N-CSR/A 1 lp1-122a112022.htm ANNUAL REPORTS - AMENDED

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:		08/31/22

FORM N-CSR

Item 1. Reports to Stockholders.

BNY Mellon AMT-Free Municipal Bond Fund

ANNUAL REPORT

August 31, 2022

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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

THE FUND


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	32
Statement of Operations	33
Statement of Changes in Net Assets	34
Financial Highlights	36
Notes to Financial Statements	41
Report of Independent Registered Public Accounting Firm	51
Important Tax Information	52
Liquidity Risk Management Program	53
Board Members Information	54
Officers of the Fund	57

FOR MORE INFORMATION

Back Cover

DISCUSSION OF FUND PERFORMANCE (Unaudited)

For the period from September 1, 2021, through August 31, 2022, as provided by portfolio managers, Daniel Rabasco and Thomas Casey of Insight North America LLC, fund’s sub-adviser

Market and Fund Performance Overview

For the 12-month period ended August 31, 2022, BNY Mellon AMT-Free Municipal Bond Fund’s (the “fund”) Class A shares achieved a total return of −9.39%, Class C shares returned −10.00%, Class I shares returned −9.09%, Class Y shares returned −9.08% and Class Z shares returned −9.18%.¹ In comparison, the fund’s benchmark, the Bloomberg U.S. Municipal Bond Index (the “Index”), produced a total return of −8.63%.²

Municipal bonds lost ground during the period as investors took note of rising inflation and higher interest rates. The fund lagged the Index mainly due to unfavorable yield curve positioning and asset allocation.

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.

Markets Hindered by Inflation and Rising Rates

Fixed-income markets posted a negative performance during the reporting period as interest rates rose significantly driven by investor worries about rising inflation, tightening monetary policy from the Federal Reserve (the “Fed”) and Russia’s invasion of Ukraine.

Early in the reporting period, the municipal bond market continued to benefit from policies put in place in response to the COVID-19 pandemic, including both direct and indirect support from the federal government for state and local governments and agencies and authorities. This federal support, the economic recovery and stronger balance sheets and liquidity for individuals produced significant inflows into municipal bond mutual funds.

The fiscal health of issuers was also supported by an economy that was strong early in the reporting period. During much of the pandemic, real estate and income tax collections failed to decline as much as predicted, and progressive tax regimes proved beneficial because higher-earning, white-collar workers were largely able to work from home. Strong stock market returns also boosted revenues from capital gains taxes.

Later in the reporting period, however, a number of headwinds emerged. As oil prices rose, inflation measures reached multi-decade highs. This raised the possibility that higher prices would slow consumer spending and the broader economy.

In addition, the Fed began to act on the signals it sent late in 2021 that it would be raising the federal funds rate. In March 2022, the Fed raised the federal funds rate by 25 basis points (bps) and followed that up in May 2022, with an increase of 50 bps. In June and July, rates were again raised, this time by 75 bps each time, bringing the federal funds target rate to between 2.25% and 2.50%. The Fed also announced that its quantitative tightening program, in which it begins to reduce its bond holdings, would begin in June 2022.

Fears that the economy could slow were realized when the first-quarter GDP figures were released in April 2022 showing the economy declined somewhat. A still-strong labor market, however, suggested that the economy could rebound. Second-quarter data, however, showed that the economy shrank again, making for two consecutive quarters of decline, a rough indicator of recession. Inflation readings remained very high, greatly exceeding the Fed’s target of 2.00% and pointed to the strong possibility of additional rate hikes through the rest of 2022.

The persistence of higher-than-expected inflation, combined with measures from the Fed to combat it, led to higher interest rates and investors reacted by redeeming shares from municipal bond mutual funds, especially in the second half of the reporting period. The need for fund managers to meet redemptions only added to the downward momentum.

While headwinds prevailed over much of the period, and outflows have been substantial, credit fundamentals in the municipal market remained strong. In addition, turmoil has resulted in more attractive valuations in many segments of the market, creating the potential for outperformance in the future.

Yield Curve Positioning and Asset Allocation Hindered Fund Results

The fund lagged the Index during the reporting period due largely to its yield curve positioning and asset allocation. Specifically, bonds with longer maturities underperformed, and the fund’s overweight to revenue bonds also lagged the Index. An overweight position in callable bonds also detracted from performance. Among revenue bonds, positions in the prepaid gas segment were particularly detrimental. Security selections in the hospital and transportation segments harmed performance as did selections among general obligation bonds.

On a more positive note, the fund’s short duration relative to the Index was beneficial. In addition, security selection in the housing, transportation and airport segments was also advantageous. The fund did not make use of derivatives during the period.

Positioned for a Flatter Municipal Bond Curve

We are maintaining a barbell yield curve positioning in the fund. An overweight positioning in short-dated bonds for liquidity and reinvestment opportunities, along with an allocation to longer maturities with higher coupons, could improve performance potential. We anticipate that longer bonds will perform well since the municipal bond curve is likely to flatten following the inversion of the Treasury yield curve. We will also target fund duration relatively neutral versus the Index.

DISCUSSION OF FUND PERFORMANCE (Unaudited) (continued)

In addition, since yield spreads have widened, we are looking for opportunities particularly among A and BBB rated securities, focusing on those with strong fundamentals.

September 15, 2022

¹ Total 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, 2022, at which time it may be extended, terminated or modified. Had these expenses not been absorbed, the fund’s returns would have been lower.

² Source: 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.

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 8/31/12 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.

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 8/31/12 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.


Average Annual Total Returns as of 8/31/2022
	Inception
	Date	1 Year	5 Years	10 Years
Class A shares
with maximum sales charge (4.50%)	3/31/03	-13.47%	-.04%	1.56%
without sales charge	3/31/03	-9.39%	.89%	2.02%
Class C shares
with applicable redemption charge ^†	3/31/03	-10.88%	.15%	1.27%
without redemption	3/31/03	-10.00%	.15%	1.27%
Class I shares	12/15/08	-9.09%	1.16%	2.28%
Class Y shares	7/1/13	-9.08%	1.20%	2.34%^††
Class Z shares	5/6/94	-9.18%	1.11%	2.25%
Bloomberg U.S. Municipal Bond Index		-8.63%	1.28%	2.25%

^† 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.

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, 2022 to August 31, 2022. 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, 2022

	Class A	Class C	Class I	Class Y	Class Z
Expenses paid per $1,000^†	$3.42	$7.07	$2.20	$2.20	$2.40
Ending value (after expenses)	$938.10	$934.60	$939.30	$939.40	$939.20

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, 2022

		Class A	Class C	Class I	Class Y	Class Z
Expenses paid per $1,000^†		$3.57	$7.38	$2.29	$2.29	$2.50
Ending value (after expenses)		$1,021.68	$1,017.90	$1,022.94	$1,022.94	$1,022.74
^†	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 .49% for Class Z, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

STATEMENT OF INVESTMENTS

August 31, 2022



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 $3,129,572)		3.63	5/20/2033	2,851,312		2,757,924

Long-Term Municipal Investments - 98.8%
Alabama - 4.2%
Auburn University, Revenue Bonds, Refunding, Ser. A		4.00	6/1/2036	1,000,000		1,012,300
Birmingham-Jefferson Civic Center Authority, Special Tax Bonds, Ser. A		5.00	7/1/2031	1,100,000		1,197,586
Birmingham-Jefferson Civic Center Authority, Special Tax Bonds, Ser. B		5.00	7/1/2043	3,555,000		3,715,961
Black Belt Energy Gas District, Revenue Bonds (Project No. 4) Ser. A1		4.00	12/1/2025	1,500,000	^a	1,515,752
Black Belt Energy Gas District, Revenue Bonds (Project No. 5) Ser. A1		4.00	10/1/2026	4,250,000	^a	4,281,322
Jefferson County, Revenue Bonds, Refunding		5.00	9/15/2032	2,665,000		2,901,314
Jefferson County, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. C		6.60	10/1/2042	14,000,000	^b	14,255,430
Selma Industrial Development Board, Revenue Bonds, Refunding (International Paper Co.)		2.00	10/1/2024	1,875,000	^a	1,828,195
Southeast Energy Authority, Revenue Bonds (Project No. 2) Ser. B		4.00	12/1/2031	1,000,000	^a	984,532
The Lower Alabama Gas District, Revenue Bonds (Gas Project)		4.00	12/1/2025	5,000,000	^a	5,049,335
University of Alabama at Birmingham, Revenue Bonds, Ser. B		4.00	10/1/2037	3,595,000		3,587,379
					40,329,106
Arizona - 2.9%
Arizona Industrial Development Authority, Revenue Bonds (Equitable School Revolving Fund LLC Obligated Group) Ser. A		4.00	11/1/2051	10,000,000		8,999,975

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Arizona - 2.9% (continued)
Arizona Industrial Development Authority, Revenue Bonds (Phoenix Children's Hospital Obligated Group)		5.00	2/1/2027	1,050,000		1,143,441
Glendale Industrial Development Authority, Revenue Bonds, Refunding (Sun Health Services Obligated Group) Ser. A		5.00	11/15/2054	3,000,000		3,108,572
Glendale Industrial Development Authority, Revenue Bonds, Refunding (Sun Health Services Obligated Group) Ser. A		5.00	11/15/2048	1,500,000		1,556,660
La Paz County Industrial Development Authority, Revenue Bonds (Harmony Public Schools) Ser. A		5.00	2/15/2036	1,750,000	^c	1,772,011
Maricopa County Industrial Development Authority, Revenue Bonds (Banner Health Obligated Group) Ser. A		5.00	1/1/2041	2,500,000		2,635,443
Phoenix Civic Improvement Corp., Revenue Bonds		4.00	7/1/2044	4,000,000		3,844,027
The Phoenix Industrial Development Authority, Revenue Bonds, Refunding (Downtown Phoenix Student Housing LLC) Ser. A		5.00	7/1/2037	1,000,000		1,017,632
The University of Arizona, Revenue Bonds, Refunding		5.00	8/1/2037	615,000		685,075
The University of Arizona, Revenue Bonds, Refunding		5.00	8/1/2038	3,000,000		3,332,363
					28,095,199
California - 4.6%
California, GO, Refunding		5.00	4/1/2042	2,000,000		2,161,450
California Health Facilities Financing Authority, Revenue Bonds, Refunding (Providence St. Joseph Health Obligated Group) Ser. A		4.00	10/1/2036	5,000,000		4,930,142
California Health Facilities Financing Authority, Revenue Bonds, Refunding (Sutter Health Obligated Group) Ser. B		5.00	11/15/2046	2,810,000		2,940,705
California Housing Finance Agency, Revenue Bonds, Ser. 2021-1		3.50	11/20/2035	2,938,289		2,738,800
California Housing Finance Agency, Revenue Bonds, Ser. A		3.25	8/20/2036	1,977,499		1,788,969



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
California - 4.6% (continued)
California Infrastructure & Economic Development Bank, Revenue Bonds, Refunding, Ser. B		5.00	11/1/2029	2,000,000		2,307,757
California Municipal Finance Authority, Revenue Bonds (Green Bond) (Insured; Build America Mutual)		5.00	5/15/2026	350,000		372,913
California Statewide Communities Development Authority, Revenue Bonds (Loma Linda University Medical Center Obligated Group)		5.00	12/1/2033	1,000,000	^c	1,012,912
City of Los Angeles Department of Airports, Revenue Bonds (Green Bond) Ser. G		5.25	5/15/2047	5,000,000		5,388,034
Pittsburg Successor Agency Redevelopment, Tax Allocation Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. A		5.00	9/1/2029	2,020,000		2,186,563
Sacramento North Natomas Community Facilities District No. 4, Special Tax Bonds, Refunding, Ser. E		5.00	9/1/2030	1,000,000		1,021,394
San Diego County Regional Airport Authority, Revenue Bonds, Ser. C		5.00	7/1/2051	13,500,000		14,013,576
San Francisco City & County Ineternational Airport, Revenue Bonds, Refunding, Ser. A		5.00	5/1/2039	2,000,000		2,039,025
San Mateo Foster Public Financing Authority, Revenue Bonds (Clean Water Program)		4.00	8/1/2035	1,100,000		1,135,870
					44,038,110
Colorado - 5.1%
Colorado Health Facilities Authority, Revenue Bonds (Children's Hospital Obligated Group) Ser. A		5.00	12/1/2041	1,500,000		1,544,021
Colorado Health Facilities Authority, Revenue Bonds (Covenant Retirement Communities Obligated Group)		5.00	12/1/2043	6,885,000		7,056,074
Colorado Health Facilities Authority, Revenue Bonds, Refunding (AdventHealth Obligated Group)		5.00	11/19/2026	5,535,000	^a	6,048,342
Colorado Health Facilities Authority, Revenue Bonds, Refunding (CommonSpirit Health Obligated Group) Ser. A		5.00	8/1/2044	3,000,000		3,103,259

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Colorado - 5.1% (continued)
Colorado Health Facilities Authority, Revenue Bonds, Refunding, Ser. A		4.00	1/1/2036	2,525,000		2,533,324
Denver City & County Airport System, Revenue Bonds, Refunding, Ser. B		5.00	12/1/2043	4,000,000		4,233,116
Denver City & County Airport System, Revenue Bonds, Ser. B		5.00	11/15/2043	15,000,000		15,285,540
Denver Convention Center Hotel Authority, Revenue Bonds, Refunding		5.00	12/1/2031	1,500,000		1,561,230
Dominion Water & Sanitation District, Revenue Bonds		5.75	12/1/2036	2,000,000		2,042,621
Dominion Water & Sanitation District, Revenue Bonds		6.00	12/1/2046	2,961,000		3,024,819
Regional Transportation District, Revenue Bonds, Refunding (Denver Transit Partners LLC) Ser. A		4.00	7/15/2034	2,000,000		1,973,752
					48,406,098
Connecticut - .8%
Connecticut, GO, Ser. C		5.00	6/15/2038	1,000,000		1,092,044
Connecticut, Revenue Bonds, Ser. A		5.00	5/1/2034	1,390,000		1,576,051
Connecticut, Revenue Bonds, Ser. A		5.00	5/1/2038	1,000,000		1,097,794
Connecticut Housing Finance Authority, Revenue Bonds, Refunding, Ser. C1		3.25	5/15/2044	2,020,000		1,994,130
Waterbury, GO, Ser. A		4.00	2/1/2039	2,200,000		2,186,606
					7,946,625
District of Columbia - .8%
District of Columbia, GO, Ser. D		5.00	6/1/2033	1,325,000		1,430,524
Metropolitan Washington Airports Authority, Revenue Bonds, Refunding (Dulles Metrorail) Ser. A		5.00	10/1/2037	2,000,000		2,172,260
Washington Metropolitan Area Transit Authority Dedicated, Revenue Bonds (Green Bond) Ser. A		4.00	7/15/2039	3,500,000		3,504,201
					7,106,985
Florida - 7.6%
Broward County School District, COP, Refunding, Ser. A		5.00	7/1/2028	7,670,000		8,634,943
Central Florida Expressway Authority, Revenue Bonds, Refunding		5.00	7/1/2042	1,000,000		1,057,776
Escambia County, Revenue Bonds		5.00	10/1/2046	2,500,000		2,694,705



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)	Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Florida - 7.6% (continued)
Florida Higher Educational Facilities Financing Authority, Revenue Bonds, Refunding (Nova Southeastern University Project)		5.00	4/1/2035	1,500,000	1,562,187
Florida Higher Educational Facilities Financing Authority, Revenue Bonds, Refunding (Nova Southeastern University Project)		5.00	4/1/2028	1,250,000	1,324,039
Florida Housing Finance Corp., Revenue Bonds (Insured; GNMA, FNMA, FHLMC) Ser. 2		3.00	7/1/2051	1,895,000	1,856,987
Florida Municipal Power Agency, Revenue Bonds, Ser. A		3.00	10/1/2032	1,360,000	1,295,302
Florida Municipal Power Agency, Revenue Bonds, Ser. A		5.00	10/1/2031	2,000,000	2,123,014
Gainesville Utilities System, Revenue Bonds, Ser. A		5.00	10/1/2037	2,000,000	2,162,780
Hillsborough County Aviation Authority, Revenue Bonds (Tampa International Airport)		5.00	10/1/2034	2,110,000	2,287,315
Hillsborough County Aviation Authority, Revenue Bonds (Tampa International Airport) Ser. A		5.00	10/1/2044	3,500,000	3,577,081
Jacksonville, Revenue Bonds, Refunding (Brooks Rehabilitation Project)		4.00	11/1/2045	3,000,000	2,732,595
JEA Electric System, Revenue Bonds, Refunding, Ser. 3A		4.00	10/1/2037	2,850,000	2,832,058
JEA Water & Sewer System, Revenue Bonds, Refunding, Ser. A		4.00	10/1/2039	1,500,000	1,482,157
Miami Beach Redevelopment Agency, Tax Allocation Bonds, Refunding		5.00	2/1/2035	1,500,000	1,545,620
Miami Beach Stormwater, Revenue Bonds, Refunding		5.00	9/1/2047	4,500,000	4,504,677
Miami-Dade County Expressway Authority, Revenue Bonds, Ser. A		5.00	7/1/2039	5,000,000	5,119,215
Miami-Dade County Water & Sewer System, Revenue Bonds		4.00	10/1/2051	3,000,000	2,823,680
Mid-Bay Bridge Authority, Revenue Bonds, Refunding, Ser. A		5.00	10/1/2040	1,500,000	1,532,074
Palm Beach County Health Facilities Authority, Revenue Bonds, Refunding (Baptist Health South Florida Obligated Group)		4.00	8/15/2049	3,650,000	3,441,345

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Florida - 7.6% (continued)
Palm Beach County Health Facilities Authority, Revenue Bonds, Refunding (Baptist Health South Florida Obligated Group)		5.00	8/15/2037	1,000,000		1,067,119
Pasco County School Board, COP (Insured; Assured Guaranty Municipal Corp.) Ser. C		5.00	8/1/2035	4,000,000		4,439,696
Polk County Utility System, Revenue Bonds, Refunding		4.00	10/1/2043	1,250,000		1,172,052
Sunshine Skyway Bridge, Revenue Bonds, Ser. A		4.00	7/1/2034	5,650,000		5,835,593
Tampa, Revenue Bonds (BayCare Obligated Group) Ser. A		5.00	11/15/2046	3,500,000		3,637,368
Tampa, Revenue Bonds (H. Lee Moffitt Cancer Center & Research Institute Obligated Group) Ser. B		5.00	7/1/2050	2,000,000		2,086,267
					72,827,645
Georgia - 3.0%
Atlanta Water & Wastewater, Revenue Bonds, Refunding		5.00	11/1/2041	1,100,000		1,197,635
Fulton County Development Authority, Revenue Bonds, Ser. A		5.00	4/1/2034	2,800,000		2,962,715
Fulton County Development Authority, Revenue Bonds, Ser. A		5.00	4/1/2036	1,000,000		1,052,346
Georgia Municipal Electric Authority, Revenue Bonds (Plant Vogtle Units 3&4 Project)		5.00	1/1/2038	1,100,000		1,153,051
Georgia Municipal Electric Authority, Revenue Bonds (Plant Vogtle Units 3&4 Project) Ser. A		5.00	7/1/2052	3,000,000		3,153,667
Main Street Natural Gas Inc., Revenue Bonds, Ser. B		5.00	6/1/2029	2,000,000	^a	2,101,044
Main Street Natural Gas Inc., Revenue Bonds, Ser. B, 1 Month LIBOR x0.67 +0.75%		2.34	9/1/2023	5,250,000	^a,d	5,216,594
Main Street Natural Gas Inc., Revenue Bonds, Ser. C		4.00	9/1/2026	8,000,000	^a	8,025,406
The Atlanta Development Authority, Revenue Bonds, Ser. A1		5.25	7/1/2040	1,750,000		1,828,836
The Burke County Development Authority, Revenue Bonds, Refunding (Oglethorpe Power Corp.) Ser. A		1.50	2/3/2025	2,000,000	^a	1,907,466
					28,598,760
Hawaii - .1%
Honolulu City & County, GO, Ser. C		4.00	7/1/2039	1,000,000		1,011,648



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Illinois - 8.2%
Chicago Board of Education, GO, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. A		5.00	12/1/2029	2,000,000		2,151,412
Chicago Board of Education, GO, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. C		5.00	12/1/2030	1,500,000		1,604,213
Chicago Board of Education, Revenue Bonds		5.00	4/1/2042	1,500,000		1,548,779
Chicago II Waterworks, Revenue Bonds		5.00	11/1/2028	1,000,000		1,060,228
Chicago II Waterworks, Revenue Bonds (2nd Lien Project)		5.00	11/1/2028	1,455,000		1,510,383
Chicago II Waterworks, Revenue Bonds, Refunding		5.00	11/1/2025	2,940,000		3,092,620
Chicago Midway International Airport, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2034	2,865,000		2,916,710
Chicago O'Hare International Airport, Revenue Bonds, Refunding, Ser. B		5.00	1/1/2034	7,300,000		7,610,097
Chicago O'Hare International Airport, Revenue Bonds, Ser. A		5.50	1/1/2055	2,000,000		2,127,920
Cook County II, Revenue Bonds, Refunding		5.00	11/15/2036	5,000,000		5,418,820
Cook County II, Revenue Bonds, Refunding, Ser. A		4.00	11/15/2040	2,500,000		2,417,162
Greater Chicago Metropolitan Water Reclamation District, GO, Refunding, Ser. D		5.00	12/1/2031	2,000,000		2,304,240
Illinois, Revenue Bonds (Insured; Build America Mutual) Ser. A		5.00	6/15/2031	3,600,000		3,941,694
Illinois Finance Authority, Revenue Bonds		5.00	10/1/2049	1,250,000		1,345,322
Illinois Finance Authority, Revenue Bonds (Green Bond)		4.00	7/1/2038	4,500,000		4,511,957
Illinois Finance Authority, Revenue Bonds, Refunding (Advocate Health Care Project)		4.00	11/1/2030	1,000,000		1,031,822
Illinois Finance Authority, Revenue Bonds, Refunding (OSF Healthcare System Obligated Group) Ser. A		5.00	11/15/2045	1,500,000		1,536,930
Illinois Finance Authority, Revenue Bonds, Refunding (OSF Healthcare System Obligated Group) Ser. B2		5.00	11/15/2026	2,000,000	^a	2,133,095
Illinois Finance Authority, Revenue Bonds, Refunding (Rush University Medical Center Obligated Group) Ser. A		5.00	11/15/2034	3,000,000		3,107,343

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Illinois - 8.2% (continued)
Illinois Finance Authority, Revenue Bonds, Refunding (The University of Chicago) Ser. A		4.00	4/1/2050	4,770,000		4,408,293
Illinois Housing Development Authority, Revenue Bonds (Insured; GNMA, FNMA, FHLMC) Ser. A		3.00	4/1/2051	4,620,000		4,519,247
Illinois Municipal Electric Agency, Revenue Bonds, Refunding, Ser. A		5.00	2/1/2032	3,900,000		4,141,076
Illinois Toll Highway Authority, Revenue Bonds, Ser. B		5.00	1/1/2036	4,000,000		4,236,347
Northern Illinois University, Revenue Bonds, Refunding (Insured; Build America Mutual) Ser. B		4.00	4/1/2035	600,000		584,861
Sales Tax Securitization Corp., Revenue Bonds, Refunding (Insured; Build America Mutual) Ser. A		4.00	1/1/2040	6,175,000		5,978,727
Sales Tax Securitization Corp., Revenue Bonds, Refunding, Ser. A		4.00	1/1/2039	1,500,000		1,429,577
Sales Tax Securitization Corp., Revenue Bonds, Refunding, Ser. A		5.00	1/1/2033	1,500,000		1,693,342
					78,362,217
Indiana - 1.8%
Ball University, Revenue Bonds, Refunding, Ser. S		4.00	7/1/2035	1,200,000		1,228,700
Indiana Finance Authority, Revenue Bonds, Refunding (CWA Authority Project)		5.00	10/1/2032	2,750,000		3,219,425
Indiana Health Facility Financing Authority, Revenue Bonds (Ascension Health Credit Group)		5.00	11/15/2036	3,890,000		4,093,277
Indiana Municipal Power Agency, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2036	3,765,000		4,015,144
Indiana Municipal Power Agency, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2032	1,285,000		1,351,274
Richmond Hospital Authority, Revenue Bonds, Refunding (Reid Hospital & Health Care Services Inc. Obligated Group) Ser. A		5.00	1/1/2035	3,400,000		3,504,448
					17,412,268
Iowa - 1.3%
Iowa Finance Authority, Revenue Bonds, Refunding (Insured; GNMA, FNMA, FHLMC) Ser. A		3.00	1/1/2047	4,475,000		4,374,249



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Iowa - 1.3% (continued)
Iowa Finance Authority, Revenue Bonds, Refunding (Iowa Fertilizer Co. Project)		5.00	12/1/2050	2,500,000		2,533,849
Iowa Student Loan Liquidity Corp., Revenue Bonds, Ser. B		5.00	12/1/2032	1,000,000		1,099,643
Iowa Tobacco Settlement Authority, Revenue Bonds, Refunding, Ser. B1		4.00	6/1/2049	1,890,000		1,791,658
PEFA Inc., Revenue Bonds (Gas Project)		5.00	9/1/2026	2,000,000	^a	2,090,292
					11,889,691
Kentucky - 1.1%
Kentucky Economic Development Finance Authority, Revenue Bonds, Refunding (Louisville Arena Authority) (Insured; Assured Guaranty Municipal Corp.) Ser. A		5.00	12/1/2047	3,500,000		3,513,807
Kentucky Public Energy Authority, Revenue Bonds, Ser. A		4.00	6/1/2026	2,500,000	^a	2,518,639
Kentucky Public Energy Authority, Revenue Bonds, Ser. A1		4.00	8/1/2030	2,500,000	^a	2,480,975
Louisville & Jefferson County Metropolitan Government, Revenue Bonds (Norton Healthcare Obligated Group) Ser. D		5.00	10/1/2029	1,970,000	^a	2,155,000
					10,668,421
Louisiana - 2.5%
Lafayette Utilities, Revenue Bonds (Insured; Assured Guaranty Municipal Corp.)		5.00	11/1/2044	1,500,000		1,642,322
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		4,355,423
Louisiana Public Facilities Authority, Revenue Bonds, Refunding (Ochsner Clinic Foundation Obligated Group) Ser. B		5.00	5/15/2025	5,400,000	^a	5,668,965
New Orleans Aviation Board, Revenue Bonds (General Airport-N Terminal Project) Ser. A		5.00	1/1/2048	3,500,000		3,634,500
New Orleans Aviation Board, Revenue Bonds (Parking Facilities Corp.) (Insured; Assured Guaranty Municipal Corp.)		5.00	10/1/2048	2,375,000		2,497,701

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Louisiana - 2.5% (continued)
New Orleans Aviation Board, Revenue Bonds, Refunding (Consolidated Rental Car Project) (Insured; Assured Guaranty Municipal Corp.)		5.00	1/1/2038	1,500,000		1,605,345
New Orleans Aviation Board, Revenue Bonds, Ser. A		5.00	1/1/2045	3,250,000		3,328,096
St. John The Baptist Parish, Revenue Bonds, Refunding (Marathon Oil Corp.)		2.20	7/1/2026	1,000,000	^a	950,796
					23,683,148
Maryland - 1.2%
Maryland Economic Development Corp., Revenue Bonds (Green Bond) (Purple Line Transit Partners LLC) Ser. B		5.25	6/30/2052	4,000,000		4,251,196
Maryland Health & Higher Educational Facilities Authority, Revenue Bonds, Refunding (MedStar Health Obligated Group)		5.00	8/15/2038	1,000,000		1,029,921
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	4,320,920
Prince George's County, Revenue Bonds (National Harbor Project)		5.20	7/1/2034	2,200,000		2,215,499
					11,817,536
Massachusetts - .9%
Massachusetts Development Finance Agency, Revenue Bonds, Refunding		5.00	7/1/2031	4,710,000		5,088,464
Massachusetts Development Finance Agency, Revenue Bonds, Refunding, Ser. A		5.00	7/1/2044	1,000,000		1,039,151
Massachusetts Transportation Trust Fund Metropolitan Highway System, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2034	2,500,000		2,771,820
					8,899,435
Michigan - 4.4%
Great Lakes Water Authority, Revenue Bonds, Ser. B		5.00	7/1/2046	9,995,000		10,490,732
Karegnondi Water Authority, Revenue Bonds, Refunding		5.00	11/1/2041	2,620,000		2,762,948
Lansing Board of Water & Light, Revenue Bonds, Ser. B		2.00	7/1/2026	3,000,000	^a	2,843,761



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Michigan - 4.4% (continued)
Michigan Building Authority, Revenue Bonds, Refunding, Ser. I		5.00	10/15/2045	5,000,000		5,233,375
Michigan Finance Authority, Revenue Bonds, Refunding (Great Lakes Water Authority) (Insured; Assured Guaranty Municipal Corp.) Ser. C3		5.00	7/1/2032	500,000		519,668
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		1,563,378
Michigan Finance Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. D1		5.00	7/1/2035	1,520,000		1,574,824
Michigan Finance Authority, Revenue Bonds, Refunding (Trinity Health Credit Obligated Group) Ser. A		5.00	12/1/2042	1,000,000		1,062,297
Michigan Finance Authority, Revenue Bonds, Refunding (Trinity Health Credit Obligated Group) Ser. MI1		5.00	12/1/2048	5,000,000		5,289,884
Michigan Finance Authority, Revenue Bonds, Refunding, Ser. D1		5.00	7/1/2035	1,190,000		1,253,572
Pontiac School District, GO		4.00	5/1/2045	2,440,000		2,376,391
Wayne County Airport Authority, Revenue Bonds (Detroit Metropolitan Wayne County Airport)		5.00	12/1/2038	5,000,000		5,347,343
Wayne County Airport Authority, Revenue Bonds, Ser. D		5.00	12/1/2029	1,700,000		1,818,878
					42,137,051
Minnesota - .7%
Minnesota Housing Finance Agency, Revenue Bonds (Insured; GNMA, FNMA, FHLMC) Ser. E		3.50	7/1/2050	2,610,000		2,598,719
Southern Minnesota Municipal Power Agency, Revenue Bonds, Refunding (Insured; National Public Finance Guarantee Corp.) Ser. A		0.00	1/1/2025	4,505,000	^e	4,218,435
					6,817,154

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Mississippi - .4%
Mississippi Home Corp., Revenue Bonds, Refunding (Insured; GNMA, FNMA, FHLMC) Ser. A		3.75	6/1/2049	3,735,000		3,746,571
Missouri - .4%
The Missouri Health & Educational Facilities Authority, Revenue Bonds, Refunding (CoxHealth Obligated Group) Ser. A		5.00	11/15/2030	3,000,000		3,174,467
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		1,033,092
					4,207,559
Multi-State - .2%
Federal Home Loan Mortgage Corp. Multifamily Variable Rate Certificates, Revenue Bonds, Ser. M048		3.15	1/15/2036	2,355,000	^c	2,178,709
Nebraska - 1.1%
Public Power Generation Agency, Revenue Bonds, Refunding		5.00	1/1/2038	3,655,000		3,926,537
Public Power Generation Agency, Revenue Bonds, Refunding		5.00	1/1/2037	5,050,000		5,432,767
Public Power Generation Agency, Revenue Bonds, Refunding (Whelan Energy Center)		5.00	1/1/2030	1,380,000		1,449,896
					10,809,200
Nevada - .7%
Clark County School District, GO (Insured; Assured Guaranty Municipal Corp.) Ser. A		4.00	6/15/2037	1,700,000		1,740,201
Clark County School District, GO, Ser. A		5.00	6/15/2039	2,500,000		2,769,903
Reno, Revenue Bonds, Refunding (Reno Transportation Rail Access Project)		5.00	6/1/2048	2,000,000		2,068,900
					6,579,004
New Hampshire - .2%
New Hampshire Business Finance Authority, Revenue Bonds, Refunding (Covanta Project) Ser. B		4.63	11/1/2042	2,000,000	^c	1,900,412
New Jersey - 3.7%
New Jersey, GO (COVID-19 Emergency Bonds) Ser. A		4.00	6/1/2031	1,000,000		1,067,978



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
New Jersey - 3.7% (continued)
New Jersey Economic Development Authority, Revenue Bonds, Refunding, Ser. XX		5.25	6/15/2027	3,500,000		3,704,296
New Jersey Transportation Trust Fund Authority, Revenue Bonds, Ser. BB		5.00	6/15/2044	2,000,000		2,072,939
New Jersey Turnpike Authority, Revenue Bonds, Refunding, Ser. D		5.00	1/1/2028	2,000,000		2,169,761
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		7,064,315
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. A		5.00	6/1/2046	13,655,000		14,108,174
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. A		5.00	6/1/2036	5,000,000		5,307,168
					35,494,631
New Mexico - .2%
New Mexico Mortgage Finance Authority, Revenue Bonds (Insured; GNMA, FNMA, FHLMC) Ser. C		3.00	1/1/2052	1,465,000		1,430,407
New York - 10.2%
Long Island Power Authority, Revenue Bonds, Refunding, Ser. A		5.00	9/1/2038	1,100,000		1,214,101
Metropolitan Transportation Authority, Revenue Bonds, Refunding (Green Bond) Ser. C1		5.00	11/15/2050	5,000,000		5,108,526
Metropolitan Transportation Authority Hudson Rail Yards Trust, Revenue Bonds, Refunding, Ser. A		5.00	11/15/2051	5,000,000		5,007,143
Nassau County Interim Finance Authority, Revenue Bonds, Refunding, Ser. A		4.00	11/15/2032	2,135,000		2,312,341
New York City, GO, Ser. C		4.00	8/1/2041	3,000,000		2,923,085
New York City, GO, Ser. D1		4.00	3/1/2041	2,000,000		1,952,101
New York City, GO, Ser. D1		4.00	3/1/2050	3,500,000		3,315,052
New York City Health & Hospitals Corp., Revenue Bonds, Refunding, Ser. A		5.00	2/15/2028	2,250,000		2,519,441
New York City Housing Development Corp., Revenue Bonds (Insured; Federal Housing Administration) Ser. F2		0.60	7/1/2025	1,000,000	^a	924,904

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
New York - 10.2% (continued)
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		1,050,583
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		1,654,072
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		1,402,512
New York City Municipal Water Finance Authority, Revenue Bonds, Ser. DD1		4.00	6/15/2050	3,250,000		3,090,903
New York City Transitional Finance Authority, Revenue Bonds		4.00	5/1/2037	1,000,000		992,431
New York City Transitional Finance Authority, Revenue Bonds, Ser. B1		4.00	8/1/2048	2,500,000		2,352,568
New York City Transitional Finance Authority, Revenue Bonds, Ser. D		4.00	11/1/2035	5,000,000		5,044,290
New York Liberty Development Corp., Revenue Bonds, Refunding (Class 1-3 World Trade Center Project)		5.00	11/15/2044	4,000,000	^c	3,869,486
New York Liberty Development Corp., Revenue Bonds, Refunding (Goldman Sachs Headquarters)		5.25	10/1/2035	2,500,000		2,797,056
New York State Dormitory Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. A		5.00	10/1/2034	4,250,000		4,666,580
New York State Dormitory Authority, Revenue Bonds, Refunding, Ser. A		5.25	3/15/2037	3,000,000		3,309,364
New York State Dormitory Authority, Revenue Bonds, Refunding, Ser. E		4.00	3/15/2040	5,000,000		4,858,034
New York State Thruway Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. B		4.00	1/1/2045	5,000,000		4,751,993



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
New York - 10.2% (continued)
New York State Thruway Authority, Revenue Bonds, Refunding, Ser. A1		4.00	3/15/2036	3,380,000		3,396,086
New York State Urban Development Corp., Revenue Bonds (State of New York Personal Income Tax) Ser. A		4.00	3/15/2039	1,480,000		1,433,645
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		1,924,285
New York State Urban Development Corp., Revenue Bonds, Refunding (State of New York Personal Income Tax)		4.00	3/15/2042	4,250,000		4,075,889
New York Transportation Development Corp., Revenue Bonds (JFK International Air Terminal LLC)		5.00	12/1/2036	2,455,000		2,588,066
New York Transportation Development Corp., Revenue Bonds, Refunding (JFK International Air Terminal LLC)		5.00	12/1/2035	1,750,000		1,869,971
Onondaga Civic Development Corp., Revenue Bonds, Refunding (Syracuse University Project) Ser. A		5.00	12/1/2031	2,145,000		2,469,082
Port Authority of New York & New Jersey, Revenue Bonds, Ser. 184		5.00	9/1/2039	5,000,000		5,192,788
Triborough Bridge & Tunnel Authority, Revenue Bonds, Refunding, Ser. C		5.25	5/15/2052	2,500,000		2,767,510
Triborough Bridge & Tunnel Authority, Revenue Bonds, Refunding, Ser. C2		5.00	11/15/2042	5,000,000		5,407,462
Triborough Bridge & Tunnel Authority, Revenue Bonds, Ser. A		5.00	11/15/2049	1,000,000		1,063,342
					97,304,692
North Carolina - 3.3%
Charlotte, COP, Refunding (Convention Facility Project)		5.00	6/1/2034	2,370,000		2,654,027
Charlotte Airport, Revenue Bonds, Ser. A		5.00	7/1/2042	3,000,000		3,159,751
North Carolina Housing Finance Agency, Revenue Bonds, Refunding (Insured; GNMA, FNMA, FHLMC) Ser. 45		3.00	7/1/2051	5,770,000		5,645,515

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
North Carolina - 3.3% (continued)
North Carolina Medical Care Commission, Revenue Bonds (Caromont Health Obligated Group) Ser. B		5.00	2/1/2026	2,250,000	^a	2,409,997
North Carolina Medical Care Commission, Revenue Bonds (Twin Lakes Community) Ser. A		5.00	1/1/2044	2,000,000		2,037,880
North Carolina Turnpike Authority, BAN		5.00	2/1/2024	7,500,000		7,722,826
North Caroline Turnpike Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.)		5.00	1/1/2029	1,775,000		1,931,316
The Charlotte-Mecklenburg Hospital Authority, Revenue Bonds (Atrium Health Obligated Group) Ser. B		5.00	12/2/2024	6,000,000	^a	6,312,593
					31,873,905
North Dakota - .2%
University of North Dakota, COP (Insured; Assured Guaranty Municipal Corp.) Ser. A		4.00	6/1/2051	2,500,000		2,289,861
Ohio - 1.8%
Buckeye Tobacco Settlement Financing Authority, Revenue Bonds, Refunding, Ser. A2		4.00	6/1/2048	7,500,000		6,722,357
Cleveland Airport System, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. A		5.00	1/1/2031	1,000,000		1,045,369
Cuyahoga County, Revenue Bonds, Refunding (The MetroHealth System)		5.25	2/15/2047	2,000,000		2,059,655
Ohio, Revenue Bonds, Refunding, Ser. A		5.00	1/15/2037	1,315,000		1,403,462
Ohio, Revenue Bonds, Refunding, Ser. A		5.00	1/15/2036	1,045,000		1,120,153
Ohio Housing Finance Agency, Revenue Bonds (Insured; GNMA, FNMA, FHLMC) Ser. A		3.75	9/1/2050	4,440,000		4,455,397
The Ohio University, Revenue Bonds, Refunding, Ser. D		5.00	12/1/2023	40,000		41,253
					16,847,646
Oregon - .4%
Benton & Linn Counties Consolidated School District No. 509J & 509A, GO (Insured; School Board Guaranty) Ser. A		5.00	6/15/2038	1,750,000		1,912,043



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Oregon - .4% (continued)
Medford Hospital Facilities Authority, Revenue Bonds, Refunding (Asante Project) Ser. A		5.00	8/15/2045	2,000,000		2,105,974
					4,018,017
Pennsylvania - 7.9%
Allegheny County Hospital Development Authority, Revenue Bonds, Refunding (UPMC Obligated Group) Ser. A		4.00	7/15/2035	1,850,000		1,847,754
Allentown School District, GO, Refunding (Insured; Build America Mutual) Ser. B		5.00	2/1/2030	2,300,000		2,591,992
Commonwealth Financing Authority, Revenue Bonds		5.00	6/1/2032	3,500,000		3,812,983
Commonwealth Financing Authority, Revenue Bonds		5.00	6/1/2031	1,250,000		1,366,796
Delaware Valley Regional Finance Authority, Revenue Bonds, Ser. C, 1 Month MUNIPSA +0.53%		2.03	9/1/2023	8,000,000	^a,d	7,994,138
Geisinger Authority, Revenue Bonds, Refunding (Geisinger Health System Obligated Group)		5.00	2/15/2027	3,000,000	^a	3,238,849
Lancaster County Hospital Authority, Revenue Bonds, Refunding (The University of Pennsylvania Health System Obligated Group)		5.00	8/15/2046	9,185,000		9,537,693
Montgomery County Industrial Development Authority, Revenue Bonds, Refunding (ACTS Retirement-Life Communities Inc. Obligated Group)		5.00	11/15/2036	5,000,000		5,205,117
Pennsylvania Economic Development Financing Authority, Revenue Bonds, Refunding (UPMC Obligated Group)		4.00	3/15/2034	1,000,000		1,001,890
Pennsylvania Economic Development Financing Authority, Revenue Bonds, Refunding (UPMC Obligated Group) Ser. A		5.00	10/15/2031	2,400,000		2,744,056
Pennsylvania Turnpike Commission, Revenue Bonds, Ser. B		5.00	12/1/2035	2,000,000		2,119,329
Pennsylvania Turnpike Commission Oil Franchise, Revenue Bonds, Ser. B		5.25	12/1/2048	4,000,000		4,270,812
Philadelphia, GO, Ser. A		5.00	5/1/2033	3,000,000		3,367,710
Philadelphia, GO, Ser. A		5.00	5/1/2032	500,000		568,278

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Pennsylvania - 7.9% (continued)
Philadelphia Airport, Revenue Bonds, Refunding, Ser. A		5.00	7/1/2047	5,040,000		5,256,281
Philadelphia Water & Wastewater, Revenue Bonds, Refunding		5.00	10/1/2032	4,460,000		5,030,042
The Philadelphia School District, GO (Insured; State Aid Withholding) Ser. A		4.00	9/1/2036	2,000,000		2,021,390
The Philadelphia School District, GO (Insured; State Aid Withholding) Ser. A		5.00	9/1/2044	8,500,000		8,942,146
The Philadelphia School District, GO (Insured; State Aid Withholding) Ser. A		5.00	9/1/2038	1,000,000		1,059,326
The Philadelphia School District, GO, Refunding (Insured; State Aid Withholding) Ser. F		5.00	9/1/2035	3,500,000		3,688,155
					75,664,737
South Carolina - 3.5%
Piedmont Municipal Power Agency, Revenue Bonds, Refunding, Ser. B		5.00	1/1/2029	3,175,000		3,553,234
South Carolina Jobs-Economic Development Authority, Revenue Bonds, Refunding (ACTS Retirement-Life Communities Obligated Group)		5.00	11/15/2047	5,500,000		5,710,352
South Carolina Ports Authority, Revenue Bonds, Ser. A		5.00	7/1/2044	10,380,000		11,092,882
South Carolina Public Service Authority, Revenue Bonds, Refunding (Santee Cooper)		5.13	12/1/2043	7,500,000		7,585,912
South Carolina Public Service Authority, Revenue Bonds, Refunding (Santee Cooper) Ser. A		4.00	12/1/2055	5,000,000		4,505,079
South Carolina Public Service Authority, Revenue Bonds, Refunding, Ser. A		5.00	12/1/2025	800,000		846,850
					33,294,309
South Dakota - .3%
South Dakota Housing Development Authority, Revenue Bonds, Refunding, Ser. A		3.75	11/1/2050	3,125,000		3,134,950
Tennessee - 1.1%
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, Revenue Bonds, Refunding (Lipscomb University Project)		5.00	10/1/2036	1,000,000		1,033,690



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Tennessee - 1.1% (continued)
Nashville & Davidson County Metropolitan Government, GO, Refunding, Ser. C		4.00	1/1/2032	1,000,000		1,076,192
Tennergy Corp., Revenue Bonds, Ser. A		4.00	9/1/2028	4,000,000	^a	3,993,040
Tennessee Energy Acquisition Corp., Revenue Bonds		4.00	11/1/2025	2,700,000	^a	2,728,483
Tennessee Housing Development Agency, Revenue Bonds, Refunding, Ser. 3A		3.50	7/1/2050	1,385,000		1,379,014
					10,210,419
Texas - 6.2%
Central Texas Regional Mobility Authority, BAN, Ser. F		5.00	1/1/2025	2,000,000		2,070,648
Central Texas Turnpike System, Revenue Bonds, Refunding, Ser. C		5.00	8/15/2031	2,500,000		2,588,606
Corpus Christi Utility System, Revenue Bonds, Refunding, Ser. A		4.00	7/15/2037	1,250,000		1,262,894
Dallas Fort Worth International Airport, Revenue Bonds, Refunding, Ser. A		4.00	11/1/2035	2,000,000		2,005,198
Garland Electric Utility System, Revenue Bonds, Refunding		5.00	3/1/2044	2,500,000		2,698,724
Grand Parkway Transportation Corp., Revenue Bonds, Refunding		4.00	10/1/2049	5,000,000		4,724,480
Houston Airport System, Revenue Bonds, Refunding, Ser. D		5.00	7/1/2039	4,000,000		4,264,697
Lower Colorado River Authority, Revenue Bonds, Refunding		5.00	5/15/2039	4,500,000		4,556,780
Lower Colorado River Authority, Revenue Bonds, Refunding		5.00	5/15/2032	800,000		841,711
Lower Colorado River Authority, Revenue Bonds, Refunding (LCRA Transmission Services Corp.)		5.00	5/15/2046	3,800,000		3,949,142
Lower Colorado River Authority, Revenue Bonds, Refunding (LCRA Transmission Services Corp.)		5.00	5/15/2046	3,750,000		3,963,536
Lower Colorado River Authority, Revenue Bonds, Refunding (LCRA Transmission Services Corp.) Ser. A		4.00	5/15/2049	1,500,000		1,347,737
North Texas Tollway Authority, Revenue Bonds, Refunding		5.00	1/1/2048	1,500,000		1,571,083
North Texas Tollway Authority, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2038	925,000		931,063
North Texas Tollway Authority, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2038	5,815,000		6,042,487

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Texas - 6.2% (continued)
North Texas Tollway Authority, Revenue Bonds, Refunding, Ser. B		5.00	1/1/2031	1,040,000		1,108,858
San Antonio Texas Electric & Gas Systems, Revenue Bonds, Refunding, Ser. A		5.00	2/1/2037	1,750,000		1,940,019
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		2,596,552
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		1,917,917
Texas Department of Housing & Community Affairs, Revenue Bonds (Insured; Government National Mortgage Association) Ser. A		3.50	3/1/2051	1,845,000		1,834,693
Texas Department of Housing & Community Affairs, Revenue Bonds (Insured; Government National Mortgage Association) Ser. A		3.50	7/1/2052	2,000,000		1,982,322
Texas Public Finance Authority, Revenue Bonds, Refunding		4.00	2/1/2036	2,675,000		2,677,970
West Harris County Regional Water Authority, Revenue Bonds, Refunding		4.00	12/15/2045	2,750,000		2,607,595
					59,484,712
U.S. Related - .4%
Puerto Rico Highway & Transportation Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Corp.) Ser. L		5.25	7/1/2041	3,700,000		3,711,050
Utah - .4%
Salt Lake City Airport, Revenue Bonds, Ser. B		5.00	7/1/2037	1,000,000		1,068,441
Salt Lake City Airport, Revenue Bonds, Ser. B		5.00	7/1/2036	1,350,000		1,445,232
Utah Charter School Finance Authority, Revenue Bonds		5.00	10/15/2043	1,150,000		1,233,398
					3,747,071
Virginia - .7%
Fairfax County, Revenue Bonds, Refunding, Ser. B		3.00	7/15/2036	3,585,000		3,263,407



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Virginia - .7% (continued)
Virginia College Building Authority, Revenue Bonds		4.00	2/1/2036	2,015,000		2,052,558
Winchester Economic Development Authority, Revenue Bonds, Refunding (Valley Health System Obligated Group)		5.00	1/1/2035	1,560,000		1,640,336
					6,956,301
Washington - 1.9%
Energy Northwest, Revenue Bonds, Refunding		5.00	7/1/2040	2,750,000		3,047,486
Grant County Public Utility District No. 2, Revenue Bonds, Refunding, Ser. R		2.00	12/1/2025	3,500,000	^a	3,437,191
Spokane Water & Wastewater, Revenue Bonds (Green Bond)		4.00	12/1/2031	1,500,000		1,542,728
Washington, GO, Ser. A		5.00	8/1/2036	3,290,000		3,605,655
Washington Health Care Facilities Authority, Revenue Bonds, Refunding (Providence Health & Services) Ser. A		5.00	10/1/2042	5,000,000		5,005,853
Washington Housing Finance Commission, Revenue Bonds, Ser. A1		3.50	12/20/2035	1,964,244		1,791,975
					18,430,888
Wisconsin - 2.4%
Public Finance Authority, Revenue Bonds (Cone Health) Ser. A		5.00	10/1/2052	1,500,000		1,572,189
Public Finance Authority, Revenue Bonds (KU Campus Development Corp. Project)		5.00	3/1/2035	7,000,000		7,418,209
Public Finance Authority, Revenue Bonds, Refunding (Renown Regional Medical Center) Ser. A		5.00	6/1/2040	4,000,000		4,112,305
Public Finance Authority, Revenue Bonds, Refunding (WakeMed Hospital Obligated Group) Ser. A		5.00	10/1/2044	3,110,000		3,221,575
Wisconsin Health & Educational Facilities Authority, Revenue Bonds, Refunding (Advocate Aurora Health Obligated Group)		5.00	7/29/2026	2,000,000	^a	2,159,855

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 98.8% (continued)
Wisconsin - 2.4% (continued)
Wisconsin Health & Educational Facilities Authority, Revenue Bonds, Refunding (Ascension Senior Credit Group) Ser. A		5.00	11/15/2029	4,500,000		4,850,601
					23,334,734
Total Long-Term Municipal Investments (cost $996,129,085)				946,696,882
Total Investments (cost $999,258,657)				99.1%	949,454,806
Cash and Receivables (Net)				0.9%	8,807,412
Net Assets				100.0%	958,262,218

^a These 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.

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

^c Security 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, 2022, these securities were valued at $10,733,530 or 1.12% of net assets.

^d Variable 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.

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


Portfolio Summary (Unaudited) ^†	Value (%)
Medical	16.3
General	13.4
Transportation	12.0
Airport	10.2
Water	7.9
Power	7.7
Education	7.5
Single Family Housing	4.1
Tobacco Settlement	3.5
School District	3.2
General Obligation	3.2
Development	2.6
Nursing Homes	2.6
Utilities	1.5
Multifamily Housing	1.3
Facilities	1.1
Special Tax	.6
Pollution	.2
Housing	.1
Student Loan	.1
	99.1

^† Based on net assets.

See notes to financial statements.



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.

STATEMENT OF ASSETS AND LIABILITIES

August 31, 2022



	Cost	Value
Assets ($):
Investments in securities—See Statement of Investments	999,258,657	949,454,806
Cash		1,959,432
Interest receivable		10,659,632
Receivable for shares of Common Stock subscribed		741,264
Prepaid expenses		65,590
		962,880,724
Liabilities ($):
Due to BNY Mellon Investment Adviser, Inc. and affiliates—Note 3(c)		409,665
Payable for investment securities purchased		2,127,920
Payable for shares of Common Stock redeemed		1,912,444
Directors’ fees and expenses payable		28,087
Other accrued expenses		140,390
		4,618,506
Net Assets ($)		958,262,218
Composition of Net Assets ($):
Paid-in capital		1,013,450,296
Total distributable earnings (loss)		(55,188,078)
Net Assets ($)		958,262,218


Net Asset Value Per Share	Class A	Class C	Class I	Class Y	Class Z
Net Assets ($)	323,799,123	7,642,664	501,481,178	20,787	125,318,466
Shares Outstanding	24,634,905	581,371	38,137,430	1,581	9,528,714
Net Asset Value Per Share ($)	13.14	13.15	13.15	13.15	13.15

See notes to financial statements.

STATEMENT OF OPERATIONS

Year Ended August 31, 2022




Investment Income ($):
Interest Income					31,539,796
Expenses:
Management fee—Note 3(a)					7,093,700
Shareholder servicing costs—Note 3(c)					1,381,262
Registration fees					117,682
Professional fees					114,382
Directors’ fees and expenses—Note 3(d)					94,168
Distribution fees—Note 3(b)					73,570
Prospectus and shareholders’ reports					33,900
Custodian fees—Note 3(c)					22,815
Loan commitment fees—Note 2					22,083
Chief Compliance Officer fees—Note 3(c)					17,169
Miscellaneous					63,029
Total Expenses					9,033,760
Less—reduction in expenses due to undertaking—Note 3(a)					(2,641,356)
Less—reduction in fees due to earnings credits—Note 3(c)					(51)
Net Expenses					6,392,353
Net Investment Income					25,147,443
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments					(5,410,155)
Net change in unrealized appreciation (depreciation) on investments					(133,718,936)
Net Realized and Unrealized Gain (Loss) on Investments					(139,129,091)
Net (Decrease) in Net Assets Resulting from Operations					(113,981,648)

See notes to financial statements.

STATEMENT OF CHANGES IN NET ASSETS


	Year Ended August 31,
	2022	2021
Operations ($):
Net investment income	25,147,443	27,685,428
Net realized gain (loss) on investments	(5,410,155)	2,311,625
Net change in unrealized appreciation (depreciation) on investments	(133,718,936)	16,849,782
Net Increase (Decrease) in Net Assets Resulting from Operations	(113,981,648)	46,846,835
Distributions ($):
Distributions to shareholders:
Class A	(7,850,986)	(7,894,914)
Class C	(139,658)	(152,966)
Class I	(16,296,732)	(16,225,394)
Class Y	(531)	(497)
Class Z	(3,350,029)	(3,358,289)
Total Distributions	(27,637,936)	(27,632,060)
Capital Stock Transactions ($):
Net proceeds from shares sold:
Class A	38,093,849	33,821,510
Class C	1,343,081	1,969,804
Class I	292,469,583	293,631,898
Class Z	1,733,655	2,931,671
Distributions reinvested:
Class A	6,725,252	6,411,375
Class C	109,848	114,748
Class I	15,146,329	14,636,171
Class Y	507	473
Class Z	2,575,797	2,562,632
Cost of shares redeemed:
Class A	(83,484,431)	(45,442,925)
Class C	(4,295,727)	(4,377,625)
Class I	(524,005,046)	(168,455,733)
Class Y	(37)	-
Class Z	(16,808,128)	(10,658,772)
Increase (Decrease) in Net Assets from Capital Stock Transactions	(270,395,468)	127,145,227
Total Increase (Decrease) in Net Assets	(412,015,052)	146,360,002
Net Assets ($):
Beginning of Period	1,370,277,270	1,223,917,268
End of Period	958,262,218	1,370,277,270


		Year Ended August 31,
		2022	2021
Capital Share Transactions (Shares):
Class A^a,b
Shares sold		2,748,497	2,294,554
Shares issued for distributions reinvested		481,373	435,306
Shares redeemed		(5,998,408)	(3,082,989)
Net Increase (Decrease) in Shares Outstanding		(2,768,538)	(353,129)
Class C^a,b
Shares sold		97,869	133,805
Shares issued for distributions reinvested		7,841	7,794
Shares redeemed		(310,906)	(296,868)
Net Increase (Decrease) in Shares Outstanding		(205,196)	(155,269)
Class I^a
Shares sold		20,962,190	19,920,937
Shares issued for distributions reinvested		1,077,704	992,720
Shares redeemed		(37,731,922)	(11,412,330)
Net Increase (Decrease) in Shares Outstanding		(15,692,028)	9,501,327
Class Y
Shares issued for distributions reinvested		36	32
Shares redeemed		(2)	-
Net Increase (Decrease) in Shares Outstanding		34	32
Class Z
Shares sold		121,859	198,964
Shares issued for distributions reinvested		184,214	173,884
Shares redeemed		(1,201,718)	(724,002)
Net Increase (Decrease) in Shares Outstanding		(895,645)	(351,154)

^a	During the period ended August 31, 2022, 29,062 Class C shares representing $383,298 were exchanged for 29,074 Class I shares and 15,375 Class A shares representing $214,528 were exchanged for 15,369 Class I shares and 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.
^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.
See notes to financial statements.

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	2022	2021		2020	2019	2018
Per Share Data ($):
Net asset value, beginning of period	14.82	14.60		14.62	13.84	14.17
Investment Operations:
Net investment income^a	.28	.29		.33	.36	.39
Net realized and unrealized gain (loss) on investments	(1.65)	.22		.01	.78	(.34)
Total from Investment Operations	(1.37)	.51		.34	1.14	.05
Distributions:
Dividends from net investment income	(.28)	(.29)		(.33)	(.36)	(.38)
Dividends from net realized gain on investments	(.03)	-		(.03)	-	-
Total Distributions	(.31)	(.29)		(.36)	(.36)	(.38)
Net asset value, end of period	13.14	14.82		14.60	14.62	13.84
Total Return (%)^b	(9.39)	3.49		2.40	8.39	.40
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.93	.92		.93	.93	.94
Ratio of net expenses to average net assets	.70	.70		.70	.70	.70
Ratio of net investment income to average net assets	1.98	1.94		2.31	2.58	2.77
Portfolio Turnover Rate	14.94	5.65		20.01	17.80	29.95
Net Assets, end of period ($ x 1,000)	323,799	406,057		405,247	398,068	396,169

^a Based on average shares outstanding.

^b Exclusive of sales charge.

See notes to financial statements.



	Year Ended August 31,
Class C Shares	2022	2021		2020		2019		2018
Per Share Data ($):
Net asset value, beginning of period	14.82		14.60		14.62		13.84		14.17
Investment Operations:
Net investment income^a	.17		.18		.23		.26		.28
Net realized and unrealized gain (loss) on investments	(1.64)		.22		.01		.78		(.33)
Total from Investment Operations	(1.47)		.40		.24		1.04		(.05)
Distributions:
Dividends from net investment income	(.17)		(.18)		(.23)		(.26)		(.28)
Dividends from net realized gain on investments	(.03)		-		(.03)		-		-
Total Distributions	(.20)		(.18)		(.26)		(.26)		(.28)
Net asset value, end of period	13.15		14.82		14.60		14.62		13.84
Total Return (%)^b	(10.00)		2.72		1.63		7.58		(.35)
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	1.70		1.69		1.70		1.71		1.70
Ratio of net expenses to average net assets	1.45		1.45		1.45		1.45		1.45
Ratio of net investment income to average net assets	1.22		1.20		1.57		1.84		2.01
Portfolio Turnover Rate	14.94		5.65		20.01		17.80		29.95
Net Assets, end of period ($ x 1,000)	7,643		11,657		13,753		15,837		20,570

^a Based on average shares outstanding.

^b Exclusive of sales charge.

See notes to financial statements.

FINANCIAL HIGHLIGHTS (continued)



			Year Ended August 31,
Class I Shares	2022	2021		2020	2019	2018
Per Share Data ($):
Net asset value, beginning of period	14.82	14.61		14.63	13.85	14.17
Investment Operations:
Net investment income^a	.31	.32		.37	.40	.42
Net realized and unrealized gain (loss) on investments	(1.64)	.21		.01	.78	(.32)
Total from Investment Operations	(1.33)	.53		.38	1.18	.10
Distributions:
Dividends from net investment income	(.31)	(.32)		(.37)	(.40)	(.42)
Dividends from net realized gain on investments	(.03)	-		(.03)	-	-
Total Distributions	(.34)	(.32)		(.40)	(.40)	(.42)
Net asset value, end of period	13.15	14.82		14.61	14.63	13.85
Total Return (%)	(9.09)	3.68		2.65	8.66	.72
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.68	.67		.68	.68	.69
Ratio of net expenses to average net assets	.45	.45		.45	.45	.45
Ratio of net investment income to average net assets	2.20	2.19		2.55	2.83	3.01
Portfolio Turnover Rate	14.94	5.65		20.01	17.80	29.95
Net Assets, end of period ($ x 1,000)	501,481	797,982		647,477	462,545	397,293

^a Based on average shares outstanding.

See notes to financial statements.



	Year Ended August 31,
Class Y Shares	2022	2021	2020	2019	2018
Per Share Data ($):
Net asset value, beginning of period	14.82	14.61	14.63	13.85	14.18
Investment Operations:
Net investment income^a	.31	.32	.39	.40	.45
Net realized and unrealized gain (loss) on investments	(1.64)	.22	.00^b	.78	(.34)
Total from Investment Operations	(1.33)	.54	.39	1.18	.11
Distributions:
Dividends from net investment income	(.31)	(.33)	(.38)	(.40)	(.44)
Dividends from net realized gain on investments	(.03)	-	(.03)	-	-
Total Distributions	(.34)	(.33)	(.41)	(.40)	(.44)
Net asset value, end of period	13.15	14.82	14.61	14.63	13.85
Total Return (%)	(9.08)	3.70	2.72	8.71	.84
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.65	.85	.95	.65	.64
Ratio of net expenses to average net assets	.45	.45	.45	.45	.45
Ratio of net investment income to average net assets	2.24	2.20	2.55	2.88	3.21
Portfolio Turnover Rate	14.94	5.65	20.01	17.80	29.95
Net Assets, end of period ($ x 1,000)	21	23	22	1	1

^a Based on average shares outstanding.

^b Amount represents less than $.01 per share.

See notes to financial statements.

FINANCIAL HIGHLIGHTS (continued)



			Year Ended August 31,
Class Z Shares	2022	2021		2020	2019	2018
Per Share Data ($):
Net asset value, beginning of period	14.83	14.61		14.63	13.85	14.18
Investment Operations:
Net investment income^a	.31	.32		.37	.40	.42
Net realized and unrealized gain (loss) on investments	(1.65)	.22		.01	.77	(.34)
Total from Investment Operations	(1.34)	.54		.38	1.17	.08
Distributions:
Dividends from net investment income	(.31)	(.32)		(.37)	(.39)	(.41)
Dividends from net realized gain on investments	(.03)	-		(.03)	-	-
Total Distributions	(.34)	(.32)		(.40)	(.39)	(.41)
Net asset value, end of period	13.15	14.83		14.61	14.63	13.85
Total Return (%)	(9.18)	3.72		2.63	8.64	.62
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.70	.69		.69	.69	.69
Ratio of net expenses to average net assets	.49	.48		.48	.47	.48
Ratio of net investment income to average net assets	2.20	2.16		2.54	2.82	2.99
Portfolio Turnover Rate	14.94	5.65		20.01	17.80	29.95
Net Assets, end of period ($ x 1,000)	125,318	154,558		157,418	171,646	169,947

^a Based on average shares outstanding.

See notes to financial statements.

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. Insight North America LLC (the “Sub-Adviser”), a wholly-owned subsidiary of BNY Mellon and an affiliate of the Adviser, serves as the fund’s sub-adviser.

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 $250,000 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 BNY Mellon and its 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 Services 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

NOTES TO FINANCIAL STATEMENTS (continued)

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 Company enters 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).

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:

On July 25, 2022 the Company’s Board of Directors (the “Board”) approved, effective September 8, 2022, the Adviser, as the fund’s valuation designee to make all fair value determinations with respect to the fund’s portfolio investments, subject to the Board’s oversight and adopted all other updates pursuant to Rule 2A-5.

Investments in municipal securities are valued each business day by an independent pricing service (the “Service”) approved by 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). Municipal 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. The Service is engaged under the general oversight of the Board. All of the preceding securities are generally categorized within Level 2 of the fair value hierarchy.

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 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

NOTES TO FINANCIAL STATEMENTS (continued)

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, 2022 in 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	-	2,757,924	-	2,757,924
Municipal Securities	-	946,696,882	-	946,696,882

^† 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 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 world-wide. 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. 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. The COVID-19 pandemic has had, and any other outbreak of an infectious disease or other serious public health concern could have, a significant negative impact on economic and market conditions and could trigger a prolonged period of global economic slowdown. 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 net investment income. 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, 2022, 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, 2022, the fund did not incur any interest or penalties.

Each tax year in the four-year period ended August 31, 2022 remains subject to examination by the Internal Revenue Service and state taxing authorities.

NOTES TO FINANCIAL STATEMENTS (continued)

At August 31, 2022, the components of accumulated earnings on a tax basis were as follows: undistributed tax-exempt income $1,129,334 and unrealized depreciation $50,370,923. In addition, the fund had $5,946,489 of capital losses realized after October 31, 2021, which were deferred for tax purposes to the first day of the following fiscal year.

The tax character of distributions paid to shareholders during the fiscal years ended August 31, 2022 and August 31, 2021 were as follows: tax-exempt income $25,109,035 and $27,632,060, and long-term capital gains $2,528,901 and $0, 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 2021-01 on 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 BNY Mellon (the “BNYM Credit Facility”), 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. 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, 2022, the fund did not borrow under the Facilities.

NOTE 3—Management Fee, Sub-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, 2021 through December 31, 2022 to waive receipt of its fees and/or assume the direct expenses of the fund, so that the direct expenses of none of the fund’s share 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. Effective January 1, 2023, the fund’s management fee at an annual rate of .60% will be reduced to annual rate of .35% of the value of the fund’ average daily net assets. Also effective January 1, 2023, the Adviser has contractually agreed to extended the current undertaking, until December 31, 2023, to waive receipt of its fees and/or assume the expenses of the fund, so that the total annual fund operating expenses of none of the classes of the fund (excluding expenses as described above) exceed .45% of the value of the fund’ average daily net assets. On or after December 31, 2023, the Adviser may terminate this expense limitation agreement at any time. The reduction in expenses, pursuant to the undertaking, amounted to $2,641,356 during the period ended August 31, 2022.

Pursuant to a sub-investment advisory agreement between the Adviser and the Sub-Adviser, the Adviser pays the the Sub-Adviser 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, 2022, the Distributor retained $2,876 from commissions earned on sales of the fund’s Class A shares, $7,685 and $620 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

NOTES TO FINANCIAL STATEMENTS (continued)

are made. During the period ended August 31, 2022, Class C shares were charged $73,570 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 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, 2022, Class A and Class C shares were charged $903,321 and $24,523, 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, 2022, Class Z shares were charged $49,033 pursuant to the Shareholder Services Plan.

The fund has arrangements with BNY Mellon Transfer, Inc., (the “Transfer Agent”) and The Bank of New York Mellon (the “Custodian”), both a subsidiary of BNY Mellon and an affiliate of the Adviser, 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 Statement of Operations.

The fund compensates the Transfer Agent, 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 Agent 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, 2022, the fund was charged $80,221 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 Custodian, 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, 2022, the fund was charged $22,815 pursuant to the custody agreement.

The fund compensates the Custodian, 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, 2022, the fund was charged $3,887 pursuant to the agreement, which is included in Shareholder servicing costs in the Statement of Operations. These fees were partially offset by earnings credit of $51.

During the period ended August 31, 2022, the fund was charged $17,169 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 fee of $496,735, Distribution Plan fees of $4,864, Shareholder Services Plan fees of $82,528, Custodian fees of $8,250, Chief Compliance Officer fees of $2,539 and Transfer Agent fees of $19,003, which are offset against an expense reimbursement currently in effect in the amount of $204,254.

(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, 2022, amounted to $174,842,588 and $420,539,450, respectively.

At August 31, 2022, the cost of investments for federal income tax purposes was $999,825,729; accordingly, accumulated net unrealized depreciation on investments was $50,370,923, consisting of $5,067,353, gross unrealized appreciation and $55,438,276 gross unrealized depreciation.

NOTE 5—Plan of Reorganization:

The Board of BNY Mellon Connecticut Fund, BNY Mellon Massachusetts Fund and BNY Mellon Pennsylvania Fund (together, the “Acquired Funds”), each a series of BNY Mellon State Municipal Bond Funds (the

NOTES TO FINANCIAL STATEMENTS (continued)

“Trust”), has approved, subject to shareholder approval, an Agreement and Plan of Reorganization (the “Agreement”) between the fund and the Acquired Funds. The Agreement provides for the transfer of the Acquired Funds assets to the fund in a tax-free exchange for shares of the fund and the assumption by the fund of the Acquired Funds stated liabilities, the distribution of such shares of the fund to the Acquired Funds shareholders and the subsequent termination of the Acquired Funds (the “Reorganization”).

If approved by shareholders, the Reorganization will become effective on or about January 27, 2023. On that date, the Acquired Funds will transfer all of their assets at net asset value, subject to their liabilities, for an equivalent value of such shares of the fund. Such shares will be distributed pro rata to shareholders of the Acquired Funds so that each shareholder receives a number of shares of the fund equal to the aggregate net asset value of the shareholder’s Acquired Funds shares.

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, 2022, 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, 2022, 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, 2022, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other audit procedures. 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 24, 2022

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, 2022 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 2022 calendar year on Form 1099-DIV, which will be mailed in early 2023. The fund also hereby reports $.0273 per share as a long-term capital gain distribution paid on December 23, 2021.

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, 2021 to December 31, 2021, 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.

BOARD MEMBERS INFORMATION (Unaudited)

Independent Board Members

Joseph S. DiMartino (78)

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: 94

———————

Joni Evans (80)

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: 17

———————

Joan Gulley (74)

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: 40

———————

Alan H. Howard (62)

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: 17

———————

Robin A. Melvin (58)

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 quantity and 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: 72

———————

Burton N. Wallack (71)

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: 17

———————

BOARD MEMBERS INFORMATION (Unaudited) (continued)

Benaree Pratt Wiley (76)

Board Member (2016)

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: 61

———————

Gordon J. Davis (81)

Advisory Board Member (2021)

Principal Occupation During Past 5 Years:

· Venable LLP, a law firm Partner (2012-Present)

Other Public Company Board Memberships During Past 5 Years:

· BNY Mellon Family of Funds (53 funds), Board Member (1995-August 2021)

No. of Portfolios for which Advisory Board Member Serves: 39

———————

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 each Board Member 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.

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; and Director of Product Strategy, BNY Mellon Investment Management from January 2016 to December 2017. He is an officer of 55 investment companies (comprised of 108 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 44 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; and Director–BNY Mellon Fund Administration. He is an officer of 56 investment companies (comprised of 129 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 63 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 and Associate General Counsel of BNY Mellon since July 2021; Senior Managing Counsel of BNY Mellon from December 2020 to July 2021; and Managing Counsel of BNY Mellon from March 2009 to December 2020. He is an officer of 56 investment companies (comprised of 129 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 54 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; and Secretary of the Adviser. He is an officer of 56 investment companies (comprised of 129 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 December 1996.

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

Managing Counsel of BNY Mellon since December 2021, Counsel of BNY Mellon from August 2018 to December 2021; and Senior Regulatory Specialist at BNY Mellon Investment Management Services from February 2016 to August 2018. She is an officer of 56 investment companies (comprised of 129 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 32 years old and has been an employee of the Adviser since August 2018.

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

Vice President of BNY Mellon ETF Investment Adviser; LLC since February 2020; Senior Managing Counsel of BNY Mellon since September 2021; Managing Counsel of BNY Mellon from December 2017 to September 2021; and Senior Counsel of BNY Mellon from March 2013 to December 2017. She is an officer of 56 investment companies (comprised of 129 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 46 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. He is an officer of 56 investment companies (comprised of 129 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 57 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; and Senior Regulatory Specialist at BNY Mellon Investment Management Services from April 2015 to August 2018. She is an officer of 56 investment companies (comprised of 129 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 37 years old and has been an employee of the Adviser since June 2019.

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 since February 2020 of BNY Mellon ETF Investment Adviser, LLC; Chief Compliance Officer since August 2021 and Vice President and Assistant Secretary since February 2020 of BNY Mellon ETF Trust; Managing Counsel of BNY Mellon from December 2019 to August 2021; Counsel of BNY Mellon from May 2016 to December 2019; and Assistant Secretary of the Adviser from April 2018 to August 2021. She is an officer of 55 investment companies (comprised of 128 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 37 years old and has been an employee of BNY Mellon since May 2016.

DANIEL GOLDSTEIN, Vice President since March 2022.

Vice President and Head of Product Development of North America Product, BNY Mellon Investment Management since January 2018; Co-Head of Product Management, Development & Oversight of North America Product, BNY Mellon Investment Management from January 2010 to January 2018; and Senior Vice President, Development & Oversight of North America Product, BNY Mellon Investment Management since 2010. He is an officer of 55 investment companies (comprised of 108 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 53 years old and has been an employee of the Distributor since 1991.

JOSEPH MARTELLA, Vice President since March 2022.

Vice President and Head of Product Management of North America Product, BNY Mellon Investment Management since January 2018; Director of Product Research and Analytics of North America Product, BNY Mellon Investment Management from January 2010 to January 2018; and Senior Vice President of North America Product, BNY Mellon Investment Management since 2010. He is an officer of 55 investment companies (comprised of 108 portfolios) managed by the Adviser or an affiliate of the Adviser. He is 45 years old and has been an employee of the Distributor since 1999.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

Tax Manager–BNY Mellon Fund Administration. He is an officer of 56 investment companies (comprised of 129 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 April 1991.

ROBERT SALVIOLO, Assistant Treasurer since July 2007.

Senior Accounting Manager–BNY Mellon Fund Administration. He is an officer of 56 investment companies (comprised of 129 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 June 1989.

ROBERT SVAGNA, Assistant Treasurer since August 2005.

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; and Chief Compliance Officer of the Adviser from 2004 until June 2021. He is an officer of 55 investment companies (comprised of 115 portfolios) managed by the Adviser. He is 65 years old.

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 48 investment companies (comprised of 121 portfolios) managed by the Adviser or an affiliate of the Adviser. She is 54 years old and has been an employee of the Distributor since 1997.

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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 to info@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.com and on the SEC’s website at www.sec.gov and without charge, upon request, by calling 1-800-373-9387.


© 2022 BNY Mellon Securities Corporation 0319AR0822

BNY Mellon High Yield Municipal Bond Fund

ANNUAL REPORT

August 31, 2022

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.

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

Contents

THE FUND


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	47
Important Tax Information	48
Liquidity Risk Management Program	49
Board Members Information	50
Officers of the Fund	53

FOR MORE INFORMATION

Back Cover

DISCUSSION OF FUND PERFORMANCE (Unaudited)

For the period from September 1, 2021, through August 31, 2022, as provided by portfolio managers Daniel Barton and Jeffrey Burger of Insight North America LLC sub-adviser

Market and Fund Performance Overview

For the 12-month period ended August 31, 2022, BNY Mellon High Yield Municipal Bond Fund’s(the “fund”) Class A shares achieved a −13.48% total return, Class C shares returned −14.09%, Class I shares returned −13.24%, Class Y shares returned −13.20% and Class Z shares returned −13.33%.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 −8.63%.²

Municipal bonds posted losses, driven by outflows stemming from concerns about inflation and interest-rate hikes. The fund lagged the Index mainly due to duration positioning, an overweight to revenue bond, and an overweight to high yield securities.

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. Municipal bonds are debt securities or other obligations issued by states, territories and possessions of the United States (such as Puerto Rico, the U.S. Virgin Islands, Guam and the Northern Mariana Islands) and the District of Columbia and their political subdivisions, agencies and instrumentalities, or multistate agencies and authorities, and certain other specified securities. 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.

Although the fund seeks to provide income exempt from federal income tax, income from some of the fund’s holdings may be subject to the federal alternative minimum tax.

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.

Markets Hindered by Inflation and Rising Rates

Fixed-income markets posted a negative performance during the reporting period, which was driven by worries about rising inflation, Russia’s invasion of Ukraine and tightening monetary policy from the Federal Reserve (the “Fed”).

Early in the reporting period, the municipal bond market continued to benefit from policies put in place in response to the COVID-19 pandemic, including support from the federal government. This, and a number of other factors, produced strong inflows to the market.

The fiscal health of issuers was also supported by an economy that was strong early in the reporting period. During much of the pandemic, real estate and income tax collections outperformed projections and progressive tax regimes proved beneficial because higher-earning, white-collar workers were largely able to work from home. Strong stock market returns also boosted revenues from capital gains taxes.

Historically, municipal bonds have been perceived as a safe haven from turmoil in fixed-income markets. But the persistence of higher-than-expected inflation, combined with measures from the Fed to combat it, have led to significant outflows from municipal bond mutual funds, especially in the second half of the reporting period. The need for fund managers to meet redemptions only added to the downward momentum. In addition, the latter part of the period was characterized by volatility stemming from these headwinds as well as from the war in Ukraine.

Duration Positioning and an Overweight to Revenue Bonds Hindered Returns

The fund lagged the Index during the reporting period, due mostly to its long-duration positioning. Exposure to the long end of the curve was detrimental as prices declined. In addition, an overweight to revenue bonds hindered results, especially in the tobacco and

DISCUSSION OF FUND PERFORMANCE (Unaudited) (continued)

hospital sectors. The fund also made use of derivatives during the period, specifically tender-option bonds, which also detracted from returns.

On a more positive note, the fund’s performance was aided by certain revenue bond segments. An overweight to the charter school sector was beneficial, and the fund’s position in Puerto Rico bonds was also advantageous.

Continued Uncertainty Expected

Inflation remains a concern and is likely remain so over the foreseeable future. Until pricing pressures begin to come down and the Fed is able to step back from its inflation-fighting efforts, outflows from municipal bond mutual funds may continue.

Despite the difficult market conditions, certain factors are likely to continue to provide support. Credit fundamentals remain strong, with tax revenues and “rainy day” funds continuing to be healthy, in part due to financial support from the federal government. Volatility has also created value in the market, potentially offering opportunities to investors who have a long-term perspective and are able to tolerate volatility in the short term.

September 15, 2022

¹ Total 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, 2022, at which time it may be extended, terminated or modified. Had these expenses not been absorbed, the fund’s returns would have been lower.

2 Source: 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.

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.

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 8/31/12 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.

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.

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 8/31/12 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.


Average Annual Total Returns as of 8/31/2022
	Inception Date	1 Year	5 Years	10 Years
Class A shares
with maximum sales charge (4.50%)	3/15/07	-17.35%	.57%	2.62%
without sales charge	3/15/07	-13.48%	1.51%	3.09%
Class C shares
with applicable redemption charge ^†	3/15/07	-14.93%	.74%	2.31%
without redemption	3/15/07	-14.09%	.74%	2.31%
Class I shares	12/15/08	-13.24%	1.75%	3.34%
Class Y shares	7/1/13	-13.20%	1.78%	3.32%^††
Class Z shares	9/30/05	-13.33%	1.65%	3.21%
Bloomberg U.S. Municipal Bond Index		-8.63%	1.28%	2.25%

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

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

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, 2022 to August 31, 2022. 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, 2022

	Class A	Class C	Class I	Class Y	Class Z
Expenses paid per $1,000^†	$4.22	$8.05	$3.12	$2.98	$3.74
Ending value (after expenses)	$904.40	$900.80	$905.20	$905.50	$904.80

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

Using the SEC’s method to compare expenses


Expenses and Value of a $1,000 Investment
Assuming a hypothetical 5% annualized return for the six months ended August 31, 2022

		Class A	Class C	Class I	Class Y	Class Z
Expenses paid per $1,000^†		$4.48	$8.54	$3.31	$3.16	$3.97
Ending value (after expenses)		$1,020.77	$1,016.74	$1,021.93	$1,022.08	$1,021.27
^†	Expenses are equal to the fund’s annualized expense ratio of .88% for Class A, 1.68% for Class C, .65% for Class I, .62% for Class Y and .78% for Class Z, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

STATEMENT OF INVESTMENTS

August 31, 2022



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 $1,043,191)		3.63	5/20/2033	950,437		919,308

Long-Term Municipal Investments - 101.3%
Alabama - 3.5%
Birmingham-Jefferson Civic Center Authority, Special Tax Bonds, Ser. B		5.00	7/1/2031	1,850,000		2,014,122
Black Belt Energy Gas District, Revenue Bonds, Refunding		4.00	12/1/2031	5,000,000	^a	4,971,883
Black Belt Energy Gas District, Revenue Bonds, Refunding, Ser. D1		4.00	6/1/2027	1,000,000	^a	1,015,381
Jefferson County, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. C		6.60	10/1/2042	2,000,000	^b	2,036,490
Southeast Energy Authority, Revenue Bonds (Project No. 2) Ser. B		4.00	12/1/2031	1,000,000	^a	984,532
					11,022,408
Alaska - .6%
Northern Tobacco Securitization Corp., Revenue Bonds, Refunding, Ser. B1		4.00	6/1/2050	2,000,000		2,032,618
Arizona - 7.1%
Arizona Industrial Development Authority, Revenue Bonds (Academics of Math & Science Project)		5.00	7/1/2054	1,000,000	^c	979,642
Arizona Industrial Development Authority, Revenue Bonds (Cadence Campus Project) Ser. A		4.00	7/15/2050	1,600,000	^c	1,318,381
Arizona Industrial Development Authority, Revenue Bonds (Doral Academy of Nevada) Ser. A		5.00	7/15/2049	1,675,000	^c	1,650,543
Arizona Industrial Development Authority, Revenue Bonds (Legacy Cares Project) Ser. A		6.00	7/1/2051	1,000,000	^c	909,859
Arizona Industrial Development Authority, Revenue Bonds (Legacy Cares Project) Ser. A		7.75	7/1/2050	2,725,000	^c	2,901,885

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
Arizona - 7.1% (continued)
Glendale Industrial Development Authority, Revenue Bonds, Refunding (Sun Health Services Obligated Group) Ser. A		5.00	11/15/2054	1,500,000		1,554,286
La Paz County Industrial Development Authority, Revenue Bonds (Harmony Public Schools) Ser. A		5.00	2/15/2048	1,600,000		1,597,032
La Paz County Industrial Development Authority, Revenue Bonds (Harmony Public Schools) Ser. A		5.00	2/15/2036	1,000,000	^c	1,012,578
Maricopa County Industrial Development Authority, Revenue Bonds (Benjamin Franklin Charter School Obligated Group)		6.00	7/1/2038	2,250,000	^c	2,457,373
Maricopa County Industrial Development Authority, Revenue Bonds, Refunding (Legacy Traditional Schools Project)		5.00	7/1/2054	1,000,000	^c	999,931
Maricopa County Industrial Development Authority, Revenue Bonds, Refunding (Legacy Traditional Schools Project)		5.00	7/1/2049	700,000	^c	703,970
Tempe Industrial Development Authority, Revenue Bonds, Refunding, Ser. A		4.00	12/1/2046	2,000,000		1,578,182
The Phoenix Industrial Development Authority, Revenue Bonds (Legacy Traditional Schools Project) Ser. A		6.75	7/1/2044	1,000,000	^c	1,052,166
The Phoenix Industrial Development Authority, Revenue Bonds, Refunding (BASIS Schools Projects) Ser. A		5.00	7/1/2046	2,250,000	^c	2,261,038
The Phoenix Industrial Development Authority, Revenue Bonds, Refunding (Downtown Phoenix Student Housing LLC) Ser. A		5.00	7/1/2042	1,500,000		1,512,724
					22,489,590
California - 7.7%
California County Tobacco Securitization Agency, Revenue Bonds, Refunding, Ser. A		4.00	6/1/2049	1,805,000		1,697,450
California County Tobacco Securitization Agency, Revenue Bonds, Refunding, Ser. B1		5.00	6/1/2049	780,000		805,734



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
California - 7.7% (continued)
California Municipal Finance Authority, Revenue Bonds (Green Bond) (Insured; Build America Mutual)		4.00	5/15/2046	3,450,000		3,271,918
California Municipal Finance Authority, Revenue Bonds, Refunding (William Jessup University)		5.00	8/1/2039	1,000,000	^c	994,461
California Public Finance Authority, Revenue Bonds (Green Bond) (ENSO Village Project)		5.00	11/15/2056	750,000	^c	673,369
California Public Finance Authority, Revenue Bonds (Green Bond) (ENSO Village Project)		5.00	11/15/2051	500,000	^c	456,396
California Statewide Communities Development Authority, Revenue Bonds (California Baptist University) Ser. A		6.38	11/1/2043	2,000,000	^c	2,058,656
California Statewide Communities Development Authority, Revenue Bonds (Loma Linda University Medical Center Obligated Group)		5.50	12/1/2058	1,000,000	^c	1,012,018
California Statewide Communities Development Authority, Revenue Bonds, Refunding (Front Porch Communities & Services Obligated Group)		4.00	4/1/2046	1,750,000		1,613,813
Golden State Tobacco Securitization Corp., Revenue Bonds, Refunding, Ser. B2		0.00	6/1/2066	23,000,000	^d	2,720,021
Orange County Community Facilities District, Special Tax Bonds, Ser. A		5.00	8/15/2052	1,500,000		1,542,166
San Diego County Regional Airport Authority, Revenue Bonds, Ser. B		4.00	7/1/2051	1,500,000		1,369,754
San Diego County Regional Airport Authority, Revenue Bonds, Ser. B		4.00	7/1/2046	2,000,000		1,859,933
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		11.81	5/1/2050	3,890,000	^c,e,f	4,029,839
					24,105,528
Colorado - 6.0%
Colorado Health Facilities Authority, Revenue Bonds (Covenant Retirement Communities & Services Obligated Group)		5.00	12/1/2048	1,500,000		1,528,662

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
Colorado - 6.0% (continued)
Denver International Business Center Metropolitan District No.1, GO, Ser. B		6.00	12/1/2048	1,000,000		1,010,228
Dominion Water & Sanitation District, Revenue Bonds		6.00	12/1/2046	2,492,000		2,545,711
Dominion Water & Sanitation District, Revenue Bonds, Refunding		5.88	12/1/2052	2,750,000		2,750,000
Hess Ranch Metropolitan District No. 6, GO, Ser. A1		5.00	12/1/2049	1,500,000		1,435,511
Hunters Overlook Metropolitan District No. 5, GO, Ser. A		5.00	12/1/2049	1,000,000		959,707
Hunters Overlook Metropolitan District No. 5, GO, Ser. A		5.00	12/1/2039	900,000		897,350
Rampart Range Metropolitan District No. 5, Revenue Bonds		4.00	12/1/2051	2,000,000		1,578,166
STC Metropolitan District No. 2, GO, Refunding, Ser. A		5.00	12/1/2049	1,000,000		970,119
Sterling Ranch Community Authority Board, Revenue Bonds (Insured; Municipal Government Guaranteed) Ser. A		5.00	12/1/2047	2,250,000		2,156,514
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		11.23	8/1/2044	2,200,000	^c,e,f	2,430,754
Vauxmont Metropolitan District, GO, Refunding (Insured; Assured Guaranty Municipal Corp.)		3.25	12/15/2050	765,000		599,744
					18,862,466
Connecticut - .5%
Harbor Point Infrastructure Improvement District, Tax Allocation Bonds, Refunding (Harbor Point Project)		5.00	4/1/2039	1,500,000	^c	1,554,422
District of Columbia - 2.1%
District of Columbia, Revenue Bonds (Ingleside Rock Creek Project) Ser. A		5.00	7/1/2052	2,000,000		1,824,122
Metropolitan Washington Airports Authority, Revenue Bonds, Refunding (Dulles Metrorail) Ser. B		4.00	10/1/2049	4,090,000		3,687,099



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
District of Columbia - 2.1% (continued)
Metropolitan Washington Airports Authority, Revenue Bonds, Refunding, Ser. A		5.00	10/1/2027	1,000,000		1,038,380
					6,549,601
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	1,141,047
Florida Higher Educational Facilities Financial Authority, Revenue Bonds (Jacksonville University) Ser. A1		5.00	6/1/2048	1,500,000	^c	1,497,728
Florida Municipal Power Agency, Revenue Bonds, Ser. A		3.00	10/1/2032	1,000,000		952,428
Lee County Industrial Development Authority, Revenue Bonds (Shell Point/Waterside Health Project)		5.00	11/15/2049	2,500,000		2,571,361
Palm Beach County Health Facilities Authority, Revenue Bonds (Lifespace Communities Inc. Obligated Group) Ser. B		4.00	5/15/2053	1,400,000		1,050,188
Pinellas County Industrial Development Authority, Revenue Bonds (Foundation for Global Understanding Inc.)		5.00	7/1/2039	1,000,000		1,014,956
Seminole County Industrial Development Authority, Revenue Bonds, Refunding (Legacy Pointe at UCF Project)		5.75	11/15/2054	2,000,000		1,815,828
St. Johns County Industrial Development Authority, Revenue Bonds, Refunding (Vicars Landing Project)		4.00	12/15/2041	500,000		413,054
St. Johns County Industrial Development Authority, Revenue Bonds, Refunding (Vicars Landing Project)		4.00	12/15/2046	1,000,000		786,699
Tender Option Bond Trust Receipts (Series 2019-XF0813), (Fort Myers Florida Utility, Revenue Bonds) Non-recourse, Underlying Coupon Rate (%) 4.00		7.19	10/1/2049	1,635,000	^c,e,f	1,547,642
Tender Option Bond Trust Receipts (Series 2020-XF2877), (Greater Orlando Aviation Authority, Revenue Bonds, Ser. A) Recourse, Underlying Coupon Rate (%) 4.00		8.29	10/1/2049	2,280,000	^c,e,f	2,101,270

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
Florida - 4.9% (continued)
Village Community Development District No. 10, Special Assessment Bonds		6.00	5/1/2044	600,000		607,667
					15,499,868
Georgia - 3.0%
Georgia Municipal Electric Authority, Revenue Bonds (Plant Vogtle Units 3&4 Project) Ser. A		5.00	7/1/2052	1,225,000		1,287,747
Georgia Municipal Electric Authority, Revenue Bonds, Refunding (Plant Vogtle Units 3&4 Project) Ser. A		5.00	1/1/2056	1,000,000		1,031,294
Marietta Development Authority, Revenue Bonds, Refunding (Life University Inc.) Ser. A		5.00	11/1/2047	2,000,000	^c	2,008,894
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		12.01	1/1/2056	1,850,000	^c,e,f	1,908,682
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		9.69	7/1/2044	3,180,000	^c,e,f	3,306,288
					9,542,905
Idaho - 1.1%
Idaho Health Facilities Authority, Revenue Bonds, Refunding (St. Luke's Health System Project) Ser. A		5.00	3/1/2037	1,000,000		1,061,138
Spring Valley Community Infrastructure District No. 1, Special Assessment Bonds		3.75	9/1/2051	3,000,000	^c	2,326,181
					3,387,319
Illinois - 8.6%
Chicago Board of Education, GO, Refunding, Ser. A		5.00	12/1/2033	1,000,000		1,043,434
Chicago Board of Education, GO, Refunding, Ser. B		5.00	12/1/2033	500,000		523,749
Chicago Board of Education, GO, Ser. A		5.00	12/1/2047	1,500,000		1,531,803
Chicago Board of Education, GO, Ser. D		5.00	12/1/2046	1,000,000		1,026,002



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
Illinois - 8.6% (continued)
Chicago Board of Education, GO, Ser. H		5.00	12/1/2036	2,000,000		2,072,651
Chicago II, GO, Refunding, Ser. A		6.00	1/1/2038	1,000,000		1,075,719
Chicago II, GO, Refunding, Ser. C		5.00	1/1/2024	1,250,000		1,282,938
Chicago II Wastewater Transmission, Revenue Bonds, Refunding, Ser. C		5.00	1/1/2039	1,000,000		1,029,042
Chicago O'Hare International Airport, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2048	3,000,000		3,058,007
Chicago O'Hare International Airport, Revenue Bonds, Refunding, Ser. A		5.00	1/1/2034	1,000,000		1,025,465
Chicago O'Hare International Airport, Revenue Bonds, Ser. A		5.50	1/1/2055	2,000,000		2,127,920
Chicago Transit Authority, Revenue Bonds, Refunding, Ser. A		5.00	12/1/2045	1,000,000		1,064,337
Illinois, GO, Ser. C		5.00	11/1/2029	1,300,000		1,381,208
Illinois Finance Authority, Revenue Bonds, Refunding (Lutheran Life Communities Obligated Group) Ser. A		5.00	11/1/2040	2,100,000		1,964,164
Illinois Finance Authority, Revenue Bonds, Refunding (Rosalind Franklin University of Medicine & Science)		5.00	8/1/2036	1,075,000		1,110,591
Metropolitan Pier & Exposition Authority, Revenue Bonds, Refunding (McCormick Place Expansion Project)		5.00	6/15/2050	1,000,000		1,020,888
Northern Illinois University, Revenue Bonds, Refunding (Insured; Build America Mutual)		4.00	10/1/2043	1,000,000		904,569
Sales Tax Securitization Corp., Revenue Bonds, Refunding, Ser. A		4.00	1/1/2038	1,400,000		1,342,251
Sales Tax Securitization Corp., Revenue Bonds, Refunding, Ser. A		4.00	1/1/2039	850,000		810,093
The Illinois Sports Facilities Authority, Revenue Bonds, Refunding (Insured; Build America Mutual)		5.00	6/15/2030	1,500,000		1,665,024
					27,059,855
Indiana - .9%
Indiana Finance Authority, Revenue Bonds (Green Bond)		7.00	3/1/2039	3,525,000	^c	2,815,275

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
Iowa - 2.6%
Iowa Finance Authority, Revenue Bonds, Refunding (Iowa Fertilizer Co. Project)		5.00	12/1/2050	1,500,000		1,520,309
Iowa Finance Authority, Revenue Bonds, Refunding (Lifespace Communities Inc. Obligated Group) Ser. A		4.00	5/15/2046	3,500,000		2,754,360
Iowa Student Loan Liquidity Corp., Revenue Bonds, Ser. B		5.00	12/1/2029	1,575,000		1,727,792
Iowa Tobacco Settlement Authority, Revenue Bonds, Refunding, Ser. A2		4.00	6/1/2049	2,500,000		2,306,565
					8,309,026
Kansas - .0%
Kansas Development Finance Authority, Revenue Bonds, Ser. B		4.00	11/15/2025	150,000		141,198
Kentucky - .8%
Henderson , Revenue Bonds (Pratt Paper Project) Ser. A		4.70	1/1/2052	500,000	^c	496,034
Louisville & Jefferson County Metropolitan Government, Revenue Bonds (Norton Healthcare Obligated Group) Ser. D		5.00	10/1/2029	1,000,000	^a	1,093,909
Paducah Electric Plant Board, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. A		5.00	10/1/2035	750,000		817,833
					2,407,776
Louisiana - 1.4%
Louisiana Public Facilities Authority, Revenue Bonds, Refunding (Tulane University) Ser. A		4.00	4/1/2050	1,760,000		1,655,255
Louisiana Public Facilities Authority, Revenue Bonds, Refunding (Tulane University) Ser. A		4.00	4/1/2030	240,000	^g	259,062
New Orleans Aviation Board, Revenue Bonds, Ser. B		5.00	1/1/2048	1,500,000		1,527,183
St. John The Baptist Parish, Revenue Bonds, Refunding (Marathon Oil Corp.)		2.20	7/1/2026	1,000,000	^a	950,796
					4,392,296
Maryland - .5%
Maryland Economic Development Corp., Revenue Bonds (Green Bond) (Purple Line Transit Partners LLC) Ser. B		5.25	6/30/2052	1,375,000		1,461,349



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
Massachusetts - 1.8%
Lowell Collegiate Charter School, Revenue Bonds		5.00	6/15/2049	1,750,000		1,711,949
Massachusetts Development Finance Agency, Revenue Bonds, Refunding (Bentley University) Ser. A		4.00	7/1/2040	650,000		610,047
Massachusetts Educational Financing Authority, Revenue Bonds		5.00	7/1/2029	1,250,000		1,368,967
Massachusetts Educational Financing Authority, Revenue Bonds, Ser. B		5.00	7/1/2028	1,775,000		1,947,007
					5,637,970
Michigan - 2.0%
Detroit, GO, Ser. A		5.00	4/1/2046	1,000,000		1,007,534
Michigan Finance Authority, Revenue Bonds, Refunding (Trinity Health Corp. Obligated Group)		5.00	6/1/2026	35,000	^g	38,119
Michigan Tobacco Settlement Finance Authority, Revenue Bonds, Refunding, Ser. C		0.00	6/1/2058	114,680,000	^d	5,267,482
					6,313,135
Missouri - 2.0%
Kansas City Industrial Development Authority, Revenue Bonds (Kansas City International Airport Terminal) Ser. A		5.00	3/1/2044	1,000,000		1,029,815
The Missouri Health & Educational Facilities Authority, Revenue Bonds (Lutheran Senior Services Projects) Ser. A		5.00	2/1/2036	1,000,000		1,020,696
The Missouri Health & Educational Facilities Authority, Revenue Bonds (Lutheran Senior Services Projects) Ser. A		5.00	2/1/2042	1,000,000		1,028,103
The St. Louis Missouri Industrial Development Authority, Revenue Bonds, Refunding (Ballpark Village Development Project) Ser. A		4.75	11/15/2047	2,500,000		2,056,036
The St. Louis Missouri Industrial Development Authority, Tax Allocation Bonds (St. Louis Innovation District Project)		4.38	5/15/2036	1,200,000		1,160,852
					6,295,502

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
Nevada - .8%
North Las Vegas, Special Assessment Bonds		4.63	6/1/2049	955,000		924,543
North Las Vegas, Special Assessment Bonds		4.63	6/1/2043	475,000		468,885
Reno, Revenue Bonds, Refunding, Ser. D		0.00	7/1/2058	13,000,000	^c,d	1,295,233
					2,688,661
New Hampshire - .3%
New Hampshire Business Finance Authority, Revenue Bonds, Refunding (Springpoint Senior Living Obligated Group)		4.00	1/1/2041	1,000,000		900,879
New Jersey - 3.5%
New Jersey Economic Development Authority, Revenue Bonds (Beloved Community Charter School Project) Ser. A		5.00	6/15/2039	825,000	^c	827,476
New Jersey Economic Development Authority, Revenue Bonds (Continental Airlines Project)		5.13	9/15/2023	530,000		535,845
New Jersey Economic Development Authority, Revenue Bonds, Refunding, Ser. XX		5.25	6/15/2027	1,000,000		1,058,370
New Jersey Transportation Trust Fund Authority, Revenue Bonds		5.00	6/15/2046	1,500,000		1,549,975
New Jersey Transportation Trust Fund Authority, Revenue Bonds		5.25	6/15/2043	1,000,000		1,051,672
South Jersey Port Corp., Revenue Bonds, Ser. B		5.00	1/1/2042	1,500,000		1,522,281
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. A		5.00	6/1/2046	780,000		805,886
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. A		5.25	6/1/2046	350,000		366,386
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. B		5.00	6/1/2046	3,190,000		3,215,104
					10,932,995
New York - 6.3%
New York Convention Center Development Corp., Revenue Bonds, Ser. B		0.00	11/15/2042	10,815,000	^d	3,839,452
New York Transportation Development Corp., Revenue Bonds (Delta Air Lines Inc.)		5.00	1/1/2032	1,000,000		1,034,899
New York Transportation Development Corp., Revenue Bonds (JFK International Air Terminal LLC)		5.00	12/1/2039	2,000,000		2,091,974



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
New York - 6.3% (continued)
New York Transportation Development Corp., Revenue Bonds (JFK International Air Terminal LLC)		5.00	12/1/2036	1,750,000		1,844,854
New York Transportation Development Corp., Revenue Bonds (LaGuardia Airport Terminal B Redevelopment Project) Ser. A		5.25	1/1/2050	2,000,000		2,056,300
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		1,212,803
Port Authority of New York & New Jersey, Revenue Bonds, Ser. 221		4.00	7/15/2055	1,350,000		1,193,753
Tender Option Bond Trust Receipts (Series 2022-XM1004), (Metropolitan Transportation Authority, Revenue Bonds, Refunding (Green Bond) (Insured; Assured Guaranty Municipal Corp., Ser. C)) Non-recourse, Underlying Coupon Rate (%) 4.00		4.67	11/15/2047	3,000,000	^c,e,f	2,861,149
TSASC Inc., Revenue Bonds, Refunding, Ser. B		5.00	6/1/2045	2,335,000		2,303,593
Westchester County Local Development Corp., Revenue Bonds, Refunding (Purchase Senior Learning Community Obligated Group)		5.00	7/1/2056	1,500,000	^c	1,244,521
					19,683,298
North Carolina - 1.4%
North Carolina Medical Care Commission, Revenue Bonds, Refunding (Lutheran Services for the Aging Inc. Obligated Group)		4.00	3/1/2051	4,500,000		3,372,197
North Carolina Turnpike Authority, Revenue Bonds (Insured; Assured Guaranty Municipal Corp.)		4.00	1/1/2055	1,000,000		937,329
					4,309,526
Ohio - 3.2%
Buckeye Tobacco Settlement Financing Authority, Revenue Bonds, Refunding, Ser. B2		5.00	6/1/2055	6,900,000		6,572,099
Centerville, Revenue Bonds, Refunding (Graceworks Lutheran Services Obligated Group)		5.25	11/1/2047	1,200,000		1,152,970

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
Ohio - 3.2% (continued)
Cuyahoga County, Revenue Bonds, Refunding (The MetroHealth System)		5.00	2/15/2052	1,000,000		1,011,775
Franklin County Convention Facilities Authority, Revenue Bonds (GRTR Columbus Convention Center)		5.00	12/1/2044	1,250,000		1,259,258
					9,996,102
Oklahoma - .8%
Oklahoma Development Finance Authority, Revenue Bonds (OU Medicine Project) Ser. B		5.50	8/15/2057	1,500,000		1,415,120
Tulsa County Industrial Authority, Revenue Bonds, Refunding (Montereau Project)		5.25	11/15/2037	1,000,000		1,036,253
					2,451,373
Oregon - 1.5%
Clackamas County Hospital Facility Authority, Revenue Bonds, Refunding (Willamette View Obligated Group) Ser. A		5.00	11/15/2047	1,500,000		1,449,837
Salem Hospital Facility Authority, Revenue Bonds, Refunding (Capital Manor Project)		4.00	5/15/2047	1,000,000		843,933
Warm Springs Reservation Confederated Tribe, Revenue Bonds, Refunding (Green Bond) Ser. B		5.00	11/1/2039	600,000	^c	652,095
Yamhill County Hospital Authority, Revenue Bonds, Refunding (Friendsview Manor Obligated Group) Ser. A		5.00	11/15/2056	1,970,000		1,682,444
					4,628,309
Pennsylvania - 4.9%
Allentown Neighborhood Improvement Zone Development Authority, Revenue Bonds (City Center Project)		5.00	5/1/2042	1,500,000	^c	1,527,343
Allentown School District, GO (Insured; Build America Mutual) Ser. C		5.00	2/1/2037	1,000,000		1,094,679
Chester County Industrial Development Authority, Special Assessment Bonds (Woodlands at Graystone Project)		5.13	3/1/2048	936,000	^c	934,016



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
Pennsylvania - 4.9% (continued)
Crawford County Hospital Authority, Revenue Bonds, Refunding (Meadville Medical Center Project) Ser. A		6.00	6/1/2046	1,000,000		1,028,510
Lancaster County Hospital Authority, Revenue Bonds, Refunding (Brethren Village Project)		5.25	7/1/2041	1,000,000		995,191
Lancaster County Hospital Authority, Revenue Bonds, Refunding (St. Anne's Retirement Community Obligated Group)		5.00	3/1/2050	500,000		451,048
Lancaster County Hospital Authority, Revenue Bonds, Refunding (St. Anne's Retirement Community Obligated Group)		5.00	3/1/2045	500,000		460,093
Lancaster County Hospital Authority, Revenue Bonds, Refunding (St. Anne's Retirement Community Obligated Group)		5.00	3/1/2040	500,000		470,529
Lancaster Industrial Development Authority, Revenue Bonds, Refunding (Landis Homes Obligated Group)		4.00	7/1/2051	1,500,000		1,248,180
Luzerne County Industrial Development Authority, Revenue Bonds, Refunding (Pennsylvania-American Water Co.)		2.45	12/3/2029	2,270,000	^a	2,109,639
Montgomery County Higher Education & Health Authority, Revenue Bonds, Refunding (Thomas Jefferson University Project)		4.00	9/1/2034	1,000,000		994,443
Pennsylvania Economic Development Financing Authority, Revenue Bonds (Greed Bond) (Covanta Project)		3.25	8/1/2039	850,000	^c	683,195
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Refunding (University of Sciences)		5.00	11/1/2033	1,000,000		1,035,595
Philadelphia, GO, Ser. A		4.00	5/1/2042	1,000,000		957,863
The Philadelphia School District, GO (Insured; State Aid Withholding) Ser. A		4.00	9/1/2039	1,350,000		1,344,061
					15,334,385
Rhode Island - .4%
Rhode Island Student Loan Authority, Revenue Bonds, Ser. A		5.00	12/1/2030	1,175,000		1,297,461

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
South Carolina - 1.5%
South Carolina Jobs-Economic Development Authority, Revenue Bonds (Furman University) Ser. A		4.00	4/1/2052	2,000,000		1,864,127
South Carolina Public Service Authority, Revenue Bonds, Refunding, Ser. A		4.00	12/1/2036	1,500,000		1,458,844
South Carolina Public Service Authority, Revenue Bonds, Refunding, Ser. E		5.25	12/1/2055	1,400,000		1,432,006
					4,754,977
Tennessee - 1.4%
Tennergy Corp., Revenue Bonds, Ser. A		4.00	9/1/2028	4,500,000	^a	4,492,170
Texas - 7.1%
Arlington Higher Education Finance Corp., Revenue Bonds, Refunding (Uplift Education) Ser. A		5.00	12/1/2046	1,100,000		1,119,235
Brazos Higher Education Authority Inc., Revenue Bonds, Ser. 1A		5.00	4/1/2027	1,210,000		1,283,448
Clifton Higher Education Finance Corp., Revenue Bonds (International Leadership of Texas Inc.) Ser. A		5.75	8/15/2045	1,500,000		1,539,171
Clifton Higher Education Finance Corp., Revenue Bonds (International Leadership of Texas Inc.) Ser. D		6.13	8/15/2048	3,950,000		4,098,983
Houston Airport System, Revenue Bonds, Refunding (United Airlines Inc.) Ser. A		6.50	7/15/2030	1,500,000		1,508,192
Mission Economic Development Corp., Revenue Bonds, Refunding (Natgasoline Project)		4.63	10/1/2031	2,000,000	^c	2,030,008
New Hope Cultural Education Facilities Finance Corp., Revenue Bonds, Refunding (Westminster Manor Project)		5.00	11/1/2040	2,070,000		2,116,663
New Hope Cultural Education Facilities Finance Corp., Revenue Bonds, Refunding (Westminster Project)		4.00	11/1/2055	1,250,000		1,045,005
Port Beaumont Navigation District, Revenue Bonds		3.00	1/1/2050	1,000,000	^c	651,717
San Antonio Education Facilities Corp., Revenue Bonds, Refunding (University of The Incarnate Word)		4.00	4/1/2051	1,750,000		1,498,797



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
Texas - 7.1% (continued)
Tarrant County Cultural Education Facilities Finance Corp., Revenue Bonds, Refunding (MRC Stevenson Oaks Project)		6.75	11/15/2051	1,000,000		982,353
Tender Option Bond Trust Receipts (Series 2022-XF1366), (Tarrant County Cultural Education Facilities Finance Corp., Revenue Bonds (Christus Health) Ser. A) Non-recourse, Underlying Coupon Rate (%) 5.00		0.01	7/1/2053	2,400,000	^c,e,f	2,522,933
Texas Private Activity Bond Surface Transportation Corp., Revenue Bonds (Blueridge Transportation Group LLC)		5.00	12/31/2055	1,000,000		1,009,908
Texas Private Activity Bond Surface Transportation Corp., Revenue Bonds (Blueridge Transportation Group LLC)		5.00	12/31/2050	1,000,000		1,010,517
					22,416,930
U.S. Related - 3.9%
Puerto Rico, GO, Ser. A		0.00	7/1/2024	96,481	^d	89,172
Puerto Rico, GO, Ser. A		0.00	7/1/2033	373,154	^d	212,361
Puerto Rico, GO, Ser. A1		4.00	7/1/2033	289,963		271,700
Puerto Rico, GO, Ser. A1		4.00	7/1/2035	260,638		239,645
Puerto Rico, GO, Ser. A1		4.00	7/1/2041	304,141		265,610
Puerto Rico, GO, Ser. A1		4.00	7/1/2037	223,696		200,453
Puerto Rico, GO, Ser. A1		4.00	7/1/2046	316,303		268,609
Puerto Rico, GO, Ser. A1		5.25	7/1/2023	161,919		164,370
Puerto Rico, GO, Ser. A1		5.38	7/1/2025	322,938		333,294
Puerto Rico, GO, Ser. A1		5.63	7/1/2027	320,013		339,599
Puerto Rico, GO, Ser. A1		5.63	7/1/2029	314,821		339,071
Puerto Rico, GO, Ser. A1		5.75	7/1/2031	305,783		335,464
Puerto Rico Highway & Transportation Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Corp.) Ser. L		5.25	7/1/2041	1,500,000		1,504,480
Puerto Rico Highway & Transportation Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. CC		5.25	7/1/2034	1,000,000		1,017,242
Puerto Rico Sales Tax Financing Corp., Revenue Bonds, Ser. A1		0.00	7/1/2033	4,031,000	^d	2,515,915

STATEMENT OF INVESTMENTS (continued)



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
U.S. Related - 3.9% (continued)
Puerto Rico Sales Tax Financing Corp., Revenue Bonds, Ser. A2		4.33	7/1/2040	4,344,000		4,227,884
					12,324,869
Utah - .6%
Utah Infrastructure Agency, Revenue Bonds, Refunding, Ser. A		5.00	10/15/2037	2,000,000		2,022,504
Virginia - 1.5%
Norfolk Redevelopment & Housing Authority, Revenue Bonds (Fort Norfolk Retirement Community Inc. Obligated Group) Ser. A		5.00	1/1/2049	1,000,000		903,815
Virginia College Building Authority, Revenue Bonds (Green Bond) (Marymount University Project)		5.00	7/1/2045	500,000	^c	502,781
Virginia College Building Authority, Revenue Bonds, Refunding (Marymount University Project) Ser. A		5.00	7/1/2045	1,000,000	^c	1,005,563
Virginia Small Business Financing Authority, Revenue Bonds (Covanta Project)		5.00	7/1/2038	750,000	^a,c	748,323
Virginia Small Business Financing Authority, Revenue Bonds (Transform 66 P3 Project)		5.00	12/31/2052	1,400,000		1,425,116
					4,585,598
Washington - 1.4%
Washington Housing Finance Commission, Revenue Bonds, Refunding (Presbyterian Retirement Communities Northwest Obligated Group) Ser. A		5.00	1/1/2051	1,120,000	^c	980,573
Washington Housing Finance Commission, Revenue Bonds, Refunding (Presbyterian Retirement Communities Northwest Obligated Group) Ser. A		5.00	1/1/2046	1,680,000	^c	1,499,344
Washington Housing Finance Commission, Revenue Bonds, Ser. A1		3.50	12/20/2035	1,964,244		1,791,975
					4,271,892
Wisconsin - 3.7%
Public Finance Authority, Revenue Bonds (Appalachian State University Project) (Insured; Assured Guaranty Municipal Corp.) Ser. A		4.00	7/1/2045	1,850,000		1,767,432



Description	Coupon Rate (%)		Maturity Date	Principal Amount ($)		Value ($)
Long-Term Municipal Investments - 101.3% (continued)
Wisconsin - 3.7% (continued)
Public Finance Authority, Revenue Bonds (Cone Health) Ser. A		5.00	10/1/2052	1,500,000		1,572,189
Public Finance Authority, Revenue Bonds (Roseman University of Heath Sciences)		5.00	4/1/2050	1,850,000	^c	1,828,091
Public Finance Authority, Revenue Bonds (Southminster Inc. Obligated Group)		5.00	10/1/2043	2,000,000	^c	1,859,519
Public Finance Authority, Revenue Bonds (WFCS Holdings LLC) Ser. A1		5.00	1/1/2055	2,000,000	^c	1,878,160
Public Finance Authority, Revenue Bonds (WFCS Portfolio Project) Ser. A1		5.00	1/1/2056	1,000,000	^c	936,930
Public Finance Authority, Revenue Bonds, Refunding (Mary's Woods At Marylhurst Obligated Group)		5.25	5/15/2037	625,000	^c	606,879
Wisconsin Health & Educational Facilities Authority, Revenue Bonds, Refunding (St. Camillus Health System Obligated Group)		5.00	11/1/2054	1,250,000		1,098,335
					11,547,535
Total Long-Term Municipal Investments (cost $346,259,355)				318,519,571
Total Investments (cost $347,302,546)				101.6%	319,438,879
Liabilities, Less Cash and Receivables				(1.6%)	(5,027,572)
Net Assets				100.0%	314,411,307

^a These 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.

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

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

^e The 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.

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

^g These 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.

STATEMENT OF INVESTMENTS (continued)


Portfolio Summary (Unaudited) ^†	Value (%)
Nursing Homes	15.6
General	14.3
Education	13.4
Development	10.2
Tobacco Settlement	8.9
Airport	7.7
Medical	5.9
Transportation	5.6
Water	3.8
Housing	3.0
General Obligation	2.8
School District	2.8
Power	2.6
Student Loan	2.4
Special Tax	1.1
Multifamily Housing	.9
Utilities	.3
Pollution	.2
Prerefunded	.1
	101.6

^† Based on net assets.

See notes to financial statements.



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.

STATEMENT OF ASSETS AND LIABILITIES

August 31, 2022



	Cost	Value
Assets ($):
Investments in securities—See Statement of Investments	347,302,546	319,438,879
Cash		13,045,846
Interest receivable		3,706,555
Receivable for shares of Common Stock subscribed		285,246
Prepaid expenses		38,978
		336,515,504
Liabilities ($):
Due to BNY Mellon Investment Adviser, Inc. and affiliates—Note 3(c)		173,708
Payable for inverse floater notes issued—Note 4		14,575,000
Payable for investment securities purchased		6,409,675
Payable for shares of Common Stock redeemed		793,334
Interest and expense payable related to inverse floater notes issued—Note 4		58,243
Directors’ fees and expenses payable		2,423
Other accrued expenses		91,814
		22,104,197
Net Assets ($)		314,411,307
Composition of Net Assets ($):
Paid-in capital		363,057,560
Total distributable earnings (loss)		(48,646,253)
Net Assets ($)		314,411,307


Net Asset Value Per Share	Class A	Class C	Class I	Class Y	Class Z
Net Assets ($)	133,315,728	10,242,124	127,175,794	2,211,976	41,465,685
Shares Outstanding	11,996,449	922,029	11,463,474	199,167	3,738,196
Net Asset Value Per Share ($)	11.11	11.11	11.09	11.11	11.09

See notes to financial statements.

STATEMENT OF OPERATIONS

Year Ended August 31, 2022




Investment Income ($):
Interest Income					13,754,988
Expenses:
Management fee—Note 3(a)					1,633,179
Shareholder servicing costs—Note 3(c)					528,249
Distribution/Service Plan fees—Note 3(b)					154,886
Interest and expense related to inverse floater notes issued—Note 4					149,378
Professional fees					95,436
Registration fees					90,461
Directors’ fees and expenses—Note 3(d)					31,086
Chief Compliance Officer fees—Note 3(c)					17,169
Prospectus and shareholders’ reports					14,810
Custodian fees—Note 3(c)					7,267
Loan commitment fees—Note 2					4,313
Miscellaneous					37,072
Total Expenses					2,763,306
Net Investment Income					10,991,682
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($):
Net realized gain (loss) on investments					(5,867,172)
Net change in unrealized appreciation (depreciation) on investments					(59,956,790)
Net Realized and Unrealized Gain (Loss) on Investments					(65,823,962)
Net (Decrease) in Net Assets Resulting from Operations					(54,832,280)

See notes to financial statements.

STATEMENT OF CHANGES IN NET ASSETS


	Year Ended August 31,
	2022	2021
Operations ($):
Net investment income	10,991,682	10,091,466
Net realized gain (loss) on investments	(5,867,172)	583,434
Net change in unrealized appreciation (depreciation) on investments	(59,956,790)	19,179,852
Net Increase (Decrease) in Net Assets Resulting from Operations	(54,832,280)	29,854,752
Distributions ($):
Distributions to shareholders:
Class A	(4,450,389)	(3,749,883)
Class C	(273,950)	(353,002)
Class I	(4,713,906)	(4,214,215)
Class Y	(62,038)	(25,580)
Class Z	(1,450,617)	(1,706,723)
Total Distributions	(10,950,900)	(10,049,403)
Capital Stock Transactions ($):
Net proceeds from shares sold:
Class A	61,835,052	71,197,241
Class C	1,319,558	1,749,610
Class I	110,314,255	80,900,615
Class Y	2,167,735	329,666
Class Z	2,548,899	1,241,476
Distributions reinvested:
Class A	4,069,794	3,164,702
Class C	273,664	341,261
Class I	4,596,838	4,075,346
Class Y	58,306	20,716
Class Z	1,137,880	1,360,777
Cost of shares redeemed:
Class A	(56,469,318)	(39,447,154)
Class C	(3,547,677)	(4,789,823)
Class I	(127,854,319)	(37,223,509)
Class Y	(427,035)	(270,030)
Class Z	(7,743,852)	(3,122,615)
Increase (Decrease) in Net Assets from Capital Stock Transactions	(7,720,220)	79,528,279
Total Increase (Decrease) in Net Assets	(73,503,400)	99,333,628
Net Assets ($):
Beginning of Period	387,914,707	288,581,079
End of Period	314,411,307	387,914,707


		Year Ended August 31,
		2022	2021
Capital Share Transactions (Shares):
Class A
Shares sold		4,982,143	5,485,351
Shares issued for distributions reinvested		337,605	245,915
Shares redeemed		(4,711,064)	(3,059,729)
Net Increase (Decrease) in Shares Outstanding		608,684	2,671,537
Class C
Shares sold		102,666	134,341
Shares issued for distributions reinvested		22,667	26,650
Shares redeemed		(296,093)	(372,855)
Net Increase (Decrease) in Shares Outstanding		(170,760)	(211,864)
Class I^a
Shares sold		9,306,044	6,241,790
Shares issued for distributions reinvested		380,285	317,336
Shares redeemed		(10,966,126)	(2,923,824)
Net Increase (Decrease) in Shares Outstanding		(1,279,797)	3,635,302
Class Y^a
Shares sold		168,508	25,843
Shares issued for distributions reinvested		4,953	1,611
Shares redeemed		(37,576)	(21,416)
Net Increase (Decrease) in Shares Outstanding		135,885	6,038
Class Z
Shares sold		220,379	96,656
Shares issued for distributions reinvested		94,188	106,198
Shares redeemed		(650,275)	(245,279)
Net Increase (Decrease) in Shares Outstanding		(335,708)	(42,425)

^a	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.

FINANCIAL HIGHLIGHTS




Class A Shares	Year Ended August 31,
	2022	2021	2020	2019	2018
Per Share Data ($):
Net asset value, beginning of period	13.23	12.40	12.92	12.49	12.25
Investment Operations:
Net investment income^a	.36	.40	.41	.47	.47
Net realized and unrealized gain (loss) on investments	(2.12)	.83	(.51)	.43	.26
Total from Investment Operations	(1.76)	1.23	(.10)	.90	.73
Distributions:
Dividends from net investment income	(.36)	(.40)	(.42)	(.46)	(.47)
Dividends from net realized gain on investments	-	-	-	(.01)	(.02)
Total Distributions	(.36)	(.40)	(.42)	(.47)	(.49)
Net asset value, end of period	11.11	13.23	12.40	12.92	12.49
Total Return (%)^b	(13.48)	10.07	(.72)	7.44	6.10
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.85	.85	.92	.86	.95
Ratio of net expenses to average net assets	.85	.85	.92	.86	.87
Ratio of interest and expense related to inverse floater notes issued to average net assets	.04	.03	.09	.01	.02
Ratio of net investment income to average net assets	2.94	3.10	3.31	3.80	3.83
Portfolio Turnover Rate	21.25	10.03	69.21	39.68	34.62
Net Assets, end of period ($ x 1,000)	133,316	150,609	108,054	110,928	85,904

^a Based on average shares outstanding.

^b Exclusive of sales charge.

See notes to financial statements.




Class C Shares	Year Ended August 31,
	2022	2021	2020	2019	2018
Per Share Data ($):
Net asset value, beginning of period	13.22	12.39	12.92	12.49	12.25
Investment Operations:
Net investment income^a	.27	.30	.32	.38	.37
Net realized and unrealized gain (loss) on investments	(2.11)	.83	(.53)	.43	.27
Total from Investment Operations	(1.84)	1.13	(.21)	.81	.64
Distributions:
Dividends from net investment income	(.27)	(.30)	(.32)	(.37)	(.38)
Dividends from net realized gain on investments	-	-	-	(.01)	(.02)
Total Distributions	(.27)	(.30)	(.32)	(.38)	(.40)
Net asset value, end of period	11.11	13.22	12.39	12.92	12.49
Total Return (%)^b	(14.09)	9.23	(1.55)	6.62	5.31
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	1.63	1.62	1.68	1.63	1.71
Ratio of net expenses to average net assets	1.63	1.62	1.68	1.62	1.63
Ratio of interest and expense related to inverse floater notes issued to average net assets	.04	.03	.09	.01	.02
Ratio of net investment income to average net assets	2.17	2.33	2.55	3.05	3.06
Portfolio Turnover Rate	21.25	10.03	69.21	39.68	34.62
Net Assets, end of period ($ x 1,000)	10,242	14,447	16,167	18,748	16,943

^a Based on average shares outstanding.

^b Exclusive of sales charge.

See notes to financial statements.

FINANCIAL HIGHLIGHTS (continued)




Class I Shares	Year Ended August 31,
Class I Shares	2022	2021	2020	2019	2018
Per Share Data ($):
Net asset value, beginning of period	13.20	12.38	12.90	12.47	12.23
Investment Operations:
Net investment income^a	.39	.43	.43	.50	.49
Net realized and unrealized gain (loss) on investments	(2.11)	.82	(.50)	.43	.27
Total from Investment Operations	(1.72)	1.25	(.07)	.93	.76
Distributions:
Dividends from net investment income	(.39)	(.43)	(.45)	(.49)	(.50)
Dividends from net realized gain on investments	-	-	-	(.01)	(.02)
Total Distributions	(.39)	(.43)	(.45)	(.50)	(.52)
Net asset value, end of period	11.09	13.20	12.38	12.90	12.47
Total Return (%)	(13.24)	10.25	(.49)	7.71	6.37
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.61	.62	.68	.62	.72
Ratio of net expenses to average net assets	.61	.62	.68	.62	.63
Ratio of interest and expense related to inverse floater notes issued to average net assets	.04	.03	.09	.01	.02
Ratio of net investment income to average net assets	3.18	3.33	3.52	4.04	4.07
Portfolio Turnover Rate	21.25	10.03	69.21	39.68	34.62
Net Assets, end of period ($ x 1,000)	127,176	168,242	112,713	128,139	89,203

^a Based on average shares outstanding.

See notes to financial statements.




Class Y Shares	Year Ended August 31,
Class Y Shares	2022	2021	2020	2019	2018
Per Share Data ($):
Net asset value, beginning of period	13.22	12.39	12.91	12.48	12.24
Investment Operations:
Net investment income^a	.39	.43	.45	.51	.50
Net realized and unrealized gain (loss) on investments	(2.11)	.83	(.52)	.42	.26
Total from Investment Operations	(1.72)	1.26	(.07)	.93	.76
Distributions:
Dividends from net investment income	(.39)	(.43)	(.45)	(.49)	(.50)
Dividends from net realized gain on investments	-	-	-	(.01)	(.02)
Total Distributions	(.39)	(.43)	(.45)	(.50)	(.52)
Net asset value, end of period	11.11	13.22	12.39	12.91	12.48
Total Return (%)	(13.20)	10.35	(.47)	7.69	6.37
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.57	.60	.67	.59	.68
Ratio of net expenses to average net assets	.57	.60	.67	.59	.63
Ratio of interest and expense related to inverse floater notes issued to average net assets	.04	.03	.09	.01	.02
Ratio of net investment income to average net assets	3.20	3.35	3.76	4.10	4.06
Portfolio Turnover Rate	21.25	10.03	69.21	39.68	34.62
Net Assets, end of period ($ x 1,000)	2,212	837	709	273	1,280

^a Based on average shares outstanding.

See notes to financial statements.

FINANCIAL HIGHLIGHTS (continued)




Class Z Shares	Year Ended August 31,
Class Z Shares	2022	2021	2020	2019	2018
Per Share Data ($):
Net asset value, beginning of period	13.20	12.37	12.90	12.47	12.23
Investment Operations:
Net investment income^a	.38	.42	.43	.49	.49
Net realized and unrealized gain (loss) on investments	(2.11)	.83	(.52)	.43	.26
Total from Investment Operations	(1.73)	1.25	(.09)	.92	.75
Distributions:
Dividends from net investment income	(.38)	(.42)	(.44)	(.48)	(.49)
Dividends from net realized gain on investments	-	-	-	(.01)	(.02)
Total Distributions	(.38)	(.42)	(.44)	(.49)	(.51)
Net asset value, end of period	11.09	13.20	12.37	12.90	12.47
Total Return (%)	(13.33)	10.25	(.65)	7.59	6.25
Ratios/Supplemental Data (%):
Ratio of total expenses to average net assets	.73	.70	.76	.71	.80
Ratio of net expenses to average net assets	.73	.70	.76	.71	.73
Ratio of interest and expense related to inverse floater notes issued to average net assets	.04	.03	.09	.01	.02
Ratio of net investment income to average net assets	3.07	3.25	3.49	3.96	3.96
Portfolio Turnover Rate	21.25	10.03	69.21	39.68	34.62
Net Assets, end of period ($ x 1,000)	41,466	53,781	50,938	53,498	52,576

^a Based on average shares outstanding.

See notes to financial statements.

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. Insight North America LLC (the “Sub-Adviser”) a wholly-owned subsidiary of BNY Mellon and an affiliate of the Adviser, serves as the fund’s sub-adviser.

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 $250,000 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 BNY Mellon and its 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 Services 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

NOTES TO FINANCIAL STATEMENTS (continued)

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.

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:

NOTES TO FINANCIAL STATEMENTS (continued)

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, 2022 in valuing the fund’s investments:


	Level 1-Unadjusted Quoted Prices	Level 2- Other Significant Observable Inputs	Level 3-Significant Unobservable Inputs	Total
Assets ($)
Investments in Securities:^†
Collateralized Municipal-Backed Securities	-	919,308	-	919,308
Municipal Securities	-	318,519,571	-	318,519,571
Liabilities ($)
Other Financial Instruments:
Inverse Floater Notes^††	-	(14,575,000)	-	(14,575,000)

^† 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.

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 world-wide. 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. 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. The COVID-19 pandemic has had, and any other outbreak of an infectious disease or other serious public health concern could have, a significant negative impact on economic and market conditions and could trigger a prolonged period of global economic slowdown. 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.

NOTES TO FINANCIAL STATEMENTS (continued)

Each tax year in the four-year period ended August 31, 2022 remains subject to examination by the Internal Revenue Service and state taxing authorities.

At August 31, 2022, the components of accumulated earnings on a tax basis were as follows: undistributed tax-exempt income $409,587, accumulated capital losses $20,492,101 and unrealized depreciation $28,563,739.

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 net realized capital gains, if any, realized subsequent to August 31, 2022. The fund has $11,007,892 of short-term capital losses and $9,484,209 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 years ended August 31, 2022 and August 31, 2021 were as follows: tax-exempt income $10,945,648 and $10,049,403, and ordinary income $5,252 and $0, respectively.

NOTE 2—Bank Lines of Credit:

NOTE 3—Management Fee, Sub-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 has contractually agreed, from September 1, 2021 through December 31, 2022, 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) 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, 2022, the Adviser may terminate this expense limitation at any time. During the period ended August 31, 2022, there were no reduction in expenses pursuant to the undertaking.

Pursuant to a sub-investment advisory agreement between the Adviser and the Sub-Adviser, the Adviser pays the Sub-Adviser 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, 2022, the Distributor retained $573 from commissions earned on sales of the fund’s Class A shares and $5,920 and $780 from CDSC fees on redemptions of the fund’s Class A and Class C shares, respectively.

NOTES TO FINANCIAL STATEMENTS (continued)

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, 2022, Class Z shares were charged $59,273 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, 2022, Class A and Class C shares were charged $378,037 and $31,871, respectively, pursuant to the Shareholder Services Plan.

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 Custodian, 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, 2022, the fund was charged $559 pursuant to the agreement, which is included in Shareholder servicing costs 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 fee of $121,486, Distribution Plan fees of $10,220, Shareholder Services Plan fees of $31,241, Custodian fees of $2,665, Chief Compliance Officer fees of $2,539 and Transfer Agent fees of $5,557.

(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:

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

NOTES TO FINANCIAL STATEMENTS (continued)

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, 2022 was approximately $15,748,973, with a related weighted average annualized interest rate of .95%.

At August 31, 2022, the cost of investments for federal income tax purposes was $333,427,618; accordingly, accumulated net unrealized depreciation on investments was $28,563,739, consisting of $4,218,183 gross unrealized appreciation and $32,781,922 gross unrealized depreciation.

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, 2022, 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, 2022, 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

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 24, 2022

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, 2022. as “exempt-interest dividends” (not generally subject to regular federal income tax), except $5,252 that is being designated as an ordinary income distribution for reporting purposes. 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 2022 calendar year on Form 1099-DIV, which will be mailed in early 2023.

LIQUIDITY RISK MANAGEMENT PROGRAM (Unaudited)

Assessment of Program

BOARD MEMBERS INFORMATION (Unaudited)

Independent Board Members

Joseph S. DiMartino (78)

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: 94

———————

Joni Evans (80)

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: 17

———————

Joan Gulley (74)

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: 40

———————

Alan H. Howard (62)

Board Member (2018)

Principal Occupation During Past 5 Years:

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

· 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: 17

———————

Robin A. Melvin (58)

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 quantity and 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: 72

———————

Burton N. Wallack (71)

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: 17

———————

BOARD MEMBERS INFORMATION (Unaudited) (continued)

Benaree Pratt Wiley (76)

Board Member (2016)

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: 61

———————

Gordon J. Davis (81)

Advisory Board Member (2021)

Principal Occupation During Past 5 Years:

· Venable LLP, a law firm Partner (2012-Present)

Other Public Company Board Memberships During Past 5 Years:

· BNY Mellon Family of Funds (53 funds), Board Member (1995-August 2021)

No. of Portfolios for which Advisory Board Member Serves: 39

———————

OFFICERS OF THE FUND (Unaudited)

DAVID DIPETRILLO, President since January 2021.

JAMES WINDELS, Treasurer since November 2001.

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

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

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

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

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

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

OFFICERS OF THE FUND (Unaudited) (continued)

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

DANIEL GOLDSTEIN, Vice President since March 2022.

JOSEPH MARTELLA, Vice President since March 2022.

GAVIN C. REILLY, Assistant Treasurer since December 2005.

ROBERT SALVIOLO, Assistant Treasurer since July 2007.

ROBERT SVAGNA, Assistant Treasurer since August 2005.

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

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

This page intentionally left blank.

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 to info@bnymellon.com

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


© 2022 BNY Mellon Securities Corporation 6165AR0822

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 $70,988 in 2021and $72,408 in 2022.

(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 $21,166 in 2021 and $33,888 in 2022. 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 2021 and $0 in 2022.

(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 $9,408 in 2021 and $6,685 in 2022. 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 were $0 in 2021 and $16,315 in 2022.

(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 $1,499 in 2021 and $3,149 in 2022. 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 2021 and $0 in 2022.

(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 were $2,692,122 in 2021 and $2,418,678 in 2022.

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.

(i)

Not applicable.

(j) Not applicable.

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 J. DiPetrillo

         David J. DiPetrillo

         President (Principal Executive Officer)

Date: November 14, 2022

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 J. DiPetrillo

         David J. DiPetrillo

         President (Principal Executive Officer)

Date: November 14, 2022

By: /s/ James Windels

         James Windels

        Treasurer (Principal Financial Officer)

Date: November 14, 2022

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)