MUNIVEST
NEW JERSEY
FUND, INC.
FUND LOGO
Semi-Annual Report
April 30, 1995
This report, including the financial information herein, is
transmitted to the shareholders of MuniVest New 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. 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 pick-up 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.
<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
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
DEAR SHAREHOLDER
For the six-month period ended April 30, 1995, the Common Stock of
MuniVest New Jersey Fund, Inc. earned $0.383 per share income
dividends, which included earned and unpaid dividends of $0.062.
This represents a net annualized yield of 5.92%, based on a month-
end per share net asset value of $13.06. Over the same period, the
total investment return on the Fund's Common Stock was +11.04%,
based on a change in per share net asset value from $12.18 to
$13.06, and assuming reinvestment of $0.389 per share income
dividends.
<PAGE>
For the six-month period ended April 30, 1995, the Fund's Auction
Market Preferred Stock had an average yield of 3.68%.
The Environment
During the six months ended April 30, 1995, the perception that the
US economy was overheating and inflationary pressures were
increasing gave way to a more benign economic outlook. With more
signs of slowing growth, investors now appear to be forecasting a
"soft landing" for the US economy. Although gross domestic product
was reported to have increased at a revised 5.1% rate during the
final quarter of 1994, declines in other indicators such as new home
sales and durable goods orders registered thus far in 1995 have led
investors to anticipate that the economy is losing enough momentum
to keep inflation under control and preclude further significant
monetary policy tightening by the Federal Reserve Board. A further
indication of a slowing economy was the reported decline in the
Index of Leading Economic Indicators for March.
As US stock and bond markets have risen on more positive economic
news, the value of the US dollar has reached new lows relative to
the yen and the Deutschemark. Persistent trade deficits and exports
of capital from the United States have kept the US currency in a
decade-long decline relative to the Japanese and German currencies.
Over the longer term, since the United States has the highest
productivity among industrialized nations and among the lowest labor
costs, demand for US dollar-denominated assets may improve. However,
a reduction of the still-widening US trade deficit may be necessary
before the US dollar appreciates substantially relative to the yen
and the Deutschemark.
The first months of 1995 have been very positive for the stock and
bond markets. Continued signs of a moderating expansion and well-
contained inflationary pressures would provide further assurance
that the peak in interest rates is behind us. On the other hand,
indications of reaccelerating growth and further significant
monetary policy tightening by the Federal Reserve Board would be a
decided negative for the US financial markets.
The Municipal Market
During the six-month period ended April 30, 1995, the tax-exempt
bond market gradually recouped much of the losses sustained during
1994. Signs of a weakening domestic economy and ongoing moderate
inflationary pressures have fostered an environment of declining
interest rates. Since October 31, 1994, A-rated, uninsured municipal
revenue bond yields, as measured by the Bond Buyer Revenue Bond
Index, have declined over 65 basis points (0.65%) to close the six-
month period ended April 30, 1995 at 6.29%. Tax-exempt bond yields
initially continued to climb in late 1994, reaching a high of 7.37%
in late November 1994. Municipal bond yields have since declined
over 100 basis points from their recent highs and are presently
lower than they were a year ago. US Treasury bond yields have
experienced similar declines over the last six months to end the
April period at 7.34%.
<PAGE>
Much of the recent improvement in the tax-exempt bond market,
however, has occurred over the last three months. During this most
recent quarter, municipal bond yields have fallen approximately 50
basis points, while US Treasury bond yields declined only 35 basis
points. Tax-exempt bond yields declined more than their taxable
counterparts in recent months, largely in response to the
significant decline in new bond issuance in recent quarters. Over
the last six months, less than $60 billion in new long-term
municipal securities were underwritten, a decline of nearly 45%
versus the comparable period a year earlier. Issuance was
particularly low this past January and February, with monthly volume
of less than $8 billion. These levels are the lowest monthly totals
since the mid-1980s.
To compound the municipal market's already strong technical posture,
both institutional and individual investors have seen significant
cash inflows in recent months. These assets were derived from
regular coupon payments, bond maturities and the proceeds from early
bond calls and redemptions. It has been estimated that investors
received over $20 billion in principal redemptions and coupon income
in January 1995 alone. With monthly issuance in the $10 billion
range thus far this year, the current supply/demand imbalance has
dominated the municipal market and bond prices have risen
accordingly. The tax-exempt bond market's technical position is
likely to remain very strong throughout most of 1995. Investors are
expected to receive almost $40 billion in principal and coupon
payments on July 1, 1995. Investor proceeds from all sources have
been estimated to exceed $200 billion for all of 1995. Estimates of
total new bond issuance for 1995 have continued to be lowered with
most estimates now in the $125 billion range. Investors should find
it increasingly difficult to replace existing holdings as they
mature and to reinvest coupon income in such an environment.
The municipal bond market's outperformance thus far this year caused
the tax-exempt market to become temporarily expensive relative to
its taxable counterpart in late April. Investor concerns regarding
the international currency situation and the future impact of
proposed revisions to US taxation policies upon the tax advantage of
municipal bonds have combined to cause tax-exempt bond yields to
increase marginally in recent weeks. Municipal bond yields rose
approximately 15 basis points by April 30, 1995 from their lows in
mid-April 1995. Long-term US Treasury bond yields have remained
essentially stable.
<PAGE>
Such an underperformance by the tax-exempt bond market is likely to
be limited in duration. The recent increase in tax-exempt bond
yields has already begun to attract institutional investors since
some municipal bonds yielding in excess of 85% of US Treasury bond
yields are again available. Also, concerns regarding the implication
for municipal bonds' tax advantage resulting from various proposed
tax law changes (for example, flat-tax, value-added tax or national
sales tax) are all likely to quickly recede as investors realize
that such, if any, changes are unlikely to be enacted before late
1996 at the earliest. Long-term investors will also recall 1986 when
similar tax proposals were made and tax-exempt bond yields initially
rose and then quickly fell. Investors are likely to view the current
situation as an opportunity to purchase very attractively priced tax-
ad-vantaged products. This should cause municipal bond yields to
quickly return to their more historic relationship.
Portfolio Strategy
MuniVest New Jersey Fund, Inc. entered the six-month period ended
April 30, 1995 defensively postured in light of the extreme
volatility that plagued the fixed-income markets during most of
1994. Since early 1995, however, we have become more positive on the
markets' prospects for several reasons. First, we have seen signs of
an apparent economic slowdown in the United States just as
inflationary pressures were reaching critical levels, thus reducing
concern among fixed-income investors. At the same time, municipal
issuance continued to plunge, exacerbating an already troublesome
situation and propelling municipals to significantly outperform US
Treasury securities during the six-month period ended April 30,
1995. In fact, for the six months ended April 30, 1995, New Jersey
tax-exempt issuance declined by about 62% versus the same period of
1994.
We initially reacted to the changing environment by taking cash
reserves down from approximately 10% of net assets in November to
nearly zero by early 1995 and then maintaining a fully invested
posture for the balance of the period. Portfolio restructuring
during this time was used to give the Fund a more aggressive stance
in the marketplace. This was accomplished by selectively selling par
bonds with limited room for price appreciation and replacing them
with discount coupon bonds. As credit quality is always a priority,
fully 95% of the Fund's holdings were rated A or better by at least
one of the major rating agencies.
In Conclusion
We appreciate your interest in MuniVest New Jersey Fund, Inc., and
we look forward to serving your investment needs in the months and
years to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
<PAGE>
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
May 23, 1995
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 many 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
LT Limited Tax
TRAN Tax Revenue Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <C> <C> <C> <S> <C>
New Jersey-- AAA Aaa $ 2,500 Atlantic City, New Jersey, Board of Education, School
95.8% Revenue Bonds, UT, 6.125% due 12/01/2011 (d) $ 2,568
A- NR* 2,500 Atlantic City, New Jersey, Municipal Utilities Authority,
Water Systems Revenue Refunding Bonds, 5.75% due 5/01/2017 2,395
AAA Aaa 2,500 Camden County, New Jersey, Improvement Authority Lease
Revenue Bonds (County Guaranteed), 6.15% due 10/01/2014 (b) 2,543
AAA Aaa 1,815 Cape May County, New Jersey, Industrial Pollution Control
Financing Authority Revenue Bonds (Atlantic City Electric
Company Project), AMT, Series A, 7.20% due 11/01/2029 (b) 2,011
<PAGE>
NR* Aa 2,795 Cherry Hill Township, New Jersey, GO, UT, Refunding, 6.20%
due 6/01/2008 2,950
AAA Aaa 2,875 Essex County, New Jersey, Improvement Authority, Lease
Revenue Bonds (Jail and Youth Housing Projects), UT, 7%
due 12/01/2024 (d) 3,193
AAA Aaa 1,300 Highland Park, New Jersey, School District, UT, 6.55% due
2/15/2025 (b) 1,362
AAA Aaa 2,000 Hudson County, New Jersey, COP, Refunding (Correctional
Facilities), 6.60% due 12/01/2021 (b) 2,089
AA A 3,200 Jersey City, New Jersey, School GO, UT, 6.65% due 2/15/2016 3,347
NR* VMIG1++ 800 New Jersey EDA, Dock Facility Revenue Refunding Bonds
(Bayonne/ IMTT Project), VRDN, Series A, 4.95% due 12/01/2027 (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 5,079
AAA Aaa 4,000 Refunding (NUI Corp.), 6.35% due 10/01/2022 (d) 4,078
A+ A1 8,535 New Jersey EDA, State Contract Economic Recovery Bonds,
Series A, 6% due 3/15/2021 8,252
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) 1,024
New Jersey Health Care Facilities Financing Authority
Revenue Bonds:
NR* Baa1 1,500 (Deborah Heart and Lung Center), 6.20% due 7/01/2013 1,438
AAA Aaa 5,000 Refunding (Jersey Shore Medical Center), 6.75% due
7/01/2019 (d) 5,306
AAA Aaa 1,410 Refunding (Monmouth Medical Center), Capital Guaranty,
Series C, 6.25% due 7/01/2024 1,419
NR* Baa 4,200 (Southern Ocean County Hospital), Series A, 6.25% due
7/01/2023 3,809
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) 2,108
New Jersey Sports and Exposition Authority Revenue Bonds
(State Contract):
A+ Aa 3,030 Series A, 6% due 3/01/2021 2,994
A1 VMIG1++ 700 VRDN, Series C, 4.55% due 9/01/2024 (a)(b) 700
<PAGE>
AA+ Aa1 1,970 New Jersey State, GO, AMT, 7.05% due 7/15/2014 2,123
SP1+ MIG1++ 1,800 New Jersey State, GO, TRAN, Series A, 5% due 6/15/1995 1,802
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 2,253
AAA Aaa 3,000 Series M, 7% due 10/01/2026 3,167
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 5,728
AAA Aaa 3,000 New Jersey State Transportation Corporation, COP
(Raymond Plaza East, Incorporated), 6.50% due 10/01/2016 (e) 3,159
New Jersey State Turnpike Authority, Turnpike Revenue
Refunding Bonds:
A A 1,000 Series C, 6.50% due 1/01/2008 1,070
A A 3,000 Series C, 6.50% due 1/01/2016 3,150
AAA VMIG1++ 900 VRDN, Series D, 4.25% due 1/01/2018 (a)(c) 900
AA- Aa 2,865 New Jersey Wastewater Treatment Trust Loan Revenue Bonds,
Series A, 6.50% due 4/01/2014 2,983
AA- Aa 2,605 Ocean County, New Jersey, Utilities Authority, Wastewater
Revenue Refunding Bonds, Series B, 5.75% due 1/01/2018 2,515
AAA Aaa 1,705 Ocean Township, New Jersey, Sewer Authority, Sewer Revenue
Bonds, Series B, 6% due 12/01/2008 (c) 1,750
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds:
AA- A1 5,000 72nd Series, 7.35% due 10/01/2027 5,523
AA- A1 2,500 76th Series, AMT, 6.50% due 11/01/2026 2,544
AAA Aaa 1,450 83rd Series, 6.375% due 10/15/2017 (b) 1,475
Port Authority of New York and New Jersey, Special
Obligation Revenue Bonds (Versatile Structure Obligation),
VRDN (a):
A1+ VM1G1++ 2,100 Series 1, 4.95% due 8/01/2028 2,100
A1+ VM1G1++ 100 Series 2, 4.80% due 5/01/2019 100
AAA Aaa 1,115 South Brunswick Township, New Jersey, Board of Education,
School Revenue Bonds, LT, 6.40% due 8/01/2020 (c) 1,150
AA A 1,750 University of Medicine and Dentistry, New Jersey, Series E,
6.50% due 12/01/2018 1,809
<PAGE>
Puerto Rico-- A Baa1 2,585 Puerto Rico Commonwealth, Revenue Refunding Bonds, Series A,
5.5% 6% due 7/01/2014 2,519
Puerto Rico Electric Power Authority, Power Revenue Bonds:
A- Baa1 2,250 Refunding, Series S, 7% due 7/01/2006 2,471
A- Baa1 1,000 Series R, 6.25% due 7/01/2017 990
Total Investments (Cost--$109,622 )--101.3% 110,746
Liabilities in Excess of Other Assets--(1.3%) (1,419)
--------
Net Assets--100.0% $109,327
========
<FN>
(a)The interest rate is subject to change periodically based upon
the prevailing market rates. The interest rate shown is the rate in
effect at April 30, 1995.
(b)MBIA Insured.
(c)FGIC Insured.
(d)AMBAC Insured.
(e)FSA Insured.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of April 30,1995
<S> <C> <C>
Assets: Investments, at value (identified cost--$109,622,043)
(Note 1a) $110,746,216
Cash 92,824
Interest receivable 1,915,032
Deferred organization expenses (Note 1e) 19,229
Prepaid expenses 7,546
------------
Total assets 112,780,847
------------
Liabilities: Payables:
Securities purchased $ 3,218,777
Dividends to shareholders (Note 1f) 138,440
Investment adviser (Note 2) 42,380 3,399,597
------------
Accrued expenses 54,060
------------
Total liabilities 3,453,657
------------
<PAGE>
Net Assets: Net assets $109,327,190
============
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.10 per share (1,500 shares of
AMPS* issued and outstanding at $25,000 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 379,298
Accumulated realized capital losses on investments--net (Note 5) (6,746,164)
Unrealized appreciation on investments--net 1,124,173
------------
Total--Equivalent to $13.06 net asset value per share of Common
Stock (market price--$11.50) 71,827,190
------------
Total capital $109,327,190
============
<FN>
*Auction Market Preferred Stock.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 1995
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 3,263,494
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 263,100
Commission fees (Note 4) 47,986
Professional fees 40,495
Accounting services (Note 2) 20,678
Printing and shareholder reports 19,799
Transfer agent fees 14,176
Directors' fees and expenses 11,667
Listing fees 8,150
Custodian fees 4,451
Pricing fees 3,113
Amortization of organization expenses (Note 1e) 2,711
Other 9,927
------------
Total expenses 446,253
------------
Investment income--net 2,817,241
------------
<PAGE>
Realized & Unreal- Realized loss on investments--net (2,861,792)
ized Gain Change in unrealized appreciation/depreciation on investments--net 7,717,632
(Loss) on ------------
Investments Net Increase in Net Assets Resulting from Operations $ 7,673,081
- --Net (Notes 1b, ============
1d & 3):
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: April 30, 1995 Oct. 31, 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 2,817,241 $ 5,495,683
Realized loss on investments--net (2,861,792) (3,884,372)
Change in unrealized appreciation/depreciation on
investments--net 7,717,632 (10,778,692)
------------ ------------
Net increase (decrease) in net assets resulting from
operations 7,673,081 (9,167,381)
------------ ------------
Dividends & Investment income--net:
Distributions to Common Stock (2,139,792) (4,474,230)
Shareholders Preferred Stock (684,270) (1,044,277)
(Note 1f): Realized gain on investments--net:
Common Stock -- (196,409)
Preferred Stock -- (30,825)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (2,824,062) (5,745,741)
------------ ------------
Capital Stock Offering and underwriting costs resulting from the
Transactions issuance of Common Stock -- 12,188
(Notes 1e & 4): Offering and underwriting costs resulting from the
issuance of Preferred Stock -- 20,840
Value of shares issued to Common Stock shareholders in
reinvestment of dividends and distributions -- 221,713
------------ ------------
Net increase in net assets derived from capital stock
transactions -- 254,741
------------ ------------
<PAGE>
Net Assets: Total increase (decrease) in net assets 4,849,019 (14,658,381)
Beginning of period 104,478,171 119,136,552
------------ ------------
End of period* $109,327,190 $104,478,171
============ ============
<FN>
*Undistributed investment income--net $ 379,298 $ 386,119
============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
For the Six For the Period
The following per share data and ratios have been derived Months Year Apr. 30,
from information provided in the financial statements. Ended Ended 1993++ to
Apr. 30, Oct. 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1993
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 12.18 $ 14.89 $ 14.18
Operating ------- ------- -------
Performance: Investment income--net .51 1.00 .49
Realized and unrealized gain (loss) on investments--net .88 (2.66) .81
------- ------- -------
Total from investment operations 1.39 (1.66) 1.30
------- ------- -------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.39) (.81) (.35)
Realized gain on investments--net -- (.04) --
------- ------- -------
Total dividends and distributions to Common Stock
shareholders (.39) (.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 (.12) (.19) (.07)
Realized gain on investments--net -- (.01) --
Capital charge resulting from issuance of
Preferred Stock -- -- (.13)
<PAGE> ------- ------- -------
Total effect of Preferred Stock activity (.12) (.20) (.20)
------- ------- -------
Net asset value, end of period $ 13.06 $ 12.18 $ 14.89
======= ======= =======
Market price per share, end of period $ 11.50 $10.125 $ 15.00
======= ======= =======
Total Investment Based on market price per share 17.62%+++ (27.74%) 2.38%+++
Return:** ======= ======= =======
Based on net asset value per share 11.04%+++ (12.43%) 7.50%+++
======= ======= =======
Ratios to Expenses, net of reimbursement .85%* .79% .48%*
Average ======= ======= =======
Net Assets:*** Expenses .85%* .82% .84%*
======= ======= =======
Investment income--net 5.36%* 4.89% 4.85%*
======= ======= =======
Supplemental Net assets, net of Preferred Stock, end of
Data: period (in thousands) $71,827 $66,978 $81,637
======= ======= =======
Preferred Stock outstanding, end of period
(in thousands) $37,500 $37,500 $37,500
======= ======= =======
Portfolio turnover 23.12% 68.75% 20.15%
======= ======= =======
Dividends Per Investment income--net $ 456 $ 696 $ 240
Share On
Preferred Stock
Outstand ing:++++++
<FN>
*Annualized.
**Total investment returns based on market value, which can be
significantly greater or lesser than the net asset value, may result
in substantially different returns. Total investment returns exclude
the effects of sales loads.
***Do not reflect the effect of dividends to Preferred Stock
shareholders.
++Commencement of Operations
++++The Fund's Preferred Stock was issued on June 1, 1993.
++++++Dividends per share have been adjusted to reflect a two-for-
one stock split.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
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. These unaudited financial statements
reflect all adjustments which are, in the opinion of management,
necessary to a fair statement of the results for the interim period
presented. All such adjustments are of a normal recurring nature.
The Fund'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 and options thereon, which are traded on
exchanges, are valued at their closing prices as of the close of
such exchanges. Options, which are traded on exchanges, are valued
at their last sale price as of the close of such exchanges or,
lacking any sales, at the last available bid price. Securities with
remaining maturities of sixty days or less are valued at amortized
cost, which approximates market value. Securities for which market
quotations are not readily 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) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the debt markets. Losses may
arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
* Financial futures contracts--The Fund may purchase or sell interest
rate futures contracts and options on such futures contracts for the
purpose of hedging the market risk on existing securities or the
intended purchase of securities. Futures contracts are contracts for
delayed delivery of securities at a specific future date and at a
specific price or yield. Upon entering into a contract, the Fund
deposits and maintains as collateral such initial margin as required
by the exchange on which the transaction is effected. Pursuant to
the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as variation margin
and are recorded by the Fund as unrealized gains or losses. When the
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>
* 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) 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 Common and Preferred Stock were charged to capital at the
time of issuance of the shares.
(f) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital gains
are recorded on the ex-dividend dates.
NOTES TO FINANCIAL STATEMENTS (concluded)
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
<PAGE>
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee at an annual rate of 0.50% of
the Fund's average weekly net assets.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of FAM, PSI, Merrill Lynch, Pierce, Fenner & Smith Inc.
("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 1995 were $23,205,077 and
$23,094,737, respectively.
Net realized and unrealized gains (losses) as of April 30,1995 were
as follows:
Realized Unrealized
Losses Gains
Long-term investments $(2,483,971) $1,124,173
Financial futures contracts (377,821) --
----------- ----------
Total $(2,861,792) $1,124,173
=========== ==========
As of April 30, 1995, net unrealized appreciation for Federal income
tax purposes aggregated $1,124,173, of which $2,625,738 related to
appreciated securities and $1,501,565 related to depreciated
securities. The aggregate cost of investments at April 30,1995 for
Federal income tax purposes was $109,622,043.
4. Capital Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of capital stock,
including Preferred Stock, par value $.10 per share, all of which
were initially classified as Common Stock. The Board of Directors is
authorized, however, to reclassify any unissued shares of capital
stock without approval of holders of Common Stock.
Common Stock
For the six months ended April 30, 1995, shares issued and
outstanding remained constant at 5,497,953. At April 30, 1995, total
paid-in capital amounted to $77,069,883.
<PAGE>
Preferred Stock
Auction Market Preferred Stock ("AMPS") are shares of Preferred
Stock of the Fund that entitle their holders to receive cash
dividends at an annual rate that may vary for the successive
dividend periods. The yield in effect at April 30, 1995 was 4.27%.
A two-for-one stock split occurred on December 1, 1994. As a result,
at April 30, 1995, there were 1,500 AMPS authorized, issued and
outstanding with a liquidation preference of $25,000 per share, plus
accumulated and unpaid dividends of $21,932.
The Fund pays commissions to certain broker-dealers at the end of
each auction at an annual rate of ranging from 0.25% to 0.375%,
calculated on the proceeds of each auction. For the six months ended
April 30, 1995, MLPF&S, an affiliate of FAM, earned $40,601 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 May 9, 1995, the Fund's Board of Directors declared an ordinary
income dividend to Common Stock shareholders in the amount of
$.061851 per share, payable on May 30, 1995 to shareholders of
record as of May 19, 1995.
PER SHARE INFORMATION
<TABLE>
Per Share
Selected Quarterly
Financial Data*
<CAPTION>
Net Realized Unrealized Dividends / Distributions
Investment Gains Gains Net Investment Income Capital Gains
For the Quarter Income (Losses) (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
April 30, 1993++ to July 31, 1993 $.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 -- --
November 1, 1994 to January 31, 1995 .26 (.45) .89 .20 .06 -- --
February 1, 1995 to April 30, 1995 .25 (.07) .51 .19 .06 -- --
<PAGE>
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
April 30, 1993++ to July 31, 1993 $14.59 $14.11 $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 12.35 12.125 11.625 634
August 1, 1994 to October 31, 1994 13.23 12.18 12.125 10.00 574
November 1, 1994 to January 31, 1995 12.63 11.15 11.375 9.4375 1,272
February 1, 1995 to April 30, 1995 13.43 12.65 11.625 11.125 501
<FN>
++Commencement of Operations.
*Calculations are based upon Common Stock outstanding at the end of
each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
