UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-07136
Name of Fund: MuniYield Pennsylvania Insured Fund
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, MuniYield Pennsylvania Insured Fund, 800 Scudders Mill Road,
Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton,
NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 10/31/05
Date of reporting period: 11/01/04 - 04/30/05
Item 1 - Report to Stockholders
MuniYield Florida Insured Fund
MuniYield New Jersey Insured Fund, Inc.
MuniYield Pennsylvania Insured Fund
Semi-Annual Reports
April 30, 2005
(BULL LOGO) Merrill Lynch Investment Managers
www.mlim.ml.com
Mercury Advisors
A Division of Merrill Lynch Investment Managers
www.mercury.ml.com
These reports, including the financial information herein, are
transmitted to shareholders of MuniYield Florida Insured Fund, MuniYield
New Jersey Insured Fund, Inc. and MuniYield Pennsylvania Insured Fund for
their information. This is not a prospectus. Past performance results
shown in these reports should not be considered a representation of future
performance. The Funds have leveraged their Common Shares or Stock and
intend to remain leveraged by issuing Preferred Shares or Stock to provide
the Common Shareholders or Common Stock Shareholders with potentially
higher rates of return. Leverage creates risks for Common Shareholders or
Common Stock Shareholders, including the likelihood of greater volatility
of net asset value and market price of the Common Shares or Stock, and the
risk that fluctuations in the short-term dividend rates of the Preferred
Shares or Stock may affect the yield to Common Shareholders or Common Stock
Shareholders. Statements and other information herein are as dated and
are subject to change.
A description of the policies and procedures that the Funds use to determine
how to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free 1-800-MER-FUND (1-800-637-3863);
(2) at www.mutualfunds.ml.com; and (3) on the Securities and Exchange
Commission's Web site at http://www.sec.gov. Information about how the
Funds vote proxies relating to securities held in the Funds' portfolios
during the most recent 12-month period ended June 30 is available (1) at
www.mutualfunds.ml.com; and (2) on the Securities and Exchange Commission's
Web site at http://www.sec.gov.
MuniYield Florida Insured Fund
MuniYield New Jersey Insured Fund, Inc.
MuniYield Pennsylvania Insured Fund
Box 9011
Princeton, NJ 08543-9011
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MuniYield Florida Insured Fund
MuniYield New Jersey Insured Fund, Inc.
MuniYield Pennsylvania Insured Fund
The Benefits and Risks of Leveraging
The Funds utilize leveraging to seek to enhance the yield and net asset
value of their Common Shares or Common Stock. However, these objectives
cannot be achieved in all interest rate environments. To leverage,
the Funds issue Preferred Shares or Stock, which pays dividends at
prevailing short-term interest rates, and invests the proceeds in long-
term municipal bonds. The interest earned on these investments, net of
dividends to Preferred Shares or Stock, is paid to Common Shareholders or
Common Stock shareholders in the form of dividends, and the value of
these portfolio holdings is reflected in the per share net asset value of
the Fund's Common Shares or Stock. However, in order to benefit Common
Shareholders or Common Stock shareholders, the yield curve must be
positively sloped; that is, short-term interest rates must be lower than
long-term interest rates. At the same time, a period of generally
declining interest rates will benefit Common Shareholders or Common Stock
shareholders. If either of these conditions change, then the risks of
leveraging will begin to outweigh the benefits.
To illustrate these concepts, assume a fund's Common Shares or Stock
capitalization of $100 million and the issuance of Preferred Shares
or Stock for an additional $50 million, creating a total value of
$150 million available for investment in long-term municipal bonds. If
prevailing short-term interest rates are approximately 3% and long-term
interest rates are approximately 6%, the yield curve has a strongly
positive slope. The fund pays dividends on the $50 million of Preferred
Shares or Stock based on the lower short-term interest rates. At the same
time, the fund's total portfolio of $150 million earns the income based
on long-term interest rates.
In this case, the dividends paid to Preferred Shareholders or Common
Stock shareholders are significantly lower than the income earned on the
fund's long-term investments, and therefore the Common Shareholders or
Common Stock shareholders are the beneficiaries of the incremental yield.
However, if short-term interest rates rise, narrowing the differential
between short-term and long-term interest rates, the incremental yield
pickup on the Common Shares or Stock will be reduced or eliminated
completely. At the same time, the market value of the fund's Common
Shares or Stock (that is, its price as listed on the New York Stock
Exchange) may, as a result, decline. Furthermore, if long-term interest
rates rise, the Common Shares' or Stock's net asset value will reflect
the full decline in the price of the portfolio's investments, since the
value of the fund's Preferred Shares or Stock does not fluctuate. In
addition to the decline in net asset value, the market value of the
fund's Common Shares or Stock may also decline.
As a part of their investment strategy, the Funds may invest in certain
securities whose potential income return is inversely related to changes
in a floating interest rate ("inverse floaters"). In general, income on
inverse floaters will decrease when short-term interest rates increase
and increase when short-term interest rates decrease. Investments in
inverse floaters may be characterized as derivative securities and may
subject the Funds to the risks of reduced or eliminated interest payments
and losses of invested principal. In addition, inverse floaters have the
effect of providing investment leverage and, as a result, the market
value of such securities will generally be more volatile than that of
fixed-rate, tax-exempt securities. To the extent the Funds invest in
inverse floaters, the market value of each Fund's portfolio and the net
asset value of each Fund's shares may also be more volatile than if the
Funds did not invest in these securities. As of April 30, 2005, the
percentages of MuniYield Florida Insured Fund's, MuniYield New Jersey
Insured Fund, Inc.'s and MuniYield Pennsylvania Insured Fund's total net
assets invested in inverse floaters were 5.49%, 9.32% and 12.53%,
respectively, before the deduction of Preferred Shares or Stock.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
A Letter From the President
Dear Shareholder
Financial markets faced a number of crosscurrents over the past several
months, but most major benchmarks managed to post positive returns for
the annual and semi-annual reporting periods ended April 30, 2005:
Total Returns as of April 30, 2005 6-month 12-month
U.S. equities (Standard & Poor's 500 Index) +3.28% + 6.34%
Small-cap U.S. equities (Russell 2000 Index) -0.15% + 4.71%
International equities (MSCI Europe Australasia Far East Index) +8.71% +14.95%
Fixed income (Lehman Brothers Aggregate Bond Index) +0.98% + 5.26%
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +1.93% + 6.81%
High yield bonds (Credit Suisse First Boston High Yield Index) +0.65% + 6.92%
After expanding at an annualized rate of 4.4% in 2004, U.S. gross
domestic product growth for the first quarter of 2005 came in at an
estimated 3.1% (although that figure was later revised upward to 3.5%).
Nevertheless, the Federal Reserve Board continued increasing interest
rates at a measured pace to combat emergent inflation. The most recent
hike came on May 3, and brought the federal funds rate to 3%. Recently,
signs of inflation have taken the form of rising business costs and
increasing consumer prices, particularly in the areas of gasoline,
healthcare, housing and education.
U.S. equities ended 2004 in a strong rally, but stumbled into negative
territory in 2005. The market weakness was largely fueled by the
potential for slowing economic and corporate earnings growth, renewed
energy price concerns and a lack of investor conviction. On the positive
side, certain sectors of the market have been performing well
(particularly energy) and corporate transactions, such as mergers and
acquisitions, stock buy-backs and dividend payouts, have all increased.
International equities, especially in Asia, have benefited from higher
economic growth rates.
In the bond market, we witnessed a yield curve flattening trend over the
past several months as short-term yields increased and longer-term
interest rates remained more stable or fell. At the end of April 2005,
the two-year Treasury note yielded 3.66% and the 10-year Treasury note
yielded 4.21%, a difference of 55 basis points (.55%). This compared
to a spread of 149 basis points six months earlier and 222 basis points
12 months ago.
Looking ahead, the environment is likely to be a challenging one for
investors. With this in mind, we encourage you to meet with your
financial advisor to review your goals and asset allocation and to
rebalance your portfolio, as necessary, to ensure it remains aligned with
your objectives and risk tolerance. As always, we thank you for trusting
Merrill Lynch Investment Managers with your investment assets, and we
look forward to serving you in the months and years ahead.
Sincerely,
(Robert C. Doll, Jr.)
Robert C. Doll, Jr.
President and Director/Trustee
SEMI-ANNUAL REPORTS, APRIL 30, 2005
A Discussion With Your Funds' Portfolio Managers
We continued to focus our investment further out on the municipal yield
curve, a strategy that proved constructive as the curve flattened and
long-term bonds outperformed short-term issues.
Describe the recent market environment relative to municipal bonds.
Amid significant volatility, long-term bond yields moved lower over the
past six months as shorter-term yields increased. For all of 2004, real
gross domestic product (GDP) grew at an annualized rate of 4.4%, well
ahead of 2003's annual rate of 3%. An advanced estimate of first quarter
2005 GDP growth came in at an unexpectedly low 3.1%, although that figure
was later revised upward to 3.5%.
Nevertheless, it appeared that continued economic improvements were
generally disregarded as investors focused on inflationary trends,
currency-related demand for long-term U.S. securities, and interest rate
action on the part of the Federal Reserve Board (the Fed). Over the past
six months, 30-year Treasury bond yields declined 28 basis points (.28%)
to 4.51%, while 10-year Treasury note yields rose 16 basis points to
4.21%. The Fed, in the meantime, continued to raise short-term interest
rates at each of its meetings throughout the period, and most recently
increased the federal funds rate from 2.75% to 3% on May 3. As short-term
interest rates rose while longer-term interest rates fell, the yield
curve continued to flatten.
Tax-exempt bond yields exhibited a similar pattern during the period.
Yields on 30-year revenue bonds, as measured by the Bond Buyer Revenue
Bond Index, fell 14 basis points to 4.83%. According to Municipal Market
Data, yields on AAA-rated issues maturing in 30 years declined 23 basis
points to 4.37%, while AAA-rated bonds maturing in 10 years saw their
yields rise 17 basis points to 3.57%.
During the past six months, more than $186 billion in tax-exempt bonds
was underwritten, an increase of 7.5% versus the same period a year
earlier. Issuance so far in 2005 has been boosted by a 32% increase in
refunding issues as municipalities have sought to refinance existing
higher-coupon debt. These refunding issues have been heavily weighted in
the 10-year - 20-year maturity range to lower the overall interest costs.
This concentration has put pressure on intermediate tax-exempt bond
yields while supporting longer-term bond prices.
Investor demand for municipal product remained generally positive during
the period. Investment Company Institute statistics indicate that, year-
to-date through March 31, 2005, net new cash flows into long-term
municipal bond funds exceeded $1.3 billion. This represented a
significant improvement from the $516 million seen during the same period
in 2004. However, AMG Data Services reports that weekly figures for the
month of April have shown a modest reversal in the positive flows seen in
the first three months of the year.
MuniYield Florida Insured Fund
Describe conditions in the State of Florida.
During the past several months, ratings agency Moody's increased
Florida's credit rating from AA2 to AA1, and Standard & Poor's increased
its rating from AA+ to AAA. At period-end, Fitch maintained a rating of
AA. The favorable ratings are based on the state's solid economic and
financial performance, in addition to moderate debt and a proactive
government that responds to economic downturns faster than other states.
Last year's hurricane season had little impact on the state's finances.
Florida's continued economic strength is bolstered by robust population
growth, which is attributed to its attractive physical environment and
favorable business climate. Although the growth in population has put a
strain on services such as education, transportation and healthcare, it
also has allowed the state to recover more quickly from sub par economic
trends.
Currently, the state's revenues are higher than budgeted and expenditures
remain under control due to prudent fiscal oversight. The fiscal year 2005
budget was brought into balance through tight expenditure controls,
including outsourcing work and requiring local governments to pick up
costs historically incurred by the state. To pay for these additional
expenses, municipalities imposed increases to property taxes and/or local
sales taxes through voter initiatives. Given the government's concerns
over the high healthcare costs facing the state - roughly $15 billion or
26% in the upcoming budget - Governor Jeb Bush has proposed a partially
private health insurance plan. Florida continues to maintain sound and
solid fund balances with consistent General Fund operations. In addition,
the state has a working Capital Reserve Fund and a Budget Stabilization
Fund in excess of $1.8 billion.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
How did the Fund perform during the period?
For the six-month period ended April 30, 2005, the Common Shares of
MuniYield Florida Insured Fund had net annualized yields of 6.02% and
6.24%, based on a period-end per share net asset value of $15.17 and a
per share market price of $14.63, respectively, and $.453 per share
income dividends. Over the same period, the total investment return on
the Fund's Common Shares was +2.80%, based on a change in per share net
asset value from $15.22 to $15.17, and assuming reinvestment of all
distributions.
The Fund's return, based on net asset value, lagged the +3.23% average
return of the Lipper Florida Municipal Debt Funds category for the
six-month period. (Funds in this Lipper category limit their investment
to securities exempt from taxation in Florida or a city in Florida.)
In the first three months of the period, we increased the Fund's use of
leverage by issuing additional Auction Market Preferred Shares (AMPS).
Although AMPS issuance comes at a cost and detracted from relative
performance early in the period, we believe the increased accrual
generated from the additional leverage will benefit Fund performance in
the months ahead. Also detracting from relative performance was the fact
that the Fund has more limited investment parameters than many of its
Lipper peers. This prohibited us from taking fuller advantage of the
spread compression trend that benefited lower-quality issues over the
past several months. Overall, however, the Fund continued to provide a
competitive yield and positive total return while investing in a
portfolio consisting primarily of high-quality, insured bonds.
For a description of the Fund's total investment return based on a change
in the per share market value of the Fund's Common Shares (as measured by
the trading price of the Fund's shares on the New York Stock Exchange),
and assuming reinvestment of dividends, please refer to the Financial
Highlights section of this report. As a closed-end fund, the Fund's
shares may trade in the secondary market at a premium or discount to the
Fund's net asset value. As a result, total investment returns based on
changes in the market value of the Fund's Common Shares can vary
significantly from total investment return based on changes in the Fund's
net asset value.
What changes were made to the portfolio during the period?
We did not make any material changes to our strategy or to the
portfolio's structure over the past six months. Although the market was
quite volatile, ultimately, it moved very little from where we started
the period. We continued to focus on increasing the income provided to
shareholders and muting the Fund's net asset value volatility.
To that end, we sought to sell bonds in the 10-year - 15-year maturity
range, although this proved more challenging in recent months as the
yield curve flattened and bonds in the intermediate range began to
cheapen relative to longer-dated securities. In making new purchases, we
focused on premium-coupon bonds in the 20-year - 30-year maturity range.
Efforts on this front also were somewhat limited, as few new issues met
our desired investment characteristics. While issuance of Florida
municipal bonds increased 29% versus the same six-month period a year
ago, the majority of the new issues offered maturities of only 15 years - 20
years and yields below 5%. We were not inclined to give up bonds booked in
the portfolio at higher yields in order to take advantage of the new-issue
calendar.
For the six-month period ended April 30, 2005, the Fund's AMPS had an
average yield of 1.58% for Series A and 1.43% for Series B. At this point
in the Fed's monetary tightening cycle, interest rate increases are
having a material impact on the Fund's borrowing costs. The Fed raised
the short-term interest rate target 100 basis points during the six-month
period. Despite the recent Fed interest rate increases, the tax-exempt
yield curve has remained relatively steep and has continued to generate
an income benefit to the holders of Common Shares from the leveraging of
Preferred Shares. However, should the spread between short-term and long-
term interest rates narrow, the benefits of leverage will decline and, as
a result, reduce the yield on the Fund's Common Shares. At the end of the
period, the Fund's leverage amount, due to AMPS, was 35.99% of total net
assets. (For a complete explanation of the benefits and risks of
leveraging, see page 2 of
this report to shareholders.)
SEMI-ANNUAL REPORTS, APRIL 30, 2005
A Discussion With Your Funds' Portfolio Managers (continued)
How would you characterize the Fund's position at the close of the
period?
We maintained a slightly defensive market posture at the close of the
period. The Fed is expected to continue its monetary tightening program,
which should eventually prompt long-term market rates to follow short-
term rates higher. We believe our defensive stance should ready the Fund
for relative outperformance under these circumstances.
As long as the municipal yield curve remains fairly steep, we will
continue in our efforts to sell the intermediate part of the curve and
use periods of volatility to pursue higher-coupon bonds whenever they are
attractively priced. We believe this strategy has served the Fund well
against the prevailing market and economic backdrop.
MuniYield New Jersey Insured Fund, Inc.
Describe conditions in the State of New Jersey.
New Jersey has remained active in the debt market, reflecting the state's
efforts to manage its fiscal challenges.
Revenue collections for the first seven months of fiscal year 2005 (which
ends June 30, 2005) fell short by $204 million. However, income tax
revenue increased by 19.9% and sales tax by 4.2%, while corporate
business tax decreased by 7.4%. On March 1, Acting Governor Richard Codey
submitted his fiscal year 2006 budget recommendations. He proposed a
budget of $27.4 billion, which was 2.2% less than the 2005 budget and
relies much less on the use of one-time revenues. Proposed spending
reductions include, among other things, $1.2 billion from eliminating and
reducing New Jersey's property tax rebates for at least one year, and
savings of approximately $600 million from reductions in government
spending, including 500 job cuts. Further savings would be realized from
freezing most direct state aid to municipalities and school districts at
current levels.
On the revenue side, the budget proposal includes raising $275 million by
extending the state's 6% sales tax to some goods and services that are
currently tax-exempt, $500 million from asset sales, and $150 million from
installing video slot machines at the Meadowlands. The budget proposal
received positive responses from credit rating agencies, prompting Moody's
and Standard & Poor's to confirm their Aa3 and AA- ratings, respectively,
on the state's debt.
New Jersey's unemployment rate is improving, according to U.S. Department
of Labor Statistics. In February 2005, the state's unemployment rate was
4.4%, down from 5.4% in February 2004.
How did the Fund perform during the period?
For the six-month period ended April 30, 2005, the Common Stock of
MuniYield New Jersey Insured Fund, Inc. had net annualized yields
of 6.07% and 6.33%, based on a period-end per share net asset value
of $15.56 and a per share market price of $14.92, respectively, and $.468
per share income dividends. Over the same period, the total investment
return on the Fund's Common Stock was +3.80%, based on a change in per
share net asset value from $15.46 to $15.56, and assuming reinvestment of
all distributions.
While the Fund provided a highly competitive yield, its total return,
based on net asset value, trailed the +4.25% average return of the Lipper
New Jersey Municipal Debt Funds category for the six-month period. (Funds
in this Lipper category limit their investment to those securities exempt
from taxation in New Jersey or a city in New Jersey.)
Several factors contributed to Fund performance. Most notable was our
yield curve positioning, which was designed to capitalize on what we
expected would be a flattening trend. We moved a portion of bonds in the
10-year - 15-year maturity range further out on the curve to the 20-year -
25-year area. Our strategy paid off, as the yield curve did flatten
and shorter-term bonds significantly lagged longer-term issues. Also
contributing to performance were our positions in zero-coupon, or capital
appreciation, bonds, as well as the advance refunding of a portion of the
Fund's holdings. We also were able to generate some incremental return
through hedging strategies, employing both the swap and futures markets.
Lastly, even though roughly 85% of the portfolio is invested in AAA-rated
insured paper, we do have the capability to invest a portion of assets in
lower-rated investment grade issues. To the extent that we did, the Fund
benefited from the incremental yield generated by those investments as
well as the ongoing compression in credit spreads that benefited these
lower-quality issues.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Detracting from relative performance was, primarily, the fact that the
Fund has more limited investment parameters than many of its peers. This
prohibited us from taking fuller advantage of the spread compression
trend. New Jersey municipal debt funds that invest in non-investment
grade and non-rated bonds had a clear competitive advantage. Also, while
we did extend the Fund's duration to a more neutral posture, we were
reluctant to extend much further given our interest rate outlook and the
likely impact on the portfolio's distribution yield. Thus, some shorter-
dated bonds were retained in the portfolio and underperformed as the
yield curve flattened. Having said that, in order to maintain a relatively
competitive accrual for our shareholders, we were inclined to hold onto
several of our shorter holdings that are booked at higher yields and
generate meaningful income for the portfolio.
For a description of the Fund's total investment return based on a change
in the per share market value of the Fund's Common Stock (as measured by
the trading price of the Fund's shares on the New York Stock Exchange),
and assuming reinvestment of dividends, please refer to the Financial
Highlights section of this report. As a closed-end fund, the Fund's
shares may trade in the secondary market at a premium or discount to the
Fund's net asset value. As a result, total investment returns based on
changes in the market value of the Fund's Common Stock may vary
significantly from total investment returns based on changes in the
Fund's net asset value.
What changes were made to the portfolio during the period?
As mentioned earlier, we focused on adding longer-dated bonds to the
portfolio and selling some of our shorter-dated holdings. For the
six-month period, issuance of long-term municipal bonds in New Jersey
increased a remarkable 41.5% versus the same six months one year earlier.
The significant increase in debt issuance was prompted by the state's
need to close its budget gap and also reflected the state's efforts to
aggressively refinance its debt in the low interest rate environment. The
net result was that New Jersey municipal bonds cheapened on a relative
basis. This presented us with sufficient opportunity to accomplish our
restructuring goals.
For the six-month period ended April 30, 2005, the Fund's Auction Market
Preferred Stock (AMPS) had an average yield of 1.74% for Series A and
1.28% for Series B. At this point in the Fed's monetary tightening cycle,
interest rate increases are having a material impact on the Fund's
borrowing costs. The Fed raised the short-term interest rate target 100
basis points during the six-month period. Still, the tax-exempt yield
curve remained relatively steep and continued to generate an income
benefit to the holders of Common Stock from the leveraging of Preferred
Stock. However, should the spread between short-term and long-term
interest rates narrow, the benefits of leveraging will decline and, as a
result, reduce the yield on the Fund's Common Stock. At the end of the
period, the Fund's leverage amount, due to AMPS, was 35.01% of total net
assets. (For a more complete explanation of the benefits and risks of
leveraging, see page 2 of this report to shareholders.)
How would you characterize the Fund's position at the close of the
period?
The Fund ended the period relatively neutral with respect to interest
rate risk. As a result, we would expect the Fund to perform, on average,
similar to its benchmark in the months ahead (absent further significant
compression in credit spreads). We maintain a high-quality portfolio. In
fact, the Fund's average credit quality improved during the period as
spreads tightened, and we took profits on some of our lower-rated
investment grade holdings, particularly bonds backed by tobacco revenues,
which were among the market's best performers.
Overall, we do not anticipate any major changes in terms of portfolio
composition or structure. We expect that New Jersey supply will remain
robust as the state continues to refinance its debt, which should keep
New Jersey bonds inexpensive on a relative basis.
MuniYield Pennsylvania Insured Fund
Describe conditions in the Commonwealth of Pennsylvania.
Following several years of recession and slow growth, Pennsylvania
managed to protect its credit ratings of A2, AA and AA from Moody's,
Standard & Poor's and Fitch, respectively, by maintaining conservative
budgeting practices, a relatively low debt burden and a more diversified
service economy.
In past years, a weak economy led the commonwealth to draw down its "rainy
day" fund to balance its budget. Pennsylvania also resorted to a combination
of tax increases, the use of one-time funds and spending cuts. The threat
of a projected $1 billion budget deficit for the 2004 fiscal year led to
taxes on cigarettes and cell phones and an increase in the personal income
tax rate - measures that helped to generate a $637 million surplus.
Pennsylvania's fiscal year 2005 budget of $22.8 billion is balanced, thanks
in part to the fiscal surplus and a full year impact of higher personal
income taxes. At the end of February 2005, the commonwealth's general
fund collections for the 2005 fiscal year exceeded budget estimates by
1.5%, or $204 million.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
A Discussion With Your Funds' Portfolio Managers (concluded)
Pennsylvania's legislature recently approved Governor Edward Rendell's
plan to use slot machine revenues for increased state aid to local school
districts. Expanded gaming in the commonwealth is projected to generate
$1 billion in local property-tax relief among Pennsylvania's 501 school
districts.
Last year marked the first year of total job growth in Pennsylvania since
2000. Labor gains have continued into 2005, with March total employment
up 1.5% compared to the prior year. Pennsylvania's seasonally adjusted
unemployment rate of 5.4% in March matched the national average. Personal
income growth continues to lag the rest of the nation, however, with
income growth per capita of 4.5% in Pennsylvania, compared to 5.7%
nationally.
How did the Fund perform during the period?
For the six-month period ended April 30, 2005, the Common Shares of
MuniYield Pennsylvania Insured Fund had net annualized yields of 6.05%
and 6.31%, based on a period-end per share net asset value of $16.09 and
a per share market price of $15.43, respectively, and $.483 per share
income dividends. Over the same period, the total investment return on
the Fund's Common Shares was +3.49%, based on a change in per share net
asset value from $16.04 to $16.09, and assuming reinvestment of all
distributions.
The Fund's total return, based on net asset value, exceeded the +2.75%
average return of the Lipper Pennsylvania Municipal Debt Funds category
for the six-month period. (Funds in this Lipper category limit their
investment to those securities exempt from taxation in Pennsylvania or a
city in Pennsylvania.) In addition, the Fund's six-month net yield of
6.23% exceeded the 5.94% average yield of the Lipper category.
The Fund's outperformance can be attributed to a few factors, including
security selection, favorable timing and our focus on the long end of the
municipal yield curve. As the yield curve flattened considerably over the
past six months, long-term bonds outperformed shorter-term issues, and
our focus on this segment of the curve enhanced Fund results.
For a description of the Fund's total investment return based on a change
in the per share market value of the Fund's Common Shares (as measured by
the trading price of the Fund's shares on the New York Stock Exchange),
and assuming reinvestment of dividends, please refer to the Financial
Highlights section of this report. As a closed-end fund, the Fund's
shares may trade in the secondary market at a premium or discount to the
Fund's net asset value. As a result, total investment returns based on
changes in the market value of the Fund's Common Shares can vary
significantly from total investment returns based on changes in the
Fund's net asset value.
What changes were made to the portfolio during the period?
During the period, we focused primarily on protecting the Fund's net
asset value and providing shareholders with above-average income. Several
of the higher-coupon bonds in the portfolio were called during the past
six months. The bonds had average coupon income of 6.67% and accounted
for approximately 7.3% of the portfolio. Proceeds from the bond calls
were reinvested in above-average coupon structures, when available, and
despite today's lower-rate environment, the Fund was still able to
maintain a very competitive current yield distribution.
Also during the period, we sought to pick up additional yield for the
portfolio by investing in longer-dated bonds. Although the yield curve
began to flatten considerably, the long end remained fairly steep. This
area of the curve also has been less subject to bouts of volatility,
allowing us the opportunity to add incremental yield while also muting
the Fund's price volatility. Implementing our strategy proved to be a
challenge at times as the Pennsylvania new-issue market continued to be
dominated by par bonds that did not fit our desired investment
characteristics. The maturities of the new issues have been shorter,
generally in the 20-year range. However, we were able to accomplish our
goal through the purchase of newly issued Puerto Rico Electric Power
insured bonds. (Bonds issued by Puerto Rico and other U.S. territories
are fully tax-exempt in all 50 states.)
SEMI-ANNUAL REPORTS, APRIL 30, 2005
For the six-month period ended April 30, 2005, the Fund's Auction Market
Preferred Shares (AMPS) had an average yield of 1.85% for Series A, 1.78%
for Series B and 1.60% for Series C. At this point in the Fed's monetary
tightening cycle, interest rate increases are having a material impact on
the Fund's borrowing costs. The Fed raised the short-term interest rate
target 100 basis points during the six-month period. Despite the recent
Fed interest rate increases, the tax-exempt yield curve has remained
relatively steep and has continued to generate an income benefit to the
holders of Common Shares from the leveraging of Preferred Shares.
However, should the spread between short-term and long-term interest
rates narrow, the benefits of leverage will decline and, as a result,
reduce the yield on the Fund's Common Shares. At the end of the period,
the Fund's leverage amount, due to AMPS, was 35.56% of total net assets.
(For a complete explanation of the benefits and risks of leveraging, see
page 2 of this report to shareholders.)
How would you characterize the Fund's position at the close of the
period?
We remain somewhat cautious in our outlook for the municipal market in
the months ahead. Inflationary data could prove troubling to the Fed,
which at its March meeting expressed greater concern about rising prices.
Our view is that the Fed will continue to steadily increase the federal
funds rate toward 3.5% - 3.75% by the end of the year. All else being
equal, we believe the municipal bond market is well positioned to
outperform other fixed income markets given an expected decrease in
supply with no loss of demand. Against this backdrop, we intend to
maintain our focus on premium-coupon issues in the 20-year - 25-year
maturity range.
Robert D. Sneeden
Vice President and Portfolio Manager
MuniYield Florida Insured Fund
Theodore R. Jaeckel Jr., CFA
Vice President and Portfolio Manager
MuniYield New Jersey Insured Fund, Inc.
William R. Bock
Vice President and Portfolio Manager
MuniYield Pennsylvania Insured Fund
May 26, 2005
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Portfolio Information
Quality Profiles as of April 30, 2005
Percent of
MuniYield Florida Insured Fund Total
By S&P/Moody's Rating Investments
AAA/Aaa 92.3%
AA/Aa 1.0
A/A 5.1
BBB/Baa 1.1
Other* 0.5
* Includes portfolio holdings in variable rate demand notes.
Percent of
MuniYield New Jersey Insured Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 84.1%
AA/Aa 1.8
A/A 4.1
BBB/Baa 8.2
Other* 1.8
* Includes portfolio holdings in variable rate demand notes.
Percent of
MuniYield Pennsylvania Insured Fund Total
By S&P/Moody's Rating Investments
AAA/Aaa 81.2%
AA/Aa 2.6
A/A 9.8
BBB/Baa 1.4
NR (Not Rated) 1.6
Other* 3.4
* Includes portfolio holdings in variable rate demand notes.
Swap Agreements
The Funds may invest in swap agreements, which are over-the-counter
contracts in which one party agrees to make periodic payments based on
the change in market value of a specified bond, basket of bonds, or index
in return for periodic payments based on a fixed or variable interest
rate or the change in market value of a different bond, basket of bonds
or index. Swap agreements may be used to obtain exposure to a bond or
market without owning or taking physical custody of securities. Swap
agreements involve the risk that the party with whom each Fund has
entered into a swap will default on its obligation to pay the Fund and
the risk that the Fund will not be able to meet its obligation to pay the
other party to the agreement.
Dividend Policy
The Funds' dividend policy is to distribute all or a portion of their net
investment income to their shareholders on a monthly basis. In order to
provide shareholders with a more stable level of dividend distributions,
the Funds may at times pay out less than the entire amount of net
investment income earned in any particular month and may at times in any
particular month pay out such accumulated but undistributed income in
addition to net investment income earned in that month. As a result, the
dividends paid by the Funds for any particular month may be more or less
than the amount of net investment income earned by the Funds during such
month. The Funds' current accumulated but undistributed net investment
income, if any, is disclosed in the Statement of Net Assets, which
comprises part of the financial information included in these reports.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments MuniYield Florida Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
District of Columbia--0.8%
$ 1,000 Metropolitan Washington Airports Authority, D.C., Airport System Revenue Bonds, AMT,
Series A, 5.25% due 10/01/2032 (c) $ 1,042
Florida--140.5%
1,300 Alachua County, Florida, School Board, COP, 5.25% due 7/01/2029 (a) 1,403
700 Boynton Beach, Florida, Utility System Revenue Refunding Bonds, 6.25% due 11/01/2020 (b)(c) 843
5,000 Dade County, Florida, Aviation Revenue Bonds, AMT, Series B, 5.75% due 10/01/2012 (h) 5,152
1,000 Daytona Beach, Florida, Utility System Revenue Refunding Bonds, Series B, 5% due 11/15/2027 (c) 1,047
5,635 Escambia County, Florida, Health Facilities Authority, Health Facility Revenue Bonds (Florida
Health Care Facility Loan), 5.95% due 7/01/2020 (a) 5,708
500 Escambia County, Florida, Health Facilities Authority, Revenue Refunding Bonds (Ascension Health
Credit), Series A-1, 5.75% due 11/15/2009 (a)(i) 560
2,110 First Florida Governmental Financing Commission Revenue Bonds, 5.70% due 7/01/2017 (h) 2,250
1,150 Florida HFA, Housing Revenue Bonds (Brittany Rosemont Apartments), AMT, Series C-1, 6.75% due
8/01/2014 (a) 1,174
665 Florida Housing Finance Corporation, Homeowner Mortgage Revenue Refunding Bonds, AMT, Series 4,
6.25% due 7/01/2022 (f) 683
2,000 Florida State Board of Education, Capital Outlay, GO (Public Education), Series B, 5% due
6/01/2031 (c) 2,092
6,190 Florida State Board of Education, Lottery Revenue Bonds, Series A, 6% due 7/01/2015 (c) 7,024
1,000 Florida State Governmental Utility Authority, Utility Revenue Bonds (Lehigh Utility System),
5.125% due 10/01/2033 (a) 1,056
1,860 Florida State Turnpike Authority, Turnpike Revenue Bonds (Department of Transportation),
Series B, 5% due 7/01/2030 1,922
3,700 Highlands County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Adventist
Health System), Series A, 6% due 11/15/2031 4,004
Hillsborough County, Florida, School Board, COP (h):
6,000 5.375% due 7/01/2009 (i) 6,550
1,000 5% due 7/01/2029 1,048
2,615 Hillsborough County, Florida, School District, Sales Tax Revenue Refunding Bonds, 5.375% due
10/01/2011 (a)(i) 2,925
Jacksonville Electric Authority, Florida, Water and Sewer System Revenue Bonds (h):
2,000 Series A, 5.375% due 10/01/2030 2,070
2,610 Series C, 5.25% due 10/01/2037 2,677
Jacksonville, Florida, Economic Development Commission, Health Care Facilities Revenue Bonds
(Mayo Clinic--Jacksonville) (h):
1,000 Series A, 5.50% due 11/15/2036 1,101
750 Series B, 5.50% due 11/15/2036 826
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedule of Investments,
we have abbreviated the names of many of the securities according to the
list at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
EDR Economic Development Revenue Bonds
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
S/F Single-Family
VRDN Variable Rate Demand Notes
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield Florida Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
Florida (continued)
$ 1,140 Jacksonville, Florida, Economic Development Commission, IDR (Metropolitan Parking Solutions
Project), 5.50% due 10/01/2030 (l) $ 1,190
1,455 Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding and Improvement Bonds, 5.25%
due 10/01/2032 (c) 1,559
Jacksonville, Florida, Port Authority, Seaport Revenue Bonds, AMT (h):
1,025 5.625% due 11/01/2010 (i) 1,134
1,225 5.625% due 11/01/2026 1,322
2,000 Lakeland, Florida, Electric and Water Revenue Refunding Bonds, Series A, 5% due 10/01/2028 (h) 2,068
1,000 Lee County, Florida, Airport Revenue Bonds, AMT, Series A, 6% due 10/01/2029 (f) 1,110
1,285 Lee County, Florida, Capital Revenue Bonds, 5.25% due 10/01/2023 (a) 1,410
195 Lee County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program), AMT, Series A,
Sub-Series 3, 7.45% due 9/01/2027 (d)(e)(g) 201
1,000 Leesburg, Florida, Capital Improvement Revenue Bonds, 5.25% due 10/01/2034 (c) 1,078
300 Marco Island, Florida, Utility System Revenue Bonds, 5.25% due 10/01/2021 (h) 331
1,000 Martin County, Florida, Utilities System Revenue Bonds, 5.125% due 10/01/2033 (a) 1,056
2,000 Miami Beach, Florida, Water and Sewer Revenue Bonds, 5.75% due 9/01/2025 (a) 2,221
Miami-Dade County, Florida, Aviation Revenue Bonds:
12,500 AMT, Series A, 5% due 10/01/2033 (f) 12,764
5,000 (Miami International Airport), AMT, Series A, 6% due 10/01/2024 (c) 5,565
1,140 (Miami International Airport), AMT, Series A, 5% due 10/01/2030 (c) 1,171
5,035 (Miami International Airport), Series B, 5% due 10/01/2037 (c) 5,237
2,000 Miami-Dade County, Florida, Educational Facilities Authority Revenue Bonds (University of Miami),
Series A, 5.75% due 4/01/2029 (a) 2,207
Miami-Dade County, Florida, Expressway Authority, Toll System Revenue Bonds, Series B (c):
1,000 5.25% due 7/01/2027 1,081
2,875 5% due 7/01/2033 3,013
3,480 Miami-Dade County, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds,
DRIVERS, Series 208, 9.87% due 8/15/2017 (a)(k) 4,216
1,655 Miami-Dade County, Florida, IDA, IDR (BAC Funding Corporation Project), Series A, 5.375% due
10/01/2030 (a) 1,796
2,000 Miami-Dade County, Florida, School Board COP, Series A, 5.50% due 10/01/2009 (f)(i) 2,201
1,865 Miami-Dade County, Florida, Solid Waste System Revenue Bonds, 5.25% due 10/01/2030 (h) 2,024
1,000 Northern Palm Beach County Improvement District, Florida, Water Control and Improvement,
Revenue Refunding Bonds (Unit of Development No. 9B), 5% due 8/01/2029 (h) 1,064
4,765 Orange County, Florida, Educational Facilities Authority, Educational Facilities Revenue
Refunding Bonds (Rollins College Project), 5.50% due 12/01/2032 (a) 5,249
Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds:
600 (Adventist Health System), 6.25% due 11/15/2024 669
1,835 (Orlando Regional Healthcare), 6% due 12/01/2029 1,994
1,000 Orange County, Florida, Sales Tax Revenue Refunding Bonds, Series A, 5.125% due 1/01/2023 (c) 1,083
6,500 Orange County, Florida, School Board, COP, Series A, 5.25% due 8/01/2023 (h) 6,957
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield Florida Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
Florida (concluded)
$ 5,330 Orange County, Florida, Tourist Development, Tax Revenue Bonds, 5.50% due 10/01/2032 (a) $ 5,843
Orlando and Orange County, Florida, Expressway Authority Revenue Bonds, Series B (a):
4,000 5% due 7/01/2030 4,188
5,015 5% due 7/01/2035 5,237
1,530 Osceola County, Florida, Infrastructure Sales Surplus Tax Revenue Bonds, 5.25% due 10/01/2025 (a) 1,657
2,000 Osceola County, Florida, School Board, COP, Series A, 5.25% due 6/01/2027 (a) 2,148
1,100 Osceola County, Florida, Tourist Development Tax Revenue Bonds, Series A, 5.50% due 10/01/2027 (c) 1,212
1,500 Palm Beach County, Florida, Criminal Justice Facilities Revenue Bonds, 7.20% due 6/01/2015 (c) 1,935
2,000 Palm Beach County, Florida, School Board, COP, Refunding, Series D, 5.25% due 8/01/2021 (f) 2,163
Palm Beach County, Florida, School Board, COP, Series A (i):
5,000 6% due 8/01/2010 (c) 5,729
1,500 5.50% due 8/01/2011 (a) 1,698
1,000 Pembroke Pines, Florida, Public Improvement Revenue Bonds, Series A, 5% due 10/01/2034 (a) 1,051
1,000 Polk County, Florida, Utility System Revenue Bonds, 5.25% due 10/01/2022 (c) 1,101
1,055 Port St. Lucie, Florida, Utility Revenue Bonds, 5.25% due 9/01/2024 (h) 1,150
1,400 Saint Johns County, Florida, Sales Tax Revenue Bonds, GO, Series A, 5.25% due 10/01/2031 (a) 1,511
1,000 Saint Lucie, Florida, West Services District, Utility Revenue Bonds, 5.25% due 10/01/2034 (h) 1,085
2,000 South Broward, Florida, Hospital District Revenue Bonds, DRIVERS, Series 337, 7.945% due
5/01/2032 (h)(k) 2,387
1,000 South Lake County, Florida, Hospital District Revenue Bonds (South Lake Hospital Inc.), 5.80%
due 10/01/2034 1,041
1,240 Stuart, Florida, Public Utilities Revenue Refunding and Improvement Bonds, 5.25% due
10/01/2024 (c) 1,365
2,280 University of Central Florida (UCF) Athletics Association Inc., COP, Series A, 5.25% due
10/01/2034 (c) 2,441
Village Center Community Development District, Florida, Recreational Revenue Bonds, Series A (h):
1,640 5.375% due 11/01/2034 1,795
1,000 5.125% due 11/01/2036 1,063
Village Center Community Development District, Florida, Utility Revenue Bonds (h):
2,585 5.25% due 10/01/2023 2,802
4,000 5.125% due 10/01/2028 4,247
New Jersey--1.7%
2,000 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2024 2,116
Tennessee--0.8%
1,000 Sevier County, Tennessee, Public Building Authority Revenue Bonds, Local Government Public
Improvement IV, VRDN, Series E-5, 3.01% due 6/01/2020 (a)(j) 1,000
Texas--0.1%
100 Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Texas
Children's Hospital), VRDN, Series B-1, 2.98% due 10/01/2029 (h)(j) 100
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (concluded) MuniYield Florida Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
Puerto Rico--6.9%
$ 1,970 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series II, 5.375% due 7/01/2019 (h) $ 2,198
1,000 Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding Bonds,
Series I, 5% due 7/01/2036 1,036
1,145 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E,
5.70% due 2/01/2010 (i) 1,275
3,550 Puerto Rico Public Finance Corporation Revenue Refunding Bonds, RIB, Series 522X, 7.51% due
8/01/2022 (h)(k) 4,389
Total Investments (Cost--$181,267*)--150.8% 193,091
Other Assets Less Liabilities--5.5% 6,982
Preferred Shares, at Redemption Value--(56.3%) (72,029)
---------
Net Assets Applicable to Common Shares--100.0% $ 128,044
=========
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) FHLMC Collateralized.
(e) FNMA Collateralized.
(f) FSA Insured.
(g) GNMA Collateralized.
(h) MBIA Insured.
(i) Prerefunded.
(j) Security may have a maturity of more than one year at time of
issuance, but has variable rate and demand features which qualify it
as a short-term security. The rate disclosed is that currently in effect.
This rate changes periodically based upon prevailing market rates.
(k) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(l) ACA Insured.
* The cost and unrealized appreciation (depreciation) of investments as
of April 30, 2005, as computed for federal income tax purposes, were
as follows:
(in Thousands)
Aggregate cost $ 181,209
=============
Gross unrealized appreciation $ 12,154
Gross unrealized depreciation (272)
-------------
Net unrealized appreciation $ 11,882
=============
Investments in companies considered to be an affiliate of the Fund
(such companies are defined as "Affiliated Companies" in Section
2(a)(3) of the Investment Company Act of 1940) were as follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
Merrill Lynch Institutional
Tax-Exempt Fund (4,919) $6
Forward interest rate swaps outstanding as of April 30, 2005
were as follows:
(in Thousands)
Unrealized
Notional Appreciation
Amount (Depreciation)
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate
and pay a fixed rate equal to
3.567%
Broker, JPMorgan Chase Bank
Expires May 2015 $ 7,300 $ 10
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate
and pay a fixed rate equal to
3.891%
Broker, JPMorgan Chase Bank
Expires July 2015 $ 7,300 (160)
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate
and pay a fixed rate equal to
3.702%
Broker, JPMorgan Chase Bank
Expires July 2015 $15,000 (97)
-------
Total $ (247)
=======
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments MuniYield New Jersey Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New Jersey--144.4%
$ 1,000 Delaware River and Bay Authority Revenue Bonds, 5% due 1/01/2033 (d)(k) $ 1,044
Delaware River Joint Toll Bridge Commission, Pennsylvania and New Jersey, Bridge Revenue
Refunding Bonds:
1,875 5% due 7/01/2023 1,967
1,000 5% due 7/01/2028 1,037
2,500 Delaware River Port Authority of Pennsylvania and New Jersey Revenue Bonds, RIB, Series 396,
8.713% due 1/01/2019 (c)(f) 3,072
540 Essex County, New Jersey, Improvement Authority Revenue Bonds, Series A, 5% due 10/01/2028 (b) 567
6,925 Garden State Preservation Trust of New Jersey, Capital Appreciation Revenue Bonds, Series B,
5.12%** due 11/01/2023 (c) 3,012
Garden State Preservation Trust of New Jersey, Open Space and Farmland Preservation Revenue
Bonds, Series A (c):
2,605 5.80% due 11/01/2022 2,946
3,300 5.75% due 11/01/2028 3,956
2,000 Gloucester County, New Jersey, Improvement Authority, Solid Waste Resource Recovery Revenue
Refunding Bonds (Waste Management Inc. Project), Series A, 6.85% due 12/01/2029 2,255
1,000 Hudson County, New Jersey, COP, Refunding, 6.25% due 12/01/2016 (d) 1,212
8,250 Hudson County, New Jersey, Improvement Authority, Facility Lease Revenue Refunding Bonds
(Hudson County Lease Project), 5.375% due 10/01/2024 (b) 8,823
Jackson Township, New Jersey, School District, GO (b):
2,880 5% due 4/15/2017 3,088
5,200 5% due 4/15/2020 5,516
3,750 Jersey City, New Jersey, Sewer Authority, Sewer Revenue Refunding Bonds, 6.25% due 1/01/2014 (a) 4,469
3,000 Middlesex County, New Jersey, COP, Refunding, 5% due 8/01/2022 (d) 3,171
Monmouth County, New Jersey, Improvement Authority, Governmental Loan Revenue Bonds (a):
735 5.20% due 12/01/2014 801
2,305 5.25% due 12/01/2015 2,510
Monmouth County, New Jersey, Improvement Authority, Governmental Loan Revenue Refunding Bonds (a):
1,695 5% due 12/01/2017 1,823
1,520 5% due 12/01/2018 1,633
1,540 5% due 12/01/2019 1,654
2,260 New Jersey Building Authority, State Building Revenue Refunding Bonds, Series B, 5.25% due
12/15/2015 (b) 2,545
New Jersey EDA, Cigarette Tax Revenue Bonds:
1,060 5.625% due 6/15/2019 1,139
785 5.75% due 6/15/2029 841
225 5.50% due 6/15/2031 235
465 5.75% due 6/15/2034 497
980 New Jersey EDA, EDR, Refunding (The Seeing Eye, Inc. Project), 5% due 12/01/2024 (a) 1,046
1,000 New Jersey EDA, First Mortgage Revenue Bonds (Fellowship Village), Series C, 5.50% due 1/01/2028 999
1,700 New Jersey EDA, First Mortgage Revenue Refunding Bonds (Fellowship Village), Series A, 5.50%
due 1/01/2018 1,722
New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A (d):
3,325 4.95%** due 7/01/2021 1,624
3,900 5% due 7/01/2029 4,102
8,500 5.25% due 7/01/2033 9,166
1,765 5% due 7/01/2034 1,851
6,000 New Jersey EDA, Natural Gas Facilities Revenue Refunding Bonds (NUI Corporation Project),
Series A, 6.35% due 10/01/2022 (a) 6,137
New Jersey EDA, School Facilities Construction Revenue Bonds:
3,390 Series 2003F, 5% due 6/15/2024 (b) 3,615
1,265 Series I, 5% due 9/01/2027 1,313
3,500 Series L, 5% due 3/01/2030 (c) 3,689
6,500 New Jersey EDA, School Facility Construction, Revenue Refunding Bonds, Series K, 5.25% due
12/15/2017 (b) 7,269
5,070 New Jersey EDA, Water Facilities Revenue Bonds (New Jersey--American Water Company, Inc.
Project), Series A, 6.875% due 11/01/2034 (b) 5,188
2,550 New Jersey EDA, Water Facilities Revenue Refunding Bonds (United Water of New Jersey Inc.
Project), VRDN, Series A, 2.96% due 11/01/2026 (a)(e) 2,550
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield New Jersey Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New Jersey (continued)
New Jersey Health Care Facilities Financing Authority Revenue Bonds:
$ 1,125 (Somerset Medical Center), 5.50% due 7/01/2033 $ 1,122
4,000 (South Jersey Hospital), 6% due 7/01/2026 4,280
New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds:
615 (Atlantic City Medical Center), 6.25% due 7/01/2017 699
1,315 (Atlantic City Medical Center), 5.75% due 7/01/2025 1,419
2,425 (Holy Name Hospital), 6% due 7/01/2025 2,526
2,250 (Meridian Health System Obligation Group), 5.25% due 7/01/2019 (c) 2,421
285 (Saint Clare's Hospital Inc.), Series A, 4.25% due 7/01/2017 (j) 284
New Jersey Sports and Exposition Authority, Luxury Tax Revenue Refunding Bonds (Convention
Center) (d):
2,000 5% due 9/01/2017 2,122
1,000 5.50% due 3/01/2022 1,164
920 New Jersey Sports and Exposition Authority, State Contract Revenue Refunding Bonds, VRDN,
Series B-1, 2.93% due 3/01/2021 (d)(e) 920
3,200 New Jersey State Educational Facilities Authority, Higher Education, Capital Improvement Revenue
Bonds, Series A, 5.125% due 9/01/2022 (a) 3,439
New Jersey State Educational Facilities Authority Revenue Bonds (Rowan University), Series C (d):
1,315 5.125% due 7/01/2028 1,400
1,185 5% due 7/01/2034 1,243
New Jersey State Educational Facilities Authority, Revenue Refunding Bonds:
3,185 (Montclair State University), Series L, 5% due 7/01/2034 (d) 3,340
530 (Rowan University), 4.50% due 7/01/2027 (a) 533
555 (Rowan University), Series C, 5% due 7/01/2031 (b) 578
1,440 (William Paterson University), Series E, 5.375% due 7/01/2017 (g) 1,586
1,725 (William Paterson University), Series E, 5% due 7/01/2021 (g) 1,833
3,500 New Jersey State, GO, Refunding, Series H, 5.25% due 7/01/2015 (c) 3,956
6,075 New Jersey State Higher Education Assistance Authority, Student Loan Revenue Bonds, AMT,
Series A, 5.30% due 6/01/2017 (a) 6,267
4,425 New Jersey State Housing and Mortgage Financing Agency, Capital Fund Program Revenue Bonds,
Series A, 4.70% due 11/01/2025 (c) 4,496
3,150 New Jersey State Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds, AMT, Series CC,
5.80% due 10/01/2020 (d) 3,312
1,025 New Jersey State Housing and Mortgage Financing Agency, M/F Revenue Bonds, Series D, 4.60%
due 11/01/2025 (b) 1,029
1,500 New Jersey State Transportation Trust Fund Authority, Transportation System Revenue Bonds,
Series A, 5% due 6/15/2008 (c)(i) 1,592
New Jersey State Transportation Trust Fund Authority, Transportation System Revenue Refunding
Bonds, Series B (d):
2,920 5.50% due 12/15/2015 3,348
3,600 5.50% due 12/15/2021 4,184
New Jersey State Turnpike Authority, Turnpike Revenue Bonds:
3,005 Series B, 5.15%** due 1/01/2035 (a) 1,908
400 VRDN, Series C-3, 2.94% due 1/01/2024 (c)(e) 400
New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds:
2,500 Series A, 5.75% due 1/01/2010 (d)(i) 2,793
1,835 Series C-1, 4.50% due 1/01/2031 (a) 1,836
1,000 Port Authority of New York and New Jersey, Consolidated Revenue Bonds, 93rd Series, 6.125%
due 6/01/2094 1,204
4,075 Port Authority of New York and New Jersey, Revenue Bonds, Trust Receipts, AMT, Class R,
Series 10, 8.463% due 1/15/2017 (c)(f) 4,509
3,180 Port Authority of New York and New Jersey, Revenue Refunding Bonds, DRIVERS, AMT, Series 153,
7.185% due 9/15/2012 (b)(f) 3,410
2,200 South Jersey, New Jersey, Revenue Refunding Bonds (Port Corporation), 5% due 1/01/2023 2,295
1,715 Tobacco Settlement Financing Corporation of New Jersey Revenue Bonds, 7% due 6/01/2041 1,853
Union County, New Jersey, Utilities Authority, Senior Lease Revenue Refunding Bonds (Ogden
Martin System of Union, Inc.), AMT, Series A (a):
1,590 5.375% due 6/01/2017 1,680
1,670 5.375% due 6/01/2018 1,765
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (concluded) MuniYield New Jersey Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New Jersey (concluded)
University of Medicine and Dentistry, New Jersey, Revenue Bonds, Series A (a):
$ 570 5.50% due 12/01/2018 $ 637
1,145 5.50% due 12/01/2019 1,280
1,130 5.50% due 12/01/2020 1,252
865 5.50% due 12/01/2021 959
Puerto Rico--11.6%
1,500 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue
Refunding Bonds, Series J, 5% due 7/01/2029 (d) 1,590
Puerto Rico Electric Power Authority, Power Revenue Bonds:
1,830 Series HH, 5.25% due 7/01/2029 (c) 1,971
2,000 Series RR, 5% due 7/01/2028 (h) 2,118
1,500 Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, Series PP, 5% due
7/01/2025 (b) 1,600
2,110 Puerto Rico Industrial Tourist Educational, Medical and Environmental Control Facilities
Revenue Bonds (Ascension Health), RIB, Series 377, 8.96% due 11/15/2030 (f) 2,637
5,250 Puerto Rico Public Buildings Authority Revenue Bonds, DRIVERS, Series 211, 7.211% due
7/01/2021 (d)(f) 5,941
Total Investments (Cost--$200,295*)--156.0% 212,815
Liabilities in Excess of Other Assets--(2.1%) (2,879)
Preferred Stock, at Redemption Value--(53.9%) (73,524)
---------
Net Assets Applicable to Common Stock--100.0% $ 136,412
=========
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FSA Insured.
(d) MBIA Insured.
(e) Security may have a maturity of more than one year at time of
issuance, but has variable rate and demand features which qualify it
as a short-term security. The rate disclosed is that currently in effect.
This rate changes periodically based upon prevailing market rates.
(f) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(g) XL Capital Insured.
(h) CIFG Insured.
(i) Prerefunded.
(j) Radian Insured.
(k) All or a portion of security held as collateral in connection with open
financial futures contracts.
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2005, as computed for federal income tax purposes,
were as follows:
(in Thousands)
Aggregate cost $ 200,059
==============
Gross unrealized appreciation $ 12,867
Gross unrealized depreciation (111)
--------------
Net unrealized appreciation $ 12,756
==============
** Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase by the Fund.
Investments in companies considered to be an affiliate of the Fund
(such companies are defined as "Affiliated Companies" in Section
2(a)(3) of the Investment Company Act of 1940) were as follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
CMA New Jersey Municipal
Money Fund (2,528) $10
Financial futures contracts sold as of April 30, 2005 were as follows:
(in Thousands)
Number of Expiration Face Unrealized
Contracts Issue Date Value Depreciation
210 10-Year U.S. June
Treasury Note 2005 $22,979 $(420)
Forward interest rate swaps outstanding as of April 30, 2005
were as follows:
(in Thousands)
Notional Unrealized
Amount Depreciation
Receive a variable rate equal to 7-Day
Bond Market Association Municipal
Swap Index Rate and pay a fixed rate
equal to 3.759%
Broker, JPMorgan Chase Bank
Expires November 2018 $ 1,520 $ (2)
Receive a variable rate equal to 7-Day
Bond Market Association Municipal
Swap Index Rate and pay a fixed rate
equal to 3.971%
Broker, JPMorgan Chase Bank
Expires August 2026 $ 3,210 (9)
---------
Total $ (11)
=========
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments MuniYield Pennsylvania Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
Pennsylvania--138.9%
$ 3,000 Allegheny County, Pennsylvania, Higher Education Building Authority, University Revenue
Bonds (Carnegie Mellon University), 5.125% due 3/01/2032 $ 3,133
2,000 Allegheny County, Pennsylvania, Hospital Development Authority, Health Center Revenue Bonds
(University of Pittsburgh Medical Center Health System), Series B, 6% due 7/01/2026 (f) 2,454
Allegheny County, Pennsylvania, Sanitation Authority, Sewer Revenue Bonds (f)(i):
5,000 5.375% due 12/01/2007 5,384
9,000 5.50% due 12/01/2010 10,063
3,660 5.75% due 12/01/2010 4,139
1,000 Dauphin County, Pennsylvania, GO, Series C, 5% due 3/01/2024 (f) 1,058
5,500 Delaware County, Pennsylvania, IDA Revenue Bonds (Pennsylvania Suburban Water Company Project),
AMT, Series A, 5.15% due 9/01/2032 (a) 5,721
1,500 Delaware Valley, Pennsylvania, Regional Finance Authority, Local Government Revenue Bonds,
5.75% due 7/01/2032 1,742
2,600 Geisinger, Pennsylvania, Health System Authority Revenue Bonds (Geisinger Health System),
VRDN, 3.05% due 11/15/2032 (g) 2,600
4,000 Gettysburg, Pennsylvania, Municipal Authority, College Revenue Refunding Bonds, 5% due
8/15/2023 (f) 4,219
4,000 Lancaster County, Pennsylvania, Hospital Authority Revenue Bonds (Lancaster General Hospital
Project), 5.50% due 3/15/2026 4,200
3,000 Lehigh County, Pennsylvania, General Purpose Authority, Hospital Revenue Refunding Bonds
(Saint Lukes Hospital of Bethlehem), 5.375% due 8/15/2033 3,054
7,800 Lehigh County, Pennsylvania, IDA, PCR, Refunding (Pennsylvania Power and Light Utilities
Corporation Project), Series A, 4.70% due 9/01/2029 (c) 7,847
7,000 Luzerne County, Pennsylvania, IDA, Water Facility Revenue Refunding Bonds (Pennsylvania
American Water Company Project), AMT, Series A, 5.10% due 9/01/2034 (a) 7,237
2,675 North Allegheny, Pennsylvania, School District, GO, Series C, 5.25% due 5/01/2027 (e) 2,886
5,000 Northampton Borough, Pennsylvania, Municipal Authority, Water Revenue Bonds, 5% due 5/15/2034 (f) 5,237
6,000 Northumberland County, Pennsylvania, IDA, Water Facilities Revenue Refunding Bonds (Aqua
Pennsylvania Inc. Project), AMT, 5.05% due 10/01/2039 (c) 6,178
3,055 Pennsbury, Pennsylvania, School District, GO, Refunding, 5.50% due 1/15/2020 (c) 3,372
1,430 Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 60A, 5.85% due
10/01/2027 (d)(f) 1,475
5,500 Pennsylvania State, GO, RIB, Series 465X, 8.24% due 10/01/2019 (f)(h) 6,811
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds (UPMC Health System),
Series A:
175 5% due 8/01/2005 (e) 176
3,000 6% due 1/15/2022 3,319
7,000 Pennsylvania State IDA, EDR, Refunding, 5.50% due 7/01/2020 (a) 7,822
Pennsylvania State Public School Building Authority, Revenue Bonds (Lehigh Career and
Technical Institute) (c):
3,585 5.125% due 10/01/2028 3,786
2,000 5.25% due 10/01/2032 2,134
Pennsylvania State Public School Building Authority, School Lease Revenue Bonds (The School
District of Philadelphia Project) (e):
10,000 5.25% due 6/01/2025 10,901
10,300 5% due 6/01/2033 10,705
7,500 Pennsylvania State Public School Building Authority, School Revenue Bonds, DRIVERS, Series 371,
7.195% due 6/01/2011 (e)(h) 8,583
7,500 Pennsylvania State Turnpike Commission, Oil Franchise Tax Revenue Bonds, DRIVERS, Series 366,
7.695% due 6/01/2011 (f)(h) 9,337
1,700 Pennsylvania State Turnpike Commission, Oil Franchise Tax Revenue Refunding Bonds, Series A,
5% due 12/01/2023 (a) 1,802
3,900 Pennsylvania State Turnpike Commission, Turnpike Revenue Bonds, DRIVERS, Series 460-Z,
7.695% due 6/01/2012 (a)(h) 4,757
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield Pennsylvania Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
Pennsylvania (concluded)
Philadelphia, Pennsylvania, Authority for Industrial Development, Airport Revenue Refunding
Bonds (Philadelphia Airport System Project), AMT, Series A (c):
$ 4,000 5.50% due 7/01/2017 $ 4,352
3,655 5.50% due 7/01/2018 3,969
Philadelphia, Pennsylvania, Authority for Industrial Development, Lease Revenue Bonds:
9,125 (City of Philadelphia Project), Series A, 5.375% due 2/15/2027 (f) 9,602
3,000 Series B, 5.50% due 10/01/2020 (e) 3,307
4,680 Series B, 5.50% due 10/01/2021 (e) 5,158
10,000 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 1998 General Ordinance, 4th Series, 5%
due 8/01/2032 (e) 10,415
Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities Authority, Hospital
Revenue Refunding Bonds:
100 (Children's Hospital Project), VRDN, Series C, 2.98% due 7/01/2031 (g) 100
1,600 (Children's Hospital Project), VRDN, Series D, 3.05% due 7/01/2031 (g) 1,600
3,000 (Presbyterian Medical Center), 6.65% due 12/01/2019 (b) 3,708
3,000 Philadelphia, Pennsylvania, Housing Authority Revenue Bonds (Capital Fund Program), Series A,
5.50% due 12/01/2018 (e) 3,309
4,645 Philadelphia, Pennsylvania, Qualified Redevelopment Authority Revenue Bonds, AMT, Series B, 5%
due 4/15/2027 (c) 4,788
1,750 Philadelphia, Pennsylvania, Redevelopment Authority Revenue Bonds (Neighborhood Transformation),
Series A, 5.50% due 4/15/2022 (c) 1,922
5,000 Philadelphia, Pennsylvania, School District, GO, RIB, Series 677, 7.99% due 8/01/2021 (c)(h) 6,431
Philadelphia, Pennsylvania, School District, GO, Series D (c):
5,000 5.125% due 6/01/2034 5,266
4,000 5.25% due 6/01/2034 4,277
5,000 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series A, 5% due 7/01/2028 (e) 5,262
8,190 Philadelphia, Pennsylvania, Water and Wastewater Revenue Refunding Bonds, VRDN, 2.99% due
6/15/2023 (e)(g) 8,190
2,000 Pittsburgh, Pennsylvania, GO, Series A, 5% due 9/01/2017 (f) 2,161
Pittsburgh, Pennsylvania, Public Parking Authority, Parking Revenue Bonds (a):
1,460 5.80% due 12/01/2017 1,623
1,525 5.85% due 12/01/2018 1,698
2,000 Pittsburgh, Pennsylvania, Public Parking Authority, Parking Revenue Refunding Bonds, Series A,
5% due 12/01/2025 (c) 2,102
2,400 Pittsburgh, Pennsylvania, Water and Sewer Authority, Water and Sewer System Revenue Bonds,
First Lien, Series B, 5.255%* due 9/01/2030 (c) 672
Reading, Pennsylvania, School District, GO, Series B (c):
10,425 5.263%* due 1/15/2028 3,325
3,145 5.213%* due 1/15/2030 900
2,600 Sayre, Pennsylvania, Health Care Facilities Authority, Revenue Refunding Bonds (Guthrie
Healthcare System), Series A, 5.875% due 12/01/2031 2,757
Southeastern Pennsylvania Transportation Authority, Special Revenue Bonds (c):
4,500 5.375% due 3/01/2017 4,772
2,525 5.375% due 3/01/2022 2,664
Guam--1.4%
2,500 A.B. Won Guam International Airport Authority, General Revenue Refunding Bonds, AMT, Series C,
5% due 10/01/2023 (f) 2,587
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (concluded) MuniYield Pennsylvania Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
Puerto Rico--18.4%
$10,000 Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5% due 7/01/2034 $ 10,372
13,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series RR, 5% due 7/01/2027 (j) 14,374
Puerto Rico Public Buildings Authority, Government Facilities, Revenue Refunding Bonds,
Series I:
2,500 5.50% due 7/01/2025 2,757
5,000 5.375% due 7/01/2034 5,404
1,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E,
5.50% due 8/01/2029 1,071
Total Investments (Cost--$274,826**)--158.7% 293,027
Liabilities in Excess of Other Assets--(3.4%) (6,398)
Preferred Shares, at Redemption Value--(55.3%) (102,020)
---------
Net Assets Applicable to Common Shares--100.0% $ 184,609
=========
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) FHA Insured.
(e) FSA Insured.
(f) MBIA Insured.
(g) Security may have a maturity of more than one year at time of
issuance, but has variable rate and demand features which qualify it
as a short-term security. The rate disclosed is that currently in effect.
This rate changes periodically based upon prevailing market rates.
(h) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(i) Prerefunded.
(j) XL Capital Insured.
* Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase of the Fund.
** The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2005, as computed for federal income tax purposes,
were as follows:
(in Thousands)
Aggregate cost $ 274,807
==============
Gross unrealized appreciation $ 18,258
Gross unrealized depreciation (38)
--------------
Net unrealized appreciation $ 18,220
==============
Investments in companies considered to be an affiliate of the Fund
(such companies are defined as "Affiliated Companies" in Section
2(a)(3) of the Investment Company Act of 1940) were as follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
CMA Pennsylvania Municipal
Money Fund (4,139) $3
Forward interest rate swaps outstanding as of April 30, 2005
were as follows:
(in Thousands)
Unrealized
Notional Appreciation
Amount (Depreciation)
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate and
pay a fixed rate of 3.76%
Broker, Morgan Stanley
Capital Services, Inc.
Expires June 2015 $11,400 $ (146)
Receive a variable rate equal to
3-Month LIBOR at quarterly reset
date and pay a fixed rate equal
to 5.066%
Broker, Morgan Stanley
Capital Services, Inc.
Expires July 2015 $14,000 (464)
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate and
pay a fixed rate of 3.627%
Broker, JPMorgan Chase Bank
Expires August 2015 $36,000 5
---------
Total $ (605)
=========
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Statements of Net Assets
MuniYield MuniYield MuniYield
Florida New Jersey Pennsylvania
Insured Insured Insured
As of April 30, 2005 Fund Fund, Inc. Fund
Assets
Investments in unaffiliated securities, at value* $ 193,091,157 $ 212,815,088 $ 293,027,318
Cash 71,254 85,607 128,510
Unrealized appreciation on forward interest rate swaps -- -- 5,328
Receivables for securities sold 6,121,172 7,945,865 --
Interest receivable 2,329,616 3,115,109 3,981,769
Variation margin receivable -- 51,119 --
Prepaid expenses and other assets 16,745 239,966 17,974
--------------- --------------- ---------------
Total assets 201,629,944 224,252,754 297,160,899
--------------- --------------- ---------------
Liabilities
Unrealized depreciation on forward interest rate swaps 247,477 10,641 610,359
Payables for securities purchased 1,057,644 14,055,504 9,443,232
Dividends payable to Common Stock/Shareholders 37,884 140,516 129,737
Payable to investment adviser 76,337 79,998 109,054
Payable for swaps -- -- 100,500
Offering costs payable 100,934 -- 98,819
Payable to other affiliates 1,397 2,309 3,140
Accrued expenses and other liabilities 34,925 27,245 37,611
--------------- --------------- ---------------
Total liabilities 1,556,598 14,316,213 10,532,452
--------------- --------------- ---------------
Preferred Stock/Shares
Preferred Stock/Shares, at redemption value, of AMPS+++ at
$25,000 per share liquidation preference++** 72,029,352 73,524,170 102,019,568
--------------- --------------- ---------------
Net Assets Applicable to Common Stock/Shares
Net assets applicable to Common Stock/Shares $ 128,043,994 $ 136,412,371 $ 184,608,879
=============== =============== ===============
Analysis of Net Assets Applicable to Common Stock/Shares
Undistributed investment income--net $ 1,652,170 $ 1,919,125 $ 1,872,050
Accumulated realized capital losses--net (3,414,803) (1,198,041) (5,810,211)
Unrealized appreciation--net 11,576,531 12,089,777 17,596,305
--------------- --------------- ---------------
Total accumulated earnings--net 9,813,898 12,810,861 13,658,144
--------------- --------------- ---------------
Common Stock/Shares, par value $.10 per share++++ 844,046 876,778 1,147,245
Paid-in capital in excess of par 117,386,050 122,724,732 169,803,490
--------------- --------------- ---------------
Net Assets $ 128,043,994 $ 136,412,371 $ 184,608,879
=============== =============== ===============
Net asset value per share of Common Stock/Shares $ 15.17 $ 15.56 $ 16.09
=============== =============== ===============
Market Price $ 14.63 $ 14.92 $ 15.43
=============== =============== ===============
* Identified cost $ 181,267,149 $ 200,294,709 $ 274,825,982
=============== =============== ===============
** Preferred Stock/Shares issued and outstanding:
Series A, par value of $.05 per share 2,400 2,240 1,600
=============== =============== ===============
Series B, par value of $.05 per share 480 -- 1,920
=============== =============== ===============
Series B, par value of $.10 per share -- 700 --
=============== =============== ===============
Series C, par value of $.05 per share -- -- 560
=============== =============== ===============
++ Preferred Stock/Shares authorized 1,000,000 2,940 1,000,000
=============== =============== ===============
++++ Common Stock/Shares issued and outstanding 8,440,456 8,767,782 11,472,447
=============== =============== ===============
+++ Auction Market Preferred Stock/Shares.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Statements of Operations
MuniYield MuniYield MuniYield
Florida New Jersey Pennsylvania
Insured Insured Insured
For the Six Months Ended April 30, 2005 Fund Fund, Inc. Fund
Investment Income
Interest $ 4,938,460 $ 5,261,980 $ 7,165,167
Dividends from affiliates 5,984 10,092 3,135
--------------- --------------- ---------------
Total income 4,944,444 5,272,072 7,168,302
--------------- --------------- ---------------
Expenses
Investment advisory fees 493,823 520,663 707,196
Commission fees 87,628 92,058 123,017
Accounting services 42,918 44,542 58,665
Professional fees 23,640 25,623 28,055
Transfer agent fees 21,955 24,469 29,585
Printing and shareholder reports 15,205 18,487 16,569
Directors'/Trustees' fees and expenses 12,945 13,346 13,074
Listing fees 10,324 10,100 10,130
Custodian fees 6,466 7,335 8,894
Pricing fees 7,725 9,017 5,283
Other 15,576 13,667 19,841
--------------- --------------- ---------------
Total expenses before reimbursement 738,205 779,307 1,020,309
Reimbursement of expenses (944) (4,677) (1,618)
--------------- --------------- ---------------
Total expenses after reimbursement 737,261 774,630 1,018,691
--------------- --------------- ---------------
Investment income--net 4,207,183 4,497,442 6,149,611
--------------- --------------- ---------------
Realized and Unrealized Gain (Loss)--Net
Realized gain (loss) on:
Investments--net 1,494,582 2,359,765 2,880,706
Futures contracts and forward interest rate swaps--net (233,947) 804,943 (701,386)
--------------- --------------- ---------------
Total realized gain 1,260,635 3,164,708 2,179,320
--------------- --------------- ---------------
Change in unrealized appreciation/depreciation on:
Investments--net (1,212,538) (1,847,797) (1,037,977)
Futures contracts and forward interest rate swaps--net 6,312 (213,849) 66,369
--------------- --------------- ---------------
Total change in unrealized appreciation/depreciation (1,206,226) (2,061,646) (971,608)
--------------- --------------- ---------------
Total realized and unrealized gain--net 54,409 1,103,062 1,207,712
--------------- --------------- ---------------
Dividends to Preferred Stock/Shareholders
Investment income--net (559,603) (596,827) (905,352)
--------------- --------------- ---------------
Net Increase in Net Assets Resulting from Operations $ 3,701,989 $ 5,003,677 $ 6,451,971
=============== =============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Statements of Changes in Net Assets MuniYield Florida Insured Fund
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2005 2004
Operations
Investment income--net $ 4,207,183 $ 8,303,172
Realized gain (loss)--net 1,260,635 (1,633,469)
Change in unrealized appreciation/depreciation--net (1,206,226) 3,344,665
Dividends to Preferred Shareholders (559,603) (612,024)
--------------- ---------------
Net increase in net assets resulting from operations 3,701,989 9,402,344
--------------- ---------------
Dividends to Common Shareholders
Investment income--net (3,848,848) (7,862,285)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Shareholders (3,848,848) (7,862,285)
--------------- ---------------
Common Share Transactions
Offering and underwriting costs resulting from the issuance of Preferred Shares (263,771) --
--------------- ---------------
Net decrease in net assets derived from Common Share transactions (263,771) --
--------------- ---------------
Net Assets Applicable to Common Shares
Total increase (decrease) in net assets applicable to Common Shares (410,630) 1,540,059
Beginning of period 128,454,624 126,914,565
--------------- ---------------
End of period* $ 128,043,994 $ 128,454,624
=============== ===============
* Undistributed investment income--net $ 1,652,170 $ 1,853,438
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Statements of Changes in Net Assets MuniYield New Jersey Insured Fund, Inc.
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2005 2004
Operations
Investment income--net $ 4,497,442 $ 9,010,629
Realized gain (loss)--net 3,164,708 (196,472)
Change in unrealized appreciation/depreciation--net (2,061,646) 2,083,358
Dividends to Preferred Stock shareholders (596,827) (560,277)
--------------- ---------------
Net increase in net assets resulting from operations 5,003,677 10,337,238
--------------- ---------------
Dividends to Common Stock Shareholders
Investment income--net (4,102,597) (8,192,082)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Stock shareholders (4,102,597) (8,192,082)
--------------- ---------------
Common Stock Transactions
Value of shares issued to Common Stock shareholders in reinvestment of dividends 141,176 289,289
Offering and underwriting costs resulting from the issuance of Preferred Stock -- (304,468)
--------------- ---------------
Net increase (decrease) in net assets derived from Common Stock transactions 141,176 (15,179)
--------------- ---------------
Net Assets Applicable to Common Stock
Total increase in net assets applicable to Common Stock 1,042,256 2,129,977
Beginning of period 135,370,115 133,240,138
--------------- ---------------
End of period* $ 136,412,371 $ 135,370,115
=============== ===============
* Undistributed investment income--net $ 1,919,125 $ 2,121,107
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Statements of Changes in Net Assets MuniYield Pennsylvania Insured Fund
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2005 2004
Operations
Investment income--net $ 6,149,611 $ 12,376,868
Realized gain--net 2,179,320 1,895,759
Change in unrealized appreciation/depreciation--net (971,608) 3,646,173
Dividends to Preferred Shareholders (905,352) (914,080)
--------------- ---------------
Net increase in net assets resulting from operations 6,451,971 17,004,720
--------------- ---------------
Dividends to Common Shareholders
Investment income--net (5,574,165) (11,464,926)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Shareholders (5,574,165) (11,464,926)
--------------- ---------------
Common Share Transactions
Value of shares issued to Common Shareholders in reinvestment of dividends 138,203 --
Offering and underwriting costs resulting from the issuance of Preferred Shares (284,024) --
--------------- ---------------
Net decrease in net assets derived from Common Share transactions (145,821) --
--------------- ---------------
Net Assets Applicable to Common Shares
Total increase in net assets applicable to Common Shares 731,985 5,539,794
Beginning of period 183,876,894 178,337,100
--------------- ---------------
End of period* $ 184,608,879 $ 183,876,894
=============== ===============
* Undistributed investment income--net $ 1,872,050 $ 2,201,956
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights MuniYield Florida Insured Fund
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Per Share Operating Performance
Net asset value, beginning of period $ 15.22 $ 15.04 $ 15.04 $ 14.94 $ 13.89
---------- ---------- ---------- ---------- ----------
Investment income--net .50+++ .98+++ 1.05+++ 1.04 1.00
Realized and unrealized gain (loss)--net .01 .20 (.06) .06 1.06
Less dividends and distributions to Preferred
Shareholders:
Investment income--net (.07) (.07) (.07) (.10) (.23)
Realized gain--net -- -- -- --++ --
---------- ---------- ---------- ---------- ----------
Total from investment operations .44 1.11 .92 1.00 1.83
---------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.46) (.93) (.92) (.90) (.78)
Realized gain--net -- -- -- --++ --
---------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common
Shareholders (.46) (.93) (.92) (.90) (.78)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs resulting from
the issuance of Preferred Shares (.03) -- -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 15.17 $ 15.22 $ 15.04 $ 15.04 $ 14.94
========== ========== ========== ========== ==========
Market price per share, end of period $ 14.63 $ 14.98 $ 14.18 $ 14.30 $ 14.21
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 2.80%+++++ 7.98% 6.45% 7.22% 13.96%
========== ========== ========== ========== ==========
Based on market price per share .73%+++++ 12.73% 5.56% 7.19% 24.17%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Shares
Total expenses, net of reimbursement*** 1.16%* 1.09% 1.08% 1.11% 1.15%
========== ========== ========== ========== ==========
Total expenses*** 1.16%* 1.10% 1.08% 1.11% 1.15%
========== ========== ========== ========== ==========
Total investment income--net*** 6.62%* 6.54% 6.86% 7.02% 6.90%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Shareholders .88%* .48% .47% .67% 1.58%
========== ========== ========== ========== ==========
Investment income--net, to Common Shareholders 5.74%* 6.06% 6.39% 6.35% 5.32%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Shares
Dividends to Preferred Shareholders 1.59%* 1.02% 1.00% 1.39% 3.21%
========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights (concluded) MuniYield Florida Insured Fund
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Supplemental Data
Net assets applicable to Common Shares, end of
period (in thousands) $ 128,044 $ 128,455 $ 126,915 $ 126,947 $ 126,035
========== ========== ========== ========== ==========
Preferred Shares outstanding, end of period
(in thousands) $ 72,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000
========== ========== ========== ========== ==========
Portfolio turnover 28.20% 31.22% 47.21% 40.55% 78.48%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,778 $ 3,141 $ 3,115 $ 3,116 $ 3,101
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Shares Outstanding
Series A--Investment income--net $ 198 $ 255 $ 251 $ 348 $ 803
========== ========== ========== ========== ==========
Series B++++--Investment income--net $ 178 -- -- -- --
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total investment returns exclude
the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Shareholders.
++ Amount is less than $(.01) per share.
++++ Series B was issued on November 22, 2004.
+++ Based on average shares outstanding.
+++++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights MuniYield New Jersey Insured Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Per Share Operating Performance
Net asset value, beginning of period $ 15.46 $ 15.25 $ 15.14 $ 15.17 $ 13.96
---------- ---------- ---------- ---------- ----------
Investment income--net .51+++ 1.03+++ 1.06+++ 1.07 1.04
Realized and unrealized gain (loss)--net .13 .21 .06 (.06) 1.21
Less dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.07) (.06) (.06) (.09) (.20)
Realized gain--net -- -- --++ --++ --
---------- ---------- ---------- ---------- ----------
Total from investment operations .57 1.18 1.06 .92 2.05
---------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.47) (.94) (.94) (.94) (.84)
Realized gain--net -- -- (.01) (.01) --
---------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common Stock
shareholders (.47) (.94) (.95) (.95) (.84)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs resulting from the
issuance of Preferred Stock -- (.03) -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 15.56 $ 15.46 $ 15.25 $ 15.14 $ 15.17
========== ========== ========== ========== ==========
Market price per share, end of period $ 14.92 $ 15.16 $ 14.39 $ 14.45 $ 15.04
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 3.80%+++++ 7.99% 7.24% 6.27% 15.04%
========== ========== ========== ========== ==========
Based on market price per share 1.50%+++++ 12.23% 6.02% 2.30% 19.04%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Stock
Total expenses, net of reimbursement*** 1.15%* 1.06% 1.03% 1.07% 1.11%
========== ========== ========== ========== ==========
Total expenses*** 1.15%* 1.07% 1.04% 1.07% 1.11%
========== ========== ========== ========== ==========
Total investment income--net*** 6.66%* 6.79% 6.89% 7.04% 7.01%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders .88%* .42% .38% .57% 1.33%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock shareholders 5.78%* 6.37% 6.51% 6.47% 5.68%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Stock
Dividends to Preferred Stock shareholders 1.63%* .95% .91% 1.32% 3.01%
========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights (concluded) MuniYield New Jersey Insured Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Supplemental Data
Net assets applicable to Common Stock, end of
period (in thousands) $ 136,412 $ 135,370 $ 133,240 $ 132,146 $ 131,012
========== ========== ========== ========== ==========
Preferred Stock outstanding, end of period
(in thousands) $ 73,500 $ 73,500 $ 56,000 $ 56,000 $ 56,000
========== ========== ========== ========== ==========
Portfolio turnover 27.92% 18.25% 24.70% 28.45% 57.25%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,856 $ 2,842 $ 3,379 $ 3,360 $ 3,340
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Stock Outstanding
Series A--Investment income--net $ 217 $ 232 $ 228 $ 330 $ 753
========== ========== ========== ========== ==========
Series B++++--Investment income--net $ 159 $ 57 -- -- --
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total investment returns exclude
the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Amount is less than $(.01) per share.
++++ Series B was issued on August 25, 2004.
+++ Based on average shares outstanding.
+++++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights MuniYield Pennsylvania Insured Fund
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Per Share Operating Performance
Net asset value, beginning of period $ 16.04 $ 15.56 $ 15.34 $ 15.19 $ 14.16
---------- ---------- ---------- ---------- ----------
Investment income--net .54+++ 1.08+++ 1.11+++ 1.11 1.07
Realized and unrealized gain--net .10 .48 .16 .13 1.03
Less dividends to Preferred Shareholders:
Investment income--net (.08) (.08) (.07) (.11) (.24)
---------- ---------- ---------- ---------- ----------
Total from investment operations .56 1.48 1.20 1.13 1.86
---------- ---------- ---------- ---------- ----------
Less dividends to Common Shareholders:
Investment income--net (.49) (1.00) (.98) (.98) (.83)
---------- ---------- ---------- ---------- ----------
Total dividends to Common Shareholders (.49) (1.00) (.98) (.98) (.83)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs resulting from
the issuance of Preferred Shares (.02) -- -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 16.09 $ 16.04 $ 15.56 $ 15.34 $ 15.19
========== ========== ========== ========== ==========
Market price per share, end of period $ 15.43 $ 15.61 $ 14.81 $ 14.37 $ 14.96
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 3.49%+++++ 10.15% 8.33% 7.84% 14.02%
========== ========== ========== ========== ==========
Based on market price per share 1.98%+++++ 12.63% 10.07% 2.57% 35.32%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Shares
Total expenses, net of reimbursement*** 1.11%* 1.05% 1.07% 1.12% 1.16%
========== ========== ========== ========== ==========
Total expenses*** 1.12%* 1.07% 1.08% 1.12% 1.16%
========== ========== ========== ========== ==========
Total investment income--net*** 6.73%* 6.89% 7.08% 7.30% 7.28%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Shareholders .99%* .51% .47% .70% 1.62%
========== ========== ========== ========== ==========
Investment income--net, to Common Shareholders 5.74%* 6.38% 6.61% 6.60% 5.66%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Shares
Dividends to Preferred Shareholders 1.81%* 1.04% .95% 1.37% 3.11%
========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights (concluded) MuniYield Pennsylvania Insured Fund
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Supplemental Data
Net assets applicable to Common Shares, end of
period (in thousands) $ 184,609 $ 183,877 $ 178,337 $ 175,720 $ 173,665
========== ========== ========== ========== ==========
Preferred Shares outstanding, end of period
(in thousands) $ 102,000 $ 88,000 $ 88,000 $ 88,000 $ 88,000
========== ========== ========== ========== ==========
Portfolio turnover 24.24% 50.00% 55.57% 51.37% 69.58%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,810 $ 3,090 $ 3,027 $ 2,997 $ 2,973
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Shares Outstanding
Series A--Investment income--net $ 230 $ 254 $ 242 $ 338 $ 781
========== ========== ========== ========== ==========
Series B--Investment income--net $ 222 $ 261 $ 235 $ 346 $ 774
========== ========== ========== ========== ==========
Series C++--Investment income--net $ 200 -- -- -- --
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total investment returns exclude
the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Shareholders.
++ Series C was issued on November 22, 2004.
+++ Based on average shares outstanding.
+++++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Notes to Financial Statements
1. Significant Accounting Policies:
MuniYield Florida Insured Fund, MuniYield New Jersey Insured Fund, Inc.
and MuniYield Pennsylvania Insured Fund (the "Funds" or individually as
the "Fund") are registered under the Investment Company Act of 1940, as
amended, as non-diversified, closed-end management investment companies.
The Funds' financial statements are prepared in conformity with U.S.
generally accepted accounting principles, which may require the use of
management accruals and estimates. Actual results may differ from these
estimates. These unaudited financial statements reflect all adjustments,
which are, in the opinion of management, necessary to present a fair
statement of the results for the interim period. All such adjustments are
of a normal, recurring nature. The Funds determine and make available for
publication the net asset values of their Common Stock/Shares on a daily
basis. Common Stock/Shares are listed on the New York Stock Exchange
under the symbol MFT for MuniYield Florida Insured Fund, MJI for MuniYield
New Jersey Insured Fund, Inc. and MPA for MuniYield Pennsylvania Insured
Fund. The following is a summary of significant accounting policies
followed by the Funds.
(a) Valuation of investments--Municipal bonds are traded primarily in the
over-the-counter ("OTC") markets and are valued at the last available bid
price in the OTC market or on the basis of values as obtained by a pricing
service. Pricing services use valuation matrixes that incorporate both
dealer-supplied valuations and valuation models. The procedures of the
pricing service and its valuations are reviewed by the officers of the Funds
under the general direction of the Board of Directors/Trustees. Such
valuations and procedures are reviewed periodically by the Board of
Directors/Trustees of the Funds. Financial futures contracts and options
thereon, which are traded on exchanges, are valued at their closing prices
as of the close of such exchanges. Options written or purchased are valued
at the last sale price in the case of exchange-traded options. In the case
of options traded in the OTC market, valuation is the last asked price
(options written) or the last bid price (options purchased). Swap agreements
are valued by quoted fair values received daily by the Funds' pricing
service. Short-term investments with a remaining maturity of 60 days or
less are valued at amortized cost, which approximates market value, under
which method the investment is valued at cost and any premium or discount
is amortized on a straight line basis to maturity. Investments in open-
end investment companies are valued at their net asset value each business
day. Securities and other assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or under
the direction of the Board of Directors/Trustees of the Funds.
(b) Derivative financial instruments--The Funds may engage in various
portfolio investment strategies both to increase the return of the Funds
and to hedge, or protect, their exposure to interest rate movements and
movements in the securities markets. Losses may arise due to changes in
the value of the contract or if the counterparty does not perform under
the contract.
* Financial futures contracts--Each Fund may purchase or sell financial
futures contracts and options on such futures contracts. Futures
contracts are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Upon entering into a
contract, the Fund deposits and maintains as collateral such initial
margin as required by the exchange on which the transaction is effected.
Pursuant to the contract, the Fund agrees to receive from or pay to the
broker an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as variation margin and are
recorded by the Fund as unrealized gains or losses. When the contract is
closed, the Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value
at the time it was closed.
* Options--Each Fund may purchase and write call and put options. When
the Fund writes an option, an amount equal to the premium received by the
Fundis reflected as an asset and an equivalent liability. The amount of
the liability is subsequently marked-to-market to reflect the current
market value of the option written. When a security is purchased or sold
through an exercise of an option, the related premium paid (or received)
is added to (or deducted from) the basis of the security acquired or
deducted from (or added to) the proceeds of the security sold. When an
option expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the closing
transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Notes to Financial Statements (continued)
* Forward interest rate swaps--Each Fund may enter into forward interest
rate swaps. In a forward interest rate swap, the Fund and the counterparty
agree to make periodic net payments on a specified notional contract
amount, commencing on a specified future effective date, unless terminated
earlier. When the agreement is closed, the Fund records a realized gain
or loss in an amount equal to the value of the agreement.
(c) Income taxes--It is each Fund's policy to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies
and to distribute substantially all of its taxable income to its
shareholders. Therefore, no federal income tax provision is required.
(d) Security transactions and investment income--Security transactions
are recorded on the dates the transactions are entered into (the trade
dates). Realized gains and losses on security transactions are determined
on the identified cost basis. Dividend income is recorded on the ex-dividend
dates. Interest income is recognized on the accrual basis. The Funds
amortize all premiums and discounts on debt securities.
(e) Dividends and distributions--Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on
the ex-dividend dates.
(f) Offering expenses--Direct expenses relating to the public offering of
certain Fund's Preferred Stock/Shares were charged to capital at the time
of issuance of the stock/shares.
2. Investment Advisory Agreement and Transactions with Affiliates:
Each Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is Princeton
Services, Inc. ("PSI"), an indirect, wholly-owned subsidiary of Merrill
Lynch & Co., Inc. ("ML & Co."), which is the limited partner.
FAM is responsible for the management of each Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Fund. For such services, the
Fund pays a monthly fee at an annual rate of .50% of the Fund's average
weekly net assets, including proceeds from the issuance of Preferred
Stock/Shares. For the six months ended April 30, 2005, the Investment
Adviser agreed to reimburse its management fee by the amount of
management fees each Fund pays to FAM indirectly through its investment
described below:
Fund Investment Reimbursement
Muni Yield Florida Merrill Lynch Institutional
Insured Fund Tax-Exempt Fund $ 944
MuniYield New Jersey CMA New Jersey
Insured Fund, Inc. Municipal Money Fund $4,677
MuniYield Pennsylvania CMA Pennsylvania
Insured Fund Municipal Money Fund $1,618
During the six months ended April 30, 2005, Merrill Lynch, Pierce, Fenner
& Smith Incorporated ("MLPF&S"), an affiliate of FAM, received underwriting
fees of $120,000 relating to MuniYield Florida Insured Fund and $140,000
relating to MuniYield Pennsylvania Insured Fund, in connection with the
issuance of each Fund's Preferred Shares.
For the six months ended April 30, 2005, the Funds reimbursed FAM for
certain accounting services. Each Fund's reimbursements were as follows:
Fund Reimbursement
MuniYield Florida Insured Fund $2,426
MuniYield New Jersey Insured Fund, Inc. $2,709
MuniYield Pennsylvania Insured Fund $3,120
Certain officers and/or directors/trustees of the Funds are officers
and/or directors of FAM, PSI, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for
the six months ended April 30, 2005 were as follows:
MuniYield MuniYield MuniYield
Florida New Jersey Pennsylvania
Insured Insured Insured
Fund Fund, Inc. Fund
Total Purchases $64,703,529 $60,691,337 $80,577,033
Total Sales $53,593,429 $56,845,541 $66,655,133
4. Share Transactions:
MuniYield Florida Insured Fund and MuniYield Pennsylvania Insured Fund
are authorized to issue an unlimited number of common shares of beneficial
interest, par value $.10 per share (the "Common Shares"), together with
1,000,000 Preferred Shares of beneficial interest, par value of $.05 per
share. The Board of Trustees is authorized, however, to reclassify any
unissued shares of beneficial interest without approval of the holders
of Common Shares.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Notes to Financial Statements (continued)
MuniYield New Jersey Insured Fund, Inc. is authorized to issue 200,000,000
shares of stock, including Preferred Stock, par value $.10 per share, all
of which were initially classified as Common Stock. The Board of Directors
is authorized, however, to classify any unissued shares of stock without
approval of holders of Common Stock.
Common Stock/Shares
MuniYield Florida Insured Fund
Shares issued and outstanding during the six months ended April 30, 2005
and the year ended October 31, 2004 remained constant.
MuniYield New Jersey Insured Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2005
and the year ended October 31, 2004 increased by 9,294 and 18,785,
respectively, as a result of dividend reinvestment.
MuniYield Pennsylvania Insured Fund
Shares issued and outstanding during the six months ended April 30, 2005
increased by 8,702 as a result of dividend reinvestment and remained
constant during the year ended October 31, 2004.
Preferred Stock/Shares
Auction Market Preferred Stock/Shares are redeemable Preferred
Stock/Shares of the Funds, with a liquidation preference of $25,000 per
share plus accrued and unpaid dividends that entitle their holders to
receive cash dividends at an annual rate that may vary for the successive
dividend periods.
MuniYield Florida Insured Fund and MuniYield Pennsylvania Insured Fund
have a par value of $.05 per share. MuniYield New Jersey Insured Fund,
Inc. has a par value of $.05 per share for Series A and $.10 per share
for Series B. The yields in effect at April 30, 2005 were as follows:
MuniYield MuniYield MuniYield
Florida New Jersey Pennsylvania
Insured Insured Insured
Fund Fund, Inc. Fund
Series A 2.55% 2.25% 2.55%
Series B 2.63% 2.25% 2.55%
Series C -- -- 2.65%
MuniYield Florida Insured Fund
Shares issued and outstanding for the six months ended April 30, 2005
increased by 480 shares from the issuance of an additional series of
Preferred Shares. Shares issued and outstanding for the year ended
October 31, 2004 remained constant.
MuniYield New Jersey Insured Fund, Inc.
Shares issued and outstanding for the six months ended April 30, 2005
remained constant. Shares issued and outstanding for the year ended
October 31, 2004 increased by 700 shares from the issuance of an
additional series of Preferred Stock.
MuniYield Pennsylvania Insured Fund
Shares issued and outstanding for the six months ended April 30, 2005
increased by 560 shares from the issuance of an additional series of
Preferred Shares. Shares issued and outstanding for the year ended
October 31, 2004 remained constant.
The Funds pay commissions to certain broker-dealers at the end of each
auction at an annual rate ranging from .25% to .375%, calculated on the
proceeds of each auction. For the six months ended April 30, 2005, MLPF&S
earned commissions as follows:
Fund Commissions
MuniYield Florida Insured Fund $42,368
MuniYield New Jersey Insured Fund, Inc. $61,414
MuniYield Pennsylvania Insured Fund $84,589
5. Capital Loss Carryforward:
MuniYield Florida Insured Fund
On October 31, 2004, the Fund had a net capital loss carryforward of
$4,109,860, of which $2,028,135 expires in 2008 and $2,081,725 expires in
2012. This amount will be available to offset like amounts of any future
taxable gains.
MuniYield New Jersey Insured Fund, Inc.
On October 31, 2004, the Fund had a net capital loss carryforward of
$2,731,893, of which $492,523 expires in 2008, $1,078,250 expires in 2010
and $1,161,120 expires in 2012. This amount will be available to offset
like amounts of any future taxable gains.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Notes to Financial Statements (concluded)
MuniYield Pennsylvania Insured Fund
On October 31, 2004, the Fund had a net capital loss carryforward of
$6,901,601, all of which expires in 2008. This amount will be available
to offset like amounts of any future taxable gains.
6. Subsequent Event:
Each Fund paid a tax-exempt income dividend to holders of Common
Stock/Shares on May 27, 2005 to stock/shareholders of record on May 13,
2005. The amount of the tax-exempt income dividend was as follows:
Per Share
Fund Account
MuniYield Florida Insured Fund $.075000
MuniYield New Jersey Insured Fund, Inc. $.078000
MuniYield Pennsylvania Insured Fund $.080000
Proxy Results MuniYield Florida Insured Fund
During the six-month period ended April 30, 2005, MuniYield Florida
Insured Fund's Common Shareholders voted on the following proposals.
Proposal 1 was approved at a shareholders' meeting on April 28, 2005.
With respect to Proposal 2, the proposal was adjourned until May 27, 2005,
at which time it passed. A description of the proposals and number of shares
voted were as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Trustees: Robert C. Doll, Jr. 5,299,888 98,368
Donald W. Burton 5,295,769 102,487
John F. O'Brien 5,297,769 100,487
David H. Walsh 5,297,769 100,487
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 3,860,864 133,362 114,875
During the six-month period ended April 30, 2005, MuniYield Florida
Insured Fund's Preferred Shareholders (Series A and B) voted on the
following proposals. Proposal 1 was approved at a shareholders' meeting
on April 28, 2005. With respect to Proposal 2, the proposal was adjourned
until May 27, 2005, at which time it passed. A description of the
proposals and number of shares voted were as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Trustees: Robert C. Doll, Jr., Donald W. Burton,
Laurie Simon Hodrick, John F. O'Brien, David H. Walsh and Fred G. Weiss 1,642 4
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 2,639 75 165
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Proxy Results MuniYield New Jersey Insured Fund, Inc.
During the six-month period ended April 30, 2005, MuniYield New Jersey Insured
Fund, Inc.'s Common Stock shareholders voted on the following proposals.
Proposal 1 was approved at a shareholders' meeting on April 28, 2005. With
respect to Proposal 2, the proposal was adjourned until May 27, 2005, at which
time it passed. A description of the proposals and number of shares voted were
as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Directors: Robert C. Doll, Jr., 4,606,071 128,091
Donald W. Burton 4,610,634 123,528
John F. O'Brien 4,607,246 126,916
David H. Walsh 4,603,225 130,937
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 2,314,294 70,809 76,280
During the six-month period ended April 30, 2005, MuniYield New Jersey
Insured Fund, Inc.'s Preferred Shareholders (Series A--B) voted on the
following proposals. Proposal 1 was approved at a shareholders' meeting
on April 28, 2005. With respect to Proposal 2, the proposal was adjourned
until May 27, 2005, at which time it passed. A description of the
proposal and number of shares voted were as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Directors: Robert C. Doll, Jr.,
Donald W. Burton, Laurie Simon Hodrick, John F. O'Brien,
David H. Walsh and Fred G. Weiss 1,305 20
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 2,686 67 94
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Proxy Results MuniYield Pennsylvania Insured Fund
During the six-month period ended April 30, 2005, MuniYield Pennsylvania
Insured Fund's Common Shareholders voted on the following proposals.
Proposal 1 was approved at a shareholders' meeting on April 28, 2005.
With respect to Proposals 2 and 3, the proposals were adjourned until
May 27, 2005, at which time they passed. A description of the proposals and
number of shares voted were as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Trustees: Robert C. Doll, Jr. 7,075,299 83,220
Donald W. Burton 7,077,813 80,706
John F. O'Brien 7,072,396 86,123
David H. Walsh 7,074,598 83,921
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 5,135,377 168,045 163,095
3. To approve an amendment to articles supplementary or certificate
of designation. 5,058,620 221,232 186,665
During the six-month period ended April 30, 2005, MuniYield Pennsylvania
Insured Fund's Preferred Shareholders (Series A--C) voted on the
following proposals. Proposal 1 was approved at a shareholders' meeting
on April 28, 2005. With respect to Proposals 2 and 3, the proposals were
adjourned until May 27, 2005, at which time they passed. A description of
the proposals and number of shares voted were as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Trustees: Robert C. Doll, Jr., Donald W. Burton,
Laurie Simon Hodrick, John F. O'Brien, David H. Walsh and Fred G. Weiss 2,217 3
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 3,845 86 139
3. To approve an amendment to articles supplementary or certificate
of designation. 3,761 220 89
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Officers and Directors/Trustees
Robert C. Doll, Jr., President and Director/Trustee
Donald W. Burton, Director/Trustee
Laurie Simon Hodrick, Director/Trustee
John Francis O'Brien, Director/Trustee
David H. Walsh, Director/Trustee
Fred G. Weiss, Director/Trustee
Kenneth A. Jacob, Senior Vice President
John M. Loffredo, Senior Vice President
William R. Bock, Vice President
Theodore R. Jaeckel Jr., Vice President
Robert D. Sneeden, Vice President
Donald C. Burke, Vice President and Treasurer
Jeffrey Hiller, Chief Compliance Officer
Alice A. Pellegrino, Secretary
MuniYield Florida Insured Fund and
MuniYield New Jersey Insured Fund, Inc.:
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agents
Common Shares or Stock: Preferred Shares or Stock:
The Bank of New York The Bank of New York
101 Barclay Street 101 Barclay Street - 7 West
New York, NY 10286 New York, NY 10286
MuniYield Pennsylvania Insured Fund:
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agents
Common Shares: Preferred Shares:
EquiServe The Bank of New York
P.O. Box 43010 101 Barclay Street - 7 West
Providence, RI 02940-3010 New York, NY 10286
Effective January 1, 2005, Terry K. Glenn, President and Director/Trustee
and M. Colyer Crum, Director/Trustee of MuniYield Florida Insured Fund,
MuniYield New Jersey Insured Fund, Inc. and MuniYield Pennsylvania Insured
Fund retired. The Funds' Board of Directors/Trustees wishes Mr. Glenn and
Professor Crum well in their retirements.
Effective January 1, 2005, Robert C. Doll, Jr. became President and
Director/Trustee of the Funds.
Investment Objectives
NYSE Symbol MuniYield Florida Insured Fund seeks to provide shareholders
MFT with as high a level of current income exempt from federal
income taxes as is consistent with its investment policies and
prudent investment management by investing primarily in a
portfolio of long-term, investment grade municipal obligations
the interest on which, in the opinion of bond counsel to the
issuer, is exempt from federal income taxes and which enables
shares of the Fund to be exempt from Florida intangible
personal property taxes.
NYSE Symbol MuniYield New Jersey Insured Fund, Inc. seeks to provide
MJI shareholders with as high a level of current income exempt
from federal income tax and New Jersey personal income taxes
as is consistent with its investment policies and prudent
investment management by investing primarily in a portfolio
of long-term municipal obligations the interest on which, in
the opinion of bond counsel to the issuer, is exempt from
federal income tax and New Jersey personal income taxes.
NYSE Symbol MuniYield Pennsylvania Insured Fund seeks to provide
MPA shareholders with as high a level of current income exempt from
federal and Pennsylvania income taxes as is consistent with its
investment policies and prudent investment management by
investing primarily in a portfolio of long-term municipal
obligations the interest on which, in the opinion of bond
counsel to the issuer, is exempt from federal and Pennsylvania
income taxes.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Availability of Quarterly Schedules of Investments
The Funds file their complete schedules of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third quarters
of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the
SEC's Web site at http://www.sec.gov. The Funds' Forms N-Q may also be
reviewed and copied at the SEC's Public Reference Room in Washington, DC.
Information on the operation of the Public Reference Room may be obtained
by calling 1-800-SEC-0330.
Electronic Delivery
The Funds offer electronic delivery of communications to their
shareholders. In order to receive this service, you must register your
account and provide us with e-mail information. To sign up for this
service, simply access this Web site at http://www.icsdelivery.com/live
and follow the instructions. When you visit this site, you will obtain a
personal identification number (PIN). You will need this PIN should you
wish to update your e-mail address, choose to discontinue this service
and/or make any other changes to the service. This service is not
available for certain retirement accounts at this time.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-
annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable to this
semi-annual report
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable to this semi-
annual report
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable to this semi-annual report
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - Not
Applicable
Item 11 - Controls and Procedures
11(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others
particularly during the period in which this report is being
prepared. The registrant's certifying officers have determined
that the registrant's disclosure controls and procedures are
effective based on our evaluation of these controls and procedures
as of a date within 90 days prior to the filing date of this
report.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal half-
year of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
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.
MuniYield Pennsylvania Insured Fund
By: /s/ Robert C. Doll, Jr.
-------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
MuniYield Pennsylvania Insured Fund
Date: June 20, 2005
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/ Robert C. Doll, Jr.
-------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
MuniYield Pennsylvania Insured Fund
Date: June 20, 2005
By: /s/ Donald C. Burke
-------------------------------
Donald C. Burke,
Chief Financial Officer of
MuniYield Pennsylvania Insured Fund
Date: June 20, 2005