MUNIYIELD
FLORIDA
INSURED FUND
FUND LOGO
Annual Report
October 31, 1995
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 performance. The Fund has leveraged its
Common Shares by issuing Preferred Shares to provide the Common
Shareholders with a potentially higher rate of return. Leverage
creates risks for Common Shareholders including the likelihood of
greater volatility of net asset value and market price of shares of
the Common Shares, and the risk that fluctuations in the short-term
dividend rates of the Preferred Shares may affect the yield to
Common Shareholders.
<PAGE>
MuniYield Florida
Insured Fund
Box 9011
Princeton, NJ
08543-9011
MuniYield Florida Insured Fund
TO OUR SHAREHOLDERS
For the year ended October 31, 1995, the Common Shares of MuniYield
Florida Insured Fund earned $0.841 per share income dividends, which
included earned and unpaid dividends of $0.072. This represents a
net annualized yield of 5.55%, based on a month-end net asset value
of $15.16 per share. Over the same period, the total investment
return on the Fund's Common Shares was +17.91%, based on a change in
per share net asset value from $13.70 to $15.16 and assuming
reinvestment of $0.842 per share income dividends.
<PAGE>
For the six-month period ended October 31, 1995, the total
investment return on the Fund's Common Shares was +8.53%, based on a
change in per share net asset value from $14.40 to $15.16, and
assuming reinvestment of $0.411 per share income dividends.
For the six-month period ended October 31, 1995, the Fund's Auction
Market Preferred Shares had an average yield of 3.81%.
The Environment
After losing momentum through the second calendar quarter of 1995,
it now appears that the US economic expansion has resumed. Gross
domestic product (GDP) growth for the three months ended September
30 was reported to be 4.2%, higher than generally expected.
September durable goods orders increased a surprisingly strong 3%,
and existing home sales rose to a near-record level. At the same
time, there is evidence that inflationary pressures remain subdued.
Reflecting the trend of renewed economic growth--and continued good
news on the inflation front--the Federal Reserve Board signaled no
near-term shift in monetary policy following its September meeting.
Thus, official interest rates may not be reduced further in the
immediate future.
Another significant development has been the strengthening of the US
dollar relative to the yen and the Deutschemark. Improving interest
rate differentials favoring the US currency, combined with
coordinated central bank intervention and more positive investor
sentiment, have helped to bolster the dollar in foreign exchange
markets. Other factors that appear to be improving the US dollar's
outlook in the near term are a pick-up in capital flows to the
United States and the prospect of increased capital outflows from
Japan. However, it remains to be seen if the US dollar's
strengthening trend can continue without significant improvements in
the US budget and trade deficits.
In the weeks ahead, investor interest will continue to focus on US
economic activity. Clear signs of a moderate, noninflationary
expansion could further benefit the US stock and bond markets. In
addition, should the current Federal budget deficit reduction
efforts now underway in Washington prove successful, the
implications would likely be positive for the US financial markets.
<PAGE>
The Municipal Market
Tax-exempt bond yields continued to decline during the six-month
period ended October 31, 1995. As measured by the Bond Buyer Revenue
Bond Index, the yield on uninsured, long-term municipal revenue
bonds fell 30 basis points (0.30%) to end the October period at
approximately 6.00%. While tax-exempt bond yields have declined
dramatically from their highs one year ago, municipal bond yields
have exhibited considerable yield volatility on a weekly basis. In
recent months, tax-exempt bond yields have fluctuated by as much as
20 basis points on a week-to-week basis. US Treasury bond yields
have displayed similar volatility, but the extent of their decline
has been greater. By the end of October, long-term US Treasury bond
yields had declined almost 100 basis points to 6.33%. Proposed
Federal tax restructuring continued to weigh heavily on the
tax-exempt bond market. Thus far in 1995, US Treasury bond yields
have declined approximately 150 basis points. Municipal bond yields
have fallen approximately 95 basis points as the uncertainty
surrounding any changes to the existing Federal income tax structure
has prevented the municipal bond market from rallying as strongly as
its taxable counterpart.
A general view of a moderately expanding domestic economy, supported
by a very favorable inflationary environment, allowed interest rates
to significantly decline from their recent highs in November 1994.
However, this decline was not a smooth downward curve. Conflicting
economic indicators were released during recent months that have
prevented a clear consensus regarding the near-term direction of
interest rates from being reached. The resultant uncertainty has
promoted more of a saw-toothed pattern as interest rate declines
were repeatedly interrupted by indications of stronger-than-expected
economic growth. As these concerns were overcome by subsequent
weaker economic releases, interest rate declines have resumed. These
periods of volatility are likely to continue for the remainder of
1995, or until proposed Federal budget deficit reduction packages
are resolved and any resultant responses by the Federal Reserve
Board have occurred.
However, the municipal bond market's technical position remained
supportive throughout recent quarters. Approximately $82 billion in
long-term municipal securities was issued during the six months
ended October 31, 1995. While this issuance is virtually identical
to underwritings during the October 31,1994 quarter, tax-exempt bond
issuance over the last 12 months remained approximately 25% below
comparable 1994 levels. The municipal bond market should maintain
this positive technical position well into 1996. Annual issuance for
1995 is now projected to be approximately $140 billion,
significantly less than last year's already low level of $162
billion. Projected maturities and early redemptions for the
remainder of 1995 and throughout 1996 will lead to a continued
decline in the total outstanding municipal bond supply throughout
1996 and, perhaps, into 1998 should new bond issuance remain at
historically low levels.
<PAGE>
Despite the municipal bond market's relative underperformance
compared to the US Treasury market thus far in 1995, the extent of
the tax-exempt bond market's rally was nonetheless quite impressive.
Municipal bond yields have fallen 135 basis points from their highs
reached in November 1994, and municipal bond prices rose
accordingly. Most tax- exempt products recouped almost all of the
losses incurred in 1994 and are well on their way to posting
double-digit total returns for all of 1995. This relative
underperformance so far in 1995 provided long-term investors with
the rare opportunity to purchase tax- exempt securities at yield
levels near those of taxable securities.
Additionally, many of the factors that led to the relative
underperformance of the tax-exempt bond market thus far in 1995,
namely investor concern regarding Federal budget deficit reductions
and proposed changes in the Federal income tax structure, are
nearing resolution. The Federal budget reconciliation process has
already begun and may be essentially completed by year-end. Recent
public opinion polls suggest that the majority of American taxpayers
prefer the existing Federal income tax system compared to proposed
changes, such as the flat tax or national sales tax. In an upcoming
election year, neither party is likely to advocate a clearly
unpopular position, particularly one that can be expected to
negatively impact the Federal budget deficit reduction program
through reduced tax revenues. As these factors are resolved, we
believe that much of the resistance that the municipal bond market
met this year should dissipate. This should allow municipal bond
yields to significantly decline from current levels in order to
return to more normal historic yield relationships.
Portfolio Strategy
During the year ended October 31, 1995, the municipal bond market
was extremely volatile. In the last six months of 1994, interest
rates rose dramatically as investors feared a growing economy would
ignite inflation. These concerns dissipated in early spring of 1995
with downward revisions to 1994 fourth quarter GDP and moderating
concerns over inflation. In this environment, we took a cautious
approach during 1994 by attempting to reduce the Fund's exposure to
interest rate-sensitive issues. As the market improved in 1995 and
we became more constructive for the longer-term outlook for bonds,
we began to increase our interest rate exposure.
Looking ahead, we continue to have a long-term constructive outlook
for municipal bonds while recognizing that the current impasse over
the Federal budget discussions may unsettle investors in the near
term. We would view any significant backup in interest rates as a
buying opportunity.
<PAGE>
During the last six months of the Fund's fiscal year, the Fund's
Auction Market Preferred Shares' interest rates have ranged between
3.25%--4.00%, adding a positive benefit to Common Shareholders. As
long as this positive yield spread exists, this benefit will
continue to accrue to the Fund's Common Shareholders. However,
should the yield spread between short-term and long-term interest
rates narrow, the benefits of the leverage will decline and the
yield paid to the Common Shareholder will diminish. (For a complete
explanation of the benefits and risks of leveraging, see page 5 of
this report to shareholders.) In addition, we may experience a
temporary increase in short-term interest rates as we approach
year-end, since investors in the short-term Florida market often
shift their tax-exempt investments into taxable Treasury bills at
this time. If this occurs, it is expected to be temporary, and the
normal market conditions should resume after January 1.
In Conclusion
We appreciate your ongoing interest in MuniYield Florida Insured
Fund, and we look forward to assisting you with your financial needs
in the months and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President
(Robert H. Moore III)
Robert H. Moore III
Portfolio Manager
November 30, 1995
<PAGE>
We are pleased to announce that Robert H. Moore III is responsible
for the day-to-day management of MuniYield Florida Insured Fund. Mr.
Moore has been employed by Merrill Lynch Asset Management, L.P. (an
affiliate of the Fund's investment adviser) since 1994 as Vice
President and Portfolio Manager. Prior thereto, he was employed by
Society Asset Management as Vice President and Portfolio Man-ager
from 1993 to 1994. From 1989 to 1993, he was Vice President and
Portfolio Manager at Ameritrust Trust Department.
<TABLE>
PROXY RESULTS
<CAPTION>
During the six-month period ended October 31, 1995, MuniYield
Florida Insured Fund Common Shareholders voted on the following
proposals. The proposals were approved at a special shareholders'
meeting on May 12, 1995. The description of each proposal and number
of shares voted are as follows:
Shares Shares Voted
Voted For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Edward H. Meyer 7,865,722 179,870
Jack B. Sunderland 7,871,459 174,133
J. Thomas Touchton 7,873,359 172,233
Arthur Zeikel 7,871,359 174,233
<CAPTION>
Shares Shares Voted Shares Voted
Voted For Against Abstain
<S> <C> <C> <C>
2. To select Deloitte & Touche LLP as the Fund's
independent auditors for the current fiscal year. 7,867,153 36,011 142,428
<PAGE>
<CAPTION>
During the six-month period ended October 31, 1995, MuniYield
Florida Insured Fund Preferred Shareholders voted on the following
proposals. The proposals were approved at a special shareholders'
meeting on May 12, 1995. The description of each proposal and number
of shares voted are as follows:
Shares Shares Voted
Voted For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Donald Cecil 2,131 0
M. Colyer Crum 2,131 0
Edward H. Meyer 2,131 0
Jack B. Sunderland 2,131 0
J. Thomas Touchton 2,131 0
Arthur Zeikel 2,131 0
<CAPTION>
Shares Shares Voted Shares Voted
Voted For Against Abstain
<S> <C> <C> <C>
2. To select Deloitte & Touche LLP as the Fund's
independent auditors for the current fiscal year. 2,131 0 0
</TABLE>
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. However,
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. Of course, increases in
short-term interest rates would reduce (and even eliminate) the
dividends on the Common Shares.
<PAGE>
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 or eliminated completely. 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.
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 below and at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DATES Daily Adjustable Tax-Exempt Securities
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
S/F Single-Family
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--102.3%
<S> <S> <C> <S> <C>
AAA Aaa $ 2,500 Arcadia, Florida, Dedicated Pool, Local Government Revenue Refunding Bonds,
5.25% due 12/01/2015 (b) $ 2,389
<PAGE>
AAA Aaa 3,000 Boynton Beach, Florida, Utility System Revenue Refunding Bonds, 6.25% due
11/01/2020 (b) 3,139
AAA Aaa 3,000 Brevard County, Florida, IDR (NUI Corporation Project), AMT, 6.40% due
10/01/2024 (a) 3,191
AAA Aaa 2,750 Charlotte County, Florida, Utility Revenue Refunding Bonds, 5.25% due
10/01/2021 (b) 2,601
Citrus County, Florida, PCR, Refunding (Florida Power Corp.-Crystal River) (d):
AAA Aaa 2,000 Series A, 6.625% due 1/01/2027 2,151
AAA Aaa 6,500 Series B, 6.35% due 2/01/2022 6,833
AAA Aaa 3,165 Coral Springs, Florida, Improvement District, Water and Sewer Revenue Bonds, UT,
Series C, 7.60% due 12/01/1999 (d)(e) 3,613
Dade County, Florida, Aviation Revenue Bonds, AMT, Series B (d):
AAA Aaa 1,750 6.55% due 10/01/2013 1,865
AAA Aaa 8,750 6.60% due 10/01/2022 9,281
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)(h) 4,522
AA- VMIG1++ 5,000 Dade County, Florida, IDA, Exempt Facilities Revenue Refunding Bonds (Florida
Power & Light Co. Project), VRDN, 3.90% due 6/01/2021 (f) 5,000
AAA Aaa 7,500 Dade County, Florida, Seaport Revenue Bonds, UT, 6.50% due 10/01/2026 (a) 8,015
AAA Aaa 5,000 Escambia County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds (Multi-
County Program), AMT, 7% due 4/01/2028 (g) 5,336
NR* Aaa 1,940 Florida HFA, Home Ownership Revenue Bonds, AMT, Series G-1, 7.90% due
3/01/2022 (h) 2,075
Florida HFA, Revenue Bonds (Brittany Rosemont Apartments), AMT (a):
AAA Aaa 1,150 Series C-1, 6.75% due 8/01/2014 1,215
AAA Aaa 1,225 Series G-1, 6.15% due 7/01/2025 1,226
AAA Aaa 1,350 Series G-1, 6.25% due 7/01/2035 1,351
AAA Aaa 2,000 Florida Keys Aqueduct Authority, Water Revenue Refunding Bonds, 5.25% due
9/01/2021 (a) 1,892
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
Florida (continued)
<S> <S> <C> <S> <C>
Florida State Board of Education, Public Education Revenue Bonds
(Capital Outlay):
AA Aa $ 3,000 Refunding, Series A, 7.25% due 6/01/2023 $ 3,355
AA Aa 2,000 Series A, 6.75% due 6/01/2001 (e) 2,241
AAA Aaa 7,600 Series C, 5.50% due 6/01/2023 (d) 7,452
AAA Aaa 1,790 Florida State Division, Board of Finance, Department of General Services
Revenue Bonds (Department of Natural Resource Preservation), Series 2000-A,
6.75% due 7/01/2013 (a) 1,958
AAA Aaa 4,500 Florida State Municipal Power Agency, Revenue Refunding Bonds (Saint Lucie
Project), 5.25% due 10/01/2021 (b) 4,251
AAA Aaa 5,100 Fort Pierce, Florida, Utilities Authority, Revenue Refunding Bonds, 5.25%
due 10/01/2016 (a) 4,869
AA Aa 4,800 Gainesville, Florida, Utilities System Revenue Bonds, Series B, 6.50% due
10/01/2013 5,358
AAA Aaa 5,000 Hillsborough County, Florida, Criminal Justice Facilities, Revenue Refunding
Bonds (Capital Improvement Program), 5.125% due 8/01/2014 (b) 4,737
AAA Aaa 1,000 Hillsborough County, Florida, IDA, Revenue Bonds (Allegany Health System-J.
Knox Village), 6.375% due 12/01/2012 (d) 1,059
AAA Aaa 2,860 Indian River County, Florida, Water and Sewer Revenue Refunding Bonds, Series A,
5.25% due 9/01/2020 (b) 2,708
AAA Aaa 3,250 Jacksonville, Florida, Excise Taxes Revenue Refunding Bonds, 6.50% due
10/01/2013 (a) 3,503
AAA Aaa 10,750 Kissimmee, Florida, Utility Authority Electric System, Revenue Refunding and
Improvement Bonds, 5.50% due 10/01/2015 (b) 10,596
AAA Aaa 1,920 Lee County, Florida, Capital Improvement and Transportation Facilities, Revenue
Refunding Bonds, Series A, 5.55% due 10/01/2018 (d) 1,895
Lee County, Florida, Transportation Facilities Revenue Bonds (d):
AAA Aaa 3,500 5.75% due 10/01/2022 3,509
AAA Aaa 10,650 5.75% due 10/01/2027 10,677
AAA Aaa 1,000 Marion County, Florida, Hospital District, Revenue Refunding Bonds (Monroe
Regional Medical Center), 6.25% due 10/01/2012 (b) 1,052
A1+ VMIG1++ 1,100 Martin County, Florida, PCR, Refunding (Florida Power & Light Company Project),
VRDN, 4% due 9/01/2024 (f) 1,100
<PAGE>
AAA Aaa 2,515 North Miami Beach, Florida, UT, 6.30% due 2/01/2024 (b) 2,649
AAA Aaa 2,500 Okeechobee, Florida, Utility Authority, Utility System Acquisition and
Improvement Revenue Refunding Bonds, 5.60% due 10/01/2025 (d) 2,478
AAA Aaa 1,650 Orange County, Florida, Sales Tax Revenue Bonds, Series B, 5.375% due 1/01/2024 (b) 1,586
Orange County, Florida, Tourist Development Tax Revenue Bonds (a):
AAA Aaa 1,000 Refunding, Series A, 6.50% due 10/01/2010 1,093
AAA Aaa 7,815 Series B, 6.50% due 10/01/2019 8,399
AA- Aa 2,000 Orlando, Florida, Utilities Commission, Water and Electric Revenue Refunding
Bonds, Sub-Series D, 6.75% due 10/01/2017 2,313
AAA Aaa 3,750 Osceola County, Florida, School Board COP, Series A, 5.25% due 6/01/2015 (a) 3,578
AAA Aaa 1,500 Palm Beach County, Florida, Criminal Justice Facilities Revenue Bonds, 7.20%
due 6/01/2015 (b) 1,811
AAA Aaa 2,000 Palm Beach County, Florida, Solid Waste Authority, Revenue Refunding and
Improvement Bonds, 6.25% due 12/01/2008 (d) 2,177
NR* VMIG1++ 200 Palm Beach County, Florida, Water and Sewer Revenue Bonds, VRDN,
4% due 10/01/2011 (f) 200
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
Florida (concluded)
<S> <S> <C> <S> <C>
A1 VMIG1++ $ 2,550 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding Bonds
(Pooled Hospital Loan Program), DATES, 4% due 12/01/2015 (f) $ 2,550
AAA Aaa 3,550 Reedy Creek, Florida, Improvement District, Florida Utilities Revenue Bonds,
Series 1991-1, 6.50% due 10/01/2001 (d)(e) 3,966
A1+ VMIG1++ 2,500 Saint Lucie County, Florida, PCR, Refunding (Florida Power & Lighting Co.
Project), VRDN, 4% due 1/01/2026 (f) 2,500
AAA Aaa 3,000 Saint Petersburg, Florida, Excise Tax Revenue Refunding Bonds, 5% due
10/01/2016 (b) 2,787
AAA Aaa 3,000 Saint Petersburg, Florida, Health Facilities Authority, Hospital Revenue
Bonds (Allegany Health System), Series A, 7% due 12/01/2015 (d) 3,329
<PAGE>
AAA Aaa 2,905 Sarasota County, Florida, Utility System Revenue Bonds, 6.50% due
10/01/2022 (b) 3,116
AAA Aaa 4,500 South Broward Hospital District, Florida, Hospital Revenue Bonds, 6.611%
due 5/13/2021 (a) 4,750
AAA Aaa 4,500 Vero Beach, Florida, Electric Revenue Refunding Bonds, Series A, 5.375% due
12/01/2021 (d) 4,332
AAA Aaa 1,300 Volusia County, Florida, School Board COP, Refunding (Florida Lease Program),
5.375% due 8/01/2011 (c) 1,283
Total Investments (Cost--$181,354)--102.3% 190,912
Liabilities in Excess of Other Assets--(2.3%) (4,355)
--------
Net Assets--100.0% $186,557
========
<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 rate shown is the rate in
effect at October 31, 1995.
(g)GNMA/FNMA Collateralized.
(h)Escrowed to Maturity.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets, Liabilities and Capital as of October 31, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$181,354,040) (Note 1a) $190,911,752
Cash 89,320
Receivables:
Securities sold $ 2,834,425
Interest receivable 2,004,565 4,838,990
------------
Deferred organization expenses (Note 1e) 15,748
Prepaid expenses and other assets 6,753
------------
Total assets 195,862,563
------------
Liabilities: Payables:
Securities purchased 9,073,995
Dividends to shareholders (Note 1f) 90,071
Investment adviser (Note 2) 81,391 9,245,457
------------
Accrued expenses and other liabilities 59,853
------------
Total liabilities 9,305,310
------------
Net Assets: Net assets $186,557,253
============
Capital: Capital Shares (unlimited number of shares of beneficial
interest authorized) (Note 4):
Preferred Shares, par value $.10 per share (2,400 shares of AMPS*
issued and outstanding at $25,000 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 116,287,758
Undistributed investment income--net 894,087
Accumulated realized capital losses on investments--net (1,017,350)
Unrealized appreciation on investments--net 9,557,712
------------
Total--Equivalent to $15.16 net asset value per Common Share
(market price--$13.50) 126,557,253
------------
Total capital $186,557,253
============
<FN>
*Auction Market Preferred Shares.
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Year Ended October 31, 1995
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 10,680,200
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 902,275
Commission fees (Note 4) 176,864
Professional fees 74,269
Printing and shareholder reports 41,326
Transfer agent fees 36,087
Accounting services (Note 2) 33,872
Trustees' fees and expenses 22,682
Listing fees 16,522
Custodian fees 13,231
Pricing fees 8,249
Amortization of organization expenses (Note 1e) 7,863
Other 12,784
------------
Total expenses 1,346,024
------------
Investment income--net 9,334,176
------------
Realized & Unreal- Realized gain on investments--net 315,997
ized Gain on Change in unrealized appreciation/depreciation on investments--net 11,706,927
Investments--Net ------------
(Notes 1b, 1d Net Increase in Net Assets Resulting from Operations $ 21,357,100
& 3): ============
</TABLE>
<PAGE>
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Year Ended Oct. 31,
Increase (Decrease) in Net Assets: 1995 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 9,334,176 $ 9,351,648
Realized gain (loss) on investments--net 315,997 (1,332,942)
Change in unrealized appreciation/depreciation on
investments--net 11,706,927 (21,049,768)
------------ ------------
Net increase (decrease) in net assets resulting from operations 21,357,100 (13,031,062)
------------ ------------
Dividends & Investment income--net:
Distributions to Common Shares (7,021,495) (7,555,066)
Shareholders Preferred Shares (2,218,860) (1,651,536)
(Note 1f): 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 (9,240,355) (10,758,388)
------------ ------------
Capital Share Value of shares issued to Common Shareholders in reinvestment
Transactions of dividends and distributions -- 332,295
(Notes 1e & 4): Offering and underwriting costs resulting from the issuance
of Preferred Shares -- (10,500)
------------ ------------
Net increase in net assets derived from capital share
transactions -- 321,795
------------ ------------
Net Assets: Total increase (decrease) in net assets 12,116,745 (23,467,655)
Beginning of year 174,440,508 197,908,163
------------ ------------
End of year* $186,557,253 $174,440,508
============ ============
<FN>
*Undistributed investment income--net (Note 1g) $ 894,087 $ 799,865
============ ============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<PAGE>
<TABLE>
Financial Highlights
<CAPTION>
For the
Period
The following per share data and ratios have been derived Oct. 30
from information provided in the financial statements. For the Year Ended 1992++ to
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 $ 13.70 $ 16.56 $ 14.14 $ 14.18
Operating -------- -------- -------- --------
Performance: Investment income--net 1.12 1.13 1.12 --
Realized and unrealized gain (loss) on
investments--net 1.45 (2.70) 2.48 --
-------- -------- -------- --------
Total from investment operations 2.57 (1.57) 3.60 --
-------- -------- -------- --------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.84) (.91) (.85) --
Realized gain on investments--net -- (.15) -- --
-------- -------- -------- --------
Total dividends and distributions to Common
Shareholders (.84) (1.06) (.85) --
-------- -------- -------- --------
Capital charge resulting from issuance of
Common Shares -- -- -- (.04)
-------- -------- -------- --------
Effect of Preferred Share activity:++++
Dividends and distributions to Preferred
Shareholders:
Investment income--net (.27) (.20) (.19) --
Realized gain on investments--net -- (.03) -- --
Capital charge resulting from issuance of
Preferred Shares -- -- (.14) --
-------- -------- -------- --------
Total effect of Preferred Share activity (.27) (.23) (.33) --
-------- -------- -------- --------
Net asset value, end of period $ 15.16 $ 13.70 $ 16.56 $ 14.14
======== ======== ======== ========
Market price per share, end of period $ 13.50 $ 11.375 $ 16.875 $ 15.00
======== ======== ======== ========
Total Investment Based on market price per share 26.46% (27.46%) 18.78% .00%+++
Return:** ======== ======== ======== ========
Based on net asset value per share 17.91% (10.98%) 23.65% (.28%)+++
======== ======== ======== ========
Ratios to Expenses, net of reimbursement .75% .75% .66% --%*
Average ======== ======== ======== ========
Net Assets:*** Expenses .75% .75% .72% --%*
======== ======== ======== ========
Investment income--net 5.18% 4.99% 5.09% --%*
======== ======== ======== ========
<PAGE>
Supplemental Net assets, net of Preferred Shares, end
Data: of period (in thousands) $126,557 $114,441 $137,908 $116,199
======== ======== ======== ========
Preferred Shares outstanding, end of period
(in thousands) $ 60,000 $ 60,000 $ 60,000 $ --
======== ======== ======== ========
Portfolio turnover 107.90% 51.81% 18.51% .00%
======== ======== ======== ========
Dividends Per Investment income--net $ 925 $ 688 $ 662 $ --
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, may 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 November 19, 1992.
++++++Dividends per share have been adjusted to reflect a two-for-
one split.
+++Aggregate total investment return.
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 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 Trustees 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 general supervision
of the Board of Trustees of the Fund.
(b) Derivative financial instrument--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.
* 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).
<PAGE>
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 and offering expenses--Deferred
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 capital at the time
of issuance.
(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.
(g) Reclassification--Generally accepted accounting principles
require that certain differences between accumulated net realized
capital losses for financial reporting and tax purposes, if
permanent, be reclassified to undistributed net investment income.
Accordingly, current year's permanent book/tax differences of $401
have been reclassified from accumulated net realized capital losses
to undistributed net investment income. These reclassifications have
no effect on net assets or net asset value per share.
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.
<PAGE>
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 trustees 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 year ended October 31, 1995 were $189,648,889 and
$184,252,048, respectively.
Net realized and unrealized gains (losses) as of October 31, 1995
were as follows:
Realized Unrealized
Gains (Losses) Gains
Long-term investments $ 2,629,916 $ 9,557,712
Financial futures contracts (2,313,919) --
------------ ------------
Total $ 315,997 $ 9,557,712
============ ============
As of October 31, 1995, net unrealized appreciation for Federal
income tax purposes aggregated $9,557,712, of which $9,570,306
related to appreciated securities and $12,594 related to depreciated
securities. The aggregate cost of investments at October 31, 1995
for Federal income tax purposes was $181,354,040.
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 without approval of the holders of Common Shares.
Common Shares
For the year ended October 31, 1995, shares issued and outstanding
remained constant at 8,350,463. At October 31, 1995, total paid-in
capital amounted to $117,122,804.
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 October 31, 1995 was 3.84%.
<PAGE>
A two-for-one stock split occurred on December 1, 1994. As a result,
as of October 31, 1995, there were 2,400 AMPS shares authorized,
issued and outstanding with a liquidation preference of $25,000 per
share, plus accumulated and unpaid dividends of $6,312.
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 year ended
October 31, 1995, MLPF&S, an affiliate of FAM, earned $89,565 as
commissions.
5. Subsequent Event:
On November 13, 1995, the Fund's Board of Trustees declared an
ordinary income dividend to Common shareholders in the amount of
$0.072398 per share, payable on November 29, 1995 to shareholders of
record as of November 24, 1995.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders of
MuniYield Florida Insured Fund:
We have audited the accompanying statement of assets, liabilities
and capital, including the schedule of investments, of MuniYield
Florida Insured Fund as of October 31, 1995, the related statements
of operations for the year then ended, and changes in net assets for
each of the years in the two-year period then ended, and the
financial highlights for each of the years in the three-year period
then ended and the period October 30, 1992 (commencement of
operations) to October 31, 1992. These financial statements and the
financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these
financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at October
31, 1995 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
<PAGE>
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
MuniYield Florida Insured Fund as of October 31, 1995, the results
of its operations, the changes in its net assets, and the financial
highlights for the respective stated periods in conformity with
generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
November 30, 1995
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (unaudited)
All of the net investment income distributions paid monthly by
MuniYield Florida Insured Fund during its taxable year ended October
31, 1995 qualify as tax-exempt interest dividends for Federal income
tax purposes. Additionally, there were no capital gains distributed
by the Fund during the year.
Please retain this information for your records.
PER SHARE INFORMATION (unaudited)
<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>
November 1, 1993 to January 31, 1994 $.29 $ .16 $ .02 $.24 $.03 $.15 $.03
February 1, 1994 to April 30, 1994 .27 .08 (2.13) .22 .05 -- --
May 1, 1994 to July 31, 1994 .28 (.06) .29 .23 .06 -- --
August 1, 1994 to October 31, 1994 .29 (.35) (.71) .22 .06 -- --
November 1, 1994 to January 31, 1995 .28 (.21) .76 .22 .04 -- --
February 1, 1995 to April 30, 1995 .27 .17 (.01) .21 .09 -- --
May 1, 1995 to July 31, 1995 .29 .21 -- .20 .07 -- --
August 1, 1995 to October 31, 1995 .28 (.13) .66 .21 .07 -- --
<PAGE>
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
November 1, 1993 to January 31, 1994 $16.57 $15.99 $16.75 $15.75 662
February 1, 1994 to April 30, 1994 16.51 13.88 16.50 13.75 778
May 1, 1994 to July 31, 1994 15.23 14.14 14.50 13.25 748
August 1, 1994 to October 31, 1994 14.78 13.70 13.875 11.125 895
November 1, 1994 to January 31, 1995 14.26 12.55 13.375 10.375 1,736
February 1, 1995 to April 30, 1995 14.82 14.27 13.75 12.875 587
May 1, 1995 to July 31, 1995 15.50 14.37 14.00 12.875 678
August 1, 1995 to October 31, 1995 15.25 14.32 13.875 12.75 813
<FN>
*Calculations are based upon Common Shares outstanding at the end of
each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
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
90 Washington Street
New York, New York 10286
Transfer Agents
Common Shares:
The Bank of New York
101 Barclay Street
New York, New York 10286
<PAGE>
Preferred Shares:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
NYSE Symbol
MFT
