MUNIYIELD
FLORIDA
INSURED FUND
FUND LOGO
Semi-Annual Report
April 30, 1999
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 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. Statements and other information herein are as dated
and are subject to change.
MuniYield Florida
Insured Fund
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MuniYield Florida Insured Fund
TO OUR SHAREHOLDERS
For the six months ended April 30, 1999, the Common Shares of
MuniYield Florida Insured Fund earned $0.450 per share income
dividends, which included earned and unpaid dividends of $0.068.
This represents a net annualized yield of 6.07%, based on a month-
end per share net asset value of $14.97. Over the same period, the
total investment return on the Fund's Common Shares was +0.26%,
based on a change in per share net asset value from $15.79 to
$14.97, and assuming reinvestment of $0.537 per share ordinary
income dividends and $0.340 per share capital gains distributions.
For the six-month period ended April 30, 1999, the Fund's Auction
Market Preferred Shares had an average yield of 4.11%.
The Municipal Market Environment
During the six months ended April 30, 1999, long-term bond yields
generally moved higher. From November 1998 through mid-January 1999,
long-term bond yields traded in a relatively narrow range. However,
during February, a number of economic indicators were released that
suggested that economic growth in the United States would likely
remain strong throughout most of 1999. Consequently, long-term US
Treasury bond yields rose more than 60 basis points (0.60%) to 5.70%
by early March. During the remainder of the six-month period, US
Treasury bond yields traded between 5.50% and 5.70% as the lack of
inflationary pressures offset much of the concerns generated by
continued strong economic growth. During most of the period, long-
term, uninsured tax-exempt bond yields exhibited far less volatility
and were largely stable. Also, long-term municipal bond yields rose
just 5 basis points to 5.29% at the end of April 1999, as measured
by the Bond Buyer Revenue Bond Index.
In recent months, the tax-exempt market was better able to withstand
much of the upward pressure on bond yields because of its stronger
technical position. While the continued positive inflationary
environment limited some of the recent increases in taxable bond
yields, a deteriorating supply/demand position helped push taxable
bond yields significantly higher than municipal bond yields. Much of
the US Treasury bond market's underperformance in recent months can
be attributed to the large amounts of taxable corporate issuance.
Large taxable corporate underwritings reduced the demand for US
Government securities in recent months, pushing US Treasury bond
yields higher.
On the other hand, the tax-exempt bond market enjoyed only limited
new-issue supply. During the six months ended April 30, 1999, more
than $123 billion in new long-term tax-exempt securities was
underwritten, a decline of 10% compared to the same period a year
ago. Municipalities issued less than $60 billion in long-term tax-
exempt securities during the three months ended April 30, 1999, a
decline of 25% compared to the April 30, 1998 quarter. More
recently, the rate of new tax-exempt issuance has declined even
further. During April 1999, just over $15 billion in long-term tax-
exempt securities was marketed, a decline of over 33% compared to
April 1998 levels. As municipal bond yields fell and stabilized in
recent quarters, the ability of municipalities to refinance existing
higher-couponed debt declined. This led to a significant decrease in
refunding issuance and an overall drop in new municipal bond supply.
When coupled with ongoing, moderate retail and institutional demand,
the tax-exempt bond market was able to avoid much of the yield
volatility exhibited by US Treasury securities.
Looking ahead, the expected combination of moderate economic growth
in the United States and continued negligible inflation suggests a
relatively stable interest rate environment. However, in recent
years, bond yields reached their annual peaks in early May and
declined for the remainder of the year. A meaningful decline in
fixed-income bond yields would require either evidence of a
significant slowdown in the US economy or the resumption of concerns
regarding renewed shocks to the world's economic system. Currently,
neither condition exists or seems likely in the immediate future. In
our opinion, this suggests a continuation of the narrow trading
ranges seen in recent months.
MuniYield Florida Insured Fund
April 30, 1999
Portfolio Strategy
During the last several months, we adopted a neu-tral investment
strategy, since indicators pointed to a continuation of both benign
inflation and healthy domestic economic growth. These favorable
conditions led us to believe that long-term tax-exempt bond yields
would remain trading within a somewhat narrow range. Therefore, we
chose to focus on income-producing securities rather than on those
issues with the potential for capital gains. We believed that coupon
income could be the more significant segment for the Fund if the tax-
exempt bond market performed as anticipated. Keeping shareholder
income in mind, MuniYield Florida Insured Fund remained fully
invested for most of the past several months, and we expect to
maintain this position going forward.
Short-term tax-exempt yields exhibited considerable volatility in
recent months. Interest rates paid to the Fund's Preferred
Shareholders traded below 3% in December 1998, reflecting heightened
investor demand at year-end. Current short-term interest rate levels
reflect tax season-related pressures, which we expect to abate soon.
During the six-month period ended April 30, 1999, leveraging
generated a significant incremental yield to the Fund's Common
Shareholders. Because we believe that the Federal Reserve Board's
monetary policy is likely to remain in a narrow range for the
remainder of the year, we expect short-term tax-exempt interest
rates to remain at, or slightly below, current levels. However,
should the spread between short-term and long-term interest rates
narrow, the benefits of the leverage will decline and, as a result,
reduce the yield to the Fund's Common Shares. (For a complete
explanation of the benefits and risks of leveraging, see page 3 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 ahead.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(William R. Bock)
William R. Bock
Vice President and Portfolio Manager
June 4, 1999
After more than 20 years of service, Arthur Zeikel recently retired
as Chairman of Merrill Lynch Asset Management, L.P. (MLAM). Mr.
Zeikel served as President of MLAM from 1977 to 1997 and as Chairman
since December 1997. Mr. Zeikel is one of the country's most
respected leaders in asset management and presided over the growth
of Merrill Lynch's asset management business. During his tenure,
client assets under management grew from $300 million to over $500
billion. Mr. Zeikel will remain on MuniYield Florida Insured Fund's
Board of Trustees. We are pleased to announce that Terry K. Glenn
has been elected President and Trustee of the Fund. Mr. Glenn has
held the position of Executive Vice President of MLAM since 1983.
Mr. Zeikel's colleagues at MLAM join the Fund's Board of Trustees in
wishing him well in his retirement from Merrill Lynch and are
pleased that he will continue as a member of the Fund's Board of
Trustees.
MuniYield Florida Insured Fund
April 30, 1999
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 Shares
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 pickup 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, their
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.
As a part of its investment strategy, the Fund may invest in certain
securities whose potential income return is inversely related to
changes in a floating interest rate ("inverse floaters"). In
general, income rates on inverse floaters will decrease when short-
term interest rates increase and increase when short-term interest
rates decrease. Investments in inverse floaters may be characterized
as derivative securities and may subject the Fund to the risks of
reduced or eliminated interest payments and losses of invested
principal. In addition, inverse floaters have the effect of
providing investment leverage and, as a result, the market value of
such securities will generally be more volatile than that of fixed-
rate, tax-exempt securities. To the extent the Fund invests in
inverse floaters, the market value of the Fund's portfolio and the
net asset value of the Fund's shares may also be more volatile than
if the Fund did not invest in these securities.
MuniYield Florida Insured Fund
April 30, 1999
PROXY RESULTS
During the six-month period ended April 30, 1999, MuniYield Florida
Insured Fund's Common Shareholders voted on the following proposals.
Proposals 1 and 2 were approved at a shareholders' meeting on April
21, 1999. The meeting was adjourned with respect to Proposal 3. The
description of each proposal and number of shares voted are as
follows:
<TABLE>
<CAPTION>
Shares Shares Withheld
Voted For From Voting
<S> <S> <C> <C>
1. To elect the Fund's Trustees: Terry K. Glenn 7,667,614 159,707
Edward H. Meyer 7,669,010 158,311
Jack B. Sunderland 7,665,228 162,093
J. Thomas Touchton 7,668,332 158,989
Fred G. Weiss 7,670,514 156,807
Arthur Zeikel 7,668,774 158,547
<CAPTION>
Shares Shares Voted Shares Voted
Voted For Against Abstain
<S> <C> <C> <C>
2. To ratify the selection of Deloitte & Touche LLP as the Fund's
independent auditors for the current fiscal year. 7,700,149 23,534 103,638
3. To approve an amendment to the Certificate of Designation of the Fund. Adjourned Adjourned Adjourned
</TABLE>
During the six-month period ended April 30, 1999, MuniYield Florida
Insured Fund's Preferred Shareholders voted on the following
proposals. Proposals 1 and 2 were approved at a shareholders'
meeting on April 21, 1999. The meeting was adjourned with respect to
Proposal 3. The description of each proposal and number of shares
voted are as follows:
<TABLE>
<CAPTION>
Shares Shares Withheld
Voted For From Voting
<S> <C> <C>
1. To elect the Fund's Board of Trustees:
Terry K. Glenn, Donald Cecil, M. Colyer Crum, Edward H. Meyer,
Jack B. Sunderland, J. Thomas Touchton, Fred G. Weiss
and Arthur Zeikel 1,990 0
<CAPTION>
Shares Shares Voted Shares Voted
Voted For Against Abstain
<S> <C> <C> <C>
2. To ratify the selection of Deloitte & Touche LLP as the Fund's
independent auditors for the current fiscal year. 1,990 0 0
3. To approve an amendment to the Certificate of Designation of the Fund. Adjourned Adjourned Adjourned
</TABLE>
MuniYield Florida Insured Fund
April 30, 1999
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
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
RITR Residual Interest Trust Receipts
S/F Single-Family
VRDN Variable Rate Demand Notes
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<S> <S> <C> <S> <C>
Alabama--1.0%
AAA NR* $ 1,715 Jefferson County, Alabama, Sewer Revenue Bonds, RIB, Series 124, 6.39% due
2/01/2036 (b)(j) $ 1,780
Florida--103.1%
AAA Aaa 5,585 Auburndale, Florida, Water and Sewer Revenue Bonds, 5.25% due 12/01/2025 (a) 5,666
NR* Aaa 2,375 Bay County, Florida, School Board, COP, 5% due 7/01/2023 (a) 2,326
AAA Aaa 2,000 Bay Medical Center, Florida, Hospital Revenue Bonds (Bay Medical Center
Project), 5% due 10/01/2022 (a) 1,958
Boynton Beach, Florida, Utility System, Revenue Refunding Bonds (b):
AAA Aaa 700 6.25% due 11/01/2020 (h) 815
AAA Aaa 3,375 6.25% due 11/01/2020 3,682
AAA Aaa 3,000 Brevard County, Florida, IDR (NUI Corporation Project), AMT, 6.40% due
10/01/2024 (a) 3,338
AAA Aaa 2,700 Brevard County, Florida, School Board, COP, Refunding, Series A, 5.10% due
7/01/2007 (a) 2,836
AAA Aaa 13,100 Broward County, Florida, Airport System Revenue Bonds (Passenger Facility),
Convertible Lien, Series H-2, 4.75% due 10/01/2023 (a) 12,393
Citrus County, Florida, PCR, Refunding (Florida Power Company--Crystal River) (c):
AAA Aaa 2,100 6.625% due 1/01/2027 2,271
AAA Aaa 5,750 Series B, 6.35% due 2/01/2022 6,253
Dade County, Florida, Aviation Revenue Bonds, AMT, Series B (c):
AAA Aaa 5,000 5.75% due 10/01/2012 5,347
AAA Aaa 2,650 6.55% due 10/01/2013 2,899
AAA Aaa 12,715 6.60% due 10/01/2022 13,928
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 (c)(h) 4,917
AAA Aaa 4,000 Dade County, Florida, School District, GO, 5.50% due 8/01/2004 (c)(d) 4,340
AAA Aaa 4,000 Dade County, Florida, Seaport, GO, Refunding, 5.125% due 10/01/2026 (c) 3,985
Escambia County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT (f)(g):
AAA Aaa 5,000 7% due 4/01/2028 5,481
NR* Aaa 2,500 (Multi-County Program), 5.20% due 4/01/2032 (c) 2,484
NR* VMIG1++ 1,900 Escambia County, Florida, PCR, Refunding (Gulf Power Company Project), VRDN,
4.20% due 7/01/2022 (e) 1,900
AAA Aaa 3,000 First Florida Governmental Financing Commission, Revenue Bonds, 5.70% due
7/01/2017 (c) 3,197
NR* Aaa 1,200 Florida HFA, Home Ownership Revenue Refunding Bonds, AMT, Series G-1, 7.90% due
3/01/2022 (g) 1,261
</TABLE>
MuniYield Florida Insured Fund
April 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<S> <S> <C> <S> <C>
Florida (continued)
AAA Aaa $1,150 Florida HFA, Housing Revenue Bonds (Brittany Rosemont Apartments), AMT,
Series C-1, 6.75% due 8/01/2014 (a) $ 1,254
Florida Municipal Loan Council Revenue Bonds (c):
AAA Aaa 1,100 5.125% due 4/01/2014 1,137
AAA Aaa 1,250 5.125% due 4/01/2015 1,283
AAA Aaa 1,225 5.125% due 4/01/2016 1,249
Florida State Board of Education, Capital Outlay, GO (Public Education),
Series B:
AA+ Aa2 1,750 5.875% due 6/01/2020 1,885
AAA Aaa 4,000 4.50% due 6/01/2023 (c) 3,649
AA+ Aa2 2,650 5.875% due 6/01/2024 2,861
AAA Aaa 5,000 4.50% due 6/01/2028 (c) 4,513
AA+ Aa2 3,000 Florida State Board of Education, Capital Outlay, GO, Refunding, Series A,
7.25% due 6/01/2023 3,171
AAA Aaa 3,695 Florida State Board of Regents, University System Improvement Revenue Bonds,
4.50% due 7/01/2023 (a) 3,370
AAA Aaa 1,000 Hillsborough County, Florida, IDA, Revenue Bonds (Allegany Health System--
J. Knox Village), 6.375% due 12/01/2003 (c)(d) 1,081
NR* Aaa 8,250 Indian Trace, Community Development District, Florida, Water Management,
Special Benefit Assessment, 5% due 5/01/2027 (c) 8,068
NR* VMIG1++ 4,150 Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Refunding
Bonds (Genesis Rehabilitation Hospital), VRDN, 4% due 5/01/2021 (e) 4,150
AAA NR* 2,140 Lee County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program),
AMT, Series A, Sub-Series 3, 7.45% due 9/01/2027 (f)(g)(k) 2,409
A- A3 5,000 Leesburg, Florida, Hospital Revenue Refunding Bonds (Leesburg Regional
Medical Center Project), Series A, 6.125% due 7/01/2012 5,319
AAA Aaa 1,000 Marion County, Florida, Hospital District, Revenue Refunding Bonds (Monroe
Regional Medical Center), 6.25% due 10/01/2012 (b) 1,086
AAA Aaa 2,545 Miami Beach, Florida, Parking Revenue Bonds, 5.125% due 9/01/2022 (i) 2,540
AAA Aaa 2,460 Miami-Dade County, Florida, GO (Parks Program), 4.75% due 11/01/2023 (b) 2,327
AAA Aaa 2,515 North Miami Beach, Florida, GO, 6.30% due 2/01/2024 (b) 2,780
AAA Aaa 1,210 Okaloosa County, Florida, Gas District, Revenue Refunding Bonds (Gas System),
Series A, 5.20% due 10/01/2017 (c) 1,238
NR* Aaa 1,680 Orange County, Florida, School Board, COP, Refunding, Series A, 5.375% due
8/01/2017 (c) 1,735
Orange County, Florida, School Board, COP, Series A (c):
NR* Aaa 6,500 5.25% due 8/01/2023 6,604
NR* Aaa 5,000 5% due 8/01/2024 4,887
AAA Aaa 1,000 Orange County, Florida, Tourist Development Tax, Revenue Refunding Bonds,
Series A, 6.50% due 10/01/2010 (a) 1,102
AAA Aaa 1,500 Palm Beach County, Florida, Criminal Justice Facilities Revenue Bonds,
7.20% due 6/01/2015 (b) 1,912
AAA Aaa 2,000 Palm Beach County, Florida, Solid Waste Authority, Revenue Refunding and
Improvement Bonds, 6.25% due 12/01/2002 (c)(d) 2,210
AAA Aaa 2,500 Pasco County, Florida, PCR, Refunding (Florida Power--Anclote), 6.35% due
2/01/2022 (c) 2,719
A1+ VMIG1++ 5,500 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding
Bonds (Pooled Hospital Loan Program), DATES, 4% due 12/01/2015 (a)(e) 5,500
AAA Aaa 2,340 Polk County, Florida, School Board, COP, Series A, 5% due 1/01/2024 (i) 2,291
</TABLE>
MuniYield Florida Insured Fund
April 30, 1999
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<S> <S> <C> <S> <C>
Florida (concluded)
A1+ VMIG1++ $ 100 Saint Lucie County, Florida, PCR, Refunding (Florida Power and Light
Company Project), VRDN, 4% due 1/01/2026 (e) $ 100
NR* Aaa 5,000 Sarasota County, Florida, Public Hospital Board, Revenue Refunding Bonds,
RITR, Series 99, 6.665% due 7/01/2028 (c)(j) 5,650
AAA Aaa 4,920 Sarasota County, Florida, Utility System Revenue Bonds, 6.50% due
10/01/2004 (b)(d) 5,627
AAA Aaa 2,250 South Broward Hospital District, Florida, Hospital Revenue Bonds, RIB,
6.611% due 5/01/2001 (a)(d)(j) 2,576
AAA Aaa 2,275 South Florida Water Mangement District, Special Obligation Land Aquisition
Revenue Bonds, 6% due 10/01/2015 (a) 2,468
Pennsylvania--0.2%
A1+ VMIG1++ 400 Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities
Authority, Hospital Revenue Bonds (Children's Hospital Project), VRDN,
Series A, 4.20% due 3/01/2027 (e) 400
Total Investments (Cost--$186,431)--104.3% 194,208
Liabilities in Excess of Other Assets--(4.3%) (7,957)
--------
Net Assets--100.0% $186,251
========
<FN>
(a)AMBAC Insured.
(b)FGIC Insured.
(c)MBIA Insured.
(d)Prerefunded.
(e)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, 1999.
(f)FNMA Collateralized.
(g)GNMA Collateralized.
(h)Escrowed to maturity.
(i)FSA Insured.
(j)The interest rate is subject to change periodically and inversely
based upon prevailing market rates. The interest rate shown is the
rate in effect at April 30, 1999.
(k)FHLMC Collateralized.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
QUALITY PROFILE
The quality ratings of securities in the Fund as of April 30, 1999
were as follows:
Percent of
S&P Rating/Moody's Rating Net Assets
AAA/Aaa 90.7%
AA/Aa 4.2
A/A 2.9
Other++ 6.5
[FN]
++Temporary investments in short-term municipal securities.
MuniYield Florida Insured Fund
April 30, 1999
FINANCIAL INFORMATION
<TABLE>
<CAPTION>
Statement of Assets, Liabilities and Capital as of April 30, 1999
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$186,431,215) (Note 1a) $194,207,765
Cash 20,725
Receivables:
Securities sold $ 10,443,075
Interest 2,655,433 13,098,508
------------
Prepaid expenses and other assets 8,858
------------
Total assets 207,335,856
------------
Liabilities: Payables:
Securities purchased 20,962,732
Investment adviser (Note 2) 81,949
Dividends to shareholders (Note 1e) 38,544 21,083,225
------------
Accrued expenses and other liabilities 1,944
------------
Total liabilities 21,085,169
------------
Net Assets: Net assets $186,250,687
============
Capital: Capital Shares (unlimited number of shares of beneficial
interest authorized) (Note 4):
Preferred Shares, par value $.05 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 (8,432,877 shares
issued and outstanding) $ 843,288
Paid-in capital in excess of par 117,556,568
Undistributed investment income--net 1,627,686
Accumulated realized capital losses on investments--net (1,553,405)
Unrealized appreciation on investments--net 7,776,550
------------
Total--Equivalent to $14.97 net asset value per Common Share
(market price--$15.8125) 126,250,687
------------
Total capital $186,250,687
============
<FN>
*Auction Market Preferred Shares.
See Notes to Financial Statements.
</TABLE>
MuniYield Florida Insured Fund
April 30, 1999
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six Months Ended
April 30, 1999
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 5,028,061
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 471,483
Commission fees (Note 4) 70,116
Accounting services (Note 2) 41,250
Professional fees 30,814
Transfer agent fees 22,364
Trustees' fees and expenses 12,583
Printing and shareholder reports 10,371
Listing fees 7,490
Custodian fees 5,762
Pricing fees 3,672
Other 14,952
------------
Total expenses 690,857
------------
Investment income--net 4,337,204
------------
Realized & Realized gain on investments--net 312,828
Unrealized Gain Change in unrealized appreciation on investments--net (2,976,943)
(Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 1,673,089
(Notes 1b, ============
1d & 3):
See Notes to Financial Statements.
</TABLE>
MuniYield Florida Insured Fund
April 30, 1999
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: 1999 1998
<S> <S> <C> <C>
Operations: Investment income--net $ 4,337,204 $ 9,051,134
Realized gain on investments--net 312,828 4,616,775
Change in unrealized appreciation on investments--net (2,976,943) (468,727)
------------ ------------
Net increase in net assets resulting from operations 1,673,089 13,199,182
------------ ------------
Dividends & Investment income--net:
Distributions to Common Shares (3,812,195) (7,008,478)
Shareholders Preferred Shares (291,576) (1,895,496)
(Note 1e): Realized gain on investments--net:
Common Shares (3,546,481) (1,461,030)
Preferred Shares (939,432) (351,960)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (8,589,684) (10,716,964)
------------ ------------
Beneficial Value of shares issued to Common Shareholders in reinvestment
Interest of dividends and distributions 854,328 425,744
Transactions ------------ ------------
(Note 4):
Net Assets: Total increase (decrease) in net assets (6,062,267) 2,907,962
Beginning of period 192,312,954 189,404,992
------------ ------------
End of period* $186,250,687 $192,312,954
============ ============
<FN>
*Undistributed investment income--net $ 1,627,686 $ 1,394,253
============ ============
See Notes to Financial Statements.
</TABLE>
MuniYield Florida Insured Fund
April 30, 1999
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
The following per share data and ratios have been derived For the Six
from information provided in the financial statements. Months Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 15.79 $ 15.50 $ 15.25 $ 15.16 $ 13.70
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .50 1.09 1.10 1.08 1.12
Realized and unrealized gain (loss) on
investments--net (.35) .48 .52 .17 1.45
-------- -------- -------- -------- --------
Total from investment operations .15 1.57 1.62 1.25 2.57
-------- -------- -------- -------- --------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.45) (.84) (.85) (.84) (.84)
Realized gain on investments--net (.42) (.17) (.22) (.06) --
In excess of realized gain on
investments--net -- -- (.02) -- --
-------- -------- -------- -------- --------
Total dividends and distributions to Common
Shareholders (.87) (1.01) (1.09) (.90) (.84)
-------- -------- -------- -------- --------
Effect of Preferred Share activity:
Dividends and distributions to Preferred
Shareholders:
Investment income--net (.03) (.23) (.21) (.24) (.27)
Realized gain on investments--net (.07) (.04) (.07) (.02) --
In excess of realized gain on
investments--net -- -- --++ -- --
-------- -------- -------- -------- --------
Total effect of Preferred Share activity (.10) (.27) (.28) (.26) (.27)
-------- -------- -------- -------- --------
Net asset value, end of period $ 14.97 $ 15.79 $ 15.50 $ 15.25 $ 15.16
======== ======== ======== ======== ========
Market price per share, end of period $15.8125 $ 15.625 $ 15.00 $ 14.125 $ 13.50
======== ======== ======== ======== ========
Total Investment Based on market price per share 7.02%+++ 11.21% 14.41% 11.48% 26.46%
Return:** ======== ======== ======== ======== ========
Based on net asset value per share .26%+++ 8.76% 9.50% 7.18% 17.91%
======== ======== ======== ======== ========
Ratios to Average Expenses .73%* .71% .71% .73% .75%
Net Assets:*** ======== ======== ======== ======== ========
Investment income--net 4.59%* 4.76% 4.92% 4.88% 5.18%
======== ======== ======== ======== ========
Supplemental Net assets, net of Preferred Shares,
Data: end of period (in thousands) $126,251 $132,313 $129,405 $127,320 $126,557
======== ======== ======== ======== ========
Preferred Shares outstanding, end of period
(in thousands) $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000
======== ======== ======== ======== ========
Portfolio turnover 50.89% 62.35% 73.79% 156.11% 107.90%
======== ======== ======== ======== ========
Leverage: Asset coverage per $1,000 $ 3,104 $ 3,205 $ 3,157 $ 3,122 $ 3,109
======== ======== ======== ======== ========
Dividends Investment income--net $ 121 $ 790 $ 746 $ 832 $ 925
Per 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.
++Amount is less than $.01 per share.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
MuniYield Florida Insured Fund
April 30, 1999
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's financial statements are
prepared in accordance with generally accepted accounting principles
which may require the use of management accruals and estimates.
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 written or purchased are valued at the last
sale price in the case of exchange-traded options. In the case of
options traded in the over-the-counter market, valuation is the last
asked price (options written) or the last bid price (options
purchased). Securities with remaining maturities of sixty days or
less are valued at amortized cost, which approximates market value.
Securities and assets 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.
(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
financial 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.
(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.
MuniYield Florida Insured Fund
April 30, 1999
(e) 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, including proceeds from the
issuance of Preferred Shares.
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, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 1999 were $91,440,507 and
$95,662,621, respectively.
Net realized gains for the six months ended April 30, 1999 and net
unrealized gains as of April 30, 1999 were as follows:
Realized Unrealized
Gains Gains
Long-term investments $ 312,828 $ 7,776,550
---------- -----------
Total $ 312,828 $ 7,776,550
========== ===========
As of April 30, 1999, net unrealized appreciation for Federal income
tax purposes aggregated $7,776,550, of which $8,571,777 related to
appreciated securities and $795,227 related to depreciated
securities. The aggregate cost of investments at April 30, 1999 for
Federal income tax purposes was $186,431,215.
4. Beneficial Interest Transactions:
The Fund is authorized to issue an unlimited number of shares of
beneficial interest, 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
Shares issued and outstanding during the six months ended April 30,
1999 and the year ended October 31, 1998 increased by 55,062 and
27,352, respectively as a result of dividend reinvestment.
Preferred Shares
Auction Market Preferred Shares ("AMPS") are shares of Preferred
Shares of the Fund, with a par value of $.05 per share and a
liquidation preference of $25,000 per share, 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, 1999 was 3.35%.
Shares issued and outstanding during the six months ended April 30,
1999 and the year ended October 31, 1998 remained constant.
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, 1999, Merrill Lynch, Pierce, Fenner & Smith Incorporated,
an affiliate of FAM, earned $32,753 as commissions.
5. Subsequent Event:
On May 6, 1999, the Fund's Board of Trustees declared an ordinary
income dividend to Common Shareholders in the amount of $.068303 per
share, payable on May 27, 1999 to shareholders of record as of May
21, 1999.
MuniYield Florida Insured Fund
April 30, 1999
YEAR 2000 ISSUES
Many computer systems were designed using only two digits to
designate years. These systems may not be able to distinguish the
Year 2000 from the Year 1900 (commonly known as the "Year 2000
Problem"). The Fund could be adversely affected if the computer
systems used by the Fund's management or other Fund service
providers do not properly address this problem before January 1,
2000. The Fund's management expects to have addressed this problem
before then, and does not anticipate that the services it provides
will be adversely affected. The Fund's other service providers have
told the Fund's management that they also expect to resolve the Year
2000 Problem, and the Fund's management will continue to monitor the
situation as the Year 2000 approaches. However, if the problem has
not been fully addressed, the Fund could be negatively affected. The
Year 2000 Problem could also have a negative impact on the
securities in which the Fund invests, and this could hurt the Fund's
investment returns.
MANAGED DIVIDEND POLICY
The Fund's dividend policy is to distribute substantially all of its
net investment income to its shareholders on a monthly basis.
However, in order to provide shareholders with a more consistent
yield to the current trading price of Common Shares of the Fund, the
Fund may at times pay out less than the entire amount of net
investment income earned in any particular month and may at times in
any month pay out such accumulated but undistributed income in
addition to net investment income earned in that month. As a result,
the dividends paid by the Fund for any particular month may be more
or less than the amount of net investment income earned by the Fund
during such month. The Fund's current accumulated but undistributed
net investment income, if any, is disclosed in the Statement of
Assets, Liabilities and Capital, which comprises part of the
Financial Information included in this report.
MuniYield Florida Insured Fund, Inc.
April 30, 1999
OFFICERS AND TRUSTEES
Terry K. Glenn, President and Trustee
Donald Cecil, Trustee
M. Colyer Crum, Trustee
Edward H. Meyer, Trustee
Jack B. Sunderland, Trustee
J. Thomas Touchton, Trustee
Fred G. Weiss, Trustee
Arthur Zeikel, Trustee
Vincent R. Giordano, Senior Vice President
William R. Bock, Vice President
Kenneth A. Jacob, Vice President
Donald C. Burke, Vice President and Treasurer
Alice A. Pellegrino, Secretary
Gerald M. Richard, Treasurer of MuniYield Florida Insured Fund has
recently retired. His colleagues at Merrill Lynch Asset Management,
L.P. join the Fund's Board of Trustees in wishing Mr. Richard well
in his retirement.
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agents
Common Shares:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Shares:
IBJ Whitehall Bank & Trust Company
One State Street
New York, NY 10004
NYSE Symbol
MFT
