change in value of a $1,000,000 investment in Class Y shares of BNY Mellon AMT-Free Municipal Bond Fund with a hypothetical investment of $1,000,000 in the Bloomberg U.S. Municipal Bond Index (the “Index”).

^† Source: Lipper Inc.

^††The total return figures presented for Class Y shares of the fund reflect the performance of the fund’s Class Z shares for the period prior to 7/1/13 (the inception date for Class Y shares).

Past performance is not predictive of future performance.

The above graph compares a hypothetical $1,000,000 investment made in Class Y shares of BNY Mellon AMT-Free Municipal Bond Fund on 8/31/11 to a hypothetical investment of $1,000,000 made in the Index on that date. All dividends and capital gain distributions are reinvested.

The fund’s performance shown in the line graph above takes into account all other applicable fees and expenses on Class Y shares. The Index covers the U.S. dollar-denominated long-term tax-exempt bond market. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

6

Average Annual Total Returns as of 8/31/2021
	Inception
	Date	1 Year	5 Years	10 Years
Class A shares
with maximum sales charge (4.5%)	3/31/03	-1.18%	1.97%	3.58%
without sales charge	3/31/03	3.49%	2.92%	4.05%
Class C shares
with applicable redemption charge †	3/31/03	1.72%	2.15%	3.27%
without redemption	3/31/03	2.72%	2.15%	3.27%
Class I shares	12/15/08	3.68%	3.16%	4.30%
Class Y shares	7/1/13	3.70%	3.24%	4.36%††
Class Z shares	5/6/94	3.72%	3.15%	4.27%
Bloomberg U.S. Municipal Bond Index		3.40%	3.30%	4.05%

^† The maximum contingent deferred sales charge for Class C shares is 1% for shares redeemed within one year of the date of purchase.

^††The total return performance figures presented for Class Y shares of the fund reflect the performance of the fund’s Class Z shares for the period prior to 7/1/13 (the inception date for Class Y shares).

The performance data quoted represents past performance, which is no guarantee of future results. Share price and investment return fluctuate and an investor’s shares may be worth more or less than original cost upon redemption. Current performance may be lower or higher than the performance quoted. Go to www.im.bnymellon.com for the fund’s most recent month-end returns.

The fund’s performance shown in the graphs and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. In addition to the performance of Class A shares shown with and without a maximum sales charge, the fund’s performance shown in the table takes into account all other applicable fees and expenses on all classes.

7

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in BNY Mellon AMT-Free Municipal Bond Fund from March 1, 2021 to August 31, 2021. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
Assume actual returns for the six months ended August 31, 2021
	Class A	Class C	Class I	Class Y	Class Z
Expenses paid per $1,000†	$3.57	$7.39	$2.30	$2.30	$2.45
Ending value (after expenses)	$1,024.70	$1,020.80	$1,025.30	$1,026.10	$1,025.80

COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (“SEC”) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment
Assuming a hypothetical 5% annualized return for the six months ended August 31, 2021
		Class A	Class C	Class I	Class Y	Class Z
Expenses paid per $1,000†		$3.57	$7.38	$2.29	$2.29	$2.45
Ending value (after expenses)		$1,021.68	$1,017.90	$1,022.94	$1,022.94	$1,022.79
†	Expenses are equal to the fund’s annualized expense ratio of .70% for Class A, 1.45% for Class C, .45% for Class I, .45% for Class Y and .48% for Class Z, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

8

STATEMENT OF INVESTMENTS

August 31, 2021

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Bonds and Notes - .2%
Collateralized Municipal-Backed Securities - .2%
Arizona Industrial Development Authority, Revenue Bonds, Ser. 2019-2 (cost $3,190,597)		3.63	5/20/2033	2,906,912		3,313,287
Long-Term Municipal Investments - 98.3%
Alabama - 4.4%
Alabama Public School & College Authority, Revenue Bonds, Refunding, Ser. A		5.00	11/1/2025	4,000,000		4,775,044
Auburn University, Revenue Bonds, Refunding, Ser. A		4.00	6/1/2036	1,000,000		1,136,357
Birmingham-Jefferson Civic Center Authority, Special Tax Bonds, Ser. A		5.00	7/1/2031	1,100,000		1,351,451
Birmingham-Jefferson Civic Center Authority, Special Tax Bonds, Ser. B		5.00	7/1/2043	3,555,000		4,228,784
Black Belt Energy Gas District, Revenue Bonds (Project No. 4) Ser. A1		4.00	12/1/2025	1,500,000	a	1,708,536
Black Belt Energy Gas District, Revenue Bonds (Project No. 5) Ser. A1		4.00	10/1/2026	4,250,000	a	4,936,995
Black Belt Energy Gas District, Revenue Bonds, Ser. B1, 1 Month LIBOR x.67 +.90%		0.91	12/1/2023	4,000,000	a,b	4,032,831
Jefferson County, Revenue Bonds, Refunding		5.00	9/15/2032	2,000,000		2,439,961
Jefferson County, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. C		6.60	10/1/2042	14,000,000	c	14,416,616
Selma Industrial Development Board, Revenue Bonds, Refunding (International Paper Co.)		2.00	10/1/2024	1,875,000	a	1,970,299
Southeast Energy Authority, Revenue Bonds (Project No. 2) Ser. B		4.00	12/1/2031	1,000,000	a	1,236,569
The Lower Alabama Gas District, Revenue Bonds (Gas Project)		4.00	12/1/2025	5,000,000	a	5,698,115
The Southeast Alabama Gas Supply District, Revenue Bonds (Project No. 2) Ser. A		4.00	6/1/2024	7,025,000	a	7,679,699

9

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Alabama - 4.4% (continued)
University of Alabama at Birmingham, Revenue Bonds, Ser. B		4.00	10/1/2037	3,595,000		4,268,049
					59,879,306
Arizona - 2.0%
Arizona Industrial Development Authority, Revenue Bonds (Phoenix Children's Hospital Obligated Group)		5.00	2/1/2027	1,050,000		1,293,604
Arizona University, Revenue Bonds		5.00	8/1/2031	3,770,000		4,265,394
Glendale Industrial Development Authority, Revenue Bonds, Refunding (Sun Health Services Obligated Group) Ser. A		5.00	11/15/2048	1,500,000		1,741,547
Glendale Industrial Development Authority, Revenue Bonds, Refunding (Sun Health Services Obligated Group) Ser. A		5.00	11/15/2054	3,000,000		3,476,225
La Paz County Industrial Development Authority, Revenue Bonds (Harmony Public Schools) Ser. A		5.00	2/15/2036	1,750,000	d	1,982,337
Maricopa County Industrial Development Authority, Revenue Bonds (Banner Health Obligated Group) Ser. A		5.00	1/1/2041	2,500,000		3,046,659
Maricopa County Pollution Control Corp., Revenue Bonds, Refunding (Public Service Co. of New Mexico)		1.05	6/1/2022	1,250,000	a	1,257,355
Phoenix Civic Improvement Corp., Revenue Bonds		4.00	7/1/2044	4,000,000		4,673,240
The Phoenix Industrial Development Authority, Revenue Bonds, Refunding (Downtown Phoenix Student Housing) Ser. A		5.00	7/1/2037	1,000,000		1,204,785
The University of Arizona, Revenue Bonds, Refunding		5.00	8/1/2037	615,000		800,032
The University of Arizona, Revenue Bonds, Refunding		5.00	8/1/2038	3,000,000		3,892,971
					27,634,149
California - 3.8%
California, GO		5.00	11/1/2026	3,000,000		3,699,126
California, GO		5.00	10/1/2030	6,595,000		8,491,043
California, GO, Refunding		5.00	8/1/2036	5,000,000		6,033,922
California, GO, Refunding (Insured; Assured Guaranty Municipal Corp.)		5.25	8/1/2032	3,590,000		5,062,125

10

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
California - 3.8% (continued)
California Health Facilities Financing Authority, Revenue Bonds, Refunding (Providence St. Joseph Health Obligated Group) Ser. A		4.00	10/1/2036	5,000,000		5,693,867
California Health Facilities Financing Authority, Revenue Bonds, Refunding (Sutter Health Obligated Group) Ser. B		5.00	11/15/2046	2,810,000		3,380,473
California Health Facilities Financing Authority, Revenue Bonds, Refunding (Sutter Health Obligated Group) Ser. B		5.00	11/15/2026	1,940,000	e	2,392,273
California Housing Finance, Revenue Bonds, Ser. 2021-1		3.50	11/20/2035	2,982,243		3,533,776
California Infrastructure & Economic Development Bank, Revenue Bonds, Refunding, Ser. B		5.00	11/1/2029	2,000,000		2,643,152
California Municipal Finance Authority, Revenue Bonds (Green Bond) (Insured; Build America Mutual)		5.00	5/15/2026	350,000		420,656
California Statewide Communities Development Authority, Revenue Bonds (Loma Linda University Medical Center Obligated Group)		5.00	12/1/2033	1,000,000	d	1,189,737
Golden State Tobacco Securitization Corp., Revenue Bonds, Refunding, Ser. A1		5.00	6/1/2027	3,875,000		4,806,943
Pittsburg Successor Agency Redevelopment Agency, Tax Allocation Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. A		5.00	9/1/2029	2,020,000		2,441,326
Sacramento North Natomas Community Facilities District No. 4, Special Tax Bonds, Refunding, Ser. E		5.00	9/1/2030	1,000,000		1,083,092
San Mateo Foster Public Financing Authority, Revenue Bonds		4.00	8/1/2035	1,100,000		1,342,298
					52,213,809
Colorado - 3.8%
Colorado Health Facilities Authority, Revenue Bonds (Children's Hospital Obligated Group) Ser. A		5.00	12/1/2041	1,500,000		1,782,784
Colorado Health Facilities Authority, Revenue Bonds (Covenant Retirement Communities Obligated Group)		5.00	12/1/2043	3,925,000		4,634,397

11

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Colorado - 3.8% (continued)
Colorado Health Facilities Authority, Revenue Bonds, Refunding (AdventHealth Obligated Group)		5.00	11/19/2026	5,535,000	a	6,815,754
Colorado Health Facilities Authority, Revenue Bonds, Refunding (CommonSpirit Health Obligated Group) Ser. A		5.00	8/1/2044	3,000,000		3,723,741
Colorado Health Facilities Authority, Revenue Bonds, Refunding (Sisters of Charity of Leavenworth Health System Obligated Group) Ser. A		4.00	1/1/2036	2,525,000		3,024,599
Denver City & County Airport System, Revenue Bonds, Refunding, Ser. B		5.00	12/1/2043	4,000,000		4,999,822
Denver City & County Airport System, Revenue Bonds, Ser. B		5.00	11/15/2043	15,000,000		16,467,958
Denver Convention Center Hotel Authority, Revenue Bonds, Refunding		5.00	12/1/2031	1,500,000		1,768,815
Dominion Water & Sanitation District, Revenue Bonds		5.75	12/1/2036	2,000,000		2,060,990
Dominion Water & Sanitation District, Revenue Bonds		6.00	12/1/2046	3,380,000		3,482,709
E-470 Public Highway Authority, Revenue Bonds, Refunding, Ser. A		5.00	9/1/2026	1,085,000		1,316,687
Regional Transportation District, Revenue Bonds, Refunding (Denver Transit Partners) Ser. A		4.00	7/15/2034	2,000,000		2,425,764
					52,504,020
Connecticut - 2.1%
Connecticut, GO, Ser. A		5.00	10/15/2025	8,000,000		8,819,366
Connecticut, GO, Ser. C		5.00	6/15/2038	1,000,000		1,252,760
Connecticut, Revenue Bonds, Ser. A		5.00	10/1/2029	5,000,000		5,482,872
Connecticut, Revenue Bonds, Ser. A		5.00	5/1/2034	1,390,000		1,863,006
Connecticut, Special Tax Bonds, Ser. A		5.00	5/1/2038	1,000,000		1,296,418
Connecticut Housing Finance Authority, Revenue Bonds, Refunding, Ser. C1		3.25	5/15/2044	2,300,000		2,529,355
The Metropolitan District, Revenue Bonds, Refunding (Green Bond) Ser. A		5.00	11/1/2033	4,540,000		5,146,548
Waterbury, GO, Ser. A		4.00	2/1/2039	2,200,000		2,603,507
					28,993,832
District of Columbia - .3%
District of Columbia, GO, Ser. D		5.00	6/1/2033	1,325,000		1,620,902

12

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
District of Columbia - .3% (continued)
Metropolitan Washington Airports Authority, Revenue Bonds, Refunding (Dulles Metrorail) Ser. A		5.00	10/1/2037	2,000,000		2,502,356
					4,123,258
Florida - 7.3%
Broward County School District, COP, Refunding, Ser. A		5.00	7/1/2028	7,670,000		9,749,591
Broward County School District, GO		5.00	7/1/2028	4,195,000		5,406,247
Central Florida Expressway Authority, Revenue Bonds, Refunding		5.00	7/1/2042	1,000,000		1,217,267
Central Florida Expressway Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.)		5.00	7/1/2027	2,750,000		3,440,916
Citizens Property Insurance, Revenue Bonds, Ser. A1		5.00	6/1/2025	4,750,000		5,465,817
Escambia County, Revenue Bonds (Sales Tax)		5.00	10/1/2046	2,500,000		3,020,349
Florida Higher Educational Facilities Financing Authority, Revenue Bonds, Refunding (Nova Southeastern University Project)		5.00	4/1/2035	1,500,000		1,756,978
Florida Higher Educational Facilities Financing Authority, Revenue Bonds, Refunding (Nova Southeastern University Project)		5.00	4/1/2028	1,250,000		1,478,318
Florida Housing Finance Corp., Revenue Bonds (Insured; GNMA, FNMA, FHLMC) Ser. 2		3.00	7/1/2051	2,000,000		2,180,193
Florida Municipal Power Agency, Revenue Bonds, Ser. A		3.00	10/1/2032	1,360,000		1,507,384
Florida Municipal Power Agency, Revenue Bonds, Ser. A		5.00	10/1/2031	2,000,000		2,351,191
Gainesville Utilities System, Revenue Bonds, Ser. A		5.00	10/1/2037	2,000,000		2,467,053
Hillsborough County Aviation Authority, Revenue Bonds (Tampa International Airport) Ser. A		5.00	10/1/2044	3,500,000		3,959,929
Jacksonville, Revenue Bonds, Refunding (Brooks Rehabilitation Project)		4.00	11/1/2045	3,000,000		3,442,758
JEA Electric System, Revenue Bonds, Refunding, Ser. 3A		4.00	10/1/2037	2,850,000		3,417,017
JEA Water & Sewer System, Revenue Bonds, Refunding, Ser. A		4.00	10/1/2039	1,500,000		1,802,775

13

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Florida - 7.3% (continued)
Lee County Transportation Facilities, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.)		5.00	10/1/2025	1,530,000		1,750,240
Miami Beach Redevelopment Agency, Tax Allocation Bonds, Refunding		5.00	2/1/2035	1,500,000		1,658,776
Miami Beach Stormwater, Revenue Bonds, Refunding		5.00	9/1/2047	4,500,000		4,692,025
Miami-Dade County Expressway Authority, Revenue Bonds, Refunding, Ser. A		5.00	7/1/2023	5,000,000		5,201,324
Miami-Dade County Expressway Authority, Revenue Bonds, Ser. A		5.00	7/1/2039	5,000,000		5,590,622
Miami-Dade County Water & Sewer System, Revenue Bonds		4.00	10/1/2051	3,000,000		3,536,143
Palm Beach County Health Facilities Authority, Revenue Bonds, Refunding (Baptist Health South Florida Obligated Group)		4.00	8/15/2049	3,650,000		4,204,093
Palm Beach County Health Facilities Authority, Revenue Bonds, Refunding (Baptist Health South Florida Obligated Group)		5.00	8/15/2037	1,000,000		1,265,897
Pasco County School Board, COP (Insured; Assured Guaranty Municipal Corp.) Ser. C		5.00	8/1/2035	4,000,000		5,234,970
Polk County Utility System, Revenue Bonds, Refunding		4.00	10/1/2043	1,250,000		1,505,472
Sunshine Skyway Bridge, Revenue Bonds, Ser. A		4.00	7/1/2034	5,650,000		6,699,838
Tampa, Revenue Bonds (BayCare Obligated Group) Ser. A		5.00	11/15/2046	3,500,000		4,114,163
Tampa, Revenue Bonds (H. Lee Moffitt Cancer Center & Research Institute Obligated Group) Ser. B		5.00	7/1/2050	2,000,000		2,495,829
					100,613,175
Georgia - 4.0%
Atlanta Airport Passenger Facility Charge, Revenue Bonds, Ser. C		5.00	7/1/2040	15,000,000		19,036,288
Fulton County Development Authority, Revenue Bonds, Ser. A		5.00	4/1/2034	2,800,000		3,390,034
Fulton County Development Authority, Revenue Bonds, Ser. A		5.00	4/1/2036	1,000,000		1,208,249
Georgia Municipal Electric Authority, Revenue Bonds (Plant Vogtle Unis 3 & 4 Project)		5.00	1/1/2038	1,100,000		1,356,988

14

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Georgia - 4.0% (continued)
Main Street Natural Gas, Revenue Bonds, Ser. B, 1 Month LIBOR x.67 +.75%		0.81	9/1/2023	10,250,000	a,b	10,302,103
Main Street Natural Gas, Revenue Bonds, Ser. C		4.00	9/1/2026	8,000,000	a	9,239,565
Private Colleges & Universities Authority, Revenue Bonds, Refunding (Emory University) Ser. A		5.00	10/1/2043	5,200,000		5,670,317
The Atlanta Development Authority, Revenue Bonds, Ser. A1		5.25	7/1/2040	1,750,000		2,027,742
The Burke County Development Authority, Revenue Bonds, Refunding (Oglethorpe Power) Ser. A		1.50	2/3/2025	2,000,000	a	2,063,609
					54,294,895
Hawaii - .1%
Honolulu City & County, GO, Ser. C		4.00	7/1/2039	1,000,000		1,200,937
Illinois - 8.4%
Chicago Board of Education, GO, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. A		5.00	12/1/2029	2,000,000		2,534,296
Chicago Board of Education, GO, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. C		5.00	12/1/2030	1,500,000		1,866,953
Chicago Board of Education, Revenue Bonds		5.00	4/1/2042	1,500,000		1,821,209
Chicago II Waterworks, Revenue Bonds		5.00	11/1/2028	1,000,000		1,211,076
Chicago II Waterworks, Revenue Bonds (2nd Lien Project)		5.00	11/1/2028	1,455,000		1,648,605
Chicago II Waterworks, Revenue Bonds, Refunding		5.00	11/1/2025	2,940,000		3,472,149
Chicago O'Hare International Airport, Revenue Bonds, Refunding, Ser. B		5.00	1/1/2034	7,300,000		8,373,326
Chicago O'Hare International Airport, Revenue Bonds, Refunding, Ser. D		5.25	1/1/2031	7,500,000		7,988,428
Chicago Park District, GO, Refunding (Insured; Build America Mutual) Ser. B		5.00	1/1/2029	2,895,000		3,214,340
Cook County II, GO, Refunding, Ser. A		5.00	11/15/2024	2,500,000		2,870,285
Cook County II, Revenue Bonds, Refunding		5.00	11/15/2036	5,000,000		6,153,277

15

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Illinois - 8.4% (continued)
Cook County II, Revenue Bonds, Refunding, Ser. A		4.00	11/15/2040	2,500,000		2,963,364
Greater Chicago Metropolitan Water Reclamation District, GO (Green Bond) Ser. A		5.00	12/1/2044	3,000,000		3,411,317
Greater Chicago Metropolitan Water Reclamation District, GO, Refunding, Ser. A		5.00	12/1/2024	3,000,000		3,457,365
Illinois, Revenue Bonds (Insured; Build America Mutual) Ser. A		5.00	6/15/2031	3,600,000		4,471,055
Illinois Finance Authority, Revenue Bonds (Green Bond)		4.00	7/1/2039	4,500,000		5,438,782
Illinois Finance Authority, Revenue Bonds (University of Illinois at Urbana)		5.00	10/1/2049	1,250,000		1,534,621
Illinois Finance Authority, Revenue Bonds, Refunding (Advocate Health Care Project)		4.00	11/1/2030	1,000,000		1,135,717
Illinois Finance Authority, Revenue Bonds, Refunding (OSF Healthcare System Obligated Group) Ser. A		5.00	11/15/2045	1,500,000		1,749,861
Illinois Finance Authority, Revenue Bonds, Refunding (OSF Healthcare System Obligated Group) Ser. B2		5.00	11/15/2026	2,000,000	a	2,395,528
Illinois Finance Authority, Revenue Bonds, Refunding (Rehab Institute of Chicago) Ser. A		6.00	7/1/2043	3,250,000		3,496,731
Illinois Finance Authority, Revenue Bonds, Refunding (Rush University Medical Center Obligated Group) Ser. A		5.00	11/15/2034	3,000,000		3,462,255
Illinois Finance Authority, Revenue Bonds, Refunding (The University of Chicago) Ser. A		4.00	4/1/2050	2,500,000		2,904,736
Illinois Housing Development Authority, Revenue Bonds (Insured; GNMA, FNMA, FHLMC) Ser. A		3.00	4/1/2051	4,925,000		5,394,791
Illinois Municipal Electric Agency, Revenue Bonds, Refunding, Ser. A		5.00	2/1/2032	3,900,000		4,565,471
Illinois Toll Highway Authority, Revenue Bonds, Ser. B		5.00	1/1/2036	4,000,000		4,715,114
Northern Illinois University, Revenue Bonds, Refunding (Insured; Build America Mutual) Ser. B		4.00	4/1/2035	600,000		707,664
Railsplitter Tobacco Settlement Authority, Revenue Bonds		5.00	6/1/2026	4,285,000		5,179,299

16

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Illinois - 8.4% (continued)
Sales Tax Securitization Corp., Revenue Bonds, Refunding (Insured; Build America Mutual) Ser. A		4.00	1/1/2040	6,175,000		7,302,774
Sales Tax Securitization Corp., Revenue Bonds, Refunding, Ser. A		4.00	1/1/2039	1,500,000		1,770,009
University of Illinois, Revenue Bonds, Refunding (Auxiliary Facilities System) Ser. A		5.00	4/1/2027	7,500,000		8,030,828
					115,241,226
Indiana - 3.2%
Ball University, Revenue Bonds, Refunding, Ser. S		4.00	7/1/2035	1,200,000		1,426,159
Indiana Finance Authority, Revenue Bonds (CWA Authority Project) (Green Bond) Ser. A		5.00	10/1/2030	1,750,000		2,132,443
Indiana Finance Authority, Revenue Bonds (CWA Authority Project) (Green Bond) Ser. A		5.00	10/1/2029	1,225,000		1,495,705
Indiana Finance Authority, Revenue Bonds (CWA Authority Project) (Green Bond) Ser. A		5.00	10/1/2028	1,150,000		1,407,489
Indiana Finance Authority, Revenue Bonds, Refunding (Community Health Network Obligated Group) Ser. A		5.00	5/1/2023	10,000,000	e	10,807,407
Indiana Finance Authority, Revenue Bonds, Refunding (CWA Authority Project)		5.00	10/1/2032	2,750,000		3,746,353
Indiana Health Facility Financing Authority, Revenue Bonds (Ascension Health Credit Group)		5.00	11/15/2036	3,890,000		4,566,080
Indiana Municipal Power Agency, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2032	1,285,000		1,471,851
Indiana Municipal Power Agency, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2036	3,765,000		4,519,151
Indiana Municipal Power Agency, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2037	7,500,000		8,998,213
Richmond Hospital Authority, Revenue Bonds, Refunding (Reid Hospital & Health Care Services Obligated Group) Ser. A		5.00	1/1/2035	3,400,000		3,781,667
					44,352,518
Iowa - 1.4%
Iowa Finance Authority, Revenue Bonds (Genesis Health System Obligated Group)		5.00	7/1/2023	2,500,000		2,719,631

17

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Iowa - 1.4% (continued)
Iowa Finance Authority, Revenue Bonds, Refunding (Insured; GNMA, FNMA, FHLMC) Ser. A		3.00	1/1/2047	4,850,000		5,309,994
Iowa Finance Authority, Revenue Bonds, Refunding (Unitypoint Health) Ser. E		5.00	8/15/2033	5,105,000		6,081,278
Iowa Tobacco Settlement Authority, Revenue Bonds, Refunding, Ser. B1		4.00	6/1/2049	2,000,000		2,318,030
PEFA, Revenue Bonds (PEFA Gas Project)		5.00	9/1/2026	2,000,000	a	2,405,338
					18,834,271
Kentucky - 2.0%
Kentucky Economic Development Finance Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. A		5.00	12/1/2047	3,500,000		3,689,337
Kentucky Public Energy Authority, Revenue Bonds, Ser. A		4.00	4/1/2024	975,000	a	1,061,288
Kentucky Public Energy Authority, Revenue Bonds, Ser. A		4.00	6/1/2026	2,500,000	a	2,872,488
Kentucky Public Energy Authority, Revenue Bonds, Ser. B		4.00	1/1/2025	15,750,000	a	17,434,122
Louisville & Jefferson County Metropolitan Government, Revenue Bonds (Norton Healthcare Obligated Group) Ser. D		5.00	10/1/2029	1,970,000	a	2,564,219
					27,621,454
Louisiana - 2.3%
Lafayette Utilities, Revenue Bonds (Insured; Assured Guaranty Municipal Corp.)		5.00	11/1/2044	1,500,000		1,866,996
Louisiana Public Facilities Authority, Revenue Bonds (Franciscan Missionaries of Our Lady Health System Obligated Group) Ser. A		5.00	7/1/2047	4,250,000		5,078,004
Louisiana Public Facilities Authority, Revenue Bonds, Refunding (Ochsner Clinic Foundation Obligated Group) Ser. B		5.00	5/15/2025	5,400,000	a	6,277,155
New Orleans Aviation Board, Revenue Bonds (General Airport-N Terminal Project) Ser. A		5.00	1/1/2048	3,500,000		4,211,204

18

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Louisiana - 2.3% (continued)
New Orleans Aviation Board, Revenue Bonds (Parking Facilities Corp.) (Insured; Assured Guaranty Municipal Corp.)		5.00	10/1/2048	2,375,000		2,867,912
New Orleans Aviation Board, Revenue Bonds, Refunding (Consolidated Rental Car Project) (Insured; Assured Guaranty Municipal Corp.)		5.00	1/1/2038	1,500,000		1,830,985
New Orleans Aviation Board, Revenue Bonds, Ser. A		5.00	1/1/2045	3,250,000		3,713,928
St. John the Baptist Parish, Revenue Bonds, Refunding (Marathon Oil Corp.)		2.20	7/1/2026	1,000,000	a	1,057,416
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. A		5.25	5/15/2035	4,745,000		5,106,388
					32,009,988
Maryland - .8%
Maryland Health & Higher Educational Facilities Authority, Revenue Bonds, Refunding (MedStar Health Obligated Group)		5.00	8/15/2038	1,000,000		1,147,410
Maryland Health & Higher Educational Facilities Authority, Revenue Bonds, Refunding (University of Maryland Medical System Obligated Group) Ser. B2		5.00	7/1/2027	4,000,000	a	4,867,227
Prince George's County, GO, Ser. A		5.00	7/15/2031	2,265,000		2,890,474
Prince George's County, Revenue Bonds (National Harbor Project)		5.20	7/1/2034	2,300,000		2,320,090
					11,225,201
Massachusetts - 1.1%
Massachusetts Development Finance Agency, Revenue Bonds, Refunding (Partners Healthcare System)		5.00	7/1/2031	4,710,000		5,685,077
Massachusetts Development Finance Agency, Revenue Bonds, Refunding (Partners Healthcare System)		5.00	7/1/2030	4,420,000		5,339,727
Massachusetts Development Finance Agency, Revenue Bonds, Refunding, Ser. A		5.00	7/1/2044	1,000,000		1,211,520
Massachusetts Transportation Trust Fund Metropolitan Highway System, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2034	2,500,000		3,149,667
					15,385,991

19

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Michigan - 3.8%
Detroit High School Academy, Revenue Bonds		5.75	11/1/2035	715,000		717,317
Great Lakes Water Authority, Revenue Bonds, Ser. B		5.00	7/1/2046	10,000,000		11,855,282
Karegnondi Water Authority, Revenue Bonds, Refunding		5.00	11/1/2041	2,620,000		3,199,235
Lansing Board of Water & Light, Revenue Bonds, Ser. B		2.00	7/1/2026	3,000,000	a	3,192,478
Michigan Building Authority, Revenue Bonds, Refunding, Ser. I		5.00	10/15/2045	5,000,000		5,799,081
Michigan Finance Authority, Revenue Bonds, Refunding (Great Lakes Water Authority) (Insured; Assured Guaranty Municipal Corp.) Ser. C3		5.00	7/1/2032	500,000		564,024
Michigan Finance Authority, Revenue Bonds, Refunding (Great Lakes Water Authority) (Insured; Assured Guaranty Municipal Corp.) Ser. C3		5.00	7/1/2030	1,500,000		1,699,349
Michigan Finance Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. D1		5.00	7/1/2035	1,520,000		1,710,504
Michigan Finance Authority, Revenue Bonds, Refunding (Trinity Health Credit Obligated Group) Ser. A		5.00	12/1/2042	1,000,000		1,231,571
Michigan Finance Authority, Revenue Bonds, Refunding (Trinity Health Credit Obligated Group) Ser. MI1		5.00	12/1/2048	5,000,000		6,194,298
Michigan Finance Authority, Revenue Bonds, Refunding, Ser. D1		5.00	7/1/2035	1,190,000		1,382,343
Michigan Finance Authority, Revenue Bonds, Ser. B		5.00	10/1/2028	1,180,000		1,525,406
Monroe County Economic Development Corp., Revenue Bonds, Refunding (Insured; National Public Finance Guarantee Corp.) Ser. AA		6.95	9/1/2022	2,000,000		2,133,201
Pontiac School District, GO		4.00	5/1/2050	2,665,000		3,146,843
Wayne County Airport Authority, Revenue Bonds (Detroit Metropolitan Wayne County Airport)		5.00	12/1/2038	5,000,000		6,314,472

20

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Michigan - 3.8% (continued)
Wayne County Airport Authority, Revenue Bonds, Ser. D		5.00	12/1/2029	1,700,000		2,016,164
					52,681,568
Minnesota - .6%
Minnesota Housing Finance Agency, Revenue Bonds (Insured; GNMA, FNMA, FHLMC) Ser. E		3.50	7/1/2050	2,905,000		3,212,092
Southern Minnesota Municipal Power Agency, Revenue Bonds, Refunding (Insured; National Public Finance Guarantee Corp.) Ser. A		0.00	1/1/2025	4,505,000	f	4,404,370
					7,616,462
Mississippi - .4%
Mississippi Home Corp., Revenue Bonds, Refunding (Insured; GNMA, FNMA, FHLMC) Ser. A		3.75	6/1/2049	4,410,000		4,861,580
Missouri - .9%
Missouri Joint Municipal Electric Utility Commission, Revenue Bonds, Refunding (Prairie State Project) Ser. A		5.00	12/1/2031	2,310,000		2,694,354
The Missouri Health & Educational Facilities Authority, Revenue Bonds, Refunding (CoxHealth Obligated Group) Ser. A		5.00	11/15/2030	3,000,000		3,483,566
The Missouri Health & Educational Facilities Authority, Revenue Bonds, Refunding (SSM Health Care Obligated Group) Ser. A		5.00	6/1/2029	4,000,000		4,496,614
The Missouri Health & Educational Facilities Authority, Revenue Bonds, Refunding (St. Lukes Health System Obligated Group) Ser. A		5.00	11/15/2043	1,000,000		1,223,412
					11,897,946
Multi-State - .2%
Federal Home Loan Mortgage Corp. Multifamily Variable Rate Certificates, Revenue Bonds, Ser. M048		3.15	1/15/2036	2,375,000	d	2,644,472
Nebraska - .9%
Public Power Generation Agency, Revenue Bonds, Refunding		5.00	1/1/2038	3,655,000		4,342,494
Public Power Generation Agency, Revenue Bonds, Refunding		5.00	1/1/2037	5,050,000		6,008,566

21

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Nebraska - .9% (continued)
Public Power Generation Agency, Revenue Bonds, Refunding (Whelan Energy Center Unit)		5.00	1/1/2030	1,380,000		1,579,102
					11,930,162
Nevada - 1.2%
Clark County, GO		5.00	11/1/2023	8,410,000	e	9,290,840
Clark County School District, GO (Insured; Assured Guaranty Municipal Corp.) Ser. A		4.00	6/15/2037	1,700,000		2,038,052
Las Vegas Valley Water District, GO, Ser. B		5.00	6/1/2042	2,500,000		2,582,900
Reno, Revenue Bonds, Refunding (Reno Transportation Rail Access Project)		5.00	6/1/2048	2,000,000		2,334,095
					16,245,887
New Hampshire - .2%
New Hampshire Business Finance Authority, Revenue Bonds, Refunding (Covanta Project) Ser. B		4.63	11/1/2042	2,000,000	d	2,107,185
New Jersey - 3.7%
New Jersey, GO (COVID-19 Emergency Bonds) Ser. A		4.00	6/1/2030	1,000,000		1,238,260
New Jersey Economic Development Authority, Revenue Bonds, Refunding, Ser. NN		5.00	3/1/2028	2,250,000		2,407,102
New Jersey Economic Development Authority, Revenue Bonds, Refunding, Ser. WW		5.25	6/15/2029	1,400,000		1,643,904
New Jersey Economic Development Authority, Revenue Bonds, Refunding, Ser. WW		5.25	6/15/2031	4,000,000		4,691,939
New Jersey Economic Development Authority, Revenue Bonds, Refunding, Ser. XX		5.25	6/15/2027	3,500,000		4,114,081
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Refunding (Virtua Health Obligated Group)		5.00	7/1/2029	1,000,000		1,106,281
New Jersey Transportation Trust Fund Authority, Revenue Bonds, Ser. BB		5.00	6/15/2044	2,000,000		2,463,711
New Jersey Turnpike Authority, Revenue Bonds, Refunding, Ser. D		5.00	1/1/2028	2,000,000		2,407,809

22

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
New Jersey - 3.7% (continued)
The Camden County Improvement Authority, Revenue Bonds, Refunding (Rowan University Foundation Project) (Insured; Build America Mutual) Ser. A		5.00	7/1/2034	6,360,000		8,262,782
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. A		5.00	6/1/2046	13,655,000		16,409,588
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. A		5.00	6/1/2036	5,000,000		6,183,199
					50,928,656
New Mexico - .1%
New Mexico Mortgage Finance Authority, Revenue Bonds (Insured; GNMA, FNMA, FHLMC) Ser. C		3.00	1/1/2052	1,500,000		1,653,570
New York - 8.8%
Long Island Power Authority, Revenue Bonds, Refunding, Ser. A		5.00	9/1/2038	1,100,000		1,436,791
Metropolitan Transportation Authority, Revenue Bonds, Refunding (Green Bond) Ser. C1		5.00	11/15/2050	5,000,000		6,116,494
Metropolitan Transportation Authority Hudson Rail Yards Trust, Revenue Bonds, Refunding, Ser. A		5.00	11/15/2051	5,000,000		5,047,058
Nassau County Interim Finance Authority, Revenue Bonds, Refunding, Ser. A		4.00	11/15/2032	2,135,000		2,716,024
New York City, GO, Refunding, Ser. A1		5.00	8/1/2027	6,200,000		7,767,001
New York City, GO, Ser. C		4.00	8/1/2041	3,000,000		3,562,847
New York City, GO, Ser. D1		4.00	3/1/2050	3,500,000		4,052,701
New York City, GO, Ser. D1		4.00	3/1/2041	2,000,000		2,358,961
New York City Health & Hospitals Corp., Revenue Bonds, Refunding, Ser. A		5.00	2/15/2028	2,250,000		2,849,003
New York City Housing Development Corp., Revenue Bonds (Sustainable Development Bond) (LOC; Federal Housing Administration) Ser. F2		0.60	7/1/2025	1,000,000	a	1,003,742
New York City Industrial Development Agency, Revenue Bonds, Refunding (Queens Baseball Stadium Project) (Insured; Assured Guaranty Municipal Corp.) Ser. A		4.00	1/1/2032	1,000,000		1,239,005

23

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
New York - 8.8% (continued)
New York City Industrial Development Agency, Revenue Bonds, Refunding (Queens Baseball Stadium Project) (Insured; Assured Guaranty Municipal Corp.) Ser. A		5.00	1/1/2029	1,500,000		1,929,692
New York City Industrial Development Agency, Revenue Bonds, Refunding (Yankee Stadium Project) (Insured; Assured Guaranty Municipal Corp.)		5.00	3/1/2029	1,250,000		1,617,130
New York City Transitional Finance Authority, Revenue Bonds		4.00	5/1/2037	1,000,000		1,210,607
New York City Transitional Finance Authority, Revenue Bonds (Insured; State Aid Withholding) Ser. S1		5.00	7/15/2037	5,340,000		6,322,130
New York City Transitional Finance Authority, Revenue Bonds, Ser. D		4.00	11/1/2035	5,000,000		6,106,671
New York City Transitional Finance Authority, Revenue Bonds, Ser. D		5.00	11/1/2025	1,835,000		2,190,551
New York City Water & Sewer System, Revenue Bonds, Ser. DD1		4.00	6/15/2050	3,250,000		3,784,834
New York Liberty Development Corp., Revenue Bonds, Refunding (Class 1-3 World Trade Center Project)		5.00	11/15/2044	4,000,000	d	4,422,863
New York Liberty Development Corp., Revenue Bonds, Refunding (Goldman Sachs Headquarters)		5.25	10/1/2035	2,500,000		3,594,444
New York State Dormitory Authority, Revenue Bonds (Insured; Assured Guaranty Municipal Corp.) Ser. A		5.00	10/1/2034	4,250,000		5,380,117
New York State Dormitory Authority, Revenue Bonds, Refunding, Ser. A		5.25	3/15/2037	3,000,000		3,845,830
New York State Dormitory Authority, Revenue Bonds, Refunding, Ser. D		5.00	2/15/2028	1,710,000		2,180,714
New York State Dormitory Authority, Revenue Bonds, Ser. B		5.00	2/15/2031	5,000,000		5,768,579
New York State Thruway Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. B		4.00	1/1/2050	5,000,000		5,863,226

24

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
New York - 8.8% (continued)
New York State Urban Development Corp., Revenue Bonds (State of New York Personal Income Tax) Ser. A		5.00	3/15/2036	1,750,000		2,292,020
New York State Urban Development Corp., Revenue Bonds, Refunding (State of New York Personal Income Tax)		4.00	3/15/2039	5,000,000		5,970,737
New York Transportation Development Corp., Revenue Bonds, Refunding (JFK International Air Terminal)		5.00	12/1/2035	1,750,000		2,252,716
Onondaga Civic Development Corp., Revenue Bonds, Refunding (Syracuse University Project) Ser. A		5.00	12/1/2031	2,145,000		2,846,848
Port Authority of New York & New Jersey, Revenue Bonds, Ser. 184		5.00	9/1/2039	5,000,000		5,658,491
Town of Oyster Bay, GO, Refunding (Insured; Assured Guaranty Municipal Corp.)		4.00	3/1/2025	1,145,000		1,285,551
Triborough Bridge & Tunnel Authority, Revenue Bonds, Refunding, Ser. C2		5.00	11/15/2042	5,000,000		6,176,898
Triborough Bridge & Tunnel Authority, Revenue Bonds, Ser. A		5.00	11/15/2049	1,000,000		1,286,739
					120,137,015
North Carolina - 3.3%
Charlotte, COP, Refunding		5.00	6/1/2034	2,370,000		3,039,506
Charlotte Airport Special Facilities, Revenue Bonds, Ser. A		5.00	7/1/2042	3,000,000		3,699,442
North Carolina Housing Finance Agency, Revenue Bonds, Refunding (Insured; GNMA, FNMA, FHLMC) Ser. 45		3.00	7/1/2051	6,260,000		6,836,868
North Carolina Medical Care Commission, Revenue Bonds (Caromont Health Obligated Group) Ser. B		5.00	2/1/2026	2,250,000	a	2,695,617
North Carolina Medical Care Commission, Revenue Bonds (Twin Lakes Community) Ser. A		5.00	1/1/2044	2,000,000		2,322,786
North Carolina Medical Care Commission, Revenue Bonds, Refunding (Vidant Health Obligated Group)		5.00	6/1/2025	3,050,000	e	3,581,247
North Carolina Turnpike Authority, BAN		5.00	2/1/2024	7,500,000		8,322,610

25

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
North Carolina - 3.3% (continued)
North Caroline Turnpike Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.)		5.00	1/1/2029	1,775,000		2,159,553
The Charlotte-Mecklenburg Hospital Authority, Revenue Bonds (Atrium Health Obligated Group) Ser. B		5.00	12/2/2024	11,000,000	a	12,689,825
					45,347,454
North Dakota - .2%
University of North Dakota, COP (Insured; Assured Guaranty Municipal Corp.) Ser. A		4.00	6/1/2051	2,500,000		2,875,450
Ohio - 2.7%
Allen County Hospital Facilities, Revenue Bonds, Refunding (Catholic Health Partners) Ser. A		5.00	5/1/2022	5,000,000	e	5,162,893
Buckeye Tobacco Settlement Financing Authority, Revenue Bonds, Refunding, Ser. A2		4.00	6/1/2048	7,500,000		8,620,161
Cleveland Airport System, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. A		5.00	1/1/2031	1,000,000		1,149,898
Cuyahoga County, Revenue Bonds, Refunding (The MetroHealth System)		5.25	2/15/2047	2,000,000		2,389,211
Ohio, GO, Ser. A		5.00	5/1/2032	5,000,000		5,830,474
Ohio, Revenue Bonds, Refunding, Ser. A		5.00	1/15/2036	1,045,000		1,330,915
Ohio, Revenue Bonds, Refunding, Ser. A		5.00	1/15/2037	1,315,000		1,670,012
Ohio Higher Educational Facility Commission, Revenue Bonds, Refunding (Case Western Reserve University Project) (Insured; National Public Finance Guarantee Corp.)		5.25	12/1/2025	2,985,000		3,581,167
Ohio Housing Finance Agency, Revenue Bonds (Insured; GNMA, FNMA, FHLMC) Ser. A		3.75	9/1/2050	4,870,000		5,467,147
Ohio Turnpike & Infrastructure Commission, Revenue Bonds (Infrastructure Projects) Ser. A1		5.25	2/15/2039	2,000,000		2,141,145
The Ohio University, Revenue Bonds, Refunding, Ser. D		5.00	12/1/2023	40,000		44,303
					37,387,326

26

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Oregon - .3%
Benton & Linn Counties Consolidated School District No. 509J & 509A, GO (Insured; School Board Guaranty) Ser. A		5.00	6/15/2038	1,750,000		2,181,966
Medford Hospital Facilities Authority, Revenue Bonds, Refunding (Asante Project) Ser. A		5.00	8/15/2045	2,000,000		2,553,787
					4,735,753
Pennsylvania - 7.6%
Allegheny County Hospital Development Authority, Revenue Bonds, Refunding (UPMC Obligated Group) Ser. A		4.00	7/15/2035	1,850,000		2,200,156
Allentown School District, GO, Refunding (Insured; Build America Mutual) Ser. B		5.00	2/1/2030	2,300,000		2,989,079
Centre County Hospital Authority, Revenue Bonds, Refunding (Mount Nittany Medical Center Obligated Group) Ser. A		5.00	11/15/2046	1,750,000		2,042,291
Commonwealth Financing Authority, Revenue Bonds		5.00	6/1/2032	3,500,000		4,338,240
Commonwealth Financing Authority, Revenue Bonds		5.00	6/1/2031	1,250,000		1,553,768
Delaware Valley Regional Finance Authority, Revenue Bonds, Ser. C, 1 Month MUNIPSA +.53%		0.55	9/1/2023	8,000,000	a,b	7,993,983
Geisinger Authority, Revenue Bonds, Refunding (Geisinger Health System Obligated Group)		5.00	2/15/2027	3,000,000	a	3,637,451
Lancaster County Hospital Authority, Revenue Bonds, Refunding (The University of Pennsylvania Health System Obligated Group)		5.00	8/15/2046	9,185,000		10,894,716
Montgomery County Industrial Development Authority, Revenue Bonds, Refunding (ACTS Retirement-Life Communities Obligated Group)		5.00	11/15/2036	5,000,000		5,897,315
Pennsylvania Economic Development Financing Authority, Revenue Bonds, Refunding (UPMC Obligated Group)		4.00	3/15/2034	1,000,000		1,143,028
Pennsylvania Economic Development Financing Authority, Revenue Bonds, Refunding (UPMC Obligated Group) Ser. A		5.00	10/15/2031	2,400,000		3,254,142

27

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Pennsylvania - 7.6% (continued)
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. AX		5.00	6/15/2028	4,610,000		5,860,717
Pennsylvania Turnpike Commission, Revenue Bonds, Refunding		5.00	12/1/2026	3,750,000		4,609,219
Pennsylvania Turnpike Commission, Revenue Bonds, Refunding, Ser. B		5.00	6/1/2024	5,000,000		5,647,211
Pennsylvania Turnpike Commission, Revenue Bonds, Ser. B		5.00	12/1/2035	2,000,000		2,355,646
Pennsylvania Turnpike Commission, Revenue Bonds, Ser. B		5.25	12/1/2048	4,000,000		5,045,766
Philadelphia, GO, Ser. A		5.00	5/1/2032	3,500,000		4,680,191
Philadelphia Airport, Revenue Bonds, Refunding, Ser. A		5.00	7/1/2047	5,040,000		6,176,534
Philadelphia Water & Wastewater, Revenue Bonds, Refunding		5.00	10/1/2032	4,460,000		5,992,208
Public School Building Authority, Revenue Bonds (The Philadelphia School District) (Insured; State Aid Withholding)		5.00	4/1/2022	1,100,000	e	1,130,684
The Philadelphia School District, GO (Insured; State Aid Withholding) Ser. A		5.00	9/1/2044	8,500,000		10,657,415
The Philadelphia School District, GO (Insured; State Aid Withholding) Ser. A		5.00	9/1/2038	1,000,000		1,239,072
The Philadelphia School District, GO, Refunding (Insured; State Aid Withholding) Ser. F		5.00	9/1/2035	3,500,000		4,193,961
					103,532,793
South Carolina - 2.3%
South Carolina Jobs-Economic Development Authority, Revenue Bonds, Refunding (ACTS Retirement-Life Communities Obligated Group)		5.00	11/15/2047	5,500,000		6,374,453
South Carolina Ports Authority, Revenue Bonds, Ser. A		5.00	7/1/2044	10,380,000		12,954,164
South Carolina Public Service Authority, Revenue Bonds, Refunding (Santee Cooper Project) Ser. B		5.13	12/1/2043	7,500,000		8,260,690
South Carolina Public Service Authority, Revenue Bonds, Refunding (Santee Cooper Project) Ser. C		5.00	12/1/2036	2,500,000		2,530,016

28

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
South Carolina - 2.3% (continued)
South Carolina Public Service Authority, Revenue Bonds, Refunding, Ser. A		5.00	12/1/2025	800,000		953,614
					31,072,937
South Dakota - .3%
South Dakota Housing Development Authority, Revenue Bonds, Refunding, Ser. A		3.75	11/1/2050	3,650,000		4,042,791
Tennessee - .9%
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, Revenue Bonds, Refunding (Lipscomb University Project)		5.00	10/1/2036	1,000,000		1,246,635
Metropolitan Government of Nashville & Davidson County, GO, Refunding, Ser. C		4.00	1/1/2032	1,000,000		1,263,073
Tennergy Corp., Revenue Bonds, Ser. A		4.00	9/1/2028	4,000,000	a	4,780,200
Tennessee Energy Acquisition Corp., Revenue Bonds		4.00	11/1/2025	2,700,000	a	3,061,409
Tennessee Housing Development Agency, Revenue Bonds, Refunding, Ser. 3A		3.50	7/1/2050	1,545,000		1,709,952
					12,061,269
Texas - 7.2%
Austin Water & Wastewater System, Revenue Bonds, Refunding, Ser. A		5.00	11/15/2043	8,100,000		8,718,244
Central Texas Regional Mobility Authority, BAN, Ser. F		5.00	1/1/2025	2,000,000		2,256,287
Central Texas Regional Mobility Authority, Revenue Bonds, Refunding		5.00	1/1/2028	1,500,000		1,776,847
Central Texas Turnpike System, Revenue Bonds, Refunding, Ser. C		5.00	8/15/2031	2,500,000		2,817,717
Collin County Community College District, GO, Ser. A		4.00	8/15/2034	1,500,000		1,828,613
Corpus Christi Utility System, Revenue Bonds, Refunding, Ser. A		4.00	7/15/2037	1,250,000		1,518,067
Dallas, GO, Refunding		5.00	2/15/2030	2,000,000		2,218,590
Dallas Fort Worth International Airport, Revenue Bonds, Refunding, Ser. A		4.00	11/1/2035	2,000,000		2,463,911
Denton Independent School District, GO, Refunding (Insured; Permanent School Fund Guarantee Program)		5.00	8/15/2029	2,000,000		2,391,235

29

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Texas - 7.2% (continued)
Garland Electric Utility System, Revenue Bonds, Refunding		5.00	3/1/2044	2,500,000		3,071,429
Grand Parkway Transportation Corp., Revenue Bonds, Refunding		4.00	10/1/2049	5,000,000		5,809,839
Harris County Cultural Education Facilities Finance Corp., Revenue Bonds, Refunding (Baylor College of Medicine)		5.00	11/15/2024	4,135,000		4,738,884
Houston Airport System, Revenue Bonds, Refunding, Ser. D		5.00	7/1/2039	4,000,000		4,983,326
Hurst-Euless-Bedford Independent School District, GO (Insured; Permanent School Fund Guarantee Program)		4.00	8/15/2035	1,400,000		1,687,832
Lower Colorado River Authority, Revenue Bonds, Refunding		5.00	5/15/2039	4,500,000		4,834,674
Lower Colorado River Authority, Revenue Bonds, Refunding		5.00	5/15/2032	800,000		930,921
Lower Colorado River Authority, Revenue Bonds, Refunding (LCRA Transmission Services Corp.)		5.00	5/15/2046	3,800,000		4,457,183
Lower Colorado River Authority, Revenue Bonds, Refunding (LCRA Transmission Services Corp.) Ser. A		4.00	5/15/2049	1,500,000		1,679,133
North Texas Tollway Authority, Revenue Bonds, Refunding		5.00	1/1/2048	1,500,000		1,798,056
North Texas Tollway Authority, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2038	5,815,000		6,622,336
North Texas Tollway Authority, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2039	5,500,000		6,498,741
North Texas Tollway Authority, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2038	1,925,000		2,045,046
North Texas Tollway Authority, Revenue Bonds, Refunding, Ser. B		5.00	1/1/2031	1,040,000		1,218,813
San Antonio Texas Electric & Gas Systems, Revenue Bonds, Refunding, Ser. A		5.00	2/1/2037	1,750,000		2,305,963
Socorro Independent School District, GO, Refunding (Insured; Permanent School Fund Guarantee Program) Ser. A		5.00	8/15/2024	3,705,000	e	4,230,672
Tarrant County College District, GO		5.00	8/15/2024	2,000,000		2,283,125
Tarrant County Cultural Education Facilities Finance Corp., Revenue Bonds, Refunding (Baylor Scott & White Health Obligated Group) Ser. A		5.00	11/15/2045	2,500,000		2,939,483

30

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Texas - 7.2% (continued)
Tarrant County Cultural Education Facilities Finance Corp., Revenue Bonds, Refunding (Cook Children's Medical Center Obligated Group)		5.00	12/1/2033	1,750,000		2,267,253
Texas Department of Housing & Community Affairs, Revenue Bonds (Insured; Government National Mortgage Association) Ser. A		3.50	3/1/2051	1,985,000		2,230,683
Texas Public Finance Authority, Revenue Bonds, Refunding		4.00	2/1/2036	2,675,000		3,194,763
West Harris County Regional Water Authority, Revenue Bonds, Refunding		4.00	12/15/2045	2,750,000		3,232,479
					99,050,145
U.S. Related - .3%
Puerto Rico Highway & Transportation Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Corp.) Ser. L		5.25	7/1/2041	3,700,000		4,250,229
Utah - .3%
Salt Lake City Airport, Revenue Bonds, Ser. B		5.00	7/1/2037	1,000,000		1,221,668
Salt Lake City Airport, Revenue Bonds, Ser. B		5.00	7/1/2036	1,350,000		1,649,281
Utah Charter School Finance Authority, Revenue Bonds		5.00	10/15/2043	1,150,000		1,350,257
					4,221,206
Virginia - 1.3%
Fairfax County, Revenue Bonds, Refunding, Ser. B		3.00	7/15/2036	3,585,000		4,084,398
Virginia College Building Authority, Revenue Bonds		4.00	2/1/2036	2,015,000		2,440,511
Virginia Public Building Authority, Revenue Bonds, Ser. A2		4.00	8/1/2035	7,000,000		8,747,075
Winchester Economic Development Authority, Revenue Bonds, Refunding (Valley Health System Obligated Group)		5.00	1/1/2035	1,560,000		1,817,759
					17,089,743
Washington - 1.6%
Grant County Public Utility District No. 2, Revenue Bonds, Refunding, Ser. R		2.00	12/1/2025	3,500,000	a	3,708,511

31

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Washington - 1.6% (continued)
Port of Seattle, Revenue Bonds, Refunding, Ser. B		5.00	3/1/2035	3,000,000		3,385,520
Spokane Water & Wastewater, Revenue Bonds (Green Bond)		4.00	12/1/2031	3,000,000		3,337,647
Washington, GO, Ser. A		5.00	8/1/2036	3,290,000		4,172,563
Washington Health Care Facilities Authority, Revenue Bonds, Refunding (Providence Health & Services) Ser. A		5.00	10/1/2042	5,000,000		5,254,362
Washington Housing Finance Commission, Revenue Bonds, Ser. A1		3.50	12/20/2035	1,993,074		2,342,121
					22,200,724
West Virginia - .3%
West Virginia University, Revenue Bonds (West Virginia University Projects) Ser. B		5.00	10/1/2021	4,500,000	e	4,517,791
Wisconsin - 1.9%
Public Finance Authority, Revenue Bonds (KU Campus Development Corp. Project)		5.00	3/1/2035	7,000,000		8,252,796
Public Finance Authority, Revenue Bonds, Refunding (Renown Regional Medical Center) Ser. A		5.00	6/1/2040	4,000,000		4,668,122
Public Finance Authority, Revenue Bonds, Refunding (WakeMed Hospital Obligated Group) Ser. A		5.00	10/1/2044	3,110,000		3,805,945
Wisconsin Health & Educational Facilities Authority, Revenue Bonds, Refunding (Advocate Aurora Health Obligated Group)		5.00	7/29/2026	2,000,000	a	2,433,684
Wisconsin Health & Educational Facilities Authority, Revenue Bonds, Refunding (Ascension Health Credit Group) Ser. A		5.00	11/15/2026	1,000,000		1,208,590

32

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.3%(continued)
Wisconsin - 1.9% (continued)
Wisconsin Health & Educational Facilities Authority, Revenue Bonds, Refunding (Ascension Senior Credit Group) Ser. A		5.00	11/15/2029	4,500,000		5,424,682
					25,793,819
TotalLong-Term Municipal Investments (cost $1,263,219,568)				1,347,011,963
Total Investments (cost $1,266,410,165)				98.5%	1,350,325,250
Cash and Receivables (Net)				1.5%	19,952,020
Net Assets				100.0%	1,370,277,270

^aThese securities have a put feature; the date shown represents the put date and the bond holder can take a specific action to retain the bond after the put date.

^bVariable rate security—interest rate resets periodically and rate shown is the interest rate in effect at period end. Security description also includes the reference rate and spread if published and available.

^cZero coupon until a specified date at which time the stated coupon rate becomes effective until maturity.

^dSecurity exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2021, these securities were valued at $12,346,594 or .9% of net assets.

^eThese securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on the municipal issue and to retire the bonds in full at the earliest refunding date.

^fSecurity issued with a zero coupon. Income is recognized through the accretion of discount.

33

STATEMENT OF INVESTMENTS (continued)

Portfolio Summary (Unaudited) †	Value (%)
Medical	15.6
General	14.7
Transportation	11.6
Water	7.8
Education	7.5
Airport	7.3
General Obligation	7.3
Power	5.8
Tobacco Settlement	4.0
Single Family Housing	3.3
Prerefunded	3.0
School District	2.9
Development	2.2
Nursing Homes	1.8
Facilities	1.0
Multifamily Housing	.9
Utilities	.9
Special Tax	.5
Pollution	.3
Housing	.1
	98.5

^†Based on net assets.

See notes to financial statements.

34

Summary of Abbreviations (Unaudited)
ABAG	Association of Bay Area Governments	AGC	ACE Guaranty Corporation
AGIC	Asset Guaranty Insurance Company	AMBAC	American Municipal Bond Assurance Corporation
BAN	Bond Anticipation Notes	BSBY	Bloomberg Short-Term Bank Yield Index
CIFG	CDC Ixis Financial Guaranty	COP	Certificate of Participation
CP	Commercial Paper	DRIVERS	Derivative Inverse Tax-Exempt Receipts
EFFR	Effective Federal Funds Rate	FGIC	Financial Guaranty Insurance Company
FHA	Federal Housing Administration	FHLB	Federal Home Loan Bank
FHLMC	Federal Home Loan Mortgage Corporation	FNMA	Federal National Mortgage Association
GAN	Grant Anticipation Notes	GIC	Guaranteed Investment Contract
GNMA	Government National Mortgage Association	GO	General Obligation
IDC	Industrial Development Corporation	LIBOR	London Interbank Offered Rate
LOC	Letter of Credit	LR	Lease Revenue
NAN	Note Anticipation Notes	MFHR	Multi-Family Housing Revenue
MFMR	Multi-Family Mortgage Revenue	MUNIPSA	Securities Industry and Financial Markets Association Municipal Swap Index Yield
OBFR	Overnight Bank Funding Rate	PILOT	Payment in Lieu of Taxes
PRIME	Prime Lending Rate	PUTTERS	Puttable Tax-Exempt Receipts
RAC	Revenue Anticipation Certificates	RAN	Revenue Anticipation Notes
RIB	Residual Interest Bonds	SFHR	Single Family Housing Revenue
SFMR	Single Family Mortgage Revenue	SOFR	Secured Overnight Financing Rate
TAN	Tax Anticipation Notes	TRAN	Tax and Revenue Anticipation Notes
U.S. T-Bill	U.S. Treasury Bill Money Market Yield	XLCA	XL Capital Assurance

See notes to financial statements.

35

STATEMENT OF ASSETS AND LIABILITIES

August 31, 2021

	Cost	Value
Assets ($):
Investments in securities—See Statement of Investments	1,266,410,165	1,350,325,250
Cash		4,288,784
Interest receivable		13,314,311
Receivable for shares of Common Stock subscribed		5,145,589
Prepaid expenses		53,506
		1,373,127,440
Liabilities ($):
Due to BNY Mellon Investment Adviser, Inc. and affiliates—Note 3(c)		566,724
Payable for shares of Common Stock redeemed		1,160,702
Payable for investment securities purchased		953,320
Directors’ fees and expenses payable		32,925
Other accrued expenses		136,499
		2,850,170
Net Assets ($)		1,370,277,270
Composition of Net Assets ($):
Paid-in capital		1,283,845,764
Total distributable earnings (loss)		86,431,506
Net Assets ($)		1,370,277,270

Net Asset Value Per Share	Class A	Class C	Class I	Class Y	Class Z
Net Assets ($)	406,057,441	11,656,957	797,981,843	22,933	154,558,096
Shares Outstanding	27,403,443	786,567	53,829,458	1,547	10,424,359
Net Asset Value Per Share ($)	14.82	14.82	14.82	14.82	14.83
See notes to financial statements.

36

STATEMENT OF OPERATIONS

Year Ended August 31, 2021

Investment Income ($):
Interest Income	34,845,284
Expenses:
Management fee—Note 3(a)	7,915,877
Shareholder servicing costs—Note 3(c)	1,482,062
Registration fees	131,459
Professional fees	110,837
Directors’ fees and expenses—Note 3(d)	103,502
Distribution fees—Note 3(b)	96,186
Loan commitment fees—Note 2	40,433
Prospectus and shareholders’ reports	33,389
Custodian fees—Note 3(c)	22,622
Chief Compliance Officer fees—Note 3(c)	14,319
Miscellaneous	61,461
Total Expenses	10,012,147
Less—reduction in expenses due to undertaking—Note 3(a)	(2,840,106)
Less—reduction in fees due to earnings credits—Note 3(c)	(12,185)
Net Expenses	7,159,856
Investment Income—Net	27,685,428
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments	2,311,625
Net change in unrealized appreciation (depreciation) on investments	16,849,782
Net Realized and Unrealized Gain (Loss) on Investments	19,161,407
Net Increase in Net Assets Resulting from Operations	46,846,835
See notes to financial statements.

37

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended August 31,
	2021	2020
Operations ($):
Investment income—net	27,685,428	27,019,420
Net realized gain (loss) on investments	2,311,625	1,246,756
Net change in unrealized appreciation (depreciation) on investments	16,849,782	(2,056,111)
Net Increase (Decrease) in Net Assets Resulting from Operations	46,846,835	26,210,065
Distributions ($):
Distributions to shareholders:
Class A	(7,894,914)	(9,788,312)
Class C	(152,966)	(265,814)
Class I	(16,225,394)	(14,599,603)
Class Y	(497)	(289)
Class Z	(3,358,289)	(4,491,994)
Total Distributions	(27,632,060)	(29,146,012)
Capital Stock Transactions ($):
Net proceeds from shares sold:
Class A	33,821,510	55,425,158
Class C	1,969,804	2,305,203
Class I	293,631,898	329,248,759
Class Y	-	21,160
Class Z	2,931,671	2,982,816
Distributions reinvested:
Class A	6,411,375	8,290,783
Class C	114,748	192,317
Class I	14,636,171	12,071,676
Class Y	473	259
Class Z	2,562,632	3,447,291
Cost of shares redeemed:
Class A	(45,442,925)	(55,562,816)
Class C	(4,377,625)	(4,521,943)
Class I	(168,455,733)	(155,035,453)
Class Z	(10,658,772)	(20,109,158)
Increase (Decrease) in Net Assets from Capital Stock Transactions	127,145,227	178,756,052
Total Increase (Decrease) in Net Assets	146,360,002	175,820,105
Net Assets ($):
Beginning of Period	1,223,917,268	1,048,097,163
End of Period	1,370,277,270	1,223,917,268

38

		Year Ended August 31,
		2021	2020
Capital Share Transactions (Shares):
Class Aa,b
Shares sold		2,294,554	3,831,473
Shares issued for distributions reinvested		435,306	574,357
Shares redeemed		(3,082,989)	(3,874,152)
Net Increase (Decrease) in Shares Outstanding		(353,129)	531,678
Class Ca,b
Shares sold		133,805	159,591
Shares issued for distributions reinvested		7,794	13,327
Shares redeemed		(296,868)	(314,096)
Net Increase (Decrease) in Shares Outstanding		(155,269)	(141,178)
Class Ia
Shares sold		19,920,937	22,847,159
Shares issued for distributions reinvested		992,720	835,826
Shares redeemed		(11,412,330)	(10,976,122)
Net Increase (Decrease) in Shares Outstanding		9,501,327	12,706,863
Class Y
Shares sold		-	1,424
Shares issued for distributions reinvested		32	18
Net Increase (Decrease) in Shares Outstanding		32	1,442
Class Z
Shares sold		198,964	206,829
Shares issued for distributions reinvested		173,884	238,657
Shares redeemed		(724,002)	(1,402,286)
Net Increase (Decrease) in Shares Outstanding		(351,154)	(956,800)
a	During the period ended August 31, 2021, 10,043 Class C shares representing $148,654 were exchanged for 10,044 Class I shares and 2,815 Class A shares representing $40,930 were exchanged for 2,814 Class I shares. During the period ended August 31, 2020, 301 Class A shares representing $4,434 were exchanged for 301 Class I shares.
b	During the period ended August 31, 2021, 4,043 Class C shares representing $60,131 were automatically converted to 4,044 Class A shares and during the period ended August 31, 2020, 372 Class C shares representing $5,459 were automatically converted to 372 Class A shares.
See notes to financial statements.

39

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. These figures have been derived from the fund’s financial statements.

			Year Ended August 31,
Class A Shares	2021	2020		2019	2018	2017
Per Share Data ($):
Net asset value, beginning of period	14.60	14.62		13.84	14.17	14.57
Investment Operations:
Investment income—neta	.29	.33		.36	.39	.41
Net realized and unrealized gain (loss) on investments	.22	.01		.78	(.34)	(.40)
Total from Investment Operations	.51	.34		1.14	.05	.01
Distributions:
Dividends from investment income—net	(.29)	(.33)		(.36)	(.38)	(.41)
Dividends from net realized gain on investments	-	(.03)		-	-	-
Total Distributions	(.29)	(.36)		(.36)	(.38)	(.41)
Net asset value, end of period	14.82	14.60		14.62	13.84	14.17
Total Return (%)b	3.49	2.40		8.39	.40	.11
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.92	.93		.93	.94	.94
Ratio of net expenses to average net assets	.70	.70		.70	.70	.70
Ratio of net investment income to average net assets	1.94	2.31		2.58	2.77	2.90
Portfolio Turnover Rate	5.65	20.01		17.80	29.95	13.25
Net Assets, end of period ($ x 1,000)	406,057	405,247		398,068	396,169	455,772

^aBased on average shares outstanding.

^bExclusive of sales charge.

See notes to financial statements.

40

	Year Ended August 31,
Class C Shares	2021	2020	2019	2018	2017
Per Share Data ($):
Net asset value, beginning of period	14.60	14.62	13.84	14.17	14.57
Investment Operations:
Investment income—neta	.18	.23	.26	.28	.30
Net realized and unrealized gain (loss) on investments	.22	.01	.78	(.33)	(.40)
Total from Investment Operations	.40	.24	1.04	(.05)	(.10)
Distributions:
Dividends from investment income—net	(.18)	(.23)	(.26)	(.28)	(.30)
Dividends from net realized gain on investments	-	(.03)	-	-	-
Total Distributions	(.18)	(.26)	(.26)	(.28)	(.30)
Net asset value, end of period	14.82	14.60	14.62	13.84	14.17
Total Return (%)b	2.72	1.63	7.58	(.35)	(.64)
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	1.69	1.70	1.71	1.70	1.70
Ratio of net expenses to average net assets	1.45	1.45	1.45	1.45	1.45
Ratio of net investment income to average net assets	1.20	1.57	1.84	2.01	2.15
Portfolio Turnover Rate	5.65	20.01	17.80	29.95	13.25
Net Assets, end of period ($ x 1,000)	11,657	13,753	15,837	20,570	29,663

^aBased on average shares outstanding.

^bExclusive of sales charge.

See notes to financial statements.

41

FINANCIAL HIGHLIGHTS (continued)

			Year Ended August 31,
Class I Shares	2021	2020		2019	2018	2017
Per Share Data ($):
Net asset value, beginning of period	14.61	14.63		13.85	14.17	14.58
Investment Operations:
Investment income—neta	.32	.37		.40	.42	.44
Net realized and unrealized gain (loss) on investments	.21	.01		.78	(.32)	(.41)
Total from Investment Operations	.53	.38		1.18	.10	.03
Distributions:
Dividends from investment income—net	(.32)	(.37)		(.40)	(.42)	(.44)
Dividends from net realized gain on investments	-	(.03)		-	-	-
Total Distributions	(.32)	(.40)		(.40)	(.42)	(.44)
Net asset value, end of period	14.82	14.61		14.63	13.85	14.17
Total Return (%)	3.68	2.65		8.66	.72	.29
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.67	.68		.68	.69	.69
Ratio of net expenses to average net assets	.45	.45		.45	.45	.45
Ratio of net investment income to average net assets	2.19	2.55		2.83	3.01	3.15
Portfolio Turnover Rate	5.65	20.01		17.80	29.95	13.25
Net Assets, end of period ($ x 1,000)	797,982	647,477		462,545	397,293	358,809

^aBased on average shares outstanding.

See notes to financial statements.

42

	Year Ended August 31,
Class Y Shares	2021	2020	2019	2018	2017
Per Share Data ($):
Net asset value, beginning of period	14.61	14.63	13.85	14.18	14.58
Investment Operations:
Investment income—neta	.32	.39	.40	.45	.45
Net realized and unrealized gain (loss) on investments	.22	.00b	.78	(.34)	(.40)
Total from Investment Operations	.54	.39	1.18	.11	.05
Distributions:
Dividends from investment income—net	(.33)	(.38)	(.40)	(.44)	(.45)
Dividends from net realized gain on investments	-	(.03)	-	-	-
Total Distributions	(.33)	(.41)	(.40)	(.44)	(.45)
Net asset value, end of period	14.82	14.61	14.63	13.85	14.18
Total Return (%)	3.70	2.72	8.71	.84	.46
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.85	.95	.65	.64	.61
Ratio of net expenses to average net assets	.45	.45	.45	.45	.45
Ratio of net investment income to average net assets	2.20	2.55	2.88	3.21	3.24
Portfolio Turnover Rate	5.65	20.01	17.80	29.95	13.25
Net Assets, end of period ($ x 1,000)	23	22	1	1	1

^aBased on average shares outstanding.

^bAmount represents less than $.01 per share.

See notes to financial statements.

43

FINANCIAL HIGHLIGHTS (continued)

			Year Ended August 31,
Class Z Shares	2021	2020		2019	2018	2017
Per Share Data ($):
Net asset value, beginning of period	14.61	14.63		13.85	14.18	14.58
Investment Operations:
Investment income—neta	.32	.37		.40	.42	.44
Net realized and unrealized gain (loss) on investments	.22	.01		.77	(.34)	(.40)
Total from Investment Operations	.54	.38		1.17	.08	.04
Distributions:
Dividends from investment income—net	(.32)	(.37)		(.39)	(.41)	(.44)
Dividends from net realized gain on investments	-	(.03)		-	-	-
Total Distributions	(.32)	(.40)		(.39)	(.41)	(.44)
Net asset value, end of period	14.83	14.61		14.63	13.85	14.18
Total Return (%)	3.72	2.63		8.64	.62	.34
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.69	.69		.69	.69	.70
Ratio of net expenses to average net assets	.48	.48		.47	.48	.47
Ratio of net investment income to average net assets	2.16	2.54		2.82	2.99	3.13
Portfolio Turnover Rate	5.65	20.01		17.80	29.95	13.25
Net Assets, end of period ($ x 1,000)	154,558	157,418		171,646	169,947	183,593

^aBased on average shares outstanding.

See notes to financial statements.

44

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

BNY Mellon AMT-Free Municipal Bond Fund (the “fund”) is a separate diversified series of BNY Mellon Municipal Funds, Inc. (the “Company”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering two series, including the fund. The fund’s investment objective is to seek as high a level of current income exempt from federal income tax as is consistent with the preservation of capital. BNY Mellon Investment Adviser, Inc. (the “Adviser”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. Effective September 1, 2021 (the “Effective Date”), the Adviser has engaged its affiliate, Insight North America LLC (“INA”) as the fund’s sub-investment adviser pursuant to a sub-investment advisory agreement between the Adviser and INA. As the fund’s sub-adviser, INA provides the day-to-day management of the fund’s investments, subject to the Adviser’s supervision and approval. The Adviser (and not the fund) pays INA for its sub-advisory services. As of the Effective Date, portfolio managers responsible for managing the fund’s investments who were employees of Mellon Investments Corporation (“Mellon”) in a dual employment arrangement with the Adviser, have become employees of INA and are no longer employees of Mellon.

BNY Mellon Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Adviser, is the distributor of the fund’s shares. The fund is authorized to issue 1.1 billion shares of $.001 par value Common Stock. The fund currently has authorized five classes of shares: Class A (200 million shares authorized), Class C (200 million shares authorized), Class I (200 million shares authorized), Class Y (100 million shares authorized) and Class Z (400 million shares authorized). Class A and Class C shares are sold primarily to retail investors through financial intermediaries and bear Distribution and/or Shareholder Services Plan fees. Class A shares generally are subject to a sales charge imposed at the time of purchase. Class A shares bought without an initial sales charge as part of an investment of $1 million or more may be charged a contingent deferred sales charge (“CDSC”) of 1.00% if redeemed within one year. Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase. Class C shares automatically convert to Class A shares eight years after the date of purchase, without the imposition of a sales charge. Class I shares are sold primarily to bank trust departments and other financial service providers (including The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of the Adviser, and its

45

NOTES TO FINANCIAL STATEMENTS (continued)

affiliates), acting on behalf of customers having a qualified trust or an investment account or relationship at such institution, and bear no Distribution or Shareholder Services Plan fees. Class Y shares are sold at net asset value per share generally to institutional investors, and bear no Distribution or Shareholder Services Plan fees. Class Z shares are sold at net asset value per share to certain shareholders of the fund. Class Z shares generally are not available for new accounts and bear Shareholder Service Plan fees. Class I, Class Y and Class Z shares are offered without a front-end sales charge or CDSC. Other differences between the classes include the services offered to and the expenses borne by each class, the allocation of certain transfer agency costs, and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

The Company accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund is an investment company and applies the accounting and reporting guidance of the FASB ASC Topic 946 Financial Services-Investment Companies. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The Companyenters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown. The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

46

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:

Investments in securities are valued each business day by an independent pricing service (the “Service”) approved by the Company’s Board of Directors (the “Board”). Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Debt investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service, based on methods which include consideration of the following: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. All of the preceding securities are generally categorized within Level 2 of the fair value hierarchy.

The Service is engaged under the general oversight of the Board.

When market quotations or official closing prices are not readily available, or are determined not to accurately reflect fair value, such as when the value of a security has been significantly affected by events after the close

47

NOTES TO FINANCIAL STATEMENTS (continued)

of the exchange or market on which the security is principally traded, but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

For securities where observable inputs are limited, assumptions about market activity and risk are used and such securities are generally categorized within Level 3 of the fair value hierarchy.

The following is a summary of the inputs used as of August 31, 2021in valuing the fund’s investments:

	Level 1-Unadjusted Quoted Prices	Level 2- Other Significant Observable Inputs	Level 3-Significant Unobservable Inputs	Total
Assets ($)
Investments In Securities:†
Collateralized Municipal-Backed Securities	-	3,313,287	-	3,313,287
Municipal Securities	-	1,347,011,963	-	1,347,011,963

^†See Statement of Investments for additional detailed categorizations, if any.

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Interest income, adjusted for accretion of discount and amortization of premium on investments, is earned from settlement date and recognized on the accrual basis. Securities purchased or sold on a when issued or delayed delivery basis may be settled a month or more after the trade date.

(c) Risk: Certain events particular to the industries in which the fund’s investments conduct their operations, as well as general economic, political and public health conditions, may have a significant negative impact on the investee’s operations and profitability. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the fund. Global economies and financial markets are becoming

48

increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. Recent examples include pandemic risks related to COVID-19 and aggressive measures taken world-wide in response by governments, including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines of large populations, and by businesses, including changes to operations and reducing staff. To the extent the fund may overweight its investments in certain countries, companies, industries or market sectors, such positions will increase the fund’s exposure to risk of loss from adverse developments affecting those countries, companies, industries or sectors.

(d) Dividends and distributions to shareholders: It is the policy of the fund to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”). To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

(e) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, which can distribute tax-exempt dividends, by complying with the applicable provisions of the Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.

As of and during the period ended August 31, 2021, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended August 31, 2021, the fund did not incur any interest or penalties.

Each tax year in the four-year period ended August 31, 2021 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At August 31, 2021, the components of accumulated earnings on a tax basis were as follows: undistributed tax-exempt income $1,140,421,

49

NOTES TO FINANCIAL STATEMENTS (continued)

undistributed capital gains $2,019,200 and unrealized appreciation $83,271,885.

The tax character of distributions paid to shareholders during the fiscal periods ended August 31, 2021 and August 31, 2020 were as follows: tax-exempt income $27,632,060 and $26,986,245, ordinary income $0 and $25,509, and long-term capital gains $0 and $2,134,258.

(f) New accounting pronouncements: In March 2020, the FASB issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), and in January 2021, the FASB issued Accounting Standards Update 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the LIBOR and other interbank offered rates as of the end of 2021. The temporary relief provided by ASU 2020-04 and ASU 2021-01 is effective for certain reference rate-related contract modifications that occur during the period from March 12, 2020 through December 31, 2022. Management is evaluating the impact of ASU 2020-04 and ASU 2021-01on the fund’s investments, derivatives, debt and other contracts that will undergo reference rate-related modifications as a result of the reference rate reform. Management is also currently actively working with other financial institutions and counterparties to modify contracts as required by applicable regulation and within the regulatory deadlines.

NOTE 2—Bank Lines of Credit:

The fund participates with other long-term open-end funds managed by the Adviser in a $823.5 million unsecured credit facility led by Citibank, N.A. (the “Citibank Credit Facility”) and a $300 million unsecured credit facility provided by The Bank of New York Mellon (the “BNYM Credit Facility”), a subsidiary of BNY Mellon and an affiliate of the Adviser, each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions (each, a “Facility”). The Citibank Credit Facility is available in two tranches: (i) Tranche A is in an amount equal to $688.5 million and is available to all long-term open-ended funds, including the fund, and (ii) Tranche B is an amount equal to $135 million and is available only to BNY Mellon Floating Rate Income Fund, a series of BNY Mellon Investment Funds IV, Inc. Prior to September 30, 2020, the Citibank Credit Facility was $927 million with Tranche A available in an amount equal to $747 million and Tranche B available in an amount equal to $180 million. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for Tranche A of the Citibank Credit Facility

50

and the BNYM Credit Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended August 31, 2021, the fund did not borrow under the Facilities.

NOTE 3—Management Fee, Sub Investment Advisory Fee and Other Transactions with Affiliates:

(a) Pursuant to a management agreement with the Adviser, the management fee is computed at the annual rate of .60% of the value of the fund’s average daily net assets and is payable monthly. The Adviser has contractually agreed, from September 1, 2020 through December 31, 2021 to waive receipt of its fees and/or assume the direct expenses of the fund, so that the direct expenses of none of the classes (excluding Rule 12b-1 Distribution Plan fees, Shareholder Services Plan fees, taxes, interest expense, brokerage commissions, commitment fees on borrowings and extraordinary expenses) exceed .45% of the value of the fund’s average daily net assets. On or after December 31, 2021, the Adviser may terminate this expense limitation agreement at any time. The reduction in expenses, pursuant to the undertaking, amounted to $2,840,106 during the period ended August 31, 2021.

Effective as of the Effective Date, pursuant to a sub-investment advisory agreement between the Adviser and INA, the Adviser pays the INA a monthly fee at an annual rate of .288% of the value of the fund’s average daily net assets.

During the period ended August 31, 2021, the Distributor retained $1,635 from commissions earned on sales of the fund’s Class A shares, $4,637 and $698 from CDSC fees on redemptions of the fund’s Class A and Class C shares, respectively.

(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act, Class C shares pay the Distributor for distributing its shares at an annual rate of .75% of the value of its average daily net assets. The Distributor may pay one or more Service Agents in respect of advertising, marketing and other distribution services, and determines the amounts, if any, to be paid to Service Agents and the basis on which such payments are made. During the period ended August 31, 2021, Class C shares were charged $96,186 pursuant to the Distribution Plan.

(c)Under the Shareholder Services Plan, Class A and Class C shares pay the Distributor at an annual rate of .25% of the value of their average daily net assets for the provision of certain services. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund, and services related to

51

NOTES TO FINANCIAL STATEMENTS (continued)

the maintenance of shareholder accounts. The Distributor may make payments to Service Agents (securities dealers, financial institutions or other industry professionals) with respect to these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended August 31, 2021, Class A and Class C shares were charged $1,017,167and $32,062, respectively, pursuant to the Shareholder Services Plan.

Under the Shareholder Services Plan, Class Z shares reimburse the Distributor at an amount not to exceed an annual rate of .25% of the value of Class Z shares’ average daily net assets for certain allocated expenses of providing personal services and/or maintaining shareholder accounts. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding Class Z shares, and services related to the maintenance of shareholder accounts. During the period ended August 31, 2021, Class Z shares were charged $49,325 pursuant to the Shareholder Services Plan.

The fund has arrangements with the transfer agent and the custodian whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset transfer agency and custody fees. For financial reporting purposes, the fund includes transfer agent net earnings credits, if any, as shareholder servicing costs and includes custody net earnings credits, if any, as an expense offset in the in the Statement of Operations.

The fund compensates BNY Mellon Transfer, Inc., a wholly-owned subsidiary of the Adviser, under a transfer agency agreement for providing transfer agency and cash management services inclusive of earnings credits, if any, for the fund. The majority of transfer agency fees are comprised of amounts paid on a per account basis, while cash management fees are related to fund subscriptions and redemptions. During the period ended August 31, 2021, the fund was charged $74,177 for transfer agency services, inclusive of earnings credit, if any. These fees are included in Shareholder servicing costs in the Statement of Operations.

The fund compensates The Bank of New York Mellon under a custody agreement for providing custodial services for the fund. These fees are determined based on net assets, geographic region and transaction activity. During the period ended August 31, 2021, the fund was charged $22,622 pursuant to the custody agreement. These fees were partially offset by earnings credits of $12,185.

The fund compensates The Bank of New York Mellon under a shareholder redemption draft processing agreement for providing certain

52

services related to the fund’s check writing privilege. During the period ended August 31, 2021, the fund was charged $3,872 pursuant to the agreement, which is included in Shareholder servicing costs in the Statement of Operations.

During the period ended August 31, 2021, the fund was charged $14,319 for services performed by the Chief Compliance Officer and his staff. These fees are included in Chief Compliance Officer fees in the Statement of Operations.

The components of “Due to BNY Mellon Investment Adviser, Inc. and affiliates” in the Statement of Assets and Liabilities consist of: management fees of $696,046, Distribution Plan fees of $7,613, Shareholder Services Plan fees of $90,364, custodian fees of $6,400, Chief Compliance Officer fees of $6,286 and transfer agency fees of $11,136 which are offset against an expense reimbursement currently in effect in the amount of $251,121.

(d) Each Board member also serves as a Board member of other funds in the BNY Mellon Family of Funds complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales (including paydowns) of investment securities, excluding short-term securities, during the period ended August 31, 2021, amounted to $218,482,721 and $73,027,506, respectively.

At August 31, 2021, the cost of investments for federal income tax purposes was $1,267,053,365; accordingly, accumulated net unrealized appreciation on investments was $83,271,885, consisting of $84,232,509, gross unrealized appreciation and $960,624 gross unrealized depreciation.

53

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of BNY Mellon AMT-Free Municipal Bond Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of BNY Mellon AMT-Free Municipal Bond Fund (the “Fund”) (one of the funds constituting BNY Mellon Municipal Funds, Inc.), including the statement of investments, as of August 31, 2021, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting BNY Mellon Municipal Funds, Inc.) at August 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of the Fund’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2021, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more investment companies in the BNY Mellon Family of Funds since at least 1957, but we are unable to determine the specific year.

New York, New York
October 22, 2021

54

IMPORTANT TAX INFORMATION (Unaudited)

In accordance with federal tax law, the fund hereby reports all the dividends paid from investment income-net during its fiscal year ended August 31, 2021 as “exempt-interest dividends” (not generally subject to regular federal income tax). Where required by federal tax law rules, shareholders will receive notification of their portion of the fund’s taxable ordinary dividends (if any), capital gains distributions (if any) and tax-exempt dividends paid for the 2021 calendar year on Form 1099-DIV, which will be mailed in early 2022.

55

INFORMATION ABOUT THE APPROVAL OF THE FUND’S MANAGEMENT AGREEMENT AND APPROVAL OF SUB-INVESTMENT ADVISORY AGREEMENT (Unaudited)

At a meeting of the fund’s Board of Directors held on May 10, 2021 (the “Meeting”), the Board discussed with representatives of the Adviser plans to realign Mellon Investments Corporation’s (“Mellon”) fixed-income capabilities with Insight North America LLC (“INA”) (the “Firm Realignment”), with such realignment scheduled to occur, subject to regulatory requirements, in the third quarter of 2021 (the “Effective Date”). The Adviser noted that, as a result of the Firm Realignment, the portfolio managers who are currently responsible for managing the investments of the fund as employees of Mellon in a dual employment arrangement with the Adviser, will become employees of INA as of the Effective Date. Consequently, the Adviser proposed to engage INA to serve as the fund’s sub-investment adviser, pursuant to a sub-investment advisory agreement between the Adviser and INA (the “New Sub-Advisory Agreement”), to be effective on the Effective Date. In addition, the Adviser proposed amending the fund’s current management agreement (the “Current Management Agreement”) to more clearly reflect the Adviser’s ability to employ one or more sub-investment advisers to manage the fund on a day-to-day basis and the Adviser’s responsibility to oversee and supervise any such sub-investment adviser, and to reflect the engagement of INA as sub-investment adviser to the fund (as proposed to be amended, the “Amended Management Agreement”), to be effective on the Effective Date.

At the Meeting, the Adviser recommended the approval of the New Sub-Advisory Agreement, pursuant to which INA would serve as sub-investment adviser to the fund, and the Amended Management Agreement. The recommendation for the approval of the New Sub-Advisory Agreement and the Amended Management Agreement was based on the following considerations, among others: (i) approval of the New Sub-Advisory Agreement and the Amended Management Agreement would permit the fund’s current portfolio managers to continue to be responsible for the day-to-day management of the fund’s portfolio after the Effective Date as employees of INA; (ii) there will be no material changes to the fund’s investment objective, strategies or policies, no reduction in the nature or level of services provided to the fund, and no increases in the management fee payable by the fund as a result of the proposed changes to the investment advisory arrangements; and (iii) the Adviser (and not the fund) will pay INA for its sub-investment advisory services. The Board also considered the fact that the Adviser stated that it believes there are no material changes to the information the Board had previously considered at a Board meeting on November 2-3, 2020 (the “15(c) Meeting”), at which the Board re-approved the Current Management Agreement for the ensuing year, other than the information about the Firm Realignment and INA.

At the Meeting, the Board members, a majority of whom are not “interested persons” (as defined in the Investment Company Act of 1940, as amended (the “1940 Act”)) of the fund (the “Independent Directors”), considered and approved the New Sub-Advisory Agreement and the Amended Management Agreement. In determining whether to approve the New Sub-Advisory Agreement and the Amended Management Agreement, the Board considered the materials prepared by the Adviser received in

56

advance of the Meeting and other information presented at the Meeting, which included: (i) a form of the New Sub-Advisory Agreement and a form of the Amended Management Agreement; (ii) information regarding the Firm Realignment and how it is expected to enhance investment capabilities; (iii) information regarding INA; and (iv) an opinion of counsel that the proposed changes to the investment advisory arrangements would not result in an “assignment” of the Current Management Agreement under the 1940 Act and the Investment Advisers Act of 1940, as amended, and, therefore, do not require the approval of fund shareholders. The Board also considered the substance of discussions with representatives of the Adviser at the Meeting and the 15(c) Meeting.

Nature, Extent and Quality of Services to be Provided. In examining the nature, extent and quality of the services that were expected to be provided by INA to the fund under the New Sub-Advisory Agreement, the Board considered: (i) INA’s organization, qualification and background, as well as the qualifications of its personnel; (ii) the expertise of the personnel providing portfolio management services, which would remain the same after the Effective Date; and (iii) the investment strategy for the fund, which would remain the same after the Effective Date. The Board also considered the review process undertaken by the Adviser and the Adviser’s favorable assessment of the nature and quality of the sub-investment advisory services expected to be provided to the fund by INA after the Effective Date. Based on their consideration and review of the foregoing information, the Board concluded that the nature, extent and quality of the sub-investment advisory services to be provided by INA under the New Sub-Advisory Agreement, as well as INA’s ability to render such services based on its resources and the experience of the investment team, which will include the fund’s current portfolio managers, were adequate and appropriate for the fund in light of the fund’s investment objective, and supported a decision to approve the New Sub-Advisory Agreement. The Board also considered, as it related to the Amended Management Agreement, that the nature, extent and quality of the services that are provided by the Adviser are expected to remain the same, including the Adviser’s extensive administrative, accounting and compliance infrastructures, as well as the Adviser’s supervisory activities over the fund’s portfolio management personnel.

Investment Performance. The Board had considered the fund’s investment performance and that of the investment team managing the fund’s portfolio at the 15(c) Meeting (including comparative data provided by Broadridge Financial Solutions, Inc.). The Board considered the performance and that the same investment professionals would continue to manage the fund’s assets after the Effective Date, as factors in evaluating the services to be provided by INA under the New Sub-Advisory Agreement after the Effective Date, and determined that these factors, when viewed together with the other factors considered by the Board, supported a decision to approve the New Sub-Advisory Agreement and the Amended Management Agreement.

Costs of Services to be Provided and Profitability. The Board considered the proposed fee payable under the New Sub-Advisory Agreement, noting that the proposed fee would be paid by the Adviser and, thus, would not impact the fees paid by the fund or the Adviser’s profitability. The Board considered the fee payable to INA in relation to

57

INFORMATION ABOUT THE APPROVAL OF THE FUND’S MANAGEMENT AGREEMENT AND APPROVAL OF SUB-INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued)

the fee paid to the Adviser by the fund and the respective services provided by INA and the Adviser. The Board recognized that, because INA’s fee would be paid by the Adviser, and not the fund, an analysis of profitability was more appropriate in the context of the Board’s consideration of the fund’s Current Management Agreement, and that the Board had received and considered a profitability analysis of the Adviser and its affiliates, including INA, at the 15(c) Meeting. The Board concluded that the proposed fee payable to INA by the Adviser was appropriate and the Adviser’s profitability was not excessive in light of the nature, extent and quality of the services to be provided to the fund by the Adviser under the Amended Management Agreement and INA under the New Sub-Advisory Agreement.

Economies of Scale to be Realized. The Board recognized that, because the fee payable to INA would be paid by the Adviser, and not the fund, an analysis of economies of scale was more appropriate in the context of the Board’s consideration of the Current Management Agreement, which had been done at the 15(c) Meeting. At the 15(c) Meeting, the Board determined that the economies of scale which may accrue to the Adviser and its affiliates in connection with the management of the fund had been adequately considered by the Adviser in connection with the fee rate charged to the fund pursuant to the Current Management Agreement and that, to the extent in the future it were determined that material economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.

The Board also considered whether there were any ancillary benefits that would accrue to INA as a result of its relationship with the fund, and such ancillary benefits, if any, were determined to be reasonable.

In considering the materials and information described above, the Independent Directors received assistance from, and met separately with, their independent legal counsel, and were provided with a written description of their statutory responsibilities and the legal standards that are applicable to the approval of investment advisory and sub-investment advisory agreements.

After full consideration of the factors discussed above, with no single factor identified as being of paramount importance, the Board members, a majority of whom are Independent Directors, with the assistance of independent legal counsel, approved the New Sub-Advisory Agreement and Amended Management Agreement for the fund effective as of the Effective Date.

58

LIQUIDITY RISK MANAGEMENT PROGRAM (Unaudited)

Effective June 1, 2019, the fund adopted a liquidity risk management program (the “Liquidity Risk Management Program”) pursuant to the requirements of Rule 22e-4 under the Investment Company Act of 1940, as amended. Rule 22e-4 requires registered open-end funds, including mutual funds and exchange-traded funds but not money market funds, to establish liquidity risk management programs in order to effectively manage fund liquidity and shareholder redemptions. The rule is designed to mitigate the risk that a fund could not meet redemption requests without significantly diluting the interests of remaining investors.

The rule requires the fund to assess, manage and review their liquidity risk at least annually considering applicable factors such as investment strategy and liquidity during normal and foreseeable stressed conditions, including whether the strategy is appropriate for an open-end fund and whether the fund has a relatively concentrated portfolio or large positions in particular issuers. The fund must also assess its use of borrowings and derivatives, short-term and long-term cash flow projections in normal and stressed conditions, holdings of cash and cash equivalents, and borrowing arrangements and other funding sources.

The rule also requires the fund to classify its investments as highly liquid, moderately liquid, less liquid or illiquid based on the number of days the fund expects it would take to liquidate the investment, and to review these classifications at least monthly or more often under certain conditions. The periods range from three or fewer business days for a highly liquid investment to greater than seven calendar days for settlement of a less liquid investment. Illiquid investments are those a fund does not expect to be able to sell or dispose of within seven calendar days without significantly changing the market value. The fund is prohibited from acquiring an investment if, after the acquisition, its holdings of illiquid assets will exceed 15% of its net assets. In addition, if a fund permits redemptions in-kind, the rule requires the fund to establish redemption in-kind policies and procedures governing how and when it will engage in such redemptions.

Pursuant to the rule’s requirements, the Liquidity Risk Management Program has been reviewed and approved by the Board. Furthermore, the Board has received a written report prepared by the Program’s Administrator that addresses the operation of the Program, assesses its adequacy and effectiveness and describes any material changes made to the Program.

Assessment of Program

In the opinion of the Program Administrator, the Program approved by the Board continues to be adequate for the fund and the Program has been implemented effectively. The Program Administrator has monitored the fund’s liquidity risk and the liquidity classification of the securities held by the fund and has determined that the Program is operating effectively.

During the period from January 1, 2020 to December 31, 2020, there were no material changes to the Program and no material liquidity events that impacted the fund. During the period, the fund held sufficient highly liquid assets to meet fund redemptions.

Under normal expected foreseeable fund redemption forecasts and foreseeable stressed fund redemption forecasts, the Program Administrator believes that the fund maintains sufficient highly liquid assets to meet expected fund redemptions.

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BOARD MEMBERS INFORMATION (Unaudited)

INDEPENDENT BOARD MEMBERS

Joseph S. DiMartino (77)

Chairman of the Board (1995)

Principal Occupation During Past 5 Years:

·Director and Trustee of funds in the BNY Mellon Family of Funds and certain other entities (as described in the fund’s Statement of Additional Information) (1995-Present)

Other Public Company Board Memberships During Past 5 Years:

·CBIZ, Inc., a public company providing professional business services, products and solutions, Director (1997-Present)

No. of Portfolios for which Board Member Serves: 97

———————

Joni Evans (79)

Board Member (1991)

Principal Occupation During Past 5 Years:

·www.wowOwow.com, an online community dedicated to women’s conversations and publications, Chief Executive Officer (2007-2019)

·Joni Evans Ltd. publishing, Principal (2006-2019)

No. of Portfolios for which Board Member Serves: 18

———————

Joan Gulley (73)

Board Member (2017)

Principal Occupation During Past 5 Years:

·Nantucket Atheneum, public library, Chair (2018-June 2021) and Director (2015-June 2021)

·Orchard Island Club, golf and beach club, Governor (2016-Present)

No. of Portfolios for which Board Member Serves: 43

———————

60

Alan H. Howard (61)

Board Member (2018)

Principal Occupation During Past 5 Years:

·Heathcote Advisors LLC, a financial advisory services firm, Managing Partner (2008-Present)

·Dynatech/MPX Holdings LLC, a global supplier and service provider of military aircraft parts, President (2012-2019); and Board Member of its two operating subsidiaries, Dynatech International LLC and Military Parts Exchange LLC (2012-2019), including Chief Executive Officer of an operating subsidiary, Dynatech International LLC (2013-2019)

·Rossoff & Co., an independent investment banking firm, Senior Advisor (2013-June 2021)

Other Public Company Board Memberships During Past 5 Years:

·Movado Group, Inc., a public company that designs, sources, markets and distributes watches, Director (1997-Present)

·Diamond Offshore Drilling, Inc., a public company that provides contract drilling services, Director (March 2020-April 2021)

No. of Portfolios for which Board Member Serves: 18

———————

Robin A. Melvin (57)

Board Member (2006)

Principal Occupation During Past 5 Years:

·Westover School, a private girls’ boarding school in Middlebury, Connecticut, Trustee (2019-Present)

·Mentor Illinois, a non-profit organization dedicated to increasing the quality of mentoring services in Illinois. Co-Chair (2014–2020); Board Member, Mentor Illinois (2013-2020)

·JDRF, a non-profit juvenile diabetes research foundation, Board Member (June 2021-Present)

Other Public Company Board Memberships During Past 5 Years:

·HPS Corporate Lending Fund, a closed-end management investment company regulated as a business development company, Trustee (August 2021-Present)

No. of Portfolios for which Board Member Serves: 76

———————

Burton N. Wallack (70)

Board Member (1991)

Principal Occupation During Past 5 Years:

Wallack Management Company, a real estate management company, President and Co-owner (1987-Present)

Other Public Company Board Memberships During Past 5 Years:

Mount Sinai Hospital Urology Board Member (2017-Present)

No. of Portfolios for which Board Member Serves: 18

———————

61

BOARD MEMBERS INFORMATION (Unaudited) (continued)
INDEPENDENT BOARD MEMBERS (continued)

Benaree Pratt Wiley (75)

Board Member (2006)

Principal Occupation During Past 5 Years:

·The Wiley Group, a firm specializing in strategy and business development. Principal (2005-Present)

Other Public Company Board Memberships During Past 5 Years:

·CBIZ, Inc., a public company providing professional business services, products and solutions, Director (2008-Present)

·Blue Cross Blue Shield of Massachusetts Director (2004-2020)

No. of Portfolios for which Board Member Serves: 62

———————

Once elected all Board Members serve for an indefinite term, but achieve Emeritus status upon reaching age 80. The address of the Board Members and Officers is c/o BNY Mellon Investment Adviser, Inc. 240 Greenwich Street, New York, New York 10286. Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from the Adviser free of charge by calling this toll free number: 1-800-373-9387.

Hodding Carter III, Emeritus Board Member
Gordon J. Davis, Emeritus Board Member
Ehud Houminer, Emeritus Board Member
Hans C. Mautner, Emeritus Board Member

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OFFICERS OF THE FUND (Unaudited)

DAVID DIPETRILLO, President since January 2021.

Vice President and Director of the Adviser since February 2021, Head of North America Product, BNY Mellon Investment Management since January 2018, Director of Product Strategy, BNY Mellon Investment Management from January 2016 to December 2017; He is an officer of 56 investment companies (comprised of 106 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 43 years old and has been an employee of BNY Mellon since 2005.

JAMES WINDELS, Treasurer since November 2001.

Vice President of the Adviser since September 2020, Director-BNY Mellon Fund Administration, and an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 62 years old and has been an employee of the Adviser since April 1985.

PETER M. SULLIVAN, Chief Legal Officer since July 2021 and Vice President and Assistant Secretary since March 2019.

Chief Legal Officer of the Adviser since July 2021, Associate General Counsel of BNY Mellon since July 2021;Senior Managing Counsel of BNY Mellon from December 2020 to July 2021; Managing Counsel of BNY Mellon from March 2009 to December 2020, and an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 53 years old and has been an employee of BNY Mellon since April 2004.

JAMES BITETTO, Vice President since August 2005 and Secretary since February 2018.

Senior Managing Counsel of BNY Mellon since December 2019; Managing Counsel of BNY Mellon from April 2014 to December 2019; Secretary of the Adviser, and an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 55 years old and has been an employee of the Adviser since December 1996.

DEIRDRE CUNNANE, Vice President and Assistant Secretary since March 2019.

Counsel of BNY Mellon since August 2018; Senior Regulatory Specialist at BNY Mellon Investment Management Services from February 2016 to August 2018. She is an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 31 years old and has been an employee of the Adviser since August 2018.

SARAH S. KELLEHER, Vice President and Assistant Secretary since April 2014.

Managing Counsel of BNY Mellon since December 2017, Senior Counsel of BNY Mellon from March 2013 to December 2017. She is an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 45 years old and has been an employee of the Adviser since March 2013.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.

Senior Managing Counsel of BNY Mellon, and an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 56 years old and has been an employee of the Adviser since October 1990.

AMANDA QUINN, Vice President and Assistant Secretary since March 2020.

Counsel of BNY Mellon since June 2019; Regulatory Administration Manager at BNY Mellon Investment Management Services from September 2018 to May 2019; Senior Regulatory Specialist at BNY Mellon Investment Management Services from April 2015 to August 2018. She is an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 36 years old and has been an employee of the Adviser since June 2019.

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OFFICERS OF THE FUND (Unaudited) (continued)

NATALYA ZELENSKY, Vice President and Assistant Secretary since March 2017.

Chief Compliance Officer (since August 2021) and Vice President and Assistant Secretary (since February 2020) of BNY Mellon ETF Investment Adviser, LLC; Chief Compliance Officer (since August 2021) and Vice President (since February 2020) of BNY Mellon ETF Trust; Managing Counsel (December 2019 to August 2021) and Counsel (May 2016 to December 2019) of BNY Mellon; Assistant Secretary of the Adviser from April 2018 to August 2021. She is an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 36 years old and has been an employee of BNY Mellon since May 2016.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager-BNY Mellon Fund Administration, and an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 53 years old and has been an employee of the Adviser since April 1991.

ROBERT SALVIOLO, Assistant Treasurer since July 2007.

Senior Accounting Manager–BNY Mellon Fund Administration, and an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 54 years old and has been an employee of the Adviser since June 1989.

ROBERT SVAGNA, Assistant Treasurer since August 2005.

Senior Accounting Manager–BNY Mellon Fund Administration, and an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 54 years old and has been an employee of the Adviser since November 1990.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the BNY Mellon Family of Funds and BNY Mellon Funds Trust since 2004, CCO of the Adviser from 2004 until June 2021 (56 investment companies, comprised of 119 portfolios). He is 64 years old and has served in various capacities with the Adviser since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

CARIDAD M. CAROSELLA, Anti-Money Laundering Compliance Officer since January 2016.

Anti-Money Laundering Compliance Officer of the BNY Mellon Family of Funds and BNY Mellon Funds Trust. She is an officer of 50 investment companies (comprised of 121 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 53 years old and has been an employee of the Distributor since 1997.

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65

For More Information

BNY Mellon AMT-Free Municipal Bond Fund

240 Greenwich Street

New York, NY 10286

Adviser

BNY Mellon Investment Adviser, Inc.

240 Greenwich Street

New York, NY 10286

Sub-Adviser

Insight North America, LLC
200 Park Avenue, 7^th Floor

New York, NY 10166

Custodian

The Bank of New York Mellon

240 Greenwich Street

New York, NY 10286

Transfer Agent &
Dividend Disbursing Agent

BNY Mellon Transfer, Inc.

240 Greenwich Street

New York, NY 10286

Distributor

BNY Mellon Securities Corporation

240 Greenwich Street

New York, NY 10286

Ticker Symbols: Class A: DMUAX Class C: DMUCX Class I: DMBIX Class Y: DMUYX Class Z: DRMBX

Telephone Call your financial representative or 1-800-373-9387

Mail The BNY Mellon Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144

E-mail Send your request toinfo@bnymellon.com

Internet Information can be viewed online or downloaded at www.im.bnymellon.com

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-PORT. The fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov.

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the fund voted these proxies for the most recent 12-month period ended June 30 is available at www.im.bnymellon.comand on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-373-9387.

© 2021 BNY Mellon Securities Corporation
0319AR0821

BNY Mellon High Yield Municipal Bond Fund

ANNUAL REPORT

August 31, 2021

Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.im.bnymellon.com and sign up for eCommunications. It’s simple and only takes a few minutes.

The views expressed in this report reflect those of the portfolio manager(s) only through the end of the period covered and do not necessarily represent the views of BNY Mellon Investment Adviser, Inc. or any other person in the BNY Mellon Investment Adviser, Inc. organization. Any such views are subject to change at any time based upon market or other conditions and BNY Mellon Investment Adviser, Inc. disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund in the BNY Mellon Family of Funds are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any fund in the BNY Mellon Family of Funds.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

Contents

T H E F U N D

Discussion of Fund Performance	2
Fund Performance	5
Understanding Your Fund’s Expenses	8
Comparing Your Fund’s Expenses With Those of Other Funds	8
Statement of Investments	9
Statement of Assets and Liabilities	28
Statement of Operations	29
Statement of Changes in Net Assets	30
Financial Highlights	32
Notes to Financial Statements	37
Report of Independent Registered Public Accounting Firm	48
Important Tax Information	49
Information About the Approval of the Fund’s Management Agreement and Approval of Sub-Investment Advisory Agreement	50
Liquidity Risk Management Program	53
Board Members Information	54
Officers of the Fund	57

F O R M O R E I N F O R M AT I O N

Back Cover

DISCUSSION OF FUND PERFORMANCE(Unaudited)

For the period from September 1, 2020 through August 31, 2021, as provided by Daniel Barton and Jeffrey Burger, Primary Portfolio Managers

Market and Fund Performance Overview

For the 12-month period ended August 31, 2021, BNY Mellon High Yield Municipal Bond Fund’s Class A shares achieved a 10.07% total return, Class C shares returned 9.23%, Class I shares returned 10.25%, Class Y shares returned 10.35% and Class Z shares returned 10.25%.¹ The fund’s benchmark, the Bloomberg U.S. Municipal Bond Index (the “Index”), which, unlike the fund, does not include securities rated below investment grade, produced a total return of 3.40%.²

Municipal bonds posted healthy returns, driven by strong inflows. Inflows were a result of healthy issuer fundamentals, fiscal support from the federal government, and concerns about future tax increases. The fund outperformed the Index mainly due to the high yield securities the fund owns, which significantly outperformed investment grade municipals.

The Fund’s Investment Approach

The fund primarily seeks high current income exempt from federal income tax. Secondarily, the fund may seek capital appreciation to the extent consistent with its primary goal. To pursue its goals, the fund normally invests at least 80% of its net assets in municipal bonds that provide income exempt from federal income tax. The fund normally invests at least 50% of its assets in municipal bonds rated BBB/Baa or lower by independent rating agencies or the unrated equivalent as determined by BNY Mellon Investment Adviser, Inc. Municipal bonds rated below investment grade (BB/Ba or lower) are commonly known as “high yield” or “junk” bonds. The fund may invest up to 50% of its assets in higher-quality municipal bonds rated AAA/Aaa to A, or the unrated equivalent as determined by BNY Mellon Investment Adviser, Inc.

We focus on identifying undervalued sectors and securities and minimize the use of interest-rate forecasting. The portfolio managers select municipal bonds for the fund’s portfolio by:

·Using fundamental credit analysis to estimate the relative value and attractiveness of various sectors and securities and to exploit pricing inefficiencies in the municipal bond market; and

·Actively trading among various sectors, such as pre-refunded, general obligation and revenue, based on their apparent relative values. The fund seeks to invest in several of these sectors.

2

Market Surges in Response to Strong Inflows

During the reporting period, the market continued to benefit from policies put in place in response to the COVID-19 pandemic, including support from the Federal Reserve (the “Fed”), as well as aided by congress. This and a number of other factors produced strong inflows to the market during the period. For example, the market responded favorably to the election of President Biden and to the administration’s policy response to the COVID-19 pandemic. A Democrat-controlled Congress also made federal support for state and local governments more likely. This took the form of a relief package, which included $350 billion in support for state and local governments.

The fiscal health of issuers has continued to be stronger than expected because real estate and income tax collections rose during the period which was counter to the declines some market participants predicted. Progressive tax regimes proved beneficial because higher-earning, white-collar workers were largely unaffected by the pandemic. In addition, ongoing federal support to households, school systems, the transportation system and other segments, bolstered the economy and prevented sales taxes from declining as much as originally feared.

The election also increased the likelihood of income tax hikes for higher-income households, adding to the appeal of tax-exempt municipal securities. The prospect of an increase in the corporate tax rate made municipal bonds more appealing to institutional buyers, and low interest rates overseas attracted foreign investors to the market.

Duration Positioning and Asset Allocation Boosted Returns

The fund generally outperformed the Index during the reporting period, due mostly to its duration positioning, which was longer than the benchmark, and to asset allocation. Exposure to the long end of the curve was beneficial as prices rose. In addition, an overweight to revenue bonds contributed positively to results, especially in higher-yielding sectors, including tobacco, hospitals, transportation and charter schools. The fund’s position in Puerto Rico bonds also contributed positively to performance. The fund also made use of derivatives during the period, specifically tender-option bonds, which also added to returns.

On a less positive note, the fund’s performance was hampered by its cash position. The fund normally holds cash to handle redemptions and take advantage of new opportunities, but with most segments of the market posting positive returns, the cash position created a slight drag on performance. In addition, although certain essential services segments, such as water and sewer, produced positive returns, they lagged the benchmark.

3

DISCUSSION OF FUND PERFORMANCE(Unaudited) (continued)

Strong Demand Likely to Continue

We anticipate that the strong demand that has characterized the market over the past 12 months will continue. The drivers of the past year, including healthy fundamentals, low yields in other markets, and the prospect of tax increases will continue to factor into investor decisions.

The market faces certain risks, however. The economy could falter due to a resurgence of the COVID-19 pandemic either in the United States or overseas. It’s also possible that the Fed will begin to reduce its bond-buying program, which could result in higher rates on Treasuries and other fixed-income markets. Inflation has also emerged as a concern, but at this point we believe it will be a transitory phenomenon, receding as the economy returns to a more normal footing.

September 15, 2021

¹Total return includes reinvestment of dividends and any capital gains paid. It does not include the maximum initial sales charge in the case of Class A shares, and the applicable contingent deferred sales charge imposed on redemptions in the case of Class C shares. Class I, Class Y and Class Z shares are not subject to any initial or deferred sales charge. Past performance is no guarantee of future results. Share price, yield and investment return fluctuate such that upon redemption, fund shares may be worth more or less than their original cost. Income may be subject to state and local taxes, and some income may be subject to the federal alternative minimum tax (AMT) for certain investors. Capital gains, if any, are fully taxable. Return figures provided reflect an undertaking for the absorption of certain fund expenses by BNY Mellon Investment Adviser, Inc. through December 31, 2021, at which time it may be extended, terminated or modified. Had these expenses not been absorbed, the fund’s returns would have been lower.

²Source: Lipper Inc. — The Bloomberg U.S. Municipal Bond Index covers the USD-denominated, long-term, tax-exempt bond market. Investors cannot invest directly in any index.

Bonds are subject generally to interest-rate, credit, liquidity and market risks, to varying degrees, all of which are more fully described in the fund’s prospectus. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes, and rate increases can cause price declines.

High yield bonds are subject to increased credit risk and are considered speculative in terms of the issuer’s perceived ability to continue making interest payments on a timely basis and to repay principal upon maturity.

Recent market risks include pandemic risks related to COVID-19. The effects of COVID-19 have contributed to increased volatility in global markets and will likely affect certain countries, companies, industries and market sectors more dramatically than others. To the extent the fund may overweight its investments in certain countries, companies, industries or market sectors, such positions will increase the fund’s exposure to risk of loss from adverse developments affecting those countries, companies, industries or sectors.

4

FUND PERFORMANCE(Unaudited)

Comparison of change in value of a $10,000 investment in Class A shares, Class C shares, Class I shares and Class Z shares of BNY Mellon High Yield Municipal Bond Fund with a hypothetical investment of $10,000 in the Bloomberg U.S. Municipal Bond Index (the “Index”).

^†Source: Lipper Inc.

Past performance is not predictive of future performance.

The above graph compares a hypothetical $10,000 investment made in each of the Class A shares, Class C shares, Class I shares and Class Z shares of BNY Mellon High Yield Municipal Bond Fund on 8/31/11 to a hypothetical investment of $10,000 made in the Index on that date. All dividends and capital gain distributions are reinvested.

The fund’s performance shown in the line graph above takes into account the maximum initial sales charge on Class A shares and all other applicable fees and expenses on all classes. The fund invests primarily in municipal securities. The Index covers the U.S.-dollar-denominated long-term tax-exempt bond market. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

5

FUND PERFORMANCE(Unaudited) (continued)

Comparison of change in value of a $1,000,000 investment in Class Y shares of BNY Mellon High Yield Municipal Bond Fund with a hypothetical investment of $1,000,000 in the Bloomberg U.S. Municipal Bond Index (the “Index”).

^†Source: Lipper Inc.

^††The total return figures presented for Class Y shares of the fund reflect the performance of the fund’s Class Z shares for the period prior to 7/1/13 (the inception date for Class Y shares).

Past performance is not predictive of future performance.

The above graph compares a hypothetical $1,000,000 investment made in Class Y shares of BNY Mellon High Yield Municipal Bond Fund on 8/31/11 to a hypothetical investment of $1,000,000 made in the Index on that date. All dividends and capital gain distributions are reinvested.

The fund’s performance shown in the line graph above takes into account all other applicable fees and expenses on Class Y shares. The fund invests primarily in municipal securities. The Index covers the U.S.-dollar-denominated long-term tax-exempt bond market. Unlike a mutual fund, the Index is not subject to charges, fees and other expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere in this report.

6

Average Annual Total Returns as of 8/31/2021
	Inception Date	1 Year	5 Years	10 Years
Class A shares
with maximum sales charge (4.5%)	3/15/07	5.15%	3.90%	5.47%
without sales charge	3/15/07	10.07%	4.86%	5.95%
Class C shares
with applicable redemption charge †	3/15/07	8.23%	4.05%	5.14%
without redemption	3/15/07	9.23%	4.05%	5.14%
Class I shares	12/15/08	10.25%	5.10%	6.21%
Class Y shares	7/1/13	10.35%	5.12%	6.16%††
Class Z shares	9/30/05	10.25%	4.99%	6.07%
Bloomberg U.S. Municipal Bond Index		3.40%	3.30%	4.05%

^†The maximum contingent deferred sales charge for Class C shares is 1% for shares redeemed within one year of the date of purchase.

^††The total return performance figures presented for Class Y shares of the fund reflect the performance of the fund’s Class Z shares for the period prior to 7/1/13 (the inception date for Class Y shares).

The performance data quoted represents past performance, which is no guarantee of future results. Share price and investment return fluctuate and an investor’s shares may be worth more or less than original cost upon redemption. Current performance may be lower or higher than the performance quoted. Go to www.im.bnymellon.com for the fund’s most recent month-end returns.

The fund’s performance shown in the graphs and table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. In addition to the performance of Class A shares shown with and without a maximum sales charge, the fund’s performance shown in the table takes into account all other applicable fees and expenses on all classes.

7

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in BNY Mellon High Yield Municipal Bond Fund from March 1, 2021 to August 31, 2021. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment
Assume actual returns for the six months ended August 31, 2021
	Class A	Class C	Class I	Class Y	Class Z
Expenses paid per $1,000†	$4.35	$8.27	$3.21	$3.00	$3.57
Ending value (after expenses)	$1,053.80	$1,049.70	$1,054.20	$1,055.20	$1,053.80

COMPARING YOUR FUND’S EXPENSES
WITH THOSE OF OTHER FUNDS (Unaudited)

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (“SEC”) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment
Assuming a hypothetical 5% annualized return for the six months ended August 31, 2021
		Class A	Class C	Class I	Class Y	Class Z
Expenses paid per $1,000†		$4.28	$8.13	$3.16	$2.96	$3.52
Ending value (after expenses)		$1,020.97	$1,017.14	$1,022.08	$1,022.28	$1,021.73
†	Expenses are equal to the fund’s annualized expense ratio of .84% for Class A, 1.60% for Class C, .62% for Class I, .58% for Class Y and .69% for Class Z, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

8

STATEMENT OF INVESTMENTS

August 31, 2021

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Bonds and Notes - .3%
Collateralized Municipal-Backed Securities - .3%
Arizona Industrial Development Authority, Revenue Bonds, Ser. 2019-2 (cost $1,063,532)		3.63	5/20/2033	968,971		1,104,429
Long-Term Municipal Investments - 100.3%
Alabama - 3.0%
Birmingham-Jefferson Civic Center Authority, Special Tax Bonds, Ser. B		5.00	7/1/2031	1,850,000		2,266,157
Black Belt Energy Gas District, Revenue Bonds, Refunding		4.00	12/1/2031	5,000,000	a	6,242,351
Jefferson County, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. C		6.60	10/1/2042	2,000,000	b	2,059,517
Southeast Energy Authority, Revenue Bonds (Project No. 2) Ser. B		4.00	12/1/2031	1,000,000	a	1,236,569
					11,804,594
Alaska - .6%
Northern Tobacco Securitization Corp., Revenue Bonds, Refunding, Ser. B1		4.00	6/1/2050	2,000,000		2,335,238
Arizona - 7.2%
Arizona Industrial Development Authority, Revenue Bonds (Academics of Math & Science Project)		5.00	7/1/2054	1,000,000	c	1,162,082
Arizona Industrial Development Authority, Revenue Bonds (Cadence Campus Project) Ser. A		4.00	7/15/2050	1,600,000	c	1,725,414
Arizona Industrial Development Authority, Revenue Bonds (Doral Academy of Nevada) Ser. A		5.00	7/15/2049	1,675,000	c	1,906,156
Arizona Industrial Development Authority, Revenue Bonds (Legacy Cares Project) Ser. A		6.00	7/1/2051	1,000,000	c	1,110,741
Arizona Industrial Development Authority, Revenue Bonds (Legacy Cares Project) Ser. A		7.75	7/1/2050	2,725,000	c	3,284,613
Glendale Industrial Development Authority, Revenue Bonds, Refunding (Sun Health Services Obligated Group) Ser. A		5.00	11/15/2054	1,500,000		1,738,113

9

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
Arizona - 7.2% (continued)
La Paz County Industrial Development Authority, Revenue Bonds (Harmony Public Schools) Ser. A		5.00	2/15/2048	1,600,000		1,865,182
La Paz County Industrial Development Authority, Revenue Bonds (Harmony Public Schools) Ser. A		5.00	2/15/2036	1,000,000	c	1,132,764
Maricopa County Industrial Development Authority, Revenue Bonds (Benjamin Franklin Charter School Obligated Group)		6.00	7/1/2038	2,250,000	c	2,757,418
Maricopa County Industrial Development Authority, Revenue Bonds, Refunding (Legacy Traditional Schools Project)		5.00	7/1/2054	1,000,000	c	1,165,161
Maricopa County Industrial Development Authority, Revenue Bonds, Refunding (Legacy Traditional Schools Project)		5.00	7/1/2049	700,000	c	818,309
The Phoenix Industrial Development Authority, Revenue Bonds (Legacy Traditional Schools Project) Ser. A		6.75	7/1/2044	1,000,000	c	1,151,409
The Phoenix Industrial Development Authority, Revenue Bonds, Refunding (BASIS Schools Projects) Ser. A		5.00	7/1/2046	2,250,000	c	2,504,694
The Phoenix Industrial Development Authority, Revenue Bonds, Refunding (Downtown Phoenix Student Housing) Ser. A		5.00	7/1/2042	1,500,000		1,792,273
The Pima County Industrial Development Authority, Revenue Bonds (American Leadership Academy Project)		5.00	6/15/2052	1,640,000	c	1,664,195
The Pima County Industrial Development Authority, Revenue Bonds (American Leadership Academy Project)		5.00	6/15/2047	2,000,000	c	2,030,288
					27,808,812
California - 5.3%
California County Tobacco Securitization Agency, Revenue Bonds, Refunding, Ser. B1		5.00	6/1/2049	1,000,000		1,244,394
California Municipal Finance Authority, Revenue Bonds (Green Bond) (Insured; Build America Mutual)		4.00	5/15/2046	3,450,000		4,080,659

10

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
California - 5.3% (continued)
California Municipal Finance Authority, Revenue Bonds, Refunding (William Jessup University)		5.00	8/1/2039	1,000,000		1,132,409
California Public Finance Authority, Revenue Bonds (Green Bond) (ENSO Village Project)		5.00	11/15/2056	750,000	c	869,476
California Public Finance Authority, Revenue Bonds (Green Bond) (ENSO Village Project)		5.00	11/15/2051	500,000	c	581,640
California Statewide Communities Development Authority, Revenue Bonds (California Baptist University) Ser. A		6.38	11/1/2043	2,000,000		2,214,022
California Statewide Communities Development Authority, Revenue Bonds (Loma Linda University Medical Center Obligated Group)		5.50	12/1/2058	1,000,000	c	1,185,134
California Statewide Communities Development Authority, Revenue Bonds, Refunding (Front Porch Communities & Services Obligated Group)		4.00	4/1/2046	1,750,000		2,060,649
Golden State Tobacco Securitization Corp., Revenue Bonds, Refunding, Ser. A1		3.50	6/1/2036	2,365,000		2,403,176
Tender Option Bond Trust Receipts (Series 2020-XF2876), (San Francisco California City & County Airport Commission, Revenue Bonds, Refunding, Ser. E) Recourse, Underlying Coupon Rate (%) 5.00		17.51	5/1/2050	3,890,000	c,d,e	4,755,349
					20,526,908
Colorado - 5.1%
Belleview Station Metropolitan District No. 2, GO, Refunding		5.00	12/1/2036	1,000,000		1,034,971
Colorado Educational & Cultural Facilities Authority, Revenue Bonds, Refunding (Johnson & Wales University) Ser. B		5.00	4/1/2023	1,675,000	f	1,799,592
Colorado Health Facilities Authority, Revenue Bonds (Covenant Retirement Communities & Services Obligated Group)		5.00	12/1/2048	1,500,000		1,762,602
Denver International Business Center Metropolitan District No.1, GO, Ser. B		6.00	12/1/2048	1,000,000		1,085,170

11

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
Colorado - 5.1% (continued)
Dominion Water & Sanitation District, Revenue Bonds		6.00	12/1/2046	2,910,000		2,998,427
Hess Ranch Metropolitan District No. 6, GO, Ser. A1		5.00	12/1/2049	1,500,000		1,642,317
Hunters Overlook Metropolitan District No. 5, GO, Ser. A		5.00	12/1/2049	1,000,000		1,099,408
Hunters Overlook Metropolitan District No. 5, GO, Ser. A		5.00	12/1/2039	900,000		999,953
STC Metropolitan District No. 2, GO, Refunding, Ser. A		5.00	12/1/2049	1,000,000		1,089,942
Sterling Ranch Community Authority Board, Revenue Bonds (Insured; Municipal Government Guaranteed) Ser. A		5.00	12/1/2047	2,250,000		2,377,143
Tender Option Bond Trust Receipts (Series 2020-XM0829), (Colorado Health Facilities Authority, Revenue Bonds, Refunding (CommonSpirit Health Obligated Group, Ser. A1)) Recourse, Underlying Coupon Rate (%) 4.00		16.91	8/1/2044	2,200,000	c,d,e	3,012,423
Vauxmont Metropolitan District, GO, Refunding (Insured; Assured Guaranty Municipal Corp.)		3.25	12/15/2050	800,000		854,139
					19,756,087
Connecticut - .4%
Harbor Point Infrastructure Improvement District, Tax Allocation Bonds, Refunding (Harbor Point Project)		5.00	4/1/2039	1,500,000	c	1,739,054
District of Columbia - .8%
District of Columbia, Revenue Bonds (Ingleside Rock Creek Project) Ser. A		5.00	7/1/2052	2,000,000		2,151,439
Metropolitan Washington Airports Authority, Revenue Bonds, Refunding, Ser. B		4.00	10/1/2049	1,000,000		1,151,633
					3,303,072
Florida - 4.9%
Florida Development Finance Corp., Revenue Bonds (Miami Arts Charter School Project) Ser. A		5.88	6/15/2034	1,250,000	c	1,201,030
Florida Higher Educational Facilities Financial Authority, Revenue Bonds (Jacksonville University) Ser. A1		5.00	6/1/2048	1,500,000	c	1,779,543
Florida Municipal Power Agency, Revenue Bonds, Ser. A		3.00	10/1/2032	1,000,000		1,108,371

12

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
Florida - 4.9% (continued)
Lee County Industrial Development Authority, Revenue Bonds (Shell Point/Waterside Health Project)		5.00	11/15/2049	2,500,000		2,951,478
Palm Beach County Health Facilities Authority, Revenue Bonds (Lifespace Communities Obligated Group) Ser. B		4.00	5/15/2053	1,400,000		1,553,327
Pinellas County Industrial Development Authority, Revenue Bonds (Foundation for Global Understanding)		5.00	7/1/2039	1,000,000		1,205,959
Seminole County Industrial Development Authority, Revenue Bonds, Refunding (Legacy Pointe at UCF Project)		5.75	11/15/2054	2,000,000		2,245,954
St. Johns County Industrial Development Authority, Revenue Bonds, Refunding (Vicars Landing Project)		4.00	12/15/2041	500,000		556,506
St. Johns County Industrial Development Authority, Revenue Bonds, Refunding (Vicars Landing Project)		4.00	12/15/2046	1,000,000		1,106,799
Tender Option Bond Trust Receipts (Series 2019-XF0813), (Fort Myers Florida Utility, Revenue Bonds) Non-recourse, Underlying Coupon Rate (%) 4.00		12.26	10/1/2049	1,635,000	c,d,e	1,879,821
Tender Option Bond Trust Receipts (Series 2020-XF2877), (Greater Orlando Aviation Authority, Revenue Bonds, Ser. A) Recourse, Underlying Coupon Rate (%) 4.00		13.96	10/1/2049	2,280,000	c,d,e	2,623,791
Village Community Development District No. 10, Special Assessment Bonds		6.00	5/1/2044	600,000		646,774
					18,859,353
Georgia - 2.5%
Georgia Municipal Electric Authority, Revenue Bonds, Refunding (Plant Vogtle Units 3&4 Project) Ser. A		5.00	1/1/2056	1,000,000		1,229,092
Marietta Development Authority, Revenue Bonds, Refunding (Life University) Ser. A		5.00	11/1/2047	2,000,000	c	2,222,308

13

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
Georgia - 2.5% (continued)
Tender Option Bond Trust Receipts (Series 2019-XF2847), (Municipal Electric Authority of Georgia, Revenue Bonds (Plant Vogtle Unis 3&4 Project, Ser. A)) Recourse, Underlying Coupon Rate (%) 5.00		17.70	1/1/2056	1,850,000	c,d,e	2,227,159
Tender Option Bond Trust Receipts (Series 2020-XM0825), (Brookhaven Development Authority, Revenue Bonds (Children's Healthcare of Atlanta, Ser. A)) Recourse, Underlying Coupon Rate (%) 4.00		15.39	7/1/2044	3,180,000	c,d,e	3,975,213
					9,653,772
Idaho - .3%
Idaho Health Facilities Authority, Revenue Bonds, Refunding (St. Luke's Health System Project) Ser. A		5.00	3/1/2037	1,000,000		1,237,044
Illinois - 8.5%
Chicago Board of Education, GO, Refunding, Ser. A		5.00	12/1/2033	1,000,000		1,245,351
Chicago Board of Education, GO, Refunding, Ser. B		5.00	12/1/2033	500,000		633,938
Chicago Board of Education, GO, Ser. D		5.00	12/1/2046	1,000,000		1,221,717
Chicago Board of Education, GO, Ser. H		5.00	12/1/2036	2,000,000		2,423,683
Chicago II, GO, Refunding, Ser. A		6.00	1/1/2038	1,000,000		1,244,285
Chicago II, GO, Refunding, Ser. C		5.00	1/1/2024	1,250,000		1,378,990
Chicago II Wastewater Transmission, Revenue Bonds, Refunding, Ser. C		5.00	1/1/2039	1,000,000		1,138,837
Chicago O'Hare International Airport, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2048	3,000,000		3,663,820
Chicago O'Hare International Airport, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2034	1,000,000		1,142,035
Chicago Transit Authority, Revenue Bonds, Refunding, Ser. A		5.00	12/1/2045	1,000,000		1,246,039
Illinois, GO, Ser. C		5.00	11/1/2029	1,300,000		1,577,121
Illinois, GO, Ser. D		5.00	11/1/2028	3,500,000		4,276,215
Illinois Finance Authority, Revenue Bonds, Refunding (Lutheran Life Communities Obligated Group) Ser. A		5.00	11/1/2040	2,100,000		2,407,090

14

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
Illinois - 8.5% (continued)
Illinois Finance Authority, Revenue Bonds, Refunding (Rehab Institute of Chicago) Ser. A		6.00	7/1/2043	1,000,000		1,075,917
Illinois Finance Authority, Revenue Bonds, Refunding (Rosalind Franklin University of Medicine & Science)		5.00	8/1/2036	1,075,000		1,277,251
Metropolitan Pier & Exposition Authority, Revenue Bonds, Refunding (McCormick Place Expansion Project)		5.00	6/15/2050	1,000,000		1,226,984
Northern Illinois University, Revenue Bonds, Refunding (Insured; Build America Mutual)		4.00	10/1/2043	1,000,000		1,171,149
Sales Tax Securitization Corp., Revenue Bonds, Refunding, Ser. A		4.00	1/1/2038	1,400,000		1,656,124
Sales Tax Securitization Corp., Revenue Bonds, Refunding, Ser. A		4.00	1/1/2039	850,000		1,003,005
The Illinois Sports Facilities Authority, Revenue Bonds, Refunding (Insured; Build America Mutual)		5.00	6/15/2030	1,500,000		1,893,743
					32,903,294
Indiana - 2.0%
Indiana Finance Authority, Revenue Bonds (Green Bond) (RES Polyflow Indiana)		7.00	3/1/2039	3,625,000	c	3,515,030
Indiana Finance Authority, Revenue Bonds (Ohio Valley Electric Project) Ser. A		5.00	6/1/2039	1,750,000		1,791,388
Indiana Finance Authority, Revenue Bonds, Ser. A		5.00	7/1/2035	2,155,000		2,327,533
					7,633,951
Iowa - 2.8%
Iowa Finance Authority, Revenue Bonds, Refunding (Lifespace Communities Obligated Group) Ser. A		4.00	5/15/2046	2,500,000		2,803,482
Iowa Tobacco Settlement Authority, Revenue Bonds, Refunding, Ser. A2		4.00	6/1/2049	5,000,000		5,818,929
Iowa Tobacco Settlement Authority, Revenue Bonds, Refunding, Ser. B1		4.00	6/1/2049	2,000,000		2,318,030
					10,940,441

15

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
Kansas - .1%
Kansas Development Finance Authority, Revenue Bonds, Ser. B		4.00	11/15/2025	300,000		305,920
Kentucky - .6%
Louisville & Jefferson County Metropolitan Government, Revenue Bonds (Norton Healthcare Obligated Group) Ser. D		5.00	10/1/2029	1,000,000	a	1,301,634
Paducah Electric Plant Board, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. A		5.00	10/1/2035	750,000		905,988
					2,207,622
Louisiana - 1.3%
Louisiana Public Facilities Authority, Revenue Bonds, Refunding (Tulane University)		4.00	4/1/2050	2,000,000		2,310,110
New Orleans Aviation Board, Revenue Bonds, Ser. B		5.00	1/1/2048	1,500,000		1,782,524
St. John the Baptist Parish, Revenue Bonds, Refunding (Marathon Oil Corp.)		2.20	7/1/2026	1,000,000	a	1,057,416
					5,150,050
Massachusetts - 1.1%
Lowell Collegiate Charter School, Revenue Bonds		5.00	6/15/2049	1,750,000		1,927,029
Massachusetts Development Finance Agency, Revenue Bonds, Refunding (Bentley University) Ser. A		4.00	7/1/2040	650,000		779,287
Massachusetts Educational Financing Authority, Revenue Bonds		5.00	7/1/2029	1,250,000		1,595,184
					4,301,500
Michigan - 2.7%
Detroit, GO, Ser. A		5.00	4/1/2046	1,000,000		1,230,444
Michigan Finance Authority, Revenue Bonds, Refunding (Trinity Health Obligated Group)		5.00	6/1/2026	35,000	f	42,251
Michigan Tobacco Settlement Finance Authority, Revenue Bonds, Refunding, Ser. C		0.00	6/1/2058	114,680,000	g	5,798,003

16

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
Michigan - 2.7% (continued)
Tender Option Bond Trust Receipts (Series 2019-XF2837), (Michigan State Finance Authority, Revenue Bonds (Henry Ford Health System)) Recourse, Underlying Coupon Rate (%) 4.00		14.02	11/15/2050	2,930,000	c,d,e	3,370,082
					10,440,780
Missouri - 1.9%
Kansas City Industrial Development Authority, Revenue Bonds (Kansas City International Airport Terminal) Ser. A		5.00	3/1/2044	1,000,000		1,225,420
Missouri Health & Educational Facilities Authority, Revenue Bonds (Lutheran Senior Services Projects) Ser. A		5.00	2/1/2036	1,000,000		1,147,085
The Missouri Health & Educational Facilities Authority, Revenue Bonds (Lutheran Senior Services Projects) Ser. A		5.00	2/1/2042	1,000,000		1,117,900
The St. Louis Missouri Industrial Development Authority, Revenue Bonds, Refunding (Ballpark Village Development Project) Ser. A		4.75	11/15/2047	2,500,000		2,559,547
The St. Louis Missouri Industrial Development Authority, Tax Allocation Bonds (St. Louis Innovation District Project)		4.38	5/15/2036	1,200,000		1,222,602
					7,272,554
Nevada - 1.3%
Clark County School District, GO (Insured; Build America Mutual) Ser. B		5.00	6/15/2031	1,500,000		1,978,714
North Las Vegas, Special Assessment Bonds		4.63	6/1/2049	980,000		1,100,489
North Las Vegas, Special Assessment Bonds		4.63	6/1/2043	485,000		548,406
Reno, Revenue Bonds, Refunding, Ser. D		0.00	7/1/2058	13,000,000	c,g	1,423,447
					5,051,056
New Hampshire - .3%
New Hampshire Business Finance Authority, Revenue Bonds, Refunding (Springpoint Senior Living Obligated Group)		4.00	1/1/2041	1,000,000		1,104,756

17

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
New Jersey - 3.8%
New Jersey Economic Development Authority, Revenue Bonds (Beloved Community Charter School Project) Ser. A		5.00	6/15/2039	825,000	c	911,968
New Jersey Economic Development Authority, Revenue Bonds (Continental Airlines Project)		5.13	9/15/2023	770,000		809,136
New Jersey Economic Development Authority, Revenue Bonds, Refunding, Ser. XX		5.25	6/15/2027	1,000,000		1,175,452
New Jersey Economic Development Authority, Revenue Bonds, Ser. WW		5.25	6/15/2040	1,180,000		1,370,634
New Jersey Transportation Trust Fund Authority, Revenue Bonds		5.00	6/15/2046	1,500,000		1,846,610
New Jersey Transportation Trust Fund Authority, Revenue Bonds		5.25	6/15/2043	1,000,000		1,251,304
New Jersey Transportation Trust Fund Authority, Revenue Bonds, Refunding, Ser. A		5.00	12/15/2023	475,000		526,311
South Jersey Port Corp., Revenue Bonds, Ser. B		5.00	1/1/2042	1,500,000		1,793,622
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. A		5.00	6/1/2046	780,000		937,347
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. A		5.25	6/1/2046	350,000		428,629
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. B		5.00	6/1/2046	3,190,000		3,793,285
					14,844,298
New York - 10.0%
Metropolitan Transportation Authority, Revenue Bonds, Refunding (Green Bond) (Insured; Assured Guaranty Municipal Corp.) Ser. A1		4.00	11/15/2042	4,870,000		5,755,272
New York City, GO, Ser. C		4.00	8/1/2040	2,360,000		2,812,605
New York City, GO, Ser. D1		4.00	3/1/2050	3,000,000		3,473,744
New York City Water & Sewer System, Revenue Bonds, Refunding, Ser. 2nd		4.00	6/15/2041	2,500,000		2,956,079
New York Convention Center Development Corp., Revenue Bonds, Ser. B		0.00	11/15/2042	10,815,000	g	6,497,159
New York State Thruway Authority, Revenue Bonds, Refunding, Ser. A1		4.00	3/15/2053	3,500,000		4,114,793

18

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
New York - 10.0% (continued)
New York Transportation Development Corp., Revenue Bonds (Delta Air Lines)		5.00	1/1/2032	1,000,000		1,219,151
New York Transportation Development Corp., Revenue Bonds (LaGuardia Airport Terminal B Redevelopment Project) Ser. A		5.25	1/1/2050	2,000,000		2,249,633
Oneida County Local Development Corp., Revenue Bonds, Refunding (Mohawk Valley Health System Obligated Group) (Insured; Assured Guaranty Municipal Corp.)		4.00	12/1/2033	1,200,000		1,412,395
Port Authority of New York & New Jersey, Revenue Bonds, Refunding, Ser. 223		4.00	7/15/2051	1,500,000		1,741,154
Tender Option Bond Trust Receipts (Series 2020-XM0826), (Metropolitan Transportation Authority, Revenue Bonds, Refunding (Green Bond) (Insured; Assured Guaranty Municipal Corp., Ser. C)) Non-recourse, Underlying Coupon Rate (%) 4.00		12.14	11/15/2046	3,360,000	c,d,e	3,916,139
TSASC, Revenue Bonds, Refunding, Ser. B		5.00	6/1/2045	2,335,000		2,591,458
					38,739,582
North Carolina - 2.7%
North Carolina Medical Care Commission, Revenue Bonds, Refunding (Lutheran Services for the Aging Obligated Group)		4.00	3/1/2051	4,500,000		4,948,487
North Carolina Turnpike Authority, Revenue Bonds (Insured; Assured Guaranty Municipal Corp.)		4.00	1/1/2055	1,000,000		1,157,700
The Charlotte-Mecklenburg Hospital Authority, Revenue Bonds (Atrium Health Obligated Group)		5.00	12/1/2028	3,500,000	a	4,539,736
					10,645,923
Ohio - 3.1%
Buckeye Tobacco Settlement Financing Authority, Revenue Bonds, Refunding, Ser. B2		5.00	6/1/2055	7,000,000		8,145,854
Centerville, Revenue Bonds, Refunding (Graceworks Lutheran Services Obligated Group)		5.25	11/1/2047	1,200,000		1,340,129

19

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
Ohio - 3.1% (continued)
Cuyahoga County, Revenue Bonds, Refunding (The MetroHealth System)		5.00	2/15/2052	1,000,000		1,172,834
Franklin County Convention Facilities Authority, Revenue Bonds (GRTR Columbus Convention Center)		5.00	12/1/2044	1,250,000		1,497,462
					12,156,279
Oklahoma - .8%
Oklahoma Development Finance Authority, Revenue Bonds (OU Medicine Project) Ser. B		5.25	8/15/2048	1,500,000		1,832,598
Tulsa County Industrial Authority, Revenue Bonds, Refunding (Montereau Project)		5.25	11/15/2037	1,000,000		1,166,466
					2,999,064
Oregon - 1.1%
Clackamas County Hospital Facility Authority, Revenue Bonds, Refunding (Senior Living-Willamette View Project) Ser. A		5.00	11/15/2047	1,500,000		1,662,312
Warm Springs Reservation Confederated Tribe, Revenue Bonds, Refunding (Green Bond) Ser. B		5.00	11/1/2039	600,000	c	727,976
Yamhill County Hospital Authority, Revenue Bonds, Refunding (Friendsview Manor Obligated Group) Ser. A		5.00	11/15/2046	1,540,000		1,828,650
					4,218,938
Pennsylvania - 4.7%
Allentown Neighborhood Improvement Zone Development Authority, Revenue Bonds (City Center Project)		5.00	5/1/2042	1,500,000	c	1,742,414
Allentown School District, GO (Insured; Build America Mutual) Ser. C		5.00	2/1/2037	1,000,000		1,272,377
Chester County Industrial Development Authority, Special Assessment Bonds (Woodlands at Graystone Project)		5.13	3/1/2048	1,043,000	c	1,232,347
Crawford County Hospital Authority, Revenue Bonds, Refunding (Meadville Medical Center Project) Ser. A		6.00	6/1/2046	1,000,000		1,085,837

20

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
Pennsylvania - 4.7% (continued)
Lancaster County Hospital Authority, Revenue Bonds, Refunding (Brethren Village Project)		5.25	7/1/2041	1,000,000		1,153,585
Lancaster County Hospital Authority, Revenue Bonds, Refunding (St. Anne's Retirement Community Obligated Group)		5.00	3/1/2050	500,000		570,331
Lancaster County Hospital Authority, Revenue Bonds, Refunding (St. Anne's Retirement Community Obligated Group)		5.00	3/1/2045	500,000		571,719
Lancaster County Hospital Authority, Revenue Bonds, Refunding (St. Anne's Retirement Community Obligated Group)		5.00	3/1/2040	500,000		575,909
Luzerne County Industrial Development Authority, Revenue Bonds, Refunding (Pennsylvania-American Water Co.)		2.45	12/3/2029	2,270,000	a	2,476,308
Montgomery County Higher Education & Health Authority, Revenue Bonds, Refunding (Thomas Jefferson University Project)		4.00	9/1/2034	1,000,000		1,176,557
Pennsylvania Economic Development Financing Authority, Revenue Bonds (Greed Bond) (Covanta Project)		3.25	8/1/2039	850,000	c	886,305
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Refunding (University of Sciences)		5.00	11/1/2033	1,000,000		1,143,358
Pennsylvania Turnpike Commission, Revenue Bonds, Ser. B		4.00	12/1/2051	1,500,000		1,762,941
Philadelphia, GO, Ser. A		4.00	5/1/2042	1,000,000		1,190,628
The Philadelphia School District, GO (Insured; State Aid Withholding) Ser. A		4.00	9/1/2039	1,350,000		1,583,943
					18,424,559
Rhode Island - .4%
Rhode Island Student Loan Authority, Revenue Bonds, Ser. A		5.00	12/1/2030	1,175,000		1,520,182
South Carolina - .9%
South Carolina Public Service Authority, Revenue Bonds, Refunding, Ser. A		4.00	12/1/2036	1,500,000		1,825,081

21

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
South Carolina - .9% (continued)
South Carolina Public Service Authority, Revenue Bonds, Refunding, Ser. E		5.25	12/1/2055	1,400,000		1,642,937
					3,468,018
Tennessee - 1.4%
Tennergy Corp., Revenue Bonds, Ser. A		4.00	9/1/2028	4,500,000	a	5,377,725
Texas - 6.8%
Arlington Higher Education Finance Corp., Revenue Bonds, Refunding (Uplift Education) Ser. A		5.00	12/1/2046	1,100,000		1,268,595
Brazos Higher Education Authority, Revenue Bonds, Ser. 1A		5.00	4/1/2027	1,210,000		1,422,046
Central Texas Regional Mobility Authority, Revenue Bonds, Ser. A		5.00	1/1/2045	1,000,000		1,148,766
Clifton Higher Education Finance Corp., Revenue Bonds (International Leadership) Ser. A		5.75	8/15/2045	1,500,000		1,726,311
Clifton Higher Education Finance Corp., Revenue Bonds (International Leadership) Ser. D		6.13	8/15/2048	3,950,000		4,597,317
Houston Airport System, Revenue Bonds, Refunding (United Airlines) Ser. A		6.50	7/15/2030	1,500,000		1,509,882
Mission Economic Development Corp., Revenue Bonds, Refunding (Natgasoline Project)		4.63	10/1/2031	2,000,000	c	2,106,086
New Hope Cultural Education Facilities Finance Corp., Revenue Bonds, Refunding (Westminster Manor Project)		5.00	11/1/2040	2,070,000		2,317,373
New Hope Cultural Education Facilities Finance Corp., Revenue Bonds, Refunding (Westminster Project)		4.00	11/1/2055	1,250,000		1,419,583
Port Beaumont Navigation District, Revenue Bonds		3.00	1/1/2050	1,000,000	c	992,414
San Antonio Education Facilities Corp., Revenue Bonds, Refunding (University of The Incarnate Word)		4.00	4/1/2051	1,750,000		2,027,227
San Antonio Texas Electric & Gas Systems, Revenue Bonds, Refunding, Ser. A		5.00	2/1/2038	1,750,000		2,300,006
Tarrant County Cultural Education Facilities Finance Corp., Revenue Bonds, Refunding (MRC Stevenson Oaks Project)		6.75	11/15/2051	1,000,000		1,189,641

22

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
Texas - 6.8% (continued)
Texas Private Activity Bond Surface Transportation Corp., Revenue Bonds (Blueridge Transportation Group)		5.00	12/31/2055	1,000,000		1,121,162
Texas Private Activity Bond Surface Transportation Corp., Revenue Bonds (Blueridge Transportation Group)		5.00	12/31/2050	1,000,000		1,123,726
					26,270,135
U.S. Related - 4.8%
Puerto Rico, GO, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. A		5.00	7/1/2035	1,000,000		1,027,078
Puerto Rico, GO, Refunding Ser. A		8.00	7/1/2035	7,830,000	h	6,665,287
Puerto Rico Highway & Transportation Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Corp.) Ser. L		5.25	7/1/2041	1,500,000		1,723,066
Puerto Rico Highway & Transportation Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. CC		5.25	7/1/2034	1,000,000		1,119,592
Puerto Rico Sales Tax Financing Corp., Revenue Bonds, Ser. A1		0.00	7/1/2033	4,031,000	g	3,039,118
Puerto Rico Sales Tax Financing Corp., Revenue Bonds, Ser. A2		4.33	7/1/2040	4,344,000		4,938,188
					18,512,329
Utah - .6%
Utah Infrastructure Agency, Revenue Bonds, Refunding, Ser. A		5.00	10/15/2037	2,000,000		2,374,571
Virginia - 1.4%
Chesterfield County Economic Development Authority, Revenue Bonds, Refunding (Brandermill Woods Project)		5.13	1/1/2043	155,000		155,988
Norfolk Redevelopment & Housing Authority, Revenue Bonds (Fort Norfolk Retirement Community Obligated Group) Ser. A		5.00	1/1/2049	1,000,000		1,087,233
Virginia College Building Authority, Revenue Bonds (Green Bond) (Marymount University Project)		5.00	7/1/2045	500,000	c	540,051
Virginia College Building Authority, Revenue Bonds, Refunding (Marymount University Project) Ser. A		5.00	7/1/2045	1,000,000	c	1,080,102

23

STATEMENT OF INVESTMENTS (continued)

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
Virginia - 1.4% (continued)
Virginia Small Business Financing Authority, Revenue Bonds (Covanta Project)		5.00	7/1/2038	750,000	a,c	796,647
Virginia Small Business Financing Authority, Revenue Bonds (Transform 66 P3 Project)		5.00	12/31/2052	1,400,000		1,679,342
					5,339,363
Washington - 2.0%
Port of Seattle, Revenue Bonds		4.00	4/1/2044	1,000,000		1,136,594
Washington Higher Education Facilities Authority, Revenue Bonds (Seattle University Project)		4.00	5/1/2045	1,000,000		1,155,860
Washington Housing Finance Commission, Revenue Bonds, Refunding (Presbyterian Retirement Communities Northwest Obligated Group) Ser. A		5.00	1/1/2051	1,120,000	c	1,225,742
Washington Housing Finance Commission, Revenue Bonds, Refunding (Presbyterian Retirement Communities Northwest Obligated Group) Ser. A		5.00	1/1/2046	1,680,000	c	1,841,451
Washington Housing Finance Commission, Revenue Bonds, Ser. A1		3.50	12/20/2035	1,993,074		2,342,121
					7,701,768
Wisconsin - 3.1%
Public Finance Authority, Revenue Bonds (Appalachian State University Project) (Insured; Assured Guaranty Municipal Corp.) Ser. A		4.00	7/1/2045	1,850,000		2,090,271
Public Finance Authority, Revenue Bonds (Roseman University of Heath Sciences)		5.00	4/1/2050	1,850,000	c	2,206,723
Public Finance Authority, Revenue Bonds (Southminster Obligated Group)		5.00	10/1/2043	2,000,000	c	2,227,859
Public Finance Authority, Revenue Bonds (WFCS Holdings) Ser. A1		5.00	1/1/2055	2,000,000	c	2,342,051
Public Finance Authority, Revenue Bonds (WFCS Portfolio Project) Ser. A1		5.00	1/1/2056	1,000,000	c	1,178,613
Public Finance Authority, Revenue Bonds, Refunding (Mary's Woods At Marylhurst Obligated Group)		5.25	5/15/2037	625,000	c	691,625

24

Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 100.3%(continued)
Wisconsin - 3.1% (continued)
Wisconsin Health & Educational Facilities Authority, Revenue Bonds, Refunding (St. Camillus Health System Obligated Group)		5.00	11/1/2054	1,250,000		1,345,016
					12,082,158
TotalLong-Term Municipal Investments (cost $356,958,524)				389,010,750
Total Investments (cost $358,022,056)				100.6%	390,115,179
Liabilities, Less Cash and Receivables				(0.6%)	(2,200,472)
Net Assets				100.0%	387,914,707

^aThese securities have a put feature; the date shown represents the put date and the bond holder can take a specific action to retain the bond after the put date.

^bZero coupon until a specified date at which time the stated coupon rate becomes effective until maturity.

^cSecurity exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2021, these securities were valued at $85,420,257 or 22.02% of net assets.

^dThe Variable Rate shall be determined by the Remarketing Agent in its sole discretion based on prevailing market conditions and may, but need not, be established by reference to one or more financial indices.

^eCollateral for floating rate borrowings. The coupon rate given represents the current interest rate for the inverse floating rate security.

^fThese securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on the municipal issue and to retire the bonds in full at the earliest refunding date.

^gSecurity issued with a zero coupon. Income is recognized through the accretion of discount.

^hNon-income producing—security in default.

25

STATEMENT OF INVESTMENTS (continued)

Portfolio Summary (Unaudited) †	Value (%)
General	15.1
Education	14.2
Nursing Homes	13.9
Development	9.2
Medical	8.9
Tobacco Settlement	7.1
Transportation	6.8
General Obligation	6.4
Airport	4.2
Water	3.5
School District	2.7
Housing	2.3
Power	1.6
Utilities	1.3
Student Loan	1.2
Multifamily Housing	.9
Special Tax	.6
Prerefunded	.5
Pollution	.2
	100.6

^†Based on net assets.

See notes to financial statements.

26

Summary of Abbreviations (Unaudited)
ABAG	Association of Bay Area Governments	AGC	ACE Guaranty Corporation
AGIC	Asset Guaranty Insurance Company	AMBAC	American Municipal Bond Assurance Corporation
BAN	Bond Anticipation Notes	BSBY	Bloomberg Short-Term Bank Yield Index
CIFG	CDC Ixis Financial Guaranty	COP	Certificate of Participation
CP	Commercial Paper	DRIVERS	Derivative Inverse Tax-Exempt Receipts
EFFR	Effective Federal Funds Rate	FGIC	Financial Guaranty Insurance Company
FHA	Federal Housing Administration	FHLB	Federal Home Loan Bank
FHLMC	Federal Home Loan Mortgage Corporation	FNMA	Federal National Mortgage Association
GAN	Grant Anticipation Notes	GIC	Guaranteed Investment Contract
GNMA	Government National Mortgage Association	GO	General Obligation
IDC	Industrial Development Corporation	LIBOR	London Interbank Offered Rate
LOC	Letter of Credit	LR	Lease Revenue
NAN	Note Anticipation Notes	MFHR	Multi-Family Housing Revenue
MFMR	Multi-Family Mortgage Revenue	MUNIPSA	Securities Industry and Financial Markets Association Municipal Swap Index Yield
OBFR	Overnight Bank Funding Rate	PILOT	Payment in Lieu of Taxes
PRIME	Prime Lending Rate	PUTTERS	Puttable Tax-Exempt Receipts
RAC	Revenue Anticipation Certificates	RAN	Revenue Anticipation Notes
RIB	Residual Interest Bonds	SFHR	Single Family Housing Revenue
SFMR	Single Family Mortgage Revenue	SOFR	Secured Overnight Financing Rate
TAN	Tax Anticipation Notes	TRAN	Tax and Revenue Anticipation Notes
U.S. T-Bill	U.S. Treasury Bill Money Market Yield	XLCA	XL Capital Assurance

See notes to financial statements.

27

STATEMENT OF ASSETS AND LIABILITIES

August 31, 2021

	Cost	Value
Assets ($):
Investments in securities—See Statement of Investments	358,022,056	390,115,179
Cash		15,361,524
Interest receivable		3,629,618
Receivable for shares of Common Stock subscribed		213,384
Prepaid expenses		49,614
		409,369,319
Liabilities ($):
Due to BNY Mellon Investment Adviser, Inc. and affiliates—Note 3(c)		203,950
Payable for floating rate notes issued—Note 4		15,990,000
Payable for investment securities purchased		4,657,815
Payable for shares of Common Stock redeemed		485,444
Interest and expense payable related to floating rate notes issued—Note 4		28,827
Directors’ fees and expenses payable		1,738
Other accrued expenses		86,838
		21,454,612
Net Assets ($)		387,914,707
Composition of Net Assets ($):
Paid-in capital		370,777,780
Total distributable earnings (loss)		17,136,927
Net Assets ($)		387,914,707

Net Asset Value Per Share	Class A	Class C	Class I	Class Y	Class Z
Net Assets ($)	150,608,888	14,446,650	168,241,684	836,559	53,780,926
Shares Outstanding	11,387,765	1,092,789	12,743,271	63,282	4,073,904
Net Asset Value Per Share ($)	13.23	13.22	13.20	13.22	13.20
See notes to financial statements.

28

STATEMENT OF OPERATIONS

Year Ended August 31, 2021

Investment Income ($):
Interest Income	12,538,017
Expenses:
Management fee—Note 3(a)	1,428,346
Shareholder servicing costs—Note 3(c)	445,706
Distribution/Service Plan fees—Note 3(b)	165,369
Professional fees	109,315
Registration fees	103,250
Interest and expense related to floating rate notes issued—Note 4	96,472
Directors’ fees and expenses—Note 3(d)	22,250
Chief Compliance Officer fees—Note 3(c)	14,319
Prospectus and shareholders’ reports	13,019
Loan commitment fees—Note 2	12,707
Custodian fees—Note 3(c)	6,557
Miscellaneous	34,119
Total Expenses	2,451,429
Less—reduction in fees due to earnings credits—Note 3(c)	(4,878)
Net Expenses	2,446,551
Investment Income—Net	10,091,466
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments	583,434
Net change in unrealized appreciation (depreciation) on investments	19,179,852
Net Realized and Unrealized Gain (Loss) on Investments	19,763,286
Net Increase in Net Assets Resulting from Operations	29,854,752
See notes to financial statements.

29

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended August 31,
	2021	2020
Operations ($):
Investment income—net	10,091,466	10,533,472
Net realized gain (loss) on investments	583,434	(9,189,194)
Net change in unrealized appreciation (depreciation) on investments	19,179,852	(7,976,102)
Net Increase (Decrease) in Net Assets Resulting from Operations	29,854,752	(6,631,824)
Distributions ($):
Distributions to shareholders:
Class A	(3,749,883)	(3,894,438)
Class C	(353,002)	(473,028)
Class I	(4,214,215)	(4,543,208)
Class Y	(25,580)	(13,425)
Class Z	(1,706,723)	(1,819,020)
Total Distributions	(10,049,403)	(10,743,119)
Capital Stock Transactions ($):
Net proceeds from shares sold:
Class A	71,197,241	55,627,773
Class C	1,749,610	4,251,439
Class I	80,900,615	118,872,437
Class Y	329,666	517,389
Class Z	1,241,476	2,247,892
Distributions reinvested:
Class A	3,164,702	3,257,365
Class C	341,261	415,324
Class I	4,075,346	4,425,523
Class Y	20,716	8,533
Class Z	1,360,777	1,433,874
Cost of shares redeemed:
Class A	(39,447,154)	(54,484,923)
Class C	(4,789,823)	(6,424,426)
Class I	(37,223,509)	(131,707,521)
Class Y	(270,030)	(114,330)
Class Z	(3,122,615)	(3,955,777)
Increase (Decrease) in Net Assets from Capital Stock Transactions	79,528,279	(5,629,428)
Total Increase (Decrease) in Net Assets	99,333,628	(23,004,371)
Net Assets ($):
Beginning of Period	288,581,079	311,585,450
End of Period	387,914,707	288,581,079

30

		Year Ended August 31,
		2021	2020
Capital Share Transactions (Shares):
Class Aa
Shares sold		5,485,351	4,426,582
Shares issued for distributions reinvested		245,915	262,833
Shares redeemed		(3,059,729)	(4,556,157)
Net Increase (Decrease) in Shares Outstanding		2,671,537	133,258
Class Ca
Shares sold		134,341	345,956
Shares issued for distributions reinvested		26,650	33,628
Shares redeemed		(372,855)	(526,055)
Net Increase (Decrease) in Shares Outstanding		(211,864)	(146,471)
Class Ib
Shares sold		6,241,790	9,742,623
Shares issued for distributions reinvested		317,336	357,054
Shares redeemed		(2,923,824)	(10,924,106)
Net Increase (Decrease) in Shares Outstanding		3,635,302	(824,429)
Class Yb
Shares sold		25,843	44,851
Shares issued for distributions reinvested		1,611	695
Shares redeemed		(21,416)	(9,411)
Net Increase (Decrease) in Shares Outstanding		6,038	36,135
Class Z
Shares sold		96,656	180,101
Shares issued for distributions reinvested		106,198	116,108
Shares redeemed		(245,279)	(326,332)
Net Increase (Decrease) in Shares Outstanding		(42,425)	(30,123)
a	During the period ended August 31, 2020, 2,768 Class C shares representing $36,487 were automatically converted to 2,768 Class A shares.
b	During the period ended August 31, 2021, 6,022 Class Y shares representing $74,133 were exchanged for 6,027 Class I shares.
See notes to financial statements.

31

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share. Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. These figures have been derived from the fund’s financial statements.

Class A Shares	Year Ended August 31,
	2021	2020	2019	2018	2017
Per Share Data ($):
Net asset value, beginning of period	12.40	12.92	12.49	12.25	12.51
Investment Operations:
Investment income—net a	.40	.41	.47	.47	.45
Net realized and unrealized gain (loss) on investments	.83	(.51)	.43	.26	(.25)
Total from Investment Operations	1.23	(.10)	.90	.73	.20
Distributions:
Dividends from investment income—net	(.40)	(.42)	(.46)	(.47)	(.45)
Dividends from net realized gain on investments	-	-	(.01)	(.02)	(.01)
Total Distributions	(.40)	(.42)	(.47)	(.49)	(.46)
Net asset value, end of period	13.23	12.40	12.92	12.49	12.25
Total Return (%)b	10.07	(.72)	7.44	6.10	1.76
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.85	.92	.86	.95	1.00
Ratio of net expenses to average net assets	.85	.92	.86	.87	.98
Ratio of interest and expense related to floating rate notes issued to average net assets	.03	.09	.01	.02	.01
Ratio of net investment income to average net assets	3.10	3.31	3.80	3.83	3.85
Portfolio Turnover Rate	10.03	69.21	39.68	34.62	32.84
Net Assets, end of period ($ x 1,000)	150,609	108,054	110,928	85,904	53,364

^aBased on average shares outstanding.

^bExclusive of sales charge.

See notes to financial statements.

32

Class C Shares	Year Ended August 31,
	2021	2020	2019	2018	2017
Per Share Data ($):
Net asset value, beginning of period	12.39	12.92	12.49	12.25	12.51
Investment Operations:
Investment income—net a	.30	.32	.38	.37	.37
Net realized and unrealized gain (loss) on investments	.83	(.53)	.43	.27	(.26)
Total from Investment Operations	1.13	(.21)	.81	.64	.11
Distributions:
Dividends from investment income—net	(.30)	(.32)	(.37)	(.38)	(.36)
Dividends from net realized gain on investments	-	-	(.01)	(.02)	(.01)
Total Distributions	(.30)	(.32)	(.38)	(.40)	(.37)
Net asset value, end of period	13.22	12.39	12.92	12.49	12.25
Total Return (%)b	9.23	(1.55)	6.62	5.31	.98
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	1.62	1.68	1.63	1.71	1.77
Ratio of net expenses to average net assets	1.62	1.68	1.62	1.63	1.75
Ratio of interest and expense related to floating rate notes issued to average net assets	.03	.09	.01	.02	.01
Ratio of net investment income to average net assets	2.33	2.55	3.05	3.06	3.10
Portfolio Turnover Rate	10.03	69.21	39.68	34.62	32.84
Net Assets, end of period ($ x 1,000)	14,447	16,167	18,748	16,943	18,030

^aBased on average shares outstanding.

^bExclusive of sales charge.

See notes to financial statements.

33

FINANCIAL HIGHLIGHTS (continued)

Class I Shares	Year Ended August 31,
	2021	2020	2019	2018	2017
Per Share Data ($):
Net asset value, beginning of period	12.38	12.90	12.47	12.23	12.49
Investment Operations:
Investment income—net a	.43	.43	.50	.49	.49
Net realized and unrealized gain (loss) on investments	.82	(.50)	.43	.27	(.26)
Total from Investment Operations	1.25	(.07)	.93	.76	.23
Distributions:
Dividends from investment income—net	(.43)	(.45)	(.49)	(.50)	(.48)
Dividends from net realized gain on investments	-	-	(.01)	(.02)	(.01)
Total Distributions	(.43)	(.45)	(.50)	(.52)	(.49)
Net asset value, end of period	13.20	12.38	12.90	12.47	12.23
Total Return (%)	10.25	(.49)	7.71	6.37	2.00
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.62	.68	.62	.72	.75
Ratio of net expenses to average net assets	.62	.68	.62	.63	.72
Ratio of interest and expense related to floating rate notes issued to average net assets	.03	.09	.01	.02	.01
Ratio of net investment income to average net assets	3.33	3.52	4.04	4.07	4.09
Portfolio Turnover Rate	10.03	69.21	39.68	34.62	32.84
Net Assets, end of period ($ x 1,000)	168,242	112,713	128,139	89,203	41,770

^aBased on average shares outstanding.

See notes to financial statements.

34

Class Y Shares	Year Ended August 31,
	2021	2020	2019	2018	2017
Per Share Data ($):
Net asset value, beginning of period	12.39	12.91	12.48	12.24	12.50
Investment Operations:
Investment income—net a	.43	.45	.51	.50	.49
Net realized and unrealized gain (loss) on investments	.83	(.52)	.42	.26	(.26)
Total from Investment Operations	1.26	(.07)	.93	.76	.23
Distributions:
Dividends from investment income—net	(.43)	(.45)	(.49)	(.50)	(.48)
Dividends from net realized gain on investments	-	-	(.01)	(.02)	(.01)
Total Distributions	(.43)	(.45)	(.50)	(.52)	(.49)
Net asset value, end of period	13.22	12.39	12.91	12.48	12.24
Total Return (%)	10.35	(.47)	7.69	6.37	2.03
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.60	.67	.59	.68	.73
Ratio of net expenses to average net assets	.60	.67	.59	.63	.72
Ratio of interest and expense related to floating rate notes issued to average net assets	.03	.09	.01	.02	.01
Ratio of net investment income to average net assets	3.35	3.76	4.10	4.06	4.12
Portfolio Turnover Rate	10.03	69.21	39.68	34.62	32.84
Net Assets, end of period ($ x 1,000)	837	709	273	1,280	1,430

^aBased on average shares outstanding.

See notes to financial statements.

35

FINANCIAL HIGHLIGHTS (continued)

Class Z Shares	Year Ended August 31,
	2021	2020	2019	2018	2017
Per Share Data ($):
Net asset value, beginning of period	12.37	12.90	12.47	12.23	12.49
Investment Operations:
Investment income—net a	.42	.43	.49	.49	.48
Net realized and unrealized gain (loss) on investments	.83	(.52)	.43	.26	(.27)
Total from Investment Operations	1.25	(.09)	.92	.75	.21
Distributions:
Dividends from investment income—net	(.42)	(.44)	(.48)	(.49)	(.46)
Dividends from net realized gain on investments	-	-	(.01)	(.02)	(.01)
Total Distributions	(.42)	(.44)	(.49)	(.51)	(.47)
Net asset value, end of period	13.20	12.37	12.90	12.47	12.23
Total Return (%)	10.25	(.65)	7.59	6.25	1.88
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.70	.76	.71	.80	.89
Ratio of net expenses to average net assets	.70	.76	.71	.73	.85
Ratio of interest and expense related to floating rate notes issued to average net assets	.03	.09	.01	.02	.01
Ratio of net investment income to average net assets	3.25	3.49	3.96	3.96	3.98
Portfolio Turnover Rate	10.03	69.21	39.68	34.62	32.84
Net Assets, end of period ($ x 1,000)	53,781	50,938	53,498	52,576	55,931

^aBased on average shares outstanding.

See notes to financial statements.

36

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

BNY Mellon High Yield Municipal Bond Fund (the “fund”) is a separate diversified series of BNY Mellon Municipal Funds, Inc. (the “Company”), which is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company and operates as a series company currently offering two series, including the fund. The fund’s investment objective is to seek high current income exempt from federal income tax. BNY Mellon Investment Adviser, Inc. (the “Adviser”), a wholly-owned subsidiary of The Bank of New York Mellon Corporation (“BNY Mellon”), serves as the fund’s investment adviser. Effective September 1, 2021 (the “Effective Date”), the Adviser has engaged its affiliate, Insight North America LLC (“INA”) as the fund’s sub-investment adviser pursuant to a sub-investment advisory agreement between the Adviser and INA. As the fund’s sub-adviser, INA provides the day-to-day management of the fund’s investments, subject to the Adviser’s supervision and approval. The Adviser (and not the fund) pays INA for its sub-advisory services. As of the Effective Date, portfolio managers responsible for managing the fund’s investments who were employees of Mellon Investments Corporation (“Mellon”) in a dual employment arrangement with the Adviser, have become employees of INA, and are no longer employees of Mellon.

BNY Mellon Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Adviser, is the distributor of the fund’s shares. The fund is authorized to issue 600 million shares of $.001 par value Common Stock. The fund currently has authorized five classes of shares: Class A (100 million shares authorized), Class C (100 million shares authorized), Class I (150 million shares authorized), Class Y (150 million shares authorized) and Class Z (100 million shares authorized). Class A and Class C shares are sold primarily to retail investors through financial intermediaries and bear Distribution and/or Shareholder Services Plan fees. Class A shares generally are subject to a sales charge imposed at the time of purchase. Class A shares bought without an initial sales charge as part of an investment of $1 million or more may be charged a contingent deferred sales charge (“CDSC”) of 1.00% if redeemed within one year. Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase. Class C shares automatically convert to Class A shares eight years after the date of purchase, without the imposition of a sales charge. Class I shares are sold primarily to bank trust departments and other financial service providers (including The Bank of New York Mellon, a subsidiary of BNY Mellon and an affiliate of the Adviser, and its affiliates), acting on behalf of customers having a qualified trust or an

37

NOTES TO FINANCIAL STATEMENTS (continued)

investment account or relationship at such institution, and bear no Distribution or Shareholder Services Plan fees. Class Y shares are sold at net asset value per share generally to institutional investors, and bear no Distribution or Shareholder Services Plan fees. Class Z shares are sold at net asset value per share to certain shareholders of the fund. Class Z shares generally are not available for new accounts and bear Shareholder Service Plan fees. Class I, Class Y and Class Z shares are offered without a front-end sales charge or CDSC. Other differences between the classes include the services offered to and the expenses borne by each class, the allocation of certain transfer agency costs, and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

The Company accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.

The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund is an investment company and applies the accounting and reporting guidance of the FASB ASC Topic 946 Financial Services-Investment Companies. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The Companyenters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown. The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

38

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted quoted prices in active markets for identical investments.

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:

Investments in securities are valued each business day by an independent pricing service (the “Service”) approved by the Company’s Board of Directors (the “Board”). Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Debt investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service, based on methods which include consideration of the following: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. All of the preceding securities are generally categorized within Level 2 of the fair value hierarchy.

The Service is engaged under the general oversight of the Board.

When market quotations or official closing prices are not readily available, or are determined not to accurately reflect fair value, such as when the value of a security has been significantly affected by events after the close

39

NOTES TO FINANCIAL STATEMENTS (continued)

of the exchange or market on which the security is principally traded, but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.

For securities where observable inputs are limited, assumptions about market activity and risk are used and such securities are generally categorized within Level 3 of the fair value hierarchy.

The following is a summary of the inputs used as of August 31, 2021in valuing the fund’s investments:

	Level 1-Unadjusted Quoted Prices	Level 2- Other Significant Observable Inputs	Level 3-Significant Unobservable Inputs	Total
Assets ($)
Investments In Securities:†
Collateralized Municipal-Backed Securities	-	1,104,429	-	1,104,429
Municipal Securities	-	389,010,750	-	389,010,750
Liabilities ($)
Other Financial Instruments:
Floating Rate Notes††	-	(15,990,000)	-	(15,990,000)

^†See Statement of Investments for additional detailed categorizations, if any.

^††Certain of the fund’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes.

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Interest income, adjusted for accretion of discount and amortization of premium on investments, is earned from settlement date and recognized on the accrual basis. Securities purchased or sold on a when issued or delayed delivery basis may be settled a month or more after the trade date.

(c) Risk: Certain events particular to the industries in which the fund’s investments conduct their operations, as well as general economic, political

40

and public health conditions, may have a significant negative impact on the investee’s operations and profitability. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the fund. Global economies and financial markets are becoming increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. Recent examples include pandemic risks related to COVID-19 and aggressive measures taken world-wide in response by governments, including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines of large populations, and by businesses, including changes to operations and reducing staff. To the extent the fund may overweight its investments in certain countries, companies, industries or market sectors, such positions will increase the fund’s exposure to risk of loss from adverse developments affecting those countries, companies, industries or sectors.

(d) Dividends and distributions to shareholders: It is the policy of the fund to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”). To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

(e) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, which can distribute tax-exempt dividends, by complying with the applicable provisions of the Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.

As of and during the period ended August 31, 2021, the fund did not have any liabilities for any uncertain tax positions. The fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of Operations. During the period ended August 31, 2021, the fund did not incur any interest or penalties.

41

NOTES TO FINANCIAL STATEMENTS (continued)

Each tax year in the four-year period ended August 31, 2021 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At August 31, 2021, the components of accumulated earnings on a tax basis were as follows: undistributed tax-exempt income $397,245, accumulated capital losses $14,513,281 and unrealized appreciation $31,252,963.

The fund is permitted to carry forward capital losses for an unlimited period. Furthermore, capital loss carryovers retain their character as either short-term or long-term capital losses.

The accumulated capital loss carryover is available for federal income tax purposes to be applied against future netrealized capital gains, if any, realized subsequent to August 31, 2021. The fund has $7,931,544 of short-term capital losses and $6,581,737 of long-term capital losses which can be carried forward for an unlimited period.

The tax character of distributions paid to shareholders during the fiscal periods ended August 31, 2021 and August 31, 2020 were as follows: tax-exempt income $10,049,403 and $10,711,441, and ordinary income $0 and $31,678, respectively.

(f) New accounting pronouncements: In March 2020, the FASB issued Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), and in January 2021, the FASB issued Accounting Standards Update 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the LIBOR and other interbank offered rates as of the end of 2021. The temporary relief provided by ASU 2020-04 and ASU 2021-01 is effective for certain reference rate-related contract modifications that occur during the period from March 12, 2020 through December 31, 2022. Management is evaluating the impact of ASU 2020-04 and ASU 2021-01on the fund’s investments, derivatives, debt and other contracts that will undergo reference rate-related modifications as a result of the reference rate reform. Management is also currently actively working with other financial institutions and counterparties to modify contracts as required by applicable regulation and within the regulatory deadlines.

42

NOTE 2—Bank Lines of Credit:

The fund participates with other long-term open-end funds managed by the Adviser in a $823.5 million unsecured credit facility led by Citibank, N.A. (the “Citibank Credit Facility”) and a $300 million unsecured credit facility provided by The Bank of New York Mellon (the “BNYM Credit Facility”), a subsidiary of BNY Mellon and an affiliate of the Adviser, each to be utilized primarily for temporary or emergency purposes, including the financing of redemptions (each, a “Facility”). The Citibank Credit Facility is available in two tranches: (i) Tranche A is in an amount equal to $688.5 million and is available to all long-term open-ended funds, including the fund, and (ii) Tranche B is an amount equal to $135 million and is available only to BNY Mellon Floating Rate Income Fund, a series of BNY Mellon Investment Funds IV, Inc. Prior to September 30, 2020, the Citibank Credit Facility was $927 million with Tranche A available in an amount equal to $747 million and Tranche B available in an amount equal to $180 million. In connection therewith, the fund has agreed to pay its pro rata portion of commitment fees for Tranche A of the Citibank Credit Facility and the BNYM Credit Facility. Interest is charged to the fund based on rates determined pursuant to the terms of the respective Facility at the time of borrowing. During the period ended August 31, 2021, the fund did not borrow under the Facilities.

NOTE 3—Management Fee, Sub-Investment Advisory Fee and Other Transactions with Affiliates:

(a) Pursuant to a management agreement with the Adviser, the management fee is computed at the annual rate of .45% of the value of the fund’s average daily net assets and is payable monthly. The Adviser had contractually agreed, from September 1, 2020 through December 31, 2020, to waive receipt of its fees and/or assume the direct expenses of the fund, so that the direct expenses of Class A, Class C, Class I, Class Y and Class Z shares of the fund (including Rule 12b-1 Distribution Plan fees, Shareholder Services Plan fees, taxes, interest expense, brokerage commission, commitment fees on borrowings and extraordinary expenses) did not exceed an annual rate of .85%, 1.61%, .61%, .61% and .73%, respectively, of the value of the fund’s average daily net assets. The Adviser has contractually agreed, from January 1, 2021 through December 31, 2021, to waive receipt of its fees and/or assume the direct expenses of the fund, so that the direct expenses of Class A, Class C, Class I, Class Y and Class Z shares of the fund (including certain expense as described above) do not exceed an annual rate of .95%, 1.68%, .68%, .67% and .76%, respectively, of the value of the fund’s average daily net assets. On or after December 31, 2021, the Adviser may terminate this expense limitation at

43

NOTES TO FINANCIAL STATEMENTS (continued)

any time. During the period ended August 31, 2021, there were no reduction in expenses pursuant to the undertaking.

Effective as of the Effective Date, pursuant to a sub-investment advisory agreement between the Adviser and INA, the Adviser pays the INA a monthly fee at an annual rate of .216% of the value of the fund’s average daily net assets.

During the period ended August 31, 2021, the Distributor retained $1,671 from commissions earned on sales of the fund’s Class A shares and $17,604 and $332 from CDSC fees on redemptions of the fund’s Class A and Class C shares, respectively.

(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act, Class C shares pay the Distributor for distributing its shares at an annual rate of .75% of the value of its average daily net assets. The Distributor may pay one or more Service Agents in respect of advertising, marketing and other distribution services, and determines the amounts, if any, to be paid to Service Agents and the basis on which such payments are made. During the period ended August 31, 2021, Class C shares were charged $112,000 pursuant to the Distribution Plan.

Under the Service Plan adopted pursuant to Rule 12b-1 under the Act, Class Z shares reimburse the Distributor for distributing its shares and servicing shareholder accounts at an amount not to exceed an annual rate of .25% of the value of the average daily net assets of Class Z shares. During the period ended August 31, 2021, Class Z shares were charged $53,369 pursuant to the Service Plan.

(c)Under the Shareholder Services Plan, Class A and Class C shares pay the Distributor at an annual rate of .25% of the value of their average daily net assets for the provision of certain services. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund, and services related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents (securities dealers, financial institutions or other industry professionals) with respect to these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended August 31, 2021, Class A and Class C shares were charged $304,625and $37,333, respectively, pursuant to the Shareholder Services Plan.

The fund has arrangements with the transfer agent and the custodian whereby the fund may receive earnings credits when positive cash balances are maintained, which are used to offset transfer agency and custody fees. For financial reporting purposes, the fund includes transfer agent net

44

earnings credits, if any, as shareholder servicing costs and includes custody net earnings credits, if any, as an expense offset in the in the Statement of Operations.

The fund compensates BNY Mellon Transfer, Inc., a wholly-owned subsidiary of the Adviser, under a transfer agency agreement for providing transfer agency and cash management services inclusive of earnings credits, if any, for the fund. The majority of transfer agency fees are comprised of amounts paid on a per account basis, while cash management fees are related to fund subscriptions and redemptions. During the period ended August 31, 2021, the fund was charged $23,117 for transfer agency services, inclusive of earnings credit, if any. These fees are included in Shareholder servicing costs in the Statement of Operations.

The fund compensates The Bank of New York Mellon under a custody agreement for providing custodial services for the fund. These fees are determined based on net assets, geographic region and transaction activity. During the period ended August 31, 2021, the fund was charged $6,557 pursuant to the custody agreement. These fees were partially offset by earnings credits of $4,878.

The fund compensates The Bank of New York Mellon under a shareholder redemption draft processing agreement for providing certain services related to the fund’s check writing privilege. During the period ended August 31, 2021, the fund was charged $554 pursuant to the agreement, which is included in Shareholder servicing costs in the Statement of Operations.

During the period ended August 31, 2021, the fund was charged $14,319 for services performed by the Chief Compliance Officer and his staff. These fees are included in Chief Compliance Officer fees in the Statement of Operations.

The components of “Due to BNY Mellon Investment Adviser, Inc. and affiliates” in the Statement of Assets and Liabilities consist of: management fees of $144,500, Distribution Plan fees of $13,733, Shareholder Services Plan fees of $33,931, custodian fees of $2,403, Chief Compliance Officer fees of $6,286 and transfer agency fees of $3,097.

(d) Each Board member also serves as a Board member of other funds in the BNY Mellon Family of Funds complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales (including paydowns) of investment securities, excluding short-term securities, during the period

45

NOTES TO FINANCIAL STATEMENTS (continued)

ended August 31, 2021, amounted to $98,901,037 and $31,290,341, respectively.

Inverse Floater Securities: The fund participates in secondary inverse floater structures in which fixed-rate, tax-exempt municipal bonds are transferred to a trust (the “Inverse Floater Trust”). The Inverse Floater Trust typically issues two variable rate securities that are collateralized by the cash flows of the fixed-rate, tax-exempt municipal bonds. One of these variable rate securities pays interest based on a short-term floating rate set by a remarketing agent at predetermined intervals (“Trust Certificates”). A residual interest tax-exempt security is also created by the Inverse Floater Trust, which is transferred to the fund, and is paid interest based on the remaining cash flows of the Inverse Floater Trust, after payment of interest on the other securities and various expenses of the Inverse Floater Trust. An Inverse Floater Trust may be collapsed without the consent of the fund due to certain termination events such as bankruptcy, default or other credit event.

The fund accounts for the transfer of bonds to the Inverse Floater Trust as secured borrowings, with the securities transferred remaining in the fund’s investments, and the Trust Certificates reflected as fund liabilities in the Statement of Assets and Liabilities.

The fund may invest in inverse floater securities on either a non-recourse or recourse basis. These securities are typically supported by a liquidity facility provided by a bank or other financial institution (the “Liquidity Provider”) that allows the holders of the Trust Certificates to tender their certificates in exchange for payment from the Liquidity Provider of par plus accrued interest on any business day prior to a termination event. When the fund invests in inverse floater securities on a non-recourse basis, the Liquidity Provider is required to make a payment under the liquidity facility due to a termination event to the holders of the Trust Certificates. When this occurs, the Liquidity Provider typically liquidates all or a portion of the municipal securities held in the Inverse Floater Trust. A liquidation shortfall occurs if the Trust Certificates exceed the proceeds of the sale of the bonds in the Inverse Floater Trust (“Liquidation Shortfall”). When a fund invests in inverse floater securities on a recourse basis, the fund typically enters into a reimbursement agreement with the Liquidity Provider where the fund is required to repay the Liquidity Provider the amount of any Liquidation Shortfall. As a result, a fund investing in a recourse inverse floater security bears the risk of loss with respect to any Liquidation Shortfall.

The average amount of borrowings outstanding under the inverse floater structure during the period ended August 31, 2021 was approximately

46

$17,354,384, with a related weighted average annualized interest rate of .56%.

At August 31, 2021, the cost of investments for federal income tax purposes was $342,872,216; accordingly, accumulated net unrealized appreciation on investments was $31,252,963, consisting of $32,458,063 gross unrealized appreciation and $1,205,100 gross unrealized depreciation.

47

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of BNY Mellon High Yield Municipal Bond Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of BNY Mellon High Yield Municipal Bond Fund (the “Fund”) (one of the funds constituting BNY Mellon Municipal Funds, Inc.), including the statement of investments, as of August 31, 2021, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting BNY Mellon Municipal Funds, Inc.) at August 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of the Fund’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2021, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more investment companies in the BNY Mellon Family of Funds since at least 1957, but we are unable to determine the specific year.

New York, New York
October 22, 2021

48

IMPORTANT TAX INFORMATION (Unaudited)

In accordance with federal tax law, the fund hereby reports all the dividends paid from investment income-net during its fiscal year ended August 31, 2021. as “exempt-interest dividends” (not generally subject to regular federal income tax). Where required by federal tax law rules, shareholders will receive notification of their portion of the fund’s taxable ordinary dividends (if any), capital gains distributions (if any) and tax-exempt dividends paid for the 2021 calendar year on Form 1099-DIV, which will be mailed in early 2022.

49

INFORMATION ABOUT THE APPROVAL OF THE FUND’S MANAGEMENT AGREEMENT AND APPROVAL OF SUB-INVESTMENT ADVISORY AGREEMENT (Unaudited)

At a meeting of the fund’s Board of Directors held on May 10, 2021 (the “Meeting”), the Board discussed with representatives of the Adviser plans to realign Mellon Investments Corporation’s (“Mellon”) fixed-income capabilities with Insight North America LLC (“INA”) (the “Firm Realignment”), with such realignment scheduled to occur, subject to regulatory requirements, in the third quarter of 2021 (the “Effective Date”). The Adviser noted that, as a result of the Firm Realignment, the portfolio managers who are currently responsible for managing the investments of the fund as employees of Mellon in a dual employment arrangement with the Adviser, will become employees of INA as of the Effective Date. Consequently, the Adviser proposed to engage INA to serve as the fund’s sub-investment adviser, pursuant to a sub-investment advisory agreement between the Adviser and INA (the “New Sub-Advisory Agreement”), to be effective on the Effective Date. In addition, the Adviser proposed amending the fund’s current management agreement (the “Current Management Agreement”) to more clearly reflect the Adviser’s ability to employ one or more sub-investment advisers to manage the fund on a day-to-day basis and the Adviser’s responsibility to oversee and supervise any such sub-investment adviser, and to reflect the engagement of INA as sub-investment adviser to the fund (as proposed to be amended, the “Amended Management Agreement”), to be effective on the Effective Date.

At the Meeting, the Adviser recommended the approval of the New Sub-Advisory Agreement, pursuant to which INA would serve as sub-investment adviser to the fund, and the Amended Management Agreement. The recommendation for the approval of the New Sub-Advisory Agreement and the Amended Management Agreement was based on the following considerations, among others: (i) approval of the New Sub-Advisory Agreement and the Amended Management Agreement would permit the fund’s current portfolio managers to continue to be responsible for the day-to-day management of the fund’s portfolio after the Effective Date as employees of INA; (ii) there will be no material changes to the fund’s investment objective, strategies or policies, no reduction in the nature or level of services provided to the fund, and no increases in the management fee payable by the fund as a result of the proposed changes to the investment advisory arrangements; and (iii) the Adviser (and not the fund) will pay INA for its sub-investment advisory services. The Board also considered the fact that the Adviser stated that it believes there are no material changes to the information the Board had previously considered at a Board meeting on November 2-3, 2020 (the “15(c) Meeting”), at which the Board re-approved the Current Management Agreement for the ensuing year, other than the information about the Firm Realignment and INA.

At the Meeting, the Board members, a majority of whom are not “interested persons” (as defined in the Investment Company Act of 1940, as amended (the “1940 Act”)) of the fund (the “Independent Directors”), considered and approved the New Sub-Advisory Agreement and the Amended Management Agreement. In determining whether to approve the New Sub-Advisory Agreement and the Amended Management Agreement, the Board considered the materials prepared by the Adviser received in

50

advance of the Meeting and other information presented at the Meeting, which included: (i) a form of the New Sub-Advisory Agreement and a form of the Amended Management Agreement; (ii) information regarding the Firm Realignment and how it is expected to enhance investment capabilities; (iii) information regarding INA; and (iv) an opinion of counsel that the proposed changes to the investment advisory arrangements would not result in an “assignment” of the Current Management Agreement under the 1940 Act and the Investment Advisers Act of 1940, as amended, and, therefore, do not require the approval of fund shareholders. The Board also considered the substance of discussions with representatives of the Adviser at the Meeting and the 15(c) Meeting.

Nature, Extent and Quality of Services to be Provided. In examining the nature, extent and quality of the services that were expected to be provided by INA to the fund under the New Sub-Advisory Agreement, the Board considered: (i) INA’s organization, qualification and background, as well as the qualifications of its personnel; (ii) the expertise of the personnel providing portfolio management services, which would remain the same after the Effective Date; and (iii) the investment strategy for the fund, which would remain the same after the Effective Date. The Board also considered the review process undertaken by the Adviser and the Adviser’s favorable assessment of the nature and quality of the sub-investment advisory services expected to be provided to the fund by INA after the Effective Date. Based on their consideration and review of the foregoing information, the Board concluded that the nature, extent and quality of the sub-investment advisory services to be provided by INA under the New Sub-Advisory Agreement, as well as INA’s ability to render such services based on its resources and the experience of the investment team, which will include the fund’s current portfolio managers, were adequate and appropriate for the fund in light of the fund’s investment objective, and supported a decision to approve the New Sub-Advisory Agreement. The Board also considered, as it related to the Amended Management Agreement, that the nature, extent and quality of the services that are provided by the Adviser are expected to remain the same, including the Adviser’s extensive administrative, accounting and compliance infrastructures, as well as the Adviser’s supervisory activities over the fund’s portfolio management personnel.

Investment Performance. The Board had considered the fund’s investment performance and that of the investment team managing the fund’s portfolio at the 15(c) Meeting (including comparative data provided by Broadridge Financial Solutions, Inc.). The Board considered the performance and that the same investment professionals would continue to manage the fund’s assets after the Effective Date, as factors in evaluating the services to be provided by INA under the New Sub-Advisory Agreement after the Effective Date, and determined that these factors, when viewed together with the other factors considered by the Board, supported a decision to approve the New Sub-Advisory Agreement and the Amended Management Agreement.

Costs of Services to be Provided and Profitability. The Board considered the proposed fee payable under the New Sub-Advisory Agreement, noting that the proposed fee would be paid by the Adviser and, thus, would not impact the fees paid by the fund or the Adviser’s profitability. The Board considered the fee payable to INA in relation to

51

INFORMATION ABOUT THE APPROVAL OF THE FUND’S MANAGEMENT AGREEMENT AND APPROVAL OF SUB-INVESTMENT ADVISORY AGREEMENT (Unaudited) (continued)

the fee paid to the Adviser by the fund and the respective services provided by INA and the Adviser. The Board recognized that, because INA’s fee would be paid by the Adviser, and not the fund, an analysis of profitability was more appropriate in the context of the Board’s consideration of the fund’s Current Management Agreement, and that the Board had received and considered a profitability analysis of the Adviser and its affiliates, including INA, at the 15(c) Meeting. The Board concluded that the proposed fee payable to INA by the Adviser was appropriate and the Adviser’s profitability was not excessive in light of the nature, extent and quality of the services to be provided to the fund by the Adviser under the Amended Management Agreement and INA under the New Sub-Advisory Agreement.

Economies of Scale to be Realized. The Board recognized that, because the fee payable to INA would be paid by the Adviser, and not the fund, an analysis of economies of scale was more appropriate in the context of the Board’s consideration of the Current Management Agreement, which had been done at the 15(c) Meeting. At the 15(c) Meeting, the Board determined that the economies of scale which may accrue to the Adviser and its affiliates in connection with the management of the fund had been adequately considered by the Adviser in connection with the fee rate charged to the fund pursuant to the Current Management Agreement and that, to the extent in the future it were determined that material economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.

The Board also considered whether there were any ancillary benefits that would accrue to INA as a result of its relationship with the fund, and such ancillary benefits, if any, were determined to be reasonable.

In considering the materials and information described above, the Independent Directors received assistance from, and met separately with, their independent legal counsel, and were provided with a written description of their statutory responsibilities and the legal standards that are applicable to the approval of investment advisory and sub-investment advisory agreements.

After full consideration of the factors discussed above, with no single factor identified as being of paramount importance, the Board members, a majority of whom are Independent Directors, with the assistance of independent legal counsel, approved the New Sub-Advisory Agreement and Amended Management Agreement for the fund effective as of the Effective Date.

52

LIQUIDITY RISK MANAGEMENT PROGRAM (Unaudited)

Effective June 1, 2019, the fund adopted a liquidity risk management program (the “Liquidity Risk Management Program”) pursuant to the requirements of Rule 22e-4 under the Investment Company Act of 1940, as amended. Rule 22e-4 requires registered open-end funds, including mutual funds and exchange-traded funds but not money market funds, to establish liquidity risk management programs in order to effectively manage fund liquidity and shareholder redemptions. The rule is designed to mitigate the risk that a fund could not meet redemption requests without significantly diluting the interests of remaining investors.

The rule requires the fund to assess, manage and review their liquidity risk at least annually considering applicable factors such as investment strategy and liquidity during normal and foreseeable stressed conditions, including whether the strategy is appropriate for an open-end fund and whether the fund has a relatively concentrated portfolio or large positions in particular issuers. The fund must also assess its use of borrowings and derivatives, short-term and long-term cash flow projections in normal and stressed conditions, holdings of cash and cash equivalents, and borrowing arrangements and other funding sources.

The rule also requires the fund to classify its investments as highly liquid, moderately liquid, less liquid or illiquid based on the number of days the fund expects it would take to liquidate the investment, and to review these classifications at least monthly or more often under certain conditions. The periods range from three or fewer business days for a highly liquid investment to greater than seven calendar days for settlement of a less liquid investment. Illiquid investments are those a fund does not expect to be able to sell or dispose of within seven calendar days without significantly changing the market value. The fund is prohibited from acquiring an investment if, after the acquisition, its holdings of illiquid assets will exceed 15% of its net assets. In addition, if a fund permits redemptions in-kind, the rule requires the fund to establish redemption in-kind policies and procedures governing how and when it will engage in such redemptions.

Pursuant to the rule’s requirements, the Liquidity Risk Management Program has been reviewed and approved by the Board. Furthermore, the Board has received a written report prepared by the Program’s Administrator that addresses the operation of the Program, assesses its adequacy and effectiveness and describes any material changes made to the Program.

Assessment of Program

In the opinion of the Program Administrator, the Program approved by the Board continues to be adequate for the fund and the Program has been implemented effectively. The Program Administrator has monitored the fund’s liquidity risk and the liquidity classification of the securities held by the fund and has determined that the Program is operating effectively.

During the period from January 1, 2020 to December 31, 2020, there were no material changes to the Program and no material liquidity events that impacted the fund. During the period, the fund held sufficient highly liquid assets to meet fund redemptions.

Under normal expected foreseeable fund redemption forecasts and foreseeable stressed fund redemption forecasts, the Program Administrator believes that the fund maintains sufficient highly liquid assets to meet expected fund redemptions.

53

BOARD MEMBERS INFORMATION (Unaudited)

INDEPENDENT BOARD MEMBERS

Joseph S. DiMartino (77)

Chairman of the Board (1995)

Principal Occupation During Past 5 Years:

·Director and Trustee of funds in the BNY Mellon Family of Funds and certain other entities (as described in the fund’s Statement of Additional Information) (1995-Present)

Other Public Company Board Memberships During Past 5 Years:

·CBIZ, Inc., a public company providing professional business services, products and solutions, Director (1997-Present)

No. of Portfolios for which Board Member Serves: 97

———————

Joni Evans (79)

Board Member (1991)

Principal Occupation During Past 5 Years:

·www.wowOwow.com, an online community dedicated to women’s conversations and publications, Chief Executive Officer (2007-2019)

·Joni Evans Ltd. publishing, Principal (2006-2019)

No. of Portfolios for which Board Member Serves: 18

———————

Joan Gulley (73)

Board Member (2017)

Principal Occupation During Past 5 Years:

·Nantucket Atheneum, public library, Chair (2018-June 2021) and Director (2015-June 2021)

·Orchard Island Club, golf and beach club, Governor (2016-Present)

No. of Portfolios for which Board Member Serves: 43

———————

54

Alan H. Howard (61)

Board Member (2018)

Principal Occupation During Past 5 Years:

·Heathcote Advisors LLC, a financial advisory services firm, Managing Partner (2008-Present)

·Dynatech/MPX Holdings LLC, a global supplier and service provider of military aircraft parts, President (2012-2019); and Board Member of its two operating subsidiaries, Dynatech International LLC and Military Parts Exchange LLC (2012-2019), including Chief Executive Officer of an operating subsidiary, Dynatech International LLC (2013-2019)

·Rossoff & Co., an independent investment banking firm, Senior Advisor (2013-June 2021)

Other Public Company Board Memberships During Past 5 Years:

·Movado Group, Inc., a public company that designs, sources, markets and distributes watches, Director (1997-Present)

·Diamond Offshore Drilling, Inc., a public company that provides contract drilling services, Director (March 2020-April 2021)

No. of Portfolios for which Board Member Serves: 18

———————

Robin A. Melvin (57)

Board Member (2006)

Principal Occupation During Past 5 Years:

·Westover School, a private girls’ boarding school in Middlebury, Connecticut, Trustee (2019-Present)

·Mentor Illinois, a non-profit organization dedicated to increasing the quality of mentoring services in Illinois. Co-Chair (2014–2020); Board Member, Mentor Illinois (2013-2020)

·JDRF, a non-profit juvenile diabetes research foundation, Board Member (June 2021-Present)

Other Public Company Board Memberships During Past 5 Years:

·HPS Corporate Lending Fund, a closed-end management investment company regulated as a business development company, Trustee (August 2021-Present)

No. of Portfolios for which Board Member Serves: 76

———————

Burton N. Wallack (70)

Board Member (1991)

Principal Occupation During Past 5 Years:

Wallack Management Company, a real estate management company, President and Co-owner (1987-Present)

Other Public Company Board Memberships During Past 5 Years:

Mount Sinai Hospital Urology Board Member (2017-Present)

No. of Portfolios for which Board Member Serves: 18

———————

55

BOARD MEMBERS INFORMATION (Unaudited) (continued)
INDEPENDENT BOARD MEMBERS (continued)

Benaree Pratt Wiley (75)

Board Member (2006)

Principal Occupation During Past 5 Years:

·The Wiley Group, a firm specializing in strategy and business development. Principal (2005-Present)

Other Public Company Board Memberships During Past 5 Years:

·CBIZ, Inc., a public company providing professional business services, products and solutions, Director (2008-Present)

·Blue Cross Blue Shield of Massachusetts Director (2004-2020)

No. of Portfolios for which Board Member Serves: 62

———————

Once elected all Board Members serve for an indefinite term, but achieve Emeritus status upon reaching age 80. The address of the Board Members and Officers is c/o BNY Mellon Investment Adviser, Inc. 240 Greenwich Street, New York, New York 10286. Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from the Adviser free of charge by calling this toll free number: 1-800-373-9387.

Hodding Carter III, Emeritus Board Member
Gordon J. Davis, Emeritus Board Member
Ehud Houminer, Emeritus Board Member
Hans C. Mautner, Emeritus Board Member

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OFFICERS OF THE FUND (Unaudited)

DAVID DIPETRILLO, President since January 2021.

Vice President and Director of the Adviser since February 2021, Head of North America Product, BNY Mellon Investment Management since January 2018, Director of Product Strategy, BNY Mellon Investment Management from January 2016 to December 2017; He is an officer of 56 investment companies (comprised of 106 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 43 years old and has been an employee of BNY Mellon since 2005.

JAMES WINDELS, Treasurer since November 2001.

Vice President of the Adviser since September 2020, Director-BNY Mellon Fund Administration, and an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 62 years old and has been an employee of the Adviser since April 1985.

PETER M. SULLIVAN, Chief Legal Officer since July 2021 and Vice President and Assistant Secretary since March 2019.

Chief Legal Officer of the Adviser since July 2021, Associate General Counsel of BNY Mellon since July 2021;Senior Managing Counsel of BNY Mellon from December 2020 to July 2021; Managing Counsel of BNY Mellon from March 2009 to December 2020, and an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 53 years old and has been an employee of BNY Mellon since April 2004.

JAMES BITETTO, Vice President since August 2005 and Secretary since February 2018.

Senior Managing Counsel of BNY Mellon since December 2019; Managing Counsel of BNY Mellon from April 2014 to December 2019; Secretary of the Adviser, and an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 55 years old and has been an employee of the Adviser since December 1996.

DEIRDRE CUNNANE, Vice President and Assistant Secretary since March 2019.

Counsel of BNY Mellon since August 2018; Senior Regulatory Specialist at BNY Mellon Investment Management Services from February 2016 to August 2018. She is an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 31 years old and has been an employee of the Adviser since August 2018.

SARAH S. KELLEHER, Vice President and Assistant Secretary since April 2014.

Managing Counsel of BNY Mellon since December 2017, Senior Counsel of BNY Mellon from March 2013 to December 2017. She is an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 45 years old and has been an employee of the Adviser since March 2013.

JEFF PRUSNOFSKY, Vice President and Assistant Secretary since August 2005.

Senior Managing Counsel of BNY Mellon, and an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 56 years old and has been an employee of the Adviser since October 1990.

AMANDA QUINN, Vice President and Assistant Secretary since March 2020.

Counsel of BNY Mellon since June 2019; Regulatory Administration Manager at BNY Mellon Investment Management Services from September 2018 to May 2019; Senior Regulatory Specialist at BNY Mellon Investment Management Services from April 2015 to August 2018. She is an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 36 years old and has been an employee of the Adviser since June 2019.

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OFFICERS OF THE FUND (Unaudited) (continued)

NATALYA ZELENSKY, Vice President and Assistant Secretary since March 2017.

Chief Compliance Officer (since August 2021) and Vice President and Assistant Secretary (since February 2020) of BNY Mellon ETF Investment Adviser, LLC; Chief Compliance Officer (since August 2021) and Vice President (since February 2020) of BNY Mellon ETF Trust; Managing Counsel (December 2019 to August 2021) and Counsel (May 2016 to December 2019) of BNY Mellon; Assistant Secretary of the Adviser from April 2018 to August 2021. She is an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 36 years old and has been an employee of BNY Mellon since May 2016.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager-BNY Mellon Fund Administration, and an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 53 years old and has been an employee of the Adviser since April 1991.

ROBERT SALVIOLO, Assistant Treasurer since July 2007.

Senior Accounting Manager–BNY Mellon Fund Administration, and an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 54 years old and has been an employee of the Adviser since June 1989.

ROBERT SVAGNA, Assistant Treasurer since August 2005.

Senior Accounting Manager–BNY Mellon Fund Administration, and an officer of 57 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 54 years old and has been an employee of the Adviser since November 1990.

JOSEPH W. CONNOLLY, Chief Compliance Officer since October 2004.

Chief Compliance Officer of the BNY Mellon Family of Funds and BNY Mellon Funds Trust since 2004, CCO of the Adviser from 2004 until June 2021 (56 investment companies, comprised of 119 portfolios). He is 64 years old and has served in various capacities with the Adviser since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

CARIDAD M. CAROSELLA, Anti-Money Laundering Compliance Officer since January 2016.

Anti-Money Laundering Compliance Officer of the BNY Mellon Family of Funds and BNY Mellon Funds Trust. She is an officer of 50 investment companies (comprised of 121 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 53 years old and has been an employee of the Distributor since 1997.

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For More Information

BNY Mellon High Yield Municipal Bond Fund

240 Greenwich Street

New York, NY 10286

Adviser

BNY Mellon Investment Adviser, Inc.

240 Greenwich Street

New York, NY 10286

Sub-Adviser

Insight North America, LLC
200 Park Avenue, 7^th Floor

New York, NY 10166

Custodian

The Bank of New York Mellon

240 Greenwich Street

New York, NY 10286

Transfer Agent &
Dividend Disbursing Agent

BNY Mellon Transfer, Inc.

240 Greenwich Street

New York, NY 10286

Distributor

BNY Mellon Securities Corporation

240 Greenwich Street

New York, NY 10286

Ticker Symbols: Class A: DHYAX Class C: DHYCX Class I: DYBIX Class Y: DHYYX Class Z: DHMBX

Telephone Call your financial representative or 1-800-373-9387

Mail The BNY Mellon Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144

E-mail Send your request toinfo@bnymellon.com

Internet Information can be viewed online or downloaded at www.im.bnymellon.com

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-PORT. The fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov.

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the fund voted these proxies for the most recent 12-month period ended June 30 is available at www.im.bnymellon.comand on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-373-9387.

© 2021 BNY Mellon Securities Corporation
6165AR0821

Item 2. Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.

Item 3. Audit Committee Financial Expert.

The Registrant's Board has determined that Alan Howard, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC"). Mr. Howard is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $70,989 in 2020 and $70,988 in 2021.

(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $20,989 in 2020 and $21,166 in 2021. These services consisted of one or more of the following: (i) agreed upon procedures related to compliance with Internal Revenue Code section 817(h), (ii) security counts required by Rule 17f-2 under the Investment Company Act of 1940, as amended, (iii) advisory services as to the accounting or disclosure treatment of Registrant transactions or events and (iv) advisory services to the accounting or disclosure treatment of the actual or potential impact to the Registrant of final or proposed rules, standards or interpretations by the Securities and Exchange Commission, the Financial Accounting Standards Boards or other regulatory or standard-setting bodies.

The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $0 in 2020 and $0 in 2021.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice, and tax planning ("Tax Services") were $5,179 in 2020 and $9,408 in 2021. These services consisted of: (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments; (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held, and (iv) determination of Passive Foreign Investment Companies. The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates, which required pre-approval by the Audit Committee $0 in 2020 and $0 in 2021.

(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $0 in 2020 and $1,499 in 2021. These services consisted of a review of the Registrant's anti-money laundering program.

The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee, were $0 in 2020 and $0 in 2021.

(e)(1) Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. The pre-approved services in the Policy can include pre-approved audit services, pre-approved audit-related services, pre-approved tax services and pre-approved all other services. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence. Pre-approvals pursuant to the Policy are considered annually.

(e)(2) Note. None of the services described in paragraphs (b) through (d) of this Item 4 were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) None of the hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.

Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods $671,818 in 2020 and $2,692,122 in 2021.

Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence.

Item 5. Audit Committee of Listed Registrants.

Not applicable,

Item 6. Investments.

(a) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures applicable to Item 10.

Item 11. Controls and Procedures.

(a)       The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b)       There were no changes to the Registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.

(a)(1) Code of ethics referred to in Item 2.

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(a)(3) Not applicable.

(b)       Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

BNY Mellon Municipal Funds, Inc.

By: /s/ David DiPetrillo

David DiPetrillo

President (Principal Executive Officer)

Date: October 20, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By: /s/ David DiPetrillo

David DiPetrillo

President (Principal Executive Officer)

Date: October 20, 2021

By: /s/ James Windels

James Windels

Treasurer (Principal Financial Officer)

Date: October 20, 2021

EXHIBIT INDEX

(a)(1) Code of ethics referred to in Item 2.

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)

(b)       Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)