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 811-7138
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: 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 New Jersey
Insured Fund, Inc.
Semi-Annual Report
April 30, 2004
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.
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 Securities and Exchange Commission's website at
http://www.sec.gov.
MuniYield New Jersey Insured Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
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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, net of dividends to Preferred Stock, 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. As of April 30,
2004, the percentage of the Fund's total net assets invested in
inverse floaters was 15.55%.
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, 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 Director
MUNIYIELD NEW JERSEY INSURED FUND, INC., APRIL 30, 2004
A Discussion With Your Fund's Portfolio Manager
Interest rates remained at historic lows during the period, and we
found it prudent to maintain our focus on generating yield and
limiting the Fund's sensitivity to future interest rate changes.
Describe the market environment relative to municipal bonds during
the fiscal year.
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) for the remainder of the period. At the end of April,
long-term U.S. Treasury bond yields had climbed to 5.13%, 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.
Overall, demand for tax-exempt municipal bonds has remained
positive. 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 State of New Jersey during the period.
At period-end, New Jersey had credit ratings of AA from Standard &
Poor's, Aa2 from Moody's and AA from Fitch. In early March, however,
Moody's placed the state's credit rating under review for a possible
downgrade.
Following two years of tax-revenue shortfalls, New Jersey's
projected revenues for the current fiscal year, ending June 30,
2004, were more optimistic than forecasted, thanks primarily to
better-than-expected income tax and sales tax receipts - both signs
of a recovering economy. Underscoring the economy's recovery was a
substantial decline in the state's unemployment rate, which was
5.4% in February 2004, down from 6.0% the prior year and below the
national average of 5.6%.
In February, Governor James McGreevey introduced his 2005 state
budget. Despite projecting a modest general fund surplus, the new
budget remains out of balance because it relies on the use of a
number of one-time revenues - including an expected $1.5 billion in
bonds backed by cigarette tax revenues and revenues from a proposed
vehicle surcharge for "unsafe driving." Measured as a percentage of
general fund revenues, New Jersey's projected 2005 budget deficit is
one of the nation's highest. For the third straight year, the budget
does not include any proposed increases in state income tax or sales
tax rates. However, the state authorized higher corporate taxes,
effective in 2003, and a hotel occupancy tax that takes effect this
year. Governor McGreevey's 2005 budget also proposes an increase in
state cigarette taxes, already the highest in the nation. In recent
months, New Jersey has authorized a significant amount of new debt
issuance, including $6.2 billion worth of school construction bonds
and $650 million annually for transportation trust 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 Stock of
MuniYield New Jersey Insured Fund, Inc. had net annualized yields of
6.32% and 6.85%, based on a period-end per share net asset value of
$14.86 and a per share market price of $13.70, respectively, and
$.468 per share income dividends. Over the same period, the total
investment return on the Fund's Common Stock was +.52%, based on a
change in per share net asset value from $15.25 to $14.86, and
assuming reinvestment of $.468 per share ordinary income dividends.
MUNIYIELD NEW JERSEY INSURED FUND, INC., APRIL 30, 2004
For the six-month period ended April 30, 2004, the Fund's Auction
Market Preferred Stock (AMPS) had an average yield of .86%.
The Fund's total return, based on net asset value, lagged that
of its comparable Lipper category of New Jersey Municipal Debt
Funds, which had an average return of +2.00% for the six-month
period. (Funds in this Lipper category limit their investment
to those securities exempt from taxation in New Jersey, or a
city in New Jersey.) The Fund's relative underperformance is
primarily attributed to three factors. First was the portfolio's
defensive positioning. Given our concerns about the market
environment - specifically, the negative price effect associated
with rising interest rates - we sought to shorten the Fund's
duration relative to our peers in order to limit the Fund's
sensitivity to interest rate moves. Interest rates, however,
remained low for much of the period, which hurt performance compared
to the Fund's more aggressive peers. Second, several Funds within
the Lipper category use leverage (borrowing) to a greater extent
than we do. Leverage benefits shareholders when interest rates are
falling or stable, as was the case during the past six months, but
can hinder results when interest rates are rising. Finally, unlike
many of its peers, the Fund is an insured product and, therefore, is
precluded from investing widely in speculative grade bonds, which
were among the market's best performers during the period.
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 Stock (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 Stock 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?
A significant decline in the issuance of New Jersey tax-exempt bonds
restricted our ability to make substantial changes to the portfolio.
Over the past six months, approximately $5.5 billion in bonds was
issued by New Jersey municipalities, representing a decline of
roughly 26% compared to the same period a year ago.
We kept the Fund's cash reserves at minimal levels while maintaining
above-average allocations to general obligation and other tax-backed
issues. In addition, because of our favorable assessment of credit
spreads, we invested close to the Fund's allowable limit in
uninsured securities, which we believed offered a compelling balance
of risk and reward. Nevertheless, the Fund continued to be at a
competitive disadvantage; this is typical of insured portfolios in
an environment in which speculative grade and non-rated bonds are
among the market's best performers.
In terms of leverage, the Fund's borrowing costs remained below 1%
throughout most of the six-month period. These attractive funding
levels, in combination with the steep municipal yield curve,
continued to generate significant income to the Fund's Common Stock
shareholders. 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 should not have a
material impact on the positive advantage leverage has had on the
Fund's Common Stock yield. However, should the spread between short-
term and long-term interest rates narrow, the benefits of leveraging
will decline and, as a result, reduce the yield on the Fund's Common
Stock. At the end of the period, the Fund's leverage amount, due to
AMPS, was 30.08% of total assets. (For a more 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?
Late in the period, as interest rates rose modestly, we elected to
moderate the portfolio's defensive stance and position the Fund more
neutrally. We also remained fully invested in an effort to enhance
investment income for our shareholders. Against a backdrop of
continuing geopolitical and economic uncertainty, we anticipate
significant market volatility ahead. Until some of this uncertainty
dissipates, we believe that maintaining the Fund's generally
conservative investment strategy remains appropriate.
Theodore R. Jaeckel Jr.
Vice President and Portfolio Manager
May 13, 2004
MUNIYIELD NEW JERSEY INSURED FUND, INC., APRIL 30, 2004
Schedule of Investments (In Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
New Jersey--127.6%
AAA Aaa $ 4,765 Cape May County, New Jersey, Industrial Pollution Control Financing
Authority Revenue Bonds (Atlantic City Electric Company Project),
AMT, Series A, 7.20% due 11/01/2029 (d) $ 4,980
AAA Aaa 3,010 Carteret, New Jersey, Board of Education, COP, 6.75% due
10/15/2004 (d)(e) 3,146
Delaware River Joint Toll Bridge Commission of Pennsylvania and New
Jersey, Bridge Revenue Refunding Bonds:
A- A2 1,875 5% due 7/01/2023 1,878
A- A2 1,000 5% due 7/01/2028 991
Delaware River Port Authority of Pennsylvania and New Jersey
Revenue Bonds:
AAA Aaa 3,000 5.40% due 1/01/2016 (b) 3,195
NR* Aaa 2,500 RIB, Series 396, 10.603% due 1/01/2019 (c)(f) 3,118
NR* Aaa 790 Essex County, New Jersey, Improvement Authority Revenue Bonds,
Series A, 5% due 10/01/2028 (b) 796
AAA Aaa 6,925 Garden State Preservation Trust, New Jersey, Capital Appreciation
Revenue Bonds, Series B, 5.12%** due 11/01/2023 (c) 2,482
AAA Aaa 3,365 Garden State Preservation Trust, New Jersey, Revenue Bonds, Series A,
5% due 11/01/2020 (c) 3,486
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 2,277
AAA Aaa 1,000 Hudson County, New Jersey, COP, Refunding, 6.25% due 12/01/2016 (d) 1,184
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) 8,567
Jackson Township, New Jersey, School District, GO (b):
AAA Aaa 2,880 5% due 4/15/2017 3,012
AAA Aaa 5,200 5% due 4/15/2020 5,362
AAA Aaa 3,750 Jersey City, New Jersey, Sewer Authority, Sewer Revenue Refunding
Bonds, 6.25% due 1/01/2014 (a) 4,385
AAA Aaa 2,000 Middlesex County, New Jersey, COP, Refunding, 5% due 8/01/2022 (d) 2,047
Monmouth County, New Jersey, Improvement Authority, Governmental Loan
Revenue Bonds (a):
AAA Aaa 735 5.20% due 12/01/2014 790
AAA Aaa 2,305 5.25% due 12/01/2015 2,468
Monmouth County, New Jersey, Improvement Authority, Governmental Loan
Revenue Refunding Bonds (a):
AAA Aaa 1,695 5% due 12/01/2017 1,763
AAA Aaa 1,520 5% due 12/01/2018 1,574
AAA Aaa 1,540 5% due 12/01/2019 1,589
BBB- NR* 1,000 New Jersey EDA, First Mortgage Revenue Bonds (Fellowship Village),
Series C, 5.50% due 1/01/2028 947
BBB- NR* 1,700 New Jersey EDA, First Mortgage Revenue Refunding Bonds (Fellowship
Village), Series A, 5.50% due 1/01/2018 1,703
NR* Aaa 3,000 New Jersey EDA, Natural Gas Facilities Revenue Refunding Bonds
(NUI Corporation), RIB, Series 371, 11.32% due 10/01/2022 (a)(f) 3,232
New Jersey EDA, Revenue Bonds:
AAA Aaa 3,390 (School Facilities Construction), Series 2003F, 5% due 6/15/2024 (b) 3,442
AAA Aaa 9,080 (Transportation Project Sublease), Series A, 5.875% due
5/01/2009 (c)(e) 10,291
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, 2004
Schedule of Investments (continued) (In Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
New Jersey (continued)
NR* Aaa $ 2,535 New Jersey EDA, Water Facilities Revenue Bonds, RIB, AMT,
Series 417, 12.35% due 11/01/2034 (b)(f) $ 2,755
AAA Aaa 2,515 New Jersey EDA, Water Facilities Revenue Refunding Bonds
(American Water), AMT, Series B, 5.125% due 4/01/2022 (a) 2,553
New Jersey Health Care Facilities Financing Authority Revenue Bonds:
NR* Baa2 1,125 (Somerset Medical Center), 5.50% due 7/01/2033 1,093
NR* Baa1 4,000 (South Jersey Hospital), 6% due 7/01/2026 4,132
New Jersey Health Care Facilities Financing Authority, Revenue
Refunding Bonds:
A- A3 615 (Atlantic City Medical Center), 6.25% due 7/01/2017 672
A- A3 1,315 (Atlantic City Medical Center), 5.75% due 7/01/2025 1,363
BBB+ NR* 2,425 (Holy Name Hospital), 6% due 7/01/2025 2,467
AAA Aaa 2,250 (Meridian Health System Obligation Group), 5.25% due 7/01/2019 (c) 2,358
New Jersey Sports and Exposition Authority, Luxury Tax Revenue
Refunding Bonds (Convention Center) (d):
AAA Aaa 2,000 5% due 9/01/2017 2,075
AAA Aaa 1,000 5.50% due 3/01/2022 1,095
AAA Aaa 3,200 New Jersey State Educational Facilities Authority, Higher Education,
Capital Improvement Revenue Bonds, Series A, 5.125% due 9/01/2022 (a) 3,304
New Jersey State Educational Facilities Authority, Revenue Refunding
Bonds (William Paterson University), Series E (g):
AAA Aaa 1,440 5.375% due 7/01/2017 1,549
AAA Aaa 1,725 5% due 7/01/2021 1,766
AAA Aaa 7,105 New Jersey State Higher Education Assistance Authority, Student Loan
Revenue Bonds, AMT, Series A, 5.30% due 6/01/2017 (a) 7,363
AAA Aaa 3,150 New Jersey State Housing and Mortgage Finance Agency, Home Buyer
Revenue Bonds, AMT, Series CC, 5.80% due 10/01/2020 (d) 3,304
AAA Aaa 2,530 New Jersey State Housing and Mortgage Finance Agency, M/F Housing
Revenue Refunding Bonds, Series A, 6.05% due 11/01/2020 (a) 2,609
AAA Aaa 5,350 New Jersey State Transit Corporation, COP, 6.50% due 4/01/2007 (c)(e) 6,039
New Jersey State Transportation Trust Fund Authority, Transportation
System Revenue Bonds:
AAA Aaa 1,500 Series A, 5% due 6/15/2018 (c) 1,551
AAA Aaa 2,750 Series B, 5% due 6/15/2013 (a) 2,916
AAA Aaa 2,160 New Jersey State Transportation Trust Fund Authority, Transportation
System Revenue Refunding Bonds, Series B, 6% due 12/15/2011 (d)(e) 2,511
AAA Aaa 2,500 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds,
Series A, 5.75% due 1/01/2019 (d) 2,764
Port Authority of New York and New Jersey, Consolidated Revenue Bonds:
AAA Aaa 4,000 AMT, 97th Series, 6.65% due 1/15/2023 (b) 4,163
AA- A1 1,000 93rd Series, 6.125% due 6/01/2094 1,104
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) 3,602
AAA Aaa 4,075 Port Authority of New York and New Jersey, Revenue Bonds, Trust Receipts,
AMT, Class R, Series 10, 10.34% due 1/15/2017 (c)(f) 4,710
AAA Aaa 3,180 Port Authority of New York and New Jersey, Revenue Refunding Bonds,
DRIVERS, AMT, Series 153, 9.10% due 9/15/2012 (b)(f) 3,432
A NR* 2,200 South Jersey, New Jersey, Revenue Refunding Bonds (Port Corporation),
5% due 1/01/2023 2,203
Tobacco Settlement Financing Corporation of New Jersey Revenue Bonds:
BBB Baa3 1,870 6.75% due 6/01/2039 1,751
BBB Baa3 2,845 7% due 6/01/2041 2,789
MUNIYIELD NEW JERSEY INSURED FUND, INC., APRIL 30, 2004
Schedule of Investments (concluded) (In Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
New Jersey (concluded)
Union County, New Jersey, Utilities Authority, Senior Lease Revenue
Refunding Bonds (Ogden Martin System of Union), AMT, Series A (a)(f):
AAA Aaa $ 1,590 5.375% due 6/01/2017 $ 1,640
AAA Aaa 1,670 5.375% due 6/01/2018 1,716
University of Medicine and Dentistry, New Jersey, Revenue Bonds,
Series A (a):
AAA Aaa 570 5.50% due 12/01/2018 621
AAA Aaa 1,145 5.50% due 12/01/2019 1,244
AAA Aaa 1,130 5.50% due 12/01/2020 1,226
AAA Aaa 865 5.50% due 12/01/2021 936
Guam--1.0%
AAA Aaa 1,210 A.B. Won Guam International Airport Authority, General Revenue
Refunding Bonds, Series A, 5.25% due 10/01/2022 (d) 1,263
Puerto Rico--9.9%
AAA Aaa 1,020 Puerto Rico Commonwealth, GO, Refunding, 5.50% due 7/01/2013 (b) 1,148
AAA Aaa 1,500 Puerto Rico Commonwealth Highway and Transportation Authority,
Transportation Revenue Refunding Bonds, Series J, 5% due 7/01/2029 (d) 1,524
AAA Aaa 1,830 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series HH,
5.25% due 7/01/2029 (c) 1,874
NR* Aa2 2,110 Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Revenue Bonds (Ascension Health),
RIB, Series 377, 10.86% due 11/15/2030 (f) 2,462
AAA NR* 5,250 Puerto Rico Public Buildings Authority Revenue Bonds, DRIVERS,
Series 211, 9.157% due 7/01/2021 (d)(f) 5,874
Total Municipal Bonds (Cost--$170,959 )--138.5% 180,226
Shares
Held Short-Term Securities
720 CMA New Jersey Municipal Money Fund (h) 720
Total Short-Term Securities (Cost--$720)--0.5% 720
Total Investments (Cost--$171,679)--139.0% 180,946
Other Assets Less Liabilities--4.0% 5,229
Preferred Stock, at Redemption Value--(43.0%) (56,010)
---------
Net Assets Applicable to Common Stock--100.0% $ 130,165
=========
(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, 2004.
(g)XL Capital Insured.
(h)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
CMA New Jersey Municipal
Money Fund (6,383) $13
*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, 2004
Statement of Net Assets
As of April 30, 2004
Assets
Investments in unaffiliated securities, at value
(identified cost--$170,958,781) $ 180,225,874
Investments in affiliated securities, at value (identified cost--$719,964) 719,964
Cash 1,138,510
Receivables:
Securities sold $ 3,221,725
Interest 3,213,722
Dividends from affiliates 9 6,435,456
---------------
Prepaid expenses 4,400
---------------
Total assets 188,524,204
---------------
Liabilities
Payables:
Securities purchased 2,100,144
Dividends to Common Stock shareholders 144,236
Investment adviser 89,034
Other affiliates 1,311 2,334,725
---------------
Accrued expenses 14,795
---------------
Total liabilities 2,349,520
---------------
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) 56,009,677
---------------
Net Assets Applicable to Common Stock
Net assets applicable to Common Stock $ 130,165,007
===============
Analysis of Net Assets Applicable to Common Stock
Common Stock, par value $.10 per share (8,758,488 shares issued and
outstanding) $ 875,849
Paid-in capital in excess of par 122,888,953
Undistributed investment income--net $ 1,982,665
Accumulated realized capital losses on investments--net (4,849,553)
Unrealized appreciation on investments--net 9,267,093
---------------
Total accumulated earnings--net 6,400,205
---------------
Total--Equivalent to $14.86 net asset value per share of Common Stock
(market price--$13.70) $ 130,165,007
===============
*Auction Market Preferred Stock.
See Notes to Financial Statements.
MUNIYIELD NEW JERSEY INSURED FUND, INC., APRIL 30, 2004
Statement of Operations
For the Six Months Ended April 30, 2004
Investment Income
Interest $ 5,125,194
Dividends from affiliates 13,276
---------------
Total income 5,138,470
---------------
Expenses
Investment advisory fees $ 475,310
Commission fees 69,620
Accounting services 40,426
Professional fees 27,918
Printing and shareholder reports 21,249
Transfer agent fees 19,944
Directors' fees and expenses 12,607
Listing fees 10,414
Custodian fees 5,123
Pricing fees 4,376
Other 13,316
---------------
Total expenses before reimbursement 700,303
Reimbursement of expenses (13,817)
---------------
Total expenses after reimbursement 686,486
---------------
Investment income--net 4,451,984
---------------
Realized & Unrealized Loss on Investments--Net
Realized loss on investments--net (683,404)
Change in unrealized appreciation on investments--net (2,800,972)
---------------
Total realized and unrealized loss on investments--net (3,484,376)
---------------
Dividends to Preferred Stock Shareholders
Investment income--net (238,918)
---------------
Net Increase in Net Assets Resulting from Operations $ 728,690
===============
See Notes to Financial Statements.
MUNIYIELD NEW JERSEY INSURED FUND, INC., APRIL 30, 2004
Statements of Changes in Net Assets
For the For the
Six Months Year
Ended Ended
April 30, October 31,
Increase (Decrease) in Net Asset Value: 2004 2003
Operations
Investment income--net $ 4,451,984 $ 9,256,714
Realized gain (loss) on investments--net (683,404) 351,871
Change in unrealized appreciation on investments--net (2,800,972) 3,424
Dividends and distributions to Preferred Stock shareholders (238,918) (514,304)
--------------- ---------------
Net increase in net assets resulting from operations 728,690 9,097,705
--------------- ---------------
Dividends & Distributions to Common Stock Shareholders
Investment income--net (4,093,110) (8,172,716)
Realized gain on investments--net -- (46,866)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions to
Common Stock shareholders (4,093,110) (8,219,582)
--------------- ---------------
Common Stock Transactions
Value of shares issued to Common Stock shareholders in reinvestment of
dividends and distributions 289,289 216,321
--------------- ---------------
Net Assets Applicable to Common Stock
Total increase (decrease) in net assets applicable to Common Stock (3,075,131) 1,094,444
Beginning of period 133,240,138 132,145,694
--------------- ---------------
End of period* $ 130,165,007 $ 133,240,138
=============== ===============
*Undistributed investment income--net $ 1,982,665 $ 1,862,709
=============== ===============
See Notes to Financial Statements.
MUNIYIELD NEW JERSEY INSURED FUND, INC., 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 $ 15.25 $ 15.14 $ 15.17 $ 13.96 $ 13.48
---------- ---------- ---------- ---------- ----------
Investment income--net .51+++++ 1.06+++++ 1.07 1.04 1.03
Realized and unrealized gain (loss) on
investments--net (.40) .06 (.06) 1.21 .51
Dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.03) (.06) (.09) (.20) (.25)
Realized gain on investments--net -- --++ --++ -- --
---------- ---------- ---------- ---------- ----------
Total from investment operations .08 1.06 .92 2.05 1.29
---------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common
Stock shareholders:
Investment income--net (.47) (.94) (.94) (.84) (.81)
Realized gain on investments--net -- (.01) (.01) -- --
---------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common
Stock shareholders (.47) (.95) (.95) (.84) (.81)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 14.86 $ 15.25 $ 15.14 $ 15.17 $ 13.96
========== ========== ========== ========== ==========
Market price per share, end of period $ 13.70 $ 14.39 $ 14.45 $ 15.04 $ 13.375
========== ========== ========== ========== ==========
Total Investment Return**
Based on market price per share (1.79%)+++ 6.02% 2.30% 19.04% 12.80%
========== ========== ========== ========== ==========
Based on net asset value per share. .52%+++ 7.24% 6.27% 15.04% 10.27%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Stock
Total expenses, net of reimbursement*** 1.02%* 1.03% 1.07% 1.11% 1.11%
========== ========== ========== ========== ==========
Total expenses*** 1.04%* 1.04% 1.07% 1.11% 1.11%
========== ========== ========== ========== ==========
Total investment income--net*** 6.61%* 6.89% 7.04% 7.01% 7.56%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock
shareholders .35%* .38% .57% 1.33% 1.86%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock
shareholders 6.26%* 6.51% 6.47% 5.68% 5.70%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common & Preferred Stock***
Total expenses, net of reimbursement .72%* .73% .75% .77% .75%
========== ========== ========== ========== ==========
Total expenses .74%* .73% .75% .77% .75%
========== ========== ========== ========== ==========
Total investment income--net 4.67%* 4.85% 4.93% 4.86% 5.10%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Stock
Dividends to Preferred Stock shareholders .86%* .91% 1.32% 3.01% 3.85%
========== ========== ========== ========== ==========
MUNIYIELD NEW JERSEY INSURED FUND, INC., 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 Stock, end of
period (in thousands) $ 130,165 $ 133,240 $ 132,146 $ 131,012 $ 119,885
========== ========== ========== ========== ==========
Preferred Stock outstanding, end of period
(in thousands) $ 56,000 $ 56,000 $ 56,000 $ 56,000 $ 56,000
========== ========== ========== ========== ==========
Portfolio turnover 2.19% 24.70% 28.45% 57.25% 50.65%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 3,324 $ 3,379 $ 3,360 $ 3,340 $ 3,141
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Stock Outstanding
Investment income--net $ 107 $ 228 $ 330 $ 753 $ 966
========== ========== ========== ========== ==========
*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, 2004
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 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 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 last available
bid price in the over-the-counter market or on the basis of yield
equivalents as obtained by the Fund's pricing service from one or
more dealers that make markets in the 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
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
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 it was closed.
* Options--The Fund may 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.
MUNIYIELD NEW JERSEY INSURED FUND, INC., APRIL 30, 2004
Notes to Financial Statements (continued)
* 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. 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,
2004, FAM reimbursed the Fund in the amount of $13,817.
For the six months ended April 30, 2004, the Fund reimbursed FAM
$1,925 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, 2004 were $8,385,900 and
$3,989,600, 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 $ 147,841 $ 9,267,093
Forward interest rate swaps (831,245) --
------------- -------------
Total $ (683,404) $ 9,267,093
============= =============
As of April 30, 2004, net unrealized appreciation for Federal income
tax purposes aggregated $9,463,150, of which $9,982,342 related to
appreciated securities and $519,192 related to depreciated
securities. The aggregate cost of investments at April 30, 2004 for
Federal income tax purposes was $171,482,688.
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,
2004 and the year ended October 31, 2003 increased by 18,785 and
13,926, respectively, as a result of dividend reinvestment.
MUNIYIELD NEW JERSEY INSURED FUND, INC., APRIL 30, 2004
Notes to Financial Statements (concluded)
Preferred Stock
Auction Market Preferred Stock 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, 2004 was .90%.
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 $42,694 as commissions.
5. Capital Loss Carryforward:
On October 31, 2003, the Fund had a net capital loss carryforward of
$1,570,772, of which $492,522 expires in 2008 and $1,078,250 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 27, 2003 to
shareholders of record on May 14, 2003.
Proxy Results
During the six-month period ended April 30, 2004, 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 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 Directors: Donald W. Burton 8,084,026 378,183
David H. Walsh 8,097,381 364,828
Fred G. Weiss 8,097,344 364,865
During the six-month period ended April 30, 2004, 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 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 Directors: Donald W. Burton,
M. Colyer Crum, Laurie Simon Hodrick, David H. Walsh
and Fred G. Weiss 1,982 185
MUNIYIELD NEW JERSEY INSURED FUND, INC., APRIL 30, 2004
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 84.2%
AA/Aa 2.0
A/A 3.9
BBB/Baa 9.5
NR (Not Rated) 0.4
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 NEW JERSEY INSURED FUND, INC., APRIL 30, 2004
Officers and Directors
Terry K. Glenn, President and Director
Donald W. Burton, Director
M. Colyer Crum, Director
Laurie Simon Hodrick, Director
David H. Walsh, 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
Phillip S. Gillespie, Secretary
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
101 Barclay Street - 7 West
New York, NY 10286
NYSE Symbol
MJI
MUNIYIELD NEW JERSEY INSURED FUND, INC., APRIL 30, 2004
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 NEW JERSEY INSURED FUND, INC., 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 New Jersey Insured Fund, Inc.
By: _/s/ Terry K. Glenn_______
Terry K. Glenn,
President of
MuniYield New Jersey Insured Fund, Inc.
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 New Jersey Insured Fund, Inc.
Date: June 18, 2004
By: _/s/ Donald C. Burke________
Donald C. Burke,
Chief Financial Officer of
MuniYield New Jersey Insured Fund, Inc.
Date: June 18, 2004