MUNIYIELD
NEW JERSEY
FUND, INC.
[GRAPHIC OMITTED]
STRATEGIC
Performance
Semi-Annual Report
May 31, 2000
<PAGE>
MUNIYIELD NEW JERSEY FUND, INC.
The Benefits and Risks of Leveraging
MuniYield New Jersey Fund, Inc. utilizes leveraging to seek to enhance the yield
and net asset value of its Common Stock. However, these objectives cannot be
achieved in all interest rate environments. To leverage, the Fund issues
Preferred Stock, which pays dividends at prevailing short-term interest rates,
and invests the proceeds in long-term municipal bonds. The interest earned on
these investments is paid to Common Stock shareholders in the form of dividends,
and the value of these portfolio holdings is reflected in the per share net
asset value of the Fund's Common Stock. However, in order to benefit Common
Stock shareholders, the yield curve must be positively sloped; that is,
short-term interest rates must be lower than long-term interest rates. At the
same time, a period of generally declining interest rates will benefit Common
Stock shareholders. If either of these conditions change, then the risks of
leveraging will begin to outweigh the benefits.
To illustrate these concepts, assume a fund's Common Stock capitalization of
$100 million and the issuance of Preferred Stock for an additional $50 million,
creating a total value of $150 million available for investment in long-term
municipal bonds. If prevailing short-term interest rates are approximately 3%
and long-term interest rates are approximately 6%, the yield curve has a
strongly positive slope. The fund pays dividends on the $50 million of Preferred
Stock based on the lower short-term interest rates. At the same time, the fund's
total portfolio of $150 million earns the income based on long-term interest
rates. Of course, increases in short-term interest rates would reduce (and even
eliminate) the dividends on the Common Stock.
In this case, the dividends paid to Preferred Stock shareholders are
significantly lower than the income earned on the fund's long-term investments,
and therefore the Common Stock shareholders are the beneficiaries of the
incremental yield. However, if short-term interest rates rise, narrowing the
differential between short-term and long-term interest rates, the incremental
yield pickup on the Common Stock will be reduced or eliminated completely. At
the same time, the market value of the fund's Common Stock (that is, its price
as listed on the New York Stock Exchange) may, as a result, decline.
Furthermore, if long-term interest rates rise, the Common Stock's net asset
value will reflect the full decline in the price of the portfolio's investments,
since the value of the fund's Preferred Stock does not fluctuate. In addition to
the decline in net asset value, the market value of the fund's Common Stock may
also decline.
As a part of its investment strategy, the Fund may invest in certain securities
whose potential income return is inversely related to changes in a floating
interest rate ("inverse floaters"). In general, income on inverse floaters will
decrease when short-term interest rates increase and increase when short-term
interest rates decrease. Investments in inverse floaters may be characterized as
derivative securities and may subject the Fund to the risks of reduced or
eliminated interest payments and losses of invested principal. In addition,
inverse floaters have the effect of providing investment leverage and, as a
result, the market value of such securities will generally be more volatile than
that of fixed-rate, tax-exempt securities. To the extent the Fund invests in
inverse floaters, the market value of the Fund's portfolio and the net asset
value of the Fund's shares may also be more volatile than if the Fund did not
invest in these securities.
<PAGE>
MuniYield New Jersey Fund, Inc., May 31, 2000
DEAR SHAREHOLDER
For the six-month period ended May 31, 2000, the Common Stock of MuniYield New
Jersey Fund, Inc. earned $0.412 per share income dividends, which included
earned and unpaid dividends of $0.071. This represents a net annualized yield of
6.30%, based on a month-end net asset value of $13.05 per share. Over the same
period, the total investment return on the Fund's Common Stock was -0.77%, based
on a change in per share net asset value from $13.60 to $13.05, and assuming
reinvestment of $0.408 per share income dividends.
For the six-month period ended May 31, 2000, the Fund's Auction Market Preferred
Stock had an average yield of 3.96% for Series A and 3.27% for Series B.
The Municipal Market Environment
From November 1999 to mid-January 2000, fixed-income bond yields rose steadily
higher. US economic growth, in part intensified by Year 2000 preparations, grew
at a 7.3% rate in the fourth quarter of 1999 and at a 4.2% annual rate for all
of 1999. Initial estimates for the first quarter of 2000 were reported at 5.4%.
However, despite these significant growth rates and the lowest unemployment
rates since January 1970, no price measure indicator has shown any considerable
signs of future price pressures at the consumer level. Given no signs of an
economic slowdown, the Federal Reserve Board continued to raise short-term
interest rates in February, March and May 2000. The Federal Reserve Board cited
both the continued growth of US employment and the impressive strength of the US
equity markets as reasons for attempting to moderate US economic growth before
inflationary price increases are realized. By mid-January 2000, US Treasury bond
yields rose 45 basis points (0.45%) to 6.75%. Similarly, as measured by the Bond
Buyer Revenue Bond Index, long-term tax-exempt bond yields rose approximately 20
basis points to 6.35%.
Since mid-January, fixed-income markets have largely ignored strong economic
fundamentals and concentrated upon very positive technical supply factors.
Declining bond issuance, both current, and more importantly, expected future
issuance, helped push bond yields lower from mid-January to mid-April 2000. In
late January and early February 2000, the US Treasury announced its intention to
reduce the number of issues to be auctioned in the quarterly Treasury note and
bond auctions. Furthermore, budgetary surpluses would allow the US Treasury to
repurchase outstanding, higher-couponed Treasury issues, primarily in the
15-year and longer-term maturity sectors. Both these actions would result in a
significant reduction in the outstanding supply of long-term US Treasury debt.
Domestic and international investors quickly began to accumulate what was
expected to become a scarce commodity and Government bond prices quickly rose.
By mid-April 2000, US Treasury bond yields had declined over 100 basis points to
5.67%. However, bond yields rose somewhat during the remainder of the period as
economic statistics were released, indicating that the economic strength seen in
late 1999 was continuing into early 2000. The decline in long-term US Treasury
bond yields resulted in an inverted taxable yield curve as short-term and
intermediate-term interest rates have not fallen proportionately since the
Federal Reserve Board is expected to continue to raise short-term interest
rates. The current inversion has had much more to do with debt reduction and
Treasury buybacks than with investor expectations of slower economic growth.
Over the last six months, long-term US Treasury bond yields have fallen almost
30 basis points to close the period ended May 31, 2000 at 6.00%.
Tax-exempt bond yields have also declined in recent months. The decline has
largely been in response to the rally in US Treasury securities, as well as a
continued positive technical supply environment. States such as California and
Maryland have announced that their large current and anticipated future budget
surpluses will permit the cancellation or postponement of expected bond
issuance. Additionally, some issuers have also initiated tenders to repurchase
existing debt, reducing the supply of tax-exempt bonds in the secondary market
as well. Since their recent peak in January 2000, long-term municipal bond
yields declined over 15 basis points to finish the six-month period ended May
31, 2000 at 6.20%.
The relative underperformance of the municipal bond market in recent months has
been especially disappointing given the strong technical position the tax-exempt
bond market enjoyed. The issuance of long-term tax-exempt securities has
dramatically declined. Over the last year, $205 billion in new long-term
municipal securities was issued, a decline of almost 20% compared to the same
period a year earlier. For the six months ended May 31, 2000, approximately $90
billion in new tax-exempt bonds was underwritten, a decline of more than 25%
compared to the same period in 1999. Although investors received over $30
billion in coupon payments, bond maturities and proceeds from early bond
redemptions in January and February and are expected to receive a similar amount
in June and July, and despite the highest municipal bond yields in three years,
overall investor demand has diminished. Long-term municipal bond mutual funds
have seen consistent outflows in recent months as the yields of individual
securities have risen faster than those of larger, more diverse mutual funds.
Over the last five months, tax-exempt mutual funds have had net redemptions of
more than $11 billion. Also, the demand from property and casualty insurance
companies has weakened as a result of the losses incurred from a series of
damaging storms across much of the eastern United States. Additionally, many
institutional investors who have in recent years been drawn to the municipal
bond market by historically attractive tax-exempt bond yield ratios of over 90%
found other asset classes even more compelling. Even with a favorable supply
position, tax-exempt municipal bond yields have underperformed their taxable
counterparts.
Any significantly lower municipal bond yields are still likely to require weaker
US employment growth and consumer spending. The actions taken in recent months
by the Federal Reserve Board, as well as those expected in June and perhaps
August 2000, should eventually slow US economic growth. The recent declines in
US home sales are perhaps the first sign that consumer spending is being slowed
by higher interest rates. Until further signs develop, it is likely that the
municipal bond market's current favorable technical position will dampen
significant tax-exempt interest rate volatility and provide a stable environment
for eventual improvement in municipal bond prices.
Portfolio Strategy
As a result of significant volatility in the fixed-income market during the
six-month period ended May 31, 2000, we turned our efforts toward reducing the
Fund's sensitivity to interest rate fluctuations. We sought to insulate the Fund
from some of the market volatility while still delivering an attractive and
stable monthly dividend.
In order to do this, we kept our cash reserves to a minimum. By keeping the Fund
fully invested, we had to take other necessary measures to achieve our
investment goal. During recent months, we began restructuring the Fund by
shortening the average portfolio maturity without significantly impacting the
dividend stream. We reduced many of the Fund's more interest rate-sensitive
holdings. Typically, these securities possess long maturity dates that were
issued in a lower interest rate environment and, consequently, trade at steep
discounts to their face value. The volatility inherent in this structure
rendered it unsuitable for our investment strategy moving forward, and we
reduced these holdings. We reinvested the proceeds from these sales in bonds
that are less prone to interest rate volatility. By investing in bonds
possessing maturities of 15 years-20 years, we may be able to avoid much of the
volatility inherent in longer-dated bonds while still capturing approximately
90% of their yield.
New Jersey's finances remained healthy as vigorous economic growth contributed
to solid increases in personal income and sales tax receipts. In addition,
Governor Whitman proposed using a portion of the state's budget surplus to
retire debt. This proposal, along with a prospective resolution of the state's
long-term school financing quandary, would suggest that an improving credit
outlook may well be warranted. During the six-month period ended May 31, 2000,
long-term new-issue supply within the state actually rose almost 27%, compared
to levels from a year ago and in contrast to the more than 26% decline evident
throughout the country. This disparity is largely attributable to the $1.5
billion financing brought to market in April on behalf of the New Jersey
Turnpike Authority.
2 & 3
<PAGE>
MuniYield New Jersey Fund, Inc., May 31, 2000
The Fund's cost of borrowing increased somewhat in recent months as short-term
tax-exempt interest rates rose along with the adjustment evident in the taxable
market. Long-term tax-exempt interest rates have actually declined modestly,
causing the municipal yield curve to flatten. While this flattening has reduced
the incremental yield enhancement resulting from leveraging the Fund's Common
Stock, it is important to note that in contrast to the inverted shape of the US
Treasury yield curve, the municipal yield curve remained positively sloped. (For
a complete explanation of the benefits and risks of leveraging, see page 1 of
this report to shareholders.) Historical analysis of the municipal yield curve
demonstrates this resiliency throughout a number of economic cycles.
Furthermore, a portion of the recent adjustment in short-term interest rates is
attributable to seasonal tax-related factors and, based on historical
experience, should be regarded as temporary. Nonetheless, it is likely that the
Fund's borrowing costs will remain under pressure while the Federal Reserve
Board pursues its current monetary policy.
In Conclusion
We appreciate your interest in MuniYield New Jersey Fund, Inc., and we look
forward to assisting you with your financial needs in the months and years to
come.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Director
/s/ Vincent R. Giordano
Vincent R. Giordano
Senior Vice President
/s/ Theodore R. Jaeckel Jr.
Theodore R. Jaeckel Jr.
Vice President and Portfolio Manager
June 28, 2000
PROXY RESULTS
During the six-month period ended May 31, 2000, MuniYield New Jersey Fund,
Inc.'s Common Stock shareholders voted on the following proposals. Proposal 1
was first considered at a shareholders' meeting on December 15, 1999, which was
adjourned to January 20, 2000, at which time the proposal was approved.
Proposals 2 and 3 were approved at a shareholders' meeting on April 27, 2000.
The description of each proposal and number of shares voted are as follows:
<TABLE>
<CAPTION>
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Shares Voted Shares Voted Shares Voted
For Against Abstain
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. To approve the Agreement and Plan of Reorganization between
the Fund and MuniVest New Jersey Fund, Inc. 4,827,859 117,512 175,074
<CAPTION>
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Shares Voted Shares Withheld
For From Voting
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
2. To elect the Fund's Directors: Terry K. Glenn 8,415,817 170,203
James H. Bodurtha 8,424,059 161,961
Herbert I. London 8,420,730 165,290
Roberta Cooper Ramo 8,419,342 166,678
Arthur Zeikel 8,414,003 172,017
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Voted Shares Voted
For Against Abstain
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
3. To ratify the selection of Deloitte & Touche LLP as the Fund's
independent auditors for the current fiscal year. 8,470,094 48,966 66,960
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
During the six-month period ended May 31, 2000, MuniYield New Jersey Fund,
Inc.'s Preferred Stock shareholders voted on the following proposals. Proposal 1
was first considered at a shareholders' meeting on December 15, 1999, which was
adjourned to January 20, 2000, at which time the proposal was approved.
Proposals 2 and 3 were approved at a shareholders' meeting on April 27, 2000.
The description of each proposal and number of shares voted are as follows:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Voted Shares Voted
For Against Abstain
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. To approve the Agreement and Plan of Reorganization between
the Fund and MuniVest New Jersey Fund, Inc. 2,314 20 66
<CAPTION>
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Shares Voted Shares Withheld
For From Voting
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
2. To elect the Fund's Board of Directors: Terry K. Glenn, James H.
Bodurtha, Herbert I. London, Joseph L. May, Andre F. Perold,
Roberta Cooper Ramo and Arthur Zeikel as follows:
Series A 1,463 26
Series B 991 27
<CAPTION>
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Shares Voted Shares Voted Shares Voted
For Against Abstain
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
3. To ratify the selection of Deloitte & Touche LLP as the Fund's
independent auditors for the current fiscal year as follows:
Series A 1,462 0 27
Series B 989 0 2
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</TABLE>
4 & 5
<PAGE>
MuniYield New Jersey Fund, Inc., May 31, 2000
SCHEDULE OF INVESTMENTS (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
===========================================================================================================================
<S> <C> <C> <C> <C> <C>
New Jersey--91.1% AAA Aaa $ 2,500 Camden County, New Jersey, Improvement Authority,
Lease Revenue Bonds (County Guaranteed), 6.15% due
10/01/2004 (d)(g) $ 2,641
-------------------------------------------------------------------------------------------------------
AAA Aaa 1,000 Camden County, New Jersey, Municipal Utilities Authority,
Sewer Revenue Refunding Bonds, 5.20% due 7/15/2015 (b) 935
-------------------------------------------------------------------------------------------------------
AAA Aaa 3,815 Cape May County, New Jersey, Industrial Pollution Control
Financing Authority Revenue Bonds (Atlantic City Electric
Company Project), AMT, Series A, 7.20% due 11/01/2029 (d) 4,106
-------------------------------------------------------------------------------------------------------
AAA Aaa 1,000 Carteret, New Jersey, Board of Education COP, Refunding,
4.75% due 4/15/2019 (d) 854
-------------------------------------------------------------------------------------------------------
East Orange, New Jersey, Board of Education, COP (c):
AAA Aaa 1,425 5.32%** due 8/01/2017 505
AAA Aaa 1,000 5.34%** due 8/01/2019 320
AAA Aaa 2,845 5.202%** due 8/01/2026 566
-------------------------------------------------------------------------------------------------------
AAA Aaa 750 Essex County, New Jersey, Improvement Authority, Parking
Facility Revenue Refunding Bonds, 5% due 10/01/2022 (a) 655
-------------------------------------------------------------------------------------------------------
Gloucester County, New Jersey, Improvement Authority,
Solid Waste Resource Recovery Revenue Refunding Bonds
(Waste Management Inc. Project):
BBB NR* 1,180 AMT, Series B, 7% due 12/01/2029 1,184
BBB NR* 2,000 Series A, 6.85% due 12/01/2029 2,021
-------------------------------------------------------------------------------------------------------
AAA Aaa 4,880 Hudson County, New Jersey, COP, Refunding (Correctional
Facilities), 6.60% due 12/01/2021 (d) 5,072
-------------------------------------------------------------------------------------------------------
AAA NR* 15,750 Hudson County, New Jersey, Improvement Authority,
Facility Lease Revenue Refunding Bonds (Hudson County
Lease Project), 5.375% due 10/01/2024 (b) 14,592
-------------------------------------------------------------------------------------------------------
AA Aa2 2,600 Jersey City, New Jersey, School, GO, 6.65% due
2/15/2002 (g) 2,718
-------------------------------------------------------------------------------------------------------
AAA NR* 835 Metuchen, New Jersey, School District, GO, 5.15% due
9/15/2019 (b) 760
-------------------------------------------------------------------------------------------------------
AAA Aaa 1,750 Middlesex County, New Jersey, COP, 4.85% due 6/15/2023 (d) 1,481
-------------------------------------------------------------------------------------------------------
Middlesex County, New Jersey, Improvement Authority,
Utility System Revenue Bonds (Perth Amboy Project),
Series B (a):
AAA Aaa 2,350 5.86%** due 9/01/2023 571
AAA Aaa 500 5.16%** due 9/01/2024 114
AAA Aaa 1,000 5.16%** due 9/01/2025 215
AAA Aaa 1,300 5.16%** due 9/01/2026 262
-------------------------------------------------------------------------------------------------------
AAA Aaa 890 New Jersey Casino Reinvestment Development Authority,
Parking Fee Revenue Bonds, Series A, 5.25% due
10/01/2016 (c) 834
-------------------------------------------------------------------------------------------------------
NR* Aa3 1,500 New Jersey EDA, Economic Development Revenue
Refunding Bonds (Burlington Coat Factory),
6.125% due 9/01/2010 1,537
-------------------------------------------------------------------------------------------------------
BBB- NR* 1,500 New Jersey EDA, First Mortgage Revenue Bonds (Fellowship
Village), Series C, 5.50% due 1/01/2028 1,135
-------------------------------------------------------------------------------------------------------
New Jersey EDA, First Mortgage Revenue Refunding Bonds
(Fellowship Village), Series A:
BBB- NR* 1,250 5.50% due 1/01/2018 998
BBB- NR* 5,000 5.50% due 1/01/2025 3,807
-------------------------------------------------------------------------------------------------------
AAA Aaa 8,900 New Jersey EDA, Natural Gas Facilities Revenue Refunding
Bonds (NUI Corporation Project), Series A, 6.35% due
10/01/2022 (a) 9,136
-------------------------------------------------------------------------------------------------------
AAA Aaa 2,400 New Jersey EDA, Revenue Bonds (Educational Testing
Service), Series B, 6.25% due 5/15/2005 (d)(g) 2,548
-------------------------------------------------------------------------------------------------------
New Jersey EDA, Revenue Bonds (Saint Barnabas Medical
Center Project), Series A (d):
NR* Aaa 4,000 5.55%** due 7/01/2017 1,445
NR* Aaa 5,435 5.47%** due 7/01/2018 1,837
NR* Aaa 7,385 5.57%** due 7/01/2022 1,930
NR* Aaa 1,000 5.18%** due 7/01/2023 245
NR* Aaa 7,445 6.30%** due 7/01/2024 1,719
NR* Aaa 8,350 5.20%** due 7/01/2025 1,810
-------------------------------------------------------------------------------------------------------
AAA Aaa 10,000 New Jersey EDA, Revenue Bonds (Transportation Project),
Sublease, Series A, 5.875% due 5/01/2015 (c) 10,134
-------------------------------------------------------------------------------------------------------
AAA Aaa 2,500 New Jersey EDA, Revenue Refunding Bonds (RWJ Health
Care Corporation), 6.50% due 7/01/2024 (c) 2,603
-------------------------------------------------------------------------------------------------------
NR* Aa3 15,250 New Jersey EDA, Solid Waste Disposal Facilities Revenue
Bonds (Garden State Paper Company), 7.125% due
4/01/2022 15,928
-------------------------------------------------------------------------------------------------------
AAA Aaa 3,200 New Jersey EDA, Water Facilities Revenue Bonds
(Middlesex Water Company Project), AMT, 5.35% due
2/01/2038 2,807
-------------------------------------------------------------------------------------------------------
AAA Aaa 2,800 New Jersey Health Care Facilities Financing Authority,
Health System Revenue Bonds (Catholic Health East),
Series E, 4.75% due 11/15/2029 (a) 2,244
-------------------------------------------------------------------------------------------------------
NR* Baa1 4,200 New Jersey Health Care Facilities Financing Authority
Revenue Bonds (Southern Ocean County Hospital),
Series A, 6.25% due 7/01/2023 3,601
-------------------------------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds:
A- A3 6,060 (Atlantic City Medical Center), Series C, 6.80% due
7/01/2011 6,275
BBB NR* 2,000 (Christian Health Care Center), Series A, 5.25% due
7/01/2013 1,665
AAA Aaa 3,000 (Hackensack University Medical Center), Series B,
5.20% due 1/01/2028 (d) 2,631
BBB+ NR* 5,500 (Holy Name Hospital), 6% due 7/01/2025 4,592
AAA NR* 2,845 (Jersey Shore Medical Center), 6.75% due 7/01/2019 (a) 3,052
AAA Aaa 2,155 (Jersey Shore Medical Center), 6.75% due 7/01/2019 (a)(g) 2,297
AAA Aaa 2,500 (Meridian Health System Obligation Group), 5.25% due
7/01/2019 (c) 2,278
AAA Aaa 2,500 (Meridian Health System Obligation Group), 5.375% due
7/01/2024 (c) 2,281
AAA Aaa 2,945 (Meridian Health System Obligation Group), 5.25% due
7/01/2029 (c) 2,595
AAA Aaa 1,000 (Monmouth Medical Center), Series C, 6.25% due
7/01/2004 (c)(g) 1,056
AAA Aaa 2,000 (Saint Barnabas Health Center), Series B, 4.75% due
7/01/2028 (d) 1,611
AAA Aaa 1,700 (Saint Barnabas Hospital), Series B, 5.035%** due
7/01/2018 (d) 565
AAA Aaa 1,970 (Saint Barnabas Hospital), Series B, 5.044%** due
7/01/2020 (d) 573
AAA Aaa 2,365 (Saint Barnabas Hospital), Series B, 5.044%** due
7/01/2021 (d) 645
AAA Aaa 5,500 (Saint Barnabas Hospital), Series B, 5.05%** due
7/01/2023 (d) 1,320
BBB- Baa3 2,450 (Saint Elizabeth Hospital Obligation Group), 6% due
7/01/2020 2,047
BBB- Baa3 2,075 (Saint Elizabeth Hospital Obligation Group), 6% due
7/01/2027 1,684
AAA Aaa 2,300 (Virtua Health Issue), 4.75% due 7/01/2018 (c) 1,958
-------------------------------------------------------------------------------------------------------
</TABLE>
Portfolio
Abbreviations
To simplify the listings of MuniYield New Jersey Fund, Inc.'s portfolio holdings
in the Schedule of Investments, we have abbreviated the names of many of the
securities according to the list at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
M/F Multi-Family
RITR Residual Interest Trust Receipts
VRDN Variable Rate Demand Notes
6 & 7
<PAGE>
MuniYield New Jersey Fund, Inc., May 31, 2000
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
===========================================================================================================================
<S> <C> <C> <C> <C> <C>
New Jersey New Jersey Sports and Exposition Authority, Convention
(concluded) Center, Luxury Tax Revenue Refunding Bonds (d):
AAA Aaa $ 4,325 5% due 9/01/2015 $ 3,961
AAA Aaa 2,205 5% due 9/01/2019 1,948
-------------------------------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority, Higher
Educational Revenue Bonds (Saint Peters College), Series B (g):
BBB Baa3 3,355 6.80% due 7/01/2002 3,531
BBB Baa3 3,600 6.85% due 7/01/2002 3,792
-------------------------------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority, Revenue
Refunding Bonds:
AA+ Aaa 1,000 (Institute for Advanced Study), Series F, 5% due 7/01/2018 895
AAA Aaa 2,225 (Ramapo College), Series G, 4.625% due 7/01/2022 (a) 1,823
AAA Aaa 1,740 (Seton Hall University Project), 5.25% due 7/01/2013 (a) 1,679
A A3 6,030 (Stevens Institute of Technology), Series A, 6.80% due
7/01/2002 (g) 6,347
-------------------------------------------------------------------------------------------------------
AA+ Aa1 2,105 New Jersey State, GO, AMT, 7.05% due 7/15/2015 (g) 2,303
-------------------------------------------------------------------------------------------------------
AAA Aaa 15,350 New Jersey State Higher Education Assistance Authority,
Student Loan Revenue Bonds, AMT, Series A, 5.30% due
6/01/2017 (a) 14,162
-------------------------------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance Agency,
Home Buyer Revenue Bonds, AMT (d):
AAA Aaa 6,340 Series M, 7% due 10/01/2026 6,622
AAA Aaa 3,335 Series U, 5.60% due 10/01/2012 3,299
-------------------------------------------------------------------------------------------------------
AAA Aaa 2,000 New Jersey State Housing and Mortgage Finance Agency,
M/F Housing Revenue Refunding Bonds, Series A, 6.05%
due 11/01/2020 (a) 1,961
-------------------------------------------------------------------------------------------------------
AAA Aaa 7,150 New Jersey State Transit Corporation, COP, 6.50% due
10/01/2016 (c) 7,576
-------------------------------------------------------------------------------------------------------
AA- Aa2 3,500 New Jersey State Transportation Trust Fund Authority Revenue
Bonds (Transportation System), Series A, 5.125% due
6/15/2015 3,248
-------------------------------------------------------------------------------------------------------
AAA Aaa 4,710 New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds, Series A, 5% due
6/15/2018 (c) 4,200
-------------------------------------------------------------------------------------------------------
AAA Aaa 5,000 New Jersey State Turnpike Authority, Turnpike Revenue
Refunding Bonds, Series A, 5.75% due 1/01/2019 (d) 4,944
-------------------------------------------------------------------------------------------------------
NR* Aa 1,865 New Jersey Wastewater Treatment Trust Revenue Bonds,
Series A, 6.50% due 4/01/2004 (g) 1,983
-------------------------------------------------------------------------------------------------------
North Brunswick Township, New Jersey, GO:
NR* A1 1,190 6.50% due 5/15/2012 1,241
NR* A1 1,400 6.50% due 5/15/2013 1,460
-------------------------------------------------------------------------------------------------------
AAA Aaa 1,000 Passaic Valley, New Jersey, Sewer Commissioner's Revenue
Refunding Bonds (Sewer System), Series D, 5.875% due
12/01/2022 (a) 997
-------------------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds:
AA- A1 5,000 93rd Series, 6.125% due 6/01/2094 5,137
AAA Aaa 2,300 104th Series, 4.75% due 1/15/2026 (a) 1,890
-------------------------------------------------------------------------------------------------------
NR* Aaa 4,325 Port Authority of New York and New Jersey, RITR, AMT,
108th Series, 6.835% due 1/15/2017 (c)(e) 4,292
-------------------------------------------------------------------------------------------------------
A1+ VMIG1+ 2,600 Port Authority of New York and New Jersey, Special
Obligation Revenue Refunding Bonds (Versatile Structure
Obligation), VRDN, Series 5, 4.40% due 8/01/2024 (f) 2,600
-------------------------------------------------------------------------------------------------------
AAA Aaa 1,160 Rancocas Valley, New Jersey, Regional High School District,
GO, 5.30% due 2/01/2025 (b) 1,060
-------------------------------------------------------------------------------------------------------
AA A1 1,000 Rutgers State University, New Jersey, Revenue Refunding
Bonds (State University of New Jersey), Series A, 6.50%
due 5/01/2018 1,031
-------------------------------------------------------------------------------------------------------
AAA Aaa 8,750 South Jersey Transportation Authority, New Jersey,
Transportation System Revenue Refunding Bonds, 5%
due 11/01/2029 (a) 7,494
-------------------------------------------------------------------------------------------------------
Union County, New Jersey, Utilities Authority, Senior
Lease Revenue Refunding Bonds (Ogden Martin System of
Union), AMT, Series A (a):
AAA Aaa 1,585 5.375% due 6/01/2017 1,479
AAA Aaa 1,675 5.375% due 6/01/2018 1,550
AAA Aaa 1,760 5.375% due 6/01/2019 1,619
-------------------------------------------------------------------------------------------------------
West Windsor--Plainsboro, New Jersey, Regional School
District, GO, Refunding (b):
AAA Aaa 2,500 4.75% due 9/15/2020 2,120
AAA Aaa 2,500 4.75% due 9/15/2021 2,106
AAA Aaa 2,500 4.75% due 9/15/2024 2,078
===========================================================================================================================
New York--0.9% AAA Aaa 2,500 Port Authority of New York and New Jersey, Special
Obligation Revenue Bonds (JFK International Air Terminal
Project), AMT, Series 6, 5.75% due 12/01/2022 (d) 2,400
===========================================================================================================================
Pennsylvania--2.8% Delaware River Port Authority of Pennsylvania and New
Jersey Revenue Bonds (c):
AAA Aaa 2,500 6% due 1/01/2018 2,538
AAA Aaa 5,360 6% due 1/01/2019 5,426
===========================================================================================================================
Puerto Rico--1.8% AAA Aaa 6,000 Puerto Rico Public Buildings Authority Revenue Bonds
(Government Facilities), Series B, 5% due 7/01/2027 (a) 5,205
===========================================================================================================================
Total Investments (Cost--$280,761)--96.6% 272,992
Other Assets Less Liabilities--3.4% 9,655
--------
Net Assets--100.0% $282,647
========
===========================================================================================================================
</TABLE>
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FSA Insured.
(d) MBIA Insured.
(e) The interest rate is subject to change periodically and
inversely based upon prevailing market rates. The
interest rate shown is the rate in effect at May 31,
2000.
(f) The interest rate is subject to change periodically
based upon prevailing market rates. The interest rate
shown is the rate in effect at May 31, 2000.
(g) Prerefunded.
* Not Rated.
** Represents a zero coupon bond; the interest rate shown
reflects the effective yield at the time of purchase by
the Fund.
+ Highest short-term rating by Moody's Investors Service,
Inc.
See Notes to Financial Statements.
8 & 9
<PAGE>
MuniYield New Jersey Fund, Inc., May 31, 2000
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<TABLE>
<CAPTION>
As of May 31, 2000
==========================================================================================================================
<S> <C> <C> <C>
Assets: Investments, at value (identified cost--$280,760,884) .................... $272,991,811
Cash ..................................................................... 20,976
Receivables:
Securities sold ....................................................... $ 5,356,215
Interest .............................................................. 4,917,845 10,274,060
------------
Prepaid expenses and other assets ........................................ 41,007
------------
Total assets ............................................................. 283,327,854
------------
==========================================================================================================================
Liabilities: Payables:
Dividends to shareholders ............................................. 247,748
Reorganization costs .................................................. 147,004
Investment adviser .................................................... 91,386 486,138
------------
Accrued expenses and other liabilities ................................... 194,513
------------
Total liabilities ........................................................ 680,651
------------
==========================================================================================================================
Net Assets: Net assets ............................................................... $282,647,203
============
==========================================================================================================================
Capital: Capital Stock (200,000,000 shares authorized):
Preferred Stock, par value $.05 per share (3,900 shares of AMPS*
issued and outstanding at $25,000 per share liquidation preference) ... $ 97,500,000
Common Stock, par value $.10 per share (14,182,113 shares issued
and outstanding) ...................................................... $ 1,418,211
Paid-in capital in excess of par ......................................... 204,325,735
Undistributed investment income--net ..................................... 1,249,573
Accumulated realized capital losses on investments--net .................. (10,893,973)
Accumulated distributions in excess of realized capital gains on
investments ........................................................... (3,183,270)
Unrealized depreciation on investments--net .............................. (7,769,073)
------------
Total--Equivalent to $13.05 net asset value per share of Common
Stock (market price--$12.0625) ........................................ 185,147,203
------------
Total capital ............................................................ $282,647,203
============
==========================================================================================================================
</TABLE>
* Auction Market Preferred Stock.
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For the Six Months Ended May 31, 2000
==========================================================================================================================
<S> <C> <C> <C>
Investment Income: Interest and amortization of premium and discount earned ..... $ 7,461,991
==========================================================================================================================
Expenses: Investment advisory fees ..................................... $ 615,117
Reorganization expenses ...................................... 321,916
Commission fees .............................................. 105,227
Professional fees ............................................ 40,383
Transfer agent fees .......................................... 34,708
Accounting services .......................................... 29,354
Printing and shareholder reports ............................. 21,142
Listing fees ................................................. 10,971
Custodian fees ............................................... 10,794
Directors' fees and expenses ................................. 9,795
Pricing fees ................................................. 5,441
Other ........................................................ 10,753
---------
Total expenses ............................................... 1,215,601
------------
Investment income--net ....................................... 6,246,390
------------
==========================================================================================================================
Realized & Unrealized Realized loss on investments--net ............................................... (6,425,139)
Gain (Loss) on Change in unrealized appreciation/depreciation on
Investments--Net: investments--net .............................................................. 2,039,378
------------
Net Increase in Net Assets Resulting from Operations ............................ $ 1,860,629
============
==========================================================================================================================
</TABLE>
See Notes to Financial Statements.
10 & 11
<PAGE>
MuniYield New Jersey Fund, Inc., May 31, 2000
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
Six Months Year Ended
Ended May 31, November 30,
Increase (Decrease) in Net Assets: 2000 1999
=============================================================================================================================
<S> <C> <C> <C>
Operations: Investment income--net ................................................ $ 6,246,390 $ 9,663,671
Realized loss on investments--net ..................................... (6,425,139) (1,543,155)
Change in unrealized appreciation/depreciation on investments--net .... 2,039,378 (16,500,165)
------------- -------------
Net increase (decrease) in net assets resulting from operations ....... 1,860,629 (8,379,649)
------------- -------------
=============================================================================================================================
Dividends & Investment income--net:
Distributions to Common Stock ....................................................... (4,704,691) (7,926,649)
Shareholders: Preferred Stock .................................................... (1,576,248) (1,687,968)
Realized gain on investments--net:
Preferred Stock .................................................... -- --
In excess of realized gain on investments--net:
Common Stock ....................................................... -- (2,790,654)
Preferred Stock .................................................... -- (392,616)
------------- -------------
Net decrease in net assets resulting from dividends and distributions
to shareholders .................................................... (6,280,939) (12,797,887)
------------- -------------
=============================================================================================================================
Capital Stock Proceeds from issuance of Common Stock resulting from reorganization .. 65,807,130 --
Transactions: Proceeds from issuance of Preferred Stock resulting from reorganization 37,500,000 --
Value of shares issued to Common Stock shareholders in reinvestment of
dividends and distributions ........................................ -- 1,678,698
------------- -------------
Net increase in net assets derived from capital stock transactions .... 103,307,130 1,678,698
------------- -------------
=============================================================================================================================
Net Assets: Total increase (decrease) in net assets ............................... 98,886,820 (19,498,838)
Beginning of period ................................................... 183,760,383 203,259,221
------------- -------------
End of period* ........................................................ $ 282,647,203 $ 183,760,383
============= =============
=============================================================================================================================
* Undistributed investment income--net .................................. $ 1,249,573 $ 1,284,122
============= =============
=============================================================================================================================
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
The following per share data and ratios have been derived For the
from information provided in the financial statements. Six Months
Ended May 31,
Increase (Decrease) in Net Asset Value: .................. 2000
==============================================================================================
<S> <C> <C>
Per Share Net asset value, beginning of period ..................... $ 13.60
Operating ---------
Performance: Investment income--net ................................... .49
Realized and unrealized gain (loss) on investments--net .. (.50)
---------
Total from investment operations ......................... (.01)
---------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net ................................ (.41)
In excess of realized gain on investments--net ........ --
---------
Total dividends and distributions to Common Stock
shareholders .......................................... (.41)
---------
Effect of Preferred Stock activity:++++
Dividends and distributions to Preferred Stock
shareholders:
Investment income--net .............................. (.13)
In excess of realized gain on investments--net ...... --
---------
Total effect of Preferred Stock activity ................. (.13)
---------
Net asset value, end of period ........................... $ 13.05
=========
Market price per share, end of period .................... $ 12.0625
=========
===========================================================================================
Total Investment Based on market price per share .......................... 1.83%++
Return:** =========
Based on net asset value per share ....................... (.77%)++
=========
===========================================================================================
Ratios Based on Total expenses, excluding reorganization expenses*** ..... 1.10%*
Average Net Assets =========
Of Common Stock: Total expenses** ......................................... 1.28%*
=========
Total investment income--net** ........................... 7.87%*
=========
Amount of dividends to Preferred Stock shareholders ...... 1.93%*
=========
Investment income--net, to Common Stock shareholders ..... 5.94%*
=========
===========================================================================================
Ratios Based on Total expenses, excluding reorganization expenses ........ .72%*
Total Average Net =========
Assets:***+ Total expenses ........................................... .84%*
=========
Total investment income--net ............................. 5.20%*
=========
===========================================================================================
Ratios Based on Dividends to Preferred Stock shareholders ................ 3.76%*
Average Net Assets =========
Of Preferred Stock:
===========================================================================================
Supplemental Data: Net assets, net of Preferred Stock, end of period
(in thousands) $ 185,147
=========
Preferred Stock outstanding, end of period (in thousands) $ 97,500
=========
Portfolio turnover ....................................... 28.47%
=========
===========================================================================================
Leverage: Asset coverage per $1,000 ................................ $ 2,899
=========
===========================================================================================
Dividends Per Share Series A--Investment income--net ......................... $ 496
On Preferred Stock =========
Outstanding: Series B--Investment income--net ......................... $ 257
=========
===========================================================================================
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year Ended November 30,
----------------------------------------------
Increase (Decrease) in Net Asset Value: .................. 1999 1998 1997 1996
==============================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ..................... $ 15.93 $ 15.51 $ 15.46 $ 15.56
Operating --------- --------- --------- ---------
Performance: Investment income--net ................................... 1.06 1.13 1.14 1.14
Realized and unrealized gain (loss) on investments--net .. (1.98) .42 .05 (.10)
--------- --------- --------- ---------
Total from investment operations ......................... (.92) 1.55 1.19 1.04
--------- --------- --------- ---------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net ................................ (.87) (.89) (.91) (.91)
In excess of realized gain on investments--net ........ (.31) -- -- --
--------- --------- --------- ---------
Total dividends and distributions to Common Stock
shareholders .......................................... (1.18) (.89) (.91) (.91)
--------- --------- --------- ---------
Effect of Preferred Stock activity:++++
Dividends and distributions to Preferred Stock
shareholders:
Investment income--net .............................. (.19) (.21) (.23) (.23)
In excess of realized gain on investments--net ...... (.04) (.03) -- --
--------- --------- --------- ---------
Total effect of Preferred Stock activity ................. (.23) (.24) (.23) (.23)
--------- --------- --------- ---------
Net asset value, end of period ........................... $ 13.60 $ 15.93 $ 15.51 $ 15.46
========= ========= ========= =========
Market price per share, end of period .................... $ 12.25 $ 16.75 $ 15.5625 $ 14.50
========= ========= ========= =========
==============================================================================================================================
Total Investment Based on market price per share .......................... (20.75%) 13.89% 13.96% 12.34%
Return:** ========= ========= ========= =========
Based on net asset value per share ....................... (7.48%) 8.68% 6.52% 5.84%
========= ========= ========= =========
==============================================================================================================================
Ratios Based on Total expenses, excluding reorganization expenses*** ..... 1.05% 1.02% 1.04% 1.04%
Average Net Assets ========= ========= ========= =========
Of Common Stock: Total expenses** ......................................... 1.05% 1.02% 1.04% 1.04%
========= ========= ========= =========
Total investment income--net** ........................... 7.16% 7.24% 7.48% 7.41%
========= ========= ========= =========
Amount of dividends to Preferred Stock shareholders ...... 1.25% 1.37% 1.50% 1.48%
========= ========= ========= =========
Investment income--net, to Common Stock shareholders ..... 5.91% 5.87% 5.98% 5.93%
========= ========= ========= =========
==============================================================================================================================
Ratios Based on Total expenses, excluding reorganization expenses ........ .73% .71% .72% .72%
Total Average Net ========= ========= ========= =========
Assets:***+ Total expenses ........................................... .73% .71% .72% .72%
========= ========= ========= =========
Total investment income--net ............................. 4.95% 5.03% 5.14% 5.18%
========= ========= ========= =========
==============================================================================================================================
Ratios Based on Dividends to Preferred Stock shareholders ................ 2.81% 3.19% 3.35% 3.35%
Average Net Assets ========= ========= ========= =========
Of Preferred Stock:
==============================================================================================================================
Supplemental Data: Net assets, net of Preferred Stock, end of period
(in thousands) $ 123,760 $ 143,259 $ 137,633 $ 136,483
========= ========= ========= =========
Preferred Stock outstanding, end of period (in thousands) $ 60,000 $ 60,000 $ 60,000 $ 60,000
========= ========= ========= =========
Portfolio turnover ....................................... 57.94% 46.83% 30.50% 49.76%
========= ========= ========= =========
==============================================================================================================================
Leverage: Asset coverage per $1,000 ................................ $ 3,063 $ 3,388 $ 3,294 $ 3,275
========= ========= ========= =========
==============================================================================================================================
Dividends Per Share Series A--Investment income--net ......................... $ 703 $ 798 $ 838 $ 837
On Preferred Stock ========= ========= ========= =========
Outstanding: Series B--Investment income--net ......................... -- -- -- --
========= ========= ========= =========
==============================================================================================================================
</TABLE>
* Annualized.
** Total investment returns based on market value, which
can be significantly greater or lesser than the net
asset value, may result in substantially different
returns. Total investment returns exclude the effects of
sales charges.
*** Do not reflect the effect of dividends to Preferred
Stock shareholders.
+ Includes Common and Preferred Stock average net assets.
++ Aggregate total investment return.
++++ The Fund's Preferred Stock was issued on November 30,
1992 for Series A and on February 7, 2000 for Series B.
See Notes to Financial Statements.
12 & 13
<PAGE>
MuniYield New Jersey Fund, Inc., May 31, 2000
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield New Jersey Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940 as a non-diversified, closed-end management investment
company. The Fund's financial statements are prepared in accordance with
accounting principles generally accepted in the United States of America, which
may require the use of management accruals and estimates. These unaudited
financial statements reflect all adjustments, which are, in the opinion of
management, necessary to a fair statement of the results for the interim period
presented. All such adjustments are of a normal recurring nature. The Fund
determines and makes available for publication the net asset value of its Common
Stock on a weekly basis. The Fund's Common Stock is listed on the New York Stock
Exchange under the symbol MYJ. The following is a summary of significant
accounting policies followed by the Fund.
(a) Valuation of investments--Municipal bonds are traded primarily in the
over-the-counter markets and are valued at the most recent bid price or yield
equivalent as obtained by the Fund's pricing service from dealers that make
markets in such securities. Financial futures contracts and options thereon,
which are traded on exchanges, are valued at their closing prices as of the
close of such exchanges. Options written or purchased are valued at the last
sale price in the case of exchange-traded options. In the case of options traded
in the over-the-counter market, valuation is the last asked price (options
written) or the last bid price (options purchased). Securities with remaining
maturities of sixty days or less are valued at amortized cost, which
approximates market value. Securities and assets for which market quotations are
not readily available are valued at fair value as determined in good faith by or
under the direction of the Board of Directors of the Fund, including valuations
furnished by a pricing service retained by the Fund, which may utilize a matrix
system for valuations. The procedures of the pricing service and its valuations
are reviewed by the officers of the Fund under the general supervision of the
Board of Directors.
(b) Derivative financial instruments--The Fund may engage in various portfolio
investment strategies to increase or decrease the level of risk to which the
Fund is exposed more quickly and efficiently than transactions in other types of
instruments. Losses may arise due to changes in the value of the contract or if
the counterparty does not perform under the contract.
o Financial futures contracts--The Fund may purchase or sell financial futures
contracts and options on such futures contracts for the purpose of hedging the
market risk on existing securities or the intended purchase of securities.
Futures contracts are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Upon entering into a contract, the
Fund deposits and maintains as collateral such initial margin as required by the
exchange on which the transaction is effected. Pursuant to the contract, the
Fund agrees to receive from or pay to the broker an amount of cash equal to the
daily fluctuation in value of the contract. Such receipts or payments are known
as variation margin and are recorded by the Fund as unrealized gains or losses.
When the contract is closed, the Fund records a realized gain or loss equal to
the difference between the value of the contract at the time it was opened and
the value at the time it was closed.
o Options--The Fund is authorized to write covered call options and purchase put
options. When the Fund writes an option, an amount equal to the premium received
by the Fund is reflected as an asset and an equivalent liability. The amount of
the liability is subsequently marked to market to reflect the current market
value of the option written. When a security is purchased or sold through an
exercise of an option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from (or added to)
the proceeds of the security sold. When an option expires (or the Fund enters
into a closing transaction), the Fund realizes a gain or loss on the option to
the extent of the premiums received or paid (or gain or loss to the extent the
cost of the closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
(c) Income taxes--It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no Federal income tax provision is required.
(d) Security transactions and investment income--Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Interest income is recognized on the accrual basis. Discounts and market
premiums are amortized into interest income. Realized gains and losses on
security transactions are determined on the identified cost basis.
(e) Dividends and distributions--Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates. Distributions in excess of realized capital gains are due
primarily to differing tax treatments for futures transactions.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML &
Co."), which is the limited partner.
FAM is responsible for the management of the Fund's portfolio and provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, the Fund pays a monthly fee at
an annual rate of .50% of the Fund's average weekly net assets, including
proceeds from the issuance of Preferred Stock.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or directors of the Fund are officers and/or directors of
FAM, PSI, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended May 31, 2000 were $77,892,768 and $66,574,723, respectively.
Net realized losses for the six months ended May 31, 2000 and net unrealized
losses as of May 31, 2000 were as follows:
--------------------------------------------------------------------------------
Realized Unrealized
Losses Losses
--------------------------------------------------------------------------------
Long-term investments ....................... $(5,849,049) $(7,769,073)
Financial futures contracts ................. (576,090) --
----------- -----------
Total ....................................... $(6,425,139) $(7,769,073)
=========== ===========
--------------------------------------------------------------------------------
As of May 31, 2000, net unrealized depreciation for Federal income tax purposes
aggregated $7,769,073, of which $4,730,109 related to appreciated securities and
$12,499,182 related to depreciated securities. The aggregate cost of investments
at May 31, 2000 for Federal income tax purposes was $280,760,884.
4. Capital Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of capital stock, including
Preferred Stock, par value $.10 per share, all of which were initially
classified as Common Stock. The Board of Directors is authorized, however, to
reclassify any unissued shares of capital stock without approval of holders of
Common Stock.
Common Stock
Shares issued and outstanding during the six months ended May 31, 2000 increased
by 5,081,330 as a result of issuance of Common Stock from reorganization. Shares
issued and outstanding during the year ended November 30, 1999 increased by
106,361, as a result of dividend reinvestment.
Preferred Stock
Auction Market Preferred Stock ("AMPS") are shares of Preferred Stock of the
Fund, with a par value of $.05 per share and a liquidation preference of $25,000
per share, that entitle their holders to receive cash dividends at an annual
rate that may vary for the successive dividend periods. The yields in effect at
May 31, 2000 were as follows: Series A, 3.18% and Series B, 3.50%.
Shares issued and outstanding during the six months ended May 31, 2000 increased
by 1,500 as a result of issuance of Preferred Stock from reorganization. Shares
issued and outstanding during the year ended November 30, 1999 remained
constant.
14 & 15
<PAGE>
MuniYield New Jersey Fund, Inc., May 31, 2000
NOTES TO FINANCIAL STATEMENTS (concluded)
The Fund pays commissions to certain broker-dealers at the end of each auction
at an annual rate ranging from .25% to .375%, calculated on the proceeds of each
auction. For the six months ended May 31, 2000, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, an affiliate of FAM, earned $54,242 as commissions.
5. Capital Loss Carryforward:
At November 30, 1999, the Fund had a net capital loss carryforward of
approximately $1,860,000, all of which expires in 2007. This amount will be
available to offset like amounts of any future taxable gains.
6. Subsequent Event:
On June 7, 2000, the Fund's Board of Directors declared an ordinary income
dividend to Common Stock shareholders in the amount of $.070536 per share,
payable on June 29, 2000 to shareholders of record as of June 19, 2000.
7. Reorganization Plan:
On February 7, 2000, the Fund acquired all of the net assets of MuniVest New
Jersey Fund, Inc. pursuant to a plan of reorganization. The acquisition was
accomplished by a tax-free exchange of 5,519,681 Common Stock shares and 1,500
AMPS shares of MuniVest New Jersey Fund, Inc. for 5,081,330 Common Stock shares
and 1,500 AMPS shares of the Fund. MuniVest New Jersey Fund, Inc.'s net assets
on that date of $103,307,130, including $7,177,939 of unrealized depreciation
and $4,410,040 of accumulated net realized capital losses, were combined with
those of the Fund. The aggregate net assets of the Fund immediately after the
acquisition amounted to $281,169,154.
MANAGED DIVIDEND POLICY
The Fund's dividend policy is to distribute all or a portion of its net
investment income to its shareholders on a monthly basis. In order to provide
shareholders with a more consistent yield to the current trading price of shares
of Common Stock of the Fund, the Fund may at times pay out less than the entire
amount of net investment income earned in any particular month and may at times
in any 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 Fund for any particular month may be more or less than the amount of net
investment income earned by the Fund during such month. The Fund's current
accumulated but undistributed net investment income, if any, is disclosed in the
Statement of Assets, Liabilities and Capital, which comprises part of the
financial information included in this report.
16 & 17
<PAGE>
MuniYield New Jersey Fund, Inc., May 31, 2000
QUALITY PROFILE
The quality ratings of securities in the Fund as of May 31, 2000 were as
follows:
--------------------------------------------------------------------------------
Percent of
S&P Rating/Moody's Rating Net Assets
--------------------------------------------------------------------------------
AAA/Aaa ......................................................... 67.6%
AA/Aa ........................................................... 11.3
A/A ............................................................. 6.1
BBB/Baa ......................................................... 10.7
Other+ .......................................................... 0.9
--------------------------------------------------------------------------------
+ Temporary investments in short-term municipal securities.
OFFICERS AND DIRECTORS
Terry K. Glenn, President and Director
James H. Bodurtha, Director
Herbert I. London, Director
Joseph L. May, Director
Andre F. Perold, Director
Roberta Cooper Ramo, Director
Arthur Zeikel, Director
Vincent R. Giordano, Senior Vice President
Kenneth A. Jacob, Vice President
Theodore R. Jaeckel Jr., Vice President
Donald C. Burke, Vice President and Treasurer
Alice A. Pellegrino, Secretary
--------------------------------------------------------------------------------
Robert R. Martin, Director of MuniYield New Jersey Fund, Inc. has recently
retired. The Fund's Board of Directors wishes Mr. Martin well in his retirement.
--------------------------------------------------------------------------------
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Stock:
The Bank of New York
100 Church Street
New York, NY 10286
NYSE Symbol
MYJ
18 & 19
<PAGE>
MuniYield New Jersey Fund, Inc. seeks to provide shareholders with as high a
level of current income exempt from Federal and New Jersey income taxes as is
consistent with its investment policies and prudent investment management by
investing primarily in a portfolio of long-term, investment-grade municipal
obligations the interest on which, in the opinion of bond counsel to the issuer,
is exempt from Federal and New Jersey income taxes.
This report, including the financial information herein, is transmitted to
shareholders of MuniYield New Jersey Fund, Inc. for their information. It is not
a prospectus. Past performance results shown in this report should not be
considered a representation of future performance. The Fund has leveraged its
Common Stock by issuing Preferred Stock to provide the Common Stock shareholders
with a potentially higher rate of return. Leverage creates risks for Common
Stock shareholders, including the likelihood of greater volatility of net asset
value and market price of shares of the Common Stock, and the risk that
fluctuations in the short-term dividend rates of the Preferred Stock may affect
the yield to Common Stock shareholders. Statements and other information herein
are as dated and are subject to change.
MuniYield New Jersey
Fund, Inc.
Box 9011
Princeton, NJ
08543-9011 #16381--5/00
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