MUNIVEST
MICHIGAN
INSURED
FUND, INC.
STRATEGIC
Performance
[GRAPHIC OMITTED]
Annual Report
October 31, 1999
<PAGE>
MUNIVEST MICHIGAN INSURED FUND, INC.
The Benefits and Risks of Leveraging
MuniVest Michigan 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.
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 shareholders are the beneficiaries of the
incremental yield. However, if short-term interest rates rise, narrowing the
differential between short-term and long-term interest rates, the incremental
yield pickup on the Common Stock will be reduced or eliminated completely. At
the same time, the market value on 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.
As a part of its investment strategy, the Fund may invest in certain securities
whose potential income return is inversely related to changes in a floating
interest rate ("inverse floaters"). In general, income on inverse floaters will
decrease when short-term interest rates increase and increase when short-term
interest rates decrease. Investments in inverse floaters may be characterized as
derivative securities and may subject the Fund to the risks of reduced or
eliminated interest payments and losses of invested principal. In addition,
inverse floaters have the effect of providing investment leverage and, as a
result, the market value of such securities will generally be more volatile than
that of fixed-rate, tax-exempt securities. To the extent the Fund invests in
inverse floaters, the market value of the Fund's portfolio and the net asset
value of the Fund's shares may also be more volatile than if the Fund did not
invest in these securities.
<PAGE>
MuniVest Michigan Insured Fund, Inc., October 31, 1999
DEAR SHAREHOLDER
For the year ended October 31, 1999, the Common Stock of MuniVest Michigan
Insured Fund, Inc. earned $0.743 per share income dividends, which included
earned and unpaid dividends of $0.063. This represents a net annualized yield of
5.84%, based on a month-end net asset value of $12.73 per share. Over the same
period, the total investment return on the Fund's Common Stock was - 6.80%,
based on a change in per share net asset value from $14.46 to $12.73, and
assuming reinvestment of $0.743 per share income dividends.
For the six-month period ended October 31, 1999, the total investment return on
the Fund's Common Stock was - 8.06%, based on a change in per share net asset
value from $14.27 to $12.73, and assuming reinvestment of $0.369 per share
income dividends.
For the six-month period ended October 31, 1999, the Fund's Auction Market
Preferred Stock had an average yield of 3.09%.
The Municipal Market Environment
The combination of steady strong domestic economic growth, improvement in
foreign economies (most notably in Japan) and increasing investor concerns
regarding potential increases in US inflation put upward pressure on bond yields
throughout the 12-month period ended October 31, 1999. Continued strong US
employment growth, particularly the decline in the US unemployment rate to 4.2%
in early June, was among the reasons the Federal Reserve Board cited for raising
short-term interest rates in late June and again in late August. US Treasury
bond yields reacted by climbing above 6.375% by late October. However, by
October 31, 1999, economic indicators were released suggesting that despite
strong economic and employment growth in the third fiscal quarter of 1999,
inflationary pressures have remained extremely well-contained. This resulted in
a significant rally in the US Treasury bond market, pushing US Treasury bond
yields downward to approximately 6.15% by October 31, 1999. During the last six
months, yields on 30-year US Treasury bonds increased more than 50 basis points
(0.50%).
Long-term tax-exempt bond yields also rose during the six months ended October
31, 1999. Until early May, the municipal bond market was able to withstand much
of the upward pressure on bond yields. However, investor concerns of additional
moves by the Federal Reserve Board to moderate US economic growth and, more
importantly, the loss of the strong technical support that the tax-exempt market
enjoyed in early 1999 helped push municipal bond yields significantly higher for
the remainder of the period. The yields on long-term tax-exempt revenue bonds
rose almost 90 basis points to 6.18% by October 31, 1999, as measured by the
Bond Buyer Revenue Bond Index.
In recent months, the significant decline in new tax-exempt bond issuance has
remained a positive factor within the municipal bond market, as it had been for
much of the past year. During the last six months, more than $110 billion in
long-term municipal bonds was issued, a decline of almost 20% compared to the
same period a year ago. During the past three months, $55 billion in municipal
bonds was underwritten, representing a decline of nearly 10% compared to the
corresponding period in 1998. Additionally, in June and July, investors received
more than $40 billion in coupon income and proceeds from bond maturities and
early bond redemptions. These proceeds have generated considerable retail
investor interest, which has helped absorb the recent diminished supply.
Although tax-exempt bond yields are at their highest level in over two years and
have attracted significant retail investor interest, institutional demand has
declined sharply. Long-term municipal mutual funds have seen consistent outflows
in recent months as the yields of individual securities have risen faster than
those of larger, more diverse mutual funds. In addition, the demand from
property/casualty insurance companies has weakened as a result of the losses,
and anticipated losses, incurred as a result of the series of damaging storms
across much of the eastern United States. Additionally, many institutional
investors who were attracted to the municipal bond market in recent years by
historically attractive tax-exempt bond yield ratios of over 90% have found
other asset classes even more attractive. Even with a reduced supply position,
tax-exempt issuers have been forced to repeatedly raise municipal bond yields in
the attempt to attract adequate demand.
The recent relative underperformance of the municipal bond market has resulted
in an opportunity for long-term investors to purchase tax-exempt issues whose
yields are nearly identical to taxable US Treasury securities. At October 31,
1999, long-term uninsured municipal revenue bond yields were 100% of comparable
US Treasury securities. In recent months, many taxable asset classes, such as
corporate bonds, mortgage-backed securities and US agency debt, have all
accelerated debt issuance. This acceleration was initiated largely to avoid
issuing securities at year-end and to minimize any associated Year 2000 (Y2K)
problems that may develop. However, this increased issuance has also resulted in
higher yield levels in the various asset classes as lower bond prices became
necessary to attract sufficient investor demand. Going forward, it is believed
that the pace of non-US Government debt issuance is likely to slow
significantly. As the supply of this debt declines, we would expect many
institutional investors to return to the municipal bond market and the
attractive yield ratios available.
Looking ahead, it appears to us that long-term municipal bond yields will remain
under pressure, trading in a broad range centered near current levels. Investors
are likely to remain concerned about future action by the Federal Reserve Board.
Y2K considerations may prohibit any further Federal Reserve Board moves through
the end of the year and the beginning of 2000. Any improvement in bond prices
will probably be contingent upon weakening in both US employment growth and
consumer spending. The 100 basis point rise in US Treasury bond yields seen thus
far this year may negatively affect US economic growth. The US housing market
will be among the first sectors likely to be affected, as some declines have
already been evidenced in response to higher mortgage rates. We believe that it
is also unrealistic to expect double-digit returns in US equity markets to
continue indefinitely. Much of the US consumer's wealth is tied to recent stock
market appreciation. Any slowing in these incredible growth rates is likely to
reduce consumer spending. We believe that these factors suggest that the worst
of the recent increase in bond yields has passed and stable, if not slightly
improving, bond prices may be expected.
In Conclusion
On September 21, 1999, MuniVest Michigan Insured Fund, Inc.'s Board of Directors
approved a plan of reorganization, subject to shareholder approval and certain
other conditions, whereby MuniYield Michigan Insured Fund, Inc. would acquire
substantially all of the assets and liabilities of the Fund and MuniHoldings
Michigan Insured Fund, Inc. in exchange for newly issued shares of MuniYield
Michigan Insured Fund, Inc. These Funds are registered, non-diversified,
closed-end management investment companies. All three entities have similar
investment objectives and are managed by Fund Asset Management, L.P.
We appreciate your interest in MuniVest Michigan Insured Fund, Inc.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Director
/s/ Vincent R. Giordano
Vincent R. Giordano
Senior Vice President
/s/ Fred K. Stuebe
Fred K. Stuebe
Vice President and
Portfolio Manager
November 29, 1999
2 & 3
<PAGE>
MuniVest Michigan Insured Fund, Inc., October 31, 1999
PROXY RESULTS
During the six-month period ended October 31, 1999, MuniVest Michigan Insured
Fund, Inc.'s Common Stock shareholders voted on the following proposal. The
proposal was approved at a shareholders' meeting on May 27, 1999. A description
of the proposal and number of shares voted are as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Voted Shares Voted
For Against Abstain
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. To approve an amendment to the Articles Supplementary of the Fund. 3,800,337 243,830 227,995
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
During the six-month period ended October 31, 1999, MuniVest Michigan Insured
Fund, Inc.'s Preferred Stock shareholders voted on the following proposal. The
proposal was approved at a shareholders' meeting on May 27, 1999. A description
of the proposal and number of shares voted are as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Voted Shares Voted
For Against Abstain
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. To approve an amendment to the Articles Supplementary of the Fund. 1,671 188 75
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
QUALITY PROFILE
The quality ratings of securities in the Fund as of October 31, 1999 were as
follows:
- --------------------------------------------------------------------------------
Percent of
S&P Rating/Moody's Rating Net Assets
- --------------------------------------------------------------------------------
AAA/Aaa ........................................................... 91.4%
NR (Not Rated) .................................................... 3.5
Other+ ............................................................ 6.4
- --------------------------------------------------------------------------------
+ Temporary investments in short-term municipal securities.
SCHEDULE OF INVESTMENTS (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
====================================================================================================================================
<C> <C> <C> <C> <S> <C>
Michigan AAA Aaa $1,000 Avondale, Michigan, School District, GO, Refunding, 4.75% due 5/01/2022 (b) $ 835
- -- 99.2% ---------------------------------------------------------------------------------------------------------------------
Belding, Michigan, Area Schools, GO, Refunding (c):
AAA NR* 785 6.05% due 5/01/2006 (f) 842
AAA Aaa 215 6.05% due 5/01/2021 216
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,000 Caledonia, Michigan, Community Schools, GO, Refunding, 6.625% due 5/01/2014 (b) 1,061
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,625 Central Michigan University Revenue Bonds, 5.50% due 4/01/2007 (c)(f) 1,695
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,000 Coldwater, Michigan, Community Schools, GO, 6.30% due 5/01/2004 (e)(f) 1,083
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,360 Decatur, Michigan, Public Schools, GO, Van Burn and Cass Counties, 5% due
5/01/2029 (d) 1,156
---------------------------------------------------------------------------------------------------------------------
Delta County, Michigan, Economic Development Corporation, Environmental
Improvement Revenue Refunding Bonds (Mead-Escanaba Paper), DATES (a):
NR* P1 300 Series D, 3.60% due 12/01/2023 300
NR* P1 100 Series E, 3.60% due 12/01/2023 100
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,000 Detroit, Michigan, Sewage Disposal Revenue Bonds, Series A, 5% due 7/01/2027 (e) 854
---------------------------------------------------------------------------------------------------------------------
Detroit, Michigan, Water Supply System Revenue Bonds, Senior Lien, Series A (e):
AAA Aaa 3,100 5% due 7/01/2021 2,703
AAA Aaa 3,150 5% due 7/01/2027 2,697
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 5,250 Eastern Michigan University Revenue Bonds, 5.50% due 6/01/2027 (c) 4,884
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,995 Eaton Rapids, Michigan, Public Schools, GO, Refunding, 5% due 5/01/2022 (e) 1,733
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,000 Fenton, Michigan, Area Public Schools, GO, 5% due 5/01/2021 (c) 1,740
---------------------------------------------------------------------------------------------------------------------
NR* Aaa 1,500 Fruitport, Michigan, Community Schools, GO, 5.30% due 5/01/2022 (c) 1,370
---------------------------------------------------------------------------------------------------------------------
Grand Ledge, Michigan, Public Schools District, GO (e)(f):
AAA Aaa 1,000 6.45% due 5/01/2004 1,089
AAA Aaa 8,000 6.60% due 5/01/2004 8,758
---------------------------------------------------------------------------------------------------------------------
AAA VMIG1+ 400 Grand Rapids, Michigan, Water Supply Revenue Refunding Bonds, VRDN,
3.35% due 1/01/2020 (a)(c) 400
---------------------------------------------------------------------------------------------------------------------
</TABLE>
Portfolio Abbreviations
To simplify the listings of MuniVest Michigan 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)
DATES Daily Adjustable Tax-Exempt Securities
GO General Obligation Bonds
HDA Housing Development Authority
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
RITR Residual Interest Trust Receipts
VRDN Variable Rate Demand Notes
4 & 5
<PAGE>
MuniVest Michigan Insured Fund, Inc., October 31, 1999
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
====================================================================================================================================
<C> <C> <C> <C> <S> <C>
Michigan Grand Traverse County, Michigan, Hospital Revenue Refunding Bonds (Munson
(continued) Healthcare), Series A (b):
AAA Aaa $2,000 6.25% due 7/01/2002 (f) $ 2,127
AAA Aaa 2,500 5.50% due 7/01/2018 2,350
AAA Aaa 1,445 6.25% due 7/01/2022 1,453
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,570 Grandville, Michigan, Public Schools District, GO, Refunding, 6.60% due
5/01/2005 (c)(f) 1,721
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,250 Greenville, Michigan, Public Schools, GO, 5.75% due 5/01/2004 (e)(f) 2,368
---------------------------------------------------------------------------------------------------------------------
Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility Revenue
Refunding and Improvement Bonds (Bronson Methodist Hospital) (e):
AAA Aaa 1,435 5.75% due 5/15/2016 1,398
AAA Aaa 1,000 5.875% due 5/15/2026 982
AAA Aaa 1,180 Series A, 6.375% due 5/15/2017 1,270
---------------------------------------------------------------------------------------------------------------------
Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility Revenue
Refunding Bonds (Bronson Methodist Hospital) (e):
NR* Aaa 2,500 5.25% due 5/15/2018 2,268
NR* Aaa 2,700 RIB, Series 138, 7.17% due 5/15/2028 (g) 2,246
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,660 Kent, Michigan, Hospital Finance Authority, Health Care Revenue Bonds
(Butterworth Health Systems), Series A, 5.625% due 1/15/2006 (e)(f) 2,801
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,000 Kent, Michigan, Hospital Finance Authority, Hospital Revenue Refunding Bonds
(Butterworth Hospital), Series A, 7.25% due 1/15/2013 (e) 2,293
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 3,235 Lincoln Park, Michigan, School District, GO, 7% due 5/01/2006 (c)(f) 3,637
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,900 Lowell, Michigan, Area Schools, GO, Refunding, 4.91%** due 5/01/2016 (c) 706
---------------------------------------------------------------------------------------------------------------------
Michigan Higher Education Student Loan Authority, Student Loan Revenue
Bonds, AMT (b):
AAA Aaa 2,000 Series XII-Q, 5.20% due 9/01/2010 1,913
AAA VMIG1+ 500 VRDN, Series XII-D, 3.55% due 10/01/2015 (a) 500
---------------------------------------------------------------------------------------------------------------------
Michigan Municipal Bond Authority, Revenue Refunding Bonds (Local Government
Loan Program), Series A (c):
AAA Aaa 1,000 6% due 12/01/2013 1,030
AAA Aaa 2,000 6.125% due 12/01/2018 2,024
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,500 Michigan State, HDA, Rental Housing Revenue Bonds, Series B, 5.10% due
10/01/2019 (e) 1,335
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 3,885 Michigan State, HDA, Rental Housing Revenue Refunding Bonds, Series A,
6.50% due 4/01/2023 (d) 4,072
---------------------------------------------------------------------------------------------------------------------
Michigan State Hospital Finance Authority, Revenue Refunding Bonds:
AAA Aaa 5,000 (Ascension Health Credit), Series A, 6.125% due 11/15/2023 (e) 5,018
AAA Aaa 2,305 (Mercy Health Services), Series T, 6.50% due 8/15/2013 (e) 2,448
AAA Aaa 3,000 (Saint John Hospital), Series A, 6% due 5/15/2013 (b)(h) 3,078
AAA Aaa 1,460 (Sparrow Obligated Group), 6.50% due 11/15/2011 (e) 1,537
---------------------------------------------------------------------------------------------------------------------
A1+ P1 600 Michigan State Strategic Fund, Limited Obligation Revenue Bonds, VRDN,
Reserve 1, 3.50% due 9/01/2030 (a) 600
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,500 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds
(Detroit Edison Company), AMT, Series A, 5.55% due 9/01/2029 (e) 2,277
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 4,250 Michigan State Trunk Line, Revenue Refunding Bonds, Series A, 4.75% due
11/01/2020 (e) 3,576
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,750 Mona Shores, Michigan, School District, GO, 5.80% due 5/01/2017 (c) 1,733
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 6,500 Monroe County, Michigan, Economic Development Corp., Limited Obligation Revenue
Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.95% due 9/01/2022 (c) 7,332
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 4,500 Monroe County, Michigan, PCR (Detroit Edison Company Project), AMT, Series CC,
6.55% due 6/01/2024 (e) 4,667
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,000 Montrose Township, Michigan, School District, GO, 5.60% due 5/01/2026 (e) 1,888
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,500 Muskegon Heights, Michigan, Public Schools, GO, 5% due 5/01/2029 (e) 2,126
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 4,000 Northern Michigan University, Revenue Refunding Bonds, 5% due 12/01/2025 (e) 3,433
---------------------------------------------------------------------------------------------------------------------
Northview, Michigan, Public School District, GO, Refunding (e):
AAA NR* 2,265 5.80% due 5/01/2006 (f) 2,399
AAA Aaa 235 5.80% due 5/01/2021 230
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,600 Novi, Michigan, Community School District, GO, 6.125% due 5/01/2003 (c)(f) 2,780
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,000 Oakland University, Michigan, Revenue Bonds, 5.75% due 5/15/2026 (e) 966
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,000 Reeths-Puffer Schools, Michigan, GO, Refunding, 6% due 5/01/2005 (c)(f) 1,067
---------------------------------------------------------------------------------------------------------------------
AA VMIG1+ 2,900 Royal Oak, Michigan, Hospital Finance Authority, Hospital Revenue Bonds (William
Beaumont Hospital), VRDN, Series L, 3.60% due 1/01/2027 (a) 2,900
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,750 Southgate, Michigan, Community School District, GO, 5% due 5/01/2025 (c) 1,505
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,000 Three Rivers, Michigan, Community Schools, GO, 6% due 5/01/2006 (e)(f) 1,070
---------------------------------------------------------------------------------------------------------------------
A1+ VMIG1+ 300 University of Michigan, University Hospital Revenue Bonds, VRDN, Series A,
3.50% due 12/01/2027 (a) 300
---------------------------------------------------------------------------------------------------------------------
A1+ VMIG1+ 600 University of Michigan, University Hospital Revenue Refunding Bonds, VRDN,
Series A, 3.50% due 12/01/2019 (a) 600
---------------------------------------------------------------------------------------------------------------------
A1+ VMIG1+ 800 University of Michigan, University Revenue Bonds (Medical Service Plan),
VRDN, Series A, 3.50% due 12/01/2027 (a) 800
---------------------------------------------------------------------------------------------------------------------
A1+ VMIG1+ 2,700 University of Michigan, University Revenue Refunding Bonds (Medical Service
Plan), VRDN, Series A-1, 3.50% due 12/01/2021 (a) 2,700
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 3,000 Warren, Michigan, Water and Sewer Revenue Bonds, 5.125% due 11/01/2023 (d) 2,641
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,500 Waterford, Michigan, School District, GO, 6.25% due 6/01/2004 (c)(f) 1,610
---------------------------------------------------------------------------------------------------------------------
NR* NR* 2,500 Wayne Charter County, Michigan, Airport Revenue Bonds, RIB, AMT, Series 68,
6.845% due 12/01/2017 (e)(g) 2,114
---------------------------------------------------------------------------------------------------------------------
Wayne State University, Michigan, University Revenue Refunding Bonds (c):
AAA Aaa 1,600 5.25% due 11/15/2019 1,458
AAA Aaa 1,375 5.125% due 11/15/2029 1,195
---------------------------------------------------------------------------------------------------------------------
</TABLE>
6 & 7
<PAGE>
MuniVest Michigan Insured Fund, Inc., October 31, 1999
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
====================================================================================================================================
<C> <C> <C> <C> <S> <C>
Michigan AAA Aaa $1,500 West Branch-Rose City, Michigan, GO, 5.50% due 5/01/2024 (c) $ 1,446
(concluded) ---------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,000 Western Michigan, University Revenue Bonds, Series B, 6.50% due 7/15/2021 (b) 2,074
---------------------------------------------------------------------------------------------------------------------
AAA Aaa 1,300 Ypsilanti, Michigan, School District, GO, Refunding, 5.75% due 5/01/2007 (c)(f) 1,368
====================================================================================================================================
Puerto Rico NR* NR* 3,485 Puerto Rico, Insured Trust Receipts, RITR, 7.02% due 7/01/2027 (e)(g) 3,010
- -- 2.1%
====================================================================================================================================
Total Investments (Cost -- $148,079) -- 101.3% 145,956
Liabilities in Excess of Other Assets -- (1.3%) (1,936)
--------
Net Assets -- 100.0% $144,020
========
====================================================================================================================================
</TABLE>
(a) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at October 31,
1999.
(b) AMBAC Insured.
(c) FGIC Insured.
(d) FSA Insured.
(e) MBIA Insured.
(f) Prerefunded.
(g) The interest rate is subject to change periodically and inversely based
upon prevailing market rates. The interest rate shown is the rate in
effect at October 31, 1999.
(h) Escrowed to maturity.
* Not Rated.
** Represents a zero coupon bond; the interest rate shown is the effective
yield at the time of purchase by the Fund.
+ Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<TABLE>
<CAPTION>
As of October 31, 1999
====================================================================================================================================
<C> <S> <C> <C>
Assets: Investments, at value (identified cost -- $148,078,817) (Note 1a) ................... $145,955,606
Cash ................................................................................ 184,281
Interest receivable ................................................................. 3,119,720
Prepaid expenses and other assets ................................................... 6,923
------------
Total assets ........................................................................ 149,266,530
------------
====================================================================================================================================
Liabilities: Payables:
Securities purchased .............................................................. $ 5,000,000
Dividends to shareholders (Note 1e) ............................................... 126,400
Investment adviser (Note 2) ....................................................... 69,513 5,195,913
------------
Accrued expenses .................................................................... 50,287
------------
Total liabilities ................................................................... 5,246,200
------------
====================================================================================================================================
Net Assets: Net assets .......................................................................... $144,020,330
============
====================================================================================================================================
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.05 per share (2,000 shares of AMPS* issued and
outstanding at $25,000 per share liquidation preference) .......................... $ 50,000,000
Common Stock, par value $.10 per share (7,387,697 shares issued and outstanding) .. $ 738,770
Paid-in capital in excess of par .................................................... 102,828,343
Undistributed investment income -- net .............................................. 507,042
Accumulated realized capital losses on investments -- net (Note 5) .................. (7,930,614)
Unrealized depreciation on investments -- net ....................................... (2,123,211)
------------
Total -- Equivalent to $12.73 net asset value per
share of Common Stock (market price -- $11.1875) .................................... 94,020,330
------------
Total capital ....................................................................... $144,020,330
============
====================================================================================================================================
</TABLE>
* Auction Market Preferred Stock.
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For the Year Ended October 31, 1999
====================================================================================================================================
<C> <S> <C> <C>
Investment Interest and amortization of premium and discount earned ................... $ 8,196,732
Income (Note 1d):
====================================================================================================================================
Expenses: Investment advisory fees (Note 2) .......................................... $ 762,499
Commission fees (Note 4) ................................................... 126,760
Professional fees .......................................................... 73,954
Accounting services (Note 2) ............................................... 59,110
Transfer agent fees ........................................................ 51,015
Directors' fees and expenses ............................................... 28,729
Listing fees ............................................................... 16,204
Printing and shareholder reports ........................................... 15,296
Custodian fees ............................................................. 12,092
Pricing fees ............................................................... 10,800
Other ...................................................................... 18,959
------------
Total expenses ............................................................. 1,175,418
------------
Investment income -- net ................................................... 7,021,314
------------
====================================================================================================================================
Realized & Unreal- Realized gain on investments -- net ........................................ 602,139
ized Gain (Loss) on Change in unrealized appreciation/depreciation on investments -- net ....... (13,422,873)
Investments -- Net ------------
(Notes 1b, 1d & 3): Net Decrease in Net Assets Resulting from Operations ....................... $ (5,799,420)
============
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
8 & 9
<PAGE>
MuniVest Michigan Insured Fund, Inc., October 31, 1999
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Year Ended October 31,
------------------------------
Increase (Decrease) in Net Assets: 1999 1998
====================================================================================================================================
<C> <S> <C> <C>
Operations: Investment income -- net ......................................................... $ 7,021,314 $ 7,180,087
Realized gain on investments -- net .............................................. 602,139 2,267,650
Change in unrealized appreciation/depreciation on investments -- net ............. (13,422,873) 1,560,039
------------ ------------
Net increase (decrease) in net assets resulting from operations .................. (5,799,420) 11,007,776
------------ ------------
====================================================================================================================================
Dividends to Investment income -- net:
Shareholders Common Stock ................................................................... (5,491,445) (5,538,150)
(Note 1e): Preferred Stock ................................................................ (1,523,100) (1,671,160)
------------ ------------
Net decrease in net assets resulting from dividends to shareholders .............. (7,014,545) (7,209,310)
------------ ------------
====================================================================================================================================
Capital Stock Value of shares issued to Common Stock shareholders in reinvestment of dividends . -- 111,746
Transactions ------------ ------------
(Note 4):
====================================================================================================================================
Net Assets: Total increase (decrease) in net assets .......................................... (12,813,965) 3,910,212
Beginning of year ................................................................ 156,834,295 152,924,083
------------ ------------
End of year* ..................................................................... $144,020,330 $156,834,295
============ ============
====================================================================================================================================
*Undistributed investment income -- net ........................................... $ 507,042 $ 500,273
============ ============
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year Ended October 31,
----------------------------------
Increase (Decrease) in Net Asset Value: 1999 1998 1997
==============================================================================================================================
<C> <S> <C> <C> <C>
Per Share Net asset value, beginning of year ................................ $ 14.46 $ 13.95 $ 13.65
Operating -------- -------- --------
Performance: Investment income -- net .......................................... .95 .98 1.01
Realized and unrealized gain (loss) on investments -- net ......... (1.73) .51 .30
-------- -------- --------
Total from investment operations .................................. (.78) 1.49 1.31
-------- -------- --------
Less dividends to Common Stock shareholders:
Investment income -- net ......................................... (.74) (.75) (.78)
-------- -------- --------
Effect of Preferred Stock activity:
Dividends to Preferred Stock shareholders:
Investment income -- net ....................................... (.21) (.23) (.23)
-------- -------- --------
Total effect of Preferred Stock activity .......................... (.21) (.23) (.23)
Net asset value, end of year ...................................... $ 12.73 $ 14.46 $ 13.95
======== ======== ========
Market price per share, end of year ............................... $11.1875 $ 14.625 $ 13.313
======== ======== ========
==============================================================================================================================
Total Investment Based on market price per share ................................... (19.02%) 16.12% 14.32%
Return:* ======== ======== ========
Based on net asset value per share ................................ (6.80%) 9.56% 8.60%
======== ======== ========
==============================================================================================================================
Ratios Based on Total expenses** .................................................. 1.14% 1.13% 1.12%
Average Net Assets ======== ======== ========
Of Common Stock: Total investment income -- net** .................................. 6.82% 6.94% 7.35%
======== ======== ========
Amount of dividends to Preferred Stock shareholders ............... 1.48% 1.62% 1.65%
======== ======== ========
Investment income -- net, to Common Stock shareholders ............ 5.34% 5.32% 5.70%
======== ======== ========
==============================================================================================================================
Ratios Based on Total expenses .................................................... .77% .76% .75%
Total Average ======== ======== ========
Net Assets:+** Total investment income -- net .................................... 4.60% 4.65% 4.89%
======== ======== ========
==============================================================================================================================
Ratios Based on Dividends to Preferred Stock shareholders ......................... 3.05% 3.34% 3.34%
Average Net Assets ======== ======== ========
Of Preferred Stock:
==============================================================================================================================
Supplemental Net assets, net of Preferred Stock, end of year (in thousands) .... $ 94,020 $106,834 $102,924
Data: ======== ======== ========
Preferred Stock outstanding, end of year (in thousands) ........... $ 50,000 $ 50,000 $ 50,000
======== ======== ========
Portfolio turnover ................................................ 44.38% 48.30% 22.43%
======== ======== ========
==============================================================================================================================
Leverage: Asset coverage per $1,000 ......................................... $ 2,880 $ 3,137 $ 3,058
======== ======== ========
==============================================================================================================================
Dividends Per Share Investment income -- net .......................................... $ 762 $ 836 $ 835
On Preferred Stock ======== ======== ========
Outstanding:
==============================================================================================================================
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year Ended October 31,
------------------------------
Increase (Decrease) in Net Asset Value: 1996 1995
===================================================================================================================
<C> <S> <C> <C>
Per Share Net asset value, beginning of year ................................ $ 13.65 $ 11.83
Operating -------- --------
Performance: Investment income -- net .......................................... 1.01 1.01
Realized and unrealized gain (loss) on investments -- net ......... --++ 1.82
-------- --------
Total from investment operations .................................. 1.01 2.83
-------- --------
Less dividends to Common Stock shareholders:
Investment income -- net ......................................... (.77) (.76)
-------- --------
Effect of Preferred Stock activity:
Dividends to Preferred Stock shareholders:
Investment income -- net ....................................... (.24) (.25)
-------- --------
Total effect of Preferred Stock activity .......................... (.24) (.25)
Net asset value, end of year ...................................... $ 13.65 $ 13.65
======== ========
Market price per share, end of year ............................... $ 12.375 $ 12.25
======== ========
===================================================================================================================
Total Investment Based on market price per share ................................... 7.40% 27.59%
Return:* ======== ========
Based on net asset value per share ................................ 6.32% 23.18%
======== ========
===================================================================================================================
Ratios Based on Total expenses** .................................................. 1.15% 1.17%
Average Net Assets ======== ========
Of Common Stock: Total investment income -- net** .................................. 7.35% 7.90%
======== ========
Amount of dividends to Preferred Stock shareholders ............... 1.77% 1.97%
======== ========
Investment income -- net, to Common Stock shareholders ............ 5.62% 5.93%
======== ========
===================================================================================================================
Ratios Based on Total expenses .................................................... .77% .77%
Total Average ======== ========
Net Assets:+** Total investment income -- net .................................... 4.91% 5.21%
======== ========
===================================================================================================================
Ratios Based on Dividends to Preferred Stock shareholders ......................... 3.54% 3.76%
Average Net Assets ======== ========
Of Preferred Stock:
===================================================================================================================
Supplemental Net assets, net of Preferred Stock, end of year (in thousands) .... $100,702 $100,729
Data: ======== ========
Preferred Stock outstanding, end of year (in thousands) ........... $ 50,000 $ 50,000
======== ========
Portfolio turnover ................................................ 47.10% 53.85%
======== ========
===================================================================================================================
Leverage: Asset coverage per $1,000 ......................................... $ 3,014 $ 3,015
======== ========
===================================================================================================================
Dividends Per Share Investment income -- net .......................................... $ 886 $ 939
On Preferred Stock ======== ========
Outstanding:
===================================================================================================================
</TABLE>
* 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
charges.
** Do not reflect the effect of dividends to Preferred Stock shareholders.
+ Includes Common and Preferred Stock average net assets.
++ Amount is less than $.01 per share.
See Notes to Financial Statements.
10 & 11
<PAGE>
MuniVest Michigan Insured Fund, Inc., October 31, 1999
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniVest Michigan Insured Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 as a non-diversified, closed-end management
investment company. The Fund's financial statements are prepared in accordance
with generally accepted accounting principles, which may require the use of
management accruals and estimates. 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
MVM. The following is a summary of significant accounting policies followed by
the Fund.
(a) Valuation of investments -- Municipal bonds are traded primarily in the
over-the-counter markets and are valued at the most recent bid price or yield
equivalent as obtained by the Fund's pricing service from dealers that make
markets in such securities. Financial futures contracts and options thereon,
which are traded on exchanges, are valued at their closing prices as of the
close of such exchanges. Options written or purchased are valued at the last
sale price in the case of exchange-traded options. In the case of options traded
in the over-counter-market, valuation is the last asked price (options written)
or the last bid price (options purchased). Securities with remaining maturities
of sixty days or less are valued at amortized cost, which approximates market
value. Securities and assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or under the
direction of the Board of Directors of the Fund, including valuations furnished
by a pricing service retained by the Fund, which may utilize a matrix system for
valuations. The procedures of the pricing service and its valuations are
reviewed by the officers of the Fund under 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.
o Financial futures contracts -- The Fund may purchase or sell financial futures
contracts and options on such futures contracts for the purpose of hedging the
market risk on existing securities or the intended purchase of securities.
Futures contracts are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Upon entering into a contract, the
Fund deposits and maintains as collateral such initial margin as required by the
exchange on which the transaction is effected. Pursuant to the contract, the
Fund agrees to receive from or pay to the broker an amount of cash equal to the
daily fluctuation in value of the contract. Such receipts or payments are known
as variation margin and are recorded by the Fund as unrealized gains or losses.
When the contract is closed, the Fund records a realized gain or loss equal to
the difference between the value of the contract at the time it was opened and
the value at the time it was closed.
o Options -- The Fund is authorized to write covered call options and purchase
put options. When the Fund writes an option, an amount equal to the premium
received by the Fund is reflected as an asset and an equivalent liability. The
amount of the liability is subsequently marked to market to reflect the current
market value of the option written.
When a security is purchased or sold through an exercise of an option, the
related premium paid (or received) is added to (or deducted from) the basis of
the security acquired or deducted from (or added to) the proceeds of the
security sold. When an option expires (or the Fund enters into a closing
transaction), the Fund realizes a gain or loss on the option to the extent of
the premiums received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
(c) Income taxes -- It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no Federal income tax provision is required.
(d) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Interest income is recognized on the accrual basis. Discounts and market
premiums are amortized into interest income. Realized gains and losses on
security transactions are determined on the identified cost basis.
(e) Dividends and distributions -- Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML &
Co."), which is the limited partner.
FAM is responsible for the management of the Fund's portfolio and provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, the Fund pays a monthly fee at
an annual rate of .50% of the Fund's average weekly net assets, including
proceeds from the issuance of Preferred Stock.
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, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
year ended October 31, 1999 were $68,920,983 and $63,151,174, respectively.
Net realized gains for the year ended October 31, 1999 and net unrealized losses
as of October 31, 1999 were as follows:
- --------------------------------------------------------------------------------
Realized Unrealized
Gains Losses
- --------------------------------------------------------------------------------
Long-term investments ................... $ 213,829 $(2,123,211)
Financial futures contracts ............. 388,310 --
----------- -----------
Total ................................... $ 602,139 $(2,123,211)
=========== ===========
- --------------------------------------------------------------------------------
As of October 31, 1999, net unrealized depreciation for Fed- eral income tax
purposes aggregated $2,123,211, of which $4,297,287 related to appreciated
securities and $6,420,498 related to depreciated securities. The aggregate cost
of investments at October 31, 1999 for Federal income tax purposes was
$148,078,817.
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
Shares issued and outstanding during the year ended October 31, 1999 remained
constant and during the year ended October 31, 1998 increased by 7,728 as a
result of dividend reinvestment.
Preferred Stock
Auction Market Preferred Stock ("AMPS") are shares of Preferred Stock of the
Fund, with a par value of $.05 per share and a liquidation preference of $25,000
per share, that entitle their holders to receive cash dividends at an annual
rate that may vary for the successive dividend periods. The yield in effect at
October 31, 1999 was 2.50%.
Shares issued and outstanding during the years ended October 31, 1999 and
October 31, 1998 remained constant.
The Fund pays commissions to certain broker-dealers at the end of each auction
at an annual rate ranging from .25% to .375%, calculated on the proceeds of each
auction. For the year ended October 31, 1999, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, an affiliate of FAM, earned $87,085 as commissions.
5. Capital Loss Carryforward:
At October 31, 1999, the Fund had a net capital loss carryforward of
approximately $5,991,000, of which $2,062,000 expires in 2002, $3,063,000
expires in 2003, $746,000 expires in 2004 and $120,000 expires in 2007. This
amount will be available to offset like amounts of any future taxable gains.
6. Reorganization Plan:
On September 21, 1999, the Fund's Board of Directors approved a plan of
reorganization, subject to shareholder approval and certain other conditions,
whereby MuniYield Michigan Insured Fund, Inc. would acquire substantially all of
the assets and liabilities of the Fund and MuniHoldings Michigan Insured Fund,
Inc. in exchange for newly issued shares of MuniYield Michigan Insured Fund,
Inc. These Funds are registered, non-diversified, closed-end management
investment companies. All three entities have a similar investment objective and
are managed by FAM.
7. Subsequent Event:
On November 8, 1999, the Fund's Board of Directors declared an ordinary income
dividend to Common Stock shareholders in the amount of $.063000 per share,
payable on November 29, 1999 to shareholders of record as of November 22, 1999.
12 & 13
<PAGE>
MuniVest Michigan Insured Fund, Inc., October 31, 1999
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders,
MuniVest Michigan Insured Fund, Inc.:
We have audited the accompanying statement of assets, liabilities and capital,
including the schedule of investments, of MuniVest Michigan Insured Fund, Inc.
as of October 31, 1999, the related statements of operations for the year then
ended and changes in net assets for each of the years in the two-year period
then ended, and the financial highlights for each of the years in the five-year
period then ended. These financial statements and the financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at October
31, 1999 by correspondence with the custodian and broker. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of MuniVest Michigan
Insured Fund, Inc. as of October 31, 1999, the results of its operations, the
changes in its net assets, and the financial highlights for the respective
stated periods in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
December 6, 1999
IMPORTANT TAX INFORMATION (unaudited)
All of the net investment income distributions paid by MuniVest Michigan Insured
Fund, Inc. during its taxable year ended October 31, 1999 qualify as tax-exempt
interest dividends for Federal income tax purposes. Additionally, there were no
capital gains distributions by the Fund during the year.
Please retain this information for your records.
MANAGED DIVIDEND POLICY
The Fund's dividend policy is to distribute substantially all of its net
investment income to its shareholders on a monthly basis. However, in order to
provide shareholders with a more consistent yield to the current trading price
of Common Stock of the Fund, the Fund may at times pay out less than the entire
amount of net investment income earned in any particular month and may at times
in any particular month pay out such accumulated but undistributed income in
addition to net investment income earned in that month. As a result, the
dividends paid by the Fund for any particular month may be more or less than the
amount of net investment income earned by the Fund during such month. The Fund's
current accumulated but undistributed net investment income, if any, is
disclosed in the Statement of Assets, Liabilities and Capital, which comprises
part of the financial information included in this report.
YEAR 2000 ISSUES
Many computer systems were designed using only two digits to designate years.
These systems may not be able to distinguish the Year 2000 from the Year 1900
(commonly known as the "Year 2000 Problem"). The Fund could be adversely
affected if the computer systems used by the Fund's management or other Fund
service providers do not properly address this problem before January 1, 2000.
The Fund's management expects to have addressed this problem before then, and
does not anticipate that the services it provides will be adversely affected.
The Fund's other service providers have told the Fund's management that they
also expect to resolve the Year 2000 Problem, and the Fund's management will
continue to monitor the situation as the Year 2000 approaches. However, if the
problem has not been fully addressed, the Fund could be negatively affected. The
Year 2000 Problem could also have a negative impact on the securities in which
the Fund invests and this could hurt the Fund's investment returns.
14 & 15
<PAGE>
Officers and Directors
Terry K. Glenn, President and Director
Donald Cecil, Director
M. Colyer Crum, Director
Edward H. Meyer, Director
Jack B. Sunderland, Director
J. Thomas Touchton, Director
Fred G. Weiss, Director
Arthur Zeikel, Director
Vincent R. Giordano, Senior Vice President
Kenneth A. Jacob, Vice President
Fred K. Stuebe, Vice President
Donald C. Burke, Vice President and
Treasurer
Alice A. Pellegrino, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Stock:
The Bank of New York
100 Church Street
New York, NY 10286
NYSE Symbol
MVM
This report, including the financial information herein, is transmitted to the
shareholders of MuniVest Michigan 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.
MuniVest Michigan
Insured Fund, Inc.
Box 9011
Princeton, NJ
08543-9011 #16638--10/99
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