MUNIVEST
NEW JERSEY
FUND, INC.
Semi-Annual Report April 30, 1994
This report, including the financial information herein, is
transmitted to the shareholders of MuniVest New Jersey 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 con-
sidered a representation of future performance. The Fund has
leveraged its Common Stock by issuing Preferred Stock to pro-
vide the Common Stock shareholders with a potentially higher
rate of return. Leverage creates risks for Common Stock share-
holders, including the likelihood of greater volatility of
net asset value and market price of shares of the Common Stock,
and the risk that fluctuations in the short-term dividend rates
of the Preferred Stock may affect the yield to Common Stock
shareholders.
MuniVest New Jersey Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MUNIVEST NEW JERSEY FUND, INC.
The Benefits and
Risks of
Leveraging
<PAGE>
MuniVest New Jersey 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 cap-
italization of $100 million and the issuance of Preferred Stock
for an additional $50 million, creating a total value of $150
million available for investment in long-term municipal bonds.
If prevailing short-term interest rates are approximately 3% and
long-term interest rates are approximately 6%, the yield curve
has a strongly positive slope. The fund pays dividends on the $50
million of Preferred Stock based on the lower short-term interest
rates. At the same time, the fund's total portfolio of $150 mill-
ion earns the income based on long-term interest rates.
In this case, the dividends paid to Preferred Stock shareholders
are significantly lower than the income earned on the fund's
long-term investments, and therefore the Common Stock 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
pick-up on the Common Stock will be reduced. 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, de-
cline. 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 Pre-
ferred Stock does not fluctuate. In addition to the decline in
net asset value, the market value of the fund's Common Stock may
also decline.
Officers and
Directors
<PAGE>
Arthur Zeikel, President and Director
Donald Cecil, Director
M. Colyer Crum, Director
Edward H. Meyer, Director
Jack B. Sunderland, Director
J. Thomas Touchton, Director
Terry K. Glenn, Executive Vice President
Donald C. Burke, Vice President
Vincent R. Giordano, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Robert E. Putney, III, Assistant Secretary
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, New York 10286
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
Custodian
The Bank of New York
110 Washington Street
New York, New York 10286
NYSE Symbol
MVJ
DEAR SHAREHOLDER
For the six-month period ended April 30, 1994, the Common Stock
of MuniVest New Jersey Fund, Inc. earned $0.442 per share in-
come dividends, which includes earned and unpaid dividends of
$0.064. This represents a net annualized yield of 6.91% based
on a month-end per share net asset value of $12.90. Over the same
period, the total investment return on the Funds' Common Stock
was -10.45%, based on a change in per share net asset value from
$14.89 to $12.90, and assuming reinvestment of $0.450 per share
income dividends.
For the six-month period ended April 30, 1994, the Fund's Auction
Market Preferred Stock had an average yield of 2.80%.
<PAGE>
The Environment
Inflationary expectations and investor sentiment changed for the
worse during the three-month period April 30, 1994. Following
stronger-than-expected economic results through year-end 1993,
the Federal Reserve Board broke with tradition on February 4,
1994 and publicly announced a modest 25 basis point (0.25%) in-
crease in short-term interest rates. At the March 22 meeting of
the Federal Open Market Committee, the Federal Reserve Board
again raised the Federal Funds rate by 25 basis points, followed
by another 25 basis point increase on April 18.
Rather than view the Federal Reserve Board's first tightening
move as a preemptive strike against inflation, fixed-income
investors focused on Chairman Greenspan's implicit promise of
further tightening should the rate of inflation accelerate, and
bond prices declined sharply. The setback in the bond market was
also reflected in greater stock market volatility. While the sec-
ond and third increases in the Federal Funds rate were less of
a surprise, investors remained concerned that interest rates
would trend upward sharply as the central bank aggressively at-
tempted to contain the inflationary pressures of an improving
economy. At the same time, highly leveraged investors were forced
to liquidate positions in the face of declining stock and bond
prices. Investor confidence was not restored with the announce-
ment of the surprisingly slow 2.6% gross domestic product
growth rate for the first calendar quarter of 1994. Instead,
investors focused on the higher-than-expected (but still
moderate) broad inflation measures and became concerned that
business activity was beginning to stagnate as inflationary
pressures were increasing.
The volatility in the US capital markets was mirrored in inter-
national markets during the period. Political and economic
developments, along with concerns of heightened global infla-
tionary pressures, led to a sell-off in most capital markets,
especially the emerging markets that had appreciated strongly
in 1993.
<PAGE>
The Municipal Market
During the six months ended April 30, 1994, tax-exempt bond
yields exhibited considerable volatility as they rose to their
highest level in the past two years. As measured by the Bond
Buyer Revenue Bond Index, the yield on newly issued municipal
bonds, maturing in 30 years, rose over 90 basis points to 6.42%
by the end of April. Yields on seasoned municipal revenue bonds
rose by over 100 basis points in sympathy with the equally dram-
atic increase in long-term US Treasury bond yields. By the end
of April, yields on US Treasury securities rose by over 95
basis points to approximately 7.30%.
Long-term tax-exempt bond yields were essentially unchanged from
the end of October 1993 to the end of January 1994. However, on a
weekly basis, tax-exempt bond yields fluctuated by as much as 15
basis points as investors were unable to reconcile the rapid eco-
nomic growth seen late last year with continued low inflation.
Following the initial interest rate increase by the Federal Re-
serve Board in early February, municipal bond prices began to
erode in concert with taxable bond prices as investors began to
sell securities in anticipation of further interest rate in-
creases. This fear led investors to withdraw from the tax-exempt
market. From early February to the end of March, total assets
of all tax-exempt bond funds declined by $14 billion to $247
billion. This decline in investor demand, coupled with fears
that the robust economic recovery seen during the fourth quar-
ter of 1993 would continue well into 1994, helped push municipal
bond yields higher in February and March. Attracted by tax-exempt
yields in excess of 6.25%, investor demand returned in April,
allowing yields to decline approximately 15 basis points to end
the April period at approximately 6.40%.
A rise in tax-exempt bond yields the magnitude of that experienced
over the past six months has not been seen since 1987 when muni-
cipal bond rates rose 250 basis points between March and October
of that year. It is very important to note that the recent muni-
cipal bond price declines were largely the result of consistent
and insistent selling pressures over the last two months. In 1987,
the tax-exempt bond market was much more volatile and, at times,
chaotic as investors sought to liquidate positions without concern
for fundamental value. For the most part, the recent price deter-
ioration has been orderly, and the municipal bond market's liquid-
ity and integrity have not been challenged or jeopardized.
<PAGE>
To a large extent, the municipal bond market has continued to be
supported by its strong technical position. New-issue volume for
the last six months has been less than $105 billion. This rep-
resents a decline of approximately 20% versus the comparable
period a year ago. This decline was expected and has been dis-
cussed in previous shareholder reports. This reduced issuance
has minimized potential selling pressure in recent months since
institutional investors have been wary of selling appreciable
amounts of securities that they may be unable to replace later
this year at any price level. We expect this decline in issuance
to continue since we anticipate recent yield increases to sig-
nificantly impact future municipal bond issuance. Just as higher
mortgage rates slow home mortgage refinancings, the recent rise
in bond yields will prevent bond refinancings from becoming
the driving force in bond issuance in 1994 as they were in 1993.
Despite recent price declines, tax-exempt securities remain among
the most attractive investment alternatives available. After the
recent yield increases, longer-term municipal securities yielded
approximately 90% of comparable US Treasury yields. Purchasers of
these municipal bonds also accrue substantial after-tax yield
advantages. To investors in the 39% marginal Federal income tax
bracket, the purchase of a municipal bond yielding 6.50% rep-
resents an after-tax equivalent of 10.65%. With prevailing es-
timates of 1994 inflation at no more than 3%--4%, real after-
tax rates in excess of 6.50% easily compensate longer-term
investors for much of the price volatility recently experienced.
Portfolio Strategy
The New Jersey sector of the tax-exempt arena closely mirrored
the volatility experienced within the municipal market in general
during the six months ended April 30, 1994. While New Jersey
municipal bonds remained a relatively scarce commodity through-
out the period, as the outlook for fixed-income investments be-
came more uncertain and investors appeared to assume a more de-
fensive position, these securities were repriced to reflect the
rise in yields seen throughout the municipal bond market. Further
provoking this adjustment was the fact that New Jersey municipal
bonds entered the period at relatively expensive levels because
of the positive technical factors which has served as the found-
ation for the trading of these securities throughout much of the
past year. While national issuance during the past six months has
declined more than 19% when compared to the same period of last
year, New Jersey tax-exempt issuance contracted by more than 56%.
Subsequently, as yields began their adjustment during the period,
New Jersey municipal bonds began the process from some of the
market's most aggressive levels.
<PAGE>
During the six months ended April 30, 1994, portfolio decisions
were guided by a conservative investment strategy. While the Fund
kept a near fully invested stance throughout the period, its struc-
ture at the start of the period was less aggressive than general
market fundamentals may have warranted. As the outlook for interest
rates in general became more uncertain, we sought to capitalize
on the opportunities available in such an environment by drawing
down the average portfolio maturity and focusing on the generation
of tax-exempt income. To implement this strategy, we purchased
issues offering strong qualities of protection from redemption
prior to maturity and superior qualities of creditworthiness rel-
ative to the universe of New Jersey tax-exempt bonds.
In Conclusion
We appreciate your interest in the MuniVest New Jersey Fund,
Inc., and we look forward to serving your investment needs and
objectives in the months and years to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
May 26, 1994
Portfolio
Abbreviations
To simplify the listings of MuniVest New Jersey Fund, Inc.'s
portfolio holdings in the Schedule of Investments, we have
abbreviated the names of some of the securities according to the
list at right.
AMT Alternative Minimum Tax (subject to)
EDA Economic Development Authority
GO General Obligation Bonds
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Delaware--1.5% AAA Aaa $ 2,000 Delaware River and Bay Authority, Delaware, Revenue Refunding Bonds,
4.75% due 1/01/2024 (b) $ 1,606
New AAA Aaa 2,500 Atlantic City, New Jersey, Board of Education Revenue Bonds, 6.125%
Jersey--84.9% due 12/01/2011 (d) 2,534
A- NR 2,500 Atlantic City, New Jersey, Municipal Utilities Authority, Water Systems
Revenue Refunding Bonds, 5.75% due 5/01/2017 2,334
AAA Aaa 750 Cape May County, New Jersey, Municipal Utilities Authority, Revenue
Refunding Bonds, Series A, 6% due 1/01/2011 (b) 751
NR Aa 2,795 Cherry Hill Township, New Jersey, GO, Refunding, 6.20% due 6/01/2008 2,862
AAA Aaa 2,510 Essex County, New Jersey, Improvement Authority, Orange Municipal
Utilities and Leasing Authority Revenue Bonds, 6% due 12/01/2017 (b) 2,466
AAA Aaa 1,500 Hoboken, Union City, Weehawken, New Jersey, Sewer Authority, Sewer
Revenue Refunding Bonds, 6.20% due 8/01/2019 (b) 1,501
AA- Aa 4,500 New Jersey Building Authority, State Building Revenue Refunding Bonds,
5% due 6/15/2013 3,909
NR VMIG1 1,000 New Jersey EDA, Dock Facility Revenue Refunding Bonds (Bayonne
International Matex Tank Terminal Project), Series A, VRDN, 3% due
12/01/2027 (a) 1,000
NR P1 1,500 New Jersey EDA, Economic Development Revenue Refunding Bonds (Dow Chemical-
El Dorado Term-1984-A), VRDN, 2.75% due 5/01/2001 (a) 1,500
BBB+ A3 5,000 New Jersey EDA, Natural Gas Facilities Revenue Bonds (Elizabethtown Gas
Company Project), Series A, AMT, 6.75% due 10/01/2021 5,227
NR Aaa 1,100 New Jersey EDA, Revenue Bonds (Hoffman-Louisiana Roche Inc. Project),
AMT, VRDN, 2.95% due 11/01/2011 (a) 1,100
A+ A1 9,535 New Jersey EDA, State Contract Economic Recovery Bonds, Series A, 6%
due 3/15/2021 9,036
<PAGE>
New Jersey Health Care Facilities Financing Authority Revenue Bonds:
A- A 2,850 (Chilton Memorial Hospital), Series D, 5% due 7/01/2013 2,379
NR Baa1 3,240 (Deborah Heart and Lung Center), 6.20% due 7/01/2013 3,017
AAA Aaa 2,700 (Mountainside Hospital), 5.50% due 7/01/2014 (b) 2,493
AAA Aaa 4,650 Refunding (Underwood Memorial Hospital), Series B, 5.70% due
7/01/2023 (d) 4,338
NR Baa 2,100 (Southern Ocean County Hospital), Series A, 6.125% due 7/01/2013 1,979
NR Baa 4,200 (Southern Ocean County Hospital), Series A, 6.25% due 7/01/2023 3,964
New Jersey Sports and Exposition Authority Revenue Bonds (State Contract):
A+ Aa 2,500 Series A, 6% due 3/01/2021 2,416
A1 VMIG1 550 Series C, VRDN, 3% due 9/01/2024 (a)(b) 550
New Jersey State Highway Authority, General Revenue Bonds (Garden
State Parkway):
AA- A1 2,300 5.90% due 1/01/2004 2,386
AA- A1 2,000 6.25% due 1/01/2014 2,014
AAA Aaa 2,200 New Jersey State Housing Authority and Mortgage Finance Agency, Home
Buyer Revenue Bonds, Series F-2, AMT, 6.30% due 4/01/2025 (b) 2,167
A+ NR 5,500 New Jersey State Housing Authority and Mortgage Finance Agency, Housing
Revenue Refunding Bonds, Series A, 6.95% due 11/01/2013 5,688
New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds:
A A 1,000 Series C, 6.50% due 1/01/2008 1,055
A A 5,000 Series C, 6.50% due 1/01/2016 5,147
NR VMIG1 3,200 Series D, VRDN, 3.15% due 1/01/2018 (a)(c) 3,200
AAA Aaa 1,000 New Jersey Wastewater Treatment Trust, Insured Revenue Bonds,
4.80% due 3/01/2011 (d) 861
AA- Aa 1,295 Ocean County, New Jersey, Utilities Authority, Wastewater Revenue
Refunding Bonds, Series B, 5.75% due 1/01/2018 1,223
Ocean Township, New Jersey, Sewer Authority, Sewer Revenue Bonds,
Series B (c):
AAA Aaa 1,600 6% due 12/01/2007 1,625
AAA Aaa 1,705 6% due 12/01/2008 1,725
Port Authority of New York and New Jersey, Consolidated Revenue Bonds:
AA- A1 5,000 77th Series, AMT, 6.25% due 1/15/2027 4,884
AAA Aaa 1,450 83rd Series, 6.375% due 10/15/2017 (b) 1,465
A1+ VMIG1 200 Port Authority of New York and New Jersey, Special Obligation Revenue
Bonds (Versatile Structure Obligations), Series 1, VRDN, 3% due
8/01/2028 (a) 200
<PAGE>
A+ NR 1,500 South Jersey Port Corporation, New Jersey, Revenue Refunding Bonds
(Marine Terminal), Series G, 5.60% due 1/01/2023 1,350
AA A 1,750 University of Medicine and Dentistry, New Jersey, Series E, 6.50%
due 12/01/2018 1,782
Puerto A1 VMIG1 1,300 Puerto Rico Commonwealth, Revenue Refunding Bonds (Government
Rico--14.3% Development Bank), VRDN, 3% due 12/01/2015 (a) 1,300
A Baa1 5,085 Puerto Rico Commonwealth, Revenue Refunding Bonds, Series A, 6%
due 7/01/2014 4,867
Puerto Rico, Electric Power Authority, Power Revenue Bonds:
A- Baa1 2,250 Refunding, Series S, 7% due 7/01/2006 2,442
A- Baa1 5,000 Series R, 6.25% due 7/01/2017 4,909
A+ A 2,000 Puerto Rico, Telephone Authority Revenue Refunding Bonds, Series L,
6.125% due 1/01/2022 1,967
Total Investments (Cost--$114,837)--100.7% 109,219
Liabilities in Excess of Other Assets--(0.7)% (809)
--------
Net Assets--100.0% $108,410
========
<FN>
(a) The interest rate is subject to change periodically based
upon the prevailing market rate. The interest rate shown
is the rate in effect at April 30, 1994.
(b) MBIA Insured.
(c) FGIC Insured.
(d) AMBAC Insured.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of April 30, 1994
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$114,836,864) (Note 1a) $109,219,082
Cash 31,256
Interest receivable 1,953,307
Deferred organization expenses (Note 1e) 28,375
Prepaid expenses 4,813
------------
Total assets 111,236,833
------------
Liabilities: Payables:
Securities purchased $ 2,426,673
Dividends to shareholders (Note 1g) 270,078
Investment adviser (Note 2) 41,386 2,738,137
------------
Accrued expenses 88,700
------------
Total liabilities 2,826,837
------------
<PAGE>
Net Assets: Net assets $108,409,996
============
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.10 per share (750 shares of AMPS*
issued and outstanding at $50,000 per share liquidation
preference) $ 37,500,000
Common Stock, par value $.10 per share (5,497,953 shares
issued and outstanding) $ 549,795
Paid-in capital in excess of par 76,520,088
Undistributed investment income--net 382,817
Accumulated realized capital loss--net (924,922)
Unrealized depreciation on investments--net (5,617,782)
------------
Total--Equivalent to $12.90 net asset value per share of
Common Stock (market price--$11.875) 70,909,996
------------
Total capital $108,409,996
============
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 1994
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 3,201,869
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 287,583
Commission fees (Note 4) 66,809
Professional fees 33,392
Accounting services (Note 2) 21,124
Printing and shareholder reports 14,908
Transfer agent fees 12,438
Directors' fees and expenses 10,487
Listing fees 9,001
Amortization of organization expenses (Note 1e) 3,000
Pricing fees 2,197
Custodian fees 1,638
Other 6,815
------------
Total expenses before reimbursement 469,392
Reimbursement of expenses (Note 2) (33,997)
------------
Total expenses after reimbursement 435,395
------------
Investment income--net 2,766,474
------------
Realized & Realized loss on investments--net (924,922)
Unrealized Loss on Change in unrealized appreciation on investments--net (9,803,015)
Investments--Net ------------
(Notes 1d & 3): Net Decrease in Net Assets Resulting from Operations $ (7,961,463)
============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the Period
Months Ended April 30, 1993++
Increase (Decrease) in Net Assets: April 30, 1994 to Oct. 31, 1993
<S> <S> <C> <C>
Operations: Investment income--net $ 2,766,474 $ 2,649,840
Realized gain (loss) on investments--net (924,922) 227,233
Unrealized appreciation/depreciation on investments--net (9,803,015) 4,185,233
------------ ------------
Net increase (decrease) in net assets resulting from operations (7,961,463) 7,062,306
------------ ------------
Dividends to Investment income--net:
Shareholders Common Stock (2,277,710) (1,881,407)
(Note 1g): Preferred Stock (514,890) (359,490)
Realized gain on investments--net:
Common Stock (196,408) --
Preferred Stock (30,825) --
------------ ------------
Net decrease in net assets resulting from dividends to
shareholders (3,019,833) (2,240,897)
------------ ------------
Common & Net proceeds from issuance of Common Stock -- 76,337,577
Preferred Stock Proceeds from issuance of Preferred Stock -- 37,500,000
Transactions Offering and underwriting costs resulting from the issuance of
(Notes 1e & 4): Common Stock 12,188 --
Offering and underwriting costs resulting from the issuance of
Preferred Stock 20,840 (733,083)
Value of shares issued to Common Stock shareholders in
reinvestment of dividends 221,712 1,110,644
------------ ------------
Net increase in net assets derived from capital stock transactions 254,740 114,215,138
------------ ------------
Net Assets: Total increase (decrease) in net assets (10,726,556) 119,036,547
Beginning of period 119,136,552 100,005
------------ ------------
End of period* $108,409,996 $119,136,552
============ ============
<FN>
*Undistributed investment income--net $ 382,817 $ 408,943
============ ============
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Six For the Period
Months Ended April 30, 1993++
Increase (Decrease) in Net Asset Value: April 30, 1994 to Oct. 31, 1993
<S> <S> <C> <C>
Per Share Net asset value, beginning of period $ 14.89 $ 14.18
Operating ------------ ------------
Performance: Investment income--net .50 .49
Realized and unrealized gain on investments--net (1.94) .81
------------ ------------
Total from investment operations (1.44) 1.30
------------ ------------
Less dividends to Common Stock shareholders:
Investment income--net (.41) (.35)
Realized gain on investments--net (.04) --
------------ ------------
Total dividends to Common Stock shareholders (.45) (.35)
------------ ------------
Capital charge resulting from issuance of Common Stock -- (.04)
------------ ------------
Effect of Preferred Stock activity++++:
Dividends and distributions to Preferred Stock shareholders:
Investment income--net (.09) (.07)
Realized gain on investments--net (.01) --
Capital charge resulting from issuance of Preferred Stock -- (.13)
------------ ------------
Total effect of Preferred Stock activity (.10) (.20)
------------ ------------
Net asset value, end of period $ 12.90 $ 14.89
============ ============
Market price per share, end of period $ 11.875 $ 15.00
============ ============
Total Investment Based on market price per share (18.17)%+++ 2.38%+++
Return:** ============ ============
Based on net asset value per share (10.45)%+++ 7.50%+++
============ ============
<PAGE>
Ratios to Average Expenses, net of reimbursement .75%* .48%*
Net Assets:*** ============ ============
Expenses .81%* .84%*
============ ============
Investment income--net 4.79%* 4.85%*
============ ============
Supplemental Net assets, net of Preferred Stock, end of period (in thousands) $ 70,910 $ 81,637
Data: ============ ============
Preferred Stock outstanding, end of period (in thousands) $ 37,500 $ 37,500
============ ============
Portfolio turnover 25.12% 20.15%
============ ============
Dividends Per Investment income--net $ 687 $ 479
Share on Preferred
Stock Outstanding:
<FN>
++Commencement of Operations.
++++The Fund's Preferred Stock was issued on June 1, 1993.
+++Aggregate total investment return.
*Annualized.
**Total investment returns based on market value, which
can be significantly greater or lesser than the net
asset value, result in substantially different returns.
Total investment returns exclude the effects of sales
loads.
***Do not reflect the effect of dividends to Preferred Stock
shareholders.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniVest New Jersey Fund, Inc. (the "Fund") is registered under
the Investment Company Act of 1940 as a non-diversified, closed-end
management investment company. The Fund's Common Stock is listed
on the New York Stock Exchange under the symbol MVJ. 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. Finan-
cial futures contracts, which are traded on exchanges, are valued
at their closing prices as of the close of such exchanges. Options,
which are traded on exchanges, are valued at their last sale price
as of the close of such exchanges or, lacking any sales, at the
last available bid price. Securities with remaining maturities of
sixty days or less are valued at amortized cost. Securities for
which market quotations are not readily available are valued at
fair value as determined in good faith by or under the direction
of the Board of Directors of the Fund.
(b) Financial futures contracts--The Fund may purchase or sell
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
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.
(c) Income taxes--It is the Fund's policy to comply with the re-
quirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income
tax provision is required.
(d) Security transactions and investment income--Security trans-
actions are recorded on the dates the transactions are entered
into (the trade dates). Interest income is recognized on the ac-
crual basis. Discounts and market premiums are amor-
tized into interest income. Realized gains and losses on security
transactions are determined on the identified cost basis.
<PAGE>
(e) Deferred organization and offering expenses--Deferred organ-
ization expenses are amortized on a straight-line basis over
a five-year period beginning with the commencement of operations
of the Fund. Direct expenses relating to the public offering of
the Fund's Stock were charged to capital at the time of issuance
of the shares.
(f) Non-income producing investments--Written and purchased options
are non-income producing investments.
(g) Dividends and distributions--Dividends from net investment in-
come are declared and paid monthly. Distributions of capital gains
are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. (FAM). Effective January 1, 1994, the
investment advisory business of FAM was reorganized from a corp-
oration to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc., an indirect wholly-owned subsidiary of
ML & Co. The limited partners are ML & Co. and Merrill Lynch
Investment Management, Inc. ("MLIM"), which is also an indirect
wholly-owned subsidiary of ML & Co.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee at an annual rate of 0.50%
of the Fund's average weekly net assets. For the six months ended
April 30, 1994, FAM earned fees of $287,583, of which $33,997 was
voluntarily waived.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of FAM, MLIM, Merrill Lynch, Pierce, Fenner & Smith Inc.
("MLPF&S"), and/or ML & Co.
<PAGE>
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the period ended April 30, 1994 were $23,756,934 and $28,263,180,
respectively.
Net realized and unrealized losses as of April 30, 1994 were as
follows:
Realized Unrealized
Losses Losses
Long-term investments $ (924,922) $ (5,617,782)
------------ -------------
Total $ (924,922) $ (5,617,782)
============ =============
As of April 30, 1994, net unrealized appreciation for Federal
income tax purposes aggregated $5,617,782, of which $73,158 re-
lated to appreciated securities and $5,690,940 related to deprec-
iated securities. The aggregate cost of investments at April 30,
1994 for Federal income tax purposes was $114,836,864.
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 period from April 30, 1993 to April 30, 1994, shares sold
were 5,497,953 and shares outstanding increased by 15,258 as a
result of dividend reinvestment. At April 30, 1994 total paid-in
capital amounted to $77,069,883.
Preferred Stock
Auction Market Preferred Stock ("AMPS") are shares of Preferred
Stock of the Fund that entitle their holders to receive cash di-
vidends at an annual rate that may vary for the successive divi-
dend periods. The yield in effect at April 30, 1994 was 2.80%.
In connection with the offering of AMPS, the Fund reclassified
750 shares of unissued capital stock as AMPS. For the period ended
April 30, 1994, there were 750 AMPS authorized, issued and out-
standing with a liquidation preference of $50,000 per share plus
accumulated and unpaid dividends of $17,310.
<PAGE>
The Fund pays commissions to certain broker-dealers at the end
of each auction at the annual rate of one-quarter of 1% calcu-
lated on the proceeds of each auction. For the six months ended
April 30, 1994, MLPF&S, an affiliate of MLIM, earned $38,995
as commissions.
5. Subsequent Event:
On May 6, 1994, the Fund's Board of Directors declared an ordin-
ary income dividend to Common Stock shareholders in the amount of
$.064357 per share, payable on May 27, 1994 to shareholders of
record as of May 17, 1994.
PER SHARE INFORMATION
<TABLE>
Per Share Selected
Quarterly Financial
Data*
<CAPTION>
Dividends/Distributions
Net Realized Unrealized
Investment Gains Gains Net Investment Income Capital Gains
For the Period Income (Losses) (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
April 30, 1993++ to July 31, 1993 $.23 $(.01) $ .28 $.13 $.03 -- --
August 1, 1993 to October 31, 1993 .26 .05 .49 .22 .04 -- --
November 1, 1993 to January 31, 1994 .26 .01 .05 .21 .04 $.04 $.01
February 1, 1994 to April 30, 1994 .24 (.16) (1.84) .20 .05 -- --
<CAPTION>
Net Asset Value Market Price**
For the Period High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
April 30, 1993++ to July 31, 1993 $14.59 $14.10 $15.125 $14.25 261
August 1, 1993 to October 31, 1993 15.18 14.36 15.25 14.625 326
November 1, 1993 to January 31, 1994 14.91 14.39 15.125 13.75 340
February 1, 1994 to April 30, 1994 14.86 12.33 14.875 11.50 336
<FN>
++Commencement of Operations.
*Calculations are based upon Common Shares outstanding at the end of each period.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
