MUNIVEST
NEW JERSEY
FUND, INC.
FUND LOGO
Annual Report
October 31, 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 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.
MuniVest
New Jersey Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
<PAGE>
MUNIVEST NEW JERSEY FUND, INC.
The Benefits and
Risks of
Leveraging
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
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.
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, decline. Furthermore, if long-term interest rates rise,
the Common Stock's net asset value will reflect the full decline
in the price of the portfolio's investments, since the value of
the fund's Preferred Stock does not fluctuate. In addition to the
decline in net asset value, the market value of the fund's Common
Stock may also decline.
<PAGE>
Officers and
Directors
Arthur Zeikel, President and Director
Donald Cecil, Director
M. Colyer Crum, Director
Edward H. Meyer, Director
Jack B. Sunderland, Director
J. Thomas Touchton, Director
Terry K. Glenn, Executive Vice President
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
Custodian
The Bank of New York
90 Washington Street
New York, New York 10286
NYSE Symbol
MVJ
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, New York 10286
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
<PAGE>
DEAR SHAREHOLDER
For the year ended October 31, 1994, the Common Stock of MuniVest
New Jersey Fund, Inc. earned $0.845 per share income dividends,
which includes earned and unpaid dividends of $0.068. This
represents a net annualized yield of 6.94%, based on a month-end
net asset value of $12.18 per share. Over the same period, the
total investment return on the Fund's Common Stock was -12.43%,
based on a change in per share net asset value from $14.89 to
$12.18, and assuming reinvestment of $0.850 per share income
dividends.
For the six-month period ended October 31, 1994, the total
investment return on the Fund's Common Stock was -2.21%,
based on a change in per share net asset value from $12.90 to
$12.18, and assuming reinvestment of $0.400 per share income
dividends.
For the six-month period ended October 31, 1994, the Fund's
Auction Market Preferred Stock had an average yield of 2.80%.
The Environment
As discussed in our last report to shareholders, the Federal
Reserve Board moved to counteract inflationary pressures by
tightening monetary policy. This trend continued during the May--
October period. Despite the series of preemptive strikes against
inflation by the central bank, concerns of increasing
inflationary pressures continued to prompt volatility in the US
capital markets during the period. In addition, the weakness of
the US dollar in foreign exchange markets prolonged stock and
bond market declines.
Ongoing strength in the manufacturing sector and better-than-
expected economic results continue to fuel speculation that the
Federal Reserve Board will continue to raise short-term interest
rates in the months ahead. However, although consumer spending is
increasing, it is doing so at a lower rate than has been the case
in recent economic recoveries. In the weeks ahead, investors will
continue to assess economic data and inflationary trends in order
to gauge whether further increases in short-term interest rates
are imminent. Continued indications of moderate and sustainable
levels of economic growth would be positive for the US capital
markets. At the same time, greater US dollar stability in foreign
exchange markets would help to dampen expectations of
significantly higher short-term interest rates.
<PAGE>
The Municipal Market
The long-term tax-exempt market continued to erode throughout the
three months ended October 31, 1994. As measured by the Bond
Buyer Revenue Bond Index, yields on A-rated municipal revenue
bonds maturing in 30 years rose by almost 50 basis points (0.50%)
to 6.95% during the October 31, 1994 quarter. This represents the
highest level in tax-exempt bond yields in over two years. US
Treasury bonds suffered even greater declines during the quarter
as Treasury bond yields rose approximately 60 basis points to end
the quarter at 8.00%.
The tax-exempt bond market reacted negatively throughout the
October quarter to indications that, despite a series of interest
rate increases by the Federal Reserve Board, the strength of the
domestic economy seen in recent quarters has not yet been
significantly reduced. While inflationary pressures have remained
well contained, additional Federal Reserve Board actions have
been expected both to ensure that domestic economic growth is
eventually confined to current levels and to assure nervous
financial markets of its anti-inflationary intentions.
Fortunately, while the demand for tax-exempt bonds has declined
somewhat in recent months, new bond issuance has remained greatly
reduced. During the quarter ended October 31, 1994, only $32
billion in long-term tax-exempt securities were issued, a decline
of over 50% versus the October 31, 1993 quarter. Similarly, for
the six months ended October 31, 1994, only $75 billion in
municipal securities were underwritten, a decline of over 50%
versus the comparable period a year earlier. This reduction in
issuance in recent quarters has allowed the municipal bond market
to react to both the decline in investor demand and the rise in
fixed-income yields in a more orderly fashion than in similar
situations in the past, particularly during 1987.
Long-term tax-exempt revenue bonds currently yield approximately
7%, or almost 11.5% on an after-tax equivalent basis, to an
investor in the 39.6% Federal income tax bracket. As inflation
has only marginally increased in the past year, real tax-exempt
interest rates have risen dramatically. The Federal Reserve Board
appears committed to maintaining inflation at or below its
current levels. Indeed, most forecasts expect inflation to remain
in its present range of 3%--4% throughout 1995 and, potentially,
for the remainder of the 1990s. Real after-tax equivalent
interest rates exceeding 7% represent historically attractive
municipal investments for long-term investors.
<PAGE>
Federal Reserve Board actions taken thus far have yet to fully
impact US domestic growth and expected additional actions should
promote only a modest economic expansion within a benign
inflationary context beginning sometime early in 1995. Within
such an environment, it is unlikely that tax-exempt interest
rates will remain at their current attractive levels. Tax-exempt
bond issuance is unlikely to return to the historic high levels
seen in 1992 and 1993, while investor demand should return as
markets stabilize. As we have discussed in earlier reports,
the total number of tax-exempt bonds outstanding is scheduled to
decline dramatically in 1994 and 1995 as a result of both regular
bond maturities and early redemptions. Investors seeking tax-
advantaged issues are likely to find it very difficult to obtain
currently available tax-exempt yields as the current supply/demand
balance is unlikely to be maintained in the coming quarters.
Portfolio Strategy
During the past 12 months, the municipal bond market was
extremely volatile. As measured by the Bond Buyer Revenue Bond
Index, long-term tax-exempt bond yields ranged from a low of
5.50% on January 31, 1994 to a high of 6.95% on October 28, 1994.
At year-end October 31, 1994, the Index was at its peak for the
period and reached its highest level in nearly two and one-half
years. The change in direction of long-term interest rates occurred
because the US economy heated up during the fourth quarter of 1993
and generated momentum which carried forward throughout 1994. This
led the Federal Reserve Board to tighten monetary policy in February,
in an attempt to prevent an increase in inflationary pressures on
the economy. Prices of long-term fixed-income securities fell
sharply in response to the rapidly changing investment climate.
MuniVest New Jersey Fund, Inc. altered its portfolio strategy
during the past 12 months as market psychology changed. We
entered the fiscal year with the Fund fully invested and took
advantage of the decline in interest rates through the start of
1994. As evidence of a booming economy emerged early in 1994,
however, we became cautious on the market. Our strategy centered
on raising cash reserves to approximately 10% and restructuring
the portfolio's holdings to include a greater percentage of
defensive bonds. This entailed selling discount coupons and buying
higher coupon bonds which are priced to call. As a result, we were
able to mute some of the Fund's volatility that occurred during
this very difficult period.
In Conclusion
We appreciate your ongoing interest in MuniVest New Jersey Fund,
Inc., and we look forward to assisting you with your financial
needs in the months and years ahead.
<PAGE>
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
November 23, 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)
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<C> <C> <C> <S> <C>
STATE
New Jersey--
95.5%
AAA Aaa $ 2,500 Atlantic City, New Jersey, Board of Education, School Revenue Bonds,
6.125% due 12/01/2011 (d) $ 2,426
A- NR* 2,500 Atlantic City, New Jersey, Municipal Utilities Authority, Water Systems Revenue
Refunding Bonds, 5.75% due 5/01/2017 2,180
AAA Aaa 2,500 Camden County, New Jersey, Improvement Authority Lease Revenue Bonds (County
Guaranteed), 6.15% due 10/01/2014 (b) 2,398
AAA Aaa 750 Cape May County, New Jersey, Municipal Utilities Authority, Refunding Bonds,
Series A, 6% due 1/01/2011 (b) 723
<PAGE>
NR* Aa 2,795 Cherry Hill Township, New Jersey, School GO, Refunding, 6.20% due 6/01/2008 2,795
AAA Aaa 2,510 Essex County, New Jersey, Improvement Authority, Orange Municipal Utilities and Leasing
Authority Revenue Bonds, 6% due 12/01/2017 (b) 2,341
AA- A1 1,500 Gloucester County, New Jersey, Utilities Authority, Sewer Revenue Bonds,
6.25% due 1/01/2024 1,396
AA A 3,200 Jersey City, New Jersey, GO, UT, 6.65% due 2/15/2016 3,153
New Jersey EDA, Dock Facility Revenue Refunding Bonds (Bayonne International Matex Tank
Terminal Project), VRDN, Series A (a):
NR* VMIG1 2,600 3.55% due 12/01/2027 2,600
NR* VMIG1 400 3.60% due 12/01/2027 400
NR* P1 800 New Jersey EDA, Economic Development Revenue Refunding Bonds (Dow Chemical--El Dorado
Term--1984--A), VRDN, 3.60% due 5/01/2001 (a) 800
New Jersey EDA, Natural Gas Facilities Revenue Bonds, Series A:
BBB+ A3 5,000 (Elizabethtown Gas Company Project), AMT, 6.75% due 10/01/2021 5,030
AAA Aaa 4,000 Refunding (NUI Corp.), 6.35% due 10/01/2022 (d) 3,785
A+ A1 9,535 New Jersey EDA, State Contract Economic Recovery Bonds, Series A, 6% due 3/15/2021 8,572
AAA Aaa 1,000 New Jersey EDA, Water Facilities Revenue Bonds (New Jersey American Water Company Inc.
Project), AMT, 6.50% due 4/01/2022 (c) 965
New Jersey Health Care Facilities Financing Authority Revenue Bonds:
NR* Baa1 3,240 (Deborah Heart and Lung Center), 6.20% due 7/01/2013 2,953
BBB Baa 2,120 Refunding (Englewood Hospital and Medical Center), 6.70% due 7/01/2015 1,981
AAA Aaa 5,000 Refunding (Jersey Shore Medical Center), 6.75% due 7/01/2019 (d) 5,023
AAA Aaa 2,400 Refunding (Monmouth Medical Center), Capital Guaranty, Series C, 6.25% due 7/01/2024 2,221
NR* Baa 4,200 (Southern Ocean County Hospital), Series A, 6.25% due 7/01/2023 3,639
AAA Aaa 2,000 New Jersey Sports and Exposition Authority, Luxury Tax Revenue Refunding Bonds
(Convention Center), Series A, 6.60% due 7/01/2015 (b) 1,994
New Jersey Sports and Exposition Authority Revenue Bonds (State Contract):
A+ Aa 2,500 Series A, 6% due 3/01/2021 2,285
A-1 VMIG1 500 VRDN, Series C, 3.25% due 9/01/2024 (a) (b) 500
AA- A1 2,000 New Jersey State Highway Authority, General Revenue Bonds (Garden State Parkway),
6.25% due 1/01/2014 1,926
New Jersey State Housing Authority and Mortgage Finance Agency, Home Buyer
Revenue Bonds, AMT (b):
AAA Aaa 2,240 Series K, 6.375% due 10/01/2026 2,062
AAA Aaa 3,000 Series M, 7% due 10/01/2026 2,981
<PAGE>
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 5,526
AAA Aaa 3,000 New Jersey State Transportation Corporation, COP (Raymond Plaza East, Incorporated),
6.50% due 10/01/2016 (e) 2,962
A A 1,000 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds, Series C, 6.50%
due 1/01/2008 1,017
AA- Aa 2,865 New Jersey Wastewater Treatment Trust Loan Revenue Bonds, Series A, 6.50% due 4/01/2014 2,809
AA- Aa 1,295 Ocean County, New Jersey, Utilities Authority, Wastewater Revenue Refunding Bonds,
Series B, 5.75% due 1/01/2018 1,146
Ocean Township, New Jersey, Sewer Authority, Sewer Revenue Bonds, Series B (c):
AAA Aaa 1,600 6% due 12/01/2007 1,591
AAA Aaa 1,705 6% due 12/01/2008 1,681
Port Authority of New York and New Jersey, Consolidated Revenue Bonds:
AA- A1 2,500 AMT, 76th Series, 6.50% due 11/01/2026 2,384
AA- A1 5,000 AMT, 77th Series, 6.25% due 1/15/2027 4,605
AAA Aaa 1,450 83rd Series, 6.375% due 10/15/2017 (b) 1,402
Port Authority of New York and New Jersey, Special Obligation Revenue Bonds
(Versatile Structure Obligations), VRDN (a):
A1+ VMIG1 2,300 Series 1, 3.50% due 8/01/2028 2,300
A1+ VMIG1 100 Series 2, 3.55% due 5/01/2019 100
AA A1 2,500 Rutgers State University, New Jersey, Revenue Refunding Bonds (State University of
New Jersey), Series A, 6.40% due 5/01/2013 2,460
AA Aa2 1,000 Salem County, New Jersey, Pollution Control Financing Authority, Waste Disposal Revenue
Bonds (E.I. du Pont--Chambers Works Project), Series A, AMT, 6.50% due 11/15/2021 949
AA A 1,750 University of Medicine and Dentistry, New Jersey, Series E, 6.50% due 12/01/2018 1,739
Puerto Rico--5.4%
A Baa1 2,585 Puerto Rico Commonwealth, Revenue Refunding Bonds, Series A, 6% due 7/01/2014 2,362
Puerto Rico, Electric Power Authority, Power Revenue Bonds:
A- Baa1 2,250 Refunding, Series S, 7% due 7/01/2006 (f) 2,360
A- Baa1 1,000 Series R, 6.25% due 7/01/2017 938
Total Investments (Cost--$112,362)--100.9% 105,460
Variation Margin on Financial Futures Contracts**--0.0% 7
Liabilities in Excess of Other Assets--(0.9%) (989)
--------
Net Assets--100.0% $104,478
========
<PAGE>
<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 October 31, 1994.
(b) MBIA Insured.
(c) FGIC Insured.
(d) AMBAC Insured.
(e) FSA Insured.
(f) Portion of security held in connection with open future contract.
*Not Rated.
**Financial futures contracts sold as of October 31, 1994 were as follows:
Value
Number of Expiration (in Thousands)
Contracts Issue Date (Notes 1a & 1b)
218 US Treasury Note December 1994 $(22,158)
(Total Contract Price--$22,466) $(22,158)
========
Ratings of issues shown have not been audited by Ernst & Young LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of October 31, 1994
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$112,362,282) (Note 1a) $105,460,448
Cash 556,957
Receivables:
Securities sold $ 4,680,127
Interest 1,901,347
Variation margin (Note 1b) 6,812 6,588,286
------------
Deferred organization expenses (Note 1e) 19,229
Prepaid expenses 7,546
------------
Total assets 112,632,466
------------
Liabilities: Payables:
Securities purchased 7,851,380
Dividends to shareholders (Note 1g) 192,511
Investment adviser (Note 2) 42,213 8,086,104
------------
Accrued expenses 68,191
------------
Total liabilities 8,154,295
------------
<PAGE>
Net Assets: Net assets $104,478,171
============
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 386,119
Accumulated realized capital loss--net (Note 5) (3,884,372)
Unrealized depreciation on investments and financial futures contracts--net (6,593,459)
------------
Total--Equivalent to $12.18 net asset value per share of Common Stock
(market price--$10.125) 66,978,171
------------
Total capital $104,478,171
============
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended October 31, 1994
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 6,379,824
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 560,064
Commission fees (Note 4) 119,779
Professional fees 90,542
Accounting services (Note 2) 32,367
Printing and shareholder reports 31,124
Transfer agent fees 27,559
Directors' fees and expenses 20,955
Listing fees 18,946
Amortization of organization expenses (Note 1e) 5,505
Pricing fees 4,689
Custodian fees 4,266
Other 2,342
------------
Total expenses before reimbursement 918,138
Reimbursement of expenses (Note 2) (33,997)
------------
Total expenses after reimbursement 884,141
------------
Investment income--net 5,495,683
------------
<PAGE>
Realized & Realized loss on investments and financial futures contracts--net (3,884,372)
Unrealized Loss on Change in unrealized appreciation on investments and financial futures
Investments--Net contracts--net (10,778,692)
(Notes 1d & 3): ------------
Net Decrease in Net Assets Resulting from Operations $ (9,167,381)
============
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the For the Period
Year Ended April 30, 1993++
Increase (Decrease) in Net Assets: Oct. 31, 1994 to Oct. 31, 1993
<S> <S> <C> <C>
Operations: Investment income--net $ 5,495,683 $ 2,649,840
Realized gain (loss) on investments and financial futures contracts--net (3,884,372) 227,233
Change in unrealized appreciation on investments and financial futures
contracts--net (10,778,692) 4,185,233
------------ ------------
Net increase (decrease) in net assets resulting from operations (9,167,381) 7,062,306
------------ ------------
Dividends to Investment income--net:
Shareholders Common Stock (4,474,230) (1,881,407)
(Note 1g): Preferred Stock (1,044,277) (359,490)
Realized gain on investments--net:
Common Stock (196,409) --
Preferred Stock (30,825) --
------------ ------------
Net decrease in net assets resulting from dividends to shareholders (5,745,741) (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 Value of shares issued to Common Stock shareholders in reinvestment of
(Notes 1e & 4): dividends and distributions 221,713 1,110,644
Offering and underwriting costs resulting from the issuance of Common Stock 12,188 --
Offering and underwriting costs resulting from the issuance of Preferred Stock 20,840 (733,083)
------------ ------------
Net increase in net assets derived from capital stock transactions 254,741 114,215,138
------------ ------------
Net Assets: Total increase (decrease) in net assets (14,658,381) 119,036,547
Beginning of period 119,136,552 100,005
------------ ------------
End of period* $104,478,171 $119,136,552
============ ============
<FN>
*Undistributed investment income--net $ 386,119 $ 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 For the Period
Year Ended April 30, 1993++
Increase (Decrease) in Net Asset Value: Oct. 31, 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 1.00 .49
Realized and unrealized gain (loss) on investments--net (2.66) .81
------------ ------------
Total from investment operations (1.66) 1.30
------------ ------------
Less dividends to Common Stock shareholders:
Investment income--net (.81) (.35)
Realized gain on investments--net (.04) --
------------ ------------
Total dividends and distributions (.85) (.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 (.19) (.07)
Realized gain on investments--net (.01) --
Capital charge resulting from issuance of Preferred Stock -- (.13)
------------ ------------
Total effect of Preferred Stock activity (.20) (.20)
------------ ------------
Net asset value, end of period $ 12.18 $ 14.89
============ ============
Market price per share, end of period $ 10.125 $ 15.00
============ ============
Total Investment Based on market price per share (27.74%) 2.38%+++
Return:** ============ ============
Based on net asset value per share (12.43%) 7.50%+++
============ ============
Ratios to Average Expenses, net of reimbursement .79% .48%*
Net Assets:*** ============ ============
Expenses .82% .84%*
============ ============
Investment income--net 4.89% 4.85%*
============ ============
Supplemental Net assets, net of Preferred Stock, end of period (in thousands) $ 66,978 $ 81,637
Data: ============ ============
Preferred Stock outstanding, end of period (in thousands) $ 37,500 $ 37,500
============ ============
Portfolio turnover 68.75% 20.15%
============ ============
Dividends Per Investment income--net $ 1,392 $ 479
Share on Preferred
Stock Outstanding:
<PAGE>
<FN>
*Annualized.
**Total investment returns based on market value, which can be significantly greater
or lesser than the net asset value, may result in substantially different returns.
Total investment returns exclude the effects of sales loads.
***Do not reflect the effect of dividends to Preferred Stock shareholders.
++Commencement of Operations.
++++The Fund's Preferred Stock was issued on June 1, 1993.
+++Aggregate total investment return.
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.
(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, which are traded on
exchanges, are valued at their closing prices as of the close of
such exchanges. Options, which are traded on exchanges, are
valued at their last sale price as of the close of such exchanges
or, lacking any sales, at the last available bid price. Securities
with remaining maturities of sixty days or less are valued at
amortized cost, which approximates market value. Securities for
which market quotations are not readily 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.
<PAGE>
(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) Deferred organization and offering expenses--Deferred
organization 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
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"). Effective January 1, 1994,
the investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of ML & Co. The limited partners are ML & Co. and Fund
Asset Management, Inc. ("FAMI"), 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 year
ended October 31, 1994, FAM earned fees of $560,064, of which
$33,997 was voluntarily waived.
Accounting services are provided to the Fund by FAM at cost.
<PAGE>
Certain officers and/or directors of the Fund are officers and/or
directors of FAM, FAMI, PSI, Merrill Lynch, Pierce, Fenner &
Smith Inc. ("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term
securities, for the year ended October 31, 1994 were $73,443,378
and $75,240,247, respectively.
Net realized and unrealized gains (losses) as of October 31, 1994
were as follows:
Realized Unrealized
Losses Gains (Losses)
Long-term investments $(3,872,140) $(6,901,834)
Short-term investments (13) --
Financial futures contracts (12,219) 308,375
----------- -----------
Total $(3,884,372) $(6,593,459)
=========== ===========
As of October 31, 1994, net unrealized appreciation for Federal
income tax purposes aggregated $6,901,834, of which $5,538
related to appreciated securities and $6,907,372 related to
depreciated securities. The aggregate cost of investments at
October 31, 1994 for Federal income tax purposes was
$112,362,282.
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 year ended October 31, 1994, shares issued and outstanding
increased by 15,258 to 5,497,953 as a result of dividend
reinvestment. At October 31, 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
dividends at an annual rate that may vary for the successive
dividend periods. The yield in effect at October 31, 1994 was
3.20%.
<PAGE>
In connection with the offering of AMPS, the Fund reclassified
750 shares of unissued capital stock as AMPS. For the year ended
October 31, 1994, there were 750 AMPS shares authorized, issued
and outstanding with a liquidation preference of $50,000 per
share plus accumulated and unpaid dividends of $14,023. Effective
December 1, 1994, as a result of a two-for-one stock split, there
will be 1,500 AMPS shares with a liquidation preference of
$25,000 per share.
The Fund pays commissions to certain broker-dealers at the end
of each auction at the annual rate ranging from 0.25% to 0.375%,
on the proceeds of each auction. For the year ended October 31,
1994, MLPF&S, an affiliate of Merrill Lynch Investment
Management, Inc., earned $80,963 as commissions.
5. Capital Loss Carryforward:
At October 31, 1994, the Fund had a capital loss carryforward of
approximately $3,576,000, all of which expires in 2002. This
amount will be available to offset like amounts of any future
taxable gains.
6. Subsequent Event:
On November 8, 1994, the Fund's Board of Directors declared an
ordinary income dividend to Common Stock shareholders in the
amount of $.067679 per share, payable on November 29, 1994 to
shareholders of record as of November 18, 1994.
<AUDIT-REPORT>
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Directors,
MuniVest New Jersey Fund, Inc.
We have audited the accompanying statement of assets, liabilities
and capital of MuniVest New Jersey Fund, Inc., including the
schedule of investments, as of October 31, 1994, and the related
statement of operations for the year then ended and the
statements of changes in net assets and financial highlights for
the year then ended and for the period from April 30, 1993
(commencement of operations) to October 31, 1993. These financial
statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on
these financial statements and 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 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.
<PAGE>
Our procedures included confirmation of securities owned as of
October 31, 1994 by correspondence with the custodian and brokers.
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, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of MuniVest New Jersey Fund, Inc. at October
31, 1994, and the results of its operations for the year then
ended and the changes in its net assets and financial highlights
for the indicated periods, in conformity with generally accepted
accounting principles.
(Ernst & Young LLP)
New York, New York
December 2, 1994
</AUDIT-REPORT>
<TABLE>
IMPORTANT TAX INFORMATION(unaudited)
All of the net investment income distributions paid monthly by
MuniVest New Jersey Fund, Inc. during its taxable year ended
October 31, 1994, qualify as tax-exempt interest dividends for
Federal income tax purposes. Additionally, the following table
summarizes the per share capital gains distributions paid by the
Fund during the year:
<CAPTION>
Payable Short-Term Long-Term
Date Capital Gains Capital Gains
<S> <C> <C> <C>
Common Stock Shareholders 12/30/93 $.035724 --
Preferred Stock Shareholders 12/01/93 $41.10 --
Please retain this information for your records.
</TABLE>
<PAGE>
<TABLE>
PER SHARE INFORMATION (unaudited)
Per Share
Selected Quarterly
Financial Data*
<CAPTION>
Net Realized Unrealized Dividends/Distributions
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 -- --
May 1, 1994 to July 31, 1994 .25 (.24) .57 .20 .04 -- --
August 1, 1994 to October 31, 1994 .25 (.30) (.75) .20 .06 -- --
<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
May 1, 1994 to July 31, 1994 13.54 12.57 12.125 11.625 634
August 1, 1994 to October 31, 1994 13.23 12.18 12.125 10.00 574
<FN>
++Commencement of Operations.
*Calculations are based upon shares of Common Stock outstanding at the end of each period.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
