UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES |
Investment Company Act file number 811-07136 Name of Fund: BlackRock MuniYield Pennsylvania Insured Fund (MPA) Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809 Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock MuniYield Pennsylvania Insured Fund, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011 Registrants telephone number, including area code: (800) 882-0052, Option 4 Date of fiscal year end: 07/31/2008 Date of reporting period: 11/01/2007 07/31/2008 Item 1 Report to Stockholders |
EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS Annual Report JULY 31, 2008 |
BlackRock MuniYield Florida Insured Fund (MFT) BlackRock MuniYield Michigan Insured Fund, Inc. (MIY) BlackRock MuniYield New Jersey Insured Fund, Inc. (MJI) BlackRock MuniYield Pennsylvania Insured Fund (MPA) |
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE |
Table of Contents | ||
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Page | ||
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A Letter to Shareholders | 3 | |
Annual Report: | ||
Fund Summaries | 4 | |
The Benefits and Risks of Leveraging | 8 | |
Swap Agreements | 8 | |
Financial Statements: | ||
Schedules of Investments | 9 | |
Statements of Assets and Liabilities | 22 | |
Statements of Operations | 23 | |
Statements of Changes in Net Assets | 25 | |
Financial Highlights | 27 | |
Notes to Financial Statements | 31 | |
Report of Independent Registered Public Accounting Firm | 39 | |
Important Tax Information | 40 | |
Disclosure of Investment Advisory Agreement and Subadvisory Agreement | 41 | |
Automatic Dividend Reinvestment Plan | 45 | |
Officers and Trustees or Directors | 46 | |
Additional Information | 49 |
2 ANNUAL REPORT |
JULY 31, 2008 |
A Letter to Shareholders |
Dear Shareholder
For more than a year, investors have been besieged by a weak housing market, the bursting of the credit bubble that has
troubled the financial sector, and surging food and oil prices, which have stoked inflation concerns. Healthy nonfinancial
corporate profits and robust exporting activity remained among the few bright spots, helping the economy to grow at a
modest, but still positive, pace.
The Federal Reserve Board (the Fed) has been aggressive in its attempts to stimulate economic growth and stabilize
financial markets. In addition to slashing the target federal funds rate 325 basis points (3.25%) between September
2007 and April 2008, the central bank introduced the new Term Securities Lending Facility, granted broker-dealers access
to the discount window and used its own balance sheet to help negotiate the sale of Bear Stearns. However, the end of
the period saw a pause in Fed action; the central bank held the target rate steady at 2.0% as it attempted to balance
weak growth and inflationary pressures.
The Feds bold response to the financial crisis helped mitigate credit stress and investor anxiety, albeit temporarily.
U.S. equity markets sank sharply over the reporting period, notwithstanding a brief rally in the spring and another in
mid-summer, and international markets followed suit.
Treasury securities also traded in a volatile fashion, but generally rallied (yields fell as prices correspondingly rose), as
the broader flight-to-quality theme persisted. The yield on 10-year Treasury issues, which fell to 3.34% in March, climbed
to the 4.20% range in mid-June as investors temporarily shifted out of Treasury issues in favor of riskier assets (such as
stocks and other high-quality fixed income sectors), then reversed course and declined to 3.99% by period-end when
credit fears re-emerged. Meanwhile, tax-exempt issues underperformed their taxable counterparts, as problems among
municipal bond insurers and the failure in the market for auction rate securities continued to pressure the group.
Overall, the major benchmark indexes generated results that reflected heightened risk aversion:
Total Returns as of July 31, 2008 | 6-month | 12-month | ||
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U.S. equities (S&P 500 Index) | (7.08)% | (11.09)% | ||
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Small cap U.S. equities (Russell 2000 Index) | 0.86 | (6.71) | ||
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International equities (MSCI Europe, Australasia, Far East Index) | (5.04) | (12.19) | ||
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Fixed income (Lehman Brothers U.S. Aggregate Index) | (0.63) | 6.15 | ||
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Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) | (0.85) | 2.83 | ||
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High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index) | (0.80) | 0.52 | ||
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Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index. Shortly before this shareholder report mailing, the investment landscape was dramatically altered as the ongoing credit crisis intensified, resulting in a widespread breakdown in the financial services sector and unprecedented govern- ment intervention. Through periods of market turbulence, as ever, BlackRock's full resources are dedicated to the management of our clients assets. For our most current views on the economy and financial markets, we invite you to visit www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with your investment assets, and we look forward to continuing to serve you in the months and years ahead. |
THIS PAGE NOT PART OF YOUR FUND REPORT
3
Fund Summary as of July 31, 2008 |
BlackRock MuniYield Florida Insured Fund |
Investment Objective
BlackRock MuniYield Florida Insured Fund (MFT) (the Fund) seeks to provide shareholders with as high a level of current income exempt from federal
income taxes as is consistent with its investment policies and prudent investment management by investing primarily in a portfolio of long-term, invest-
ment grade municipal obligations the interest on which, in the opinion of bond counsel to the issuers, is exempt from federal income taxes and which
enables shares of the Fund to be exempt from Florida intangible personal property taxes.
Performance
For the 12 months ended July 31, 2008, the Fund returned (5.10)% based on market price and (1.92)% based on net asset value (NAV). For the
same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (1.42)% on a NAV basis. All
returns reflect reinvestment of dividends. The performance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group
comprises funds representing various states and not Florida alone. Nevertheless, a significant overweight in pre-refunded bonds in the one- to five-year
maturity range benefited performance, as the yield curve steepened and these issues outperformed. Conversely, problems within the monoline insur-
ance industry had a negative impact on the performance of the Fund and its peers. Exposure to uninsured hospital bonds and single-family housing
bonds also detracted, as these sectors underperformed over the annual period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are not guarantee of future results.
Fund Information |
Symbol on New York Stock Exchange | MFT | |
Initital Offering Date | October 30, 1992 | |
Yield on Closing Market Price as of July 31, 2008 ($11.75)1 | 5.46% | |
Tax Equivalent Yield2 | 8.40% | |
Current Monthly Distribution per Common Share3 | $0.0535 | |
Current Annualized Distribution per Common Share3 | $0.642 | |
Leverage as of July 31, 20084 | 42% | |
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1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution is not constant and is subject to change.
4 As a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to Auction Market Preferred
Shares (Preferred Shares) and tender option bond trusts (TOBs)) minus the sum of accrued liabilities.
The table below summarizes the changes in the Funds market price and net asset value per share:
7/31/08 | 10/31/07 | Change | High | Low | ||||||
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Market Price | $11.75 | $12.74 | (7.77)% | $13.08 | $11.71 | |||||
Net Asset Value | $13.42 | $14.38 | (6.68)% | $14.67 | $13.06 | |||||
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The following unaudited charts show the portfolio composition and credit quality allocations of the Funds long-term investments: |
Portfolio Composition | ||||
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7/31/08 | 10/31/07 | |||
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Transportation | 22% | 18% | ||
Lease Revenue | 17 | 18 | ||
Hospital | 14 | 13 | ||
City, County & State | 11 | 9 | ||
Education | 10 | 11 | ||
Water & Sewer | 10 | 13 | ||
Housing | 6 | 6 | ||
Tax Revenue | 5 | 6 | ||
Power | 4 | 5 | ||
Industrial & Pollution Control | 1 | 1 | ||
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Credit Quality Allocations5 | ||||
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Credit Rating | 7/31/08 | 10/31/07 | ||
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AAA/Aaa | 41% | 91% | ||
AA/Aa | 41 | 2 | ||
A/A | 12 | 5 | ||
BBB/Baa | 1 | 2 | ||
Not Rated | 56 | | ||
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5 Using the higher of Standard & Poors (S&Ps) or Moodys
Investors Service (Moodys) ratings.
6 The investment advisor has deemed certain of these non-rated
securities to be of investment grade quality. As of July 31, 2008,
the market value of these securities was $8,223,585, represent-
ing 4% of the Funds long-term investments.
4 ANNUAL REPORT |
JULY 31, 2008 |
Fund Summary as of July 31, 2008 |
BlackRock MuniYield Michigan Insured Fund, Inc. |
Investment Objective
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Fund Information | ||||
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Symbol on New York Stock Exchange | MIY | |||
Initital Offering Date | October 30, 1992 | |||
Yield on Closing Market Price as of July 31, 2008 ($12.30)1 | 5.27% | |||
Tax Equivalent Yield2 | 8.11% | |||
Current Monthly Distribution per Common Share3 | $0.054 | |||
Current Annualized Distribution per Common Share3 | $0.648 | |||
Leverage as of July 31, 20084 | 42% | |||
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1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution is not constant and is subject to change.
4 As a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to Preferred Shares and
TOBs) minus the sum of accrued liabilities.
The table below summarizes the changes in the Funds market price and net asset value per share: |
7/31/08 | 10/31/07 | Change | High | Low | ||||||
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Market Price | $12.30 | $13.40 | (8.21)% | $14.15 | $12.21 | |||||
Net Asset Value | $14.16 | $15.03 | (5.79)% | $15.45 | $13.99 | |||||
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The following unaudited charts show the portfolio composition and credit quality allocations of the Funds long-term investments: |
Portfolio Composition | ||||
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7/31/08 | 10/31/07 | |||
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City, County & State | 19% | 19% | ||
Education | 15 | 10 | ||
Hospital | 13 | 22 | ||
Industrial & Pollution Control | 13 | 13 | ||
Water & Sewer | 13 | 8 | ||
Transportation | 12 | 12 | ||
Resource Recovery | 7 | 7 | ||
Lease Revenue | 4 | 4 | ||
Housing | 2 | 2 | ||
Tax Revenue | 2 | 2 | ||
Power | | 1 | ||
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Credit Quality Allocations5 | ||||
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Credit Rating | 7/31/08 | 10/31/07 | ||
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AAA/Aaa | 35% | 86% | ||
AA/Aa | 47 | 3 | ||
A/A | 15 | 9 | ||
BBB/Baa | 3 | 2 | ||
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5 Using the higher of S&Ps or Moodys ratings. |
ANNUAL REPORT |
JULY 31, 2008 |
5 |
Fund Summary as of July 31, 2008 |
BlackRock MuniYield New Jersey Insured Fund, Inc. |
Investment Objective
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Fund Information |
Symbol on New York Stock Exchange | MJI | |
Initital Offering Date | October 30, 1992 | |
Yield on Closing Market Price as of July 31, 2008 ($12.81)1 | 5.06% | |
Tax Equivalent Yield2 | 7.78% | |
Current Monthly Distribution per Common Share3 | $0.054 | |
Current Annualized Distribution per Common Share3 | $0.648 | |
Leverage as of July 31, 20084 | 38% | |
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1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
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7/31/08 | 10/31/07 | Change | High | Low | ||||||
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Market Price | $12.81 | $13.70 | (6.50)% | $14.20 | $12.66 | |||||
Net Asset Value | $14.23 | $15.02 | (5.26)% | $15.47 | $13.64 | |||||
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The following unaudited charts show the portfolio composition and credit quality allocations of the Funds long-term investments: |
Portfolio Composition | ||||
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7/31/08 | 10/31/07 | |||
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City, County & State | 18% | 18% | ||
Transportation | 18 | 19 | ||
Education | 17 | 18 | ||
Lease Revenue | 10 | 10 | ||
Water & Sewer | 10 | 9 | ||
Hospital | 10 | 6 | ||
Industrial & Pollution Control | 8 | 8 | ||
Housing | 5 | 5 | ||
Tax Revenue | 2 | 5 | ||
Tobacco | 1 | 1 | ||
Power | 1 | 1 | ||
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Credit Quality Allocations5 | ||||
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Credit Rating | 7/31/08 | 10/31/07 | ||
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AAA/Aaa | 33% | 87% | ||
AA/Aa | 46 | 2 | ||
A/A | 11 | 6 | ||
BBB/Baa | 4 | 4 | ||
BB/Ba | | 1 | ||
Not Rated | 66 | | ||
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5 Using the higher of S&Ps or Moodys ratings.
6 The investment advisor has deemed certain of these non-rated
securities to be of investment grade quality. As of July 31, 2008,
the market value of these securities was $12,649,795, represent-
ing 6% of the Funds long-term investments.
6 ANNUAL REPORT |
JULY 31, 2008 |
Fund Summary as of July 31, 2008 |
BlackRock MuniYield Pennsylvania Insured Fund |
Investment Objective BlackRock MuniYield Pennsylvania Insured Fund (MPA) (the Fund) seeks to provide shareholders with as high a level of current income exempt from fed- eral 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 issuers, is exempt from federal and Pennsylvania income taxes. Performance For the 12 months ended July 31, 2008, the Fund returned (7.66)% based on market price and (3.58)% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (1.42)% on a NAV basis. All returns reflect reinvestment of dividends. The performance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group comprises funds representing various states and not Pennsylvania alone. A long duration posture during a period of rising municipal bond yields detracted from Fund performance over the year. Overweight positions in lower-rated bonds and issues subject to the alternative minimum tax also negatively affected results, as yield spreads in both sectors widened significantly. Bond Market Association swaps, utilized by management to reduce Fund duration, under- performed the municipal cash market for much of the recent annual period, which further hampered performance. The Funds below-average distribu- tion rate proved unfavorable as well. The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are not guarantee of future results. |
Fund Information | ||||
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Symbol on New York Stock Exchange | MPA | |||
Initital Offering Date | October 30, 1992 | |||
Yield on Closing Market Price as of July 31, 2008 ($12.43)1 | 5.12% | |||
Tax Equivalent Yield2 | 7.88% | |||
Current Monthly Distribution per Common Share3 | $0.053 | |||
Current Annualized Distribution per Common Share3 | $0.636 | |||
Leverage as of July 31, 20084 | 41% | |||
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1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
2 Tax equivalent yield assumes the maximum federal tax rate of 35%.
3 The distribution is not constant and is subject to change.
4 As a percentage of total managed assets, which is the total assets of the Fund (including any assets attributable to Preferred Shares and
TOBs) minus the sum of accrued liabilities.
The table below summarizes the changes in the Funds market price and net asset value per share: |
7/31/08 | 10/31/07 | Change | High | Low | ||||||
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Market Price | $12.43 | $13.67 | (9.07)% | $14.28 | $12.40 | |||||
Net Asset Value | $14.30 | $15.49 | (7.68)% | $15.96 | $13.93 | |||||
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The following unaudited charts show the portfolio composition and credit quality allocations of the Funds long-term investments: |
Portfolio Composition | ||||
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7/31/08 | 10/31/07 | |||
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City, County & State | 27% | 24% | ||
Education | 22 | 20 | ||
Transportation | 15 | 14 | ||
Lease Revenue | 11 | 6 | ||
Hospital | 8 | 7 | ||
Water & Sewer | 7 | 10 | ||
Power | 4 | 6 | ||
Housing | 3 | 7 | ||
Industrial & Pollution Control | 3 | 5 | ||
Sales Tax | | 1 | ||
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Credit Quality Allocations5 | ||||
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Credit Rating | 7/31/08 | 10/31/07 | ||
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AAA/Aaa | 48% | 84% | ||
AA/Aa | 35 | 5 | ||
A/A | 14 | 3 | ||
BBB/Baa | 3 | 8 | ||
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5 Using the higher of S&Ps or Moodys ratings. |
ANNUAL REPORT |
JULY 31, 2008 |
7 |
The Benefits and Risks of Leveraging BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield Michigan Insured Fund, Inc., BlackRock MuniYield New Jersey Insured Fund, Inc., and BlackRock MuniYield Pennsylvania Insured Fund (each a Fund and, collectively, the Funds) utilize leverage to seek to enhance the yield and NAV of their Common Shares. However, these objectives cannot be achieved in all interest rate environments. To leverage, the Funds issue Preferred Shares, which pay dividends at prevailing short-term interest rates, and invest the proceeds in long-term municipal bonds. The interest earned on these investments is paid to Common Shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share net asset value of each Funds Common Shares. However, in order to benefit Common 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. If either of these conditions change, then the risks of leveraging will begin to outweigh the benefits. To illustrate these concepts, assume a funds Common Shares capital- ization of $100 million and the issuance of Preferred Shares 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 based on the lower short-term interest rates. At the same time, the funds total port- folio of $150 million earns income based on long-term interest rates. In this case, the dividends paid to Preferred Shareholders are signifi- cantly lower than the income earned on the funds long-term invest- ments, and therefore the Common Shareholders are the beneficiaries of the incremental yield. However, if short-term interest rates rise, nar- rowing the differential between short-term and long-term interest rates, the incremental yield pickup on the Common Shares will be reduced or eliminated completely. At the same time, the market value of the funds Common Shares (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 NAV will reflect the full decline in the |
price of the portfolios investments, since the value of the funds Preferred Shares does not fluctuate. In addition to the decline in NAV, the market value of the funds Common Shares may also decline. In addition, the Funds may from time to time leverage their assets through the use of tender option bond (TOB) programs. In a typical TOB program, the Fund transfers one or more municipal bonds to a TOB trust which issues short-term variable rate securities to third-party investors and a residual interest to the Fund. The cash received by the TOB trust from the issuance of the short-term securities (less transaction expenses) is paid to the Fund, which invests the cash in additional port- folio securities. The distribution rate on the short-term securities is reset periodically (typically every seven days) through a remarketing of the short-term securities. Any income earned on the bonds in the TOB trust, net of expenses incurred by the TOB trust, that is not paid to the holders of the short-term securities is paid to the Fund. In connection with man- aging the Funds assets, the Funds investment advisor may at any time retrieve the bonds out of the TOB trust typically within seven days. TOB investments generally will provide the Fund with economic benefits in periods of declining short-term interest rates, but expose the Fund to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Fund, as described above. Additionally, fluctuations in the market value of municipal secu- rities deposited into the TOB trust may adversely affect the Funds NAVs per share. (See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOB trusts.) Under the Investment Company Act of 1940, the Funds are permitted to issue Preferred Shares in an amount up to 50% of their total managed assets at the time of issuance. Each Fund also anticipates that its total economic leverage from Preferred Shares and TOBs will not exceed 50% of its total managed assets. As of July 31, 2008, BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield Michigan Insured Fund, Inc., BlackRock MuniYield New Jersey Insured Fund, Inc. and BlackRock MuniYield Pennsylvania Insured Fund, had leverage from Preferred Shares and TOBs of 42%, 42%, 38% and 41% of their total managed assets, respectively. |
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 inter- est 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. |
8 ANNUAL REPORT |
JULY 31, 2008 |
Schedule of Investments July 31, 2008 BlackRock MuniYield Florida Insured Fund
(Percentages shown are based on Net Assets)
Par | ||||
Municipal Bonds | (000) | Value | ||
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Florida 133.0% | ||||
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Alachua County, Florida, School Board, COP, | ||||
5.25%, 7/01/29 (a) | $ 1,300 | $ 1,282,086 | ||
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Boynton Beach, Florida, Utility System Revenue | ||||
Refunding Bonds, 6.25%, 11/01/20 (b)(c) | 700 | 816,676 | ||
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Brevard County, Florida, Health Facilities Authority, | ||||
Healthcare Facilities Revenue Bonds (Health | ||||
First Inc. Project), 5%, 4/01/36 | 2,000 | 1,798,420 | ||
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Broward County, Florida, Educational Facilities | ||||
Authority Revenue Bonds (Nova Southeastern | ||||
University), 5%, 4/01/31 (d) | 1,720 | 1,665,493 | ||
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Broward County, Florida, HFA, S/F Mortgage | ||||
Revenue Refunding Bonds, AMT, Series E, | ||||
5.90%, 10/01/39 (e)(f) | 1,100 | 1,100,055 | ||
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Broward County, Florida, School Board, COP, Series A, | ||||
5.25%, 7/01/33 (g) | 2,000 | 1,986,160 | ||
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Daytona Beach, Florida, Utility System Revenue | ||||
Refunding Bonds, Series B, 5%, 11/15/27 (b) | 1,000 | 945,480 | ||
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Deltona, Florida, Transportation Capital Improvement | ||||
Revenue Bonds, 5.125%, 10/01/26 (h) | 1,000 | 1,006,230 | ||
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Emerald Coast, Florida, Utilities Authority, System | ||||
Revenue Bonds, 5.25%, 1/01/36 (b) | 1,000 | 957,950 | ||
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Flagler County, Florida, Capital Improvement Revenue | ||||
Bonds, 5%, 10/01/35 (h) | 1,000 | 963,960 | ||
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Florida HFA, Housing Revenue Bonds (Brittany | ||||
Rosemont Apartments), AMT, Series C-1, | ||||
6.75%, 8/01/14 (a) | 910 | 910,983 | ||
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Florida Housing Finance Corporation, Homeowner | ||||
Mortgage Revenue Bonds, AMT: | ||||
Series 1, 6%, 7/01/39 (e)(f) | 500 | 493,050 | ||
Series 11, 5.95%, 1/01/32 (g) | 1,530 | 1,516,551 | ||
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Florida Housing Finance Corporation, Homeowner | ||||
Mortgage Revenue Refunding Bonds, AMT, Series 4, | ||||
6.25%, 7/01/22 (g) | 300 | 313,404 | ||
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Florida State Board of Education (b): | ||||
Capital Outlay, GO, Public Education, Series B, | ||||
5%, 6/01/31 | 1,000 | 1,004,620 | ||
Lottery Revenue Bonds, Series A, | ||||
6%, 7/01/10 (i) | 6,190 | 6,685,881 | ||
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Florida State Governmental Utility Authority, | ||||
Utility Revenue Bonds (Lehigh Utility System), | ||||
5.125%, 10/01/33 (a) | 1,000 | 997,820 | ||
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Par | ||||
Municipal Bonds | (000) | Value | ||
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Florida (continued) | ||||
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Florida State Turnpike Authority, Turnpike Revenue | ||||
Bonds (Department of Transportation), Series B, | ||||
5%, 7/01/30 | $ 1,860 | $ 1,865,413 | ||
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Highlands County, Florida, Health Facilities Authority, | ||||
Hospital Revenue Bonds (Adventist Health System), | ||||
Series C, 5.25%, 11/15/36 | 1,000 | 949,160 | ||
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Hillsborough County, Florida, Aviation Authority, | ||||
Revenue Refunding Bonds, AMT, Series C, | ||||
5.75%, 10/01/26 (d) | 1,000 | 1,023,880 | ||
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Hillsborough County, Florida, HFA, S/F | ||||
Mortgage Revenue Bonds, AMT, Series 1, | ||||
5.375%, 10/01/49 (e)(f) | 1,340 | 1,273,027 | ||
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Hillsborough County, Florida, IDA, PCR, Refunding | ||||
(Tampa Electric Company Project), Series B, | ||||
5.15%, 9/01/25 | 500 | 507,115 | ||
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Hillsborough County, Florida, School Board, COP (h): | ||||
5.375%, 7/01/09 (i) | 6,000 | 6,183,480 | ||
5%, 7/01/29 | 1,000 | 979,630 | ||
|
|
| ||
Jacksonville, Florida, Economic Development | ||||
Commission, Health Care Facilities Revenue Bonds | ||||
(Mayo Clinic-Jacksonville) (h): | ||||
Series A, 5.50%, 11/15/36 | 1,000 | 1,012,230 | ||
Series B, 5.50%, 11/15/36 | 750 | 759,173 | ||
|
|
| ||
Jacksonville, Florida, Economic Development | ||||
Commission, IDR (Metropolitan Parking Solutions | ||||
Project), AMT, 5.50%, 10/01/30 (j) | 1,140 | 1,034,254 | ||
|
|
| ||
Jacksonville, Florida, Guaranteed Entitlement | ||||
Revenue Refunding and Improvement Bonds, | ||||
5.25%, 10/01/32 (b) | 1,455 | 1,462,450 | ||
|
|
| ||
Jacksonville, Florida, HFA, Homeowner Mortgage | ||||
Revenue Refunding Bonds, AMT, Series A-1, | ||||
5.625%, 10/01/39 (e)(f) | 990 | 972,111 | ||
|
|
| ||
Jacksonville, Florida, Port Authority Revenue Bonds, | ||||
AMT, 6%, 11/01/38 (d) | 2,550 | 2,593,631 | ||
|
|
| ||
Jacksonville, Florida, Port Authority, Seaport Revenue | ||||
Bonds, AMT, 5.625%, 11/01/26 (h) | 1,225 | 1,202,289 | ||
|
|
| ||
Lakeland, Florida, Electric and Water Revenue | ||||
Refunding Bonds, Series A, 5%, 10/01/28 (h) | 2,000 | 1,982,300 | ||
|
|
| ||
Lee County, Florida, Airport Revenue Bonds, AMT, | ||||
Series A, 6%, 10/01/29 (g) | 1,000 | 1,014,260 | ||
|
|
|
Portfolio Abbreviations | ||||||||
|
|
|
|
| ||||
To simplify the listings of portfolio holdings in the | AMT | Alternative Minimum Tax (subject to) | IDA | Industrial Development Authority | ||||
Schedules of Investments, the names and descriptions | CABS | Capital Appreciation Bonds | IDR | Industrial Development Revenue Bonds | ||||
of many of the securities have been abbreviated | COP | Certificates of Participation | M/F | Multi-Family | ||||
according to the list on the right. | DRIVERS | Derivative Inverse Tax-Exempt Receipts | PCR | Pollution Control Revenue Bonds | ||||
EDA | Economic Development Authority | RIB | Residual Interest Bonds | |||||
EDR | Economic Development Revenue Bonds | S/F | Single Family | |||||
GO | General Obligation Bonds | SIFMA | Securities Industry and Financial | |||||
HDA | Housing Development Authority | Markets Association | ||||||
See Notes to Financial Statements. | HFA | Housing Finance Agency | VRDN | Variable Rate Demand Notes |
ANNUAL REPORT |
JULY 31, 2008 |
9 |
Schedule of Investments (continued) BlackRock MuniYield Florida Insured Fund
(Percentages shown are based on Net Assets)
Par | ||||
Municipal Bonds | (000) | Value | ||
|
|
| ||
Florida (continued) | ||||
|
|
| ||
Lee County, Florida, Capital Revenue Bonds, | ||||
5.25%, 10/01/23 (a) | $ 2,285 | $ 2,352,476 | ||
|
|
| ||
Lee Memorial Health System, Florida, Hospital | ||||
Revenue Bonds, Series A, 5%, 4/01/32 (a) | 2,000 | 1,929,920 | ||
|
|
| ||
Leesburg, Florida, Capital Improvement Revenue | ||||
Bonds, 5.25%, 10/01/34 (b) | 1,000 | 999,920 | ||
|
|
| ||
Martin County, Florida, Utilities System Revenue | ||||
Bonds, 5.125%, 10/01/33 (a) | 1,000 | 979,840 | ||
|
|
| ||
Miami Beach, Florida, Water and Sewer Revenue | ||||
Bonds, 5.75%, 9/01/25 (a) | 2,000 | 2,097,480 | ||
|
|
| ||
Miami-Dade County, Florida, Aviation Revenue Bonds | ||||
(Miami International Airport), AMT, Series A, | ||||
6%, 10/01/24 (b) | 5,000 | 5,036,050 | ||
|
|
| ||
Miami-Dade County, Florida, Aviation Revenue | ||||
Refunding Bonds (Miami International Airport), AMT: | ||||
Series A, 5.25%, 10/01/41 (g) | 1,200 | 1,142,112 | ||
Series A, 5.50%, 10/01/41 (g) | 2,400 | 2,374,512 | ||
Series B, 5%, 10/01/19 (k) | 4,200 | 4,068,708 | ||
|
|
| ||
Miami-Dade County, Florida, Educational Facilities | ||||
Authority Revenue Bonds (University of Miami), | ||||
Series A, 5.75%, 4/01/10 (a)(i) | 2,000 | 2,136,140 | ||
|
|
| ||
Miami-Dade County, Florida, Expressway Authority, | ||||
Toll System Revenue Bonds, Series B (b): | ||||
5.25%, 7/01/27 | 1,000 | 1,002,470 | ||
5%, 7/01/33 | 2,400 | 2,320,272 | ||
|
|
| ||
Miami-Dade County, Florida, HFA, Home Ownership | ||||
Mortgage Revenue Bonds, AMT, Series A, | ||||
5.55%, 10/01/49 (e)(f) | 1,200 | 1,171,644 | ||
|
|
| ||
Miami-Dade County, Florida, IDA, IDR (BAC | ||||
Funding Corporation Project), Series A, | ||||
5.375%, 10/01/30 (a) | 1,655 | 1,674,248 | ||
|
|
| ||
Miami-Dade County, Florida, School Board, COP, | ||||
Refunding, Series B (d): | ||||
5.25%, 5/01/25 | 1,000 | 1,014,400 | ||
5.25%, 5/01/28 | 1,760 | 1,766,512 | ||
5.25%, 5/01/30 | 1,415 | 1,422,386 | ||
|
|
| ||
Miami-Dade County, Florida, School Board, COP, | ||||
Series A, 5.50%, 10/01/09 (g)(i) | 2,000 | 2,085,000 | ||
|
|
| ||
Miami-Dade County, Florida, Solid Waste System | ||||
Revenue Bonds, 5.25%, 10/01/30 (h) | 1,865 | 1,843,198 | ||
|
|
| ||
Miami-Dade County, Florida, Special Obligation | ||||
Revenue Bonds, Sub-Series A (h)(l): | ||||
5.186%, 10/01/31 | 4,375 | 1,142,662 | ||
5.203%, 10/01/33 | 5,735 | 1,328,742 | ||
|
|
| ||
Orange County, Florida, Educational Facilities | ||||
Authority, Educational Facilities Revenue | ||||
Refunding Bonds (Rollins College Project), | ||||
5.50%, 12/01/32 (a) | 4,765 | 4,850,436 | ||
|
|
| ||
Orange County, Florida, Health Facilities Authority, | ||||
Hospital Revenue Bonds (Orlando Regional | ||||
Healthcare), 6%, 12/01/12 (i) | 1,835 | 2,043,621 | ||
|
|
|
Par | ||||
Municipal Bonds | (000) | Value | ||
|
|
| ||
Florida (continued) | ||||
|
|
| ||
Orange County, Florida, Health Facilities | ||||
Authority, Hospital Revenue Refunding Bonds | ||||
(Orlando Regional Healthcare), Series B, | ||||
5.25%, 12/01/29 (g) | $ 1,450 | $ 1,467,124 | ||
|
|
| ||
Orange County, Florida, Sales Tax Revenue Refunding | ||||
Bonds, Series A, 5.125%, 1/01/23 (b) | 1,000 | 1,025,550 | ||
|
|
| ||
Orange County, Florida, Tourist Development, Tax | ||||
Revenue Refunding Bonds, 5%, 10/01/29 (a) | 2,190 | 2,131,286 | ||
|
|
| ||
Orlando and Orange County, Florida, Expressway | ||||
Authority Revenue Bonds, Series B (a): | ||||
5%, 7/01/30 | 4,000 | 3,916,400 | ||
5%, 7/01/35 | 6,815 | 6,657,028 | ||
|
|
| ||
Osceola County, Florida, Tourist Development Tax | ||||
Revenue Bonds, Series A, 5.50%, 10/01/27 (b) | 1,100 | 1,108,041 | ||
|
|
| ||
Palm Beach County, Florida, Criminal Justice | ||||
Facilities Revenue Bonds, 7.20%, 6/01/15 (b) | 1,500 | 1,812,015 | ||
|
|
| ||
Palm Beach County, Florida, School Board, COP: | ||||
Refunding, Series D, 5.25%, 8/01/21 (g) | 2,000 | 2,093,820 | ||
Series A, 6%, 8/01/10 (b)(i) | 5,000 | 5,391,000 | ||
|
|
| ||
Panama City, Florida, Water and Sewer Revenue | ||||
Bonds, Series B, 5.25%, 10/01/22 (h) | 1,500 | 1,561,545 | ||
|
|
| ||
Polk County, Florida, Utility System Revenue Bonds, | ||||
5.25%, 10/01/22 (b) | 1,000 | 1,028,600 | ||
|
|
| ||
Port St. Lucie, Florida, Utility Revenue Bonds, | ||||
5.25%, 9/01/24 (h) | 1,055 | 1,063,145 | ||
|
|
| ||
Saint Johns County, Florida, Ponte Vedra Utility | ||||
System Revenue Bonds (g): | ||||
5%, 10/01/31 | 2,425 | 2,411,662 | ||
5%, 10/01/35 | 1,000 | 999,930 | ||
|
|
| ||
Saint Johns County, Florida, Sales Tax Revenue | ||||
Bonds, Series A, 5.25%, 10/01/31 (a) | 1,400 | 1,401,358 | ||
|
|
| ||
Saint Lucie, Florida, West Services District, Utility | ||||
Revenue Bonds, 5.25%, 10/01/34 (h) | 1,000 | 1,010,150 | ||
|
|
| ||
Santa Rosa County, Florida, School Board, COP, | ||||
Refunding, Series 2, 5.25%, 2/01/26 (b) | 2,000 | 2,004,920 | ||
|
|
| ||
South Lake County, Florida, Hospital District | ||||
Revenue Bonds (South Lake Hospital Inc.), | ||||
5.80%, 10/01/34 | 1,000 | 1,004,180 | ||
|
|
| ||
Tallahassee, Florida, Capital Revenue Bonds, | ||||
5%, 10/01/24 (g) | 1,000 | 1,019,590 | ||
|
|
| ||
University of Central Florida Athletics Association Inc., | ||||
COP, Series A, 5.25%, 10/01/34 (b) | 2,280 | 2,017,207 | ||
|
|
| ||
University of Central Florida, COP (UCF Convocation | ||||
Center), Series A, 5%, 10/01/35 (b) | 2,820 | 2,552,297 | ||
|
|
| ||
Village Center Community Development District, | ||||
Florida, Recreational Revenue Bonds, Series A (h): | ||||
5.125%, 11/01/36 | 1,000 | 1,002,020 | ||
5.375%, 11/01/34 | 1,640 | 1,669,094 | ||
|
|
| ||
Village Center Community Development District, | ||||
Florida, Utility Revenue Bonds (h): | ||||
5.125%, 10/01/28 | 4,030 | 4,075,337 | ||
5.25%, 10/01/23 | 2,585 | 2,688,219 | ||
|
|
|
See Notes to Financial Statements. |
10 ANNUAL REPORT |
JULY 31, 2008 |
Schedule of Investments (concluded) BlackRock MuniYield Florida Insured Fund
(Percentages shown are based on Net Assets)
Par | ||||
Municipal Bonds | (000) | Value | ||
|
|
| ||
Florida (concluded) | ||||
|
|
| ||
Volusia County, Florida, IDA, Student Housing | ||||
Revenue Bonds (Stetson University Project), | ||||
Series A (m): | ||||
5%, 6/01/25 | $ 1,000 | $ 899,760 | ||
5%, 6/01/35 | 1,000 | 850,890 | ||
|
|
| ||
Puerto Rico 1.9% | ||||
|
|
| ||
Puerto Rico Public Buildings Authority, Government | ||||
Facilities Revenue Refunding Bonds, Series I, | ||||
5%, 7/01/36 | 1,000 | 943,990 | ||
|
|
| ||
Puerto Rico Public Finance Corporation, | ||||
Commonwealth Appropriation Revenue Bonds, | ||||
Series E, 5.70%, 2/01/10 (i) | 1,145 | 1,201,769 | ||
|
|
| ||
Total Municipal Bonds 134.9% | 153,049,898 | |||
|
|
| ||
Municipal Bonds Transferred to | ||||
Tender Option Bond Trusts (n) | ||||
|
|
| ||
Florida | ||||
|
|
| ||
Hillsborough County, Florida, Aviation Authority | ||||
Revenue Bonds, AMT, Series A, 5.5, 10/01/38 (d) | 2,504 | 2,485,123 | ||
|
|
| ||
Jacksonville Electric Authority, Florida, Saint Johns | ||||
River Power Park System Revenue Bonds, Issue | ||||
Three, Series 2, 5%, 10/01/37 | 1,289 | 1,284,847 | ||
|
|
| ||
Jacksonville, Florida, Health Facilities Authority, | ||||
Hospital Revenue Bonds (Baptist Medical Center | ||||
Project), 5%, 8/15/37 (g) | 2,880 | 2,823,725 | ||
|
|
| ||
Jacksonville, Florida, Sales Tax Revenue Bonds, | ||||
5%, 10/01/27 (h) | 1,319 | 1,334,749 | ||
|
|
| ||
Lee County, Florida, HFA, S/F Mortgage Revenue | ||||
Bonds (Multi-County Program), AMT, Series A-2, | ||||
6, 9/01/40 (e)(f) | 1,800 | 1,843,398 | ||
|
|
| ||
Manatee County, Florida, HFA, Homeowner Revenue | ||||
Bonds, AMT, Series A, 5.9, 9/01/40 (e)(f) | 1,005 | 985,433 | ||
|
|
| ||
Miami-Dade County, Florida, Aviation Revenue | ||||
Bonds, AMT, Series A, 5%, 10/01/33 (g) | 6,212 | 5,650,474 | ||
|
|
| ||
Miami-Dade County, Florida, Health Facilities | ||||
Authority, Hospital Revenue Refunding Bonds | ||||
(Miami Childrens Hospital), Series A, | ||||
5.625%, 8/15/18 (a) | 6,960 | 7,588,557 | ||
|
|
| ||
Orlando, Florida, Senior Tourist Development Tax | ||||
Revenue Bonds (6th Cent Contract Payments), | ||||
Series A, 5.25%, 11/01/38 (d) | 2,000 | 1,972,960 | ||
|
|
| ||
Palm Beach County, Florida, School Board, COP, | ||||
Series A, 5%, 8/01/31 (g) | 1,305 | 1,297,940 | ||
|
|
| ||
South Broward, Florida, Hospital District, Hospital | ||||
Revenue Bonds, 5.625%, 5/01/32 (h) | 4,000 | 4,407,320 | ||
|
|
| ||
Total Municipal Bonds Transferred to Tender Option | ||||
Bond Trusts 27.9% | 31,674,526 | |||
|
|
| ||
Total Long-Term Investments | ||||
(Cost $186,495,649) 162.8% | 184,724,424 | |||
|
|
|
Short-Term Securities | Shares | Value | ||
|
|
| ||
CMA Florida Municipal Money Fund, 1.75% (o)(p) | 12,412,044 | $ 12,412,044 | ||
|
|
| ||
Total Short-Term Securities | ||||
(Cost $12,412,044) 11.0% | 12,412,044 | |||
|
|
| ||
Total Investments (Cost $198,907,693*) 173.8% | 197,136,468 | |||
Liabilities in Excess of Other Assets (2.6)% | (2,958,692) | |||
Liability for Trust Certificates, Including Interest | ||||
Expense and Fees Payable (16.3)% | (18,462,062) | |||
Preferred Shares, at Redemption Value (54.9)% | (62,266,457) | |||
| ||||
Net Assets Applicable to Common Shares 100.0% | $113,449,257 | |||
|
|
* The cost and unrealized appreciation (depreciation) of investments as of July 31,
2008, as computed for federal income tax purposes, were as follows:
Aggregate cost | $ 180,584,649 | |
| ||
Gross unrealized appreciation | $ 3,035,667 | |
Gross unrealized depreciation | (4,834,332) | |
| ||
Net unrealized depreciation | $ (1,798,665) | |
|
(a) AMBAC Insured.
(b) FGIC Insured.
(c) Security is collateralized by Municipal or U.S. Treasury Obligations.
(d) Assured Guaranty Insured.
(e) FHLMC Collateralized.
(f) FNMA/GNMA Collateralized.
(g) FSA Insured.
(h) MBIA Insured.
(i) U.S. government securities, held in escrow, are used to pay interest on this
security as well as to retire the bond in full at the date indicated, typically at a
premium to par.
(j) ACA Insured.
(k) XL Capital Insured.
(l) Represents a zero-coupon bond. Rate shown reflects the effective yield at the
time of purchase.
(m) CIFG Insured.
(n) Securities represent bonds transferred to a tender option bond trust in exchange
for which the Fund acquired residual interest certificates. These securities serve
as collateral in a financing transaction. See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to tender option bond
trusts.
(o) 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 | ||||
Affiliate | Activity | Income | ||
|
|
| ||
CMA Florida Municipal Money Fund | 10,566,553 | $90,469 | ||
|
|
|
(p) Represents the current yield as of report date.
See Notes to Financial Statements. |
ANNUAL REPORT |
JULY 31, 2008 |
11 |
Schedule of Investments July 31, 2008 BlackRock MuniYield Michigan Insured Fund, Inc.
(Percentages shown are based on Net Assets)
Par | ||||
Municipal Bonds | (000) | Value | ||
|
|
| ||
Michigan 136.6% | ||||
|
|
| ||
Adrian, Michigan, City School District, GO, | ||||
5%, 5/01/14 (a)(b) | $ 3,600 | $ 3,919,932 | ||
|
|
| ||
Bay City, Michigan, School District, School Building | ||||
and Site, GO, 5%, 5/01/31 (a) | 3,725 | 3,731,817 | ||
|
|
| ||
Birmingham, Michigan, City School District, School | ||||
Building and Site, GO, 5%, 11/01/33 (a) | 1,000 | 1,002,050 | ||
|
|
| ||
Central Montcalm, Michigan, Public Schools, GO, | ||||
5.90%, 5/01/09 (b)(c) | 1,000 | 1,031,980 | ||
|
|
| ||
Delta County, Michigan, Economic Development | ||||
Corporation, Environmental Improvement Revenue | ||||
Refunding Bonds (Mead Westvaco-Escanaba), AMT, | ||||
Series B, 6.45%, 4/15/12 (b) | 1,500 | 1,657,770 | ||
|
|
| ||
Detroit, Michigan, City School District, GO (School | ||||
Building and Site Improvement) (d): | ||||
Series A, 5.375%, 5/01/13 (b) | 2,300 | 2,529,655 | ||
Series B, 5%, 5/01/28 | 3,100 | 3,057,654 | ||
|
|
| ||
Detroit, Michigan, City School District, GO (School | ||||
Building and Site Improvement), Refunding, | ||||
Series A, 5%, 5/01/21 (a) | 3,000 | 3,069,960 | ||
|
|
| ||
Detroit, Michigan, Water Supply System | ||||
Revenue Bonds, DRIVERS, Series 200, | ||||
5.75%, 7/01/11 (b)(d)(e) | 1,025 | 1,212,104 | ||
|
|
| ||
Detroit, Michigan, Water Supply System Revenue | ||||
Bonds, Second Lien, Series B (c): | ||||
5%, 7/01/13 (b) | 1,550 | 1,682,571 | ||
5%, 7/01/34 | 2,420 | 2,318,215 | ||
|
|
| ||
Detroit, Michigan, Water Supply System Revenue | ||||
Bonds, Senior Lien, Series A: | ||||
5.875%, 1/01/10 (b)(d) | 1,250 | 1,327,637 | ||
5.75%, 7/01/11 (b) | 700 | 763,889 | ||
5%, 7/01/13 (c) | 3,750 | 4,070,738 | ||
5%, 7/01/25 (a) | 4,000 | 4,041,520 | ||
5%, 7/01/34 (c) | 6,900 | 6,609,786 | ||
|
|
| ||
Detroit, Michigan, Water Supply System Revenue | ||||
Bonds, Series B, 5.25%, 7/01/13 (b)(c) | 11,790 | 12,931,744 | ||
|
|
| ||
Detroit, Michigan, Water Supply System, Revenue | ||||
Refunding Bonds, 6.25%, 7/01/12 (d)(f) | 1,180 | 1,269,302 | ||
|
|
| ||
Dickinson County, Michigan, Economic Development | ||||
Corporation, Environmental Improvement Revenue | ||||
Refunding Bonds (International Paper Company | ||||
Project), Series A, 5.75%, 6/01/16 | 3,900 | 3,827,499 | ||
|
|
| ||
Dickinson County, Michigan, Healthcare | ||||
System, Hospital Revenue Refunding Bonds, | ||||
5.80%, 11/01/24 (g) | 3,100 | 2,961,585 | ||
|
|
| ||
East Grand Rapids, Michigan, Public School District, | ||||
GO, 5%, 5/01/31 (a) | 1,575 | 1,582,922 | ||
|
|
| ||
Eastern Michigan University, General Revenue | ||||
Refunding Bonds (h): | ||||
6%, 6/01/10 (b) | 590 | 635,159 | ||
6%, 6/01/20 | 435 | 459,164 | ||
|
|
| ||
Eastern Michigan University Revenue Bonds, | ||||
Series B (b)(d): | ||||
5.60%, 6/01/10 | 1,500 | 1,587,195 | ||
5.625%, 6/01/10 | 1,310 | 1,386,740 | ||
|
|
|
Par | ||||
Municipal Bonds | (000) | Value | ||
|
|
| ||
Michigan (continued) | ||||
|
|
| ||
Eaton Rapids, Michigan, Public Schools, School | ||||
Building and Site, GO (a): | ||||
5%, 5/01/14 (b) | $ 2,425 | $ 2,640,510 | ||
5.25%, 5/01/20 | 1,325 | 1,399,942 | ||
5.25%, 5/01/21 | 1,675 | 1,760,844 | ||
5%, 5/01/26 | 1,700 | 1,722,746 | ||
5%, 5/01/29 | 1,175 | 1,180,734 | ||
|
|
| ||
Flint, Michigan, Hospital Building Authority, Revenue | ||||
Refunding Bonds (Hurley Medical Center), | ||||
Series A (g): | ||||
5.375%, 7/01/20 | 615 | 553,937 | ||
6%, 7/01/20 | 1,375 | 1,311,915 | ||
|
|
| ||
Frankenmuth, Michigan, School District, GO, | ||||
5.75%, 5/01/10 (b)(d) | 1,000 | 1,060,050 | ||
|
|
| ||
Gibraltar, Michigan, School District, GO (School | ||||
Building and Site) (d): | ||||
5%, 5/01/14 (b) | 2,940 | 3,201,278 | ||
5%, 5/01/28 | 710 | 711,001 | ||
|
|
| ||
Grand Blanc, Michigan, Community Schools, GO, | ||||
5.625%, 5/01/20 (d) | 1,100 | 1,160,412 | ||
|
|
| ||
Grand Rapids, Michigan, Building Authority Revenue | ||||
Bonds, Series A (h): | ||||
5.50%, 10/01/12 (b) | 1,035 | 1,138,148 | ||
5.50%, 10/01/19 | 665 | 705,252 | ||
5.50%, 10/01/20 | 900 | 954,477 | ||
|
|
| ||
Grand Valley State University, Michigan, Revenue | ||||
Bonds, 5.50%, 2/01/18 (d) | 2,070 | 2,199,996 | ||
|
|
| ||
Greater Detroit Resource Recovery Authority, | ||||
Michigan, Revenue Refunding Bonds, Series A, | ||||
6.25%, 12/13/08 (h) | 11,250 | 11,422,125 | ||
|
|
| ||
Gull Lake, Michigan, Community School District, | ||||
School Building and Site, GO, 5%, 5/01/14 (a)(b) | 5,625 | 6,124,894 | ||
|
|
| ||
Hancock, Michigan, Public Schools, School Building | ||||
and Site, GO, 5%, 5/01/33 (a) | 2,025 | 2,021,983 | ||
|
|
| ||
Harper Woods, Michigan, City School District, School | ||||
Building and Site, GO, Refunding (d): | ||||
5%, 5/01/14 (b) | 4,345 | 4,731,140 | ||
5%, 5/01/34 | 430 | 421,426 | ||
|
|
| ||
Hartland, Michigan, Consolidated School District, GO, | ||||
6%, 5/01/10 (b)(d) | 6,825 | 7,263,916 | ||
|
|
| ||
Hudsonville, Michigan, Public Schools, School | ||||
Building and Site, GO, 5%, 5/01/29 (a) | 3,990 | 4,009,471 | ||
|
|
| ||
Jenison, Michigan, Public Schools, School Building | ||||
and Site, GO, 5.50%, 5/01/19 (d) | 1,575 | 1,654,727 | ||
|
|
| ||
Kent, Michigan, Hospital Finance Authority, Hospital | ||||
Revenue Refunding Bonds (Butterworth Hospital), | ||||
Series A, 7.25%, 1/15/13 (c) | 3,365 | 3,690,496 | ||
|
|
| ||
Kent, Michigan, Hospital Finance Authority | ||||
Revenue Bonds (Spectrum Health), Series A, | ||||
5.50%, 7/15/11 (b)(c) | 3,000 | 3,247,260 | ||
|
|
| ||
Lansing, Michigan, Building Authority, GO, Series A, | ||||
5.375%,6/01/13 (b)(c) | 1,510 | 1,662,812 | ||
|
|
|
See Notes to Financial Statements. |
12 ANNUAL REPORT |
JULY 31, 2008 |
Schedule of Investments (continued) BlackRock MuniYield Michigan Insured Fund, Inc.
(Percentages shown are based on Net Assets)
Par | ||||||
Municipal Bonds | (000) | Value | ||||
|
|
|
| |||
Michigan (continued) | ||||||
|
|
|
| |||
Lapeer, Michigan, Community Schools, School | ||||||
Building and Site, GO, 5%, 5/01/37 (a) | $ 2,015 | $ 1,999,646 | ||||
|
|
| ||||
Michigan Higher Education Facilities Authority, Limited | ||||||
Obligation Revenue Bonds (Hillsdale College | ||||||
Project), 5%, 3/01/35 | 1,875 | 1,777,313 | ||||
|
|
|
| |||
Michigan Higher Education Facilities Authority, Limited | ||||||
Obligation Revenue Refunding Bonds (College for | ||||||
Creative Studies) (b): | ||||||
5.85%, 6/01/12 | 1,235 | 1,353,856 | ||||
5.90%, 6/01/12 | 1,145 | 1,257,244 | ||||
|
|
|
| |||
Michigan Higher Education Facilities Authority, Limited | ||||||
Obligation Revenue Refunding Bonds (Hope | ||||||
College), Series A, 5.90%, 4/01/32 | 2,250 | 2,241,248 | ||||
|
|
|
| |||
Michigan Higher Education Student Loan Authority, | ||||||
Student Loan Revenue Bonds, AMT (h): | ||||||
Series XVII-B, 5.40%, 6/01/18 | 2,500 | 2,355,900 | ||||
Series XVII-Q, 5%, 3/01/31 | 3,000 | 2,389,860 | ||||
|
|
|
| |||
Michigan Municipal Bond Authority Revenue Bonds | ||||||
(Local Government Loan Program), Group A, | ||||||
5.50%, 11/01/20 (h) | 1,065 | 1,114,171 | ||||
|
|
|
| |||
Michigan State Building Authority, Revenue Refunding | ||||||
Bonds (Facilities Program) (c): | ||||||
Series I, 5.50%, 10/15/18 | 2,500 | 2,645,550 | ||||
Series II, 5%, 10/15/29 | 3,500 | 3,454,710 | ||||
|
|
|
| |||
Michigan State Building Authority, Revenue Refunding | ||||||
Bonds, RIB, Series 517X, 8.11%, 10/15/10 (a)(d)(e) | 1,250 | 1,408,850 | ||||
|
|
| ||||
Michigan State, COP (h): | ||||||
5.50%, 6/01/10 (b) | 3,000 | 3,174,060 | ||||
5.40%, 6/01/22 (f) | 3,000 | 1,541,880 | ||||
|
|
|
| |||
Michigan State, Comprehensive Transportation | ||||||
Revenue Refunding Bonds, 5%, 5/15/26 (a) | 3,740 | 3,817,119 | ||||
|
|
|
| |||
Michigan State, HDA, Limited Obligation M/F Housing | ||||||
Revenue Bonds, AMT (i): | ||||||
(Deaconess Towers Apartments), | ||||||
5.25%, 2/20/48 | 1,000 | 865,120 | ||||
(Williams Pavilion Apartments), | ||||||
4.75%, 4/20/37 | 4,050 | 3,275,681 | ||||
|
|
|
| |||
Michigan State, HDA, Rental Housing Revenue | ||||||
Bonds, AMT: | ||||||
Series A, 5.30%, 10/01/37 (c) | 200 | 178,796 | ||||
Series D, 5%, 4/01/26 (a) | 3,310 | 3,036,594 | ||||
|
|
|
| |||
Michigan State Hospital Finance Authority, Hospital | ||||||
Revenue Bonds (Mid-Michigan Obligation Group), | ||||||
Series A, 5.50%, 4/15/18 (h) | 2,530 | 2,619,309 | ||||
|
|
|
| |||
Michigan State Hospital Finance Authority, Hospital | ||||||
Revenue Refunding Bonds: | ||||||
(Crittenton Hospital), Series A, 5.625%, 3/01/27 | 2,200 | 2,212,650 | ||||
(Oakwood Obligated Group), Series A, | ||||||
5%, 7/15/25 | 4,100 | 3,794,714 | ||||
(Oakwood Obligated Group), Series A, | ||||||
5%, 7/15/37 | 630 | 546,254 | ||||
(Sparrow Obligated Group), 5%, 11/15/31 | 3,100 | 2,889,882 | ||||
|
|
|
|
Par | ||||
Municipal Bonds | (000) | Value | ||
|
|
| ||
Michigan (continued) | ||||
|
|
| ||
Michigan State Hospital Finance Authority Revenue | ||||
Bonds: | ||||
(McLaren Health Care Corporation), Series C, | ||||
5%, 8/01/35 | $ 1,000 | $ 916,970 | ||
(Mid-Michigan Obligor Group), Series A, | ||||
5%, 4/15/36 | 1,750 | 1,573,513 | ||
|
|
| ||
Michigan State Hospital Finance Authority, Revenue | ||||
Refunding Bonds: | ||||
(Ascension Health Credit), Series A, | ||||
6.25%, 11/15/09 (b)(c) | 2,500 | 2,645,450 | ||
(Henry Ford Health System), Series A, | ||||
5.25%, 11/15/46 | 2,500 | 2,243,000 | ||
(McLaren Health Care Corporation), | ||||
5.75%, 5/15/38 | 4,000 | 3,899,480 | ||
(Mercy Health Services), Series X, | ||||
6%, 8/15/09 (b)(c) | 2,000 | 2,089,060 | ||
(Saint John Hospital), Series A, | ||||
6%, 5/15/13 (f)(h) | 3,000 | 3,115,020 | ||
(Trinity Health Credit Group), Series D, | ||||
5%, 8/15/34 | 3,100 | 2,982,107 | ||
(Trinity Health Credit), Series C, | ||||
5.375%, 12/01/23 | 1,000 | 1,016,710 | ||
(Trinity Health Credit), Series C, | ||||
5.375%, 12/01/30 | 3,755 | 3,787,143 | ||
(Trinity Health), Series A, 6%, 12/01/27 (h) | 6,400 | 6,756,480 | ||
|
|
| ||
Michigan State Strategic Fund, Limited Obligation | ||||
Revenue Refunding Bonds: | ||||
(Detroit Edison Company Pollution Control | ||||
Project), AMT, Series A, 5.55%, 9/01/29 (c) | 10,250 | 9,259,645 | ||
(Detroit Edison Company Pollution Control | ||||
Project), Series AA, 6.95%, 5/01/11 (d) | 6,000 | 6,529,080 | ||
|
|
| ||
Monroe County, Michigan, Economic Development | ||||
Corporation, Limited Obligation Revenue | ||||
Refunding Bonds (Detroit Edison Co. Project), | ||||
Series AA, 6.95%, 9/01/22 (d) | 15,000 | 17,813,250 | ||
|
|
| ||
Montrose Township, Michigan, School District, GO, | ||||
6.20%, 5/01/17 (c) | 1,000 | 1,159,960 | ||
|
|
| ||
Muskegon Heights, Michigan, Water | ||||
System Revenue Bonds, Series A, | ||||
5.625%, 11/01/10 (b)(c) | 1,830 | 1,961,193 | ||
|
|
| ||
Norway Vulcan, Michigan, Area Schools, GO, | ||||
5.90%, 5/01/09 (b)(d) | 1,100 | 1,135,255 | ||
|
|
| ||
Oak Park, Michigan, Street Improvement, GO, | ||||
5%, 5/01/30 (c) | 500 | 491,500 | ||
|
|
| ||
Orchard View, Michigan, Schools, School Building | ||||
and Site, GO, 5%, 11/01/13 (b)(c) | 5,320 | 5,788,797 | ||
|
|
| ||
Pennfield, Michigan, School District, School | ||||
Building and Site, GO,5%, 5/01/14 (b)(d) | 1,370 | 1,491,752 | ||
|
|
| ||
Plainwell, Michigan, Community Schools, | ||||
School District, School Building and Site, GO, | ||||
5.50%, 11/01/12 (a)(b) | 1,000 | 1,101,110 | ||
|
|
| ||
Plymouth-Canton, Michigan, Community School | ||||
District, GO, 5%, 5/01/29 (d) | 3,905 | 3,899,689 | ||
|
|
|
See Notes to Financial Statements. |
ANNUAL REPORT |
JULY 31, 2008 |
13 |
Schedule of Investments (continued) BlackRock MuniYield Michigan Insured Fund, Inc.
(Percentages shown are based on Net Assets)
Par | ||||||
Municipal Bonds | (000) | Value | ||||
|
|
|
|
|||
Michigan (concluded) | ||||||
|
|
|
|
|||
Ravenna, Michigan, Public Schools, School Building | ||||||
and Site, GO, 5%, 5/01/38 (a) | $ 1,520 | $ 1,508,250 | ||||
|
|
|
||||
Reed, Michigan, City Public Schools, School Building | ||||||
and Site, GO, 5%, 5/01/14 (a)(b) | 1,425 | 1,551,640 | ||||
|
|
|
|
|||
Saginaw, Michigan, Hospital Finance Authority, | ||||||
Revenue Refunding Bonds (Covenant Medical | ||||||
Center), Series E, 5.625%, 7/01/13 (c) | 2,500 | 2,594,050 | ||||
|
|
|
|
|||
Saginaw Valley State University, Michigan, General | ||||||
Revenue Refunding Bonds, 5%, 7/01/24 (d) | 2,100 | 2,086,245 | ||||
|
|
|
|
|||
Saint Clair County, Michigan, Economic Revenue | ||||||
Refunding Bonds (Detroit Edison Co. Project), | ||||||
Series AA, 6.40%, 8/01/24 (h) | 17,800 | 18,198,898 | ||||
|
|
|
|
|||
South Haven, Michigan, Public Schools, GO, | ||||||
5%, 5/01/13 (b) | 1,350 | 1,462,604 | ||||
|
|
|
|
|||
Southfield, Michigan, Library Building Authority, GO, | ||||||
5.50%, 5/01/10 (b)(c) | 1,300 | 1,372,514 | ||||
|
|
|
|
|||
Southfield, Michigan, Public Schools, School Building | ||||||
and Site, GO, Series A (a)(b): | ||||||
5%, 5/01/14 | 3,500 | 3,811,045 | ||||
5.25%, 5/01/14 | 2,900 | 3,195,423 | ||||
|
|
|
|
|||
Sparta, Michigan, Area Schools, School Building and | ||||||
Site, GO, 5%, 5/01/14 (b)(d) | 1,325 | 1,442,753 | ||||
|
|
|
|
|||
Thornapple Kellogg School District, Michigan, GO, | ||||||
Refunding, 5%, 5/01/32 (c) | 2,500 | 2,475,800 | ||||
|
|
|
|
|||
Waverly, Michigan, Community School, GO, | ||||||
5.50%, 5/01/10 (b)(d) | 1,100 | 1,157,277 | ||||
|
|
|
|
|||
Wayne Charter County, Michigan, Airport Revenue | ||||||
Bonds (Detroit Metropolitan Wayne County), AMT, | ||||||
Series A, 5.375%, 12/01/15 (c) | 10,660 | 10,694,858 | ||||
|
|
|
|
|||
Wayne Charter County, Michigan, Detroit Metropolitan | ||||||
Airport, GO, Airport Hotel, Series A, 5%, 12/01/30 (c) | 1,750 | 1,715,280 | ||||
|
|
|
||||
Wayne County, Michigan, Airport Authority Revenue | ||||||
Bonds (Detroit Metropolitan Wayne County Airport), | ||||||
AMT (c): | ||||||
5.25%, 12/01/25 | 7,525 | 7,013,375 | ||||
5.25%, 12/01/26 | 6,300 | 5,844,447 | ||||
5%, 12/01/34 | 9,160 | 8,009,045 | ||||
|
|
|
|
|||
Wayne County, Michigan, Airport Authority, Revenue | ||||||
Refunding Bonds, AMT (j): | ||||||
5.75%, 12/01/25 | 4,000 | 4,093,520 | ||||
5.75%, 12/01/26 | 1,000 | 1,021,790 | ||||
|
|
|
|
|||
West Bloomfield, Michigan, School District, GO, | ||||||
Refunding (d): | ||||||
5.50%, 5/01/17 | 1,710 | 1,826,451 | ||||
5.50%, 5/01/18 | 1,225 | 1,296,626 | ||||
|
|
|
|
|||
Zeeland, Michigan, Public Schools, School Building | ||||||
and Site, GO, 5%, 5/01/29 (c) | 1,600 | 1,606,224 | ||||
|
||||||
352,204,767 | ||||||
|
|
|
|
Par | ||||
Municipal Bonds | (000) | Value | ||
|
|
|
||
Puerto Rico 4.2% | ||||
|
|
|
||
Puerto Rico Commonwealth Highway and | ||||
Transportation Authority, Highway Revenue | ||||
Refunding Bonds, Series CC, 5.50%, 7/01/31 (j) | $ 4,000 | $ 4,236,960 | ||
|
|
|
||
Puerto Rico Municipal Finance Agency Revenue | ||||
Bonds, Series A, 5%, 8/01/27 (a) | 2,790 | 2,797,003 | ||
|
|
|
||
Puerto Rico Sales Tax Financing Corporation, Sales | ||||
Tax Revenue Refunding Bonds, Series A (c)(k): | ||||
5.20%, 8/01/43 | 12,500 | 1,673,248 | ||
4.99%, 8/01/46 | 20,000 | 2,236,600 | ||
|
||||
10,943,811 | ||||
|
|
|
||
Total Municipal Bonds 140.8% | 363,148,578 | |||
|
|
|
||
Municipal Bonds Transferred to | ||||
Tender Option Bond Trusts (l) | ||||
|
|
|
||
Michigan | ||||
|
|
|
||
Detroit, Michigan, Water Supply System, Revenue | ||||
Refunding Bonds, Second Lien, Series C, | ||||
5%, 7/01/29 (a) | 10,569 | 10,527,554 | ||
|
|
|
||
Detroit, Michigan, Water Supply System, Senior Lien | ||||
Revenue Bonds, Series A, 5.75%, 7/01/11 (b)(d) | 6,000 | 6,547,620 | ||
|
|
|
||
Lakewood, Michigan, Public Schools, School Building | ||||
and Site, GO, 5%, 5/01/37 (a) | 6,775 | 6,469,482 | ||
|
|
|
||
Michigan State Building Authority, Revenue | ||||
Refunding Bonds (Facilities Program), Series I, | ||||
5.50%, 10/15/10 (a) | 19,780 | 21,036,821 | ||
|
|
|
||
Portage, Michigan, Public Schools, School Building | ||||
and Site, GO, 5%, 5/01/31 (a) | 4,650 | 4,685,340 | ||
|
|
|
||
Saginaw Valley State University, Michigan, Revenue | ||||
Refunding Bonds, 5%, 7/01/31 (a) | 7,500 | 7,517,100 | ||
|
|
|
||
Wayne County, Michigan, Airport Authority, Revenue | ||||
Refunding Bonds, AMT, 5.375%, 12/01/32 (j) | 8,700 | 8,508,687 | ||
|
|
|
||
Wayne State University, Michigan, University Revenue | ||||
Refunding Bonds, 5%, 11/15/35 (a) | 12,207 | 12,134,001 | ||
|
|
|
||
Total Municipal Bonds Transferred to Tender Option | ||||
Bond Trusts 30.0% | 77,426,605 | |||
|
|
|
||
Total Long-Term Investments | ||||
(Cost $437,658,333) 170.8% | 440,575,183 | |||
|
|
|
||
Short-Term Securities | Shares | |||
|
|
|
||
CMA Michigan Municipal Money Fund, 1.64% (m)(n) | 4,567,533 | 4,567,533 | ||
|
|
|
||
Total Short-Term Securities | ||||
(Cost $4,567,533) 1.8% | 4,567,533 | |||
|
|
|
||
Total Investments (Cost $442,225,866*) 172.6% | 445,142,716 | |||
Other Assets Less Liabilities 0.2% | 472,962 | |||
Liability for Trust Certificates, Including Interest | ||||
Expense and Fees Payable (16.7)% | (43,122,738) | |||
Preferred Shares, at Redemption Value (56.1)% | (144,686,735) | |||
|
||||
Net Assets Applicable to Common Shares 100.0% | $257,806,205 | |||
|
See Notes to Financial Statements. |
14 ANNUAL REPORT |
JULY 31, 2008 |
Schedule of Investments (concluded) BlackRock MuniYield Michigan Insured Fund, Inc.
* The cost and unrealized appreciation (depreciation) of investments as of July 31,
2008, as computed for federal income tax purposes, were as follows:
Aggregate cost | $ 399,792,371 | |
| ||
Gross unrealized appreciation | $ 12,821,704 | |
Gross unrealized depreciation | (10,427,050) | |
| ||
Net unrealized appreciation | $ 2,394,654 | |
|
(a) FSA Insured. (b) U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par. (c) MBIA Insured. (d) FGIC Insured. (e) Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date. (f) Security is collateralized by Municipal or U.S. Treasury Obligations. (g) ACA Insured. (h) AMBAC Insured. (i) GNMA Collateralized. (j) Assured Guaranty Insured. (k) Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase. (l) Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. (m) 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 | ||||
Affiliate | Activity | Income | ||
|
|
| ||
CMA Michigan Municipal Money Fund | 645,977 | $170,765 | ||
|
|
|
(n) Represents the current yield as of report date. |
See Notes to Financial Statements. |
ANNUAL REPORT JULY 31, 2008 15
Schedule of Investments July 31, 2008 BlackRock MuniYield New Jersey Insured Fund, Inc.
(Percentages shown are based on Net Assets)
Par | ||||
Municipal Bonds | (000) | Value | ||
|
|
| ||
New Jersey 134.2% | ||||
|
|
| ||
Delaware River and Bay Authority Revenue Bonds, | ||||
5%, 1/01/33 (a) | $ 1,000 | $ 983,340 | ||
|
|
| ||
Delaware River Port Authority of Pennsylvania and New | ||||
Jersey Revenue Bonds, 6%, 1/01/18 (b) | 5,000 | 5,201,400 | ||
|
|
| ||
Essex County, New Jersey, Improvement Authority, | ||||
Airport Revenue Refunding Bonds, AMT, | ||||
4.75%, 11/01/32 (a) | 1,000 | 887,900 | ||
|
|
| ||
Garden State Preservation Trust of New Jersey, | ||||
Capital Appreciation Revenue Bonds, Series B, | ||||
5.12%, 11/01/23 (b)(c) | 6,925 | 3,231,967 | ||
|
|
| ||
Garden State Preservation Trust of New Jersey, Open | ||||
Space and Farmland Preservation Revenue Bonds, | ||||
Series A, 5.80%, 11/01/22 (b) | 2,605 | 2,891,368 | ||
|
|
| ||
Gloucester County, New Jersey, Improvement Authority, | ||||
Solid Waste Resource Recovery, Revenue Refunding | ||||
Bonds (Waste Management Inc. Project), Series A, | ||||
6.85%, 12/01/29 | 2,000 | 2,064,380 | ||
|
|
| ||
Hopatcong, New Jersey, GO, Sewer Refunding Bonds, | ||||
4.50%, 8/01/33 (d) | 750 | 711,173 | ||
|
|
| ||
Hudson County, New Jersey, COP, Refunding, | ||||
6.25%, 12/01/16 (a) | 1,000 | 1,149,950 | ||
|
|
| ||
Hudson County, New Jersey, Improvement Authority, | ||||
Capital Appreciation Revenue Bonds, Series A-1, | ||||
4.46%, 12/15/32 (a)(c) | 1,000 | 258,780 | ||
|
|
| ||
Hudson County, New Jersey, Improvement Authority, | ||||
Facility Lease Revenue Refunding Bonds (Hudson | ||||
County Lease Project), 5.375%, 10/01/24 (e) | 7,500 | 7,522,200 | ||
|
|
| ||
Jackson Township, New Jersey, School District, GO, | ||||
5%, 4/15/12 (e)(f) | 5,200 | 5,589,740 | ||
|
|
| ||
Jersey City, New Jersey, Sewer Authority, Sewer | ||||
Revenue Refunding Bonds, 6.25%, 1/01/14 (d) | 3,750 | 4,091,550 | ||
|
|
| ||
Middlesex County, New Jersey, COP, Refunding, | ||||
5%, 8/01/22 (a) | 3,000 | 3,043,350 | ||
|
|
| ||
Monmouth County, New Jersey, Improvement Authority, | ||||
Governmental Loan Revenue Refunding Bonds (d): | ||||
5%, 12/01/11 (f) | 3,045 | 3,263,997 | ||
5.20%, 12/01/14 | 240 | 250,320 | ||
5.25%, 12/01/15 | 765 | 799,096 | ||
5%, 12/01/17 | 605 | 631,560 | ||
5%, 12/01/18 | 545 | 566,653 | ||
5%, 12/01/19 | 560 | 578,575 | ||
|
|
| ||
Morristown, New Jersey, Parking Authority Revenue | ||||
Bonds, 4.50%, 8/01/37 (a) | 1,355 | 1,234,500 | ||
|
|
| ||
New Jersey EDA, Cigarette Tax Revenue Bonds: | ||||
5.625%, 6/15/19 | 1,060 | 1,036,765 | ||
5.75%, 6/15/29 (g) | 785 | 767,228 | ||
5.50%, 6/15/31 (g) | 225 | 218,153 | ||
5.75%, 6/15/34 (g) | 465 | 453,361 | ||
|
|
| ||
New Jersey EDA, First Mortgage Revenue | ||||
Bonds (Fellowship Village Project), Series C, | ||||
5.50%, 1/01/28 | 1,000 | 931,140 | ||
|
|
|
Par | ||||
Municipal Bonds | (000) | Value | ||
|
|
| ||
New Jersey (continued) | ||||
|
|
| ||
New Jersey EDA, First Mortgage Revenue | ||||
Refunding Bonds (Fellowship Village), Series A, | ||||
5.50%, 1/01/18 | $ 1,700 | $ 1,681,487 | ||
|
|
| ||
New Jersey EDA, Motor Vehicle Surcharge Revenue | ||||
Bonds, Series A (a): | ||||
4.95%, 7/01/21 (c) | 2,325 | 1,213,162 | ||
5%, 7/01/29 | 3,900 | 3,835,260 | ||
5.25%, 7/01/33 | 8,500 | 8,616,025 | ||
5%, 7/01/34 | 1,765 | 1,727,282 | ||
|
|
| ||
New Jersey EDA, School Facilities Construction | ||||
Revenue Bonds, Series U, 5%, 9/01/37 (d) | 1,000 | 1,003,580 | ||
|
|
| ||
New Jersey EDA, School Facilities Construction, | ||||
Revenue Refunding Bonds, Series K, | ||||
5.25%, 12/15/17 (e) | 1,500 | 1,602,030 | ||
|
|
| ||
New Jersey EDA, Water Facilities Revenue Bonds | ||||
(New Jersey-American Water Company, Inc. | ||||
Project), AMT, Series A: | ||||
5.25%, 11/01/32 (d) | 1,000 | 907,080 | ||
6.875%, 11/01/34 (e) | 5,070 | 5,127,595 | ||
|
|
| ||
New Jersey EDA, Water Facilities Revenue Refunding | ||||
Bonds (United Water of New Jersey, Inc.), | ||||
Series B, 4.50%, 11/01/25 (d) | 1,000 | 966,150 | ||
|
|
| ||
New Jersey Health Care Facilities Financing Authority | ||||
Revenue Bonds: | ||||
(Meridian Health), Series I, 5%, 7/01/38 (h) | 750 | 745,358 | ||
(Somerset Medical Center), 5.50%, 7/01/33 | 1,125 | 907,088 | ||
(South Jersey Hospital System), 6%, 7/01/12 (f) | 4,000 | 4,427,720 | ||
|
|
| ||
New Jersey Health Care Facilities Financing Authority, | ||||
Revenue Refunding Bonds: | ||||
(Atlantic City Medical Center), | ||||
5.75%, 7/01/12 (f) | 525 | 576,335 | ||
(Atlantic City Medical Center), | ||||
6.25%, 7/01/12 (f) | 290 | 325,032 | ||
(Atlantic City Medical Center), 6.25%, 7/01/17 | 325 | 348,576 | ||
(Atlantic City Medical Center), 5.75%, 7/01/25 | 790 | 805,460 | ||
(Hackensack University Medical Center), | ||||
5.25%, 1/01/36 (h) | 3,500 | 3,562,300 | ||
(Meridian Health System Obligation Group), | ||||
5.25%, 7/01/19 (b) | 2,250 | 2,320,583 | ||
|
|
| ||
New Jersey Sports and Exposition Authority, Luxury | ||||
Tax Revenue Refunding Bonds (Convention | ||||
Center) (a): | ||||
5.50%, 3/01/21 | 1,540 | 1,686,362 | ||
5.50%, 3/01/22 | 1,000 | 1,093,300 | ||
|
|
| ||
New Jersey State Educational Facilities Authority | ||||
Revenue Bonds: | ||||
(Montclair State University), Series A, | ||||
5%, 7/01/21 (d) | 1,600 | 1,654,336 | ||
(Rowan University), Series C, 5%, 7/01/14 (a)(f) | 1,185 | 1,295,774 | ||
|
|
|
See Notes to Financial Statements. |
16 ANNUAL REPORT |
JULY 31, 2008 |
Schedule of Investments (continued) BlackRock MuniYield New Jersey Insured Fund, Inc.
(Percentages shown are based on Net Assets)
Par | ||||||
Municipal Bonds | (000) | Value | ||||
|
|
|
| |||
New Jersey (continued) | ||||||
|
|
|
| |||
New Jersey State Educational Facilities Authority, | ||||||
Revenue Refunding Bonds: | ||||||
(Montclair State University), Series J, | ||||||
4.25%, 7/01/30 (a) | $ 2,895 | $ 2,549,424 | ||||
(Montclair State University), Series L, | ||||||
5%, 7/01/14 (a)(f) | 3,185 | 3,482,734 | ||||
(Ramapo College), Series I, 4.25%, 7/01/31 (d) | 1,250 | 1,095,050 | ||||
(Ramapo College), Series I, 4.25%, 7/01/36 (d) | 3,890 | 3,348,707 | ||||
(Rowan University), Series B, 5%, 7/01/26 (h) | 2,575 | 2,645,864 | ||||
(Rowan University), Series C, 5%, 7/01/31 (e) | 325 | 313,810 | ||||
(Stevens Institute of Technology), Series A, | ||||||
5%, 7/01/34 | 1,500 | 1,314,615 | ||||
(William Paterson University), Series E, | ||||||
5%, 7/01/21 (i) | 1,725 | 1,733,746 | ||||
|
|
|
| |||
New Jersey State, GO, Refunding, Series H, | ||||||
5.25%, 7/01/15 (b) | 3,500 | 3,871,000 | ||||
|
|
|
| |||
New Jersey State Higher Education Assistance | ||||||
Authority, Student Loan Revenue Bonds, AMT, | ||||||
Series A, 5.30%, 6/01/17 (d) | 3,565 | 3,602,646 | ||||
|
|
|
| |||
New Jersey State Housing and Mortgage Finance | ||||||
Agency, Home Buyer Revenue Bonds, AMT, | ||||||
Series CC, 5.80%, 10/01/20 (a) | 2,640 | 2,700,746 | ||||
|
|
|
| |||
New Jersey State Housing and Mortgage Finance | ||||||
Agency, M/F Revenue Bonds, AMT, Series A, | ||||||
4.90%, 11/01/35 (e) | 1,000 | 837,970 | ||||
|
|
|
| |||
New Jersey State Housing and Mortgage Finance | ||||||
Agency, S/F Housing Revenue Refunding Bonds, | ||||||
AMT, Series T, 4.70%, 10/01/37 | 500 | 402,910 | ||||
|
|
|
| |||
New Jersey State Transportation Trust Fund Authority, | ||||||
Transportation System Revenue Bonds: | ||||||
Series A, 5%, 12/15/32 (d) | 730 | 731,095 | ||||
Series C, 4.83%, 12/15/32 (b)(c) | 4,750 | 1,292,000 | ||||
Series C, 5.05%, 12/15/35 (c)(d) | 2,760 | 622,408 | ||||
Series D, 5%, 6/15/19 (b) | 3,240 | 3,387,290 | ||||
|
|
|
| |||
New Jersey State Transportation Trust Fund Authority, | ||||||
Transportation System Revenue Refunding Bonds: | ||||||
Series A, 5.25%, 12/15/20 (b) | 4,250 | 4,604,705 | ||||
Series B, 5.50%, 12/15/21 (a) | 3,600 | 3,950,964 | ||||
|
|
|
| |||
New Jersey State Turnpike Authority, Turnpike Revenue | ||||||
Bonds: | ||||||
Series B, 5.15%, 1/01/35 (c)(d) | 3,005 | 2,160,355 | ||||
VRDN, Series C-3, 2.75%, 1/01/24 (b)(j) | 650 | 650,000 | ||||
|
|
|
| |||
Newark, New Jersey, Housing Authority, Port Authority- | ||||||
Port Newark Marine Terminal, Additional Rent-Backed | ||||||
Revenue Refunding Bonds (City of Newark | ||||||
Redevelopment Projects), 4.375%, 1/01/37 (a) | 3,600 | 3,255,408 | ||||
|
|
|
| |||
North Hudson Sewage Authority, New Jersey, Sewer | ||||||
Revenue Refunding Bonds, 5.125%, 8/01/20 (a) | 1,710 | 1,831,881 | ||||
|
|
| ||||
Perth Amboy, New Jersey, GO (Convertible CABS), | ||||||
Refunding, 4.75%, 7/01/35 (b)(c) | 1,250 | 1,017,713 | ||||
|
|
|
| |||
Port Authority of New York and New Jersey, Consolidated | ||||||
Revenue Bonds, 93rd Series, 6.125%, 6/01/94 | 1,000 | 1,120,800 | ||||
|
|
|
|
Par | ||||||
Municipal Bonds | (000) | Value | ||||
|
|
|
| |||
New Jersey (concluded) | ||||||
|
|
|
| |||
Port Authority of New York and New Jersey, | ||||||
Consolidated Revenue Refunding Bonds, AMT: | ||||||
138th Series, 4.75%, 12/01/34 (b) | $ 1,000 | $ 924,600 | ||||
146th Series, 4.25%, 12/01/32 (b) | 5,000 | 4,176,800 | ||||
152nd Series, 5.25%, 11/01/35 | 2,325 | 2,314,794 | ||||
|
|
|
| |||
Rahway Valley Sewerage Authority, New Jersey, Sewer | ||||||
Revenue Bonds, CABS, Series A (a)(c): | ||||||
5.375%, 9/01/26 | 4,100 | 1,563,740 | ||||
5.25%, 9/01/33 | 2,350 | 590,931 | ||||
|
|
|
| |||
Salem County, New Jersey, Improvement Authority | ||||||
Revenue Bonds (Finlaw State Office Building | ||||||
Project) (b): | ||||||
5.375%, 8/15/28 | 1,250 | 1,320,013 | ||||
5.25%, 8/15/38 | 700 | 720,797 | ||||
|
|
|
| |||
Tobacco Settlement Financing Corporation of | ||||||
New Jersey, Asset-Backed Revenue Bonds, | ||||||
7%, 6/01/13 (f) | 1,715 | 2,011,060 | ||||
|
|
|
| |||
Union County, New Jersey, Utilities Authority, Senior | ||||||
Lease Revenue Refunding Bonds (Ogden Martin | ||||||
System of Union, Inc.), AMT, Series A (d): | ||||||
5.375%, 6/01/17 | 1,590 | 1,594,516 | ||||
5.375%, 6/01/18 | 1,670 | 1,672,154 | ||||
|
|
|
| |||
University of Medicine and Dentistry of New Jersey, | ||||||
Revenue Bonds, Series A (d): | ||||||
5.50%, 12/01/18 | 570 | 600,427 | ||||
5.50%, 12/01/19 | 1,145 | 1,206,120 | ||||
5.50%, 12/01/20 | 1,130 | 1,180,398 | ||||
5.50%, 12/01/21 | 865 | 898,112 | ||||
| ||||||
168,084,624 | ||||||
|
|
|
| |||
Puerto Rico 12.0% | ||||||
|
|
|
| |||
Puerto Rico Commonwealth Aqueduct and Sewer | ||||||
Authority, Senior Lien Revenue Bonds, Series A, | ||||||
5.125%, 7/01/47 (h) | 3,425 | 3,365,850 | ||||
|
|
|
| |||
Puerto Rico Commonwealth Highway and | ||||||
Transportation Authority, Highway Revenue | ||||||
Refunding Bonds, Series CC, 5.50%, 7/01/31 (h) | 1,185 | 1,255,199 | ||||
|
|
|
| |||
Puerto Rico Commonwealth Infrastructure Financing | ||||||
Authority, Special Tax and Capital Appreciation | ||||||
Revenue Bonds, Series A (c): | ||||||
4.48%, 7/01/30 (e) | 2,750 | 760,760 | ||||
4.34%, 7/01/37 (d) | 2,250 | 417,803 | ||||
|
|
|
| |||
Puerto Rico Electric Power Authority, Power Revenue | ||||||
Bonds, Series RR, 5%, 7/01/28 (k) | 2,000 | 1,907,720 | ||||
|
|
|
| |||
Puerto Rico Industrial, Tourist, Educational, Medical | ||||||
and Environmental Control Facilities Revenue Bonds, | ||||||
Series A: | ||||||
(Hospital de la Concepcion), 6.125%, 11/15/30 | 4,220 | 4,384,496 | ||||
(University Plaza Project), 5%, 7/01/33 (a) | 3,000 | 2,908,440 | ||||
| ||||||
15,000,268 | ||||||
|
|
|
| |||
Total Municipal Bonds 146.2% | 183,084,892 | |||||
|
|
|
|
See Notes to Financial Statements. |
ANNUAL REPORT |
JULY 31, 2008 |
17 |
Schedule of Investments (concluded) BlackRock MuniYield New Jersey Insured Fund, Inc.
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to | Par | |||||
Tender Option Bond Trusts (l) | (000) | Value | ||||
|
|
|
| |||
New Jersey | ||||||
|
|
|
| |||
New Jersey State Educational Facilities Authority, | ||||||
Revenue Refunding Bonds (College of New Jersey), | ||||||
Series D, 5%, 7/01/35 (b) | $ 3,720 | $ 3,751,694 | ||||
|
|
| ||||
New Jersey State Housing and Mortgage Finance | ||||||
Agency, Capital Fund Program Revenue Bonds, | ||||||
Series A (b): | ||||||
4.70%, 11/01/25 | 4,425 | 4,372,444 | ||||
5%, 5/01/27 | 1,977 | 2,018,106 | ||||
5%, 11/01/28 | 3,300 | 3,767,907 | ||||
|
|
|
| |||
Port Authority of New York and New Jersey, | ||||||
Consolidated Revenue Refunding Bonds, AMT, | ||||||
152nd Series, 5.75%, 11/01/30 | 1,995 | 2,084,117 | ||||
|
|
|
| |||
Total Municipal Bonds Transferred to Tender Option | ||||||
Bond Trusts 12.8% | 15,994,268 | |||||
|
|
|
| |||
Total Long-Term Investments | ||||||
(Cost $198,735,322) 159.0% | 199,079,160 | |||||
|
|
|
| |||
Short-Term Securities | Shares | |||||
|
|
|
| |||
CMA New Jersey Municipal Money Fund, | ||||||
1.75% (m)(n) | 798,701 | 798,701 | ||||
|
|
|
| |||
Total Short-Term Securities (Cost $798,701) 0.6% | 798,701 | |||||
|
|
| ||||
Total Investments (Cost $199,534,023*) 159.6% | 199,877,861 | |||||
Other Assets Less Liabilities 0.9% | 1,078,412 | |||||
Liability for Trust Certificates, Including Interest | ||||||
Expense and Fees Payable (8.0)% | (9,990,427) | |||||
Preferred Shares, at Redemption Value (52.5)% | (65,732,699) | |||||
| ||||||
Net Assets Applicable to Common Shares 100.0% | $125,233,147 | |||||
|
|
* The cost and unrealized appreciation (depreciation) of investments as of July 31,
2008, as computed for federal income tax purposes, were as follows:
Aggregate cost | $189,806,366 | |
| ||
Gross unrealized appreciation | $ 5,187,586 | |
Gross unrealized depreciation | (5,073,171) | |
| ||
Net unrealized appreciation | $ 114,415 | |
|
(a) MBIA Insured.
(b) FSA Insured.
(c) Represents a zero-coupon bond. Rate shown reflects the effective yield at the
time of purchase.
(d) AMBAC Insured.
(e) FGIC Insured.
(f) U.S. government securities, held in escrow, are used to pay interest on this
security as well as to retire the bond in full at the date indicated, typically at a
premium to par.
(g) Radian Insured.
(h) Assured Guaranty Insured.
(i) XL Capital Insured.
(j) Variable rate security. Rate shown is as of report date. Maturity shown is the
final maturity date.
(k) CIFG Insured.
(l) Securities represent bonds transferred to a tender option bond trust in exchange
for which the Fund acquired residual interest certificates. These securities serve
as collateral in a financing transaction. See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to tender option bond
trusts.
(m) Investments in companies considered to be an affiliate of the Fund, for purpos-
es of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:
Net | ||||
Affiliate | Activity | Income | ||
|
|
| ||
CMA New Jersey Municipal Money Fund | 709,508 | $9,451 | ||
|
|
|
(n) Represents the current yield as of report date.
See Notes to Financial Statements. |
18 ANNUAL REPORT |
JULY 31, 2008 |
Schedule of Investments July 31, 2008 BlackRock MuniYield Pennsylvania Insured Fund
(Percentages shown are based on Net Assets)
Par | ||||||
Municipal Bonds | (000) | Value | ||||
|
|
|
| |||
Pennsylvania 122.7% | ||||||
|
|
|
| |||
Allegheny County, Pennsylvania, GO, Series C-60, | ||||||
5%, 11/01/32 (a) | $ 4,650 | $ 4,666,740 | ||||
|
|
| ||||
Allegheny County, Pennsylvania, Hospital Development | ||||||
Authority, Health Center Revenue Bonds (University | ||||||
of Pittsburgh Medical Center Health System), | ||||||
Series B, 6%, 7/01/26 (b) | 2,000 | 2,278,360 | ||||
|
|
|
| |||
Allegheny County, Pennsylvania, Residential Finance | ||||||
Authority, S/F Mortgage Revenue Bonds, AMT, | ||||||
Series TT, 5%, 5/01/35 (c) | 955 | 821,692 | ||||
|
|
|
| |||
Allegheny County, Pennsylvania, Sanitation Authority, | ||||||
Sewer Revenue Refunding Bonds, Series A, | ||||||
5%, 12/01/30 (b) | 5,000 | 4,874,900 | ||||
|
|
|
| |||
Chambersburg, Pennsylvania, Area School District, | ||||||
GO (d): | ||||||
5.25%, 3/01/26 | 2,115 | 2,161,297 | ||||
5.25%, 3/01/27 | 2,500 | 2,548,725 | ||||
5.25%, 3/01/29 | 4,000 | 4,061,240 | ||||
|
|
|
| |||
Connellsville, Pennsylvania, Area School District, GO, | ||||||
Series B, 5%, 11/15/37 (a) | 1,000 | 999,920 | ||||
|
|
|
| |||
Delaware County, Pennsylvania, IDA Revenue Bonds | ||||||
(Pennsylvania Suburban Water Company Project), | ||||||
AMT, Series A, 5.15%, 9/01/32 (e) | 5,500 | 5,041,520 | ||||
|
|
|
| |||
Delaware County, Pennsylvania, IDA, Water Facilities | ||||||
Revenue Refunding Bonds (Aqua Pennsylvania, Inc. | ||||||
Project), AMT, Series B, 5%, 11/01/36 (d) | 4,770 | 4,230,420 | ||||
|
|
| ||||
Delaware Valley Regional Finance Authority, | ||||||
Pennsylvania, Local Government Revenue Bonds, | ||||||
5.75%, 7/01/32 | 1,500 | 1,678,380 | ||||
|
|
|
| |||
East Stroudsburg, Pennsylvania, Area School | ||||||
District, GO, Series A, 7.75%, 9/01/27 (d) | 2,000 | 2,378,480 | ||||
|
|
| ||||
Erie County, Pennsylvania, Convention Center | ||||||
Authority, Convention Center Hotel Revenue Bonds, | ||||||
5%, 1/15/36 (d) | 8,850 | 8,505,027 | ||||
|
|
|
| |||
Gettysburg, Pennsylvania, Municipal Authority, College | ||||||
Revenue Refunding Bonds, 5%, 8/15/23 (b) | 4,000 | 4,012,760 | ||||
|
|
| ||||
Lehigh County, Pennsylvania, General Purpose | ||||||
Authority, Hospital Revenue Bonds (Lehigh Valley | ||||||
Health Network) (a): | ||||||
Series A, 5%, 7/01/33 | 7,995 | 7,871,477 | ||||
Series B, 5%, 7/01/35 | 2,500 | 2,467,125 | ||||
|
|
|
| |||
Monroe County, Pennsylvania, Hospital Authority | ||||||
Revenue Refunding Bonds (Pocono Medical | ||||||
Center), 5.125%, 1/01/37 | 1,265 | 1,105,534 | ||||
|
|
|
| |||
Montgomery County, Pennsylvania, IDA, Water | ||||||
Facilities Revenue Bonds (Aqua Pennsylvania, Inc. | ||||||
Project), Series A, 5.25%, 7/01/42 | 1,800 | 1,679,940 | ||||
|
|
|
| |||
North Allegheny, Pennsylvania, School District, GO, | ||||||
Series C, 5.25%, 5/01/27 (a) | 2,675 | 2,745,460 | ||||
|
|
|
|
Par | ||||
Municipal Bonds | (000) | Value | ||
|
|
| ||
Pennsylvania (continued) | ||||
|
|
| ||
Northampton Borough, Pennsylvania, Municipal | ||||
Authority, Water Revenue Bonds, 5%, 5/15/34 (b) | $ 935 | $ 921,601 | ||
|
|
| ||
Northeastern York School District, Pennsylvania, GO, | ||||
Series B, 5%, 4/01/32 (d) | 1,585 | 1,542,015 | ||
|
|
| ||
Northumberland County, Pennsylvania, IDA, | ||||
Water Facilities Revenue Refunding Bonds | ||||
(Aqua Pennsylvania Inc. Project), AMT, | ||||
5.05%, 10/01/39 (d) | 6,000 | 5,318,940 | ||
|
|
| ||
Pennsylvania Economic Development Financing | ||||
Authority, Solid Waste Disposal Revenue Bonds | ||||
(Waste Management Inc. Project), AMT, Series A, | ||||
5.10%, 10/01/27 | 1,200 | 961,080 | ||
|
|
| ||
Pennsylvania HFA, Revenue Bonds, DRIVERS, | ||||
AMT, Series 1248Z, 7.327%, 10/01/09 (b)(f) | 2,500 | 2,391,100 | ||
|
|
| ||
Pennsylvania HFA, S/F Mortgage Revenue Refunding | ||||
Bonds, AMT, Series 96A, 4.70%, 10/01/37 | 3,000 | 2,386,770 | ||
|
|
| ||
Pennsylvania State Higher Educational Facilities | ||||
Authority Revenue Bonds: | ||||
(Drexel University), Series A, 5%, 5/01/37 (b) | 5,000 | 4,902,450 | ||
(UPMC Health System), Series A, 6%, 1/15/22 | 3,000 | 3,178,470 | ||
(York College of Pennsylvania Project), | ||||
Series EE1, 5%, 11/01/33 (g) | 1,000 | 966,520 | ||
|
|
| ||
Pennsylvania State Higher Educational Facilities | ||||
Authority, State System Revenue Bonds, | ||||
Series AE, 4.75%, 6/15/32 (b) | 8,845 | 8,361,532 | ||
|
|
| ||
Pennsylvania State, IDA, EDR, Refunding, | ||||
5.50%, 7/01/20 (e) | 7,000 | 7,401,310 | ||
|
|
| ||
Pennsylvania State Public School Building Authority, | ||||
School and Capital Appreciation Revenue Bonds | ||||
(Corry Area School District) (a)(h): | ||||
4.85%, 12/15/22 | 1,980 | 957,172 | ||
4.87%, 12/15/23 | 1,980 | 901,949 | ||
4.89%, 12/15/24 | 1,980 | 850,568 | ||
4.92%, 12/15/25 | 1,980 | 803,009 | ||
|
|
| ||
Pennsylvania State Turnpike Commission, Oil | ||||
Franchise Tax Revenue Bonds, Series C, | ||||
5%, 12/01/32 (b) | 13,600 | 13,523,296 | ||
|
|
| ||
Pennsylvania State Turnpike Commission, Turnpike | ||||
Revenue Bonds, Series A, 5.50%, 12/01/31 (e) | 7,800 | 8,055,918 | ||
|
|
| ||
Philadelphia, Pennsylvania, Authority for Industrial | ||||
Development, Airport Revenue Refunding Bonds | ||||
(Philadelphia Airport System Project), AMT, | ||||
Series A (d): | ||||
5.50%, 7/01/17 | 4,000 | 3,992,840 | ||
5.50%, 7/01/18 | 3,655 | 3,623,165 | ||
|
|
| ||
Philadelphia, Pennsylvania, Authority for Industrial | ||||
Development, Lease Revenue Bonds, Series B, | ||||
5.50%, 10/01/11 (a)(i) | 7,680 | 8,359,526 | ||
|
|
|
See Notes to Financial Statements. |
ANNUAL REPORT |
JULY 31, 2008 |
19 |
Schedule of Investments (continued) BlackRock MuniYield Pennsylvania Insured Fund
(Percentages shown are based on Net Assets)
Par | ||||
Municipal Bonds | (000) | Value | ||
|
|
| ||
Pennsylvania (concluded) | ||||
|
|
| ||
Philadelphia, Pennsylvania, GO, Refunding, Series A, | ||||
5.25%, 12/15/32 (a) | $ 7,000 | $ 7,005,110 | ||
|
|
| ||
Philadelphia, Pennsylvania, Gas Works Revenue | ||||
Bonds, 1998 General Ordinance, 4th Series, | ||||
5%, 8/01/32 (a) | 10,000 | 9,848,900 | ||
|
|
| ||
Philadelphia, Pennsylvania, Hospitals and Higher | ||||
Education Facilities Authority, Hospital Revenue | ||||
Refunding Bonds (Presbyterian Medical Center), | ||||
6.65%, 12/01/19 (j) | 3,000 | 3,563,610 | ||
|
|
| ||
Philadelphia, Pennsylvania, Housing Authority | ||||
Revenue Bonds (Capital Fund Program), Series A, | ||||
5.50%, 12/01/18 (a) | 3,000 | 3,197,820 | ||
|
|
| ||
Philadelphia, Pennsylvania, Qualified Redevelopment | ||||
Authority Revenue Bonds, AMT, Series B, | ||||
5%, 4/15/27 (d) | 4,645 | 4,288,589 | ||
|
|
| ||
Philadelphia, Pennsylvania, Redevelopment Authority | ||||
Revenue Bonds (Neighborhood Transformation), | ||||
Series A, 5.50%, 4/15/22 (d) | 1,750 | 1,765,575 | ||
|
|
| ||
Philadelphia, Pennsylvania, School District, GO, | ||||
Series B, 5.625%, 8/01/12 (d)(i) | 10,000 | 11,014,200 | ||
|
|
| ||
Philadelphia, Pennsylvania, Water and Wastewater | ||||
Revenue Bonds, Series A, 5%, 7/01/27 (a) | 3,000 | 3,040,140 | ||
|
|
| ||
Reading, Pennsylvania, Area Water Authority, Water | ||||
Revenue Bonds, 5%, 12/01/27 (a) | 2,680 | 2,702,673 | ||
|
|
| ||
Reading, Pennsylvania, School District, GO, | ||||
5%, 1/15/29 (a) | 6,000 | 6,059,340 | ||
|
|
| ||
Sayre, Pennsylvania, Health Care Facilities Authority, | ||||
Revenue Refunding Bonds (Guthrie Healthcare | ||||
System), Series A, 5.875%, 12/01/31 | 590 | 596,000 | ||
|
|
| ||
Shaler Area School District, Pennsylvania, Capital | ||||
Appreciation, GO, 4.765%, 9/01/30 (g)(h) | 6,145 | 1,734,795 | ||
|
|
| ||
Southcentral General Authority, Pennsylvania, | ||||
Revenue Bonds (York College of Pennsylvania | ||||
Project), 5%, 5/01/37 (g) | 2,000 | 1,917,480 | ||
|
|
| ||
York, Pennsylvania, City School District, GO, Series A, | ||||
5.25%, 6/01/22 (g) | 1,040 | 1,058,282 | ||
| ||||
201,320,742 | ||||
|
|
| ||
Guam 1.4% | ||||
|
|
| ||
A.B. Won Guam International Airport Authority, | ||||
General Revenue Refunding Bonds, AMT, Series C, | ||||
5%, 10/01/23 (b) | 2,500 | 2,333,325 | ||
|
|
| ||
Total Municipal Bonds 124.1% | 203,654,067 | |||
|
|
|
Municipal Bonds Transferred to | Par | |||
Tender Option Bond Trusts (k) | (000) | Value | ||
|
|
| ||
Pennsylvania | ||||
|
|
| ||
East Stroudsburg, Pennsylvania, Area School District, | ||||
GO, Refunding, 5%, 9/01/25 (a) | $ 7,000 | $ 7,163,940 | ||
|
|
| ||
Pennsylvania State Public School Building Authority, | ||||
Lease Revenue Refunding Bonds, Series 2888Z, | ||||
5%, 6/01/26 (a)(f) | 19,025 | 19,387,421 | ||
|
|
| ||
Pennsylvania State Public School Building Authority, | ||||
School Lease Revenue Bonds (The School District | ||||
of Philadelphia Project), 5.25%, 6/01/27 (a)(i) | 15,000 | 16,371,150 | ||
|
|
| ||
Philadelphia, Pennsylvania, Airport Revenue Bonds, | ||||
AMT, Series A, 5%, 6/15/37 (a) | 7,500 | 6,869,025 | ||
|
|
| ||
Scranton, Pennsylvania, School District, GO, Series A, | ||||
5%, 7/01/38 (a) | 9,996 | 9,980,204 | ||
|
|
| ||
Total Municipal Bonds Transferred to Tender Option | ||||
Bond Trusts 36.4% | 59,771,740 | |||
|
|
| ||
Total Long-Term Investments | ||||
(Cost $268,527,018) 160.5% | 263,425,807 | |||
|
|
| ||
Short-Term Securities | Shares | |||
|
|
| ||
CMA Pennsylvania Municipal Money Fund, | ||||
1.68% (l)(m) | 12,061,162 | 12,061,162 | ||
|
|
| ||
Total Short-Term Securities | ||||
(Cost $12,061,162) 7.4% | 12,061,162 | |||
|
|
| ||
Total Investments (Cost $280,588,180*) 167.9% | 275,486,969 | |||
Other Assets Less Liabilities 1.2% | 2,003,114 | |||
Liability for Trust Certificates, Including Interest | ||||
Expense and Fees Payable (21.9)% | (35,946,120) | |||
Preferred Shares, at Redemption Value (47.2)% | (77,424,791) | |||
| ||||
Net Assets Applicable to Common Shares 100.0% | $164,119,172 | |||
|
|
* The cost and unrealized appreciation (depreciation) of investments as of July 31, 2008, as computed for federal income tax purposes, were as follows: |
Aggregate cost | $245,196,407 | |
| ||
Gross unrealized appreciation | $ 4,336,850 | |
Gross unrealized depreciation | (9,887,194) | |
| ||
Net unrealized depreciation | $ (5,550,344) | |
|
(a) FSA Insured.
(b) MBIA Insured.
(c) FNMA/GNMA Collateralized.
(d) FGIC Insured.
(e) AMBAC Insured.
(f) Variable rate security. Rate shown is as of report date. Maturity shown is the final
maturity date.
(g) XL Capital Insured.
(h) Represents a zero-coupon bond. Rate shown is the effective yield at the time of
purchase.
(i) U.S. government securities, held in escrow, are used to pay interest on this
security as well as to retire the bond in full at the date indicated, typically at a
premium to par.
See Notes to Financial Statements. |
20 ANNUAL REPORT |
JULY 31, 2008 |
Schedule of Investments (concluded) BlackRock MuniYield Pennsylvania Insured Fund
(j) Security is collateralized by municipal or U.S. Treasury Obligations. (k) Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securi- ties serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. (l) 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 | ||||
Affiliate | Activity | Income | ||
|
|
| ||
CMA Pennsylvania Municipal Money Fund | 11,974,900 | $79,019 | ||
|
|
|
(m) Represents the current yield as of report date.
Forward interest rate swaps outstanding as of July 31,2008 were as follows:
Notional | Unrealized | |||
Amount | Appreciation | |||
(000) | (Depreciation) | |||
|
|
| ||
Pay a fixed rate of 3.389% and receive | ||||
a floating rate based on 1-week | ||||
SIFMA Municipal Swap Index rate | ||||
Broker, JPMorgan Chase | ||||
Expires August 2018 | $14,250 | $ 28,414 | ||
Pay a fixed rate of 3.978% and receive | ||||
a floating rate based on 1-week | ||||
SIFMA Municipal Swap Index rate | ||||
Broker, JPMorgan Chase | ||||
Expires October 2028 | $10,750 | (255,452) | ||
|
|
| ||
Total | $(227,038) | |||
|
See Notes to Financial Statements. |
ANNUAL REPORT |
JULY 31, 2008 |
21 |
Statements of Assets and Liabilities | ||||||||
BlackRock | BlackRock | BlackRock | BlackRock | |||||
MuniYield | MuniYield | MuniYield | MuniYield | |||||
Florida | Michigan | New Jersey | Pennsylvania | |||||
July 31, 2008 | Insured Fund | Insured Fund, Inc. | Insured Fund, Inc. | Insured Fund | ||||
|
|
|
|
|
||||
Assets | ||||||||
|
|
|
|
|
||||
Investments at value unaffiliated1 | $184,724,424 | $440,575,183 | $199,079,160 | $263,425,807 | ||||
Investments at value affiliated2 | 12,412,044 | 4,567,533 | 798,701 | 12,061,162 | ||||
Unrealized appreciation on forward interest rate swaps | | | | 28,414 | ||||
Cash | 2,817 | 73,701 | 64,915 | 64,244 | ||||
Interest receivable | 2,556,964 | 5,546,982 | 1,650,395 | 2,971,787 | ||||
Investments sold receivable | 70,000 | | | | ||||
Prepaid expenses | 6,803 | 15,757 | 7,880 | 9,842 | ||||
|
|
|
|
|||||
Total assets | 199,773,052 | 450,779,156 | 201,601,051 | 278,561,256 | ||||
|
|
|
|
|
||||
Accrued Liabilities | ||||||||
|
|
|
|
|
||||
Unrealized depreciation on forward interest rate swaps | | | | 255,452 | ||||
Investments purchased payable | 4,990,171 | 3,861,560 | | | ||||
Income dividends payable Common Shares | 452,172 | 983,140 | 475,313 | 608,470 | ||||
Investment advisory fees payable | 80,127 | 188,143 | 85,433 | 114,770 | ||||
Interest expense and fees payable | 111,578 | 167,047 | 33,347 | 105,214 | ||||
Other affiliates payable | 1,762 | 4,037 | 1,774 | 2,753 | ||||
Officers and Directors/Trustees fees payable | 294 | 667 | 378 | 427 | ||||
Other accrued expenses payable | 70,750 | 125,931 | 81,880 | 89,301 | ||||
|
|
|
|
|||||
Total accrued liabilities | 5,706,854 | 5,330,525 | 678,125 | 1,176,387 | ||||
|
|
|
|
|
||||
Other Liabilities | ||||||||
|
|
|
|
|
||||
Trust certificates3 | 18,350,484 | 42,955,691 | 9,957,080 | 35,840,906 | ||||
|
|
|
|
|||||
Total Liabilities | 24,057,338 | 48,286,216 | 10,635,205 | 37,017,293 | ||||
|
|
|
|
|
||||
Preferred Shares at Redemption Value | ||||||||
|
|
|
|
|
||||
Preferred Shares, at $25,000 per share liquidation preference4,5 | 62,266,457 | 144,686,735 | 65,732,699 | 77,424,791 | ||||
|
|
|
|
|
||||
Net Assets Applicable to Common Shares | ||||||||
|
|
|
|
|
||||
Net Assets Applicable to Common Shares | $113,449,257 | $257,806,205 | $125,233,147 | $164,119,172 | ||||
|
|
|
|
|
||||
Net Assets Applicable to Common Shareholders Consist of | ||||||||
|
|
|
|
|
||||
Common Shares, par value $0.10 per share6 | $ 845,181 | $ 1,820,630 | $ 880,210 | $ 1,148,057 | ||||
Paid-in capital in excess of par | 117,070,606 | 262,101,745 | 123,256,564 | 169,088,427 | ||||
Undistributed net investment income | 373,391 | 825,729 | 1,253,004 | 559,654 | ||||
Accumulated net realized loss | (3,068,696) | (9,858,749) | (500,469) | (1,348,717) | ||||
Net unrealized appreciation/depreciation | (1,771,225) | 2,916,850 | 343,838 | (5,328,249) | ||||
|
|
|
|
|||||
Net Assets Applicable to Common Shareholders | $113,449,257 | $257,806,205 | $125,233,147 | $164,119,172 | ||||
|
|
|
|
|||||
Net asset value per share of Common Shares | $ 13.42 | $ 14.16 | $ 14.23 | $ 14.30 | ||||
|
|
|
|
|||||
1 Investments at cost unaffiliated | $186,495,649 | $437,658,333 | $198,735,322 | $268,527,018 | ||||
|
|
|
|
|||||
2 Investments at cost affiliated | $ 12,412,044 | $ 4,567,533 | $ 798,701 | $ 12,061,162 | ||||
|
|
|
|
|||||
3 Represents short-term floating rate certificates issued by tender option bond trusts. | ||||||||
4 Preferred Shares issued and outstanding: | ||||||||
Series A, par value of $0.05 per share | 2,075 | 1,753 | 2,002 | 1,214 | ||||
|
|
|
|
|||||
Series B, par value of $0.05 per share | 415 | 1,753 | | 1,457 | ||||
|
|
|
|
|||||
Series B, par value of $0.10 per share | | | 626 | | ||||
|
|
|
|
|||||
Series C, par value of $0.05 per share | | 1,403 | | 425 | ||||
|
|
|
|
|||||
Series D, par value of $0.10 per share | | 877 | | | ||||
|
|
|
|
|||||
5 Preferred Shares authorized | 1,000,000 | 6,600 | 2,940 | 1,000,000 | ||||
|
|
|
|
|||||
6 Common Shares issued and outstanding | 8,451,814 | 18,206,301 | 8,802,099 | 11,480,567 | ||||
|
|
|
|
|||||
See Notes to Financial Statements. | ||||||||
|
|
|
|
22 ANNUAL REPORT |
JULY 31, 2008 |
Statements of Operations | ||||||||
BlackRock MuniYield | BlackRock MuniYield | |||||||
Florida Insured Fund | Michigan Insured Fund, Inc. | |||||||
|
|
|||||||
Period November 1, | Year Ended | Period November 1, | Year Ended | |||||
2007 to July 31, | October 31, | 2007 to July 31, | October 31, | |||||
2008 | 2007 | 2008 | 2007 | |||||
|
|
|
|
|
||||
Investment Income | ||||||||
|
|
|
|
|
||||
Interest | $ 7,225,699 | $ 9,842,341 | $ 15,442,040 | $ 23,346,555 | ||||
Income from affiliates | 90,469 | 95,766 | 170,765 | 137,587 | ||||
|
|
|
|
|||||
Total income | 7,316,168 | 9,938,107 | 15,612,805 | 23,484,142 | ||||
|
|
|
|
|
||||
Expenses | ||||||||
|
|
|
|
|
||||
Investment advisory | 721,142 | 977,034 | 1,644,505 | 2,207,154 | ||||
Commission for Preferred Shares | 134,732 | 182,703 | 309,916 | 420,888 | ||||
Professional | 76,183 | 77,267 | 129,177 | 87,582 | ||||
Accounting services | 61,320 | 88,703 | 106,061 | 151,893 | ||||
Transfer agent | 14,536 | 45,819 | 24,772 | 76,347 | ||||
Printing | 14,542 | 20,811 | 32,330 | 44,959 | ||||
Officer and Directors/Trustees | 9,469 | 22,093 | 21,423 | 22,323 | ||||
Custodian | 9,182 | 12,090 | 18,158 | 24,464 | ||||
Registration | 8,811 | 9,436 | 8,811 | 9,436 | ||||
Miscellaneous | 40,929 | 55,516 | 67,906 | 79,779 | ||||
|
|
|
|
|||||
Total expenses excluding interest expense and fees | 1,090,846 | 1,491,472 | 2,363,059 | 3,124,825 | ||||
Interest expense and fees1 | 278,641 | 405,590 | 561,946 | 1,172,910 | ||||
|
|
|
|
|||||
Total expenses | 1,369,487 | 1,897,062 | 2,925,005 | 4,297,735 | ||||
Less fees waived by advisor | (21,120) | (15,883) | (43,472) | (22,170) | ||||
|
|
|
|
|||||
Total expenses after waiver | 1,348,367 | 1,881,179 | 2,881,533 | 4,275,565 | ||||
|
|
|
|
|||||
Net investment income | 5,967,801 | 8,056,928 | 12,731,272 | 19,208,577 | ||||
|
|
|
|
|
||||
Realized and Unrealized Gain (Loss) | ||||||||
|
|
|
|
|
||||
Net realized gain (loss) from: | ||||||||
Investments | (181,617) | 286,303 | (1,246,561) | 1,663,620 | ||||
Swaps | (191,322) | (109,389) | | (93,463) | ||||
|
|
|
|
|||||
(372,939) | 176,914 | (1,246,561) | 1,570,157 | |||||
|
|
|
|
|||||
Net change in unrealized appreciation/depreciation on: | ||||||||
Investments | (7,823,283) | (4,471,390) | (13,574,409) | (9,861,159) | ||||
Swaps | 66,960 | 122,801 | | 139,794 | ||||
|
|
|
|
|||||
(7,756,323) | (4,348,589) | (13,574,409) | (9,721,365) | |||||
|
|
|
|
|||||
Total realized and unrealized loss | (8,129,262) | (4,171,675) | (14,820,970) | (8,151,208) | ||||
|
|
|
|
|
||||
Dividends to Preferred Shareholders From | ||||||||
|
|
|
|
|
||||
Net investment income | (1,872,136) | (2,631,621) | (4,212,108) | (5,850,606) | ||||
|
|
|
|
|||||
Net Increase (Decrease) in Net Assets Applicable to Common Shareholders | ||||||||
Resulting from Operations | $ (4,033,597) | $ 1,253,632 | $ (6,301,806) | $ 5,206,763 | ||||
|
|
|
|
|||||
1 Related to tender option bond trusts. |
See Notes to Financial Statements. |
ANNUAL REPORT |
JULY 31, 2008 |
23 |
Statements of Operations (concluded) | ||||||||
BlackRock MuniYield | BlackRock MuniYield | |||||||
New Jersey Insured Fund, Inc. | Pennsylvania Insured Fund | |||||||
|
|
|||||||
Period November 1, | Year Ended | Period November 1, | Year Ended | |||||
2007 to July 31, | October 31, | 2007 to July 31, | October 31, | |||||
2008 | 2007 | 2008 | 2007 | |||||
|
|
|
|
|
||||
Investment Income | ||||||||
|
|
|
|
|
||||
Interest | $ 7,262,083 | $ 10,198,947 | $ 10,099,053 | $ 14,693,124 | ||||
Income from affiliates | 9,451 | 29,087 | 79,019 | 20,208 | ||||
|
|
|
|
|||||
Total income | 7,271,534 | 10,228,034 | 10,178,072 | 14,713,332 | ||||
|
|
|
|
|
||||
Expenses | ||||||||
|
|
|
|
|
||||
Investment advisory | 761,003 | 1,034,003 | 1,039,188 | 1,412,279 | ||||
Commission for Preferred Shares | 137,589 | 186,372 | 187,062 | 261,134 | ||||
Professional | 84,671 | 76,081 | 94,948 | 79,762 | ||||
Accounting services | 62,912 | 91,671 | 63,830 | 95,961 | ||||
Transfer agent | 15,427 | 47,721 | 21,448 | 56,203 | ||||
Printing | 15,290 | 22,064 | 21,382 | 28,852 | ||||
Officer and Directors/Trustees | 10,435 | 22,104 | 13,764 | 22,175 | ||||
Custodian | 8,789 | 13,745 | 13,246 | 19,074 | ||||
Registration | 8,811 | 9,435 | 8,811 | 9,436 | ||||
Miscellaneous | 49,863 | 56,982 | 56,076 | 60,732 | ||||
|
|
|
|
|||||
Total expenses excluding interest expense and fees | 1,154,790 | 1,560,178 | 1,519,755 | 2,045,608 | ||||
Interest expense and fees1 | 63,160 | 268,042 | 474,503 | 1,055,463 | ||||
|
|
|
|
|||||
Total expenses | 1,217,950 | 1,828,220 | 1,994,258 | 3,101,071 | ||||
Less fees waived by advisor | (2,637) | (4,167) | (24,132) | (3,253) | ||||
Less fees paid indirectly | | | (28) | | ||||
|
|
|
|
|||||
Total expenses after waiver and fees paid indirectly | 1,215,313 | 1,824,053 | 1,970,098 | 3,097,818 | ||||
|
|
|
|
|||||
Net investment income | 6,056,221 | 8,403,981 | 8,207,974 | 11,615,514 | ||||
|
|
|
|
|
||||
Realized and Unrealized Gain (Loss) | ||||||||
|
|
|
|
|
||||
Net realized gain (loss) from: | ||||||||
Investments | (7,701) | 588,462 | 1,905,522 | 2,680,909 | ||||
Futures and swaps | (10,031) | | (2,217,824) | (343,664) | ||||
|
|
|
|
|||||
(17,732) | 588,462 | (312,302) | 2,337,245 | |||||
|
|
|
|
|||||
Net change in unrealized appreciation/depreciation on: | ||||||||
Investments | (6,708,329) | (4,321,927) | (13,613,414) | (7,389,915) | ||||
Swaps | | | 306,825 | 390,911 | ||||
|
|
|
|
|||||
(6,708,329) | (4,321,927) | (13,306,589) | (6,999,004) | |||||
|
|
|
|
|||||
Total realized and unrealized loss | (6,726,061) | (3,733,465) | (13,618,891) | (4,661,759) | ||||
|
|
|
|
|
||||
Dividends and Distributions to Preferred Shareholders From | ||||||||
|
|
|
|
|
||||
Net investment income | (1,835,167) | (2,420,847) | (2,559,463) | (3,638,710) | ||||
Net realized gain | (42,392) | (23,780) | | | ||||
|
|
|
|
|||||
Total dividends and distributions to Preferred Shareholders | (1,877,559) | (2,444,627) | (2,559,463) | (3,638,710) | ||||
|
|
|
|
|||||
Net Increase (Decrease) in Net Assets Applicable to Common Shareholders | ||||||||
Resulting from Operations | $ (2,547,399) | $ 2,225,889 | $ (7,970,380) | $ 3,315,045 | ||||
|
|
|
|
|||||
1 Related to tender option bond trusts. |
See Notes to Financial Statements. |
24 ANNUAL REPORT |
JULY 31, 2008 |
Statements of Changes in Net Assets | BlackRock MuniYield Florida Insured Fund | |||||
Period | ||||||
November 1, 2007 | Year Ended October 31, | |||||
Increase (Decrease) in Net Assets: | to July 31, 2008 | 2007 | 2006 | |||
|
|
|
| |||
Operations | ||||||
|
|
|
| |||
Net investment income | $ 5,967,801 | $ 8,056,928 | $ 8,162,555 | |||
Net realized gain (loss) | (372,939) | 176,914 | 48,897 | |||
Net change in unrealized appreciation/depreciation | (7,756,323) | (4,348,589) | 2,043,553 | |||
Dividends to Preferred Shareholders from net investment income | (1,872,136) | (2,631,621) | (2,323,697) | |||
|
|
| ||||
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations | (4,033,597) | 1,253,632 | 7,931,308 | |||
|
|
|
| |||
Dividends to Common Shareholders From | ||||||
|
|
|
| |||
Net investment income | (4,090,678) | (5,721,878) | (6,338,731) | |||
|
|
|
| |||
Capital Share Transactions | ||||||
|
|
|
| |||
Reinvestment of common dividends | | | 27,237 | |||
|
|
|
| |||
Net Assets Applicable to Common Shareholders | ||||||
|
|
|
| |||
Total increase (decrease) in net assets applicable to Common Shares | (8,124,275) | (4,468,246) | 1,619,814 | |||
Beginning of period | 121,573,532 | 126,041,778 | 124,421,964 | |||
|
|
| ||||
End of period | $ 113,449,257 | $ 121,573,532 | $ 126,041,778 | |||
|
|
| ||||
End of period undistributed net investment income | $ 373,391 | $ 339,357 | $ 635,928 | |||
|
|
| ||||
BlackRock MuniYield Michigan Insured Fund, Inc. | ||||||
Period | ||||||
November 1, 2007 | Year Ended October 31, | |||||
Increase (Decrease) in Net Assets: | to July 31, 2008 | 2007 | 2006 | |||
|
|
|
| |||
Operations | ||||||
|
|
|
| |||
Net investment income | $ 12,731,272 | $ 19,208,577 | $ 18,947,795 | |||
Net realized gain (loss) | (1,246,561) | 1,570,157 | 766,219 | |||
Net change in unrealized appreciation/depreciation | (13,574,409) | (9,721,365) | 3,191,112 | |||
Dividends to Preferred Shareholders from net investment income | (4,212,108) | (5,850,606) | (5,190,018) | |||
|
|
| ||||
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations | (6,301,806) | 5,206,763 | 17,715,108 | |||
|
|
|
| |||
Dividends to Common Shareholders From | ||||||
|
|
|
| |||
Net investment income | (9,485,483) | (12,962,886) | (15,230,229) | |||
|
|
|
| |||
Capital Share Transactions | ||||||
|
|
|
| |||
Reinvestment of common dividends | | | 614,402 | |||
|
|
|
| |||
Net Assets Applicable to Common Shareholders | ||||||
|
|
|
| |||
Total increase (decrease) in net assets applicable to Common Shares | (15,787,289) | (7,756,123) | 3,099,281 | |||
Beginning of period | 273,593,494 | 281,349,617 | 278,250,336 | |||
|
|
| ||||
End of period | $ 257,806,205 | $ 273,593,494 | $ 281,349,617 | |||
|
|
| ||||
End of period undistributed net investment income | $ 825,729 | $ 1,796,256 | $ 1,401,171 | |||
|
|
| ||||
See Notes to Financial Statements. | ||||||
|
|
|
ANNUAL REPORT |
JULY 31, 2008 |
25 |
Statements of Changes in Net Assets | BlackRock MuniYield New Jersey Insured Fund, Inc. | |||||
Period | ||||||
November 1, 2007 | Year Ended October 31, | |||||
Increase (Decrease) in Net Assets: | to July 31, 2008 | 2007 | 2006 | |||
|
|
|
| |||
Operations | ||||||
|
|
|
| |||
Net investment income | $ 6,056,221 | $ 8,403,981 | $ 8,577,480 | |||
Net realized gain (loss) | (17,732) | 588,462 | 982,663 | |||
Net change in unrealized appreciation/depreciation | (6,708,329) | (4,321,927) | 2,138,341 | |||
Dividends to Preferred Shareholders from: | ||||||
Net investment income | (1,835,167) | (2,420,847) | (2,163,956) | |||
Net realized gain | (42,392) | (23,780) | | |||
|
|
| ||||
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations | (2,547,399) | 2,225,889 | 9,534,528 | |||
|
|
|
| |||
Dividends and Distributions to Common Shareholders From | ||||||
|
|
|
| |||
Net investment income | (4,289,500) | (5,747,771) | (6,390,415) | |||
Net realized gain | (103,918) | (70,742) | | |||
|
|
| ||||
Decrease in net assets resulting from dividends and distributions to Common Shareholders | (4,393,418) | (5,818,513) | (6,390,415) | |||
|
|
|
| |||
Net Assets Applicable to Common Shareholders | ||||||
|
|
|
| |||
Total increase (decrease) in net assets applicable to Common Shares | (6,940,817) | (3,592,624) | 3,144,113 | |||
Beginning of period | 132,173,964 | 135,766,588 | 132,622,475 | |||
|
|
| ||||
End of period | $ 125,233,147 | $ 132,173,964 | $ 135,766,588 | |||
|
|
| ||||
End of period undistributed net investment income | $ 1,253,004 | $ 1,307,514 | $ 1,086,101 | |||
|
|
| ||||
BlackRock MuniYield Pennsylvania Insured Fund | ||||||
Period | ||||||
November 1, 2007 | Year Ended October 31, | |||||
Increase (Decrease) in Net Assets: | to July 31, 2008 | 2007 | 2006 | |||
|
|
|
| |||
Operations | ||||||
|
|
|
| |||
Net investment income | $ 8,207,974 | $ 11,615,514 | $ 11,618,794 | |||
Net realized gain (loss) | (312,302) | 2,337,245 | 34,726 | |||
Net change in unrealized appreciation/depreciation | (13,306,589) | (6,999,004) | 4,128,137 | |||
Dividends to Preferred Shareholders from net investment income | (2,559,463) | (3,638,710) | (3,155,383) | |||
|
|
| ||||
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations | (7,970,380) | 3,315,045 | 12,626,274 | |||
|
|
|
| |||
Dividends to Common Shareholders From | ||||||
|
|
|
| |||
Net investment income | (5,717,322) | (7,910,111) | (8,977,803) | |||
|
|
|
| |||
Capital Share Transactions | ||||||
|
|
|
| |||
Underwriting discounts and offering costs relating to the issuance of Preferred Shares | | | (17,729) | |||
|
|
|
| |||
Net Assets Applicable to Common Shareholders | ||||||
|
|
|
| |||
Total increase (decrease) in net assets applicable to Common Shares | (13,687,702) | (4,595,066) | 3,630,742 | |||
Beginning of period | 177,806,874 | 182,401,940 | 178,771,198 | |||
|
|
| ||||
End of period | $ 164,119,172 | $ 177,806,874 | $ 182,401,940 | |||
|
|
| ||||
End of period undistributed net investment income | $ 559,654 | $ 677,381 | $ 650,149 | |||
|
|
|
See Notes to Financial Statements. |
26 ANNUAL REPORT |
JULY 31, 2008 |
Financial Highlights | BlackRock MuniYield Florida Insured Fund | |||||||||||||||
Period | ||||||||||||||||
November 1, 2007 | Year Ended October 31, | |||||||||||||||
to July 31, 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Per Share Operating Performance | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Net asset value, beginning of period | $ 14.38 | $ 14.91 | $ 14.72 | $ 15.22 | $ 15.04 | $ 15.04 | ||||||||||
|
|
|
|
|
| |||||||||||
Net investment income1 | 0.71 | 0.95 | 0.97 | 0.98 | 0.98 | 1.05 | ||||||||||
Net realized and unrealized gain (loss) | (0.97) | (0.49) | 0.24 | (0.38) | 0.20 | (0.06) | ||||||||||
Dividends to Preferred Shareholders from net investment income | (0.22) | (0.31) | (0.27) | (0.17) | (0.07) | (0.07) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) from investment operations | (0.48) | 0.15 | 0.94 | 0.43 | 1.11 | 0.92 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Dividends to Common Shareholders from net investment income | (0.48) | (0.68) | (0.75) | (0.90) | (0.93) | (0.92) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Capital charges with respect to the issuance of Preferred Shares | | | | (0.03) | | | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ 13.42 | $ 14.38 | $ 14.91 | $ 14.72 | $ 15.22 | $ 15.04 | ||||||||||
|
|
|
|
|
| |||||||||||
Market price, end of period | $ 11.75 | $ 12.74 | $ 14.21 | $ 14.18 | $ 14.98 | $ 14.18 | ||||||||||
|
|
|
|
|
|
| ||||||||||
Total Investment Return2 | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Based on net asset value | (2.97)%3 | 1.39% | 6.87% | 2.72% | 7.98% | 6.45% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Based on market price | (4.11)%3 | (5.75)% | 5.73% | 0.54% | 12.73% | 5.56% | ||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Ratios to Average Net Assets Applicable to Common Shares | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total expenses after waiver and excluding interest expense and fees4,5 | 1.18%6 | 1.20% | 1.17% | 1.20% | 1.09% | 1.08% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses after waiver5 | 1.49%6 | 1.52% | 1.45% | 1.38% | 1.27% | 1.25% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses5 | 1.51%6 | 1.54% | 1.46% | 1.38% | 1.28% | 1.25% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income5 | 6.60%6 | 6.53% | 6.58% | 6.50% | 6.54% | 6.86% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Dividends to Preferred Shareholders | 2.07%6 | 2.13% | 1.87% | 1.13% | 0.48% | 0.47% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income to Common Shareholders | 4.53%6 | 4.40% | 4.71% | 5.37% | 6.06% | 6.39% | ||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Supplemental Data | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Net assets applicable to Common Shares, | ||||||||||||||||
end of period (000) | $ 113,449 | $ 121,574 | $ 126,042 | $ 124,422 | $ 128,455 | $ 126,915 | ||||||||||
|
|
|
|
|
| |||||||||||
Preferred Shares outstanding at liquidation preference, | ||||||||||||||||
end of period (000) | $ 62,250 | $ 72,000 | $ 72,000 | $ 72,000 | $ 60,000 | $ 60,000 | ||||||||||
|
|
|
|
|
| |||||||||||
Portfolio turnover | 21% | 26% | 34% | 52% | 28% | 40% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Asset coverage end of period per $1,000 | $ 2,822 | $ 2,689 | $ 2,751 | $ 2,728 | $ 3,141 | $ 3,115 | ||||||||||
|
|
|
|
|
|
1 | Based on average shares outstanding. |
2 | 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. |
3 | Aggregate total investment return. |
4 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
5 | Do not reflect the effect of dividends to Preferred Shareholders. |
6 | Annualized. |
See Notes to Financial Statements. |
ANNUAL REPORT |
JULY 31, 2008 |
27 |
Financial Highlights | BlackRock MuniYield Michigan Insured Fund, Inc. | |||||||||||||||
Period | ||||||||||||||||
November 1, 2007 | Year Ended October 31, | |||||||||||||||
to July 31, 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||
Per Share Operating Performance | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Net asset value, beginning of period | $ 15.03 | $ 15.45 | $ 15.32 | $ 15.96 | $ 15.94 | $ 15.74 | ||||||||||
|
|
|
|
|
| |||||||||||
Net investment income1 | 0.70 | 1.06 | 1.04 | 1.08 | 1.06 | 1.10 | ||||||||||
Net realized and unrealized gain (loss) | (0.82) | (0.45) | 0.22 | (0.54) | 0.03 | 0.15 | ||||||||||
Dividends to Preferred Shareholders from net investment income | (0.23) | (0.32) | (0.29) | (0.18) | (0.07) | (0.07) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) from investment operations | (0.35) | (0.29) | 0.97 | 0.36 | 1.02 | 1.18 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Dividends to Common Shareholders from net investment income | (0.52) | (0.71) | (0.84) | (0.98) | (1.00) | (0.98) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Capital charges with respect to the issuance of Preferred Shares | | | | (0.02) | | | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ 14.16 | $ 15.03 | $ 15.45 | $ 15.32 | $ 15.96 | $ 15.94 | ||||||||||
|
|
|
|
|
| |||||||||||
Market price, end of period | $ 12.30 | $ 13.40 | $ 14.67 | $ 15.31 | $ 15.37 | $ 14.69 | ||||||||||
|
|
|
|
|
|
| ||||||||||
Total Investment Return2 | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Based on net asset value | (2.02)%3 | 2.30% | 6.64% | 2.24% | 7.04% | 8.26% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Based on market price | (4.54)%3 | (3.95)% | 1.32% | 6.10% | 11.85% | 12.57% | ||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Ratios to Average Net Assets Applicable to Common Shares | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total expenses after waiver and excluding interest expense and fees4,5 | 1.13%6 | 1.12% | 1.11% | 1.10% | 1.00% | 1.01% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses after waiver5 | 1.40%6 | 1.55% | 1.61% | 1.42% | 1.19% | 1.20% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses5 | 1.42%6 | 1.55% | 1.62% | 1.42% | 1.22% | 1.21% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income5 | 6.19%6 | 6.95% | 6.84% | 6.84% | 6.69% | 6.83% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Dividends to Preferred Shareholders | 2.05%6 | 2.12% | 1.87% | 1.13% | 0.46% | 0.45% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income to Common Shareholders | 4.14%6 | 4.83% | 4.97% | 5.71% | 6.23% | 6.38% | ||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Supplemental Data | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Net assets applicable to Common Shares, end of period (000) | $ 257,806 | $ 273,593 | $ 281,350 | $ 278,250 | $ 289,695 | $ 289,364 | ||||||||||
|
|
|
|
|
| |||||||||||
Preferred Shares outstanding at liquidation preference, end of | ||||||||||||||||
period (000) | $ 144,650 | $ 165,000 | $ 165,000 | $ 165,000 | $ 140,000 | $ 140,000 | ||||||||||
|
|
|
|
|
| |||||||||||
Portfolio turnover | 21% | 10% | 15% | 25% | 32% | 29% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Asset coverage end of period per $1,000 | $ 2,782 | $ 2,658 | $ 2,705 | $ 2,686 | $ 3,069 | $ 3,067 | ||||||||||
|
|
|
|
|
|
1 | Based on average shares outstanding. |
2 | 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. |
3 | Aggregate total investment return. |
4 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
5 | Do not reflect the effect of dividends to Preferred Shareholders. |
6 | Annualized. |
See Notes to Financial Statements. |
28 ANNUAL REPORT |
JULY 31, 2008 |
Financial Highlights | BlackRock MuniYield New Jersey Insured Fund, Inc. | |||||||||||||||
Period | ||||||||||||||||
November 1, 2007 | Year Ended October 31, | |||||||||||||||
to July 31, 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||
Per Share Operating Performance | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Net asset value, beginning of period | $ 15.02 | $ 15.42 | $ 15.07 | $ 15.46 | $ 15.25 | $ 15.14 | ||||||||||
|
|
|
|
|
| |||||||||||
Net investment income1 | 0.69 | 0.96 | 0.97 | 0.96 | 1.03 | 1.06 | ||||||||||
Net realized and unrealized gain (loss) | (0.76) | (0.42) | 0.36 | (0.27) | 0.21 | 0.06 | ||||||||||
Dividends and distributions to Preferred Shareholders from: | ||||||||||||||||
Net investment income | (0.21) | (0.28) | (0.25) | (0.16) | (0.06) | (0.06) | ||||||||||
Net realized gain | (0.01) | 2 | | | | 2 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) from investment operations | (0.29) | 0.26 | 1.08 | 0.53 | 1.18 | 1.06 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Dividends and distributions to Common Shareholders from: | ||||||||||||||||
Net investment income | (0.49) | (0.65) | (0.73) | (0.92) | (0.94) | (0.94) | ||||||||||
Net realized gain | (0.01) | (0.01) | | | | (0.01) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total dividends and distributions to Common Shareholders | (0.50) | (0.66) | (0.73) | (0.92) | (0.94) | (0.95) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Capital charges with respect to the issuance of Preferred Shares | | | | 3 | (0.03) | | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ 14.23 | $ 15.02 | $ 15.42 | $ 15.07 | $ 15.46 | $ 15.25 | ||||||||||
|
|
|
|
|
| |||||||||||
Market price, end of period | $ 12.81 | $ 13.70 | $ 14.96 | $ 14.65 | $ 15.16 | $ 14.39 | ||||||||||
|
|
|
|
|
|
| ||||||||||
Total Investment Return4 | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Based on net asset value | (1.67)%5 | 2.00% | 7.50% | 3.49% | 7.99% | 7.24% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Based on market price | (2.95)%5 | (4.10)% | 7.28% | 2.60% | 12.23% | 6.02% | ||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Ratios to Average Net Assets Applicable to Common Shares | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total expenses after waiver and excluding interest expense and fees6,7 | 1.18%8 | 1.17% | 1.15% | 1.16% | 1.06% | 1.03% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses after waiver7 | 1.24%8 | 1.37% | 1.59% | 1.52% | 1.33% | 1.29% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses7 | 1.24%8 | 1.37% | 1.59% | 1.52% | 1.35% | 1.30% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income7 | 6.18%8 | 6.30% | 6.46% | 6.21% | 6.79% | 6.89% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Dividends to Preferred Shareholders | 1.87%8 | 1.81% | 1.63% | 1.03% | 0.42% | 0.38% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income to Common Shareholders | 4.31%8 | 4.49% | 4.83% | 5.18% | 6.37% | 6.51% | ||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Supplemental Data | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Net assets applicable to Common Shares, end of period (000) | $ 125,233 | $ 132,174 | $ 135,767 | $ 132,622 | $ 135,370 | $ 133,240 | ||||||||||
|
|
|
|
|
| |||||||||||
Preferred Shares outstanding at liquidation preference, end of | ||||||||||||||||
period (000) | $ 65,700 | $ 73,500 | $ 73,500 | $ 73,500 | $ 73,500 | $ 56,000 | ||||||||||
|
|
|
|
|
| |||||||||||
Portfolio turnover | 13% | 23% | 11% | 29% | 16% | 21% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Asset coverage end of period per $1,000 | $ 2,906 | $ 2,798 | $ 2,847 | $ 2,804 | $ 2,842 | $ 3,379 | ||||||||||
|
|
|
|
|
|
1 | Based on average shares outstanding. |
2 | Amount is less than ($0.01) per share. |
3 | Amount is less than $0.01 per share. |
4 | 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. |
5 | Aggregate total investment return. |
6 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
7 | Do not reflect the effect of dividends to Preferred Shareholders. |
8 | Annualized. |
See Notes to Financial Statements. |
ANNUAL REPORT |
JULY 31, 2008 |
29 |
Financial Highlights | BlackRock MuniYield Pennsylvania Insured Fund | |||||||||||||||
Period | ||||||||||||||||
November 1, 2007 | Year Ended October 31, | |||||||||||||||
to July 31, 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||
Per Share Operating Performance | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Net asset value, beginning of period | $ 15.49 | $ 15.89 | $ 15.57 | $ 16.04 | $ 15.56 | $ 15.34 | ||||||||||
|
|
|
|
|
| |||||||||||
Net investment income1 | 0.71 | 1.01 | 1.01 | 1.05 | 1.08 | 1.11 | ||||||||||
Net realized and unrealized gain (loss) | (1.18) | (0.40) | 0.36 | (0.35) | 0.48 | 0.16 | ||||||||||
Dividends to Preferred Shareholders from net investment income | (0.22) | (0.32) | (0.27) | (0.19) | (0.08) | (0.07) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) from investment operations | (0.69) | 0.29 | 1.10 | 0.51 | 1.48 | 1.20 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Dividends to Common Shareholders from net investment income | (0.50) | (0.69) | (0.78) | (0.96) | (1.00) | (0.98) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Capital charges with respect to the issuance of Preferred Shares | | | 2 | (0.02) | | | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ 14.30 | $ 15.49 | $ 15.89 | $ 15.57 | $ 16.04 | $ 15.56 | ||||||||||
|
|
|
|
|
| |||||||||||
Market price, end of period | $ 12.43 | $ 13.67 | $ 14.60 | $ 14.91 | $ 15.61 | $ 14.81 | ||||||||||
|
|
|
|
|
|
| ||||||||||
Total Investment Return3 | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Based on net asset value | (4.18)%4 | 2.19% | 7.52% | 3.16% | 10.15% | 8.33% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Based on market price | (5.62)%4 | (1.85)% | 3.16% | 1.51% | 12.63% | 10.07% | ||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Ratios to Average Net Assets Applicable to Common Shares | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total expenses after waiver and fees paid indirectly and excluding | ||||||||||||||||
interest expense and fees5,6 | 1.13%7 | 1.13% | 1.13% | 1.13% | 1.05% | 1.07% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses after waiver and fees paid indirectly6 | 1.48%7 | 1.72% | 1.69% | 1.69% | 1.32% | 1.29% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses after waiver and before fees paid indirectly6 | 1.48%7 | 1.72% | 1.69% | 1.69% | 1.32% | 1.29% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses6 | 1.50%7 | 1.72% | 1.70% | 1.70% | 1.33% | 1.30% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income6 | 6.18%7 | 6.44% | 6.49% | 6.56% | 6.89% | 7.08% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Dividends to Preferred Shareholders | 1.93%7 | 2.02% | 1.76% | 1.17% | 0.51% | 0.47% | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income to Common Shareholders | 4.25%7 | 4.42% | 4.73% | 5.39% | 6.38% | 6.61% | ||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Supplemental Data | ||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||
Net assets applicable to Common Shares, end of period (000) | $ 164,119 | $ 177,807 | $ 182,402 | $ 178,771 | $ 183,877 | $ 178,337 | ||||||||||
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| |||||||||||
Preferred Shares outstanding at liquidation preference, end of | ||||||||||||||||
period (000) | $ 77,400 | $ 102,000 | $ 102,000 | $ 102,000 | $ 88,000 | $ 88,000 | ||||||||||
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| |||||||||||
Portfolio turnover | 24% | 35% | 25% | 42% | 41% | 41% | ||||||||||
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| |||||||||
Asset coverage end of period per $1,000 | $ 3,120 | $ 2,743 | $ 2,788 | $ 2,753 | $ 3,090 | $ 3,027 | ||||||||||
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1 | Based on average shares outstanding. |
2 | Amount is less than ($0.01) per share. |
3 | 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. |
4 | Aggregate total investment return. |
5 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
6 | Do not reflect the effect of dividends to Preferred Shareholders. |
7 | Annualized. |
See Notes to Financial Statements. |
30 ANNUAL REPORT |
JULY 31, 2008 |
Notes to Financial Statements 1. Significant Accounting Policies: BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield Michigan Insured Fund, Inc., BlackRock MuniYield New Jersey Insured Fund, Inc. and BlackRock MuniYield Pennsylvania Insured Fund (the Funds or individually, as the Fund) are registered under the Investment Company Act of 1940, as amended (the 1940 Act), as non-diversified, closed-end management investment companies. The Funds financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates. The Funds recently changed their fiscal year end to July 31. The Funds determine and make avail- able for publication the net asset value of their Common Shares on a daily basis. The following is a summary of significant accounting policies followed by the Funds: Valuation of Investments: Municipal investments (including commitments to purchase such investments on a when-issued basis) are valued on the basis of prices provided by dealers or pricing services selected under the supervision of each Funds Board of Trustees or Directors (the Board). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market trans- actions in comparable investments and various relationships between investments. Financial futures contracts traded on exchanges are valued at their last sale price. Swaps are valued by quoted fair values received daily by the funds pricing service or through brokers. Short-term securi- ties are valued at amortized cost. Investments in open-end investment companies are valued at net asset value each business day. In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment, the investment will be valued by a method approved by the Board as reflecting fair value (Fair Value Assets). When determining the price for Fair Value Assets, the invest- ment advisor and/or sub-advisor seeks to determine the price that the Fund might reasonably expect to receive from the current sale of that asset in an arms-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub- advisor deems relevant. The pricing of all Fair Value Assets is subse- quently reported to the Board or a committee thereof. Derivative Financial Instruments: The Funds may engage in various portfolio investment strategies both to increase the return of the Funds and to hedge, or protect, their exposure to interest rate movements and movements in the securities markets. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying security or if the counterparty does not perform under the contract. |
Financial futures contracts Each Fund may purchase or sell finan-
cial 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
margin variation and are recognized 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.
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. Changes in the value of the forward
interest rate swap are recognized as unrealized gains and losses.
When the agreement is closed, the Fund records a realized gain or
loss in an amount equal to the value of the agreement. The Fund
generally intends to close each forward interest rate swap before the
effective date specified in the agreement and therefore avoid entering
into the interest rate swap underlying each forward interest rate swap.
Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds leverage their assets through the use of tender option bond trusts (TOBs). A TOB is established by a third party sponsor forming a special purpose entity, into which one or more funds, or an agent on behalf of the funds, transfers municipal securities. Other funds managed by the investment advisor may also contribute municipal securities to a TOB into which each Fund has contributed securities. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates (TOB Residuals), which are generally issued to the participating fund that made the transfer. The TOB Residuals held by a Fund include the right of the Fund (1) to cause the holders of a proportional share of the floating rate certificates to tender their certificates at par, and (2) to transfer, within seven days, a corresponding share of the municipal securities from the TOB to the Fund. The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to the Fund, which typically invests the cash in additional municipal securities. Each Funds transfer of the municipal securities to a TOB is accounted for as a secured borrowing, therefore the municipal securities deposited into a TOB are presented in the Funds Schedules of Investments and the proceeds from the transaction are reported as a lia- bility of the Funds. |
ANNUAL REPORT |
JULY 31, 2008 |
31 |
Notes to Financial Statements (continued) Interest income from the underlying security is recorded by the Funds on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are reported as expenses of the Funds. The floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. At July 31, 2008, the aggregate value of the underlying municipal securities transferred to TOBs, the related liability for trust certificates and the range of interest rates on the liability for the trust certificates were as follows: |
Underlying | ||||||
Municipal | ||||||
Securities | Liability for | Range of | ||||
Transferred | Trust | Interest | ||||
to TOBs | Certificates | Rates | ||||
|
|
|
|
|||
BlackRock MuniYield | ||||||
Florida Insured | 1.761% | |||||
Fund | $31,674,526 | $18,350,484 | 2.545% | |||
Blackrock MuniYield | ||||||
Michigan Insured | 1.735% | |||||
Fund, Inc | $77,426,605 | $42,955,691 | 2.524% | |||
BlackRock MuniYield | ||||||
New Jersey Insured | 1.739% | |||||
Fund, Inc | $15,994,268 | $ 9,957,080 | 2.084% | |||
BlackRock MuniYield | ||||||
Pennsylvania | 1.719% | |||||
Insured Fund | $59,771,740 | $35,840,906 | 2.610% | |||
|
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|
Financial transactions executed through TOBs generally will underperform the market for fixed rate municipal bonds in a rising interest rate envi- ronment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Should short-term interest rates rise, the Funds investments in TOBs likely will adversely affect each Funds investment income and dividends to Common Shareholders. Fluctuations in the market value of municipal securities deposited into the TOB may adversely affect each Funds net asset value per share. Zero-Coupon Bonds: The Funds may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide regular interest payments. Segregation: In cases in which the 1940 Act and the interpretive posi- tions of the Securities and Exchange Commission (SEC) require that the Funds segregate assets in connection with certain investments (e.g., futures and swaps) or certain borrowings, each Fund will, consis- tent with certain interpretive letters issued by the SEC, designate on its books and records cash or other liquid debt securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. |
Investment Transactions and Investment Income: Investment trans- actions 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 method. The Funds amortize all premiums and discounts on debt securities. Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are record- ed on the ex-dividend dates. Dividends and distributions to holders of Preferred Shares are accrued and determined as described in Note 4. Income Taxes: It is each Funds policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment compa- nies and to distribute substantially all of its taxable income to its share- holders. Therefore, no federal income tax provision is required. Effective April 30, 2008, the Funds implemented Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes an interpretation of FASB Statement No. 109 (FIN 48). FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including investment companies, before being measured and recognized in the financial statements. The investment advisor has evaluated the application of FIN 48 to each Fund, and has determined that the adop- tion of FIN 48 does not have a material impact on each Funds financial statements. The Funds file U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Funds U.S. federal tax returns remains open for the years ended October 31, 2005 through October 31, 2007. The statutes of limitations on each Funds state and local tax returns may remain open for an additional year depending upon the jurisdiction. Recent Accounting Pronouncements: In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (FAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a frame- work for measuring fair value and expands disclosures about fair value measurements. The impact on each Funds financial statement disclo- sures, if any, is currently being assessed. In addition, in February 2007, Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (FAS 159), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. FAS 159 also establishes presentation and disclosure requirements |
32 ANNUAL REPORT |
JULY 31, 2008 |
Notes to Financial Statements (continued) designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. The impact on each Funds financial statement disclosures, if any, is currently being assessed. In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities an amendment of FASB Statement No. 133 (FAS 161) was issued and is effective for fiscal years beginning after November 15, 2008. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entitys results of operations and financial position. The impact on each Funds financial statement disclosures, if any, is currently being assessed. Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Funds Board, non-interested Trustees or Directors (Independent Trustees or Directors) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees or Directors. This has approximately the same economic effect for the Independent Trustees or Directors as if the Independent Trustees or Directors had invested the deferred amounts directly in other certain BlackRock Closed-End Funds. The deferred compensation plan is not funded and obligations there- under represent general unsecured claims against the general assets of each Fund. Each Fund may, however, elect to invest in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees or Directors in order to match their deferred compensation obligations. Other: Expenses directly related to each Fund are charged to that Fund. Other operating expenses shared by several funds are pro-rated among those funds on the basis of relative net assets or other appro- priate methods. 2. Investment Advisory Agreement and Other Transactions with Affiliates: Each Fund entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the Advisor), an indirect, wholly owned subsidiary of BlackRock, Inc., to provide investment advisory and admin- istration services. Merrill Lynch & Co., Inc. (Merrill Lynch) and The PNC Financial Services Group, Inc. are principal owners of BlackRock, Inc. The Advisor is responsible for the management of each Funds portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Funds. For such ser- |
vices, each Fund pays the Advisor a monthly fee at an annual rate of 0.50% of each Funds average daily net assets. Average daily net assets is the average daily value of each Funds total assets minus the sum of its accrued liabilities. The Advisor has agreed to waive its advisory fees by the amount of investment advisory fees each Fund pays to the Advisor indirectly through its investment in affiliated money market funds. These amounts are included in fees waived by advisor on the Statements of Operations. The Advisor has entered into a separate sub-advisory agreement with BlackRock Investment Management, LLC (BIM), an affiliate of the Advisor, under which the Advisor pays BIM for services it provides, a monthly fee that is a percentage of the investment advisory fee paid by the Funds to the Advisor. For the period November 1, 2007 to July 31, 2008 and the year ended October 31, 2007, each Fund reimbursed the Advisor for certain accounting services, which are included in accounting services on the Statements of Operations. The reimbursements were as follows: |
Period Ended | Year Ended | |||
7/31/2008 | 10/31/2007 | |||
|
|
|
||
BlackRock MuniYield Florida | ||||
Insured Fund | $2,367 | $3,646 | ||
BlackRock MuniYield Michigan | ||||
Insured Fund, Inc | $5,419 | $8,234 | ||
BlackRock MuniYield New Jersey | ||||
Insured Fund, Inc | $2,423 | $3,862 | ||
BlackRock MuniYield Pennsylvania | ||||
Insured Fund | $3,626 | $5,279 | ||
|
|
|
Pursuant to the terms of the custody agreement, fees may be reduced by amounts calculated on uninvested cash balances (custody credits), which are on the Statements of Operations as fees paid indirectly. Certain officers and/or trustees or directors of each Fund are officers and/or directors of BlackRock, Inc. or its affiliates. The Funds reimburse the Advisor for compensation paid to the Funds Chief Compliance Officer. 3. Investments: Purchases and sales of investments, excluding short-term securities, for the period November 1, 2007 to July 31, 2008, were as follows: |
Total | Total | |||
Purchases | Sales | |||
|
|
|
||
BlackRock MuniYield Florida | ||||
Insured Fund | $40,475,733 | $ 50,304,812 | ||
BlackRock MuniYield Michigan | ||||
Insured Fund, Inc | $94,172,608 | $ 96,137,352 | ||
BlackRock MuniYield New Jersey | ||||
Insured Fund, Inc | $32,866,271 | $ 25,247,204 | ||
BlackRock MuniYield Pennsylvania | ||||
Insured Fund | $67,162,308 | $103,529,778 | ||
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ANNUAL REPORT |
JULY 31, 2008 |
33 |
Notes to Financial Statements (continued) 4. Capital Share Transactions: BlackRock MuniYield Florida Insured Fund and BlackRock MuniYield Pennsylvania Insured Fund are authorized to issue an unlimited number of Common Shares of beneficial interest, par value $0.10 per share together with 1,000,000 Preferred Shares of beneficial interest, par value of $0.05 per share. The Funds Board is authorized, however, to classify and reclassify any unissued shares of capital shares without approval of the holders of Common Shares. BlackRock MuniYield Michigan Insured Fund, Inc. and BlackRock MuniYield New Jersey Insured Fund, Inc. are authorized to issue 200,000,000 shares, including Preferred Shares, par value $0.10 per share or $0.05 per share, all of which were initially classified as Common Shares. The Funds Board is authorized, however, to classify any reclassify any unissued shares of capital shares without approval of holders of Common Shares. Common Shares BlackRock MuniYield Florida Insured Fund Shares issued and outstanding during the period November 1, 2007 to July 31, 2008 and the year ended October 31, 2007 remained con- stant. Shares issued and outstanding during the year ended October 31, 2006 increased by 1,851 as a result of dividend reinvestment. BlackRock MuniYield Michigan Insured Fund, Inc. Shares issued and outstanding during the period November 1, 2007 to July 31, 2008 and the year ended October 31, 2007 remained con- stant. Shares issued and outstanding during the year ended October 31, 2006 increased by 40,195 as a result of dividend reinvestment. BlackRock MuniYield New Jersey Insured Fund, Inc. Shares issued and outstanding during the period November 1, 2007 to July 31, 2008 and the years ended October 31, 2007 and October 31, 2006 remained constant. BlackRock MuniYield Pennsylvania Insured Fund Shares issued and outstanding during the period November 1, 2007 to July 31, 2008 and the years ended October 31, 2007 and October 31, 2006 remained constant. Preferred Shares Preferred Shares of the Funds have a liquidation preference of $25,000 per share, plus accrued and unpaid dividends that entitles their holders to receive cash dividends at an annual rate that may vary for the suc- cessive dividend periods. BlackRock MuniYield Florida Insured Fund and BlackRock MuniYield Pennsylvania Insured Fund have a par value of $0.05 per share. BlackRock MuniYield Michigan Insured Fund, Inc. has a par value of $0.05 per share on Series A Shares, Series B Shares and Series C |
Shares, and $0.10 per share on Series D Shares. BlackRock MuniYield New Jersey Insured Fund, Inc. has a par value of $0.05 per share for Series A Shares and $0.10 per share for Series B Shares. The yields in effect at July 31, 2008 were as follows: |
BlackRock | ||||
BlackRock | MuniYield | |||
MuniYield Florida | Michigan Insured | |||
Insured Fund | Fund, Inc. | |||
|
|
| ||
Series A | 3.579%1 | 3.503%1 | ||
Series B | 4.215%2 | 3.579%1 | ||
Series C | | 3.427%1 | ||
Series D | | 4.354%2 | ||
|
|
| ||
BlackRock | BlackRock | |||
MuniYield | MuniYield | |||
New Jersey Insured | Pennsylvania | |||
Fund, Inc. | Insured Fund | |||
|
|
| ||
Series A | 3.579%1 | 3.579%1 | ||
Series B | 4.132%2 | 3.503%1 | ||
Series C | | 4.132%2 | ||
|
|
|
1 The maximum applicable rate on this series of Preferred Shares is the higher of
110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P
30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.
2 The maximum applicable rate on this series of Preferred Shares is the higher of
110% plus or times (i) the Telerate/BBA LIBOR or (ii) 90% of the Kenny S&P
30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.
Each Fund pays commissions to certain broker-dealers at the end of
each auction at an annual rate of 0.25%, calculated on the aggregate
principal amount. For the period November 1, 2007 to July 31, 2008
and the year ended October 31, 2007, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, a wholly owned subsidiary of Merrill Lynch, earned
commissions as follows:
Period Ended | Year Ended | |||
7/31/2008 | 10/31/2007 | |||
|
|
| ||
BlackRock MuniYield Florida | ||||
Insured Fund | $ 86,890 | $115,812 | ||
BlackRock MuniYield Michigan | ||||
Insured Fund, Inc | $150,895 | $186,966 | ||
BlackRock MuniYield New Jersey | ||||
Insured Fund, Inc | $ 81,336 | $105,471 | ||
BlackRock MuniYield Pennsylvania | ||||
Insured Fund | $112,489 | $147,665 | ||
|
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On June 2, 2008, the Funds announced the following redemptions of Preferred Shares at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date: |
BlackRock MuniYield | Redemption | Shares | Aggregate | |||
Florida Insured Fund | Date | Redeemed | Principal | |||
|
|
|
| |||
Series A | 6/24/2008 | 325 | $ 8,125,000 | |||
Series B | 6/26/2008 | 65 | $ 1,625,000 | |||
|
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|
34 ANNUAL REPORT |
JULY 31, 2008 |
Notes to Financial Statements (continued)
BlackRock MuniYield | Redemption | Shares | Aggregate | |||
Michigan Insured Fund, Inc. | Date | Redeemed | Principal | |||
|
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Series A | 6/25/2008 | 247 | $ 6,175,000 | |||
Series B | 6/23/2008 | 247 | $ 6,175,000 | |||
Series C | 6/26/2008 | 197 | $ 4,925,000 | |||
Series D | 6/24/2008 | 123 | $ 3,075,000 | |||
|
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BlackRock MuniYield | Redemption | Shares | Aggregate | |||
New Jersey Insured Fund, Inc. | Date | Redeemed | Principal | |||
|
|
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Series A | 6/23/2008 | 238 | $ 5,950,000 | |||
Series B | 6/27/2008 | 74 | $ 1,850,000 | |||
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BlackRock MuniYield | Redemption | Shares | Aggregate | |||
Pennsylvania Insured Fund | Date | Redeemed | Principal | |||
|
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Series A | 6/24/2008 | 386 | $ 9,650,000 | |||
Series B | 6/25/2008 | 463 | $11,575,000 | |||
Series C | 6/27/2008 | 135 | $ 3,375,000 | |||
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The Funds financed the Preferred Shares redemptions with cash received from TOB transactions. Shares issued and outstanding during the years ended October 31, 2007 and October 31, 2006 remained constant. Dividends on seven-day Preferred Shares are cumulative at a rate which is reset every seven days based on the results of an auction. If the Preferred Shares fail to clear the auction on an auction date, each Fund is required to pay the maximum applicable rate on the Preferred Shares to holders of such shares for successive dividend periods until such time as the stock is successfully auctioned. The maximum applica- ble rate on Preferred Shares is as footnoted on the above chart. During the period November 1, 2007 to July 31, 2008, the Preferred Shares of each Fund were successfully auctioned at each auction date until February 13, 2008. The low, high and average dividend rates on the Preferred Shares for each Fund for the period November 1, 2007 to July 31, 2008 were as follows: |
BlackRock MuniYield Florida Insured Fund | ||||||
|
|
|
||||
Low | High | Average | ||||
|
|
|
|
|||
Series A | 2.483% | 4.750% | 3.433% | |||
Series B | 3.200% | 5.060% | 3.926% | |||
|
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|
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BlackRock MuniYield Michigan Insured Fund, Inc. | ||||||
|
|
|
||||
Low | High | Average | ||||
|
|
|
|
|||
Series A | 2.535% | 4.600% | 3.399% | |||
Series B | 2.483% | 4.508% | 3.348% | |||
Series C | 2.480% | 4.500% | 3.369% | |||
Series D | 2.575% | 5.198% | 3.886% | |||
|
|
|
|
BlackRock MuniYield New Jersey Insured Fund, Inc. | ||||||
|
|
|
||||
Low | High | Average | ||||
|
|
|
|
|||
Series A | 2.483% | 4,508% | 3.294% | |||
Series B | 2.699% | 5.198% | 3.799% | |||
|
|
|
|
|||
BlackRock MuniYield Pennsylvania Insured Fund | ||||||
|
|
|
||||
Low | High | Average | ||||
|
|
|
|
|||
Series A | 2.483% | 4,508% | 3.347% | |||
Series B | 2.535% | 4.356% | 3.380% | |||
Series C | 2.900% | 5.198% | 3.881% | |||
|
|
|
|
Since February 13, 2008, the Preferred Shares of each Fund failed to clear any of their auctions. As a result, the Preferred Shares dividend rates were reset to the maximum applicable rate, which ranged from 2.483% to 5.198% . A failed auction is not an event of default for the Funds but it has a negative impact on the liquidity of the Preferred Shares. A failed auction occurs when there are more sellers of a funds auction rate Preferred Shares than buyers. It is impossible to predict how long this imbalance will last. A successful auction for each Funds Preferred Shares may not occur for some time, if ever, and even if liquidity does resume, holders of Preferred Shares may not have the ability to sell the Preferred Shares at its liquidation preference. The Funds may not declare dividends or make other distributions on Common Shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding Preferred Shares is less than 200%. The Preferred Shares are redeemable at the option of each Fund, in whole or in part, on any dividend payment date at $25,000 per share plus any accumulated unpaid dividends whether or not declared. The Preferred Shares are also subject to mandatory redemption at $25,000 per share plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of the Fund, as set forth in each Funds Articles Supplementary/ Certificate of Designation, are not satisfied. The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, holders of Preferred Shares, voting as a separate class, are also entitled to elect two Trustees or Directors for each Fund. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change each Funds subclassification as a closed-end investment company or change its fundamental invest- ment restrictions or (c) change its business so as to cease to be an investment company. |
ANNUAL REPORT |
JULY 31, 2008 |
35 |
Notes to Financial Statements (continued) 5. Income Tax Information: Reclassifications: Accounting principles generally accepted in the United States of America require that certain components of net assets be adjust- ed to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. During the current period, $505,802 has been reclassified in BlackRock MuniYield Florida Insured Fund between paid-in capital in excess of par and accumulated net realized loss, and $29,047 has been reclassi- fied between accumulated net realized loss and undistributed net investment income as a result of permanent differences attributable to expiration of capital loss carryforwards and amortization methods on fixed income securities. During the current period, $6,685,590 has been reclassified in BlackRock MuniYield Michigan Insured Fund, Inc. between paid-in capital in excess of par and accumulated net realized losses, and $4,208 has been reclas- sified between undistributed net investment income and accumulated net realized losses as a result of permanent differences attributable to expiration of capital loss carryforwards and amortization methods on fixed income securities. During the current period, $13,936 has been reclassified in BlackRock MuniYield New Jersey Insured Fund, Inc. between undistributed net invest- ment income and accumulated net realized loss as a result of permanent differences attributable to the reclassification of distributions. During the current period, $845,375 has been reclassified in BlackRock MuniYield Pennsylvania Insured Fund between paid-in capital in excess of par and accumulated net realized loss and $48,916 has been reclassi- fied between undistributed net investment income and accumulated net realized loss as a result of permanent differences attributable to expiration of capital loss carryforwards and amortization methods on fixed income securities. BlackRock MuniYield Florida Insured Fund The tax character of distributions paid during the period November 1, 2007 to July 31, 2008 and the years ended October 31, 2007 and October 31, 2006 was as following: |
11/01/07 | ||||||
7/31/2008 | 10/31/2007 | 10/31/2006 | ||||
|
|
| ||||
Distributions paid from: | ||||||
Tax-exempt income | $5,962,814 | $8,353,499 | $8,662,428 | |||
|
|
| ||||
Total distributions | $5,962,814 | $8,353,499 | $8,662,428 | |||
|
|
|
As of July 31, 2008, the components of accumulated losses on a tax basis were as follows: |
Undistributed tax-exempt net income | $ 321,473 | |
Undistrubuted ordinary net income | 108,983 | |
| ||
Total undistributed net earnings | 430,456 | |
Capital loss carryforward | (2,851,819)* | |
Net unrealized losses | (2,045,167)** | |
| ||
Total accumulated net losses | $ (4,466,530) | |
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* On July 31, 2008, the Fund had a capital loss carryforward of $2,851,819, of which $2,081,725 expires in 2012 and $770,094 expires in 2016. This amount will be available to offset future realized capital gains. ** The difference between book-basis and tax-basis net unrealized losses is attribut- able primarily to the tax deferral of losses on wash sales, the tax deferral of losses on straddles and the difference between book and tax treatment of residual inter- ests in tender option bond trusts. |
BlackRock MuniYield Michigan Insured Fund, Inc. The tax character of distributions paid during the period November 1, 2007 to July 31, 2008 and the years ended October 31, 2007 and October 31, 2006 was as follows: |
11/01/07 | ||||||
7/31/2008 | 10/31/2007 | 10/31/2006 | ||||
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Distributions paid from: | ||||||
Tax-exempt income | $13,697,591 | $18,813,492 | $20,420,247 | |||
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Total distributions | $13,697,591 | $18,813,492 | $20,420,247 | |||
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As of July 31, 2008, the components of accumulated losses on a tax basis were as follows: |
Undistributed tax-exempt net income | $ 719,029 | |
Capital loss carryforward | (6,838,200)* | |
Net unrealized gains | 3,001** | |
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Total accumulated net losses | $ (6,116,170) | |
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* On July 31, 2008, the Fund had a capital loss carryforward of $6,838,200, of which $1,124,652 expires in 2010, $3,953,220 expires in 2012 and $1,760,328 expires in 2016. This amount will be available to offset future realized capital gains. ** The difference between book-basis and tax-basis net unrealized gains is attributable primarily to the tax deferral of losses on wash sales, the tax deferral of losses on straddles, the difference between book and tax amortization methods for premiums and discounts on fixed income securities and the difference between book and tax treatment of residual interests in tender option bond trusts. |
BlackRock MuniYield New Jersey Insured Fund, Inc. The tax character of distributions paid during the period November 1, 2007 to July 31, 2008 and the years ended October 31, 2007 and October 31, 2006 was as follows: |
36 ANNUAL REPORT |
JULY 31, 2008 |
Notes to Financial Statements (continued)
11/01/07 | ||||||
7/31/2008 | 10/31/2007 | 10/31/2006 | ||||
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Distributions paid from: | ||||||
Tax-exempt income | $6,108,209 | $8,168,618 | $8,554,371 | |||
Ordinary income | 16,458 | 53,500 | | |||
Long-term capital gain | 146,310 | 41,022 | | |||
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Total distributions | $6,270,977 | $8,263,140 | $8,554,371 | |||
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As of July 31, 2008, the components of accumulated earnings on a tax basis were as follows: |
Undistributed tax-exempt net income | $ 987,246 | |
Undistributed long-term net capital gains | 331,517 | |
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Total undistributed net earnings | 1,318,763 | |
Net unrealized losses | (222,390)* | |
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Total accumulated net earnings | $ 1,096,373 | |
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* The difference between book-basis and tax-basis net unrealized losses is attribut- able primarily to the tax deferral of losses on straddles, the difference between book and tax amortization methods for premiums and discounts on fixed income securities and the difference between book and tax treatment of residual interests in tender option bond trusts. |
BlackRock MuniYield Pennsylvania Insured Fund The tax character of distributions paid during the period November 1, 2007 to July 31, 2008 and the years ended October 31, 2007 and October 31, 2006 was as follows: |
11/01/07 | ||||||
7/31/2008 | 10/31/2007 | 10/31/2006 | ||||
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Distributions paid from: | ||||||
Tax-exempt income | $8,276,785 | $11,548,821 | $12,133,186 | |||
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Total distributions | $8,276,785 | $11,548,821 | $12,133,186 | |||
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As of July 31, 2008, the components of accumulated losses on a tax basis were as follows: |
Undistributed tax-exempt net income | $ 311,679 | |
Net unrealized losses | (6,428,991)* | |
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Total accumulated net losses | $ (6,117,312) | |
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* The difference between book-basis and tax-basis net unrealized losses is attribut- able primarily to the tax deferral of losses on straddles, the difference between book and tax amortization methods for premiums and discounts on fixed income securities and the difference between book and tax treatment of residual interests in tender option bond trusts. |
6. Concentration Risk: Each Funds investments are concentrated in certain states, which may be affected by adverse financial, social, environmental, economic, regulatory and political factors. |
Many municipalities insure repayment of their bonds, which reduces the risk of loss due to issuer default. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation. 7. Restatement Information (For BlackRock MuniYield Michigan Insured Fund, Inc.): Subsequent to the initial issuance of BlackRock MuniYield Michigan Insured Fund, Inc. October 31, 2006 financial statements, the Fund determined that the criteria for sale accounting in FAS 140 had not been met for certain transfers of municipal bonds and that these transfers should have been accounted for as secured borrowings rather than as sales. As a result, certain financial highlights for each of the three years in the period ended October 31, 2005 have been restated to give effect to recording the transfers of the municipal bonds as secured borrowings, including recording interest on the bonds as interest income and interest on the secured borrowings as interest expense. |
Financial Highlights for BlackRock MuniYield Michigan Insured Fund, Inc. Years Ended October 31, 2005, 2004 and 2003 |
2005 | 2004 | 2003 | ||||||||||||||
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Previously | Previously | Previously | ||||||||||||||
Reported | Restated Reported | Restated Reported | Restated | |||||||||||||
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Total expenses, | ||||||||||||||||
after waiver5 | 1.10% | 1.42% | 1.00% | 1.19% | 1.01% | 1.20% | ||||||||||
Total expenses5 | 1.10% | 1.42% | 1.02% | 1.22% | 1.03% | 1.21% | ||||||||||
Portfolio turnover | 30.16% | 25% | 36.63% | 32% | 33.39% | 29% | ||||||||||
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5 Do not reflect the effect of dividends to Preferred Shareholders. |
8. Subsequent Events: BlackRock MuniYield Florida Insured Fund The Fund paid a net investment income dividend to holders of Common Shares in the amount of $0.0535 per share on September 2, 2008 to shareholders of record on August 15, 2008. The dividends declared on Preferred Shares for the period August 1, 2008 to August 31, 2008 were as follows: |
Series A | $133,006 | |
Series B | $ 33,537 | |
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BlackRock MuniYield Michigan Insured Fund, Inc. The Fund paid a net investment income dividend to holders of Common Shares in the amount of $0.054 per share on September 2, 2008 to shareholders of record on August 15, 2008. |
ANNUAL REPORT |
JULY 31, 2008 |
37 |
Notes to Financial Statements (concluded) The dividends declared on Preferred Shares for the period August 1, 2008 to August 31, 2008 were as follows: |
Series A | $109,965 | |
Series B | $111,347 | |
Series C | $ 87,266 | |
Series D | $ 72,143 | |
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BlackRock MuniYield New Jersey Insured Fund, Inc. The Fund paid a net investment income dividend to holders of Common Shares in the amount of $0.054 per share on September 2, 2008 to shareholders of record on August 15, 2008. The dividends declared on Preferred Shares for the period August 1, 2008 to August 31, 2008 were as follows: |
Series A | $127,163 | |
Series B | $ 50,285 | |
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BlackRock MuniYield Pennsylvania Insured Fund The Fund paid a net investment income dividend to holders of Common Shares in the amount of $0.053 per share on September 2, 2008 to shareholders of record on August 15, 2008. The dividends declared on Preferred Shares for the period August 1, 2008 to August 31, 2008 were as follows: |
Series A | $82,212 | |
Series B | $76,653 | |
Series C | $28,904 | |
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On September 12, 2008, the Board of Directors of BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield Michigan Insured Fund, Inc., BlackRock MuniYield New Jersey Insured Fund, Inc. and BlackRock MuniYield Pennsylvania Insured Fund voted unanimously to change certain investment guidelines of the Funds. Under normal market conditions, the Funds are required to invest at least 80% of their total assets in municipal bonds either (i) insured under an insurance policy purchased by the Funds or (ii) insured under an insurance policy obtained by the issuer of the municipal bond or any other party. Historically, the Funds have had an additional non-fundamental invest- ment policy limiting its purchase of insured municipal bonds to those bonds insured by insurance providers with claims-paying abilities rated AAA or Aaa at the time of investment. Following the onset of the credit and liquidity crises currently troubling the financial markets, the applicable rating agencies lowered the claims- paying ability rating of most of the municipal bond insurance providers below the highest rating category. As a result, the Advisor recommended, and the Board approved, an amended policy with respect to the pur- chase of insured municipal bonds that such bonds must be insured by |
insurance providers or other entities with claims-paying abilities rated at least investment grade. This investment grade restriction is measured at the time of investment, and the Funds will not be required to dispose of municipal bonds they hold in the event of subsequent downgrades. The approved changes do not alter the Funds investment objectives. In addition, on September 12, 2008, the Board of Directors of BlackRock MuniYield Florida Insured Fund voted unanimously to change a non-fundamental investment policy of the Fund, and to rename the Fund BlackRock MuniYield Insured Investment Fund. The Funds previ- ous non-fundamental investment policy required the Fund, under normal market conditions, to invest at least 80% of its assets in Florida municipal bonds insured by insurers with claims-paying abilities rated AAA at time of investment. Due to the repeal of the Florida Intangible Personal Property Tax as of January 2007, the Board has approved an amended policy allowing the Fund flexibility to invest in municipal obligations regardless of geographic location, as well as revising the policy with respect to the claims-paying ability rating adopted by the Fund. The Fund's new investment policy is, under normal market conditions, to invest at least 80% of its assets in municipal bonds insured by insurers or other entities with claims-paying abilities rated at least investment grade at time of investment. The approved changes will not alter the Funds investment objective. Under current market conditions, the Advisor anticipates that it will gradually reposition the BlackRock MuniYield Insured Investment Fund's portfolio over time and that during such period, the Fund may continue to hold a substantial portion of its assets in Florida municipal bonds. At this time, it is uncertain how long the repositioning may take, and the Fund will continue to be subject to risks associated with investing a significant portion of its assets in Florida municipal bonds until the repositioning is complete. The Advisor and the Board believe the amended policies will allow the Advisor to better manage the Funds portfolios in the best interests of the Funds shareholders and to better meet the Funds' investment objectives. On September 15, 2008, Bank of America Corporation announced that it has agreed to acquire Merrill Lynch, one of the principal owners of BlackRock, Inc. The purchase has been approved by the directors of both companies. Subject to shareholder and regulatory approvals, the transaction is expected to close in the first quarter of 2009. |
38 ANNUAL REPORT |
JULY 31, 2008 |
Report of Independent Registered Public Accounting Firm |
To the Shareholders and Boards of Directors or Trustees of BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield Michigan Insured Fund, Inc., BlackRock MuniYield New Jersey Insured Fund, Inc. and BlackRock MuniYield Pennsylvania Insured Fund: We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of BlackRock MuniYield Florida Insured Fund, Blackrock MuniYield New Jersey Insured Fund, Inc. and BlackRock MuniYield Pennsylvania Insured Fund, as of July 31, 2008, and the related statements of operations for the period November 1, 2007 to July 31, 2008 and the year ended October 31, 2007, the statements of changes in net assets for the period November 1, 2007 to July 31, 2008 and for each of the two years in the period ended October 31, 2007, and the financial highlights for the period November 1, 2007 to July 31, 2008 and for each of the five years in the period ended October 31, 2007. We have also audited the accompanying statement of assets and liabilities, including the schedule of investments, of BlackRock MuniYield Michigan Insured Fund, Inc. as of July 31, 2008, and the related statements of operations for the period November 1, 2007 to July 31, 2008 and the year ended October 31, 2007, and the statements of changes in net assets and financial highlights for the period November 1, 2007 to July 31, 2008 and for each of the two years in the period ended October 31, 2007. BlackRock MuniYield Florida Insured Fund, Blackrock MuniYield New Jersey Insured Fund, Inc., BlackRock MuniYield Pennsylvania Insured Fund and BlackRock MuniYield Michigan Insured Fund, Inc. are collective- ly referred to as the Funds. These financial statements and financial highlights are the responsibility of the Funds management. Our responsi- bility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights of BlackRock MuniYield Michigan Insured Fund, Inc. for each of the three years in the period ended October 31, 2005 (before the restatement described in Note 7) were audited by other auditors whose report, dated December 9, 2005, expressed a qualified opinion on those financial highlights because of the errors described in Note 7. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assur- ance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, audits of their internal control over financial reporting. Our audits included consideration of internal control over finan- cial reporting as a basis for designing audit procedures that are appro- priate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclo- sures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluat- ing the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2008 by correspondence with the custodian and brokers; where replies were not received from bro- kers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. |
In our opinion, the financial statements and financial highlights of BlackRock MuniYield Florida Insured Fund, Blackrock MuniYield New Jersey Insured Fund, Inc. and BlackRock MuniYield Pennsylvania Insured Fund, referred to above present fairly, in all material respects, the respec- tive financial positions of each of those funds as of July 31, 2008, the results of their operations for the period November 1, 2007 to July 31, 2008 and for the year ended October 31, 2007, the changes in their net assets for the period November 1, 2007 to July 31, 2008 and for each of the two years in the period ended October 31, 2007, and the financial highlights for the period November 1, 2007 to July 31, 2008 and for each of the five years in the period ended October 31, 2007, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights of BlackRock MuniYield Michigan Insured Fund, Inc. as of July 31, 2008, the results of its operations for the period November 1, 2007 to July 31, 2008 and for the year ended October 31, 2007, and the changes in its net assets and financial highlights for the period November 1, 2007 to July 31, 2008 and for each of the two years in the period ended October 31, 2007, in conformity with accounting principles generally accepted in the United States of America. We also have audited the adjustments, applied by management, to restate certain financial highlights of BlackRock MuniYield Michigan Insured Fund, Inc. (the Michigan Insured Fund) for each of the three years in the period ended October 31, 2005, to correct the errors described in Note 7. These adjustments are the responsibility of the Michigan Insured Funds management. The audit procedures that we per- formed with respect to the adjustments included such tests as we consid- ered necessary in the circumstances and were designed to obtain rea- sonable assurance about whether the adjustments are appropriate and have been properly applied, in all material respects, to the restated infor- mation in Michigan Insured Funds financial highlights for each of the three years in the period ended October 31, 2005. We did not perform any audit procedures designed to assess whether any additional adjust- ments or disclosures to Michigan Insured Funds financial highlights for each of the three years in the period ended October 31, 2005 might be necessary in order for such financial highlights to be presented in con- formity with accounting principles generally accepted in the United States of America. In our opinion, the adjustments to the financial highlights of Michigan Insured Fund for each of the three years in the period ended October 31, 2005, for the restatement described in Note 7 are appropri- ate and have been properly applied, in all material respects. However, we were not engaged to audit, review, or apply any procedures to Michigan Insured Funds financial highlights other than with respect to the adjust- ments described in Note 7 and, accordingly, we do not express an opinion or any other form of assurance on the Michigan Insured Funds financial highlights for each of the three years in the period ended October 31, 2005. |
Deloitte & Touche LLP Princeton, New Jersey September 25, 2008 |
ANNUAL REPORT |
JULY 31, 2008 |
39 |
Important Tax Information All of the net investment income distributions paid by BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield Michigan Insured Fund, Inc., and BlackRock MuniYield Pennsylvania Insured Fund during the period ended July 31, 2008 qualify as tax-exempt interest dividends for federal income tax purposes. The following table summarizes the taxable per share distributions paid by BlackRock MuniYield New Jersey Insured Fund, Inc. during the taxable period ended July 31, 2008: |
Payable | Ordinary | Long-Term | ||||
Date | Income | Capital Gains | ||||
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Common Shareholders | 12/31/2007 | $0.001126 | $0.011311 | |||
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Preferred Shareholders: | ||||||
Series A | 11/26/2007 | $1.37 | $13.98 | |||
Series B | 11/30/2007 | $1.36 | $13.67 | |||
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All other net investment income distributions paid by BlackRock MuniYield New Jersey Insured Fund during the taxable period ended July 31, 2008 qualify as tax-exempt interest dividends for federal income tax purposes. |
40 ANNUAL REPORT |
JULY 31, 2008 |
Disclosure of Investment Advisory Agreement and Subadvisory Agreement |
The Board of Directors (collectively, the Board, the members of which are referred to as Directors) of the BlackRock MuniYield Florida Insured Fund (MFT), BlackRock MuniYield Michigan Insured Fund, Inc. (MIY), BlackRock MuniYield New Jersey Insured Fund, Inc. (MJI) and BlackRock MuniYield Pennsylvania Insured Fund (MPA, and together with MFT, MIY and MJI, the Funds) met in April and May 2008 to con- sider approving the continuation of each Funds investment advisory agreement (each, an Advisory Agreement) with BlackRock Advisors, LLC (the Advisor), each Funds investment adviser. The Board also consid- ered the approval of each Funds subadvisory agreement (each, a Subadvisory Agreement and, together with the Advisory Agreement, the Agreements) between the Advisor and BlackRock Investment Management, LLC (the Subadvisor). The Advisor and the Subadvisor are collectively referred to herein as the Advisors and, together with BlackRock, Inc., BlackRock. Activities and Composition of the Board The Board of each Fund consists of thirteen individuals, eleven of whom are not interested persons of the Funds as defined in the Investment Company Act of 1940 (the 1940 Act) (the Independent Directors). The Directors are responsible for the oversight of the operations of the Funds and perform the various duties imposed on the directors of invest- ment companies by the 1940 Act. The Independent Directors have retained independent legal counsel to assist them in connection with their duties. The Chairman of the Board is an Independent Director. The Board has established four standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee and a Performance Oversight Committee. Advisory Agreement and Subadvisory Agreement Upon the consummation of the combination of BlackRock, Inc.s invest- ment management business with Merrill Lynch & Co., Inc.s investment management business, including Merrill Lynch Investment Managers, L. ., and certain affiliates, each Fund entered into an Advisory Agreement and a Subadvisory Agreement, each with an initial two-year term. Consistent with the 1940 Act, after the Advisory Agreements and Subadvisory Agreements respective initial two-year term, the Board is required to consider the continuation of each Funds Advisory Agreement and Subadvisory Agreement on an annual basis. In connection with this process, the Board assessed, among other things, the nature, scope and quality of the services provided to each Fund by the personnel of BlackRock and its affiliates, including investment advisory services, administrative services, secondary market support services, oversight of fund accounting and custody, and assistance in meeting legal and regu- latory requirements. The Board also received and assessed information regarding the services provided to each Fund by certain unaffiliated service providers. |
Throughout the year, the Board also considered a range of information in connection with its oversight of the services provided by BlackRock and its affiliates. Among the matters the Board considered were: (a) invest- ment performance for one-, three- and five-year periods, as applicable, against peer funds, as well as senior management and portfolio man- agers analysis of the reasons for underperformance, if applicable; (b) fees, including advisory, administration and other fees paid to BlackRock and its affiliates by each Fund, as applicable; (c) Fund oper- ating expenses paid to third parties; (d) the resources devoted to and compliance reports relating to each Funds investment objective, policies and restrictions; (e) each Funds compliance with its Code of Ethics and compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRocks and other service providers internal controls; (h) BlackRocks implementation of the proxy voting guidelines approved by the Board; (i) execution quality; (j) valuation and liquidity procedures; and (k) reviews of BlackRocks business, including BlackRocks response to the increasing scale of its business. Board Considerations in Approving the Advisory Agreement and Subadvisory Agreement To assist the Board in its evaluation of the Agreements, the Directors received information from BlackRock in advance of the April 22, 2008 meeting which detailed, among other things, the organization, business lines and capabilities of the Advisors, including: (a) the responsibilities of various departments and key personnel and biographical information relating to key personnel; (b) financial statements for BlackRock; (c) the advisory and/or administrative fees paid by each Fund to the Advisors, including comparisons, compiled by Lipper Inc. (Lipper), an independ- ent third party, with the management fees, which include advisory and administration fees, of funds with similar investment objectives (Peers); (d) the profitability of BlackRock and certain industry profitability analy- ses for advisers to registered investment companies; (e) the expenses of BlackRock in providing various services; (f) non-investment advisory reimbursements, if applicable, and fallout benefits to BlackRock; (g) economies of scale, if any, generated through the Advisors manage- ment of all of the BlackRock closed-end funds (the Fund Complex); (h) the expenses of each Fund, including comparisons of each such Funds expense ratios (both before and after any fee waivers) with the expense ratios of its Peers; (i) an internal comparison of management fees classified by Lipper, if applicable; and (j) each Funds performance for the past one-, three- and five-year periods, as applicable, as well as each Funds performance compared to its Peers. The Board also considered other matters it deemed important to the approval process, where applicable, such as payments made to BlackRock or its affiliates relating to the distribution of Fund shares, services related to the valuation and pricing of Fund portfolio holdings, and direct and indirect benefits to BlackRock and its affiliates from their relationship with the Funds. |
ANNUAL REPORT |
JULY 31, 2008 |
41 |
Disclosure of Investment Advisory Agreement and Subadvisory Agreement (continued) |
In addition to the foregoing materials, independent legal counsel to the Independent Directors provided a legal memorandum outlining, among other things, the duties of the Board under the 1940 Act, as well as the general principles of relevant law in reviewing and approving advisory contracts, the requirements of the 1940 Act in such matters, an advisers fiduciary duty with respect to advisory agreements and compensation, and the standards used by courts in determining whether investment company boards of directors have fulfilled their duties and the factors to be considered by boards in voting on advisory agreements. The Independent Directors reviewed this information and discussed it with independent legal counsel prior to the meeting on April 22, 2008. At the Board meeting on April 22, 2008, BlackRock made a presenta- tion to and responded to questions from the Board. Following the meet- ing on April 22, 2008, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written materials provided to the Directors prior to the meetings on May 29 and 30, 2008. At the Board meetings on May 29 and 30, 2008, BlackRock responded to further questions from the Board. In connection with BlackRocks presentations, the Board con- sidered each Agreement and, in consultation with independent legal counsel, reviewed the factors set out in judicial decisions and Securities and Exchange Commission (SEC) statements relating to the renewal of the Agreements. Matters Considered by the Board In connection with its deliberations with respect to the Agreements, the Board considered all factors it believed relevant with respect to each Fund, including the following: the nature, extent and quality of the ser- vices provided by the Advisors; the investment performance of each Fund; the costs of the services to be provided and profits to be realized by the Advisors and their affiliates from their relationship with the Funds; the extent to which economies of scale would be realized as the Fund Complex grows; and whether BlackRock realizes other benefits from its relationship with the Funds. A. Nature, Extent and Quality of the Services: In evaluating the nature, extent and quality of the Advisors services, the Board reviewed informa- tion concerning the types of services that the Advisors provide and are expected to provide to each Fund, narrative and statistical information concerning each Funds performance record and how such performance compares to each Funds Peers, information describing BlackRocks organization and its various departments, the experience and responsi- bilities of key personnel and available resources. The Board noted the willingness of the personnel of BlackRock to engage in open, candid dis- cussions with the Board. The Board further considered the quality of the Advisors investment process in making portfolio management decisions. In addition to advisory services, the Directors considered the quality of the administrative and non-investment advisory services provided to the |
Funds. The Advisors and their affiliates provided each Fund with such administrative and other services, as applicable (in addition to any such services provided by others for the Funds), and officers and other personnel as are necessary for the operations of the respective Fund. In addition to investment management services, the Advisors and their affiliates provided each Fund with services such as: preparing share- holder reports and communications, including annual and semi-annual financial statements and the Funds websites; communications with ana- lysts to support secondary market trading; assisting with daily account- ing and pricing; preparing periodic filings with regulators and stock exchanges; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings and preparing the Board materials for such meetings; providing legal and compliance support (such as helping to prepare proxy statements and responding to regulatory inquiries); and performing other Fund administrative tasks necessary for the operation of the respective Fund (such as tax reporting and fulfilling regulatory filing requirements). The Board considered the Advisors policies and procedures for assuring compliance with appli- cable laws and regulations. B. The Investment Performance of the Funds and BlackRock: As previ- ously noted, the Board received performance information regarding each Fund and its Peers. Among other things, the Board received materials reflecting each Funds historic performance and each Funds perform- ance compared to its Peers. More specifically, each Funds one-, three- and five-year total returns (as applicable) were evaluated relative to its Peers (including the Peers median performance). The Board reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lipper rankings. The Board noted that MFT performed below the median of its Peers in at least two of the one-, three- and five-year periods reported. The Board then discussed with representatives of BlackRock the reasons for MFTs underperformance during these periods compared with its Peers. The Board noted that the underperformance of MFT was largely due to its defensive duration stance in the face of a long-term municipal bond rally and its inability to invest in non-investment grade securities. The Board noted that, although MJI underperformed its Peers in at least two of the one-, three- and five-year periods reported, its underperfor- mance was not greater than 10% of the median return of its Peers for any of the periods above and therefore not considered to be material. For each of MFT and MJI, the Board concluded that BlackRock was com- mitted to providing the resources necessary to assist the portfolio man- agers and to continue improving each Funds performance. Based on its review, the Board generally was satisfied with BlackRocks efforts to manage each of the Funds. |
42 ANNUAL REPORT |
JULY 31, 2008 |
Disclosure of Investment Advisory Agreement and Subadvisory Agreement (continued) |
The Board noted that, although MIY underperformed its Peers in at least two of the one-, three- and five-year periods reported, it outperformed its Peers in a subset of the Lipper universe in at least two of such periods based on a customized performance comparison provided by BlackRock which gives a greater significance to current distributions, providing a more accurate comparison. The Board noted that in general MPA performed better than its Peers in that its performance was at or above the median of its Peers in at least two of the one-, three- and five-year periods reported. After considering this information, the Boards concluded that the per- formance of each Fund, in light of and after considering the other facts and circumstances applicable to each Fund, supports a conclusion that each Funds Agreements should be renewed. C. Consideration of the Advisory Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Funds: In evaluating the management fees and expenses that each Fund is expected to bear, the Board considered each Funds current management fee structure and each Funds expense ratios in absolute terms as well as relative to the fees and expense ratios of its applicable Peers. The Board, among other things, reviewed comparisons of each Funds gross management fees before and after any applicable reimbursements and fee waivers and total expense ratios before and after any applicable waivers with those of applicable Peers. The Board also reviewed a narrative analysis of the Peer rankings pre- pared by Lipper and summarized by BlackRock at the request of the Board. This summary placed the Peer rankings into context by analyzing various factors that affect these comparisons. The Board noted that the Funds paid contractual management fees lower than or equal to the median contractual fees paid by their respec- tive Peers. This comparison was made without giving effect to any expense reimbursements or fee waivers. The Board also compared the management fees charged and services provided by the Advisors to closed-end funds in general versus other types of clients (such as open-end investment companies and separa- tely managed institutional accounts) in similar investment categories. The Board noted certain differences in services provided and costs incurred by the Advisor with respect to closed-end funds compared to these other types of clients and the reasons for such differences. In connection with the Boards consideration of the fees and expense information, the Board reviewed the considerable investment manage- ment experience of the Advisors and considered the high level of invest- ment management, administrative and other services provided by the Advisors. In light of these factors and the other facts and circumstances applicable to each Fund, the Board concluded that the fees paid and |
level of expenses incurred by each Fund under its Agreements support a conclusion that each Funds Agreements should be renewed. D. Profitability of BlackRock: The Board also considered BlackRocks profitability in conjunction with its review of fees. The Board reviewed BlackRocks profitability with respect to the Fund Complex and other fund complexes managed by the Advisors. In reviewing profitability, the Board recognized that one of the most difficult issues in determining profitability is establishing a method of allocating expenses. The Board also reviewed BlackRocks assumptions and methodology of allocating expenses, noting the inherent limitations in allocating costs among various advisory products. The Board also recognized that individual fund or product line profitability of other advisors is generally not publicly available. The Board recognized that profitability may be affected by numerous factors including, among other things, the types of funds managed, expense allocations and business mix, and therefore comparability of profitability is somewhat limited. Nevertheless, to the extent available, the Board considered BlackRocks operating margin compared to the operating margin estimated by BlackRock for a leading investment management firm whose operations consist primarily of advising closed- end funds. The comparison indicated that BlackRocks operating margin was approximately the same as the operating margin of such firm. In evaluating the reasonableness of the Advisors compensation, the Board also considered any other revenues paid to the Advisors, including partial reimbursements paid to the Advisors for certain non-investment advisory services, if applicable. The Board noted that these payments were less than the Advisors costs for providing these services. The Board also considered indirect benefits (such as soft dollar arrangements) that the Advisors and their affiliates are expected to receive, which are attributable to their management of the Fund. The Board concluded that BlackRocks profitability, in light of all the other facts and circumstances applicable to each Fund, supports a con- clusion that each Funds Agreements should be renewed. E. Economies of Scale: In reviewing each Funds fees and expenses, the Board examined the potential benefits of economies of scale, and whether any economies of scale should be reflected in the Funds fee structure, for example through the use of breakpoints for the Fund or the Fund Complex. In this regard, the Board reviewed information provided by BlackRock, noting that most closed-end fund complexes do not have fund-level breakpoints because closed-end funds generally do not expe- rience substantial growth after their initial public offering and each fund is managed independently consistent with its own investment objectives. The Board noted that only three closed-end funds in the Fund Complex have breakpoints in their fee structures. Information provided by Lipper |
ANNUAL REPORT |
JULY 31, 2008 |
43 |
Disclosure of Investment Advisory Agreement and Subadvisory Agreement (concluded) |
also revealed that only one closed-end fund complex used a complex- level breakpoint structure. The Board found, based on its review of com- parable funds, that each Funds management fee is appropriate in light of the scale of the respective Fund. F. Other Factors: In evaluating fees, the Board also considered indirect benefits or profits the Advisors or their affiliates may receive as a result of their relationships with the Funds (fall-out benefits). The Directors, including the Independent Directors, considered the intangible benefits that accrue to the Advisors and their affiliates by virtue of their relation- ships with the Funds, including potential benefits accruing to the Advisors and their affiliates as a result of participating in offerings of the Funds shares, potentially stronger relationships with members of the broker-dealer community, increased name recognition of the Advisors and their affiliates, enhanced sales of other investment funds and prod- ucts sponsored by the Advisors and their affiliates and increased assets under management which may increase the benefits realized by the Advisors from soft dollar arrangements with broker-dealers. The Board also considered the unquantifiable nature of these potential benefits. Conclusion with Respect to the Agreements In reviewing the Agreements, the Directors did not identify any single factor discussed above as all-important or controlling and different Directors may have attributed different weights to the various factors considered. The Directors, including the Independent Directors, unani- mously determined that each of the factors described above, in light of all the other factors and all of the facts and circumstances applicable to each respective Fund, was acceptable for each Fund and supported the Directors conclusion that the terms of each Agreement were fair and reasonable, that each Funds fees are reasonable in light of the services provided to the respective Fund and that each Agreement should be approved. |
44 ANNUAL REPORT |
JULY 31, 2008 |
Automatic Dividend Reinvestment Plan How the Plan Works The Funds offer a Dividend Reinvestment Plan (the Plan) under which income and capital gains dividends paid by a Fund are automatically reinvested in additional Common Shares of the Fund. The Plan is administered on behalf of the shareholders by The BNY Mellon Shareowner Services for BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield Michigan Insured Fund, Inc. and BlackRock MuniYield New Jersey Insured Fund, Inc. and Computershare Trust Company, N.A. for BlackRock MuniYield Pennsylvania Insured Fund (indi- vidually, the Plan Agent or together, the Plan Agents). Under the Plan, whenever a Fund declares a dividend, participants in the Plan will receive the equivalent in Common Shares of the Fund. The Plan Agents will acquire the shares for the participants account either (i) through receipt of additional unissued but authorized shares of the Funds (newly issued shares) or (ii) by purchase of outstanding Common Shares on the open market on the New York Stock Exchange or American Stock Exchange, as applicable or elsewhere. If, on the dividend payment date, the Funds net asset value per share is equal to or less than the market price per share plus estimated brokerage commissions (a condi- tion often referred to as a market premium), the Plan Agents will invest the dividend amount in newly issued shares. If the Funds net asset value per share is greater than the market price per share (a condition often referred to as a market discount), the Plan Agents will invest the dividend amount by purchasing on the open market additional shares. If the Plan Agents are unable to invest the full dividend amount in open market purchases, or if the market discount shifts to a market premium during the purchase period, the Plan Agents will invest any uninvested portion in newly issued shares. The shares acquired are credited to each shareholders account. The amount credited is determined by dividing the dollar amount of the dividend by either (i) when the shares are newly issued, the net asset value per share on the date the shares are issued or (ii) when shares are purchased in the open market, the average pur- chase price per share. Participation in the Plan Participation in the Plan is automatic, that is, a shareholder is automatically enrolled in the Plan when he or she purchases shares of Common Shares of the Funds unless the share- holder specifically elects not to participate in the Plan. Shareholders who elect not to participate will receive all dividend distributions in cash. Shareholders who do not wish to participate in the Plan must advise their Plan Agent in writing (at the address set forth below) that they elect not to participate in the Plan. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by writing to the Plan Agent. |
Benefits of the Plan The Plan provides an easy, convenient way for shareholders to make additional, regular investments in the Funds. The Plan promotes a long-term strategy of investing at a lower cost. All shares acquired pursuant to the Plan receive voting rights. In addition, if the market price plus commissions of a Funds shares is above the net asset value, participants in the Plan will receive shares of the Funds for less than they could otherwise purchase them and with a cash value greater than the value of any cash distribution they would have received. However, there may not be enough shares available in the market to make distributions in shares at prices below the net asset value. Also, since the Funds do not redeem shares, the price on resale may be more or less than the net asset value. Plan Fees There are no enrollment fees or brokerage fees for participating in the Plan. The Plan Agents service fees for handling the reinvestment of distributions are paid for by the Funds. However, broker- age commissions may be incurred when the Funds purchase shares on the open market and shareholders will pay a pro rata share of any such commissions. Tax Implications The automatic reinvestment of dividends and distribu- tions will not relieve participants of any federal, state or local income tax that may be payable (or required to be withheld) on such dividends. Therefore, income and capital gains may still be realized even though shareholders do not receive cash. If, when the Funds shares are trading at a market premium, the Funds issue shares pursuant to the Plan that have a greater fair market value than the amount of cash reinvested, it is possible that all or a portion of the discount from the market value (which may not exceed 5% of the fair market value of the Fundss shares) could be viewed as a taxable distribution. If the discount is viewed as a taxable distribution, it is also possible that the taxable char- acter of this discount would be allocable to all the shareholders, includ- ing shareholders who do not participate in the Plan. Thus, shareholders who do not participate in the Plan might be required to report as ordi- nary income a portion of their distributions equal to their allocable share of the discount. Contact Information All correspondence concerning the Plan, including any questions about the Plan, should be directed to the Plan Agent at The BNY Mellon Shareowner Services, .O. Box 385035, Pittsburgh, PA 15252-8035, Telephone: (800) 432-8224 for BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield Michigan Insured Fund, Inc., BlackRock MuniYield New Jersey Insured Fund, Inc. and Computershare Trust Company, N.A., .O. Box 43010, Providence, RI 02940-3010, Telephone: (800) 426-5523 for BlackRock MuniYield Pennsylvania Insured Fund. |
ANNUAL REPORT |
JULY 31, 2008 |
45 |
Officers and Directors or Trustees | ||||||||||
Length of | Number of | |||||||||
Time | BlackRock- | |||||||||
Position(s) | Served as | Advised Funds | ||||||||
Name, Address | Held with | a Director | and Portfolios | Public | ||||||
and Year of Birth | Funds | or Trustee2 | Principal Occupation(s) During Past 5 Years | Overseen | Directorships | |||||
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Non-Interested Directors or Trustees1 | ||||||||||
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Richard E. Cavanagh | Chairman | Since | Trustee, Aircraft Finance Trust since 1999; Director, The Guardian Life | 113 Funds | Arch Chemical | |||||
40 East 52nd Street | of the Board | 2007 | Insurance Company of America since 1998; Trustee, Educational | 110 Portfolios | (chemical and allied | |||||
New York, NY 10022 | and Director | Testing Service since 1997; Director, The Fremont Group since 1996; | products) | |||||||
1946 | or Trustee | Formerly President and Chief Executive Officer of The Conference | ||||||||
Board, Inc. (global business research organization) from 1995 to | ||||||||||
2007. | ||||||||||
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Karen P. Robards | Vice Chair of | Since | Partner of Robards & Company, LLC, (financial advisory firm) since | 112 Funds | AtriCure, Inc. | |||||
40 East 52nd Street | the Board, | 2007 | 1987; Co-founder and Director of the Cooke Center for Learning and | 109 Portfolios | (medical devices); | |||||
New York, NY 10022 | Chair of | Development, (a not-for-profit organization) since 1987; Formerly | Care Investment | |||||||
1950 | the Audit | Director of Enable Medical Corp. from 1996 to 2005; Formerly an | Trust, Inc. (health | |||||||
Committee | investment banker at Morgan Stanley from 1976 to 1987. | care REIT) | ||||||||
and Director | ||||||||||
or Trustee | ||||||||||
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G. Nicholas Beckwith, III | Director | Since | Chairman and Chief Executive Officer, Arch Street Management, LLC | 112 Funds | None | |||||
40 East 52nd Street | or Trustee | 2007 | (Beckwith Family Foundation) and various Beckwith property companies 109 Portfolios | |||||||
New York, NY 10022 | since 2005; Chairman of the Board of Directors, University of Pittsburgh | |||||||||
1945 | Medical Center since 2002; Board of Directors, Shady Side Hospital | |||||||||
Foundation since 1977; Board of Directors, Beckwith Institute for | ||||||||||
Innovation In Patient Care since 1991; Member, Advisory Council on | ||||||||||
Biology and Medicine, Brown University since 2002; Trustee, Claude | ||||||||||
Worthington Benedum Foundation (charitable foundation) since 1989; | ||||||||||
Board of Trustees, Chatham University since 1981; Board of Trustees, | ||||||||||
University of Pittsburgh since 2002; Emeritus Trustee, Shady Side | ||||||||||
Academy since 1977; Formerly Chairman and Manager, Penn West | ||||||||||
Industrial Trucks LLC (sales, rental and servicing of material handling | ||||||||||
equipment) from 2005 to 2007; Formerly Chairman, President and | ||||||||||
Chief Executive Officer, Beckwith Machinery Company (sales, rental | ||||||||||
and servicing of construction and equipment) from 1985 to 2005; | ||||||||||
Formerly Board of Directors, National Retail Properties (REIT) from | ||||||||||
2006 to 2007. | ||||||||||
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Kent Dixon | Director or | Since | Consultant/Investor since 1988. | 113 Funds | None | |||||
40 East 52nd Street | Trustee and | 2007 | 110 Portfolios | |||||||
New York, NY 10022 | Member of | |||||||||
1937 | the Audit | |||||||||
Committee | ||||||||||
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Frank J. Fabozzi | Director or | Since | Consultant/Editor of The Journal of Portfolio Management since 2006; | 113 Funds | None | |||||
40 East 52nd Street | Trustee and | 2007 | Professor in the Practice of Finance and Becton Fellow, Yale University, | 110 Portfolios | ||||||
New York, NY 10022 | Member of | School of Management, since 2006; Formerly Adjunct Professor of | ||||||||
1948 | the Audit | Finance and Becton Fellow, Yale University from 1994 to 2006. | ||||||||
Committee | ||||||||||
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Kathleen F. Feldstein | Director | Since | President of Economics Studies, Inc. (private economic consulting firm) | 113 Funds | The McClatchy | |||||
40 East 52nd Street | or Trustee | 2007 | since 1987; Chair, Board of Trustees, McLean Hospital from 2000 | 110 Portfolios | Company | |||||
New York, NY 10022 | to 2008 and Trustee Emeritus thereof since 2008; Member of the | (newspaper | ||||||||
1941 | Corporation of Partners Community Healthcare, Inc. since 2005; | publishing) | ||||||||
Member of the Corporation of Partners HealthCare since 1995; | ||||||||||
Member of the Corporation of Sherrill House (healthcare) since 1990; | ||||||||||
Trustee, Museum of Fine Arts, Boston since 1992; Member of the | ||||||||||
Visiting Committee to the Harvard University Art Museum since 2003; | ||||||||||
Trustee, The Committee for Economic Development (research organi- | ||||||||||
zation) since 1990; Member of the Advisory Board to the International | ||||||||||
School of Business, Brandeis University since 2002. |
46 ANNUAL REPORT |
JULY 31, 2008 |
Officers and Directors or Trustees (continued) | ||||||||||
Length of | Number of | |||||||||
Time | BlackRock- | |||||||||
Position(s) | Served as | Advised Funds | ||||||||
Name, Address | Held with | a Director | and Portfolios | Public | ||||||
and Year of Birth | Funds | or Trustee2 | Principal Occupation(s) During Past 5 Years | Overseen | Directorships | |||||
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Non-Interested Directors or Trustees1 (concluded) | ||||||||||
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James T. Flynn | Director or | Since | Formerly Chief Financial Officer of JP Morgan & Co., Inc. from 1990 | 112 Funds | None | |||||
40 East 52nd Street | Trustee and | 2007 | to 1995. | 109 Portfolios | ||||||
New York, NY 10022 | Member of | |||||||||
1939 | the Audit | |||||||||
Committee | ||||||||||
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Jerrold B. Harris | Director | Since | Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific | 112 Funds | BlackRock-Kelso | |||||
40 East 52nd Street | or Trustee | 2007 | equipment) since 2000. | 109 Portfolios | Capital Corp. | |||||
New York, NY 10022 | ||||||||||
1942 | ||||||||||
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R. Glenn Hubbard | Director | Since | Dean of Columbia Business School since 2004; Columbia faculty | 113 Funds | ADP (data and | |||||
40 East 52nd Street | or Trustee | 2007 | member since 1988; Formerly Co-Director of Columbia Business | 110 Portfolios | information services), | |||||
New York, NY 10022 | School's Entrepreneurship Program from 1997 to 2004; Visiting | KKR Financial | ||||||||
1958 | Professor at the John F. Kennedy School of Government at Harvard | Corporation (finance), | ||||||||
University and the Harvard Business School since 1985 and at the | Duke Realty (real | |||||||||
University of Chicago since 1994; Formerly Chairman of the U.S. | estate), Metropolitan | |||||||||
Council of Economic Advisers under the President of the United | Life Insurance Com- | |||||||||
States from 2001 to 2003. | pany (insurance), | |||||||||
Information Services | ||||||||||
Group (media/ | ||||||||||
technology) | ||||||||||
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W. Carl Kester | Director or | Since | Mizuho Financial Group Professor of Finance, Harvard Business School. | 112 Funds | None | |||||
40 East 52nd Street | Trustee and | 2007 | Deputy Dean for Academic Affairs since 2006; Unit Head, Finance, | 109 Portfolios | ||||||
New York, NY 10022 | Member of | Harvard Business School, from 2005 to 2006; Senior Associate Dean | ||||||||
1951 | the Audit | and Chairman of the MBA Program of Harvard Business School, | ||||||||
Committee | from 1999 to 2005; Member of the faculty of Harvard Business | |||||||||
School since 1981; Independent Consultant since 1978. | ||||||||||
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Robert S. Salomon, Jr. | Director or | Since | Formerly Principal of STI Management LLC (investment adviser) from | 112 Funds | None | |||||
40 East 52nd Street | Trustee and | 2007 | 1994 to 2005. | 109 Portfolios | ||||||
New York, NY 10022 | Member of | |||||||||
1936 | the Audit | |||||||||
Committee | ||||||||||
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1 Directors or Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. | ||||||||||
2 Following the combination of Merrill Lynch Investment Managers, L P (MLIM) and BlackRock, Inc. (BlackRock) in September 2006, the | ||||||||||
various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, | ||||||||||
although the chart shows directors as joining the Funds board in 2007, each director first became a member of the board of directors of other | ||||||||||
legacy MLIM or legacy BlackRock Funds as follows: G. Nicholas Beckwith, III since 1999; Richard E. Cavanagh since 1994; Kent Dixon since | ||||||||||
1988; Frank J. Fabozzi since 1988; Kathleen F. Feldstein since 2005; James T. Flynn since 1996; Jerrold B. Harris since 1999; R. Glenn | ||||||||||
Hubbard since 2004; W. Carl Kester since 1998; Karen . Robards since 1998 and Robert S. Salomon, Jr. since 1996. | ||||||||||
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Interested Directors or Trustees3 | ||||||||||
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Richard S. Davis | Director | Since | Managing Director, BlackRock, Inc. since 2005; Formerly Chief | 185 Funds | None | |||||
40 East 52nd Street | or Trustee | 2007 | Executive Officer, State Street Research & Management Company | 295 Portfolios | ||||||
New York, NY 10022 | from 2000 to 2005; Formerly Chairman of the Board of Trustees, | |||||||||
1945 | State Street Research Mutual Funds from 2000 to 2005; Formerly | |||||||||
Chairman, SSR Realty from 2000 to 2004. | ||||||||||
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Henry Gabbay | Director | Since | Consultant, BlackRock, Inc. since 2007; Formerly Managing Director, | 184 Funds | None | |||||
40 East 52nd Street | or Trustee | 2007 | BlackRock, Inc. from 1989 to 2007; Formerly Chief Administrative | 294 Portfolios | ||||||
New York, NY 10022 | Officer, BlackRock Advisors, LLC from 1998 to 2007; Formerly President | |||||||||
1947 | of BlackRock Funds and BlackRock Bond Allocation Target Shares from | |||||||||
2005 to 2007; Formerly Treasurer of certain closed-end funds in the | ||||||||||
BlackRock fund complex from 1989 to 2006. | ||||||||||
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3 | Messrs. Davis and Gabbay are both interested persons, as defined in the Investment Company Act of 1940, of the Funds based on their positions with BlackRock, Inc. and its affiliates. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. |
ANNUAL REPORT |
JULY 31, 2008 |
47 |
Officers and Directors or Trustees (concluded) | ||||||||||
Position(s) | ||||||||||
Name, Address | Held with | Length of | ||||||||
and Year of Birth | Funds | Time Served | Principal Occupation(s) During Past 5 Years | |||||||
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Fund Officers1 | ||||||||||
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Donald C. Burke | Fund | Since 2007 | Managing Director of BlackRock, Inc. since 2006; Formerly Managing Director of Merrill Lynch Investment | |||||||
40 East 52nd Street | President | Managers, LP (MLIM) and Fund Asset Management, LP (FAM) in 2006; First Vice President thereof from | ||||||||
New York, NY 10022 | and Chief | 1997 to 2005; Treasurer thereof from 1999 to 2006 and Vice President thereof from 1990 to 1997. | ||||||||
1960 | Executive | |||||||||
Officer | ||||||||||
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Anne F. Ackerley | Vice | Since 2007 | Managing Director of BlackRock, Inc. since 2000; Chief Operating Officer of BlackRocks U.S. Retail Group since | |||||||
40 East 52nd Street | President | 2006; Head of BlackRocks Mutual Fund Group from 2000 to 2006; Merrill Lynch & Co., Inc. from 1984 to 1986 | ||||||||
New York, NY 10022 | and from 1988 to 2000, most recently as First Vice President and Operating Officer of the Mergers and | |||||||||
1962 | Acquisitions Group. | |||||||||
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Neal J. Andrews | Chief | Since 2007 | Managing Director of BlackRock, Inc. since 2006; Formerly Senior Vice President and Line of Business Head of | |||||||
40 East 52nd Street | Financial | Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. (formerly PFPC Inc.) from | ||||||||
New York, NY 10022 | Officer | 1992 to 2006. | ||||||||
1966 | ||||||||||
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Jay M. Fife | Treasurer | Since 2007 | Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Formerly Assistant Treasurer of the | |||||||
40 East 52nd Street | MLIM/FAM advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006. | |||||||||
New York, NY 10022 | ||||||||||
1970 | ||||||||||
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Brian P. Kindelan | Chief | Since 2007 | Chief Compliance Officer of the BlackRock-advised Funds since 2007; Anti-Money Laundering Officer of the | |||||||
40 East 52nd Street | Compliance | BlackRock-advised Funds since 2007; Managing Director and Senior Counsel of BlackRock, Inc. since 2005; | ||||||||
New York, NY 10022 | Officer of | Director and Senior Counsel ofBlackRock Advisors, Inc. from 2001 to 2004 and Vice President and Senior Counsel | ||||||||
1959 | the Funds | thereof from 1998 to 2000; Formerly Senior Counsel of The PNC Bank Corp. from 1995 to 1998. | ||||||||
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Howard Surloff | Secretary | Since 2007 | Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; Formerly | |||||||
40 East 52nd Street | General Counsel (U.S.) of Goldman Sachs Asset Management, L from 1993 to 2006. | |||||||||
New York, NY 10022 | ||||||||||
1965 | ||||||||||
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1 Officers of the Funds serve at the pleasure of the Board of Directors or Trustees. | ||||||||||
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For All Funds | ||||||||||
Accounting Agent | Independent Registered Public | Legal Counsel | ||||||||
State Street Bank and | Accounting Firm | Skadden, Arps, Slate Meagher & Flom LLP | ||||||||
Trust Company | Deloitte & Touche LLP | New York, NY 10036 | ||||||||
Princeton, NJ 08540 | Princeton, NJ 08540 | |||||||||
BlackRock MuniYield Pennsylvania Insured Fund | BlackRock MuniYield Florida Insured Fund | |||||||||
Custodian | Transfer Agents | BlackRock MuniYield Michigan Insured Fund, Inc. | ||||||||
State Street Bank and | Common Shares: | BlackRock MuniYield New Jersey Insured Fund, Inc. | ||||||||
Trust Company | Computershare Trust | Custodian | Transfer Agents | |||||||
Boston, MA 02101 | Company, N.A. | The Bank of New York Mellon | Common Shares and | |||||||
Providence, RI 02940 | New York, NY 10286 | Preferred Shares: | ||||||||
Preferred Shares: | BNY Mellon Shareowner Services | |||||||||
BNY Mellon Shareowner Services | Jersey City, NJ 07310 | |||||||||
Jersey City, NJ 07310 |
48 ANNUAL REPORT |
JULY 31, 2008 |
Additional Information 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 invest- ment 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 Statements of Assets and Liabilities, which comprises part of the financial information included in this report. |
Fund Certification The Funds are listed for trading on the New York Stock Exchange (NYSE) and have filed with the NYSE their annual chief executive officer certifica- tion regarding compliance with the NYSEs listing standards. Each Fund |
filed with the Securities and Exchange Commission (SEC) the certifica- tion of their chief executive officer and chief financial officer required by section 302 of the Sabanes-Oxley Act. |
Availability of Quarterly Schedule of Investments The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds Forms N-Q are available on the SECs website at http://www.sec.gov and may also be reviewed and copied at the SECs Public Reference Room |
in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The Funds Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762. |
Electronic Delivery Electronic copies of most financial reports are available on the Funds websites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Funds electronic delivery program. |
Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages: Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service. |
General Information The Funds do not make available copies of their Statements of Additional Information because the Funds shares are not continuously offered, which means that the Statements of Additional Information of the Funds have not been updated after completion of the Funds offering and the information contained in the Funds Statements of Additional Information may have become outdated. During the period, there were no material changes in the Funds invest- ment objectives or policies or to the Funds charters or by-laws that were not approved by the shareholders or in the principal risk factors associ- ated with investment in the Funds. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Funds portfolios. |
The Funds will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called householding and it is intended to reduce expenses and elimi- nate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Funds at (800) 441-7762. Quarterly performance, semi-annual and annual reports and other information regarding the Funds may be found on BlackRocks website, which can be accessed at http://www.blackrock.com. This reference to BlackRocks website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRocks website into this report. |
ANNUAL REPORT JULY 31, 2008 49
Additional Information (concluded) Deposit Securities Effective May 30, 2008, following approval by the Funds Boards and the applicable ratings agencies, the definition of Deposit Securities in the Funds Articles Supplementary/Certificate of Designation was amended as follows in order to facilitate the redemption of the Funds Preferred Shares. The following phrase was added to the definition of Deposit Securities found in the Funds Articles Supplementary/Certificate of Designation: ; provided, however, that solely in connection with any redemption of Preferred Shares, the term Deposit Securities shall include (i) any committed financing pursuant to a credit agreement, reverse repur- |
chase agreement facility or similar credit arrangement, in each case which makes available to the Fund, no later than the day preceding the applicable redemption date, cash in an amount not less than the aggregate amount due to Holders by reason of the redemption of their Preferred Shares on such redemption date; and (ii) cash amounts due and payable to the Corporation out of a sale of its securities if such cash amount is not less than the aggregate amount due to Holders by reason of the redemption of their Preferred Shares on such redemption date and such sale will be settled not later than the day preceding the applicable redemption date. |
BlackRock Privacy Principles BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, Clients) and to safeguarding their non-public personal information. The following infor- mation is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties. If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy- related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations. BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on appli- cations, forms or other documents; (ii) information about your transac- tions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites. |
BlackRock does not sell or disclose to non-affiliated third parties any non- public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose. We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information. |
Proxy Voting Policy The Boards of the Funds have delegated the voting of proxies for Fund securities to the Advisor pursuant to the Advisors proxy voting guidelines. Under these guidelines, the Advisor will vote proxies related to Fund secu- rities in the best interests of each Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Funds stockholders, on the one hand, and those of the Advisor, or any affiliated person of the Funds or the Advisor, on the other. In such event, provided that the Advisors Equity Investment Policy Oversight Committee, or a sub- committee thereof (the Committee) is aware of the real or potential conflict or material non-routine matter and if the Committee does not |
reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Committee may retain an independent fiduciary to advise the Committee on how to vote or to cast votes on behalf of the Advisors clients. If the Advisor determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Committee shall determine how to vote the proxy after consulting with the Advisors Portfolio Management Group and/or the Advisors Legal and Compliance Department and concluding that the vote is in its clients best interest notwithstanding the conflict. |
50 ANNUAL REPORT JULY 31, 2008
This report is transmitted to shareholders only. It is not a prospec- tus. Past performance results shown in this report should not be considered a representation of future performance. The Funds have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in the short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed auctions, may affect the yield to Common 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 (800) 441-7762; (2) at www.blackrock.com; and (3) on the Secu- rities and Exchange Commissions website at http://www.sec.gov. Information about how the Funds voted proxies relating to securities held in the Funds portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the Securities and Exchange Commissions website at http://www.sec.gov. BlackRock MuniYield Florida Insured Fund BlackRock MuniYield Michigan Insured Fund, Inc. BlackRock MuniYield New Jersey Insured Fund, Inc. BlackRock MuniYield Pennsylvania Insured Fund 100 Bellevue Parkway Wilmington, DE 19809 |
#MY4-7/08
Item 2 Code of Ethics The registrant (or the Fund) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrants principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com. Item 3 Audit Committee Financial Expert The registrants board of directors or trustees, as applicable (the board of directors) has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent: Donald W. Burton (term ended effective November 1, 2007) Kent Dixon (term began effective November 1, 2007) Frank J. Fabozzi (term began effective November 1, 2007) James T. Flynn (term began effective November 1, 2007) W. Carl Kester (term began effective November 1, 2007) John F. OBrien (term ended effective November 1, 2007) Karen P. Robards (term began effective November 1, 2007) Robert S. Salomon, Jr. (term began effective November 1, 2007) David H. Walsh (term ended effective November 1, 2007) Fred G. Weiss (term ended effective November 1, 2007) The registrants board of directors has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR. Prof. Kester has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services to corporate clients since 1978. Prof. Kesters financial consulting services present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrants financial statements. Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization. Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an expert for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. |
Item 4 Principal Accountant Fees and Services |
(a) Audit Fees | (b) Audit-Related Fees1 | (c) Tax Fees2 | (d) All Other Fees3 | |||||||||||||
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Current | Previous | Current | Previous | Current | Previous | Current | Previous | |||||||||
Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | |||||||||
Entity Name | End | End | End | End | End | End | End | End | ||||||||
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Pennsylvania | $25,900 | $51,350 | $3,500 | $3,500 | $6,100 | $6,100 | $1,049 | $1,042 | ||||||||
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1 The nature of the services include assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees. 2 The nature of the services include tax compliance, tax advice and tax planning. 3 The nature of the services include a review of compliance procedures and attestation thereto. (e)(1) Audit Committee Pre-Approval Policies and Procedures: The registrants audit committee (the Committee) has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre- approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the registrants affiliated service providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are a) consistent with the SECs auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (general pre-approval). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operation or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 for all of the registrants the Committee oversees. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels. Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre- approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to one or more of its members the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels. (e)(2) None of the services described in each of Items 4(b) through (d) were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) Not Applicable (g) Affiliates Aggregate Non-Audit Fees: |
Current Fiscal Year | Previous Fiscal Year | |||
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BlackRock MuniYield | $298,149 | $295,142 | ||
Pennsylvania Insured Fund | ||||
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(h) The registrants audit committee has considered and determined that the provision of non-audit services that were rendered to the registrants investment adviser (not including any non-affiliated sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by the registrants investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountants independence. Regulation S-X Rule 2-01(c)(7)(ii) $287,500, 0% Item 5 Audit Committee of Listed Registrants The following individuals are members of the registrants separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)): Donald W. Burton (term ended effective November 1, 2007) Kent Dixon (term began effective November 1, 2007) Frank J. Fabozzi (term began effective November 1, 2007) James T. Flynn (term began effective November 1, 2007) W. Carl Kester (term began effective November 1, 2007) John F. OBrien (term ended effective November 1, 2007) Karen P. Robards (term began effective November 1, 2007) Robert S. Salomon, Jr. (term began effective November 1, 2007) David H. Walsh (term ended effective November 1, 2007) Fred G. Weiss (term ended effective November 1, 2007) Item 6 Investments (a) The registrants Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form. (b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing. Item 7 Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies The Board of Directors of the Fund has delegated the voting of proxies for the Fund securities to the Investment Adviser pursuant to the Investment Advisers proxy voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund securities in the best interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Funds stockholders, on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or the Investment Adviser, on the other. In such event, provided that the Investment Advisers Equity Investment Policy Oversight Committee, or a sub-committee thereof (the Committee) is aware of the real or potential conflict or material non-routine matter and if the Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Committee may retain an independent fiduciary to advise the Committee on how to vote or to cast votes on behalf of the Investment Advisers clients. If the Investment Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Committee shall determine how to vote the proxy after consulting with the Investment Advisers Portfolio Management Group and/or the Investment Advisers Legal and Compliance Department and concluding that the vote cast |
is in its clients best interest notwithstanding the conflict. A copy of the Funds Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SECs website at http://www.sec.gov. Item 8 Portfolio Managers of Closed-End Management Investment Companies as of July 31, 2008. (a)(1) BlackRock Investment Quality Municipal Income Trust is managed by a team of investment professionals comprised of William R. Bock, Theodore R. Jaeckel and Walter OConnor. Each is a member of BlackRocks municipal tax-exempt management group. Each is jointly responsible for the day-to-day management of the Funds portfolio, which includes setting the Funds overall investment strategy, overseeing the management of the Fund and/or selection of its investments. Messrs. Jaeckel and OConnor have been members of the Funds management team since 2006. Mr. Bock has been a member of the Funds management team since 1997. Mr. Jaeckel joined BlackRock in 2006. Prior to joining BlackRock, he was a Managing Director (Municipal Tax-Exempt Fund Management) of Merrill Lynch Investment Managers, L.P. (MLIM) from 2005 to 2006 and a Director of MLIM from 1997 to 2005. He has been a portfolio manager with BlackRock or MLIM since 1991. Mr. OConnor joined BlackRock in 2006. Prior to joining BlackRock, he was a Managing Director (Municipal Tax-Exempt Fund Management) of MLIM from 2003 to 2006 and was a Director of MLIM from 1997 to 2002. He has been a portfolio manager with BlackRock or MLIM since 1991. Mr. Bock joined BlackRock in 2006. Prior to joining BlackRock, he was a Director (Municipal Tax-Exempt Fund Management) of MLIM from 2005 to 2006. He has been a portfolio manager with BlackRock or MLIM since 1989. (a)(2) As of July 31, 2008: |
Number of Other Accounts Managed | Number of Other Accounts and | |||||||||||
and Assets by Account Type | Assets for Which Advisory Fee is | |||||||||||
Performance-Based | ||||||||||||
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Other | Other Pooled | Other | Other Pooled | |||||||||
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William R. Bock | 3 | 0 | 0 | 0 | 0 | 0 | ||||||
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$1.45 Billion | $0 | $0 | $0 | $0 | $0 | |||||||
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Theodore R. Jaeckel, Jr. | 81 | 0 | 0 | 0 | 0 | 0 | ||||||
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$19.33 Billion | $0 | $0 | $0 | $0 | $0 | |||||||
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Walter OConnor | 81 | 0 | 0 | 0 | 0 | 0 | ||||||
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$19.33 Billion | $0 | $0 | $0 | $0 | $0 | |||||||
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(iv) Potential Material Conflicts of Interest BlackRock, Inc. and its affiliates (collectively, herein BlackRock) has built a professional working environment, firm-wide compliance culture and compliance procedures and |
systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made for the Fund. In addition, BlackRock, its affiliates and any officer, director, stockholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or any of its affiliates, or any officer, director, stockholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRocks (or its affiliates) officers, directors or employees are directors or officers, or companies as to which BlackRock or any of its affiliates or the officers, directors or employees of any of them has any substantial economic interest or possesses material non-public information. Each portfolio manager also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund. In this regard, it should be noted that a portfolio manager may currently manage certain accounts that are subject to performance fees. In addition, a portfolio manager may assist in managing certain hedge funds and may be entitled to receive a portion of any incentive fees earned on such funds and a portion of such incentive fees may be voluntarily or involuntarily deferred. Additional portfolio managers may in the future manage other such accounts or funds and may be entitled to receive incentive fees. As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock has adopted a policy that is intended to ensure that investment opportunities are allocated fairly and equitably among client accounts over time. This policy also seeks to achieve reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base. (a)(3) As of July 31, 2008: Portfolio Manager Compensation Overview BlackRocks financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock such as its Long-Term Retention and Incentive Plan. |
Base compensation. Generally, portfolio managers receive base compensation based on their seniority and/or their position with the firm. Senior portfolio managers who perform additional management functions within the portfolio management group or within BlackRock may receive additional compensation for serving in these other capacities. Discretionary Incentive Compensation Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio managers group within BlackRock, the investment performance, including risk-adjusted returns, of the firms assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individuals seniority, role within the portfolio management team, teamwork and contribution to the overall performance of these portfolios and BlackRock. In most cases, including for the portfolio managers of the Fund, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured. BlackRocks Chief Investment Officers determine the benchmarks against which the performance of funds and other accounts managed by each portfolio manager is compared and the period of time over which performance is evaluated. With respect to the portfolio managers, such benchmarks for the Fund include a combination of market-based indices (e.g. Lehman Brothers Municipal Bond Index), certain customized indices and certain fund industry peer groups. BlackRocks Chief Investment Officers make a subjective determination with respect to the portfolio managers compensation based on the performance of the funds and other accounts managed by each portfolio manager relative to the various benchmarks noted above. Performance is measured on both a pre-tax and after-tax basis over various time periods including 1, 3, 5 and 10-year periods, as applicable. Distribution of Discretionary Incentive Compensation Discretionary incentive compensation is distributed to portfolio managers in a combination of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Paying a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a given year at risk based on BlackRocks ability to sustain and improve its performance over future periods. Long-Term Retention and Incentive Plan (LTIP) The LTIP is a long-term incentive plan that seeks to reward certain key employees. Beginning in 2006, awards are granted under the LTIP in the form of BlackRock, Inc. restricted stock units that, if properly vested and subject to the attainment of certain performance goals, will be settled in BlackRock, Inc. common stock. Each portfolio manager except Mr. Bock has received awards under the LTIP. Deferred Compensation Program A portion of the compensation paid to eligible BlackRock employees may be voluntarily deferred into an account that tracks the performance of certain of the firms investment products. Each participant in the deferred compensation program is permitted to allocate his deferred amounts among the various investment options. Each portfolio manager has participated in the deferred compensation program. |
Other compensation benefits. In addition to base compensation and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following: Incentive Savings Plans BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 6% of eligible pay contributed to the plan capped at $4,000 per year, and a company retirement contribution equal to 3% of eligible compensation, plus an additional contribution of 2% for any year in which BlackRock has positive net operating income. The RSP offers a range of investment options, including registered investment companies managed by the firm. BlackRock contributions follow the investment direction set by participants for their own contributions or, absent employee investment direction, are invested into a balanced portfolio. The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares or a dollar value of $25,000. Each portfolio manager is eligible to participate in these plans. (a)(4) Beneficial Ownership of Securities. As of July 31, 2008, none of Messrs. Bock, Jaeckel or OConnor beneficially owned any stock issued by the Fund. Item 9 Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers Not Applicable due to no such purchases during the period covered by this report. Item 10 Submission of Matters to a Vote of Security Holders The registrants Nominating and Governance Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations that include biographical information and set forth the qualifications of the proposed nominee to the registrants Secretary. There have been no material changes to these procedures. Item 11 Controls and Procedures 11(a) The registrants principal executive and principal financial officers or persons performing similar functions have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the 1940 Act)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended. 11(b) There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrants internal control over financial reporting. Item 12 Exhibits attached hereto 12(a)(1) Code of Ethics See Item 2 |
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. BlackRock MuniYield Pennsylvania Insured Fund By: /s/ Donald C. Burke Donald C. Burke Chief Executive Officer of BlackRock MuniYield Pennsylvania Insured Fund Date: September 19, 2008 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/ Donald C. Burke Donald C. Burke Chief Executive Officer (principal executive officer) of BlackRock MuniYield Pennsylvania Insured Fund Date: September 19, 2008 By: /s/ Neal J. Andrews Neal J. Andrews Chief Financial Officer (principal financial officer) of BlackRock MuniYield Pennsylvania Insured Fund Date: September 19, 2008 |