MUNIYIELD
NEW YORK
INSURED
FUND II, INC.
[FUND LOGO]
STRATEGIC
Performance
Semi-Annual Report
April 30, 1997
This report, including the financial information herein, is transmitted
to the shareholders of MuniYield New York Insured Fund II, Inc. for
their information. It is not a prospectus, circular or representation
intended for use in the purchase of shares of the Fund or any securities
mentioned in the report. 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 York
Insured Fund II, Inc.
Box 9011
Princeton, NJ
08543-9011 #16350 -- 4/97
MuniYield New York Insured Fund II, Inc.
TO OUR SHAREHOLDERS
For the six months ended April 30, 1997, the Common Stock of MuniYield
New York Insured Fund II, Inc. earned $0.414 per share income dividends,
which included earned and unpaid dividends of $0.075. This represents a
net annualized yield of 5.84%, based on a month-end per share net asset
value of $14.32. Over the same period, the total investment return on
the Fund's Common Stock was +1.62%, based on a change in per share net
asset value from $14.53 to $14.32, and assuming reinvestment of $0.408
per share income dividends.
The average yields for the Fund's Auction Market Preferred Stock for the
six months ended April 30, 1997 were as follows: Series A, 3.37%; Series
B, 3.35%; and Series C, 4.04%.
The Municipal Market Environment
Long-term tax-exempt revenue bonds traded in a relatively narrow range
throughout much of the six-month period ended April 30, 1997. By mid-
January 1997, municipal bond yields rose to over 6% as investors reacted
negatively to reports of progressively stronger domestic economic
growth. However, a continued lack of any material inflationary pressures
allowed bond yields to decline to their prior levels by late February.
Bond yields rose again as investors became increasingly concerned that
the US domestic economic strength seen thus far in 19907 would continue,
and that the increase in short-term interest rates by the Federal
Reserve Board (FRB) in late March would be the first in a series of such
moves designed to slow the US economy before any dormant inflationary
pressures were awakened. Long-term tax-exempt bond yields rose
approximately 15 basis points (0.15%) to almost 6.15% by mid-April.
Similarly, long-term US Treasury bond yields rose over 35 basis points
over the same period to 7.16%. However, in late April economic
indicators were released showing that despite considerable economic
growth any inflationary pressures, particularly those associated with
wage increases, were well-contained and of no immediate concern. Fixed-
income bond prices staged a significant rally during the last week in
April with long-term US Treasury bond yields falling nearly 20 basis
points to end the month at 6.95%. Municipal bond yields, as measured by
the Bond Buyer Revenue Bond Index, declined nearly 15 basis points to
stand at 6.01% by April 30, 1997.
As in recent quarters, the relative stability of long-term tax-exempt
bond yields was supported by low levels of new municipal bond issuance.
During the six months ended April 30, 1997, approximately $90 billion in
long-term tax-exempt bonds was underwritten, a decline of over 6%
compared to the corresponding period a year earlier. During the three
months ended April 30, 1997, $41 billion in new long-term municipal
bonds was issued, also a 6% decline in issuance compared to the three-
month period ended April 30, 1996. Overall investor demand remained
strong, particularly from property and casualty insurance companies and
individual retail investors. In recent years, investor demand increased
whenever tax-exempt bond yields approached or exceeded the 6% level as
they have in the past few months.
Additionally, in recent months much of the new bond issuance was
dominated by a number of larger issues. These included $710 million in
New York City water bonds, $600 million in state of California bonds, $1
billion in New York City general obligation bonds, $435 million in Dade
County, Florida water and sewer revenue bonds, $450 million in Puerto
Rico Electric Authority issues and $930 million in Port Authority of New
York and New Jersey issues. These bonds have typically been issued in
states with relatively high state income taxes and consequently were
generally underwritten at yields that were relatively unattractive to
residents in other states. This has exacerbated the general decline in
overall issuance in recent years, making the decrease in supply even
more dramatic for general market investors.
The present economic situation remains nearly ideal. The domestic
economy continues to grow steadily with little, if any, sign of a
resurgence in inflation. Recent economic growth generated considerable
unexpected tax revenues for the Federal government. Forecasts for the
1997 Federal fiscal deficit were reduced to under $100 billion, a level
not seen since the early 1980s. Such a reduced Federal deficit enhances
the prospect for a balanced Federal budget. All these factors support a
scenario of steady, or even falling, interest rates in the coming years.
Present annual estimates of future municipal bond issuance remain
centered around $175 billion, indicating that the current relative
scarcity of tax-exempt bonds should continue for at least the remainder
of the year. Should interest rates begin to decline later this year,
either as the result of a balanced Federal budget or continued benign
inflation, investors are unlikely to be able to purchase long-term
municipal bonds at their currently attractive levels.
Portfolio Strategy
For the six-month period ended April 30, 1997, we focused on sustaining
an appealing level of tax-exempt income while seeking to achieve an
above-average total return for the Fund. We entered the April period
optimistic that interest rates would decline because of the seemingly
attractive level of interest rates and the tight technical market in
municipal bonds. To take advantage of this scenario, we extended the
portfolio's duration and lowered cash reserves to a minimal level. From
November 1996 to the beginning of December 1996, this strategy prevailed
as interest rates declined about 30 basis points.
The following three months proved to be extremely volatile as economic
reports suggested strength in the economy with benign inflation combined
with the threat of a monetary tightening by the FRB. Our investment
strategy shifted at this point to seek to manage the trading ranges the
municipal market maintained during this time. Finally in late March 1997
when the FRB raised the Federal Funds rate by 25 basis points, interest
rates broke out of the trading range in which they had vacillated. At
this point our strategy shifted again because of the attractive level of
interest rates. Therefore, we extended the portfolio's duration and
again lowered cash reserves to minimal levels in anticipation of a
decline in interest rates. This strategy proved correct as interest
rates rallied during the last week of April and declined nearly 25 basis
points very quickly. Looking forward, we anticipate a volatile market
that will once again remain caught within a constrained trading range
until the economy either moderates or accelerates even further.
In Conclusion
We appreciate your ongoing interest in MuniYield New York Insured Fund
II, Inc., and we look forward to assisting you with your financial needs
in the months and years to come.
Sincerely,
/S/ARTHUR ZEIKEL
Arthur Zeikel
President
/S/VINCENT R. GIORDANO
Vincent R. Giordano
Senior Vice President
/S/ROBERTO ROFFO
Roberto Roffo
Vice President and Portfolio Manager
June 6, 1997
We are pleased to announce that Roberto Roffo is responsible for the
day-to-day management of MuniYield New York Insured Fund II, Inc. Mr.
Roffo has been employed by Merrill Lynch Asset Management, L.P. (an
affiliate of the Fund's investment adviser) since 1996 as Vice President
and Portfolio Manager and was Assistant Portfolio Manager thereof from
1992 to 1996. Prior thereto, he was Operations Manager with State Street
Bank and Trust Company.
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PROXY RESULTS
During the six-month period ended April 30, 1997, MuniYield New York
Insured Fund II, Inc. Common Stock shareholders voted on the following
proposals. The proposals were approved at a shareholders' meeting on
December 12, 1996. The description of each proposal and number of shares
voted are as follows:
Shares Shares Voted Shares Voted
Voted For Against Abstain
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. To consider and act upon a proposal to approve the
Agreement and Plan of Reorganization between the
Fund, MuniVest New York Insured Fund, Inc. and
MuniYield New York Insured Fund III, Inc. 5,639,216 162,585 291,252
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted
Voted For Without Authority
- --------------------------------------------------------------------------------------------------------------
2. To consider and act upon a proposal to elect the
following persons as Directors of the Fund: James H. Bodurtha 10,416,118 467,147
Herbert I. London 10,416,118 467,147
Robert R. Martin 10,416,118 467,147
Arthur Zeikel 10,418,138 465,127
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted Shares Voted
Voted For Against Abstain
- --------------------------------------------------------------------------------------------------------------
3. In the event that proposal 1 has been approved by the
requisite number of stockholders of each Fund and the
Reorganization has taken place prior to October 31,
1996, to consider and act upon a proposal to ratify the
selection of Ernst & Young LLP as the independent
auditors of the combined fund to serve for the Fund's
current fiscal year. 10,304,970 90,185 488,110
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted Shares Voted
Voted For Against Abstain
- --------------------------------------------------------------------------------------------------------------
4. In the event that proposal 1 has not been approved by the
requisite number of stockholders of each Fund and the
Reorganization has not taken place prior to October 31, 1996,
to consider and act upon a proposal to ratify the selection
of Deloitte & Touche LLP as the independent auditors of the
Fund to serve for the Fund's current fiscal year. 10,246,972 116,357 519,936
- --------------------------------------------------------------------------------------------------------------
During the six-month period ended April 30, 1997, MuniYield
New York Insured Fund II, Inc. Preferred Stock shareholders voted on the
following proposals. The proposals were approved at a shareholders'
meeting on November 14, 1996. The description of each proposal and
number of shares voted are as follows:
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted Shares Voted
Voted For Against Abstain
- --------------------------------------------------------------------------------------------------------------
1. To consider and act upon a proposal to approve the Agreement
and Plan of Reorganization between the Fund, MuniVest New
York Insured Fund, Inc. and MuniYield New York Insured
Fund III, Inc. 1,443 32 2
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted
Voted For Without Authority
- --------------------------------------------------------------------------------------------------------------
2. To consider and act upon a proposal to elect
the following persons as Directors of
the Fund: James H. Bodurtha 2,621 43
Herbert I. London 2,621 43
Robert R. Martin 2,621 43
Joseph L. May 2,621 43
Andre F. Perold 2,621 43
Arthur Zeikel 2,621 43
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted Shares Voted
Voted For Against Abstain
- --------------------------------------------------------------------------------------------------------------
3. In the event that proposal 1 has been approved by the
requisite number of stockholders of each Fund and the
Reorganization has taken place prior to October 31,
1996, to consider and act upon a proposal to ratify the
selection of Ernst & Young LLP as the independent auditors
of the combined fund to serve for the Fund's current
fiscal year. 2,661 1 2
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted Shares Voted
Voted For Against Abstain
- --------------------------------------------------------------------------------------------------------------
4. In the event that proposal 1 has not been approved by the
requisite number of stockholders of each Fund and the
Reorganization has not taken place prior to October 31, 1996,
to consider and act upon a proposal to ratify the selection
of Deloitte & Touche LLP as the independent auditors of
the Fund to serve for the Fund's current fiscal year. 2,579 9 76
- --------------------------------------------------------------------------------------------------------------
During the six-month period ended April 30, 1997, MuniVest New York
Insured Fund, Inc. Common Stock shareholders voted on the following
proposals. The proposals were approved at a shareholders' meeting on
December 12, 1996. The description of each proposal and number of shares
voted are as follows:
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted Shares Voted
Voted For Against Abstain
- --------------------------------------------------------------------------------------------------------------
1. To consider and act upon a proposal to approve the Agreement
and Plan of Reorganization between the Fund, MuniYield New
York Insured Fund II, Inc. and MuniYield New York Insured
Fund III, Inc. 3,804,971 98,370 177,275
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted
Voted For Without Authority
- --------------------------------------------------------------------------------------------------------------
2. To consider and act upon a proposal to
elect the following persons as Directors
of the Fund: Edward H. Meyer 6,851,507 163,613
Jack B. Sunderland 6,851,507 163,613
J. Thomas Touchton 6,851,507 163,613
Arthur Zeikel 6,851,507 163,613
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted Shares Voted
Voted For Against Abstain
- --------------------------------------------------------------------------------------------------------------
3. To consider and act upon a proposal to ratify the selection
of Ernst & Young LLP as the independent auditors of the
Fund to serve for the current fiscal year. 6,717,361 64,425 233,334
- --------------------------------------------------------------------------------------------------------------
During the six-month period ended April 30, 1997, MuniVest New York
Insured Fund, Inc. Preferred Stock shareholders voted on the following
proposals. The proposals were approved at a shareholders' meeting on
December 11, 1996. The description of each proposal and number of shares
voted are as follows:
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted Shares Voted
Voted For Against Abstain
- --------------------------------------------------------------------------------------------------------------
1. To consider and act upon a proposal to approve the
Agreement and Plan of Reorganization between the Fund,
MuniYield New York Insured Fund II, Inc. and MuniYield
New York Insured Fund III, Inc. 1,041 12 30
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted
Voted For Without Authority
- --------------------------------------------------------------------------------------------------------------
2. To consider and act upon a proposal to
elect the following persons as Directors
of the Fund: Donald Cecil 1,731 156
M. Colyer Crum 1,731 156
Edward H. Meyer 1,731 156
Jack B. Sunderland 1,731 156
J. Thomas Touchton 1,731 156
Arthur Zeikel 1,731 156
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted Shares Voted
Voted For Against Abstain
- --------------------------------------------------------------------------------------------------------------
3. To consider and act upon a proposal to ratify the selection
of Ernst & Young LLP as the independent auditors of the
Fund to serve for the current fiscal year. 1,718 8 161
- --------------------------------------------------------------------------------------------------------------
During the six-month period ended April 30, 1997, MuniYield New York
Insured Fund III, Inc. Common Stock shareholders voted on the following
proposals. The proposals were approved at a shareholders' meeting on
December 12, 1996. The description of each proposal and number of shares
voted are as follows:
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted Shares Voted
Voted For Against Abstain
- --------------------------------------------------------------------------------------------------------------
1. To consider and act upon a proposal to approve the Agreement
and Plan of Reorganization between the Fund, MuniVest
New York Insured Fund, Inc.and MuniYield New York Insured
Fund II, Inc. 1,876,333 42,827 98,630
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted
Voted For Without Authority
- --------------------------------------------------------------------------------------------------------------
2. To consider and act upon a proposal to
elect the following persons as Directors
of the Fund: Edward H. Meyer 3,388,287 213,984
Jack B. Sunderland 3,388,287 213,984
J. Thomas Touchton 3,388,287 213,984
Arthur Zeikel 3,388,287 213,984
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted Shares Voted
Voted For Against Abstain
- --------------------------------------------------------------------------------------------------------------
3. To consider and act upon a proposal to ratify the
selection of Ernst & Young LLP as the independent
auditors of the Fund to serve for the current
fiscal year. 3,444,335 41,819 116,117
- --------------------------------------------------------------------------------------------------------------
During the six-month period ended April 30, 1997, MuniYield New York
Insured Fund III, Inc. Preferred Stock shareholders voted on the
following proposals. The proposals were approved at a shareholders'
meeting on November 14, 1996. The description of each proposal and
number of shares voted are as follows:
--------------------------------------------------------------------------------------------------------------
Shares Shares Voted Shares Voted
Voted For Against Abstain
- --------------------------------------------------------------------------------------------------------------
1. To consider and act upon a proposal to approve the Agreement
and Plan of Reorganization between the Fund, MuniVest New
York Insured Fund, Inc.and MuniYield New York Insured
Fund II, Inc. 557 12 2
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted
Voted For Without Authority
- --------------------------------------------------------------------------------------------------------------
2. To consider and act upon a proposal to
elect the following persons as Directors
of the Fund: Donald Cecil 990 10
M. Colyer Crum 990 10
Edward H. Meyer 990 10
Jack B. Sunderland 990 10
J. Thomas Touchton 990 10
Arthur Zeikel 990 10
- --------------------------------------------------------------------------------------------------------------
Shares Shares Voted Shares Voted
Voted For Against Abstain
- --------------------------------------------------------------------------------------------------------------
3. To consider and act upon a proposal to ratify the selection
of Ernst & Young LLP as the independent auditors of the Fund
to serve for the current fiscal year. 994 0 6
- --------------------------------------------------------------------------------------------------------------
THE BENEFITS AND RISKS OF LEVERAGING
MuniYield New York Insured Fund II, 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.
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MuniYield New York Insured Fund II, Inc. April 30, 1997
SCHEDULE OF INVESTMENTS (in Thousands)
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<S> <C> <C> <C> <C>
New York -- 98.6%
AAA Aaa $4,000 Albany County, New York, Airport Authority, Airport Revenue Bonds, RITR, AMT,
Series RI-97-7, 7.17% due 12/15/2023 (f)(h) $4,050
AAA Aaa 1,020 Buffalo, New York, GO, UT, Series B, 5.375% due 2/01/2014 (d) 983
Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds (c):
AAA Aaa 2,990 Refunding, Series A, 6.125% due 7/01/2012 3,087
AAA Aaa 11,500 Refunding, Series B, 6.25% due 7/01/2017 11,942
AAA Aaa 8,650 Refunding, Series B, 6.25% due 7/01/2022 8,952
AAA Aaa 2,070 Series A, 6.375% due 7/01/2018 2,181
AAA Aaa 1,400 Series A, 6.50% due 7/01/2024 1,494
Metropolitan Transportation Authority, New York, Dedicated Tax Fund, Series A (c):
AAA Aaa 3,500 5.25% due 4/01/2021 3,278
AAA Aaa 20,735 5.25% due 4/01/2026 19,309
Metropolitan Transportation Authority, New York, Transportation Facilities Revenue Bonds:
AAA Aaa 5,650 Series J, 6.375% due 7/01/2010 (b) 6,031
AAA Aaa 5,000 Series J, 6.50% due 7/01/2018 (b) 5,354
AAA Aaa 5,000 Series O, 6.375% due 7/01/2020 (c) 5,245
AAA Aaa 1,005 Mount Sinai, New York, Union Free School District, Refunding, GO, UT, 6.20%
due 2/15/2019 (d) 1,083
Nassau County, New York, GO, UT, Series P (b):
AAA Aaa 3,250 6.50% due 11/01/2010 3,548
AAA Aaa 3,685 6.50% due 11/01/2011 4,023
A1+ NR* 2,000 Nassau County, New York, IDA, Civic Facilities Revenue Bonds (Cold Spring Harbor
Laboratory Project), VRDN, 4.35% due 7/01/2019 (a) 2,000
AAA Aaa 2,000 Nassau County, New York, Refunding (Combined Sewer Districts), Series G, GO, UT,
5.40% due 1/15/2012 (c) 1,987
AAA Aaa 2,500 New York City, New York, Educational Construction Fund Revenue Bonds, Junior
Sub-Lien, 5.50% due 4/01/2026 (d) 2,402
New York City, New York, GO, UT:
BBB+ Baa1 5,000 Series B (Fiscal 92), 7.50% due 2/01/2006 5,541
AAA Aaa 2,000 Series B (Fiscal 92), 7% due 2/01/2017 (d) 2,173
AAA Aaa 2,000 Series B (Fiscal 92), 7% due 2/01/2018 (d) 2,173
BBB+ Baa1 2,500 Series F, 5.75% due 2/01/2019 2,372
New York City, New York, IDA, Civic Facility Revenue Bonds:
A1+ NR* 1,600 (National Audubon Society), VRDN, 3.75% due 12/01/2014 (a) 1,600
AAA Aaa 12,500 (USTA National Tennis Center Project), 6.375% due 11/15/2014 (f) 13,303
A A 5,000 New York City, New York, IDA, Special Facility Revenue Bonds, RITR, AMT,
Series RI-5, 6.945% due 1/01/2024 (h) 4,975
New York City, New York, Municipal Water Finance Authority, Water and Sewer System
Revenue Bonds:
AAA Aaa 6,000 Refunding (Fiscal 1997), Series A, 5.375% due 6/15/2026 (f) 5,675
A- A2 5,000 RIB, 6.825% due 6/15/2025 (h) 5,006
AAA Aaa 1,760 Series A, 7% due 6/15/2001 (b)(g) 1,925
AAA Aaa 1,350 Series A - 1994, 7% due 6/15/2015 (b) 1,455
A1+ VMIG1+ 4,100 VRDN, Series A, 4.25% due 6/15/2025 (a)(b) 4,100
A1+ VMIG1+ 4,600 VRDN, Series C, 4.45% due 6/15/2023 (a)(b) 4,600
New York State Dormitory Authority Revenue Bonds:
AAA Aaa 11,165 (City University), Third Generation Reserves, Series 2, 6.875% due 7/01/2014 (c) 12,285
AAA Aaa 3,000 (City University System), Third Resolution, Series 1, 6.25% due 7/01/2016 (d) 3,138
AAA Aaa 3,640 (City University System), Third Resolution, Series 1, 6.25% due 7/01/2020 (d) 3,786
AAA Aaa 6,290 (City University System), Third Resolution, Series 1, 6.30% due 7/01/2024 (d) 6,565
AAA Aaa 1,000 (Consolidated City University System), Second Generation, Series A, 5.75% due 7/01/2018 (f) 1,017
A1+ VMIG1+ 9,400 (Cornell University), VRDN, Series B, 4.25% due 7/01/2025 (a) 9,400
BBB Baa1 9,000 (Department of Health), 5.50% due 7/01/2025 8,300
AAA Aaa 12,500 (Mental Health Services Facilities Improvement), Series B, 5.125% due 8/15/2021 (c) 11,483
AAA Aaa 6,000 (Mount Sinai School of Medicine), Series A, 5.15% due 7/01/2024 (c) 5,515
AAA Aaa 1,000 Refunding (Colgate University), 6% due 7/01/2016 (c) 1,045
AAA Aaa 3,765 Refunding (Mental Health Services Facilities Improvement), Series E, 5.25%
due 2/15/2018 (d) 3,547
AAA Aaa 1,750 Refunding (Mount Sinai School of Medicine), 6.75% due 7/01/2009 (c) 1,899
AAA Aaa 4,500 Refunding (State University Educational Facilities), Series A, 5.875% due 5/15/2011 (b) 4,677
BBB+ Baa1 2,000 Refunding (State University Educational Facilities), Series B, 7% due 5/15/2016 2,128
AAA Aaa 1,050 (Saint John's University), 6.875% due 7/01/2011 (d) 1,136
AAA Aaa 2,250 (Saint Joseph's Health Hospital), 5.25% due 7/01/2018 (c) 2,118
BBB+ Baa1 6,000 (State University Educational Facilities), 5.50% due 5/15/2026 5,551
New York State Energy Research and Development Authority, Facilities Revenue Bonds
(Consolidated Edison Company Inc.), AMT, Series A:
AAA Aaa 6,950 6.75% due 1/15/2027 (c) 7,332
AAA Aaa 3,785 6.75% due 1/15/2027 (d) 3,993
New York State Energy Research and Development Authority, Gas Facilities Revenue
Bonds (Brooklyn Union Gas Company), AMT (c):
AAA Aaa 12,000 Series A, 6.75% due 2/01/2024 12,948
AAA Aaa 5,000 Series B, 6.75% due 2/01/2024 5,366
AAA Aaa 3,600 New York State Energy Research and Development Authority, PCR, Refunding (Rochester
Gas and Electric Project), AMT, Series B, 6.50% due 5/15/2032 (c) 3,742
A- Aa 5,000 New York State Environmental Facilities Corporation, PCR, RITR, Series RI-1,
6.745% due 6/15/2014 (h) 5,081
A1+ NR* 200 New York State Environmental Facilities Corporation, Resource Recovery Revenue
Bonds (OFS Equity Huntington Project), VRDN, AMT, 4.50% due 11/01/2014 (a) 200
AAA Aaa 11,265 New York State Environmental Facilities Corporation, Special Obligation Revenue
Refunding Bonds (Riverbank State Park), 5.125% due 4/01/2022 (d) 10,352
AAA Aaa 1,800 New York State, HFA, Housing Project Mortgage Revenue Refunding Bonds, Series A,
6.10% due 11/01/2015 (f) 1,830
A1+ VMIG1+ 2,100 New York State Local Government Assistance Corporation, VRDN, Series G,
4.50% due 4/01/2025 (a) 2,100
New York State Medical Care Facilities Finance Agency Revenue Bonds:
AAA Aaa 2,790 (Health Center Project - Secured Mortgage), Series A, 6.375% due 11/15/2019 (d) 2,935
AAA Aaa 3,000 (Mental Health), Series E, 6.50% due 8/15/2015 (f) 3,184
AAA Aaa 4,330 (Mental Health), Series F, 6.50% due 8/15/2012 (f) 4,563
AAA Aaa 12,850 (New York Hospital Mortgage), Series A, 6.80% due 8/15/2024 (d)(e) 13,987
AAA Aaa 11,750 (New York Hospital Mortgage), Series A, 6.50% due 8/15/2029 (d)(e) 12,456
AAA Aaa 5,200 Refunding (Hospital and Nursing Home), Series C, 6.375% due 8/15/2029 (c) 5,407
New York State Mortgage Agency, Homeowner Mortgage:
NR* Aa2 4,595 AMT, Series 50, 6.625% due 4/01/2025 4,739
NR* Aa2 1,000 AMT, Series 58, 6.40% due 4/01/2027 1,017
AAA Aaa 1,000 Series 43, 6.45% due 10/01/2017 (c) 1,060
New York State Thruway Authority, General Revenue Bonds:
AAA Aaa 6,700 Series B, 5% due 1/01/2020 (c) 5,974
AAA VMIG1+ 1,000 VRDN, 5% due 1/01/2024 (a)(b) 1,000
AAA Aaa 11,000 New York State Thruway Authority, Highway and Bridge Trust Fund, UT, Series B,
6.25% due 4/01/2012 (b) 11,599
New York State Urban Development Corporation, Revenue Refunding Bonds:
AAA Aaa 2,295 (Correctional Capital Facilities), Series A, 5.25% due 1/01/2014 (f) 2,209
AAA Aaa 8,675 (Correctional Facilities), 5.375% due 1/01/2012 (c) 8,515
AAA Aaa 6,000 (Correctional Facilities), Series A, 5% due 1/01/2017 (d) 5,447
AAA Aaa 1,000 Niagara Falls, New York, Water Treatment Plant, UT, AMT, 7.25% due 11/01/2010 (c) 1,157
North Hempstead, New York, GO, UT, Refunding, Series B (b):
AAA Aaa 1,745 6.40% due 4/01/2013 1,916
AAA Aaa 555 6.40% due 4/01/2017 607
Oswego County, New York, Public Improvement Bonds, UT:
NR* A 1,100 6.70% due 6/15/2010 1,231
NR* A 1,100 6.70% due 6/15/2011 1,232
NR* A 1,100 6.70% due 6/15/2012 1,232
Port Authority of New York and New Jersey, Consolidated Revenue Bonds:
AAA Aaa 2,000 71st Series, 6.50% due 1/15/2026 (b) 2,109
AA- A1 8,000 72nd Series, 7.35% due 10/01/2002 (g) 9,013
AAA Aaa 3,000 72nd Series, 7.40% due 10/01/2002 (d)(g) 3,391
AA- A1 5,000 109th Series (Fourth Installment), 5.375% due 1/15/2032 4,698
AAA Aaa 4,000 Port Authority of New York and New Jersey, RITR, Series FR3-108th,
AMT, 6.885% due 1/15/2017 (f)(h) 4,080
A1+ VMIG1+ 1,200 Port Authority of New York and New Jersey, Special Obligation Revenue Bonds
(Versatile Structure Obligation), VRDN, AMT, Series 1, 4.25% due 8/01/2028 (a) 1,200
Syracuse, New York, COP (Syracuse Hancock International Airport), AMT (b):
AAA Aaa 3,650 6.625% due 1/01/2012 3,872
AAA Aaa 3,120 6.50% due 1/01/2017 3,255
A1+ VMIG1+ 2,200 Syracuse, New York, IDA, Civic Facility Revenue Bonds (Multi-Modal Syracuse University
Project), VRDN, 4.25% due 3/01/2023 (a) 2,200
Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds:
AAA Aaa 4,000 Refunding, Series Y, 6.125% due 1/01/2021 (i) 4,241
A+ Aa 6,150 Series B, 5.20% due 1/01/2027 5,654
Triborough Bridge and Tunnel Authority, New York, Special Obligation Refunding Bonds:
AAA Aaa 6,575 6.25% due 1/01/2012 (d) 6,868
AAA Aaa 6,975 Series A, 6.625% due 1/01/2017 (c) 7,452
AAA Aaa 1,000 Series B, 6.875% due 1/01/2015 (b) 1,075
AAA Aaa 2,000 Series B, 6.875% due 1/01/2015 (c) 2,151
AAA Aaa 5,150 Series B, 6.875% due 1/01/2015 (d) 5,538
AAA Aaa 5,000 Upper Mohawk Valley, Regional Water Finance Authority, New York, Water Systems
Revenue Refunding Bonds, Series A, 5.125% due 10/01/2026 (f) 4,565
Total Investments (Cost -- $425,278) -- 98.6% 441,210
Other Assets Less Liabilities -- 1.4% 6,407
--------
Net Assets -- 100.0% $447,617
========
(a) The interest rate is subject to change periodically based
upon prevailing market rates. The interest rate shown is
the rate in effect at April 30, 1997.
(b) FGIC Insured.
(c) MBIA Insured.
(d) AMBAC Insured.
(e) FHA Insured.
(f) FSA Insured.
(g) Prerefunded.
(h) 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 April 30, 1997.
(i) CAPMAC Insured.
* Not Rated.
+ Highest short-term rating by Moody's Investors Service, Inc.
PORTFOLIO ABBREVIATIONS
To simplify the listings of MuniYield New York Insured Fund II, Inc.'s portfolio
holdings in the Schedule of Investments, we have abbreviated the names of many of
the securities according to the list below and at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
RITR Residual Interest Trust Receipts
UT Unlimited Tax
VRDN Variable Rate Demand Notes
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL INFORMATION
Statement of Assets, Liabilities and Capital as of April 30, 1997
<S> <C> <C> <C>
Assets: Investments, at value (identified cost -- $425,278,377) (Note 1a) $441,209,989
Cash 46,554
Interest receivable 7,210,796
Deferred organization expenses (Note 1e) 4,575
Prepaid expenses and other assets 14,968
-------------
Total assets 448,486,882
-------------
Liabilities: Payables:
Dividends to shareholders (Note 1f) $459,452
Investment adviser (Note 2) 161,096 620,548
-------------
Accrued expenses and other liabilities 249,388
-------------
Total liabilities 869,936
-------------
Net Assets: Net assets $447,616,946
=============
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.05 per share (5,760 shares of AMPS*
issued and outstanding at $25,000 per share liquidation preference) $144,000,000
Common Stock, par value $.10 per share (21,195,037 shares issued
and outstanding) $2,119,504
Paid-in capital in excess of par 305,895,835
Undistributed investment income -- net 1,600,962
Accumulated realized capital losses on investments -- net (Note 5) (21,930,967)
Unrealized appreciation on investments -- net 15,931,612
-------------
Total -- Equivalent to $14.32 net asset value per share of
Common Stock (market price -- $13.50) 303,616,946
-------------
Total capital $447,616,946
=============
* Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
For the Six
Months Ended
April 30, 1997
<S> <C> <C> <C>
Investment Income Interest and amortization of premium and discount earned $9,855,986
Note (1d):
Expenses: Investment advisory fees (Note 2) $856,191
Commission fees (Note 4) 141,803
Transfer agent fees 44,115
Professional fees 34,968
Accounting services (Note 2) 24,822
Printing and shareholder reports 20,871
Listing fees 13,342
Custodian fees 11,099
Directors' fees and expenses 9,799
Pricing fees 7,875
Amortization of organization expenses (Note 1e) 1,962
Other 14,549
------------
Total expenses 1,181,396
------------
Investment income -- net 8,674,590
------------
Realized & Realized gain on investments -- net 1,326,217
Unrealized Change in unrealized appreciation on investments -- net (4,382,194)
Gain (Loss) on ------------
Investments - Net Net Increase in Net Assets Resulting from Operations $5,618,613
(Notes 1b, 1d & 3) ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets For the Six For the
Months Ended Year Ended
April 30, October 31,
1997 1996
------------ ------------
Increase (Decrease) in Net Assets:
<S> <C> <C> <C>
Operations: Investment income -- net $8,674,590 $11,589,728
Realized gain (loss) on investments -- net 1,326,217 (1,623,682)
Change in unrealized appreciation on investments -- net (4,382,194) 479,529
------------ ------------
Net increase in net assets resulting from operations 5,618,613 10,445,575
------------ ------------
Dividends to Investment income -- net:
Shareholders Common Stock (6,053,210) (9,071,415)
(Note 1f): Preferred Stock (1,844,154) (2,557,268)
------------ ------------
Net decrease in net assets resulting from dividends to shareholders (7,897,364) (11,628,683)
------------ ------------
Capital Stock Net proceeds from issuance of Common Stock resulting from reorganization 144,424,050 --
Transactions Proceeds from issuance of Preferred Stock resulting from reorganization 74,000,000 --
(Note 4): ------------ ------------
Net increase in net assets derived from capital stock transactions 218,424,050 --
------------ ------------
Net Assets: Total increase (decrease) in net assets 216,145,299 (1,183,108)
Beginning of period 231,471,647 232,654,755
------------ ------------
End of period* $447,616,946 $231,471,647
============ ============
* Undistributed investment income -- net $1,600,962 $823,736
============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
For the
Six
Months
The following per share data and ratios have been derived Ended For the Year Ended
from information provided in the financial statements. April 30, October 31,
1997 1996 1995 1994 1993
Increase (Decrease) in Net Asset Value:
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value,
Operating beginning of period $14.53 $14.63 $13.13 $15.89 $13.43
Performance: -------- -------- -------- -------- --------
Investment income -- net .53 1.04 1.07 1.07 1.11
Realized and unrealized
gain (loss) on investments -- net (.20) (.09) 1.50 (2.76) 2.46
-------- -------- -------- -------- --------
Total from investment operations .33 .95 2.57 (1.69) 3.57
-------- -------- -------- -------- --------
Less dividends and distributions
to Common Stock shareholders:
Investment income -- net (.41) (.82) (.84) (.87) (.91)
Realized gain on
investments -- net -- -- -- (.01) --
-------- -------- -------- -------- --------
Total dividends and distributions
to Common Stock shareholders (.41) (.82) (.84) (.88) (.91)
-------- -------- -------- -------- --------
Capital charge resulting from
issuance of Common Stock (.02) -- -- -- --
-------- -------- -------- -------- --------
Effect of Preferred Stock
activity:+
Dividends and distributions
to Preferred
Stock shareholders:
Investment income -- net (.11) (.23) (.23) (.19) (.20)
Realized gain on -------- -------- -------- -------- --------
investments -- net -- -- -- --+++++ --
-------- -------- -------- -------- --------
Total effect of Preferred
Stock activity (.11) (.23) (.23) (.19) (.20)
-------- -------- -------- -------- --------
Net asset value, end of
period $14.32 $14.53 $14.63 $13.13 $15.89
======== ======== ======== ======== ========
Market price per share,
end of period $13.50 $13.375 $13.25 $11.00 $15.25
======== ======== ======== ======== ========
Total Investment Based on market
Return:** price per share 4.08%++++ 7.28% 28.61% (22.96%) 17.90%
======== ======== ======== ======== ========
Based on net asset
value per share 1.62%++++ 5.55% 18.96% (11.75%) (25.77%)
======== ======== ======== ======== ========
Ratios to Average Expenses,
Net Assets:*** net of reimbursement .69%* .71% .74% .74% .62%
======== ======== ======== ======== ========
Expenses .69%* .71% .74% .74% .70%
======== ======== ======== ======== ========
Investment income -- net 5.10%* 5.00% 5.27% 5.09% 5.25%
======== ======== ======== ======== ========
Supplemental Net assets,
Data: net of Preferred Stock, end of period
(in thousands) $303,617 $161,472 $162,655 $145,977 $176,595
======== ======== ======== ======== ========
Preferred Stock outstanding,
end of period
(in thousands) $144,000 $70,000 $70,000 $70,000 $70,000
======== ======== ======== ======== ========
Portfolio turnover 58.18% 118.28% 110.76% 36.79% 3.33%
======== ======== ======== ======== ========
Leverage: Asset coverage per $1,000 $3,108 $3,307 $3,324 $3,085 $3,523
======== ======== ======== ======== ========
Dividends Per Share Series A --
On Preferred Stock Investment income -- net $417 $913 $910 $759 $809
Outstanding:++ ======== ======== ======== ======== ========
Series B --
Investment income -- net $214 -- -- -- --
======== ======== ======== ======== ========
Series C --
Investment income -- net $257 -- -- -- --
======== ======== ======== ======== ========
* 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 loads.
*** Do not reflect the effect of dividends to Preferred
Stock shareholders.
+ The Fund's Preferred Stock was issued on
September 16, 1992 (Series A) and January 27, 1997
(Series B and Series C).
++ Dividends per share have been adjusted to reflect a two-
for-one stock split that occurred on December 1, 1994.
++++ Aggregate total investment return.
+++++ Amount is less than $.01 per share.
See Notes to Financial Statements.
</TABLE>
MuniYield New York Insured Fund II, Inc. April 30, 1997
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield New York Insured Fund II, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 as a non-diversified, closed-
end management investment company. These unaudited financial statements
reflect all adjustments which are, in the opinion of management,
necessary to a fair statement of 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 MYT. 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, which are
traded on exchanges, are valued at their last sale price as of the close
of such exchanges or, lacking any sales, at the last available bid
price. Securities with remaining maturities of sixty days or less are
valued at amortized cost, which approximates market value. Securities
for which market quotations are not readily available are valued at
their 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 strategies to seek to increase its return by hedging its
portfolio against adverse movements in the debt markets. Losses
may arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
[bullet] Financial futures contracts -- The Fund may purchase or sell
interest rate 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.
[bullet] 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) Deferred organization expenses -- Deferred organization expenses are
amortized on a straight-line basis over a five-year period.
(f) Dividends and distributions -- Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded
on the ex-dividend dates.
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 0.50% of the
Fund's average weekly net assets.
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 and
securities acquired through the reorganization, for the six months ended
April 30, 1997 were $194,810,093 and $203,341,441, respectively.
Net realized and unrealized gains as of April 30,1997 were as follows:
Realized Unrealized
Gains Gains
Long-term investments $1,326,217 $15,931,612
---------- -----------
Total $1,326,217 $15,931,612
========== ===========
As of April 30, 1997, net unrealized appreciation for Federal income tax
purposes aggregated $15,931,612, of which $17,146,932 related to
appreciated securities and $1,215,320 related to depreciated securities.
The aggregate cost of investments at April 30, 1997 for Federal income
tax purposes was $425,278,377.
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 the
holders of Common Stock.
Common Stock
For the six months ended April 30, 1997, shares issued and outstanding
increased by 10,080,205, to 21,195,037 pursuant to a plan of
reorganization. At April 30, 1997, total paid-in capital amounted to
$308,015,339.
Preferred Stock
Auction Market Preferred Stock ("AMPS") are shares of Preferred Stock of
the Fund 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 April 30, 1997 were as follows: Series A, 4.05%;
Series B, 4.10%; and Series C, 3.75%.
In addition, AMPS shares increased by 2,960 pursuant to a plan of
reorganization. As a result, as of April 30, 1997, there were 5,760 AMPS
shares authorized, issued and outstanding, with a liquidation preference
of $25,000 per share.
The Fund pays commissions to certain broker-dealers at the end of each
auction at an annual rate ranging from 0.25% to 0.375%, calculated on
the proceeds of each auction. For the six months ended April 30, 1997,
Merrill Lynch, Pierce, Fenner & Smith Inc., an affiliate of FAM, earned
$74,113 as commissions.
5. Capital Loss Carryforward:
At October 31, 1996, the Fund had a net capital loss carryforward of
approximately $4,728,000, of which $1,841,000 expires in 2002,
$1,775,000 expires in 2003 and $1,112,000 expires in 2004. This amount
will be available to offset like amounts of any future taxable gains.
6. Acquisition of MuniYield New York Insured Fund III, Inc. and MuniVest
New York Insured Fund, Inc.:
On January 27, 1997, MuniYield New York Insured Fund II, Inc. acquired
all of the net assets of MuniYield New York Insured Fund III, Inc. and
MuniVest New York Insured Fund, Inc. pursuant to a plan of
reorganization. The acquisition was accomplished by a tax-free exchange
of 3,688,900 Common Stock shares and 1,000 AMPS shares of MuniYield New
York Insured Fund III, Inc., and 7,204,432 Common Stock shares and 1,960
AMPS shares of MuniVest New York Insured Fund, Inc. for 10,080,205
Common Stock shares and 2,960 AMPS shares of MuniYield New York Insured
Fund II, Inc. MuniYield New York Insured Fund III, Inc.'s net assets
on that date of $77,037,487, including $2,948,846 of unrealized
appreciation and $2,421,657 of accumulated net realized capital
losses, and MuniVest New York Insured Fund, Inc.'s net assets on that
date of $141,743,167, including $5,555,384 of unrealized appreciation
and $13,770,042 of accumulated net realized capital losses, were
combined with those of MuniYield New York Insured Fund II, Inc.
The aggregate net assets of MuniYield New York Insured Fund II, Inc.
immediately after the acquisition amounted to $448,419,691.
7. Subsequent Event:
On May 9, 1997, the Fund's Board of Directors declared an ordinary
income dividend to Common Stock shareholders in the amount of $.075364
per share, payable on May 29, 1997 to shareholders of record as of May
19, 1997.
OFFICERS AND DIRECTORS
Arthur Zeikel, President and Director
James H. Bodurtha, Director
Herbert I. London, Director
Robert R. Martin, Director
Joseph L. May, Director
Andre F. Perold, Director
Terry K. Glenn, Executive Vice President
Vincent R. Giordano, Senior Vice President
Donald C. Burke, Vice President
Kenneth A. Jacob, Vice President
Roberto Roffo, Vice President
Gerald M. Richard, Treasurer
Custodian
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
Transfer Agents
Common Stock:
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, NY 10004
NYSE Symbol
MYT
