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 811-7138
Name of Fund: MuniYield New Jersey Insured Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President,
MuniYield New Jersey Insured Fund, Inc., 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
New Jersey
Insured Fund, Inc.
www.mlim.ml.com
MuniYield New Jersey Insured Fund, Inc. seeks to provide
shareholders with as high a level of current income exempt from
Federal income tax and New Jersey personal 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 tax and New
Jersey personal income taxes.
This report, including the financial information herein, is
transmitted to shareholders of MuniYield New Jersey Insured
Fund, Inc. 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 Stock and intends to remain leveraged by issuing Preferred
Stock to provide the Common Stock shareholders with a potentially
higher rate of return. Leverage creates risks for Common Stock
shareholders, including the likelihood of greater volatility of net
asset value and market price of shares of the Common Stock, and the
risk that fluctuations in the short-term dividend rates of the
Preferred Stock may affect the yield to Common Stock shareholders.
Statements and other information herein are as dated and are subject
to change.
MuniYield New Jersey Insured Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MUNIYIELD NEW JERSEY INSURED FUND, INC.
The Benefits
And Risks of
Leveraging
MuniYield New Jersey Insured Fund, Inc. utilizes leveraging to seek
to enhance the yield and net asset value of its Common Stock.
However, these objectives cannot be achieved in all interest rate
environments. To leverage, the Fund issues Preferred Stock, which
pays dividends at prevailing short-term interest rates, and invests
the proceeds in long-term municipal bonds. The interest earned on
these investments is paid to Common Stock shareholders in the form
of dividends, and the value of these portfolio holdings is reflected
in the per share net asset value of the Fund's Common Stock.
However, in order to benefit Common Stock shareholders, the yield
curve must be positively sloped; that is, short-term interest rates
must be lower than long-term interest rates. At the same time, a
period of generally declining interest rates will benefit Common
Stock shareholders. If either of these conditions change, then the
risks of leveraging will begin to outweigh the benefits.
To illustrate these concepts, assume a fund's Common Stock
capitalization of $100 million and the issuance of Preferred
Stock for an additional $50 million, creating a total value of
$150 million available for investment in long-term municipal bonds.
If prevailing short-term interest rates are approximately 3% and
long-term interest rates are approximately 6%, the yield curve has a
strongly positive slope. The fund pays dividends on the $50 million
of Preferred Stock based on the lower short-term interest rates. At
the same time, the fund's total portfolio of $150 million earns the
income based on long-term interest rates. Of course, increases in
short-term interest rates would reduce (and even eliminate) the
dividends on the Common Stock.
In this case, the dividends paid to Preferred Stock shareholders are
significantly lower than the income earned on the fund's long-term
investments, and therefore the Common Stock shareholders are the
beneficiaries of the incremental yield. However, if short-term
interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental yield pickup on the
Common Stock will be reduced or eliminated completely. At the same
time, the market value of the fund's Common Stock (that is, its
price as listed on the New York Stock Exchange) may, as a result,
decline. Furthermore, if long-term interest rates rise, the Common
Stock's net asset value will reflect the full decline in the price
of the portfolio's investments, since the value of the fund's
Preferred Stock does not fluctuate. In addition to the decline in
net asset value, the market value of the fund's Common Stock may
also decline.
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 these 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 New Jersey Insured Fund, Inc., April 30, 2003
DEAR SHAREHOLDER
For the six months ended April 30, 2003, the Common Stock of
MuniYield New Jersey Insured Fund, Inc. had a net annualized yield
of 6.07%, based on a period-end per share net asset value of $15.55
and $.468 per share income dividends. Over the same period, the
total investment return on the Fund's Common Stock was +5.95%, based
on a change in per share net asset value from $15.14 to $15.55, and
assuming reinvestment of $.468 per share ordinary income dividends.
For the six-month period ended April 30, 2003, the Fund's Auction
Market Preferred Stock had an average yield of .99%.
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 investor
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 New Jersey, the state faces a deteriorating fiscal
situation as continuing sluggish economic growth has resulted in
lower-than-anticipated tax receipts. In fiscal 2003, a projected
deficit of roughly $5.3 billion was addressed by a combination of
spending reductions and revenue enhancements. Among initiatives
proposed by Governor McGreevey were a restructuring of the Corporate
Business Tax, a hike in cigarette taxes and the imposition of
delayed funding increases for municipalities, schools and certain
state agencies. An additional $1.8 billion was raised in August 2002
with the securitization of a portion of the state's anticipated
tobacco settlement revenues. While these efforts were successful in
balancing the budget, the significant reliance on non-recurring
revenues will require further measures in the next year as a means
to achieving structural balance. Indeed, on February 4, 2003,
the Governor introduced the state's fiscal 2004 budget totaling
$23.7 billion in which he proposed eliminating a projected
$5 billion deficit through substantial job cuts, $3.7 billion in
spending reductions and higher taxes on hotels, cigarettes and
casinos. In addition to these measures, the state chose to complete
the securitization of its share of tobacco settlement revenues
arising from the 1998 Master Settlement Agreement with another
$1.65 billion issue that closed in late February 2003. Other
issuance worthy of note occurred in March 2003 as the state
refinanced $375 million in taxable pension obligation bonds and
subsequently raised $500 million with the sale of Garden State
Preservation Trust open space and farmland preservation bonds.
Importantly, in early April 2003, New Jersey's Supreme Court, in a
4 - 3 vote, narrowly upheld the state's right to allow authorities
to issue lease-backed debt without voter approval. In its decision,
the Court ruled that because the state legislature must annually
vote to approve the lease payments, the debt does not constitute a
general obligation of the state. Currently, Moody's Investors
Service assigns the state a rating of Aa2 with a negative outlook,
while Standard & Poor's maintains a rating of AA with a stable
outlook. While these ratings clearly reflect such underlying
fundamental strengths as a highly educated workforce and a diverse
economic base, it seems likely that prospects for the state's credit
ratings hinge largely on the degree to which policymakers
successfully deal with the fiscal and economic challenges that lie
ahead.
MuniYield New Jersey Insured Fund, Inc., April 30, 2003
Portfolio Strategy
During the six-month period ended April 30, 2003, portfolio activity
consisted primarily of the modest reallocation of portfolio assets
into longer-dated securities. In some cases, funding for these
purchases came from the early redemption of a portion of the Fund's
more seasoned holdings as issuers sought to refinance existing debt
in the current low interest rate environment. Other sources included
proceeds from the sale of bonds that were advance-refunded and, as a
consequence, were valued at substantial premiums. Despite the
attractive coupon income typically associated with this type of
bond, the premiums tend to amortize at a rapid pace offsetting some
of the income-related benefits. Given the uncertainty over future
reinvestment prospects, we consider it prudent to lock in gains on
the appreciated securities and reinvest the proceeds in high-quality
bonds maturing in the 20-year - 25-year range. The shape of the
municipal yield curve has become unusually steep in recent months,
offering an attractive opportunity to add incremental yield to the
portfolio by modestly extending the average maturity of its
holdings.
In terms of sector allocation at April 30, 2003, tax-backed
obligations represented the single largest commitment, comprising
about 40.50% of portfolio assets. The majority of these holdings
were bonds issued by a broad cross section of local school districts
and municipalities as well as state agencies carrying the implicit
guaranty of the state. At approximately 15%, transportation
represented the portfolio's next largest sector holding, while
industrial development bonds and non-profit hospital issues
comprised the next two largest concentrations, at close to 10%,
respectively. Several of the investments within these two categories
represented exposure to higher-yielding, low investment grade
credits. Credit spreads within the municipal market remain wide on a
historical basis and, in our opinion, represent attractive value
both in terms of total return potential as well as income
enhancement. Nevertheless, the overall credit profile remains quite
strong with about 85% of portfolio assets guaranteed by one of the
monoline insurers, thereby earning the highest credit rating
possible.
In the months ahead, our portfolio strategy will be premised on the
expectation that an aggressively accommodative monetary policy,
coupled with improving consumer sentiment and business confidence,
will spark an economic rebound. Recently, prospects for the passage
of an aggressive economic stimulus bill have improved dramatically,
further raising the likelihood of stronger economic growth.
Nevertheless, fixed income markets remain well bid, as existing
geopolitical risks are likely to dominate investors' thoughts for
the near term. With this in mind, the portfolio remains positioned
for stable to modestly higher interest rates, while the adoption of
a fully defensive stance appears un-warranted until such time as
these risks subside. As before, cash reserves will be maintained at
minimal levels reflecting a strong emphasis on preserving the Fund's
competitive income distribution.
During the six-month period ended April 30, 2003, the Fund's
borrowing costs remained in the 1% - 1.50% range, with rates
presently near 1%. These attractive funding levels, in combination
with the steep tax-exempt yield curve, have continued to generate a
significant income benefit to the Fund's Common Stock shareholder.
We do not expect any material reduction in the Fund's borrowing
costs in 2003 as no additional easings by the Federal Reserve Board
are anticipated. We expect the Fund's short-term borrowing costs to
remain in a 1% - 1.50% range for most of the coming year. 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 stock 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 ongoing interest in MuniYield New Jersey Insured
Fund, Inc., and we look forward to assisting you with your financial
needs in the months and years ahead.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Director
(Kenneth A. Jacob)
Kenneth A. Jacob
Senior Vice President
(John M. Loffredo)
John M. Loffredo
Senior Vice President
(Theodore R. Jaeckel Jr.)
Theodore R. Jaeckel Jr.
Vice President and Portfolio Manager
May 27, 2003
PROXY RESULTS
During the six-month period ended April 30, 2003, MuniYield New
Jersey Insured Fund, Inc.'s Common Stock 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 Directors: Terry K. Glenn 8,051,042 286,659
Donald W. Burton 8,048,892 288,809
Fred G. Weiss 8,049,222 288,479
During the six-month period ended April 30, 2003, MuniYield New
Jersey Insured Fund, Inc.'s Preferred Stock 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 Directors: Terry K. Glenn, Donald W. Burton,
M. Colyer Crum, Laurie Simon Hodrick and Fred G. Weiss 1,905 226
MuniYield New Jersey Insured Fund, Inc., April 30, 2003
SCHEDULE OF INVESTMENTS (in Thousands)
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
New Jersey-- AAA Aaa $ 4,765 Cape May County, New Jersey, Industrial Pollution Control
131.1% Financing Authority Revenue Bonds (Atlantic City Electric Company
Project), AMT, Series A, 7.20% due 11/01/2029 (d) $ 5,213
AAA Aaa 3,010 Carteret, New Jersey, Board of Education, COP, 6.75% due
10/15/2004 (d)(e) 3,311
Delaware River Port Authority of Pennsylvania and New Jersey
Revenue Bonds:
AAA Aaa 3,000 5.40% due 1/01/2016 (b) 3,293
NR* Aaa 2,500 RIB, Series 396, 10.383% due 1/01/2019 (c)(f) 3,290
Essex County, New Jersey, Improvement Authority Revenue Bonds,
Series A (b):
NR* Aaa 1,510 4.50% due 10/01/2023 1,515
NR* Aaa 1,610 5% due 10/01/2028 1,663
AAA Aaa 6,925 Garden State Preservation Trust, New Jersey, Capital Appreciation
Revenue Bonds, Series B, 5.12%** due 11/01/2023 (c) 2,613
AAA Aaa 2,085 Garden State Preservation Trust, New Jersey, Revenue Bonds, Series A,
5% due 11/01/2020 (c) 2,224
BBB NR* 2,000 Gloucester County, New Jersey, Improvement Authority, Solid Waste
Resource Recovery Revenue Refunding Bonds (Waste Management Inc.
Project), Series A, 6.85% due 12/01/2029 2,268
AAA Aaa 1,000 Hudson County, New Jersey, COP, Refunding, 6.25% due 12/01/2016 (d) 1,244
AAA NR* 8,250 Hudson County, New Jersey, Improvement Authority, Facility Lease
Revenue Refunding Bonds (Hudson County Lease Project), 5.375% due
10/01/2024 (b) 8,857
Jackson Township, New Jersey, School District, GO (b):
AAA Aaa 2,880 5% due 4/15/2017 3,102
AAA Aaa 5,200 5% due 4/15/2020 5,504
AAA Aaa 3,750 Jersey City, New Jersey, Sewer Authority, Sewer Revenue Refunding
Bonds, 6.25% due 1/01/2014 (a) 4,546
AAA Aaa 2,000 Middlesex County, New Jersey, COP, Refunding, 5% due 8/01/2022 (d) 2,096
Monmouth County, New Jersey, Improvement Authority, Governmental
Loan Revenue Bonds (a):
AAA Aaa 735 5.20% due 12/01/2014 815
AAA Aaa 2,305 5.25% due 12/01/2015 2,556
Monmouth County, New Jersey, Improvement Authority, Governmental
Loan Revenue Refunding Bonds (a):
AAA Aaa 1,695 5% due 12/01/2017 1,821
AAA Aaa 1,520 5% due 12/01/2018 1,624
AAA Aaa 1,540 5% due 12/01/2019 1,636
BBB- NR* 1,000 New Jersey EDA, First Mortgage Revenue Bonds (Fellowship Village),
Series C, 5.50% due 1/01/2028 958
BBB- NR* 1,700 New Jersey EDA, First Mortgage Revenue Refunding Bonds (Fellowship
Village), Series A, 5.50% due 1/01/2018 1,706
NR* Aaa 3,000 New Jersey EDA, Natural Gas Facilities Revenue Refunding Bonds
(NUI Corporation), RIB, Series 371, 10.77% due 10/01/2022 (a)(f) 3,511
New Jersey EDA, Revenue Bonds:
AAA Aaa 2,305 (Educational Testing Service), Series B, 6.125% due
5/15/2005 (d)(e) 2,570
AAA Aaa 3,000 (School Facilities-Construction), GO, Series A, 5.25% due
6/15/2019 (a) 3,241
AAA Aaa 9,080 (Transportation Project Sublease), Series A, 5.875% due
5/01/2014 (c) 10,488
AAA Aaa 2,835 New Jersey EDA, Revenue Refunding Bonds (RWJ Health Care Corporation),
6.50% due 7/01/2024 (c) 3,033
AAA Aaa 1,150 New Jersey EDA, State Contract Revenue Bonds (Economic Recovery),
Series A, 6% due 3/15/2021 (c) 1,177
NR* Aaa 2,535 New Jersey EDA, Water Facilities Revenue Bonds, RIB, AMT, Series 417,
12.08% due 11/01/2034 (b)(f) 2,987
AAA Aaa 1,050 New Jersey EDA, Water Facilities Revenue Refunding Bonds (American
Water), AMT, Series B, 5.125% due 4/01/2022 (a) 1,098
New Jersey Health Care Facilities Financing Authority Revenue Bonds:
NR* Baa2 665 (Somerset Medical Center), 5.50% due 7/01/2033 641
NR* Baa1 4,000 (South Jersey Hospital), 6% due 7/01/2026 4,128
New Jersey Health Care Facilities Financing Authority, Revenue
Refunding Bonds:
A- A3 615 (Atlantic City Medical Center), 6.25% due 7/01/2017 685
A- A3 1,315 (Atlantic City Medical Center), 5.75% due 7/01/2025 1,389
BBB+ NR* 2,425 (Holy Name Hospital), 6% due 7/01/2025 2,488
AAA Aaa 2,250 (Meridian Health System Obligation Group), 5.25% due 7/01/2019 (c) 2,415
BBB- Baa3 1,000 (Saint Elizabeth Hospital Obligation Group), 6% due 7/01/2027 991
AAA Aaa 2,000 New Jersey Sports and Exposition Authority, Luxury Tax Revenue
Refunding Bonds (Convention Center), 5% due 9/01/2017 (d) 2,142
AAA Aaa 3,200 New Jersey State Educational Facilities Authority, Higher Education,
Capital Improvement Revenue Bonds, Series E, 5.125% due 9/01/2022 (a) 3,386
New Jersey State Educational Facilities Authority, Revenue Refunding
Bonds (William Paterson University), Series E (h):
AAA Aaa 1,440 5.375% due 7/01/2017 1,597
AAA Aaa 1,725 5% due 7/01/2021 1,812
AAA Aaa 8,690 New Jersey State Higher Education Assistance Authority, Student Loan
Revenue Bonds, AMT, Series A, 5.30% due 6/01/2017 (a) 9,120
New Jersey State Housing and Mortgage Finance Agency, Home Buyer
Revenue Bonds, AMT (d):
AAA Aaa 3,150 Series CC, 5.80% due 10/01/2020 3,363
AAA Aaa 745 Series M, 7% due 10/01/2026 758
AAA Aaa 2,675 New Jersey State Housing and Mortgage Finance Agency, M/F Housing
Revenue Refunding Bonds, Series A, 6.05% due 11/01/2020 (a) 2,795
AAA Aaa 5,350 New Jersey State Transit Corporation, COP, 6.50% due 4/01/2007 (c)(e) 6,285
New Jersey State Transportation Trust Fund Authority, Transportation
System Revenue Bonds:
AAA Aaa 1,500 Series A, 5% due 6/15/2018(c) 1,594
AAA Aaa 2,750 Series B, 5% due 6/15/2013(a) 3,003
Portfolio
Abbreviations
To simplify the listings of MuniYield New Jersey Insured Fund,
Inc.'s portfolio holdings in the Schedule of Investments, we have
abbreviated the names of many of the securities according to the
list at right.
AMT Alternative Minimum Tax
(subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt
Receipts
EDA Economic Development
Authority
GO General Obligation Bonds
M/F Multi-Family
RIB Residual Interest Bonds
MuniYield New Jersey Insured Fund, Inc., April 30, 2003
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
New Jersey New Jersey State Transportation Trust Fund Authority, Transportation
(concluded) System Revenue Refunding Bonds:
AAA Aaa $ 625 Series A, 5.50% due 12/15/2015 (a) $ 729
AAA Aaa 1,060 Series B, 6% due 12/15/2011 (d)(e) 1,272
AAA Aaa 1,100 Series B, 6% due 12/15/2011 (d)(e) 1,320
AAA Aaa 2,500 New Jersey State Turnpike Authority, Turnpike Revenue Refunding
Bonds, Series A, 5.75% due 1/01/2019 (d) 2,842
Port Authority of New York and New Jersey, Consolidated Revenue Bonds:
AA- A1 1,000 93rd Series, 6.125% due 6/01/2094 1,164
AAA Aaa 4,000 AMT, 97th Series, 6.65% due 1/15/2023 (b) 4,318
AAA Aaa 3,500 Port Authority of New York and New Jersey, Consolidated Revenue
Refunding Bonds, AMT, 96th Series, 6.60% due 10/01/2023 (b) 3,752
AAA Aaa 4,075 Port Authority of New York and New Jersey, Revenue Bonds, Trust
Receipts, AMT, Class R, Series 10, 10.079% due 1/15/2017 (c)(f) 4,976
AAA Aaa 3,180 Port Authority of New York and New Jersey, Revenue Refunding Bonds,
DRIVERS, Series 153, 8.828% due 9/15/2012 (b)(f) 3,683
AAA Aaa 1,180 South Brunswick Township, New Jersey, Board of Education, GO, 6.40%
due 8/01/2005 (b)(e) 1,310
A NR* 2,200 South Jersey, New Jersey, Revenue Refunding Bonds (Port Corporation),
5% due 1/01/2023 2,244
Tobacco Settlement Financing Corporation of New Jersey Revenue Bonds:
A- A3 1,870 6.75% due 6/01/2039 1,654
A- A3 2,845 7% due 6/01/2041 2,617
Union County, New Jersey, Utilities Authority, Senior Lease Revenue
Refunding Bonds (Ogden Martin System of Union), AMT, Series A (a):
AAA Aaa 1,590 5.375% due 6/01/2017 1,666
AAA Aaa 1,670 5.375% due 6/01/2018 1,742
University of Medicine and Dentistry, New Jersey, Revenue Bonds,
Series A (a):
AAA Aaa 570 5.50% due 12/01/2018 639
AAA Aaa 1,145 5.50% due 12/01/2019 1,279
AAA Aaa 1,130 5.50% due 12/01/2020 1,257
AAA Aaa 865 5.50% due 12/01/2021 959
Pennsylvania-- A- A2 1,000 Delaware River Joint Toll Bridge Commission, Pennsylvania, Bridge
0.8% Revenue Refunding Bonds, 5% due 7/01/2023 1,027
Puerto Rico--7.7% A Baa1 1,840 Puerto Rico Commonwealth, Highway and Transportation Authority,
Transportation Revenue Bonds, Series G, 5% due 7/01/2042 1,815
NR* Aa2 2,110 Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Revenue Bonds (Ascension Health),
RIB, Series 377, 10.61% due 11/15/2030 (f) 2,567
AAA NR* 5,250 Puerto Rico Public Buildings Authority Revenue Bonds, DRIVERS,
Series 211, 8.941% due 7/01/2021 (d)(f) 6,124
Total Municipal Bonds (Cost--$173,905)--139.6% 189,508
Shares
Held Short-Term Securities
2 CMA New Jersey Municipal Money Fund (g) 2
Total Short-Term Securities (Cost--$2)--0.0% 2
Total Investments (Cost--$173,907)--139.6% 189,510
Other Assets Less Liabilities--1.7% 2,270
Preferred Stock, at Redemption Value--(41.3%) (56,000)
--------
Net Assets Applicable to Common Stock--100.0% $135,780
========
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FSA Insured.
(d) MBIA Insured.
(e) Prerefunded.
(f) 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.
(g) 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:
Net Dividend
Affiliate Activity Income
CMA New Jersey Municipal
Money Fund 2 $3
(h) XL Capital Insured.
*Not Rated.
**Represents a zero coupon or step bond; the interest rate shown
reflects the effective yield at the time of purchase by the Fund.
See Notes to Financial Statements.
MuniYield New Jersey Insured Fund, Inc., April 30, 2003
STATEMENT OF NET ASSETS
As of April 30, 2003
Assets: Investments, at value (identified cost--$173,907,499) $189,509,667
Cash 36,560
Interest receivable 3,103,498
Prepaid expenses 16,835
------------
Total assets 192,666,560
------------
Liabilities: Payables:
Securities purchased 640,860
Dividends to Common Stock shareholders 150,482
Investment adviser 80,346
Other affiliates 1,476 873,164
------------
Accrued expenses 12,936
------------
Total liabilities 886,100
------------
Preferred Stock: Preferred Stock, at redemption value, par value $.05 per share
(2,240 Series A shares of AMPS* issued and outstanding at $25,000
per share liquidation preference) 56,000,000
------------
Net Assets Net assets applicable to Common Stock $135,780,460
Applicable ============
To Common Stock:
Analysis of Net Common Stock, par value $.10 per share (8,730,235 shares issued
Assets Applicable and outstanding) $ 873,024
to Common Stock: Paid-in capital in excess of par 122,454,599
Undistributed investment income--net $ 1,502,263
Accumulated realized capital losses on investments--net (4,651,594)
Unrealized appreciation on investments--net 15,602,168
------------
Total accumulated earnings--net 12,452,837
------------
Total--Equivalent to $15.55 net asset value per share of Common Stock
(market price--$15.40) $135,780,460
============
*Auction Market Preferred Stock.
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 2003
Investment Income: Interest $ 5,247,572
Dividends 3,298
------------
Total income 5,250,870
------------
Expenses: Investment advisory fees $ 469,163
Commission fees 70,281
Accounting services 40,777
Professional fees 27,428
Transfer agent fees 17,664
Printing and shareholder reports 14,172
Listing fees 10,364
Directors' fees and expenses 10,109
Custodian fees 6,356
Pricing fees 5,439
Other 13,780
------------
Total expenses before reimbursement 685,533
Reimbursement of expenses (2,588)
------------
Total expenses after reimbursement 682,945
------------
Investment income--net 4,567,925
------------
Realized & Realized loss on investments--net (133,571)
Unrealized Change in unrealized appreciation/depreciation on investments--net 3,537,527
Gain (Loss) on ------------
Investments--Net: Total realized and unrealized gain on investments--net 3,403,956
------------
Dividends & Investment income--net (270,547)
Distributions to Realized gain on investments--net (4,122)
Preferred Stock ------------
Shareholders: Total dividends and distributions to Preferred Stock shareholders (274,669)
------------
Net Increase in Net Assets Resulting from Operations $ 7,697,212
============
See Notes to Financial Statements.
MuniYield New Jersey Insured Fund, Inc., April 30, 2003
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 $ 4,567,925 $ 9,182,764
Realized loss on investments--net (133,571) (454,136)
Change in unrealized appreciation/depreciation on investments--net 3,537,527 (20,038)
Dividends and distributions to Preferred Stock shareholders (274,669) (750,803)
------------ ------------
Net increase in net assets resulting from operations 7,697,212 7,957,787
------------ ------------
Dividends & Investment income--net (4,084,011) (8,129,950)
Distributions to Realized gain on investments--net (46,866) (50,541)
Common Stock ------------ ------------
Shareholders: Net decrease in net assets resulting from dividends and
distributions to Common Stock shareholders (4,130,877) (8,180,491)
------------ ------------
Common Stock Value of shares issued to Common Stock shareholders in reinvestment
Transactions: of dividends and distributions 68,431 1,356,105
------------ ------------
Net Assets Total increase in net assets applicable to Common Stock 3,634,766 1,133,401
Applicable Beginning of period 132,145,694 131,012,293
To Common Stock: ------------ ------------
End of period* $135,780,460 $132,145,694
============ ============
*Undistributed investment income--net $ 1,502,263 $ 1,288,896
============ ============
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
The following per share data and ratios For the
have been derived from information Six Months
provided in the financial statements. 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 $ 15.14 $ 15.17 $ 13.96 $ 13.48 $ 15.96
Operating --------- --------- --------- --------- ---------
Performance:++++ Investment income--net .52+++++ 1.07 1.04 1.03 1.07
Realized and unrealized gain (loss)
on investments--net .40 (.06) 1.21 .51 (2.24)
Dividends and distributions to Preferred
Stock shareholders:
Investment income--net (.03) (.09) (.20) (.25) (.19)
Realized gain on investments--net --++ --++ -- -- --
In excess of realized gain on
investments--net -- -- -- -- (.02)
--------- --------- --------- --------- ---------
Total from investment operations .89 .92 2.05 1.29 (1.38)
--------- --------- --------- --------- ---------
Less dividends and distributions to
Common Stock shareholders:
Investment income--net (.47) (.94) (.84) (.81) (.88)
Realized gain on investments--net (.01) (.01) -- -- --
In excess of realized gain on
investments--net -- -- -- -- (.22)
--------- --------- --------- --------- ---------
Total dividends and distributions to
Common Stock shareholders (.48) (.95) (.84) (.81) (1.10)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 15.55 $ 15.14 $ 15.17 $ 13.96 $ 13.48
========= ========= ========= ========= =========
Market price per share, end of period $ 15.40 $ 14.45 $ 15.04 $ 13.375 $ 12.625
========= ========= ========= ========= =========
Total Investment Based on market price per share 9.94%+++ 2.30% 19.04% 12.80% (18.97%)
Return:** ========= ========= ========= ========= =========
Based on net asset value per share 5.95%+++ 6.27% 15.04% 10.27% (9.20%)
========= ========= ========= ========= =========
Ratios Based on Total expenses, net of reimbursement*** 1.04%* 1.07% 1.11% 1.11% 1.03%
Average Net ========= ========= ========= ========= =========
Assets of Total expenses*** 1.04%* 1.07% 1.11% 1.11% 1.03%
Common Stock: ========= ========= ========= ========= =========
Total investment income--net*** 6.92%* 7.04% 7.01% 7.56% 7.07%
========= ========= ========= ========= =========
Amount of dividends to Preferred Stock
hareholders .41%* .57% 1.33% 1.86% 1.24%
========= ========= ========= ========= =========
Investment income--net, to Common Stock
hareholders 6.51%* 6.47% 5.68% 5.70% 5.83%
========= ========= ========= ========= =========
Ratios Based on Total expenses, net of reimbursement .73%* .75% .77% .75% .72%
Average Net Assets ========= ========= ========= ========= =========
Of Common & Total expenses .73%* .75% .77% .75% .72%
Preferred ========= ========= ========= ========= =========
Stock:*** Total investment income--net 4.87%* 4.93% 4.86% 5.10% 4.94%
========= ========= ========= ========= =========
Ratios Based on Dividends to Preferred Stock shareholders .97%* 1.32% 3.01% 3.85% 2.87%
Average Net ========= ========= ========= ========= =========
Assets of
Preferred Stock:
Supplemental Net assets applicable to Common Stock,
Data: end of period (in thousands) $ 135,780 $ 132,146 $ 131,012 $ 119,885 $ 115,763
========= ========= ========= ========= =========
Preferred Stock outstanding, end of
period (in thousands) $ 56,000 $ 56,000 $ 56,000 $ 56,000 $ 56,000
========= ========= ========= ========= =========
Portfolio turnover 11.67% 28.45% 57.25% 50.65% 61.80%
========= ========= ========= ========= =========
Leverage: Asset coverage per $1,000 $ 3,425 $ 3,360 $ 3,340 $ 3,141 $ 3,067
========= ========= ========= ========= =========
Dividends Per Investment income--net $ 121 $ 330 $ 753 $ 966 $ 716
Share On ========= ========= ========= ========= =========
Preferred Stock
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 Stock
shareholders.
++ Amount is less than $.01 per share.
++++ Certain prior year amounts have been reclassified to conform to
current year presentation.
+++ Aggregate total investment return.
+++++ Based on average shares outstanding.
See Notes to Financial Statements.
MuniYield New Jersey Insured Fund, Inc., April 30, 2003
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield New Jersey Insured Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 as a non-diversified,
closed-end management investment company. The Fund's 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 Stock on
a weekly basis. The Fund's Common Stock is listed on the New York
Stock Exchange under the symbol MJI. 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 fair value as determined in good faith by or
under the direction of the Board of Directors of the Fund, including
valuations furnished by a pricing service retained by the Fund,
which may utilize a matrix system for valuations. The procedures of
the pricing service and its valuations are reviewed by the officers
of the Fund under the general supervision of the Board of Directors.
(b) Derivative financial instruments--The Fund may engage in various
portfolio 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. 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 Stock. For the six months ended April 30,
2003, FAM reimbursed the Fund in the amount of $2,588.
For the six months ended April 30, 2003, the Fund reimbursed FAM
$2,153 for certain accounting services.
Certain officers and/or directors of the Fund are officers and/or
directors of FAM, PSI, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 2003 were $28,709,509 and
$21,691,829, respectively.
Net realized gains (losses) for the six months ended April 30, 2003
and net unrealized gains as of April 30, 2003 were as follows:
Realized Unrealized
Gains (Losses) Gains
Long-term investments $ 272,744 $ 15,602,168
Financial futures contracts (406,315) --
------------ ------------
Total $ (133,571) $ 15,602,168
============ ============
As of April 30, 2003, net unrealized appreciation for Federal income
tax purposes aggregated $15,757,780, of which $15,948,225 related to
appreciated securities and $190,445 related to depreciated
securities. The aggregate cost of investments at April 30, 2003 for
Federal income tax purposes was $173,751,887.
4. Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of stock,
including Preferred Stock, par value $.10 per share, all of which
were initially classified as Common Stock. The Board of Directors is
authorized, however, to reclassify any unissued shares of stock
without approval of holders of Common Stock.
Common Stock
Shares issued and outstanding during the six months ended April 30,
2003 and the year ended October 31, 2002 increased by 4,458 and
90,512, respectively, as a result of dividend reinvestment.
Preferred Stock
Auction Market Preferred Stock ("AMPS") are redeemable shares of
Preferred Stock 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 1.10%.
Shares issued and outstanding during the six months ended April 30,
2003 and 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 $40,666 as commissions.
5. Capital Loss Carryforward:
On October 31, 2002, the Fund had a net capital loss carryforward of
$2,391,066, of which $1,312,815 expires in 2008 and $1,078,251
expires in 2010. 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
Stock in the amount of $.078000 per share on May 29, 2003 to
shareholders of record on May 16, 2003.
MuniYield New Jersey Insured Fund, Inc., April 30, 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 shares of Common Stock of the Fund, the
Fund may at times pay out less than the entire amount of net
investment income earned in any particular month and may at times in
any 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.
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 85.0%
AA/Aa 2.0
A/A 6.0
BBB/Baa 7.0
NR (Not Rated) 0.0*
* Amount is less than 0.1%.
MuniYield New Jersey Insured Fund, Inc., April 30, 2003
OFFICERS AND DIRECTORS
Terry K. Glenn, President and Director
Donald W. Burton, Director
M. Colyer Crum, Director
Laurie Simon Hodrick, Director
Fred G. Weiss, Director
Kenneth A. Jacob, Senior Vice President
John M. Loffredo, Senior Vice President
Theodore R. Jaeckel Jr., Vice President
Donald C. Burke, Vice President and Treasurer
Brian D. Stewart, Secretary
J. Thomas Touchton, Director of MuniYield New Jersey Insured Fund,
Inc., has recently retired. The Fund's Board of Directors wishes
Mr. Touchton well in his retirement.
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Stock:
The Bank of New York
100Church Street
New York, NY 10286
NYSE Symbol
MJI
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 New Jersey Insured Fund, Inc.
By: _/s/ Terry K. Glenn_______
Terry K. Glenn,
President of
MuniYield New Jersey Insured Fund, Inc.
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 New Jersey Insured Fund, Inc.
Date: June 23, 2003
By: _/s/ Donald C. Burke________
Donald C. Burke,
Chief Financial Officer of
MuniYield New Jersey Insured Fund, Inc.
Date: June 23, 2003
Attached hereto as an exhibit are the certifications pursuant to
Section 906 of the Sarbanes-Oxley Act.