MUNIVEST
NEW JERSEY
FUND, INC.
FUND LOGO
Annual Report
October 31, 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.
<PAGE>
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
capitalization of $100 million and the issuance of Preferred Stock
for an additional $50 million, creating a total value of $150
million available for investment in long-term municipal bonds. If
prevailing short-term interest rates are approximately 3% and long-
term interest rates are approximately 6%, the yield curve has a
strongly positive slope. The fund pays dividends on the $50 million
of Preferred Stock based on the lower short-term interest rates. At
the same time, the fund's total portfolio of $150 million earns the
income based on long-term interest rates. Of course, increases in
short-term interest rates would reduce (and even eliminate) the
dividends on the Common Stock.
In this case, the dividends paid to Preferred Stock shareholders are
significantly lower than the income earned on the fund's long-term
investments, and therefore the Common Stock shareholders are the
beneficiaries of the incremental yield. However, if short-term
interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental yield pickup on the
Common Stock will be reduced or eliminated completely. At the same
time, the market value of the fund's Common Stock (that is, its
price as listed on the New York Stock Exchange) may, as a result,
decline.Furthermore, if long-term interest rates rise, the Common
Stock's net asset value will reflect the full decline in the price
of the portfolio's investments, since the value of the fund's
Preferred Stock does not fluctuate. In addition to the decline in
net asset value, the market value of the fund's Common Stock may
also decline.
<PAGE>
DEAR SHAREHOLDER
For the year ended October 31, 1995, the Common Stock of MuniVest
New Jersey Fund, Inc. earned $0.761 per share income dividends,
which included earned and unpaid dividends of $0.065. This
represents a net annualized yield of 5.53%, based on a month-end net
asset value of $13.76 per share. Over the same period, the total
investment return on the Fund's Common Stock was +20.74%, based on a
change in per share net asset value from $12.18 to $13.76, and
assuming reinvestment of $0.764 per share income dividends.
For the six-month period ended October 31, 1995, the total
investment return on the Fund's Common Stock was +8.74%, based on a
change in per share net asset value from $13.06 to $13.76, and
assuming reinvestment of $0.375 per share income dividends.
For the six-month period ended October 31, 1995, the Fund's Auction
Market Preferred Stock had an average yield of 3.95%.
The Environment
After losing momentum through the second calendar quarter of 1995,
it now appears that the US economic expansion has resumed. Gross
domestic product growth for the three months ended September 30 was
reported to be 4.2%, higher than generally expected. September
durable goods orders increased a surprisingly strong 3%, and
existing home sales rose to a near-record level. At the same time,
there is evidence that inflationary pressures remain subdued.
Reflecting the trend of renewed economic growth--and continued good
news on the inflation front--the Federal Reserve Board signaled no
near-term shift in monetary policy following its September meeting.
Thus, official interest rates may not be reduced further in the
immediate future.
Another significant development has been the strengthening of the US
dollar relative to the yen and the Deutschemark. Improving interest
rate differentials favoring the US currency, combined with
coordinated central bank intervention and more positive investor
sentiment, have helped to bolster the dollar in foreign exchange
markets. Other factors that appear to be improving the US dollar's
outlook in the near term are a pick-up in capital flows to the
United States and the prospect of increased capital outflows from
Japan. However, it remains to be seen if the US dollar's
strengthening trend can continue without significant improvements in
the US budget and trade deficits.
In the weeks ahead, investor interest will continue to focus on US
economic activity. Clear signs of a moderate, noninflationary
expansion could further benefit the US stock and bond markets. In
addition, should the current Federal budget deficit reduction
efforts now underway in Washington prove successful, the
implications would likely be positive for the US financial markets.
<PAGE>
The Municipal Market
Tax-exempt bond yields continued to decline during the six-month
period ended October 31, 1995. As measured by the Bond Buyer Revenue
Bond Index, the yield on uninsured, long-term municipal revenue
bonds fell 30 basis points (0.30%) to end the October period at
approximately 6.00%. While tax-exempt bond yields have declined
dramatically from their highs one year ago, municipal bond yields
have exhibited considerable yield volatility on a weekly basis. In
recent months, tax-exempt bond yields have fluctuated by as much as
20 basis points on a week-to-week basis. US Treasury bond yields
have displayed similar volatility, but the extent of their decline
has been greater. By the end of October, long-term US Treasury bond
yields had declined almost 100 basis points to 6.33%. Proposed
Federal tax restructuring continued to weigh heavily on the tax-
exempt bond market. Thus far in 1995, US Treasury bond yields have
declined approximately 150 basis points. Municipal bond yields have
fallen approximately 95 basis points as the uncertainty surrounding
any changes to the existing Federal income tax structure has
prevented the municipal bond market from rallying as strongly as its
taxable counterpart.
A general view of a moderately expanding domestic economy, supported
by a very favorable inflationary environment, allowed interest rates
to significantly decline from their recent highs in November 1994.
However, this decline was not a smooth downward curve. Conflicting
economic indicators were released during recent months that have
prevented a clear consensus regarding the near-term direction of
interest rates from being reached. The resultant uncertainty has
promoted more of a saw-toothed pattern as interest rate declines
were repeatedly interrupted by indications of stronger-than-expected
economic growth. As these concerns were overcome by subsequent
weaker economic releases, interest rate declines have resumed. These
periods of volatility are likely to continue for the remainder of
1995, or until proposed Federal budget deficit reduction packages
are resolved and any resultant responses by the Federal Reserve
Board have occurred.
However, the municipal bond market's technical position remained
supportive throughout recent quarters. Approximately $82 billion in
long-term municipal securities were issued during the six months
ended October 31, 1995. While this issuance is virtually identical
to underwritings during the October 31, 1994 quarter, tax-exempt
bond issuance over the last 12 months remained approximately 25%
below comparable 1994 levels. The municipal bond market should
maintain this positive technical position well into 1996. Annual
issuance for 1995 is now projected to be approximately $140 billion,
significantly less than last year's already low level of $162
billion. Projected maturities and early redemptions for the
remainder of 1995 and throughout 1996 will lead to a continued
decline in the total outstanding municipal bond supply throughout
1996 and, perhaps, into 1998 should new bond issuance remain at
historically low levels.
<PAGE>
Despite the municipal bond market's relative underperformance
compared to the US Treasury market thus far in 1995, the extent of
the tax-exempt bond market's rally was nonetheless quite impressive.
Municipal bond yields have fallen 135 basis points from their highs
reached in November 1994 and municipal bond prices rose accordingly.
Most tax-exempt products recouped almost all of the losses incurred
in 1994 and are well on their way to posting double-digit total
returns for all of 1995. This relative underperformance so far in
1995 provided long-term investors with the rare opportunity to
purchase tax-exempt securities at yield levels near those of taxable
securities.
Additionally, many of the factors that led to the relative
underperformance of the tax-exempt bond market thus far in 1995,
namely investor concern regarding Federal budget deficit reductions
and proposed changes in the Federal income tax structure, are
nearing resolution. The Federal budget reconciliation process has
already begun, and may be essentially completed by year-end. Recent
public opinion polls suggest that the majority of American taxpayers
prefer the existing Federal income tax system compared to proposed
changes, such as the flat tax or national sales tax. In an upcoming
election year, neither party is likely to advocate a clearly
unpopular position, particularly one that can be expected to
negatively impact the Federal budget deficit reduction program
through reduced tax revenues. As these factors are resolved, we
believe that much of the resistance that the municipal bond market
met this year should dissipate. This should allow municipal bond
yields to significantly decline from current levels in order to
return to more normal historic yield relationships.
Portfolio Strategy
During the 12-month period ended October 31, 1995, 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
high of 7.37% on November 17, 1994 to a low of 5.94% on June 8,
1995. At the Fund's fiscal year-end of October 31, 1995, the Index
was near the low for the period, yielding 6.02%. After rising
sharply for most of 1994, long-term interest rates have rallied
significantly during 1995 as the US economy nearly slowed to a halt.
This slowdown in economic growth initially caused the Federal
Reserve Board to stop tightening monetary policy early in 1995. Once
the magnitude of the slowdown became apparent in July 1995, the
Federal Reserve Board actually decreased the Federal Funds rate by
0.25% to 5.75%.
<PAGE>
We altered the Fund's portfolio strategy during the past 12 months
as investor sentiment changed. We entered the year defensively
postured and maintained that outlook through early 1995. However, as
evidence of a stagnant economy emerged early in 1995, we began to
adopt a more constructive outlook. Our strategy then centered on
reducing cash reserves as much as possible and restructuring the
holdings to extend the average portfolio maturity. This entailed
selling par bonds which have little upside potential, and buying
both discount coupon and noncallable bonds. These moves made the
Fund more responsive to changes in interest rates. As a result, the
Fund generated a positive total return and an attractive current
yield for its Common Stock shareholders.
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.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President
(William M. Petty)
William M. Petty
Portfolio Manager
December 4, 1995
We are pleased to announce that William M. Petty is responsible for
the day-to-day management of MuniVest New Jersey Fund, Inc. Mr.
Petty has been employed by Merrill Lynch Asset Management, L.P. (an
affiliate of the Fund's investment adviser) since 1993 as Vice
President and was an Assistant Vice President from 1992 to 1993.
Prior thereto, he was employed by J.J. Kenny Municipal Bond Brokers
as a Municipal Bond Broker from 1990 to 1992.
<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
<PAGE>
<TABLE>
PROXY RESULTS
<CAPTION>
During the six-month period ended October 31, 1995, MuniVest New
Jersey Fund, Inc. Common Stock shareholders voted on the following
proposals. The proposals were approved at a special shareholders'
meeting on May 12, 1995. The description of each proposal and number
of shares voted are as follows:
Shares Voted Shares Voted
For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Edward H. Meyer 4,749,162 113,036
Jack B. Sunderland 4,742,284 119,914
J. Thomas Touchton 4,751,209 110,989
Arthur Zeikel 4,751,209 110,989
<CAPTION>
Shares Voted Shares Voted Shares Voted
For Against Abstain
<S> <C> <C> <C>
2. To ratify the selection of Ernst & Young LLC as the Fund's independent
auditors for the current fiscal year. 4,712,492 63,422 86,284
<CAPTION>
During the six-month period ended October 31, 1995, MuniVest New
Jersey Fund, Inc. Preferred Stock shareholders voted on the
following proposals. The proposals were approved at a special
shareholders' meeting on May 12, 1995. The description of each
proposal and number of shares voted are as follows:
Shares Voted Shares Voted
For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Donald Cecil 1,235 137
M. Colyer Crum 1,235 137
Edward H. Meyer 1,235 137
Jack B. Sunderland 1,235 137
J. Thomas Touchton 1,235 137
Arthur Zeikel 1,235 137
Shares Voted Shares Voted Shares Voted
For Against Abstain
<S> <C> <C> <C>
2. To ratify the selection of Ernst & Young LLP as the Fund's independent
auditors for the current fiscal year. 1,212 160 0
</TABLE>
<PAGE>
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
M/F Multi-Family
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
New Jersey-- AAA Aaa $ 2,500 Atlantic City, New Jersey, Board of Education, School Revenue
95.7% Bonds, UT, 6.125% due 12/01/2011 (d) $ 2,608
AAA Aaa 2,500 Camden County, New Jersey, Improvement Authority, Lease
Revenue Bonds (County Guaranteed), 6.15% due 10/01/2014 (b) 2,626
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) 2,065
AAA Aaa 1,300 Highland Park, New Jersey, School District, UT, 6.55% due
2/15/2025 (b) 1,424
AAA Aaa 2,000 Hudson County, New Jersey, COP, Refunding (Correctional Facilities),
6.60% due 12/01/2021 (b) 2,148
AA A 3,200 Jersey City, New Jersey, School GO, UT, 6.65% due 2/15/2016 3,447
NR* VMIG1++ 1,350 New Jersey EDA, Dock Facility, Revenue Refunding Bonds (Bayonne/
IMTT Project), VRDN, Series A, 3.95% due 12/01/2027 (a) 1,350
NR* A1 1,500 New Jersey EDA, Economic Development, Revenue Refunding Bonds
(Burlington Coat Factory), 6.125% due 9/01/2010 1,540
<PAGE>
New Jersey EDA, Natural Gas Facilities Revenue Bonds:
BBB A3 5,000 (Elizabethtown Gas Company Project), AMT, Series A, 6.75% due
10/01/2021 5,165
A1+ VMIG1++ 700 (New Jersey Natural Gas Company Project), VRDN, Series B,
3.55% due 8/01/2030 (a)(d) 700
AAA Aaa 4,000 Refunding (NUI Corp.), Series A, 6.35% due 10/01/2022 (d) 4,246
AAA Aaa 2,500 New Jersey EDA, Revenue Bonds (Educational Testing Service), Series B,
6.25% due 5/15/2025 (b) 2,615
A+ A1 1,000 New Jersey EDA, State Contract Economic Recovery Bonds, Series A,
6% due 3/15/2021 1,007
New Jersey EDA, Water Facilities Revenue Bonds (New Jersey American
Water Company Inc. Project), AMT (c):
AAA Aaa 1,000 6.50% due 4/01/2022 1,067
AAA Aaa 1,000 Series B, 5.50% due 6/01/2023 967
New Jersey Health Care Facilities Financing Authority Revenue Bonds:
AAA Aaa 3,750 (JFK Health Systems Obligation Group), 5.70% due 7/01/2025 (c) 3,692
AAA Aaa 5,000 Refunding (Jersey Shore Medical Center), 6.75% due 7/01/2019 (d) 5,492
AAA Aaa 1,000 Refunding (Monmouth Medical Center), Series C, 6.25% due
7/01/2024 (f) 1,040
NR* Baa 4,200 (Southern Ocean County Hospital), Series A, 6.25% due 7/01/2023 4,081
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) 2,174
New Jersey State Building Authority, Revenue Refunding Bonds:
AA- Aa 3,000 5% due 6/15/2015 2,767
AA- Aa 3,000 5% due 6/15/2016 2,761
AA+ Aa1 1,970 New Jersey State, GO, AMT, 7.05% due 7/15/2014 2,253
New Jersey State Housing and Mortgage Finance Agency, Home Buyer
Revenue Bonds, AMT (b):
AAA Aaa 2,240 Series K, 6.375% due 10/01/2026 2,280
AAA Aaa 3,000 Series M, 7% due 10/01/2026 3,176
New Jersey State Housing and Mortgage Finance Agency, Housing
Revenue Refunding Bonds, Series A:
A+ NR* 4,500 6.95% due 11/01/2013 4,757
AAA Aaa 1,800 M/F, 6.05% due 11/01/2020 (d) 1,810
AAA Aaa 3,000 New Jersey State Transportation Corporation, COP (Raymond Plaza
East, Incorporated), 6.50% due 10/01/2016 (e) 3,262
<PAGE>
New Jersey State Transportation Trust Fund Authority Refunding
Bonds (Transportation System) (b):
AAA Aaa 5,000 Series A, 5.50% due 6/15/2013 4,944
AAA Aaa 3,000 Series A, 5% due 6/15/2015 2,821
AAA Aaa 2,500 Series B, 5.50% due 6/15/2015 2,500
New Jersey State Turnpike Authority, Turnpike Revenue Refunding
Bonds, Series C:
A A 1,000 6.50% due 1/01/2008 1,116
AAA Aaa 3,150 6.50% due 1/01/2016 (b) 3,547
AA- Aa 2,865 New Jersey Wastewater Treatment Trust, Loan Revenue Bonds,
Series A, 6.50% due 4/01/2014 3,041
NR* A1 3,905 Passaic County, New Jersey, Refunding Bonds, UT, Series A, 6%
due 9/01/2006 4,249
Port Authority of New York and New Jersey, Consolidated Revenue
Bonds:
AA- A1 5,000 72nd Series, 7.35% due 10/01/2027 5,725
AA- A1 1,500 76th Series, AMT, 6.50% due 11/01/2026 1,568
AAA Aaa 1,450 83rd Series, 6.375% due 10/15/2017 (b) 1,528
AA- A1 1,500 100th Series, 5.75% due 6/15/2030 1,471
A1+ VMIG1++ 200 Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (Versatile Structure Obligation), VRDN, AMT, Series 1,
3.90% due 8/01/2028 (a) 200
AAA Aaa 1,115 South Brunswick Township, New Jersey, Board of Education, School
Revenue Bonds, LT, 6.40% due 8/01/2020 (c) 1,195
AA A 1,750 University of Medicine and Dentistry, New Jersey, Series E, 6.50%
due 12/01/2018 1,876
Puerto Rico-- A- Baa1 2,250 Puerto Rico Electric Power Authority, Power Revenue Refunding
2.3% Bonds, Series S, 7% due 7/01/2006 2,590
Total Investments (Cost--$105,901)--98.0% 110,891
Other Assets Less Liabilities--2.0% 2,266
--------
Net Assets--100.0% $113,157
========
<PAGE>
<FN>
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at October 31, 1995.
(b)MBIA Insured.
(c)FGIC Insured.
(d)AMBAC Insured.
(e)FSA Insured.
(f)CGIC Insured.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
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, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$105,901,100) (Note 1a) $110,890,533
Cash 826,651
Interest receivable 1,697,131
Deferred organization expenses (Note 1e) 13,724
Prepaid expenses 5,431
------------
Total assets 113,433,470
------------
Liabilities: Payables:
Dividends to shareholders (Note 1f) $ 153,803
Investment adviser (Note 2) 46,354 200,157
------------
Accrued expenses 76,120
------------
Total liabilities 276,277
------------
Net Assets: Net assets $113,157,193
============
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 399,894
Accumulated realized capital losses on investments--net (Note 5) (6,802,017)
Unrealized appreciation on investments--net 4,989,433
------------
Total--Equivalent to $13.76 net asset value per share of
Common Stock (market price--$12.00) 75,657,193
------------
Total capital $113,157,193
============
<PAGE>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended October 31, 1995
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 6,560,101
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 544,218
Commission fees (Note 4) 95,338
Professional fees 84,021
Accounting services (Note 2) 43,763
Printing and shareholder reports 41,881
Transfer agent fees 32,436
Directors' fees and expenses 23,805
Listing fees 16,670
Custodian fees 9,449
Pricing fees 6,161
Amortization of organization expenses (Note 1e) 5,505
Other 9,773
------------
Total expenses 913,020
------------
Investment income--net 5,647,081
------------
Realized & Realized loss on investments--net (2,917,645)
Unrealized Gain Change in unrealized appreciation/depreciation on investments--net 11,582,892
(Loss) on ------------
Investments Net Increase in Net Assets Resulting from Operations $ 14,312,328
- --Net (Notes 1b, ============
1d & 3):
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended October 31,
Increase (Decrease) in Net Assets: 1995 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 5,647,081 $ 5,495,683
Realized loss on investments--net (2,917,645) (3,884,372)
Change in unrealized appreciation/depreciation on investments--net 11,582,892 (10,778,692)
------------ ------------
Net increase (decrease) in net assets resulting from operations 14,312,328 (9,167,381)
------------ ------------
Dividends & Investment income--net:
Distributions to Common Stock (4,201,421) (4,474,230)
Shareholders Preferred Stock (1,431,885) (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 (5,633,306) (5,745,741)
------------ ------------
Common Stock Value of shares issued to Common Stock shareholders in
Transactions reinvestment of dividends and distributions -- 221,713
(Notes 1e & 4): 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
------------ ------------
Net increase in net assets derived from capital stock
transactions -- 254,741
------------ ------------
Net Assets: Total increase (decrease) in net assets 8,679,022 (14,658,381)
Beginning of year 104,478,171 119,136,552
------------ ------------
End of year* $113,157,193 $104,478,171
============ ============
<FN>
*Undistributed investment income--net $ 399,894 $ 386,119
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
Period
The following per share data and ratios have been derived For the Apr. 30,
from information provided in the financial statements. Year Ended 1993++ to
October 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 1.02 1.00 .49
Realized and unrealized gain (loss) on investments--net 1.58 (2.66) .81
-------- -------- --------
Total from investment operations 2.60 (1.66) 1.30
-------- -------- --------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.76) (.81) (.35)
Realized gain on investments--net -- (.04) --
-------- -------- --------
Total dividends and distributions to Common Stock
shareholders (.76) (.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 (.26) (.19) (.07)
Realized gain on investments--net -- (.01) --
Capital charge resulting from issuance of
Preferred Stock -- -- (.13)
-------- -------- --------
Total effect of Preferred Stock activity (.26) (.20) (.20)
-------- -------- --------
Net asset value, end of period $ 13.76 $ 12.18 $ 14.89
======== ======== ========
Market price per share, end of period $ 12.00 $ 10.125 $ 15.00
======== ======== ========
Total Investment Based on market price per share 26.66% (27.74%) 2.38%+++
Return:** ======== ======== ========
Based on net asset value per share 20.74% (12.43%) 7.50%+++
======== ======== ========
<PAGE>
Ratios to Average Expenses, net of reimbursement .84% .79% .48%*
Net Assets:*** ======== ======== ========
Expenses .84% .82% .84%*
======== ======== ========
Investment income--net 5.20% 4.89% 4.85%*
======== ======== ========
Supplemental Net assets, net of Preferred Stock, end of period
Data: (in thousands) $ 75,657 $ 66,978 $ 81,637
======== ======== ========
Preferred Stock outstanding, end of period (in
thousands) $ 37,500 $ 37,500 $ 37,500
======== ======== ========
Portfolio turnover 62.45% 68.75% 20.15%
======== ======== ========
Dividends Per Share Investment income--net $ 955 $ 696 $ 240
On Preferred Stock
Outstanding:++++++
<FN>
*Annualized.
**Total investment returns based on market value, which can be
significantly greater or lesser than the net asset value, may result
in substantially different returns. Total investment returns exclude
the effects of sales loads.
***Do not reflect the effect of dividends to Preferred Stock
shareholders.
++Commencement of Operations.
++++The Fund's Preferred Stock was issued on June 1, 1993.
++++++Dividends per share have been adjusted to reflect a two-for-
one stock split.
+++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.
<PAGE>
(a) Valuation of investments--Municipal bonds are traded primarily
in the over-the-counter markets and are valued at the most recent
bid price or yield equivalent as obtained by the Fund's pricing
service from dealers that make markets in such securities. Financial
futures contracts and options thereon, which are traded on
exchanges, are valued at their closing prices as of the close of
such exchanges. Options, which are traded on exchanges, are valued
at their last sale price as of the close of such exchanges or,
lacking any sales, at the last available bid price. Securities with
remaining maturities of sixty days or less are valued at amortized
cost, which approximates market value. Securities for which market
quotations are not readily available are valued at fair value as
determined in good faith by or under the direction of the Board of
Directors of the Fund, including valuations furnished by a pricing
service retained by the Fund, which may utilize a matrix system for
valuations. The procedures of the pricing service and its valuations
are reviewed by the officers of the Fund under the general
supervision of the Board of Directors.
(b) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the debt markets. Losses may
arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
* 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.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee at an annual rate of 0.50% of
the Fund's average weekly net assets.
<PAGE>
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 year ended October 31, 1995 were $64,938,991 and
$64,284,048, respectively.
Net realized and unrealized gains (losses) as of October 31, 1995
were as follows:
Realized Unrealized
Losses Gains
Long-term investments $ (2,539,824) $ 4,989,433
Financial futures contracts (377,821) --
------------- ------------
Total $ (2,917,645) $ 4,989,433
============= ============
As of October 31, 1995, net unrealized appreciation for Federal
income tax purposes aggregated $4,952,820, of which $5,078,107
related to appreciated securities and $125,287 related to
depreciated securities. The aggregate cost of investments at October
31, 1995 for Federal income tax purposes was $105,937,713.
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, 1995, shares issued and outstanding
remained constant at 5,497,953. At October 31, 1995, 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, 1995 was 3.00%.
<PAGE>
A two-for-one stock split occurred on December 1, 1994. As a result,
as of October 31, 1995, there were 1,500 AMPS authorized, issued and
outstanding with a liquidation preference of $25,000 per share.
The Fund pays commissions to certain broker-dealers at the end of
each auction at an annual rate ranging from 0.25% to 0.375%,
calculated on the proceeds of each auction. For the year ended
October 31, 1995, MLPF&S, an affiliate of FAM, earned $76,061 as
commissions.
5. Capital Loss Carryforward:
At October 31, 1995, the Fund had a capital loss carryforward of
approximately $5,906,000, of which $3,576,000 expires in 2002 and
$2,330,000 expires in 2003. This amount will be available to offset
like amounts of any future taxable gains.
6. Subsequent Event:
On November 13, 1995, the Fund's Board of Directors declared an
ordinary income dividend to Common Stock shareholders in the amount
of $.064580 per share, payable on November 29, 1995 to shareholders
of record as of November 24, 1995.
<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, 1995, and the related
statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then
ended and financial highlights for each of the periods indicated
therein. 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.
Our procedures included confirmation of securities owned as of
October 31, 1995 by correspondence with the custodian. 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.
<PAGE>
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,
1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period
then ended and financial highlights for each of the indicated
periods, in conformity with generally accepted accounting
principles.
(Ernst & Young LLP)
Ernst & Young LLP
Princeton, New Jersey
November 30, 1995
</AUDIT-REPORT>
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, 1995 qualify as tax-exempt interest dividends for Federal income
tax purposes. Additionally, there were no capital gains distributed
by the Fund during the year.
Please retain this information for your records.
PER SHARE INFORMATION (unaudited)
<PAGE>
<TABLE>
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>
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 .07 -- --
February 1, 1995 to April 30, 1995 .25 (.07) .51 .19 .06 -- --
May 1, 1995 to July 31, 1995 .26 (.06) .34 .18 .07 -- --
August 1, 1995 to October 31, 1995 .25 .05 .37 .19 .06 -- --
<CAPTION>
Net Asset Value Market Price**
For the Period High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
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 12.625 11.50 634
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 9.375 1,272
February 1, 1995 to April 30, 1995 13.43 12.65 11.75 11.125 501
May 1, 1995 to July 31, 1995 13.83 13.06 11.875 11.125 488
August 1, 1995 to October 31, 1995 13.89 13.12 12.125 11.50 488
<FN>
*Calculations are based upon shares of Common Stock outstanding at
the end of each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
