MUNIVEST
NEW YORK
INSURED
FUND, INC.
Semi-Annual Report April 30, 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, cir-
cular 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 share-
holders, 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.
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 inter-
est earned on these investments is paid to Common Stock share-
holders 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.
<PAGE>
To illustrate these concepts, assume a fund's Common Stock cap-
italization 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.
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 Com-
mon 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
<PAGE>
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
110 Washington Street
New York, New York 10286
NYSE Symbol
MVY
DEAR SHAREHOLDER
For the six-month period ended April 30, 1994, the Common Stock of
MuniVest New York Insured Fund, Inc. earned $0.476 per share in-
come dividends, which includes earned and unpaid dividends of
$0.069. This represents a net annualized yield of 7.49%, based
on a month-end per share net asset value of $12.81. Over the same
period, the total investment return on the Fund's Common Stock was
- - -10.99%, based on a change in per share net asset value from
$14.90 to $12.81, and assuming reinvestment of $0.482 per share
income dividends.
For the six-month period ended April 30, 1994, the Fund's Auction
Market Preferred Stock had an average yield of 2.22%.
The Environment
Inflationary expectations and investor sentiment changed for the
worse during the three-month period ended April 30, 1994. Follow-
ing stronger-than-expected economic results through year-end 1993,
the Federal Reserve Board broke with tradition on February 4, 1994
and publicly announced a modest 25 basis point (0.25%) increase
in short-term interest rates. At the March 22, 1994 meeting of
the Federal Open Market Committee, the Federal Reserve Board again
raised the Federal Funds rate by 25 basis points, followed by an-
other 25 basis point increase on April 18, 1994.
<PAGE>
Rather than view the Federal Reserve Board's first tightening move
as a preemptive strike against inflation, fixed-income investors
focused on Chairman Greenspan's implicit promise of further tight-
ening should the rate of inflation accelerate, and bond prices de-
clined sharply. The setback in the bond market was also reflected
in greater stock market volatility. While the second and third
increases in the Federal Funds rate were less of a surprise, in-
vestors remained concerned that interest rates would trend upward
sharply as the central bank aggressively attempted to contain the
inflationary pressures of an improving economy. At the same time,
highly leveraged investors were forced to liquidate positions in
the face of declining stock and bond prices. Investor confidence
was not restored with the announcement of the surprisingly slow
2.6% gross domestic product growth rate for the first calendar
quarter of 1994. Instead, investors focused on the higher-than-
expected (but still moderate) broad inflation measures and be-
came concerned that business activity was beginning to stagnate
as inflationary pressures were increasing.
The volatility in the US capital markets was mirrored in inter-
national markets during the period. Political and economic de-
velopments, along with concerns of heightened global infla-
tionary pressures, led to a sell-off in most capital markets,
especially the emerging markets that had appreciated strongly
in 1993.
The Municipal Market
During the six months ended April 30, 1994, tax-exempt bond
yields exhibited considerable volatility as they rose to their
highest level in the past two years. As measured by the Bond
Buyer Revenue Bond Index, the yield on newly issued muni-
cipal bonds maturing in 30 years rose over 90 basis points
to 6.42% by the end of April. Yields on seasoned municipal
revenue bonds rose by over 100 basis points in sympathy
with the equally dramatic increase in US Treasury bond yields.
By the end of April, yields of US Treasury securities rose by
over 95 basis points to approximately 7.30%.
<PAGE>
Long-term tax-exempt bond yields were essentially unchanged
from the end of October 1993 to the end of January 1994. How-
ever, on a weekly basis, tax-exempt bond yields fluctuated by
as much as 15 basis points as investors were unable to recon-
cile the rapid economic growth seen late last year with con-
tinued low inflation. Following the initial interest rate
increase by the Federal Reserve Board in early February, muni-
cipal bond prices began to erode in concert with taxable bond
prices as investors began to sell securities in anticipation
of further interest rate increases. This fear led investors to
withdraw from the tax-exempt market. From early February to
the end of March, total assets of all tax-exempt bond funds de-
clined by $14 billion to $247 billion. This decline in investor
demand, coupled with fears that the robust economic recovery
seen during the fourth quarter of 1993 would continue well
into 1994, helped push municipal bond yields higher in Febru-
ary and March. Attracted by tax-exempt yields in excess of
6.25%, investor demand returned in April, allowing yields to
decline approximately 15 basis points to end the April period
at approximately 6.40%.
A rise in tax-exempt bond yields the magnitude of that exper-
ienced over the past six months has not been seen since 1987
when municipal bond rates rose 250 basis points between March
and October of that year. It is very important to note that the
recent municipal bond price declines were largely the result
of consistent and insistent selling pressures over the last
two months. In 1987, the tax-exempt bond market was much more
volatile and, at times, chaotic as investors sought to liqui-
date positions without concern for fundamental value. For the
most part, the recent price deterioration has been orderly,
and the municipal bond market's liquidity and integrity have
not been challenged or jeopardized.
To a large extent, the municipal bond market has continued to
be supported by its strong technical position. New-issue volume
for the last six months has been less than $105 billion. This
represents a decline of approximately 20% versus the compar-
able period a year ago. This decline was expected and has
been discussed in previous shareholder reports. This reduced
issuance has minimized potential selling pressure in recent
months since institutional investors have been wary of sell-
ing appreciable amounts of securities that they may be un-
able to replace later this year at any price level. We ex-
pect this decline in issuance to continue since we antici-
pate recent yield increases to significantly impact future
municipal bond issuance. Just as higher mortgage rates slow
home mortgage refinancings, the recent rise in bond yields
will prevent bond refinancings from becoming the driving force
in bond issuance in 1994 as they were in 1993.
<PAGE>
Despite recent price declines, tax-exempt securities remain
among the most attractive investment alternatives available.
After the recent yield increases, longer-term municipal sec-
urities yield approximately 90% of comparable US Treasury yields.
Purchasers of these municipal bonds also accrue substantial
after-tax yield advantages. To investors in the 39% marginal
Federal income tax bracket, the purchase of a municipal bond
yielding 6.50% represents an after-tax equivalent of 10.65%.
With prevailing estimates of 1994 inflation at no more than
3%-4%, real after-tax rates in excess of 6.50% easily compen-
sate longer-term investors for much of the price volatility
recently experienced.
Portfolio Strategy
The New York sector of the tax-exempt arena closely mirrored,
and in some instances exceeded the volatility seen within the
municipal market in general during the six months ended April 30,
1994. Faced with the same factors which weighed on the market
in general, the relative performance of New York tax-exempt
issues was further heightened by a significant increase in the
volume of securities offered for sale by New York State, New
York City and each of their respective political subdivisions.
While national issuance during the period contracted by more
than 19% when compared to the same period last year, New York
tax-exempt volume increased by more than 45%, soaring to over
$16 billion and representing the largest single state issuer
of debt in the nation. As such, while general market municipal
bonds found a certain measure of support in the positive tech-
nical foundation underlying their trading, New York tax-exempt
issues were forced to adjust at various points to levels which
enabled both local and national participants to absorb supply.
Mitigating these adjustments in yields was the evolution among
investors of a significantly more positive outlook for the
fundamental credit prospects within the State as both the nat-
ional and regional economies continue to show signs of im-
provement.
During the six months ended April 30, 1994, portfolio deci-
sions were guided by a conservative investment strategy. While
the Fund kept a near fully invested stance throughout the
period, its structure at the start of the period was less aggres-
sive than general market fundamentals may have warranted. As
the issuance of New York municipal debt increased and the out-
look for interest rates in general became more uncertain, we
sought to capitalize on the opportunities available in such an
environment by drawing down the average portfolio maturity and
focusing on the generation of tax-exempt income. To implement
this strategy, we purchased issues offering strong qualities
of protection from redemption prior to maturity and superior
qualities of creditworthiness relative to the universe of
New York tax-exempt bonds.
<PAGE>
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 ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
May 25, 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 below and at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
GO General Obligation Bonds
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
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--96.3% AAA Aaa $ 2,750 Albany, New York, Municipal Water Finance Authority,
Water and Sewer System Revenue Refunding Bonds,
Series A, 5.50% due 12/01/2022 (b) $ 2,480
<PAGE>
AAA Aaa 1,500 Broome County, New York, COP, Public Safety Facility
Revenue Bonds, 5.25% due 4/01/2015 (e) 1,329
AAA Aaa 2,900 Buffalo, New York, Sewer Authority Revenue Refunding
Bonds, Sewer System, Series G, 5% due 7/01/2012 (b) 2,555
Metropolitan Transportation Authority, New York,
Commuter Facilities Revenue Refunding Bonds (e):
AAA Aaa 4,000 Series A, 5.50% due 7/01/2017 3,639
AAA Aaa 3,000 Series B, 6.25% due 7/01/2022 3,006
AAA Aaa 3,000 Metropolitan Transportation Authority, New York, Service Contract
Transportation Facilities Bonds, Series P, 5.75% due 7/01/2015 (d) 2,842
Metropolitan Transportation Authority, New York, Transportation
Facilities Revenue Bonds:
AAA Aaa 2,500 Refunding, Series M, 6% due 7/01/2014 (d) 2,445
AAA Aaa 4,545 Series J, 5.50% due 7/01/2022 (b) 4,095
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) 5,811
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) 1,341
New York City, New York, GO, Revenue Bonds, UT:
AAA Aaa 1,155 Refunding, Series A, 5.75% due 8/01/2011 (b) 1,121
AAA Aaa 2,005 Refunding, Series C, 6% due 8/01/2012 (c) 1,974
AAA Aaa 3,300 Refunding, Series D, 6% due 8/01/2012 (d) 3,249
A- Baa1 2,350 Series B, 6.75% due 10/01/2005 2,444
AAA Aaa 10,000 New York City, New York, Health and Hospital Authority,
Local Government Revenue Refunding Bonds, Series A, 5.75%
due 2/15/2022 (c) 9,294
NR NR 300 New York City, New York, IDA, IDR (Japan Airlines Company
Ltd. Project), VRDN, AMT, 3.05% due 11/01/2015 (a) 300
A1+ VMIG1 200 New York City, New York, Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds, VRDN, Series C, 2.75%
due 6/15/2022 (a)(b) 200
New York City, New York, Municipal Water Finance Authority,
Water and Sewer System Revenue Refunding Bonds, Series A:
AAA Aaa 2,750 5.875% due 6/15/2013 (c) 2,647
AAA Aaa 2,500 5.75% due 6/15/2018 (b) 2,336
New York State Dormitory Authority Revenue Bonds:
BBB+ Baa1 3,500 (Court Facilities Lease), Series A, 5.50% due 5/15/2023 3,013
AAA Aaa 1,125 (Insured-Colgate University), 5.625% due 7/01/2023 (b) 1,031
AAA Aaa 2,900 (New York Public Library), Series A, 5.875% due 7/01/2022 (e) 2,756
AAA Aaa 2,100 (New York University), 6% due 7/01/2015 (b) 2,051
<PAGE>
New York State Dormitory Authority Revenue Refunding Bonds:
AAA Aaa 3,705 (Insured-New York University), Series A, 5% due 7/01/2008 (e) 3,401
NR VMIG1 100 (Oxford University Press, Inc.), VRDN, 2.80% due 7/01/2023 100
AAA Aaa 1,500 (State University Educational Facilities), Series B, 5.25% due
5/15/2004 (b) 1,478
A1+ NR 300 New York State Energy Research and Development Authority,
PCR (Niagara Power Corporation Project), Series B, VRDN,
AMT, 3.15% due 7/01/2027 (a) 300
New York State Energy Research and Development Authority
Revenue Bonds, AMT:
A+ Aa3 4,000 (Con Edison Company, Inc. Project), 6% due 3/15/2028 3,717
BB+ Baa3 4,000 Electric Facilities (Long Island Lighting Company), Series C,
6.90% due 8/01/2022 3,965
AAA Aaa 2,295 Gas Facilities (Brooklyn Union Gas Company), Series C,
5.60% due 6/01/2025 (e) 2,066
New York State Housing Finance Agency, Service Contract
Obligation, Revenue Refunding Bonds, Series C:
AAA Aaa 3,000 5.875% due 9/15/2014 (d) 2,895
BBB Baa1 3,500 6.125% due 3/15/2020 3,315
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 (f) 1,871
AAA Aaa 5,620 (Mental Health Services Facilities Improvement),
Series D, 5.90% due 8/15/2022 (c) 5,353
BBB+ Baa1 2,580 (Mental Health Services Facilities Improvement),
Series F, 6.50% due 8/15/2012 2,577
BBB+ Baa1 1,790 (Mental Health Services Facilities Improvement),
Series F, 6.50% due 2/15/2019 1,770
New York State Medical Care Facilities, Finance Agency
Revenue Bonds, Series A:
AAA Aaa 6,975 (Mental Health Services Facilities), 5.80% due 8/15/2022 (c) 6,551
AAA Aaa 1,885 (North Shore University--Glen Cove), 5.125% due 11/01/2012 (e) 1,675
AAA Aaa 5,875 (Saint Peter's Hospital Project), 5.375% due 11/01/2020 (c) 5,207
AAA Aaa 16,675 New York State Urban Development Corporation, Revenue
Refunding Bonds (Correctional Facilities), 5.375%
due 1/01/2012 (e) 15,394
<PAGE>
AAA Aaa 4,200 Niagara Falls, New York, Commission Toll Bridge,
Revenue Refunding Bonds, Series B,5.25% due 10/01/2015 (b) 3,721
AAA Aaa 2,500 Port Authority of New York and New Jersey, Consolidated Bonds,
AMT, 1984 Series, 6% due 1/15/2028 (e) 2,433
AAA Aaa 5,840 Suffolk County, New York, IDA Revenue Bonds
(Southwest Sewer Systems), 6% due 2/01/2008 (b) 5,883
Puerto Rico--2.3% AAA Aaa 3,215 Puerto Rico Commonwealth GO, 5.85% due 7/01/2009 (e) 3,232
Total Investments (Cost--$148,342)--98.6% 138,863
Other Assets Less Liabilities--1.4% 2,028
--------
Net Assets--100.0% $140,891
========
<FN>
(a) 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, 1994.
(b) FGIC Insured.
(c) AMBAC Insured.
(d) CAPMAC Insured.
(e) MBIA Insured.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of April 30, 1994
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$148,341,758) (Note 1a) $138,863,112
Cash 24,326
Interest receivable 2,419,620
Deferred organization expenses (Note 1e) 28,017
Prepaid expenses and other assets 4,055
------------
Total assets 141,339,130
------------
<PAGE>
Liabilities: Payables:
Dividends to shareholders $ 300,100
Investment adviser (Note 2) 43,045 343,145
-------------
Accrued expenses and other liabilities 105,264
------------
Total liabilities 448,409
------------
Net Assets: Net assets $140,890,721
============
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 (7,170,880 shares issued and
outstanding) $ 717,088
Paid-in capital in excess of par 99,817,709
Undistributed investment income--net 569,734
Undistributed realized capital gains--net 264,836
Unrealized depreciation on investments--net (9,478,646)
-------------
Total--Equivalent to $12.81 net asset value per share of Common Stock
(market price--$12.625) 91,890,721
------------
Total capital $140,890,721
============
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six
Months Ended
April 30, 1994
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 4,154,612
Income
(Note 1d):
<PAGE>
Expenses: Investment advisory fees (Note 2) $ 375,063
Commission fees (Note 4) 62,054
Professional fees 38,659
Accounting services (Note 2) 18,071
Transfer agent fees 16,985
Printing and shareholder reports 11,860
Directors' fees and expenses 11,317
Listing fees 7,877
Custodian fees 4,020
Pricing fees 3,368
Amortization of organization expenses (Note 1e) 3,133
Other 3,730
------------
Total expenses before reimbursement 556,137
Reimbursement of expenses (Note 2) (119,408)
------------
Total expenses after reimbursement 436,729
------------
Investment income--net 3,717,883
------------
Realized & Realized gain on investments--net 264,842
Unrealized Change in unrealized appreciation/depreciation on investments--net (14,901,946)
Gain (Loss) ------------
on Invest- Net Decrease in Net Assets Resulting from Operations $(10,919,221)
ments--Net ============
(Notes
1d & 3):
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the Period
Months Ended April 30, 1993++
April 30, to October 31,
Increase (Decrease) in Net Assets: 1994 1993
<S> <S> <C> <C>
Operations: Investment income--net $ 3,717,883 $ 3,383,078
Realized gain on investments--net 264,842 310,398
Change in unrealized appreciation/depreciation on investments--net (14,901,946) 5,423,300
------------ ------------
Net increase (decrease) in net assets resulting from operations (10,919,221) 9,116,776
------------ ------------
<PAGE>
Dividends & Investment income--net:
Distribu- Common Stock (3,173,489) (2,374,201)
tions to Preferred Stock (519,586) (463,951)
Shareholders 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 (4,003,479) (2,838,152)
------------ ------------
Common & Pre- Net proceeds from issuance of Common Stock -- 99,455,407
ferred Stock Proceeds from issuance of Preferred Stock -- 49,000,000
Transactions Offering and underwriting costs resulting from the issuance of Preferred Stock -- (904,687)
(Notes Value of shares issued to Common Stock shareholders in reinvestment of dividends 533,927 1,350,145
1e & 4): ------------ ------------
Net increase in net assets derived from capital stock transactions 533,927 148,900,865
------------ ------------
Net Assets: Total increase (decrease) in net assets (14,388,773) 155,179,489
Beginning of period 155,279,494 100,005
------------ ------------
End of period* $140,890,721 $155,279,494
============ ============
<FN>
*Undistributed investment income--net $ 569,734 $ 544,926
============ ============
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived For the Six For the Period
from information provided in the financial statements. Months Ended April 30, 1993++
April 30, to October 31,
Increase (Decrease) in Net Asset Value: 1994 1993
<S> <S> <C> <C>
Per Share Net asset value, beginning of period $ 14.90 $ 14.18
Operating ------------ ------------
Performance: Investment income--net .52 .48
Realized and unrealized gain (loss) on investments--net (2.04) .80
------------ ------------
Total from investment operations (1.52) 1.28
------------ ------------
Less dividends and distributions to Common Stock shareholders:
Investment income--net (.44) (.34)
Realized gain on investments--net (.04) --
------------ ------------
Total dividends and distributions to Common Stock shareholders (.48) (.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 (.08) (.06)
Realized gain on investments--net (.01) --
------------ ------------
Capital charge resulting from issuance of Preferred Stock -- (.13)
------------ ------------
Total effect of Preferred Stock activity (.09) (.19)
------------ ------------
Net asset value, end of period $ 12.81 $ 14.90
============ ============
Market price per share, end of period $ 12.625 $ 14.75
============ ============
Total Based on market price per share (11.38%)+++ 0.59%+++
Investment ============ ============
Return:** Based on net asset value per share (10.99%)+++ 7.49%+++
============ ============
<PAGE>
Ratios to Expenses, net of reimbursement .58%* .35%*
Average Net ============ ============
Assets:*** Expenses .74%* .79%*
============ ============
Investment income--net 4.94%* 4.75%*
============ ============
Supplemental Net assets, net of Preferred Stock, end of period (in thousands) $ 91,891 $ 106,279
Data: ============ ============
Preferred Stock outstanding, end of period (in thousands) $ 49,000 $ 49,000
============ ============
Portfolio turnover 30.53% 10.81%
============ ============
Dividends Investment income--net $ 530 $ 483
Per Share on
Preferred
Stock
Outstanding:
<FN>
++Commencement of Operations.
++++The Fund's Preferred Stock was issued on June 1, 1993.
*Annualized.
**Total investment returns based on market value, which can be significantly greater or lesser than the net asset
value, result in substantially different returns. Total investment returns exclude the effects of sales loads.
***Do not reflect the effect of dividends to Preferred Stock shareholders.
+++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 investment management 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. 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 inter-
est 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 re-
quirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income
tax provision is required.
(d) Security transactions and investment income--Security transac-
tions 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 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 shares
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 re-
corded on ex-dividend dates.
2. Investment Advisory Agreement and Transactions with
Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). Effective January 1, 1994,
the investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc., an indirect wholly-owned subsidiary of
ML & Co. The limited partners are ML & Co. and Merrill Lynch
Investment Management, Inc. ("MLIM"), which is also an indirect
wholly-owned subsidiary of ML & Co.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee at an annual rate of .50% of
the Fund's average weekly net assets. For the six months ended
April 30, 1994, FAM earned fees of $375,063, of which $119,408 was
voluntarily waived.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, MLIM, Merrill Lynch, Pierce, Fenner & Smith Inc.
("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securi-
ties, for the period ended April 30, 1994 were $45,112,930 and
$44,784,548, respectively.
Net realized and unrealized gains (losses) as of April 30, 1994 were
as follows:
Realized Unrealized
Gains (Losses) Losses
Long-term investments $ 265,529 $(9,478,646)
Short-term investments (687) --
--------- -----------
Total $ 264,842 $(9,478,646)
========= ===========
<PAGE>
As of April 30, 1994, net unrealized depreciation for Federal in-
come tax purposes aggregated $9,478,646, of which $32,601 related
to appreciated securities and $9,511,247 related to depreciated sec-
urities. The aggregate cost of investments at April 30, 1994 for
Federal income tax purposes was $148,341,758.
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 six months ended April 30, 1994, shares issued and out-
standing increased by 38,569 to 7,170,880 as a result of dividend
reinvestment. At April 30, 1994, total paid-in capital amounted
to $100,534,797.
Preferred Stock
Auction Market Preferred Stock ("AMPS") are shares of Preferred
Stock of the Fund that entitle their holders to receive cash divi-
dends at an annual rate that may vary for the successive dividend
periods. The yield in effect at April 30, 1994 for Series A was
2.35%.
In connection with the offering of AMPS, the Fund reclassified
980 shares of unissued capital stock as AMPS. For the six months
ended April 30, 1994, there were 980 AMPS authorized, issued and
outstanding with a liquidation preference of $50,000 per share,
plus accumulated and unpaid dividend of $31,689.
The Fund pays commissions to certain broker-dealers at the end of
each auction at the annual rate of one-quarter of 1% calculated on
the proceeds of each auction. For the period ended April 30, 1994,
MLPF&S, an affiliate of MLIM, earned $59,201 as commissions.
5. Subsequent Event:
On May 6, 1994, the Fund's Board of Directors declared an ordinary
income dividend to Common Stock shareholders in the amount of
$.068628 per share, payable on May 27, 1994 to shareholders of
record as of May 17, 1994.
<PAGE>
PER SHARE INFORMATION
<TABLE>
Per Share Selected
Quarterly
Financial Data*
<CAPTION>
Net Unrealized Dividends/Distributions
Investment Realized Gains Net Investment Income Capital Gains
For the Period Income Gains (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
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 .02 .96 .22 .04 $.04 $.01
February 1, 1994 to April 30, 1994 .26 .01 (3.03) .22 .04 -- --
<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 14.125 417
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
<FN>
++Commencement of Operations.
*Calculations are based upon Common Stock outstanding at the end
of each period.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
