UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
Investment Company Act file number 811-7156
Name of Fund: MuniYield Florida Insured Fund
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President,
MuniYield Florida Insured Fund, 800 Scudders Mill Road, Plainsboro,
NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-
9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 04/30/03
Date of reporting period: 11/01/02 - 04/30/03
Item 1 - Attach shareholder report
(BULL LOGO)
Merrill Lynch Investment Managers
Semi-Annual Report
April 30, 2003
MuniYield Florida
Insured Fund
www.mlim.ml.com
MuniYield Florida Insured Fund seeks to provide shareholders with as
high a level of current income exempt from Federal income taxes as
is consistent with its investment policies and prudent investment
management by investing primarily in a portfolio of long-term
municipal obligations the interest on which, in the opinion of bond
counsel to the issuer, is exempt from Federal income taxes and which
enables shares of the Fund to be exempt from Florida intangible
personal property taxes.
This report, including the financial information herein, is
transmitted to shareholders of MuniYield Florida Insured Fund for
their information. It is not a prospectus. Past performance results
shown in this report should not be considered a representation of
future performance. The Fund has leveraged its Common Shares and
intends to remain leveraged by issuing Preferred Shares to provide
the Common Shareholders with a potentially higher rate of return.
Leverage creates risks for Common Shareholders, 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. Statements and other information herein are as
dated and are subject to change.
MuniYield Florida Insured Fund
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MUNIYIELD FLORIDA INSURED FUND
The Benefits
And Risks of
Leveraging
MuniYield Florida 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 Shares
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 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 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 Shares.
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 pickup 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.
As a part of its investment strategy, the Fund may invest in certain
securities whose potential income return is inversely related to
changes in a floating interest rate ("inverse floaters"). In
general, income on inverse floaters will decrease when short-term
interest rates increase and increase when short-term interest rates
decrease. Investments in inverse floaters may be characterized as
derivative securities and may subject the Fund to the risks of
reduced or eliminated interest payments and losses of invested
principal. In addition, inverse floaters have the effect of
providing investment leverage and, as a result, the market value of
such securities will generally be more volatile than that of fixed-
rate, tax-exempt securities. To the extent the Fund invests in
inverse floaters, the market value of the Fund's portfolio and the
net asset value of the Fund's shares may also be more volatile than
if the Fund did not invest in such securities.
Swap
Agreements
The Fund may also invest in swap agreements, which are over-the-
counter contracts in which one party agrees to make periodic
payments based on the change in market value of a specified bond,
basket of bonds, or index in return for periodic payments based on a
fixed or variable interest rate or the change in market value of a
different bond, basket of bonds or index. Swap agreements may be
used to obtain exposure to a bond or market without owning or taking
physical custody of securities.
MuniYield Florida Insured Fund, April 30, 2003
DEAR SHAREHOLDER
For the six months ended April 30, 2003, the Common Shares of
MuniYield Florida Insured Fund had a net annualized yield of 5.98%,
based on a period-end per share net asset value of $15.48 and
$.459 per share income dividends. Over the same period, the total
investment return on the Fund's Common Shares was +6.16%, based on a
change in per share net asset value from $15.04 to $15.48, and
assuming reinvestment of $.459 per share ordinary income dividends.
For the six-month period ended April 30, 2003, the Fund's Auction
Market Preferred Shares had an average yield of 1.10%.
For a description of the Fund's total investment return based on a
change in the per share market value (as measured by the trading
price of the Fund's shares on the New York Stock Exchange), and
assuming reinvestment of dividends, please refer to the Financial
Highlights section of the Financial Statements included in this
report. As a closed-end fund, the Fund's shares may trade in the
secondary market at a premium or discount to the Fund's net asset
value. As a result, total investment returns based on changes in the
Fund's market value can vary significantly from total investment
return based on changes in the Fund's net asset value.
The Municipal Market Environment
During the six-month period ended April 30, 2003, amid considerable
weekly and monthly volatility, long-term fixed income interest rates
generally declined. Geopolitical tensions and volatile equity
valuations continued to overshadow economic fundamentals as they
have for most of the last 12 months. Reacting to the strong U.S.
equity rally that began last October, fixed income bond yields
remained under pressure in November 2002, as U.S. equity markets
continued to strengthen. During November, the Standard & Poor's 500
(S&P 500) Index rose an additional 5.50%. Equity prices were
supported by further signs of U.S. economic recovery, especially
improving labor market activity. In late November, third-quarter
2002 U.S. gross domestic product growth was 4%, well above the
second-quarter 2002 rate of 1.30%. Financial conditions were also
strengthened by a larger-than-expected reduction in short-term
interest rates by the Federal Reserve Board in early November. The
Federal Funds target rate was lowered 50 basis points (0.50%) to
1.25%, its lowest level since the 1960s. This action by the Federal
Reserve Board was largely viewed as being taken to bolster the
sputtering U.S. economic recovery. Rebounding U.S. equity markets
and the prospects for a more substantial U.S. economic recovery
pushed long-term U.S. Treasury yield levels to 5.10% by late
November.
However, into early 2003, softer equity prices and renewed investor
concerns about U.S. military action against Iraq and North Korea
again pushed bond prices higher. Reacting to disappointing holiday
sales and corporate managements' attempts to scale back analysts'
expectation of future earnings, the S&P 500 Index declined more than
10% from December 2002 to February 2003. Fearing an eventual U.S./
Iraq military confrontation in 2003, investors again sought the
safety of U.S. Treasury obligations and the prices of fixed income
issues rose. By the end of February 2003, U.S. Treasury bond yields
had declined approximately 40 basis points to 4.67%.
Bond yields continued to fall into early March. Once direct U.S.
military action against Iraq began, bond yields quickly rose. Prior
uncertainty surrounding the Iraqi situation was obviously removed
and early U.S. military successes fostered the hope that the
conflict would be quickly and positively concluded. Concurrently,
the S&P 400 Index rose over 6% as investors, in part, sold fixed
income issues to purchase equities in anticipation of a strong
U.S. economic recovery once the Iraqi conflict was resolved. By
mid-March, U.S. Treasury bond yields again rose to above 5%.
However, as there was growing sentiment that hostilities may not be
resolved in a matter of weeks, U.S. Treasury bond yields again
declined to end the month at 4.81%.
For the six months ended April 30, 2003, long-term U.S. Treasury
bond yields ratcheted back to near 5% by mid-April, as U.S. equity
markets continued to improve and the safe-haven premium U.S.
Treasury issues had commanded prior to the beginning of the Iraqi
conflict continued to be withdrawn. However, with the quick positive
resolution of the Iraqi war, investors quickly resumed their focus
on the fragile U.S. economic recovery. Business activity in the
United States has remained sluggish, especially job creation.
Investors have also been concerned that the recent SARS outbreak
would have a material, negative impact on world economic conditions,
especially in China and Japan. First quarter 2003 U.S. gross
domestic product was released in late April initially estimating
U.S. economic activity to be growing at 1.60%, well below many
analysts' assessments. These factors, as well as the possibility
that the Federal Reserve Board could again lower short-term interest
rates to encourage more robust U.S. economic growth, pushed bond
prices higher during the last two weeks of the period. By April 30,
2003, long-term U.S. Treasury bond yields had declined to almost
4.75%. Over the past six months, long-term U.S. bond yields fell
more than 20 basis points.
For the six months ended April 30, 2003, long-term tax-exempt bond
yields also fell modestly. Yield volatility was reduced relative to
that seen in U.S. Treasury issues, as municipal bond prices were
much less sensitive to worldwide geopolitical pressures on a daily
and weekly basis. Tax-exempt bond yields generally followed their
taxable counterparts higher, responding to a more positive U.S.
fixed income environment and continued slow economic growth. After
rising approximately 10 basis points in November 2002 to 5.30%,
municipal bond yields generally declined through February 2003. At
February 28, 2003, long-term tax-exempt revenue bond yields, as
measured by the Bond Buyer Revenue Bond Index, fell to approximately
5.05%. However, similar to U.S. Treasury bond yields, once military
action began in Iraq, municipal bond yields rose sharply to nearly
5.20% before declining to approximately 5.10% by the end of April.
Over the past six months, long-term tax-exempt bond yields fell
approximately 11 basis points, slightly less than U.S. Treasury
obligations.
A number of factors have combined to generate consistently strong
demand for municipal bonds throughout the six-month period ended
April 30, 2003. Generally weak U.S. equity markets have supported
continued positive demand for tax-exempt products as investors have
sought the relative security of fixed income issues. Also, with tax-
exempt money market rates near 1%, the demand for longer maturity
municipal issues has increased as investors have opted to buy longer
maturity issues rather than remain in cash reserves. Additionally,
investors received approximately $30 billion in January 2003 from
bond maturities, coupon income and proceeds from early redemptions.
However, these positive demand factors were not totally able to
offset the increase in tax-exempt new-issue supply, preventing more
significant declines in tax-exempt bond yields. This modest
underperformance has served to make municipal bonds a particularly
attractive purchase relative to their taxable counterparts.
Throughout most of the yield curve, municipal bonds have been able
to be purchased at yields near or exceeding those of comparable
Treasury issues. Compared to their recent historical averages of
82% - 88% of U.S. Treasury yields, municipal bond yield ratios in
their current 95% - 105% range are likely to prove attractive to
long-term investors.
Declining U.S. equity markets and escalating geopolitical pressures
have resulted in reduced economic activity and consumer confidence.
It is important to note that, despite all the recent negative
factors impeding the growth of U.S. businesses, the U.S. economy
still grew at an approximate 2.50% rate for all of 2002, twice that
of 2001. Similar expansion is expected for early 2003. Lower oil
prices, reduced geopolitical uncertainties, increased Federal
spending for defense, and a likely Federal tax cut are all factors
which should promote stronger economic growth later this year.
However, it is questionable to expect that business and in-vestor
confidence can be so quickly restored as to trigger dramatic,
explosive U.S. economic growth and engender associated, large-scale
interest rate increases. The resumption of solid economic growth is
likely to be a gradual process accompanied by equally graduated
increases in bond yields. Moderate economic growth, especially
within a context of negligible inflationary pressures, should not
greatly endanger the positive fixed income environments tax-exempt
products currently enjoy.
Specific to Florida, the state's general fund budget proposal for
fiscal year 2003 - 2004 came in at $53.9 billion, a 7.0% increase
from the prior year. This budget will attempt to close a $2 billion
fiscal year 2004 operating shortfall. It includes currently passed
referendums for smaller classroom sizes, enrolling four-year olds
as pre-kindergartners and a high-speed rail line. Florida is
projected to end fiscal year 2002 - 2003 with an operating surplus
of $140 million and a rainy day fund at $960 million, a sharp
contrast to most other states. With the implementation of the
constitutional amendments, spending will increase faster than
revenues and will force the state to borrow. In fiscal year 2004,
$3 billion is earmarked for schools. However, this is just
scratching the surface of an estimated $4 billion - $27 billion
price tag for education during the next eight years. With this
increase in spending in the current fiscal year, other programs
will be reduced and/or eliminated. Some proposed cuts include
$200 million from transportation, $111 million from universities,
and $51 million from juvenile crime prevention. Additional
expenditure savings will be derived by outsourcing state agency
functions such as payroll and benefits administration totaling
another $200 million. These reductions, along with an increase
in the corporate tax structure, the inclusion of video lottery
terminals being placed in dog and horse racetracks and improving
sales tax collections are estimated to generate more than
$1 billion. Proposed expenditure reductions, revenue increases,
along with a sizable rainy day fund, will enable the state to
operate without increasing other taxes. However, the state balanced
its budget by burdening local governments and universities by asking
the voters to increase local sales taxes and/or increase tuition to
meet local operations. Even though the state is being pressured by a
weak national economy, we believe it is in a position in the
upcoming year to perform well given their prospective management and
financial flexibility.
MuniYield Florida Insured Fund, April 30, 2003
Portfolio Strategy
During the six-month period ended April 30, 2003, we maintained our
neutral position on the municipal bond market. We continued to focus
on reducing the volatility of the Fund by selling some of the Fund's
10-year - 15-year bonds and purchasing larger-couponed bonds
maturing in 20 years - 30 years. We believe these longer maturities
are likely to enhance the Fund's income stream and help preserve
asset valuations in future periods of market volatility. During the
six-month period, Florida's new-issue supply was up approximately
50% compared to the same time a year ago. Despite the heavy supply,
retail and institutional demand remained quite strong. However, this
strong demand hindered us from fully implementing our desired
strategy. The vast majority of new bond issuance has been structured
as par bonds, which are more price sensitive and produce less income
than premium coupon structured issues. Going forward, the municipal
bond curve is expected to remain quite steep. We will maintain our
neutral position and remain fully invested in an effort to enhance
shareholder income.
During the six-month period ended April 30, 2003, the Fund's
borrowing costs remained in the 1% - 1.5% range, with interest
rates presently near 1%. These very attractive funding levels, in
combination with the steep tax-exempt yield curve, have continued
to generate significant income benefits to the Fund's Common
Shareholder. We do not expect any material reduction in our
borrowing costs in 2003 as no additional monetary easings by the
Federal Reserve Board are anticipated. We expect our short-term
borrowing costs to remain at current attractive levels for the
coming months. However, should the spread between short-term and
long-term interest rates narrow, the benefits of leverage will
decline and the yield to the Fund's Common Shareholders will be
reduced. (For a more complete explanation of the benefits and risks
of leveraging, see page 1 of this report to shareholders.)
In Conclusion
We appreciate your continuing interest in MuniYield Florida Insured
Fund, and we look forward to serving your investment needs in the
months and years to come.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Trustee
(Kenneth A. Jacob)
Kenneth A. Jacob
Senior Vice President
(John M. Loffredo)
John M. Loffredo
Senior Vice President
(Robert D. Sneeden)
Robert D. Sneeden
Vice President and Portfolio Manager
May 19, 2003
PROXY RESULTS
During the six-month period ended April 30, 2003, MuniYield Florida
Insured Fund's Common Shareholders voted on the following proposal.
The proposal was approved at a shareholders' meeting on April 28,
2003. A description of the proposal and number of shares voted are
as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Trustees: Terry K. Glenn 7,951,789 104,627
Donald W. Burton 7,951,789 104,627
Fred G. Weiss 7,951,789 104,627
During the six-month period ended April 30, 2003, MuniYield Florida
Insured Fund's Preferred Shareholders voted on the following
proposal. The proposal was approved at a shareholders' meeting on
April 28, 2003. A description of the proposal and number of shares
voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Trustees: Terry K. Glenn, Donald W. Burton,
M. Colyer Crum, Laurie Simon Hodrick and Fred G. Weiss 2,156 4
QUALITY PROFILE
The quality ratings of securities in the Fund as of April 30, 2003
were as follows:
Percent of
S&P Rating/Moody's Rating Total Investments
AAA/Aaa 90.3%
AA/Aa 2.1
A/A 6.0
BBB/Baa 0.6
NR (Not Rated) 1.0
MuniYield Florida Insured Fund, April 30, 2003
SCHEDULE OF INVESTMENTS (in Thousands)
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
Florida--125.0% AA NR* $ 2,785 Beacon Tradeport Community Development District, Florida, Special
Assessment Revenue Refunding Bonds (Commercial Project), Series A,
5.625% due 5/01/2032 (g) $ 2,965
AAA Aaa 700 Boynton Beach, Florida, Utility System Revenue Refunding Bonds,
6.25% due 11/01/2020 (c)(h) 866
AAA Aaa 3,000 Brevard County, Florida, IDR (NUI Corporation Project), AMT, 6.40%
due 10/01/2024 (a) 3,235
AAA Aaa 4,290 Broward County, Florida, School Board, COP, 5% due 7/01/2028 (b) 4,423
Dade County, Florida, Aviation Revenue Bonds, AMT, Series B (b):
AAA Aaa 5,000 5.75% due 10/01/2012 5,458
AAA Aaa 2,650 6.55% due 10/01/2013 2,712
AAA Aaa 12,715 6.60% due 10/01/2022 13,119
NR* Aaa 1,000 Daytona Beach, Florida, Utility System Revenue Refunding Bonds,
Series B, 5% due 11/15/2027 (c) 1,034
NR* Aaa 685 Duval County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds,
AMT, 6.20% due 4/01/2020 (b)(d)(i) 739
AAA Aaa 4,005 Escambia County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds,
AMT, 7% due 4/01/2028 (d)(i) 4,211
NR* Aaa 7,000 Escambia County, Florida, Health Facilities Authority, Health
Facility Revenue Bonds (Florida Health Care Facility Loan), 5.95%
due 7/01/2020 (a) 7,661
AAA Aaa 1,000 Escambia County, Florida, Health Facilities Authority, Revenue
Refunding Bonds (Ascension Health Credit), Series A-1, 5.75% due
11/15/2009 (a)(f) 1,184
First Florida Governmental Fianancing Commission Revenue Bonds (b):
AAA Aaa 890 5.70% due 7/01/2007(f) 1,025
AAA Aaa 2,110 5.70% due 7/01/2017 2,379
AAA Aaa 1,150 Florida HFA, Housing Revenue Bonds (Brittany Rosemont Apartments),
AMT, Series C-1, 6.75% due 8/01/2014 (a) 1,215
AAA Aaa 1,410 Florida Housing Finance Corporation, Homeowner Mortgage Revenue
Refunding Bonds, AMT, Series 4, 6.25% due 7/01/2022 (e) 1,524
AA+ Aaa 1,650 Florida State Board of Education, Capital Outlay, GO (Public Education),
Series B, 5.875% due 6/01/2005 (f) 1,817
AAA Aaa 6,190 Florida State Board of Education, Lottery Revenue Bonds, Series A,
6% due 7/01/2015 (c) 7,281
AAA Aaa 1,140 Florida State Board of Education, Public Education, GO, Refunding,
Series D, 5.75% due 6/01/2022 (e) 1,282
A- A3 3,700 Highlands County, Florida, Health Facilities Authority Revenue Bonds
(Adventist Health System/Sunbelt Obligated Group), Series A, 6% due
11/15/2031 3,931
NR* Aaa 6,000 Hillsborough County, Florida, School Board, COP, 5.375% due
7/01/2026 (b) 6,409
AAA Aaa 2,615 Hillsborough County, Florida, School District, Sales Tax Revenue
Refunding Bonds, 5.375% due 10/01/2020 (a) 2,835
AAA Aaa 750 Jacksonville, Florida, Economic Development Community Health Care
Facilities Revenue Bonds (Mayo Clinic), Series B, 5.50% due
11/15/2036 (b) 804
AAA Aaa 1,455 Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding and
Improvement Bonds, 5.25% due 10/01/2032 (c) 1,532
Jacksonville, Florida, Port Authority, Seaport Revenue Bonds, AMT:
NR* Aaa 1,025 5.625% due 11/01/2010 (f) 1,190
NR* Aaa 1,225 5.625% due 11/01/2026 (b) 1,286
AAA Aaa 1,000 Lee County, Florida, Airport Revenue Bonds, AMT, Series A, 6% due
10/01/2029 (e) 1,113
AAA NR* 850 Lee County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County
Program), AMT, Series A, Sub-Series 3, 7.45% due 9/01/2027 (d)(i)(k) 942
AAA Aaa 2,000 Miami Beach, Florida, Water and Sewer Revenue Bonds, 5.75% due
9/01/2025 (a) 2,238
AAA Aaa 5,000 Miami-Dade County, Florida, Aviation Revenue Bonds (Miami
International Airport), AMT, Series A, 6% due 10/01/2024 (c) 5,656
AAA Aaa 2,000 Miami-Dade County, Florida, Educational Facilities Authority Revenue
Bonds (University of Miami), Series A, 5.75% due 4/01/2029 (a) 2,242
AAA NR* 3,480 Miami-Dade County, Florida, Health Facilities Authority, Hospital
Revenue Refunding Bonds, DRIVERS, Series 208, 9.56% due 8/15/2017 (a)(j) 4,355
AAA Aaa 1,115 Miami-Dade County, Florida, IDA, IDR (BAC Funding Corporation Project),
Series A, 5.375% due 10/01/2030 (a) 1,193
AAA Aaa 2,000 Miami-Dade County, Florida, School Board COP, Series A, 5.50% due
10/01/2020 (e) 2,199
AAA Aaa 2,515 North Miami Beach, Florida, GO, 6.30% due 2/01/2004 (c)(f) 2,663
NR* Aaa 4,765 Orange County, Florida, Educational Facilities Authority, Educational
Facilities Revenue Refunding Bonds (Rollins College Project), 5.50%
due 12/01/2032 (a) 5,171
Orange County, Florida, Health Facilities Authority, Hospital
Revenue Bonds:
A- A3 600 (Adventist Health System), 6.25% due 11/15/2024 646
A- A2 1,835 (Orlando Regional Healthcare), 6% due 12/01/2029 1,946
AAA Aaa 2,000 Orange County, Florida, Sales Tax Revenue Refunding Bonds, Series B,
5% due 1/01/2025 (c) 2,068
NR* Aaa 6,500 Orange County, Florida, School Board, COP, Series A, 5.25% due
8/01/2023 (b) 6,893
AAA Aaa 5,330 Orange County, Florida, Tourist Development, Tax Revenue Bonds, 5.50%
due 10/01/2032 (a) 5,726
AAA Aaa 165 Orange County, Florida, Tourist Development, Tax Revenue Refunding
Bonds, Series A, 6.50% due 10/01/2010 (a)(h) 169
NR* Aaa 1,530 Osceola County, Florida, Infrastructure Sales Surplus Tax Revenue
Bonds, 5.25% due 10/01/2025 (a) 1,615
AAA Aaa 1,100 Osceola County, Tourist Development Tax Revenue Bonds, Series A,
5.50% due 10/01/2027 (c) 1,187
AAA Aaa 1,500 Palm Beach County, Florida, Criminal Justice Facilities Revenue
Bonds, 7.20% due 6/01/2015 (c) 1,987
Palm Beach County, Florida, School Board, COP:
AAA Aaa 5,000 Series A, 6% due 8/01/2010 (c)(f) 5,980
AAA Aaa 1,500 Series A, 5.50% due 8/01/2022 (a) 1,638
AAA Aaa 2,475 Series C, 5% due 8/01/2027 (e) 2,548
NR* Aaa 1,000 Pasco County, Florida, Sales Tax Revenue Bonds (Half-Cent), 5%
due 12/01/2033 (a) 1,032
NR* Aaa 1,460 Polk County, Florida, Utility System Revenue Bonds, 5% due
10/01/2029 (c) 1,508
AAA Aaa 5,600 Sarasota County, Florida, Public Hospital Board, Revenue Refunding
Bonds (Sarasota Memorial Hospital), Series B, 5.50% due 7/01/2028 (b) 6,279
AAA Aaa 4,920 Sarasota County, Florida, Utility System Revenue Bonds, 6.50% due
10/01/2004 (c)(f) 5,385
Portfolio
Abbreviations
To simplify the listings of MuniYield Florida 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)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
RIB Residual Interest Bonds
S/F Single-Family
MuniYield Florida Insured Fund, April 30, 2003
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
Florida AAA NR* $ 2,000 South Broward, Florida, Hospital District Revenue Bonds, DRIVERS,
(concluded) Series 337, 9.70% due 5/01/2032 (b)(j) $ 2,354
AAA Aaa 2,275 South Florida Water Management District, Special Obligation Land
Acquisition Revenue Bonds, 6.0% due 4/01/2004 (a)(f) 2,399
A- A2 1,000 South Lake County, Florida, Hospital District Revenue Bonds (South
Lake Hospital Inc.), 5.80% due 10/01/2034 1,018
AA Aa2 1,000 Tampa, Florida, Water and Sewer Revenue Refunding Bonds, Series A,
5% due 10/01/2026 1,030
New Jersey-- Tobacco Settlement Financing Corporation of New Jersey Revenue Bonds:
2.8% A- A3 2,035 6.75% due 6/01/2039 1,800
A- A3 2,025 7% due 6/01/2041 1,863
Puerto Rico-- AAA NR* 7,500 Puerto Rico Commonwealth, GO, Refunding, DRIVERS, Series 232, 9.441%
13.3% due 7/01/2017 (j)(l) 9,915
AAA Aaa 1,970 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series II,
5.375% due 7/01/2019 (b) 2,188
BBB+ Baa3 1,145 Puerto Rico Public Finance Corporation Revenue Bonds, Commonwealth
Appropriation, Series E, 5.70% due 8/01/2025 1,208
NR* Aaa 3,550 Puerto Rico Public Finance Corporation, Revenue Refunding Bonds,
RIB, Series 522X, 9.16% due 8/01/2022 (b)(j) 4,131
Total Municipal Bonds (Cost--$171,310) 141.1% 184,402
Shares
Held Short-Term Securities
1,919 Merrill Lynch Institutional Tax-Exempt Fund** 1,919
Total Short-Term Securities (Cost--$1,919)--1.5% 1,919
Total Investments (Cost--$173,229)--142.6% 186,321
Other Assets Less Liabilities--3.3% 4,357
Preferred Shares, at Redemption Value--(45.9%) (60,000)
--------
Net Assets Applicable to Common Shares--100.0% $130,678
========
(a)AMBAC Insured.
(b)MBIA Insured.
(c)FGIC Insured.
(d)GNMA Collateralized.
(e)FSA Insured.
(f)Prerefunded.
(g)Radian Insured.
(h)Escrowed to maturity.
(i)FNMA Collateralized.
(j)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, 2003.
(k)FHLMC Collateralized.
(l)XL Capital Insured.
*Not Rated.
**Investments in companies considered to be an affiliate of the Fund
(such companies are defined as "Affiliated Companies" in Section 2
(a)(3) of the Investment Company Act of 1940) are as follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
Merrill Lynch Institutional
Tax-Exempt Fund (1,534) $17
See Notes to Financial Statements.
STATEMENT OF NET ASSETS
As of April 30, 2003
Assets: Investments, at value (identified cost--$173,228,935) $186,321,408
Cash 45,872
Receivables:
Interest $ 2,400,634
Securities sold 2,020,317
Dividends 62 4,421,013
------------
Prepaid expenses 19,322
------------
Total assets 190,807,615
------------
Liabilities: Payables:
Investment adviser 79,698
Dividends to Common Shareholders 41,386
Other affiliates 1,435 122,519
------------
Accrued expenses 7,590
------------
Total liabilities 130,109
------------
Preferred Shares: Preferred Shares, par value $.05 per share (2,400 Series A shares of
AMPS* issued and outstanding at $25,000 per share liquidation preference) 60,000,000
------------
Net Assets Net assets applicable to Common Shares $130,677,506
Applicable ============
To Common Shares:
Analysis of Common Shares, par value $.10 per share (8,440,456 shares issued
Net Assets and outstanding) $ 844,046
Applicable to Paid-in capital in excess of par 117,649,821
Common Shares: Undistributed investment income--net $ 1,725,006
Accumulated realized capital losses on investments--net (2,633,840)
Unrealized appreciation on investments--net 13,092,473
------------
Total accumulated earnings--net 12,183,639
------------
Total--Equivalent to $15.48 net asset value per Common Share
(market price--$14.90) $130,677,506
============
*Auction Market Preferred Shares.
See Notes to Financial Statements.
MuniYield Florida Insured Fund, April 30, 2003
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 2003
Investment Interest $ 5,056,077
Income: Dividends 16,645
------------
Total income 5,072,722
------------
Expenses: Investment advisory fees $ 465,649
Commission fees 73,611
Accounting services 39,493
Professional fees 27,242
Transfer agent fees 18,372
Printing and shareholder reports 15,868
Trustees' fees and expenses 11,280
Listing fees 10,008
Custodian fees 5,613
Pricing fees 4,612
Other 12,849
------------
Total expenses before reimbursement 684,597
Reimbursement of expenses (2,972)
------------
Total expenses after reimbursement 681,625
------------
Investment income--net 4,391,097
------------
Realized & Realized gain on investments--net 1,384,080
Unrealized Change in unrealized appreciation on investments--net 2,155,924
Gain on ------------
Investments--Net: Total realized and unrealized gain on investments--net 3,540,004
------------
Dividends to Investment income--net (326,688)
Preferred ------------
Shareholders-- Net Increase in Net Assets Resulting from Operations $ 7,604,413
Net: ============
See Notes to Financial Statements.
STATEMENTS OF CHANGES IN NET ASSETS
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2003 2002
Operations: Investment income--net $ 4,391,097 $ 8,741,052
Realized gain on investments--net 1,384,080 437,124
Change in unrealized appreciation on investments--net 2,155,924 162,111
Total dividends and distributions to Preferred Shareholders (326,688) (842,256)
------------ ------------
Net increase in net assets resulting from operations 7,604,413 8,498,031
------------ ------------
Dividends & Investment income--net (3,874,169) (7,608,374)
Distributions to Realized gain on investments--net -- (22,503)
Common ------------ ------------
Shareholders: Net decrease in net assets resulting from dividends and
distributions to Common Shareholders (3,874,169) (7,630,877)
------------ ------------
Common Share Value of shares issued to Common Shareholders in reinvestment
Transactions: of dividends and distributions -- 45,169
------------ ------------
Net Assets Total increase in net assets applicable to Common Shares 3,730,244 912,323
Applicable to Beginning of period 126,947,262 126,034,939
Common Shares: ------------ ------------
End of period* $130,677,506 $126,947,262
============ ============
*Undistributed investment income--net $ 1,725,006 $ 1,534,766
============ ============
See Notes to Financial Statements.
MuniYield Florida Insured Fund, April 30, 2003
FINANCIAL HIGHLIGHTS
The following per share data and ratios
have been derived from information For the Six
provided in the financial statements. Months Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 2003 2002 2001 2000 1999
Per Share Net asset value, beginning of period $ 15.04 $ 14.94 $ 13.89 $ 13.30 $ 15.79
Operating -------- -------- -------- -------- --------
Performance:++++ Investment income--net .52+++++ 1.04 1.00 1.02 1.01
Realized and unrealized gain (loss)
on investments--net .42 .06 1.06 .61 (1.96)
Dividends and distributions to Preferred
Shareholders:
Investment income--net (.04) (.10) (.23) (.29) (.15)
Realized gain on investments--net -- --++ -- -- --++
In excess of realized gain on
investments--net -- -- -- -- (.11)
-------- -------- -------- -------- --------
Total from investment operations .90 1.00 1.83 1.34 (1.21)
-------- -------- -------- -------- --------
Less dividends and distributions to
Common Shareholders:
Investment income--net (.46) (.90) (.78) (.75) (.86)
Realized gain on investments--net -- --++ -- -- (.01)
In excess of realized gain on
investments--net -- -- -- -- (.41)
-------- -------- -------- -------- --------
Total dividends and distributions to
Common Shareholders (.46) (.90) (.78) (.75) (1.28)
-------- -------- -------- -------- --------
Net asset value, end of period $ 15.48 $ 15.04 $ 14.94 $ 13.89 $ 13.30
======== ======== ======== ======== ========
Market price per share, end of period $ 14.90 $ 14.30 $ 14.21 $ 12.125 $ 12.125
======== ======== ======== ======== ========
Total Investment Based on market price per share 7.47%+++ 7.19% 24.17% 6.45% (15.43%)
Return:** ======== ======== ======== ======== ========
Based on net asset value per share 6.16%+++ 7.22% 13.96% 11.17% (8.20%)
======== ======== ======== ======== ========
Ratios Based on Total expenses, net of reimbursement*** 1.08%* 1.11% 1.15% 1.14% 1.12%
Average Net ======== ======== ======== ======== ========
Assets of Total expenses*** 1.08%* 1.11% 1.15% 1.14% 1.12%
Common Shares: ======== ======== ======== ======== ========
Total investment income--net*** 6.94%* 7.02% 6.90% 7.55% 6.88%
======== ======== ======== ======== ========
Amount of dividends to Preferred
Shareholders .52%* .67% 1.58% 2.13% 1.04%
======== ======== ======== ======== ========
Investment income--net, to Common
Shareholders 6.42%* 6.35% 5.32% 5.42% 5.84%
======== ======== ======== ======== ========
Ratios Based on Total expenses, net of reimbursement .73%* .75% .77% .75% .75%
Average Net ======== ======== ======== ======== ========
Assets of Total expenses .74%* .75% .77% .75% .75%
Common & ======== ======== ======== ======== ========
Preferred Total investment income--net 4.72%* 4.74% 4.63% 4.94% 4.64%
Shares:*** ======== ======== ======== ======== ========
Ratios Based on Dividends to Preferred Shareholders 1.10%* 1.39% 3.21% 4.03% 2.16%
Average Net ======== ======== ======== ======== ========
Assets of
Preferred Shares:
Supplemental Net assets applicable to Common Shares,
Data: end of period (in thousands) $130,678 $126,947 $126,035 $117,201 $112,219
======== ======== ======== ======== ========
Preferred Shares outstanding, end of
period (in thousands) $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000
======== ======== ======== ======== ========
Portfolio turnover 16.08% 40.55% 78.48% 40.41% 85.16%
======== ======== ======== ======== ========
Leverage: Asset coverage per $1,000 $ 3,178 $ 3,116 $ 3,101 $ 2,953 $ 2,870
======== ======== ======== ======== ========
Dividends Per Investment income--net $ 136 $ 348 $ 803 $ 1,010 $ 538
Share On ======== ======== ======== ======== ========
Preferred Shares
Outstanding:
*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 charges.
***Do not reflect the effect of dividends to Preferred Shareholders.
++Amount is less than $(.01) per share.
++++Certain prior period amounts have been reclassified to conform
to current period presentation.
+++Aggregate total investment return.
+++++Based on average shares outstanding.
See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield Florida Insured Fund (the "Fund") is registered under the
Investment Company Act of 1940 as a non-diversified, closed-end
management investment company. The Fund's financial statements are
prepared in conformity with accounting principles generally accepted
in the United States of America, which may require the use of
management accruals and estimates. 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 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 MFT. 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 written or purchased are valued at the last
sale price in the case of exchange-traded options. In the case of
options traded in the over-the-counter market, valuation is the last
asked price (options written) or the last bid price (options
purchased). 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 their fair value as determined in good faith
by or under the direction of the Board of Trustees 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 general supervision of the Board of
Trustees.
(b) Derivative financial instruments--The Fund may engage in various
portfolio investment strategies both to increase the return of the
Fund and to hedge, or protect, its exposure to interest rate
movement and movements in the securities 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.
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.
MuniYield Florida Insured Fund, April 30, 2003
NOTES TO FINANCIAL STATEMENTS (concluded)
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.
* Forward interest rate swaps--The Fund is authorized to enter into
forward interest rate swaps. In a forward interest rate swap, the
Fund and the counterparty agree to pay or receive interest on a
specified notional contract amount, commencing on a specified future
effective date, unless terminated earlier. The value of the
agreement is determined by quoted fair values received daily by the
Fund from the counterparty. When the agreement is closed, the Fund
records a realized gain or loss in an amount equal to the value of
the agreement.
(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). Realized gains and losses on security
transactions are determined on the identified cost basis. Dividend
income is recorded on the ex-dividend dates. Interest income is
recognized on the accrual basis. The Fund amortizes all premiums and
discounts on debt securities.
(e) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital gains
are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect, wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee at an annual rate of .50% of
the Fund's average weekly net assets, including proceeds from the
issuance of Preferred Shares. For the six months ended April 30,
2003, FAM reimbursed the Fund in the amount of $2,972.
For the six months ended April 30, 2003, the Fund reimbursed FAM
$2,059 for certain accounting services.
Certain officers and/or trustees 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, 2003 were $30,961,143 and
$29,494,033, respectively.
Net realized gains for the six months ended April 30, 2003 and net
unrealized gains on April 30, 2003 were as follows:
Realized Unrealized
Gains Gains
Long-term investments $ 1,384,080 $ 13,092,473
------------ ------------
Total $ 1,384,080 $ 13,092,473
============ ============
As of April 30, 2003, net unrealized appreciation for Federal income
tax purposes aggregated $13,136,438, of which $13,350,560 related to
appreciated securities and $214,122 related to depreciated
securities. The aggregate cost of investments at April 30, 2003 for
Federal income tax purposes was $173,184,970.
4. 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 beneficial interest without approval of the holders of
Common Shares.
Common Shares
Shares issued and outstanding during the six months ended April 30,
2003 remained constant and for the year ended October 31, 2002
increased by 3,098 as a result of dividend reinvestment.
Preferred Shares
Auction Market Preferred Shares ("AMPS") are redeemable Preferred
Shares of the Fund, with a par value of $.05 per share and a
liquidation preference of $25,000 per share plus accrued and unpaid
dividends, 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, 2003 was 1.15%.
Shares issued and outstanding during the six months ended April 30,
2003 and for the year ended October 31, 2002 remained constant.
The Fund pays commissions to certain broker-dealers at the end
of each auction at an annual rate ranging from .25% to .375%,
calculated on the proceeds of each auction. For the six months ended
April 30, 2003, Merrill Lynch, Pierce, Fenner & Smith Incorporated,
an affiliate of FAM, earned $32,894 as commissions.
5. Capital Loss Carryforward:
On October 31, 2002, the Fund had a net capital loss carryforward of
$2,697,518, all of which expires in 2008. This amount will be
available to offset like amounts of any future taxable gains.
6. Subsequent Event:
The Fund paid a tax-exempt income dividend to holders of Common
Shares in the amount of $.076500 per share on May 29, 2003 to
shareholders of record on May 16, 2003.
MANAGED DIVIDEND POLICY
The Fund's dividend policy is to distribute all or a portion of its
net investment income to its shareholders on a monthly basis. In
order to provide shareholders with a more consistent yield to the
current trading price of Common Shares 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 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 Net
Assets, which comprises part of the Financial Information included
in this report.
OFFICERS AND TRUSTEES
Terry K. Glenn, President and Trustee
Donald W. Burton, Trustee
M. Colyer Crum, Trustee
Laurie Simon Hodrick, Trustee
Fred G. Weiss, Trustee
Kenneth A. Jacob, Senior Vice President
John M. Loffredo, Senior Vice President
Robert D. Sneeden, Vice President
Donald C. Burke, Vice President and Treasurer
Brian D. Stewart, Secretary
J. Thomas Touchton, Trustee of MuniYield Florida Insured Fund, has
recently retired. The Fund's Board of Trustees wishes Mr. Touchton
well in his retirement.
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agents
Common Shares:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Shares:
The Bank of New York
100 Church Street
New York, NY 10286
NYSE Symbol
MFT
Item 2 - Did registrant adopt a code of ethics, as of the end of the
period covered by this report, that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by
the registrant or a third party? If not, why not? Briefly describe
any amendments or waivers that occurred during the period. State
here if code of ethics/amendments/waivers are on website and give
website address-. State here if fund will send code of ethics to
shareholders without charge upon request--N/A (not answered until
July 15, 2003 and only annually for funds)
Item 3 - Did the registrant's board of directors determine that the
registrant either: (i) has at least one audit committee financial
expert serving on its audit committee; or (ii) does not have an
audit committee financial expert serving on its audit committee? If
yes, disclose name of financial expert and whether he/she is
"independent," (fund may, but is not required, to disclose
name/independence of more than one financial expert) If no, explain
why not. -N/A (not answered until July 15, 2003 and only annually
for funds)
Item 4 - Disclose annually only (not answered until December 15,
2003)
(a) Audit Fees - Disclose aggregate fees billed for each of the last
two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant
in connection with statutory and regulatory filings or engagements
for those fiscal years. N/A.
(b) Audit-Related Fees - Disclose aggregate fees billed in each of
the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance
of the audit of the registrant's financial statements and are not
reported under paragraph (a) of this Item. Registrants shall
describe the nature of the services comprising the fees disclosed
under this category. N/A.
(c) Tax Fees - Disclose aggregate fees billed in each of the last
two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the
fees disclosed under this category. N/A.
(d) All Other Fees - Disclose aggregate fees billed in each of the
last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs
(a) through (c) of this Item. Registrants shall describe the nature
of the services comprising the fees disclosed under this category.
N/A.
(e)(1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation
S-X. N/A.
(e)(2) Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by the
audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X. N/A.
(f) If greater than 50%, disclose the percentage of hours expended
on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were
attributed to work performed by persons other than the principal
accountant's full-time, permanent employees. N/A.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to
the registrant's investment adviser (not including any sub-adviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the adviser
that provides ongoing services to the registrant for each of the
last two fiscal years of the registrant. N/A.
(h) Disclose whether the registrant's audit committee has considered
whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence. N/A.
Item 5 - If the registrant is a listed issuer as defined in Rule 10A-
3 under the Exchange Act, state whether or not the registrant has a
separately-designated standing audit committee established in
accordance with Section 3(a)(58)(A) of the Exchange Act. If the
registrant has such a committee, however designated, identify each
committee member. If the entire board of directors is acting as the
registrant's audit committee in Section 3(a)(58)(B) of the Exchange
Act, so state.
If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act regarding an exemption from the listing
standards for audit committees.
(Listed issuers must be in compliance with the new listing rules by
the earlier of their first annual shareholders meeting after January
2004, or October 31, 2004 (annual requirement))
Item 6 - Reserved
Item 7 - For closed-end funds that contain voting securities in
their portfolio, describe the policies and procedures that it uses
to determine how to vote proxies relating to those portfolio
securities. N/A (not answered until July 1, 2003)
Item 8--Reserved
Item 9(a) - The registrant's certifying officers have reasonably
designed such disclosure controls and procedures to ensure material
information relating to the registrant is made known to us by others
particularly during the period in which this report is being
prepared. The registrant's certifying officers have determined that
the registrant's disclosure controls and procedures are effective
based on our evaluation of these controls and procedures as of a
date within 90 days prior to the filing date of this report.
Item 9(b)--There were no significant changes in the registrant's
internal controls or in other factors that could significantly
affect these controls subsequent to the date of their evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Item 10 - Exhibits
10(a) - Attach code of ethics or amendments/waivers, unless code of
ethics or amendments/waivers is on website or offered to
shareholders upon request without charge. N/A.
10(b) - Attach certifications pursuant to Section 302 of the
Sarbanes-Oxley Act. Attached hereto.
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the registrant has duly
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
MuniYield Florida Insured Fund
By: _/s/ Terry K. Glenn_______
Terry K. Glenn,
President of
MuniYield Florida Insured Fund
Date: June 23, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed
below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.
By: _/s/ Terry K. Glenn________
Terry K. Glenn,
President of
MuniYield Florida Insured Fund
Date: June 23, 2003
By: _/s/ Donald C. Burke________
Donald C. Burke,
Chief Financial Officer of
MuniYield Florida Insured Fund
Date: June 23, 2003
Attached hereto as an exhibit are the certifications pursuant to
Section 906 of the Sarbanes-Oxley Act.