MUNIVEST
NEW JERSEY
FUND, INC.
FUND LOGO
Semi-Annual Report
April 30, 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
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 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.
DEAR SHAREHOLDER
For the six-month period ended April 30, 1996, the Common Stock of
MuniVest New Jersey Fund, Inc. earned $0.387 per share income
dividends, which included earned and unpaid dividends of $0.063.
This represents a net annualized yield of 5.80%, based on a month-
end per share net asset value of $13.39. Over the same period, the
total investment return on the Fund's Common Stock was +0.38%, based
on a change in per share net asset value from $13.76 to $13.39, and
assuming reinvestment of $0.388 per share income dividends.
<PAGE>
For the six-month period ended April 30, 1996, the Fund's Auction
Market Preferred Stock had an average yield of 3.43%.
The Municipal Market
During the six months ended April 30, 1996, tax-exempt bond yields
rose as investors became increasingly concerned that recent economic
growth would reignite inflationary pressures. Through early February
1996, municipal bond yields continued their earlier declines
supported by continued moderate economic growth and favorable
inflationary expectations. As measured by the Bond Buyer Revenue
Bond Index, yields on uninsured, A-rated municipal revenue bonds
declined an additional 30 basis points (0.30%) to 5.70% by early
February. As signs of emerging economic growth became more numerous,
particularly with the release of the strong March employment
figures, inflation fears increased and bond yields rose in response
for the remainder of the six-month period ended April 30, 1996. At
April 30, 1996, long-term municipal bond yields were approximately
6.30%, an increase of approximately 30 basis points over the last
six months. The rise in US Treasury bond yields was more
substantial. Over the last six months, yields on US Treasury
securities rose approximately 60 basis points to 6.90%. During the
April period, the municipal bond market reversed the trend seen
throughout much of 1995 and significantly outperformed the US
Treasury bond market.
The municipal bond market's recent outperformance was largely the
result of two principal factors. First, and perhaps more important,
much of the earlier concern regarding proposed changes in Federal
income tax codes and their effect on the tax treatment of tax-exempt
bond income has dissipated. As the negative revenue impact of the
various proposals, such as the flat tax, became apparent, the
likelihood of immediate reform quickly diminished. When the Kemp
Commission dealing with Federal income tax reform released its
findings early in 1996, the obvious need for reform was highlighted.
However, no specific recommendations of a flat tax, value-added tax
or any other reform were made. Consequently, fears of losing the
favored tax treatment of municipal bond income declined even
further. As a percentage of Treasury bond yields, tax-exempt bond
yield ratios quickly declined from 95% to approximately 90%. This
allowed the municipal bond market to maintain much of the gains made
since early 1995.
<PAGE>
The second major factor leading to the municipal bond market's
recent improvement was the return of a more favorable technical
environment. Over the past six months, approximately $90 billion in
municipal securities were underwritten, an increase of approximately
45% versus the comparable period a year earlier. However, much of
this increase was biased by recent underwritings dedicated toward
refinancing. Like individual homeowners, municipal issuers sought to
refinance their existing higher-couponed debt as tax-exempt bond
yields declined from their highs in 1995. In recent months such
refinancings were estimated to represent at least 50% of total
issuance. However, the recent rise in tax-exempt interest rates
slowed the pace of such refinancings. Over the last three months
approximately $40 billion in long-term tax-exempt securities were
underwritten, an increase of 35% compared to the same period a year
ago. At current interest rate levels large amounts of refundings are
unlikely and the rate of new bond issuance should continue to
decline.
Additionally, investors continue to receive significant amounts of
assets derived from coupon income, bond maturities, and proceeds
from early redemptions. In recent months investors received over $30
billion in such assets. These cash flows helped maintain individual
retail investor demand in recent months. Additionally, major
institutional investors, such as certain insurance companies whose
underwriting profits were cyclically high, demonstrated significant
ongoing interest in the tax-exempt bond market, particularly on
higher-quality securities. Individual and institutional investor
demand was strong enough during the six-month period ended April 30,
1996 to absorb the relative increase in bond issuance.
Looking ahead, we believe the municipal bond market is likely to
continue to outperform the US Treasury market. Investor demand
should remain adequate to absorb new bond issuance. It is also
unlikely that the rapid pace of issuance seen thus far in 1996 will
be maintained. The recent rise in yields made further bond
refinancings economically unfeasible. Since these refinancings were
the driving force of recent bond issuance, as the amount of these
refundings decline, overall issuance should decline. This should
allow the current demand/supply balance to be easily maintained in
upcoming months.
Additionally, as a percentage of US Treasury bond yields, long-term
municipal bond yields remain historically attractive. It is likely
that recent interest rate increases will have a negative impact on
economic growth, perhaps as early as late summer 1996. With long-
term mortgage rates above 8%, the domestic housing sector has
already indicated signs of slower growth. If other interest rate
sectors of the economy, such as the automobile industry, begin to
show similar adverse effects, taxable interest rates would be poised
to resume their decline. With long-term tax-exempt revenue bonds
yielding approximately 90% of their taxable counterparts, municipal
bond yields are poised to decline further.
<PAGE>
Portfolio Strategy
We entered the six-month period ended April 30, 1996 optimistic that
interest rates would decline. This optimism was based on the belief
that the economy was slowing and that advances on a balanced Federal
budget agreement would be beneficial to the fixed-income markets. To
take advantage of this anticipated decline in interest rates, we
reduced the Fund's cash reserve position to a low level and
increased the Fund's duration. This strategy benefited the Fund's
performance as long-term interest rates declined over 50 basis
points through the end of December. Through mid-January, the economy
appeared sluggish enough that the Federal Reserve Board lowered the
Federal Funds rate by 0.50% to 5.25% and the markets priced in
further easings of monetary policy.
The new year brought the beginning of a reversal in the trend of
lower interest rates. By late February signs of a strengthening
economy began to undermine the confidence in the fixed-income
market. In March a strong employment report seemed to confirm a
surge in the growth of the US economy, and yields rose rapidly.
Prior to the back up in yields, we gradually increased the Fund's
cash reserves while shortening its duration. This strategy made the
Fund less sensitive to the back up in yields experienced in the
fixed-income markets.
Looking ahead, we remain cautious on long-term interest rates. We
believe this stance is warranted as economic releases so far in 1996
continue to show strength while inflationary pressures appeared in
the form of higher commodity prices. However, with the swift
increase in yields this year, we recently decreased the Fund's cash
reserve position by purchasing long-term securities at attractive
yields. We will maintain a cautious approach to the municipal bond
market until a clearer direction of interest rates emerges during
the balance of the year.
In Conclusion
We appreciate your interest in MuniVest New Jersey Fund, Inc., and
we look forward to serving your investment needs and objectives in
the months and years to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
<PAGE>
(William M. Petty)
William M. Petty
Vice President and Portfolio Manager
May 31, 1996
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
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
95.0% Revenue Bonds, UT, 6.125% due 12/01/2011 (d) $ 2,614
AAA Aaa 2,500 Camden County, New Jersey, Improvement Authority, Lease
Revenue Bonds (County Guaranteed), 6.15% due 10/01/2014 (b) 2,580
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) 2,019
<PAGE>
AAA Aaa 6,500 Delaware River Port Authority, Pennsylvania and New Jersey
Revenue Bonds, Series 1995, 5.50% due 1/01/2026 (c) 6,129
AAA Aaa 1,300 Highland Park, New Jersey, School District, UT, 6.55% due
2/15/2025 (b) 1,389
AAA Aaa 2,000 Hudson County, New Jersey, COP, Refunding (Correctional
Facilities), 6.60% due 12/01/2021 (b) 2,101
AA A 3,200 Jersey City, New Jersey, School GO, UT, 6.65% due 2/15/2016 3,442
NR* VMIG1++ 2,850 New Jersey EDA, Dock Facility Revenue Refunding Bonds
(Bayonne/IMTT Project), VRDN, Series A, 3.85% due
12/01/2027 (a) 2,850
NR* A1 1,500 New Jersey EDA, Economic Development Revenue Refunding Bonds
(Burlington Coat Factory), 6.125% due 9/01/2010 1,527
AAA Aaa 2,500 New Jersey EDA, Educational Testing Services Revenue Bonds,
Series B, 6.25% due 5/15/2025 (b) 2,554
AAA Aaa 3,315 New Jersey EDA, Liberty State Park Lease and Rental
Revenue Refunding Bonds, 5.75% due 3/15/2022 (d) 3,249
New Jersey EDA, Natural Gas Facilities Revenue Bonds (d):
A1+ VMIG1++ 2,300 (Natural Gas Company Project), VRDN, Series B, 3.95%
due 8/01/2030 (a) 2,300
AAA Aaa 4,000 Refunding (NUI Corp.), Series A, 6.35% due 10/01/2022 4,126
A+ A1 1,000 New Jersey EDA, State Contract Economic Recovery Bonds,
Series A, 6% due 3/15/2021 997
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) 1,022
New Jersey Health Care Facilities Financing Authority
Revenue Bonds:
AAA Aaa 5,000 Refunding (Jersey Shore Medical Center), 6.75% due
7/01/2019 (d) 5,337
AAA Aaa 1,000 Refunding (Monmouth Medical Center), Series C, 6.25%
due 7/01/2024 (e) 1,023
NR* Baa 4,200 (Southern Ocean County Hospital), Series A, 6.25%
due 7/01/2023 4,046
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) 2,140
<PAGE>
AA- Aa 4,000 New Jersey State Building Authority, Revenue Refunding
Bonds, 5% due 6/15/2016 3,562
New Jersey State Educational Facilities Authority,
Revenue Refunding Bonds (University of Medicine &
Dentistry), Series B (d):
AAA Aaa 6,000 5.25% due 12/01/2015 5,603
AAA Aaa 1,000 5.25% due 12/01/2021 923
AA+ Aa1 1,970 New Jersey State, GO, AMT, 7.05% due 7/15/2014 2,192
AAA Aaa 3,000 New Jersey State Housing and Mortgage Finance Agency,
Home Buyer Revenue Bonds, AMT, Series M, 7% due
10/01/2026 (b) 3,115
A+ NR* 4,500 New Jersey State Housing and Mortgage Finance Agency,
Housing Revenue Refunding Bonds, Series A, 6.95% due
11/01/2013 4,742
AAA Aaa 3,000 New Jersey State Transportation Corporation, COP (Raymond
Plaza East, Incorporated), 6.50% due 10/01/2016 (e) 3,144
AAA Aaa 4,000 New Jersey State Transportation Trust Fund Authority
(Transportation System), Series A, 4.75% due 12/15/2016 (b) 3,434
New Jersey State Turnpike Authority, Turnpike Revenue
Refunding Bonds:
BBB+ Baa1 1,000 Series C, 6.50% due 1/01/2008 1,082
AAA VMIG1++ 500 VRDN, Series D, 3.90% due 1/01/2018 (a)(c) 500
AA- Aa 2,865 New Jersey Wastewater Treatment Trust Loan Revenue Bonds,
Series A, 6.50% due 4/01/2014 3,017
NR* A1 3,905 Passaic County, New Jersey, Refunding Bonds, UT, Series A,
6% due 9/01/2006 4,181
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds:
AA- A1 5,000 72nd Series, 7.35% due 10/01/2002 (f) 5,735
AA- A1 1,500 76th Series, AMT, 6.50% due 11/01/2026 1,553
AAA Aaa 1,450 83rd Series, 6.375% due 10/15/2017 (b) 1,507
AAA Aaa 3,000 104th Series, 3rd Installment, 4.75% due 1/15/2026 (d) 2,497
Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (Versatile Structure Obligation), VRDN (a):
A1+ VMIG1++ 2,300 Series 1, AMT, 4.10% due 8/01/2028 2,300
A1+ VMIG1++ 2,000 Series 3, 3.90% due 6/01/2020 2,000
AAA Aaa 1,115 South Brunswick Township, New Jersey, Board of Education,
UT, 6.40% due 8/01/2020 (c) 1,164
<PAGE>
AA A 1,750 University of Medicine and Dentistry, New Jersey, Series E,
6.50% due 12/01/2001 (f) 1,930
Puerto Rico-- A Baa1 5,100 Puerto Rico Commonwealth, Highway and Transportation
6.5% Authority, Highway Revenue Bonds, Series Y, 5.50% due
7/01/2026 4,673
A- Baa1 2,250 Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series S, 7% due 7/01/2006 2,536
Total Investments (Cost--$110,810)--101.5% 112,835
Liabilities in Excess of Other Assets--(1.5%) (1,720)
--------
Net Assets--100.0% $111,115
========
<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 April 30, 1996.
(b)MBIA Insured.
(c)FGIC Insured.
(d)AMBAC Insured.
(e)FSA Insured.
(f)Prerefunded.
*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, 1996
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$110,809,880)
(Note 1a) $112,835,116
Cash 78,864
Interest receivable 1,726,662
Deferred organization expenses (Note 1e) 13,724
Prepaid expenses and other assets 5,918
------------
Total assets 114,660,284
------------
<PAGE>
Liabilities: Payables:
Securities purchased $ 3,287,755
Dividends to shareholders (Note 1f) 162,605
Investment adviser (Note 2) 45,772 3,496,132
------------
Accrued expenses and other liabilities 48,806
------------
Total liabilities 3,544,938
------------
Net Assets: Net assets $111,115,346
============
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 396,483
Accumulated realized capital losses on investments--net (Note 5) (5,876,256)
Unrealized appreciation on investments--net 2,025,236
------------
Total--Equivalent to $13.39 net asset value per share of Common
Stock (market price--$12.25) 73,615,346
------------
Total capital $111,115,346
============
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 1996
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 3,228,523
Income (Note 1d):
<PAGE>
Expenses: Investment advisory fees (Note 2) $ 284,086
Commission fees (Note 4) 48,270
Professional fees 33,073
Printing and shareholder reports 19,305
Accounting services (Note 2) 18,105
Transfer agent fees 15,720
Directors' fees and expenses 10,754
Listing fees 8,172
Custodian fees 5,193
Amortization of organization expenses (Note 1e) 2,747
Pricing fees 2,672
Other 7,973
------------
Total expenses 456,070
------------
Investment income--net 2,772,453
------------
Realized & Realized gain on investments--net 925,761
Unrealized Gain Change in unrealized appreciation on investments--net (2,964,197)
(Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 734,017
(Notes 1b, 1d & 3): ============
See Notes to Financial Statements.
</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, 1996 Oct. 31, 1995
<S> <S> <C> <C>
Operations: Investment income--net $ 2,772,453 $ 5,647,081
Realized gain (loss) on investments--net 925,761 (2,917,645)
Change in unrealized appreciation/depreciation on
investments--net (2,964,197) 11,582,892
------------ ------------
Net increase in net assets resulting from operations 734,017 14,312,328
------------ ------------
Dividends to Investment income--net:
Shareholders Common Stock (2,135,064) (4,201,421)
(Note 1f): Preferred Stock (640,800) (1,431,885)
------------ ------------
Net decrease in net assets resulting from dividends
to shareholders (2,775,864) (5,633,306)
------------ ------------
<PAGE>
Net Assets: Total increase (decrease) in net assets (2,041,847) 8,679,022
Beginning of period 113,157,193 104,478,171
------------ ------------
End of period* $111,115,346 $113,157,193
============ ============
<FN>
*Undistributed investment income--net $ 396,483 $ 399,894
============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
For the For the
The following per share data and ratios have Six Period
been derived from information provided in the Months Apr. 30,
financial statements. Ended For the Year Ended 1993++ to
April 30, 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 .51 1.02 1.00 .49
Realized and unrealized gain (loss) on
investments--net (.37) 1.58 (2.66) .81
-------- -------- -------- --------
Total from investment operations .14 2.60 (1.66) 1.30
-------- -------- -------- --------
Less dividends and distributions to Common
Stock shareholders:
Investment income--net (.39) (.76) (.81) (.35)
Realized gain on investments--net -- -- (.04) --
-------- -------- -------- --------
Total dividends and distributions to Common
Stock shareholders (.39) (.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 (.12) (.26) (.19) (.07)
Realized gain on investments--net -- -- (.01) --
Capital charge resulting from issuance of
Preferred Stock -- -- -- (.13)
-------- -------- -------- --------
Total effect of Preferred Stock activity (.12) (.26) (.20) (.20)
-------- -------- -------- --------
Net asset value, end of period $ 13.39 $ 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 5.30%+++ 26.66% (27.74%) 2.38%+++
Return:** ======== ======== ======== ========
Based on net asset value per share .38%+++ 20.74% (12.43%) 7.50%+++
======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .80%* .84% .79% .48%*
Net Assets:*** ======== ======== ======== ========
Expenses .80%* .84% .82% .84%*
======== ======== ======== ========
Investment income--net 4.86%* 5.20% 4.89% 4.85%*
======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock, end of
Data: period (in thousands) $ 73,615 $ 75,657 $ 66,978 $ 81,637
======== ======== ======== ========
Preferred Stock outstanding, end of period
(in thousands) $ 37,500 $ 37,500 $ 37,500 $ 37,500
======== ======== ======== ========
Portfolio turnover 53.11% 62.45% 68.75% 20.15%
======== ======== ======== ========
Leverage: Asset coverage per $1,000 $ 2,963 $ 3,018 $ 2,786 $ 3,177
======== ======== ======== ========
Dividends Investment income--net $ 427 $ 955 $ 696 $ 240
Per 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>
<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 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.
<PAGE>
* 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.
* 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.
NOTES TO FINANCIAL STATEMENTS (concluded)
(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.
<PAGE>
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.
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, 1996 were $57,424,422 and
$61,045,845, respectively.
Net realized and unrealized gains as of April 30, 1996 were as
follows:
Realized Unrealized
Gains Gains
Long-term investments $ 871,167 $ 2,025,236
Financial futures contracts 54,594 --
------------ ------------
Total $ 925,761 $ 2,025,236
============ ============
As of April 30, 1996, net unrealized appreciation for Federal income
tax purposes aggregated $2,025,236, of which $3,259,468 related to
appreciated securities and $1,234,232 related to depreciated
securities. The aggregate cost of investments at April 30, 1996 for
Federal income tax purposes was $110,809,880.
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.
<PAGE>
Common Stock
For the six months ended April 30, 1996, shares issued and
outstanding remained constant at 5,497,953. At April 30, 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 April 30, 1996 was 3.825%.
As of April 30, 1996, 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 six months ended
April 30, 1996, MLPF&S, an affiliate of FAM, earned $35,977 as
commissions.
5. Capital Loss Carryforward:
At October 31, 1995, the Fund had a net 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 willl be available to offset
like amounts of any future taxable gains.
6. Subsequent Event:
On May 10, 1996, the Fund's Board of Directors declared an ordinary
income dividend to Common Stock shareholders in the amount of
$0.063236 per share, payable on May 30, 1996 to shareholders of
record as of May 21, 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
<PAGE>
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, New York 10286
Preferred Stock:
IBJ Schroder Bank &Trust Company
One State Street
New York, New York 10004
Custodian
The Bank of New York
90 Washington Street
New York, New York 10286
NYSE Symbol
MVJ
