MUNIVEST
NEW YORK
INSURED
FUND, INC.
FUND LOGO
Annual Report
October 31, 1994
This report, including the financial information herein,
is transmitted to the shareholders of MuniVest New York
Insured Fund, Inc. for their information. It is not a
prospectus, circular or representation intended for use
in the purchase of shares of the Fund or any securities
mentioned in the report. Past performance results shown
in this report should not be considered a representation
of future performance. The Fund has leveraged its
Common Stock by issuing Preferred Stock to provide
the Common Stock shareholders with a potentially
higher rate of return. Leverage creates risks for
Common Stock shareholders, including the likelihood
of greater volatility of net asset value and market
price of shares of the Common Stock, and the risk that
fluctuations in the short-term dividend rates of the
Preferred Stock may affect the yield to Common
Stock shareholders.
<PAGE>
MuniVest
New York Insured
Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MUNIVEST NEW YORK INSURED FUND, INC.
The Benefits and
Risks of
Leveraging
MuniVest New York Insured Fund, Inc. utilizes leveraging to seek
to enhance the yield and net asset value of its Common Stock.
However, these objectives cannot be achieved in all interest
rate environments. To leverage, the Fund issues Preferred Stock,
which pays dividends at prevailing short-term interest rates,
and invests the proceeds in long-term municipal bonds. The
interest earned on these investments is paid to Common Stock
shareholders in the form of dividends, and the value of these
portfolio holdings is reflected in the per share net asset value of
the Fund's Common Stock. However, in order to benefit Common
Stock shareholders, the yield curve must be positively sloped;
that is, short-term interest rates must be lower than long-term
interest rates. At the same time, a period of generally declining
interest rates will benefit Common Stock shareholders. If either
of these conditions change, then the risks of leveraging will
begin to outweigh the benefits.
To illustrate these concepts, assume a fund's Common Stock
capitalization of $100 million and the issuance of Preferred
Stock for an additional $50 million, creating a total value of $150
million available for investment in long-term municipal bonds.
If prevailing short-term interest rates are approximately 3% and
long-term interest rates are approximately 6%, the yield curve
has a strongly positive slope. The fund pays dividends on the
$50 million of Preferred Stock based on the lower short-term
interest rates. At the same time, the fund's total portfolio of
$150 million earns the income based on long-term interest rates.
<PAGE>
In this case, the dividends paid to Preferred Stock shareholders
are significantly lower than the income earned on the fund's
long-term investments, and therefore the Common Stock share-
holders are the beneficiaries of the incremental yield. However,
if short-term interest rates rise, narrowing the differential
between short-term and long-term interest rates, the incremental
yield pick-up on the Common Stock will be reduced. At the same
time, the market value of the fund's Common Stock (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 Stock's net asset value will reflect the full decline in the
price of the portfolio's investments, since the value of the fund's
Preferred Stock does not fluctuate. In addition to the decline in
net asset value, the market value of the fund's Common Stock
may also decline.
Officers and
Directors
Arthur Zeikel, President and Director
Donald Cecil, Director
M. Colyer Crum, Director
Edward H. Meyer, Director
Jack B. Sunderland, Director
J. Thomas Touchton, Director
Terry K. Glenn, Executive Vice President
Donald C. Burke, Vice President
Vincent R. Giordano, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Robert E. Putney, III, Assistant Secretary
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, New York 10286
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
Custodian
The Bank of New York
90 Washington Street
New York, New York 10286
NYSE Symbol
MVY
<PAGE>
DEAR SHAREHOLDER
For the year ended October 31, 1994, the
Common Stock of MuniVest New York
Insured Fund, Inc. earned $0.893 per
share income dividends, which includes
earned and unpaid dividends of $0.068.
This represents a net annualized yield
of 7.60%, based on a month-end net
asset value of $11.79 per share. Over the
same period, the total investment return
on the Fund's Common Stock was
- -15.13%, based on a change in per share
net asset value from $14.90 to $11.79,
and assuming reinvestment of $0.900
per share income dividends.
For the six-month period ended October
31, 1994, the total investment return on
the Fund's Common Stock was -4.65%,
based on a change in per share net
asset value from $12.81 to $11.79, and
assuming reinvestment of $0.418 per
share income dividends.
The average yield of the Fund's Auction
Market Preferred Stock for the six
months ended October 31, 1994
was 2.769%.
The Environment
As discussed in our last report to share-
holders, the Federal Reserve Board
moved to counteract inflationary pres-
sures by tightening monetary policy. This
trend continued during the May--
October period. Despite the series of
preemptive strikes against inflation by
the central bank, concerns of increasing
inflationary pressures continued to
prompt volatility in the US capital mar-
kets during the period. In addition, the
weakness of the US dollar in foreign
exchange markets prolonged stock and
bond market declines.
<PAGE>
Ongoing strength in the manufacturing
sector and better-than-expected
economic results continue to fuel
speculation that the Federal Reserve
Board will continue to raise short-term
interest rates in the months ahead.
However, although consumer spending
is increasing, it is doing so at a lower
rate than has been the case in recent
economic recoveries. In the weeks
ahead, investors will continue to assess
economic data and inflationary trends
in order to gauge whether further
increases in short-term interest rates
are imminent. Continued indications
of moderate and sustainable levels of
economic growth would be positive for
the US capital markets. At the same
time, greater US dollar stability in
foreign exchange markets would help to
dampen expectations of significantly
higher short-term interest rates.
The Municipal Market
The long-term tax-exempt market con-
tinued to erode throughout the three
months ended October 31, 1994. As
measured by the Bond Buyer Revenue
Bond Index, yields on A-rated municipal
revenue bonds maturing in 30 years rose
by almost 50 basis points (0.50%) to
6.95% during the October 1994 quarter.
This represents the highest level in
tax-exempt bond yields in over two
years. US Treasury bonds suffered even
greater declines during the quarter as
Treasury bond yields rose approximately
60 basis points to end the quarter
at 8.00%.
The tax-exempt bond market reacted
negatively throughout the October
quarter to indications that, despite a
series of interest rate increases by the
Federal Reserve Board, the strength of
the domestic economy seen in recent
quarters has not yet been significantly
reduced. While inflationary pressures
have remained well contained, addi-
tional Federal Reserve Board actions
have been expected both to ensure that
domestic economic growth is eventually
confined to current levels and to assure
nervous financial markets of its anti-
inflationary intentions.
<PAGE>
Fortunately, while the demand for tax-
exempt bonds has declined somewhat
in recent months, new bond issuance
has remained greatly reduced. During
the quarter ended October 31, 1994, only
$32 billion in long-term tax-exempt
securities were issued, a decline of over
50% versus the October 31, 1993 quarter.
Similarly, for the six months ended
October 31, 1994, only $75 billion in
municipal securities were underwritten,
a decline of over 50% versus the com-
parable period a year earlier. This reduc-
tion in issuance in recent quarters has
allowed the municipal bond market to
react to both the decline in investor
demand and the rise in fixed-income
yields in a more orderly fashion than in
similar situations in the past, particu-
larly during 1987.
Long-term tax-exempt revenue bonds
currently yield approximately 7%, or
almost 11.5% on an after-tax equivalent
basis, to an investor in the 39.6% Federal
income tax bracket. As inflation has
only marginally increased in the past
year, real tax-exempt interest rates have
risen dramatically. The Federal Reserve
Board appears committed to maintaining
inflation at or below its current levels.
Indeed, most forecasts expect inflation
to remain in its present range of 3%--4%
throughout 1995 and, potentially, for
the remainder of the 1990s. Real after-
tax equivalent interest rates exceeding
7% represent historically attractive
municipal investments for long-term
investors.
<PAGE>
Federal Reserve Board actions taken
thus far have yet to fully impact US
domestic growth and expected addi-
tional actions should promote only a
modest economic expansion within a
benign inflationary context beginning
sometime early in 1995. Within such
an environment, it is unlikely that
tax-exempt interest rates will remain at
their current attractive levels. Tax-
exempt bond issuance is unlikely to
return to the historic high levels seen
in 1992 and 1993, while investor demand
should return as markets stabilize. As
we have discussed in earlier reports,
the total number of tax-exempt bonds
outstanding is scheduled to decline
dramatically in 1994 and 1995 as a result
of both regular bond maturities and
early redemptions. Investors seeking
tax-advantaged issues are likely to find
it very difficult to obtain currently avail-
able tax-exempt yields as the current
supply/demand balance is unlikely to be
maintained in the coming quarters.
Portfolio Strategy
We have maintained the Fund in a defen-
sive strategy for the past six months.
During the six-month period ended
October 31, 1994, we concentrated on
purchasing higher coupon, shorter
maturity bonds while selling discount
bonds. This strategy increased the
Fund's current yield while decreasing
its sensitivity to interest rate swings.
We will continue this approach until the
economy shows signs of weakening and the
threat of future inflation has subsided.
<PAGE>
Short-term tax exempt yields have
performed exceptionally well against
taxable short-term interest rates. We
have maintained the Fund's Preferred
Stock in a weekly reset mode. As a result,
the Preferred Stock is currently yielding
2.70%, up only 60 basis points since the
beginning of February. The Federal
Reserve Board's monetary tightening
policy has forced taxable short-term
interest rates to increase 175 basis points
during the same period. The strong
demand for short-term tax-exempt
bonds is expected to continue, therefore
sustaining the benefits of leverage in a
steep yield curve environment. However,
should the yield curve flatten, the bene-
fits of leveraging will decline and, as
a result, reduce the yield of the Fund's
Common Stock. (See page 1 of this
report to shareholders for a complete
explanation of the benefits and risks
of leveraging.)
In Conclusion
We appreciate your interest in MuniVest
New York Insured Fund, Inc., and we
look forward to serving your investment
needs and objectives in the months and
years to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
December 1, 1994
Portfolio
Abbreviations
To simplify the listings of MuniVest New York Insured Fund, Inc.'s
portfolio holdings in the Schedule of Investments, we have
abbreviated the names of many of the securities according to
the list at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
GO General Obligation Bonds
IDA Industrial Development Authority
PCR Pollution Control Revenue Bonds
UT Unlimited Tax
VRDN Variable Rate Demand Note
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
New York--89.0% AAA Aaa $ 1,500 Broome County, New York, COP, Public Safety Facility Revenue Bonds,
5.25% due 4/01/2015 (e) $ 1,245
AAA Aaa 1,900 Buffalo, New York, Sewer Authority, Sewer System Revenue
Refunding Bonds, Series G, 5% due 7/01/2012 (b) 1,560
AAA Aaa 3,000 Metropolitan Transportation Authority, New York, Commuter Facilities
Revenue Refunding Bonds, Series B, 6.25% due 7/01/2022 (e) 2,827
AAA Aaa 3,000 Metropolitan Transportation Authority, New York, Service Contract
Transportation Facilities Bonds, Series P, 5.75% due 7/01/2015 (d) 2,665
AAA Aaa 2,500 Metropolitan Transportation Authority, New York, Transportation
Facilities Revenue Bonds, Refunding, Series M, 6% due 7/01/2014 (d) 2,320
AAA Aaa 12,000 Metropolitan Transportation Authority, New York, Transportation
Facilities Revenue Bonds, Series K, 6.25% due 7/01/2011 (e) 11,720
AAA Aaa 6,550 Monroe County, New York, Airport Authority, Airport Revenue
Refunding Bonds (Greater Rochester International), AMT, 5.375%
due 1/01/2019 (e) 5,389
AAA Aaa 1,500 Montgomery, Otsego and Schoharie Counties, New York, Solid Waste
Management Authority, Solid Waste Systems Revenue Refunding Bonds,
Series A, 5.25% due 1/01/2014 (e) 1,254
A1+ NR* 1,500 Nassau County, New York, IDA, Research Facilities Revenue Bonds
(Cold Spring Harbor Laboratory Project), VRDN, 3.40%
due 7/01/2023 (a) 1,500
New York City, New York, GO, Revenue Refunding Bonds, UT:
A- Baa1 3,000 Series A, 6.375% due 8/01/2005 2,942
AAA Aaa 1,155 Series A, 5.75% due 8/01/2011 (b) 1,049
AAA Aaa 2,005 Series C, 6% due 8/01/2012 (e) 1,868
AAA Aaa 3,300 Series D, 6% due 8/01/2012 (d) 3,049
A1+ NR* 500 New York City, New York, IDA, Civic Facilities Revenue Bonds
(National Audobon Society), VRDN, 3.30% due 12/01/2014 (a) 500
A1+ NR* 200 New York City, New York, IDA, Revenue Bonds (Japan Airlines
Company Ltd. Project), VRDN, AMT, 3.75% due 11/01/2015 (a) 200
A A 4,265 New York City, New York, IDA, Special Facility Revenue Bonds
(Terminal One Group Association Project), AMT, 6% due 1/01/2015 3,858
New York City, New York, Municipal Water Finance Authority, Water
and Sewer System Revenue Bonds:
AAA Aaa 2,750 Refunding, Series A, 5.875% due 6/15/2013 (c) 2,508
AAA Aaa 2,500 Refunding, Series A, 5.75% due 6/15/2018 (b) 2,177
AAA Aaa 3,300 Series C, 6.20% due 6/15/2021 (c) 3,058
A1+ VMIG1 1,000 New York City, New York, Trust for Cultural Resources Revenue Bonds
(Soloman R. Guggenheim), VRDN, Series B, 3.30% due 12/01/2015 (a) 1,000
New York State Dormitory Authority Revenue Bonds:
AAA Aaa 1,000 (Colgate University), Series A, 6.50% due 7/01/2021 (e) 980
A1+ VMIG1 1,800 (Cornell University), VRDN, Series B, 3.30% due 7/01/2025 (a) 1,800
AAA Aaa 2,900 (New York Public Library), Series A, 5.875% due 7/01/2022 (e) 2,594
AAA Aaa 2,100 (New York University), 6% due 7/01/2015 (b) 1,981
NR* VMIG1 500 (Saint Francis Center at The Knolls), VRDN, 3.55% due 7/01/2023 (a) 500
New York State Energy Research and Development Authority, PCR
(Niagara Power Corporation Project), VRDN (a):
A1+ NR* 1,400 AMT, Series B, 3.70% due 7/01/2027 1,400
NR* NR* 1,800 Series A, 3.40% due 3/01/2027 1,800
New York State Energy Research and Development Authority
Revenue Bonds, AMT:
A+ Aa3 4,000 (Con Edison Company, Inc. Project), Series A, 7.75% due 1/01/2024 4,190
AAA Aaa 1,800 (Con Edison Company, Inc. Project), Series A, 6.75%
due 1/15/2027 (c) 1,749
BB+ Ba1 4,000 Electric Facilities (Long Island Lighting Company), Series C,
6.90% due 8/01/2022 3,639
AAA Aaa 3,000 New York State Housing Finance Agency, Service Contract Obligation,
Revenue Refunding Bonds, Series C, 5.875% due 9/15/2014 (d) 2,712
<PAGE>
NR* VMIG1 100 New York State Job Development Authority Revenue Bonds, State
Guaranteed, Special Purpose (Series A-1-A-25), VRDN, AMT, 3.70%
due 3/01/2007 (a) 100
New York State Medical Care Facilities, Finance Agency
Revenue Bonds:
AAA Aaa 2,000 (Hospital and Nursing Home-Insured Mortgage), Refunding, Series C,
5.75% due 8/15/2019 (e) 1,743
AAA Aaa 3,470 (Mental Health Services Facilities), Series F,
6.50% due 8/15/2012 (b) 3,430
AAA Aaa 1,885 (North Shore University--Glen Cove), Series A,
5.125% due 11/01/2012 (e) 1,558
AAA Aaa 5,875 (Saint Peter's Hospital Project), Series A,
5.375% due 11/01/2020 (c) 4,793
AAA Aaa 2,000 New York State Power Authority, General Purpose, Revenue Refunding
Bonds, Series Z, 6.50% due 1/01/2019 (b) 1,957
AAA Aaa 3,000 New York State Thruway Authority Revenue Bonds (Highway and Bridge
Trust Fund), UT, Series B, 6% due 4/01/2014 (b) 2,810
AAA Aaa 16,675 New York State Urban Development Corporation, Revenue Refunding
Bonds (Correctional Facilities), 5.375% due 1/01/2012 (e) 14,515
Port Authority of New York and New Jersey, Consolidated Bonds:
AAA Aaa 3,000 72nd Series, 7.40% due 10/01/2012 (c) 3,220
AAA Aaa 2,500 84th Series, 6% due 1/15/2028 (e) 2,262
A1+ VMIG1 100 Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (Versatile Structure Obligations), VRDN,
Series 1, 3.65% due 8/01/2028 (a) 100
A1+ VMIG1 1,700 Syracuse, New York, IDA, Civic Facilities Revenue Bonds
(Syracuse University Project), VRDN, 3.30% due 3/01/2023 (a) 1,700
AAA Aaa 5,000 Triborough Bridge and Tunnel Authority, New York, Special
Obligation Revenue Refunding Bonds, 6.20% due 1/01/2007 (b) 4,957
Puerto Rico--4.5% AAA Aaa 3,215 Puerto Rico Commonwealth GO, 5.85% due 7/01/2009 (e) 3,086
A Baa1 3,000 Puerto Rico, Commonwealth, Highway and Transportation Authority,
Highway Revenue Refunding Bonds, Series V, 6.625% due 7/01/2012 2,970
Total Investments (Cost--$134,998)--93.5% 125,235
Other Assets Less Liabilities--6.5% 8,685
--------
Net Assets--100.0% $133,920
========
<PAGE>
<FN>
*Not Rated.
(a)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, 1994.
(b)FGIC Insured.
(c)AMBAC Insured.
(d)CAPMAC Insured.
(e)MBIA Insured.
Ratings of issues shown have not been audited by Ernst & Young LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of October 31, 1994
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$134,998,114) (Note 1a) $125,235,349
Cash 92,709
Receivables:
Securities sold $ 13,448,902
Interest 2,354,790 15,803,692
------------
Deferred organization expenses (Note 1e) 21,935
Prepaid expenses and other assets 6,844
------------
Total assets 141,160,529
------------
Liabilities: Payables:
Securities purchased 6,851,924
Dividends to shareholders (Note 1g) 243,473
Investment adviser (Note 2) 48,661 7,144,058
------------
Accrued expenses and other liabilities 95,977
------------
Total liabilities 7,240,035
------------
Net Assets: Net assets $133,920,494
============
<PAGE>
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.10 per share (980 shares of AMPS* issued and
outstanding at $50,000 per share liquidation preference) $ 49,000,000
Common Stock, par value $.10 per share (7,204,432 shares issued and
outstanding) $ 720,443
Paid-in capital in excess of par 100,237,381
Undistributed investment income--net 556,627
Accumulated realized capital losses on investments--net (Note 5) (6,831,192)
Unrealized depreciation on investments--net (9,762,765)
------------
Total--Equivalent to $11.79 net asset value per share of Common Stock
(market price--$10.50) 84,920,494
------------
Total capital $133,920,494
============
<FN>
*Auction Market Preferred Stock.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended October 31, 1994
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $8,316,005
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 727,405
Commission fees (Note 4) 123,833
Professional fees 68,438
Printing and shareholder reports 41,010
Transfer agent fees 34,658
Accounting services (Note 2) 25,526
Directors' fees and expenses 22,632
Listing fees 15,729
Custodian fees 6,285
Amortization of organization expenses (Note 1e) 6,274
Pricing fees 5,895
Other 7,881
------------
Total expenses before reimbursement 1,085,566
Reimbursement of expenses (Note 2) (158,661)
------------
Total expenses after reimbursement 926,905
------------
Investment income--net 7,389,100
------------
<PAGE>
Realized & Realized loss on investments--net (6,831,186)
Unrealized Loss on Change in unrealized appreciation on investments--net (15,186,065)
Investments--Net ------------
(Notes 1d & 3): Net Decrease in Net Assets Resulting from Operations $(14,628,151)
============
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the For the Period
Year Ended April 30, 1993++
Increase (Decrease) in Net Assets: Oct. 31, 1994 to Oct. 31, 1993
<S> <S> <C> <C>
Operations: Investment income--net $ 7,389,100 $ 3,383,078
Realized gain (loss) on investments--net (6,831,186) 310,398
Change in unrealized appreciation on investments--net (15,186,065) 5,423,300
------------ ------------
Net increase (decrease) in net assets resulting from operations (14,628,151) 9,116,776
------------ ------------
Dividends & Investment income--net:
Distributions Common Stock (6,182,613) (2,374,201)
to Share- Preferred Stock (1,194,786) (463,951)
holders Realized gain on investments--net:
(Note 1g): Common Stock (267,833) --
Preferred Stock (42,571) --
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (7,687,803) (2,838,152)
------------ ------------
Common Stock Net proceeds from issuance of Common Stock -- 99,455,407
Transactions Proceeds from issuance of Preferred Stock -- 49,000,000
(Notes 1e Value of shares issued to Common Stock shareholders in reinvestment of
& 4): dividends and distributions 933,698 1,350,145
Offering and underwriting costs from the issuance of Preferred Stock 23,256 (904,687)
------------ ------------
Net increase in net assets derived from capital stock transactions 956,954 148,900,865
------------ ------------
Net Assets: Total increase (decrease) in net assets (21,359,000) 155,179,489
Beginning of period 155,279,494 100,005
------------ ------------
End of period* $133,920,494 $155,279,494
============ ============
<PAGE>
<FN>
*Undistributed investment income--net $ 556,627 $ 544,926
============ ============
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived For the For the Period
from information provided in the financial statements. Year Ended April 30, 1993++
October 31, to October 31,
Increase (Decrease) in Net Asset Value: 1994 1993
<S> <C> <C>
Per Share Net asset value, beginning of period $ 14.90 $ 14.18
Operating -------- --------
Performance: Investment income--net 1.03 .48
Realized and unrealized gain (loss) on investments--net (3.06) .80
-------- --------
Total from investment operations (2.03) 1.28
-------- --------
Less dividends and distributions to Common Stock shareholders:
Investment income--net (.86) (.34)
Realized gain on investments--net (.04) --
-------- --------
Total dividends and distributions (.90) (.34)
-------- --------
Capital charge resulting from issuance of Common Stock -- (.03)
-------- --------
Effect of Preferred Stock activity++++:
Dividends and distributions to Preferred Stock shareholders:
Investment income--net (.17) (.06)
Realized gain on investments--net (.01) --
Capital charge resulting from issuance of Preferred Stock -- (.13)
-------- --------
Total effect of Preferred Stock activity (.18) (.19)
-------- --------
Net asset value, end of period $ 11.79 $ 14.90
======== ========
Market price per share, end of period $ 10.50 $ 14.75
======== ========
<PAGE>
Total Investment Based on market price per share (23.65%) 0.59%+++
Return:** ======== ========
Based on net asset value per share (15.13%) 7.49%+++
======== ========
Ratios to Average Expenses, net of reimbursement .64% .35%*
Net Assets: ======== ========
Expenses .74% .79%*
======== ========
Investment Income--net 5.06% 4.75%*
======== ========
Supplemental Net assets, net of Preferred Stock, end of period (in thousands) $ 84,920 $106,279
Data: ======== ========
Preferred Stock outstanding, end of period (in thousands) $ 49,000 $ 49,000
======== ========
Portfolio turnover 74.77% 10.81%
======== ========
Dividends Per Investment income--net $ 1,219 $ 483
Share on Preferred
Stock Outstanding:
*Annualized.
**Total investment returns based on market value, which can be signifi-
cantly greater or lesser than the net asset value, may result in
substantially different returns. Total investment returns exclude the
effects of sales loads.
***Do not reflect the effect of dividends to Preferred Stock shareholders.
++Commencement of Operations.
++++The Fund's Preferred Stock was issued on June 1, 1993.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniVest New York Insured Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 as a non-diversified,
closed-end management investment company. The Fund's Common
Stock is listed on the New York Stock Exchange under the symbol
MVY. 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 market and are valued at the most recent bid
price or yield equivalent as obtained by the Fund's pricing service
from dealers that make markets in such securities. Financial futures
contracts, which are traded on exchanges, are valued at their closing
prices as of the close of such exchanges. Options, which are traded
on exchanges, are valued at their last sale price as of the close of
such exchanges or, lacking any sales, at the last available bid price.
Securities with remaining maturities of sixty days or less are valued
at amortized cost, which approximates market value. Securities for
which market quotations are not readily available are valued at
fair value as determined in good faith by or under the direction
of the Board of Directors of the Fund.
(b) 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 con-
tract is closed, the Fund records a realized gain or loss equal to the
difference between the value of the contract at the time it was
opened and the value at the time it was closed.
(c) Income taxes--It is the Fund's policy to comply with the require-
ments of the Internal Revenue Code applicable to regulated invest-
ment companies and to distribute substantially all of its taxable
income to its shareholders. Therefore, no Federal income tax pro-
vision is required.
(d) Security transactions and investment income--Security trans-
actions are recorded on the dates the transactions are entered into
(the trade dates). Interest income is recognized on the accrual basis.
Original issue 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 and offering expenses--Deferred organiza-
tion expenses are amortized on a straight-line basis over a five-year
period beginning with the commencement of operations of the Fund.
Direct expenses relating to the public offering of the Fund's Common
and Preferred Stock were charged to capital at the time of issuance of
the shares.
(f) Non-income producing investments--Written and purchased
options are non-income producing investments.
<PAGE>
(g) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital gains
are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions with
Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). Effective January 1, 1994,
the investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned subsidiary
of ML & Co. The limited partners are ML & Co. and Fund Asset
Management, Inc. ("FAMI"), which is also an indirect wholly-owned
subsidiary of ML & Co.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and 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. For the year ended October
31, 1994, FAM earned fees of $727,405, of which $158,661 was volun-
tarily waived.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of FAM, FAMI, 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, 1994 were $104,670,892 and
$119,986,174, respectively.
NOTES TO FINANCIAL STATEMENTS (concluded)
Net realized and unrealized gains (losses) as of October 31, 1994 were
as follows:
Realized
Gains Unrealized
(Losses) Losses
Long-term investments $(7,101,924) $(9,762,765)
Short-term investments (687) --
Financial futures contracts 271,425 --
----------- -----------
Total $(6,831,186) $(9,762,765)
=========== ===========
As of October 31, 1994, net unrealized depreciation for Federal
income tax purposes aggregated $9,762,765, all of which related to
depreciated securities. The aggregate cost of investments at October
31, 1994 for Federal income tax purposes was $134,998,114.
<PAGE>
4. Capital Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of capital stock,
including Preferred Stock, par value $.10 per share, all of which
were initially classified as Common Stock. The Board of Directors is
authorized, however, to reclassify any unissued shares of capital
stock without approval of holders of Common Stock.
Common Stock
For the year ended October 31, 1994, shares issued and outstanding
increased by 72,121 to 7,204,432 as a result of dividend reinvestment.
At October 31, 1994, total paid-in capital amounted to $100,957,824.
Preferred Stock
Auction Market Preferred Stock ("AMPS") are shares of Preferred
Stock of the Fund that entitle their holders to receive cash dividends
at an annual rate that may vary for the successive dividend periods.
The yield in effect at October 31, 1994 was 2.70%.
In connection with the offering of AMPS, the Fund reclassified 980
shares of unissued capital stock as AMPS. For the year ended October
31, 1994, there were 980 shares of AMPS authorized, issued and
outstanding with a liquidation preference of $50,000 per share,
plus accumulated and unpaid dividend of $36,725. Effective
December 1, 1994, as a result of a two-for-one stock split, there will
be 1,960 AMPS shares 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 year ended
October 31, 1994, MLPF&S, an affiliate of FAMI, earned $117,518 as
commissions.
5. Capital Loss Carryforward:
At October 31, 1994, the Fund had a capital loss carryforward of
approximately $6,831,000, all of which expires in 2002. This amount
will be available to offset like amounts of any future taxable gains.
6. Subsequent Event:
On November 8, 1994, the Fund's Board of Directors declared an
ordinary income dividend to Common Stock shareholders in the
amount of $0.068202 per share, payable on November 29, 1994 to
shareholders of record as of November 18, 1994.
<PAGE>
<AUDIT-REPORT>
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Directors,
MuniVest New York Insured Fund, Inc.
We have audited the accompanying statement of assets, liabilities and
capital of MuniVest New York Insured Fund, Inc., including the sched-
ule of investments, as of October 31, 1994, and the related statement
of operations for the year then ended and the statements of changes
in net assets and financial highlights for the year then ended and
for the period from April 30, 1993 (commencement of operations) to
October 31, 1993. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and 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 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 as of
October 31, 1994 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.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of MuniVest New York Insured Fund, Inc. at October 31,
1994, the results of its operations for the year then ended and the
changes in its net assets and financial highlights for the year then
ended and for the period from April 30, 1993 to October 31, 1993, in
conformity with generally accepted accounting principles.
(Ernst & Young LLP)
New York, New York
December 8, 1994
</AUDIT-REPORT>
<PAGE>
IMPORTANT TAX INFORMATION (unaudited)
All of the net investment income distributions paid monthly by
MuniVest New York Insured Fund, Inc. during its taxable year
ended October 31, 1994 qualify as tax-exempt interest dividends
for Federal income tax purposes. Additionally, the following
table summarizes the per share capital gains distributions
paid by the Fund during the year:
Payable Short-Term Long-Term
Date Capital Gains Capital Gains
Common Stock Shareholders: 12/30/93 $ .037552 --
Preferred Stock Shareholders: 11/19/93 $39.50 --
11/26/93 $ 3.94 --
Please retain this information for your records.
PER SHARE INFORMATION (unaudited)
<TABLE>
Per Share Selected
Quarterly Financial
Data*
<CAPTION>
Net Realized Unrealized Dividends/Distributions
Investment Gains Gains Net Investment Income Capital Gains
For the Period Income (Losses) (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
April 30, 1993++ to July 31, 1993 $.22 $ .01 $ .17 $.11 $.02 -- --
August 1, 1993 to October 31, 1993 .26 .03 .59 .23 .04 -- --
November 1, 1993 to January 31, 1994 .26 .01 .20 .22 .04 $.04 $.01
February 1, 1994 to April 30, 1994 .26 .02 (2.27) .22 .04 -- --
May 1, 1994 to July 31, 1994 .26 (.01) .28 .21 .04 -- --
August 1, 1994 to October 31, 1994 .25 (.97) (.32) .21 .05 -- --
<PAGE>
<CAPTION>
Net Asset Value Market Price**
For the Period High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
April 30, 1993++ to July 31, 1993 $14.54 $14.10 $15.25 $14.25 378
August 1, 1993 to October 31, 1993 15.21 14.28 15.375 14.125 317
November 1, 1993 to January 31, 1994 15.07 14.37 15.00 13.50 531
February 1, 1994 to April 30, 1994 15.01 12.08 15.00 11.75 400
May 1, 1994 to July 31, 1994 13.61 12.40 13.00 11.625 527
August 1, 1994 to October 31, 1994 13.11 11.79 12.375 10.375 926
<FN>
++Commencement of Operations.
*Calculations are based upon shares of Common Stock outstanding at the end of each period.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
