UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
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: 10/31/04
Date of reporting period: 11/01/03 - 04/30/04
Item 1 - Report to Stockholders
(BULL LOGO)
Merrill Lynch Investment Managers
www.mlim.ml.com
MuniYield Florida
Insured Fund
Semi-Annual Report
April 30, 2004
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,
investment-grade 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.
A description of the policies and procedures that the Fund uses to
determine how to vote proxies relating to portfolio securities is
available (1) without charge, upon request, by calling toll-free
1-800-MER-FUND (1-800-637-3863); (2) on www.mutualfunds.ml.com;
and (3) on the Securites and Exchange Commission's website at
http://www.sec.gov.
MuniYield Florida Insured Fund
Box 9011
Princeton, NJ
08543-9011
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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
pays dividends at prevailing short-term interest rates, and invests
the proceeds in long-term municipal bonds. The interest earned on
these investments, net of dividends to Preferred Shares, 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
Share'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 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 these securities. As of
April 30, 2004, the percentage of the Fund's total net assets
invested in inverse floaters was 10.60%.
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, 2004
A Letter From the President
Dear Shareholder
For the six-month and 12-month periods ended April 30, 2004, the
Lehman Brothers Municipal Bond Index posted returns of +1.19% and
+2.68%, respectively. Its taxable counterpart, the Lehman Brothers
Aggregate Bond Index, had returns of +1.25% and +1.82% for the same
periods. Amid considerable month-to-month volatility, tax-exempt
bond yields rose over the past year, although not to the same extent
as 10-year U.S. Treasury yields. In all, tax-exempt securities
continued to be an attractive fixed income investment alternative.
As of April month-end, the Federal Reserve Board maintained its
accommodative policy stance, although a better-than-expected
employment report for the month of March prompted speculation that
an interest rate increase could come sooner than many had expected.
On April 2, 2004, the good news on the employment front - previously
the one dim spot in an otherwise bright economic picture - helped
prompt the yield on the 10-year Treasury bond to spike nearly 25
basis points (.25%), from 3.91% to 4.15%. Market watchers continue
to monitor the economic data and Federal Reserve Board language for
indications of interest rate direction. If economic growth maintains
its recent pace and employment figures continue to improve, many
believe it is just a matter of time before interest rates move
upward.
Equity markets, in the meantime, gleaned support from the improving
economic environment and provided attractive returns. For the
six-month and 12-month periods ended April 30, 2004, the Standard &
Poor's 500 Index returned +6.27% and +22.88%, respectively.
Significant fiscal and monetary stimulus in 2003, including low
interest rates and tax cuts, has opened the door to consumer
spending, capital spending, increases in exports and long-awaited
job growth. As expected, these developments have led the way to
improvements in corporate earnings - a positive for stock markets.
The events and efforts of the past year leave us with a much
stronger economy today. Of course, markets will always fluctuate,
and there are many uncertainties - not the least of which are
geopolitical in nature - which can translate into negative market
movements. Keeping this in mind, we encourage you to revisit your
portfolio and your asset allocation strategy to ensure you are well
positioned to take advantage of the opportunities that lie ahead.
Importantly, your financial advisor can help you develop a strategy
most suitable for your circumstances through all types of market and
economic cycles.
We thank you for trusting Merrill Lynch Investment Managers with
your investment assets, and we look forward to serving you in the
months and years ahead.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Trustee
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
A Discussion With Your Fund's Portfolio Manager
Our strategy has been and continues to be focused on increasing the
Fund's yield while protecting net asset value in what has been a
volatile interest rate environment.
Describe the recent market environment relative to municipal bonds.
For much of the six-month period, a positive economic backdrop
helped bond prices to move higher as yields, which typically
move opposite of prices, declined. In early April, however, a
surprisingly strong monthly employment report triggered fears that
the long-accommodative Federal Reserve Board might raise interest
rates sooner than many had expected. As a result, bond yields rose
(prices fell) sharply for the remainder of the period. At the end of
April, long-term U.S. Treasury bond yields had climbed to 5.13%,
representing an increase of approximately 15 basis points (.15%)
over the past six months. Ten-year U.S. Treasury note yields stood
at 4.30% as of period end, an increase of more than 20 basis points.
Tax-exempt bond yields generally mimicked the movement of their
taxable counterparts, although volatility in the municipal market
was more subdued. Long-term revenue bond yields, as measured by the
Bond Buyer Revenue Bond Index, rose just four basis points over the
past six months. For the same period, yields on AAA-rated issues
maturing in 30 years increased approximately 10 basis points to
4.93% while yields on 10-year, AAA-rated issues increased more than
16 basis points to nearly 4%, according to Municipal Market Data.
The more marked increase in 10-year bond yields may be attributed
to the fact that recent issuance has been heavily concentrated in
the 10-year - 20-year range. The resulting supply imbalance prompted
higher intermediate bond yields (and lower prices). Longer-maturity
and lower-rated issues continued to benefit from more favorable
supply/demand factors and, therefore, have seen less price
depreciation. For the six-month period as a whole, municipal bond
supply declined approximately 5% compared to the same period a year
ago.
While investor enthusiasm for stocks has taken some attention away
from fixed income markets, overall demand for tax-exempt municipal
bonds has remained positive. Recent Federal Reserve Board statistics
showed that U.S. household holdings of municipal securities
increased by more than $25 billion during the fourth quarter of 2003
to approximately $680 billion. In addition, data from the Investment
Company Institute indicates that, in just the first three months of
2004, tax-exempt bond funds have seen net new cash flows of almost
$640 million.
Describe conditions in the State of Florida.
Overall, conditions in Florida remained favorable. The state
maintained solid credit ratings of Aa2 from Moody's, AA+ from
Standard & Poor's and AA from Fitch. All three rating agencies held
a stable outlook for Florida's finances. This was based on an
improving and diverse economy, solid finances, moderate debt and a
proactive government that responds to economic downturns quicker
than other states.
Florida's economy is bolstered by strong population growth, which is
attributed to its attractive physical environment and favorable
business climate. The population growth is one reason Florida's
economy typically has performed better than the national economy.
Although the growth in population has put a strain on services such
as education, transportation and health care, it also has allowed
the state to recover quickly from the recent sub-par economic
trends.
Currently, the state's revenues are modestly higher than projected
and expenditures remain under control due to strong fiscal
oversight. The fiscal year 2004 budget was pressured by only modest
revenue increases, but was brought into balance through tight
expenditure controls, including outsourcing work and requiring local
governments to pick up costs historically incurred by the state. To
pay for these additional expenses, municipalities imposed increases
to property taxes and/or local sales taxes through voter
initiatives.
Florida continues to maintain sound and solid fund balances with
consistent General Fund operations. In addition, the state has a
working Capital Reserve Fund and a Budget Stabilization Fund in
excess of $1.8 billion. Our strategy in purchasing Florida issues
has been to favor insured general obligation bonds and their
equivalents rather than uninsured bonds. We believe this is a
prudent approach, as there is no meaningful yield offered in
exchange for the additional risk associated with uninsured bonds.
How did the Fund perform during the period in light of the existing
market conditions?
For the six-month period ended April 30, 2004, the Common Shares of
MuniYield Florida Insured Fund had net annualized yields of 6.34%
and 6.96%, based on a period-end per share net asset value of $14.72
and a per share market price of $13.40, respectively, and $.465 per
share income dividends. Over the same period, the total investment
return on the Fund's Common Shares was +1.03%, based on a change in
per share net asset value from $15.04 to $14.72, and assuming
reinvestment of $.464 per share ordinary income dividends.
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
For the six-month period ended April 30, 2004, the Fund's Auction
Market Preferred Shares (AMPS) had an average yield of .89%.
The Fund's return, based on net asset value, lagged the +1.78%
average return of its comparable Lipper category of Florida
Municipal Debt Funds for the six-month period ended April 30, 2004.
(Funds in this Lipper category limit their investment to securities
exempt from taxation in Florida or a city in Florida). While our
overall strategy has been to favor issues with longer maturities,
the Fund does hold a fair amount of pre-refunded bonds in the
one-year - ten-year maturity range. This sector of the yield curve
was hard hit during the past six months, and this portion of the
portfolio detracted from overall returns. On a positive note, the
Fund's yield remains competitive and we recently were able to
increase the monthly dividend paid to shareholders.
For a description of the Fund's total investment return based on a
change in the per share market value of the Fund's Common Shares (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 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 market
value of the Fund's Common Shares can vary significantly from total
investment return based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
We made no significant changes to the portfolio or our investment
strategy in the past six months. We maintained our focus on
increasing the income provided to shareholders and muting the Fund's
net asset value volatility. The most volatile part of the yield
curve during the period continued to be the 10-year - 15-year
sector. During periods of sustained strength in the bond market, we
sought to reduce some of our holdings in this maturity range. With
the proceeds from the sales, we looked to purchase premium-coupon
bonds in the 20-year - 30-year maturity range whenever they became
available. Our observations and research reveal that the longer end
of the yield curve has held firm. As such, this is where we have
found the greatest value. By taking advantage of the steep yield
curve, we have been able to increase the Fund's yield while muting
its price volatility.
In terms of leverage, the Fund's borrowing costs generally remained
below 1% throughout the period. The attractive funding levels, in
combination with a steep tax-exempt yield curve, continued to
generate a significant income benefit to the Fund's Common
Shareholders. At this point, the Federal Reserve Board appears
poised to begin raising short-term interest rates, most likely later
in 2004. The increase, however, is expected to be gradual and is not
likely to have a material impact on the positive advantage leverage
has had on the yield of the Fund's Common Shares. We expect short-
term borrowing costs to remain near 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 as a result, reduce the yield on the Fund's Common
Shares. At the end of the period, the Fund's leverage amount, due to
AMPS, was 32.56% of total assets. (For a complete explanation of the
benefits and risks of leveraging, see page 2 of this report to
shareholders.)
How would you characterize the portfolio's position at the close of
the period?
In our view, the municipal market will continue to be volatile over
the next few months. Should interest rates continue to decline, we
intend to shift to a more defensive posture to prepare the Fund to
outperform when rates eventually head higher. As long as the
municipal yield curve remains steep, we will continue to sell the
intermediate part of the curve and use periods of volatility to
structure higher-coupon bonds whenever they are attractively priced.
Robert D. Sneeden
Vice President and Portfolio Manager
May 11, 2004
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
Proxy Results
During the six-month period ended April 30, 2004, MuniYield Florida
Insured Fund's Common Shareholders voted on the following proposal.
The proposal was approved at a shareholders' meeting on April 27,
2004. 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: Donald W. Burton 8,082,302 74,734
David H. Walsh 8,082,597 74,439
Fred G. Weiss 8,082,182 74,854
During the six-month period ended April 30, 2004, MuniYield Florida
Insured Fund's Preferred Shareholders voted on the following
proposal. The proposal was approved at a shareholders' meeting on
April 27, 2004. 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: Donald W. Burton,
M. Colyer Crum, Laurie Simon Hodrick, David H. Walsh
and Fred G. Weiss 2,231 10
Quality Profile
The quality ratings of securities in the Fund as of April 30, 2004
were as follows:
Percent of
Total
S&P Rating/Moody's Rating Investments
AAA/Aaa 87.0%
AA/Aa 4.0
A/A 4.0
BBB/Baa 2.5
NR (Not Rated) 2.1
Other* 0.4
*Temporary investments in short-term variable rate municipal
securities.
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
Schedule of Investments (In Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
Florida--131.0%
NR* VMIG1++ $ 700 Alachua County, Florida, Health Facilities Authority,
Health Facilities Revenue Bonds (Shands Teaching Hospital and
Clinics, Inc. Project), VRDN, Series A, 1.10% due 12/01/2012 (k) $ 700
AA NR* 2,065 Beacon Tradeport Community Development District, Florida, Special
Assessment Revenue Refunding Bonds (Commercial Project), Series A,
5.625% due 5/01/2032 2,155
AAA Aaa 700 Boynton Beach, Florida, Utility System Revenue Refunding Bonds,
6.25% due 11/01/2020 (c)(h) 823
AAA Aaa 3,000 Brevard County, Florida, IDR (NUI Corporation Project), AMT, 6.40%
due 10/01/2024 (a) 3,111
AAA Aaa 5,000 Dade County, Florida, Aviation Revenue Bonds, AMT, Series B, 5.75%
due 10/01/2012 (b) 5,338
NR* Aaa 1,000 Daytona Beach, Florida, Utility System Revenue Refunding Bonds,
Series B, 5% due 11/15/2027 (c) 1,003
AAA Aaa 1,000 Deltona, Florida, Utility System Revenue Bonds, 5.125% due
10/01/2027 (b) 1,015
NR* Aaa 25 Duval County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds,
AMT, 6.20% due 4/01/2020 (b)(d)(e) 25
AAA Aaa 2,275 Escambia County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds,
AMT, 7% due 4/01/2028 (d)(e) 2,346
NR* Aaa 4,585 Escambia County, Florida, Health Facilities Authority, Health
Facility Revenue Bonds (Florida Health Care Facility Loan), 5.95%
due 7/01/2020 (a) 4,782
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)(l) 1,143
AAA Aaa 2,110 First Florida Governmental Financing Commission Revenue Bonds,
5.70% due 7/01/2017 (b) 2,303
AAA Aaa 1,150 Florida HFA, Housing Revenue Bonds (Brittany Rosemont Apartments),
AMT, Series C-1, 6.75% due 8/01/2014 (a) 1,187
AAA Aaa 920 Florida Housing Finance Corporation, Homeowner Mortgage Revenue
Refunding Bonds, AMT, Series 4, 6.25% due 7/01/2022 (f) 955
AAA Aaa 1,650 Florida State Board of Education, Capital Outlay, GO (Public
Education), Series B, 5.875% due 6/01/2005 (l) 1,746
AAA Aaa 6,190 Florida State Board of Education, Lottery Revenue Bonds, Series A,
6% due 7/01/2015 (c) 7,027
Florida State Governmental Utility Authority, Utility Revenue
Bonds (a):
AAA Aaa 1,000 (Citrus Utility System), 5.125% due 10/01/2033 1,009
AAA Aaa 1,100 (Lehigh Utility System), 5.125% due 10/01/2028 1,115
AAA Aaa 1,000 (Lehigh Utility System), 5.125% due 10/01/2033 1,009
AA- Aa3 1,860 Florida State Turnpike Authority, Turnpike Revenue Bonds
(Department of Transportation), Series B, 5% due 7/01/2030 1,854
A A3 3,700 Highlands County, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Adventist Health System), Series A, 6% due 11/15/2031 3,880
NR* Baa1 1,025 Hillsborough County, Florida, IDA, Hospital Revenue Refunding Bonds
(Tampa General Hospital Project), Series A, 5.25% due 10/01/2024 1,014
NR* Aaa 6,000 Hillsborough County, Florida, School Board, COP, 5.375% due
7/01/2026 (b) 6,185
AAA Aaa 2,615 Hillsborough County, Florida, School District, Sales Tax Revenue
Refunding Bonds, 5.375% due 10/01/2020 (a) 2,787
Portfolio Abbreviations
To simplify the listings of MuniYield Florida Insured Fund's
portfolio holdings in the Schedule of Invest-ments, 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
VRDN Variable Rate Demand Notes
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
Schedule of Investments (continued) (In Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
Florida (continued)
AA- Aa3 $ 2,610 Jacksonville Electric Authority, Florida, Water and Sewer System
Revenue Bonds, Series C, 5.25% due 10/01/2037 $ 2,616
AAA Aaa 750 Jacksonville, Florida, Economic Development Commission, Health
Care Facilities Revenue Bonds (Mayo Clinic--Jacksonville), Series B,
5.50% due 11/15/2036 (b) 784
AAA Aaa 1,455 Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding and
Improvement Bonds, 5.25% due 10/01/2032 (c) 1,488
Jacksonville, Florida, Port Authority, Seaport Revenue Bonds, AMT (b):
NR* Aaa 1,025 5.625% due 11/01/2010 (l) 1,143
NR* Aaa 1,225 5.625% due 11/01/2026 1,261
AAA Aaa 2,000 Lakeland, Florida, Electric and Water Revenue Refunding Bonds,
Series A, 5% due 10/01/2028 (b) 2,002
AAA Aaa 1,000 Lee County, Florida, Airport Revenue Bonds, AMT, Series A, 6% due
10/01/2029 (f) 1,077
AAA NR* 395 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)(e)(i) 409
AAA Aaa 500 Marco Island, Florida, Utility System Revenue Bonds, 5.25% due
10/01/2021 (b) 528
NR* Aaa 1,000 Martin County, Florida, Utilities System Revenue Bonds, 5.125% due
10/01/2033 (a) 1,009
AAA Aaa 2,000 Miami Beach, Florida, Water and Sewer Revenue Bonds, 5.75% due
9/01/2025 (a) 2,154
Miami-Dade County, Florida, Aviation Revenue Bonds, AMT, Series A:
AAA Aaa 1,100 5.125% due 10/01/2035 (f) 1,090
AAA Aaa 5,000 (Miami International Airport), 6% due 10/01/2024 (c) 5,407
AAA Aaa 1,300 (Miami International Airport), 5% due 10/01/2033 (c) 1,269
AAA Aaa 1,510 (Miami International Airport), 5% due 10/01/2036 (c) 1,464
Miami-Dade County, Florida, Educational Facilities Authority Revenue
Bonds (University of Miami), Series A (a):
AAA Aaa 1,000 5.75% due 4/01/2013 1,116
AAA Aaa 2,000 5.75% due 4/01/2029 2,150
AAA Aaa 2,000 Miami-Dade County, Florida, Expressway Authority, Toll System Revenue
Bonds, 6.375% due 7/01/2010 (c)(l) 2,357
AAA NR* 3,480 Miami-Dade County, Florida, Health Facilities Authority, Hospital
Revenue Refunding Bonds, DRIVERS, Series 208, 9.87% due
8/15/2017 (a)(j) 4,055
AAA Aaa 1,115 Miami-Dade County, Florida, IDA, IDR (BAC Funding Corporation
Project), Series A, 5.375% due 10/01/2030 (a) 1,159
AAA Aaa 2,000 Miami-Dade County, Florida, School Board COP, Series A, 5.50% due
10/01/2020 (f) 2,167
AAA Aaa 1,000 Miami-Dade County, Florida, Special Obligation Revenue Bonds
(Juvenile Courthouse Project), Series A, 5% due 4/01/2035 (a) 995
AAA Aaa 1,000 Ocoee, Florida, Water and Sewer System Revenue Refunding and
Improvement Bonds, 5.125% due 10/01/2033 (a) 1,009
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) 5,038
Orange County, Florida, Health Facilities Authority, Hospital
Revenue Bonds:
A A3 600 (Adventist Health System), 6.25% due 11/15/2024 645
A- A2 1,835 (Orlando Regional Healthcare), 6% due 12/01/2029 1,919
Orange County, Florida, Sales Tax Revenue Refunding Bonds (c):
AAA Aaa 1,000 Series A, 5.125% due 1/01/2023 1,028
AAA Aaa 2,000 Series B, 5% due 1/01/2025 2,012
NR* Aaa 6,500 Orange County, Florida, School Board, COP, Series A, 5.25% due
8/01/2023 (b) 6,723
AAA Aaa 5,330 Orange County, Florida, Tourist Development, Tax Revenue Bonds,
5.50% due 10/01/2032 (a) 5,541
AAA A2 165 Orange County, Florida, Tourist Development, Tax Revenue Refunding
Bonds, Series A, 6.50% due 10/01/2010 (a)(h) 168
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
Schedule of Investments (continued) (In Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
Florida (concluded)
Orlando and Orange County, Florida, Expressway Authority Revenue
Bonds, Series B (a):
AAA Aaa $ 1,000 5% due 7/01/2030 $ 1,000
AAA Aaa 1,650 5% due 7/01/2035 1,641
NR* Aaa 1,530 Osceola County, Florida, Infrastructure Sales Surplus Tax Revenue
Bonds, 5.25% due 10/01/2025 (a) 1,573
NR* Aaa 2,000 Osceola County, Florida, School Board, COP, Series A, 5.25% due
6/01/2027 (a) 2,048
AAA Aaa 1,100 Osceola County, Florida, Tourist Development Tax Revenue Bonds,
Series A, 5.50% due 10/01/2027 (c) 1,144
AAA Aaa 1,500 Palm Beach County, Florida, Criminal Justice Facilities Revenue
Bonds, 7.20% due 6/01/2015 (c) 1,891
Palm Beach County, Florida, School Board, COP, Series A:
AAA Aaa 5,000 6% due 8/01/2010 (c)(l) 5,794
AAA Aaa 1,500 5.50% due 8/01/2022 (a) 1,606
AAA Aaa 1,000 Pasco County, Florida, Sales Tax Revenue Bonds (Half-Cent), 5% due
12/01/2033 (a) 995
NR* Aaa 1,000 Pembroke Pines, Florida, Public Improvement Revenue Bonds, Series A,
5% due 10/01/2034 (a) 995
NR* Aaa 1,460 Polk County, Florida, Utility System Revenue Bonds, 5% due
10/01/2029 (c) 1,461
NR* Aaa 1,055 Port St. Lucie, Florida, Utility Revenue Bonds, 5.25% due 9/01/2024 (b) 1,096
AAA Aaa 1,350 Saint Lucie County, Florida, School Board, COP (Master Lease Program),
Series A, 5% due 7/01/2028 (f) 1,345
NR* Aaa 1,405 Saint Petersburg, Florida, Professional Sports Facility, Sales Tax
Revenue Refunding Bonds, 5.125% due 10/01/2019 (f) 1,475
AAA Aaa 4,920 Sarasota County, Florida, Utility System Revenue Bonds, 6.50% due
10/01/2004 (c)(l) 5,127
AAA NR* 2,000 South Broward, Florida, Hospital District Revenue Bonds, DRIVERS,
Series 337, 9.832% due 5/01/2032 (b)(j) 2,258
A- A2 1,000 South Lake County, Florida, Hospital District Revenue Bonds (South
Lake Hospital Inc.), 5.80% due 10/01/2034 1,016
AAA Aaa 1,240 Stuart, Florida, Public Utilities Revenue Refunding and Improvement
Bonds, 5.25% due 10/01/2024 (c) 1,285
AA Aa2 750 Tampa, Florida, Water and Sewer Revenue Refunding Bonds, Series A, 5%
due 10/01/2026 752
AAA Aaa 1,060 Tohopekaliga, Florida, Water Authority, Utility System Revenue
Refunding Bonds, Series A, 5% due 10/01/2028 (f) 1,061
Village Center Community Development District, Florida, Utility
Revenue Bonds (b):
AAA Aaa 2,585 5.25% due 10/01/2023 2,684
AAA Aaa 4,000 5.125% due 10/01/2028 4,058
AAA Aaa 4,300 5% due 10/01/2036 4,215
New Jersey--0.6%
BBB Baa3 735 Tobacco Settlement Financing Corporation of New Jersey Revenue
Bonds, 7% due 6/01/2041 721
Puerto Rico--14.7%
Children's Trust Fund Project of Puerto Rico, Tobacco Settlement
Revenue Refunding Bonds:
BBB Baa3 1,110 5.375% due 5/15/2033 1,044
BBB Baa3 700 5.50% due 5/15/2039 648
AAA NR* 7,500 Puerto Rico Commonwealth, GO, Refunding, DRIVERS, Series 232,
9.657% due 7/01/2017 (g)(j) 9,183
AAA Aaa 1,970 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series II,
5.375% due 7/01/2019 (b) 2,150
BBB+ Baa3 1,145 Puerto Rico Public Finance Corporation Revenue Bonds, Commonwealth
Appropriation, Series E, 5.70% due 8/01/2025 1,200
NR* Aaa 3,550 Puerto Rico Public Finance Corporation, Revenue Refunding Bonds, RIB,
Series 522X, 9.41% due 8/01/2022 (b)(j) 4,042
Total Municipal Bonds (Cost--$175,158)--146.3% 181,803
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
Schedule of Investments (concluded) (In Thousands)
Shares
Held Short-Term Securities Value
3,919 Merrill Lynch Institutional Tax-Exempt Fund (m) $ 3,919
Total Short-Term Securities (Cost--$3,919)--3.1% 3,919
Total Investments (Cost--$179,077)--149.4% 185,722
Liabilities in Excess of Other Assets--(1.1%) (1,428)
Preferred Shares, at Redemption Value--(48.3%) (60,011)
---------
Net Assets Applicable to Common Shares--100.0% $ 124,283
=========
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
(a)AMBAC Insured.
(b)MBIA Insured.
(c)FGIC Insured.
(d)GNMA Collateralized.
(e)FNMA Collateralized.
(f)FSA Insured.
(g)XL Capital Insured.
(h)Escrowed to maturity.
(i)FHLMC 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, 2004.
(k)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at April 30, 2004.
(l)Prerefunded.
(m)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 (1,800) $16
Forward interest rate swaps entered into as of April 30, 2004 were
as follows:
(in Thousands)
Unrealized
Notional Appreciation
Amount (Depreciation)
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate and
pay a fixed rate equal to 3.581%
Broker, J.P. Morgan Chase Bank
Expires May 2014 $ 7,300 $ 146
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate and
pay a fixed rate equal to 3.744%
Broker, J.P. Morgan Chase Bank
Expires July 2014 $ 7,300 87
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate and
pay a fixed rate equal to 4.46%
Broker, J.P. Morgan Chase Bank
Expires July 2024 $10,000 (66)
------
Total $ 167
======
See Notes to Financial Statements.
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
Statement of Net Assets
As of April 30, 2004
Assets
Investments in unaffiliated securities, at value
(identified cost--$175,158,135) $ 181,803,610
Investments in affiliated securities, at value (identified cost--$3,918,831) 3,918,831
Cash 1,396,215
Unrealized appreciation on forward interest rate swaps 167,025
Receivables:
Interest $ 2,418,793
Dividends from affiliates 95 2,418,888
---------------
Prepaid expenses 4,406
---------------
Total assets 189,708,975
---------------
Liabilities
Payables:
Securities purchased 5,263,668
Investment adviser 88,083
Dividends to Common Shareholders 48,630
Other affiliates 1,302 5,401,683
---------------
Accrued expenses 13,413
---------------
Total liabilities 5,415,096
---------------
Preferred Shares
Preferred Shares, at redemption value, par value $.05 per share
(2,400 Series A Shares of AMPS* issued and outstanding at
$25,000 per share liquidation preference) 60,011,160
---------------
Net Assets Applicable to Common Shares
Net assets applicable to Common Shares $ 124,282,719
===============
Analysis of Net Assets Applicable to Common Shares
Common Shares, par value $.10 per share (8,440,456 shares issued and
outstanding) $ 844,046
Paid-in capital in excess of par 117,649,821
Undistributed investment income--net $ 1,990,087
Accumulated realized capital losses on investments--net (3,013,735)
Unrealized appreciation on investments--net 6,812,500
---------------
Total accumulated earnings--net 5,788,852
---------------
Total--Equivalent to $14.72 net asset value per share of Common Share
(market price--$13.40) $ 124,282,719
===============
*Auction Market Preferred Shares.
See Notes to Financial Statements.
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
Statement of Operations
For the Six Months Ended April 30, 2004
Investment Income
Interest $ 4,822,102
Dividends from affiliates 16,323
---------------
Total income 4,838,425
---------------
Expenses
Investment advisory fees $ 471,637
Commission fees 75,032
Accounting services 40,493
Professional fees 27,572
Transfer agent fees 18,240
Printing and shareholder reports 17,205
Trustees' fees and expenses 12,817
Listing fees 10,474
Custodian fees 6,235
Pricing fees 5,062
Other 13,929
---------------
Total expenses before reimbursement 698,696
Reimbursement of expenses (3,943)
---------------
Total expenses after reimbursement 694,753
---------------
Investment income--net 4,143,672
---------------
Realized & Unrealized Gain (Loss) on Investments--Net
Realized gain on investments--net 28,529
Change in unrealized appreciation on investments--net (2,625,592)
---------------
Total realized and unrealized loss on investments--net (2,597,063)
---------------
Dividends to Preferred Shareholders
Investment income--net (266,304)
---------------
Net Increase in Net Assets Resulting from Operations $ 1,280,305
===============
See Notes to Financial Statements.
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
Statements of Changes in Net Assets
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2004 2003
Operations
Investment income--net $ 4,143,672 $ 8,840,171
Realized gain on investments--net 28,529 975,656
Change in unrealized appreciation on investments--net (2,625,592) (1,498,457)
Dividends to Preferred Shareholders (266,304) (601,728)
--------------- ---------------
Net increase in net assets resulting from operations 1,280,305 7,715,642
--------------- ---------------
Dividends to Common Shareholders
Investment income--net (3,912,151) (7,748,339)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Shareholders (3,912,151) (7,748,339)
--------------- ---------------
Net Assets Applicable to Common Shares
Total decrease in net assets applicable to Common Shares (2,631,846) (32,697)
Beginning of period 126,914,565 126,947,262
--------------- ---------------
End of period* $ 124,282,719 $ 126,914,565
=============== ===============
*Undistributed investment income--net $ 1,990,087 $ 2,024,870
=============== ===============
See Notes to Financial Statements.
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
Financial Highlights
The following per share data and ratios have been derived For the Six
from information provided in the financial statements. Months Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 2004 2003 2002 2001++++ 2000++++
Per Share Operating Performance
Net asset value, beginning of period $ 15.04 $ 15.04 $ 14.94 $ 13.89 $ 13.30
------------ ---------- ---------- ---------- ----------
Investment income--net .49+++ 1.05+++ 1.04 1.00 1.02
Realized and unrealized gain (loss) on
investments--net (.32) (.06) .06 1.06 .61
Dividends and distributions to Preferred
Shareholders:
Investment income--net (.03) (.07) (.10) (.23) (.29)
Realized gain on investments--net -- -- --++ -- --
------------ ---------- ---------- ---------- ----------
Total from investment operations .14 .92 1.00 1.83 1.34
------------ ---------- ---------- ---------- ----------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.46) (.92) (.90) (.78) (.75)
Realized gain on investments--net -- -- --++ -- --
------------ ---------- ---------- ---------- ----------
Total dividends and distributions to Common
Shareholders (.46) (.92) (.90) (.78) (.75)
------------ ---------- ---------- ---------- ----------
Net asset value, end of period $ 14.72 $ 15.04 $ 15.04 $ 14.94 $ 13.89
============ ========== ========== ========== ==========
Market price per share, end of period $ 13.40 $ 14.18 $ 14.30 $ 14.21 $ 12.125
============ ========== ========== ========== ==========
Total Investment Return**
Based on market price per share (2.46%)+++++ 5.56% 7.19% 24.17% 6.45%
============ ========== ========== ========== ==========
Based on net asset value per share 1.03%+++++ 6.45% 7.22% 13.96% 11.17%
============ ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Shares
Total expenses, net of reimbursement*** 1.08%* 1.08% 1.11% 1.15% 1.14%
============ ========== ========== ========== ==========
Total expenses*** 1.08%* 1.08% 1.11% 1.15% 1.14%
============ ========== ========== ========== ==========
Total investment income--net*** 6.42%* 6.86% 7.02% 6.90% 7.55%
============ ========== ========== ========== ==========
Amount of dividends to Preferred Shareholders .41%* .47% .67% 1.58% 2.13%
============ ========== ========== ========== ==========
Investment income--net, to Common Shareholders 6.01%* 6.39% 6.35% 5.32% 5.42%
============ ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common & Preferred Shares***
Total expenses, net of reimbursement .74%* .74% .75% .77% .75%
============ ========== ========== ========== ==========
Total expenses .74%* .74% .75% .77% .75%
============ ========== ========== ========== ==========
Total investment income--net 4.39%* 4.67% 4.74% 4.63% 4.94%
============ ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Shares
Dividends to Preferred Shareholders .89%* 1.00% 1.39% 3.21% 4.03%
============ ========== ========== ========== ==========
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
Financial Highlights (concluded)
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2004 2003 2002 2001++++ 2000++++
Supplemental Data
Net assets applicable to Common Shares,
end of period (in thousands) $ 124,283 $ 126,915 $ 126,947 $ 126,035 $ 117,201
============ ========== ========== ========== ==========
Preferred Shares outstanding, end of period
(in thousands) $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000
============ ========== ========== ========== ==========
Portfolio turnover 11.16% 47.21% 40.55% 78.48% 40.41%
============ ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 3,071 $ 3,115 $ 3,116 $ 3,101 $ 2,953
============ ========== ========== ========== ==========
Dividends Per Share on Preferred Shares Outstanding
Investment income--net $ 111 $ 251 $ 348 $ 803 $ 1,010
============ ========== ========== ========== ==========
*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.
+++Based on average shares outstanding.
+++++Aggregate total investment return.
See Notes to Financial Statements.
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
Notes to Financial Statements
1. Significant Accounting Policies:
MuniYield Florida Insured Fund (the "Fund") is registered under the
Investment Company Act of 1940, as amended, 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. Actual results
may differ from these 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 last available
bid price in the over-the-counter markets or on the basis of yield
equivalents as obtained by the Fund's pricing service from one or
more 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). Swap
agreements are valued by quoted fair values received daily by the
Fund from the counterparty. Short-term investments with a remaining
maturity 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
Trustee's 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 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
movements 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 itwas closed.
* Options--The Fund may purchase and write call and 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).
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
Notes to Financial Statements (continued)
Written and purchased options are non-income producing investments.
* Forward interest rate swaps--The Fund may enter into forward
interest rate swaps. In a forward interest rate swap, the Fund and
the counterparty agree to make periodic net payments on a specified
notional contract amount, commencing on a specified future effective
date, unless terminated earlier. 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. Divided
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,
2004, FAM reimbursed the Fund in the amount of $3,943.
For the six months ended April 30, 2004, the Fund reimbursed FAM
$1,910 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, 2004 were $24,559,889 and
$20,431,139, respectively.
Net realized gains (losses) for the six months ended April 30, 2004
and net unrealized appreciation as of April 30, 2004 were as
follows:
Realized Unrealized
Gains (Losses) Appreciation
Long-term investments $ 298,680 $ 6,645,475
Forward interest rate swaps (270,151) 167,025
-------------- --------------
Total $ 28,529 $ 6,812,500
============== ==============
As of April 30, 2004, net unrealized appreciation for Federal income
tax purposes aggregated $6,627,785, of which $7,414,346 related to
appreciated securities and $786,561 related to depreciated
securities. The aggregate cost of investments at six months ended
April 30, 2004 for Federal income tax purposes was $179,094,656.
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.
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
Notes to Financial Statements (concluded)
Preferred Shares
Auction Market Preferred Shares 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, 2004 was .97%.
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, 2004 Merrill Lynch, Pierce, Fenner & Smith Incorporated,
an affiliate of FAM, earned $33,528 as commissions.
5. Capital Loss Carryforward:
On October 31, 2003, the Fund had a net capital loss carryforward
of $2,028,136, 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 $.078000 per share on May 27, 2004 to
shareholders of record on May 14, 2004.
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 stable level of dividend
distributions, the Fund may at times pay out less than the entire
amount of net investment income earned in any particular month and
may at times in any particular month pay out such accumulated but
undistributed income in addition to net investment income earned in
that month. As a result, the dividends paid by the Fund for any
particular month may be more or less than the amount of net
investment income earned by the Fund during such month. The Fund's
current accumulated but undistributed net investment income, if any,
is disclosed in the Statement of Net Assets, which comprises part of
the financial information included in this report.
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
Officers and Trustees
Terry K. Glenn, President and Trustee
Donald W. Burton, Trustee
M. Colyer Crum, Trustee
Laurie Simon Hodrick, Trustee
David H. Walsh, 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
Phillip S. Gillespie, Secretary
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
101 Barclay Street - 7 West
New York, NY 10286
NYSE Symbol
MFT
Electronic Delivery
The Fund offers electronic delivery of communications to its
shareholders. In order to receive this service, you must
register your account and provide us with e-mail information.
To sign up for this service, simply access this website
http://www.icsdelivery.com/live and follow the instructions.
When you visit this site, you will obtain a personal identification
number (PIN). You will need this PIN should you wish to update your
e-mail address, choose to discontinue this service and/or make any
other changes to the service. This service is not available for
certain retirement accounts at this time.
MUNIYIELD FLORIDA INSURED FUND, APRIL 30, 2004
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this
semi-annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to
this semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable to
this semi-annual report
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for
Closed-End Management Investment Companies - Not Applicable to this
semi-annual report
Item 8 - Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers - Not Applicable
Item 9 - Submission of Matters to a Vote of Security Holders - Not
Applicable
Item 10 - Controls and Procedures
10(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.
10(b) - There were no changes in the registrant's internal control
over financial reporting (as defined in Rule 30a-3(d) under the Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal half-year
of the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
Item 11 - Exhibits attached hereto
11(a)(1) - Code of Ethics - Not Applicable to this semi-annual
report
11(a)(2) - Certifications - Attached hereto
11(a)(3) - Not Applicable
11(b) - Certifications - 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 18, 2004
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 18, 2004
By: _/s/ Donald C. Burke________
Donald C. Burke,
Chief Financial Officer of
MuniYield Florida Insured Fund
Date: June 18, 2004