MUNIVEST
NEW YORK
INSURED
FUND, INC.
FUND LOGO
Semi-Annual Report
April 30, 1995
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.
Of course, increases in short-term interest rates would reduce
(and even eliminate) the dividends on the Common Stock.
<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 or eliminated
completely. 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
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 six months ended April 30, 1995,
the Common Stock of MuniVest New York
Insured Fund, Inc. earned $0.377 per
share income dividends, which included
earned and unpaid dividends of $0.061.
This represents a net annualized yield
of 6.06%, based on a month-end net
asset value of $12.55 per share. Over the
same period, the total investment return
on the Fund's Common Stock was
+10.12%, based on a change in per share
net asset value from $11.79 to $12.55,
and assuming reinvestment of $0.384
per share income dividends.
The average yield of the Fund's Auction
Market Preferred Stock for the six
months ended April 30, 1995 was 3.76%.
The Environment
During the six months ended April 30,
1995, the perception that the US
economy was overheating and infla-
tionary pressures were increasing gave
way to a more benign economic outlook.
With more signs of slowing growth,
investors now appear to be forecasting
a "soft landing" for the US economy.
Although gross domestic product was
reported to have increased at a revised
5.1% rate during the final quarter of
1994, declines in other indicators such
as new home sales and durable goods
orders registered thus far in 1995 have
led investors to anticipate that the econ-
omy is losing enough momentum to keep
inflation under control and preclude
further significant monetary policy
tightening by the Federal Reserve Board.
A further indication of a slowing econ-
omy was the reported decline in the
Index of Leading Economic Indicators
for March.
<PAGE>
As US stock and bond markets have
risen on more positive economic news,
the value of the US dollar has reached
new lows relative to the yen and the
Deutschemark. Persistent trade deficits
and exports of capital from the United
States have kept the US currency in
a decade-long decline relative to the
Japanese and German currencies. Over
the longer term, since the United States
has the highest productivity among
industrialized nations and among the
lowest labor costs, demand for US dollar-
denominated assets may improve. How-
ever, a reduction of the still-widening
US trade deficit may be necessary before
the US dollar appreciates substantially
relative to the yen and the Deutschemark.
The first months of 1995 have been very
positive for the stock and bond markets.
Continued signs of a moderating expan-
sion and well-contained inflationary
pressures would provide further assur-
ance that the peak in interest rates is
behind us. On the other hand, indications
of reaccelerating growth and further
significant monetary policy tightening
by the Federal Reserve Board would be
a decided negative for the US finan-
cial markets.
The Municipal Market
During the six-month period ended
April 30, 1995, the tax-exempt bond
market gradually recouped much of the
losses sustained during 1994. Signs of a
weakening domestic economy and
ongoing moderate inflationary pres-
sures have fostered an environment of
declining interest rates. Since October 31,
1994, A-rated, uninsured municipal
revenue bond yields, as measured by
the Bond Buyer Revenue Bond Index,
have declined over 65 basis points
(0.65%) to close the six-month period
ended April 30, 1995 at 6.29%. Tax-
exempt bond yields initially continued
to climb in late 1994, reaching a high
of 7.37% in late November 1994. Munici-
pal bond yields have since declined over
100 basis points from their recent highs
and are presently lower than they were
a year ago. US Treasury bond yields have
experienced similar declines over the
last six months to end the April period
at 7.34%.
<PAGE>
Much of the recent improvement in the
tax-exempt bond market, however, has
occurred over the last three months.
During this most recent quarter, munici-
pal bond yields have fallen approximately
50 basis points, while US Treasury bond
yields declined only 35 basis points.
Tax-exempt bond yields declined more
than their taxable counterparts in recent
months, largely in response to the
significant decline in new bond issuance
in recent quarters. Over the last six
months, less than $60 billion in new
long-term municipal securities were
underwritten, a decline of nearly 45%
versus the comparable period a year
earlier. Issuance was particularly low
this past January and February, with
monthly volume of less than $8 billion.
These levels are the lowest monthly
totals since the mid-1980s.
To compound the municipal market's
already strong technical posture, both
institutional and individual investors
have seen significant cash inflows in
recent months. These assets were
derived from regular coupon payments,
bond maturities and the proceeds from
early bond calls and redemptions. It
has been estimated that investors
received over $20 billion in principal
redemptions and coupon income in
January 1995 alone. With monthly
issuance in the $10 billion range thus
far this year, the current supply/demand
imbalance has dominated the municipal
market and bond prices have risen
accordingly. The tax-exempt bond
market's technical position is likely to
remain very strong throughout most
of 1995. Investors are expected to receive
almost $40 billion in principal and
coupon payments on July 1, 1995.
Investor proceeds from all sources have
been estimated to exceed $200 billion
for all of 1995. Estimates of total new
bond issuance for 1995 have continued
to be lowered with most estimates now
in the $125 billion range. Investors
should find it increasingly difficult to
replace existing holdings as they mature
and to reinvest coupon income in such
an environment.
<PAGE>
The municipal bond market's outper-
formance thus far this year caused the
tax-exempt market to become tem-
porarily expensive relative to its taxable
counterpart in late April. Investor con-
cerns regarding the international
currency situation and the future impact
of proposed revisions to US taxation
policies upon the tax advantage inherent
to municipal bonds have combined to
cause tax-exempt bond yields to increase
marginally in recent weeks. Municipal
bond yields have risen approximately
15 basis points from their lows in mid-
April 1995. Long-term US Treasury bond
yields have remained essentially stable.
Such an underperformance by the tax-
exempt bond market is likely to be
limited in duration. The recent increase
in tax-exempt bond yields has already
begun to attract institutional investors
since some municipal bonds yielding in
excess of 85% of US Treasury bond yields
are again available. Also, concerns
regarding the implication for municipal
bonds' tax advantage resulting from
various proposed tax law changes (for
example, flat-tax, value-added tax or
national sales tax) are all likely to
quickly recede as investors realize that
such, if any, changes are unlikely to be
enacted before late 1996 at the earliest.
Long-term investors will also recall 1986
when similar tax proposals were made
and tax-exempt bond yields initially
rose and then quickly fell. Investors
are likely to view the current situation
as an opportunity to purchase very
attractively priced tax-advantaged
products. This should cause municipal
bond yields to quickly return to their
more historic relationship.
<PAGE>
Portfolio Strategy
We continued to take advantage of the
declining interest rate environment by
adding lower coupon, longer maturity
issues to the Fund's portfolio. As inter-
est rates continued to decline through-
out the three months ended April 30,
1995, these holdings appreciated accord-
ingly. Evidence of a slowing economy
caused a general decline in interest
rates. Many of the Government's recent
data releases indicate that the Federal
Reserve Board's monetary policy has
slowed economic growth.
Along with the apparent slowing of
growth, there was no significant increase
in inflationary pressures at the retail
level, indicating that the Federal Reserve
Board may have mastered a soft landing
for the domestic economy. Other world
economies also kept prices under con-
trol in an effort to maintain their own
growth. With that as a backdrop, inves-
tors believe additional interest rate
increases may not be needed. Economic
data for the second quarter of 1995 will
give us a better indication as to whether
the Federal Reserve Board was successful.
The New York municipal market per-
formed as well as the national market
in spite of the absence of a new state
budget. Negotiations continue between
Governor Pataki and the legislature, and
passage of a new budget is expected
soon. Once the budget is ratified, we
expect a surge of issuance. Since issu-
ance in New York is more than 50%
below 1994, this supply should present
no problem for the municipal market as
demand has far exceeded supply.
<PAGE>
In Conclusion
We appreciate your interest in MuniVest
New York Insured Fund, Inc., and we
look forward to assisting you with your
financial needs in the months and years
to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
May 25, 1995
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)
IDA Industrial Development Authority
PCR Pollution Control Revenue Bonds
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<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--94.7% AAA Aaa $ 5,225 Albany, New York, Municipal Water Finance Authority, Water and
Sewer System Revenue Refunding Bonds, Series A, 5.50%
due 12/01/2022 (b) $ 4,828
AAA Aaa 5,000 Metropolitan Transportation Authority, New York, Transport
Facilities Revenue Bonds, Series O, 6.375% due 7/01/2020 (e) 5,077
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) 1,370
AAA Aaa 3,685 Nassau County, New York, UT, Series P, 6.50% due 11/01/2011 (b) 3,944
AAA Aaa 2,000 New York City, New York, Educational Construction Fund Revenue
Bonds, Senior Sub-series B, 5.625% due 4/01/2013 (e) 1,904
New York City, New York, IDA, Civic Facilities Revenue Bonds
(USTA National Tennis Center Project) (f):
AAA Aaa 3,500 6.50% due 11/15/2010 3,671
AAA Aaa 2,500 6.375% due 11/15/2014 2,536
New York City, New York, UT, Series B (Fiscal 92):
A- Baa1 5,000 7.50% due 2/01/2006 5,326
AAA Aaa 2,000 7% due 2/01/2017 (c) 2,170
AAA Aaa 2,000 7% due 2/01/2018 (c) 2,170
New York State Dormitory Authority Revenue Bonds:
AAA Aaa 5,915 (City University), Third Generation Reserves, Series 2,
6.875% due 7/01/2014 (e) 6,391
A1+ VMIG1++ 2,000 (Cornell University), VRDN, Series B, 4.75% due 7/01/2025 (a) 2,000
AAA Aaa 2,550 Insured (Colgate University), 5.625% due 7/01/2023 (b) 2,372
BBB Baa1 5,000 Refunding (Department of Health), 5.50% due 7/01/2020 4,351
AAA Aaa 1,500 Refunding (State University Educational Facilities), Series A,
5.50% due 5/15/2010 (b) 1,451
AAA Aaa 3,500 Refunding (State University Educational Facilities), Series A,
5.875% due 5/15/2011 (b) 3,505
BBB+ Baa1 6,500 Refunding (State University Educational Facilities), Series A,
5.875% due 5/15/2017 6,070
AAA Aaa 1,380 (State University Educational Facilities), Series A,
5.875% due 5/15/2011 (c) 1,382
AAA Aaa 3,000 New York State Energy Research and Development Authority,
Facilities Revenue Bonds (Con Edison Company of New York, Inc.),
AMT, Series B, 6.375% due 12/01/2027 (e) 2,969
AAA Aaa 5,355 New York State Energy Research and Development Authority,
Gas Facilities Revenue Bonds (Brooklyn Union Gas Company),
AMT, Series B, 6.75% due 2/01/2024 (e) 5,579
<PAGE>
NR* NR* 1,300 New York State Energy Research and Development Authority,
PCR (Niagara Mohawk Corporation Project), VRDN, Series A,
5% due 3/01/2027 (a) 1,300
AAA Aaa 1,910 New York State Environmental Facilities Corporation,
Water Facilities Revenue Bonds (Spring Valley Water Company Inc.
Project), AMT, Series A, 5.65% due 11/01/2023 (c) 1,735
A A 3,700 New York State Local Government Assistance Corporations Revenue
Refunding Bonds, Series E, 5.25% due 4/01/2016 3,291
New York State Medical Care Facilities, Finance Agency Revenue Bonds,
Series A:
AAA Aaa 2,500 (Mental Health Services Facilities), 5.25% due 8/15/2014 (e) 2,271
AAA Aaa 1,000 (Mental Health Services Facilities), 5.70% due 8/15/2014 (c) 958
AAA Aaa 4,600 (New York Hospital Mortgage), 6.80% due 8/15/2024 (c)(d) 4,903
AAA Aaa 1,885 (North Shore University--Glen Cove), 5.125% due 11/01/2012 (e) 1,698
AAA Aaa 3,500 New York State Thruway Authority, Service Contract Revenue Bonds
(Local Highway and Bridge), 5.75% due 4/01/2013 (e) 3,386
New York State Urban Development Corporation, Revenue Refunding Bonds
(Correctional Facilities):
BBB Baa1 2,360 5.50% due 1/01/2015 2,093
AAA Aaa 10,000 Series A, 6.50% due 1/01/2010 (f) 10,715
AAA Aaa 3,000 Series A, 6.50% due 1/01/2011 (f) 3,214
AAA Aaa 5,000 Series A, 5% due 1/01/2017 (c) 4,322
AAA Aaa 4,400 Niagara Falls, New York, Bridge Commission Toll Revenue
Refunding Bonds, Series B, 5.25% due 10/01/2015 (b) 4,043
AAA Aaa 1,000 Niagara Falls, New York, Water Treatment Plant, UT, AMT,
7.25% due 11/01/2010 (e) 1,131
Port Authority of New York and New Jersey, Consolidated Bonds:
AAA Aaa 3,000 72nd Series, 7.40% due 10/01/2012 (c) 3,350
AAA Aaa 3,185 Refunding, UT, AMT, 97th Series, 6.50% due 7/15/2019 (b) 3,269
Triborough Bridge and Tunnel Authority, New York, Special
Obligation Revenue Refunding Bonds:
AAA Aaa 5,475 Series A, 6.625% due 1/01/2017 (e) 5,725
AAA Aaa 5,150 Series B, 6.875% due 1/01/2015 (c) 5,501
Total Investments (Cost--$126,379)--94.7% 131,971
Other Assets Less Liabilities--5.3% 7,457
--------
Net Assets--100.0% $139,428
========
<PAGE>
<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, 1995.
(b)FGIC Insured.
(c)AMBAC Insured.
(d)FHA Insured.
(e)MBIA Insured.
(f)FSA Insured.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of April 30, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$126,378,599) (Note 1a) $131,970,729
Receivables:
Securities sold $ 5,437,397
Interest 2,652,726 8,090,123
------------
Deferred organization expenses (Note 1e) 21,935
Prepaid expenses and other assets 6,843
------------
Total assets 140,089,630
------------
Liabilities: Payables:
Dividends to shareholders (Note 1f) 203,649
Investment adviser (Note 2) 48,867 252,516
------------
Accrued expenses and other liabilities 409,356
------------
Total liabilities 661,872
------------
Net Assets: Net assets $139,427,758
============
<PAGE>
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.10 per share (1,960 shares of AMPS* issued and
outstanding at $25,000 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 511,867
Accumulated realized capital losses on investments--net (Note 5) (16,634,063)
Unrealized appreciation on investments--net 5,592,130
------------
Total--Equivalent to $12.55 net asset value per share of Common Stock
(market price--$11.625) 90,427,758
------------
Total capital $139,427,758
============
<FN>
*Auction Market Preferred Stock.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 1995
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 4,122,994
Income
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 336,256
Commission fees (Note 4) 60,561
Professional fees 35,629
Printing and shareholder reports 19,633
Transfer agent fees 17,976
Directors' fees and expenses 10,999
Accounting services (Note 2) 10,318
Listing fees 7,890
Custodian fees 7,218
Pricing fees 3,303
Amortization of organization expenses (Note 1e) 3,057
Other 9,178
------------
Total expenses before reimbursement 522,018
Reimbursement of expenses (Note 2) (33,626)
------------
Total expenses after reimbursement 488,392
------------
Investment income--net 3,634,602
------------
<PAGE>
Realized & Realized loss on investments--net (9,802,871)
Unrealized Change in unrealized appreciation/depreciation on investments--net 15,354,895
Gain (Loss) ------------
on Invest- Net Increase in Net Assets Resulting from Operations $ 9,186,626
ments--Net ============
(Notes 1b,
1d & 3):
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: April 30, 1995 Oct. 31, 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 3,634,602 $ 7,389,100
Realized loss on investments--net (9,802,871) (6,831,186)
Change in unrealized appreciation/depreciation on investments--net 15,354,895 (15,186,065)
------------ ------------
Net increase (decrease) in net assets resulting from operations 9,186,626 (14,628,151)
------------ ------------
Dividends & Investment income--net:
Distributions Common Stock (2,765,933) (6,182,613)
to Share- Preferred Stock (913,429) (1,194,786)
holders Realized gain on investments--net:
(Note 1f): Common Stock -- (267,833)
Preferred Stock -- (42,571)
------------ ------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (3,679,362) (7,687,803)
------------ ------------
Capital Offering and underwriting costs resulting from the issuance of Preferred Stock -- 23,256
Stock Value of shares issued to Common Stock shareholders in reinvestment of
Transactions dividends and distributions -- 933,698
(Notes 1e & ------------ ------------
4): Net increase in net assets derived from capital stock transactions -- 956,954
------------ ------------
<PAGE>
Net Assets: Total increase (decrease) in net assets 5,507,264 (21,359,000)
Beginning of period 133,920,494 155,279,494
------------ ------------
End of period* $139,427,758 $133,920,494
============ ============
<FN>
*Undistributed investment income--net $ 511,867 $ 556,627
============ ============
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
For the Period,
The following per share data and ratios have been derived Six Months For the April 30,
from information provided in the financial statements. Ended Year Ended 1993++ to
April 30, Oct. 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1993
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 11.79 $ 14.90 $ 14.18
Operating -------- -------- --------
Performance: Investment income--net .50 1.03 .48
Realized and unrealized gain (loss) on investments--net .77 (3.06) .80
-------- -------- --------
Total from investment operations 1.27 (2.03) 1.28
-------- -------- --------
Less dividends and distributions to Common Stock shareholders:
Investment income--net (.38) (.86) (.34)
Realized gain on investments--net -- (.04) --
-------- -------- --------
Total dividends and distributions to Common Stock shareholders (.38) (.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 (.13) (.17) (.06)
Realized gain on investments--net -- (.01) --
Capital charge resulting from issuance of Preferred Stock -- -- (.13)
-------- -------- --------
Total effect of Preferred Stock activity (.13) (.18) (.19)
-------- -------- --------
Net asset value, end of period $ 12.55 $ 11.79 $ 14.90
======== ======== ========
Market price per share, end of period $ 11.625 $ 10.50 $ 14.75
======== ======== ========
<PAGE>
Total Based on market price per share 14.54%+++ (23.65%) .59%+++
Investment ======== ======== ========
Return:** Based on net asset value per share 10.12%+++ (15.13%) 7.49%+++
======== ======== ========
Ratios to Expenses, net of reimbursement .73%* .64% .35%*
Average Net ======== ======== ========
Assets:*** Expenses .78%* .74% .79%*
======== ======== ========
Investment income--net 5.42%* 5.06% 4.75%*
======== ======== ========
Supplemental Net assets, net of Preferred Stock, end of period (in thousands) $ 90,428 $ 84,920 $106,279
Data: ======== ======== ========
Preferred Stock outstanding, end of period (in thousands) $ 49,000 $ 49,000 $ 49,000
======== ======== ========
Portfolio turnover 140.11% 74.77% 10.81%
======== ======== ========
Dividends Investment income--net $ 446 $ 610 $ 242
Per Share on
Preferred
Stock
Outstanding:++++++
<FN>
*Annualized.
**Total investment returns based on market value, which can be signifi-
cantly greater or lesser than the net asset value, may result in sub-
stantially 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.
++++++Dividends per share have been adjusted to reflect a two-for-one stock split.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
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. 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 Stock on a weekly
basis. 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.
(a) Valuation of investments--Municipal bonds are traded primarily
in the over-the-counter markets and are valued at the most recent bid
price or yield equivalent as obtained by the Fund's pricing service
from dealers that make markets in such securities. Financial futures
contracts and options thereon, which are traded on exchanges, are
valued at their closing prices as of the close of such exchanges.
Options, which are traded on exchanges, are valued at their last sale
price as of the close of such exchanges or, lacking any sales, at the last
available bid price. Securities with remaining maturities of sixty
days or less are valued at amortized cost, which approximates market
value. Securities for which market quotations are not readily avail-
able are valued at fair value as determined in good faith by or under
the direction of the Board of Directors of the Fund.
(b) Derivative financial instruments--The Fund may engage in
various portfolio strategies to seek to increase its return by hedging
its portfolio against adverse movements in the debt markets. Losses
may arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
* Financial futures contracts--The Fund may purchase or sell
interest rate futures contracts and options on such futures contracts
for the purpose of hedging the market risk on existing securities or
the intended purchase of securities. Futures contracts are contracts
for delayed delivery of securities at a specific future date and at a
specific price or yield. Upon entering into a contract, the Fund
deposits and maintains as collateral such initial margin as required
by the exchange on which the transaction is effected. Pursuant to
the contract, the Fund agrees to receive from or pay to the broker an
amount of cash equal to the daily fluctuation in value of the contract.
Such receipts or payments are known as variation margin and are
recorded by the Fund as unrealized gains or losses. When the 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.
<PAGE>
* 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 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.
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. 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) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital gains
are recorded on the ex-dividend dates.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
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. For the six months ended
April 30, 1995, FAM earned fees of $336,256, of which $33,626 was
voluntarily 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, PSI, Merrill Lynch, Pierce, Fenner & Smith Inc.
("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 1995 were $179,688,021 and
$172,790,004, respectively.
Net realized and unrealized gains (losses) as of April 30, 1995 were
as follows:
Realized Unrealized
Losses Gains
Long-term investments $(8,203,596) $ 5,592,130
Financial futures contracts (1,599,275) --
----------- -----------
Total $(9,802,871) $ 5,592,130
=========== ===========
As of April 30, 1995, net unrealized appreciation for Federal income
tax purposes aggregated $5,592,130, of which $5,863,782 related to
appreciated securities and $271,652 related to depreciated securities.
The aggregate cost of investments at April 30, 1995 for Federal
income tax purposes was $126,378,599.
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.
<PAGE>
Common Stock
For the six months ended April 30, 1995, shares issued and out-
standing remained constant at 7,204,432. At April 30, 1995, 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 April 30, 1995 was 4.475%.
A two-for-one stock split occurred on December 1, 1994. As a result,
at April 30, 1995, there were 1,960 AMPS authorized, issued and
outstanding with a liquidation preference of $25,000 per share,
plus accumulated and unpaid dividends of $18,026.
The Fund pays commissions to certain broker-dealers at the end of
each auction at an annual rate ranging from 0.25% to 0.375%,
calculated on the proceeds of each auction. For the six months ended
April 30, 1995, MLPF&S, an affiliate of FAM, earned $54,858 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 May 9, 1995, the Fund's Board of Directors declared an ordinary
income dividend to Common Stock shareholders in the amount of
$0.061499 per share, payable on May 30, 1995 to shareholders of
record as of May 19, 1995.
PER SHARE INFORMATION
<TABLE>
Per Share
Selected Quarterly
Financial Data*
<CAPTION>
Net Realized Unrealized Dividends/Distribution
Investment Gains Gains Net Investment Income Capital Gains
For the Quarter Income (Losses) (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
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 -- --
November 1, 1994 to January 31, 1995 .25 (1.56) 1.86 .19 .07 -- --
February 1, 1995 to April 30, 1995 .25 .20 .27 .19 .06 -- --
<PAGE>
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<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
November 1, 1994 to January 31, 1995 12.08 10.89 11.125 9.125 1,369
February 1, 1995 to April 30, 1995 12.94 12.10 11.875 10.875 337
<FN>
*Calculations are based upon Common Stock outstanding at the end of each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
++Commencement of Operations.
</TABLE>
