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: 10/31/06
Date of reporting period: 11/01/05 - 04/30/06
Item 1 - Report to Stockholders
Semi-Annual Reports
April 30, 2006
MuniYield Florida Insured Fund
MuniYield New Jersey Insured Fund, Inc.
MuniYield Pennsylvania Insured Fund
(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 1-800-637-3863; (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
Announcement to Shareholders
On February 15, 2006, BlackRock, Inc. ("BlackRock") and Merrill Lynch & Co.,
Inc. ("Merrill Lynch") entered into an agreement to contribute Merrill Lynch's
investment management business, Merrill Lynch Investment Managers, L.P. and
certain affiliates (including Fund Asset Management, L.P. and Merrill Lynch
Investment Managers International Limited), to BlackRock to create a new
independent company that will be one of the world's largest asset management
firms with over $1 trillion in assets under management (based on combined
assets under management as of March 31, 2006). The transaction is expected to
close in the third quarter of 2006, at which time the new company will operate
under the BlackRock name. The Fund's Board of Directors/Trustees has approved
a new investment advisory agreement with BlackRock Advisors, Inc. or its
successor ("BlackRock Advisors") on substantially the same terms and for the
same advisory fee as the current investment advisory agreement with the
Investment Advisor. If the agreement is approved by the Fund's shareholders,
BlackRock Advisors is expected to become the Fund's investment adviser upon
the closing of the transaction between Merrill Lynch and BlackRock.
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.
SEMI-ANNUAL REPORTS APRIL 30, 2006
A Letter From the President
Dear Shareholder
You may be aware that changes are on the horizon at Merrill Lynch Investment
Managers ("MLIM"). On February 15, 2006, Merrill Lynch announced plans to
combine the firm's investment advisory business, including MLIM, with another
highly regarded investment manager - BlackRock, Inc. ("BlackRock").
We believe this merger of asset management strength will benefit our
investors. MLIM is a leading investment management organization with over
$576 billion in assets under management globally and 2,757 employees in
17 countries. It offers over 100 investment strategies in vehicles ranging
from mutual funds to institutional portfolios. BlackRock is one of the
largest publicly traded investment management firms in the United States
with $463.1 billion in assets under management and 1,839 employees. It
manages assets on behalf of institutional and individual investors worldwide
through a variety of equity, fixed income, liquidity and alternative
investment products.
At the completion of the transaction, which is expected in the third quarter
of this year, the resultant firm will be a top-10 investment manager worldwide
with over $1 trillion in assets under management.* The combined company will
provide a wider selection of high-quality investment solutions across a
range of asset classes and investment styles. MLIM and BlackRock possess
complementary capabilities that together create a well-rounded organization
uniting some of the finest money managers in the industry. At the same time,
the firms share similar values and beliefs - they are focused on delivering
excellence on behalf of clients, and both make investment performance their
single most important mission. In short, the merger only reinforces our
commitment to shareholders.
Most of MLIM's investment products - including mutual funds, separately
managed accounts, annuities and variable insurance funds - eventually will
carry the "BlackRock" name. As a shareholder in one or more MLIM-advised
mutual funds, you will receive a proxy package in the coming weeks in
connection with this transaction. After you receive this information, should
you have any questions or concerns, do not hesitate to contact your financial
advisor.
As always, we thank you for entrusting us with your investment assets, and we
look forward to continuing to serve your investment needs with even greater
strength and scale as the new BlackRock.
Sincerely,
(Robert C. Doll, Jr.)
Robert C. Doll, Jr.
President and Chief Investment Officer
Merrill Lynch Investment Managers
* $1.039 trillion in assets under management as of March 31, 2006.
Data, including assets under management, are as of March 31, 2006.
SEMI-ANNUAL REPORTS APRIL 30, 2006
A Discussion With Your Funds' Portfolio Managers
New municipal issuance declined during the six-month period, helping tax-
exempt bonds to outperform their taxable counterparts but also limiting
opportunities to restructure the portfolios.
Describe the recent market environment relative to municipal bonds.
Long-term bond yields rose sharply during the six-month period, with much of
the increase occurring in March and April 2006. Bond prices, which move
opposite of yields, declined. Bond prices were pressured as investors focused
on solid economic growth, both globally and in the United States, and renewed
inflationary pressures deriving from rising commodity prices. First quarter
2006 gross domestic product growth was recently estimated at 4.8%, well above
the 1.7% rate recorded in the fourth quarter of 2005.
The Federal Reserve Board (the Fed) continued to raise short-term interest
rates at each of its meetings during the period, bringing the federal funds
target rate to 4.75% at period-end, and to 5% with another interest rate hike
on May 10, 2006. In response, the Treasury curve continued to flatten, with
short-term interest rates rising more than longer-term interest rates. Over
the past six months, 30-year U.S. Treasury bond yields rose 41 basis points
(.41%) to 5.17% and 10-year U.S. Treasury note yields rose 50 basis points to
5.07%, the highest level since May 2002.
While the municipal yield curve also flattened during the period, the market's
strong technical position provided significant price support. This allowed
municipal bond prices to improve slightly or decline much less than those of
their taxable counterparts. As measured by Municipal Market Data, yields on
AAA-rated issues maturing in 30 years fell six basis points to 4.53% while
yields on AAA-rated issues maturing in 10 years rose 16 basis points to 4.08%.
For the most part, the recent outperformance of the tax-exempt market has been
fostered by a dramatic decline in new bond issuance so far in 2006. In 2005,
more than $408 billion in new long-term tax-exempt bonds was underwritten, a
new annual record and an increase of more than 13% compared to 2004. Over the
past six months, $170 billion in long-term municipal bonds was issued, a
decline of 8.6% versus the same period a year earlier. The record new issuance
in 2005 was largely triggered by a 47% increase in refunding activity as
issuers took advantage of historically low bond yields and a flattening yield
curve to refinance outstanding higher-couponed debt. Year-to-date through
April 2006, refunding issuance declined more than 55% relative to the first
four months of 2005. This decline already has led some analysts to reduce
their forecasts for 2006 new issuance from the $350 billion - $370 billion
range to the $300 billion - $325 billion range. Lower annual issuance would
further solidify the tax-exempt market's already positive technical position.
The tax-exempt market has continued to enjoy strong investor demand. As
reported by the Investment Company Institute, long-term municipal bond funds
received net new monies of $5.0 billion in 2005 - a sharp reversal from the
$3.7 billion outflow in 2004. During the first quarter of 2006, tax-exempt
mutual funds received over $9.3 billion, slightly higher than the $8.9 billion
inflow during the same period in 2005. Recent statistics from AMG Data
Services indicate that, thus far in 2006, weekly cash flows into long-term
municipal bond funds averaged over $300 million, a significant improvement
from the weekly average of $65 million in December 2005.
Looking ahead, the fundamentals for the tax-exempt bond market appear
favorable, and continued positive cash flows are anticipated. Given their
attractive yields relative to comparable U.S. Treasury bonds, and the
prospects for reduced issuance in 2006, we believe municipal bonds could enjoy
solid results in the coming months.
MuniYield Florida Insured Fund
Describe conditions in the State of Florida.
Florida's economy has outperformed that of both the nation and other southern
states, and appears likely to continue this trend in the foreseeable future.
The state's mix of solid demographics and increasing job growth among
diversified industries is expected to continue to encourage migration into
Florida. Although national economic trends have put pressure on the state, we
believe Florida is well positioned given its record of proactive management
and financial flexibility.
The state's enacted fiscal year 2005-2006 budget is $64.7 billion, an increase
of 12% from the prior year. The budget reflects a combination of spending
constraints, with spending below anticipated personal income growth, and
increased revenue growth. Of the increased revenue, not all is expected to be
permanent, as some stems primarily from the reconstruction and replacement of
property destroyed by hurricanes and, therefore, is not recurring.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Fiscal discipline has afforded the state the opportunity to provide tax relief
in the form of tax-free shopping days, reduced sales tax on equipment, tax
credits and a phaseout of the intangible tax. Three areas of the budget
account for 93% of the total expenditures - education at 52%, health and human
services at 26% and public safety at 15%. Revenues for the first four months
of the fiscal year were $602 million, 14% higher than the same period in the
prior fiscal year.
How did the Fund perform during the period?
For the six-month period ended April 30, 2006, the Common Shares of MuniYield
Florida Insured Fund had net annualized yields of 5.19% and 5.49%, based on a
period-end per share net asset value of $14.57 and a per share market price of
$13.77, respectively, and $.375 per share income dividends. Over the same
period, the total investment return on the Fund's Common Shares was +1.70%,
based on a change in per share net asset value from $14.72 to $14.57, and
assuming reinvestment of all distributions.
The Fund's return, based on net asset value, lagged the +2.16% 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). For the most part, performance
was impacted as the yield curve flattened and short and intermediate
maturities underperformed. We had exposure to these sectors through bonds that
had been prerefunded - thereby transforming several of our longer-dated issues
into intermediate-maturity issues - and higher-coupon bonds priced to a short
call. Despite their underperformance on a total return basis, these bonds were
acquired in a higher interest rate environment and, as such, contribute
meaningfully to the Fund's yield. This supports our long-term commitment to
providing shareholders with an attractive level of income and allowed the Fund
to maintain an above-average yield versus its peers.
To a lesser extent, the Fund's total return performance was affected by its
conservative investment parameters. This prohibited us from investing in
non-investment grade issues, which outperformed the high-grade market as
credit spreads narrowed during the period.
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 alter our strategy or make meaningful changes to the portfolio's
composition during the six-month 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 remained fully invested throughout the period in
order to augment yield.
In making new purchases, we generally focused on premium-coupon bonds in the
20-year - 25-year maturity range whenever they became available, although we
did begin to see value in the 15-year area of the curve and continue to
explore opportunities there. Given the extent of the curve flattening, spreads
are appearing wider now in the 20-year sector of the curve, so we are able to
capture some of the most attractive yields on the curve without having to
extend to the longest maturities.
Issuance of Florida municipal bonds increased less than 3% during the period
compared to the same period six months a year ago. However, new issuance in
the latter three months was down 32% compared to the same three months in
2005. The reduction in supply has meant few opportunities to restructure
the portfolio. For the most part, we are seeing supply concentrated in the
15-year - 20-year area, most of these being insured issues with 4% to 4.5%
coupons. We remain committed to structuring bonds with 5% to 5.25% coupons,
although the cost for new issues with these characteristics has been
prohibitive.
SEMI-ANNUAL REPORTS APRIL 30, 2006
A Discussion With Your Funds' Portfolio Managers (continued)
For the six-month period ended April 30, 2006, the Fund's Auction Market
Preferred Shares (AMPS) had average yields of 2.96% for Series A and 3.04% for
Series B. The Fed raised the short-term interest rate target 100 basis points
during the six-month period, and this continued to affect the Fund's borrowing
costs. We would expect additional increases in the cost of funds to be more
limited as the Fed nears a pause in its monetary tightening campaign. Despite
the interest rate increases during the period, the tax-exempt yield curve
maintained a positive slope, allowing us to borrow at a lower rate than where
we invest. This 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 leveraging 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 36.90% of total net assets, before the deduction of Preferred
Shares. (For a more complete explanation of the benefits and risks of
leveraging, see page 10 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
We would characterize the Fund's position as fairly neutral in terms of
interest rate risk. At period-end, we were looking to increase the portfolio's
exposure to bonds in the 10-year - 20-year maturity range, where we see value
emerging. Given the degree of yield-curve flattening that has occurred over
the course of the Fed's interest rate-hiking campaign, we believe this
maturity range could be ready to outperform.
We remain fully invested, consistent with our efforts to augment shareholder
income, and intend to use periods of volatility to pursue higher-coupon bonds
whenever they are attractively priced.
MuniYield New Jersey Insured Fund, Inc.
Describe conditions in the State of New Jersey.
In the November elections, New Jersey Democrats retained control of the state
senate and assembly, as well as the governor's office. Former New Jersey
senator Jon Corzine was elected the state's 54th governor and immediately
faced the challenges of the fiscal year 2007 budget, including funding the
public pension system, replenishing the Transportation Trust Fund and
complying with court-mandated school construction spending.
The resulting $31 billion budget proposed by the governor provided for a
$2.6 billion increase in overall spending and called for a 1% sales tax hike
and a 35-cent per-pack cigarette tax increase. Surprisingly, no gasoline tax
increase was included, although a higher percentage of the existing tax is
slated to be applied to the ailing Transportation Trust Fund. Even so, that
leaves the bulk of the state's transportation needs to be funded by $6 billion
in new debt that will be issued over the next five years, as well as the
refinancing of $1.7 billion in existing debt.
Although this proposed budget is in balance for fiscal year 2007, New Jersey
still faces a structural deficit of $1.5 billion heading into fiscal year
2008. From a credit-rating perspective, a positive in the governor's proposal
is its reduced reliance on one-time revenues to balance the budget. Relatively
late in the period, New Jersey issued an additional $650 million worth of tax
and revenue anticipation notes, which were given the highest short-term credit
ratings from the major rating agencies and were well received by the market.
How did the Fund perform during the period?
For the six-month period ended April 30, 2006, the Common Stock of MuniYield
New Jersey Insured Fund, Inc. had net annualized yields of 4.91% and 4.98%,
based on a period-end per share net asset value of $14.90 and a per share
market price of $14.70, respectively, and $.363 per share income dividends.
Over the same period, the total investment return on the Fund's Common Stock
was +1.39%, based on a change in per share net asset value from $15.07 to
$14.90, and assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, trailed the +2.43%
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.)
Notably, the Fund was disadvantaged relative to many of its peers by its
conservative investment parameters. Specifically, the Fund is limited in its
ability to invest in lower-quality issues, which outperformed during the
period as credits spreads (versus higher-quality issues of comparable
maturity) tightened dramatically. Per its investment parameters, roughly 83%
of the portfolio is invested in AAA-rated, insured bonds.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Another factor that weighed heavily on the Fund's performance was the fact
that a number of seasoned holdings with higher coupons were called by their
issuers. Given our limited ability to buy lower-rated issues and a sharp
decline in new-issue supply during the period, particularly in the first
quarter of 2006, it was especially difficult to compensate for the income lost
to calls.
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?
Activity during the period was extremely limited, due in large part to a lack
of opportunities in both the primary and secondary markets, particularly in
the latter half of the period. For the six months ended April 30, 2006, New
Jersey municipal bond supply was down 48% compared to the same period a
year ago. Notwithstanding the limitations imposed by the market and our own
investment parameters, we felt that the portfolio was appropriately positioned
for the yield curve flattening that we had anticipated, and we saw little need
to make significant changes.
A number of factors have combined to sharply reduce the overall supply of
municipal issues in the early months of 2006. The low interest rate
environment of 2005 may have exhausted much of the potential new-issue supply,
and with interest rates having risen somewhat over the past few months, some
issuers may have been discouraged from coming to market. Looking ahead,
though, the proposed 2007 budget includes $6 billion of new debt to be issued
for the Transportation Trust Fund over five years. As of this writing, the
first installment of $2.8 billion is scheduled to be issued in May 2006 and
includes refinancing for $1.7 billion of existing debt.
For the six-month period ended April 30, 2006, the Fund's Auction Market
Preferred Stock (AMPS) had average yields of 2.70% for Series A and 2.72% for
Series B. The Fed raised the short-term interest rate target 100 basis points
during the six-month period, and this continued to affect the Fund's borrowing
costs. We would expect additional increases in the cost of funds to be more
limited as the Fed nears a pause in its monetary tightening campaign. Despite
the interest rate increases during the period, the tax-exempt yield curve
maintained a positive slope, allowing us to borrow at a lower rate than where
we invest. This 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 35.92% of total net assets, before the deduction of Preferred Stock.
(For a more complete explanation of the benefits and risks of leveraging, see
page 10 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
Throughout the period, the Fund remained relatively neutral with respect to
interest rate risk, and with a high-quality credit profile. Our yield curve
outlook has changed in response to recent speculation that the Fed may be
closer to the end of its monetary tightening program. Therefore, we believe
the majority of the curve flattening is behind us and we are in the early
stages of reducing our exposure to the long end of the curve. We now see the
most attractive value closer to the middle of the curve, around the 10-year -
15-year range. While we believe there is still some risk of further Fed
tightening, the markets tend to anticipate and react to those moves before
the fact, so we prefer to be at the front end of that trend.
SEMI-ANNUAL REPORTS APRIL 30, 2006
A Discussion With Your Funds' Portfolio Managers (concluded)
MuniYield Pennsylvania Insured Fund
Describe conditions in the Commonwealth of Pennsylvania.
Pennsylvania continued to protect its credit ratings of Aa2, 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. Following a difficult period at the start of the
decade, the commonwealth's finances have improved and stabilized. Through
March, revenue collections for fiscal year 2006 were $505.4 million, or 2.8%
above initial estimates, largely thanks to strong corporate and personal
income tax collection.
Property-tax reform continues to be a key topic on the legislative agenda.
Pennsylvania's House and Senate have put forth competing bills, with the House
seeking larger property tax reductions through new state taxes for schools and
the Senate proposing smaller property tax cuts that hinge largely on gambling
tax revenue and voter-approved local wage tax shifts. The two chambers will
try to negotiate a compromise that can pass both assemblies for a final
decision by Governor Edward Rendell. With a gubernatorial election this
November, it seems unlikely that the governor will increase personal income
tax rates without the more tangible benefits of property tax reform.
Broad-based job growth continues to be a favorable trend in the commonwealth.
For the first quarter of 2006, employment was up 1.2%, slightly below the
national growth rate of 1.5%. Pennsylvania's unemployment rate was 4.5% in
March 2006, down from 5.2% in March 2005. Personal income growth of 1.5% in
the Keystone State trailed the U.S. average growth rate of 2.3% in the last
quarter of 2005, but overall reflects a wealth level on par with the nation.
How did the Fund perform during the period?
For the six-month period ended April 30, 2006, the Common Shares of MuniYield
Pennsylvania Insured Fund had net annualized yields of 5.24% and 5.50%, based
on a period-end per share net asset value of $15.48 and a per share market
price of $14.73, respectively, and $.402 per share income dividends. Over the
same period, the total investment return on the Fund's Common Shares was
+2.13%, based on a change in per share net asset value from $15.57 to $15.48,
and assuming reinvestment of all distributions.
The Fund provided an above-average yield during the six-month period and its
total return, based on net asset value, surpassed the +1.95% average return of
the Lipper Pennsylvania Municipal Debt Funds category. (Funds in this Lipper
category limit their investment to those securities exempt from taxation in
Pennsylvania or a city in Pennsylvania.)
The Fund's outperformance is primarily attributed to positive security
selection. Pennsylvania's municipal bond issuance fell 38% in the first
quarter of 2006, more than that experienced by the broader municipal market.
Despite the limited investment opportunities, the Fund was able to realize
price outperformance from its portfolio of high-quality Pennsylvania municipal
bonds. Furthermore, the Fund's slightly longer maturity compared to its peers
proved advantageous, as it allowed the portfolio to maintain an above-average
yield, which added to incremental total return. As the yield curve continued
to flatten over the six-month period, long-term bonds outperformed short-term
issues, and our focus on this sector 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?
As mentioned previously, new issuance of Pennsylvania debt declined
significantly, with new issues of 25-year - 30-year bonds bordering on
non-existent over the period. As a result, we made no material changes
to the structure and composition of the portfolio.
SEMI-ANNUAL REPORTS APRIL 30, 2006
We maintained our focus on protecting the Fund's net asset value and providing
shareholders with an above-average level of income. To that end, we continued
to target additional yield by investing in longer-dated bonds. The Fund
continued to have a slightly long duration. Although we did seek to move the
Fund closer to a neutral duration during the period, limited availability of
appropriately structured issues precluded our efforts.
Importantly, the Fund was essentially fully invested throughout the period,
consistent with our goal of maintaining an attractive level of income.
For the six-month period ended April 30, 2006, the Fund's Auction Market
Preferred Shares (AMPS) had average yields of 2.87% for Series A, 2.80% for
Series B and 2.91% for Series C. The Fed's interest rate hikes continue to
have 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.
We would expect additional increases in the cost of funds to be more limited
as the Fed nears a pause in its monetary tightening campaign. Despite the
interest rate increases during the period, the tax-exempt yield curve
maintained a positive slope, allowing us to borrow at a lower rate than where
we invest. This 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
leveraging 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 36.47% of total net assets, before the deduction of Preferred
Shares. (For a more complete explanation of the benefits and risks of
leveraging, see page 10 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
We ended the period with a fully invested portfolio and a positive stance on
interest rate risk. We maintain a favorable outlook for the municipal market,
based on declining issuance and increasing demand on the part of high net
worth investors, U.S. subsidiaries of foreign banks and larger U.S. banking
corporations that have merged and are seeking tax-exempt income.
After 16 consecutive interest rate hikes, we believe the Fed is prepared to
pause in order to assess the impact that its measured monetary tightening
campaign has had on economic growth and inflation. However, if there are
additional rate increases, we would expect the municipal yield curve to
steepen in the short term, particularly relative to the very flat U.S.
Treasury yield curve, which should continue to provide attractive
opportunities on the long end.
Against this backdrop, we intend to continue to look for maturities in the
25-year area and favor a neutral to slightly long portfolio duration, which
we believe offers the benefit of incremental yield. We remain committed to
our strategy of investing in high-quality bonds issued by high-tax states.
Ultimately, we expect that above-average yields will provide competitive Fund
returns over time.
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 24, 2006
SEMI-ANNUAL REPORTS APRIL 30, 2006
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, 2006, 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 5.89%, 9.03% and 12.06%,
respectively, before the deduction of Preferred Shares or Stock.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Portfolio Information
Quality Profiles as of April 30, 2006
Percent of
MuniYield Florida Insured Fund Total
By S&P/Moody's Rating Investments
AAA/Aaa 90.8%
AA/Aa 1.0
A/A 4.6
BBB/Baa 1.6
Other* 2.0
* Includes portfolio holdings in short-term investments and
variable rate demand notes.
Percent of
MuniYield New Jersey Insured Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 83.0%
AA/Aa 3.6
A/A 3.6
BBB/Baa 9.3
Other* 0.5
* Includes portfolio holdings in short-term investments.
Percent of
MuniYield Pennsylvania Insured Fund Total
By S&P/Moody's Rating Investments
AAA/Aaa 82.5%
AA/Aa 3.0
A/A 2.5
BBB/Baa 8.4
NR 2.9
Other* 0.7
* Includes portfolio holdings in short-term investments.
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, 2006
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) $ 1,028
Florida--145.0%
1,300 Alachua County, Florida, School Board, COP, 5.25%
due 7/01/2029 (a) 1,370
700 Boynton Beach, Florida, Utility System Revenue
Refunding Bonds, 6.25% due 11/01/2020 (b)(c) 814
1,720 Broward County, Florida, Educational Facilities
Authority Revenue Bonds (Nova Southeastern
University), 5% due 4/01/2031 (p) 1,774
3,445 Collier County, Florida, Capital Improvement Revenue
Refunding Bonds, 5% due 10/01/2024 (h) 3,582
1,000 Daytona Beach, Florida, Utility System Revenue
Refunding Bonds, Series B, 5% due 11/15/2027 (c) 1,028
2,110 First Florida Governmental Financing Commission
Revenue Bonds, 5.70% due 7/01/2017 (h) 2,177
1,000 Flagler County, Florida, Capital Improvement Revenue
Bonds, 5% due 10/01/2035 (h) 1,033
1,150 Florida HFA, Housing Revenue Bonds (Brittany
Rosemont Apartments), AMT, Series C-1, 6.75%
due 8/01/2014 (a) 1,162
430 Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Refunding Bonds, AMT, Series 4,
6.25% due 7/01/2022 (f) 439
2,000 Florida State Board of Education, Capital Outlay, GO,
Public Education, Series B, 5% due 6/01/2031 (c) 2,054
6,190 Florida State Board of Education, Lottery Revenue
Bonds, Series A, 6% due 7/01/2015 (c) 6,766
1,000 Florida State Governmental Utility Authority, Utility
Revenue Bonds (Lehigh Utility System), 5.125%
due 10/01/2033 (a) 1,037
1,860 Florida State Turnpike Authority, Turnpike Revenue
Bonds (Department of Transportation), Series B, 5%
due 7/01/2030 1,895
1,400 Fort Myers, Florida, Utility System Revenue Refunding
Bonds, 5% due 10/01/2031 (h) 1,452
3,000 Hernando County, Florida, School Board, COP, 5%
due 7/01/2035 (h) 3,090
(In Thousands)
Face
Amount Municipal Bonds Value
Florida (continued)
$ 3,700 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series A, 6% due 11/15/2011 (i) $ 4,113
1,780 Hillsborough County, Florida, Port District Revenue
Bonds (Tampa Port Authority Project), AMT, 5%
due 6/01/2026 (h) 1,817
Hillsborough County, Florida, School Board, COP (h):
6,000 5.375% due 7/01/2009 (i) 6,289
1,000 5% due 7/01/2029 1,025
2,000 Jacksonville Electric Authority, Florida, Water and
Sewer System Revenue Bonds, Series A, 5.375%
due 10/01/2030 (h) 2,026
Jacksonville, Florida, Economic Development
Commission, Health Care Facilities Revenue Bonds
(Mayo Clinic--Jacksonville) (h):
1,000 Series A, 5.50% due 11/15/2036 1,072
750 Series B, 5.50% due 11/15/2036 804
1,140 Jacksonville, Florida, Economic Development
Commission, IDR (Metropolitan Parking Solutions
Project), AMT, 5.50% due 10/01/2030 (l) 1,188
1,455 Jacksonville, Florida, Guaranteed Entitlement
Revenue Refunding and Improvement Bonds, 5.25%
due 10/01/2032 (c) 1,526
Jacksonville, Florida, Port Authority, Seaport Revenue
Bonds, AMT (h):
1,025 5.625% due 11/01/2010 (i) 1,092
1,225 5.625% due 11/01/2026 1,292
2,000 Lakeland, Florida, Electric and Water Revenue
Refunding Bonds, Series A, 5% due 10/01/2028 (h) 2,046
1,000 Lee County, Florida, Airport Revenue Bonds, AMT,
Series A, 6% due 10/01/2029 (f) 1,076
2,285 Lee County, Florida, Capital Revenue Bonds, 5.25%
due 10/01/2023 (a) 2,439
50 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) 51
100 Lee County, Florida, Hospital Board of Directors,
Hospital Revenue Bonds (Memorial Health System),
VRDN, Series A, 3.76% due 4/01/2025 (n) 100
1,000 Leesburg, Florida, Capital Improvement Revenue
Bonds, 5.25% due 10/01/2034 (c) 1,059
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedules 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
DATES Daily Adjustable Tax-Exempt Securities
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, 2006
Schedule of Investments (continued) MuniYield Florida Insured Fund
(In Thousands)
Face
Amount Municipal Bonds Value
Florida (continued)
Marco Island, Florida, Utility System Revenue
Bonds (h):
$ 300 5.25% due 10/01/2021 $ 320
1,000 5% due 10/01/2033 1,029
1,000 Martin County, Florida, Utilities System Revenue
Bonds, 5.125% due 10/01/2033 (a) 1,036
2,000 Miami Beach, Florida, Water and Sewer Revenue
Bonds, 5.75% due 9/01/2025 (a) 2,160
Miami-Dade County, Florida, Aviation Revenue
Bonds, AMT, Series A:
7,500 5% due 10/01/2033 (f) 7,594
5,000 (Miami International Airport), 6%
due 10/01/2024 (c) 5,402
3,875 Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport), AMT,
Series A, 5% due 10/01/2038 (m) 3,936
2,000 Miami-Dade County, Florida, Educational Facilities
Authority Revenue Bonds (University of Miami),
Series A, 5.75% due 4/01/2029 (a) 2,148
Miami-Dade County, Florida, Expressway Authority,
Toll System Revenue Bonds, Series B (c):
1,000 5.25% due 7/01/2027 1,060
3,875 5% due 7/01/2033 3,990
3,480 Miami-Dade County, Florida, Health Facilities
Authority, Hospital Revenue Refunding Bonds,
DRIVERS, Series 208, 7.124% due 8/15/2017 (a)(k) 3,977
1,655 Miami-Dade County, Florida, IDA, IDR (BAC
Funding Corporation Project), Series A, 5.375%
due 10/01/2030 (a) 1,753
2,000 Miami-Dade County, Florida, School Board COP,
Series A, 5.50% due 10/01/2009 (f)(i) 2,111
1,865 Miami-Dade County, Florida, Solid Waste System
Revenue Bonds, 5.25% due 10/01/2030 (h) 1,983
Miami-Dade County, Florida, Subordinate Special
Obligation Revenue Bonds, Series A (h)(q):
4,375 5.186% due 10/01/2031 1,130
5,735 5.203% due 10/01/2033 1,332
4,765 Orange County, Florida, Educational Facilities
Authority, Educational Facilities Revenue Refunding
Bonds (Rollins College Project), 5.50%
due 12/01/2032 (a) 5,120
Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds:
600 (Adventist Health System), 6.25%
due 11/15/2024 656
1,835 (Orlando Regional Healthcare), 6%
due 12/01/2012 (i) 2,049
1,000 Orange County, Florida, Sales Tax Revenue Refunding
Bonds, Series A, 5.125% due 1/01/2023 (c) 1,049
6,500 Orange County, Florida, School Board, COP, Series A,
5.25% due 8/01/2009 (h)(i) 6,854
5,330 Orange County, Florida, Tourist Development, Tax
Revenue Bonds, 5.50% due 10/01/2032 (a) 5,688
(In Thousands)
Face
Amount Municipal Bonds Value
Florida (continued)
Orlando and Orange County, Florida, Expressway
Authority Revenue Bonds, Series B (a):
$ 4,000 5% due 7/01/2030 $ 4,111
6,815 5% due 7/01/2035 6,996
1,530 Osceola County, Florida, Infrastructure Sales Surplus
Tax Revenue Bonds, 5.25% due 10/01/2025 (a) 1,613
2,000 Osceola County, Florida, School Board, COP, Series A,
5.25% due 6/01/2027 (a) 2,101
1,100 Osceola County, Florida, Tourist Development Tax
Revenue Bonds, Series A, 5.50% due 10/01/2027 (c) 1,178
1,500 Palm Beach County, Florida, Criminal Justice Facilities
Revenue Bonds, 7.20% due 6/01/2015 (c) 1,838
2,000 Palm Beach County, Florida, School Board, COP,
Refunding, Series D, 5.25% due 8/01/2021 (f) 2,110
5,000 Palm Beach County, Florida, School Board, COP,
Series A, 6% due 8/01/2010 (c)(i) 5,477
1,000 Palm Coast, Florida, Utility System Revenue Bonds,
5% due 10/01/2027 (h) 1,028
1,500 Panama City, Florida, Water and Sewer Revenue
Bonds, Series B, 5.25% due 10/01/2022 (h) 1,599
1,000 Peace River/Manasota Regional Water Supply
Authority, Florida, Utility System Revenue Bonds,
Series A, 5% due 10/01/2030 (f) 1,035
1,000 Pembroke Pines, Florida, Public Improvement Revenue
Bonds, Series A, 5% due 10/01/2034 (a) 1,030
200 Pinellas County, Florida, Health Facilities Authority,
Revenue Refunding Bonds (Pooled Hospital Loan
Program), DATES, VRDN, 3.74% due 12/01/2015 (a)(n) 200
Polk County, Florida, Public Facilities Revenue
Bonds (h):
1,000 5% due 12/01/2025 1,040
1,340 5% due 12/01/2033 1,383
1,000 Polk County, Florida, Utility System Revenue Bonds,
5.25% due 10/01/2022 (c) 1,063
1,055 Port St. Lucie, Florida, Utility Revenue Bonds, 5.25%
due 9/01/2024 (h) 1,122
1,400 Saint Johns County, Florida, Sales Tax Revenue Bonds,
Series A, 5.25% due 10/01/2031 (a) 1,479
1,000 Saint Lucie, Florida, West Services District, Utility
Revenue Bonds, 5.25% due 10/01/2034 (h) 1,064
1,000 Santa Rosa County, Florida, School Board, COP,
DRIVERS, Series 1293Z, 6.38% due 2/01/2014 (c)(k) 1,123
2,000 South Broward, Florida, Hospital District
Revenue Bonds, DRIVERS, Series 337, 7.129%
due 5/01/2032 (h)(k) 2,308
1,000 South Lake County, Florida, Hospital District
Revenue Bonds (South Lake Hospital Inc.), 5.80%
due 10/01/2034 1,032
1,240 Stuart, Florida, Public Utilities Revenue Refunding
and Improvement Bonds, 5.25% due 10/01/2024 (c) 1,318
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (concluded) MuniYield Florida Insured Fund
(In Thousands)
Face
Amount Municipal Bonds Value
Florida (concluded)
$ 2,280 University of Central Florida (UCF) Athletics
Association Inc., COP, Series A, 5.25%
due 10/01/2034 (c) $ 2,394
Village Center Community Development District,
Florida, Recreational Revenue Bonds, Series A (h):
1,640 5.375% due 11/01/2034 1,761
1,000 5.125% due 11/01/2036 1,042
Village Center Community Development District,
Florida, Utility Revenue Bonds (h):
2,585 5.25% due 10/01/2023 2,740
4,030 5.125% due 10/01/2028 4,191
Volusia County, Florida, IDA, Student Housing
Revenue Bonds (Stetson University Project),
Series A (m):
1,000 5% due 6/01/2025 1,040
1,000 5% due 6/01/2035 1,032
Maryland--0.9%
1,000 Baltimore, Maryland, Convention Center
Hotel Revenue Bonds, Senior Series A, 5.25%
due 9/01/2039 (o) 1,055
New Jersey--1.7%
2,000 New Jersey EDA, Cigarette Tax Revenue Bonds,
5.50% due 6/15/2024 2,071
(In Thousands)
Face
Amount Municipal Bonds Value
Puerto Rico--6.8%
$ 1,970 Puerto Rico Electric Power Authority, Power
Revenue Bonds, Series II, 5.375%
due 7/01/2019 (h) $ 2,122
1,000 Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds, Series I, 5%
due 7/01/2036 1,007
1,145 Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series E, 5.70% due 2/01/2010 (i) 1,223
3,550 Puerto Rico Public Finance Corporation Revenue
Refunding Bonds, RIB, Series 522X, 6.71%
due 8/01/2022 (h)(k) 4,083
Total Municipal Bonds
(Cost--$183,747)--155.2% 191,102
Shares
Held Short-Term Securities
3,615 CMA Florida Municipal Money Fund 3.14% (j)(r) 3,615
Total Short-Term Securities
(Cost--$3,615)--2.9% 3,615
Total Investments (Cost--$187,362*)--158.1% 194,717
Other Assets Less Liabilities--0.4% 460
Preferred Shares, at Redemption Value--(58.5%) (72,041)
---------
Net Assets Applicable to Common Shares--100.0% $ 123,136
=========
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2006, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 187,289
===============
Gross unrealized appreciation $ 7,704
Gross unrealized depreciation (276)
---------------
Net unrealized appreciation $ 7,428
===============
(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) 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:
Net Dividend
Affiliate Activity Income
Merrill Lynch Institutional Tax-Exempt Fund (2,600) --*
CMA Florida Municipal Money Fund 3,615 $16
* Amount is less than $1,000.
(k) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(l) ACA Insured.
(m) CIFG Insured.
(n) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(o) XL Capital Insured.
(p) Assured Guaranty Insured.
(q) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(r) Represents the current yield as of 4/30/2006.
o Forward interest rate swaps outstanding as of April 30, 2006
were as follows:
Notional Unrealized
Amount Appreciation
Pay a fixed rate of 3.976% and
receive a floating rate based on
1-week USD Bond Market
Association rate
Broker, JPMorgan Chase Bank
Expires May 2021 $ 5,500 $ 143
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments MuniYield New Jersey Insured Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
New Jersey--140.2%
$ 1,000 Delaware River and Bay Authority Revenue Bonds,
New Jersey and Delaware, 5% due 1/01/2033 (e) $ 1,027
Delaware River Joint Toll Bridge Commission,
New Jersey and Pennsylvania, Bridge Revenue
Refunding Bonds:
1,875 5% due 7/01/2023 1,926
1,000 5% due 7/01/2028 1,020
2,500 Delaware River Port Authority of Pennsylvania and
New Jersey Revenue Bonds, RIB, Series 396, 7.903%
due 1/01/2019 (d)(i) 2,857
540 Essex County, New Jersey, Improvement Authority
Revenue Bonds, Series A, 5% due 10/01/2028 (c) 556
6,925 Garden State Preservation Trust of New Jersey,
Capital Appreciation Revenue Bonds, Series B, 5.12%
due 11/01/2023 (d)(k) 2,987
Garden State Preservation Trust of New Jersey, Open
Space and Farmland Preservation Revenue Bonds,
Series A (d):
2,605 5.80% due 11/01/2022 2,944
3,300 5.75% due 11/01/2028 3,864
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 2,161
1,000 Hudson County, New Jersey, COP, Refunding, 6.25%
due 12/01/2016 (e) 1,158
8,250 Hudson County, New Jersey, Improvement Authority,
Facility Lease Revenue Refunding Bonds (Hudson
County Lease Project), 5.375% due 10/01/2024 (c) 8,594
8,080 Jackson Township, New Jersey, School District, GO,
5% due 4/15/2012 (c)(h) 8,570
3,750 Jersey City, New Jersey, Sewer Authority, Sewer
Revenue Refunding Bonds, 6.25% due 1/01/2014 (a) 4,203
3,000 Middlesex County, New Jersey, COP, Refunding, 5%
due 8/01/2022 (e) 3,091
Monmouth County, New Jersey, Improvement
Authority, Governmental Loan Revenue Bonds (a):
735 5.20% due 12/01/2014 776
2,305 5.25% due 12/01/2015 2,439
Monmouth County, New Jersey, Improvement
Authority, Governmental Loan Revenue Refunding
Bonds (a):
1,695 5% due 12/01/2017 1,767
1,520 5% due 12/01/2018 1,583
1,540 5% due 12/01/2019 1,604
New Jersey EDA, Cigarette Tax Revenue Bonds:
1,060 5.625% due 6/15/2019 1,111
785 5.75% due 6/15/2029 829
225 5.50% due 6/15/2031 233
465 5.75% due 6/15/2034 489
1,000 New Jersey EDA, First Mortgage Revenue Bonds
(Fellowship Village), Series C, 5.50% due 1/01/2028 1,002
(In Thousands)
Face
Amount Municipal Bonds Value
New Jersey (continued)
$ 1,700 New Jersey EDA, First Mortgage Revenue Refunding
Bonds (Fellowship Village), Series A, 5.50%
due 1/01/2018 $ 1,721
New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A (e):
3,325 4.95% due 7/01/2021 (k) 1,617
3,900 5% due 7/01/2029 4,021
8,500 5.25% due 7/01/2033 8,997
1,765 5% due 7/01/2034 1,818
New Jersey EDA, School Facilities Construction
Revenue Bonds:
3,390 Series F, 5% due 6/15/2013 (c)(h) 3,609
3,500 Series L, 5% due 3/01/2030 (d) 3,621
1,340 Series O, 5.25% due 3/01/2023 1,420
New Jersey EDA, School Facilities Construction,
Revenue Refunding Bonds, Series K:
2,000 5.25% due 12/15/2016 (a) 2,162
6,500 5.25% due 12/15/2017 (c) 7,020
5,070 New Jersey EDA, Water Facilities Revenue Bonds
(New Jersey--American Water Company, Inc.
Project), Series A, 6.875% due 11/01/2034 (c) 5,134
New Jersey Health Care Facilities Financing Authority,
Revenue Bonds:
2,100 (RWJ Healthcare Corporation), Series B, 5%
due 7/01/2035 (f) 2,132
1,125 (Somerset Medical Center), 5.50% due 7/01/2033 1,142
4,000 (South Jersey Hospital), 6% due 7/01/2026 4,232
New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds:
615 (Atlantic City Medical Center), 6.25%
due 7/01/2017 677
1,315 (Atlantic City Medical Center), 5.75%
due 7/01/2025 1,393
2,425 (Holy Name Hospital), 6% due 7/01/2025 2,501
2,250 (Meridian Health System Obligation Group),
5.25% due 7/01/2019 (d) 2,348
New Jersey Sports and Exposition Authority, Luxury
Tax Revenue Refunding Bonds (Convention Center) (e):
2,000 5% due 9/01/2017 2,060
1,540 5.50% due 3/01/2021 1,721
1,000 5.50% due 3/01/2022 1,123
3,200 New Jersey State Educational Facilities Authority,
Higher Education, Capital Improvement Revenue
Bonds, Series A, 5.125% due 9/01/2022 (a) 3,357
New Jersey State Educational Facilities Authority
Revenue Bonds (Rowan University), Series C (e):
1,315 5.125% due 7/01/2028 1,374
1,185 5% due 7/01/2034 1,222
New Jersey State Educational Facilities Authority,
Revenue Refunding Bonds:
3,185 (Montclair State University), Series L, 5%
due 7/01/2034 (e) 3,285
555 (Rowan University), Series C, 5%
due 7/01/2031 (c) 569
1,725 (William Paterson University), Series E, 5%
due 7/01/2021 (g) 1,788
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (continued) MuniYield New Jersey Insured Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
New Jersey (continued)
$ 3,500 New Jersey State, GO, Refunding, Series H, 5.25%
due 7/01/2015 (d) $ 3,788
5,350 New Jersey State Higher Education Assistance
Authority, Student Loan Revenue Bonds, AMT,
Series A, 5.30% due 6/01/2017 (a) 5,392
4,425 New Jersey State Housing and Mortgage Financing
Agency, Capital Fund Program Revenue Bonds,
Series A, 4.70% due 11/01/2025 (d) 4,431
3,150 New Jersey State Housing and Mortgage Finance
Agency, Home Buyer Revenue Bonds, AMT, Series CC,
5.80% due 10/01/2020 (e) 3,261
2,780 New Jersey State Housing and Mortgage Financing
Agency, M/F Revenue Bonds, AMT, Series A, 4.90%
due 11/01/2035 (c) 2,745
5,570 New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds, Series D, 5%
due 6/15/2019 (d) 5,815
3,600 New Jersey State Transportation Trust Fund
Authority, Transportation System Revenue
Refunding Bonds, Series B, 5.50%
due 12/15/2021 (e) 4,031
3,005 New Jersey State Turnpike Authority, Turnpike
Revenue Bonds, Series B, 5.15%
due 1/01/2035 (a)(k) 1,974
1,835 New Jersey State Turnpike Authority, Turnpike
Revenue Refunding Bonds, Series C-1, 4.50%
due 1/01/2031 (a) 1,784
1,000 Port Authority of New York and New Jersey,
Consolidated Revenue Bonds, 93rd Series, 6.125%
due 6/01/2094 1,166
4,075 Port Authority of New York and New Jersey, Revenue
Bonds, Trust Receipts, AMT, Class R, Series 10,
7.61% due 1/15/2017 (d)(i) 4,268
3,180 Port Authority of New York and New Jersey,
Revenue Refunding Bonds, DRIVERS, AMT,
Series 153, 6.338% due 9/15/2012 (c)(i) 3,273
4,100 Rahway Valley Sewerage Authority, New Jersey,
Sewer Revenue Bonds (Capital Appreciation),
Series A, 4.74% due 9/01/2026 (e)(k) 1,501
2,200 South Jersey Port Corporation of New Jersey,
Revenue Refunding Bonds, 5% due 1/01/2023 2,251
1,715 Tobacco Settlement Financing Corporation of
New Jersey, Asset-Backed Revenue Bonds, 7%
due 6/01/2041 1,941
(In Thousands)
Face
Amount Municipal Bonds Value
New Jersey (concluded)
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 $ 1,639
1,670 5.375% due 6/01/2018 1,721
University of Medicine and Dentistry, New Jersey,
Revenue Bonds, Series A (a):
570 5.50% due 12/01/2018 615
1,145 5.50% due 12/01/2019 1,235
1,130 5.50% due 12/01/2020 1,219
865 5.50% due 12/01/2021 931
Puerto Rico--12.6%
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds:
1,500 Series J, 5% due 7/01/2029 (e) 1,553
1,380 Series K, 5% due 7/01/2045 1,377
Puerto Rico Electric Power Authority, Power Revenue
Bonds:
1,830 Series HH, 5.25% due 7/01/2029 (d) 1,928
2,000 Series RR, 5% due 7/01/2028 (b) 2,070
1,500 Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series PP, 5% due 7/01/2025 (c) 1,560
2,110 Puerto Rico Industrial, Tourist, Educational, Medical
and Environmental Control Facilities Revenue
Bonds (Ascension Health), RIB, Series 377, 8.16%
due 11/15/2030 (i) 2,476
5,250 Puerto Rico Public Buildings Authority Revenue Bonds,
DRIVERS, Series 211, 6.807% due 7/01/2021 (e)(i) 5,596
Total Municipal Bonds
(Cost--$193,378)--152.8% 200,396
Shares
Held Short-Term Securities
1,144 CMA New Jersey Municipal Money Fund, 2.99% (j)(l) 1,144
Total Short-Term Securities
(Cost--$1,144)--0.9% 1,144
Total Investments (Cost--$194,522*)--153.7% 201,540
Other Assets Less Liabilities--2.4% 3,138
Preferred Stock, at Redemption Value--(56.1%) (73,543)
----------
Net Assets Applicable to Common Stock--100.0% $ 131,135
==========
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (concluded) MuniYield New Jersey Insured Fund, Inc.
(In Thousands)
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2006, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 194,277
===============
Gross unrealized appreciation $ 7,941
Gross unrealized depreciation (678)
---------------
Net unrealized appreciation $ 7,263
===============
(a) AMBAC Insured.
(b) CIFG Insured.
(c) FGIC Insured.
(d) FSA Insured.
(e) MBIA Insured.
(f) Radian Insured.
(g) XL Capital Insured.
(h) Prerefunded.
(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:
Net Dividend
Affiliate Activity Income
CMA New Jersey Municipal Money Fund 629 $26
(k) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(l) Represents the current yield as of 4/30/2006.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments MuniYield Pennsylvania Insured Fund
(In Thousands)
Face
Amount Municipal Bonds Value
Pennsylvania--140.8%
$ 3,285 Abington, Pennsylvania, School District, GO, Series A,
5% due 4/01/2032 (e) $ 3,390
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) 2,380
5,000 Allegheny County, Pennsylvania, Sanitation Authority,
Sewer Revenue Refunding Bonds, Series A, 5%
due 12/01/2030 (f) 5,177
4,000 Commonwealth Financing Authority, Pennsylvania,
Revenue Bonds, Series A, 5% due 6/01/2025 (e) 4,171
5,500 Delaware County, Pennsylvania, IDA Revenue Bonds
(Pennsylvania Suburban Water Company Project),
AMT, Series A, 5.15% due 9/01/2032 (a) 5,648
4,770 Delaware County, Pennsylvania, IDA, Water Facilities
Revenue Refunding Bonds (Aqua Pennsylvania Inc.
Project), AMT, Series B, 5% due 11/01/2036 (c) 4,861
1,500 Delaware Valley, Pennsylvania, Regional Finance
Authority, Local Government Revenue Bonds, 5.75%
due 7/01/2032 1,687
5,000 Erie County, Pennsylvania, Convention Center
Authority, Convention Center Hotel Revenue Bonds,
5% due 1/15/2036 (c) 5,131
7,000 Erie County, Pennsylvania, Hospital Authority
Revenue Bonds (Hamot Health Foundation), 5%
due 11/01/2035 (d) 7,183
4,000 Gettysburg, Pennsylvania, Municipal Authority,
College Revenue Refunding Bonds, 5%
due 8/15/2023 (f) 4,117
4,000 Lancaster County, Pennsylvania, Hospital Authority
Revenue Bonds (Lancaster General Hospital Project),
5.50% due 3/15/2026 4,144
3,000 Lehigh County, Pennsylvania, General Purpose
Authority, Hospital Revenue Refunding Bonds (Saint
Lukes Hospital of Bethlehem), 5.375% due 8/15/2033 3,075
5,000 Lehigh County, Pennsylvania, IDA, PCR, Refunding
(Pennsylvania Power and Light Utilities Corporation
Project), Series A, 4.70% due 9/01/2029 (c) 4,919
3,500 Luzerne County, Pennsylvania, IDA, Water Facility
Revenue Refunding Bonds, RIB, AMT, Series 1170,
6.10% due 9/01/2034 (a)(h) 3,650
2,675 North Allegheny, Pennsylvania, School District, GO,
Series C, 5.25% due 5/01/2027 (e) 2,829
5,000 Northampton Borough, Pennsylvania,
Municipal Authority, Water Revenue Bonds, 5%
due 5/15/2034 (f) 5,133
(In Thousands)
Face
Amount Municipal Bonds Value
Pennsylvania (continued)
$ 6,000 Northumberland County, Pennsylvania, IDA,
Water Facilities Revenue Refunding Bonds
(Aqua Pennsylvania Inc. Project), AMT, 5.05%
due 10/01/2039 (c) $ 6,111
3,055 Pennsbury, Pennsylvania, School District, GO,
Refunding, 5.50% due 1/15/2020 (c) 3,286
1,200 Pennsylvania Economic Development Financing
Authority, Solid Waste Disposal Revenue Bonds
(Waste Management Inc. Project), AMT, Series A,
5.10% due 10/01/2027 1,199
2,500 Pennsylvania HFA, Revenue Bonds, DRIVERS, AMT,
Series 1248Z, 6.349% due 10/01/2009 (f)(h) 2,589
2,400 Pennsylvania HFA, S/F Mortgage Revenue Refunding
Bonds, AMT, Series 92-A, 4.75% due 4/01/2031 2,332
1,200 Pennsylvania State Higher Educational Facilities
Authority, College and University Revenue Bonds
(Ursinus College), 5% due 1/01/2036 (i) 1,220
Pennsylvania State Higher Educational Facilities
Authority, Revenue Bonds:
3,000 (UPMC Health System), Series A, 6%
due 1/15/2022 3,239
4,305 (York College of Pennsylvania Project), Series EE1,
5% due 11/01/2033 (g) 4,413
2,000 Pennsylvania State Higher Educational Facilities
Authority, Revenue Refunding Bonds (University
Properties, Inc., Student Housing Project), Series A,
5% due 8/01/2035 (d) 2,048
7,000 Pennsylvania State IDA, EDR, Refunding, 5.50%
due 7/01/2020 (a) 7,572
Pennsylvania State Public School Building Authority,
Revenue Bonds (Lehigh Career and Technical
Institute) (c):
3,085 5.125% due 10/01/2028 3,197
2,000 5.25% due 10/01/2032 2,097
Pennsylvania State Public School Building Authority,
School and Capital Appreciation Revenue Bonds
(Corry Area School District) (e)(k):
1,980 4.85% due 12/15/2022 881
1,980 5.167% due 12/15/2023 839
1,980 5.489% due 12/15/2024 798
1,980 5.825% due 12/15/2025 759
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 10,591
10,300 5% due 6/01/2033 10,534
7,500 Pennsylvania State Public School Building Authority,
School Revenue Bonds, DRIVERS, Series 371,
6.368% due 6/01/2011 (e)(h) 8,278
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (continued) MuniYield Pennsylvania Insured Fund
(In Thousands)
Face
Amount Municipal Bonds Value
Pennsylvania (continued)
$ 7,500 Pennsylvania State Turnpike Commission, Oil
Franchise Tax Revenue Bonds, DRIVERS, Series 366,
6.868% due 6/01/2011 (f)(h) $ 8,667
3,900 Pennsylvania State Turnpike Commission, Turnpike
Revenue Bonds, DRIVERS, Series 460-Z, 6.868%
due 6/01/2012 (a)(h) 4,572
8,000 Philadelphia, Pennsylvania, Airport Revenue Bonds,
Series A, AMT, 4.75% due 6/15/2035 (f) 7,802
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 4,231
3,655 5.50% due 7/01/2018 3,866
Philadelphia, Pennsylvania, Authority for Industrial
Development, Lease Revenue Bonds:
9,125 (City of Philadelphia Project), Series A, 5.375%
due 2/15/2027 (f) 9,402
3,000 Series B, 5.50% due 10/01/2020 (e) 3,226
4,680 Series B, 5.50% due 10/01/2021 (e) 5,013
10,000 Philadelphia, Pennsylvania, Gas Works Revenue
Bonds, 1998 General Ordinance, 4th Series, 5%
due 8/01/2032 (e) 10,225
3,000 Philadelphia, Pennsylvania, Hospitals and Higher
Education Facilities Authority, Hospital Revenue
Refunding Bonds (Presbyterian Medical Center),
6.65% due 12/01/2019 (b) 3,569
3,000 Philadelphia, Pennsylvania, Housing Authority
Revenue Bonds (Capital Fund Program), Series A,
5.50% due 12/01/2018 (e) 3,213
4,645 Philadelphia, Pennsylvania, Qualified Redevelopment
Authority Revenue Bonds, AMT, Series B, 5%
due 4/15/2027 (c) 4,719
1,750 Philadelphia, Pennsylvania, Redevelopment Authority
Revenue Bonds (Neighborhood Transformation),
Series A, 5.50% due 4/15/2022 (c) 1,867
Philadelphia, Pennsylvania, School District, GO (c):
5,000 RIB, Series 677, 7.18% due 8/01/2021 (h) 5,965
5,000 Series D, 5.125% due 6/01/2034 5,160
4,000 Series D, 5.25% due 6/01/2034 4,201
5,890 Pittsburgh, Pennsylvania, Water and Sewer Authority,
Water and Sewer System Revenue Bonds, First Lien,
5% due 9/01/2033 (f) 6,071
6,000 Reading, Pennsylvania, School District, GO, 5%
due 1/15/2029 (e) 6,210
(In Thousands)
Face
Amount Municipal Bonds Value
Pennsylvania (concluded)
$ 2,600 Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Refunding Bonds (Guthrie Healthcare
System), Series A, 5.875% due 12/01/2031 $ 2,749
Southeastern Pennsylvania Transportation Authority,
Special Revenue Bonds (c):
4,500 5.375% due 3/01/2017 4,644
2,525 5.375% due 3/01/2022 2,605
2,570 Westmoreland County, Pennsylvania, Municipal
Authority, Municipal Service Revenue Bonds, 5.25%
due 8/15/2028 (e) 2,725
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) 2,547
Puerto Rico--13.7%
10,000 Puerto Rico Commonwealth, Public Improvement,
GO, Series A, 5% due 7/01/2034 10,083
5,000 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series RR, 5% due 7/01/2027 (g) 5,186
Puerto Rico Public Buildings Authority,
Government Facilities Revenue Refunding
Bonds, Series I:
2,500 5.50% due 7/01/2025 2,669
5,000 5.375% due 7/01/2034 5,249
1,000 Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series E, 5.50% due 8/01/2029 1,048
Total Municipal Bonds
(Cost--$268,774)--155.9% 276,962
Shares
Held Short-Term Securities
1,839 CMA Pennsylvania Municipal Money Fund, 3.10% (j)(l) 1,839
Total Short-Term Securities
(Cost--$1,839)--1.0% 1,839
Total Investments (Cost--$270,613*)--156.9% 278,801
Other Assets Less Liabilities--0.5% 941
Preferred Shares, at Redemption Value--(57.4%) (102,046)
----------
Net Assets Applicable to Common Shares--100.0% $ 177,696
==========
SEMI-ANNUAL REPORTS APRIL 30, 2006
Schedule of Investments (concluded) MuniYield Pennsylvania Insured Fund
(In Thousands)
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2006, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 270,545
===============
Gross unrealized appreciation $ 9,181
Gross unrealized depreciation (925)
---------------
Net unrealized appreciation $ 8,256
===============
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) CIFG Insured.
(e) FSA Insured.
(f) MBIA Insured.
(g) XL Capital Insured.
(h) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(i) Radian Insured.
(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:
Net Dividend
Affiliate Activity Income
CMA Pennsylvania Municipal Money Fund (875) $23
(k) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(l) Represents the current yield as of 4/30/2006.
o Forward interest rate swaps outstanding as of April 30, 2006
were as follows:
Notional Unrealized
Amount Depreciation
Pay a fixed rate of 4.365% and
receive a floating rate based on
1-week USD Bond Market
Association rate
Broker, JPMorgan Chase Bank
Expires July 2026 $ 32,000 $ --++
++ Amount is less than $1,000.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Statements of Net Assets
MuniYield MuniYield MuniYield
Florida New Jersey Pennsylvania
Insured Insured Insured
As of April 30, 2006 Fund Fund, Inc. Fund
Assets
Investments in unaffiliated securities, at value* $ 191,101,602 $ 200,395,597 $ 276,961,845
Investments in affiliated securities, at value** 3,614,895 1,144,545 1,838,638
Unrealized appreciation on forward interest rate swaps 143,451 -- --
Cash 29,261 95,352 24,302
Interest receivable 2,257,236 3,256,843 3,978,592
Receivable for securities sold -- -- 520,143
Prepaid expenses 5,565 5,271 6,796
--------------- --------------- ---------------
Total assets 197,152,010 204,897,608 283,330,316
--------------- --------------- ---------------
Liabilities
Unrealized depreciation on forward interest rate swaps -- -- 224
Payable for securities purchased 1,822,400 -- 3,318,678
Dividends payable to Common Stock/Shareholders 31,902 103,372 104,722
Payable to investment adviser 74,182 78,018 106,278
Payable to other affiliates 1,344 2,509 3,418
Accrued expenses 44,450 36,087 54,722
--------------- --------------- ---------------
Total liabilities 1,974,278 219,986 3,588,042
--------------- --------------- ---------------
Preferred Stock/Shares
Preferred Stock/Shares, at redemption value, of AMPS+++ at
$25,000 per share liquidation preference++*** 72,041,293 73,542,768 102,045,880
--------------- --------------- ---------------
Net Assets Applicable to Common Stock/Shares
Net assets applicable to Common Stock/Shares $ 123,136,439 $ 131,134,854 $ 177,696,394
=============== =============== ===============
Analysis of Net Assets Applicable to Common Stock/Shares
Undistributed investment income--net $ 894,415 $ 1,204,259 $ 735,562
Accumulated realized capital losses--net (3,677,135) (1,224,072) (2,308,158)
Unrealized appreciation--net 7,497,570 7,017,893 8,187,131
--------------- --------------- ---------------
Total accumulated earnings--net 4,714,850 6,998,080 6,614,535
--------------- --------------- ---------------
Common Stock/Shares, par value $.10 per share++++ 845,181 880,210 1,148,057
Paid-in capital in excess of par 117,576,408 123,256,564 169,933,802
--------------- --------------- ---------------
Net Assets $ 123,136,439 $ 131,134,854 $ 177,696,394
=============== =============== ===============
Net asset value per share of Common Stock/Shares $ 14.57 $ 14.90 $ 15.48
=============== =============== ===============
Market Price $ 13.77 $ 14.70 $ 14.73
=============== =============== ===============
* Identified cost on unaffiliated securities $ 183,747,483 $ 193,377,704 $ 268,774,490
=============== =============== ===============
** Identified cost on affiliated securities $ 3,614,895 $ 1,144,545 $ 1,838,638
=============== =============== ===============
*** 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 8,451,814 8,802,099 11,480,567
=============== =============== ===============
+++ Auction Market Preferred Stock/Shares.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
Statements of Operations
MuniYield MuniYield MuniYield
Florida New Jersey Pennsylvania
Insured Insured Insured
For the Six Months Ended April 30, 2006 Fund Fund, Inc. Fund
Investment Income
Interest $ 4,789,164 $ 5,089,373 $ 6,760,504
Dividends from affiliates 15,505 26,381 23,325
--------------- --------------- ---------------
Total income 4,804,669 5,115,754 6,783,829
--------------- --------------- ---------------
Expenses
Investment advisory fees 487,388 512,332 698,395
Commission fees 95,668 93,761 133,015
Accounting services 43,942 44,289 54,794
Transfer agent fees 20,963 26,832 33,695
Professional fees 26,948 26,675 29,010
Printing and shareholder reports 10,710 10,364 14,028
Directors'/Trustees' fees and expenses 13,865 13,532 13,771
Listing fees 8,561 8,394 8,453
Pricing fees 7,505 6,807 5,695
Custodian fees 7,058 6,696 8,706
Other 20,738 21,528 25,664
--------------- --------------- ---------------
Total expenses before reimbursement 743,346 771,210 1,025,226
Reimbursement of expenses (3,006) (4,903) (4,821)
--------------- --------------- ---------------
Total expenses after reimbursement 740,340 766,307 1,020,405
--------------- --------------- ---------------
Investment income--net 4,064,329 4,349,447 5,763,424
--------------- --------------- ---------------
Realized and Unrealized Gain (Loss)--Net
Realized gain (loss) on:
Investments--net (350,153) 337,858 407,897
Forward interest rate swaps--net (213,955) 71,694 1,224,073
--------------- --------------- ---------------
Total realized gain (loss) (564,108) 409,552 1,631,970
--------------- --------------- ---------------
Change in unrealized appreciation/depreciation on:
Investments--net (496,567) (1,938,447) (1,489,390)
Forward interest rate swaps--net (10,701) (46,507) (770,676)
--------------- --------------- ---------------
Total change in unrealized appreciation/depreciation (507,268) (1,984,954) (2,260,066)
--------------- --------------- ---------------
Total realized and unrealized loss--net (1,071,376) (1,575,402) (628,096)
--------------- --------------- ---------------
Dividends to Preferred Stock/Shareholders
Investment income--net (1,060,348) (987,285) (1,439,448)
--------------- --------------- ---------------
Net Increase in Net Assets Resulting from Operations $ 1,932,605 $ 1,786,760 $ 3,695,880
=============== =============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
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: 2006 2005
Operations
Investment income--net $ 4,064,329 $ 8,290,264
Realized gain (loss)--net (564,108) 1,562,411
Change in unrealized appreciation--net (507,268) (4,777,919)
Dividends to Preferred Shareholders (1,060,348) (1,442,962)
--------------- ---------------
Net increase in net assets resulting from operations 1,932,605 3,631,794
--------------- ---------------
Dividends to Common Shareholders
Investment income--net (3,245,367) (7,564,939)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Shareholders (3,245,367) (7,564,939)
--------------- ---------------
Share Transactions
Value of shares issued to Common Shareholders in reinvestment of dividends 27,237 144,662
Offering and underwriting costs resulting from the issuance of Preferred Shares -- (244,177)
--------------- ---------------
Net increase (decrease) in net assets derived from share transactions 27,237 (99,515)
--------------- ---------------
Net Assets Applicable to Common Shares
Total decrease in net assets applicable to Common Shares (1,285,525) (4,032,660)
Beginning of period 124,421,964 128,454,624
--------------- ---------------
End of period* $ 123,136,439 $ 124,421,964
=============== ===============
* Undistributed investment income--net $ 894,415 $ 1,135,801
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
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: 2006 2005
Operations
Investment income--net $ 4,349,447 $ 8,428,036
Realized gain--net 409,552 2,729,125
Change in unrealized appreciation/depreciation--net (1,984,954) (5,148,576)
Dividends to Preferred Stock shareholders (987,285) (1,395,905)
--------------- ---------------
Net increase in net assets resulting from operations 1,786,760 4,612,680
--------------- ---------------
Dividends to Common Stock Shareholders
Investment income--net (3,274,381) (8,036,760)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Stock shareholders (3,274,381) (8,036,760)
--------------- ---------------
Stock Transactions
Value of shares issued to Common Stock shareholders in reinvestment of dividends -- 675,155
Adjustment of offering costs resulting from the issuance of Preferred Stock -- 1,285
--------------- ---------------
Net increase in net assets derived from stock transactions -- 676,440
--------------- ---------------
Net Assets Applicable to Common Stock
Total decrease in net assets applicable to Common Stock (1,487,621) (2,747,640)
Beginning of period 132,622,475 135,370,115
--------------- ---------------
End of period* $ 131,134,854 $ 132,622,475
=============== ===============
* Undistributed investment income--net $ 1,204,259 $ 1,116,478
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
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: 2006 2005
Operations
Investment income--net $ 5,763,424 $ 12,056,700
Realized gain--net 1,631,970 4,069,175
Change in unrealized appreciation/depreciation--net (2,260,066) (8,120,716)
Dividends to Preferred Shareholders (1,439,448) (2,146,454)
--------------- ---------------
Net increase in net assets resulting from operations 3,695,880 5,858,705
--------------- ---------------
Dividends to Common Shareholders
Investment income--net (4,752,955) (10,967,433)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Shareholders (4,752,955) (10,967,433)
--------------- ---------------
Share Transactions
Value of shares issued to Common Shareholders in reinvestment of dividends -- 269,585
Offering and underwriting costs resulting from the issuance of Preferred Shares -- (266,553)
Adjustment to offering costs resulting from the issuance of Preferred Shares (17,729) --
--------------- ---------------
Net increase (decrease) in net assets derived from share transactions (17,729) 3,032
--------------- ---------------
Net Assets Applicable to Common Shares
Total decrease in net assets applicable to Common Shares (1,074,804) (5,105,696)
Beginning of period 178,771,198 183,876,894
--------------- ---------------
End of period* $ 177,696,394 $ 178,771,198
=============== ===============
* Undistributed investment income--net $ 735,562 $ 1,164,541
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
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. 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 14.72 $ 15.22 $ 15.04 $ 15.04 $ 14.94
----------- ---------- ---------- ---------- ----------
Investment income--net .48+++ .98+++ .98+++ 1.05+++ 1.04
Realized and unrealized gain (loss)--net (.12) (.38) .20 (.06) .06
Less dividends and distributions to Preferred
Shareholders:
Investment income--net (.13) (.17) (.07) (.07) (.10)
Realized gain--net -- -- -- -- --++
----------- ---------- ---------- ---------- ----------
Total from investment operations .23 .43 1.11 .92 1.00
----------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common Shareholders:
Investment income--net (.38) (.90) (.93) (.92) (.90)
Realized gain--net -- -- -- -- --++
----------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common Shareholders (.38) (.90) (.93) (.92) (.90)
----------- ---------- ---------- ---------- ----------
Offering and underwriting costs resulting from the
issuance of Preferred Shares -- (.03) -- -- --
----------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 14.57 $ 14.72 $ 15.22 $ 15.04 $ 15.04
=========== ========== ========== ========== ==========
Market price per share, end of period $ 13.77 $ 14.18 $ 14.98 $ 14.18 $ 14.30
=========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 1.70%+++++ 2.72% 7.98% 6.45% 7.22%
=========== ========== ========== ========== ==========
Based on market price per share (.23%)+++++ .54% 12.73% 5.56% 7.19%
=========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Shares
Total expenses, net of reimbursement*** 1.20%* 1.20% 1.09% 1.08% 1.11%
=========== ========== ========== ========== ==========
Total expenses*** 1.20%* 1.20% 1.10% 1.08% 1.11%
=========== ========== ========== ========== ==========
Total investment income--net*** 6.58%* 6.50% 6.54% 6.86% 7.02%
=========== ========== ========== ========== ==========
Amount of dividends to Preferred Shareholders 1.72%* 1.13% .48% .47% .67%
=========== ========== ========== ========== ==========
Investment income--net, to Common Shareholders 4.86%* 5.37% 6.06% 6.39% 6.35%
=========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Shares
Dividends to Preferred Shareholders 2.97%* 2.02% 1.02% 1.00% 1.39%
=========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS APRIL 30, 2006
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. 2006 2005 2004 2003 2002
Supplemental Data
Net assets applicable to Common Shares, end of period
(in thousands) $ 123,136 $ 124,422 $ 128,455 $ 126,915 $ 126,947
=========== ========== ========== ========== ==========
Preferred Shares outstanding, end of period
(in thousands) $ 72,000 $ 72,000 $ 60,000 $ 60,000 $ 60,000
=========== ========== ========== ========== ==========
Portfolio turnover 24.81% 51.33% 31.22% 47.21% 40.55%
=========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,710 $ 2,728 $ 3,141 $ 3,115 $ 3,116
=========== ========== ========== ========== ==========
Dividends Per Share on Preferred Shares Outstanding
Series A--Investment income--net $ 366 $ 505 $ 255 $ 251 $ 348
=========== ========== ========== ========== ==========
Series B++++--Investment income--net $ 377 $ 482 -- -- --
=========== ========== ========== ========== ==========
* 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.
*** Does 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, 2006
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. 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 15.07 $ 15.46 $ 15.25 $ 15.14 $ 15.17
---------- ---------- ---------- ---------- ----------
Investment income--net .49+++ .96+++ 1.03+++ 1.06+++ 1.07
Realized and unrealized gain (loss)--net (.18) (.27) .21 .06 (.06)
Less dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.11) (.16) (.06) (.06) (.09)
Realized gain--net -- -- -- --++ --++
---------- ---------- ---------- ---------- ----------
Total from investment operations .20 .53 1.18 1.06 .92
---------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.37) (.92) (.94) (.94) (.94)
Realized gain--net -- -- -- (.01) (.01)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common Stock
shareholders (.37) (.92) (.94) (.95) (.95)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs resulting from the
issuance of Preferred Stock -- -- (.03) -- --
---------- ---------- ---------- ---------- ----------
Adjustment of offering costs resulting from the
issuance of Preferred Stock -- --++++++ -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 14.90 $ 15.07 $ 15.46 $ 15.25 $ 15.14
========== ========== ========== ========== ==========
Market price per share, end of period $ 14.70 $ 14.65 $ 15.16 $ 14.39 $ 14.45
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 1.39%+++++ 3.49% 7.99% 7.24% 6.27%
========== ========== ========== ========== ==========
Based on market price per share 2.89%+++++ 2.60% 12.23% 6.02% 2.30%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Stock
Total expenses, net of reimbursement*** 1.16%* 1.16% 1.06% 1.03% 1.07%
========== ========== ========== ========== ==========
Total expenses*** 1.17%* 1.16% 1.07% 1.04% 1.07%
========== ========== ========== ========== ==========
Total investment income--net*** 6.59%* 6.21% 6.79% 6.89% 7.04%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders 1.50%* 1.03% .42% .38% .57%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock shareholders 5.09%* 5.18% 6.37% 6.51% 6.47%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Stock
Dividends to Preferred Stock shareholders 2.71%* 1.90% .95% .91% 1.32%
========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS APRIL 30, 2006
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. 2006 2005 2004 2003 2002
Supplemental Data
Net assets applicable to Common Stock, end of period
(in thousands) $ 131,135 $ 132,622 $ 135,370 $ 133,240 $ 132,146
========== ========== ========== ========== ==========
Preferred Stock outstanding, end of period
(in thousands) $ 73,500 $ 73,500 $ 73,500 $ 56,000 $ 56,000
========== ========== ========== ========== ==========
Portfolio turnover 2.96% 37.31% 18.25% 24.70% 28.45%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,784 $ 2,804 $ 2,842 $ 3,379 $ 3,360
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Stock Outstanding
Series A--Investment income--net $ 335 $ 492 $ 232 $ 228 $ 330
========== ========== ========== ========== ==========
Series B++++--Investment income--net $ 338 $ 420 $ 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.
*** Does 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.
++++++ Amount is less than $.01 per share.
+++ Based on average shares outstanding.
+++++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
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. 2006 2005 2004 2003 2002
Per Share Operating Performance
Net asset value, beginning of period $ 15.57 $ 16.04 $ 15.56 $ 15.34 $ 15.19
---------- ---------- ---------- ---------- ----------
Investment income--net .50+++ 1.05+++ 1.08+++ 1.11+++ 1.11
Realized and unrealized gain (loss)--net (.06) (.35) .48 .16 .13
Dividends to Preferred Shareholders from investment
income--net (.13) (.19) (.08) (.07) (.11)
---------- ---------- ---------- ---------- ----------
Total from investment operations .31 .51 1.48 1.20 1.13
---------- ---------- ---------- ---------- ----------
Less dividends to Common Shareholders from investment
income--net (.40) (.96) (1.00) (.98) (.98)
---------- ---------- ---------- ---------- ----------
Total dividends to Common Shareholders (.40) (.96) (1.00) (.98) (.98)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs resulting from the
issuance of Preferred Shares -- (.02) -- -- --
---------- ---------- ---------- ---------- ----------
Adjustment to offering costs resulting from the
issuance of Preferred Shares --++++ -- -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 15.48 $ 15.57 $ 16.04 $ 15.56 $ 15.34
========== ========== ========== ========== ==========
Market price per share, end of period $ 14.73 $ 14.91 $ 15.61 $ 14.81 $ 14.37
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 2.13%+++++ 3.16% 10.15% 8.33% 7.84%
========== ========== ========== ========== ==========
Based on market price per share 1.48%+++++ 1.51% 12.63% 10.07% 2.57%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Shares
Total expenses, net of reimbursement*** 1.15%* 1.13% 1.05% 1.07% 1.12%
========== ========== ========== ========== ==========
Total expenses*** 1.15%* 1.14% 1.07% 1.08% 1.12%
========== ========== ========== ========== ==========
Total investment income--net*** 6.47%* 6.56% 6.89% 7.08% 7.30%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Shareholders 1.62%* 1.17% .51% .47% .70%
========== ========== ========== ========== ==========
Investment income--net, to Common Shareholders 4.85%* 5.39% 6.38% 6.61% 6.60%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Shares
Dividends to Preferred Shareholders 2.85%* 2.12% 1.04% .95% 1.37%
========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS APRIL 30, 2006
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. 2006 2005 2004 2003 2002
Supplemental Data
Net assets applicable to Common Shares, end of period
(in thousands) $ 177,696 $ 178,771 $ 183,877 $ 178,337 $ 175,720
========== ========== ========== ========== ==========
Preferred Shares outstanding, end of period
(in thousands) $ 102,000 $ 102,000 $ 88,000 $ 88,000 $ 88,000
========== ========== ========== ========== ==========
Portfolio turnover 16.51% 46.42% 50.00% 55.57% 51.37%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,742 $ 2,753 $ 3,090 $ 3,027 $ 2,997
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Shares Outstanding
Series A--Investment income--net $ 356 $ 531 $ 254 $ 242 $ 338
========== ========== ========== ========== ==========
Series B--Investment income--net $ 348 $ 530 $ 261 $ 235 $ 346
========== ========== ========== ========== ==========
Series C++--Investment income--net $ 360 $ 501 -- -- --
========== ========== ========== ========== ==========
* 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.
*** Does not reflect the effect of dividends to Preferred Shareholders.
++ Series C was issued on November 22, 2004.
++++ Amount is less than $(.01) per share.
+++ Based on average shares outstanding.
+++++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS APRIL 30, 2006
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 value of
their Common Stock/Shares on a daily basis. The Fund's 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 markets 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--Each Fund may engage in various
portfolio investment strategies both to increase the return of the Fund and to
hedge, or protect, its 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 Fund is
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).
SEMI-ANNUAL REPORTS APRIL 30, 2006
Notes to Financial Statements (continued)
Written and purchased options are non-income producing investments.
* 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. Any adjustments
to estimates of offering costs were recorded back to capital.
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, each 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, 2006, the Investment Adviser agreed to reimburse its
management fee by the amount of management fees each Fund pays to FAM
indirectly through its investment(s) described below:
Reimbursement
For the Six
Months Ended
Investment(s) April 30, 2006
MuniYield Florida Merrill Lynch
Insured Fund Institutional Exempt/
CMA Florida
Municipal Money Fund $3,006
MuniYield New Jersey CMA New Jersey
Insured Fund, Inc. Municipal Money Fund $4,903
MuniYield Pennsylvania CMA Pennsylvania
Insured Fund Municipal Money Fund $4,821
For the six months ended April 30, 2006, the Funds reimbursed FAM for certain
accounting services. Each Fund's reimbursements were as follows:
Reimbursement
MuniYield Florida Insured Fund $2,142
MuniYield New Jersey Insured Fund, Inc. $2,283
MuniYield Pennsylvania Insured Fund $3,032
Certain officers and/or directors/trustees of the Funds are officers and/or
directors of FAM, PSI, and/or ML & Co.
In February 2006, ML & Co. and BlackRock, Inc. entered into an agreement to
contribute ML & Co.'s investment management business, including FAM, to the
investment management business of BlackRock, Inc. The transaction is expected
to close in the third quarter of 2006.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
six months ended April 30, 2006 were as follows:
MuniYield MuniYield MuniYield
Florida New Jersey Pennsylvania
Insured Insured Insured
Fund Fund, Inc. Fund
Total Purchases $47,843,969 $ 6,033,265 $52,331,031
Total Sales $49,630,943 $11,779,501 $45,690,857
SEMI-ANNUAL REPORTS APRIL 30, 2006
Notes to Financial Statements (continued)
4. Stock/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 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.
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, 2006
and during the year ended October 31, 2005 increased by 1,851 and 9,507,
respectively, as a result of dividend reinvestment.
MuniYield New Jersey Insured Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2006
remained constant. Shares issued and outstanding during the year October 31,
2005 increased by 43,611 as a result of dividend reinvestment.
MuniYield Pennsylvania Insured Fund
Shares issued and outstanding during the six months ended April 30, 2006
remained constant. Shares issued and outstanding during the year ended
October 31, 2005 increased by 16,822 as a result of dividend reinvestment.
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 Shares and $.10 per share for Series B
Shares. The yields in effect at April 30, 2006 were as follows:
MuniYield MuniYield MuniYield
Florida New Jersey Pennsylvania
Insured Insured Insured
Fund Fund, Inc. Fund
Series A 3.70% 3.50% 2.82%
Series B 3.65% 3.60% 3.65%
Series C -- -- 2.90%
MuniYield Florida Insured Fund
Shares issued and outstanding during the six months ended April 30, 2006
remained constant. Shares issued and outstanding during the year ended October
31, 2005 increased by 480 shares from the issuance of an additional series of
Preferred Shares.
MuniYield New Jersey Insured Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2006 and
the year ended October 31, 2005 remained constant.
MuniYield Pennsylvania Insured Fund
Shares issued and outstanding during the six months ended April 30, 2006
remained constant. Shares issued and outstanding during the year ended October
31, 2005 increased by 560 shares from the issuance of an additional series of
Preferred Shares.
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, 2006, MLPF&S earned
commissions as follows:
Commissions
MuniYield Florida Insured Fund $ 54,036
MuniYield New Jersey Insured Fund, Inc. $ 55,315
MuniYield Pennsylvania Insured Fund $ 77,601
SEMI-ANNUAL REPORTS APRIL 30, 2006
Notes to Financial Statements (concluded)
5. Capital Loss Carryforward:
MuniYield Florida Insured Fund
On October 31, 2005, the Fund had a net capital loss carryforward of
$2,775,558, of which $693,833 expires in 2008 and $2,081,725 expires in 2012.
These amounts will be available to offset like amounts of any future taxable
gains.
MuniYield New Jersey Insured Fund, Inc.
On October 31, 2005, the Fund had a net capital loss carryforward of $667,579,
all of which expires in 2012. This amount will be available to offset like
amounts of any future taxable gains.
MuniYield Pennsylvania Insured Fund
On October 31, 2005, the Fund had a net capital loss carryforward of
$3,277,078, 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 30, 2006 to stock/shareholders of record on May 15, 2006. The amount of
the tax-exempt income dividends were as follows:
Per Share Amount
MuniYield Florida Insured Fund $.061000
MuniYield New Jersey Insured Fund, Inc. $.059000
MuniYield Pennsylvania Insured Fund $.063000
SEMI-ANNUAL REPORTS APRIL 30, 2006
Proxy Results MuniYield Florida Insured Fund
During the six-month period ended April 30, 2006, MuniYield Florida Insured
Fund's Common Shareholders voted on the following proposal. The proposal was
approved at a shareholders' meeting on April 27, 2006. A description of the
proposal and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Trustees: Robert C. Doll, Jr. 7,895,655 133,742
Donald W. Burton 7,897,374 132,023
John F. O'Brien 7,894,071 135,326
David H. Walsh 7,894,071 135,326
During the six-month period ended April 30, 2006, MuniYield Florida Insured
Fund's Preferred Shareholders (Series A--B) voted on the following proposal.
The proposal was approved at a shareholders' meeting on April 27, 2006. A
description of the proposals and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Trustees: Robert C. Doll, Jr. 2,713 16
Donald W. Burton 2,709 20
Laurie Simon Hodrick 2,713 16
John F. O'Brien 2,709 20
David H. Walsh 2,694 35
Fred G. Weiss 2,713 16
MuniYield New Jersey Insured Fund, Inc.
During the six-month period ended April 30, 2006, MuniYield New Jersey Insured
Fund, Inc.'s Common Stock shareholders voted on the following proposal. The
proposal was approved at a shareholders' meeting on April 27, 2006. A
description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Directors: Robert C. Doll, Jr., 8,386,167 158,454
Donald W. Burton 8,381,055 163,566
John F. O'Brien 8,378,369 166,252
David H. Walsh 8,374,783 169,838
During the six-month period ended April 30, 2006, MuniYield New Jersey Insured
Fund, Inc.'s Preferred Stock shareholders (Series A--B) voted on the following
proposal. The proposal was approved at a shareholders' meeting on April 27,
2006. A description of the proposal and number of shares voted are 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 2,429 354
SEMI-ANNUAL REPORTS APRIL 30, 2006
Proxy Results (concluded) MuniYield Pennsylvania Insured Fund
During the six-month period ended April 30, 2006, MuniYield Pennsylvania
Insured Fund's Common Shareholders voted on the following proposal. The
proposal was approved at a shareholders' meeting on April 27, 2006. A
description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Trustees: Robert C. Doll, Jr. 10,979,184 136,012
Donald W. Burton 10,977,744 137,452
John F. O'Brien 10,976,404 138,792
David H. Walsh 10,978,584 136,612
During the six-month period ended April 30, 2006, MuniYield Pennsylvania
Insured Fund's Preferred Shareholders (Series A--C) voted on the following
proposal. The proposal was approved at a shareholders' meeting on April 27,
2006. A description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Trustees: Robert C. Doll, Jr. 3,702 282
Donald W. Burton 3,702 282
Laurie Simon Hodrick 3,702 282
John F. O'Brien 3,702 282
David H. Walsh 3,702 282
Fred G. Weiss 3,698 286
SEMI-ANNUAL REPORTS APRIL 30, 2006
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
Donald C. Burke, Vice President and Treasurer
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
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 - 11 East 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:
Computershare The Bank of New York
Trust Company, N.A. 101 Barclay Street - 7 West
P.O. Box 43010 New York, NY 10286
Providence, RI 02940-3010
1-800-426-5523
Laurie Simon Hodrick resigned as a Director/Trustee of MuniYield Florida
Insured Fund, MuniYield New Jersey Insured Fund, Inc. and MuniYield
Pennsylvania Insured Fund effective May 1, 2006.
Investment Objectives
NYSE Symbol MuniYield Florida Insured Fund seeks to provide shareholders with
MFT 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 shareholders
MPA 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, 2006
Availability of Quarterly Schedule 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, 2006
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 22, 2006
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 22, 2006
By: /s/ Donald C. Burke
---------------------------
Donald C. Burke,
Chief Financial Officer of
MuniYield Pennsylvania Insured Fund
Date: June 22, 2006