MUNIVEST
NEW JERSEY
FUND, INC.
FUND LOGO
Semi-Annual Report
April 30, 1998
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.
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.
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.
Managed Dividend
Policy
The Fund's dividend policy is to distribute substantially all of its
net investment income to its shareholders on a monthly basis.
However, in order to provide shareholders with a more consistent
yield to the current trading price of shares of Common Stock of the
Fund, the Fund may at times pay out less than the entire amount of
net investment income earned in any particular month and may at
times in any particular month pay out such accumulated but
undistributed income in addition to net investment income earned in
that month. As a result, the dividends paid by the Fund for any
particular month may be more or less than the amount of net
investment income earned by the Fund during such month. The Fund's
current accumulated but undistributed net investment income, if any,
is disclosed in the Statement of Assets, Liabilities and Capital,
which comprises part of the financial information included in this
report.
MuniVest New Jersey Fund, Inc., April 30, 1998
DEAR SHAREHOLDER
For the six months ended April 30, 1998, the Common Stock of
MuniVest New Jersey Fund, Inc. earned $0.385 per share income
dividends, which included earned and unpaid dividends of $0.063.
This represents a net annualized yield of 5.47%, based on a month-
end per share net asset value of $14.19. Over the same period, the
total return on the Fund's Common Stock was +2.88%, based on a
change in per share net asset value from $14.18 to $14.19, and
assuming reinvestment of $0.388 per share income dividends.
For the six-month period ended April 30, 1998, the Fund's Auction
Market Preferred Stock had an average yield of 3.50%.
The Municipal Market Environment
During the six months ended April 30, 1998, bond yields generally
moved lower, and by mid-January 1998 had declined to recent historic
lows. Long-term US Treasury bond yields declined 20 basis points
(0.20%) during the same period and stood at 5.95% by April 30, 1998.
Similarly, long-term uninsured tax-exempt bond yields, as measured
by the Bond Buyer Revenue Bond Index, fell approximately 35 basis
points to 5.25%, a level not seen since the mid-1970s. While low
inflation has supported lower interest rates, much of the decline in
bond yields in later 1997 and early 1998 was driven more by the
turmoil in Asian financial markets than by domestic economic
fundamentals. Weak economic conditions in Asia were expected to
negatively impact US growth through reduced export demand.
Additionally, inflation in the United States was also expected to
decline in response to lower prices on goods imported from Asian
manufacturers.
However, in recent months, many investors have become increasingly
concerned that most of the downturn in Asia, especially in Japan,
has already occurred and any future deterioration will not be severe
enough to constrain US economic growth and inflationary pressures.
These concerns served to push interest rates higher in the latter
part of the period, causing fixed-income yields to retrace much of
their earlier gains.
Thus far in 1998, the municipal bond market has experienced
unexpectedly strong supply pressures. These supply pressures have
prevented tax-exempt bond yields from declining as much as US
Treasury bond yields. Over the last six months, more than $135
billion in new tax-exempt bonds were underwritten, an increase of
more than 40% compared to the same period a year ago. During the
last three months, municipalities issued over $72 billion in new
securities, an increase of more than 60% compared to the same three-
month period in 1997. Additionally, corporate issuers have also
viewed current interest rate levels as an opportunity to issue
significant amounts of taxable securities. Thus far in 1998, over
$100 billion in investment-grade corporate bonds have been
underwritten, an increase of more than 60% relative to the
comparable period a year ago. This sizeable corporate bond issuance
has tended to support generally higher fixed-income yields and
reduce the demand for tax-exempt bonds.
However, the recent pace of new municipal bond issuance is unlikely
to be maintained. Continued increases in bond issuance will require
lower and lower tax-exempt bond yields to generate the economic
savings necessary for additional municipal bond refinancings.
Preliminary estimates for 1998 total municipal bond issuance are
presently in the $200 billion--$225 billion range. These estimates
suggest that recent supply pressures are likely to abate later in
the year. Municipal bond investors received approximately $30
billion earlier this year in coupon payments, bond maturities and
proceeds from early redemptions. The demand generated by these
assets has helped offset the increase in supply seen thus far this
year. Furthermore, looking ahead, June and July have also tended to
be periods of strong investor demand as seasonal factors are likely
to generate strong income flows similar to those seen earlier this
year.
It is also possible that at least some of the recent economic
strength seen in the United States will be reversed in the coming
months. A particularly mild winter has been partially responsible
for a strong housing sector, as well as other construction
industries. This recent strong trend may not be sustained and may
lead to weaker construction growth later this year. Additionally,
strong economic growth in 1997 and the increased use of electronic
tax filing have resulted in larger and earlier Federal and state
income tax refunds to many individuals. These refunds appear to have
supported strong consumer spending in recent months, but may be
borrowing against weaker spending later this year. In addition, the
continued impact of the Asian financial crisis on the US domestic
economy's future growth remains unclear. Barring a dramatic and
unexpected resurgence of domestic inflation, we do not believe that
the Federal Reserve Board will be willing to raise interest rates
until the full impact of the Asian situation can be established.
All these factors suggest that over the near term, tax-exempt as
well as taxable bond yields are unlikely to rise by any appreciable
amount. Recent supply pressures have caused municipal bond yield
ratios to rise relative to US Treasury bond yields. At April 30,
1998, long-term tax-exempt bond yields were at attractive yield
ratios relative to comparable US Treasury securities (over 90%), and
well in excess of their expected range of 85%--88%. Any further
pressure upon the municipal market may well represent a very
attractive investment opportunity.
Portfolio Strategy
Given the volatile market environment during the six months ended
April 30, 1998, MuniVest New Jersey Fund, Inc. benefited from our
relatively conservative strategy, motivated primarily by our efforts
to maintain a competitive dividend as well as to preserve the gains
we achieved. Our strategy to keep the Fund fully invested provided a
positive contribution to the overall performance of the Fund as
interest rates broadly declined throughout the latter part of 1997.
Since then, however, our conservative strategy has insulated the
Fund from much of the volatility experienced during the first
quarter of 1998.
The New Jersey economy continues to improve as the state
unemployment rate dropped to 5.1% as of March 31, 1998. Furthermore,
various measures of economic growth, including employment, new
business incorporations, per capita personal income and gross state
product, continue to reflect an economy growing at a pace similar to
that of the nation.
Looking ahead, we anticipate little change in our position, barring
a further rise in long-term interest rates. In our opinion, such a
scenario would provide an opportunity to further pursue our strategy
to extend the portfolio's average call protection. Until recently,
we have been reluctant to explore this approach given the extent of
the bond market rally. With long-term municipal yields beginning to
approach more reasonable levels on both an absolute and a relative
basis, our positive long-term outlook for interest rates may well
warrant a more aggressive pursuit of this strategy.
Leverage continues to benefit the Fund's Common Stock shareholders
as the Fund's cost of borrowing, as reflected by short-term tax-
exempt rates, remains well below the yields available on long-term
municipal bonds. The proceeds of the borrowing can be invested in
these long-term bonds, thereby providing an incremental yield
advantage over an unleveraged tax-exempt investment. While leverage
creates opportunities for yield enhancement, it also produces a
higher degree of volatility. For this reason, we have sought to
maintain a relatively low duration as a means to limit this inherent
volatility until such time as the interest-rate outlook comes into
full view. However, should the spread between short-term and long-
term interest rates narrow, the benefits of leverage will decline,
and as a result reduce the yield to the Fund's Common Stock. (For a
complete explanation of the benefits and risks of leveraging, see
page 1 of this report to 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
Senior Vice President
(Theodore R. Jaeckel Jr.)
Theodore R. Jaeckel Jr.
Vice President and Portfolio Manager
May 29, 1998
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
GO General Obligation Bonds
EDA Economic Development Authority
PCR Pollution Control Revenue Bonds
RITR Residual Interest Tax Receipts
UT Unlimited Tax
VRDN Variable Rate Demand Notes
MuniVest New Jersey Fund, Inc., April 30, 1998
<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 Camden County, New Jersey, Improvement Authority, Lease Revenue Bonds
- --99.7% (County Guaranteed), 6.15% due 10/01/2004 (b)(f) $ 2,774
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) 2,061
AAA Aaa 1,425 East Orange, New Jersey, Board of Education (AGH Leasing Inc.),
COP, 5.32%** due 8/01/2017 (e) 520
AAA Aaa 1,300 Highland Park, New Jersey, School District, GO, UT, 6.55% due
2/15/2005 (b)(f) 1,474
AA Aa3 3,200 Jersey City, New Jersey, School GO, UT, 6.65% due 2/15/2002 (f) 3,510
AAA Aaa 835 Metuchen, New Jersey, School District, GO, UT, 5.15% due 9/15/2019 (c) 820
AAA Aaa 1,600 Middlesex County, New Jersey, COP, 6.125% due 2/15/2019 (b) 1,717
AAA Aaa 4,190 New Jersey Casino Reinvestment Development Authority, Parking Fee
Revenue Bonds, Series A, 5.25% due 10/01/2016 (e) 4,185
AAA Aaa 2,400 New Jersey EDA, Educational Testing Services Revenue Bonds, Series B,
6.25% due 5/15/2025 (b) 2,615
New Jersey EDA, First Mortgage Revenue Bonds:
NR* NR* 1,250 (Franciscan Oaks Project), 5.75% due 10/01/2023 1,257
BBB- NR* 2,000 Refunding (Fellowship Village), Series A, 5.50% due 1/01/2025 1,951
AAA Aaa 3,900 New Jersey EDA, Natural Gas Facilities Revenue Refunding Bonds
(NUI Corporation), Series A, 6.35% due 10/01/2022 (d) 4,283
New Jersey EDA, Revenue Bonds:
BBB- Baa2 1,900 (American Airlines Inc. Project), AMT, 7.10% due 11/01/2031 2,062
NR* Aa3 1,500 Refunding (Burlington Coat Factory), 6.125% due 9/01/2010 1,628
NR* Aaa 7,385 (Saint Barnabas Project), 5.53%** due 7/01/2022 (b) 2,062
NR* Aa1 4,500 New Jersey EDA, Solid Waste Disposal Facilities Revenue Bonds
(Garden State Paper Company), AMT, 7.125% due 4/01/2022 4,910
BB- Ba2 3,630 New Jersey EDA, Special Facility Revenue Bonds (Continental Airlines
Inc. Project), AMT, 5.50% due 4/01/2028 3,568
New Jersey EDA, Water Facilities Revenue Bonds, AMT:
AAA Aaa 2,000 (American Water Company Inc. Project), 6% due 5/01/2036 (c) 2,111
AAA Aaa 2,855 RITR, Series 34, 6.32% due 5/01/2032 (c)(g) 2,812
AAA Aaa 1,500 RITR, Series 35, 6.27% due 2/01/2038 (b)(g) 1,500
New Jersey Health Care Facilities Financing Authority Revenue Bonds:
A- Baa1 3,135 Refunding (Capital Health System Obligation Group), 5.25%
due 7/01/2027 3,039
AAA Aaa 2,500 Refunding (Hackensack Medical Center), 6.625% due 7/01/2017 (c) 2,687
BBB+ NR* 3,000 Refunding (Holy Name Hospital), 6% due 7/01/2025 3,114
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) 1,086
BBB Baa2 2,075 Refunding (Saint Elizabeth Hospital Obligation Group), 6% due
7/01/2027 2,153
NR* Baa1 4,200 (Southern Ocean County Hospital), Series A, 6.25% due 7/01/2023 4,431
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) 2,179
A+ Aa 2,000 New Jersey Sports and Exposition Authority, State Contract,
Series A, 6% due 3/01/2021 2,094
New Jersey State Educational Facilities Authority Revenue Bonds:
AAA Aaa 1,500 (Higher Education--Princeton), Series C, 6.375% due 7/01/2002 (f) 1,641
AA+ Aaa 1,000 (Institute for Advanced Study), Series G, 5% due 7/01/2028 968
AA+ Aaa 1,000 Refunding (Institute for Advanced Study), Series F, 5% due 7/01/2018 981
AA+ Aa1 1,970 New Jersey State, GO, AMT, 7.05% due 7/15/2014 2,273
AAA Aaa 2,895 New Jersey State Housing and Mortgage Finance Agency, Home Buyer
Revenue Bonds, AMT, Series M, 7% due 10/01/2026 (b) 3,137
AAA Aaa 5,150 New Jersey State Transportation Corporation, COP (Raymond Plaza East,
Incorporated), 6.50% due 10/01/2016 (e) 5,793
AAA Aaa 2,000 New Jersey State Transportation Trust Fund Authority, Refunding
(Transportation System), Series A, 5% due 6/15/2015 (b) 1,964
AA- Aa1 1,865 New Jersey Wastewater Treatment Trust Loan Revenue Bonds, Series A,
6.50% due 4/01/2004 (f) 2,087
AAA Aaa 5,000 Passaic Valley, New Jersey, Sewer Commissioner's Refunding Bonds
(Sewer System), Series D, 5.875% due 12/01/2022 (d) 5,194
Port Authority of New York and New Jersey, Consolidated Revenue Bonds:
AA- A1 5,000 72nd Series, 7.35% due 10/01/2002 (f) 5,633
AA- A1 1,500 76th Series, AMT, 6.50% due 11/01/2026 1,597
AA- A1 1,000 93rd Series, 6.125% due 6/01/2094 1,127
AAA Aaa 2,500 Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (JFK International Air Terminal Project), AMT, Series 6,
3rd Installment, 5.75% due 12/01/2022 (b) 2,581
Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (Versatile Structure Obligation), VRDN (a):
A1+ VMIG1++ 1,500 Series 3, 4.05% due 6/01/2020 1,500
A1+ VMIG1++ 100 Series 5, 4.05% due 8/01/2024 100
AAA Aaa 1,115 South Brunswick Township, New Jersey, Board of Education, GO, UT,
6.40% due 8/01/2005 (c)(f) 1,245
A1+ P1 1,200 Union County, New Jersey, Industrial Pollution Control Financing
Authority, PCR, Refunding (Exxon Project), 3.80% due 10/01/2024 1,200
AA- A3 1,750 University of Medicine and Dentistry, New Jersey, Series E, 6.50%
due 12/01/2001 (f) 1,909
Total Investments (Cost--$108,519)--99.7% 115,108
Other Assets Less Liabilities--0.3% 389
--------
Net Assets--100.0% $115,497
========
<FN>
(a)The interest rate is subject to change periodically based upon
the prevailing market rate. The interest rate shown is the rate in
effect at April 30, 1998.
(b)MBIA Insured.
(c)FGIC Insured.
(d)AMBAC Insured.
(e)FSA Insured.
(f)Prerefunded.
(g)The interest rate is subject to change periodically and inversely
based upon prevailing market rates. The interest rate shown is the
rate in effect at April 30, 1998.
*Not Rated.
**Represents a zero coupon; the interest rate shown is the effective
yield at the time of purchase by the Fund.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
MuniVest New Jersey Fund, Inc., April 30, 1998
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of April 30, 1998
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$108,518,962) (Note 1a) $115,107,792
Receivables:
Interest $ 1,574,979
Securities sold 344,514 1,919,493
------------
Deferred organization expenses (Note 1e) 2,715
Prepaid expenses and other assets 7,504
------------
Total assets 117,037,504
------------
Liabilities: Payables:
Securities purchased 1,255,990
Dividends to shareholders (Note 1f) 115,797
Investment adviser (Note 2) 48,002 1,419,789
------------
Accrued expenses and other liabilities 120,786
------------
Total liabilities 1,540,575
------------
Net Assets: Net assets $115,496,929
============
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 402,900
Accumulated realized capital losses on investments--net (Note 5) (6,064,684)
Unrealized appreciation on investments--net 6,588,830
------------
Total--Equivalent to $14.19 net asset value per share of
Common Stock (market price--$13.75) 77,996,929
------------
Total capital $115,496,929
============
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 1998
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 3,190,742
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 286,351
Commission fees (Note 4) 47,835
Professional fees 42,938
Accounting services (Note 2) 33,063
Transfer agent fees 13,635
Directors' fees and expenses 12,979
Listing fees 8,128
Custodian fees 5,005
Printing and shareholder reports 3,627
Pricing fees 2,607
Amortization of organization expenses (Note 1e) 446
Other 7,948
------------
Total expenses 464,562
------------
Investment income--net 2,726,180
------------
Realized & Realized gain on investments--net 684,858
Unrealized Gain on Change in unrealized appreciation on investments--net (626,645)
Investments--Net ------------
(Notes 1b, 1d & 3): Net Increase in Net Assets Resulting from Operations $ 2,784,393
============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the For the
Six Months Year
Ended Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 1998 1997
<S> <S> <C> <C>
Operations: Investment income--net $ 2,726,180 $ 5,519,134
Realized gain on investments--net 684,858 36,113
Change in unrealized appreciation on investments--net (626,645) 2,137,716
------------ ------------
Net increase in net assets resulting from operations 2,784,393 7,692,963
------------ ------------
Dividends to Investment income--net:
Shareholders Common Stock (2,131,315) (4,272,415)
(Note 1f): Preferred Stock (643,725) (1,207,695)
------------ ------------
Net decrease in net assets resulting from dividends
to shareholders (2,775,040) (5,480,110)
------------ ------------
Net Assets: Total increase in net assets 9,353 2,212,853
Beginning of period 115,487,576 113,274,723
------------ ------------
End of period* $115,496,929 $115,487,576
============ ============
<FN>
*Undistributed investment income--net $ 402,900 $ 451,760
============ ============
See Notes to Financial Statements.
</TABLE>
MuniVest New Jersey Fund, Inc., April 30, 1998
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios For the
have been derived from information Six Months
provided in the financial statements. Ended For the Year Ended
April 30, October 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 14.18 $ 13.78 $ 13.76 $ 12.18 $ 14.89
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .50 1.00 1.01 1.02 1.00
Realized and unrealized gain (loss)
on investments--net .02 .40 .01 1.58 (2.66)
-------- -------- -------- -------- --------
Total from investment operations .52 1.40 1.02 2.60 (1.66)
-------- -------- -------- -------- --------
Less dividends and distributions
to Common Stock shareholders:
Investment income--net (.39) (.78) (.78) (.76) (.81)
Realized gain on investments--net -- -- -- -- (.04)
-------- -------- -------- -------- --------
Total dividends and distributions
to Common Stock shareholders (.39) (.78) (.78) (.76) (.85)
-------- -------- -------- -------- --------
Effect of Preferred Stock activity:
Dividends and distributions to
Preferred Stock shareholders:
Investment income--net (.12) (.22) (.22) (.26) (.19)
Realized gain on investments--net -- -- -- -- (.01)
-------- -------- -------- -------- --------
Total effect of Preferred Stock
activity (.12) (.22) (.22) (.26) (.20)
-------- -------- -------- -------- --------
Net asset value, end of period $ 14.19 $ 14.18 $ 13.78 $ 13.76 $ 12.18
======== ======== ======== ======== ========
Market price per share,
end of period $ 13.75 $ 13.25 $ 12.25 $ 12.00 $ 10.125
======== ======== ======== ======== ========
Total Investment Based on market price per share 6.69%+++ 14.78% 8.67% 26.66% (27.74%)
Return:** ======== ======== ======== ======== ========
Based on net asset value per share 2.88%+++ 9.19% 6.61% 20.74% (12.43%)
======== ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .81%* .83% .81% .84% .79%
Net Assets:*** ======== ======== ======== ======== ========
Expenses .81%* .83% .81% .84% .82%
======== ======== ======== ======== ========
Investment income--net 4.76%* 4.82% 4.87% 5.20% 4.89%
======== ======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock,
Data: end of period (in thousands) $ 77,997 $ 77,988 $ 75,775 $ 75,657 $ 66,978
======== ======== ======== ======== ========
Preferred Stock outstanding,
end of period (in thousands) $ 37,500 $ 37,500 $ 37,500 $ 37,500 $ 37,500
======== ======== ======== ======== ========
Portfolio turnover 28.01% 39.77% 99.56% 62.45% 68.75%
======== ======== ======== ======== ========
Leverage: Asset coverage per $1,000 $ 3,080 $ 3,080 $ 3,021 $ 3,018 $ 2,786
======== ======== ======== ======== ========
Dividends Investment income--net $ 429 $ 805 $ 818 $ 955 $ 696
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.
See Notes to Financial Statements.
***Do not reflect the effect of dividends to Preferred Stock
shareholders.
++Dividends per share have been adjusted to reflect a two-for-one
stock split that occurred on December 1, 1994.
+++Aggregate total investment return.
</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. 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.
* Financial futures contracts--The Fund may purchase or sell
financial 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.
(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.
MuniVest New Jersey Fund, Inc., April 30, 1998
NOTES TO FINANCIAL STATEMENTS (concluded)
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
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, including proceeds from the
issuance of Preferred Stock.
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, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 1998 were $31,298,839 and
$32,216,407, respectively.
Net realized gains for the six months ended April 30, 1998 and net
unrealized gains as of April 30, 1998 were as follows:
Realized Unrealized
Gains Gains
Long-term investments $ 684,858 $ 6,588,830
------------ ------------
Total $ 684,858 $ 6,588,830
============ ============
As of April 30, 1998, net unrealized appreciation for Federal income
tax purposes aggregated $6,588,830, of which $6,775,154 related to
appreciated securities and $186,324 related to depreciated
securities. The aggregate cost of investments at April 30, 1998 for
Federal income tax purposes was $108,518,962.
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
Shares issued and outstanding during the six months ended April 30,
1998 and the year ended October 31, 1997 remained constant.
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, 1998 was 4.00%.
As of April 30, 1998, 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, 1998, Merrill Lynch, Pierce, Fenner & Smith Inc., an
affiliate of FAM, earned $34,278 as commissions.
5. Capital Loss Carryforward:
At October 31, 1997, the Fund had a net capital loss carryforward of
approximately $5,283,000, of which $2,953,000 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 May 7, 1998, the Fund's Board of Directors declared an ordinary
income dividend to Common Stock shareholders in the amount of
$.062909 share, payable on May 28, 1998 to shareholders of record as
of May 21, 1998.
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
Fred G. Weiss, Director
Terry K. Glenn, Executive Vice President
Vincent R. Giordano, Senior Vice President
Donald C. Burke, Vice President
Kenneth A. Jacob, Vice President
Theodore R. Jaeckel Jr., Vice President
Gerald M. Richard, Treasurer
Patrick D. Sweeney, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Stock:
IBJ Schroder Bank &Trust Company
One State Street
New York, NY 10004
NYSE Symbol
MVJ
QUALITY PROFILE
The quality ratings of securities in the Fund as of April 30, 1998
were as follows:
Percent of
S&P Rating/Moody's Rating Net Assets
AAA/Aaa 55.4%
AA/Aa 23.2
A/A 2.6
BBB/Baa 11.9
BB/Ba 3.1
NR (Not Rated) 1.1
Other+ 2.4
[FN]
+Temporary investments in short-term municipal securities.
