MUNIVEST
PENNSYLVANIA
INSURED
FUND
FUND LOGO
Semi-Annual Report
April 30, 1995
This report, including the financial information
herein, is transmitted to the shareholders of MuniVest
Pennsylvania Insured Fund 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 perfor-
mance. The Fund has leveraged its Common Shares
by issuing Preferred Shares to provide Common
Shareholders with a potentially higher rate of
return. Leverage creates risks for Common Share-
holders, including the likelihood of greater volatility
of net asset value and market price of the Common
Shares, and the risk that fluctuations in the
short-term dividend rates of the Preferred Shares
may affect the yield to Common Shareholders.
<PAGE>
MuniVest Pennsylvania
Insured Fund
Box 9011
Princeton, NJ
08543-9011
MUNIVEST PENNSYLVANIA INSURED FUND
The Benefits and
Risks of
Leveraging
MuniVest Pennsylvania Insured Fund utilizes leveraging to seek
to enhance the yield and net asset value of its Common Shares.
However, these objectives cannot be achieved in all interest rate
environments. To leverage, the Fund issues Preferred Shares,
which pay 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 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
Shares. However, in order to benefit Common 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
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 Share
capitalization of $100 million and the issuance of Preferred Shares
for an additional $50 million, creating a total value of $150 million
available for investment in long-term municipal bonds. If prevail-
ing 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 Shares 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.
<PAGE>
In this case, the dividends paid to Preferred Shareholders are
significantly lower than the income earned on the fund's long-
term investments, and therefore the Common Shareholders are
the beneficiaries of the incremental yield. However, if short-term
interest rates rise, narrowing the differential between short-
term and long-term interest rates, the incremental yield pick-up
on the Common Shares will be reduced or eliminated completely.
At the same time, the market value of the fund's Common Shares
(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 Shares' net asset value will reflect the full decline in
the price of the portfolio's investments, since the value of the fund's
Preferred Shares does not fluctuate. In addition to the decline in
net asset value, the market value of the fund's Common Shares
may also decline.
Officers and
Trustees
Arthur Zeikel, President and Trustee
Herbert I. London, Trustee
Robert R. Martin, Trustee
Joseph L. May, Trustee
Andre F. Perold, Trustee
Terry K. Glenn, Executive Vice President
Donald C. Burke, Vice President
Vincent R. Giordano, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Transfer Agent
Common Shares:
The Bank of New York
101 Barclay Street
New York, New York 10286
Preferred Shares:
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
MVP
<PAGE>
DEAR SHAREHOLDER
For the six months ended April 30,
1995, the Common Shares of MuniVest
Pennsylvania Insured Fund earned
$0.378 per share income dividends,
which included earned and unpaid divi-
dends of $0.061. This represents a net
annualized yield of 6.23%, based on a
month-end net asset value of $12.24 per
share. Over the same period, the total
investment return on the Fund's Com-
mon Shares was +9.73%, based on a
change in per share net asset value from
$11.54 to $12.24, and assuming rein-
vestment of $0.384 per share income
dividends.
The average yield of the Fund's Auction
Market Preferred Shares for the six
months ended April 30, 1995 was 3.81%.
The Environment
During the six months ended April 30,
1995, the perception that the US econ-
omy was overheating and inflationary
pressures were increasing gave way to a
more benign economic outlook. With
more signs of slowing growth, investors
now appear to be forecasting a "soft
landing" for the US economy. Although
gross domestic product was reported to
have increased at a revised 5.1% rate
during the final quarter of 1994, declines
in other indicators such as new home
sales and durable goods orders registered
thus far in 1995 have led investors to
anticipate that the economy is losing
enough momentum to keep inflation
under control and preclude further sig-
nificant monetary policy tightening by
the Federal Reserve Board. A further
indication of a slowing economy was the
reported decline in the Index of Leading
Economic Indicators for March.
<PAGE>
As US stock and bond markets have
risen on more positive economic news,
the value of the US dollar has reached
new lows relative to the yen and the
Deutschemark. Persistent trade deficits
and exports of capital from the United
States have kept the US currency in a
decade-long decline relative to the
Japanese and German currencies. Over
the longer term, since the United States
has the highest productivity among
industrialized nations and among the
lowest labor costs, demand for US
dollar-denominated assets may improve.
However, a reduction of the still-
widening US trade deficit may be neces-
sary before the US dollar appreciates
substantially relative to the yen and
the Deutschemark.
The first months of 1995 have been very
positive for the stock and bond markets.
Continued signs of a moderating expan-
sion and well-contained inflationary
pressures would provide further assur-
ance that the peak in interest rates is
behind us. On the other hand, indica-
tions of reaccelerating growth and
further significant monetary policy
tightening by the Federal Reserve Board
would be a decided negative for the US
financial markets.
<PAGE>
The Municipal Market
During the six-month period ended
April 30, 1995, the tax-exempt bond
market gradually recouped much of the
losses sustained during 1994. Signs of
a weakening domestic economy and
ongoing moderate inflationary pressures
have fostered an environment of declin-
ing interest rates. Since October 31, 1994,
A-rated, uninsured municipal revenue
bond yields, as measured by the Bond
Buyer Revenue Bond Index, have
declined over 65 basis points (0.65%) to
close the six-month period ended April
30, 1995 at 6.29%. Tax-exempt bond
yields initially continued to climb in late
1994, reaching a high of 7.37% in late
November 1994. Municipal bond yields
have since declined over 100 basis points
from their recent highs and are presently
lower than they were a year ago. US
Treasury bond yields have experienced
similar declines over the last six months
to end the April period at 7.34%.
Much of the recent improvement in the
tax-exempt bond market, however, has
occurred over the last three months.
During this most recent quarter, munici-
pal bond yields have fallen approximately
50 basis points, while US Treasury bond
yields declined only 35 basis points.
Tax-exempt bond yields declined more
than their taxable counterparts in recent
months, largely in response to the sig-
nificant decline in new bond issuance
in recent quarters. Over the last six
months, less than $60 billion in new
long-term municipal securities were
underwritten, a decline of nearly 45%
versus the comparable period a year
earlier. Issuance was particularly low
this past January and February, with
monthly volume of less than $8 billion.
These levels are the lowest monthly
totals since the mid-1980s.
<PAGE>
To compound the municipal market's
already strong technical posture, both
institutional and individual investors
have seen significant cash inflows in
recent months. These assets were
derived from regular coupon payments,
bond maturities and the proceeds from
early bond calls and redemptions. It has
been estimated that investors received
over $20 billion in principal redemptions
and coupon income in January 1995
alone. With monthly issuance in the
$10 billion range thus far this year, the
current supply/demand imbalance has
dominated the municipal market and
bond prices have risen accordingly. The
tax-exempt bond market's technical
position is likely to remain very strong
throughout most of 1995. Investors are
expected to receive almost $40 billion
in principal and coupon payments on
July 1, 1995. Investor proceeds from all
sources have been estimated to exceed
$200 billion for all of 1995. Estimates
of total new bond issuance for 1995
have continued to be lowered with most
estimates now in the $125 billion range.
Investors should find it increasingly
difficult to replace existing holdings as
they mature and to reinvest coupon
income in such an environment.
The municipal bond market's outper-
formance thus far this year caused the
tax-exempt market to become tempo-
rarily expensive relative to its taxable
counterpart in late April. Investor con-
cerns regarding the international cur-
rency situation and the future impact
of proposed revisions to US taxation
policies upon the tax advantage inherent
to municipal bonds have combined to
cause tax-exempt bond yields to increase
marginally in recent weeks. Municipal
bond yields have risen approximately
15 basis points from their lows in mid-
April 1995. Long-term US Treasury bond
yields have remained essentially stable.
<PAGE>
Such an underperformance by the tax-
exempt bond market is likely to be
limited in duration. The recent increase
in tax-exempt bond yields has already
begun to attract institutional investors
since some municipal bonds yielding in
excess of 85% of US Treasury bond yields
are again available. Also, concerns
regarding the implication for municipal
bonds' tax advantage resulting from
various proposed tax law changes (for
example, flat-tax, value-added tax or
national sales tax) are all likely to
quickly recede as investors realize that
such, if any, changes are unlikely to be
enacted before late 1996 at the earliest.
Long-term investors will also recall 1986
when similar tax proposals were made
and tax-exempt bond yields initially
rose and then quickly fell. Investors are
likely to view the current situation as
an opportunity to purchase very attrac-
tively priced tax-advantaged products.
This should cause municipal bond
yields to quickly return to their more
historic relationship.
Portfolio Strategy
MuniVest Pennsylvania Insured Fund
began the six-month period ended
April 30, 1995 defensively postured in
response to the extreme volatility that
plagued the fixed-income markets dur-
ing most of 1994. However, since early
1995, we have become more positive on
the markets' prospects for several
reasons. First, we saw signs of an
apparent economic slowdown in the
United States just as inflationary pres-
sures were reaching critical levels, thus
reducing concern among fixed-income
investors. At the same time, municipal
issuance continued to plunge, which
aggravated an already troublesome
situation and propelled municipal bonds
to significantly outperform Treasury
securities during the April period. In
fact, for the six months ended April 30,
1995, Pennsylvania tax-exempt issuance
declined by about 40% compared to the
same period in 1994.
<PAGE>
Initially, we reacted to the changing
environment by reducing cash reserves
from approximately 10% of net assets
in November 1994 to nearly zero by
early 1995, and then maintaining a fully
invested posture for the balance of the
April period. We also restructured the
portfolio to give the Fund a more aggres-
sive stance in the marketplace. There-
fore, we selectively sold par bonds with
limited room for price appreciation and
replaced them with discount coupon
bonds. As credit quality is always a
priority, approximately 88% of the
Fund's portfolio holdings were rated A or
better by at least one of the major
rating agencies.
In Conclusion
We appreciate your ongoing interest in
MuniVest Pennsylvania Insured Fund,
and we look forward to assisting you
with your financial needs in the months
and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
May 24, 1995
<PAGE>
Portfolio
Abbreviations
To simplify the listings of MuniVest Pennsylvania Insured Fund'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)
GO Government Obligation Bonds
IDA Industrial Development Authority
PCR Pollution Control Revenue Bonds
UT Unlimited Tax
VRDN Variable Rate Demand Notes
YCN Yield Curve 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>
Pennsylvania--97.1% AAA Aaa $ 1,600 Altoona, Pennsylvania, City Authority, Water Revenue Bonds,
Series A, 6.50% due 11/01/2019 (c) $ 1,662
AAA Aaa 2,940 Armstrong County, Pennsylvania, Hospital Authority, Health Center,
Revenue Refunding Bonds (Canterbury Place Project), 6.50% due
12/01/2021 (b) 3,012
AAA Aaa 1,400 Beaver County, Pennsylvania, IDA, PCR, Refunding (Ohio Edison
Company/Mansfield), Series A, 7% due 6/01/2021 (c) 1,504
AAA Aaa 2,550 Blair County, Pennsylvania, Hospital Authority Revenue Bonds
(Altoona Hospital Project), 6.375% due 7/01/2013 (d) 2,593
AAA Aaa 1,590 Bucks County, Pennsylvania, Water and Sewer Authority, Sewer System
Revenue Bonds, 6.75% due 12/01/2019 (c) 1,667
BBB+ Baa1 1,700 Delaware County, Pennsylvania, Hospital Authority Revenue Bonds
(Crozer--Chester), 6% due 12/15/2020 1,440
NR* P1 1,300 Delaware County, Pennsylvania, IDA, PCR, VRDN 4.85% due 10/01/2019 (a) 1,300
AAA Aaa 2,000 Delaware County, Pennsylvania, IDA, PCR (Philadelphia Electric
Company Project), Series A, 7.375% due 4/01/2021 (d) 2,191
<PAGE>
AAA Aaa 2,750 Hampton Township, Pennsylvania, School District Revenue Bonds, UT,
6.75% due 11/15/2004 (d)(g) 3,048
AAA Aaa 3,280 Johnstown, Pennsylvania, Refunding Bonds, UT, 6.45% due 10/01/2019 (c) 3,366
AAA Aaa 3,395 Lehigh County, Pennsylvania, IDA, PCR, Refunding (Pennsylvania Power
& Light Company Project), Series A, 6.40% due 11/01/2021 (b) 3,448
AAA Aaa 3,000 Luzerne County, Pennsylvania, IDA, Exempt Facilities Revenue Refunding
Bonds (Pennsylvania Gas & Water Company Project), AMT, Series A,
7% due 12/01/2017 (d) 3,229
AAA NR* 1,200 Montgomery County, Pennsylvania, Higher Education and Health Authority,
Revenue Refunding Bonds (Saint Joseph's University),
6.50% due 12/15/2022 (h) 1,226
AAA Aaa 4,000 North Allegheny, Pennsylvania, School District Refunding Bonds,
Series A, UT, 6.35% due 11/01/2012 (d) 4,081
AAA Aaa 3,000 North Penn, Pennsylvania, Water Authority Revenue Bonds,
7% due 11/01/2024 (c) 3,329
AAA Aaa 1,000 Northeastern, Pennsylvania, Hospital and Educational Authority,
College Revenue Bonds, Guaranteed (Luzerne County Community College),
6.625% due 8/15/2015 (d) 1,047
BBB NR* 2,500 Northeastern, Pennsylvania, Hospital and Educational Authority, University
Revenue Refunding Bonds (Wilkes University), 5.625% due 10/01/2018 2,204
BBB+ Baa1 2,500 Pennsylvania Economic Development Financing Authority, Wastewater
Treatment Revenue Bonds (Sun Company Inc.--R & M Project), AMT,
Series A, 7.60% due 12/01/2024 2,636
Pennsylvania State Higher Educational Assistance Agency Revenue Bonds
(Student Loan Revenue), AMT:
AAA Aaa 2,000 Series A, 7.05% due 10/01/2016 (d) 2,095
AAA Aaa 4,000 Series C, 7.15% due 9/01/2021 (d) 4,202
A1+ VMIG1++ 200 VRDN, Series B, 4.60% due 7/01/2018 (a) 200
AAA Aaa 2,750 Pennsylvania State Higher Educational Facilities Authority, College
and University Revenue Bonds (Temple University), 7.40% due 10/01/2010 (b) 2,893
AAA Aaa 960 Pennsylvania State Higher Educational Facilities Authority Revenue
Bonds (State System), Series J, 5.625% due 6/15/2019 (d) 898
Pennsylvania State Turnpike Commission, Turnpike Revenue Bonds:
AAA Aaa 1,000 Series J, 7.20% due 12/01/2001 (c)(g) 1,133
AAA Aaa 3,000 Series L, 6.25% due 6/01/2011 (d) 3,051
<PAGE>
AAA Aaa 1,965 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds,
5.60% due 8/01/2018 (b) 1,838
Pittsburgh, Pennsylvania, Water and Sewer Authority, Revenue
Refunding Bonds (Water and Sewer System)(c):
AAA Aaa 1,200 (Crossover), 7.25% due 9/01/2014 (i) 1,402
AAA Aaa 2,500 Series A, 6.50% due 9/01/2013 2,664
A1 NR* 1,000 Schuylkill County, Pennsylvania, IDA, Resource Recovery Revenue Bonds
(Northeastern Power Company), VRDN, 5.10% due 12/01/2011 (a) 1,000
BBB+ NR* 2,650 Sharon, Pennsylvania, Regional Health System Authority, Hospital
Revenue Bonds (Sharon Regional Health Systems Project), Series B,
6.875% due 12/01/2022 2,538
AAA Aaa 2,000 Solanco, Pennsylvania, School District Revenue Bonds, UT,
6.30% due 2/15/2014 (c) 2,035
AAA Aaa 4,550 Southeastern, Pennsylvania, Transportation Authority, Pennsylvania
Special Revenue Bonds, Series A, 5.75% due 3/01/2020 (c) 4,330
AAA Aaa 500 Wayne County, Pennsylvania, Hospital and Health Facilities Authority
Revenue Bonds, County Guaranteed (Wayne Memorial Hospital Project),
6.375% due 7/01/2024 (b) 505
A1+ P1 700 York County, Pennsylvania, IDA, PCR, Refunding (Philadelphia Electric
Company), VRDN, Series A, 4.40% due 8/01/2016 (a) 700
Puerto Rico--1.9% AAA Aaa 1,500 Commonwealth of Puerto Rico, GO, YCN, 7.647% due 7/01/2020 (e)(f) 1,425
Total Investments (Cost--$74,629)--99.0% 75,892
Other Assets Less Liabilities--1.0% 789
-------
Net Assets--100.0% $76,681
=======
<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, 1995.
(b)MBIA Insured.
(c)FGIC Insured.
(d)AMBAC Insured.
(e)FSA Insured.
(f)The interest rate is subject to change periodically and inversely to the
prevailing market rate. The interest rate shown is the rate in effect at
April 30, 1995.
(g)Prerefunded.
(h)Connie Lee Insured.
(i)Escrowed to maturity.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of April 30, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$74,628,795) (Note 1a) $ 75,892,328
Cash 58,993
Receivables:
Interest $ 1,418,360
Securities sold 1,321,512 2,739,872
------------
Deferred organization expenses (Note 1e) 47,931
Prepaid expenses and other assets 14,587
------------
Total assets 78,753,711
------------
Liabilities: Payables:
Securities purchased 1,886,007
Dividends to shareholders (Note 1f) 86,473
Investment adviser (Note 2) 20,842 1,993,322
------------
Accrued expenses and other liabilities 79,073
------------
Total liabilities 2,072,395
------------
Net Assets: Net assets $ 76,681,316
============
Capital: Capital Shares (unlimited number of shares authorized) (Note 4):
Preferred Shares, par value $.10 per share (1,100 shares of AMPS* issued and
outstanding at $25,000 per share liquidation preference) $ 27,500,000
Common Shares, par value $.10 per share (4,019,033 shares issued and outstanding) $ 401,903
Paid-in capital in excess of par 55,723,495
Undistributed investment income--net 282,641
Accumulated realized capital losses on investments--net (Note 5) (8,490,256)
Unrealized appreciation on investments--net 1,263,533
------------
Total--Equivalent to $12.24 net asset value per Common Share (market price--$11.625) 49,181,316
------------
Total capital $ 76,681,316
============
<FN>
*Auction Market Preferred Shares.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 1995
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 2,338,440
Income
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 185,336
Commission fees (Note 4) 36,584
Professional fees 34,688
Accounting services (Note 2) 20,700
Printing and shareholder reports 19,897
Transfer agent fees 14,329
Trustees' fees and expenses 10,948
Listing fees 9,940
Amortization of organization expenses (Note 1e) 6,132
Custodian fees 5,038
Pricing fees 3,706
Other 8,830
-----------
Total expenses before reimbursement 356,128
Reimbursement of expenses (Note 2) (74,946)
-----------
Total expenses after reimbursement 281,182
------------
Investment income--net 2,057,258
------------
Realized & Realized loss on investments--net (3,798,682)
Unrealized Change in unrealized appreciation/depreciation on investments--net 6,595,557
Gain (Loss) ------------
on Invest- Net Increase in Net Assets Resulting from Operations $ 4,854,133
ments--Net ============
(Notes 1b,
1d & 3):
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: April 30, 1995 Oct. 31, 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 2,057,258 $ 4,189,336
Realized loss on investments--net (3,798,682) (4,691,570)
Change in unrealized appreciation/depreciation on investments--net 6,595,557 (7,585,261)
------------ ------------
Net increase (decrease) in net assets resulting from operations 4,854,133 (8,087,495)
------------ ------------
Dividends & Investment income--net:
Distribu- Common Shares (1,543,144) (3,431,314)
tions to Preferred Shares (519,706) (792,473)
Shareholders Realized gain on investments--net:
(Note 1f): Common Shares -- (231,439)
Preferred Shares -- (35,547)
------------ ------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (2,062,850) (4,490,773)
------------ ------------
Capital Offering and underwriting costs resulting from the issuance of
Share Preferred Shares -- (12,965)
Transactions Value of shares issued to Common Shareholders in reinvestment of
(Notes 1e dividends and distributions -- 1,112,255
& 4): ------------ ------------
Net increase in net assets derived from capital share transactions -- 1,099,290
------------ ------------
Net Assets: Total increase (decrease) in net assets 2,791,283 (11,478,978)
Beginning of period 73,890,033 85,369,011
------------ ------------
End of period* $ 76,681,316 $ 73,890,033
============ ============
<FN>
*Undistributed investment income--net $ 282,641 $ 288,233
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Six For the For the Period
Months Ended Year Ended July 30, 1993++
Increase (Decrease) in Net Asset Value: April 30, 1995 Oct. 31, 1994 to Oct. 31, 1993
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 11.54 $ 14.70 $ 14.18
Operating ----------- ----------- -----------
Performance: Investment income--net .51 1.05 .25
Realized and unrealized gain (loss) on investments--net .70 (3.08) .64
----------- ----------- -----------
Total from investment operations 1.21 (2.03) .89
----------- ----------- -----------
Less dividends and distributions to Common Shareholders:
Investment income--net (.38) (.86) (.13)
Realized gain on investments--net -- (.06) --
----------- ----------- -----------
Total dividends and distributions to Common Shareholders (.38) (.92) (.13)
----------- ----------- -----------
Capital charge resulting from issuance of Common Shares -- -- (.05)
----------- ----------- -----------
Effect of Preferred Share activity++++:
Dividends and distributions to Preferred Shareholders:
Investment income--net (.13) (.20) (.03)
Realized gain on investments--net -- (.01) --
Capital charge resulting from issuance of Preferred Shares -- -- (.16)
----------- ----------- -----------
Total effect of Preferred Share activity (.13) (.21) (.19)
----------- ----------- -----------
Net asset value, end of period $ 12.24 $ 11.54 $ 14.70
=========== =========== ===========
Market price per share, end of period $ 11.625 $ 10.875 $ 15.00
=========== =========== ===========
Total Based on market value per share 10.59%+++ (22.20%) .92%+++
Investment =========== =========== ===========
Return:** Based on net asset value per share 9.73%+++ (15.76%) 4.62%+++
=========== =========== ===========
Ratios to Expenses, net of reimbursement .76%* .51% .90%*
Average Net =========== =========== ===========
Assets:*** Expenses .96%* .86% .90%*
=========== =========== ===========
Investment income--net 5.56%* 5.24% 5.27%*
=========== =========== ===========
<PAGE>
Supplemental Net assets, net of Preferred Shares, end of period
Data: (in thousands) $ 49,181 $ 46,390 $ 57,869
=========== =========== ===========
Preferred Shares outstanding, end of period (in thousands) $ 27,500 $ 27,500 $ 27,500
=========== =========== ===========
Portfolio turnover 42.34% 93.00% 22.31%
=========== =========== ===========
Dividends Investment income--net $ 473 $ 721 $ 119
Per Share
on Preferred
Shares
Outstanding:++++++
<FN>
++Commencement of Operations.
++++The Fund's Preferred Shares were issued on September 2, 1993.
++++++Dividends per share have been adjusted to reflect a two-for-one stock split.
+++Aggregate total investment return.
*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 Shareholders.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniVest Pennsylvania Insured Fund (the "Fund") is registered
under the Investment Company Act of 1940 as a non-diversified,
closed-end management investment company. These unaudited finan-
cial 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 determines and makes available for
publication the net asset value of its Common Shares on a weekly
basis. The Fund's Common Shares are listed on the New York Stock
Exchange under the symbol MVP. The following is a summary of
significant accounting policies followed by the Fund.
<PAGE>
(a) Valuation of investments--Municipal bonds are traded primarily
in the over-the-counter markets and are valued at the most recent bid
price or yield equivalent as obtained by the Fund's pricing service
from dealers that make markets in such securities. Financial futures
contracts and options thereon, which are traded on exchanges, are
valued at their closing prices as of the close of such exchanges.
Options, which are traded on exchanges, are valued at their last sale
price as of the close of such exchanges or, lacking any sales, at the
last available bid price. Securities with remaining maturities of sixty
days or less are valued at amortized cost, which approximates market
value. Securities for which market quotations are not readily avail-
able are valued at fair value as determined in good faith by or under
the direction of the Board of Trustees of the Fund.
(b) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its port-
folio 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 con-
tract 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).
<PAGE>
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 trans-
actions are recorded on the dates the transactions are entered into
(the trade dates). Interest income is recognized on the accrual basis.
Discounts and market premiums are amortized into interest income.
Realized gains and losses on security transactions are determined on
the identified cost basis.
(e) Deferred organization and offering expenses--Deferred organiza-
tion expenses are amortized on a straight-line basis over a five-year
period. Direct expenses relating to the public offering of the Fund's
Common and Preferred Shares were charged to capital at the time of
issuance of the shares.
(f) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital gains
are recorded on the ex-dividend dates.
NOTES TO FINANCIAL STATEMENTS (concluded)
2. Investment Advisory Agreement and Transactions with
Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). The general partner of FAM
is Princeton Services, Inc. ("PSI"), an indirect wholly-owned sub-
sidiary 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. For the six months ended
April 30, 1995, FAM earned fees of $185,336, of which $74,946 was
voluntarily waived.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, Merrill Lynch, Pierce, Fenner & Smith Inc.
("MLPF&S"), and/or ML & Co.
<PAGE>
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 1995 were $30,830,555 and
$29,549,359, respectively.
Net realized and unrealized gains (losses) as of April 30, 1995 were
as follows:
Realized Unrealized
Losses Gains
Long-term investments $(3,534,143) $1,263,533
Financial futures contracts (264,539) --
----------- ----------
Total $(3,798,682) $1,263,533
=========== ==========
As of April 30, 1995, net unrealized appreciation for Federal income
tax purposes aggregated $1,263,533, of which $2,308,041 related to
appreciated securities and $1,044,508 related to depreciated securities.
The aggregate cost of investments at April 30, 1995 for Federal
income tax purposes was $74,628,795.
4. Capital Share Transactions:
The Fund is authorized to issue an unlimited number of shares of
beneficial interest, including Preferred Shares, par value $.10 per
share, all of which were initially classified as Common Shares. The
Board of Trustees is authorized, however, to reclassify any unissued
shares of capital without approval of holders of Common Shares.
Common Shares
For the six months ended April 30, 1995, shares issued and outstand-
ing remained constant at 4,019,033. At April 30, 1995, total paid-in
capital amounted to $56,125,398.
Preferred Shares
Auction Market Preferred Shares ("AMPS") are Preferred Shares of
the Fund that entitle their holders to receive cash dividends at
an annual rate that may vary for the successive dividend periods.
The yield in effect at April 30, 1995 was 4.25%.
A two-for-one stock split occured on December 1, 1994. As a result,
for the six months ended April 30, 1995, there were 1,100 AMPS
authorized, issued and outstanding with a liquidation preference of
$25,000 per share, plus accumulated and unpaid dividends of $16,013.
The Fund pays commissions to certain broker-dealers at the end of
each auction at the annual rate, ranging from 0.25% to 0.375%, calcu-
lated on the proceeds of each auction. For the six months ended April 30,
1995, MLPF&S, an affiliate of FAM, earned $32,499 as commissions.
<PAGE>
5. Capital Loss Carryforward:
At October 31, 1994, the Fund had a capital loss carryforward of
approximately $4,474,000, all of which expires in 2002. This amount
will be available to offset like amounts of any future taxable gains.
6. Subsequent Event:
On May 9, 1995, the Fund's Board of Trustees declared an
ordinary income dividend to Common Shareholders in the amount of
$.061297 per share, payable on May 30, 1995 to shareholders
of record as of May 19, 1995.
PER SHARE INFORMATION
<TABLE>
Per Share
Selected Quarterly
Financial Data*
<CAPTION>
Net Realized Unrealized Dividends/Distributions
Investment Gains Gains Net Investment Income Capital Gains
For the Quarter Income (Losses) (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
July 30, 1993++ to October 31, 1993 $.25 $.07 $ .57 $.13 $.03 -- --
November 1, 1993 to January 31, 1994 .27 .03 .13 .22 .05 $.06 $.01
February 1, 1994 to April 30, 1994 .26 (.46) (1.93) .22 .05 -- --
May 1, 1994 to July 31, 1994 .26 (.28) .54 .21 .05 -- --
August 1, 1994 to October 31, 1994 .26 (.46) (.65) .21 .05 -- --
November 1, 1994 to January 31, 1995 .26 (.80) 1.21 .19 .07 -- --
February 1, 1995 to April 30, 1995 .25 (.14) .43 .19 .06 -- --
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
July 30, 1993++ to October 31, 1993 $15.04 $14.16 $15.375 $14.75 177
November 1, 1993 to January 31, 1994 14.80 14.06 15.50 14.375 175
February 1, 1994 to April 30, 1994 14.74 11.71 15.375 12.625 256
May 1, 1994 to July 31, 1994 13.10 12.03 13.25 11.875 274
August 1, 1994 to October 31, 1994 12.69 11.54 12.375 10.50 457
November 1, 1994 to January 31, 1995 11.89 10.57 11.00 9.75 845
February 1, 1995 to April 30, 1995 12.54 11.93 12.25 11.00 322
<PAGE>
<FN>
++Commencement of Operations.
*Calculations are based upon Common Shares outstanding at the end of the quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
