UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-6500
Name of Fund: MuniYield New York 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
York 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: 10/31/03
Date of reporting period: 11/01/02 - 10/31/03
Item 1 - Attach shareholder report
[LOGO] Merrill Lynch Investment Managers www.mlim.ml.com
MuniYield New York
Insured Fund, Inc.
Annual Report
October 31, 2003
[LOGO] Merrill Lynch Investment Managers
MuniYield New York Insured Fund, Inc.
The Benefits and Risks of Leveraging
MuniYield New York 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 strong,
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 such securities. As of October 31, 2003, the percentage of the Fund's
total net assets invested in inverse floaters was 12.71%.
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.
2 MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003
A Letter From the President
Dear Shareholder
As 2003 draws to a close, it seems appropriate to reflect on what has been a
meaningful year in many respects. We saw the beginning and the end of all-out
war in Iraq, equity market uncertainty turned to strength and sub par gross
domestic product growth of 1.4% in the first quarter of 2003 grew to an
extraordinary 8.2% in the third quarter. Amid the good news, fixed income
investments, which had become the asset class of choice during the preceding
three-year equity market decline, faced new challenges.
During 2003, municipal bond yields rose and fell in reaction to geopolitical
events, equity market performance, economic activity and employment figures. By
the end of October, long-term municipal revenue bond yields were slightly higher
than they were one year earlier, at 5.24% as measured by the Bond Buyer Revenue
Bond Index. With many state deficits at record levels, municipalities issued
nearly $400 billion in new long-term tax-exempt bonds during the 12-month period
ended October 31, 2003. The availability of bonds, together with attractive
yield ratios relative to U.S. Treasury issues, made municipal bonds a popular
fixed income investment alternative.
Throughout the year, our portfolio managers continued to work diligently to
deliver on our commitment to provide superior performance within reasonable
expectations for risk and return. This included striving to outperform our peers
and the market indexes. With that said, remember that the advice and guidance of
a skilled financial advisor often can mean the difference between successful and
unsuccessful investing. A financial professional can help you choose those
investments that will best serve you as you plan for your financial future.
Finally, I am proud to premiere a new look to our shareholder communications.
Our portfolio manager commentaries have been trimmed and organized in such a way
that you can get the information you need at a glance, in plain language.
Today's markets are confusing enough. We want to help you put it all in
perspective. The report's new size also allows us certain mailing efficiencies.
Any cost savings in production or postage are passed on to the Fund and,
ultimately, to Fund shareholders.
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,
/s/ Terry K. Glenn
Terry K. Glenn
President and Director
MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003 3
[LOGO] Merrill Lynch Investment Managers
A Discussion With Your Fund's Portfolio Managers
In a period of highly variable interest rates, we generally remained
focused on enhancing the Fund's dividend stream and reducing net asset value
volatility.
Describe the market environment relative to municipal bonds during the fiscal
year.
At the end of October, long-term tax-exempt bond yields were 90% - 95% of
comparable U.S. Treasury securities, substantially exceeding their historical
average of 85% - 88%. Considering their tax-free status, this made long-term
municipal bonds an attractive investment alternative during the past 12 months.
Long-term U.S. Treasury bond yields declined throughout most of the first seven
months of the fiscal year, while bond prices -- which move in the opposite
direction of yields -- rose in response to weak equity markets, concerns about a
growing conflict in Iraq, and continued sub-par U.S. economic growth. The
Federal Reserve Board continued to lower short-term interest rates to stimulate
business and consumer economic activity. Bond yields reversed course in July and
August, rising sharply as economic conditions began to improve and as most
analysts agreed the Federal Reserve Board had finished lowering interest rates.
In mid-August, U.S. Treasury bond yields reached 5.45%, their highest level
during the period, before again moving lower and ending the 12-month period at
5.13%, 15 basis points (.15%) higher than a year earlier.
Long-term tax-exempt bond yields also rose from year-ago levels, although to a
lesser extent than U.S. Treasury bonds, as municipal bond prices typically are
less sensitive to short-term economic and geopolitical pressures. By the end of
October, long-term municipal revenue bond yields stood at 5.24%, a small
increase compared to the previous year. Yields for long-term Aaa-rated
tax-exempt bonds (the highest rated) declined 10 basis points during the past
year. The decline largely reflected investors' growing demand for high-quality
bonds, which provided valuable stability in an uncertain market.
What developments in the state of New York influenced the Fund?
Economic uncertainties made it difficult for the state to maintain budgetary
balance throughout the year. The economy put pressure on New York's revenue
receipts, particularly personal income taxes. The state closed budget gaps in
the current fiscal year and will continue to address structural balance over the
next few years.
During this period, municipal bonds related to the state's finances came under
pressure, widening yield spreads for these securities versus similarly rated
national issues. This proved to be an opportunity as the budget process was
resolved and New York bonds resumed trading at their traditional spreads.
As an insured product, the Fund must maintain a minimum of 80% of its assets in
insured municipal securities. Therefore, the widening and contracting of credit
quality spreads had a muted effect on the majority of the portfolio's holdings.
In addition, the portfolio's basket of securities that is not covered by
insurance was dominated by holdings involving issuers in Puerto Rico. Again,
changing New York credit spreads had little effect on these bonds.
How did the Fund perform during the period in light of the existing market
conditions?
For the year ended October 31, 2003, the Common Stock of MuniYield New York
Insured Fund, Inc. had a net annualized yield of 5.58%, based on a year-end per
share net asset value of $14.81 and $.827 per share income dividends. Over the
same period, the total investment return on the Fund's Common Stock was +6.19%,
based on a change in per share net asset value from $14.83 to $14.81, and
assuming reinvestment of $.827 per share ordinary income dividends.
For the six-month period ended October 31, 2003, the total investment return on
the Fund's Common Stock was +.93%, based on a change in per share net asset
value from $15.13 to $14.81, and assuming reinvestment of $.413 per share
ordinary income dividends.
The average yields for the Fund's Auction Market Preferred Stock for the six
months ended October 31, 2003 were: .93% for Series A; .83% for Series B; .86%
for Series C; 1.44% for Series D; and .78% for Series E.
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 of
the Financial Statements included in this report. As a closed-end fund, the
Fund's shares may trade in the secondary market at a premium or discount to the
Fund's net asset value. As a result, total investment returns based on
4 MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003
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.
The Fund's return, based on net asset value, trailed that of its comparable
Lipper category of New York Insured Municipal Debt Funds, which had an average
return of +7.15% for the 12-month period. We kept the Fund's duration shorter
than that of our peers for most of the period in an effort to moderate risk.
This positioning was based on our belief that the historically low interest
rates we saw during the fiscal year were not sustainable. The Fund benefited
from this approach in July and August 2003, when market interest rates rose
sharply. However, it detracted from relative performance when interest rates
otherwise remained low. As the period came to a close, statistics indicated that
the economy was growing rapidly. Accordingly, we maintained the Fund's
shorter-than-average duration in preparation for a rise in interest rates.
What changes were made to the portfolio during the period?
Our portfolio strategy during the fiscal year was focused on the dual goals of
increasing the Fund's current income accrual and reducing sensitivity to
interest rate volatility. Accomplishing these goals involved shortening the
Fund's duration. To that end, we sought to purchase securities with more
defensive structural characteristics and employed a hedging strategy involving
interest rate swaps to address the Fund's relative duration position. Because
swap securities tend to have higher coupons, they also serve to increase current
return. A higher sustained current return can eventually lead to increased
dividend distribution to shareholders.
We believe the next significant interest rate trend will be in the upward
direction. Should this scenario materialize, steps taken over the past year
should cushion any price volatility experienced by the Fund.
Borrowing costs remained extremely beneficial to the Fund's leveraging effect,
with short-term interest rates ranging between .75% and 1.25% during the year.
These attractive funding levels, in combination with a steep tax-exempt yield
curve, generated a significant benefit to the Fund's Common Stock shareholders.
Further declines in the Fund's borrowing costs would require significant easing
of monetary policy by the Federal Reserve Board. While such action is not
expected, neither is an imminent increase in short-term interest rates. 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 Stock. (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?
We believe the current low level of long-term tax-exempt interest rates should
not persist as the economic data continues to improve and widening federal and
state deficits require continued increases in borrowing going forward. The Fund
ended the period with a defensive market stance. While this should cushion the
negative price action that would result in an increasing interest rate
environment, it also causes the Fund to react slower during periods when
interest rates decline.
Walter C. O'Connor
Co-Portfolio Manager
Robert D. Sneeden
Co-Portfolio Manager
November 20, 2003
- --------------------------------------------------------------------------------
We are pleased to announce that Walter C. O'Connor and Robert D. Sneeden have
been named Co-Portfolio Managers of MuniYield New York Insured Fund, Inc. and
are primarily responsible for the day-to-day management of the portfolio. Mr.
O'Connor has been Managing Director of Merrill Lynch Investment Managers
("MLIM") since 2003, and was Director thereof from 1997 to 2003. He has been
Portfolio Manager with MLIM since 1991. Mr. Sneeden has been Vice President of
MLIM since 1998 and was Assistant Vice President and Portfolio Manager from 1994
to 1998. He has been Portfolio Manager with MLIM since 1994.
- --------------------------------------------------------------------------------
MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003 5
[LOGO] Merrill Lynch Investment Managers
Schedule of Investments (in Thousands)
S&P Moody's Face
Ratings@ Ratings@ Amount Municipal Bonds Value
====================================================================================================================================
New York -- 132.1%
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa $23,790 Albany County, New York, Airport Authority Revenue Bonds, AMT, 6%
due 12/15/2023 (c) $ 26,981
----------------------------------------------------------------------------------------------------------
Battery Park City Authority, New York, Senior Revenue Refunding
Bonds, Series A:
AAA Aaa 3,000 5.25% due 11/01/2022 3,172
AAA Aaa 3,000 5% due 11/01/2023 3,066
----------------------------------------------------------------------------------------------------------
AAA Aaa 8,200 Buffalo and Fort Erie, New York, Public Bridge Authority, Toll
Bridge System Revenue Bonds, 5.75% due 1/01/2025 (d) 8,619
----------------------------------------------------------------------------------------------------------
Buffalo, New York, School, GO, Series D (b):
AAA Aaa 1,250 5.50% due 12/15/2014 1,399
AAA Aaa 1,500 5.50% due 12/15/2016 1,673
----------------------------------------------------------------------------------------------------------
AAA Aaa 4,300 Buffalo, New York, Sewer Authority Revenue Refunding Bonds,
Series F, 6% due 7/01/2013 (b) 5,067
----------------------------------------------------------------------------------------------------------
NR* Ba2 3,750 Cicero, New York, Local Development Corporation Revenue Bonds
(Cicero Community Recreation Project), Series A, 6.75%
due 5/01/2042 3,000
----------------------------------------------------------------------------------------------------------
AAA Aaa 1,700 Dutchess County, New York, Resource Recovery Agency Revenue Bonds
(Solid Waste System--Forward), Series A, 5.40% due 1/01/2013 (d) 1,877
----------------------------------------------------------------------------------------------------------
Erie County, New York, IDA, School Facility Revenue Bonds (City
of Buffalo Project) (c):
AAA Aaa 1,900 5.75% due 5/01/2020 2,114
AAA Aaa 5,250 5.75% due 5/01/2024 5,716
----------------------------------------------------------------------------------------------------------
Huntington, New York, GO, Refunding (a):
NR* Aaa 485 5.50% due 4/15/2011 552
NR* Aaa 460 5.50% due 4/15/2012 525
NR* Aaa 455 5.50% due 4/15/2013 517
NR* Aaa 450 5.50% due 4/15/2014 511
NR* Aaa 450 5.50% due 4/15/2015 512
----------------------------------------------------------------------------------------------------------
NR* Aaa 1,675 Ilion, New York, Central School District, GO, Series B, 5.50%
due 6/15/2015 (b) 1,947
----------------------------------------------------------------------------------------------------------
Long Island Power Authority, New York, Electric System Revenue
Bonds:
AAA Aaa 9,250 Series C, 5% due 9/01/2033 (j) 9,271
A1+ VMIG1+ 4,800 VRDN, Series H, 1% due 12/01/2029 (g) 4,800
----------------------------------------------------------------------------------------------------------
AAA Aaa 2,000 Metropolitan Transportation Authority, New York, Commuter
Facilities Revenue Bonds, Series A, 5.75% due 1/01/2008 (d)(e) 2,309
----------------------------------------------------------------------------------------------------------
AAA Aaa 10,000 Metropolitan Transportation Authority, New York, Commuter
Facilities Revenue Refunding Bonds, Series B, 4.875% due
7/01/2018 (b)(h) 10,366
----------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York, Dedicated Tax
Fund Revenue Bonds, Series A:
AAA Aaa 7,280 5% due 11/15/2031 (b) 7,333
AAA Aaa 1,015 5% due 11/15/2032 (c) 1,023
----------------------------------------------------------------------------------------------------------
AAA Aaa 10,000 Metropolitan Transportation Authority, New York, Dedicated Tax
Fund Revenue Refunding Bonds, Series A, 5% due 11/15/2030 (d) 10,087
----------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York, Revenue Refunding
Bonds:
NR* Aaa 28,900 RIB, Series 724X, 10.19% due 11/15/2032 (c)(f) 34,559
AAA Aaa 2,500 Series A, 5.50% due 11/15/2018 (a) 2,758
AAA Aaa 10,000 Series A, 5% due 11/15/2030 (c) 10,087
AAA Aaa 2,500 Series A, 5.25% due 11/15/2031 (b)(c) 2,587
AAA Aaa 1,500 Series B, 5% due 11/15/2028 (d) 1,515
Portfolio Abbreviations
To simplify the listings of MuniYield New York 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
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
RIB Residual Interest Bonds
VRDN Variable Rate Demand Notes
6 MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003
Schedule of Investments (continued) (in Thousands)
S&P Moody's Face
Ratings@ Ratings@ Amount Municipal Bonds Value
====================================================================================================================================
New York (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York, Transit
Facilities Revenue Refunding Bonds:
AAA Aaa $ 350 Series B, 4.75% due 7/01/2026 (b)(h) $ 350
AAA Aaa 2,885 Series C, 5.125% due 1/01/2012 (c)(e) 3,215
AAA Aaa 1,640 Series C, 5.125% due 7/01/2012 (c)(e) 1,837
----------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York, Transportation
Revenue Refunding Bonds (d):
AAA Aaa 800 Series E, 5.125% due 11/15/2024 821
AAA Aaa 2,000 Series F, 5.25% due 11/15/2027 2,074
AAA Aaa 8,200 Series F, 5% due 11/15/2031 8,265
----------------------------------------------------------------------------------------------------------
Monroe County, New York, IDA Revenue Bonds (Southview Towers
Project), AMT:
NR* Aa1 1,400 6.125% due 2/01/2020 1,525
NR* Aa1 1,125 6.25% due 2/01/2031 1,226
----------------------------------------------------------------------------------------------------------
AAA Aaa 12,130 Nassau Health Care Corporation, New York, Health System Revenue
Bonds, 5.75% due 8/01/2029 (c) 13,289
----------------------------------------------------------------------------------------------------------
BBB A3 705 New York City, New York, City Health and Hospital Corporation,
Health System Revenue Bonds, Series A, 5.375% due 2/15/2026 714
----------------------------------------------------------------------------------------------------------
AAA Aaa 3,000 New York City, New York, City Health and Hospital Corporation
Revenue Refunding Bonds (Health System), Series A, 5.25% due
2/15/2012 (a) 3,319
----------------------------------------------------------------------------------------------------------
AAA Aaa 15,720 New York City, New York, City IDA, IDR (Japan Airlines Company),
AMT, 6% due 11/01/2015 (c) 16,765
----------------------------------------------------------------------------------------------------------
New York City, New York, City Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds:
NR* Aaa 12,500 RIB, Series 726X, 10.19% due 6/15/2027 (d)(f) 14,860
AAA Aaa 2,850 Series A, 5.75% due 6/15/2031 (b) 3,136
AAA Aaa 11,100 Series B, 5.75% due 6/15/2026 (d) 12,194
AAA Aaa 17,200 Series B, 5.75% due 6/15/2029 (d) 18,892
A1+ VMIG1+ 9,600 VRDN, Series C, 1.10% due 6/15/2022 (b)(g) 9,600
A1+ VMIG1+ 31,400 VRDN, Series C, 1.15% due 6/15/2023 (b)(g) 31,400
----------------------------------------------------------------------------------------------------------
New York City, New York, City Municipal Water Finance Authority,
Water and Sewer System Revenue Refunding Bonds:
AAA Aaa 5,000 5.50% due 6/15/2033 (d) 5,336
AAA Aaa 2,250 Series A, 5.375% due 6/15/2026 (c) 2,351
A1+ VMIG1+ 15,200 VRDN, Series A, 1.15% due 6/15/2025 (b)(g) 15,200
A1+ VMIG1+ 24,900 VRDN, Series G, 1.10% due 6/15/2024 (b)(g) 24,900
----------------------------------------------------------------------------------------------------------
AAA Aaa 1,020 New York City, New York, City Transit Authority, Metropolitan
Transportation Authority, Triborough, COP, Series A, 5.625% due
1/01/2012 (a) 1,139
----------------------------------------------------------------------------------------------------------
New York City, New York, City Transitional Finance Authority
Revenue Bonds, Future Tax Secured:
AA+ Aa2 800 Series B, 6.25% due 11/15/2017 936
AAA Aaa 6,805 Series B, 6.25% due 11/15/2017 (b) 7,962
AAA Aaa 8,020 Series E, 5.25% due 2/01/2017 (b) 8,724
AAA Aaa 2,500 Series E, 5.25% due 2/01/2022 (d) 2,635
----------------------------------------------------------------------------------------------------------
AAA Aaa 3,000 New York City, New York, City Transitional Finance Authority
Revenue Refunding Bonds, Future Tax Secured, Series D, 5.25% due
2/01/2021 (d) 3,180
----------------------------------------------------------------------------------------------------------
New York City, New York, GO:
A Aaa 11,043 RIB, Series 725X, 10.19% due 3/15/2027 (c)(f) 13,116
AAA Aaa 3,000 Series A, 5.75% due 5/15/2024 (b) 3,283
AAA Aaa 2,500 Series B, 5.75% due 8/01/2013 (d) 2,850
A A2 3,750 Series D, 5.25% due 10/15/2023 3,832
A1+ VMIG1+ 7,100 VRDN, Sub-Series A-6, 1.15% due 11/01/2026 (c)(g) 7,100
MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003 7
[LOGO] Merrill Lynch Investment Managers
Schedule of Investments (continued) (in Thousands)
S&P Moody's Face
Ratings@ Ratings@ Amount Municipal Bonds Value
====================================================================================================================================
New York (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
New York City, New York, GO, Refunding:
AAA Aaa $ 1,000 Series A, 6.375% due 5/15/2013 (b) $ 1,180
AAA Aaa 70 Series B, 7% due 2/01/2018 (a) 71
A A2 3,650 Series G, 5.75% due 2/01/2020 3,943
----------------------------------------------------------------------------------------------------------
AAA Aaa 11,500 New York City, New York, IDA, Civic Facility Revenue Bonds (USTA
National Tennis Center Project), 6.375% due 11/15/2014 (c) 12,301
----------------------------------------------------------------------------------------------------------
AAA Aaa 1,275 New York City, New York, IDA, Civic Facility Revenue Refunding
Bonds (Nightingale-Bamford School), 5.25% due 1/15/2018 (a) 1,378
----------------------------------------------------------------------------------------------------------
AAA Aaa 7,970 New York City, New York, IDA, Parking Facility Revenue Bonds
(Royal Charter--New York Presbyterian), 5.75% due 12/15/2029 (c) 8,735
----------------------------------------------------------------------------------------------------------
AAA Aaa 14,970 New York City, New York, IDA, Special Facilities Revenue Bonds
(Terminal One Group), AMT, 6.125% due 1/01/2024 (d) 15,422
----------------------------------------------------------------------------------------------------------
AA+ Aa2 3,180 New York City, New York, Transitional Finance Authority Revenue
Bonds, Future Tax Secured, Series C, 5.50% due 5/01/2025 3,405
----------------------------------------------------------------------------------------------------------
New York State Dormitory Authority Revenue Bonds:
AAA Aaa 4,250 (Eger Health Care and Rehabilitation Center), 6.10% due
8/01/2037 (i) 4,860
AA Baa3 1,500 (Long Island University), Series B, 5.25% due 9/01/2028 (k) 1,526
AAA Aaa 2,000 (New School for Social Research), 5.75% due 7/01/2026 (d) 2,196
AAA Aaa 1,180 (New York State Rehabilitation Association), Series A,
5.25% due 7/01/2019 (j) 1,260
AAA Aaa 1,000 (New York State Rehabilitation Association), Series A,
5.125% due 7/01/2023 (j) 1,024
AAA Aaa 7,300 (School Districts Financing Program), Series E, 5.75% due
10/01/2030 (d) 8,013
AAA Aaa 1,000 Series B, 6.50% due 2/15/2011 (d)(h) 1,211
AAA Aaa 3,560 (State University Adult Facilities), Series B, 5.75% due
5/15/2010 (c)(e) 4,181
AAA Aaa 710 (Upstate Community Colleges), Series A, 6% due 7/01/2015 (c) 821
AAA Aaa 1,070 (Upstate Community Colleges), Series A, 6% due 7/01/2016 (c) 1,238
----------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Revenue Refunding Bonds:
AAA Aaa 1,000 (City University System), Consolidated, Series 1, 5.625%
due 1/01/2008 (c)(e) 1,154
AAA Aaa 4,400 (City University System), Series C, 7.50% due 7/01/2010 (b) 5,304
AAA Aaa 4,405 (Mental Health Services), Series A, 5.75% due 2/15/2027 (d) 4,910
BB Ba1 500 (Mount Sinai Health), Series A, 6.625% due 7/01/2018 (a) 511
AAA Aaa 1,370 (School District Financing Program), Series I, 5.75% due
10/01/2018 (d) 1,548
AAA Aaa 6,000 (Siena College), 5.75% due 7/01/2026 (d) 6,588
----------------------------------------------------------------------------------------------------------
AAA Aaa 12,750 New York State Energy Research and Development Authority,
Facilities Revenue Refunding Bonds (Consolidated Edison Co. of
New York), Series A, 6.10% due 8/15/2020 (a) 13,831
----------------------------------------------------------------------------------------------------------
AAA Aaa 4,555 New York State Energy Research and Development Authority, Gas
Facilities Revenue Bonds (Brooklyn Union Gas Company), AMT,
Series B, 6.75% due 2/01/2024 (d) 4,645
----------------------------------------------------------------------------------------------------------
AAA Aaa 3,500 New York State Environmental Facilities Corporation, Special
Obligation Revenue Refunding Bonds (Riverbank State Park), 6.25%
due 4/01/2012 (a) 4,150
----------------------------------------------------------------------------------------------------------
AAA Aaa 10,000 New York State Environmental Facilities Corporation, State Clean
Water and Drinking Revenue Bonds (New York City Water Project),
Series B, 5% due 6/15/2031 10,097
----------------------------------------------------------------------------------------------------------
AAA Aaa 2,370 New York State, HFA, Revenue Refunding Bonds (Housing Mortgage
Project), Series A, 6.10% due 11/01/2015 (c) 2,522
----------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency Revenue
Bonds:
AAA Aaa 5,375 (Health Center Project--Second Mortgage), Series A, 6.375%
due 11/15/2019 (a) 5,981
AAA Aaa 1,500 (Mental Health Services), Series A, 6% due 2/15/2005 (d)(e) 1,622
----------------------------------------------------------------------------------------------------------
New York State Medical Care Facilities Finance Agency, Revenue
Refunding Bonds (Hospital & Nursing Homes) (i):
AAA NR* 2,000 Series B, 6.25% due 2/15/2025 2,194
AAA Aaa 11,085 Series C, 6.375% due 8/15/2004 (d)(e) 11,548
8 MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003
Schedule of Investments (continued) (in Thousands)
S&P Moody's Face
Ratings@ Ratings@ Amount Municipal Bonds Value
====================================================================================================================================
New York (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
New York State Mortgage Agency, Homeowner Mortgage Revenue
Refunding Bonds, AMT:
NR* Aa1 $ 45 Series 54, 6.20% due 10/01/2026 $ 48
NR* Aa1 80 Series 86, 5.95% due 10/01/2020 83
----------------------------------------------------------------------------------------------------------
New York State Mortgage Agency Revenue Bonds, AMT:
AAA Aaa 355 24th Series, 6.125% due 10/01/2030 (d) 368
NR* Aaa 2,850 DRIVERS, Series 295, 10.419% due 4/01/2030 (f) 3,276
----------------------------------------------------------------------------------------------------------
AAA NR* 4,950 New York State Mortgage Agency Revenue Refunding Bonds, DRIVERS,
AMT, Series 279, 10.15% due 10/01/2028 (d)(f) 5,336
----------------------------------------------------------------------------------------------------------
AAA Aaa 2,820 New York State Thruway Authority, Highway and Bridge Trust Fund
Revenue Bonds, Series A, 6.25% due 4/01/2011 (c) 3,300
----------------------------------------------------------------------------------------------------------
AAA Aaa 3,045 New York State Thruway Authority, Second General Highway and
Bridge Trust Fund Revenue Bonds, Series A, 5.25% due 4/01/2023 (d) 3,190
----------------------------------------------------------------------------------------------------------
New York State Thruway Authority, Service Contract Revenue Bonds
(Local Highway and Bridges Project) (e):
AAA Aaa 3,000 5.75% due 4/01/2010 (a) 3,516
AAA Aaa 2,000 Series A-2, 5.375% due 4/01/2008 2,280
----------------------------------------------------------------------------------------------------------
New York State Thruway Authority, Service Contract Revenue
Refunding Bonds (Local Highway) (d):
AAA Aaa 2,170 6% due 4/01/2007 (e) 2,507
AAA Aaa 1,330 6% due 4/01/2011 1,505
AAA Aaa 2,075 6% due 4/01/2012 (d) 2,347
----------------------------------------------------------------------------------------------------------
New York State Thruway, Transportation Authority, State Personal
Income Tax Revenue Bonds, Series A (d):
AAA Aaa 1,525 5% due 3/15/2020 1,585
AAA Aaa 1,525 5% due 3/15/2022 1,566
----------------------------------------------------------------------------------------------------------
AAA Aaa 3,190 New York State Urban Development Corporation Revenue Refunding
Bonds (Correctional Capital Facilities), Series A, 6.50% due
1/01/2011 (c) 3,807
----------------------------------------------------------------------------------------------------------
Niagara County, New York, IDA, Solid Waste Disposal Revenue
Refunding Bonds, AMT:
BBB Baa1 8,000 Series A, 5.45% due 11/15/2026 8,378
BBB Baa1 2,000 Series C, 5.625% due 11/15/2024 2,083
----------------------------------------------------------------------------------------------------------
AAA Aaa 1,000 Niagara Falls, New York, GO (Water Treatment Plant), AMT, 7.25%
due 11/01/2010 (d) 1,261
----------------------------------------------------------------------------------------------------------
AAA Aaa 1,100 Niagara Falls, New York, Public Water Authority, Water and Sewer
System Revenue Bonds, Series A, 5.50% due 7/15/2026 (d) 1,166
----------------------------------------------------------------------------------------------------------
AAA Aaa 2,705 Niagara, New York, Frontier Authority, Airport Revenue Bonds
(Buffalo Niagara International Airport), Series B, 5.50% due
4/01/2019 (d) 2,984
----------------------------------------------------------------------------------------------------------
AAA Aaa 1,260 North Country, New York, Development Authority, Solid Waste
Management System Revenue Refunding Bonds, 6% due 5/15/2015 (c) 1,483
----------------------------------------------------------------------------------------------------------
North Hempstead, New York, GO, Refunding, Series B (b):
AAA Aaa 1,745 6.40% due 4/01/2013 2,104
AAA Aaa 555 6.40% due 4/01/2017 680
----------------------------------------------------------------------------------------------------------
AAA Aaa 1,665 Oneida County, New York, IDA, Civic Facilities Revenue Bonds
(Mohawk Valley), Series A, 5.20% due 2/01/2013 (c) 1,804
----------------------------------------------------------------------------------------------------------
AAA Aaa 2,180 Port Authority of New York and New Jersey, Consolidated Revenue
Bonds, AMT, 97th Series, 6.50% due 7/15/2019 (b) 2,323
----------------------------------------------------------------------------------------------------------
AAA Aaa 4,000 Port Authority of New York and New Jersey, Consolidated Revenue
Refunding Bonds, AMT, 119th Series, 5.50% due 9/15/2016 (b) 4,326
----------------------------------------------------------------------------------------------------------
AAA Aaa 4,075 Port Authority of New York and New Jersey, Revenue Bonds, Trust
Receipts, AMT, Class R, Series 10, 10.364% due 1/15/2017 (c)(f) 4,942
MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003 9
[LOGO] Merrill Lynch Investment Managers
Schedule of Investments (continued) (in Thousands)
S&P Moody's Face
Ratings@ Ratings@ Amount Municipal Bonds Value
====================================================================================================================================
New York (concluded)
- ------------------------------------------------------------------------------------------------------------------------------------
AAA NR* $ 7,500 Port Authority of New York and New Jersey Revenue Refunding
Bonds, DRIVERS, AMT, Series 177, 10.62% due 10/15/2032 (d)(f) $ 9,165
----------------------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds, AMT (d):
AAA NR* 1,750 DRIVERS, Series 192, 10.12% due 12/01/2025 (f) 1,982
AAA NR* 5,080 DRIVERS, Series 278, 10.11% due 12/01/2022 (f) 6,129
AAA Aaa 14,750 (JFK International Air Terminal), Series 6, 6.25% due
12/01/2010 16,893
AAA Aaa 7,175 (Special Project--JFK International Air Terminal),
Series 6, 6.25% due 12/01/2011 8,203
AAA Aaa 4,425 (Special Project--JFK International Air Terminal),
Series 6, 6.25% due 12/01/2013 5,017
AAA Aaa 7,380 (Special Project--JFK International Air Terminal),
Series 6, 6.25% due 12/01/2014 8,380
----------------------------------------------------------------------------------------------------------
AAA Aaa 1,255 Rensselaer County, New York, IDA, Civic Facility Revenue Bonds
(Polytech Institute), Series B, 5.50% due 8/01/2022 (a) 1,361
----------------------------------------------------------------------------------------------------------
Suffolk County, New York, IDA, Solid Waste Disposal Facility
Revenue Refunding Bonds (Ogden Martin System Huntington Project),
AMT (a):
AAA Aaa 8,530 6% due 10/01/2010 9,908
AAA Aaa 9,170 6.15% due 10/01/2011 10,742
AAA Aaa 6,470 6.25% due 10/01/2012 7,615
----------------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corporation of New York Revenue
Bonds, Series A-1 (a):
AAA NR* 8,450 5.25% due 6/01/2021 8,878
AAA NR* 2,000 5.25% due 6/01/2022 2,087
----------------------------------------------------------------------------------------------------------
Triborough Bridge and Tunnel Authority, New York, General Purpose
Revenue Refunding Bonds (d):
AAA Aaa 1,410 Series B, 5% due 11/15/2010 1,574
AAA Aaa 2,305 Series Y, 6% due 1/01/2012 (h) 2,700
----------------------------------------------------------------------------------------------------------
AA- NR* 4,700 Triborough Bridge and Tunnel Authority, New York, Revenue Bonds,
DRIVERS, Series 293, 9.64% due 1/01/2032 (f) 5,346
----------------------------------------------------------------------------------------------------------
Triborough Bridge and Tunnel Authority, New York, Revenue
Refunding Bonds (d):
AAA Aaa 8,000 5.25% due 11/15/2023 8,369
AAA Aaa 20,390 5% due 11/15/2032 20,552
----------------------------------------------------------------------------------------------------------
A1+ VMIG1+ 1,930 Triborough Bridge and Tunnel Authority, New York, Special
Obligation Revenue Refunding Bonds, VRDN, Series A, 1.05% due
1/01/2031 (c)(g) 1,930
----------------------------------------------------------------------------------------------------------
AAA Aaa 5,000 Triborough Bridge and Tunnel Authority, New York, Subordinate
Revenue Bonds, 5% due 11/15/2032 (b) 5,043
----------------------------------------------------------------------------------------------------------
AAA Aaa 2,010 Yonkers, New York, GO, Series A, 5.75% due 10/01/2017 (b) 2,279
====================================================================================================================================
Guam -- 0.9%
- ------------------------------------------------------------------------------------------------------------------------------------
A.B. Won Guam International Airport Authority, General Revenue
Refunding Bonds, AMT, Series C (d):
AAA Aaa 2,240 5.25% due 10/01/2021 2,319
AAA Aaa 3,050 5.25% due 10/01/2022 3,139
10 MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003
Schedule of Investments (concluded) (in Thousands)
S&P Moody's Face
Ratings@ Ratings@ Amount Municipal Bonds Value
====================================================================================================================================
Puerto Rico -- 8.8%
- ------------------------------------------------------------------------------------------------------------------------------------
BBB Baa2 $10,000 Children's Trust Fund, Puerto Rico, Tobacco Settlement Revenue
Refunding Bonds, 5.50% due 5/15/2039 $ 8,756
----------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and Transportation Authority,
Transportation Revenue Bonds:
AAA Aaa 1,900 5.25% due 7/01/2018 (b) 2,073
A Baa1 8,495 Series D, 5.75% due 7/01/2041 9,174
AAA Aaa 2,265 Series G, 5.25% due 7/01/2019 (b) 2,454
AAA Aaa 1,000 Series G, 5.25% due 7/01/2021 (b) 1,071
AAA Aaa 1,250 Trust Receipts, Class R, Series B, 10.364% due
7/01/2035 (d)(f) 1,574
----------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth, Public Improvement, GO, Series A:
A- Baa1 4,605 5.25% due 7/01/2019 4,822
A- Baa1 7,480 5.25% due 7/01/2020 7,773
----------------------------------------------------------------------------------------------------------
A- A3 4,750 Puerto Rico Electric Power Authority, Power Revenue Bonds,
Series NN, 5.125% due 7/01/2029 4,784
----------------------------------------------------------------------------------------------------------
BBB+ Baa3 1,750 Puerto Rico Public Finance Corporation, Commonwealth
Appropriation Revenue Bonds, Series E, 5.50% due 8/01/2029 1,816
----------------------------------------------------------------------------------------------------------
NR* Aa2 6,100 Puerto Rico Public Finance Corporation Revenue Bonds, DRIVERS,
Series 272, 9.41% due 8/01/2030 (f) 6,897
==========================================================================================================
Total Municipal Bonds (Cost--$791,029)--141.8% 828,392
==========================================================================================================
====================================================================================================================================
Shares
Held Short-Term Securities
====================================================================================================================================
44 CMA New York Municipal Money Fund (l) 44
----------------------------------------------------------------------------------------------------------
Total Short-Term Securities (Cost--$44)--0.0% 44
====================================================================================================================================
Total Investments (Cost--$791,073)--141.8% 828,436
Unrealized Depreciation on Forward Interest Rate Swaps**--(0.5%) (2,910)
Other Assets Less Liabilities--3.0% 17,515
Preferred Stock, at Redemption Value--(44.3%) (259,016)
---------
Net Assets Applicable to Common Stock--100.0% $ 584,025
=========
(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 October 31, 2003.
(g) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at October 31,
2003.
(h) Escrowed to maturity.
(i) FHA Insured.
(j) CIFG Insured
(k) Radian Insured.
(l) 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 York Municipal Money Fund 44 $47
--------------------------------------------------------------------------
* Not Rated.
** Forward interest rate swaps entered into as of October 31, 2003 were as
follows:
(in Thousands)
--------------------------------------------------------------------------
Notional Unrealized
Amount Depreciation
--------------------------------------------------------------------------
Receive a variable rate equal to 7-Day
Bond Market Association Municipal
Swap Index Rate and pay a fixed
rate equal to 4.547%
Broker, Morgan Stanley Capital Services, Inc.
Expires December 2023 $83,000 $(2,910)
--------------------------------------------------------------------------
+ Highest short-term rating by Moody's Investors Service, Inc.
@ Ratings of issues shown are unaudited.
See Notes to Financial Statements.
MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003 11
[LOGO] Merrill Lynch Investment Managers
Statement of Net Assets
As of October 31, 2003
===================================================================================================================
Assets
- -------------------------------------------------------------------------------------------------------------------
Investments, at value (identified cost--$791,073,381) .......... $828,436,265
Cash ........................................................... 65,438
Receivables:
Interest .................................................... $ 13,784,947
Securities sold ............................................. 4,516,786 18,301,733
------------
Prepaid expenses ............................................... 11,671
------------
Total assets ................................................... 846,815,107
------------
===================================================================================================================
Liabilities
- -------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on forward interest rate swaps ......... 2,909,565
Payables:
Investment adviser .......................................... 401,511
Dividends to Common Stock shareholders ...................... 384,342
Other affiliates ............................................ 6,016 791,869
------------
Accrued expenses ............................................... 72,968
------------
Total liabilities .............................................. 3,774,402
------------
===================================================================================================================
Preferred Stock
- -------------------------------------------------------------------------------------------------------------------
Preferred Stock, at redemption value, par value $.05 per share
(1,700 Series A Shares, 1,700 Series B Shares, 2,800 Series
C Shares, 1,960 Series D Shares and 2,200 Series E shares of
AMPS* issued and outstanding at $25,000 per share liquidation
preference) .................................................. 259,015,755
------------
===================================================================================================================
Net Assets Applicable to Common Stock
- -------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock .......................... $584,024,950
============
===================================================================================================================
Analysis of Net Assets Applicable to Common Stock
- -------------------------------------------------------------------------------------------------------------------
Common Stock, par value $.10 per share (39,445,962 shares issued
and outstanding) ............................................. $ 3,944,596
Paid-in capital in excess of par ............................... 557,669,466
Undistributed investment income--net ........................... $ 6,852,398
Accumulated realized capital losses on investments--net ........ (18,894,829)
Unrealized appreciation on investments--net .................... 34,453,319
------------
Total accumulated earnings--net ................................ 22,410,888
------------
Total--Equivalent to $14.81 net asset value per share of Common
Stock (market price--$13.25) ................................. $584,024,950
============
* Auction Market Preferred Stock.
See Notes to Financial Statements.
12 MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003
Statement of Operations
For the Year Ended October 31, 2003
===================================================================================================================
Investment Income
- -------------------------------------------------------------------------------------------------------------------
Interest ....................................................... $ 43,909,624
Dividends from affiliates ...................................... 47,145
------------
Total income ................................................... 43,956,769
------------
===================================================================================================================
Expenses
- -------------------------------------------------------------------------------------------------------------------
Investment advisory fees ....................................... $ 4,261,264
Commission fees ................................................ 654,487
Accounting services ............................................ 249,983
Transfer agent fees ............................................ 114,775
Professional fees .............................................. 62,979
Printing and shareholder reports ............................... 43,605
Directors' fees and expenses ................................... 43,220
Custodian fees ................................................. 43,030
Listing fees ................................................... 28,965
Pricing fees ................................................... 26,564
Other .......................................................... 53,046
------------
Total expenses before reimbursement ............................ 5,581,918
Reimbursement of expenses ...................................... (33,687)
------------
Total expenses after reimbursement ............................. 5,548,231
------------
Investment income--net ......................................... 38,408,538
------------
===================================================================================================================
Realized & Unrealized Gain (Loss) on Investments--Net
- -------------------------------------------------------------------------------------------------------------------
Realized gain on investments--net .............................. 12,352,354
Change in unrealized appreciation on investments--net .......... (15,964,533)
------------
Total realized and unrealized loss on investments--net ......... (3,612,179)
------------
===================================================================================================================
Dividends to Preferred Stock Shareholders
- -------------------------------------------------------------------------------------------------------------------
Investment income--net ......................................... (2,950,941)
------------
Net Increase in Net Assets Resulting from Operations ........... $ 31,845,418
============
See Notes to Financial Statements.
MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003 13
[LOGO] Merrill Lynch Investment Managers
Statements of Changes in Net Assets
For the Year Ended
October 31,
-------------------------------
Increase (Decrease) in Net Assets: 2003 2002
=============================================================================================================
Operations
- -------------------------------------------------------------------------------------------------------------
Investment income--net ................................ $ 38,408,538 $ 37,085,056
Realized gain (loss) on investments--net .............. 12,352,354 (1,928,997)
Change in unrealized appreciation/depreciation on
investments--net .................................... (15,964,533) (5,490,653)
Dividends to Preferred Stock shareholders ............. (2,950,941) (3,893,109)
-------------------------------
Net increase in net assets resulting from operations .. 31,845,418 25,772,297
-------------------------------
=============================================================================================================
Dividends & Distributions to Common Stock Shareholders
- -------------------------------------------------------------------------------------------------------------
Investment income--net ................................ (32,613,922) (32,765,197)
Realized gain on investments--net ..................... -- (155,733)
-------------------------------
Net decrease in net assets resulting from dividends and
distributions to Common Stock shareholders .......... (32,613,922) (32,920,930)
-------------------------------
=============================================================================================================
Net Assets Applicable to Common Stock
- -------------------------------------------------------------------------------------------------------------
Total decrease in net assets applicable to Common Stock (768,504) (7,148,633)
Beginning of year ..................................... 584,793,454 591,942,087
-------------------------------
End of year* .......................................... $ 584,024,950 $ 584,793,454
===============================
* Undistributed investment income--net ............. $ 6,852,398 $ 4,008,723
===============================
See Notes to Financial Statements.
14 MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003
Financial Highlights
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year Ended October 31,
--------------------------------------------------------------
Increase (Decrease) in Net Asset Value: 2003 2002 2001++ 2000++ 1999++
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ................... $ 14.83 $ 15.01 $ 13.76 $ 13.02 $ 16.26
--------------------------------------------------------------
Investment income--net ............................... .97@@ .94 .96 .87 1.03
Realized and unrealized gain (loss) on
investments--net ................................... (.09) (.19) 1.26 .90 (2.47)
Dividends and distributions to Preferred Stock
shareholders:
Investment income--net ............................ (.07) (.10) (.20) (.25) (.16)
Realized gain on investments--net ................. -- --@ -- -- (.07)
In excess of realized gain on investments--net .... -- -- -- -- (.03)
--------------------------------------------------------------
Total from investment operations ..................... .81 .65 2.02 1.52 (1.70)
--------------------------------------------------------------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net ............................ (.83) (.83) (.77) (.78) (.89)
Realized gain on investments--net ................. -- --@ -- -- (.45)
In excess of realized gain on investments--net .... -- -- -- -- (.20)
--------------------------------------------------------------
Total dividends and distributions to Common Stock
shareholders ....................................... (.83) (.83) (.77) (.78) (1.54)
--------------------------------------------------------------
Net asset value, end of year ......................... $ 14.81 $ 14.83 $ 15.01 $ 13.76 $ 13.02
==============================================================
Market price per share, end of year .................. $ 13.25 $ 13.36 $ 14.02 $ 12.25 $12.4375
==============================================================
==================================================================================================================================
Total Investment Return*
- ----------------------------------------------------------------------------------------------------------------------------------
Based on market price per share ...................... 5.45% 1.24% 21.26% 5.11% (15.63%)
==============================================================
Based on net asset value per share ................... 6.19% 4.97% 15.57% 12.79% (11.40%)
==============================================================
==================================================================================================================================
Ratios Based on Average Net Assets of Common Stock
- ----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of reimbursement and excluding
reorganization expenses** .......................... .94% .96% .97% 1.01% 1.02%
==============================================================
Total expenses, excluding reorganization expenses** .. .94% .96% .97% 1.01% 1.02%
==============================================================
Total expenses** ..................................... .94% .96% .97% 1.16% 1.02%
==============================================================
Total investment income--net** ....................... 6.49% 6.37% 6.66% 7.21% 6.96%
==============================================================
Amount of dividends to Preferred Stock shareholders .. .50% .66% 1.38% 1.93% 1.04%
==============================================================
Investment income--net, to Common Stock shareholders . 5.99% 5.71% 5.28% 5.28% 5.92%
==============================================================
==================================================================================================================================
Ratios Based on Average Net Assets of Common & Preferred Stock**
- ----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of reimbursement and excluding
reorganization expenses ............................ .65% .66% .67% .68% .71%
==============================================================
Total expenses, excluding reorganization expenses .... .65% .66% .67% .68% .71%
==============================================================
Total expenses ....................................... .65% .66% .67% .78% .71%
==============================================================
Total investment income--net ......................... 4.51% 4.41% 4.59% 4.82% 4.79%
==============================================================
==================================================================================================================================
Ratios Based on Average Net Assets of Preferred Stock
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends to Preferred Stock shareholders ............ 1.13% 1.49% 3.07% 3.91% 2.30%
==============================================================
MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003 15
[LOGO] Merrill Lynch Investment Managers
Financial Highlights (concluded)
The following per share data and ratios have been derived
from information provided in the financial statements For the Year Ended October 31,
--------------------------------------------------------------
Increase (Decrease) in Net Asset Value: 2003 2002 2001++ 2000++ 1999++
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock, end of
year (in thousands) ....................... $584,025 $584,793 $591,942 $542,709 $163,807
==============================================================
Preferred Stock outstanding, end of year
(in thousands) ............................ $259,000 $259,000 $259,000 $259,000 $ 85,000
==============================================================
Portfolio turnover .......................... 51.89% 87.56% 83.08% 148.51% 99.71%
==============================================================
==================================================================================================================================
Leverage
- ----------------------------------------------------------------------------------------------------------------------------------
Asset coverage per $1,000 ................... $ 3,255 $ 3,258 $ 3,285 $ 3,095 $ 2,927
==============================================================
==================================================================================================================================
Dividends Per Share on Preferred Stock Outstanding+
- ----------------------------------------------------------------------------------------------------------------------------------
Series A--Investment income--net ............ $ 249 $ 334 $ 791 $ 980 $ 566
==============================================================
Series B--Investment income--net ............ $ 232 $ 305 $ 731 $ 941 $ 583
==============================================================
Series C--Investment income--net ............ $ 214 $ 356 $ 774 $ 661 --
==============================================================
Series D--Investment income--net ............ $ 454 $ 503 $ 715 $ 634 --
==============================================================
Series E--Investment income--net ............ $ 255 $ 356 $ 812 $ 653 --
==============================================================
* 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.
+ The Fund's Preferred Stock was issued on September 16, 1992 (Series A and
Series B) and March 6, 2000 (Series C, Series D and Series E).
++ Certain prior year amounts have been reclassified to conform to current
year presentation.
@ Amount is less than $(.01) per share.
@@ Based on average shares outstanding.
See Notes to Financial Statements.
16 MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003
Notes to Financial Statements
1. Significant Accounting Policies:
MuniYield New York 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. 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 MYN. 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 best 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 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 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.
o 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.
o Options -- The Fund is authorized to write covered call options and
purchase put options. When the Fund writes an option, an amount equal to
the premium received by the Fund is reflected as an asset and an
equivalent liability. The amount of the liability is subsequently marked
to market to reflect the current market value of the option written. When
a security is purchased or sold through an exercise of an option, the
related premium paid (or received) is added to (or deducted from) the
basis of the security acquired or deducted from (or added to) the proceeds
of the security sold. When an option expires (or the Fund enters into a
closing transaction), the Fund realizes a gain or loss on the option to
the extent of the premiums received or paid (or gain or loss to the extent
the cost of the closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
o 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.
MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003 17
[LOGO] Merrill Lynch Investment Managers
Notes to Financial Statements (continued)
(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 year ended October 31,
2003, FAM reimbursed the Fund in the amount of $33,687.
For the year ended October 31, 2003, the Fund reimbursed FAM $18,446 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
year ended October 31, 2003 were $408,449,858 and $484,551,315, respectively.
Net realized gains (losses) for the year ended October 31, 2003 and net
unrealized gains (losses) as of October 31, 2003 were as follows:
- --------------------------------------------------------------------------------
Realized Unrealized
Gains (Losses) Gains (Losses)
- --------------------------------------------------------------------------------
Long-term investments ................ $ 19,344,198 $ 37,362,884
Financial futures contracts .......... (2,632,012) --
Forward interest rate swaps .......... (4,359,832) (2,909,565)
--------------------------------
Total ................................ $ 12,352,354 $ 34,453,319
================================
As of October 31, 2003, net unrealized appreciation for Federal income tax
purposes aggregated $37,157,990, of which $40,237,955 related to appreciated
securities and $3,079,965 related to depreciated securities. The aggregate cost
of investments at October 31, 2003 for Federal income tax purposes was
$791,278,275.
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 the holders of Common Stock.
Preferred Stock
Auction Market Preferred Stock ("AMPS") are redeemable shares of Preferred Stock
of the Fund, with a par value of $.05 per share and a liquidation preference of
$25,000 per share, plus accrued and unpaid dividends, that entitle their holders
to receive cash dividends at an annual rate that may vary for the successive
dividend periods. The yields in effect at October 31, 2003 were as follows:
Series A, .74%; Series B, .55%; Series C, .84%; Series D, .90%; and Series E,
..70%.
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 year ended October 31, 2003, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, an affiliate of FAM, earned $219,549 as commissions.
18 MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003
Notes to Financial Statements (concluded)
5. Distributions to Shareholders:
The Fund paid a tax-exempt income dividend to holders of Common Stock in the
amount of $.068900 per share on November 26, 2003 to shareholders of record on
November 14, 2003.
The tax character of distributions paid during the fiscal years ended October
31, 2003 and October 31, 2002 was as follows:
- --------------------------------------------------------------------------------
10/31/2003 10/31/2002
- --------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income .................... $35,564,863 $36,617,517
Ordinary income ...................... -- 196,522
-------------------------------
Total distributions .................... $35,564,863 $36,814,039
===============================
As of October 31, 2003, the components of accumulated earnings on a tax basis
were as follows:
- -----------------------------------------------------------------------------
Undistributed tax-exempt income--net .................... $ 6,735,502
Undistributed long-term capital gains--net .............. --
------------
Total undistributed earnings--net ....................... 6,735,502
Capital loss carryforward ............................... (11,573,650)*
Unrealized gains--net ................................... 27,249,036**
------------
Total accumulated earnings--net ......................... $ 22,410,888
============
* On October 31, 2003, the Fund had a net capital loss carryforward of
$11,573,650, of which $8,566,493 expires in 2008 and $3,007,157 expires in
2010. This amount will be available to offset like amounts of any future
taxable gains.
** The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on wash sales, the
tax deferral of losses on straddles and the difference between book and
tax amortization methods for premiums and discounts on fixed income
securities.
MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003 19
[LOGO] Merrill Lynch Investment Managers
Independent Auditors' Report
To the Shareholders and Board of Directors of
MuniYield New York Insured Fund, Inc.:
We have audited the accompanying statement of net assets, including the schedule
of investments, of MuniYield New York Insured Fund, Inc. as of October 31, 2003,
and the related statements of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2003, by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
MuniYield New York Insured Fund, Inc. as of October 31, 2003, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and its financial highlights for each of
the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
December 17, 2003
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 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.
20 MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003
Quality Profile (unaudited)
The quality ratings of securities in the Fund as of October 31, 2003 were as
follows:
- --------------------------------------------------------------------------------
Percent of
S&P Rating/Moody's Rating Total Investments
- --------------------------------------------------------------------------------
AAA/Aaa ................................................. 79.7%
AA/Aa ................................................... 1.7
A/A ..................................................... 4.2
BBB/Baa ................................................. 2.5
BB/Ba ................................................... 0.4
NR (Not Rated)* ......................................... 0.0
Other** ................................................. 11.5
- --------------------------------------------------------------------------------
* Holdings are less than 0.1%.
** Temporary investments in short-term variable rate municipal securities.
Important Tax Information (unaudited)
All of the net investment income distributions paid by MuniYield New York
Insured Fund, Inc. during its taxable year ended October 31, 2003 qualify as
tax-exempt interest dividends for Federal income tax purposes.
MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003 21
[LOGO] Merrill Lynch Investment Managers
Automatic Dividend Reinvestment Plan
The following description of the Fund's Automatic Dividend Reinvestment Plan
(the "Plan") is sent to you annually as required by Federal securities laws.
Pursuant to the Fund's Plan, unless a holder of Common Stock otherwise elects,
all dividend and capital gains distributions will be automatically reinvested by
The Bank of New York (the "Plan Agent"), as agent for shareholders in
administering the Plan, in additional shares of Common Stock of the Fund.
Holders of Common Stock who elect not to participate in the Plan will receive
all distributions in cash paid by check mailed directly to the shareholder of
record (or, if the shares are held in street or other nominee name then to such
nominee) by The Bank of New York, as dividend paying agent. Such participants
may elect not to participate in the Plan and to receive all distributions of
dividends and capital gains in cash by sending written instructions to The Bank
of New York, as dividend paying agent, at the address set forth below.
Participation in the Plan is completely voluntary and may be terminated or
resumed at any time without penalty by written notice if received by the Plan
Agent not less than ten days prior to any dividend record date; otherwise such
termination will be effective with respect to any subsequently declared dividend
or distribution.
Whenever the Fund declares an income dividend or capital gains distribution
(collectively referred to as "dividends") payable either in shares or in cash,
non-participants in the Plan will receive cash and participants in the Plan will
receive the equivalent in shares of Common Stock. The shares will be acquired by
the Plan Agent for the participant's account, depending upon the circumstances
described below, either (i) through receipt of additional unissued but
authorized shares of Common Stock from the Fund ("newly issued shares") or (ii)
by purchase of outstanding shares of Common Stock on the open market
("open-market purchases") on the New York Stock Exchange or elsewhere. If on the
payment date for the dividend, the net asset value per share of the Common Stock
is equal to or less than the market price per share of the Common Stock plus
estimated brokerage commissions (such conditions being referred to herein as
"market premium"), the Plan Agent will invest the dividend amount in newly
issued shares on behalf of the participant. The number of newly issued shares of
Common Stock to be credited to the participant's account will be determined by
dividing the dollar amount of the dividend by the net asset value per share on
the date the shares are issued, provided that the maximum discount from the then
current market price per share on the date of issuance may not exceed 5%. If on
the dividend payment date the net asset value per share is greater than the
market value (such condition being referred to herein as "market discount"), the
Plan Agent will invest the dividend amount in shares acquired on behalf of the
participant in open-market purchases.
In the event of a market discount on the dividend payment date, the Plan Agent
will have until the last business day before the next date on which the shares
trade on an "ex-dividend" basis or in no event more than 30 days after the
dividend payment date (the "last purchase date") to invest the dividend amount
in shares acquired in open-market purchases. It is contemplated that the Fund
will pay monthly income dividends. Therefore, the period during which
open-market purchases can be made will exist only from the payment date on the
dividend through the date before the next "ex-dividend" date, which typically
will be approximately ten days. If, before the Plan Agent has completed its
open-market purchases, the market price of a share of Common Stock exceeds the
net asset value per share, the average per share purchase price paid by the Plan
Agent may exceed the net asset value of the Fund's shares, resulting in the
acquisitions of fewer shares than if the dividend had been paid in newly issued
shares on the dividend payment date. Because of the foregoing difficulty with
respect to open-market purchases, the Plan provides that if the Plan Agent is
unable to invest the full dividend amount in open-market purchases during the
purchase period or if the market discount shifts to a market premium during the
purchase period, the Plan Agent will cease making open-market purchases and will
invest the uninvested portion of the dividend amount in newly issued shares at
the close of business on the last purchase date determined by dividing the
uninvested portion of the dividend by the net asset value per share.
The Plan Agent maintains all shareholders' accounts in the Plan and furnishes
written confirmation of all transactions in the account, including information
needed by shareholders for tax records. Shares in the account of each Plan
participant will be held by the Plan Agent in non-certificated form in the name
of the participant, and each shareholder's proxy will include those shares
purchased or received pursuant to the Plan. The Plan Agent will forward all
proxy solicitation materials to participants and vote proxies for shares held
pursuant to the Plan in accordance with the instructions of the participants.
22 MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003
Automatic Dividend Reinvestment Plan (concluded)
In the case of shareholders such as banks, brokers or nominees which hold shares
of others who are the beneficial owners, the Plan Agent will administer the Plan
on the basis of the number of shares certified from time to time by the record
shareholders as representing the total amount registered in the record
shareholder's name and held for the account of beneficial owners who are to
participate in the Plan.
There will be no brokerage charges with respect to shares issued directly by the
Fund as a result of dividends or capital gains distributions payable either in
shares or in cash. However, each participant will pay a pro rata share of
brokerage commissions incurred with respect to the Plan Agent's open-market
purchases in connection with the reinvestment of dividends.
The automatic reinvestment of dividends and distributions will not relieve
participants of any Federal, state or local income tax that may be payable (or
required to be withheld) on such dividends.
Shareholders participating in the Plan may receive benefits not available to
shareholders not participating in the Plan. If the market price plus commissions
of the Fund's shares is above the net asset value, participants in the Plan will
receive shares of the Fund at less than they could otherwise purchase them and
will have shares with a cash value greater than the value of any cash
distribution they would have received on their shares. If the market price plus
commissions is below the net asset value, participants will receive
distributions in shares with a net asset value greater than the value of any
cash distribution they would have received on their shares. However, there may
be insufficient shares available in the market to make distributions in shares
at prices below the net asset value. Also, since the Fund does not redeem
shares, the price on resale may be more or less than the net asset value.
The value of shares acquired pursuant to the Plan will generally be excluded
from gross income to the extent that the cash amount reinvested would be
excluded from gross income. If, when the Fund's shares are trading at a premium
over net asset value, the Fund issues shares pursuant to the Plan that have a
greater fair market value than the amount of cash reinvested, it is possible
that all or a portion of such discount (which may not exceed 5% of the fair
market value of the Fund's shares) could be viewed as a taxable distribution. If
the discount is viewed as a taxable distribution, it is also possible that the
taxable character of this discount would be allocable to all the shareholders,
including shareholders who do not participate in the Plan. Thus, shareholders
who do not participate in the Plan might be required to report as ordinary
income a portion of their distributions equal to their allocable share of the
discount.
Experience under the Plan may indicate that changes are desirable. Accordingly,
the Fund reserves the right to amend or terminate the Plan. There is no direct
service charge to participants in the Plan; however, the Fund reserves the right
to amend the Plan to include a service charge payable by the participants.
All correspondence concerning the Plan should be directed to the Plan Agent at
The Bank of New York, Church Street Station, P.O. Box 11258, New York, NY
10286-1258, Telephone: 800-432-8224.
MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003 23
[LOGO] Merrill Lynch Investment Managers
Officers and Directors (unaudited)
Number of
Portfolios in Other Public
Position(s) Length Fund Complex Directorships
Held of Time Overseen by Held by
Name Address & Age with Fund Served Principal Occupation(s) During Past 5 Years Director Director
====================================================================================================================================
Interested Director
- ------------------------------------------------------------------------------------------------------------------------------------
Terry K. P.O. Box 9011 President 1999 to President and Chairman of Merrill Lynch Investment 124 Funds None
Glenn* Princeton, NJ and present Managers, L.P. ("MLIM")/Fund Asset Management, 163 Portfolios
08543-9011 Director and L.P. ("FAM")--Advised Funds since 1999; Chairman
Age: 63 1992 to (Americas Region) of MLIM from 2000 to 2002;
present Executive Vice President of FAM and MLIM (which
terms as used herein include their corporate
predecessors) from 1983 to 2002; President of
FAM Distributors, Inc. ("FAMD") from 1986 to 2002
and Director thereof from 1991 to 2002; Executive
Vice President and Director of Princeton Services,
Inc. ("Princeton Services") from 1993 to 2002;
President of Princeton Administrators, L.P. from
1989 to 2002; Director of Financial Data Services,
Inc. since 1985.
------------------------------------------------------------------------------------------------------------------------
* Mr. Glenn is a director, trustee or member of an advisory board of certain other investment companies for which FAM or
MLIM acts as investment adviser. Mr. Glenn is an "interested person," as described in the Investment Company Act, of
the Fund based on his former positions with FAM, MLIM, FAMD, Princeton Services and Princeton Administrators, L.P. The
Director's term is unlimited. Directors serve until their resignation, removal or death, or until December 31 of the
year in which they turn 72. As Fund President, Mr. Glenn serves at the pleasure of the Board of Directors.
====================================================================================================================================
Independent Directors*
- ------------------------------------------------------------------------------------------------------------------------------------
James H. P.O. Box 9095 Director 1995 to Director, The China Business Group, Inc. since 1996 40 Funds None
Bodurtha Princeton, NJ present and Executive Vice President thereof from 1996 to 59 Portfolios
08543-9095 2003; Chairman of the Board, Berkshire Holding
Age: 59 Corporation since 1980; Partner, Squire, Sanders &
Dempsey from 1980 to 1993.
- ------------------------------------------------------------------------------------------------------------------------------------
Joe Grills P.O. Box 9095 Director 2002 to Member of the Committee of Investment of 40 Funds Kimco Realty
Princeton, NJ present Employee Benefit Assets of the Association of 59 Portfolios Corporation
08543-9095 Financial Professionals ("CIEBA") since 1986 and
Age: 68 its Chairman from 1991 to 1992; Member of the
Investment Advisory Committees of the State of
New York Common Retirement Fund since 1989;
Member of the Investment Advisory Committee of
the Howard Hughes Medical Institute from 1997 to
2000; Director, Duke Management Company since
1992 and Vice Chairman thereof since 1998;
Director, LaSalle Street Fund from 1995 to 2001;
Director, Kimco Realty Corporation since 1997;
Member of the Investment Advisory Committee of
the Virginia Retirement System since 1998 and Vice
Chairman thereof since 2002; Director, Montpelier
Foundation since 1998 and Vice Chairman thereof
since 2000; Member of the Investment Committee
of the Woodberry Forest School since 2000; Member
of the Investment Committee of the National Trust
for Historic Preservation since 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
24 MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003
Officers and Directors (unaudited) (continued)
Number of
Portfolios in Other Public
Position(s) Length Fund Complex Directorships
Held of Time Overseen by Held by
Name Address & Age with Fund Served Principal Occupation(s) During Past 5 Years Director Director
====================================================================================================================================
Independent Directors* (concluded)
- ------------------------------------------------------------------------------------------------------------------------------------
Herbert I. P.O. Box 9095 Director 1992 to John M. Olin Professor of Humanities, New York 40 Funds None
London Princeton, NJ present University since 1993 and Professor thereof since 59 Portfolios
08543-9095 1980; President of Hudson Institute since 1997 and
Age: 64 Trustee thereof since 1980.
- ------------------------------------------------------------------------------------------------------------------------------------
Andre F. P.O. Box 9095 Director 1992 to George Gund Professor of Finance and Banking, 40 Funds None
Perold Princeton, NJ present Harvard Business School since 2000 and a member 59 Portfolios
08543-9095 of the faculty since 1979; Director and Chairman
Age: 51 of the Board, UNX, Inc. since 2003; Director, Sanlam
Limited and Sanlam Life since 2001; Director, Genbel
Securities and Gensec Bank since 1999; Director,
Stockback.com from 2002 to 2002; Director,
Bulldogresearch.com from 2000 to 2001; Director,
Sanlam Investment Management from 1999 to
2001; Director, Quantec Limited from 1991 to 1999.
- ------------------------------------------------------------------------------------------------------------------------------------
Roberta P.O. Box 9095 Director 1999 to Shareholder, Modrall, Sperling, Roehl, Harris & 40 Funds None
Cooper Princeton, NJ present Sisk, P.A. since 1993; Director of Cooper's, Inc. 59 Portfolios
Ramo 08543-9095 since 1999 and Chairman of the Board since 2000;
Age: 61 Director of ECMC, Inc. since 2001.
- ------------------------------------------------------------------------------------------------------------------------------------
Robert S. P.O. Box 9095 Director 2002 to Principal of STI Management since 1994; Trustee 40 Funds None
Salomon, Princeton, NJ present of Commonfund from 1980 to 2001; Director of 59 Portfolios
Jr. 08543-9095 Rye Country Day School since 2001.
Age: 66
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen B. P.O. Box 9095 Director 2002 to Chairman, Fernwood Advisors (investment adviser) 41 Funds None
Swensrud Princeton, NJ present since 1996; Principal of Fernwood Associates 60 Portfolios
08543-9095 (financial consultant) since 1975; Chairman of RPP
Age: 70 Corporation since 1978; Director, International
Mobile Communications, Inc. since 1998.
------------------------------------------------------------------------------------------------------------------------
* The Director's term is unlimited. Directors serve until their resignation, removal or death, or until December 31 of
the year in which they turn 72.
- ------------------------------------------------------------------------------------------------------------------------------------
MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003 25
Officers and Directors (unaudited) (concluded)
Position(s) Length
Held of Time
Name Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years
====================================================================================================================================
Fund Officers
- ------------------------------------------------------------------------------------------------------------------------------------
Donald C. P.O. Box 9011 Vice 1993 to First Vice President of FAM and MLIM since 1997 and Treasurer thereof since 1999;
Burke Princeton, NJ President present Senior Vice President and Treasurer of Princeton Services since 1999; Vice
08543-9011 and and President of FAMD since 1999; Director of MLIM Taxation since 1990.
Age: 43 Treasurer 1999 to
present
- ------------------------------------------------------------------------------------------------------------------------------------
Kenneth A. P.O. Box 9011 Senior Vice 2002 to Managing Director of MLIM since 2000; Director (Municipal Tax-Exempt Fund
Jacob Princeton, NJ President present Management) of MLIM from 1997 to 2000.
08543-9011
Age: 52
- ------------------------------------------------------------------------------------------------------------------------------------
John M. P.O. Box 9011 Senior Vice 2002 to Managing Director of MLIM since 2000; Director (Municipal Tax-Exempt Fund
Loffredo Princeton, NJ President present Management) of MLIM from 1998 to 2000.
08543-9011
Age: 39
- ------------------------------------------------------------------------------------------------------------------------------------
Brian D. P.O. Box 9011 Secretary 2003 to Vice President of MLIM since 2002; Attorney with Reed Smith from 2001 to 2002;
Stewart Princeton, NJ present Attorney with Saul Ewing from 1999 to 2001.
08543-9011
Age: 34
------------------------------------------------------------------------------------------------------------------------
* Officers of the Fund serve at the pleasure of the Board of Directors.
- ------------------------------------------------------------------------------------------------------------------------------------
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
100 Church Street
New York, NY 10286
NYSE Symbol
MYN
26 MUNIYIELD NEW YORK INSURED FUND, INC. OCTOBER 31, 2003
Electronic Delivery
The Fund is now offering 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 YORK INSURED FUND, INC. OCTOBER 31, 2003 27
[LOGO] Merrill Lynch Investment Managers www.mlim.ml.com
MuniYield New York Insured Fund, Inc. seeks to provide shareholders with as high
a level of current income exempt from Federal income tax and New York State and
New York City 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 York State and
New York City personal income taxes.
This report, including the financial information herein, is transmitted to
shareholders of MuniYield New York Insured Fund, Inc. for their information. It
is not a prospectus. Past performance results shown in this report should not be
considered a representation of future performance. The Fund has leveraged its
Common Stock and intends to remain leveraged by issuing Preferred Stock to
provide the Common Stock shareholders with a potentially higher rate of return.
Leverage creates risks for Common Stock shareholders, including the likelihood
of greater volatility of net asset value and market price of shares of the
Common Stock, and the risk that fluctuations in the short-term dividend rates of
the Preferred Stock may affect the yield to Common Stock shareholders.
Statements and other information herein are as dated and are subject to change.
MuniYield New York Insured Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
#16159 -- 10/03
Item 2 - Did registrant adopt a code of ethics, as of the end of the period
covered by this report, that applies to the registrant's principal
executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant
or a third party? If not, why not? Briefly describe any amendments or
waivers that occurred during the period. State here if code of
ethics/amendments/waivers are on website and give website address-.
State here if fund will send code of ethics to shareholders without
charge upon request--
The registrant has adopted a code of ethics, as of the end of the
period covered by this report, that applies to the registrant's
principal executive officer, principal financial officer and principal
accounting officer, or persons performing similar functions. A copy of
the code of ethics is available without charge upon request by calling
toll-free 1-800-MER-FUND (1-800-637-3863).
Item 3 - Did the registrant's board of directors determine that the registrant
either: (i) has at least one audit committee financial expert serving
on its audit committee; or (ii) does not have an audit committee
financial expert serving on its audit committee? If yes, disclose name
of financial expert and whether he/she is "independent," (fund may, but
is not required, to disclose name/independence of more than one
financial expert) If no, explain why not. -
The registrant's board of directors has determined that (i) the
registrant has the following audit committee financial experts serving
on its audit committee and (ii) each audit committee financial expert
is independent: (1) Joe Grills, (2) Andre Perold, (3) Robert S.
Salomon, Jr., and (4) Stephen B. Swensrud.
Item 4 - Disclose annually only (not answered until December 15, 2003)
(a) Audit Fees - Disclose aggregate fees billed for each of the last
two fiscal years for professional services rendered by
the principal accountant for the audit of the
registrant's annual financial statements or services
that are normally provided by the accountant in
connection with statutory and regulatory filings or
engagements for those fiscal years. N/A.
(b) Audit-Related Fees - Disclose aggregate fees billed in each of the
last two fiscal years for assurance and
related services by the principal accountant
that are reasonably related to the performance
of the audit of the registrant's financial
statements and are not reported under
paragraph (a) of this Item. Registrants shall
describe the nature of the services comprising
the fees disclosed under this category. N/A.
(c) Tax Fees - Disclose aggregate fees billed in each of the last two
fiscal years for professional services rendered by the
principal accountant for tax compliance, tax advice, and
tax planning. Registrants shall describe the nature of
the services comprising the fees disclosed under this
category. N/A.
(d) All Other Fees - Disclose aggregate fees billed in each of the last
two fiscal years for products and services
provided by the principal accountant, other than
the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the
nature of the services comprising the fees
disclosed under this category. N/A.
(e)(1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of
Regulation S-X. N/A.
(e)(2) Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by
the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule
2-01 of Regulation S-X. N/A.
(f) If greater than 50%, disclose the percentage of hours expended on
the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were
attributed to work performed by persons other than the principal
accountant's full-time, permanent employees. N/A.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to
the registrant's investment adviser (not including any sub-adviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant for each
of the last two fiscal years of the registrant. N/A.
(h) Disclose whether the registrant's audit committee has considered
whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence. N/A.
Item 5 - If the registrant is a listed issuer as defined in Rule 10A-3 under the
Exchange Act, state whether or not the registrant has a
separately-designated standing audit committee established in
accordance with Section 3(a)(58)(A) of the Exchange Act. If the
registrant has such a committee, however designated, identify each
committee member. If the entire board of directors is acting as the
registrant's audit committee in Section 3(a)(58)(B) of the Exchange
Act, so state.
If applicable, provide the disclosure required by Rule 10A-3(d) under
the Exchange Act regarding an exemption from the listing standards for
audit committees. N/A
(Listed issuers must be in compliance with the new listing rules by the
earlier of their first annual shareholders meeting after January 2004,
or October 31, 2004 (annual requirement))
Item 6 - Reserved
Item 7 - For closed-end funds that contain voting securities in their portfolio,
describe the policies and procedures that it uses to determine how to
vote proxies relating to those portfolio securities.
Proxy Voting Policies and Procedures
Each Fund's Board of Directors/Trustees has delegated to Merrill Lynch
Investment Managers, L.P. and/or Fund Asset Management, L.P. (the
"Investment Adviser") authority to vote all proxies relating to the
Fund's portfolio securities. The Investment Adviser has adopted
policies and procedures ("Proxy Voting Procedures") with respect to the
voting of proxies related to the portfolio securities held in the
account of one or more of its clients, including a Fund. Pursuant to
these Proxy Voting Procedures, the Investment Adviser's primary
objective when voting proxies is to make proxy voting decisions solely
in the best interests of each Fund and its shareholders, and to act in
a manner that the Investment Adviser believes is most likely to enhance
the economic value of the securities held by the Fund. The Proxy Voting
Procedures are designed to ensure that the Investment Adviser considers
the interests of its clients, including the Funds, and not the
interests of the Investment Adviser, when voting proxies and that real
(or perceived) material conflicts that may arise between the Investment
Adviser's interest and those of the Investment Adviser's clients are
properly addressed and resolved.
In order to implement the Proxy Voting Procedures, the Investment
Adviser has formed a Proxy Voting Committee (the "Committee"). The
Committee is comprised of the Investment Adviser's Chief Investment
Officer (the "CIO"), one or more other senior investment professionals
appointed by the CIO, portfolio managers and investment analysts
appointed by the CIO and any other personnel the CIO deems appropriate.
The Committee will also include two non-voting representatives from the
Investment Adviser's Legal department appointed by the Investment
Adviser's General Counsel. The Committee's membership shall be limited
to full-time employees of the Investment Adviser. No person with any
investment banking, trading, retail brokerage or research
responsibilities for the Investment Adviser's affiliates may serve as a
member of the Committee or participate in its decision making (except
to the extent such person is asked by the Committee to present
information to the Committee, on the same basis as other interested
knowledgeable parties not affiliated with the Investment Adviser might
be asked to do so). The Committee determines how to vote the proxies of
all clients, including a Fund, that have delegated proxy voting
authority to the Investment Adviser and seeks to ensure that all votes
are consistent with the best interests of those clients and are free
from unwarranted and inappropriate influences. The Committee
establishes general proxy voting policies for the Investment Adviser
and is responsible for determining how those policies are applied to
specific proxy votes, in light of each issuer's unique structure,
management, strategic options and, in certain circumstances, probable
economic and other anticipated consequences of alternate actions. In so
doing, the Committee may determine to vote a particular proxy in a
manner contrary to its generally stated policies. In addition, the
Committee will be responsible for ensuring that all reporting and
recordkeeping requirements related to proxy voting are fulfilled.
The Committee may determine that the subject matter of a recurring
proxy issue is not suitable for general voting policies and requires a
case-by-case determination. In such cases, the Committee may elect not
to adopt a specific voting policy applicable to that issue. The
Investment Adviser believes that certain proxy voting issues require
investment analysis - such as approval of mergers and other significant
corporate transactions - akin to investment decisions, and are,
therefore, not suitable for general guidelines. The Committee may elect
to adopt a common position for the Investment Adviser on certain proxy
votes that are akin to investment decisions, or determine to permit the
portfolio manager to make individual decisions on how best to maximize
economic value for a Fund (similar to normal buy/sell investment
decisions made by such portfolio managers). While it is expected that
the Investment Adviser will generally seek to vote proxies over which
the Investment Adviser exercises voting authority in a uniform manner
for all the Investment Adviser's clients, the Committee, in conjunction
with a Fund's portfolio manager, may determine that the Fund's specific
circumstances require that its proxies be voted differently.
To assist the Investment Adviser in voting proxies, the Committee has
retained Institutional Shareholder Services ("ISS"). ISS is an
independent adviser that specializes in providing a variety of
fiduciary-level proxy-related services to institutional investment
managers, plan sponsors, custodians, consultants, and other
institutional investors. The services provided to the Investment
Adviser by ISS include in-depth research, voting recommendations
(although the Investment Adviser is not obligated to follow such
recommendations), vote execution, and recordkeeping. ISS will also
assist the Fund in fulfilling its reporting and recordkeeping
obligations under the Investment Company Act.
The Investment Adviser's Proxy Voting Procedures also address special
circumstances that can arise in connection with proxy voting. For
instance, under the Proxy Voting Procedures, the Investment Adviser
generally will not seek to vote proxies related to portfolio securities
that are on loan, although it may do so under certain circumstances. In
addition, the Investment Adviser will vote proxies related to
securities of foreign issuers only on a best efforts basis and may
elect not to vote at all in certain countries where the Committee
determines that the costs associated with voting generally outweigh the
benefits. The Committee may at any time override these general policies
if it determines that such action is in the best interests of a Fund.
From time to time, the Investment Adviser may be required to vote proxies in
respect of an issuer where an affiliate of the Investment Adviser (each, an
"Affiliate"), or a money management or other client of the Investment Adviser
(each, a "Client") is involved. The Proxy Voting Procedures and the Investment
Adviser's adherence to those procedures are designed to address such conflicts
of interest. The Committee intends to strictly adhere to the Proxy Voting
Procedures in all proxy matters, including matters involving Affiliates and
Clients. If, however, an issue representing a non-routine matter that is
material to an Affiliate or a widely known Client is involved such that the
Committee does not reasonably believe it is able to follow its guidelines (or if
the particular proxy matter is not addressed by the guidelines) and vote
impartially, the Committee may, in its discretion for the purposes of ensuring
that an independent determination is reached, retain an independent fiduciary to
advise the Committee on how to vote or to cast votes on behalf of the Investment
Adviser's clients.
In the event that the Committee determines not to retain an independent
fiduciary, or it does not follow the advice of such an independent
fiduciary, the powers of the Committee shall pass to a subcommittee,
appointed by the CIO (with advice from the Secretary of the Committee),
consisting solely of Committee members selected by the CIO. The CIO
shall appoint to the subcommittee, where appropriate, only persons
whose job responsibilities do not include contact with the Client and
whose job evaluations would not be affected by the Investment Adviser's
relationship with the Client (or failure to retain such relationship).
The subcommittee shall determine whether and how to vote all proxies on
behalf of the Investment Adviser's clients or, if the proxy matter is,
in their judgment, akin to an investment decision, to defer to the
applicable portfolio managers, provided that, if the subcommittee
determines to alter the Investment Adviser's normal voting guidelines
or, on matters where the Investment Adviser's policy is case-by-case,
does not follow the voting recommendation of any proxy voting service
or other independent fiduciary that may be retained to provide research
or advice to the Investment Adviser on that matter, no proxies relating
to the Client may be voted unless the Secretary, or in the Secretary's
absence, the Assistant Secretary of the Committee concurs that the
subcommittee's determination is consistent with the Investment
Adviser's fiduciary duties
In addition to the general principles outlined above, the Investment
Adviser has adopted voting guidelines with respect to certain recurring
proxy issues that are not expected to involve unusual circumstances.
These policies are guidelines only, and the Investment Adviser may
elect to vote differently from the recommendation set forth in a voting
guideline if the Committee determines that it is in a Fund's best
interest to do so. In addition, the guidelines may be reviewed at any
time upon the request of a Committee member and may be amended or
deleted upon the vote of a majority of Committee members present at a
Committee meeting at which there is a quorum.
The Investment Adviser has adopted specific voting guidelines with
respect to the following proxy issues:
o Proposals related to the composition of the Board of Directors of issuers
other than investment companies. As a general matter, the Committee
believes that a company's Board of Directors (rather than shareholders) is
most likely to have access to important, nonpublic information regarding a
company's business and prospects, and is therefore best-positioned to set
corporate policy and oversee management. The Committee, therefore,
believes that the foundation of good corporate governance is the election
of qualified, independent corporate directors who are likely to diligently
represent the interests of shareholders and oversee management of the
corporation in a manner that will seek to maximize shareholder value over
time. In individual cases, the Committee may look at a nominee's history
of representing shareholder interests as a director of other companies or
other factors, to the extent the Committee deems relevant.
o Proposals related to the selection of an issuer's independent auditors. As
a general matter, the Committee believes that corporate auditors have a
responsibility to represent the interests of shareholders and provide an
independent view on the propriety of financial reporting decisions of
corporate management. While the Committee will generally defer to a
corporation's choice of auditor, in individual cases, the Committee may
look at an auditors' history of representing shareholder interests as
auditor of other companies, to the extent the Committee deems relevant.
o Proposals related to management compensation and employee benefits. As a
general matter, the Committee favors disclosure of an issuer's
compensation and benefit policies and opposes excessive compensation, but
believes that compensation matters are normally best determined by an
issuer's board of directors, rather than shareholders. Proposals to
"micro-manage" an issuer's compensation practices or to set arbitrary
restrictions on compensation or benefits will, therefore, generally not be
supported.
o Proposals related to requests, principally from management, for approval
of amendments that would alter an issuer's capital structure. As a general
matter, the Committee will support requests that enhance the rights of
common shareholders and oppose requests that appear to be unreasonably
dilutive.
o Proposals related to requests for approval of amendments to an issuer's
charter or by-laws. As a general matter, the Committee opposes poison pill
provisions.
o Routine proposals related to requests regarding the formalities of
corporate meetings.
o Proposals related to proxy issues associated solely with holdings of
investment company shares. As with other types of companies, the Committee
believes that a fund's Board of Directors (rather than its shareholders)
is best-positioned to set fund policy and oversee management. However, the
Committee opposes granting Boards of Directors authority over certain
matters, such as changes to a fund's investment objective, that the
Investment Company Act envisions will be approved directly by
shareholders.
o Proposals related to limiting corporate conduct in some manner that
relates to the shareholder's environmental or social concerns. The
Committee generally believes that annual shareholder meetings are
inappropriate forums for discussion of larger social issues, and opposes
shareholder resolutions "micromanaging" corporate conduct or requesting
release of information that would not help a shareholder evaluate an
investment in the corporation as an economic matter. While the Committee
is generally supportive of proposals to require corporate disclosure of
matters that seem relevant and material to the economic interests of
shareholders, the Committee is generally not supportive of proposals to
require disclosure of corporate matters for other purposes.
Item 8 -- Reserved
Item 9(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others
particularly during the period in which this report is being
prepared. The registrant's certifying officers have determined that
the registrant's disclosure controls and procedures are effective
based on our evaluation of these controls and procedures as of a
date within 90 days prior to the filing date of this report.
Item 9(b) -- There were no significant changes in the registrant's internal
controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and
material weaknesses.
Item 10 - Exhibits
10(a) - Attach code of ethics or amendments/waivers, unless code of ethics or
amendments/waivers is on website or offered to shareholders upon request
without charge. N/A.
10(b) - Attach certifications pursuant to Section 302 of the Sarbanes-Oxley Act.
Attached hereto.
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
MuniYield New York Insured Fund, Inc.
By: /s/ Terry K. Glenn
----------------------------
Terry K. Glenn,
President of
MuniYield New York Insured Fund, Inc.
Date: December 22, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by
the following persons on behalf of the registrant and in the capacities
and on the dates indicated.
By: /s/ Terry K. Glenn
----------------------------
Terry K. Glenn,
President of
MuniYield New York Insured Fund, Inc.
Date: December 22, 2003
By: /s/ Donald C. Burke
----------------------------
Donald C. Burke,
Chief Financial Officer of
MuniYield New York Insured Fund, Inc.
Date: December 22, 2003
Attached hereto as a furnished exhibit are the certifications pursuant
to Section 906 of the Sarbanes-Oxley Act.