UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-7080
Name of Fund: MuniYield Michigan Insured Fund, Inc.
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 Michigan Insured Fund, Inc., 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: 05/01/05 - 07/31/05
Item 1 - Schedule of Investments
MuniYield Michigan Insured Fund, Inc.
Schedule of Investments as of July 31, 2005 (in Thousands)
Face
Amount Municipal Bonds Value
Michigan - 154.3% Adrian, Michigan, City School District, GO (d):
$ 2,000 5% due 5/01/2029 $ 2,103
1,600 5% due 5/01/2034 1,677
1,000 Allegan, Michigan, Public School District, GO, 5.75% due 5/01/2010 (d)(e) 1,108
1,000 Ann Arbor, Michigan, Public School District, School Building and Site, GO, 5%
due 5/01/2027 1,054
Belding, Michigan, Area Schools, GO, Refunding (c):
785 6.05% due 5/01/2006 (e) 812
215 6.05% due 5/01/2021 222
1,000 Birmingham, Michigan, City School District, School Building and Site, GO, 5% due
11/01/2033 (d) 1,051
1,000 Central Montcalm, Michigan, Public Schools, GO, 5.90% due 5/01/2009 (b)(e) 1,096
Delta County, Michigan, Economic Development Corporation, Environmental Improvement
Revenue Refunding Bonds (Mead Westvaco-Escanaba) (e):
1,500 AMT, Series B, 6.45% due 4/15/2012 1,711
2,000 Series A, 6.25% due 4/15/2012 2,318
Detroit, Michigan, City School District, GO, Series A (e):
1,000 5.50% due 5/01/2012 (d) 1,115
2,300 (School Building and Site Improvement), 5.375% due 5/01/2013 (c) 2,570
Detroit, Michigan, GO (b):
1,400 5.50% due 4/01/2018 1,533
1,325 5.50% due 4/01/2020 1,447
Detroit, Michigan, Sewer Disposal Revenue Refunding Bonds, Senior Lien (d):
1,000 Series A, 5% due 7/01/2032 1,044
1,545 Series C, 5.25% due 7/01/2022 1,744
Portfolio Abbreviations
To simplify the listings of MuniYield Michigan Insured Fund, Inc.'s
portfolio holdings in the Schedule of Investments, we have abbreviated the
names of many of the securities according to the list below.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
GO General Obligation Bonds
HDA Housing Development Authority
RIB Residual Interest Bonds
MuniYield Michigan Insured Fund, Inc.
Schedule of Investments as of July 31, 2005 (concluded) (in Thousands)
Face
Amount Municipal Bonds Value
Michigan Detroit, Michigan, Water Supply System Revenue Bonds:
(concluded) $ 4,375 DRIVERS, Series 200, 8.856% due 7/01/2011 (c)(e)(i) $ 5,516
1,250 Senior Lien, Series A, 5.875% due 1/01/2010 (c)(e) 1,395
6,900 Senior Lien, Series A, 5% due 7/01/2034 (b) 7,207
14,790 Series B, 5.25% due 7/01/2032 (b) 15,827
3,970 Series B, 5% due 7/01/2034 (b) 4,147
1,415 Detroit, Michigan, Water Supply System, Revenue Refunding Bonds, 6.25% due
7/01/2012 (c)(h) 1,580
3,900 Dickinson County, Michigan, Economic Development Corporation, Environmental
Improvement Revenue Refunding Bonds (International Paper Company Project), Series A,
5.75% due 6/01/2016 4,301
3,100 Dickinson County, Michigan, Healthcare System, Hospital Revenue Refunding Bonds,
5.80% due 11/01/2024 (g) 3,261
1,610 East Grand Rapids, Michigan, Public School District, GO, 5.75% due 5/01/2009 (d)(e) 1,757
Eastern Michigan University Revenue Bonds, Series B (c):
1,500 5.60% due 6/01/2025 1,630
1,310 5.625% due 6/01/2030 1,425
1,025 Eastern Michigan University, Revenue Refunding Bonds, 6% due 6/01/2020 (a) 1,146
Eaton Rapids, Michigan, Public Schools, School Building and Site, GO (d):
1,325 5.25% due 5/01/2020 1,445
1,675 5.25% due 5/01/2021 1,823
1,700 5% due 5/01/2026 1,794
3,600 5% due 5/01/2029 3,785
Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley
Medical Center), Series A (g):
615 5.375% due 7/01/2020 633
1,375 6% due 7/01/2020 1,492
2,200 Fowlerville, Michigan, Community Schools, School District, GO, 5% due 5/01/2030 (c) 2,311
1,000 Frankenmuth, Michigan, School District, GO, 5.75% due 5/01/2010 (c)(e) 1,108
3,650 Gibraltar, Michigan, School District, School Building and Site, GO, 5% due
5/01/2028 (c) 3,840
1,100 Grand Blanc, Michigan, Community Schools, GO, 5.625% due 5/01/2020 (c) 1,220
Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A (a):
1,100 5.50% due 10/01/2019 1,224
1,500 5.50% due 10/01/2020 1,663
2,070 Grand Valley, Michigan, State University Revenue Bonds, 5.50% due 2/01/2018 (c) 2,339
8,425 Greater Detroit, Michigan, Resource Recovery Authority Revenue Bonds, DRIVERS,
Series 167, 9.85% due 12/13/2008 (a)(i) 10,022
Gull Lake, Michigan, Community School District, School Building and Site, GO (d):
2,000 5% due 5/01/2028 2,104
3,625 5% due 5/01/2030 3,808
4,775 Harper Woods, Michigan, City School District, School Building and Site, GO,
Refunding, 5% due 5/01/2034 (c) 5,006
9,325 Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(e) 10,436
3,990 Hudsonville, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2029 (d) 4,195
1,575 Jenison, Michigan, Public Schools, Building and Site, GO, 5.50% due 5/01/2019 (c) 1,743
6,850 Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility Revenue Refunding
Bonds (Bronson Methodist Hospital), 5.50% due 5/15/2028 (b) 7,236
4,000 Kent, Michigan, Hospital Finance Authority, Hospital Revenue Refunding Bonds
(Butterworth Hospital), Series A, 7.25% due 1/15/2013 (b) 4,655
Kent, Michigan, Hospital Finance Authority Revenue Bonds (Spectrum Health),
Series A (e):
1,000 5.50% due 7/15/2011 1,114
3,000 5.50% due 7/15/2011 (b) 3,342
1,510 Lansing, Michigan, Building Authority, GO, Series A, 5.375% due 6/01/2023 (b) 1,663
2,425 Mayville, Michigan, Community Schools, School Building and Site, GO, 5% due
5/01/2034 (c) 2,548
2,500 Mendon, Michigan, Community Schools, School Building and Site, GO, 5% due
5/01/2034 (c) 2,621
1,875 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Bonds
(Hillsdale College Project), 5% due 3/01/2035 1,930
2,250 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Refunding
Bonds (Hope College), Series A, 5.90% due 4/01/2032 2,389
Michigan Higher Education Facilities Authority, Revenue Refunding Bonds
(College for Creative Studies):
1,235 5.85% due 12/01/2022 1,275
1,145 5.90% due 12/01/2027 1,178
2,500 Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds, AMT,
Series XVII-B, 5.40% due 6/01/2018 (a) 2,590
1,065 Michigan Municipal Bond Authority Revenue Bonds (Local Government Loan Program),
Group A, 5.50% due 11/01/2020 (a) 1,159
Michigan Municipal Bond Authority, Revenue Refunding Bonds (Local Government Loan
Program), Series A:
150 6.50% due 11/01/2012 (b) 150
1,000 6% due 12/01/2013 (c) 1,023
7,000 6.125% due 12/01/2018 (c) 7,159
Michigan State Building Authority, Revenue Refunding Bonds:
2,500 (Facilities Program), Series I, 5.50% due 10/15/2018 (b) 2,758
3,000 (Facilities Program), Series II, 5% due 10/15/2029 (b) 3,146
11,140 RIB, Series 517X, 8.41% due 10/15/2010 (d)(i) 13,507
Michigan State, COP (a):
3,000 5.40%** due 6/01/2022 1,393
3,000 5.50% due 6/01/2027 3,236
1,605 Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series A, 5.30% due
10/01/2037 (b) 1,635
2,690 Michigan State, HDA, Revenue Refunding Bonds, Series C, 5.90% due 12/01/2015 (f) 2,793
2,530 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mid-Michigan
Obligation Group), Series A, 5.50% due 4/15/2018 (a) 2,736
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds:
2,200 (Crittenton Hospital), Series A, 5.625% due 3/01/2027 2,346
2,000 (Sparrow Obligation Group), 5.625% due 11/15/2031 2,112
Michigan State Hospital Finance Authority, Revenue Refunding Bonds:
6,225 5% due 11/15/2036 (b) 6,510
2,715 (Ascension Health Credit), Series A, 5.75% due 11/15/2009 (b)(e) 3,006
12,000 (Ascension Health Credit), Series A, 6.125% due 11/15/2009 (b)(e) 13,466
2,500 (Ascension Health Credit), Series A, 6.25% due 11/15/2009 (b)(e) 2,818
4,805 (Mercy Health Services), Series T, 6.50% due 8/15/2007 (b)(e) 5,159
2,000 (Mercy Health Services), Series X, 6% due 8/15/2014 (b) 2,202
2,200 (Mercy Health Services), Series X, 5.75% due 8/15/2019 (b) 2,397
4,930 (Mercy-Mount Clemens), Series A, 6% due 5/15/2014 (b) 5,407
3,000 (Saint John Hospital), Series A, 6% due 5/15/2013 (a)(h) 3,202
6,400 (Trinity Health), Series A, 6% due 12/01/2027 (a) 7,186
1,000 (Trinity Health Credit), Series C, 5.375% due 12/01/2023 1,060
5,255 (Trinity Health Credit), Series C, 5.375% due 12/01/2030 5,543
5,000 Michigan State Strategic Fund, Limited Obligation Revenue Bonds (Ford Motor Company
Project), AMT, Series A, 6.55% due 10/01/2022 5,000
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds:
7,250 (Detroit Edison Company), AMT, Series A, 5.55% due 9/01/2029 (b) 7,691
6,000 (Detroit Edison Company Fund - Pollution), Series AA, 6.95% due 5/01/2011 (c) 7,020
3,300 (Detroit Edison Pollution Control), Series C, 5.45% due 9/01/2029 3,460
2,175 (Dow Chemical Company Project), AMT, 5.50% due 12/01/2028 2,344
5,750 RIB, Series 382, 10.16% due 9/01/2025 (b)(i) 6,014
15,000 Monroe County, Michigan, Economic Development Corp., Limited Obligation Revenue
Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.95% due 9/01/2022 (c) 19,758
1,000 Montrose Township, Michigan, School District, GO, 6.20% due 5/01/2017 (b) 1,201
1,830 Muskegon Heights, Michigan, Water System Revenue Bonds, Series A, 5.625% due
11/01/2025 (b) 2,004
235 Northview, Michigan, Public School District, GO, Refunding, 5.80% due 5/01/2021 (b) 242
1,100 Norway Vulcan, Michigan, Area Schools, GO, 5.90% due 5/01/2009 (c)(e) 1,208
5,320 Orchard View, Michigan, Schools, School Building and Site, GO, 5% due 5/01/2029 (b) 5,580
4,835 Ostego, Michigan, Public Schools District, School Building and Site, GO, 5% due
5/01/2034 (d) 5,069
2,425 Oxford, Michigan, Area Community School District, GO, 5.50% due 11/01/2011 (d)(e) 2,677
1,370 Pennfield, Michigan, School District, School Building and Site, GO, 5% due
5/01/2029 (c) 1,440
1,000 Plainwell, Michigan, Community Schools, School District, School Building and Site,
GO, 5.50% due 11/01/2012 (d)(e) 1,121
3,905 Plymouth-Canton, Michigan, Community School District, GO, 5% due 5/01/2029 (c) 4,105
700 Pontiac, Michigan, Tax Increment Finance Authority, Revenue Refunding Bonds
(Development Area Number 2), 5.625% due 6/01/2022 (g) 740
1,425 Reed, Michigan, City Public Schools, School Building and Site, GO, 5% due 5/01/2026 (d) 1,503
2,500 Saginaw, Michigan, Hospital Finance Authority, Revenue Refunding Bonds (Covenant
Medical Center), Series E, 5.625% due 7/01/2013 (b) 2,714
Saginaw Valley State University, Michigan, General Revenue Refunding Bonds (c):
2,100 5% due 7/01/2024 2,224
1,445 5% due 7/01/2034 1,516
8,900 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison
Company), RIB, Series 282, 10.16% due 8/01/2024 (a)(i) 10,816
1,300 Southfield, Michigan, Library Building Authority, GO, 5.50% due 5/01/2010 (b)(e) 1,426
Southfield, Michigan, Public Schools, School Building and Site, GO, Series B (d):
2,900 5.25% due 5/01/2027 3,128
3,500 5% due 5/01/2029 3,680
1,325 Sparta, Michigan, Area Schools, School Building and Site, GO, 5% due 5/01/2030 (c) 1,392
2,700 Sturgis, Michigan, Public School District, GO, Refunding, 5% due 5/01/2030 (c) 2,849
1,775 Tecumseh, Michigan, Public Schools, GO, Refunding, 5.125% due 5/01/2030 (c) 1,891
1,100 Waverly, Michigan, Community School, GO, 5.50% due 5/01/2010 (c)(e) 1,207
10,660 Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan Wayne
County), AMT, Series A, 5.375% due 12/01/2015 (b) 11,275
1,750 Wayne Charter County, Michigan, Detroit Metropolitan Airport, GO, Airport Hotel,
Series A, 5% due 12/01/2030 (b) 1,826
Wayne County, Michigan, Airport Authority Revenue Bonds (Detroit Metropolitan Wayne
County Airport), AMT (b):
7,525 5.25% due 12/01/2025 8,038
6,300 5.25% due 12/01/2026 6,719
6,000 5% due 12/01/2034 6,221
West Bloomfield, Michigan, School District, GO Refunding (c):
1,710 5.50% due 5/01/2017 1,895
1,225 5.50% due 5/01/2018 1,356
2,405 West Branch-Rose City, Michigan, Area School District, GO, 5.50% due 5/01/2009 (c)(e) 2,603
6,075 Western Michigan University Revenue Bonds, 5% due 11/15/2035 (c) 6,397
1,600 Zeeland, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (b) 1,682
Puerto Rico - 4.5% Puerto Rico Commonwealth, Infrastructure Financing Authority, Special Tax and Capital
Appreciation Revenue Bonds, Series A:
4,600 4.680%** due 7/01/2031 (c) 1,386
11,700 4.657%** due 7/01/2036 (a) 2,769
1,270 Puerto Rico Electric Power Authority, Power Revenue Bonds, Trust Receipts, Class R,
Series 16 HH, 8.804% due 7/01/2013 (d)(i) 1,576
3,790 Puerto Rico Municipal Finance Agency Revenue Bonds, Series A, 5% due 8/01/2027 (d) 3,994
1,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds,
Series E, 5.70% due 2/01/2010 (e) 1,101
2,150 University of Puerto Rico, University Revenue Refunding Bonds, Series O, 5.375%
due 6/01/2030 (b) 2,175
Total Municipal Bonds (Cost - $411,076) - 154.3% 441,471
Shares
Held Short-Term Securities
1,502 CMA Michigan Municipal Money Fund (j) 1,502
Total Short-Term Securities (Cost - $1,502) - 0.5% 1,502
Total Investments (Cost - $412,578*) - 154.8% 442,973
Other Assets Less Liabilities - 2.9% 8,151
Preferred Stock, at Redemption Value - (57.7%) (165,028)
-----------
Net Assets Applicable to Common Stock - 100.0% $ 286,096
===========
* The cost and unrealized appreciation (depreciation) of investments as of July 31, 2005,
as computed for federal income tax purposes, were as follows:
(in Thousands)
Aggregate cost $ 412,578
===============
Gross unrealized appreciation $ 30,791
Gross unrealized depreciation (396)
---------------
Net unrealized appreciation $ 30,395
===============
** Represents a zero coupon bond; the interest rate shown reflects the effective
yield at the time of purchase.
(a) AMBAC Insured.
(b) MBIA Insured.
(c) FGIC Insured.
(d) FSA Insured.
(e) Prerefunded.
(f) FHA Insured.
(g) ACA Insured.
(h) Escrowed to maturity.
(i) The rate disclosed is that currently in effect. This rate changes periodically
and inversely based upon prevailing market rates.
(j) Investments in companies considered to be an affiliate of the Fund, for purposes of
Section 2 (a)(3) of the Investment Company Act of 1940, were as follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
CMA Michigan Municipal Money Fund (5,688) $ 17
Forward interest rate swaps outstanding as of July 31, 2005 were as follows:
(in Thousands)
Notional Unrealized
Amount Appreciation
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate and
pay a fixed rate of 3.647%
Broker, JPMorgan Chase Bank
Expires October 2015 $21,500 $ 34
Item 2 - Controls and Procedures
2(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.
2(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 quarter
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 3 - Exhibits
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 Michigan Insured Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer
MuniYield Michigan Insured Fund, Inc.
Date: September 23, 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
MuniYield Michigan Insured Fund, Inc.
Date: September 23, 2005
By: /s/ Donald C. Burke
-----------------------
Donald C. Burke,
Chief Financial Officer
MuniYield Michigan Insured Fund, Inc.
Date: September 23, 2005