MUNIVEST
NEW YORK
INSURED
FUND, INC.
FUND LOGO
Semi-Annual
April 30, 1996
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. Statements and other information
herein are as dated and are subject to change.
<PAGE>
MuniVest
New York Insured
Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
<PAGE>
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 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.
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 prevail-
ing 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.
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 com-
pletely. 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.
<PAGE>
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
Vincent R. Giordano, Senior Vice President
Donald C. Burke, Vice President
James C. Cahill, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, New York 10286
NYSE Symbol
MVY
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
<PAGE>
DEAR SHAREHOLDER
For the six-month period ended April
30, 1996, the Common Stock of
MuniVest New York Insured Fund, Inc.
earned $0.371 per share income divi-
dends, which included earned and
unpaid dividends of $0.058. This rep-
resents a net annualized yield of 5.87%,
based on a month-end per share net
asset value of $12.66. Over the same
period, the total investment return
on the Fund's Common Stock was
- --0.65%, based on a change in per
share net asset value from $13.14 to
$12.66, and assuming reinvestment of
$0.375 per share income dividends.
For the six-month period ended April
30, 1996, the Fund's Auction Market
Preferred Stock had an average yield
of 3.43%.
The Environment
Investor perceptions regarding the
US economy changed over the course
of the six-month period ended April
30, 1996. As 1995 drew to a close and
1996 began, it appeared that the US
economy was losing momentum. Lack-
luster retail sales, increases in initial
unemployment claims (along with
weak job and income growth), and
evidence of slowing in the manufac-
turing sector all suggested that the
rate of economic growth was deceler-
ating, with some forecasters even sug-
gesting the possibility of an imminent
recession.
<PAGE>
However, the consensus outlook for
the rate of future economic growth
changed dramatically with the report
of stronger-than-expected employment
data for February and March. As a
result, investors began to anticipate
renewed economic growth. Long-term
interest rates rose, and the Federal
Reserve Board left monetary policy on
hold. Adding to investor concerns was
the report that the Knight Ridder-
Commodity Research Bureau Index
was near an eight-year high, largely
because of an increase in agricultural
prices and an upward spike in the
price of crude oil.
Investors are likely to continue to focus
on the probable direction of economic
activity and Federal Reserve Board
monetary policy in the weeks ahead.
At this time, inflationary pressures do
not seem to be building and the capi-
tal spending, housing and consump-
tion sectors are still relatively weak,
which suggest that the economy is
not on the verge of overheating. Never-
theless, it is likely that further indica-
tions of stronger economic activity in
the weeks ahead may add to investor
concerns that accelerating economic
activity could lead to higher inflation
and interest rates.
<PAGE>
The Municipal Market
During the six months ended April
30, 1996, tax-exempt bond yields rose
as investors became increasingly con-
cerned that recent economic growth
would reignite inflationary pressures.
Through early February 1996, munici-
pal bond yields continued their ear-
lier declines supported by continued
moderate economic growth and favor-
able inflationary expectations. As
measured by the Bond Buyer Revenue
Bond Index, yields on uninsured,
A-rated municipal revenue bonds de-
clined an additional 30 basis points
(0.30%) to 5.70% by early February. As
signs of emerging economic growth
became more numerous, particularly
with the release of the strong March
employment figures, inflation fears
increased and bond yields rose in
response for the remainder of the
six-month period ended April 30, 1996.
At April 30, 1996, long-term municipal
bond yields were approximately 6.30%,
an increase of approximately 30 basis
points over the last six months. The
rise in US Treasury bond yields was
more substantial. Over the last six
months, yields on US Treasury securi-
ties rose approximately 60 basis points
to 6.90%. During the April period, the
municipal bond market reversed the
trend seen throughout much of 1995
and significantly outperformed the
US Treasury bond market.
<PAGE>
The municipal bond market's recent
outperformance was largely the result
of two principal factors. First, and
perhaps more important, much of the
earlier concern regarding proposed
changes in Federal income tax codes
and their effect on the tax treatment
of tax-exempt bond income has dissi-
pated. As the negative revenue impact
of the various proposals, such as the
flat tax, became apparent, the likeli-
hood of immediate reform quickly
diminished. When the Kemp Commis-
sion dealing with Federal income tax
reform released its findings early in
1996, the obvious need for reform was
highlighted. However, no specific rec-
ommendations of a flat tax, value-
added tax or any other reform were
made. Consequently, fears of losing
the favored tax treatment of munici-
pal bond income declined even fur-
ther. As a percentage of Treasury bond
yields, tax-exempt bond yield ratios
quickly declined from 95% to approxi-
mately 90%. This allowed the munici-
pal bond market to maintain much of
the gains made since early 1995.
The second major factor leading to
the municipal bond market's recent
improvement was the return of a more
favorable technical environment. Over
the past six months, approximately
$90 billion in municipal securities
were underwritten, an increase of
approximately 45% versus the compa-
rable period a year earlier. However,
much of this increase was biased by
recent underwritings dedicated toward
refinancing. Like individual homeown-
ers, municipal issuers sought to refi-
nance their existing higher-couponed
debt as tax-exempt bond yields de-
clined from their highs in 1995. In
recent months such refinancings were
estimated to represent at least 50% of
total issuance. However, the recent
rise in tax-exempt interest rates slowed
the pace of such refinancings. Over
the last three months approximately
$40 billion in long-term tax-exempt
securities were underwritten, an in-
crease of 35% compared to the same
period a year ago. At current interest
rate levels large amounts of refundings
are unlikely and the rate of new bond
issuance should continue to decline.
<PAGE>
Additionally, investors continue to
receive significant amounts of assets
derived from coupon income, bond
maturities, and proceeds from early
redemptions. In recent months inves-
tors received over $30 billion in such
assets. These cash flows helped main-
tain individual retail investor demand
in recent months. Additionally, major
institutional investors, such as certain
insurance companies whose under-
writing profits were cyclically high,
demonstrated significant ongoing inter-
est in the tax-exempt bond market,
particularly on higher-quality securi-
ties. Individual and institutional inves-
tor demand was strong enough during
the six-month period ended April 30,
1996 to absorb the relative increase in
bond issuance.
Looking ahead, we believe the munic-
ipal bond market is likely to continue
to outperform the US Treasury mar-
ket. Investor demand should remain
adequate to absorb new bond issuance.
It is also unlikely that the rapid pace
of issuance seen thus far in 1996 will
be maintained. The recent rise in
yields made further bond refinancings
economically unfeasible. Since these
refinancings were the driving force of
recent bond issuance, as the amount
of these refundings decline, overall
issuance should decline. This should
allow the current demand/supply bal-
ance to be easily maintained in up-
coming months.
Additionally, as a percentage of US
Treasury bond yields, long-term munic-
ipal bond yields remain historically
attractive. It is likely that recent inter-
est rate increases will have a negative
impact on economic growth, perhaps
as early as late summer 1996. With
long-term mortgage rates above 8%,
the domestic housing sector has al-
ready indicated signs of slower growth.
If other interest rate sectors of the
economy, such as the automobile
industry, begin to show similar adverse
effects, taxable interest rates would
be poised to resume their decline.
With long-term tax-exempt revenue
bonds yielding approximately 90% of
their taxable counterparts, municipal
bond yields are poised to decline
further.
<PAGE>
Portfolio Strategy
We entered the six-month period ended
April 30, 1996 very optimistic that
interest rates would decline. This opti-
mism was based on the belief that the
economy was slowing and that ad-
vances on a balanced Federal budget
agreement would be beneficial to the
fixed-income markets. To take advan-
tage of this anticipated decline in inter-
est rates, we decreased cash reserves
to 1% of net assets, and increased the
Fund's duration. This strategy bene-
fited the portfolio's performance as
long-term interest rates declined over
30 basis points through the end of
December.
The new year brought the beginning
of a reversal in the trend of lower
interest rates. By late February, signs
of a strengthening economy began to
undermine investor confidence in the
fixed-income market. In March an
explosive employment report seemed
to confirm a surge in the growth of
the US economy, and yields began to
rise rapidly. Prior to the back up in
yields, we gradually increased the
Fund's cash reserves while decreasing
its duration. This strategy enabled the
Fund to be less sensitive to the signifi-
cant back up in yields experienced in
the fixed-income markets. One other
positive factor for the Fund during this
back up in yields was that municipal
bonds significantly outperformed US
Treasury securities.
<PAGE>
Because of the various influences that
affected the economy, such as the
severe winter weather and the Gov-
ernment shutdowns, the economic
data released so far in 1996 was cloudy
and subject to many interpretations,
but overall pointed to a stronger econ-
omy. The data suggested that the econ-
omy may be picking up steam, which
warrants a cautious approach to the
market until a clearer view of the
economy's direction emerges. Looking
ahead, the Fund will maintain its cau-
tious approach to the market until a
clearer path for interest rates becomes
evident.
In Conclusion
We appreciate your ongoing 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
Senior Vice President
(James C. Cahill)
James C. Cahill
Vice President and Portfolio Manager
May 28, 1996
<PAGE>
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)
HFA Housing Finance Agency
IDA Industrial Development Authority
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<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--105.8% AAA Aaa $ 2,000 Battery Park City Authority, New York, Revenue Refunding Bonds,
Senior Series A, 5.70% due 11/01/2020 (e) $ 1,926
AAA Aaa 2,400 Clifton Park, New York, Water Authority, Water System Revenue Bonds,
Series A, 6.375% due 10/01/2002 (b) (g) 2,652
Metropolitan Transportation Authority, New York, Commuter Facilities
Revenue Bonds:
AAA Aaa 3,500 (Grand Central Terminal), Series 1, 5.70% due 7/01/2024 (f) 3,372
AAA Aaa 2,990 Refunding, Series A, 6.125% due 7/01/2012 (e) 3,076
AAA Aaa 5,000 Metropolitan Transportation Authority, New York, Transport Facilities
Revenue Bonds, Series O, 6.375% due 7/01/2020 (e) 5,152
AAA Aaa 3,685 Nassau County, New York, UT, Series P, 6.50% due 11/01/2011 (b) 4,026
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) 1,973
AAA Aaa 5,000 New York City, New York, IDA, Civic Facilities Revenue Bonds (USTA
National Tennis Center Project), 6.375% due 11/15/2014 (f) 5,220
<PAGE>
New York City, New York, Municipal Water Finance Authority, Water
and Sewer System Revenue Bonds:
AAA Aaa 2,000 Series B, 5.375% due 6/15/2019 (e) 1,847
AAA Aaa 2,340 Series B, 5.50% due 6/15/2019 (c) 2,203
AAA Aaa 3,000 Series B, 5.50% due 6/15/2019 (e) 2,824
AAA VMIG1++ 3,900 VRDN, Series A, 4.20% due 6/15/2025 (a) (b) 3,900
AAA VMIG1++ 970 VRDN, Series C, 4% due 6/15/2023 (a) (b) 970
AAA VMIG1++ 6,800 VRDN, Series G, 4.10% due 6/15/2024 (a) (b) 6,800
A1+ VMIG1++ 3,700 New York City, New York, Trust Cultural Resource Revenue Bonds
(Solomon R. Guggenheim), VRDN, Series B, 4.10% due 12/01/2015 (a) 3,700
New York City, New York, UT, Series B (Fiscal 92):
BBB+ Baa1 5,000 7.50% due 2/01/2006 5,480
AAA Aaa 2,000 7% due 2/01/2017 (c) 2,171
AAA Aaa 2,000 7% due 2/01/2018 (c) 2,171
New York City, New York, UT, Series C, Sub-Series C-1 (e) (g):
AAA Aaa 5,625 6.375% due 8/01/2002 6,190
AAA Aaa 4,455 6.375% due 8/01/2002 4,902
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) 6,414
A1+ VMIG1++ 3,100 (Cornell University), VRDN, Series B, 4.10% due 7/01/2025 (a) 3,100
BBB Baa1 5,000 (Department of Health), 5.75% due 7/01/2017 4,636
AAA Aaa 1,500 Refunding (State University Educational Facilities), Series A, 5.50%
due 5/15/2010 (b) 1,496
AAA Aaa 4,500 Refunding (State University Educational Facilities), Series A,
5.875% due 5/15/2011 (b) 4,627
AAA Aaa 4,315 (Saint Vincent's Hospital and Medical Center), 5.80% due
8/01/2025 (c) (d) 4,179
AAA Aaa 1,380 (State University Educational Facilities), Series A, 5.875% due
5/15/2011 (c) 1,419
AAA Aaa 5,000 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) 5,286
BBB Baa1 5,910 New York State HFA, Service Contract Obligation Revenue Bonds, Series A,
5.50% due 9/15/2022 5,243
A1+ VMIG1++ 2,000 New York State Local Government Assistance Corporation, VRDN, Series B,
4.10% due 4/01/2025 (a) 2,000
New York State Medical Care Facilities Finance Agency Revenue Bonds:
AAA Aaa 4,600 (New York Hospital Mortgage), Series A, 6.80% due 8/15/2024 (c) (d) 4,930
AAA Aaa 2,000 (New York Hospital Mortgage), Series A, 6.50% due 8/15/2029 (c) (d) 2,079
AAA Aaa 4,000 Refunding (Mental Health Services), Series F, 5.25% due 2/15/2021 (f) 3,591
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
New York New York State Urban Development Corporation Revenue Bonds:
(concluded) AAA Aaa $ 6,000 Refunding (Correctional Facilities), Series A, 5% due 1/01/2017 (c) $ 5,301
AAA Aaa 4,000 (Sports Facilities Assistance Program), Series A, 5.50% due
4/01/2019 (e) 3,757
AAA Aaa 1,000 Niagara Falls, New York, Water Treatment Plant, UT, AMT, 7.25% due
11/01/2010 (e) 1,154
Port Authority of New York and New Jersey, Consolidated Revenue
Bonds (c):
AAA Aaa 3,000 72nd Series, 7.40% due 10/01/2012 3,372
AAA Aaa 3,000 104th Series, Third Installment, 4.75% due 1/15/2026 2,497
A1+ VMIG1++ 1,300 Syracuse, New York, IDA, Civic Facility Revenue Bonds (Multi-Modal
Syracuse University Project), VRDN, 4.10% due 3/01/2023 (a) 1,300
Triborough Bridge and Tunnel Authority, New York, Special Obligation
Refunding Bonds:
AAA Aaa 5,475 Series A, 6.625% due 1/01/2017 (e) 5,798
AAA Aaa 5,150 Series B, 6.875% due 1/01/2015 (c) 5,537
Total Investments (Cost--$144,656)--105.8% 148,271
Liabilities in Excess of Other Assets--(5.8%) (8,083)
--------
Net Assets--100.0% $140,188
========
<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, 1996.
(b)FGIC Insured.
(c)AMBAC Insured.
(d)FHA Insured.
(e)MBIA Insured.
(f)FSA Insured.
(g)Prerefunded.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of April 30, 1996
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$144,656,130) (Note 1a) $148,271,406
Cash 96,615
Receivables:
Securities sold $ 3,701,344
Interest 2,332,396 6,033,740
------------
Deferred organization expense (Note 1e) 15,660
Prepaid expenses and other assets 6,404
------------
Total assets 154,423,825
------------
Liabilities: Payables:
Securities purchased 13,922,234
Dividends to shareholders (Note 1f) 185,827
Investment adviser (Note 2) 57,767 14,165,828
------------
Accrued expenses and other liabilities 69,731
------------
Total liabilities 14,235,559
------------
Net Assets: Net assets $140,188,266
============
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 496,565
Accumulated realized capital losses on investments--net (Note 5) (13,881,399)
Unrealized appreciation on investments--net 3,615,276
------------
Total--Equivalent to $12.66 net asset value per share of Common Stock
(market price--$11.875) 91,188,266
------------
Total capital $140,188,266
============
<PAGE>
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 1996
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 4,060,417
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 360,184
Commission fees (Note 4) 61,864
Professional fees 39,417
Printing and shareholder reports 19,239
Transfer agent fees 17,617
Accounting services (Note 2) 15,812
Directors' fees and expenses 11,452
Listing fees 8,052
Custodian fees 5,723
Pricing fees 3,297
Amortization of organization expenses (Note 1e) 3,133
Other 6,943
------------
Total expenses 552,733
------------
Investment income--net 3,507,684
------------
Realized & Unreal- Realized gain on investments 1,351,653
ized Gain (Loss) on Change in unrealized appreciation on investments--net (4,809,363)
Investments--Net ------------
(Notes 1b, 1d & 3): Net Increase in Net Assets Resulting from Operations $ 49,974
============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 1996 1995
<S> <S> <C> <C>
Operations: Investment income--net $ 3,507,684 $ 7,244,028
Realized gain (loss) on investments--net 1,351,653 (8,401,860)
Change in unrealized appreciation/depreciation on investments--net (4,809,363) 18,187,404
------------ ------------
Net increase in net assets resulting from operations 49,974 17,029,572
------------ ------------
Dividends to Investment income--net:
Shareholders Common Stock (2,704,926) (5,428,929)
(Note 1f): Preferred Stock (838,959) (1,838,960)
------------ ------------
Net decrease in net assets resulting from dividends to shareholders (3,543,885) (7,267,889)
------------ ------------
Net Assets: Total increase (decrease) in net assets (3,493,911) 9,761,683
Beginning of period 143,682,177 133,920,494
------------ ------------
End of period* $140,188,266 $143,682,177
============ ============
<FN>
*Undistributed investment income--net $ 496,565 $ 532,766
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
For the For the
Six Period
The following per share data and ratios have been derived Months April 30,
from information provided in the financial statements. Ended For the Year Ended 1993++ to
April 30, October 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1993
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.14 $ 11.79 $ 14.90 $ 14.18
Operating -------- -------- -------- --------
Performance: Investment income--net .49 1.00 1.03 .48
Realized and unrealized gain (loss) on investments--net (.47) 1.36 (3.06) .80
-------- -------- -------- --------
Total from investment operations .02 2.36 (2.03) 1.28
-------- -------- -------- --------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.38) (.75) (.86) (.34)
Realized gain on investments--net -- -- (.04) --
-------- -------- -------- --------
Total dividends and distributions to Common Stock
shareholders (.38) (.75) (.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 (.12) (.26) (.17) (.06)
Realized gain on investments--net -- -- (.01) --
Capital charge resulting from issuance of Preferred
Stock -- -- -- (.13)
-------- -------- -------- --------
Total effect of Preferred Stock activity (.12) (.26) (.18) (.19)
-------- -------- -------- --------
Net asset value, end of period $ 12.66 $ 13.14 $ 11.79 $ 14.90
======== ======== ======== ========
Market price per share, end of period $ 11.875 $ 12.00 $ 10.50 $ 14.75
======== ======== ======== ========
Total Investment Based on market price per share 2.05%+++ 21.97% (23.65%) .59%+++
Return:** ======== ======== ======== ========
Based on net asset value per share (.65%)+++ 18.94% (15.13%) 7.49%+++
======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .76%* .75% .64% .35%*
Net Assets:*** ======== ======== ======== ========
Expenses .76%* .77% .74% .79%*
======== ======== ======== ========
Investment income--net 4.85%* 5.22% 5.06% 4.75%*
======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock,
Data: end of period (in thousands) $ 91,188 $ 94,682 $ 84,920 $106,279
======== ======== ======== ========
Preferred Stock outstanding, end of period (in
thousands) $ 49,000 $ 49,000 $ 49,000 $ 49,000
======== ======== ======== ========
Portfolio turnover 75.53% 192.08% 74.77% 10.81%
======== ======== ======== ========
<PAGE>
Leverage: Asset coverage per $1,000 $ 2,861 $ 2,932 $ 2,733 $ 3,169
======== ======== ======== ========
Dividends Investment income--net $ 428 $ 938 $ 610 $ 242
Per Share on ======== ======== ======== ========
Preferred Stock
Outstanding:++++++
<FN>
*Annualized.
**Total investment returns based on market value, which can
be significantly greater or lesser than the net asset
value, may result in substantially different returns.
Total investment returns exclude the effects of sales
loads.
***Do not reflect the effect of dividends to Preferred 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 that occurred on December 1, 1994.
+++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. These unaudited finan-
cial 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 recur-
ring nature. The Fund determines and makes available for publica-
tion 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.
<PAGE>
(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, including valua-
tions furnished by a pricing service retained by the Fund, which may
utilize a matrix system for valuations. The procedures of the pricing
service and its valuations are reviewed by the officers of the Fund
under the general supervision of the Board of Directors.
(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.
* 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).
<PAGE>
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 expenses--Deferred organization expenses
are amortized on a straight-line basis over a five-year period.
(f) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital gains
are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned subsidiary
of Merrill Lynch & Co., Inc. ("ML & Co."), which is the limited partner.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee at an annual rate of 0.50% of
the Fund's average weekly net assets.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or 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, 1996 were $104,168,877 and
$109,980,495, respectively.
<PAGE>
Net realized and unrealized gains as of April 30, 1996 were as
follows:
Realized Unrealized
Gains Gains
Long-term investments $1,145,578 $3,615,276
Financial futures contracts 206,075 --
---------- ----------
Total $1,351,653 $3,615,276
========== ==========
As of April 30, 1996, net unrealized appreciation for Federal income
tax purposes aggregated $3,615,276, of which $4,596,696 related to
appreciated securities and $981,420 related to depreciated securities.
The aggregate cost of investments at April 30, 1996 for Federal
income tax purposes was $144,656,130.
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, 1996, shares issued and outstand-
ing remained constant at 7,204,432. At April 30, 1996, 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, 1996 was 3.85%.
As of April 30, 1996, there were 1,960 AMPS authorized, issued and
outstanding with a liquidation preference of $25,000 per share, plus
accumulated and unpaid dividends of $25,844.
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, 1996, MLPF&S, an affiliate of FAM, earned $37,228 as
commissions.
5. Capital Loss Carryforward:
At October 31, 1995, the Fund had a net capital loss carryforward of
approximately $13,810,000, of which $6,831,000 expires in 2002, and
$6,979,000 expires in 2003. This amount will be available to offset
like amounts of any future taxable gains.
<PAGE>
6. Subsequent Event:
On May 10, 1996, the Fund's Board of Directors declared an ordinary
income dividend to Common Stock shareholders in the amount of
$0.057601 per share, payable on May 30, 1996 to shareholders of
record as of May 21, 1996.
