UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-8217
Name of Fund: MuniHoldings 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, MuniHoldings
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: 08/31/04
Date of reporting period: 09/01/03 - 02/29/04
Item 1 - Report to Stockholders
[LOGO] Merrill Lynch Investment Managers www.mlim.ml.com
MuniHoldings New York
Insured Fund, Inc.
Semi-Annual Report
February 29, 2004
[LOGO] Merrill Lynch Investment Managers
MuniHoldings New York Insured Fund, Inc.
The Benefits and Risks of Leveraging
MuniHoldings 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
strongly positive slope. The fund pays dividends on the $50 million of Preferred
Stock based on the lower short-term interest rates. At the same time, the fund's
total portfolio of $150 million earns the income based on long-term interest
rates. Of course, increases in short-term interest rates would reduce (and even
eliminate) the dividends on the Common Stock.
In this case, the dividends paid to Preferred Stock share holders are
significantly lower than the income earned on the fund's long-term investments,
and therefore the Common Stock shareholders are the beneficiaries of the
incremental yield. However, if short-term interest rates rise, narrowing the
differential between short-term and long-term interest rates, the incremental
yield pickup on the Common Stock will be reduced or eliminated completely. At
the same time, the market value of the fund's Common Stock (that is, its price
as listed on the New York Stock Exchange) may, as a result, decline.
Furthermore, if long-term interest rates rise, the Common Stock's net asset
value will reflect the full decline in the price of the portfolio's investments,
since the value of the fund's Preferred Stock does not fluctuate. In addition to
the decline in net asset value, the market value of the fund's Common Stock may
also decline.
As a part of its investment strategy, the Fund may invest in certain securities
whose potential income return is inversely related to changes in a floating
interest rate ("inverse floaters"). In general, income on inverse floaters will
decrease when short-term interest rates increase and increase when short-term
interest rates decrease. Investments in inverse floaters may be characterized as
derivative securities and may subject the Fund to the risks of reduced or
eliminated interest payments and losses of invested principal. In addition,
inverse floaters have the effect of providing investment leverage and, as a
result, the market value of such securities will generally be more volatile than
that of fixed-rate, tax-exempt securities. To the extent the Fund invests in
inverse floaters, the market value of the Fund's portfolio and the net asset
value of the Fund's shares may also be more volatile than if the Fund did not
invest in these securities. As of February 29, 2004, the percentage of the
Fund's total net assets invested in inverse floaters was 8.83%, before the
deduction of Preferred Stock.
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 or reduce exposure to a bond or market without owning or
taking physical custody of securities.
2 MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004
A Letter From the President
Dear Shareholder
As I write to you at February month-end, fixed income markets in the United
States continued to reward those investors willing to accept greater risk. The
trend held true in the tax-exempt market, where the Lehman Brothers
Non-Investment Grade Index of municipal bonds posted respective returns of
+10.96% and +16.15% for the six-month and 12-month periods ended February 29,
2004. This compared to a six-month return of +6.52% and a 12-month return of
+6.30% for the broader-based Lehman Brothers Municipal Bond Index.
At the same time, equity markets maintained their positive momentum from
year-end 2003. For the six-month and 12-month periods ended February 29, 2004,
the Standard & Poor's (S&P) 500 Index returned +14.59% and +38.52%,
respectively. Much of the boost came from improving economic conditions in the
United States.
The major signposts indicate that we are seeing a shift from economic growth
fueled primarily by fiscal and monetary stimulus to a broader-based,
self-sustaining economic expansion. Gross domestic product growth, which peaked
at an annualized rate of 8.2% in the third quarter of 2003, was 4.1% in the
fourth quarter. A similar level of growth is expected in the first quarter of
2004. For its part, the Federal Reserve Board has reiterated its willingness to
keep short-term interest rates at current low levels to ensure the economy's
strength.
Accompanying the increase in economic activity was an improvement in corporate
earnings. By February 10, 2004, 392 of the S&P 500 companies had reported their
fourth-quarter 2003 results, and 67.6% of those exceeded expectations. In the
meantime, the American consumer, who continued to spend despite the faltering
economy, may get further incentive from another round of Federal tax refunds
this year.
At Merrill Lynch Investment Managers, we believe the events and efforts of 2003
left us with a much stronger economy and that recent optimism suggests it is
time for investors to consider what can go right in 2004. We encourage you to
revisit your portfolio and your asset allocation strategy to ensure you are well
positioned to take advantage of the opportunities that lie ahead.
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
MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004 3
[LOGO] Merrill Lynch Investment Managers
A Discussion With Your Fund's Portfolio Managers
Our strategy has been and continues to be focused on increasing the Fund's
yield while protecting net asset value in what has been a volatile interest rate
environment.
Describe the recent market environment relative to municipal bonds.
Over the past six months, long-term fixed income interest rates generally
declined while the U.S. economy gained strength. Gross domestic product expanded
at an annualized rate of 8.2% in the third quarter of 2003, with fourth-quarter
growth reported at 4.1%. Notwithstanding the impressive economic growth, the
Federal Reserve Board seemed apt to leave short-term interest rates at their
current low levels, citing subdued employment growth and the absence of material
inflationary pressures.
At the end of February 2004, long-term U.S. Treasury bond yields stood at 4.84%,
representing a decline of nearly 40 basis points (.40%) over the past six
months. Tax-exempt municipal bond yields also moved sharply lower during the
period, while their prices -- which move opposite their yields -- rose
accordingly. Yields on long-term revenue bonds, as measured by the Bond Buyer
Revenue Bond Index, fell almost 60 basis points. The same was true of 30-year
issues rated AAA -- the highest rated -- according to Municipal Market Data.
Shorter-maturity bonds fared even better, as yields on 10-year AAA-rated bonds
declined approximately 65 basis points during the period.
Supporting the recent yield declines was a pronounced decrease in new bond
issuance. This translated into favorable supply/demand dynamics in the municipal
marketplace. Approximately $170 billion in municipal bonds was underwritten
during the past six months, a drop of approximately 10% compared to the same
period a year earlier. In February, just $22 billion in new long-term municipal
bonds was underwritten, a decline of more than 25% versus February 2003. New
supply of municipal bonds is expected to remain manageable in 2004, a trend we
believe will continue to support the tax-exempt market's performance relative to
the taxable bond market.
While investor enthusiasm for stocks has taken some attention away from fixed
income markets, overall demand for tax-exempt municipal bonds has remained
positive. Municipal yields have recently ranged from 88% to 91% of Treasury
yields, slightly higher than their recent historical average. Moreover,
municipal investors generally preferred longer-dated securities, which offered
somewhat higher yields in the low interest rate environment. This maturity
extension helped support the strong demand for and performance of tax-exempt
products in recent months.
Describe conditions in the State of New York.
The weakened economy continued to put pressure on New York's budget in the past
year. Despite spending cuts and significant increases in personal and sales tax
rates, the state relied on one-time revenues, particularly $4.2 billion in
proceeds from tobacco settlement revenue bonds, to close its budget gap in the
current fiscal year (which ends March 31, 2004).
The state faces a $5 billion budget deficit for the 2004 - 2005 fiscal year
(which begins April 1, 2004). Balancing the 2004 - 2005 budget will be
especially difficult given political resistance to additional tax hikes and cuts
in popular programs, pressures from local governments for pension and Medicaid
relief, and the lack of readily available one-time revenue sources. Furthermore,
structural balance may be further complicated by a pending court ruling on
equitable school funding that could add up to $2 billion in annual education
spending. However, the state historically has been able to close prior budget
gaps with a mix of tax increases, spending cuts and non-recurring revenues.
While New York's economy remains sluggish and depends on the performance of the
financial sector, slight growth is evident. The state projects 4.4% growth in
personal income in 2004, following an estimated 2.7% growth in 2003 and a .2%
decline in 2002. According to the U.S. Department of Commerce, New York's
personal income fell .1% in 2002, causing the state to drop from fourth to fifth
highest in per capita income. Modest income growth in 2004 would boost personal
income tax receipts, currently 38% of general fund receipts.
How did the Fund perform during the period in light of the existing market
conditions?
For the six-month period ended February 29, 2004, the Common Stock of
MuniHoldings New York Insured Fund, Inc. had net annualized yields of 5.76% and
6.11%, based on a period-end per share net asset value of $16.08 and a per share
market price of $15.16, respectively, and $.462 per
4 MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004
share income dividends. Over the same period, the total investment return on the
Fund's Common Stock was +9.27%, based on a change in per share net asset value
from $15.19 to $16.08, and assuming reinvestment of $.459 per share ordinary
income dividends.
For the six-month period ended February 29, 2004, the Fund's Auction Market
Preferred Stock (AMPS) had average yields as follows: Series A, .72%; Series B,
..65%; Series C, .81%; Series D, .92%; and Series E, .70%.
Fund performance, based on net asset value, lagged the +10.92% average return of
its comparable Lipper category of New York Insured Municipal Debt Funds for the
six-month period ended February 29, 2004. (Funds in this Lipper category invest
primarily in securities exempt from taxation in New York and insured as to
timely payment.)
For a description of the Fund's total investment return based on a change in the
per share market value of the Fund's Common Stock (as measured by the trading
price of the Fund's shares on the New York Stock Exchange), and assuming
reinvestment of dividends, please refer to the Financial Highlights section
included in this report. As a closed-end fund, the Fund's shares may trade in
the secondary market at a premium or discount to the Fund's net asset value. As
a result, total investment returns based on changes in the market value of the
Fund's Common Stock can vary significantly from total investment return based on
changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
We maintained our focus on increasing the income provided to shareholders and
muting the Fund's net asset value volatility. The most volatile part of the
yield curve during the period continued to be the 10-year - 15-year sector.
Therefore, with our existing cash reserves, we looked to purchase premium-coupon
bonds in the 20-year - 30-year maturity range whenever they became available.
Our observations and research reveal that the longer end of the yield curve has
held firm. As such, this is where we have found the greatest value. By taking
advantage of the steep yield curve, we have successfully been able to increase
the Fund's yield while muting its net asset volatility.
In terms of leverage, the Fund's borrowing costs generally remained below 1%
throughout the period. The attractive funding levels, in combination with a
steep tax-exempt yield curve, generated a significant income 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. At
the end of the period, the Fund's leverage amount, based on AMPS, was 38.73% of
total assets. (For a more complete explanation of the benefits and risks of
leveraging, see page 2 of this report to shareholders.)
How would you characterize the portfolio's position at the close of the period?
In our view, the municipal market will continue to be volatile over the next few
months. Should interest rates continue to decline, we intend to shift to a more
defensive stance to prepare the Fund to outperform when interest rates
eventually head higher. As long as the municipal yield curve remains steep, we
will continue to sell the intermediate part of the curve and use periods of
volatility to structure higher-coupon bonds whenever they are attractively
priced.
Walter C. O'Connor Robert D. Sneeden
Co-Portfolio Manager Co-Portfolio Manager
March 18, 2004
- --------------------------------------------------------------------------------
We are pleased to announce that Walter C. O'Connor and Robert D. Sneeden have
been named Co-Portfolio Managers of MuniHoldings 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.
- --------------------------------------------------------------------------------
MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004 5
[LOGO] Merrill Lynch Investment Managers
Schedule of Investments (in Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
====================================================================================================================================
New York--148.8%
- ------------------------------------------------------------------------------------------------------------------------------------
Albany County, New York, Airport Authority, Airport Revenue
Bonds, AMT (d):
AAA Aaa $ 1,500 5.375% due 12/15/2017 $ 1,678
AAA Aaa 1,500 5.50% due 12/15/2019 1,616
AAA Aaa 5,200 6% due 12/15/2023 5,910
----------------------------------------------------------------------------------------------------------
AA NR* 3,375 Albany, New York, IDA, Civic Facility Revenue Bonds (The
University Heights Association--Albany Law School), Series A,
6.75% due 12/01/2029 (m) 4,031
----------------------------------------------------------------------------------------------------------
AAA Aaa 1,000 Albany, New York, Municipal Water Finance Authority, Water
and Sewer System, Revenue Refunding Bonds, Series A, 6.375%
due 12/01/2009 (b)(f) 1,228
----------------------------------------------------------------------------------------------------------
AAA Aaa 3,000 Battery Park City Authority, New York, Senior Revenue
Refunding Bonds, Series A, 5% due 11/01/2023 3,196
----------------------------------------------------------------------------------------------------------
Buffalo, New York, GO, Series D (d):
AAA Aaa 1,000 6% due 12/01/2009 (f) 1,208
AAA Aaa 1,000 6% due 12/01/2013 1,194
----------------------------------------------------------------------------------------------------------
NR* C 3,750 Cicero, New York, Local Development Corporation Revenue Bonds
(Cicero Community Recreation Project), Series A, 6.75%
due 5/01/2042 611
----------------------------------------------------------------------------------------------------------
AAA Aaa 1,025 Erie County, New York, GO, Public Improvement, Series A,
5.75% due 10/01/2013 (b) 1,207
----------------------------------------------------------------------------------------------------------
Erie County, New York, IDA, School Facility Revenue Bonds
(City of Buffalo Project) (d):
AAA Aaa 2,500 5.75% due 5/01/2019 2,910
AAA Aaa 5,150 5.75% due 5/01/2024 5,842
----------------------------------------------------------------------------------------------------------
AAA Aaa 9,250 Long Island Power Authority, New York, Electric System
Revenue Bonds, Series C, 5% due 9/01/2033 (l) 9,685
----------------------------------------------------------------------------------------------------------
AAA Aaa 3,900 Long Island Power Authority, New York, Electric System
Revenue Refunding Bonds, Series A, 5.25% due 12/01/2026 (e) 4,186
----------------------------------------------------------------------------------------------------------
AAA Aaa 6,600 Metropolitan Transportation Authority, New York, Commuter
Facilities Revenue Bonds (Grand Central Terminal), Series 1,
5.70% due 7/01/2005 (d)(f) 7,071
----------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York, Commuter
Facilities Revenue Refunding Bonds, Series D (e):
AAA Aaa 460 5.125% due 1/01/2012 (f) 531
AAA Aaa 540 5.125% due 7/01/2022 (j) 594
----------------------------------------------------------------------------------------------------------
AAA A1 7,280 Metropolitan Transportation Authority, New York, Dedicated
Tax Fund Revenue Bonds, Series A, 5% due 11/15/2031 (b) 7,582
----------------------------------------------------------------------------------------------------------
A1+ Aaa 4,200 Metropolitan Transportation Authority, New York, Dedicated
Tax Fund Revenue Refunding Bonds, VRDN, Series B, 0.93%
due 11/01/2022 (d)(h) 4,200
----------------------------------------------------------------------------------------------------------
AAA Aaa 8,760 Metropolitan Transportation Authority, New York, Revenue
Bonds, Series A, 5.50% due 11/15/2022 (d) 10,326
----------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York, Revenue
Refunding Bonds:
NR* Aaa 3,000 RIB, Series 724X, 10.30% due 11/15/2032 (d)(g) 3,903
AAA Aaa 2,500 Series A, 5.50% due 11/15/2018 (a) 2,863
AAA Aaa 7,500 Series A, 5% due 11/15/2030 (d) 7,844
AAA Aaa 2,500 Series A, 5.25% due 11/15/2031 (b) 2,677
AAA Aaa 29,000 Series A, 5.75% due 11/15/2032 (d) 33,367
AAA Aaa 1,500 Series B, 5% due 11/15/2028 (e) 1,578
Portfolio Abbreviations
To simplify the listings of MuniHoldings 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)
DRIVERS Derivative Inverse Tax-Exempt Receipts
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
VRDN Variable Rate Demand Notes
6 MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004
Schedule of Investments (continued) (in Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
===================================================================================================================================
New York (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa $ 3,500 Metropolitan Transportation Authority, New York, Service
Contract Revenue Refunding Bonds, Series A, 5%
due 7/01/2021 (b) $ 3,743
---------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York, Transit
Facilities Revenue Bonds (f):
AAA Baa1 1,215 Series C, 4.75% due 1/01/2012 (d) 1,367
AAA Baa1 2,535 Series C, 4.75% due 7/01/2012 (d) 2,864
AAA Aaa 1,000 Series C-1, 5.50% due 7/01/2008 (e) 1,154
---------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York,
Transportation Revenue Refunding Bonds (e):
AAA Aaa 800 Series E, 5.125% due 11/15/2024 853
AAA Aaa 2,000 Series F, 5.25% due 11/15/2027 2,144
AAA Aaa 1,070 Series F, 5% due 11/15/2031 1,119
---------------------------------------------------------------------------------------------------------
AAA Aaa 2,385 Monroe Woodbury, New York, Central School District, GO,
5.625% due 5/15/2023 (e) 2,657
---------------------------------------------------------------------------------------------------------
Nassau County, New York, Interim Finance Authority Revenue
Refunding Bonds, Series A-2 (a):
AAA Aaa 4,795 5.375% due 11/15/2013 5,295
AAA Aaa 1,345 5.375% due 11/15/2014 1,487
---------------------------------------------------------------------------------------------------------
AAA Aaa 5,210 Nassau Health Care Corporation, New York, Health System
Revenue Bonds, 5.75% due 8/01/2029 (d) 5,899
---------------------------------------------------------------------------------------------------------
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 725
---------------------------------------------------------------------------------------------------------
New York City, New York, City Health and Hospital
Corporation, Health System Revenue Refunding Bonds, Series A:
AAA Aaa 3,000 5.25% due 2/15/2012 (a) 3,438
AAA Aaa 2,000 5.25% due 2/15/2017 (e) 2,215
---------------------------------------------------------------------------------------------------------
A1+ NR* 1,600 New York City, New York, City Housing Development
Corporation, M/F Rental Housing Revenue Bonds (Carnegie
Park), VRDN, Series A, 0.93% due 11/15/2019 (h)(i) 1,600
---------------------------------------------------------------------------------------------------------
NR* Aaa 885 New York City, New York, City IDA, Civic Facility Revenue
Bonds (Anti-Defamation League Foundation), Series A, 5.50%
due 6/01/2022 (e) 976
---------------------------------------------------------------------------------------------------------
AAA Aaa 1,200 New York City, New York, City IDA, Civic Facility Revenue
Refunding Bonds (Nightingale-Bamford School), 5.25%
due 1/15/2017 (a) 1,349
---------------------------------------------------------------------------------------------------------
AAA Aaa 18,960 New York City, New York, City IDA, IDR (Japan Airlines
Company), AMT, 6% due 11/01/2015 (d) 19,907
---------------------------------------------------------------------------------------------------------
AAA Aaa 7,965 New York City, New York, City IDA, Parking Facility Revenue
Bonds (Royal Charter--New York Presbyterian), 5.75%
due 12/15/2029 (d) 8,996
---------------------------------------------------------------------------------------------------------
AAA Aaa 5,000 New York City, New York, City IDA, Special Facilities Revenue
Bonds (Terminal One Group), AMT, 6.125% due 1/01/2024 (e) 5,125
---------------------------------------------------------------------------------------------------------
New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds:
NR* Aaa 11,500 RIB, Series 726X, 10.30% due 6/15/2027 (e)(g) 14,718
AAA Aaa 2,850 Series A, 5.75% due 6/15/2031 (b) 3,244
AAA Aaa 11,350 Series B, 5.75% due 6/15/2026 (e) 12,446
AAA Aaa 11,000 Series B, 5.75% due 6/15/2029 (e) 12,173
A1+ VMIG1+ 6,560 VRDN, Series C, 0.89% due 6/15/2022 (b)(h) 6,560
A1+ VMIG1+ 11,400 VRDN, Series C, 0.89% due 6/15/2023 (b)(h) 11,400
---------------------------------------------------------------------------------------------------------
New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System Revenue Refunding Bonds:
AAA Aaa 4,250 Series A, 5.50% due 6/15/2023 (b) 4,437
AAA Aaa 6,800 Series A, 5.50% due 6/15/2023 (e) 7,099
AAA Aaa 2,250 Series A, 5.375% due 6/15/2026 (d) 2,411
A1+ VMIG1+ 15,900 VRDN, Series A, 0.90% due 6/15/2025 (b)(h) 15,900
A1+ VMIG1+ 20,500 VRDN, Series G, 0.92% due 6/15/2024 (b)(h) 20,500
---------------------------------------------------------------------------------------------------------
New York City, New York, City Transitional Finance Authority
Revenue Bonds, Future Tax Secured:
AAA Aaa 6,405 Series B, 6.25% due 11/15/2018 (b) 7,708
AA+ Aa2 3,180 Series C, 5.50% due 5/01/2025 3,514
AAA Aaa 2,500 Series E, 5.25% due 2/01/2022 (e) 2,727
MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004 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, City Transitional Finance Authority
Revenue Bonds, Series B (e):
AAA Aa2 $ 1,145 5.50% due 2/01/2012 $ 1,327
AAA Aa2 805 5.50% due 2/01/2013 935
---------------------------------------------------------------------------------------------------------
New York City, New York, GO:
A Aaa 4,750 RIB, Series 725X, 10.30% due 3/15/2027 (d)(g) 6,101
AAA Aaa 4,500 Series B, 5.75% due 8/01/2013 (e) 5,324
A A2 3,750 Series D, 5.25% due 10/15/2023 4,007
AAA Aaa 595 Series I, 6.25% due 4/15/2007 (e)(f) 685
AAA Aaa 1,255 Series I, 6.25% due 4/15/2027 (e) 1,412
A1+ VMIG1+ 7,000 VRDN, Series B, Sub-Series B-4, 0.89%
due 8/15/2023 (e)(h) 7,000
---------------------------------------------------------------------------------------------------------
New York City, New York, GO, Refunding:
AAA Aaa 1,000 Series A, 6.375% due 5/15/2013 (b) 1,220
AAA Aaa 3,700 Series A, 6.25% due 5/15/2026 (d) 4,465
A A2 3,650 Series G, 5.75% due 2/01/2020 3,938
---------------------------------------------------------------------------------------------------------
AAA Aaa 2,300 New York State Dormitory Authority, Hospital Revenue Bonds
(New York Methodist Hospital), Series A, 6.05%
due 2/01/2034 (a)(c) 2,555
---------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Hospital Revenue
Refunding Bonds:
AAA Aaa 1,000 (New York Presbyterian Hospital), 5.50%
due 8/01/2011 (a)(c) 1,170
AAA Aaa 2,000 (North General Hospital), 5.75% due 2/15/2017 (k) 2,327
---------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Lease Revenue Bonds:
AAA Aaa 1,535 (Municipal Health Facilities Improvement Program),
Series 1, 5.50% due 1/15/2014 (d) 1,758
AAA Aaa 645 (Office Facilities Audit and Control), 5.50%
due 4/01/2023 (e) 718
---------------------------------------------------------------------------------------------------------
AAA Aaa 6,500 New York State Dormitory Authority, State University
Educational Facilities Revenue Refunding Bonds (1989
Resources), 6% due 5/15/2012 (e) 7,759
---------------------------------------------------------------------------------------------------------
New York State Dormitory Authority Revenue Bonds:
AAA Aaa 1,340 (853 Schools Program), Issue 2, Series E, 5.75%
due 7/01/2019 (a) 1,551
AAA Aaa 1,200 (Cooper Union of Advance Science), 6.25%
due 7/01/2029 (e) 1,410
AAA Aaa 2,058 (Gustavus Adolphus Children's School), Series B, 5.50%
due 7/01/2018 (a) 2,346
AAA Aaa 6,750 (Interfaith Medical Center), Series D, 5.40%
due 2/15/2028 (e) 7,319
AA Baa3 1,585 (Long Island University), Series B, 5.50%
due 9/01/2020 (m) 1,748
AA Baa3 1,500 (Long Island University), Series B, 5.25%
due 9/01/2028 (m) 1,578
AA- NR* 1,835 (Mental Health Services Facilities Improvement),
Series B, 5.25% due 2/15/2023 1,978
AAA Aaa 1,100 (Mental Health Services Facilities Improvement),
Series D, 5.875% due 2/15/2015 (d) 1,253
AAA Aaa 1,180 (New York State Rehabilitation Association), Series A,
5.25% due 7/01/2019 (l) 1,310
AAA Aaa 1,000 (New York State Rehabilitation Association), Series A,
5.125% due 7/01/2023 (l) 1,068
AAA Aaa 1,845 (Pace University), 6% due 7/01/2019 (e) 2,194
AAA Aaa 3,500 (Pace University), 6% due 7/01/2029 (e) 4,106
AAA NR* 1,750 (Saint Agnes Hospital), 5.40% due 2/15/2025 (e) 1,894
AAA Aaa 2,150 (Saint Barnabas Hospital), 5.45% due 8/01/2035 (a)(c) 2,338
AAA Aaa 1,240 (School Districts Financing Program), Series D, 5%
due 10/01/2030 (e) 1,298
AAA Aaa 6,900 (School Districts Financing Program), Series E, 5.75%
due 10/01/2030 (e) 7,935
AAA Aaa 1,400 (State University Educational Facilities), Series B,
5.75% due 5/15/2010 (d)(f) 1,679
AAA Aaa 1,135 (Upstate Community Colleges), Series A, 6%
due 7/01/2017 (d) 1,349
AAA Aaa 190 (Upstate Community Colleges), Series A, 6%
due 7/01/2018 (d) 226
AAA Aaa 270 (Upstate Community Colleges), Series A, 6%
due 7/01/2019 (d) 321
---------------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Revenue Refunding Bonds:
AAA Aaa 3,700 (Bronx-Lebanon Hospital Center), Series E, 5.20%
due 2/15/2013 (e) 4,126
AAA NR* 1,865 (City University System), Series 1, 5.25%
due 7/01/2014 (b) 2,103
AAA Aaa 3,400 (Saint Charles Hospital and Rehabilitation Center),
Series A, 5.625% due 7/01/2012 (e) 3,831
AAA Aaa 1,370 (School District Financing Program), Series I, 5.75%
due 10/01/2018 (e) 1,605
AAA NR* 65 Series B, 5.50% due 2/15/2007 (e)(f) 74
AAA NR* 4,485 Series B, 5.50% due 8/15/2017 (e)(j) 4,984
---------------------------------------------------------------------------------------------------------
New York State Energy Research and Development Authority,
Facilities Revenue Refunding Bonds (Consolidated Edison Co.
of New York), Series A:
AAA Aaa 12,505 6.10% due 8/15/2020 (a) 13,477
AAA Aaa 3,500 6.10% due 8/15/2020 (e) 3,771
8 MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004
Schedule of Investments (continued) (in Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
===================================================================================================================================
New York (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
AAA Aaa $ 6,000 New York State Energy Research and Development Authority,
PCR, Refunding (Central Hudson Gas and Electric), Series A,
5.45% due 8/01/2027 (a) $ 6,597
---------------------------------------------------------------------------------------------------------
AAA Aaa 1,285 New York State Energy Research and Development Authority,
Solid Waste Disposal Revenue Bonds (New York State Electric
and Gas Co. Project), AMT, Series A, 5.70% due 12/01/2028 (e) 1,315
---------------------------------------------------------------------------------------------------------
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 10,491
---------------------------------------------------------------------------------------------------------
AAA Aaa 4,400 New York State Environmental Facilities Corporation, Water
Facilities Revenue Refunding Bonds (Spring Valley Water
Company), Series B, 6.15% due 8/01/2024 (a) 4,574
---------------------------------------------------------------------------------------------------------
New York State, HFA, Revenue Refunding Bonds:
AAA Aaa 2,000 (Fulton Manor), Series A, 6.10% due 11/15/2025 (a)(c) 2,148
AAA Aaa 1,560 (Housing Mortgage Project), Series A, 6.10%
due 11/01/2015 (d) 1,660
AAA Aaa 2,080 (Nursing Home and Health Care Project), Series A, 4.60%
due 11/01/2006 (e) 2,247
---------------------------------------------------------------------------------------------------------
AAA Aaa 1,000 New York State Medical Care Facilities Finance Agency Revenue
Bonds (Mental Health Services), Series A, 6%
due 2/15/2005 (e)(f) 1,067
---------------------------------------------------------------------------------------------------------
AAA Aaa 6,800 New York State Medical Care Facilities, Mortgage Finance
Agency Revenue Bonds (Montefiore Medical Center), Series A,
5.75% due 2/15/2025 (a)(c) 7,182
---------------------------------------------------------------------------------------------------------
New York State Mortgage Agency, Homeowner Mortgage Revenue
Bonds (e):
AAA NR* 2,805 AMT, Series 84, 5.90% due 4/01/2022 3,073
AAA Aaa 4,965 Series 89, 6% due 10/01/2017 5,425
---------------------------------------------------------------------------------------------------------
New York State Mortgage Agency, Homeowner Mortgage Revenue
Refunding Bonds:
AAA Aaa 2,140 AMT, Series 67, 5.70% due 10/01/2017 (e) 2,302
NR* Aa1 1,000 Series 61, 5.80% due 10/01/2017 1,066
AAA NR* 2,100 Series 83, 5.55% due 10/01/2027 (e) 2,214
---------------------------------------------------------------------------------------------------------
New York State Mortgage Agency Revenue Bonds, AMT, Series 27:
NR* Aaa 3,500 5.80% due 10/01/2020 3,836
AAA Aaa 5,700 5.875% due 4/01/2030 (e) 6,286
---------------------------------------------------------------------------------------------------------
New York State Mortgage Agency, Revenue Refunding Bonds,
AMT (e):
AAA NR* 6,815 DRIVERS, Series 279, 10.336% due 10/01/2028 (g) 7,774
AAA Aaa 2,305 Series 82, 5.65% due 4/01/2030 2,494
---------------------------------------------------------------------------------------------------------
New York State Municipal Bond Bank Agency, Special School
Purpose Revenue Bonds, Series C:
A+ NR* 3,000 5.25% due 6/01/2019 3,295
A+ NR* 3,900 5.25% due 6/01/2020 4,249
A+ NR* 2,250 5.25% due 6/01/2021 2,433
A+ NR* 3,150 5.25% due 12/01/2021 3,406
A+ NR* 1,650 5.25% due 6/01/2022 1,772
A+ NR* 1,825 5.25% due 12/01/2022 1,960
---------------------------------------------------------------------------------------------------------
New York State Thruway Authority, Highway and Bridge Trust
Fund Revenue Bonds, Series B-1 (b):
AAA Aaa 5,000 5.75% due 4/01/2013 5,892
AAA Aaa 3,000 5.75% due 4/01/2014 3,533
---------------------------------------------------------------------------------------------------------
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 (e) 3,316
---------------------------------------------------------------------------------------------------------
AAA Aaa 3,095 New York State Thruway Authority, Service Contract Revenue
Refunding Bonds (Local Highway), 6% due 4/01/2012 (e) 3,529
---------------------------------------------------------------------------------------------------------
New York State Thruway, Transportation Authority, State
Personal Income Tax Revenue Bonds, Series A (e):
AAA Aaa 1,400 5% due 3/15/2020 1,515
AAA Aaa 1,400 5% due 3/15/2022 1,494
---------------------------------------------------------------------------------------------------------
BBB Baa1 10,000 Niagara County, New York, IDA, Solid Waste Disposal Revenue
Refunding Bonds, AMT, Series B, 5.55% due 11/15/2024 10,679
---------------------------------------------------------------------------------------------------------
AAA Aaa 1,095 Niagara Falls, New York, Public Water Authority, Water and
Sewer System Revenue Bonds, Series A, 5.50% due 7/15/2026 (e) 1,172
MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004 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 Aaa $ 1,700 Oneida County, New York, IDA, Civic Facilities Revenue Bonds
(Mohawk Valley), Series A, 5.20% due 2/01/2013 (d) $ 1,900
---------------------------------------------------------------------------------------------------------
AAA Aaa 1,800 Oneida-Herkimer, New York, Solid Waste Management Authority,
Solid Waste Revenue Refunding Bonds, 5.50% due 4/01/2013 (d) 2,097
---------------------------------------------------------------------------------------------------------
AAA NR* 6,000 Port Authority of New York and New Jersey Revenue Refunding
Bonds, DRIVERS, AMT, Series 177, 10.728%
due 10/15/2032 (e)(g) 7,453
---------------------------------------------------------------------------------------------------------
AAA NR* 13,365 Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds, DRIVERS, AMT, Series 278, 10.226%
due 12/01/2022 (e)(g) 16,729
---------------------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (JFK International Air Terminal LLC), AMT,
Series 6 (e):
AAA Aaa 3,000 6.25% due 12/01/2011 3,536
AAA Aaa 7,830 6.25% due 12/01/2015 9,283
AAA Aaa 7,000 5.90% due 12/01/2017 7,914
---------------------------------------------------------------------------------------------------------
NR* Aaa 2,340 Rome, New York, City School District, GO, 5.50%
due 6/15/2017 (d) 2,676
---------------------------------------------------------------------------------------------------------
NR* Aaa 5,000 Schenectady, New York, IDA, Civic Facility Revenue Bonds
(Union College Project), Series A, 5.45% due 12/01/2029 (a) 5,507
---------------------------------------------------------------------------------------------------------
NR* Aaa 3,000 Schenectady, New York, IDA, Civic Facility Revenue Refunding
Bonds (Union College Project), Series A, 5.625%
due 7/01/2031 (a) 3,336
---------------------------------------------------------------------------------------------------------
A A3 4,355 Suffolk County, New York, IDA, IDR (Keyspan-Port Jefferson),
AMT, 5.25% due 6/01/2027 4,446
---------------------------------------------------------------------------------------------------------
Suffolk County, New York, IDA, Solid Waste Disposal Facility,
Revenue Refunding Bonds (Ogden Martin System Huntington
Project), AMT (a):
AAA Aaa 4,660 6% due 10/01/2010 5,537
AAA Aaa 5,000 6.15% due 10/01/2011 6,026
AAA Aaa 3,530 6.25% due 10/01/2012 4,295
---------------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corporation of New York Revenue
Bonds:
AAA Aaa 25,450 Series A-1, 5.25% due 6/01/2021 (a) 27,973
AAA A3 2,000 Series A-1, 5.25% due 6/01/2022 (a) 2,182
AA- A3 3,700 Series C-1, 5.50% due 6/01/2021 4,042
---------------------------------------------------------------------------------------------------------
AAA Aaa 1,415 Triborough Bridge and Tunnel Authority, New York, General
Revenue Refunding Bonds, Series B, 5% due 11/15/2010 (e) 1,621
---------------------------------------------------------------------------------------------------------
AA- NR* 5,300 Triborough Bridge and Tunnel Authority, New York, Revenue
Bonds, DRIVERS, Series 293, 9.772% due 1/01/2032 (g) 6,341
---------------------------------------------------------------------------------------------------------
Triborough Bridge and Tunnel Authority, New York, Revenue
Refunding Bonds (e):
AAA Aaa 12,000 5.25% due 11/15/2023 13,030
AAA Aaa 9,035 5% due 11/15/2032 9,457
---------------------------------------------------------------------------------------------------------
AAA Aaa 2,500 Triborough Bridge and Tunnel Authority, New York, Subordinate
Revenue Bonds, 5% due 11/15/2032 (b) 2,627
---------------------------------------------------------------------------------------------------------
NR* A3 2,000 United Nations Development Corporation, New York, Revenue
Refunding Bonds, Senior Lien, Series A, 5.25% due 7/01/2020 2,076
---------------------------------------------------------------------------------------------------------
AAA Aaa 7,000 Westchester County, New York, IDA, Civic Facility Revenue
Bonds (Purchase College Foundation Housing Project),
Series A, 5.75% due 12/01/2031 (a) 8,025
---------------------------------------------------------------------------------------------------------
AAA Aaa 1,795 Yonkers, New York, GO, Series A, 5.75% due 10/01/2015 (b) 2,107
===================================================================================================================================
Puerto Rico--12.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Children's Trust Fund Project of Puerto Rico, Tobacco
Settlement Revenue Refunding Bonds:
BBB Baa2 1,000 5.375% due 5/15/2033 961
BBB Baa2 10,000 5.50% due 5/15/2039 9,350
---------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth, Highway and Transportation
Authority, Transportation Revenue Bonds:
AAA Aaa 4,800 5.25% due 7/01/2017 (b) 5,477
AAA Aaa 1,250 Trust Receipts, Class R, Series B, 10.492%
due 7/01/2035 (e)(g) 1,688
10 MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004
Schedule of Investments (concluded) (in Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
===================================================================================================================================
Puerto Rico (concluded)
- -----------------------------------------------------------------------------------------------------------------------------------
A Baa1 $15,495 Puerto Rico Commonwealth, Highway and Transportation
Authority, Transportation Revenue Refunding Bonds, Series D,
5.75% due 7/01/2041 $ 17,618
---------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth, Public Improvement, GO, Series A:
A- Baa1 4,600 5.25% due 7/01/2019 5,048
A- Baa1 7,475 5.25% due 7/01/2020 8,155
---------------------------------------------------------------------------------------------------------
A- A3 4,750 Puerto Rico Electric Power Authority, Power Revenue Bonds,
Series NN, 5.125% due 7/01/2029 4,989
---------------------------------------------------------------------------------------------------------
NR* Aa2 5,600 Puerto Rico Public Finance Corporation Revenue Bonds,
DRIVERS, Series 272, 10.086% due 8/01/2030 (g) 6,529
===================================================================================================================================
Guam--1.0%
- -----------------------------------------------------------------------------------------------------------------------------------
A.B. Won Guam International Airport Authority, General
Revenue Refunding Bonds, AMT, Series C (e):
AAA Aaa 3,700 5.25% due 10/01/2021 4,011
AAA Aaa 1,050 5.25% due 10/01/2022 1,131
---------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Cost--$752,870)--161.9% 801,530
=========================================================================================================
Shares
Held Short-Term Investments
===================================================================================================================================
27 CMA New York Municipal Money Fund (n) 27
---------------------------------------------------------------------------------------------------------
Total Short-Term Investments (Cost--$27)--0.0% 27
===================================================================================================================================
Total Investments (Cost--$752,897)--161.9% 801,557
Unrealized Depreciation on Forward Interest Rate Swaps**--(0.7%) (3,456)
Preferred Stock, at Redemption Value--(63.2%) (313,022)
Other Assets Less Liabilities--2.0% 10,002
--------
Net Assets Applicable to Common Stock--100.0% $495,081
========
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FHA Insured.
(d) FSA Insured.
(e) MBIA Insured.
(f) Prerefunded.
(g) 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 February 29, 2004.
(h) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at February
29, 2004.
(i) FNMA Collateralized.
(j) Escrowed to maturity.
(k) XL Capital Insured.
(l) CIFG Insured.
(m) Radian Insured.
(n) 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 (4,487) $ 11
--------------------------------------------------------------------------
* Not Rated.
** Forward interest rate swaps entered into as of February 29, 2004 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 4.363%
Broker, Morgan Stanley Capital Services, Inc.
Expires March 2024 $78,000 $(3,456)
--------------------------------------------------------------------------
Total $(3,456)
=======
+ Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004 11
[LOGO] Merrill Lynch Investment Managers
Statement of Net Assets
As of February 29, 2004
=====================================================================================================================
Assets
- ---------------------------------------------------------------------------------------------------------------------
Investments, at value (identified cost--$752,896,619) ......... $801,556,592
Cash .......................................................... 42,032
Interest receivable ........................................... 10,533,871
Prepaid expenses .............................................. 24,671
------------
Total assets .................................................. 812,157,166
------------
=====================================================================================================================
Liabilities
- ---------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on forward interest rate swaps ........ 3,456,102
Payables:
Investment adviser ......................................... $ 310,813
Dividends to Common Stock shareholders ..................... 206,395
Other affiliates ........................................... 2,810 520,018
-----------
Accrued expenses .............................................. 78,137
------------
Total liabilities ............................................. 4,054,257
------------
=====================================================================================================================
Preferred Stock
- ---------------------------------------------------------------------------------------------------------------------
Preferred Stock, at redemption value, par value $.10 per share
(1,900 Series A Shares, 1,900 Series B Shares, 3,040 Series
C Shares, 3,680 Series D Shares and 2,000 Series E Shares of
AMPS* issued and outstanding at $25,000 per share liquidation
preference) .................................................. 313,021,581
------------
=====================================================================================================================
Net Assets Applicable to Common Stock
- ---------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock ......................... $495,081,328
============
=====================================================================================================================
Analysis of Net Assets Applicable to Common Stock
- ---------------------------------------------------------------------------------------------------------------------
Common Stock, par value $.10 per share (30,784,615 shares
issued and outstanding) ...................................... $ 3,078,462
Paid-in capital in excess of par .............................. 474,902,115
Undistributed investment income--net .......................... $ 6,936,322
Accumulated realized capital losses on investments--net ....... (35,039,442)
Unrealized appreciation on investments--net ................... 45,203,871
-----------
Total accumulated earnings--net ............................... 17,100,751
------------
Total--Equivalent to $16.08 net asset value per share of Common
Stock (market price--$15.16) ................................. $495,081,328
============
* Auction Market Preferred Stock.
See Notes to Financial Statements.
12 MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004
Statement of Operations
For the Six Months Ended February 29, 2004
=============================================================================================================
Investment Income
- -------------------------------------------------------------------------------------------------------------
Interest ............................................. $ 18,244,972
Dividends from affiliates ............................ 11,244
------------
Total income ......................................... 18,256,216
------------
=============================================================================================================
Expenses
- -------------------------------------------------------------------------------------------------------------
Investment advisory fees ............................. $ 2,161,168
Commission fees ...................................... 395,857
Accounting services .................................. 118,130
Transfer agent fees .................................. 38,924
Professional fees .................................... 28,915
Printing and shareholder reports ..................... 24,701
Custodian fees ....................................... 20,101
Directors' fees and expenses ......................... 16,462
Listing fees ......................................... 14,303
Pricing fees ......................................... 11,983
Other ................................................ 37,895
-----------
Total expenses before waiver and reimbursement ....... 2,868,439
Waiver and reimbursement of expenses ................. (181,300)
-----------
Total expenses after waiver and reimbursement ........ 2,687,139
------------
Investment income--net ............................... 15,569,077
------------
=============================================================================================================
Realized & Unrealized Gain (Loss) on Investments--Net
- -------------------------------------------------------------------------------------------------------------
Realized loss on investments--net .................... (276,345)
Change in unrealized appreciation on investments--net 27,631,695
------------
Total realized and unrealized gain on investments--net 27,355,350
------------
=============================================================================================================
Dividends to Preferred Stock Shareholders
- -------------------------------------------------------------------------------------------------------------
Investment income--net ............................... (1,225,002)
------------
Net Increase in Net Assets Resulting from Operations . $ 41,699,425
============
See Notes to Financial Statements.
MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004 13
[LOGO] Merrill Lynch Investment Managers
Statements of Changes in Net Assets
For the Six For the
Months Ended Year Ended
February 29, August 31,
Increase (Decrease) in Net Assets: 2004 2003
================================================================================================================
Operations
- ----------------------------------------------------------------------------------------------------------------
Investment income--net ............................... $ 15,569,077 $ 33,504,851
Realized gain (loss) on investments--net ............. (276,345) 7,565,934
Change in unrealized appreciation on investments--net 27,631,695 (24,859,993)
Dividends to Preferred Stock shareholders ............ (1,225,002) (3,268,878)
-------------------------------
Net increase in net assets resulting from operations . 41,699,425 12,941,914
-------------------------------
================================================================================================================
Dividends to Common Stock Shareholders
- ----------------------------------------------------------------------------------------------------------------
Investment income--net ............................... (14,130,138) (27,613,800)
-------------------------------
Net decrease in net assets resulting from dividends to
Common Stock shareholders ........................... (14,130,138) (27,613,800)
-------------------------------
================================================================================================================
Net Assets Applicable to Common Stock
- ----------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets applicable to
Common Stock ........................................ 27,569,287 (14,671,886)
Beginning of period .................................. 467,512,041 482,183,927
-------------------------------
End of period* ....................................... $ 495,081,328 $ 467,512,041
===============================
* Undistributed investment income--net ............ $ 6,936,322 $ 6,722,385
===============================
See Notes to Financial Statements.
14 MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004
Financial Highlights
The following per share data and ratios have been derived For the Six
from information provided in the financial statements. Months Ended For the Year Ended August 31,
February 29, -------------------------------------------
Increase (Decrease) in Net Asset Value: 2004 2003 2002 2001++ 2000++
==============================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ...... $ 15.19 $ 15.66 $ 15.78 $ 14.19 $ 14.16
--------------------------------------------------------
Investment income--net .................... .51+ 1.09+ 1.07+ 1.12+ 1.13
Realized and unrealized gain (loss) on
investments--net ......................... .88 (.58) (.19) 1.52 .08
Dividends to Preferred Stock shareholders:
Investment income--net ................. (.04) (.08) (.12) (.27) (.37)
Capital charge resulting from issuance of
Preferred Stock .......................... -- -- -- --@@ --
--------------------------------------------------------
Total from investment operations .......... 1.35 .43 .76 2.37 .84
--------------------------------------------------------
Less dividends to Common Stock shareholders
from investment income--net .............. (.46) (.90) (.88) (.78) (.81)
Capital charge resulting from issuance of
Common Stock ............................. -- -- -- --@@ --
--------------------------------------------------------
Net asset value, end of period ............ $ 16.08 $ 15.19 $ 15.66 $ 15.78 $ 14.19
========================================================
Market price per share, end of period ..... $ 15.16 $ 13.79 $ 14.37 $ 14.37 $12.625
========================================================
==============================================================================================================================
Total Investment Return**
- ------------------------------------------------------------------------------------------------------------------------------
Based on market price per share ........... 13.48%@@@ 2.22% 6.49% 20.75% (3.58%)
========================================================
Based on net asset value per share ........ 9.27%@@@ 3.32% 5.68% 17.97% 7.14%
========================================================
==============================================================================================================================
Ratios Based on Average Net Assets of Common Stock
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver and
reimbursement and excluding reorganization
expenses*** .............................. 1.13%* 1.13% 1.16% 1.14% 1.17%
========================================================
Total expenses, excluding reorganization
expenses*** .............................. 1.20%* 1.20% 1.23% 1.24% 1.29%
========================================================
Total expenses*** ......................... 1.20%* 1.20% 1.26% 1.32% 1.46%
========================================================
Total investment income--net*** ........... 6.52%* 6.96% 7.01% 7.46% 8.58%
========================================================
Amount of dividends to Preferred Stock
shareholders ............................. .51%* .68% .98% 2.22% 2.90%
========================================================
Investment income--net, to Common Stock
shareholders ............................. 6.01%* 6.28% 6.03% 5.24% 5.68%
========================================================
MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004 15
[LOGO] Merrill Lynch Investment Managers
Financial Highlights (concluded)
For the Six
Months Ended For the Year Ended August 31,
The following per share data and ratios have been derived February 29, --------------------------------------------
from information provided in the financial statements. 2004 2003 2002 2001++ 2000++
===============================================================================================================================
Ratios Based on Average Net Assets of Common & Preferred Stock***
- -------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver and
reimbursement and excluding reorganization
expenses ................................. .68%* .68% .70% .68% .67%
=========================================================
Total expenses, excluding reorganization
expenses ................................. .73%* .73% .74% .74% .74%
=========================================================
Total expenses ............................ .73%* .73% .76% .78% .83%
=========================================================
Total investment income--net .............. 3.95%* 4.22% 4.21% 4.41% 4.87%
=========================================================
===============================================================================================================================
Ratios Based on Average Net Assets of Preferred Stock
- -------------------------------------------------------------------------------------------------------------------------------
Dividends to Preferred Stock shareholders . .79%* 1.05% 1.47% 3.21% 3.80%
=========================================================
===============================================================================================================================
Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock, end
of period (in thousands) ................. $495,081 $467,512 $482,184 $485,790 $376,391
=========================================================
Preferred Stock outstanding, end of period
(in thousands) ........................... $313,000 $313,000 $313,000 $313,000 $274,000
=========================================================
Portfolio turnover ........................ 15.96% 59.02% 86.39% 94.03% 85.08%
=========================================================
===============================================================================================================================
Leverage
- -------------------------------------------------------------------------------------------------------------------------------
Asset coverage per $1,000 ................. $ 2,582 $ 2,494 $ 2,541 $ 2,552 $ 2,374
=========================================================
===============================================================================================================================
Dividends Per Share on Preferred Stock Outstanding
- -------------------------------------------------------------------------------------------------------------------------------
Series A--Investment income--net ...... $ 89 $ 247 $ 347 $ 765 $ 890
=========================================================
Series B--Investment income--net ...... $ 81 $ 236 $ 348 $ 784 $ 909
=========================================================
Series C--Investment income--net@ ..... $ 101 $ 258 $ 377 $ 843 $ 503
=========================================================
Series D--Investment income--net@ ..... $ 115 $ 287 $ 391 $ 842 $ 495
=========================================================
Series E--Investment income--net@ ..... $ 87 $ 256 $ 347 $ 818 $ 481
=========================================================
* Annualized.
** Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
different returns. Total investment returns exclude the effects of sales
charges. If applicable, the Fund's Investment Adviser waived a portion of
its management fee. Without such waiver, the Fund's performance would have
been lower.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
+ Based on average shares outstanding.
++ Certain prior year amounts have been reclassified to conform with current
year presentation.
@ The Fund's Preferred Stock was issued on October 7, 1997 for Series A and
B and March 6, 2000 for Series C, D and E.
@@ Amount is less than $(.01) per share.
@@@ Aggregate total investment return.
See Notes to Financial Statements.
16 MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004
Notes to Financial Statements
1. Significant Accounting Policies:
MuniHoldings 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. These
unaudited financial statements reflect all adjustments, which are, in the
opinion of management, necessary to a fair statement of the results for the
interim period presented. All such adjustments are of a normal, recurring
nature. The Fund determines and makes available for publication the net asset
value of its Common Stock on a weekly basis. The Fund's Common Stock is listed
on the New York Stock Exchange under the symbol MHN. The following is a summary
of significant accounting policies followed by the Fund.
(a) Valuation of investments -- Municipal bonds are traded primarily in the
over-the-counter markets and are valued at the last available bid price in the
over-the-counter market or on the basis of yield equivalents as obtained by the
Fund's pricing service from one or more dealers that make markets in the
securities. Financial futures contracts and options thereon, which are traded on
exchanges, are valued at their closing prices as of the close of such exchanges.
Options written or purchased are valued at the last sale price in the case of
exchange-traded options. In the case of options traded in the over-the-counter
market, valuation is the last asked price (options written) or the last bid
price (options purchased). Swap agreements are valued by quoted fair values
received daily by the Fund from the counterparty. Short-term investments with a
remaining maturity of sixty days or less are valued at amortized cost, which
approximates market value. Securities and assets for which market quotations are
not readily available are valued at fair value as determined in good faith by or
under the direction of the Board of Directors of the Fund, including valuations
furnished by a pricing service retained by the Fund, which may utilize a matrix
system for valuations. The procedures of the pricing service and its valuations
are reviewed by the officers of the Fund under the general supervision of the
Board of Directors.
(b) Derivative financial instruments -- The Fund may engage in various portfolio
investment strategies both to increase the return of the Fund and to hedge, or
protect, its exposure to interest rate movements and movements in the securities
markets. Losses may arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
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 may purchase and write call and put options. When the
Fund writes an option, an amount equal to the premium received by the Fund
is reflected as an asset and an equivalent liability. The amount of the
liability is subsequently marked to market to reflect the current market
value of the option written.
When a security is purchased or sold through an exercise of an option, the
related premium paid (or received) is added to (or deducted from) the
basis of the security acquired or deducted from (or added to) the proceeds
of the security sold. When an option expires (or the Fund enters into a
closing transaction), the Fund realizes a gain or loss on the option to
the extent of the premiums received or paid (or gain or loss to the extent
the cost of the closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004 17
[LOGO] Merrill Lynch Investment Managers
Notes to Financial Statements (continued)
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.
(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 .55% of the Fund's average weekly net assets, including
proceeds from the issuance of Preferred Stock. For the six months ended February
29, 2004, FAM earned fees of $2,161,168, of which $171,746 was waived. For the
six months ended February 29, 2004, FAM reimbursed the Fund in the amount of
$9,554.
For the six months ended February 29, 2004, the Fund reimbursed FAM $8,283 for
certain accounting services.
Certain officers and/or directors of the Fund are officers and/or directors of
FAM, PSI, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended February 29, 2004 were $121,574,692 and $112,397,478, respectively.
Net realized gains (losses) for the six months ended February 29, 2004 and net
unrealized gains (losses) as of February 29, 2004 were as follows:
- --------------------------------------------------------------------------------
Realized Unrealized
Gains (Losses) Gains (Losses)
- --------------------------------------------------------------------------------
Long-term investments ................ $ 2,249,892 $ 48,659,973
Forward interest rate swaps .......... (2,526,237) (3,456,102)
---------------------------------
Total ................................ $ (276,345) $ 45,203,871
=================================
As of February 29, 2004, net unrealized appreciation for Federal income tax
purposes aggregated $48,750,060, of which $52,717,364 related to appreciated
securities and $3,967,304 related to depreciated securities. The aggregate cost
of investments at February 29, 2004 for Federal income tax purposes was
$752,806,532.
4. Stock Transactions:
Common Stock
The Fund is authorized to issue 200,000,000 shares of stock, including Preferred
Stock, par value $.10 per share, all of which were initially classified as
Common Stock. The Board of Directors is authorized, however, to reclassify any
unissued shares of stock without approval of holders of Common Stock.
18 MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004
Notes to Financial Statements (concluded)
Preferred Stock
Auction Market Preferred Stock are redeemable shares of Preferred Stock of the
Fund with a par value of $.10 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 for each series. The yields in effect at February 29, 2004 were
as follows: Series A, .70%; Series B, .53%; Series C, .45%; Series D, .85% and
Series E, .90%.
The Fund pays commissions to certain broker-dealers at the end of each auction
at an annual rate ranging from .25% to .375%, calculated on the proceeds of each
auction. For the six months ended February 29, 2004, Merrill Lynch, Pierce,
Fenner & Smith Incorporated, an affiliate of FAM, earned $149,989 as
commissions.
5. Capital Loss Carryforward:
On August 31, 2003, the Fund had a net capital loss carryforward of $24,681,541,
of which $4,116,365 expires in 2007, $3,509,287 expires in 2008 and $17,055,889
expires in 2009. This amount will be available to offset like amounts of any
future taxable gains.
6. Subsequent Event:
The Fund paid a tax-exempt income dividend to holders of Common Stock in the
amount of $.079000 per share on March 30, 2004 to shareholders of record on
March 15, 2004.
MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004 19
[LOGO] Merrill Lynch Investment Managers
Dividend Policy
The Fund's dividend policy is to distribute all or a portion of its net
investment income to its shareholders on a monthly basis. In order to provide
shareholders with a more stable level of dividend distributions, the Fund may at
times pay out less than the entire amount of net investment income earned in any
particular month and may at times in any particular month pay out such
accumulated but undistributed income in addition to net investment income earned
in that month. As a result, the dividends paid by the Fund for any particular
month may be more or less than the amount of net investment income earned by the
Fund during such month. The Fund's current accumulated but undistributed net
investment income, if any, is disclosed in the Statement of Net Assets, which
comprises part of the financial information included in this report.
Quality Profile
The quality ratings of securities in the Fund as of February 29, 2004 were as
follows:
- --------------------------------------------------------------------------------
Percent of
Total
S&P Rating/Moody's Rating Investments
- --------------------------------------------------------------------------------
AAA/Aaa ................................................ 77.4%
AA/Aa .................................................. 3.0
A/A .................................................... 8.5
BBB/Baa ................................................ 2.6
C/C .................................................... 0.1
NR (Not Rated) ......................................... 0.0**
Other* ................................................. 8.4
- --------------------------------------------------------------------------------
* Temporary investments in short-term variable rate municipal securities.
** Amount is less than 0.1%.
20 MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004
Proxy Results
During the six-month period ended February 29, 2004, MuniHoldings New York
Insured Fund Inc.'s Common Stock shareholders voted on the following proposal.
The proposal was approved at a shareholders' meeting on January 30, 2004. A
description of the proposal and number of shares voted are as follows:
- ----------------------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
- ----------------------------------------------------------------------------------------------------------------
1. To elect the Fund's Directors: Terry K. Glenn 29,168,842 929,798
Cynthia A. Montgomery 29,190,236 908,404
Kevin A. Ryan 29,162,888 935,752
Roscoe S. Suddarth 29,173,664 924,976
Edward D. Zinbarg 29,175,669 922,971
- ----------------------------------------------------------------------------------------------------------------
During the six-month period ended February 29, 2004, MuniHoldings New York
Insured Fund Inc.'s Preferred Stock shareholders (Series A - E) voted on the
following proposal. The proposal was approved at a shareholders' meeting on
January 30, 2004. A description of the proposal and number of shares voted are
as follows:
- ----------------------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
- ----------------------------------------------------------------------------------------------------------------
2. To elect the Fund's Board of Directors: Terry K. Glenn 12,078 43
Ronald W. Forbes 12,077 44
Cynthia A. Montgomery 12,077 44
Kevin A. Ryan 12,078 43
Roscoe S. Suddarth 12,078 43
Richard R. West 12,078 43
Edward D. Zinbarg 12,078 43
- ----------------------------------------------------------------------------------------------------------------
MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004 21
[LOGO] Merrill Lynch Investment Managers
Officers and Directors
Terry K. Glenn, President and Director
Ronald W. Forbes, Director
Cynthia A. Montgomery, Director
Kevin A. Ryan, Director
Roscoe S. Suddarth, Director
Richard R. West, Director
Edward D. Zinbarg, Director
Kenneth A. Jacob, Senior Vice President
John M. Loffredo, Senior Vice President
Walter C. O'Connor, Vice President
Robert D. Sneeden, Vice President
Donald C. Burke, Vice President and Treasurer
Phillip S. Gillespie, Secretary
- --------------------------------------------------------------------------------
Charles C. Reilly, Director of MuniHoldings New York Insured Fund, Inc., has
recently retired. The Fund's Board of Directors wishes Mr. Reilly well in his
retirement.
- --------------------------------------------------------------------------------
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Stock:
The Bank of New York
101 Barclay Street -- 7 West
New York, NY 10286
NYSE Symbol
MHN
22 MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004
Electronic Delivery
The Fund offers electronic delivery of communications to its shareholders. In
order to receive this service, you must register your account and provide us
with e-mail information. To sign up for this service, simply access this website
http://www.icsdelivery.com/live and follow the instructions. When you visit this
site, you will obtain a personal identification number (PIN). You will need this
PIN should you wish to update your e-mail address, choose to discontinue this
service and/or make any other changes to the service. This service is not
available for certain retirement accounts at this time.
MUNIHOLDINGS NEW YORK INSURED FUND, INC. FEBRUARY 29, 2004 23
[LOGO] Merrill Lynch Investment Managers www.mlim.ml.com
MuniHoldings New York Insured Fund, Inc. seeks to provide shareholders with
current income exempt from Federal income taxes and New York State and New York
City personal income taxes by investing primarily in a portfolio of long-term,
investment grade municipal obligations, the interest on which, in the opinion of
bond counsel to the issuer, is exempt from Federal income taxes and New York
State and New York City personal income taxes.
This report, including the financial information herein, is transmitted to
shareholders of MuniHoldings New York Insured Fund, Inc. for their information.
It is not a prospectus. 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. Past performance results shown in
this report should not be considered a representation of future performance.
Statements and other information herein are as dated and are subject to change.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free 1-800-MER-FUND (1-800-637-3863); (2)
on www.mutualfunds.ml.com; and (3) on the Securities and Exchange Commission's
website at http://www.sec.gov.
MuniHoldings New York Insured Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
#HOLDNY -- 2/04
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-annual
report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable to this
semi-annual report
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable to this semi-annual
report
Item 8 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 9 - Submission of Matters to a Vote of Security Holders - Not Applicable
Item 10 - Controls and Procedures
10(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others particularly
during the period in which this report is being prepared. The
registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation
of these controls and procedures as of a date within 90 days prior to
the filing date of this report.
10(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
270.30a-3(d)) that occurred during the last fiscal half-year of the
period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 11 - Exhibits attached hereto
11(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
11(a)(2) - Certifications - Attached hereto
11(a)(3) - Not Applicable
11(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
MuniHoldings New York Insured Fund, Inc.
By: /s/ Terry K. Glenn
--------------------------------
Terry K. Glenn,
President of
MuniHoldings New York Insured Fund, Inc.
Date: April 16, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by
the following persons on behalf of the registrant and in the capacities
and on the dates indicated.
By: /s/ Terry K. Glenn
--------------------------------
Terry K. Glenn,
President of
MuniHoldings New York Insured Fund, Inc.
Date: April 16, 2004
By: /s/ Donald C. Burke
--------------------------------
Donald C. Burke,
Chief Financial Officer of
MuniHoldings New York Insured Fund, Inc.
Date: April 16, 2004