MUNIYIELD
NEW JERSEY
INSURED
FUND, INC.
FUND LOGO
Semi-Annual Report
April 30, 1995
This report, including the financial information herein, is
transmitted to the shareholders of MuniYield New Jersey Insured
Fund, 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.
<PAGE>
MuniYield
New Jersey
Insured Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MuniYield New Jersey Insured Fund, Inc.
TO OUR SHAREHOLDERS
For the six-month period ended April 30, 1995, the Common Stock of
MuniYield New Jersey Insured Fund, Inc. earned $0.435 per share
income dividends, which included earned and unpaid dividends of
$0.071. This represents a net annualized yield of 6.05%, based on a
month-end per share net asset value of $14.49. Over the same period,
the total investment return on the Fund's Common Stock was +10.16%,
based on a change in per share net asset value from $13.60 to
$14.49, and assuming reinvestment of $0.438 per share income
dividends.
For the six-month period ended April 30, 1995, the Fund's Auction
Market Preferred Stock had an average yield of 3.85%.
The Environment
During the six months ended April 30, 1995, the perception that the
US economy was overheating and inflationary pressures were
increasing gave way to a more benign economic outlook. With more
signs of slowing growth, investors now appear to be forecasting a
"soft landing" for the US economy. Although gross domestic product
was reported to have increased at a revised 5.1% rate during the
final quarter of 1994, declines in other indicators such as new home
sales and durable goods orders registered thus far in 1995 have led
investors to anticipate that the economy is losing enough momentum
to keep inflation under control and preclude further significant
monetary policy tightening by the Federal Reserve Board. A further
indication of a slowing economy was the reported decline in the
Index of Leading Economic Indicators for March. As US stock and bond
markets have risen on more positive economic news, the value of the
US dollar has reached new lows relative to the yen and the
Deutschemark. Persistent trade deficits and exports of capital from
the United States have kept the US currency in a decade-long decline
relative to the Japanese and German currencies. Over the longer
term, since the United States has the highest productivity among
industrialized nations and among the lowest labor costs, demand for
US dollar-denominated assets may improve. However, a reduction of
the still-widening US trade deficit may be necessary before the US
dollar appreciates substantially relative to the yen and the
Deutschemark.
<PAGE>
The first months of 1995 have been very positive for the stock and
bond markets. Continued signs of a moderating expansion and well-
contained inflationary pressures would provide further assurance
that the peak in interest rates is behind us. On the other hand,
indications of reaccelerating growth and further significant
monetary policy tightening by the Federal Reserve Board would be a
decided negative for the US financial markets.
The Municipal Market
During the six-month period ended April 30, 1995, the tax-exempt
bond market gradually recouped much of the losses sustained during
1994. Signs of a weakening domestic economy and ongoing moderate
inflationary pressures have fostered an environment of declining
interest rates. Since October 31, 1994, A-rated uninsured municipal
revenue bond yields, as measured by the Bond Buyer Revenue Bond
Index, have declined over 65 basis points (0.65%) to close the six-
month period ended April 30, 1995 at 6.29%. Tax-exempt bond yields
initially continued to climb in late 1994, reaching a high of 7.37%
in late November 1994. Municipal bond yields have since declined
over 100 basis points from their recent highs and are presently
lower than they were a year ago. US Treasury bond yields have
experienced similar declines over the last six months to end the
April period at 7.34%.
Much of the recent improvement in the tax-exempt bond market,
however, has occurred over the last three months. During this most
recent quarter, municipal bond yields have fallen approximately 50
basis points, while US Treasury bond yields declined only 35 basis
points. Tax-exempt bond yields declined more than their taxable
counterparts in recent months, largely in response to the
significant decline in new bond issuance in recent quarters. Over
the last six months, less than $60 billion in new long-term
municipal securities were underwritten, a decline of nearly 45%
versus the comparable period a year earlier. Issuance was
particularly low this past January and February, with monthly volume
of less than $8 billion. These levels are the lowest monthly totals
since the mid-1980s.
<PAGE>
To compound the municipal market's already strong technical posture,
both institutional and individual investors have seen significant
cash inflows in recent months. These assets were derived from
regular coupon payments, bond maturities and the proceeds from early
bond calls and redemptions. It has been estimated that investors
received over $20 billion in principal redemptions and coupon income
in January 1995 alone. With monthly issuance in the $10 billion
range thus far this year, the current supply/demand imbalance has
dominated the municipal market and bond prices have risen
accordingly. The tax-exempt bond market's technical position is
likely to remain very strong throughout most of 1995. Investors are
expected to receive almost $40 billion in principal and coupon
payments on July 1, 1995. Investor proceeds from all sources have
been estimated to exceed $200 billion for all of 1995. Estimates of
total new bond issuance for 1995 have continued to be lowered with
most estimates now in the $125 billion range. Investors should find
it increasingly difficult to replace existing holdings as they
mature and to reinvest coupon income in such an environment.
The municipal bond market's outperformance thus far this year caused
the tax-exempt market to become temporarily expensive relative to
its taxable counterpart in late April. Investor concerns regarding
the international currency situation and the future impact of
proposed revisions to US taxation policies upon the tax advantage of
municipal bonds have combined to cause tax-exempt bond yields to
increase marginally in recent weeks. Municipal bond yields rose
approximately 15 basis points by April 30, 1995 from their lows in
mid-April 1995. Long-term US Treasury bond yields have remained
essentially stable.
Such an underperformance by the tax-exempt bond market is likely to
be limited in duration. The recent increase in tax-exempt bond
yields has already begun to attract institutional investors since
some municipal bonds yielding in excess of 85% of US Treasury bond
yields are again available. Also, concerns regarding the implication
for municipal bonds' tax advantage resulting from various proposed
tax law changes (for example, flat-tax, value-added tax or national
sales tax) are all likely to quickly recede as investors realize
that such, if any, changes are unlikely to be enacted before late
1996 at the earliest. Long-term investors will also recall 1986 when
similar tax proposals were made and tax-exempt bond yields initially
rose and then quickly fell. Investors are likely to view the current
situation as an opportunity to purchase very attractively priced tax-
advantaged products. This should cause municipal bond yields to
quickly return to their more historic relationship.
<PAGE>
Portfolio Strategy
MuniYield New Jersey Insured Fund, Inc. entered the six-month period
ended April 30, 1995 defensively postured in light of the extreme
volatility that plagued the fixed-income markets during most of
1994. Since early 1995, however, we have become more positive on the
markets' prospects for several reasons. First, we have seen signs of
an apparent economic slowdown in the United States just as
inflationary pressures were reaching critical levels, thus reducing
concern among fixed-income investors. At the same time, municipal
issuance continued to plunge, exacerbating an already troublesome
situation and propelling municipals to significantly outperform US
Treasury securities during the six-month period ended April 30,
1995. In fact, for the six months ended April 30, 1995, New Jersey
tax-exempt issuance declined by about 62% versus the same period of
1994.
We initially reacted to the changing environment by taking cash
reserves down from approximately 10% of net assets in November to
nearly zero by early 1995 and then maintaining a fully invested
posture for the balance of the period. Portfolio restructuring
during this time was used to give the Fund a more aggressive stance
in the marketplace. This was accomplished by selectively selling par
bonds with limited room for price appreciation and replacing them
with discount coupon bonds. As credit quality is always a priority,
fully 97% of the holdings in the Fund were rated A or better by at
least one of the major rating agencies.
In Conclusion
We appreciate your interest in MuniYield New Jersey Insured Fund,
Inc., and we look forward to serving your investment needs in the
months and years to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
<PAGE>
May 30, 1995
THE BENEFITS AND RISKS OF LEVERAGING
MuniYield New Jersey Insured 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.
<PAGE>
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 pick-up 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 American 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.
PORTFOLIO ABBREVIATIONS
To simplify the listings of MuniYield New Jersey Insured Fund,
Inc.'s portfolio holdings in the Schedule of Investments, we have
abbreviated the names of many of the securities according to the
list below and at right.
ACES SM Adjustable Convertible Extendable Securities
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
TRAN Tax Revenue Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
New Jersey--98.0%
<S> <S> <C> <S> <C>
Atlantic City, New Jersey, Board of Education, GO, UT (d):
AAA Aaa $4,600 6.15% due 12/01/2013 $ 4,697
AAA Aaa 4,600 6.15% due 12/01/2014 4,676
AAA Aaa 3,750 6.15% due 12/01/2015 3,812
AAA Aaa 6,000 Bergen County, New Jersey, Utilities Authority, Water PCR, Series A, 6.50%
due 12/15/2012 (b) 6,303
AAA Aaa 4,875 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 (c) 5,402
AAA Aaa 3,010 Carteret, New Jersey, Board of Education, COP, GO, 6.75% due 10/15/2019 (c) 3,236
Essex County, New Jersey, Improvement Authority Revenue Bonds:
AAA Aaa 2,800 (Irvington Township School District), 6.625% due 10/01/2002 (e)(f) 3,098
AAA Aaa 2,245 (Orange Township School District), UT, Series B, 6.95% due 7/01/2014 (c) 2,464
AAA Aaa 1,120 (Parking Facility), 6.20% due 7/01/2022 (c) 1,126
Highland Park, New Jersey, School District, GO, UT (c):
AAA Aaa 1,200 6.55% due 2/15/2023 1,256
AAA Aaa 1,250 6.55% due 2/15/2024 1,308
AAA Aaa 3,630 Hoboken, Union City, Weehawken, New Jersey, Sewer Authority, Revenue Refunding
Bonds, 6.20% due 8/01/2019 (c) 3,647
A+ NR* 2,600 Hudson County, New Jersey, Improvement Authority, Essential Purpose Revenue
Bonds, 6.625% due 8/01/2025 2,684
AAA Aaa 12,600 Hudson County, New Jersey, Refunding Bonds (Correctional Facilities), COP, 6.60%
due 12/01/2021 (c) 13,162
AAA Aaa 8,000 Mercer County, New Jersey, Improvement Authority, Revenue Refunding Bonds (Solid
Waste), AMT, Series A, 6.70% due 4/01/2013 (b) 8,221
NR* NR* 5,750 Middlesex County, New Jersey, Pollution Control Authority, Revenue Refunding
Bonds (Amerada Hess), 6.875% due 12/01/2022 5,796
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
New Jersey (continued)
<S> <S> <C> <S> <C>
NR* NR* $ 200 Monmouth County, New Jersey, Improvement Authority Revenue Bonds (Pooled
Government Loan Program), ACES, 4.50% due 8/01/2016 (a) $ 200
AAA Aaa 2,410 New Jersey Building Authority, State Building Revenue Refunding Bonds, 5% due
6/15/2010 (c) 2,211
NR* VMIG1++ 1,500 New Jersey, EDA, Dock Facility Revenue Refunding Bonds (Bayonne International
Matex Tank Terminal Project), VRDN, Series A, 4.90% due 12/01/2027 (a) 1,500
AAA Aaa 4,500 New Jersey, EDA, Natural Gas Facilities, Revenue Refunding Bonds (NUI Corp.),
Series A, 6.35% due 10/01/2022 (d) 4,588
AAA Aaa 3,750 New Jersey, EDA, Revenue Bonds (State Contract Economic Recovery), Series A, 6%
due 3/15/2021 (e) 3,689
AAA Aaa 2,835 New Jersey, EDA, Revenue Refunding Bonds (RWJ Health Care Corporation), 6.50%
due 7/01/2024 (e) 2,930
New Jersey Health Care Facilities Financing Authority Revenue Bonds:
AAA Aaa 1,495 (Bayshore Community Hospital), Series A, 6.50% due 7/01/2015 (c) 1,550
AAA Aaa 6,355 (Holy Name Hospital), Series B, 6.75% due 7/01/2020 (d) 6,586
AAA Aaa 5,445 (Mercer Medical Center), 6.50% due 7/01/2021 (c) 5,590
AAA Aaa 1,185 Refunding (Hackensack Medical Center), 6.625% due 7/01/2017 (b) 1,234
AAA Aaa 4,000 Refunding (JFK Health Systems), 6.70% due 7/01/2021 (b) 4,171
AAA Aaa 2,000 Refunding (Jersey Shore Medical Center), 5.875% due 7/01/2024 (d) 1,941
AAA Aaa 2,000 (Somerset Medical Center), Series A, 5.20% due 7/01/2024 (b) 1,766
New Jersey Sports and Exposition Authority, Luxury Tax Revenue Refunding Bonds
(Convention Center), Series A (c):
AAA Aaa 2,000 6.60% due 7/01/2015 2,108
AAA Aaa 8,630 6.25% due 7/01/2020 8,743
A1 VMIG1++ 600 New Jersey Sports and Exposition Authority Revenue Bonds (State Contract), VRDN,
Series C, 4.55% due 9/01/2024 (a)(c) 600
AAA Aaa 2,000 New Jersey State Educational Facilities Authority Revenue Bonds (Montclair State
University), Series E, 6.50% due 7/01/2021 (d) 2,072
SP1+ MIG1++ 3,000 New Jersey State, GO, TRAN, Series A, 5% due 6/15/1995 3,003
<PAGE>
AAA Aaa 4,000 New Jersey State Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds,
AMT, Series M, 7% due 10/01/2026 (c) 4,222
New Jersey State Housing and Mortgage Finance Agency, Housing Revenue Refunding
Bonds:
AAA NR* 4,000 M/F (Presidential Plaza), 7% due 5/01/2030 (g) 4,132
A+ NR* 2,500 Series A, 6.95% due 11/01/2013 2,603
AAA Aaa 5,350 New Jersey State Transportation Corporation, COP (Raymond Plaza East,
Incorporated), 6.50% due 10/01/2016 (e) 5,634
AAA Aaa 1,500 New Jersey State Turnpike Authority, Revenue Refunding Bonds, Series C, 6.50%
due 1/01/2016 (c) 1,603
AAA Aaa 5,000 New Jersey Wastewater Treatment Trust Loan, Insured Revenue Bonds, Series B,
6.25% due 5/01/2012 (c) 5,135
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
New Jersey (concluded)
<S> <S> <C> <S> <C>
AAA Aaa $3,490 Passaic Valley, New Jersey, Water Commission, Water Supply Revenue Bonds,
Series A, 6.40% due 12/15/2002 (b)(f) $ 3,819
Port Authority of New York and New Jersey, Consolidated Revenue Bonds, AMT (b):
AAA Aaa 3,500 96th Series, 6.60% due 10/01/2023 3,622
AAA Aaa 4,000 Refunding, 97th Series, UT, 6.65% due 1/15/2023 4,158
Port Authority of New York and New Jersey, Special Obligation Revenue Bonds
(Versatile Structure Obligations), VRDN (a):
A1+ VMIG1++ 1,600 Series 1, 4.95% due 8/01/2028 1,600
A1+ VMIG1++ 800 Series 2, 4.80% due 5/01/2019 800
AAA Aaa 1,180 South Brunswick Township, New Jersey, Board of Education, GO, UT, 6.40% due
8/01/2021 (b) 1,212
AAA Aaa 8,000 South Jersey Transportation Authority, New Jersey, Transportation System
Revenue Bonds, Series B, 6% due 11/01/2012 (c) 8,069
Total Investments (Cost--$166,484)--98.0% 171,979
Other Assets Less Liabilities--2.0% 3,443
--------
Net Assets--100.0% $175,422
========
<PAGE>
<FN>
(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, 1995.
(b)FGIC Insured.
(c)MBIA Insured.
(d)AMBAC Insured.
(e)FSA Insured.
(f)Prerefunded.
(g)FHA Insured.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets, Liabilities and Capital as of April 30, 1995
<CAPTION>
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$166,484,038) (Note 1a) $171,978,626
Cash 41,370
Receivables:
Interest $ 3,288,407
Securities sold 505,321 3,793,728
------------
Deferred organization expenses (Note 1e) 8,607
Prepaid expenses and other assets 4,342
------------
Total assets 175,826,673
------------
Liabilities: Payables:
Dividends to shareholders (Note 1f) 281,790
Investment adviser (Note 2) 68,118 349,908
------------
Accrued expenses and other liabilities 55,059
------------
Total liabilities 404,967
------------
Net Assets: Net assets $175,421,706
============
<PAGE>
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.10 per share (2,240 shares
of AMPS* issued and outstanding at $25,000 per share
liquidation preference) $ 56,000,000
Common Stock, par value $.10 per share (8,241,167 shares
issued and outstanding) $ 824,117
Paid-in capital in excess of par 114,958,321
Undistributed investment income--net 667,135
Accumulated realized capital losses on investments--net
(Note 5) (2,522,455)
Unrealized appreciation on investments--net 5,494,588
------------
Total--Equivalent to $14.49 net asset value per share of
Common Stock (market price--$14.00) 119,421,706
------------
Total capital $175,421,706
============
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months Ended
April 30, 1995
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 5,235,600
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 419,529
Commission fees (Note 4) 70,046
Professional fees 36,090
Accounting services (Note 2) 24,624
Transfer agent fees 18,609
Printing and shareholder reports 12,985
Directors' fees and expenses 11,735
Listing fees 8,637
Custodian fees 5,909
Pricing fees 2,982
Amortization of organization expenses (Note 1e) 1,415
Other 9,359
------------
Total expenses 621,920
------------
Investment income--net 4,613,680
------------
<PAGE>
Realized & Realized loss on investments--net (2,006,004)
Unrealized Gain Change in unrealized appreciation/depreciation on investments--net 9,374,518
(Loss) on ------------
Investments Net Increase in Net Assets Resulting from Operations $ 11,982,194
- --Net (Notes 1b, ============
1d & 3):
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 1995 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 4,613,680 $ 9,304,187
Realized loss on investments--net (2,006,004) (516,282)
Change in unrealized appreciation/depreciation on investments
--net 9,374,518 (21,388,370)
------------ ------------
Net increase (decrease) in net assets resulting from operations 11,982,194 (12,600,465)
------------ ------------
Dividends & Investment income--net:
Distributions to Common Stock (3,612,293) (7,644,949)
Shareholders Preferred Stock (1,058,142) (1,584,553)
(Note 1f): Realized gain on investments--net:
Common Stock -- (278,573)
Preferred Stock -- (48,967)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (4,670,435) (9,557,042)
------------ ------------
Capital Stock Value of shares issued to Common Stock shareholders in
Transactions reinvestment of dividends and distributions -- 712,910
(Note 4): ------------ ------------
Net increase in net assets derived from capital stock
transactions -- 712,910
------------ ------------
<PAGE>
Net Assets: Total increase (decrease) in net assets 7,311,759 (21,444,597)
Beginning of period 168,109,947 189,554,544
------------ ------------
End of period* $175,421,706 $168,109,947
============ ============
<FN>
*Undistributed investment income--net $ 667,135 $ 723,890
============ ============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
For the For the
Six Period
The following per share data and ratios have been derived Months For the Oct. 30
from information provided in the financial statements. Ended Year Ended 1992++ to
April 30, October 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.60 $ 16.30 $ 14.14 $ 14.18
Operating -------- -------- -------- --------
Performance: Investment income--net .56 1.13 1.11 --
Realized and unrealized gain (loss) on investments--net .90 (2.67) 2.21 --
-------- -------- -------- --------
Total from investment operations 1.46 (1.54) 3.32 --
-------- -------- -------- --------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.44) (.93) (.86) --
Realized gain on investments--net -- (.03) -- --
-------- -------- -------- --------
Total dividends and distributions to Common Stock
shareholders (.44) (.96) (.86) --
-------- -------- -------- --------
Capital charge resulting from issuance of Common Stock -- -- -- (.04)
-------- -------- -------- --------
Effect of Preferred Stock activity:++++
Dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.13) (.19) (.17) --
Realized gain on investments--net -- (.01) -- --
Capital charge resulting from issuance of
Preferred Stock -- -- (.13) --
-------- -------- -------- --------
Total effect of Preferred Stock activity (.13) (.20) (.30) --
-------- -------- -------- --------
Net asset value, end of period $ 14.49 $ 13.60 $ 16.30 $ 14.14
======== ======== ======== ========
Market price per share, end of period $ 14.00 $ 11.25 $ 16.50 $ 15.00
======== ======== ======== ========
<PAGE>
Total Investment Based on market price per share 28.67%+++ (27.05%) 16.25% .00%+++
Return:** ======== ======== ======== ========
Based on net asset value per share 10.16%+++ (10.73%) 21.83% (.28%)+++
======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .74%* .75% .57% --
Net Assets:*** ======== ======== ======== ========
Expenses .74%* .75% .72% --
======== ======== ======== ========
Investment income--net 5.51%* 5.14% 5.19% --
======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock, end of period
Data: (in thousands) $119,422 $112,110 $133,555 $112,666
======== ======== ======== ========
Preferred Stock outstanding, end of period
(in thousands) $ 56,000 $ 56,000 $ 56,000 $ --
======== ======== ======== ========
Portfolio turnover 19.16% 21.47% 9.10% --
======== ======== ======== ========
Dividends Per Investment income--net $ 472 $ 708 $ 599 $ --
Share on
Outstanding:++++++
<FN>
*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.
++Commencement of Operations.
++++The Fund's Preferred Stock was issued on November 30, 1992.
++++++Dividends per share have been adjusted to reflect a two-for-
one stock split.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield New Jersey Insured Fund, 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 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 MJI. 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 fair value as
determined in good faith by or under the direction of the Board of
Directors of the Fund.
(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.
<PAGE>
* 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.
* 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.
<PAGE>
(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, Merrill Lynch, Pierce, Fenner & Smith Inc.
("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 1995 were $30,996,360 and
$34,496,002, respectively.
<PAGE>
Net realized and unrealized gains (losses) as of April 30, 1995 were
as follows:
Realized Unrealized
Losses Gains
Long-term investments $ (689,177) $ 5,494,588
Financial futures contracts (1,316,827) --
----------- ------------
Total $(2,006,004) $ 5,494,588
=========== ============
As of April 30, 1995, net unrealized appreciation for Federal income
tax purposes aggregated $5,494,588, of which $5,516,997 related to
appreciated securities and $22,409 related to depreciated
securities. The aggregate cost of April 30, 1995 for Federal income
tax purposes was $166,484,038.
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
For the six months ended April 30, 1995, shares issued and
outstanding remained constant at 8,241,167. At April 30, 1995, total
paid-in capital amounted to $115,782,438.
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 yield in effect at April 30, 1995 was 4.25%.
A two-for-one stock split occurred on December 1, 1994. As a result,
at April 30, 1995, there were 2,240 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, 1995, MLPF&S, an affiliate of FAM, earned $63,932 as
commissions.
5. Capital Loss Carryforward:
At October 31, 1994, the Fund had a capital loss carryforward of
approximately $516,000, all of which expires in 2002. This amount
will be available to offset like amounts of any future taxable
gains.
<PAGE>
6. Subsequent Event:
On May 9, 1995, the Fund's Board of Directors declared an ordinary
income dividend to Common Stock shareholders in the amount of
$.070826 per share, payable on May 30, 1995 to shareholders of
record as of May 19, 1995.
PER SHARE INFORMATION
<TABLE>
Per Share Selected Quarterly Financial Data*
<CAPTION>
Dividends/Distributions
Net Realized Unrealized
Investment Gains Gains Net Investment Income Capital Gains
For the Quarter Income (Losses) (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
May 1, 1993 to July 31, 1993 $.29 $ .01 $ .35 $.24 $.04 -- --
August 1, 1993 to October 31, 1993 .28 .03 .57 .24 .05 -- --
November 1, 1993 to January 31, 1994 .29 -- .17 .24 .04 $.03 $.01
February 1, 1994 to April 30, 1994 .28 (.02) (1.93) .23 .05 -- --
May 1, 1994 to July 31, 1994 .28 .03 2.28 .23 .05 -- --
August 1, 1994 to October 31, 1994 .28 (.08) (3.12) .23 .05 -- --
November 1, 1994 to January 31, 1995 .29 (.19) .77 .22 .07 -- --
February 1, 1995 to April 30, 1995 .27 (.05) .37 .22 .06 -- --
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
May 1, 1993 to July 31, 1993 $16.12 $15.34 $16.375 $15.25 646
August 1, 1993 to October 31, 1993 16.64 15.70 17.00 15.875 801
November 1, 1993 to January 31, 1994 16.44 15.77 16.75 15.375 685
February 1, 1994 to April 30, 1994 16.39 14.21 16.875 13.75 745
May 1, 1994 to July 31, 1994 15.02 14.15 14.75 13.375 539
August 1, 1994 to October 31, 1994 14.70 13.60 14.125 11.375 909
November 1, 1994 to January 31, 1995 14.18 12.56 13.50 10.625 1,435
February 1, 1995 to April 30, 1995 14.82 14.20 14.00 12.875 628
<FN>
*Calculations are based upon shares of Common Stock outstanding at
the end of each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
<PAGE>
OFFICERS AND DIRECTORS
Arthur Zeikel, President and Director
Donald Cecil, Director
M. Colyer Crum, Director
Edward H. Meyer, Director
Jack B. Sunderland, Director
J. Thomas Touchton, Director
Terry K. Glenn, Executive Vice President
Donald C. Burke, Vice President
Vincent R. Giordano, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, New York 10286
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, New York 10286
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
NYSE Symbol
MJI
