MUNIVEST
NEW JERSEY
FUND, INC.
FUND LOGO
Annual Report
October 31, 1996
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. Statements and other information
herein are as dated and are subject to change.
<PAGE>
MuniVest
New Jersey Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
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.
<PAGE>
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.
Important Tax
Information
(unaudited)
All of the net investment income distributions paid by MuniVest New
Jersey Fund, Inc. during its taxable year ended October 31, 1996
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.
DEAR SHAREHOLDER
<PAGE>
For the year ended October 31, 1996, the Common Stock of MuniVest
New Jersey Fund, Inc. earned $0.781 per share income dividends,
which included earned and unpaid dividends of $0.065. This represents
a net annualized yield of 5.66%, based on a month-end net asset
value of $13.78 per share. Over the same period, the total investment
return on the Fund's Common Stock was +6.61%, based on a change
in per share net asset value from $13.76 to $13.78, and assuming
reinvestment of $0.780 per share income dividends.
For the six-month period ended October 31, 1996, the total investment
return on the Fund's Common Stock was +6.20%, based on a change
in per share net asset value from $13.39 to $13.78, and
assuming reinvestment of $0.392 per share income dividends.
For the six-month period ended October 31, 1996, the Fund's Auction
Market Preferred Stock had an average yield of 3.10%.
The Environment
Investor perceptions regarding the direction of the US economy
shifted over the course of the six-month period ended October 31,
1996. Throughout the summer months, concerns of an overheating
economy and spiraling inflation dominated the financial markets as
investors focused on the increasing possibility of monetary policy
tightening by the Federal Reserve Board. However, as it became
apparent that inflationary pressures were still under control--and
when the Federal Reserve Board did not tighten monetary policy at
its September 24 meeting--the investment outlook became more
positive. These developments, coupled with several economic data
releases that showed growth was at or below expectations, helped to
assuage investors' concerns about an overheating economy. Stock and
bond prices improved, with most broad-based stock market averages
reaching historic high levels. However, one factor potentially
overshadowing investor enthusiasm is the possibility that corporate
profits may have peaked for this economic cycle.
The US economy clearly has slowed from its strong growth rate during
the first half of 1996. Gross domestic product (GDP) growth is
slowing, labor-cost pressures are subsiding, consumer confidence is
easing, and commodity prices are dropping. Investors are also
anticipating that President Clinton's re-election, combined with
continued Republican majorities in the House of Representatives and
the Senate, will prove positive for the nation's budget deficit. As
1996 draws to a close, investors are likely to continue to focus on
the economy. Evidence of continued growth at a non-inflationary pace
would be positive for the US capital markets.
<PAGE>
The Municipal Market and
Portfolio Strategy
During the past 12 months, the muni-cipal 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 5.63% on January 4,
1996 to a high of 6.34% on June 13, 1996. At year-end October 31,
1996, the Index was roughly back to the levels at which it began the
period, having retraced the losses associated with a surge in
economic growth during the first six months of the calendar year.
The change in direction of long-term interest rates occurred as a
result of the slower economic pace exhibited during the third
quarter of 1996. The change of pace led investors to alter the
consensus view of future monetary policy from that of a tightening
to no change. Since August, prices of long-term fixed-income
securities have risen modestly while short-term securities have
reacted more dramatically.
During the 12 months ended October 31, 1996, we sought to provide a
generous level of tax-exempt income for shareholders without
sacrificing the strong credit quality characteristics of the
portfolio. We ended the prior year constructive on the interest rate
environment and extended the duration of the portfolio by purchasing
securities which we believed would enhance the total return to
shareholders in a period of declining interest rates. However, strong
job growth led an economic revival from February through July which
forced a major change in investor psychology. We shifted the portfolio
to a more defensive posture to protect the net asset value as
yields on long-term municipal bonds surged approximately 0.75%
between January and mid-June. Since peaking in June, interest rates
have declined somewhat as the economy has shown early signs of
cooling. We shifted to a more neutral posture once again. By
remaining fully invested during the period, we were able to provide
an attractive dividend while limiting interest rate risk.
For the 12-month period ended October 31, 1996, the Fund experienced
a 6.00% increase in cumulative total return versus an average
increase of 6.00% for all New Jersey tax-exempt closed-end leveraged
bond funds as reported by Lipper Analytical Services, Inc. The
Fund's Common Stock also produced a 5.66% yield for the 12-month
period ended October 31, 1996 as compared to the industry average of
5.63% as reported by Lipper Analytical Services, Inc.
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,
<PAGE>
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(William M. Petty)
William M. Petty
Vice President and Portfolio Manager
November 25, 1996
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
Vincent R. Giordano, Senior Vice President
Donald C. Burke, Vice President
Kenneth A. Jacob, Vice President
William M. Petty, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, New York 10286
<PAGE>
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
PROXY RESULTS
<TABLE>
During the six-month period ended October 31, 1996, MuniVest New
Jersey Fund, Inc. Common Stock shareholders voted on the following
proposals. The proposals were approved at a special shareholders'
meeting on September 9, 1996. The description of each proposal and
number of shares voted are as follows:
<CAPTION>
Shares Voted Shares Voted
For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Edward H. Meyer 5,187,371 206,042
Jack B. Sunderland 5,189,371 204,042
J. Thomas Touchton 5,189,371 204,042
Arthur Zeikel 5,188,371 205,042
<CAPTION>
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. 5,266,426 45,837 81,150
<CAPTION>
During the six-month period ended October 31, 1996, MuniVest New
Jersey Fund, Inc. Preferred Stock shareholders voted on the
following proposals. The proposals were approved at a special
shareholders' meeting on September 6, 1996. The description of each
proposal and number of shares voted are as follows:
<PAGE>
Shares Voted Shares Voted
For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Donald Cecil 1,492 0
M. Colyer Crum 1,492 0
Edward H. Meyer 1,492 0
Jack B. Sunderland 1,492 0
J. Thomas Touchton 1,492 0
Arthur Zeikel 1,492 0
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. 1,489 3 0
</TABLE>
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 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
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,
98.0% School Revenue Bonds, UT, 6.125% due 12/01/2011 (d) $ 2,625
AA Aa 2,845 Burlington County, New Jersey, General Improvement
Bonds, GO, UT, 5.20% due 10/01/2001 2,934
AAA Aaa 2,500 Camden County, New Jersey, Improvement Authority,
Lease Revenue Bonds (County Guaranteed), 6.15% due
10/01/2014 (b) 2,635
<PAGE>
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) 2,085
AAA Aaa 1,300 Highland Park, New Jersey, School District, GO, UT, 6.55%
due 2/15/2025 (b) 1,429
AAA Aaa 2,000 Hudson County, New Jersey, COP, Refunding (Correctional
Facilities), 6.60% due 12/01/2021 (b) 2,162
AA A 3,200 Jersey City, New Jersey, School GO, UT, 6.65% due 2/15/2002 (f) 3,554
AAA Aaa 1,600 Middlesex County, New Jersey, COP, 6.125% due 2/15/2019 (b) 1,652
New Jersey EDA, Economic Development Revenue Bonds:
NR* Aa1 1,600 (400 International Drive Partners), VRDN, 3.50%
due 9/01/2005 (a) 1,600
BB+ Baa2 1,900 (American Airlines Inc. Project), AMT, 7.10% due 11/01/2031 2,021
NR* A1 1,500 Refunding (Burlington Coat Factory), 6.125% due 9/01/2010 1,571
AAA Aaa 2,400 New Jersey EDA, Educational Testing Services Revenue Bonds,
Series B, 6.25% due 5/15/2025 (b) 2,562
AAA Aaa 3,900 New Jersey EDA, Natural Gas Facilities Revenue Refunding
Bonds (NUI Corp.), Series A,6.35% due 10/01/2022 (d) 4,178
NR* Aa1 4,500 New Jersey EDA, Solid Waste Disposal Facilities Revenue
Bonds (Garden State Paper Company), AMT, 7.125% due 4/01/2022 4,820
New Jersey EDA, Water Facilities Revenue Bonds (American
Water Company, Inc. Project), AMT (c):
AAA Aaa 3,800 6.50% due 4/01/2022 4,033
AAA Aaa 2,000 6% due 5/01/2036 2,033
New Jersey Health Care Facilities Financing Authority
Revenue Bonds:
AAA Aaa 2,500 Refunding (Hackensack Medical Center), 6.625% due
7/01/2017 (c) 2,693
AAA Aaa 5,000 Refunding (Jersey Shore Medical Center), 6.75% due
7/01/2019 (d) 5,575
AAA Aaa 1,000 Refunding (Monmouth Medical Center), Series C, 6.25% due
7/01/2024 (e) 1,049
NR* Baa 4,200 (Southern Ocean County Hospital), Series A, 6.25% due
7/01/2023 4,182
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) 2,183
New Jersey Sports and Exposition Authority, State Contract
Revenue Bonds:
A+ Aa 2,000 Series A, 6% due 3/01/2021 2,029
A1+ VMIG1++ 700 VRDN, Series C, 3.30% due 9/01/2024 (a)(b) 700
<PAGE>
New Jersey State, GO:
AA+ Aa1 1,970 AMT, 7.05% due 7/15/2014 2,240
AA+ Aa1 4,760 UT, 5% due 7/15/2002 4,873
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (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 $3,000 New Jersey State Housing and Mortgage Finance Agency, Home
(concluded) Buyer Revenue Bonds, AMT, Series M, 7% due 10/01/2026 (b) $ 3,198
A+ NR* 2,900 New Jersey State Housing and Mortgage Finance Agency,
Housing Revenue Refunding Bonds, Series A, 6.95%
due 11/01/2013 3,084
AAA Aaa 3,000 New Jersey State Transportation Corporation, COP (Raymond
Plaza East, Incorporated),6.50% due 10/01/2016 (e) 3,260
AAA Aaa 2,500 New Jersey State Transportation Trust Fund Authority,
Revenue Refunding Bonds (Transportation System), Series A,
5% due 6/15/2015 (b) 2,350
BBB+ Baa1 1,000 New Jersey State Turnpike Authority, Turnpike
Revenue Refunding Bonds, Series C, 6.50% due 1/01/2008 1,095
New Jersey Wastewater Treatment Trust Loan Revenue Bonds:
AA Aa 2,450 6.875% due 6/15/2008 2,676
AA- Aa 2,865 Series A, 6.50% due 4/01/2014 3,094
AAA Aaa 2,000 North Hudson, New Jersey, Sewer Authority Revenue Bonds,
5.125% due 8/01/2022 (c) 1,879
NR* A1 3,905 Passaic County, New Jersey, Refunding Bonds, UT, Series A,
6% due 9/01/2006 4,215
AAA Aaa 1,030 Pennsauken Township, New Jersey, Board of Education, COP,
7.70% due 7/15/1999 (f)(g) 1,139
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds:
AA- A1 5,000 72nd Series, 7.35% due 10/01/2002 (f) 5,743
AAA Aaa 1,000 83rd Series, 6.375% due 10/15/2017 (b) 1,058
AAA Aaa 7,000 104th Series, 3rd Installment, 4.75% due 1/15/2026 (d) 6,103
AA- A1 1,500 AMT, 76th Series, 6.50% due 11/01/2026 1,587
AAA Aaa 1,115 South Brunswick Township, New Jersey, Board of Education,
GO, UT, 6.40% due 8/01/2020 (c) 1,193
<PAGE>
AA A 1,750 University of Medicine and Dentistry, New Jersey, Series E,
6.50% due 12/01/2001 (f) 1,939
Puerto A Baa1 100 Puerto Rico Commonwealth, Highway and Transportation
Rico--0.1% Authority, Highway Revenue Bonds, Series Y, 5.50% due 7/01/2026 96
Total Investments (Cost--$106,049)--98.1% 111,127
Other Assets Less Liabilities--1.9 2,148
--------
Net Assets--100.0% $113,275
========
<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, 1996.
(b)MBIA Insured.
(c)FGIC Insured.
(d)AMBAC Insured.
(e)FSA Insured.
(f)Prerefunded.
(g)BIGI 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, 1996
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$106,049,314) (Note 1a) $111,127,073
Cash 59,506
Receivables:
Interest $ 1,658,342
Securities sold 643,500 2,301,842
------------
Deferred organization expenses (Note 1e) 8,205
Prepaid expenses and other assets 10,192
------------
Total assets 113,506,818
------------
<PAGE>
Liabilities: Payables:
Dividends to shareholders (Note 1f) 116,043
Investment adviser (Note 2) 47,778 163,821
------------
Accrued expenses and other liabilities 68,274
------------
Total liabilities 232,095
------------
Net Assets: Net assets $113,274,723
============
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.05 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 412,736
Accumulated realized capital losses on investments--net (Note 5) (6,785,655)
Unrealized appreciation on investments--net 5,077,759
------------
Total--Equivalent to $13.78 net asset value per share of
Common Stock (market price--$12.25) 75,774,723
------------
Total capital $113,274,723
============
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended October 31, 1996
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 6,445,497
Income (Note 1d):
<PAGE>
Expenses: Investment advisory fees (Note 2) $ 564,931
Commission fees (Note 4) 97,295
Professional fees 68,666
Accounting services (Note 2) 44,239
Printing and shareholder reports 36,628
Transfer agent fees 31,958
Directors' fees and expenses 21,608
Listing fees 16,545
Custodian fees 10,162
Amortization of organization expenses (Note 1e) 5,520
Pricing fees 5,226
Other 13,960
------------
Total expenses 916,738
------------
Investment income--net 5,528,759
------------
Realized & Realized gain on investments--net 16,362
Unrealized Gain Change in unrealized appreciation on investments--net 88,326
on Investments--Net ------------
(Notes 1b, 1d & 3): Net Increase in Net Assets Resulting from Operations $ 5,633,447
============
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended October 31,
Increase (Decrease) in Net Assets: 1996 1995
<S> <S> <C> <C>
Operations: Investment income--net $ 5,528,759 $ 5,647,081
Realized gain (loss) on investments--net 16,362 (2,917,645)
Change in unrealized appreciation/depreciation on investments--net 88,326 11,582,892
------------ ------------
Net increase in net assets resulting from operations 5,633,447 14,312,328
------------ ------------
Dividends to Investment income--net:
Shareholders Common Stock (4,288,887) (4,201,421)
(Note 1f): Preferred Stock (1,227,030) (1,431,885)
------------ ------------
Net decrease in net assets resulting from dividends to
shareholders (5,515,917) (5,633,306)
------------ ------------
<PAGE>
Net Assets: Total increase in net assets 117,530 8,679,022
Beginning of year 113,157,193 104,478,171
------------ ------------
End of year* $113,274,723 $113,157,193
============ ============
<FN>
*Undistributed investment income--net $ 412,736 $ 399,894
============ ============
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
For the Period
The following per share data and ratios have been derived April 30,
from information provided in the financial statements. For the Year Ended 1993++ to
October 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1993
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.76 $ 12.18 $ 14.89 $ 14.18
Operating -------- -------- -------- --------
Performance: Investment income--net 1.01 1.02 1.00 .49
Realized and unrealized gain (loss) on
investments--net .01 1.58 (2.66) .81
-------- -------- -------- --------
Total from investment operations 1.02 2.60 (1.66) 1.30
-------- -------- -------- --------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.78) (.76) (.81) (.35)
Realized gain on investments--net -- -- (.04) --
-------- -------- -------- --------
Total dividends and distributions to Common Stock
shareholders (.78) (.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 (.22) (.26) (.19) (.07)
Realized gain on investments--net -- -- (.01) --
Capital charge resulting from issuance of
Preferred Stock -- -- -- (.13)
-------- -------- -------- --------
Total effect of Preferred Stock activity (.22) (.26) (.20) (.20)
-------- -------- -------- --------
Net asset value, end of period $ 13.78 $ 13.76 $ 12.18 $ 14.89
======== ======== ======== ========
Market price per share, end of period $ 12.25 $ 12.00 $ 10.125 $ 15.00
======== ======== ======== ========
<PAGE>
Total Investment Based on market price per share 8.67% 26.66% (27.74%) 2.38%+++
Return:** ======== ======== ======== ========
Based on net asset value per share 6.61% 20.74% (12.43%) 7.50%+++
======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .81% .84% .79% .48%*
Net Assets:*** ======== ======== ======== ========
Expenses .81% .84% .82% .84%*
======== ======== ======== ========
Investment income--net 4.87% 5.20% 4.89% 4.85%*
======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock, end of
Data: period (in thousands) $ 75,775 $ 75,657 $ 66,978 $ 81,637
======== ======== ======== ========
Preferred Stock outstanding, end of period
(in thousands) $ 37,500 $ 37,500 $ 37,500 $ 37,500
======== ======== ======== ========
Portfolio turnover 99.56% 62.45% 68.75% 20.15%
======== ======== ======== ========
Leverage: Asset coverage per $1,000 $ 3,021 $ 3,018 $ 2,786 $ 3,177
======== ======== ======== ========
Dividends Per Investment income--net $ 818 $ 955 $ 696 $ 240
Share 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 that occurred on December 1, 1994.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
<PAGE>
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 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 and assets for which
market quotations are not readily available are valued at fair
value as determined in good faith by or under the direction of the
Board of Directors of the Fund, including valuations furnished by a
pricing service retained by the Fund, which may utilize a matrix
system for valuations. The procedures of the pricing service and its
valuations are reviewed by the officers of the Fund under the
general supervision of the Board of Directors.
(b) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the debt markets. Losses may
arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
* 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 expenses--Deferred organization expenses
are amortized on a straight-line basis over a five-year period.
(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.
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, 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, 1996 were $106,205,006 and
$106,770,717, respectively.
Net realized and unrealized gains (losses) as of October 31, 1996
were as follows:
Realized Unrealized
Gains (Losses) Gains
Long-term investments $ 762,963 $ 5,077,759
Financial futures contracts (746,601) --
------------- -------------
Total $ 16,362 $ 5,077,759
============= =============
As of October 31, 1996, net unrealized appreciation for Federal
income tax purposes aggregated $5,077,759, of which $5,080,001
related to appreciated securities and $2,242 related to depreciated
securities. The aggregate cost of investments at October 31, 1996
for Federal income tax purposes was $106,049,314.
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, 1996, shares issued and outstanding
remained constant at 5,497,953. At October 31, 1996, 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, 1996 was
3.183%.
As of October 31, 1996, there were 1,500 AMPS authorized, issued and
outstanding with a liquidation preference of $25,000 per share.
<PAGE>
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, 1996, MLPF&S, an affiliate of FAM, earned $75,408 as
commissions.
5. Capital Loss Carryforward:
At October 31, 1996, the Fund had a net capital loss carryforward of
approximately $5,797,000, of which $3,467,000 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 8, 1996, the Fund's Board of Directors declared an
ordinary income dividend to Common Stock shareholders in the amount
of $.065003 per share, payable on November 27, 1996 to shareholders
of record as of November 18, 1996.
<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, 1996, 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, 1996
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,
1996, 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)
Princeton, New Jersey
November 26, 1996
