MuniYield Florida Insured Fund
Semi-Annual
Report
April 30, 1994
Officers and Trustees
Arthur Zeikel, President and Trustee
Donald Cecil, Trustee
M. Colyer Crum, Trustee
Edward H. Meyer, Trustee
Jack B. Sunderland, Trustee
J. Thomas Touchton, Trustee
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
110 Washington Street
New York, New York 10286
Transfer Agents
Common Shares:
The Bank of New York
101 Barclay Street
New York, New York 10286
Preferred Shares:
IBJ Schroder Bank & Trust Co.
One State Street
New York, New York 10004
NYSE Symbol
MFT
<PAGE>
This report, including the financial information herein,
is transmitted to the shareholders of MuniYield Florida
Insured Fund 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 perfor-
mance. The Fund has leveraged its Common Shares by issuing
Preferred Shares to provide Common Shareholders with a po-
tentially higher rate of return. Leverage creates risks
for Common Shareholders including the likelihood of greater
volatility of net asset value and market price of the Common
Shares, and the risk that fluctuations in the short-term di-
vidend rates of the Preferred Shares may affect the yield
to Common Shareholders.
MuniYield Florida Insured Fund
Box 9011
Princeton, NJ
08543-9011
MuniYield Florida Insured Fund
TO OUR OUR SHAREHOLDERS
For the six-month period ended April 30, 1994, the Common Shares
of MuniYield Florida Insured Fund earned $0.606 per share income
dividends, which includes earned and unpaid dividends of $0.074.
This represents a net annualized yield of 8.42%, based on a month-
end per share net asset value of $14.51. Over the same period, the
total investment return on the Fund's Common Shares was -8.87%,
based on a change in per share net asset value from $16.56 to
$14.51, and assuming reinvestment of $0.615 per share income divi-
dends.
For the six-month period ended April 30, 1994, the Fund's Prefer-
red Shares had an average yield of 2.886%.
The Environment
Inflationary expectations and investor sentiment changed for the
worse during the three-month period ended April 30, 1994. Follow-
ing stronger-than-expected economic results through year-end
1993, the Federal Reserve Board broke with tradition on Feb-
ruary 4, 1994 and publicly announced a modest 25 basis point
(0.25%) increase in short-term interest rates. At the March 22
meeting of the Federal Open Market Committee, the Federal Reserve
Board again raised the Federal Funds rate by 25 basis points,
followed by another 25 basis point increase on April 18, 1994.
<PAGE>
Rather than view the Federal Reserve Board's first tightening
move as a preemptive strike against inflation, fixed-income
investors focused on Chairman Greenspan's implicit promise of
further tightening should the rate of inflation accelerate, and
bond prices declined sharply. The setback in the bond market was
also reflected in greater stock market volatility. While the
second and third increases in the Federal Funds rate were less of
a surprise, investors remained concerned that interest rates
would trend upward sharply as the central bank aggressively
attempted to contain the inflationary pressures of an improving
economy. At the same time, highly leveraged investors were forced
to liquidate positions in the face of declining stock and bond
prices. Investor confidence was not restored with the announce-
ment of the surprisingly slow 2.6% gross domestic product growth
rate for the first calendar quarter of 1994. Instead, investors
focused on the higher-than-expected (but still moderate) broad
inflation measures and became concerned that business activity
was beginning to stagnate as inflationary pressures were in-
creasing.
The Municipal Market
During the six months ended April 30, 1994, tax-exempt bond
yields exhibited considerable volatility as they rose to their
highest level in the past two years. As measured by the Bond
Buyer Revenue Bond Index, the yield on newly issued municipal
bonds maturing in 30 years rose over 90 basis points to 6.42% by
the end of April. Yields on seasonal municipal revenue bonds rose
by over 100 basis points in sympathy with the equally dramatic
increase in long-term US Treasury bond yields. By the end of
April, yields on US Treasury securities rose by over 95 basis
points to approximately 7.30%.
Long-term tax-exempt bond yields were essentially unchanged from
the end of October 1993 to the end of January 1994. However, on a
weekly basis, tax-exempt bond yields fluctuated by as much as 15
basis points as investors were unable to reconcile the rapid eco-
nomic growth seen late last year with continued low inflation.
Following the initial interest rate increase by the Federal Re-
serve Board in early February, municipal bond prices began to
erode in concert with taxable bond prices as investors began to
sell securities in anticipation of further interest rate in-
creases. This fear led investors to withdraw from the tax-
exempt market. From early February to the end of March, total
assets of all tax-exempt bond funds declined by $14 billion to
$247 billion. This decline in investor demand, coupled with fears
that the robust economic recovery seen during the fourth quarter
of 1993 would continue well into 1994, helped push municipal bond
yields higher in February and March. Attracted by tax-exempt
yields in excess of 6.25%, investor demand returned in April,
allowing yields to decline approximately 15 basis points to end
the April period at approximately 6.40%.
<PAGE>
A rise in tax-exempt bond yields the magnitude of that experienced
over the past six months has not been seen since 1987 when muni-
cipal bond rates rose 250 basis points between March and October
of that year. It is very important to note that the recent muni-
cipal bond price declines were largely the result of consistent
and insistent selling pressures over the last two months. In 1987,
the tax-exempt bond market was much more volatile and, at times,
chaotic as investors sought to liquidate positions without con-
cern for fundamental value. For the most part, the recent price
deterioration has been orderly, and the municipal bond market's
liquidity and integrity have not been challenged or jeopardized.
To a large extent, the municipal bond market has continued to be
supported by its strong technical position. New-issue volume for
the last six months has been less than $105 billion. This rep-
resents a decline of approximately 20% versus the comparable
period a year ago. This decline was expected and has been dis-
cussed in previous shareholder reports. This reduced issuance
has minimized potential selling pressure in recent months since
institutional investors have been wary of selling appreciable
amounts of securities that they may be unable to replace later
this year at any price level. We expect this decline in issuance
to continue since we anticipate recent yield increases to sig-
nificantly impact future municipal bond issuance.
Despite recent price declines, tax-exempt securities remain among
the most attractive investment alternatives available. After the
recent yield increases, longer-term municipal securities yield
approximately 90% of comparable US Treasury yields. Purchasers of
these municipal bonds also accrue substantial after-tax yield
advantages. To investors in the 39% marginal Federal income tax
bracket, the purchase of a municipal bond yielding 6.50% rep-
resents an after-tax equivalent of 10.65%. With prevailing esti-
mates of 1994 inflation at no more than 3%--4%, real after-tax
rates in excess of 6.50% easily compensate longer-term investors
for much of the price volatility recently experienced.
<PAGE>
Portfolio Strategy
The Fund has a constructive interest rate outlook because of the
slowing of the economy that is forecast for the third and fourth
quarters of 1994 and the expected reduction of the new-issue
supply of municipal bonds. With the increase in interest rate
volatility over the past six months, the Fund's strategy has been
to increase its yield as interest rates have risen, as well as to
purchase bonds that will perform well if bond prices rally. In
addition, the Fund implemented the strategy of purchasing
discount bonds as well as bonds with maturities of over 15 years
to help the portfolio perform well as interest rates stabilize
and the supply of new issues of municipal securities dwindles.
<PAGE>
The Fund extended the maturity of its Preferred Shares to Feb-
ruary 1995 in response to the Federal Reserve Board's current
policy of raising short-term interest rates in order to keep
inflation from rising. The interest rate for the Fund's Pre-
ferred Shares was 3.15% while interest rates on municipal se-
curities maturing in 25 years are ranging between 6.00%--6.50%.
Dividends paid to Preferred Shareholders are significantly lower
than the income earned on the Fund's long-term investments, and
therefore the Common Shareholders are the beneficiaries of the
incremental yield. Should the interest rate differential between
short-term and long-term interest rates narrow because of a rise
in short-term interest rates, the incremental yield "pick up" on
the Common Shares will be reduced. Furthermore, if long-term
interest rates rise, the Common Shares' net asset value will
reflect the full decline in the entire portfolio holdings, since
the value of the Fund's Preferred Shares does not fluctuate.
During the six-month period ended April 30, 1994, long-term
interest rates rose, reflected in the decline in the net asset
value of the Fund's Common Shares. For a complete explanation of
leveraging, see page 3 of this report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
May 31, 1994
<PAGE>
THE BENEFITS AND RISKS OF LEVERAGING
MuniYield Florida Insured Fund utilizes leveraging to seek to
enhance the yield and net asset value of its Common Shares. How-
ever, these objectives cannot be achieved in all interest rate
environments. To leverage, the Fund issues Preferred Shares,
which pay 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 Shareholders in the
form of dividends, and the value of these portfolio holdings is
reflected in the per share net asset value of the Fund's Common
Shares. However, in order to benefit Common Shareholders, the
yield curve must be positively sloped; that is, short-term
interest rates must be lower than long-term interest rates. At
the same time, a period of generally declining interest rates
will benefit Common Shareholders. If either of these conditions
change, then the risks of leveraging will begin to outweigh the
benefits.
To illustrate these concepts, assume a fund's Common Share
capitalization of $100 million and the issuance of Preferred
Shares for an additional $50 million, creating a total value of
$150 million available for investment in long-term municipal
bonds. If prevailing short-term interest rates are approximately
3% and long-term interest rates are approximately 6%, the yield
curve has a strongly positive slope. The fund pays dividends on
the $50 million of Preferred Shares based on the lower short-term
interest rates. At the same time, the fund's total portfolio of
$150 million earns the income based on long-term interest rates.
In this case, the dividends paid to Preferred Shareholders are
significantly lower than the income earned on the fund's long-
term investments, and therefore the Common 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 Shares will be reduced. At the same time, the
market value of the fund's Common Shares (that is, its price as
listed on the New York Stock Exchange) may, as a result, decline.
Furthermore, if long-term interest rates rise, the Common Shares'
net asset value will reflect the full decline in the price of the
portfolio's investments, since the value of the fund's Preferred
Shares does not fluctuate. In addition to the decline in net
asset value, the market value of the fund's Common Shares may
also decline.
<PAGE>
PORTFOLIO ABBREVIATIONS
To simplify the listings of MuniYield Florida Insured Fund'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)
HFA Housing Finance Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
Florida--98.4%
<S> <S> <C> <S> <C>
Altamonte Springs, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Adventist Health/Sunbelt), Series B (a):
AAA Aaa $ 2,750 5% due 11/15/2008 $ 2,528
AAA Aaa 2,000 5.125% due 11/15/2018 1,710
AAA Aaa 5,750 Boynton Beach, Florida, Utility System Revenue Refunding Bonds, 6.25% due
11/01/2020 (b) 5,763
AAA Aaa 1,000 Brevard County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Holmes
Regional Medical Center Project), 5.75% due 10/01/2013 (d) 953
A+ A1 8,500 Citrus County, Florida, PCR, Refunding (Florida Power Corporation--Crystal River),
Series B, 6.35% due 2/01/2022 8,550
AAA Aaa 1,800 Clearwater, Florida, Water and Sewer Revenue Refunding Bonds, 6.50% due 12/01/2012
(d) 1,886
AAA Aaa 3,165 Coral Springs, Florida, Improvement District, Water and Sewer Revenue Bonds, Series C,
7.60% due 12/01/1999 (d)(e) 3,598
AAA Aaa 7,750 Dade County, Florida, Aviation Revenue Bonds, Series B, AMT, 6.60% due 10/01/2022
(d) 7,961
AAA Aaa 4,500 Dade County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Baptist
Hospital of Miami Project), Series A, 5.75% due 5/01/2021 (d) 4,304
<PAGE>
A-1 VMIG1 600 Dade County, Florida, IDR (Solid Waste Montenay-Dade Ltd. Project), VRDN, AMT, 3.70%
due 12/01/2010 (f) 600
AAA Aaa 7,435 Dade County, Florida, Seaport Revenue Bonds, UT, 6.25% due 10/01/2021 (a) 7,455
A1+ VMIG1 1,000 Dade County, Florida, Water and Sewer Revenue Bonds, VRDN, 3.45% due 10/05/2022 (f) 1,000
AAA Aaa 2,440 Escambia County, Florida, PCR, Refunding (Gulf Power Company Project), 5.80% due
6/01/2023 (d) 2,278
AAA Aaa 1,000 Escambia County, Florida, Utility Authority Revenue Bonds, Series A, 6.25% due
1/01/2015 (b) 1,007
AAA NR 3,090 Florida, HFA, Revenue Refunding Bonds (General Mortgage), Series A, 6.40% due
6/01/2024 3,021
Florida State Board of Education, Public Education Revenue Bonds (Capital Outlay):
AA Aa 2,000 Series A, 6.75% due 6/01/2021 2,096
AA Aa 5,000 Series C, UT, 6.625% due 6/01/2022 5,160
AAA Aaa 5,800 Florida State Board of Finance, Department of General Service Revenue Bonds (Natural
Resource and Preservation Department), Series 2000-A, 6.25% due 7/01/2013 (d) 5,844
Florida State Municipal Power Agency Revenue Bonds (Power Supply Project) (a):
AAA Aaa 7,145 6.25% due 10/01/2002 (e) 7,652
AAA Aaa 565 5.10% due 10/01/2014 494
AAA Aaa 5,235 5.10% due 10/01/2025 4,349
AAA Aaa 5,000 Florida State Municipal Power Agency Revenue Bonds (Stanton II Project), 6.50% due
10/01/2002 (a)(e) 5,446
Florida State Turnpike Authority, Turnpike Revenue Bonds, Series A (b):
AAA Aaa 2,230 6.35% due 7/01/2002 (e) 2,392
AAA Aaa 2,500 5.25% due 7/01/2011 2,298
AAA Aaa 1,000 6.30% due 7/01/2012 1,014
AAA Aaa 4,120 5% due 7/01/2016 3,524
AAA Aaa 1,120 6.35% due 7/01/2022 1,131
AA Aa 4,800 Gainesville, Florida, Utility System Revenue Bonds, Series B, 6.50% due 10/01/2013 5,050
Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric Company Project),
VRDN (f):
A1+ VMIG1 700 3% due 5/15/2018 700
A1+ VMIG1 2,100 2.90% due 9/01/2025 2,100
AAA Aaa 1,000 Hillsborough County, Florida, IDA, Revenue Bonds (Alleghany Health System--J. Knox
Village), 6.375% due 12/01/2012 (d) 1,017
AAA Aaa 3,210 Hollywood, Florida, Water and Sewer Revenue Refunding Bonds, 5.60% due 10/01/2023 (b) 2,935
AA Aaa 1,000 Jacksonville, Florida, Electric Authority Revenue Bonds (Bulk Power Supply--Scherer
4-1-A), 6.75% due 10/01/2000 (e) 1,096
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
Florida (concluded)
<S> <S> <C> <S> <C>
AAA Aaa $ 2,500 Jupiter, Florida, Sales Tax, Revenue Refunding Bonds, 6.375% due 9/01/2020 (a) $ 2,527
AAA Aaa 4,000 Kissimmee, Florida, Utility Authority Electric Systems, Revenue Refunding and Im-
provement Bonds, 5.25% due 10/01/2018 (b) 3,507
AAA Aaa 2,000 Marion County, Florida, Hospital District Revenue Refunding Bonds (Monroe Regional
Medical Center), 6.25% due 10/01/2012 (b) 2,018
AAA Aaa 500 Martin County, Florida, Water and Wastewater System Revenue Bonds (Martin Downs
System), 5.70% due 10/01/2023 (b) 464
AAA Aaa 4,300 North Miami, Florida, Health Facilities Authority Revenue Bonds (Bon Secours Health
Systems Project), 6% due 8/15/2027 (c) 4,203
AAA Aaa 5,000 North Port, Florida, Utility Revenue Bonds, 6.25% due 10/01/2022 (b) 5,011
AAA Aaa 5,800 Orange County, Florida, Capital Improvement Revenue Refunding Bonds, 6% due
10/01/2022 (a) 5,729
AAA Aaa 2,500 Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Orlando
Regional Healthcare), Series B, 5% due 10/01/2010 (d) 2,236
Orange County, Florida, Sales Tax Revenue Bonds (b):
AAA Aaa 550 6.125% due 1/01/2000 (e) 584
AAA Aaa 1,450 6.125% due 1/01/2019 1,425
Orange County, Florida, Tourist Development Tax Revenue Refunding Bonds (a):
AAA Aaa 1,000 Series A, 6.50% due 10/01/2010 1,041
AAA Aaa 6,815 Series B, 6.50% due 10/01/2019 6,949
AAA Aaa 7,475 Series B, 6% due 10/01/2021 7,231
AAA Aaa 3,550 Orange County, Florida, Water and Wastewater Revenue Refunding Bonds, 6.25% due
10/01/2017 (a) 3,560
AAA Aaa 3,345 Orlando and Orange Counties, Florida, Expressway Authority, Expressway Revenue Re-
funding Bonds (Senior Lien), 5.25% due 7/01/2023 (b) 2,902
Orlando, Florida, Utilities Commission, Water and Electric Revenue Bonds:
AA- Aaa 1,440 Series A, 6.50% due 10/01/2020 (e) 1,567
AAA Aaa 2,000 Series D, 5.50% due 10/01/2020 (d) 1,795
<PAGE>
AAA Aaa 3,000 Osceola County, Florida, Transportation Revenue Bonds (Osceola Parkway Project),
6.10% due 4/01/2017 (d) 2,956
AAA Aaa 2,240 Palm Bay, Florida, Utility Revenue Refunding Bonds (Palm Bay Utility Corporation
Project), 5% due 10/01/2015 (d) 1,926
AAA Aaa 2,000 Palm Beach County, Florida, Solid Waste Authority, Revenue and Refunding Improvement
Bonds, 6.25% due 12/01/2008 (d) 2,066
NR VMIG1 1,200 Palm Beach County, Florida, Water and Sewer Revenue Bonds, VRDN, 2.95% due 10/01/2011
(f) 1,200
A-1 VMIG1 2,000 Pinellas County, Florida, Revenue Refunding Bonds (Pooled Hospital Loan Program), VRDN,
2.95% due 12/01/2015 (f) 2,000
Reedy Creek, Florida, Improvement District, Florida Utility Revenue Bonds (d):
AAA Aaa 2,500 Series 1, 5% due 10/01/2019 2,107
AAA Aaa 3,350 Series 1991--1, 6.50% due 10/01/2016 3,623
AAA Aaa 1,500 Saint Lucie County, Florida, Sales Tax Revenue Refunding Bonds, 5% due 10/01/2019
(b) 1,264
AAA Aaa 1,500 Tampa, Florida, Water and Sewer Revenue Refunding Bonds, Series A, 6% due 10/01/2017
(b) 1,461
Total Investments (Cost--$176,948)--98.4% 178,264
Other Assets Less Liabilities--1.6% 2,914
--------
Net Assets--100.0% $181,178
========
<FN>
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FSA Insured.
(d) MBIA Insured.
(e) Prerefunded.
(f) The interest rate is subject to change periodically based upon
prevailing market rates. The interest rates shown are the rates
in effect at April 30, 1994.
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets, Liabilities and Capital as of April 30, 1994
<CAPTION>
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$176,947,792)(Note 1a) $178,264,121
Cash 38,248
Receivables:
Interest $ 2,140,599
Securities sold 983,247 3,123,846
------------
Deferred organization expenses (Note 1e) 31,474
Prepaid expenses and other assets 102,447
------------
Total assets 181,560,136
------------
Liabilities: Payables:
Dividends to shareholders (Note 1g) 310,378
Investment adviser (Note 2) 71,837 382,215
------------ ------------
Total liabilities 382,215
------------
Net Assets: Net assets $181,177,921
============
Capital: Capital Shares (unlimited number of shares of beneficial interest
authorized) (Note 4):
Preferred Shares, par value $.10 per share (1,200 shares of AMPS*
issued and outstanding at $50,000 per share liquidation preference) $ 60,000,000
Common Shares, par value $.10 per share (8,350,463 shares issued
and outstanding) $ 835,046
Paid-in capital in excess of par 116,284,258
Undistributed investment income--net 763,060
Undistributed realized capital gains--net 1,979,228
Unrealized appreciation on investments--net 1,316,329
------------
Total--Equivalent to $14.51 net asset value per Common Share
(market price--$14.00) 121,177,921
------------
Total capital $181,177,921
============
<FN>
* Auction Market Preferred Shares.
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months Ended
April 30, 1994
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 5,352,616
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 476,861
Commission fees (Note 4) 98,309
Professional fees 35,224
Printing and shareholder reports 18,207
Accounting services (Note 2) 17,803
Transfer agent fees 15,782
Trustees' fees and expenses 11,450
Listing fees 7,858
Custodian fees 5,613
Amortization of organization expenses (Note 1e) 3,749
Pricing fees 3,390
Other 7,117
------------
Total expenses 701,363
------------
Investment income--net 4,651,253
------------
Realized & Realized gain on investments--net 1,979,232
Unrealized Gain Change in unrealized appreciation on investments--net (17,584,224)
(Loss) on ------------
Investments--Net Net Decrease in Net Assets Resulting from Operations $(10,953,739)
(Notes 1d & 3): ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the
Six Months For the
Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 1994 1993
<S> <S> <C> <C>
Operations: Investment income--net $ 4,651,253 $ 9,303,756
Realized gain on investments--net 1,979,232 1,551,783
Change in unrealized appreciation on investments--net (17,584,224) 18,900,553
------------ ------------
Net increase (decrease) in net assets resulting from operations (10,953,739) 29,756,092
------------ ------------
Dividends & Investment income--net:
Distributions to Common Shares (3,839,068) (7,060,303)
Shareholders Preferred Shares (703,944) (1,588,634)
(Note 1g): Realized gain on investments--net:
Common Shares (1,286,814) --
Preferred Shares (264,972) --
------------ ------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (6,094,798) (8,648,937)
------------ ------------
Capital Share Proceeds from issuance of Preferred Shares -- 60,000,000
Transactions Value of shares issued to Common Shareholders in reinvestment
(Notes 1e & 4): of dividends 328,795 1,765,503
Offering and underwriting costs resulting from issuance of
Preferred Shares -- (1,163,934)
Offering and underwriting costs resulting from issuance of
Common Shares (10,500) --
------------ ------------
Net increase in net assets derived from capital share transactions 318,295 60,601,569
------------ ------------
Net Assets: Total increase (decrease) in net assets (16,730,242) 81,708,724
Beginning of period 197,908,163 116,199,439
------------ ------------
End of period* $181,177,921 $197,908,163
============ ============
<FN>
* Undistributed investment income--net $ 763,060 $ 654,819
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
For the
Period
The following per share data and ratios have been derived For the Six For the October 30,
from information provided in the financial statements. Months Ended Year Ended 1992+ to
April 30, October 31, October 31,
Increase (Decrease) in Net Asset Value: 1994 1993 1992
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 16.56 $ 14.14 $ 14.18
Operating ---------- ---------- ----------
Performance: Investment income--net .55 1.12 --
Realized and unrealized gain (loss) on investments--net (1.87) 2.48 --
---------- ---------- ----------
Total from investment operations (1.32) 3.60 --
---------- ---------- ----------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.46) (.85) --
Realized gain on investments--net (.16) -- --
---------- ---------- ----------
Total dividends and distributions to Common
Shareholders (.62) (.85) --
---------- ---------- ----------
Capital charge resulting from issuance of Common Shares -- -- (.04)
---------- ---------- ----------
Effect of Preferred Share activity++++:
Dividends and distributions to Preferred Shareholders:
Investment income--net (.08) (.19) --
Realized gain on investments--net (.03) -- --
Capital charge resulting from issuance of Preferred
Shares -- (.14) --
---------- ---------- ----------
Total effect of Preferred Share activity (.11) (.33) --
---------- ---------- ----------
Net asset value, end of period $ 14.51 $ 16.56 $ 14.14
========== ========== ==========
Market price per share, end of period $ 14.00 $ 16.875 $ 15.00
========== ========== ==========
Total Investment Based on market price per share (13.71%)+++ 18.78% 0.00%+++
Return:** ========== ========== ==========
Based on net asset value per share (8.87%)+++ 23.65% (0.28%)+++
========== ========== ==========
<PAGE>
Ratios to Average Expenses, net of reimbursement .73%* .66% --%*
Net Assets:*** ========== ========== ==========
Expenses .73%* .72% --%*
========== ========== ==========
Investment income--net 4.86%* 5.09% --%*
========== ========== ==========
Supplemental Net assets, net of Preferred Shares, end of period
Data: (in thousands) $ 121,178 $ 137,908 $ 116,199
========== ========== ==========
Preferred Shares outstanding, end of period (in thousands) $ 60,000 $ 60,000 $ --
========== ========== ==========
Portfolio turnover 20.86% 18.51% 0.00%
========== ========== ==========
Dividends Per Investment income--net $ 587 $ 1,324 $ --
Share on Preferred
Shares Outstanding:
<FN>
* Annualized.
** Total investment returns based on market value, which can be
significantly greater or lesser than the net asset value,
result in substantially different returns. Total investment
returns exclude the effects of sales loads.
*** Do not reflect the effect of dividends to Preferred Shareholders.
++ Commencement of Operations.
++++ The Fund's Preferred Shares were issued on April 10, 1992.
+++ Aggregate total investment returns.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield Florida Insured Fund (the "Fund") is registered under
the Investment Company Act of 1940 as a non-diversified, closed-
end management investment company. The Fund determines and makes
available for publication the net asset value of its Common
Shares on a weekly basis. The Fund's Common Shares are listed on
the New York Stock Exchange under the symbol MFT. The following
is a summary of significant accounting policies followed by the
Fund.
<PAGE>
(a) Valuation of investments--Municipal bonds are traded pri-
marily 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, 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. Secur-
ities with remaining securities of sixty days or less are valued
at amortized cost. Securities for which market quotations are
not readily available are valued at their fair value as deter-
mined in good faith by or under the direction of the Board of
Trustees of the Fund.
(b) Financial futures contracts--The Fund may purchase or sell
interest rate futures contracts and options on such futures con-
tracts for the purpose of hedging the market risk on existing
securities or the intended purchase of securities. Futures con-
tracts 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.
(c) Income taxes--It is the Fund's policy to comply with the re-
quirements 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 trans-
actions 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 transac-
tions are determined on the identified cost basis.
(e) Deferred organization expenses and offering expenses--Defer-
red organization expenses are amortized on a straight-line basis
over a five-year period. Direct expenses relating to the public
offering of the Common and Preferred Shares were charged to cap-
ital at the time of issuance.
<PAGE>
(f) Non-income producing investments--Written and purchased
options are non-income producing investments.
(g) 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"). Effective January 1, 1994,
the investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc., an indirect wholly-owned subsidiary of
ML & Co. The limited partners are ML & Co. and Merrill Lynch
Investment Management, Inc. ("MLIM"), which is also an indirect
wholly-owned subsidiary of ML & Co.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and cer-
tain 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 trustees of the Fund are officers and/or
directors of FAM, MLIM, Merrill Lynch, Pierce, Fenner & Smith
Inc. ("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term secur-
ities, for the six months ended April 30, 1994 were $38,157,391
and $46,409,103, respectively.
Net realized and unrealized gains as of April 30, 1994 were
as follows:
Realized Unrealized
Gains Gains
Long-term investments $1,979,232 $1,316,329
---------- ----------
Total $1,979,232 $1,316,329
========== ==========
<PAGE>
As of April 30, 1994, net unrealized appreciation for Federal
income tax purposes aggregated $1,316,329, of which $4,240,545
related to appreciated securities and $2,924,216 related to
depreciated securities. The aggregate cost of investments at
April 30, 1994 for Federal income tax purposes was $176,947,792.
4. Capital Share Transactions:
The Fund is authorized to issue an unlimited number of capital
shares, including Preferred Shares, par value $.10 per share, all
of which were initially classified as Common Shares. The Board of
Trustees is authorized, however, to reclassify any unissued shares
of capital shares without approval of the holders of Common Shares.
Common Shares
For the six months ended April 30, 1994, shares issued and out-
standing increased by 21,369 to 8,350,463 as a result of dividend
reinvestment. At April 30, 1994, total paid-in capital amounted to
$117,119,304.
Preferred Shares
Auction Market Preferred Shares ("AMPS") are Preferred Shares 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, 1994 was 3.15%.
In connection with the offering of AMPS, the Board of Trustees
reclassified 1,200 shares of unissued capital shares as AMPS. For
the six months ended April 30, 1994, there were 1,200 AMPS shares
authorized, issued and outstanding with a liquidation preference
of $50,000 per share, plus accumulated and unpaid dividends of
$149,704.
The Fund pays commissions to certain broker-dealers at the end of
each auction at the annual rate of one-quarter of 1% calculated
on the proceeds of each auction. For the six months ended April
30, 1994, MLPF&S, an affiliate of MLIM, earned $146,356 as com-
missions.
5. Subsequent Event:
On May 6, 1994, the Fund's Board of Trustees declared an ordinary
income dividend to Common Shareholders in the amount of $.073589
per shares, payable on May 27, 1994 to shareholders of record as
of May 17, 1994.
<PAGE>
PER SHARE INFORMATION
<TABLE>
Per Share Selected Quarterly Financial Data*
<CAPTION>
Net Unrealized Dividends/Distributions
Investment Realized Gains Net Investment Income Capital Gains
For the Period Income Gains (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
October 30, 1992++ to January 31, 1993 $.26 $.04 $ .71 $.14 $.04 -- --
February 1, 1993 to April 30, 1993 .30 .05 .63 .24 .06 -- --
May 1, 1993 to July 31, 1993 .28 .10 .14 .23 .05 -- --
August 1, 1993 to October 31, 1993 .28 -- .80 .24 .04 -- --
November 1, 1993 to January 31, 1994 .28 .16 .02 .24 .03 -- --
February 1, 1994 to April 30, 1994 .27 .08 (2.13) .22 .05 $.16 $.03
<CAPTION>
Net Asset Value Market Price**
For the Period High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
October 30, 1992++ to January 31, 1993 $14.83 $14.14 $15.50 $14.375 494
February 1, 1993 to April 30, 1993 15.99 14.82 16.125 15.00 604
May 1, 1993 to July 31, 1993 16.00 15.44 16.375 14.875 776
August 1, 1993 to October 31, 1993 16.90 15.76 16.875 15.625 840
November 1, 1993 to January 31, 1994 16.57 16.03 16.75 15.75 662
February 1, 1994 to April 30, 1994 16.51 13.88 16.50 13.75 778
<FN>
++ Commencement of Operations.
* Calculations are based upon Common Shares outstanding at the end of each period.
** As reported in the consolidated transaction reporting system.
*** In thousands.
</TABLE>
