MUNIYIELD
FLORIDA
INSURED FUND
FUND LOGO
Semi-Annual Report
April 30, 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 six-month period ended April 30, 1995, the Common Shares of
MuniYield Florida Insured Fund earned $0.426 per share income
dividends, which included earned and unpaid dividends of $0.069.
This represents a net annualized yield of 5.96%, based on a month-
end per share net asset value of $14.40. Over the same period, the
total investment return on the Fund's Common Shares was +8.64%,
based on a change in per share net asset value from $13.70 to
$14.40, and assuming reinvestment of $0.430 per share income
dividends.
For the six-month period ended April 30, 1995, the Fund's Preferred
Shares had an average yield of 3.58%.
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.
<PAGE>
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.
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
inherent to municipal bonds have combined to cause tax-exempt bond
yields to increase marginally in recent weeks. Municipal bond yields
have risen approximately 15 basis points 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
During the six months ended April 30, 1995, with the continued
decline of interest rates, we shifted the Fund's portfolio strategy
from a neutral posture on interest rates to one that is more
constructive. We achieved this by extending the duration of the Fund
in order to seek to enhance any market appreciation. New-issue
volume in the Florida tax-exempt market was just over $3.5 billion
in bonds for the six-month period ended April 30, 1995. This
represents a decline of approximately 35% versus the same period in
1994. With the decline of new issuance in Florida and with no
significant increase on the horizon, we kept the Fund's cash reserve
position at approximately 1% of net assets. Looking forward, our
portfolio strategy will continue to be to seek to enhance the total
return of the Fund as yields continue to decline.
Florida short-term tax-exempt interest rates traded in the 3.50%--
4.50% range throughout the six-month period ended April 30, 1995.
While short-term interest rates rose significantly over the past
year, it is important to note that the municipal yield curve has
remained steeply positive. This has produced a material yield
advantage to the Common Shareholder. 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 4 of this report to
shareholders.)
In Conclusion
We appreciate your ongoing interest in MuniYield Florida Insured
Fund, 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
May 31, 1995
<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. 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.
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.
<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 below and at right.
AMT Alternative Minimum Tax (subject to)
DATES Daily Adjustable Tax-Exempt Securities
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
SAVRS Select Auction Variable Rate Securities
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--98.5%
<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) $ 2,261
AAA Aaa 5,750 Boynton Beach, Florida, Utility System Revenue Refunding Bonds, 6.25%
due 11/01/2020 (b) 5,795
AAA Aaa 3,000 Brevard County, Florida, IDR (NUI Corporation Project), AMT, 6.40% due
10/01/2024 (a) 3,046
AAA Aaa 2,750 Charlotte County, Florida, Utility Revenue Refunding Bonds, 5.25% due
10/01/2021 (b) 2,452
<PAGE>
Citrus County, Florida, PCR, Refunding (Florida Power Corp.-Crystal
River) (d):
AAA Aaa 2,000 Series A, 6.625% due 1/01/2027 2,079
AAA Aaa 6,500 Series B, 6.35% due 2/01/2022 6,617
AAA Aaa 1,800 Clearwater, Florida, Water and Sewer Revenue Refunding Bonds, 6.50%
due 12/01/2012 (d) 1,918
AAA Aaa 3,165 Coral Springs, Florida, Improvement District, Water and Sewer Revenue
Bonds, UT, Series C, 7.60% due 12/01/l999 (d)(e) 3,570
Dade County, Florida, Aviation Revenue Bonds, AMT (d):
AAA Aaa 1,750 Series B, 6.55% due 10/01/2013 1,807
AAA Aaa 8,750 Series B, 6.60% due 10/01/2022 8,996
AAA Aaa 1,235 Series C, 6.125% due 10/01/2020 1,208
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)(i) 4,313
A+ VMIG1++ 1,300 Dade County, Florida, IDA, Exempt Facilities Revenue Refunding Bonds (Florida
Power & Light Co. Project), VRDN, 4.90% due 6/01/2021 (f) 1,300
Dade County, Florida, Seaport Revenue Bonds, UT (a):
AAA Aaa 1,000 6.25% due 10/01/2021 1,011
AAA Aaa 4,500 6.50% due 10/01/2026 4,656
AAA Aaa 5,000 Escambia County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds
(Multi-County Program), AMT, 7% due 4/01/2028 (g)(h) 5,152
NR* Aaa 2,000 Florida HFA, Home Ownership Revenue Bonds, AMT, Series G1, 7.90% due 3/01/2022 (h) 2,131
AAA Aaa 1,150 Florida HFA, Revenue Bonds (Brittany Rosemont Apartments), AMT, Series C-1,
6.75% due 8/01/2014 (a) 1,181
</TABLE>
<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>
AAA Aaa $2,000 Florida Keys Aqueduct Authority, Water Revenue Refunding Bonds, 5.25%
due 9/01/2021 (a) $ 1,781
Florida State Board of Education, Public Education Revenue Bonds
(Capital Outlay):
AA Aa 3,000 Refunding, Series A, 7.25% due 6/01/2023 3,266
AA Aa 2,000 Series A, 6.75% due 6/01/2021 2,107
AAA Aaa 7,600 Series C, UT, 5.50% due 6/01/2023 (d) 7,028
<PAGE>
AAA Aaa 1,790 Florida State Bond Finance Department, General Services Revenue Bonds
(Department of Natural Resource Preservation), Series 2000-A, 6.75%
due 7/01/2013 (a) 1,898
AAA Aaa 3,300 Florida State Municipal Power Agency Revenue Bonds (All Requirements
Power Supply Project), 5.10% due 10/01/2025 (a) 2,850
Florida State Turnpike Authority, Turnpike Revenue Bonds, Series A (b):
AAA Aaa 2,230 6.35% due 7/01/2002 (e) 2,417
AAA Aaa 5,635 Refunding, 5% due 7/01/2019 4,850
AAA Aaa 5,100 Fort Pierce, Florida, Utilities Authority, Revenue Refunding Bonds,
5.25% due 10/01/2016 (a) 4,630
AA Aa 4,800 Gainesville, Florida, Utility System Revenue Bonds, Series B, 6.50%
due 10/01/2013 5,109
AAA Aaa 5,000 Hillsborough County, Florida, Criminal Justice Facilities, Revenue
Refunding Bonds (Capital Improvement Program), 5.125% due 8/01/2014 (b) 4,520
A1+ VMIG1++ 500 Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric
Company-Gannon), VRDN, 5% due 5/15/2018 (f) 500
AAA Aaa 1,000 Hillsborough County, Florida, IDA, Revenue Bonds (Allegheny Health
System-J. Knox Village), 6.375% due 12/01/2012 (d) 1,031
AAA Aaa 2,860 Indian River County, Florida, Water and Sewer Revenue Refunding Bonds,
Series A, 5.25% due 9/01/2020 (b) 2,551
AA Aaa 1,000 Jacksonville, Florida, Electric Authority Revenue Bonds (Bulk Power
Supply-Scherer, Series 4-1-A), 6.75% due 10/01/2000 (e) 1,098
AAA Aaa 3,250 Jacksonville, Florida, Excise Taxes Revenue Refunding Bonds, 6.50%
due 10/01/2013 (a) 3,413
AAA Aaa 1,920 Lee County, Florida, Capital Improvement and Transportation Facilities,
Revenue Refunding Bonds, Series A, 5.55% due 10/01/2018 (d) 1,801
AAA Aaa 3,000 Marion County, Florida, Hospital District, Revenue Refunding Bonds (Monroe
Regional Medical Center), 6.25% due 10/01/2012 (b) 3,066
AAA Aaa 2,515 North Miami Beach, Florida, UT, 6.30% due 2/01/2024 (b) 2,560
AAA Aaa 4,300 North Miami, Florida, Health Facilities Authority, Health Facility Revenue
Bonds (Bon Secours Health System Project), 6% due 8/15/2002 (c)(e) 4,601
Orange County, Florida, Tourist Development, Tax Revenue Bonds:
AAA Aaa 1,000 Refunding, Series A, 6.50% due 10/01/2010 (a) 1,062
AAA Aaa 1,000 Series B, 5.75% due 10/01/2019 (d) 958
AAA Aaa 7,815 Series B, 6.50% due 10/01/2019 (a) 8,098
AAA Aaa 3,550 Orange County, Florida, Water and Wastewater Revenue Refunding Bonds, 6.25%
due 10/01/2017 (a) 3,576
AAA Aaa 1,500 Orlando and Orange County Expressway Authority, Florida, Expressway Revenue
Refunding Bonds (Senior Lien), 5.25% due 7/01/2014 (a) 1,373
</TABLE>
<PAGE>
<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>
AA- Aa $2,000 Orlando, Florida, Utilities Commission Water and Electric Revenue
Refunding Bonds, Sub-series D, 6.75% due 10/01/2017 $ 2,194
AAA Aaa 5,750 Palm Bay, Florida, Utility Revenue Refunding Bonds (Palm Bay Utility Corp.
Project), 5% due 10/01/2022 (d) 4,906
AAA Aaa 1,500 Palm Beach County, Florida, Criminal Justice Facilities Revenue Bonds,
7.20% due 6/01/2015 (b) 1,737
AAA Aaa 2,000 Palm Beach County, Florida, Solid Waste Authority, Revenue Refunding and
Improvement Bonds, 6.25% due 12/01/2008 (d) 2,089
NR* VMIG1++ 300 Palm Beach County, Florida, Water and Sewer Revenue Bonds, VRDN, 5.15% due
10/01/2011 (f) 300
A1 VMIG1++ 2,600 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding Bonds
(Pooled Hospital Loan Program), DATES, 4.90% due 12/01/2015 (f) 2,600
Reedy Creek, Florida, Improvement District, Florida Utilities Revenue Bonds (d):
AAA Aaa 5,000 Refunding, Series 1, 5% due 10/01/2014 4,420
AAA Aaa 2,560 Refunding, Series 1, 5% due 10/01/2019 2,202
AAA Aaa 3,350 Series 1991-1, 6.50% due 10/01/2001 (e) 3,628
A1 VMIG1++ 300 Saint Lucie County, Florida, PCR, Refunding (Florida Power & Lighting Co.
Project), VRDN, 5.25% due 1/01/2026 (f) 300
AAA Aaa 2,900 Saint Petersburg, Florida, Excise Tax Revenue Refunding Bonds, 5%
due 10/01/2016 (b) 2,546
AAA Aaa 3,000 Saint Petersburg, Florida, Health Facilities Authority, Hospital Revenue
Bonds (Allegheny Health System), Series A, 7% due 12/01/2015 (d) 3,226
<PAGE>
AAA Aaa 2,905 Sarasota County, Florida, Utility System Revenue Bonds, 6.50% due 10/01/2022 (b) 3,041
AAA Aaa 4,500 South Broward Hospital District, Florida, Linked SAVRS and RIB, Hospital
Revenue Bonds, 6.611% due 5/01/2021 (a) 4,652
AAA Aaa 4,500 Vero Beach, Florida, Electric Revenue Refunding Bonds, Series A, 5.375% due
12/01/2021 (d) 4,073
Total Investments (Cost--$173,549)--98.5% 177,551
Other Assets Less Liabilities--1.5% 2,679
--------
Net Assets--100.0% $180,230
========
<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 April 30, 1995.
(g)FNMA Collateralized.
(h)GNMA Collateralized.
(i)Escrowed to Maturity.
*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
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$173,548,679) (Note 1a) $177,551,250
Cash 708,224
Receivables:
Securities sold $ 6,039,428
Interest 2,233,439 8,272,867
------------
Deferred organization expenses (Note 1e) 23,611
Prepaid expenses and other assets 72,768
------------
Total assets 186,628,720
------------
<PAGE>
Liabilities: Payables:
Securities purchased 6,026,329
Dividends to shareholders (Note 1f) 152,505
Investment adviser (Note 2) 70,242 6,249,076
------------
Accrued expenses and other liabilities 149,097
------------
Total liabilities 6,398,173
------------
Net Assets: Net assets $180,230,547
============
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 788,913
Accumulated realized capital losses on investments--net (Note 5) (1,683,741)
Unrealized appreciation on investments--net 4,002,571
------------
Total--Equivalent to $14.40 net asset value per Common Share
(market price--$13.00) 120,230,547
------------
Total capital $180,230,547
============
<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, 1995
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 5,299,795
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 433,589
Commission fees (Note 4) 87,456
Professional fees 36,829
Accounting services (Note 2) 26,670
Printing and shareholder reports 23,648
Transfer agent fees 19,057
Trustees' fees and expenses 11,206
Listing fees 8,256
Custodian fees 6,780
Pricing fees 3,902
Amortization of organization expenses (Note 1e) 3,902
Other 10,206
------------
Total expenses 671,501
------------
Investment income--net 4,628,294
------------
Realized & Realized loss on investments--net (350,795)
Unrealized Gain Change in unrealized appreciation/depreciation on investments--net 6,151,786
(Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 10,429,285
(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 $ 4,628,294 $ 9,351,648
Realized loss on investments--net (350,795) (1,332,942)
Change in unrealized appreciation/depreciation on
investments--net 6,151,786 (21,049,768)
------------ ------------
Net increase (decrease) in net assets resulting from
operations 10,429,285 (13,031,062)
<PAGE> ------------ ------------
Dividends & Investment income--net:
Distributions to Common Shares (3,586,282) (7,555,066)
Shareholders Preferred Shares (1,052,964) (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 (4,639,246) (10,758,388)
------------ ------------
Capital Share Value of shares issued to Common Shareholders in reinvestment of
Transactions dividends and distributions -- 332,295
(Notes 1e & 4): Offering and underwriting costs resulting from 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 5,790,039 (23,467,655)
Beginning of period 174,440,508 197,908,163
------------ ------------
End of period* $180,230,547 $174,440,508
============ ============
<FN>
*Undistributed investment income--net $ 788,913 $ 799,865
============ ============
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 $ 13.70 $ 16.56 $ 14.14 $ 14.18
Operating -------- -------- -------- --------
Performance: Investment income--net .55 1.13 1.12 --
Realized and unrealized gain (loss) on
investments--net .71 (2.70) 2.48 --
-------- -------- -------- --------
<PAGE>
Total from investment operations 1.26 (1.57) 3.60 --
-------- -------- -------- --------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.43) (.91) (.85) --
Realized gain on investments--net -- (.15) -- --
-------- -------- -------- --------
Total dividends and distributions to
Common Shareholders (.43) (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 (.13) (.20) (.19) --
Realized gain on investments--net -- (.03) -- --
Capital charge resulting from issuance of
Preferred Shares -- -- (.14) --
-------- -------- -------- --------
Total effect of Preferred Share activity (.13) (.23) (.33) --
-------- -------- -------- --------
Net asset value, end of period $ 14.40 $ 13.70 $ 16.56 $ 14.14
======== ======== ======== ========
Market price per share, end of period $ 13.00 $ 11.375 $ 16.875 $ 15.00
======== ======== ======== ========
Total Investment Based on market price per share 18.12%+++ (27.46%) 18.78% .00%+++
Return:** ======== ======== ======== ========
Based on net asset value per share 8.64%+++ (10.98%) 23.65% (.28%)+++
======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .78%* .75% .66% --%*
Net Assets:*** ======== ======== ======== ========
Expenses .78%* .75% .72% --%*
======== ======== ======== ========
Investment income--net 5.35%* 4.99% 5.09% --%*
======== ======== ======== ========
Supplemental Net assets, net of Preferred Shares, end of period
Data: (in thousands) $120,230 $114,441 $137,908 $116,199
======== ======== ======== ========
Preferred Shares outstanding, end of period
(in thousands) $ 60,000 $ 60,000 $ 60,000 $ --
======== ======== ======== ========
Portfolio turnover 50.62% 51.81% 18.51% .00%
======== ======== ======== ========
<PAGE>
Dividends Per Investment income--net $ 439 $ 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 stock 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. 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 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.
(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.
<PAGE>
(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.
* 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 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.
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 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 six months ended April 30, 1995 were $89,893,053 and
$85,007,294, respectively.
Net realized and unrealized gains (losses) as of April 30, 1995 were
as follows:
<PAGE>
Realized
Gains Unrealized
(Losses) Gains
Long-term investments $1,629,309 $4,002,571
Financial futures contracts (1,980,104) --
---------- ----------
Total $ (350,795) $4,002,571
========== ==========
As of April 30, 1995, net unrealized appreciation for Federal income
tax purposes aggregated $4,002,571, of which $4,725,315 related to
appreciated securities and $722,744 related to depreciated
securities. The aggregate cost of investments at April 30, 1995 for
Federal income tax purposes was $173,548,679.
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 six months ended April 30, 1995, shares issued and
outstanding remained constant at 8,350,463. At April 30, 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 April 30, 1995 was 4.175%.
A two-for-one stock split occurred on December 1, 1994. As a result,
at April 30, 1995, there were 2,400 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 $27,849 as
commissions.
5. Capital Loss Carryforward:
At October 31, 1994, the Fund had a capital loss carryforward of
approximately $1,316,000, 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 Trustees declared an ordinary
income dividend to Common shareholders in the amount of $0.068815
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 $.28 $ .10 $ .14 $.23 $.05 -- --
August 1, 1993 to October 31, 1993 .28 -- .80 .24 .04 -- --
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 -- --
<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 $16.00 $15.44 $15.375 $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 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 14.17 12.55 13.375 10.375 1,736
February 1, 1995 to April 30, 1995 14.82 14.27 13.75 12.875 587
<FN>
*Calculations are based upon Common Shares outstanding at the end of
each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
<PAGE>
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
Preferred Shares:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
NYSE Symbol
MFT
</TABLE>
