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 811-06645
Name of Fund: MuniYield California Insured Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief
Executive Officer, MuniYield California 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: 10/31/05
Date of reporting period: 11/01/04 - 04/30/05
Item 1 - Report to Stockholders
MuniYield Arizona Fund, Inc.
MuniYield California Fund, Inc.
MuniYield California Insured Fund, Inc.
MuniYield Florida Fund
MuniYield Michigan Insured Fund II, Inc.
MuniYield New York Insured Fund, Inc.
Semi-Annual Reports
April 30, 2005
(BULL LOGO) Merrill Lynch Investment Managers
www.mlim.ml.com
Mercury Advisors
A Division of Merrill Lynch Investment Managers
www.mercury.ml.com
These reports, including the financial information herein, are transmitted
to shareholders of MuniYield Arizona Fund, Inc., MuniYield California Fund,
Inc., MuniYield California Insured Fund, Inc., MuniYield Florida Fund,
MuniYield Michigan Insured Fund II, Inc. and MuniYield New York Insured
Fund, Inc. for their information. This is not a prospectus. Past performance
results shown in these reports should not be considered a representation of
future performance. The Funds have leveraged their Common Shares/Stock and
intend to remain leveraged by issuing Preferred Shares/Stock to provide
the Common Shareholders/ Common Stock shareholders with potentially higher
rates of return. Leverage creates risks for Common Shareholders/Common Stock
shareholders, including the likelihood of greater volatility of net asset
value and market price of shares of the Common Shares/Stock, and the risk
that fluctuations in the short-term dividend rates of the Preferred Shares/
Stock may affect the yield to Common Shareholders/Common Stock shareholders.
Statements and other information herein are as dated and are subject to
change.
A description of the policies and procedures that the Funds use 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) at www.mutualfunds.ml.com; and (3) on the Securities and Exchange
Commission's Web site at http://www.sec.gov. Information about how the
Funds vote proxies relating to securities held in the Funds' portfolios
during the most recent 12-month period ended June 30 is available (1) at
www.mutualfunds.ml.com; and (2) on the Securities and Exchange Commission's
Web site at http://www.sec.gov.
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MuniYield Arizona Fund, Inc.
MuniYield California Fund, Inc.
MuniYield California Insured Fund, Inc.
MuniYield Florida Fund
MuniYield Michigan Insured Fund II, Inc.
MuniYield New York Insured Fund, Inc.
The Benefits and Risks of Leveraging
The Funds utilize leveraging to seek to enhance the yield and net asset
value of their Common Shares/Common Stock. However, these objectives cannot
be achieved in all interest rate environments. To leverage, the Funds issue
Preferred Shares/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
Shares/Stock, is paid to Common Shareholders/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 Funds' Common Shares/
Stock. However, in order to benefit Common Shareholders/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
Shareholders/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 Shares/Stock
capitalization of $100 million and the issuance of Preferred Shares/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 Shares/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.
In this case, the dividends paid to Preferred Shareholders/Preferred Stock
shareholders are significantly lower than the income earned on the fund's
long-term investments, and therefore the Common Shareholders/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
Shares/Stock will be reduced or eliminated completely. At the same time,
the market value of the fund's Common Shares/Stock (that is, its price as
listed on the American Stock Exchange) may, as a result, decline.
Furthermore, if long-term interest rates rise, the Common Shares'/Stocks'
net asset value will reflect the full decline in the price of the portfolio's
investments, since the value of the fund's Preferred Shares/Stock does not
fluctuate. In addition to the decline in net asset value, the market value
of the fund's Common Shares/Stock may also decline.
As a part of their investment strategy, the Funds 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
Funds 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 Funds invest in inverse floaters, the
market value of each Fund's portfolio and the net asset value of each
Fund's shares may also be more volatile than if the Funds did not invest in
these securities. As of April 30, 2005, the percentages of MuniYield Arizona
Fund, Inc.'s, MuniYield California Fund, Inc.'s, MuniYield California
Insured Fund, Inc.'s, MuniYield Florida Fund's, MuniYield Michigan Insured
Fund II, Inc.'s and MuniYield New York Insured Fund, Inc.'s total net assets
invested in inverse floaters were 12.33%, 5.51%, 8.31%, 6.47%, 11.76% and
11.66%, respectively, before the deduction of Preferred Shares/Stock.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
A Letter From the President
Dear Shareholder
Financial markets faced a number of crosscurrents over the past several
months, but most major benchmarks managed to post positive returns for the
annual and semi-annual reporting periods ended April 30, 2005:
Total Returns as of April 30, 2005 6-month 12-month
U.S. equities (Standard & Poor's 500 Index) +3.28% + 6.34%
Small-cap U.S. equities (Russell 2000 Index) -0.15% + 4.71%
International equities (MSCI Europe Australasia Far East Index) +8.71% +14.95%
Fixed income (Lehman Brothers Aggregate Bond Index) +0.98% + 5.26%
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +1.93% + 6.81%
High yield bonds (Credit Suisse First Boston High Yield Index) +0.65% + 6.92%
After expanding at an annualized rate of 4.4% in 2004, U.S. gross domestic
product growth for the first quarter of 2005 came in at an estimated 3.1%
(although that figure was later revised upward to 3.5%). Nevertheless, the
Federal Reserve Board continued increasing interest rates at a measured
pace to combat emergent inflation. The most recent hike came on May 3, and
brought the federal funds rate to 3%. Recently, signs of inflation have
taken the form of rising business costs and increasing consumer prices,
particularly in the areas of gasoline, healthcare, housing and education.
U.S. equities ended 2004 in a strong rally, but stumbled into negative
territory in 2005. The market weakness was largely fueled by the potential
for slowing economic and corporate earnings growth, renewed energy price
concerns and a lack of investor conviction. On the positive side, certain
sectors of the market have been performing well (particularly energy) and
corporate transactions, such as mergers and acquisitions, stock buy-backs
and dividend payouts, have all increased. International equities,
especially in Asia, have benefited from higher economic growth rates.
In the bond market, we witnessed a yield curve flattening trend over the
past several months as short-term yields increased and longer-term interest
rates remained more stable or fell. At the end of April 2005, the two-year
Treasury note yielded 3.66% and the 10-year Treasury note yielded 4.21%, a
difference of 55 basis points (.55%). This compared to a spread of 149 basis
points six months earlier and 222 basis points 12 months ago.
Looking ahead, the environment is likely to be a challenging one for
investors. With this in mind, we encourage you to meet with your financial
advisor to review your goals and asset allocation and to rebalance your
portfolio, as necessary, to ensure it remains aligned with your objectives
and risk tolerance. As always, 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,
(Robert C. Doll, Jr.)
Robert C. Doll, Jr.
President and Director/Trustee
SEMI-ANNUAL REPORTS, APRIL 30, 2005
A Discussion With Your Funds' Portfolio Managers
We looked to security and sector selection as the drivers of Fund returns,
while remaining committed to our goals of preserving net asset value and
providing our shareholders with competitive yields.
Describe the recent market environment relative to municipal bonds.
Amid significant volatility, long-term bond yields moved lower over the
past six months as shorter-term rates increased. For all of 2004, real
gross domestic product (GDP) grew at an annualized rate of 4.4%, well ahead
of 2003's annual rate of 3%. An advanced estimate of first quarter 2005 GDP
growth came in at an unexpectedly low 3.1%, although that figure was later
revised upward to 3.5%.
Nevertheless, it appeared that continued economic improvements were generally
disregarded as investors focused on inflationary trends, currency-related
demand for long-term U.S. securities, and interest rate action on the part
of the Federal Reserve Board (the Fed). Over the past six months, 30-year
Treasury bond yields declined 28 basis points (.28%) to 4.51%, while 10-year
Treasury note yields rose 16 basis points to 4.21%. The Fed, in the meantime,
continued to raise short-term interest rates at each of its meetings
throughout the period, and most recently rose the federal funds rate from
2.75% to 3% on May 3. As short-term interest rates increased while longer-
term interest rates fell, the yield curve continued to flatten.
Tax-exempt bond yields exhibited a similar pattern during the period. Yields
on 30-year revenue bonds, as measured by the Bond Buyer Revenue Bond Index,
fell 14 basis points to 4.83%. According to Municipal Market Data, yields
on AAA-rated issues maturing in 30 years declined 23 basis points to 4.37%,
while AAA-rated bonds maturing in 10 years saw their yields rise 17 basis
points to 3.57%.
During the past six months, more than $186 billion in tax-exempt bonds was
underwritten, an increase of 7.5% versus the same period a year earlier.
Issuance so far in 2005 has been boosted by a 32% increase in refunding
issues as municipalities have sought to refinance existing higher-coupon debt.
These refunding issues have been heavily weighted in the 10-year - 20-year
maturity range to lower the overall interest costs. This concentration has
put pressure on intermediate tax-exempt bond yields while supporting
longer-term bond prices.
Investor demand for municipal product remained generally positive during
the period. Investment Company Institute statistics indicate that, year-to-
date through March 31, 2005, net new cash flows into long-term municipal
bond funds exceeded $1.3 billion. This represented a significant improvement
from the $516 million seen during the same period in 2004. However, AMG Data
Services reports that weekly figures for the month of April have shown a
modest reversal in the positive flows seen in the first three months of
the year.
MuniYield Arizona Fund, Inc.
Describe conditions in the State of Arizona.
In March 2005, credit rating agency Moody's issued its first-ever issuer
rating on the State of Arizona, a measure that reflects the overall credit
quality of the state. Moody's rating of Aa3, with a stable outlook, was
based on Arizona's trend of economic growth and diversification, particularly
in high-technology manufacturing and tourism; a track record of reasonably
strong budgetary and financial management; and moderate state debt levels
that are coming under slight pressure from school construction needs.
Indicators for Arizona's fiscal year 2005 (which ends June 30, 2005) show
continued economic improvement in the state and increasing revenue
collections. Through March 2005, General Fund collections exceeded the
fiscal year-to-date forecast by $411.5 million and, after adjusting for one-
time revenues, were $835.5 million ahead of collections as of the same time
last year. The strong performance continues to be driven by growth in sales
taxes, a particularly favorable indicator of economic improvement, as well
as growth in individual and corporate income taxes. Other major economic
indicators - state job growth, the tourism barometer and the number of
families receiving public subsidies - also are showing signs of recovery.
Although the state's unemployment rate rose to 4.7% in March 2005 from 4.1%
in January 2005, the increase is attributed to a surge in the number of job
seekers rather than declining employment and still represents an
improvement from year-ago levels.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
How did the Fund perform during the period?
For the six-month period ended April 30, 2005, the Common Stock of
MuniYield Arizona Fund, Inc. had net annualized yields of 6.25% and 6.23%,
based on a period-end per share net asset value of $14.90 and a per share
market price of $14.95, respectively, and $.462 per share income dividends.
Over the same period, the total investment return on the Fund's Common
Stock was +2.34%, based on a change in per share net asset value from
$15.04 to $14.90, and assuming reinvestment of all distributions.
The Fund provided a positive total return for the period, despite our
maintaining a defensive market posture. That is, we were positioned for
rising interest rates, while long-term interest rates actually declined
over the past six months. Benefiting performance was the Fund's above-
average yield, which allowed us to continue providing a stable monthly
dividend to shareholders. The advance refunding of a sizable credit in the
portfolio also aided performance. When municipal bonds are refinanced ahead
of their maturity date, their prices generally increase sharply.
Hindering Fund returns during the period was our underexposure to longer-
maturity bonds. As the yield curve flattened over the past six months,
longer-maturity bonds significantly outperformed shorter-maturity issues.
While we have been pursuing a strategy of moving further out on the yield
curve, generally into the 25-year maturity range, we were not able to
effect this trade as much as we would have liked in the current low
interest rate environment. Because many of the shorter-maturity bonds
booked in the portfolio have greater yields than those available in the
current environment, we were reluctant to give them up in order to extend
our average portfolio maturity. Further compounding our inability to
purchase longer-dated bonds was the fact that recent supply has been
largely concentrated in the short-term and intermediate-term range.
Finally, the Fund experienced an extraordinary redemption of a holding
during the period. Working with our Municipal Research Group, we will be
looking to recommit these monies to the long end of the Arizona tax-exempt
market.
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 American Stock Exchange), and
assuming reinvestment of dividends, please refer to the Financial Highlights
section of 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
returns based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
We did not significantly alter the Fund's structure or our strategy over
the past six months. We continued to selectively purchase higher-yielding
credits in an effort to enhance the Fund's yield. As in previous periods,
we continued to favor premium-coupon bonds, when available, and maturities
in the 20-year - 25-year range. This supports our defensive market posture,
in that these bonds offer coupon protection when interest rates move
higher. We generally maintained the Fund's fully invested position
throughout the period, seeking to enhance shareholder income.
As mentioned earlier, the major market phenomenon over the past six months
was a flattening of the yield curve. Yields on shorter-term bonds,
specifically those with maturities less than 15 years or 20 years, rose
rather significantly. Yields on longer-term bonds, generally those past the
20-year range, actually declined. Given that bond prices move in the
opposite direction of yields, the result has been that bonds on the long
end of the municipal yield curve performed well while short-term bonds
lagged. Thus, our strategy of targeting new purchases in the 25-year area
has been prudent.
Supply of new Arizona debt, while fairly regular, offered few bonds with
the maturities and yield characteristics we desired. Nevertheless, we were
able to take advantage of Puerto Rico-issued municipal debt during the
period as opportunities presented themselves.
For the six-month period ended April 30, 2005, the Fund's Auction Market
Preferred Stock (AMPS) had an average yield of 1.61% for Series A and 1.66%
for Series B. At this point in the Fed's monetary tightening cycle,
interest rate increases are having a material impact on the Fund's
borrowing costs. The Fed raised the short-term interest rate target 100
basis points during the six-month period. Still, the tax-exempt yield curve
remained relatively steep and continued to generate an income benefit to
the holders of Common Stock from the leveraging of Preferred Stock.
However, should the spread between short-term and long-term interest rates
narrow, the benefits of leveraging will decline and, as a result, reduce
the yield on the Fund's Common Stock. At the end of the period, the Fund's
leverage amount, due to AMPS, was 31.22% of total net assets. (For a more
complete explanation of the benefits and risks of leveraging, see page 2 of
this report to shareholders.)
SEMI-ANNUAL REPORTS, APRIL 30, 2005
A Discussion With Your Funds' Portfolio Managers (continued)
How would you characterize the Fund's position at the close of the period?
We remain focused on premium-coupon bonds and continue to favor maturities
in the 25-year range. We maintained a slightly defensive market posture at
the close of the period in recognition of generally healthy economic
conditions. We believe this positioning prepares the Fund for relative
outperformance once long-term market rates eventually begin to follow short-
term rates higher. In the meantime, our fully invested stance should
continue to provide an income benefit to Common Stock shareholders.
MuniYield California Fund, Inc.
Describe conditions in the State of California.
California began 2005 facing a budget shortfall of approximately $8.6 billion.
In his January State of the State address, Governor Arnold Schwarzenegger
outlined steps to address the state's fiscal woes. These steps included new
debt in the form of additional "economic recovery" bonds and notes, tribal
gaming revenue bonds, a possible pension obligation bond, cutbacks in state
spending on local school districts and other nonspecific budget cuts. The
original 2005 budget passed by the state's legislature relied heavily on an
improving economy to generate sizable revenue improvements, but planned
spending cuts proved more difficult to enact.
During 2004, each of the three major rating agencies upgraded California's
long-term credit rating, recognizing that last year's budget was met
through a relatively aggressive borrowing program accomplished in a period
of attractive financing rates. However, the credit-rating upgrades were not
based on any significant progress in mending the underlying budget
problems.
Credit spreads for California general obligation debt have continued to
narrow, suggesting strong demand despite the lack of any increased fiscal
responsibility in the state. At the height of the state's budget troubles,
California general obligation bonds offered as much as 80 additional basis
points in income over comparable AAA-rated tax-exempt securities. By period-
end, that spread had narrowed to between 10 basis points and 20 basis
points. "Cushion securities" - higher-coupon, defensively structured bonds
that are popular when the market is anticipating higher interest rates -
were spread even tighter.
How did the Fund perform during the period?
For the six-month period ended April 30, 2005, the Common Stock of
MuniYield California Fund, Inc. had net annualized yields of 6.07% and
6.58%, based on a period-end per share net asset value of $15.06 and a per
share market price of $13.88, respectively, and $.453 per share income
dividends. Over the same period, the total investment return on the Fund's
Common Stock was +1.93%, based on a change in per share net asset value
from $15.27 to $15.06, and assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, trailed its comparable
Lipper category of California Municipal Debt Funds, which had an average
return of +4.17% for the six-month period. (Funds in this Lipper category
invest primarily in municipal debt issues exempt from taxation in the State
of California.) The Fund's underperformance can be attributed in part to
having a lower degree of leverage than many of its peers, which detracted
from results as long-term interest rates declined significantly in
California in response to strong demand for the state's bonds. In addition,
the Fund was underweighted in bonds backed by tobacco company revenues, a
stance that hurt relative performance as credit spreads narrowed and these
lower-rated securities outperformed. Throughout the period, we continued to
emphasize a relatively high degree of credit quality and a below-average
duration, or sensitivity to changes in interest rates. Our short duration
benefited performance during periods when long-term interest rates rose,
such as in March, but hindered results as the overall trend during the
period was toward lower long-term interest rates.
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 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 returns based on changes in the Fund's net asset value.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
What changes were made to the portfolio during the period?
During the past six months, we emphasized a defensive market positioning,
keeping the Fund's duration below that of its peers. Although this strategy
had a negative impact on results as long-term interest rates fell early in
the period, it helped performance in March as the market experienced its
first sustained trend of rising long-term interest rates.
With yields on 10-year Treasury securities reaching as high as 4.68% during
the period, we began to take advantage of market weakness to move the
portfolio toward a more neutral duration stance - a process we expect to
continue if interest rates increase further. To increase the Fund's
duration, we bought some more aggressively structured bonds, including zero-
coupon bonds.
We kept the Fund's cash reserves at minimal levels (generally less than 1%)
throughout the period given the extraordinarily high demand relative to
supply in the short-term California tax-exempt marketplace. The Fund's
credit quality changed little during the period, with 84% of portfolio
assets rated AA or higher at period-end.
For the six-month period ended April 30, 2005, the Fund's Auction Market
Preferred Stock (AMPS) had average yields as follows: 1.82% for Series A,
1.52% for Series B and 1.24% for Series C. At this point in the Fed's
monetary tightening cycle, interest rate increases are having a material
impact on the Fund's borrowing costs. The Fed raised the short-term
interest rate target 100 basis points during the six-month period. Still,
the tax-exempt yield curve remained relatively steep and continued to
generate an income benefit to the holders of Common Stock from the
leveraging of Preferred Stock. However, should the spread between short-
term and long-term interest rates narrow, the benefits of leveraging will
decline and, as a result, reduce the yield on the Fund's Common Stock. At
the end of the period, the Fund's leverage amount, due to AMPS, was 30.39%
of total net 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 Fund's position at the close of the period?
The portfolio was defensively positioned at period-end, although we are
seeking opportunities to bolster the Fund's current yield and add to its
income stream. We will continue to monitor the economic landscape for
possible interest rate back-ups, which may present an opportunity to
increase the Fund's duration to neutral or possibly even an aggressive
stance.
Credit spreads for lower investment grade bonds have reached historically
tight ratios, which we believe makes it inadvisable to lower the
portfolio's credit profile in our search for higher yields. Accordingly, we
plan to maintain the Fund's high degree of credit quality.
MuniYield California Insured Fund, Inc.
Describe conditions in the State of California.
California began 2005 facing a budget shortfall of approximately $8.6
billion. In his January State of the State address, Governor Arnold
Schwarzenegger outlined steps to address the state's fiscal woes. These
steps included new debt in the form of additional "economic recovery" bonds
and notes, tribal gaming revenue bonds, a possible pension obligation bond,
cutbacks in state spending on local school districts and other nonspecific
budget cuts. The original 2005 budget passed by the state's legislature
relied heavily on an improving economy to generate sizable revenue
improvements, but planned spending cuts proved more difficult to enact.
During 2004, each of the three major rating agencies upgraded California's
long-term credit rating, recognizing that last year's budget was met
through a relatively aggressive borrowing program accomplished in a period
of attractive financing rates. However, the credit-rating upgrades were not
based on any significant progress in mending the underlying budget
problems.
Credit spreads for California general obligation debt have continued to
narrow, suggesting strong demand despite the lack of any increased fiscal
responsibility in the state. At the height of the state's budget troubles,
California general obligation bonds offered as much as 80 additional basis
points in income over comparable AAA-rated tax-exempt securities. By period-
end, that spread had narrowed to between 10 basis points and 20 basis
points. "Cushion securities" - higher-coupon, defensively structured bonds
that are popular when the market is anticipating higher interest rates -
were spread even tighter.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
A Discussion With Your Funds' Portfolio Managers (continued)
How did the Fund perform during the period?
For the six-month period ended April 30, 2005, the Common Stock of
MuniYield California Insured Fund, Inc. had net annualized yields of 5.80%
and 6.35%, based on a period-end per share net asset value of $15.23 and a
per share market price of $13.91, respectively, and $.438 per share income
dividends. Over the same period, the total investment return on the Fund's
Common Stock was +3.24%, based on an unchanged per share net asset value of
$15.23, and assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, modestly trailed its
comparable Lipper category of California Insured Municipal Debt Funds,
which had an average return of +3.36% for the six-month period. (Funds in
this Lipper category invest primarily in municipal debt issues exempt from
taxation in the State of California and insured as to timely payment.) The
Fund's performance during the period reflects a relatively high degree of
credit quality in the portfolio's asset mix and a below-average duration,
or level of interest rate sensitivity. Given our high-quality portfolio, we
did not have as much exposure as some of our peers to lower-quality issues,
which performed strongly as credit spreads continued to narrow. Likewise,
our relatively short duration, although it benefited performance in March
as long-term interest rates increased, hindered results during this
particular six-month period as the general trend in interest rates was
downward. Overall, however, the Fund continued to provide a competitive
yield while maintaining a high credit quality portfolio.
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 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 returns based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
During the past six months, we emphasized a defensive market positioning,
keeping the Fund's duration below that of its peers. Although this strategy
had a negative impact on results as long-term interest rates fell early in
the period, it helped performance in March as the market experienced its
first sustained trend of rising long-term interest rates.
With yields on 10-year Treasury securities reaching as high as 4.68% during
the period, we began to take advantage of market weakness to move the
portfolio to a more neutral duration stance - a process we expect to
continue if rates increase further. To that end, we bought some more
aggressively structured bonds, including zero-coupon bonds, to increase the
Fund's duration. Toward the end of the period, we also engaged in selective
swap transactions designed to improve the portfolio's call structure and
relative liquidity. The Fund's already high credit quality improved during
the period, with nearly 94% of portfolio assets rated AAA with bond
insurance at period-end.
For the six-month period ended April 30, 2005, the Fund's Auction Market
Preferred Stock (AMPS) had average yields as follows: 1.47% for Series A,
1.61% for Series B, 1.48% for Series C, 1.84% for Series D and 1.53% for
Series E. At this point in the Fed's monetary tightening cycle, interest
rate increases are having a material impact on the Fund's borrowing costs.
The Fed raised the short-term interest rate target 100 basis points during
the six-month period. Still, the tax-exempt yield curve remained relatively
steep and continued to generate an income benefit to the holders of Common
Stock from the leveraging of Preferred Stock. However, should the spread
between short-term and long-term interest rates narrow, the benefits of
leveraging will decline and, as a result, reduce the yield on the Fund's
Common Stock. At the end of the period, the Fund's leverage amount, due to
AMPS, was 30.53% of total net 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 Fund's position at the close of the period?
The Fund remained defensively positioned at period-end, although a move
toward neutral has already begun. We will continue to monitor the economic
landscape and take advantage of appropriate market conditions to increase
the Fund's duration to neutral or possibly even an aggressive stance.
Further moves in that direction will require weakness in the bond market,
allowing us to take advantage of the relatively attractive prices.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
We are looking to bolster the Fund's current yield and add to its income
stream when opportunities present themselves. However, we are not inclined
to lower the portfolio's credit profile in search of higher yields, as
credit spreads for uninsured bonds have already reached historically tight
ratios. Accordingly, we plan to maintain the Fund's high degree of credit
quality and continue our emphasis of AAA-rated insured bonds.
MuniYield Florida Fund
Describe conditions in the State of Florida.
During the past several months, ratings agency Moody's increased Florida's
credit rating from AA2 to AA1, and Standard & Poor's increased its rating
from AA+ to AAA. At period-end, Fitch maintained a rating of AA. The
favorable ratings are based on the state's solid economic and financial
performance, in addition to moderate debt and a proactive government that
responds to economic downturns faster than other states.
Last year's hurricane season had little impact on the state's finances.
Florida's continued economic strength is bolstered by robust population
growth, which is attributed to its attractive physical environment and
favorable business climate. Although the growth in population has put a
strain on services such as education, transportation and healthcare, it
also has allowed the state to recover more quickly from sub par economic
trends.
Currently, the state's revenues are higher than budgeted and expenditures
remain under control due to prudent fiscal oversight. The fiscal year 2005
budget was brought into balance through tight expenditure controls,
including outsourcing work and requiring local governments to pick up costs
historically incurred by the state. To pay for these additional expenses,
municipalities imposed increases to property taxes and/or local sales taxes
through voter initiatives. Given the government's concerns over the high
healthcare costs facing the state - roughly $15 billion or 26% in the
upcoming budget - Governor Jeb Bush has proposed a partially private health
insurance plan. Florida continues to maintain sound and solid fund balances
with consistent General Fund operations. In addition, the state has a
working Capital Reserve Fund and a Budget Stabilization Fund in excess of
$1.8 billion.
How did the Fund perform during the period?
For the six-month period ended April 30, 2005, the Common Shares of
MuniYield Florida Fund had net annualized yields of 6.09% and 6.56%, based
on a period-end per share net asset value of $15.30 and a per share market
price of $14.20, respectively, and $.462 per share income dividends. Over
the same period, the total investment return on the Fund's Common Shares
was +3.49%, based on a change in per share net asset value from $15.27 to
$15.30, and assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, outpaced the +3.23%
average return of the Lipper Florida Municipal Debt Funds category for the
six-month period. (Funds in this Lipper category limit their investment to
securities exempt from taxation in Florida or a city in Florida).
Contributing most to performance during the period was our yield curve
positioning. Essentially, we continued to focus on the longer end of the
curve, which significantly outperformed the short end as the yield curve
flattened and shorter-term bond prices suffered. Also benefiting
performance were the Fund's uninsured credits, which performed particularly
well during the period, especially our investments in the Florida hospital
sector. Finally, our commitment to an above-average coupon structure
ultimately contributed to returns.
For a description of the Fund's total investment return based on a change
in the per share market value of the Fund's Common Shares (as measured by
the trading price of the Fund's shares on the New York Stock Exchange), and
assuming reinvestment of dividends, please refer to the Financial
Highlights section of this report. As a closed-end fund, the Fund's shares
may trade in the secondary market at a premium or discount to the Fund's
net asset value. As a result, total investment returns based on changes in
the market value of the Fund's Common Shares can vary significantly from
total investment returns based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
We did not make any material changes to our strategy or to the portfolio's
structure over the past six months. Although the market was quite volatile,
ultimately, it moved very little from where we started the period. We
continued to focus on increasing the income provided to shareholders and
muting the Fund's net asset value volatility.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
A Discussion With Your Funds' Portfolio Managers (continued)
To that end, we sought to sell bonds in the 10-year - 15-year maturity
range, although this proved more challenging in recent months as the yield
curve flattened and bonds in the intermediate range began to cheapen
relative to longer-dated securities. In making new purchases, we focused on
premium-coupon bonds in the 20-year - 30-year maturity range. Efforts on
this front also were somewhat limited, as few new issues met our desired
investment characteristics. While issuance of Florida municipal bonds
increased 29% versus the same six-month period a year ago, the majority of
the new issues offered maturities of only 15 years - 20 years and yields
below 5%. We were not inclined to give up bonds booked in the portfolio at
higher yields in order to take advantage of the new-issue calendar.
For the six-month period ended April 30, 2005, the Fund's Auction Market
Preferred Shares (AMPS) had an average yield of 1.63% for Series A and
1.52% for Series B. At this point in the Fed's monetary tightening cycle,
interest rate increases are having a material impact on the Fund's
borrowing costs. The Fed raised the short-term interest rate target 100
basis points during the six-month period. Despite the recent Fed rate
increases, the tax-exempt yield curve has remained relatively steep and has
continued to generate an income benefit to the holders of Common Shares
from the leveraging of Preferred Shares. However, should the spread between
short-term and long-term interest rates narrow, the benefits of leverage
will decline and, as a result, reduce the yield on the Fund's Common
Shares. At the end of the period, the Fund's leverage amount, due to AMPS,
was 31.42% of total net assets. (For a complete explanation of the benefits
and risks of leveraging, see page 2 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
We maintained a slightly defensive market posture at the close of the
period. The Fed is expected to continue its monetary tightening program,
which should eventually prompt long-term market rates to follow short-term
rates higher. We believe our defensive stance should ready the Fund for
relative outperformance under these circumstances.
As long as the municipal yield curve remains fairly steep, we will continue
in our efforts to sell the intermediate part of the curve and use periods
of volatility to pursue higher-coupon bonds whenever they are attractively
priced. We believe this strategy has served the Fund well against the
prevailing market and economic backdrop.
MuniYield Michigan Insured Fund II, Inc.
Describe conditions in the State of Michigan.
At period-end, Michigan maintained credit ratings of Aa2, AA and AA from
Moody's, Standard & Poor's and Fitch, respectively, each with a stable
outlook. All three agencies downgraded the state during the period, citing
the troubled automotive sector and worse-than-expected revenue collection
estimates. However, Michigan's debt levels are quite low for a populous
state and provide it with valuable financial flexibility in responding to
economic downturns. Another positive is that the state's pension system is
well funded.
Michigan's 2004 fiscal year ended with a surplus exceeding $155 million,
all of which was used, along with money from spending cuts and the Medicaid
trust fund, to close a $375 million budget shortfall for fiscal year 2005.
The state's proposed 2006 budget eliminates a $770 million general fund
deficit mostly through spending cuts with some additional new taxes. The
budget relies very little on the use of one-time revenue sources that will
be unavailable in future years.
Michigan's economy continues to lag the national recovery as well as that
of other Great Lakes states. Employment in the state fell in 2004,
representing the fourth consecutive annual decline. The manufacturing
sector, led by the auto industry and General Motors Corp. in particular, is
responsible for the job losses, which have caused stagnant state revenue
growth. Without growth from other job sectors, Michigan could face
additional credit-rating downgrades. On the positive side, preliminary
February 2005 employment data showed an increase from a year earlier, and
the annual rate of job losses in Michigan has declined each year since
2001.
How did the Fund perform during the period?
For the six-month period ended April 30, 2005, the Common Stock of
MuniYield Michigan Insured Fund II, Inc., had net annualized yields of
6.07% and 6.48%, based on a period-end per share net asset value of $15.04
and a per share market price of $14.10, respectively, and $.453 per share
income dividends. Over the same period, the total investment return on the
Fund's Common Stock was +2.08%, based on a change in per share net asset
value from $15.21 to $15.04, and assuming reinvestment of all
distributions.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
The Fund's total return, based on net asset value, trailed the +2.96%
average return of the Lipper Michigan Municipal Debt Funds category for the
six-month period. (Funds in this Lipper category limit their investment to
securities exempt from taxation in Michigan or a city in Michigan.) This
Lipper category includes a number of funds that can purchase lower-rated,
uninsured bonds, which were among the market's best-performing securities
during the past six months. Given the Fund's more conservative investment
parameters, and overall higher credit quality, we were underweight in these
lower-rated issues, which contributed to relative underperformance during
the period. The Fund's defensive positioning during the first part of the
period also detracted somewhat from performance. As long-term interest
rates continued to decline during this time, the portfolio's relatively
conservative level of interest rate exposure detracted from results.
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 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 returns based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
During the past six months, Michigan municipalities issued $6.3 billion in
long-term tax-exempt securities, an increase of 47% compared to the same
six months a year earlier. Despite this increase in supply, overall
activity in the portfolio was limited by the fact that current market
yields are well below those provided by most of the Fund's holdings. The
sale of our existing, higher-yielding bonds would result in a decline in
the Fund's income stream - and, potentially, the eventual reduction of its
dividend. Also, most recent issuance in the state has been heavily weighted
in the 10-year - 20-year maturity range, in keeping with the national
supply pattern. We continued to avoid new purchases in this range because
of the unattractively low yield levels.
Over the course of the period, we increasingly positioned the portfolio to
be less defensive. A combination of factors - including the Fed's continued
program of short-term interest rate increases, moderating economic growth
expectations and declines in leading economic indicators - led us to
believe that the potential for significant interest rate increases later in
2005 and into 2006 was less than previously anticipated. Accordingly, we
sought to take advantage of periods of price volatility by adding to our
position in bonds with greater sensitivity to changes in interest rates. To
generate funds for these purchases, we sold prerefunded bonds with two-year
- five-year maturity dates, enabling us to lock in the significant market
appreciation these bonds have enjoyed while also moving closer to our
desired neutral portfolio positioning.
For the six-month period ended April 30, 2005, the Fund's Auction Market
Preferred Stock (AMPS) had average yields of 1.64% for Series A and 1.62%
for Series B. At this point in the Fed's monetary tightening cycle,
interest rate increases are having a material impact on the Fund's
borrowing costs. The Fed raised the short-term interest rate target 100
basis points during the six-month period. Still, the tax-exempt yield curve
remained relatively steep and continued to generate an income benefit to
the holders of Common Stock from the leveraging of Preferred Stock.
However, should the spread between short-term and long-term interest rates
narrow, the benefits of leveraging will decline and, as a result, reduce
the yield on the Fund's Common Stock. At the end of the period, the Fund's
leverage amount, due to AMPS, was 32.94% of total net 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 Fund's position at the close of the period?
We ended the period in transition toward a more neutral market stance. We
are monitoring economic and market conditions and would need to see
additional evidence of slowing economic activity or financial stress - such
as the recent credit-rating downgrades of General Motors Corp. and Ford
Motor Co. - before enacting a more aggressive market strategy. In the
meantime, we intend to maintain the portfolio's fully invested stance in
order to enhance investment income and allow the Fund to continue to
generate an above-average dividend yield.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
A Discussion With Your Funds' Portfolio Managers (concluded)
MuniYield New York Insured Fund, Inc.
Describe conditions in the State of New York.
The State of New York maintains credit ratings of A1, AA and AA- from
Moody's, Standard and Poor's (S&P) and Fitch, respectively. Moody's assigns
a positive outlook to the state's rating, reflecting an upgrade in
November, while Fitch and S&P carry stable outlooks. The state economy
continues to improve and revenue collections are increasing.
Recently, for the first time in more than 20 years, New York lawmakers
approved a budget on time. The fiscal year 2006 budget calls for $105
billion in spending and forecasts a 5% increase in tax receipts. Aided by
this revenue growth, the adopted budget includes the governor's original
proposals for closing an estimated $4 billion deficit. However, this does
not factor in a lawsuit recently won by the Campaign for Fiscal Equity that
could add up to $2 billion in annual state education spending. Crafting
balanced budgets beyond fiscal year 2006 will present a challenge given
political resistance to additional tax hikes and cuts in popular programs,
as well as pressure from local governments for pension and Medicaid relief,
and new education spending.
The economy produced good job growth in 2004, with total non-farm labor
increasing .5% from the prior year. This was the first annual gain since
2000. New York ranks fifth-highest among all states in per capita income.
Modest income growth during 2005 would boost personal income tax receipts,
roughly 38% of general fund receipts.
How did the Fund perform during the period?
For the six-month period ended April 30, 2005, the Common Stock of
MuniYield New York Insured Fund, Inc. had net annualized yields of 5.74%
and 6.40%, based on a period-end per share net asset value of $14.76 and a
per share market price of $13.23, respectively, and $.420 per share income
dividends. Over the same period, the total investment return on the Fund's
Common Stock was +2.91%, based on a change in per share net asset value
from $14.81 to $14.76, and assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, was five basis points
short of the +2.96% average return of the Lipper New York Insured Municipal
Debt Funds category for the six-month period. (Funds in this Lipper
category invest primarily in securities exempt from taxation in New York
and insured as to timely payment.) We continued to manage the Fund with a
focus on yield, and were successfully able to maintain the Fund's monthly
dividend distribution (whereas the majority of our competitors were forced
to cut their dividends). While enhancing income for shareholders, primarily
by retaining bonds booked in the portfolio at yields higher than those
available in the current market, we have seen some erosion in the Fund's
average duration. During the past six months, in a market characterized by
a flattening yield curve, this shortening of duration was a detriment to
total return. This is because shorter-maturity investments significantly
underperformed the longer end of the municipal market. As part of our
ongoing strategy, we continue to look for opportunities to add longer-dated
bonds with attractive yields to the portfolio.
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 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 may vary significantly from
total investment returns based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
We continued to focus on generating attractive tax-exempt income for our
shareholders, essentially remaining fully invested throughout the period.
The Fund is permitted to invest up to 20% of net assets in uninsured bonds
and, working with the Municipal Research Group, we identified unenhanced
securities within our credit parameters that offer yields above those
available from AAA-rated insured paper. We believe purchases of these
securities should further enhance the Fund's strong income distribution.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Throughout the period, we had been looking to capitalize on the curve
flattening trend by moving into longer-dated securities as opportunities
presented themselves. Although issuance of New York bonds has been fairly
active, most of the new issues coming to market have been in the short to
intermediate maturity range. This, coupled with the market's low absolute
yields, somewhat limited our ability to affect this trade as much as we
would have liked. Doing so would have required us to give up bonds that,
although shorter in duration, were booked at higher yields. Thus, to
counteract the natural shortening of the portfolio's average duration, we
reduced our hedge positions to achieve a slightly defensive posture. Going
forward, we expect to look for more active trading opportunities, which
will allow us to move the portfolio to a more market-neutral stance.
The average yields for the Fund's Auction Market Preferred Stock (AMPS) for
the six months ended April 30, 2005, were: 1.79% for Series A, 1.51% for
Series B, 1.56% for Series C, 1.48% for Series D and 1.87% for Series E. At
this point in the Fed's monetary tightening cycle, interest rate increases
are having a material impact on the Fund's borrowing costs. The Fed raised
the short-term interest rate target 100 basis points during the six-month
period. Still, the tax-exempt yield curve remained relatively steep and
continued to generate an income benefit to the holders of Common Stock from
the leveraging of Preferred Stock. However, should the spread between short-
term and long-term interest rates narrow, the benefits of leveraging will
decline and, as a result, reduce the yield on the Fund's Common Stock. At
the end of the period, the Fund's leverage amount, due to AMPS, was 30.79%
of total net 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 Fund's position at the close of the period?
After eight consecutive interest rate hikes, we believe the Fed is closer
to the end than the beginning of its monetary tightening program. Thus, it
would seem that the risk of significantly higher interest rates is somewhat
diminished. However, we do expect a considerable amount of volatility in
the financial markets in the near term given inflation concerns and
increasingly mixed economic releases. We expect that this could provide an
opportunity to approach a more neutral market stance.
We continue to maintain a fully invested portfolio, targeting bonds with
25-year - 30-year maturities. We are looking for opportunities to diversify
the portfolio, and recently accomplished that by adding bonds insured by
two relatively new names in the municipal market - XL Capital Assurance
(XLCA) and CIFG. Both are AAA-rated insurers and their bonds have
outperformed the broader market as their yield spreads narrowed compared to
more established insurers. We will continue to search for similar
opportunities to add yield and further diversify the portfolio.
Michael A. Kalinoski, CFA
Vice President and Portfolio Manager
MuniYield Arizona Fund, Inc.
Walter C. O'Connor, CFA
Vice President and Portfolio Manager
MuniYield California Fund, Inc.
MuniYield California Insured Fund, Inc.
Robert D. Sneeden
Vice President and Portfolio Manager
MuniYield Florida Fund
Fred K. Stuebe
Vice President and Portfolio Manager
MuniYield Michigan Insured Fund II, Inc.
Timothy T. Browse, CFA
Vice President and Portfolio Manager
MuniYield New York Insured Fund, Inc.
May 26, 2005
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Portfolio Information
Quality Profiles as of April 30, 2005
Percent of
MuniYield Arizona Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 48.5%
AA/Aa 6.4
A/A 20.6
BBB/Baa 18.2
BB/Ba 1.0
NR (Not Rated) 5.1
Other* 0.2
Percent of
MuniYield California Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 70.8%
AA/Aa 12.5
A/A 13.0
BBB/Baa 3.5
Other* 0.2
Percent of
MuniYield California Insured Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 93.9%
AA/Aa 2.2
A/A 3.7
Other* 0.2
Percent of
MuniYield Florida Fund Total
By S&P/Moody's Rating Investments
AAA/Aaa 75.5%
AA/Aa 1.5
A/A 10.6
BBB/Baa 9.2
BB/Ba 2.7
Other* 0.5
Percent of
MuniYield Michigan Insured Fund II, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 87.6%
AA/Aa 4.0
A/A 5.0
BBB/Baa 3.0
Other* 0.4
Percent of
MuniYield New York Insured Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 87.9%
AA/Aa 1.3
A/A 10.4
BBB/Baa 0.1
Other* 0.3
*Includes portfolio holdings in variable rate demand notes.
Swap Agreements
The Funds may 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. Swap agreements involve
the risk that the party with whom each Fund has entered into a swap will
default on its obligation to pay the Fund and the risk that the Fund will
not be able to meet its obligations to pay the other party to the
agreement.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments MuniYield Arizona Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Arizona--120.1%
$ 1,650 Arizona Educational Loan Marketing Corporation, Educational Loan Revenue Refunding
Bonds, AMT, Junior Sub-Series, 6.30% due 12/01/2008 $ 1,666
Arizona Health Facilities Authority, Hospital System Revenue Bonds (John C. Lincoln
Health Network):
500 6.875% due 12/01/2020 560
1,125 7% due 12/01/2025 1,258
1,785 Arizona Health Facilities Authority Revenue Bonds (Catholic Healthcare West), Series A,
6.625% due 7/01/2020 1,991
3,000 Arizona School Facilities Board, State School Improvement Revenue Bonds, 5.50% due
7/01/2017 3,339
Arizona State University Revenue Bonds (e):
1,500 5.75% due 7/01/2012 (n) 1,725
4,335 DRIVERS, Series 270, 7.69% due 7/01/2021 (k) 5,497
Arizona Student Loan Acquisition Authority, Student Loan Revenue Refunding Bonds, AMT:
3,285 Junior Subordinated Series B-1, 6.15% due 5/01/2029 3,543
1,000 Senior-Series A-1, 5.90% due 5/01/2024 1,072
Arizona Tourism and Sports Authority, Tax Revenue Bonds:
1,000 (Baseball Training Facilities Project), 5% due 7/01/2016 1,039
2,000 (Multi-Purpose Stadium Facility), Series A, 5.375% due 7/01/2023 (b) 2,213
500 Glendale, Arizona, Development Authority, Educational Facilities Revenue Refunding
Bonds (American Graduate School International), 5.875% due 7/01/2015 (c) 520
2,405 Maricopa County, Arizona, Hospital Revenue Refunding Bonds (Sun Health Corporation),
6.125% due 4/01/2018 2,524
1,000 Maricopa County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project 1),
Series A, 6.625% due 7/01/2020 996
2,400 Maricopa County, Arizona, IDA, Hospital Facility Revenue Refunding Bonds (Samaritan
Health Services), Series A, 7% due 12/01/2016 (b)(d) 2,995
Maricopa County, Arizona, IDA, M/F Housing Revenue Bonds:
1,000 (Metro Gardens--Mesa Ridge Apartments Project), Series 1999A, 5.15% due 7/01/2029 (b) 1,003
2,395 (Place Five and Greenery Apartments), Series A, 6.625% due 1/01/2027 (d) 2,622
200 Maricopa County, Arizona, IDA, M/F Housing Revenue Refunding Bonds (San Martin Apartments
Project), VRDN, AMT, Series A-1, 3.02% due 6/15/2035 (g)(l) 200
15 Maricopa County, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series 1B, 6.25% due
9/01/2032 (f)(i) 15
Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding, Series A:
1,000 (El Paso Electric Company Project), 6.25% due 5/01/2037 1,008
1,485 (Public Service Company of New Mexico Project), 6.30% due 12/01/2026 1,585
2,250 Maricopa County, Arizona, Public Finance Corporation, Lease Revenue Bonds, RIB,
Series 511X, 7.74% due 7/01/2014 (a)(k) 2,756
1,825 Maricopa County, Arizona, Scottsdale Unified School District Number 48, GO, 6.60% due
7/01/2012 2,196
500 Maricopa County, Arizona, Tempe Elementary Unified School District Number 3, GO,
Refunding, 7.50% due 7/01/2010 (e) 601
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedules 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
DATES Daily Adjustable Tax-Exempt Securities
DRIVERS Derivative Inverse Tax-Exempt Receipts
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
RITR Residual Interest Trust Receipts
S/F Single-Family
VRDN Variable Rate Demand Notes
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield Arizona Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Arizona (concluded)
$ 1,000 Maricopa County, Arizona, Unified School District Number 090, School Improvement,
GO (Saddle Mountain), Series A, 5% due 7/01/2014 $ 1,050
Mesa, Arizona, IDA, Revenue Bonds (Discovery Health Systems), Series A (b):
1,000 5.875% due 1/01/2014 1,116
1,500 5.625% due 1/01/2015 1,652
1,000 Navajo County, Arizona, IDA, IDR (Stone Container Corporation Project), AMT, 7.40%
due 4/01/2026 1,035
4,500 Northern Arizona University System Revenue Bonds, 5.50% due 6/01/2034 (e) 4,970
2,500 Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Refunding Bonds,
Junior Lien, 5.50% due 7/01/2020 (e) 2,755
1,750 Phoenix, Arizona, GO, Refunding, DRIVERS, Series 173, 11.683% due 7/01/2008 (k) 2,228
15 Phoenix, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series 1A, 6.25% due 9/01/2032 (f)(i) 15
Pima County, Arizona, IDA, Education Revenue Bonds (Arizona Charter Schools Project),
Series C:
750 6.70% due 7/01/2021 790
1,000 6.75% due 7/01/2031 1,043
1,000 Pima County, Arizona, IDA, Education Revenue Refunding Bonds (Arizona Charter Schools
Project II), Series A, 6.75% due 7/01/2021 1,057
1,000 Pima County, Arizona, IDA, Revenue Refunding Bonds (Health Partners), Series A, 5.625%
due 4/01/2014 (b) 1,063
530 Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, AMT, Series A-1, 6.20%
due 11/01/2030 (f)(g)(i) 568
3,050 Pima County, Arizona, Unified School District Number 1, Tucson, GO, Refunding, 7.50%
due 7/01/2009 (e) 3,568
Pinal County, Arizona, COP:
1,250 5% due 12/01/2026 1,285
1,250 5% due 12/01/2029 1,274
2,250 Scottsdale, Arizona, IDA, Hospital Revenue Bonds (Scottsdale Healthcare), 5.80% due
12/01/2031 2,413
1,500 South Campus Group LLC, Arizona Student Housing Revenue Bonds (Arizona State University
South Campus Project), Series 2003, 5.625% due 9/01/2035 (b) 1,660
625 Tucson and Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds (Mortgage-Backed
Securities Program), AMT, Series A-1, 6% due 7/01/2021 (f)(g)(i) 629
1,500 Tucson, Arizona, IDA, Senior Living Facilities Revenue Bonds (Christian Care Tucson Inc.
Project), Series A, 6.125% due 7/01/2024 (j) 1,672
1,105 University of Arizona, COP, Refunding, Series A, 5.125% due 6/01/2029 (a) 1,171
Vistancia Community Facilities District, Arizona, GO:
1,275 6.75% due 7/15/2022 1,378
750 5.75% due 7/15/2024 761
2,000 Yavapai County, Arizona, IDA, Hospital Facility Revenue Bonds (Yavapai Regional Medical
Center), Series A, 6% due 8/01/2033 2,116
Puerto Rico--22.3%
500 Puerto Rico Commonwealth, GO, Refunding, RITR, Class R, Series 3, 8.213% due
7/01/2016 (b)(k) 616
Puerto Rico Commonwealth, Highway and Transportation Authority, Transportation Revenue
Refunding Bonds:
1,000 Series D, 5.75% due 7/01/2041 1,117
1,000 Series J, 5.50% due 7/01/2023 1,100
2,000 Puerto Rico Commonwealth, Public Improvement, GO, Series A, 5.125% due 7/01/2031 2,078
Puerto Rico Electric Power Authority, Power Revenue Bonds:
1,000 Series II, 5.25% due 7/01/2031 1,063
1,500 Series NN, 5.125% due 7/01/2029 1,576
1,000 Series RR, 5% due 7/01/2030 (m) 1,061
695 Trust Receipts, Class R, Series 16 HH, 8.193% due 7/01/2013 (h)(k) 872
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (concluded) MuniYield Arizona Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Puerto Rico (concluded)
$ 2,000 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control
Facilities Revenue Bonds (Cogeneration Facility--AES Puerto Rico Project), AMT,
6.625% due 6/01/2026 $ 2,170
2,000 Puerto Rico Public Buildings Authority, Government Facilities, Revenue Refunding Bonds,
Series I, 5.25% due 7/01/2033 2,125
1,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds,
Series E, 5.50% due 8/01/2029 1,071
Total Investments (Cost--$88,824*)--142.4% 95,042
Other Assets Less Liabilities--3.0% 2,001
Preferred Stock, at Redemption Value--(45.4%) (30,308)
---------
Net Assets Applicable to Common Stock--100.0% $ 66,735
=========
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2005, as computed for federal income tax purposes,
were as follows:
(in Thousands)
Aggregate cost $ 88,832
==============
Gross unrealized appreciation $ 6,242
Gross unrealized depreciation (32)
--------------
Net unrealized appreciation $ 6,210
==============
(a) AMBAC Insured.
(b) MBIA Insured.
(c) Connie Lee Insured.
(d) Escrowed to maturity.
(e) FGIC Insured.
(f) FHLMC Collateralized.
(g) FNMA Collateralized.
(h) FSA Insured.
(i) GNMA Collateralized.
(j) Radian Insured.
(k) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(l) Security may have a maturity of more than one year at time of
issuance, but has variable rate and demand features which qualify it
as a short-term security. The rate disclosed is that currently in effect.
The rate changes periodically based upon prevailing market rates.
(m) XL Capital Insured.
(n) Prerefunded.
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) were as follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
CMA Arizona Municipal
Money Fund (914) $2
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments MuniYield California Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
California--137.1%
$ 1,730 ABAG Finance Authority for Nonprofit Corporations, California, Revenue Refunding Bonds
(Redwood Senior Homes and Services), 6% due 11/15/2022 $ 1,856
3,975 Antioch Area Public Facilities Financing Agency, California, Special Tax (Community
Facilities District Number 1989-1), 5.70% due 8/01/2022 (a) 4,372
2,820 Arcata, California, Joint Powers Financing Authority, Tax Allocation Revenue Refunding
Bonds (Community Development Project Loan), Series A, 6% due 8/01/2023 (a) 2,866
2,500 Bakersfield, California, COP, Refunding (Convention Center Expansion Project), 5.80%
due 4/01/2017 (h) 2,658
California HFA, Home Mortgage Revenue Bonds:
405 Series D, 5.85% due 8/01/2017 426
900 VRDN, AMT, Series N, 3% due 8/01/2021 (f)(j) 900
5,000 California Health Facilities Financing Authority Revenue Bonds (Kaiser Permanente), RIB,
Series 26, 7.69% due 6/01/2022 (f)(k) 5,720
1,490 California Health Facilities Financing Authority, Revenue Refunding Bonds (Pomona Valley
Hospital Medical Center), Series A, 5.625% due 7/01/2019 (h) 1,597
4,990 California Infrastructure and Economic Development Bank Revenue Bonds (J. David Gladstone
Institute Project), 5.50% due 10/01/2022 5,338
3,000 California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds
(Waste Management Inc. Project), AMT, Series A-2, 5.40% due 4/01/2025 3,108
California Rural Home Mortgage Finance Authority, S/F Mortgage Revenue Bonds
(Mortgage-Backed Securities Program), AMT (g):
75 Series A-1, 6.90% due 12/01/2024 (d) 78
135 Series B, 6.15% due 6/01/2020 (e) 135
California State Department of Veteran Affairs, Home Purpose Revenue Refunding Bonds,
Series C:
5,970 5.875% due 12/01/2015 6,042
9,315 6.05% due 12/01/2020 9,429
2,500 6.15% due 12/01/2027 2,531
4,500 California State Department of Water Resources, Power Supply Revenue Bonds, Series A,
5.75% due 5/01/2017 5,046
6,000 California State Department of Water Resources Revenue Bonds (Central Valley Project),
5.25% due 7/01/2022 6,001
California State, GO, Refunding:
8,000 5.75% due 5/01/2030 8,868
13,500 5% due 3/01/2034 (a) 14,135
2,785 (Veterans), AMT, Series BJ, 5.70% due 12/01/2032 2,873
California State Public Works Board, Lease Revenue Bonds:
2,000 (California State University), Series C, 5.40% due 10/01/2022 (h) 2,134
5,000 (Department of Corrections), Series C, 5.50% due 6/01/2023 5,468
6,645 (Department of Health Services), Series A, 5.75% due 11/01/2017 (h) 7,369
17,000 (Various Community College Projects), Series A, 5.625% due 3/01/2016 (a) 17,731
California State University and Colleges, Housing System Revenue Refunding Bonds (c):
3,000 5.75% due 11/01/2015 3,105
3,500 5.80% due 11/01/2017 (l) 3,622
3,900 5.90% due 11/01/2021 4,039
California State, Various Purpose, GO:
4,730 5.50% due 4/01/2030 5,165
6,850 5.50% due 11/01/2033 7,436
5,250 California Statewide Communities Development Authority, COP (John Muir/Mount Diablo
Health System), 5.125% due 8/15/2022 (h) 5,561
California Statewide Communities Development Authority, Health Facility Revenue Bonds
(Memorial Health Services), Series A:
3,270 6% due 10/01/2023 3,713
3,000 5.50% due 10/01/2033 3,133
2,380 California Statewide Communities Development Authority, Water Revenue Bonds (Pooled
Financing Program), Series C, 5.25% due 10/01/2028 (f) 2,547
2,000 Chino Basin, California, Regional Financing Authority Revenue Bonds (Inland Empire
Utility Agency Sewer Project), 5.75% due 11/01/2009 (h)(i) 2,225
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield California Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
$ 6,270 Coast Community College District, California, Capital Appreciation, GO, Refunding,
5.02%** due 8/01/2021 (h) $ 2,921
2,705 Contra Costa County, California, Public Financing, Lease Revenue Refunding Bonds
(Various Capital Facilities), Series A, 5.30% due 8/01/2020 (h) 2,879
4,505 Covina-Valley, California, Unified School District, Capital Appreciation, GO (Election
of 2001), Series B, 4.90%** due 6/01/2028 (c) 1,415
3,750 Cucamonga, California, County Water District, COP, 5.125% due 9/01/2035 (c) 3,921
2,500 Davis, California, Joint Unified School District, Community Facilities District, Special
Tax Refunding Bonds, Number 1, 5.50% due 8/15/2021 (h) 2,606
4,650 Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue
Bonds, Series A-4, 7.80% due 6/01/2042 5,367
5,025 Indio, California, Water Authority, Water Enterprise Revenue Bonds, 5.125% due 4/01/2030 (a) 5,388
Industry, California, Urban Development Agency, Tax Allocation Refunding Bonds (h):
14,915 (Civic Recreation Industrial), Series 1, 5.50% due 5/01/2021 15,803
5,000 (Civic-Recreational--Industrial Redevelopment Project No. 1), 5.50% due 5/01/2020 5,292
5,435 La Mesa-Spring Valley, California, School District, Capital Appreciation, GO, Refunding
(Election of 2002), Series B, 5.225%** due 8/01/2028 (c) 1,708
2,000 Los Angeles, California, COP (Sonnenblick Del Rio West Los Angeles), 6.20% due
11/01/2031 (a) 2,273
10,000 Los Angeles, California, Community College District, GO, Series A, 5.50% due
8/01/2011 (h)(i) 11,306
Los Angeles, California, Harbor Department Revenue Bonds, AMT:
4,000 RITR, Series RI-7, 9.015% due 11/01/2026 (h)(k) 4,441
2,000 Series B, 6% due 8/01/2015 2,090
6,000 Series B, 5.375% due 11/01/2023 6,210
7,000 Los Angeles, California, Wastewater System Revenue Bonds, Series A, 5% due 6/01/2023 (c) 7,393
Los Angeles, California, Wastewater System, Revenue Refunding Bonds, Series A:
1,000 5% due 6/01/2028 (c) 1,044
4,500 Subordinate, 5% due 6/01/2027 (h) 4,726
4,000 Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax
Revenue Bonds (Proposition C), Second Tier, Senior-Series A, 5.50% due 7/01/2005 (a)(i) 4,100
5,000 Los Angeles County, California, Public Works Financing Authority, Lease Revenue Bonds
(Multiple Capital Facilities Project VI), Series A, 5.625% due 5/01/2010 (a)(i) 5,617
8,705 Modesto, California, Wastewater Treatment Facilities Revenue Bonds, 5.625% due
11/01/2007 (h)(i) 9,386
8,595 Napa Valley, California, Community College District, Capital Appreciation, GO (Election
of 2002), Series B, 5.16%** due 8/01/2024 (h) 3,385
1,750 North City-West, California, School Facilities Financing Authority, Special Tax Refunding
Bonds, Series B, 5.75% due 9/01/2015 (f) 1,852
Oakland, California, Alameda County Unified School District, GO, Series F (h):
3,290 5.50% due 8/01/2017 3,624
3,770 5.50% due 8/01/2018 4,149
Oakland, California, Joint Powers Financing Authority, Lease Revenue Bonds (Oakland
Administration Buildings) (a)(i):
11,395 5.75% due 8/01/2006 12,040
2,000 5.90% due 8/01/2006 2,117
2,500 Oakland, California, Subordinated Tax Allocation Bonds (Central District Redevelopment
Project), 5% due 9/01/2022 (a) 2,684
5,250 Orange County, California, Sanitation District, COP, 5% due 2/01/2033 (c) 5,436
3,000 Oxnard, California, Financing Authority, Wastewater Revenue Bonds (Redwood Trunk Sewer
and Headworks Projects), Series A, 5.25% due 6/01/2034 (c) 3,226
1,000 Palm Springs, California, Financing Authority, Lease Revenue Refunding Bonds (Convention
Center Project), Series A, 5.50% due 11/01/2035 (h) 1,114
1,750 Pleasant Valley, California, School District, Ventura County, GO, Series C, 5.75%
due 8/01/2025 (b)(h) 1,902
2,255 Pomona, California, Public Financing Authority, Revenue Refunding Bonds (Merged
Redevelopment Project), Series A1, 5.75% due 2/01/2034 2,342
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield California Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
$ 10,600 Port of Oakland, California, Port Revenue Refunding Bonds, Series I, 5.40% due
11/01/2017 (h) $ 11,422
5,808 Port of Oakland, California, RIB, Refunding, AMT, Series 717X, 7.47% due 11/01/2027 (c)(k) 6,501
4,315 Rancho Cucamonga, California, Redevelopment Agency, Tax Allocation Refunding Bonds
(Rancho Redevelopment Project), 5.25% due 9/01/2020 (f) 4,623
2,345 Richmond, California, Redevelopment Agency, Tax Allocation, Refunding Bonds (Harbour
Redevelopment Project), Series A, 5.50% due 7/01/2018 (h) 2,553
5,000 Sacramento, California, Municipal Utility District, Electric Revenue Refunding Bonds,
Series L, 5.125% due 7/01/2022 (h) 5,295
Sacramento County, California, Sanitation District, Financing Authority, Revenue
Refunding Bonds:
4,500 RIB, Series 366, 8.462% due 12/01/2027 (k) 4,751
5,695 Series A, 5.60% due 12/01/2017 5,842
6,190 Series A, 5.75% due 12/01/2018 6,356
3,750 Trust Receipts, Class R, Series A, 8.664% due 12/01/2019 (k) 3,964
10,100 San Bernardino, California, City Unified School District, GO, Refunding, Series A,
5.875% due 8/01/2009 (c)(i) 11,392
3,000 San Bernardino, California, Joint Powers Financing Authority, Lease Revenue Bonds
(Department of Transportation Lease), Series A, 5.50% due 12/01/2020 (h) 3,104
5,000 San Bernardino, California, Joint Powers Financing Authority, Tax Allocation Revenue
Refunding Bonds, Series A, 5.75% due 10/01/2015 (f) 5,161
3,600 San Diego, California, Unified School District, GO (Election of 1998), Series F, 5% due
7/01/2029 (f) 3,798
1,720 San Francisco, California, City and County Educational Facilities, GO (Community College),
Series A, 5.75% due 6/15/2019 1,887
1,310 San Francisco, California, City and County Zoo Facilities, GO, Series B, 5.75% due 6/15/2019 1,437
4,615 San Jose, California, Airport Revenue Bonds, Series D, 5% due 3/01/2028 (h) 4,829
5,000 San Juan, California, Unified School District, GO (Election of 2002), 5% due 8/01/2028 (h) 5,248
5,040 San Ysidro, California, School District, Capital Appreciation, GO (Election of 1997),
Series D, 5.249%** due 8/01/2027 (c) 1,654
2,020 Santa Clara, California, Unified School District, GO, 5.50% due 7/01/2021 (c) 2,218
3,500 Santa Clara County, California, Housing Authority, M/F Housing Revenue Bonds (John Burns
Gardens Apartments Project), AMT, Series A, 6% due 8/01/2041 3,588
4,000 Santa Monica, California, Redevelopment Agency, Tax Allocation Bonds (Earthquake Recovery
Redevelopment Project), 6% due 7/01/2029 (a) 4,418
2,000 Sequoia, California, Unified High School District, GO, 5.70% due 7/01/2005 (f)(i) 2,051
2,265 South Bayside, California, Waste Management Authority, Waste System Revenue Bonds, 5.75%
due 3/01/2020 (a) 2,498
55 Southern California Home Finance Authority, S/F Mortgage Revenue Bonds (Mortgage-Backed
Securities Program), AMT, Series A, 6.75% due 9/01/2022 (e)(g) 55
3,235 Taft, California, Public Financing Authority, Lease Revenue Bonds (Community Correctional
Facility), Series A, 6.05% due 1/01/2017 (h) 3,429
1,310 Torrance, California, Hospital Revenue Refunding Bonds (Torrance Memorial Medical Center),
Series A, 6% due 6/01/2022 1,458
5,705 Union Elementary School District, California, Capital Appreciation, GO, Refunding,
Series C, 4.88%** due 9/01/2028 (c) 1,789
3,000 University of California, General Revenue Refunding Bonds, Series A, 5% due 5/15/2036 (a) 3,130
1,000 Ventura, California, Unified School District, GO (Election of 1997), Series H, 5.125%
due 8/01/2034 (f) 1,062
3,990 Vernon, California, Electric System Revenue Bonds (Malburg Generating Station Project),
5.50% due 4/01/2008 (i) 4,288
5,000 Vista, California, Joint Powers Financing Authority, Lease Revenue Refunding Bonds,
5.625% due 5/01/2016 (h) 5,359
5,055 West Contra Costa, California, Unified School District, Capital Appreciation, GO
(Election of 2002), Series C, 4.849%** due 8/01/2027 (c) 1,677
5,605 Whittier, California, Union High School District, GO (Election of 1999), Series D, 5%
due 8/01/2033 (f) 5,867
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (concluded) MuniYield California Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Puerto Rico--3.6%
$ 2,140 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue Bonds,
Series Y, 5.50% due 7/01/2006 (h)(i) $ 2,240
Puerto Rico Electric Power Authority, Power Revenue Bonds:
6,500 Series NN, 5.125% due 7/01/2029 6,829
2,600 Series X, 5.50% due 7/01/2005 (h)(i) 2,613
U.S. Virgin Islands--1.1%
3,000 Virgin Islands Government Refinery Facilities Revenue Refunding Bonds (Hovensa Coker
Project), AMT, 6.50% due 7/01/2021 3,402
Total Investments (Cost--$429,949*)--141.8% 454,772
Other Assets Less Liabilities--1.9% 5,951
Preferred Stock, at Redemption Value--(43.7%) (140,000)
---------
Net Assets Applicable to Common Stock--100.0% $ 320,723
=========
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2005, as computed for federal income tax purposes,
were as follows:
(in Thousands)
Aggregate cost $ 429,772
==============
Gross unrealized appreciation $ 25,227
Gross unrealized depreciation (227)
--------------
Net unrealized appreciation $ 25,000
==============
** Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase by the Fund.
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) FHLMC Collateralized.
(e) FNMA Collateralized.
(f) FSA Insured.
(g) GNMA Collateralized.
(h) MBIA Insured.
(i) Prerefunded.
(j) Security may have a maturity of more than one year at time of
issuance, but has variable rate and demand features which qualify it
as a short-term security. The rate disclosed is that currently in effect.
This rate changes periodically based upon prevailing market rates.
(k) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(l) All or portion of security held as collateral in connection with
open financial futures contracts.
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) were as follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
CMA California Municipal
Money Fund (859) $9
Financial futures contracts purchased as of April 30, 2005 were
as follows:
(in Thousands)
Number of Expiration Face Unrealized
Contracts Issue Date Value Appreciation
100 10-Year June
U.S. Treasury Note 2005 $11,105 $37
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments MuniYield California Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
California--133.4%
$ 7,000 ABAG Finance Authority for Nonprofit Corporations, California, COP (Children's Hospital
Medical Center), 6% due 12/01/2029 (a) $ 7,799
2,350 Alameda, California, GO, 5% due 8/01/2033 (g) 2,471
3,580 Anaheim, California, Public Financing Authority, Electric System Distribution Facilities
Revenue Bonds, Series A, 5% due 10/01/2031 (e) 3,731
2,400 Anaheim, California, Union High School District, GO (Election of 2002), 5% due 8/01/2027 (g) 2,522
5,630 Antelope Valley, California, Community College District, GO (Election of 2004), Series A,
5% due 8/01/2029 (g) 5,949
1,985 Arcadia, California, Unified School District, GO, Series B, 6.50% due 7/01/2005 (b)(h) 2,038
3,675 Bakersfield, California, COP, Refunding (Convention Center Expansion Project), 5.80%
due 4/01/2017 (g) 3,908
560 Bay Area Government Association, California, Tax Allocation Revenue Refunding Bonds
(California Redevelopment Agency Pool), Series A, 6% due 12/15/2024 (e) 573
3,990 Brentwood, California, Infrastructure Refinancing Authority, Infrastructure Revenue
Refunding Bonds, Series A, 5.20% due 9/02/2029 (e) 4,214
California Community College Financing Authority, Lease Revenue Bonds, Series A (g):
3,215 5.95% due 12/01/2022 3,629
1,100 6% due 12/01/2029 1,238
California Educational Facilities Authority Revenue Bonds, Series A:
28,000 (Pepperdine University), 5.50% due 8/01/2032 (g) 30,057
5,000 (University of San Diego), 5.50% due 10/01/2032 5,320
3,500 California Educational Facilities Authority, Revenue Refunding Bonds (Occidental College),
Series A, 5% due 10/01/2036 (g) 3,689
14,655 California Educational Facilities Authority, Student Loan Revenue Bonds (Caledge Loan
Program), AMT, 5.55% due 4/01/2028 (a) 15,270
California HFA, Home Mortgage Revenue Bonds, VRDN, AMT, Series R (a)(j):
400 3.01% due 8/01/2023 400
800 3.01% due 8/01/2032 800
2,750 California Health Facilities Financing Authority Revenue Bonds (Kaiser Permanente),
Series A, 5.50% due 6/01/2022 (e)(k) 2,948
California Rural Home Mortgage Finance Authority, S/F Mortgage Revenue Bonds (Mortgage-Backed
Securities Program), AMT (f):
875 Series A, 6.35% due 12/01/2029 (c)(d) 877
115 Series A-1, 6.90% due 12/01/2024 (c) 120
500 Series B, 6.25% due 12/01/2031 (d) 501
California State Department of Veteran Affairs, Home Purpose Revenue Refunding Bonds:
12,680 Series A, 5.35% due 12/01/2027 (a) 13,314
7,500 Series C, 6.15% due 12/01/2027 7,593
7,500 California State Department of Water Resources, Power Supply Revenue Bonds, Series A,
5.75% due 5/01/2017 8,410
California State, GO:
860 6.25% due 10/01/2019 (g)(h) 872
5,950 Various Purpose, 5.50% due 11/01/2033 6,459
California State, GO, Refunding:
2,025 5% due 2/01/2024 2,113
9,935 DRIVERS, AMT, Series 239, 8.09% due 12/01/2032 (a)(i) 10,026
3,000 Series BX, 5.50% due 12/01/2031 (e) 3,067
4,530 California State Public Works Board, Lease Revenue Bonds (Department of Corrections--Ten
Administrative Segregation Housing Units), Series A, 5.25% due 3/01/2020 (a) 4,863
16,675 California State Public Works Board, Lease Revenue Refunding Bonds (Department of
Corrections), Series B, 5.625% due 11/01/2016 (g) 17,692
2,375 California State University and Colleges, Housing System Revenue Refunding Bonds, 5.90%
due 11/01/2021 (b) 2,460
1,000 California State University, Sacramento Foundation, Auxiliary Organization Revenue Bonds,
Series A, 5.50% due 10/01/2037 (g) 1,102
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield California Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
$ 4,100 California Statewide Communities Development Authority, COP (Kaiser Permanente),
5.30% due 12/01/2015 (e)(k) $ 4,301
3,685 California Statewide Communities Development Authority, Health Facility Revenue Bonds
(Memorial Health Services), Series A, 6% due 10/01/2023 4,184
8,155 Calleguas-Las Virgenes, California, Public Financing Authority Revenue Bonds (Calleguas
Municipal Water District Project), Series A, 5% due 7/01/2033 (g) 8,516
Capistrano, California, Unified School District, Community Facility District, Special Tax
Refunding Bonds (b):
5,015 5% due 9/01/2020 5,445
6,000 5% due 9/01/2029 6,352
Ceres, California, Redevelopment Agency, Tax Allocation Bonds (Ceres Redevelopment Project
Area Number 1) (g):
4,600 5.75% due 11/01/2030 5,141
4,000 5% due 11/01/2033 4,215
6,000 Chaffey, California, Union High School District, GO, Series C, 5.375% due 5/01/2023 (e) 6,666
5,910 Chula Vista, California, Elementary School District, COP, 5% due 9/01/2029 (g) 6,193
2,540 Coalinga, California, Redevelopment Agency Tax Allocation Bonds, 5.90% due 9/15/2025 (g) 2,864
2,000 Compton, California, Unified School District, GO (Election of 2002), Series B, 5% due
6/01/2029 (g) 2,106
4,135 Contra Costa, California, Water District, Water Revenue Refunding Bonds, Series L, 5%
due 10/01/2032 (e) 4,313
12,180 Contra Costa County, California, COP, Refunding (Merrithew Memorial Hospital Project),
5.375% due 11/01/2017 (g) 13,087
8,500 Corona, California, COP (Clearwater Cogeneration Project), 5% due 9/01/2028 (g) 8,858
2,000 Coronado, California, Community Development Agency, Tax Allocation Bonds (Coronado Community
Development Project), 5.60% due 9/01/2030 (g) 2,204
2,500 El Monte, California, City School District, GO, Refunding, Series A, 6.25% due
5/01/2010 (e)(h) 2,834
El Monte, California, School District, GO, Series B (b):
3,025 5.375% due 5/01/2022 3,361
2,525 5.375% due 5/01/2027 2,764
10,755 Fremont, California, Unified School District, Alameda County, GO, Series A, 5.50% due
8/01/2026 (b) 11,950
4,295 Fresno, California, Joint Powers Financing Authority, Lease Revenue Bonds, Series A,
5.75% due 6/01/2026 (e) 4,766
4,390 Glendale, California, Electric Revenue Bonds, 5% due 2/01/2032 (g) 4,579
2,500 La Quinta, California, Financing Authority, Local Agency Revenue Bonds, Series A, 5.25%
due 9/01/2024 (a) 2,721
3,800 Las Lomitas, California, School District, GO (Election of 2001), 5.50% due 7/01/2022 (e) 4,272
3,050 Little Lake, California, City School District, GO, Refunding, 5.50% due 7/01/2025 (e) 3,429
10,260 Lodi, California, Unified School District, GO (Election of 2002), 5% due 8/01/2029 (e) 10,761
7,385 Long Beach, California, Bond Finance Authority Revenue Bonds (Redevelopment, Housing
and Gas Utility Financings), Series A-1, 5% due 8/01/2035 (a) 7,698
7,575 Long Beach, California, Harbor Revenue Bonds, RIB, AMT, Series 786-X, 7.47% due 5/15/2024 (i) 8,392
10,000 Los Angeles, California, Community Redevelopment Agency, Community Redevelopment Financing
Authority Revenue Bonds (Bunker Hill Project), Series A, 5% due 12/01/2027 (e) 10,513
Los Angeles, California, Department of Airports, Airport Revenue Bonds, AMT (b):
290 (Los Angeles International Airport), Series D, 5.625% due 5/15/2012 293
2,500 (Ontario International Airport), Series A, 6% due 5/15/2017 2,595
Los Angeles, California, Harbor Department Revenue Bonds, AMT (g)(i):
7,365 RIB, Series 349, 9.17% due 11/01/2026 8,176
7,000 Trust Receipts, Class R, Series 7, 9.182% due 11/01/2026 7,771
3,165 Los Angeles, California, Water and Power Revenue Refunding Bonds (Power System),
Series A-A-2, 5.375% due 7/01/2021 (g) 3,430
2,000 Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue
Refunding Bonds, Proposition C, Second Tier Senior-Series A, 5.25% due 7/01/2030 (b) 2,139
2,500 Los Angeles County, California, Public Works Financing Authority, Lease Revenue Refunding
Bonds, Series A, 5% due 12/01/2025 (g) 2,652
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield California Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
California (continued)
Los Gatos, California, Joint Union High School District, GO (Election of 1998),
Series C (e)(h):
$ 1,000 5% due 6/01/2012 $ 1,117
5,830 5.375% due 6/01/2012 6,647
3,000 Los Rios, California, Community College District, GO (Election of 2002), Series B,
5% due 8/01/2027 (g) 3,168
5,370 Metropolitan Water District of Southern California, Waterworks Revenue Bonds,
Series B-1, 5% due 10/01/2033 (b) 5,625
2,175 Mount Pleasant, California, Elementary School District, GO, Series B, 6.35% due
12/01/2009 (e)(h) 2,517
4,245 Nevada County, California, COP, Refunding, 5.25% due 10/01/2019 (g) 4,631
2,000 New Haven, California, Unified School District, GO, Refunding, 5.75% due 8/01/2020 (e) 2,247
2,000 Oakland, California, State Building Authority, Lease Revenue Bonds (Elihu M. Harris State
Office Building), Series A, 5.50% due 4/01/2014 (a) 2,157
1,245 Orange County, California, Airport Revenue Refunding Bonds, AMT, 5.625% due 7/01/2012 (g) 1,327
6,360 Orange County, California, Public Financing Authority, Lease Revenue Refunding Bonds
(Juvenile Justice Center Facility), 5.375% due 6/01/2018 (a) 7,063
16,920 Orange County, California, Recovery COP, Refunding, Series A, 6% due 7/01/2026 (g) 17,812
4,360 Orchard, California, School District, GO, Series A, 6.50% due 8/01/2005 (b)(h) 4,491
10,000 Oxnard, California, Financing Authority, Wastewater Revenue Bonds (Redwood Trunk Sewer and
Headworks Projects), Series A, 5.25% due 6/01/2034 (b) 10,755
9,645 Oxnard, California, Unified High School District, GO, Refunding, Series A, 6.20% due
8/01/2030 (g) 11,378
1,275 Palm Springs, California, Financing Authority, Lease Revenue Refunding Bonds (Convention
Center Project), Series A, 5.50% due 11/01/2035 (g) 1,420
4,640 Palmdale, California, Water District Public Facility Corporation, COP, 5% due 10/01/2029 (b) 4,864
10,000 Port of Oakland, California, RITR, AMT, Class R, Series 5, 8.218% due 11/01/2012 (b)(i) 11,807
7,500 Port of Oakland, California, Revenue Bonds, AMT, Series K, 5.75% due 11/01/2029 (b) 8,093
19,035 Port of Oakland, California, Revenue Refunding Bonds, AMT, Series L, 5.375% due
11/01/2027 (b) 20,172
Rio Hondo, California, Community College District, GO, Series A (g):
3,000 5% due 8/01/2026 3,175
3,500 5.25% due 6/01/2029 3,785
3,000 Riverside, California, COP, 5% due 9/01/2028 (a) 3,133
6,000 Riverside, California, Unified School District, GO (Election of 2001), Series A, 5.25%
due 2/01/2023 (b) 6,529
4,500 Riverside County, California, Asset Leasing Corporation, Leasehold Revenue Refunding Bonds
(Riverside County Hospital Project), Series B, 5.70% due 6/01/2016 (g) 5,115
5,000 Sacramento, California, Municipal Utility District, Electric Revenue Bonds, Series R, 5%
due 8/15/2033 (g) 5,235
2,565 Saddleback Valley, California, Unified School District, GO, 5% due 8/01/2029 (e) 2,703
5,000 San Bernardino, California, City Unified School District, GO, Series A, 5% due
8/01/2028 (e)(f) 5,265
805 San Bernardino County, California, S/F Home Mortgage Revenue Refunding Bonds, AMT,
Series A-1, 6.25% due 12/01/2031 (d) 807
San Diego County, California, COP (Salk Institute for Bio Studies) (g):
3,570 5.75% due 7/01/2022 3,990
5,200 5.75% due 7/01/2031 5,789
7,350 San Diego County, California, Water Authority, Water Revenue Bonds, COP, Series A,
5% due 5/01/2030 (e) 7,746
3,000 San Francisco, California, City and County Airport Commission, International Airport
Revenue Bonds, Second Series, Issue 12-B, 5.625% due 5/01/2021 (b) 3,110
San Francisco, California, City and County Airport Commission, International Airport
Revenue Refunding Bonds, Second Series 28B (g):
3,000 5.25% due 5/01/2023 3,240
6,455 5.25% due 5/01/2024 6,972
San Francisco, California, City and County Airport Commission, International Airport,
Special Facilities Lease Revenue Bonds (SFO Fuel Company LLC), AMT, Series A (e):
1,000 6.10% due 1/01/2020 1,084
985 6.125% due 1/01/2027 1,069
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield California Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
California (concluded)
San Francisco, California, Community College District, GO, Refunding, Series A (b):
$ 1,735 5.375% due 6/15/2019 $ 1,917
1,730 5.375% due 6/15/2020 1,888
1,925 5.375% due 6/15/2021 2,101
4,135 San Jose, California, Airport Revenue Bonds, Series D, 5% due 3/01/2028 (g) 4,327
3,650 San Jose, California, Redevelopment Agency, Tax Allocation Bonds, RIB, AMT, Series 149,
8.37% due 8/01/2027 (g)(i) 4,168
4,250 San Juan, California, Unified School District, GO (Election of 2002), 5% due 8/01/2028 (g) 4,461
1,000 San Mateo, California, Union High School District, GO, Refunding, 5% due 9/01/2023 (e) 1,069
1,700 San Mateo County, California, Community College District, COP, 5% due 10/01/2029 (g) 1,782
2,595 Santa Clara, California, Redevelopment Agency, Tax Allocation Bonds (Bayshore North
Project), Series A, 5.25% due 6/01/2019 (a) 2,806
5,500 Santa Clara, California, Subordinated Electric Revenue Bonds, Series A, 5% due 7/01/2028 (g) 5,770
1,100 Santa Clara Valley, California, Water District, Water Utility System Revenue, Series A,
5.125% due 6/01/2031 (b) 1,158
Santa Rosa, California, High School District, GO:
3,000 5.375% due 8/01/2026 (e) 3,263
2,500 (Election of 2002), 5% due 8/01/2028 (g) 2,624
6,750 Shasta, California, Joint Powers Financing Authority, Lease Revenue Bonds (County
Administration Building Project), Series A, 5% due 4/01/2033 (g) 7,018
5,000 Southern California Public Power Authority, Power Project Revenue Bonds (Magnolia Power
Project), Series A-1, 5% due 7/01/2033 (a) 5,228
6,500 South Gate, California, Utilities Authority, Water and Sewer System Project Revenue Bonds,
5% due 10/01/2032 (b) 6,796
South Tahoe, California, Joint Powers Financing Authority, Revenue Refunding Bonds
(South Tahoe Redevelopment Project Area No. 1), Series A (e):
1,645 5% due 10/01/2029 1,724
5,830 5% due 10/01/2034 6,097
1,055 Stockton, California, Public Financing Revenue Refunding Bonds, Series A, 5.875% due
9/02/2016 (e) 1,072
Sweetwater, California, Union High School District, Public Financing Authority, Special
Tax Revenue Bonds, Series A (e):
3,510 5% due 9/01/2023 3,749
2,565 5% due 9/01/2024 2,731
1,500 Tehachapi, California, COP, Refunding (Installment Sale), 5.75% due 11/01/2016 (e) 1,711
6,000 Tracy, California, Community Development Agency, Tax Allocation Refunding Bonds, Series A,
5% due 3/01/2034 (a) 6,236
3,000 Turlock, California, Public Finance Authority, Sewer Revenue Bonds, Series A, 5% due
9/15/2033 (b) 3,142
University of California, General Revenue Refunding Bonds, Series A (a):
5,000 5% due 5/15/2028 5,243
5,495 5% due 5/15/2036 5,732
University of California Revenue Bonds:
8,720 (Multiple Purpose Projects), Series Q, 5% due 9/01/2024 (e) 9,201
6,110 (Multiple Purpose Projects), Series Q, 5% due 9/01/2033 (e) 6,384
4,790 Series O, 5.125% due 9/01/2031 (b) 5,015
6,130 Vacaville, California, Unified School District, GO (Election of 2001), 5.25% due
8/01/2028 (e) 6,686
3,395 Ventura County, California, Community College District, GO, Refunding, Series A, 5%
due 8/01/2027 (g) 3,568
2,550 Vista, California, Unified School District, GO, Series B, 5% due 8/01/2028 (b) 2,676
2,185 Walnut, California, Public Financing Authority, Tax Allocation Revenue Bonds (Walnut
Improvement Project), 5.375% due 9/01/2021 (a) 2,379
6,690 West Contra Costa, California, Unified School District, GO (Election of 2002), Series B,
5% due 8/01/2032 (e) 6,972
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (concluded) MuniYield California Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Puerto Rico--8.4%
$ 8,410 Puerto Rico Commonwealth, Public Improvement, GO, 5.75% due 7/01/2010 (g)(h) $ 9,407
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series NN, 5.125% due 7/01/2029 1,051
10,000 Puerto Rico Municipal Finance Agency, GO, RIB, Series 225, 8.21% due 8/01/2012 (e)(i) 12,230
20,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds,
Series E, 5.75% due 2/01/2007 (h) 21,018
Total Investments (Cost--$702,003*)--141.8% 742,004
Other Assets Less Liabilities--2.2% 11,406
Preferred Stock, at Redemption Value--(44.0%) (230,021)
---------
Net Assets Applicable to Common Stock--100.0% $ 523,389
=========
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2005, as computed for federal income tax purposes,
were as follows:
(in Thousands)
Aggregate cost $ 701,977
==============
Gross unrealized appreciation $ 40,157
Gross unrealized depreciation (130)
--------------
Net unrealized appreciation $ 40,027
==============
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FHLMC Collateralized.
(d) FNMA Collateralized.
(e) FSA Insured.
(f) GNMA Collateralized.
(g) MBIA Insured.
(h) Prerefunded.
(i) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(j) Security may have a maturity of more than one year at time of
issuance, but has variable rate and demand features which qualify it
as a short-term security. The rate disclosed is that currently in effect.
This rate changes periodically based upon prevailing market rates.
(k) Escrowed to maturity.
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) were as follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
CMA California Municipal
Money Fund (33) $8
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments MuniYield Florida Fund (In Thousands)
Face
Amount Municipal Bonds Value
District of Columbia--0.5%
$ 1,000 Metropolitan Washington Airports Authority, D.C., Airport System Revenue Bonds, AMT,
Series A, 5.25% due 10/01/2032 (c) $ 1,042
Florida--126.2%
2,100 Alachua County, Florida, School Board, COP, 5.25% due 7/01/2029 (a) 2,266
2,000 Beacon Tradeport Community Development District, Florida, Special Assessment Revenue
Refunding Bonds (Commercial Project), Series A, 5.625% due 5/01/2032 (k) 2,175
2,870 Broward County, Florida, Airport System Revenue Bonds, AMT, Series I, 5.75% due
10/01/2018 (a) 3,193
1,000 Broward County, Florida, Educational Facilities Authority Revenue Bonds (Nova Southeastern
University), Series B, 5.625% due 4/01/2034 1,046
Citrus County, Florida, Hospital Board Revenue Refunding Bonds (Citrus Memorial Hospital):
2,460 6.25% due 8/15/2023 2,673
2,850 6.375% due 8/15/2032 3,085
3,160 Collier County, Florida, IDA, IDR, Refunding (Southern States Utilities), AMT, 6.50% due
10/01/2025 3,270
2,040 Duval County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT, 5.40% due
10/01/2021 (d)(i) 2,123
8,830 Escambia County, Florida, Health Facilities Authority, Health Facility Revenue Bonds
(Florida Health Care Facility Loan), 5.95% due 7/01/2020 (a) 8,945
690 Florida Housing Finance Corporation, Homeowner Mortgage Revenue Refunding Bonds, AMT,
Series 4, 6.25% due 7/01/2022 (e) 709
Florida Municipal Loan Council Revenue Bonds (b):
1,580 Series A-1, 5.125% due 7/01/2034 1,669
4,250 Series B, 5.375% due 11/01/2030 4,589
1,220 Florida State Board of Education, Capital Outlay, GO, Series A, 6% due 1/01/2014 1,376
1,000 Florida State Board of Education, Lottery Revenue Bonds, Series A, 6% due 7/01/2014 (c) 1,134
1,000 Florida State Governmental Utility Authority, Utility Revenue Bonds (Lehigh Utility
System), 5.125% due 10/01/2033 (a) 1,056
1,075 Gainesville, Florida, Utilities System Revenue Bonds, Series A, 5.25% due 10/01/2022 1,185
5,900 Highlands County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Adventist
Health System), Series A, 6% due 11/15/2031 6,385
5,000 Hillsborough County, Florida, Court Facilities Revenue Bonds, 5.40% due 5/01/2030 (a) 5,278
Hillsborough County, Florida, IDA, Exempt Facilities Revenue Bonds (National Gypsum), AMT:
2,500 Series A, 7.125% due 4/01/2030 2,809
3,750 Series B, 7.125% due 4/01/2030 4,214
1,000 Hillsborough County, Florida, IDA, Hospital Revenue Bonds (H. Lee Moffitt Cancer Center
Project), Series C, 5.50% due 7/01/2032 1,030
1,500 Hillsborough County, Florida, School Board, COP, 5% due 7/01/2029 (b) 1,572
4,000 Hillsborough County, Florida, School District, Sales Tax Revenue Refunding Bonds, 5.375%
due 10/01/2011 (a)(f) 4,474
8,240 Jacksonville Electric Authority, Florida, Electric System Revenue Bonds, Series 3-A,
5.375% due 10/01/2007 (f)(l) 8,714
14,800 Jacksonville Electric Authority, Florida, Water and Sewer System Revenue Bonds, Series C,
5.25% due 10/01/2037 (b) 15,183
1,000 Jacksonville, Florida, Economic Development Commission, Health Care Facilities Revenue
Bonds (Mayo Clinic--Jacksonville), Series A, 5.50% due 11/15/2036 (b) 1,101
1,140 Jacksonville, Florida, Economic Development Commission, IDR (Metropolitan Parking
Solutions Project), 5.50% due 10/01/2030 (g) 1,190
1,500 Jacksonville, Florida, Excise Taxes Revenue Bonds, Series B, 5.125% due 10/01/2032 (c) 1,576
2,315 Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding and Improvement Bonds,
5.25% due 10/01/2032 (c) 2,480
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield Florida Fund (In Thousands)
Face
Amount Municipal Bonds Value
Florida (continued)
$ 3,500 Lakeland, Florida, Hospital System Revenue Bonds (Lakeland Regional Health System),
Series A, 5.50% due 11/15/2026 (b) $ 3,777
2,075 Lee County, Florida, Capital Revenue Bonds, 5.25% due 10/01/2023 (a) 2,277
80 Lee County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program), AMT,
Series A-1, 7.125% due 3/01/2028 (d)(i) 81
215 Leon County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program), AMT,
Series B, 7.30% due 1/01/2028 (d)(j) 216
345 Manatee County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT, Sub-Series 2, 7.75%
due 5/01/2026 (d)(j) 351
390 Manatee County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Sub-Series 1,
6.25% due 11/01/2028 (d) 395
Martin County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Martin
Memorial Medical Center), Series A:
1,350 5.75% due 11/15/2022 1,434
3,535 5.875% due 11/15/2032 3,725
3,000 Miami Beach, Florida, Water and Sewer Revenue Bonds, 5.75% due 9/01/2025 (a) 3,332
Miami-Dade County, Florida, Aviation Revenue Bonds, AMT:
4,300 (Miami International Airport), Series A, 6% due 10/01/2029 (c) 4,773
1,520 (Miami International Airport), Series A, 5% due 10/01/2030 (c) 1,561
7,500 (Miami International Airport), Series B, 5% due 10/01/2037 (c) 7,800
3,730 Series A, 5% due 10/01/2033 (e) 3,809
1,750 Miami-Dade County, Florida, Educational Facilities Authority Revenue Bonds (University
of Miami), Series A, 5.75% due 4/01/2029 (a) 1,931
Miami-Dade County, Florida, Expressway Authority, Toll System Revenue Bonds (c):
8,000 DRIVERS, Series 160, 6.375% due 7/01/2010 (f)(n) 10,489
3,750 Series B, 5% due 7/01/2033 3,930
585 Miami-Dade County, Florida, HFA, Home Ownership Mortgage Revenue Refunding Bonds, AMT,
Series A-1, 6.30% due 10/01/2020 (d)(i) 611
3,300 Miami-Dade County, Florida, Health Facilities Authority, Hospital Revenue Refunding
Bonds, DRIVERS, Series 208, 7.94% due 8/15/2017 (a)(n) 3,998
3,200 Miami-Dade County, Florida, School Board COP, Series A, 5.50% due 10/01/2009 (e)(f) 3,522
2,800 Miami-Dade County, Florida, Solid Waste System Revenue Bonds, 5.25% due 10/01/2030 (b) 3,039
1,140 Northern Palm Beach County Improvement District, Florida, Water Control and Improvement,
Revenue Refunding Bonds (Unit of Development No. 9B), 5% due 8/01/2029 (b) 1,213
Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds:
1,750 (Adventist Health System), 6.25% due 11/15/2024 1,950
5,140 (Orlando Regional Healthcare), 6% due 12/01/2028 5,596
10,500 Orange County, Florida, School Board, COP, Series A, 5.25% due 8/01/2023 (b) 11,238
8,615 Orange County, Florida, Tourist Development, Tax Revenue Bonds, 5.50% due 10/01/2032 (a) 9,444
Orlando and Orange County, Florida, Expressway Authority Revenue Bonds, Series B (a):
3,000 5% due 7/01/2030 3,141
7,335 5% due 7/01/2035 7,660
1,000 Orlando, Florida, Utilities Commission, Water and Electric Revenue Refunding Bonds,
Series C, 5.25% due 10/01/2023 1,087
1,955 Osceola County, Florida, School Board, COP, Series A, 5.25% due 6/01/2027 (a) 2,099
1,760 Osceola County, Florida, Tourist Development Tax Revenue Bonds, Series A, 5.50% due
10/01/2027 (c) 1,940
3,390 Palm Beach County, Florida, Criminal Justice Facilities Revenue Bonds, 7.20% due
6/01/2015 (c) 4,372
190 Palm Beach County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series A,
6.80% due 10/01/2027 (d)(i) 194
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield Florida Fund (In Thousands)
Face
Amount Municipal Bonds Value
Florida (concluded)
$ 1,260 Palm Beach County, Florida, Public Improvement Revenue Bonds (Convention Center Project),
5.625% due 11/01/2011 (c)(f) $ 1,429
6,000 Palm Beach County, Florida, School Board COP, Series A, 6.25% due 8/01/2010 (c)(f) 6,947
Pinellas County, Florida, HFA, S/F Housing Revenue Refunding Bonds (Multi-County Program),
AMT, Series A-1 (d)(i):
625 6.30% due 9/01/2020 630
960 6.35% due 9/01/2025 968
3,000 Pinellas County, Florida, Health Facilities Authority Revenue Bonds (BayCare Health
System Inc.), 5.75% due 11/15/2029 3,234
600 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding Bonds (Pooled
Hospital Loan Program), DATES, 2.98% due 12/01/2015 (a)(m) 600
4,385 Polk County, Florida, School Board COP, Master Lease, Series A, 5.50% due 1/01/2025 (e) 4,779
1,200 Port Everglades Authority, Florida, Port Revenue Bonds, 7.125% due 11/01/2016 (h) 1,474
1,215 Port St. Lucie, Florida, Utility Revenue Bonds, 5.25% due 9/01/2025 (b) 1,322
Saint Johns County, Florida, Sales Tax Revenue Bonds, GO (a):
1,200 Series A, 5.25% due 10/01/2034 1,294
1,015 Series B, 5.25% due 10/01/2032 1,095
4,250 South Broward, Florida, Hospital District Revenue Bonds, DRIVERS, Series 337, 7.945%
due 5/01/2032 (b)(n) 5,073
South Lake County, Florida, Hospital District Revenue Bonds (South Lake Hospital Inc.):
1,000 5.80% due 10/01/2034 1,042
1,150 6.375% due 10/01/2034 1,221
5,000 Tampa Bay, Florida, Water Utility System Revenue Bonds, 5.75% due 10/01/2011 (c)(f) 5,701
3,235 University of Central Florida (UCF) Athletics Association Inc., COP, Series A, 5.25%
due 10/01/2034 (c) 3,463
Village Center Community Development District, Florida, Recreational Revenue Bonds,
Series A (b):
1,995 5.375% due 11/01/2034 2,184
1,000 5.125% due 11/01/2036 1,063
5,040 Village Center Community Development District, Florida, Utility Revenue Bonds, 5.125%
due 10/01/2028 (b) 5,351
5,000 Volusia County, Florida, School Board, COP (Master Lease Program), 5.50% due 8/01/2024 (e) 5,421
Nevada--1.2%
2,505 Clark County, Nevada, IDR (Southwest Gas Corporation Project), Refunding, AMT, Series B,
5% due 12/01/2033 (c) 2,558
New Jersey--3.5%
New Jersey EDA, Cigarette Tax Revenue Bonds:
3,500 5.50% due 6/15/2024 3,703
1,735 5.75% due 6/15/2029 1,860
505 5.50% due 6/15/2031 527
1,000 Tobacco Settlement Financing Corporation of New Jersey Revenue Bonds, 7% due 6/01/2041 1,081
Tennessee--0.4%
Sevier County, Tennessee, Public Building Authority Revenue Bonds, Local Government Public
Improvement IV, VRDN (m):
300 Series B-6, 3.01% due 6/01/2020 (e) 300
500 Series E-5, 3.01% due 6/01/2020 (a) 500
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (concluded) MuniYield Florida Fund (In Thousands)
Face
Amount Municipal Bonds Value
Puerto Rico--8.3%
$ 8,000 Puerto Rico Commonwealth, Highway and Transportation Authority, Transportation Revenue
Refunding Bonds, Series D, 5.75% due 7/01/2041 $ 8,934
2,000 Puerto Rico Public Buildings Authority, Government Facilities, Revenue Refunding Bonds,
Series I, 5% due 7/01/2036 2,073
Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds,
Series E:
1,715 5.70% due 2/01/2010 (f) 1,910
4,025 5.50% due 8/01/2029 4,313
Total Investments (Cost--$272,130*)--140.1% 290,577
Other Assets Less Liabilities--5.7% 11,813
Preferred Shares, at Redemption Value--(45.8%) (95,000)
---------
Net Assets Applicable to Common Shares--100.0% $ 207,390
=========
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2005, as computed for federal income tax purposes,
were as follows:
(in Thousands)
Aggregate cost $ 272,034
==============
Gross unrealized appreciation $ 19,035
Gross unrealized depreciation (492)
--------------
Net unrealized appreciation $ 18,543
==============
(a) AMBAC Insured.
(b) MBIA Insured.
(c) FGIC Insured.
(d) GNMA Collateralized.
(e) FSA Insured.
(f) Prerefunded.
(g) ACA Insured.
(h) Escrowed to maturity.
(i) FNMA Collateralized.
(j) FHLMC Collateralized.
(k) Radian Insured.
(l) XL Capital Insured.
(m) Security may have a maturity of more than one year at time of
issuance, but has variable rate and demand features which qualify it
as a short-term security. The rate disclosed is that currently in effect.
This rate changes periodically based upon prevailing market rates.
(n) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
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) were as follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
Merrill Lynch Institutional
Tax-Exempt Fund (7,630) $10
Forward interest rate swaps outstanding as of April 30, 2005 were
as follows:
(in Thousands)
Unrealized
Notional Appreciation
Amount (Depreciation)
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate and
pay a fixed rate of 3.567%
Broker, JPMorgan Chase Bank
Expires May 2015 $23,300 $ 30
Receive a variable rate equal to
7-Day Bond Market Association
Municipal Swap Index Rate and
pay a fixed rate of 3.891%
Broker, JPMorgan Chase Bank
Expires July 2015 $11,400 (249)
-------
Total $ (219)
=======
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments MuniYield Michigan Insured Fund II, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Michigan--145.5%
$ 2,400 Adrian, Michigan, City School District, GO, 5% due 5/01/2034 (d) $ 2,513
Anchor Bay, Michigan, School District, GO (School Building and Site) (c)(f):
4,250 Series I, 6% due 5/01/2009 4,717
3,165 Series II, 5.75% due 5/01/2010 3,547
Bullock Creek, Michigan, School District, GO (e):
50 5.50% due 5/01/2010 (f) 56
2,100 5.50% due 5/01/2026 2,264
2,175 Carman-Ainsworth, Michigan, Community School, GO, 5.50% due 5/01/2018 (c) 2,415
1,000 Central Montcalm, Michigan, Public Schools, GO, 5.75% due 5/01/2009 (e)(f) 1,101
3,850 Charlotte, Michigan, Public School District, GO, 5.375% due 5/01/2009 (c)(f) 4,092
2,420 Delta County, Michigan, Economic Development Corporation, Environmental Improvement Revenue
Refunding Bonds (Mead Westvaco--Escanaba), Series A, 6.25% due 4/15/2012 (f) 2,715
Detroit, Michigan, City School District (School Building and Site Improvement), GO,
Series A (c):
1,480 5.375% due 5/01/2024 1,635
2,000 5% due 5/01/2032 2,082
1,000 Detroit, Michigan, Sewer Disposal Revenue Bonds, Senior Lien, VRDN, Series A, 3% due
7/01/2033 (d)(i) 1,000
Detroit, Michigan, Water Supply System Revenue Bonds:
1,000 DRIVERS, Series 200, 8.19% due 7/01/2011 (c)(f)(g) 1,281
4,600 Senior Lien, Series A, 5% due 7/01/2034 (e) 4,791
2,000 Series B, 5.25% due 7/01/2032 (e) 2,133
4,400 Series B, 5% due 7/01/2034 (e) 4,582
2,500 Dickinson County, Michigan, Economic Development Corporation, Environmental Improvement
Revenue Refunding Bonds (International Paper Company Project), Series A, 5.75% due
6/01/2016 2,688
2,170 Dickinson County, Michigan, Healthcare System, Hospital Revenue Refunding Bonds, 5.80%
due 11/01/2024 (h) 2,289
East Grand Rapids, Michigan, Public School District, GO (d)(f):
1,610 5.75% due 5/01/2009 1,772
6,300 6% due 5/01/2009 6,992
1,300 East Lansing, Michigan, School District, GO, Refunding, Series B, 5% due 5/01/2030 (e) 1,370
Eaton Rapids, Michigan, Public Schools, School Building and Site, GO (d):
2,000 5.25% due 5/01/2023 2,171
1,000 5% due 5/01/2026 1,053
1,250 5% due 5/01/2029 1,312
Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley Medical
Center), Series A (h):
385 5.375% due 7/01/2020 397
775 6% due 7/01/2020 846
1,800 Fowlerville, Michigan, Community Schools, School District, GO, 5% due 5/01/2030 (c) 1,889
3,650 Gibraltar, Michigan, School District, School Building and Site, GO, 5% due 5/01/2028 (c) 3,839
Grand Blanc, Michigan, Community Schools, GO (c):
1,000 5.625% due 5/01/2017 1,120
1,000 5.625% due 5/01/2018 1,119
1,100 5.625% due 5/01/2019 1,231
1,660 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50% due
10/1/2012 (a)(f) 1,852
1,500 Grand Rapids, Michigan, Sanitation Sewer System, Revenue Refunding and Improvement
Bonds, Series A, 5.50% due 1/01/2022 (c) 1,746
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield Michigan Insured Fund II, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Michigan (continued)
$ 225 Harper Woods, Michigan, City School District, School Building and Site, GO, Refunding,
5% due 5/01/2034 (c) $ 236
7,425 Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(f) 8,407
1,275 Haslett, Michigan, Public School District, Building and Site, GO, 5.625% due 5/01/2018 (e) 1,425
2,000 Howell, Michigan, Public Schools, GO, 5.875% due 5/01/2009 (e)(f) 2,210
2,660 Hudsonville, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (d) 2,792
3,975 Jackson, Michigan, Public Schools, GO, 5.375% due 5/01/2010 (c)(f) 4,386
7,550 Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility Revenue Refunding
Bonds (Bronson Methodist Hospital), 5.50% due 5/15/2028 (e) 8,027
3,000 Kent, Michigan, Hospital Finance Authority, Revenue Bonds (Spectrum Health), Series A,
5.50% due 1/15/2031 (e) 3,226
1,440 Ludington, Michigan, Area School District, GO, 5.25% due 5/01/2023 (e) 1,582
1,455 Mayville, Michigan, Community Schools, School Building and Site, GO, 5% due 5/01/2034 (c) 1,527
1,125 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Bonds
(Hillsdale College Project), 5% due 3/01/2035 1,156
1,000 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Refunding
Bonds (Hope College), Series A, 5.90% due 4/01/2032 1,062
Michigan Higher Education Facilities Authority, Revenue Refunding Bonds (College for
Creative Studies):
550 5.85% due 12/01/2022 569
1,000 5.90% due 12/01/2027 1,029
3,000 Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds, AMT,
Series XVII-B, 5.40% due 6/01/2018 (a) 3,115
Michigan State Building Authority Revenue Bonds:
1,185 (Facilities Program), Series II, 4.67%** due 10/15/2009 (a)(b) 1,019
1,675 (Facilities Program), Series II, 4.77%** due 10/15/2010 (a)(b) 1,381
2,675 GO, RIB, Series 481, 7.74% due 4/15/2009 (e)(g) 3,268
Michigan State Building Authority, Revenue Refunding Bonds:
2,000 (Facilities Program), Series II, 5% due 10/15/2029 (e) 2,096
3,500 RIB, Series 517X, 7.74% due 10/15/2010 (d)(g) 4,326
Michigan State, COP:
3,870 5.50% due 6/01/2027 (a) 4,175
5,380 RIB, Series 530, 8.21% due 9/01/2011 (e)(g) 6,732
1,500 Michigan State Comprehensive Transportation, Revenue Refunding Bonds, Series A, 5.50%
due 11/01/2018 (d) 1,665
635 Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series A, 5.30% due 10/01/2037 (e) 650
655 Michigan State, HDA, Revenue Refunding Bonds, AMT, Series B, 5.50% due 6/01/2030 (e) 680
1,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mid-Michigan Obligation
Group), Series A, 5.50% due 4/15/2018 (a) 1,089
Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds:
1,300 (Crittenton Hospital), Series A, 5.625% due 3/01/2027 1,387
1,250 (Sparrow Obligation Group), 5.625% due 11/15/2031 1,319
2,000 Michigan State Hospital Finance Authority, Revenue Bonds (Mercy Health Services),
Series R, 5.375% due 8/15/2026 (a)(b) 2,065
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield Michigan Insured Fund II, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Michigan (concluded)
Michigan State Hospital Finance Authority, Revenue Refunding Bonds:
$ 5,125 5% due 11/15/2036 $ 5,336
8,000 (Ascension Health Credit), Series A, 6.125% due 11/15/2009 (e)(f) 9,063
2,500 (Ascension Health Credit), Series A, 6.125% due 11/15/2009 (f) 2,832
3,760 (Ascension Health Credit), Series A, 6.25% due 11/15/2009 (e)(f) 4,279
3,215 (Mercy Health Services), Series X, 6% due 8/15/2014 (e) 3,568
1,000 (Mercy-Mount Clemens), Series A, 6% due 5/15/2014 (e) 1,106
2,000 (Mercy-Mount Clemens), Series A, 5.75% due 5/15/2029 (e) 2,163
1,250 (Mid-Michigan Obligation Group), Series A, 5.375% due 6/01/2027 (d) 1,328
5,500 (Trinity Health), Series A, 6% due 12/01/2027 (a) 6,178
1,000 (Trinity Health Credit), Series C, 5.375% due 12/01/2023 1,059
3,450 (Trinity Health Credit), Series C, 5.375% due 12/01/2030 3,624
Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds:
8,000 (Detroit Edison Company), AMT, Series A, 5.55% due 9/01/2029 (e) 8,476
2,000 (Detroit Edison Company Fund--Pollution), Series AA, 6.95% due 5/01/2011 (c) 2,375
3,200 (Detroit Edison Pollution Control), Series C, 5.45% due 9/01/2029 3,357
1,375 (Dow Chemical Company Project), AMT, 5.50% due 12/01/2028 1,485
5,000 RIB, Series 382, 9.49% due 9/01/2025 (e)(g) 5,311
6,500 Monroe County, Michigan, Economic Development Corp., Limited Obligation Revenue Refunding
Bonds (Detroit Edison Co. Project), Series AA, 6.95% due 9/01/2022 (c) 8,631
1,000 Plainwell, Michigan, Community Schools, School District, School Building and Site, GO,
5.50% due 5/01/2018 (d) 1,117
1,000 Pontiac, Michigan, Tax Increment Finance Authority, Revenue Refunding Bonds (Development
Area Number 3), 5.375% due 6/01/2017 (h) 1,060
1,000 Reed, Michigan, City Public Schools, School Building and Site, GO, 5% due 5/01/2026 (d) 1,053
1,900 Rochester, Michigan, Community School District, GO, Series II, 5.50% due 5/01/2018 (e) 2,110
1,500 Romulus, Michigan, Community Schools, GO, 5.75% due 5/01/2009 (c)(f) 1,651
Saginaw Valley State University, Michigan, General Revenue Refunding Bonds (c):
1,450 5% due 7/01/2024 1,538
1,000 5% due 7/01/2034 1,048
6,500 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison Company),
RIB, Series 282, 9.49% due 8/01/2024 (a)(g) 8,019
2,650 South Lyon, Michigan, Community Schools, GO, Series A, 5.75% due 5/01/2010 (e)(f) 2,970
Southfield, Michigan, Public Schools, School Building and Site, GO, Series B (d):
1,950 5.25% due 5/01/2027 2,105
1,000 5% due 5/01/2029 1,049
1,000 Sparta, Michigan, Area Schools, School Building and Site, GO, 5% due 5/01/2030 (c) 1,049
2,015 Sturgis, Michigan, Public School District, GO, Refunding, 5% due 5/01/2030 (c) 2,123
1,000 Tecumseh, Michigan, Public Schools, GO, Refunding, 5.125% due 5/01/2030 (c) 1,066
6,500 Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan Wayne County),
AMT, Series A, 5.375% due 12/01/2015 (e) 6,912
1,180 Wayne Charter County, Michigan, Detroit Metropolitan Airport, GO, Airport Hotel, Series A,
5% due 12/01/2030 (e) 1,227
Wayne County, Michigan, Airport Authority, Revenue Bonds (Detroit Metropolitan Wayne County
Airport), AMT (e):
4,475 5.25% due 12/01/2025 4,759
3,700 5.25% due 12/01/2026 3,919
1,330 Zeeland, Michigan, Public Schools, School Building and Site, GO, 5% due 5/01/2029 (e) 1,396
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (concluded) MuniYield Michigan Insured Fund II, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Puerto Rico--1.6%
$ 2,270 Puerto Rico Electric Power Authority, Power Revenue Bonds, Trust Receipts,
Class R, Series 16 HH, 8.193% due 7/01/2013 (d)(g) $ 2,847
Total Investments (Cost--$244,314*)--147.1% 266,400
Other Assets Less Liabilities--2.1% 3,779
Preferred Stock, at Redemption Value--(49.2%) (89,027)
---------
Net Assets Applicable to Common Stock--100.0% $ 181,152
=========
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2005, as computed for federal income tax purposes,
were as follows:
(in Thousands)
Aggregate cost $ 244,139
==============
Gross unrealized appreciation $ 22,478
Gross unrealized depreciation (217)
--------------
Net unrealized appreciation $ 22,261
==============
** Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase by the Fund.
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) FSA Insured.
(e) MBIA Insured.
(f) Prerefunded.
(g) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(h) ACA Insured.
(i) Security may have a maturity of more than one year at time of
issuance, but has variable rate and demand features which qualify it
as a short-term security. The rate disclosed is that currently in effect.
This rate changes periodically based upon prevailing market rates.
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) were as follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
CMA Michigan Municipal
Money Fund (4,166) $11
Forward interest rate swaps outstanding as of April 30, 2005 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
3.702%
Broker, JPMorgan Chase Bank
Expires July 2015 $13,500 $(87)
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments MuniYield New York Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New York--131.4%
$ 23,790 Albany County, New York, Airport Authority, Airport Revenue Bonds, AMT, 6% due
12/15/2023 (c) $ 25,829
8,200 Buffalo and Fort Erie, New York, Public Bridge Authority, Toll Bridge System Revenue
Bonds, 5.75% due 1/01/2025 (d) 8,300
Buffalo, New York, School, GO, Series D (b):
1,250 5.50% due 12/15/2014 1,399
1,500 5.50% due 12/15/2016 1,686
4,300 Buffalo, New York, Sewer Authority, Revenue Refunding Bonds, Series F, 6% due 7/01/2013 (b) 5,055
1,700 Dutchess County, New York, Resource Recovery Agency Revenue Bonds (Solid Waste
System--Forward), Series A, 5.40% due 1/01/2013 (d) 1,882
Erie County, New York, IDA, School Facility Revenue Bonds (City of Buffalo Project) (c):
1,900 5.75% due 5/01/2020 2,130
5,250 5.75% due 5/01/2024 5,786
Huntington, New York, GO, Refunding (a):
485 5.50% due 4/15/2011 544
460 5.50% due 4/15/2012 523
455 5.50% due 4/15/2013 518
450 5.50% due 4/15/2014 515
450 5.50% due 4/15/2015 516
1,675 Ilion, New York, Central School District, GO, Series B, 5.50% due 6/15/2010 (b)(e) 1,882
Long Island Power Authority, New York, Electric System Revenue Bonds, Series A (a):
7,000 5% due 9/01/2029 7,379
8,500 5% due 9/01/2034 8,920
2,000 Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds,
Series A, 5.75% due 1/01/2008 (d)(e) 2,178
10,000 Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Refunding
Bonds, Series B, 4.875% due 7/01/2018 (b)(h) 10,459
Metropolitan Transportation Authority, New York, Dedicated Tax Fund Revenue Bonds,
Series A:
7,280 5% due 11/15/2011 (b)(e) 8,001
1,015 5% due 11/15/2032 (c) 1,058
10,000 Metropolitan Transportation Authority, New York, Dedicated Tax Fund, Revenue Refunding
Bonds, Series A, 5% due 11/15/2030 (d) 10,434
Metropolitan Transportation Authority, New York, Revenue Bonds, Series A:
2,715 5% due 11/15/2033 (a) 2,863
2,500 4.50% due 11/15/2034 (a) 2,484
2,150 4.50% due 11/15/2035 (d) 2,136
Metropolitan Transportation Authority, New York, Revenue Refunding Bonds:
28,900 RIB, Series 724X, 8.26% due 11/15/2032 (c)(g) 36,313
2,500 Series A, 5.50% due 11/15/2018 (a) 2,803
1,740 Series A, 5.125% due 11/15/2022 (b) 1,876
2,500 Series A, 5.25% due 11/15/2031 (b) 2,683
1,500 Series B, 5% due 11/15/2028 (d) 1,578
2,000 Metropolitan Transportation Authority, New York, Service Contract Revenue Refunding
Bonds, Series A, 5% due 7/01/2025 (b) 2,107
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield New York Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New York (continued)
Metropolitan Transportation Authority, New York, Transit Facilities Revenue Refunding
Bonds, Series C (c)(e):
$ 2,885 5.125% due 1/01/2012 $ 3,193
1,640 5.125% due 7/01/2012 1,822
2,500 Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series A,
5% due 11/15/2032 (b) 2,617
Metropolitan Transportation Authority, New York, Transportation Revenue Refunding Bonds,
Series F (d):
6,235 5.25% due 11/15/2027 6,736
5,000 5% due 11/15/2031 5,210
Monroe County, New York, IDA, Revenue Bonds (Southview Towers Project), AMT:
1,400 6.125% due 2/01/2020 1,537
1,125 6.25% due 2/01/2031 1,235
1,410 Montgomery County, New York, IDA, Lease Revenue Bonds (Hamilton Fulton Montgomery
Board of Cooperative Educational Services Project), Series A, 5% due 7/01/2034 (l) 1,470
12,130 Nassau Health Care Corporation, New York, Health System Revenue Bonds, 5.75% due
8/01/2009 (c)(e)(m) 13,672
455 New York City, New York, City Health and Hospital Corporation, Health System Revenue
Bonds, Series A, 5.375% due 2/15/2026 473
1,275 New York City, New York, City IDA, Civic Facility Revenue Refunding Bonds
(Nightingale--Bamford School), 5.25% due 1/15/2018 (a) 1,397
13,175 New York City, New York, City IDA, IDR (Japan Airlines Company), AMT, 6% due 11/01/2015 (c) 13,591
7,970 New York City, New York, City IDA, Parking Facility Revenue Bonds (Royal Charter--New York
Presbyterian), 5.75% due 12/15/2029 (c) 9,052
14,970 New York City, New York, City IDA, Special Facilities Revenue Bonds (Terminal One Group),
AMT, 6.125% due 1/01/2024 (d) 15,194
500 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System,
Crossover Revenue Refunding Bonds, Series F, 5% due 6/15/2029 (c) 519
New York City, New York, City Municipal Water Finance Authority, Water and Sewer System
Revenue Bonds:
12,500 RIB, Series 726X, 8.26% due 6/15/2027 (d)(g) 15,752
2,850 Series A, 5.75% due 6/15/2009 (b)(e) 3,184
4,085 Series B, 5.75% due 6/15/2006 (d)(e) 4,264
17,200 Series B, 5.75% due 6/15/2007 (d)(e) 18,385
New York City, New York, City Municipal Water Finance Authority, Water and Sewer System,
Revenue Refunding Bonds:
5,000 5.50% due 6/15/2033 (d) 5,441
1,250 Series A, 5.125% due 6/15/2034 (d) 1,308
7,015 Series B, 5.75% due 6/15/2026 (d) 7,321
3,000 VRDN, Series A, 2.98% due 6/15/2025 (b)(f) 3,000
1,020 New York City, New York, City Transit Authority, Metropolitan Transportation Authority,
Triborough, COP, Series A, 5.625% due 1/01/2012 (a) 1,134
3,000 New York City, New York, City Transitional Finance Authority, Future Tax Secured,
Revenue Refunding Bonds, Series D, 5.25% due 2/01/2021 (d) 3,285
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield New York Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New York (continued)
New York City, New York, City Transitional Finance Authority Revenue Bonds, Future
Tax Secured:
$ 6,805 Series B, 6.25% due 5/15/2010 (b)(e) $ 7,883
800 Series B, 6.25% due 5/15/2010 (e) 928
3,160 Series C, 5.50% due 5/01/2025 3,395
16,195 Series C, 5% due 2/01/2033 (b) 16,942
2,500 Series E, 5.25% due 2/01/2022 (d) 2,738
1,000 New York City, New York, City Transitional Finance Authority, Revenue Refunding Bonds,
Series A, 5% due 11/15/2026 (b) 1,047
New York City, New York, GO:
11,043 RIB, Series 725X, 8.26% due 3/15/2027 (c)(g) 13,626
645 Series A, 5.75% due 5/15/2010 (b)(e) 732
2,355 Series A, 5.75% due 5/15/2024 (b) 2,673
2,500 Series B, 5.75% due 8/01/2013 (d) 2,804
3,750 Series D, 5.25% due 10/15/2023 3,998
2,500 Series D, 5% due 11/01/2026 2,602
5,200 Series D, 5% due 11/01/2034 5,379
8,000 Series J, 5% due 5/15/2023 8,379
9,000 Series M, 5% due 4/01/2035 9,320
2,295 Sub-Series C-1, 4.75% due 8/15/2025 2,343
1,150 Sub-Series C-1, 5.25% due 8/15/2026 1,233
New York City, New York, GO, Refunding:
895 Series A, 6.375% due 5/15/2010 (b)(e) 1,042
105 Series A, 6.375% due 5/15/2013 (b) 121
70 Series B, 7% due 2/01/2018 (a) 70
2,600 Series G, 5.75% due 2/01/2006 (e) 2,699
3,000 Series G, 5% due 12/01/2020 3,173
1,050 Series G, 5.75% due 2/01/2020 1,084
New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds,
Series A (a):
13,000 5.25% due 10/15/2027 14,216
26,050 5% due 10/15/2032 27,517
750 4.50% due 10/15/2033 751
4,250 New York City, New York, Trust for Cultural Resources, Revenue Refunding Bonds (American
Museum of Natural History), Series A, 5% due 7/01/2036 (d) 4,472
New York State Dormitory Authority Revenue Bonds:
3,935 (Eger Health Care and Rehabilitation Center), 6.10% due 8/01/2037 (i) 4,431
1,500 (Long Island University), Series B, 5.25% due 9/01/2028 (k) 1,588
2,000 (New School for Social Research), 5.75% due 7/01/2026 (d) 2,145
1,180 (New York State Rehabilitation Association), Series A, 5.25% due 7/01/2019 (j) 1,277
1,000 (New York State Rehabilitation Association), Series A, 5.125% due 7/01/2023 (j) 1,061
6,900 (School Districts Financing Program), Series E, 5.75% due 10/01/2030 (d) 7,772
1,000 Series B, 6.50% due 2/15/2011 (d)(h) 1,174
3,560 (State University Adult Facilities), Series B, 5.75% due 5/15/2010 (c)(e) 4,038
1,780 (Upstate Community Colleges), Series A, 6% due 7/01/2010 (c)(e) 2,043
New York State Dormitory Authority, Revenue Refunding Bonds:
1,000 (City University System), Consolidated, Series 1, 5.625% due 1/01/2008 (c)(e) 1,090
4,400 (City University System), Series C, 7.50% due 7/01/2010 (b) 4,931
4,255 (Mental Health Services Facilities Improvement), Series A, 5.75% due 2/15/2007 (d)(e) 4,552
150 (Mental Health Services Facilities Improvement), Series A, 5.75% due 2/15/2027 (d) 159
1,370 (School District Financing Program), Series I, 5.75% due 10/01/2018 (d) 1,555
1,750 Series B, 5.25% due 11/15/2029 (b) 1,927
6,000 (Siena College), 5.75% due 7/01/2026 (d) 6,434
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield New York Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New York (continued)
$ 1,285 New York State Dormitory Authority, State Personal Income Tax Revenue Bonds (Education),
Series A, 4.25% due 3/15/2030 (a) $ 1,231
New York State Dormitory Authority, Supported Debt Revenue Bonds (Mental Health
Facilities), Series B:
1,570 5.25% due 2/15/2014 (e) 1,760
270 5.25% due 2/15/2023 289
1,000 New York State Dormitory Authority, Supported Debt Revenue Refunding Bonds (Department
of Health), Series A, 5% due 7/01/2025 (j) 1,056
12,750 New York State Energy Research and Development Authority, Facilities Revenue Refunding
Bonds (Consolidated Edison Company of New York, Inc. Project), Series A, 6.10% due
8/15/2020 (a) 13,075
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) 4,593
3,500 New York State Environmental Facilities Corporation, Special Obligation Revenue
Refunding Bonds (Riverbank State Park), 6.25% due 4/01/2012 (a) 4,106
3,900 New York State Environmental Facilities Corporation, State Clean Water and Drinking Water
Revolving Funds Revenue Bonds (Pooled Financing Program), Series A, 4.50% due 11/15/2034 3,879
2,405 New York State HFA Revenue Refunding Bonds (Housing Mortgage Project), Series A, 6.10%
due 11/01/2015 (c) 2,533
800 New York State Housing Finance Agency, State Personal Income Tax Revenue Bonds (Economic
Development and Housing), Series A, 5% due 9/15/2023 (d) 849
1,000 New York State Housing Finance Agency, State Personal Income Tax, Revenue Refunding Bonds
(Economic Development and Housing), Series A, 5% due 9/15/2034 (b) 1,048
5,375 New York State Medical Care Facilities Finance Agency, Revenue Bonds (Health Center
Project--Second Mortgage), Series A, 6.375% due 11/15/2019 (a) 5,580
2,000 New York State Medical Care Facilities Finance Agency, Revenue Refunding Bonds
(Hospital & Nursing Homes), Series B, 6.25% due 2/15/2025 (i) 2,059
9,590 New York State Mortgage Agency, Homeowner Mortgage Revenue Refunding Bonds, AMT,
Series 67, 5.80% due 10/01/2028 (d) 9,836
2,850 New York State Mortgage Agency Revenue Bonds, DRIVERS, AMT, Series 295, 8.436%
due 4/01/2030 (d)(g) 3,159
New York State Municipal Bond Bank Agency, Special School Purpose Revenue Bonds, Series C:
3,470 5.25% due 6/01/2019 3,752
3,920 5.25% due 6/01/2020 4,230
2,250 5.25% due 6/01/2021 2,422
5,000 New York State Thruway Authority, General Revenue Bonds, Series F, 5% due 1/01/2030 (a) 5,266
2,820 New York State Thruway Authority, Highway and Bridge Trust Fund Revenue Bonds,
Series A, 6.25% due 4/01/2011 (c) 3,227
New York State Thruway Authority, Local Highway and Bridge Service Contract Revenue
Bonds (e):
3,000 5.75% due 4/01/2010 (a) 3,398
2,000 Series A-2, 5.375% due 4/01/2008 (d) 2,160
New York State Thruway Authority, Local Highway and Bridge Service Contract, Revenue
Refunding Bonds (d):
2,170 6% due 4/01/2007 (e) 2,339
1,330 6% due 4/01/2011 1,431
2,075 6% due 4/01/2012 2,232
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield New York Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New York (continued)
$ 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) $ 3,338
1,525 New York State Thruway, Transportation Authority, State Personal Income Tax Revenue
Bonds, Series A, 5% due 3/15/2020 (d) 1,642
4,750 New York State Urban Development Corporation, Personal Income Tax Revenue Bonds,
Series C-1, 5% due 3/15/2013 (d)(e) 5,246
3,190 New York State Urban Development Corporation, Revenue Refunding Bonds (Correctional Capital
Facilities), Series A, 6.50% due 1/01/2011 (c) 3,716
1,000 Niagara Falls, New York, City School District, COP, Refunding (High School Facility),
5% due 6/15/2028 (c) 1,050
1,000 Niagara Falls, New York, GO (Water Treatment Plant), AMT, 7.25% due 11/01/2010 (d)(e) 1,184
2,705 Niagara, New York, Frontier Authority, Airport Revenue Bonds (Buffalo Niagara
International Airport), Series B, 5.50% due 4/01/2019 (d) 2,947
1,260 North Country, New York, Development Authority, Solid Waste Management System, Revenue
Refunding Bonds, 6% due 5/15/2015 (c) 1,459
North Hempstead, New York, GO, Refunding, Series B (b):
1,745 6.40% due 4/01/2013 2,094
555 6.40% due 4/01/2017 687
1,665 Oneida County, New York, IDA, Civic Facilities Revenue Bonds (Mohawk Valley), Series A,
5.20% due 2/01/2013 (c) 1,778
2,500 Port Authority of New York and New Jersey, Consolidated Revenue Bonds, AMT, 137th Series,
5.125% due 7/15/2030 (c) 2,634
4,000 Port Authority of New York and New Jersey, Consolidated Revenue Refunding Bonds, AMT,
119th Series, 5.50% due 9/15/2016 (b) 4,157
4,075 Port Authority of New York and New Jersey, Revenue Bonds, Trust Receipts, AMT, Class R,
Series 10, 8.463% due 1/15/2017 (c)(g) 4,509
7,500 Port Authority of New York and New Jersey, Revenue Refunding Bonds, DRIVERS, AMT,
Series 177, 8.681% due 10/15/2032 (d)(g) 8,618
Port Authority of New York and New Jersey, Special Obligation Revenue Bonds, AMT (d):
1,750 DRIVERS, Series 192, 8.191% due 12/01/2025 (g) 1,956
5,080 DRIVERS, Series 278, 8.179% due 12/01/2022 (g) 5,863
14,750 (JFK International Air Terminal), Series 6, 6.25% due 12/01/2010 16,577
7,175 (JFK International Air Terminal LLC), Series 6, 6.25% due 12/01/2011 8,158
4,425 (Special Project--JFK International Air Terminal), Series 6, 6.25% due 12/01/2013 5,102
7,380 (Special Project--JFK International Air Terminal), Series 6, 6.25% due 12/01/2014 8,597
1,255 Rensselaer County, New York, IDA, Civic Facility Revenue Bonds (Rensselaer Polytechnic
Institute), Series B, 5.50% due 8/01/2022 (a) 1,365
4,625 Suffolk County, New York, IDA, IDR (Keyspan--Port Jefferson), AMT, 5.25% due 6/01/2027 4,803
Suffolk County, New York, IDA, Solid Waste Disposal Facility, Revenue Refunding Bonds
(Ogden Martin System Huntington Project), AMT (a):
8,530 6% due 10/01/2010 9,592
9,170 6.15% due 10/01/2011 10,511
6,470 6.25% due 10/01/2012 7,527
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (continued) MuniYield New York Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New York (concluded)
Tobacco Settlement Financing Corporation of New York Revenue Bonds:
$ 5,000 Series A-1, 5.25% due 6/01/2020 (a) $ 5,421
5,000 Series A-1, 5.25% due 6/01/2021 (a) 5,403
2,000 Series A-1, 5.25% due 6/01/2022 (a) 2,154
2,000 Series C-1, 5.50% due 6/01/2021 2,195
1,900 Series C-1, 5.50% due 6/01/2022 2,073
Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Refunding
Bonds (d):
2,500 Series A, 5% due 1/01/2032 2,594
2,305 Series Y, 6% due 1/01/2012 (h) 2,613
Triborough Bridge and Tunnel Authority, New York, Revenue Refunding Bonds (d):
7,000 5.25% due 11/15/2023 7,627
19,675 5% due 11/15/2032 20,502
1,500 Series B, 5% due 11/15/2032 1,563
Triborough Bridge and Tunnel Authority, New York, Subordinate Revenue Bonds:
2,465 5% due 11/15/2028 (a) 2,593
6,000 Series A, 5.25% due 11/15/2030 (d) 6,444
2,500 United Nations Development Corporation, New York, Revenue Refunding Bonds, Senior Lien,
Series A, 5.25% due 7/01/2020 2,599
2,010 Yonkers, New York, GO, Series A, 5.75% due 10/01/2017 (b) 2,264
Guam--0.8%
A.B. Won Guam International Airport Authority, General Revenue Refunding Bonds, AMT,
Series C (d):
2,240 5.25% due 10/01/2021 2,386
2,050 5.25% due 10/01/2022 2,184
Puerto Rico--9.9%
Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Bonds:
1,900 5.25% due 7/01/2018 (b) 2,100
2,265 Series G, 5.25% due 7/01/2019 (b) 2,500
1,000 Series G, 5.25% due 7/01/2021 (b) 1,104
1,250 Trust Receipts, Class R, Series B, 8.463% due 7/01/2035 (d)(g) 1,558
8,495 Puerto Rico Commonwealth, Highway and Transportation Authority, Transportation Revenue
Refunding Bonds, Series D, 5.75% due 7/01/2041 9,486
Puerto Rico Commonwealth, Public Improvement, GO, Series A:
4,605 5.25% due 7/01/2019 4,983
7,480 5.25% due 7/01/2020 8,077
Puerto Rico Electric Power Authority, Power Revenue Bonds:
4,750 Series NN, 5.125% due 7/01/2029 4,991
5,000 Series RR, 5% due 7/01/2029 (j) 5,286
5,095 Series RR, 5% due 7/01/2030 (l) 5,403
2,000 Puerto Rico Public Buildings Authority, Government Facilities, Revenue Refunding Bonds,
Series J, 5% due 7/01/2036 (a) 2,202
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Schedule of Investments (concluded) MuniYield New York Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Puerto Rico (concluded)
Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds,
Series E:
$ 2,300 5.50% due 2/01/2012 (e) $ 2,593
700 5.50% due 8/01/2029 750
6,100 Puerto Rico Public Finance Corporation Revenue Bonds, DRIVERS, Series 272, 8.069%
due 8/01/2030 (g) 6,721
Total Investments (Cost--$778,965*)--142.1% 826,962
Other Assets Less Liabilities--2.4% 14,275
Preferred Stock, at Redemption Value--(44.5%) (259,120)
---------
Net Assets Applicable to Common Stock--100.0% $ 582,117
=========
* The cost and unrealized appreciation (depreciation) of investments
as of April 30, 2005, as computed for federal income tax purposes,
were as follows:
(in Thousands)
Aggregate cost $ 779,071
==============
Gross unrealized appreciation $ 47,961
Gross unrealized depreciation (70)
--------------
Net unrealized appreciation $ 47,891
==============
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FSA Insured.
(d) MBIA Insured.
(e) Prerefunded.
(f) Security may have a maturity of more than one year at time of
issuance, but has variable rate and demand features which qualify it
as a short-term security. The rate disclosed is that currently in effect.
This rate changes periodically based upon prevailing market rates.
(g) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(h) Escrowed to maturity.
(i) FHA Insured.
(j) CIFG Insured.
(k) Radian Insured.
(l) XL Capital Insured.
(m) All or portion of security held as collateral in connection with open
future contracts.
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) were as follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
CMA New York Municipal
Money Fund (52) $4
Forward interest rate swaps outstanding as of April 30, 2005 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
3.684%
Broker, Morgan Stanley Capital
Services, Inc.
Expires June 2015 $41,500 $(269)
Financial futures contracts sold as of April 30, 2005 were as follows:
(in Thousands)
Number of Expiration Face Unrealized
Contracts Issue Date Value Depreciation
410 10-Year U.S. June
Treasury Note 2005 $45,043 $(640)
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Statements of Net Assets
MuniYield
MuniYield MuniYield California
Arizona California Insured
As of April 30, 2005 Fund, Inc. Fund, Inc. Fund, Inc.
Assets
Investments in unaffiliated securities, at value* $ 95,041,748 $ 454,771,779 $ 742,003,801
Cash 20,132 24,573 77,796
Interest receivable 1,842,746 8,089,144 12,789,495
Receivable for securities sold 219,300 2,020,000 15,261,828
Prepaid expenses 3,068 8,165 12,055
--------------- --------------- ---------------
Total assets 97,126,994 464,913,661 770,144,975
--------------- --------------- ---------------
Liabilities
Payable for securities purchased -- 3,753,136 16,118,070
Payable to investment adviser 37,009 176,011 287,237
Dividends payable to Common Stock shareholders 30,478 170,389 267,341
Payable to other affiliates 1,020 3,226 5,258
Variation margin payable -- 25,000 --
Accrued expenses 15,296 63,391 56,534
--------------- --------------- ---------------
Total liabilities 83,803 4,191,153 16,734,440
--------------- --------------- ---------------
Preferred Stock
Preferred Stock, at redemption value of AMPS+++ at $25,000 per
share liquidation preference** 30,308,155 140,000,000 230,021,150
--------------- --------------- ---------------
Net Assets Applicable to Common Stock
Net assets applicable to Common Stock $ 66,735,036 $ 320,722,508 $ 523,389,385
=============== =============== ===============
Net Assets Consist of
Undistributed investment income--net $ 1,072,027 $ 1,420,770 $ 6,230,533
Accumulated realized capital losses--net (209,452) (7,645,876) (21,102,366)
Unrealized appreciation--net 6,217,764 24,860,160 40,000,475
--------------- --------------- ---------------
Total accumulated earnings--net 7,080,339 18,635,054 25,128,642
Common Stock, par value $.10 per share++ 447,838 2,129,526 3,436,120
Paid-in capital in excess of par 59,206,859 299,957,928 494,824,623
--------------- --------------- ---------------
Net Assets $ 66,735,036 $ 320,722,508 $ 523,389,385
=============== =============== ===============
Net asset value per share of Common Stock $ 14.90 $ 15.06 $ 15.23
=============== =============== ===============
Market Price $ 14.95 $ 13.88 $ 13.91
=============== =============== ===============
* Identified cost $ 88,823,984 $ 429,948,840 $ 702,003,326
=============== =============== ===============
** Preferred Stock authorized, issued and outstanding:
Series A Shares, par value $.10 per share 518 2,400 1,800
=============== =============== ===============
Series B Shares, par value $.10 per share 694 2,400 1,800
=============== =============== ===============
Series C Shares, par value $.10 per share -- 800 1,600
=============== =============== ===============
Series D Shares, par value $.10 per share -- -- 2,000
=============== =============== ===============
Series E Shares, par value $.10 per share -- -- 2,000
=============== =============== ===============
++ Common Stock issued and outstanding 4,478,382 21,295,255 34,361,200
=============== =============== ===============
+++ Auction Market Preferred Stock.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Statements of Net Assets
MuniYield MuniYield
MuniYield Michigan New York
Florida Insured Insured
As of April 30, 2005 Fund Fund II, Inc. Fund, Inc.
Assets
Investments in unaffiliated securities, at value* $ 290,576,627 $ 266,399,601 $ 826,962,467
Cash 86,042 59,728 22,501
Receivable for securities sold 9,948,734 2,915,278 3,132,823
Interest receivable 3,890,483 5,080,464 13,498,097
Variation margin receivable -- -- 102,500
Prepaid expenses 6,681 6,430 13,376
--------------- --------------- ---------------
Total assets 304,508,567 274,461,501 843,731,764
--------------- --------------- ---------------
Liabilities
Unrealized depreciation on forward interest rate swaps 219,363 87,453 268,920
Payable for securities purchased 1,688,141 3,921,477 1,030,380
Payable to investment adviser 115,373 103,105 321,168
Dividends payable to Common Stock shareholders/Common Shareholders 58,995 115,324 330,544
Payable to other affiliates 3,328 2,989 9,301
Swaps payable -- -- 439,097
Accrued expenses and other liabilities 33,476 52,326 95,765
--------------- --------------- ---------------
Total liabilities 2,118,676 4,282,674 2,495,175
--------------- --------------- ---------------
Preferred Stock/Shares
Preferred Stock/Shares, at redemption value of AMPS+++ at
$25,000 per share liquidation preference** 95,000,000 89,026,907 259,119,632
--------------- --------------- ---------------
Net Assets Applicable to Common Stock/Shares
Net assets applicable to Common Stock/Shares $ 207,389,891 $ 181,151,920 $ 582,116,957
=============== =============== ===============
Net Assets Consist of
Undistributed investment income--net $ 3,058,235 $ 2,238,674 $ 7,232,123
Accumulated realized capital losses--net (9,973,068) (8,322,830) (33,817,432)
Unrealized appreciation--net 18,226,873 21,998,549 47,088,204
--------------- --------------- ---------------
Total accumulated earnings--net 11,312,040 15,914,393 20,502,895
Common Stock/Shares, par value $.10 per share++ 1,355,188 1,204,659 3,944,596
Paid-in capital in excess of par 194,722,663 164,032,868 557,669,466
--------------- --------------- ---------------
Net Assets $ 207,389,891 $ 181,151,920 $ 582,116,957
=============== =============== ===============
Net asset value per share of Common Stock/Shares $ 15.30 $ 15.04 $ 14.76
=============== =============== ===============
Market price $ 14.20 $ 14.10 $ 13.23
=============== =============== ===============
* Identified cost $ 272,130,391 $ 244,313,599 $ 778,964,980
=============== =============== ===============
** Preferred Stock/Shares authorized, issued and outstanding
Series A Stock/Shares, par value $.05 per share 2,200 2,200 1,700
=============== =============== ===============
Series B Stock/Shares, par value $.05 per share 1,600 -- 1,700
=============== =============== ===============
Series B Stock/Shares, par value $.10 per share -- 1,360 --
=============== =============== ===============
Series C Stock/Shares, par value $.05 per share -- -- 2,800
=============== =============== ===============
Series D Stock/Shares, par value $.05 per share -- -- 1,960
=============== =============== ===============
Series E Stock/Shares, par value $.05 per share -- -- 2,200
=============== =============== ===============
++ Common Stock/Shares issued and outstanding 13,551,880 12,046,592 39,445,962
=============== =============== ===============
+++ Auction Market Preferred Stock/Shares.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Statement of Operations
MuniYield
MuniYield MuniYield California
Arizona California Insured
For the Six Months Ended April 30, 2005 Fund, Inc. Fund, Inc. Fund, Inc.
Investment Income
Interest and amortization of premium and discount earned $ 2,571,652 $ 11,329,730 $ 18,938,685
Dividends from affiliates 2,023 9,472 8,176
--------------- --------------- ---------------
Total income 2,573,675 11,339,202 18,946,861
--------------- --------------- ---------------
Expenses
Investment advisory fees 241,637 1,150,396 1,871,574
Commission fees 37,852 176,018 289,304
Accounting services 29,940 79,118 115,570
Professional fees 21,872 25,525 27,848
Transfer agent fees 18,545 29,559 44,030
Printing and shareholder reports 16,078 18,838 21,978
Directors' fees and expenses 6,669 10,890 13,978
Pricing fees 4,231 7,873 11,128
Custodian fees 3,697 12,858 18,626
Listing fees 967 9,499 13,241
Other 12,500 21,731 25,705
--------------- --------------- ---------------
Total expenses before reimbursement 393,988 1,542,305 2,452,982
Reimbursement of expenses (1,098) (3,664) (3,140)
--------------- --------------- ---------------
Total expenses after reimbursement 392,890 1,538,641 2,449,842
--------------- --------------- ---------------
Investment income--net 2,180,785 9,800,561 16,497,019
--------------- --------------- ---------------
Realized & Unrealized Gain (Loss)--Net
Realized gain on:
Investments--net 54,378 151,910 835,161
Futures contracts--net -- -- 36,942
--------------- --------------- ---------------
Total realized gain--net 54,378 151,910 872,103
--------------- --------------- ---------------
Change in unrealized appreciation/depreciation on:
Investments--net (435,080) (3,423,105) (309,272)
Futures contracts--net -- 37,221 --
--------------- --------------- ---------------
Total change in unrealized appreciation/depreciation--net (435,080) (3,385,884) (309,272)
--------------- --------------- ---------------
Total realized and unrealized gain (loss)--net (380,702) (3,233,974) 562,831
--------------- --------------- ---------------
Dividends & Distributions to Preferred Stock Shareholders
Dividends & distributions to Preferred Stock shareholders from:
Investment income--net (241,116) (1,124,712) (1,825,836)
Realized gain--net (6,427) -- --
--------------- --------------- ---------------
Total dividends and distributions to Preferred Stock shareholders (247,543) (1,124,712) (1,825,836)
--------------- --------------- ---------------
Net Increase in Net Assets Resulting from Operations $ 1,552,540 $ 5,441,875 $ 15,234,014
=============== =============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Statement of Operations
MuniYield MuniYield
MuniYield Michigan New York
Florida Insured Insured
For the Six Months Ended April 30, 2005 Fund Fund II, Inc. Fund, Inc.
Investment Income
Interest and amortization of premium and discount earned $ 7,789,440 $ 6,965,793 $ 21,206,642
Dividends from affiliates 10,272 11,456 4,493
--------------- --------------- ---------------
Total income 7,799,712 6,977,249 21,211,135
--------------- --------------- ---------------
Expenses
Investment advisory fees 751,316 674,156 2,096,244
Commission fees 117,048 111,254 323,836
Accounting services 56,391 53,068 124,803
Professional fees 35,174 24,904 27,544
Transfer agent fees 26,224 27,667 52,360
Printing and shareholder reports 20,314 22,034 24,593
Listing fees 10,321 10,468 14,983
Directors'/Trustees' fees and expenses 8,914 8,678 15,344
Custodian fees 8,853 7,846 21,033
Pricing fees 7,663 10,105 14,000
Other 19,812 19,980 22,598
--------------- --------------- ---------------
Total expenses before reimbursement 1,062,030 970,160 2,737,338
Reimbursement of expenses (1,572) (5,731) (1,827)
--------------- --------------- ---------------
Total expenses after reimbursement 1,060,458 964,429 2,735,511
--------------- --------------- ---------------
Investment income--net 6,739,254 6,012,820 18,475,624
--------------- --------------- ---------------
Realized & Unrealized Gain (Loss)--Net
Realized gain (loss) on:
Investments--net 1,828,562 1,121,032 1,283,009
Futures contracts and forward interest rate swaps--net (438,036) 33,042 (820,679)
--------------- --------------- ---------------
Total realized gain--net 1,390,526 1,154,074 462,330
--------------- --------------- ---------------
Change in unrealized appreciation/depreciation on:
Investments--net (952,138) (3,099,130) (3,390,166)
Futures contracts and forward interest rate swaps--net 327,901 77,315 1,009,225
--------------- --------------- ---------------
Total change in unrealized appreciation/depreciation--net (624,237) (3,021,815) (2,380,941)
--------------- --------------- ---------------
Total realized and unrealized gain (loss)--net 766,289 (1,867,741) (1,918,611)
--------------- --------------- ---------------
Dividends to Preferred Stock Shareholders/Preferred Shareholders
Investment income--net (749,668) (723,576) (2,120,413)
--------------- --------------- ---------------
Net Increase in Net Assets Resulting from Operations $ 6,755,875 $ 3,421,503 $ 14,436,600
=============== =============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Statements of Changes in Net Assets MuniYield Arizona Fund, Inc.
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2005 2004
Operations
Investment income--net $ 2,180,785 $ 4,374,915
Realized gain--net 54,378 622,237
Change in unrealized appreciation--net (435,080) 1,148,593
Dividends and distributions to Preferred Stock shareholders (247,543) (278,765)
--------------- ---------------
Net increase in net assets resulting from operations 1,552,540 5,866,980
--------------- ---------------
Dividends & Distributions to Common Stock Shareholders
Investment income--net (2,067,345) (4,095,919)
Realized gain--net (98,063) --
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions to
Common Stock shareholders (2,165,408) (4,095,919)
--------------- ---------------
Common Stock Transactions
Value of shares issued to Common Stock shareholders in reinvestment of dividends 130,739 212,430
--------------- ---------------
Net Assets Applicable to Common Stock/Shares
Total increase (decrease) in net assets applicable to Common Stock (482,129) 1,983,491
Beginning of period 67,217,165 65,233,674
--------------- ---------------
End of period* $ 66,735,036 $ 67,217,165
=============== ===============
* Undistributed investment income--net $ 1,072,027 $ 1,199,703
=============== ===============
See Notes to Financial Statements.
Statements of Changes in Net Assets MuniYield California Fund, Inc.
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2005 2004
Operations
Investment income--net $ 9,800,561 $ 21,821,368
Realized gain--net 151,910 1,796,120
Change in unrealized appreciation--net (3,385,884) 554,785
Dividends to Preferred Stock shareholders (1,124,712) (1,424,248)
--------------- ---------------
Net increase in net assets resulting from operations 5,441,875 22,748,025
--------------- ---------------
Dividends to Common Stock Shareholders
Investment income--net (9,923,589) (20,698,988)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Stock shareholders (9,923,589) (20,698,988)
--------------- ---------------
Net Assets Applicable to Common Stock
Total increase (decrease) in net assets applicable to Common Stock (4,481,714) 2,049,037
Beginning of period 325,204,222 323,155,185
--------------- ---------------
End of period* $ 320,722,508 $ 325,204,222
=============== ===============
* Undistributed investment income--net $ 1,420,770 $ 2,668,510
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Statements of Changes in Net Assets MuniYield California Insured Fund, Inc.
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2005 2004
Operations
Investment income--net $ 16,497,019 $ 32,456,607
Realized gain (loss)--net 872,103 (393,889)
Change in unrealized appreciation/depreciation--net (309,272) 4,656,645
Dividends to Preferred Stock shareholders (1,825,836) (2,199,184)
--------------- ---------------
Net increase in net assets resulting from operations 15,234,014 34,520,179
--------------- ---------------
Dividends to Common Stock Shareholders
Investment income--net (15,050,206) (30,100,412)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Stock shareholders (15,050,206) (30,100,412)
--------------- ---------------
Net Assets Applicable to Common Stock
Total increase in net assets applicable to Common Stock 183,808 4,419,767
Beginning of period 523,205,577 518,785,810
--------------- ---------------
End of period* $ 523,389,385 $ 523,205,577
=============== ===============
* Undistributed investment income--net $ 6,230,533 $ 6,609,556
=============== ===============
See Notes to Financial Statements.
Statements of Changes in Net Assets MuniYield Florida Fund
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2005 2004
Operations
Investment income--net $ 6,739,254 $ 13,551,874
Realized gain (loss)--net 1,390,526 (1,088,496)
Change in unrealized appreciation--net (624,237) 5,043,296
Dividends to Preferred Shareholders (749,668) (979,988)
--------------- ---------------
Net increase in net assets resulting from operations 6,755,875 16,526,686
--------------- ---------------
Dividends to Common Shareholders
Investment income--net (6,260,969) (12,521,937)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Shareholders (6,260,969) (12,521,937)
--------------- ---------------
Net Assets Applicable to Common Shares
Total increase in net assets applicable to Common Shares 494,906 4,004,749
Beginning of period 206,894,985 202,890,236
--------------- ---------------
End of period* $ 207,389,891 $ 206,894,985
=============== ===============
* Undistributed investment income--net $ 3,058,235 $ 3,329,618
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Statements of Changes in Net Assets MuniYield Michigan Insured Fund II, Inc.
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2005 2004
Operations
Investment income--net $ 6,012,820 $ 12,033,282
Realized gain (loss)--net 1,154,074 (1,293,828)
Change in unrealized appreciation--net (3,021,815) 1,251,894
Dividends to Preferred Stock shareholders (723,576) (855,584)
--------------- ---------------
Net increase in net assets resulting from operations 3,421,503 11,135,764
--------------- ---------------
Dividends to Common Stock Shareholders
Investment income--net (5,493,246) (11,149,121)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Stock shareholders (5,493,246) (11,149,121)
--------------- ---------------
Net Assets Applicable to Common Stock
Total decrease in net assets applicable to Common Stock (2,071,743) (13,357)
Beginning of period 183,223,663 183,237,020
--------------- ---------------
End of period* $ 181,151,920 $ 183,223,663
=============== ===============
* Undistributed investment income--net $ 2,238,674 $ 2,442,676
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Statements of Changes in Net Assets MuniYield New York Insured Fund, Inc.
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2005 2004
Operations
Investment income--net $ 18,475,624 $ 36,051,644
Realized gain (loss)--net 462,330 (15,384,933)
Change in unrealized appreciation/depreciation--net (2,380,941) 15,015,826
Dividends to Preferred Stock shareholders (2,120,413) (2,455,390)
--------------- ---------------
Net increase in net assets resulting from operations 14,436,600 33,227,147
--------------- ---------------
Dividends to Common Stock Shareholders
Investment income--net (16,567,304) (33,004,436)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Stock shareholders (16,567,304) (33,004,436)
--------------- ---------------
Net Assets Applicable to Common Stock
Total increase (decrease) in net assets applicable to Common Stock (2,130,704) 222,711
Beginning of period 584,247,661 584,024,950
--------------- ---------------
End of period* $ 582,116,957 $ 584,247,661
=============== ===============
* Undistributed investment income--net $ 7,232,123 $ 7,444,216
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights MuniYield Arizona Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Per Share Operating Performance
Net asset value, beginning of period $ 15.04 $ 14.64 $ 14.53 $ 14.19 $ 13.11
---------- ---------- ---------- ---------- ----------
Investment income--net .49+++ .98+++ 1.00+++ .97 .94
Realized and unrealized gain (loss)--net (.10) .40 .05 .26 1.02
Less dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.05) (.06) (.06) (.09) (.20)
Realized gain--net --++ -- -- -- --
---------- ---------- ---------- ---------- ----------
Total from investment operations .34 1.32 .99 1.14 1.76
---------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.46) (.92) (.88) (.80) (.68)
Realized gain--net (.02) -- -- -- --
---------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common Stock
shareholders (.48) (.92) (.88) (.80) (.68)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 14.90 $ 15.04 $ 14.64 $ 14.53 $ 14.19
========== ========== ========== ========== ==========
Market price per share, end of period $ 14.95 $ 15.10 $ 14.13 $ 13.25 $ 13.19
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 2.34%+++++ 9.40% 7.19% 8.60% 14.20%
========== ========== ========== ========== ==========
Based on market price per share 2.28%+++++ 13.80% 13.45% 6.54% 25.09%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Stock
Total expenses, net of reimbursement*** 1.18%* 1.19% 1.18% 1.28% 1.33%
========== ========== ========== ========== ==========
Total expenses*** 1.19%* 1.20% 1.19% 1.28% 1.33%
========== ========== ========== ========== ==========
Total investment income--net*** 6.57%* 6.65% 6.79% 6.86% 6.88%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders .73%* .42% .42% .61% 1.48%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock
shareholders 5.84%* 6.37% 6.37% 6.25% 5.41%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Stock
Dividends to Preferred Stock shareholders 1.59%* .92% .91% 1.26% 2.97%
========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights (concluded) MuniYield Arizona Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Supplemental Data
Net assets applicable to Common Stock, end of
period (in thousands) $ 66,735 $ 67,217 $ 65,234 $ 64,699 $ 63,160
========== ========== ========== ========== ==========
Preferred Stock outstanding, end of period
(in thousands) $ 30,300 $ 30,300 $ 30,300 $ 30,300 $ 30,300
========== ========== ========== ========== ==========
Portfolio turnover 10.28% 23.69% 26.99% 42.51% 45.89%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 3,202 $ 3,218 $ 3,153 $ 3,135 $ 3,085
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Stock Outstanding
Series A--Investment income--net $ 196 $ 222 $ 220 $ 305 $ 742
========== ========== ========== ========== ==========
Series B--Investment income--net $ 201 $ 236 $ 237 $ 324 $ 742
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total investment returns exclude
the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Amount is less than $(.01) per share.
+++ Based on average shares outstanding.
+++++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights MuniYield California Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Per Share Operating Performance
Net asset value, beginning of period $ 15.27 $ 15.17 $ 15.14 $ 15.22 $ 14.19
----------- ---------- ---------- ---------- ----------
Investment income--net .46+++ 1.02+++ 1.06+++ 1.07+++ 1.03
Realized and unrealized gain (loss)--net (.15) .12 .04 (.06) 1.05
Less dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.05) (.07) (.10) (.12) (.20)
Realized gain--net -- -- --++ --++ --
----------- ---------- ---------- ---------- ----------
Total from investment operations .26 1.07 1.00 .89 1.88
----------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.47) (.97) (.97) (.97) (.85)
Realized gain--net -- -- --++ --++ --
----------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common Stock
shareholders (.47) (.97) (.97) (.97) (.85)
----------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 15.06 $ 15.27 $ 15.17 $ 15.14 $ 15.22
=========== ========== ========== ========== ==========
Market price per share, end of period $ 13.88 $ 14.43 $ 14.15 $ 14.46 $ 15.10
=========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 1.93%+++++ 7.74% 7.14% 6.14% 13.85%
=========== ========== ========== ========== ==========
Based on market price per share (.59%)+++++ 9.16% 4.64% 2.18% 22.71%
=========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Stock
Total expenses, net of reimbursement*** .96%* .96% .95% .99% 1.00%
=========== ========== ========== ========== ==========
Total expenses*** .96%* .96% .96% .99% 1.00%
=========== ========== ========== ========== ==========
Total investment income--net*** 6.11%* 6.79% 6.93% 7.13% 7.00%
=========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders .70%* .44% .63% .77% 1.37%
=========== ========== ========== ========== ==========
Investment income--net, to Common Stock
shareholders 5.41%* 6.35% 6.30% 6.36% 5.63%
=========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Stock
Dividends to Preferred Stock shareholders 1.61%* 1.02% 1.46% 1.76% 3.04%
=========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights (concluded) MuniYield California Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Supplemental Data
Net assets applicable to Common Stock, end of
period (in thousands) $ 320,723 $ 325,204 $ 323,155 $ 322,345 $ 322,524
=========== ========== ========== ========== ==========
Preferred Stock outstanding, end of period
(in thousands) $ 140,000 $ 140,000 $ 140,000 $ 140,000 $ 140,000
=========== ========== ========== ========== ==========
Portfolio turnover 22.04% 33.60% 20.24% 49.87% 58.17%
=========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 3,291 $ 3,323 $ 3,308 $ 3,302 $ 3,304
=========== ========== ========== ========== ==========
Dividends Per Share on Preferred Stock Outstanding
Series A--Investment income--net $ 227 $ 270 $ 569 $ 607 $ 802
=========== ========== ========== ========== ==========
Series B--Investment income--net $ 190 $ 241 $ 217 $ 322 $ 721
=========== ========== ========== ========== ==========
Series C--Investment income--net $ 154 $ 250 $ 207 $ 292 $ 745
=========== ========== ========== ========== ==========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total investment returns exclude
the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Amount is less than $(.01) per share.
+++ Based on average shares outstanding.
+++++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights MuniYield California Insured Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Per Share Operating Performance
Net asset value, beginning of period $ 15.23 $ 15.10 $ 15.26 $ 15.44 $ 14.24
---------- ---------- ---------- ---------- ----------
Investment income--net .48+++++ .94+++++ .95+++++ .95 1.00
Realized and unrealized gain (loss)--net .01 .13 (.18) (.22) 1.21
Less dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.05) (.06) (.06) (.09) (.20)
Realized gain--net -- -- -- --++++ --
---------- ---------- ---------- ---------- ----------
Total from investment operations .44 1.01 .71 .64 2.01
---------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.44) (.88) (.87) (.81) (.81)
Realized gain--net -- -- -- (.01) --
In excess of realized gain--net -- -- -- -- --++++
---------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common Stock
shareholders (.44) (.88) (.87) (.82) (.81)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 15.23 $ 15.23 $ 15.10 $ 15.26 $ 15.44
========== ========== ========== ========== ==========
Market price per share, end of period $ 13.91 $ 13.73 $ 13.82 $ 13.68 $ 14.46
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 3.24%+++ 7.54% 5.29% 4.68% 14.76%
========== ========== ========== ========== ==========
Based on market price per share 4.59%+++ 5.93% 7.50% .20% 12.33%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Stock
Total expenses, net of reimbursement and excluding
reorganization expenses*** .94%* .95% .94% .96% 1.06%
========== ========== ========== ========== ==========
Total expenses, excluding reorganization expenses*** .94%* .95% .94% .96% 1.06%
========== ========== ========== ========== ==========
Total expenses*** .94%* .95% .94% 1.00% 1.06%
========== ========== ========== ========== ==========
Total investment income--net*** 6.35%* 6.29% 6.20% 6.38% 6.74%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders .70%* .43% .37% .56% 1.36%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock
shareholders 5.65%* 5.86% 5.83% 5.82% 5.38%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Stock
Dividends to Preferred Stock shareholders 1.59%* .96% .85% 1.25% 2.86%
========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights (concluded) MuniYield California Insured Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Supplemental Data
Net assets applicable to Common Stock, end of
period (in thousands) $ 523,389 $ 523,206 $ 518,786 $ 524,485 $ 283,553
========== ========== ========== ========== ==========
Preferred Stock outstanding, end of period
(in thousands) $ 230,000 $ 230,000 $ 230,000 $ 230,000 $ 130,000
========== ========== ========== ========== ==========
Portfolio turnover 19.99% 68.05% 52.17% 77.13% 59.36%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 3,276 $ 3,275 $ 3,256 $ 3,280 $ 3,181
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Stock Outstanding
Series A--Investment income--net $ 184 $ 246 $ 216 $ 359 $ 758
========== ========== ========== ========== ==========
Series B--Investment income--net $ 201 $ 238 $ 212 $ 324 $ 700
========== ========== ========== ========== ==========
Series C--Investment income--net $ 185 $ 224 $ 204 $ 320 $ 683
========== ========== ========== ========== ==========
Series D++--Investment income--net $ 229 $ 249 $ 242 $ 203 --
========== ========== ========== ========== ==========
Series E++--Investment income--net $ 190 $ 236 $ 196 $ 201 --
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total investment returns exclude
the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Series D and E were issued on February 4, 2002.
++++ Amount is less than $(.01) per share.
+++ Aggregate total investment return.
+++++ Based on average shares outstanding.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights MuniYield Florida Fund
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Per Share Operating Performance
Net asset value, beginning of period $ 15.27 $ 14.97 $ 14.97 $ 14.81 $ 13.78
---------- ---------- ---------- ---------- ----------
Investment income--net .50+++ 1.00+++ 1.06+++ 1.03 1.00
Realized and unrealized gain (loss)--net .05 .29 (.07) .09 1.04
Less dividends and distributions to Preferred
Shareholders:
Investment income--net (.06) (.07) (.07) (.09) (.22)
Realized gain--net -- -- -- --++ --
---------- ---------- ---------- ---------- ----------
Total from investment operations .49 1.22 .92 1.03 1.82
---------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.46) (.92) (.92) (.87) (.79)
Realized gain--net -- -- -- --++ --
---------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common
Shareholders (.46) (.92) (.92) (.87) (.79)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 15.30 $ 15.27 $ 14.97 $ 14.97 $ 14.81
========== ========== ========== ========== ==========
Market price per share, end of period $ 14.20 $ 14.28 $ 13.80 $ 13.34 $ 13.98
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 3.49%+++++ 8.99% 6.76% 7.80% 14.24%
========== ========== ========== ========== ==========
Based on market price per share 2.71%+++++ 10.57% 10.44% 1.77% 31.36%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Shares
Total expenses, net of reimbursement*** 1.03%* 1.03% 1.04% 1.06% 1.06%
========== ========== ========== ========== ==========
Total expenses*** 1.03%* 1.03% 1.04% 1.06% 1.06%
========== ========== ========== ========== ==========
Total investment income--net*** 6.55%* 6.67% 7.01% 7.00% 6.98%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Shareholders .73%* .48% .45% .64% 1.53%
========== ========== ========== ========== ==========
Investment income--net, to Common Shareholders 5.82%* 6.19% 6.56% 6.36% 5.45%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Shares
Dividends to Preferred Shareholders 1.58%* 1.03% .97% 1.34% 3.14%
========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights (concluded) MuniYield Florida Fund
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Supplemental Data
Net assets applicable to Common Shares, end of
period (in thousands) $ 207,390 $ 206,895 $ 202,890 $ 202,919 $ 200,729
========== ========== ========== ========== ==========
Preferred Shares outstanding, end of period
(in thousands) $ 95,000 $ 95,000 $ 95,000 $ 95,000 $ 95,000
========== ========== ========== ========== ==========
Portfolio turnover 19.75% 36.11% 40.45% 39.54% 86.85%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 3,183 $ 3,178 $ 3,136 $ 3,136 $ 3,113
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Shares Outstanding
Series A--Investment income--net $ 203 $ 254 $ 247 $ 337 $ 771
========== ========== ========== ========== ==========
Series B--Investment income--net $ 189 $ 263 $ 242 $ 333 $ 801
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total investment returns exclude
the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Shareholders.
++ Amount is less than $(.01) per share.
+++ Based on average shares outstanding.
+++++ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights MuniYield Michigan Insured Fund II, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Per Share Operating Performance
Net asset value, beginning of period $ 15.21 $ 15.21 $ 14.91 $ 14.97 $ 13.83
---------- ---------- ---------- ---------- ----------
Investment income--net .50+++++ 1.00+++++ 1.02+++++ 1.00 1.00
Realized and unrealized gain (loss)--net (.15) --++++ .24 (.07) 1.15
Less dividends to Preferred Stock shareholders from
investment income--net (.06) (.07) (.07) (.10) (.22)
---------- ---------- ---------- ---------- ----------
Total from investment operations .29 .93 1.19 .83 1.93
---------- ---------- ---------- ---------- ----------
Less dividends to Common Stock shareholders from
investment income--net (.46) (.93) (.89) (.89) (.79)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 15.04 $ 15.21 $ 15.21 $ 14.91 $ 14.97
========== ========== ========== ========== ==========
Market price per share, end of period $ 14.10 $ 14.54 $ 13.75 $ 13.45 $ 13.85
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 2.08%+++ 12.91% 9.06% 3.70% 25.13%
========== ========== ========== ========== ==========
Based on market price per share .11%+++ 6.78% 8.82% 6.36% 14.91%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Stock
Total expenses, net of reimbursement*** 1.07%* 1.05% 1.01% 1.12% 1.15%
========== ========== ========== ========== ==========
Total expenses*** 1.07%* 1.07% 1.02% 1.12% 1.15%
========== ========== ========== ========== ==========
Total investment income--net*** 6.65%* 6.61% 6.73% 6.91% 6.96%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders .80%* .47% .47% .66% 1.53%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock shareholders 5.85%* 6.14% 6.26% 6.25% 5.43%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Stock
Dividends to Preferred Stock shareholders 1.63%* .96% .97% 1.36% 3.19%
========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights (concluded) MuniYield Michigan Insured Fund II, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Supplemental Data
Net assets applicable to Common Stock, end of
period (in thousands) $ 181,152 $ 183,224 $ 183,237 $ 179,607 $ 118,508
========== ========== ========== ========== ==========
Preferred Stock outstanding, end of period
(in thousands) $ 89,000 $ 89,000 $ 89,000 $ 89,000 $ 55,000
========== ========== ========== ========== ==========
Portfolio turnover 9.87% 39.26% 30.84% 41.77% 72.58%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 3,035 $ 3,059 $ 3,059 $ 3,018 $ 3,155
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Stock Outstanding
Series A--Investment income--net $ 204 $ 236 $ 243 $ 343 $ 798
========== ========== ========== ========== ==========
Series B++--Investment income--net $ 202 $ 247 $ 245 $ 136 --
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total investment returns exclude
the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Series B was issued on May 31, 2002.
++++ Amount is less than $(.01) per share.
+++ Aggregate total investment return.
+++++ Based on average shares outstanding.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights MuniYield New York Insured Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Per Share Operating Performance
Net asset value, beginning of period $ 14.81 $ 14.81 $ 14.83 $ 15.01 $ 13.76
---------- ---------- ---------- ---------- ----------
Investment income--net .47+++++ .91+++++ .97+++++ .94 .96
Realized and unrealized gain (loss)--net (.05) (.01) (.09) (.19) 1.26
Less dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.05) (.06) (.07) (.10) (.20)
Realized gain--net -- -- -- --++ --
---------- ---------- ---------- ---------- ----------
Total from investment operations .37 .84 .81 .65 2.02
---------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.42) (.84) (.83) (.83) (.77)
Realized gain--net -- -- -- --++ --
---------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common Stock
shareholders (.42) (.84) (.83) (.83) (.77)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 14.76 $ 14.81 $ 14.81 $ 14.83 $ 15.01
========== ========== ========== ========== ==========
Market price per share, end of period $ 13.23 $ 13.20 $ 13.25 $ 13.36 $ 14.02
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 2.91%+++ 6.53% 6.19% 4.97% 15.57%
========== ========== ========== ========== ==========
Based on market price per share 3.49%+++ 6.13% 5.45% 1.24% 21.26%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Common Stock
Total expenses, net of reimbursement*** .94%* .94% .94% .96% .97%
========== ========== ========== ========== ==========
Total expenses*** .94%* .95% .94% .96% .97%
========== ========== ========== ========== ==========
Total investment income--net*** 6.37%* 6.23% 6.49% 6.37% 6.66%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders .73%* .42% .50% .66% 1.38%
========== ========== ========== ========== ==========
Investment income--net, to Common Stock
shareholders 5.64%* 5.81% 5.99% 5.71% 5.28%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets of Preferred Stock
Dividends to Preferred Stock shareholders 1.64%* .95% 1.13% 1.49% 3.07%
========== ========== ========== ========== ==========
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Financial Highlights (concluded) MuniYield New York Insured Fund, Inc.
For the Six
Months Ended
The following per share data and ratios have been derived April 30, For the Year Ended October 31,
from information provided in the financial statements. 2005 2004 2003 2002 2001
Supplemental Data
Net assets applicable to Common Stock, end of
period (in thousands) $ 582,117 $ 584,248 $ 584,025 $ 584,793 $ 591,942
========== ========== ========== ========== ==========
Preferred Stock outstanding, end of period
(in thousands) $ 259,000 $ 259,000 $ 259,000 $ 259,000 $ 259,000
========== ========== ========== ========== ==========
Portfolio turnover 15.64% 19.91% 51.89% 87.56% 83.08%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 3,248 $ 3,256 $ 3,255 $ 3,258 $ 3,285
========== ========== ========== ========== ==========
Dividends Per Share on Preferred Stock Outstanding
Series A--Investment income--net $ 224 $ 254 $ 249 $ 334 $ 791
========== ========== ========== ========== ==========
Series B--Investment income--net $ 189 $ 203 $ 232 $ 305 $ 731
========== ========== ========== ========== ==========
Series C--Investment income--net $ 194 $ 240 $ 214 $ 356 $ 774
========== ========== ========== ========== ==========
Series D--Investment income--net $ 185 $ 231 $ 454 $ 503 $ 715
========== ========== ========== ========== ==========
Series E--Investment income--net $ 233 $ 251 $ 255 $ 356 $ 812
========== ========== ========== ========== ==========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or lesser than
the net asset value, may result in substantially different returns. Total investment returns exclude
the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Amount is less than $(.01) per share.
+++ Aggregate total investment return.
+++++ Based on average shares outstanding.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Notes to Financial Statements
1. Significant Accounting Policies:
MuniYield Arizona Fund, Inc., MuniYield California Fund, Inc., MuniYield
California Insured Fund, Inc., MuniYield Florida Fund, MuniYield Michigan
Insured Fund II, Inc. and MuniYield New York Insured Fund, Inc. (the "Funds"
or individually as the "Fund") are registered under the Investment Company
Act of 1940, as amended, as non-diversified, closed-end management
investment companies. The Funds' financial statements are prepared in
conformity with U.S. generally accepted accounting principles, which may
require the use of management accruals and estimates. Actual results may
differ from these estimates. These unaudited financial statements reflect
all adjustments, which are, in the opinion of management, necessary to
present a fair statement of the results for the interim period. All such
adjustments are of a normal, recurring nature. The Funds determine and make
available for publication the net asset values of their Common Stock/Shares
on a daily basis. Common Stock/Shares are listed on the New York Stock
Exchange under the symbol MYC for MuniYield California Fund, Inc., MCA for
MuniYield California Insured Fund, Inc., MYF for MuniYield Florida Fund,
MYM for MuniYield Michigan Insured Fund II, Inc. and MYN for MuniYield
New York Insured Fund, Inc. Common Stock is listed on the American Stock
Exchange under the symbol MZA for MuniYield Arizona Fund, Inc. The following
is a summary of significant accounting policies followed by the Funds.
(a) Valuation of investments--Municipal bonds are traded primarily in the
over-the-counter ("OTC") markets and are valued at the last available bid
price in the OTC market or on the basis of values as obtained by a pricing
service. Pricing services use valuation matrixes that incorporate both
dealer-supplied valuations and valuation models. The procedures of the
pricing service and its valuations are reviewed by the officers of the
Funds under the general direction of the Board of Directors/Trustees. Such
valuations and procedures are reviewed periodically by the Board of
Directors/Trustees of the Funds. 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 OTC 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 Funds'
pricing service.
Short-term investments with a remaining maturity of 60 days or less are
valued at amortized cost, which approximates market value, under which
method the investment is valued at cost and any premium or discount is
amortized on a straight line basis to maturity. Investments in open-end
investment companies are valued at their net asset value each business day.
Securities and other 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/Trustees of the Funds.
(b) Derivative financial instruments--Each Fund may engage in various
portfolio investment strategies both to increase the return of the Fund and
to hedge, or protect, their exposure to interest rate movements and
movements in the securities markets. Losses may arise due to changes in the
value of the contract or if the counterparty does not perform under the
contract.
* Financial futures contracts--Each Fund may purchase or sell financial
futures contracts and options on such futures contracts. Futures contracts
are contracts for delayed delivery of securities at a specific future date
and at a specific price or yield. Upon entering into a contract, the Fund
deposits and maintains as collateral such initial margin as required by the
exchange on which the transaction is effected. Pursuant to the contract,
the Fund agrees to receive from or pay to the broker an amount of cash
equal to the daily fluctuation in value of the contract. Such receipts or
payments are known as variation margin and are recorded by the Fund as
unrealized gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
* Options--Each 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).
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Notes to Financial Statements (continued)
Written and purchased options are non-income producing investments.
* Forward interest rate swaps--Each 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 each 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 Funds
amortize 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:
Each 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 each Fund's portfolio and provides
the necessary personnel, facilities, equipment and certain other services
necessary to the operations of the Fund. For such services, each 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/Shares. For
the six months ended April 30, 2005, the Investment Adviser agreed to
reimburse its management fee by the amount of management fees each Fund
pays to FAM indirectly through its investment described below:
Fund Investment Reimbursement
MuniYield Arizona CMA Arizona Municipal
Fund, Inc. Money Fund $1,098
MuniYield California CMA California Municipal
Fund, Inc. Money Fund $3,664
MuniYield California CMA California Municipal
Insured Fund, Inc. Money Fund $3,140
MuniYield Florida Merrill Lynch Institutional
Fund Tax-Exempt Fund $1,572
MuniYield Michigan CMA Michigan Municipal
Insured Fund II, Inc. Money Fund $5,731
MuniYield New York CMA New York Municipal
Insured Fund, Inc. Money Fund $1,827
For the six months ended April 30, 2005, the Funds reimbursed FAM for certain
accounting services. The reimbursements were as follows:
Fund Reimbursement
MuniYield Arizona Fund, Inc. $1,206
MuniYield California Fund, Inc. $5,373
MuniYield California Insured Fund, Inc. $8,478
MuniYield Florida Fund $3,256
MuniYield Michigan Insured Fund II, Inc. $2,973
MuniYield New York Insured Fund, Inc. $8,920
Certain officers and/or directors/trustees of the Funds are officers and/or
directors of FAM, PSI, and/or ML & Co.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Notes to Financial Statements (continued)
3. Investments:
Purchases and sales of investments, excluding short-term securities, for
the six months ended April 30, 2005 were as follows:
Total Total
Purchases Sales
MuniYield Arizona Fund, Inc. $ 10,425,049 $ 9,770,145
MuniYield California Fund, Inc. $102,650,879 $100,032,652
MuniYield California Insured
Fund, Inc. $156,102,752 $145,021,188
MuniYield Florida Fund $ 57,303,749 $ 60,634,560
MuniYield Michigan Insured
Fund II, Inc. $ 31,584,428 $ 25,977,439
MuniYield New York Insured
Fund, Inc. $128,948,497 $130,353,410
4. Stock/Share Transactions:
MuniYield Arizona Fund, Inc., MuniYield California Fund, Inc., MuniYield
California Insured Fund, Inc., MuniYield Michigan Insured Fund II, Inc. and
MuniYield New York Insured Fund, Inc. are 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.
MuniYield Florida Fund is authorized to issue an unlimited number of common
shares of beneficial interest, including Preferred Shares, par value $.10
per share, all of which were initially classified as Common Shares. The
Board of Trustees is authorized, however, to reclassify any unissued shares
of beneficial interest without approval of holders of Common Shares.
Common Stock/Shares
MuniYield Arizona Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2005
and for the year ended October 31, 2004 increased by 8,765 and 14,166,
respectively, as a result of dividend reinvestment.
MuniYield California Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2005
and the year ended October 31, 2004 remained constant.
MuniYield California Insured Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2005
and the year ended October 31, 2004 remained constant.
MuniYield Florida Fund
Shares issued and outstanding during the six months ended April 30, 2005
and the year ended October 31, 2004 remained constant.
MuniYield Michigan Insured Fund II, Inc.
Shares issued and outstanding during the six months ended April 30, 2005
and the year ended October 31, 2004 remained constant.
MuniYield New York Insured Fund, Inc.
Shares issued and outstanding during the six months ended April 30, 2005
and the year ended October 31, 2004 remained constant.
Preferred Stock/Shares
Auction Market Preferred Stock/Shares are redeemable Preferred Stock/Shares
of the Funds, with 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.
MuniYield Florida Fund and MuniYield New York Insured Fund, Inc. have a par
value of $.05 per share. MuniYield Arizona Fund, Inc., MuniYield California
Fund, Inc. and MuniYield California Insured Fund, Inc. have a par value of
$.10 per share. MuniYield Michigan Insured Fund II, Inc. has a par value of
$.05 and $.10 per share.
The yields in effect at April 30, 2005 were as follows:
MuniYield
MuniYield MuniYield California
Arizona California Insured
Fund, Inc. Fund, Inc. Fund, Inc.
Series A 2.05% 2.36% 2.30%
Series B 2.45% 2.10% 2.45%
Series C -- 2.40% 1.84%
Series D -- -- 2.49%
Series E -- -- 2.40%
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Notes to Financial Statements (concluded)
MuniYield MuniYield
MuniYield Michigan New York
Florida Insured II Insured
Fund Fund, Inc. Fund, Inc.
Series A 2.63% 2.55% 2.25%
Series B 2.75% 2.50% 1.97%
Series C -- -- 2.25%
Series D -- -- 2.00%
Series E -- -- 2.50%
The Funds pay commissions to certain broker-dealers at the end of each
auction at an annual rate ranging from .25% to .375%, calculated on the
proceeds of each auction. For the six months ended April 30, 2005, Merrill
Lynch, Pierce, Fenner & Smith Incorporated, an affiliate of FAM, earned
commissions as follows:
Fund Commissions
MuniYield Arizona Fund, Inc. $ 12,330
MuniYield California Fund, Inc. $ 71,407
MuniYield California Insured Fund, Inc. $ 91,475
MuniYield Florida Fund $ 62,595
MuniYield Michigan Insured Fund II, Inc. $ 46,715
MuniYield New York Insured Fund, Inc. $123,943
5. Capital Loss Carryforward:
MuniYield California Fund, Inc.
On October 31, 2004, the Fund had a net capital loss carryforward of
$6,759,497, of which $6,405,651 expires in 2008 and $353,846 expires in
2011. This amount will be available to offset like amounts of any future
taxable gains.
MuniYield California Insured Fund, Inc.
On October 31, 2004, the Fund had a net capital loss carryforward of
$15,358,482, of which $2,049,122 expires in 2007, $5,722,655 expires in
2008, $9,668 expires in 2009, $4,901,089 expires in 2011 and $2,675,948
expires in 2012. This amount will be available to offset like amounts of
any future taxable gains.
MuniYield Florida Fund
On October 31, 2004, the Fund had a net capital loss carryforward of
$10,460,026, of which $1,948,898 expires in 2007, $7,036,191 expires in
2008 and $1,474,937 expires in 2012. This amount will be available to
offset like amounts of any future taxable gains.
MuniYield Michigan Insured Fund II, Inc.
On October 31, 2004, the Fund had a net capital loss carryforward of
$6,678,866, of which $4,339,762 expires in 2008, $1,050,253 expires in 2010
and $1,288,851 expires in 2012. This amount will be available to offset
like amounts of any future taxable gains.
MuniYield New York Insured Fund, Inc.
On October 31, 2004, the Fund had a net capital loss carryforward of
$28,156,850, of which $8,566,493 expires in 2008, $3,007,157 expires in
2010 and $16,583,200 expires in 2012. This amount will be available to
offset like amounts of any future taxable gains.
6. Subsequent Event:
The Funds paid a tax-exempt income dividend to holders of Common
Stock/Shares on May 27, 2005 to stock/shareholders of record on May 13,
2005. The amount of the tax-exempt dividend was as follows:
Per Share
Fund Amount
MuniYield Arizona Fund, Inc. $.077000
MuniYield California Fund, Inc. $.068000
MuniYield California Insured Fund, Inc. $.073000
MuniYield Florida Fund $.077000
MuniYield Michigan Insured Fund II, Inc. $.075000
MuniYield New York Insured Fund, Inc. $.070000
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Proxy Results MuniYield Arizona Fund, Inc.
During the six-month period ended April 30, 2005, MuniYield Arizona Fund,
Inc.'s Common Stock shareholders voted on the following proposals. Proposal
1 was approved at a shareholders' meeting on April 28, 2005. With respect
to Proposals 2 and 3, the proposals were adjourned until May 27, 2005, at
which time they passed. A description of the proposals and number of shares
voted were as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Directors: Robert C. Doll, Jr. 2,494,713 88,137
James H. Bodurtha 2,495,021 87,829
Joe Grills 2,490,101 92,749
Roberta Cooper Ramo 2,497,121 85,729
Stephen B. Swensrud 2,489,093 93,757
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 2,396,741 177,882 120,772
3. To approve an amendment to articles supplementary or certificate
of designation. 2,332,526 237,540 125,329
During the six-month period ended April 30, 2005, MuniYield Arizona Fund,
Inc.'s Preferred Stock shareholders (Series A - B) voted on the following
proposals. Proposal 1 was approved at a shareholders' meeting on April 28,
2005. With respect to Proposals 2 and 3, the proposals were adjourned until
May 27, 2005, at which time they passed. A description of the proposals and
number of shares voted were as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Directors: Robert C. Doll, Jr., James H. Bodurtha,
Joe Grills, Herbert I. London, Roberta Cooper Ramo, Robert S. Salomon, Jr.
and Stephen B. Swensrud 1,031 16
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 1,177 31 --
3. To approve an amendment to articles supplementary or certificate
of designation. 1,043 165 --
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Proxy Results MuniYield California Fund, Inc.
During the six-month period ended April 30, 2005, MuniYield California
Fund, Inc.'s Common Stock shareholders voted on the following proposals.
Proposal 1 was approved at a shareholders' meeting on April 28, 2005. With
respect to Proposal 2, the Proposal was adjourned until May 27, 2005, at
which time it passed. Proposal 3 was adjourned until June 27, 2005. A
description of the proposals and number of shares voted were as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Directors: Robert C. Doll, Jr. 10,692,824 230,836
James H. Bodurtha 10,693,833 229,827
Joe Grills 10,681,309 242,351
Roberta Cooper Ramo 10,692,740 230,920
Stephen B. Swensrud 10,679,841 243,819
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 9,644,204 433,873 513,768
3. To approve an amendment to articles supplementary or certificate
of designation. Adjourned Adjourned Adjourned
During the six-month period ended April 30, 2005, MuniYield California
Fund, Inc.'s Preferred Stock shareholders (Series A - F) voted on the
following proposals. Proposal 1 was approved at a shareholders' meeting on
April 28, 2005. With respect to Proposal 2, the proposal was adjourned
until May 27, 2005, at which time it passed. Proposal 3 was adjourned until
June 27, 2005. A description of the proposals and number of shares voted
were as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Directors: Robert C. Doll, Jr., James H. Bodurtha,
Joe Grills, Herbert I. London, Roberta Cooper Ramo, Robert S. Salomon, Jr.
and Stephen B. Swensrud 4,509 17
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 5,377 136 56
3. To approve an amendment to articles supplementary or certificate
of designation. Adjourned Adjourned Adjourned
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Proxy Results MuniYield California Insured Fund, Inc.
During the six-month period ended April 30, 2005, MuniYield California
Insured Fund, Inc.'s Common Stock shareholders voted on the following
proposals. Proposal 1 was approved at a shareholders' meeting on April 28,
2005. With respect to Proposal 2, the proposal was adjourned until May 27,
2005, at which time it passed. Proposal 3 was adjourned until June 27,
2005. A description of the proposals and number of shares voted were as
follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Directors: Robert C. Doll, Jr. 18,713,214 373,318
James H. Bodurtha 18,709,448 377,084
Joe Grills 18,677,732 408,800
Roberta Cooper Ramo 18,711,933 374,599
Stephen B. Swensrud 18,670,712 415,820
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 13,905,411 606,342 624,350
3. To approve an amendment to articles supplementary or certificate
of designation. Adjourned Adjourned Adjourned
During the six-month period ended April 30, 2005, MuniYield California
Insured Fund, Inc.'s Preferred Stock shareholders (Series A - E) voted on
the following proposals. Proposal 1 was approved at a shareholders' meeting
on April 28, 2005. With respect to Proposal 2, the proposal was adjourned
until May 27, 2005, at which time it passed. Proposal 3 was adjourned until
June 27, 2005. A description of the proposals and number of shares voted
were as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Directors: Robert C. Doll, Jr., James H. Bodurtha,
Joe Grills, Herbert I. London, Roberta Cooper Ramo, Robert S. Salomon, Jr.
and Stephen B. Swensrud 6,956 37
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 8,287 829 67
3. To approve an amendment to articles supplementary or certificate
of designation. Adjourned Adjourned Adjourned
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Proxy Results MuniYield Florida Fund
During the six-month period ended April 30, 2005, MuniYield Florida Fund's
Common Shareholders voted on the following proposals. Proposals 1 and 2
were approved at a shareholders' meeting on April 28, 2005. With respect to
Proposal 3, the proposal was adjourned until May 27, 2005, at which time it
passed. A description of the proposals and number of shares voted were as
follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Trustees: Robert C. Doll, Jr. 7,886,370 155,994
James H. Bodurtha 7,886,320 156,044
Joe Grills 7,884,570 157,794
Roberta Cooper Ramo 7,888,445 153,919
Stephen B. Swensrud 7,885,879 156,485
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental
investment restrictions. 6,128,774 200,719 223,967
3. To approve an amendment to articles supplementary
or certificate of designation. 6,631,414 534,725 231,258
During the six-month period ended April 30, 2005, MuniYield Florida Fund's
Preferred Shareholders (Series A - B) voted on the following proposals.
Proposals 1 and 2 were approved at a shareholders' meeting on April 28,
2005. With respect to Proposal 3, the proposal was adjourned until May 27,
2005, at which time it passed. A description of the proposals and number of
shares voted were as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Trustees: Robert C. Doll, Jr., James H. Bodurtha,
Joe Grills, Herbert I. London, Roberta Cooper Ramo, Robert S. Salomon, Jr.
and Stephen B. Swensrud 3,759 39
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental
investment restrictions. 3,628 29 141
3. To approve an amendment to articles supplementary
or certificate of designation. 3,337 327 134
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Proxy Results MuniYield Michigan Insured Fund II, Inc.
During the six-month period ended April 30, 2005, MuniYield Michigan
Insured Fund II, Inc.'s Common Stock shareholders voted on the following
proposals. Proposal 1 was approved at a shareholders' meeting on April 28,
2005. With respect to Proposals 2 and 3, the proposals were adjourned until
May 27, 2005, at which time they passed. A description of the proposals and
number of shares voted were as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Directors: Robert C. Doll, Jr. 7,042,457 189,007
James H. Bodurtha 7,041,217 190,247
Joe Grills 7,033,691 197,773
Roberta Cooper Ramo 7,041,517 189,947
Stephen B. Swensrud 7,038,691 192,773
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 5,927,225 523,001 274,337
3. To approve an amendment to articles supplementary or certificate
of designation. 5,826,955 614,612 282,996
During the six-month period ended April 30, 2005, MuniYield Michigan
Insured Fund II, Inc.'s Preferred Stock shareholders (Series A - B) voted
on the following proposals. Proposal 1 was approved at a shareholders'
meeting on April 28, 2005. With respect to Proposals 2 and 3, the proposals
were adjourned until May 27, 2005, at which time they passed. A description
of the proposals and number of shares voted were as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Directors: Robert C. Doll, Jr., James H. Bodurtha,
Joe Grills, Herbert I. London, Roberta Cooper Ramo, Robert S. Salomon, Jr.
and Stephen B. Swensrud 2,340 53
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 3,223 221 99
3. To approve an amendment to articles supplementary or certificate
of designation. 3,152 223 168
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Proxy Results MuniYield New York Insured Fund, Inc.
During the six-month period ended April 30, 2005, MuniYield New York
Insured Fund, Inc.'s Common Stock shareholders voted on the following
proposals. Proposal 1 was approved at a shareholders' meeting on April 28,
2005. With respect to Proposal 2, the proposal was adjourned until May 27,
2005, at which time it passed. Proposal 3 was adjourned until June 27,
2005. A description of the proposals and number of shares voted were as
follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Directors: Robert C. Doll, Jr. 19,294,078 1,212,047
James H. Bodurtha 19,315,754 1,190,371
Joe Grills 19,304,008 1,202,117
Roberta Cooper Ramo 19,319,779 1,186,346
Stephen B. Swensrud 19,305,300 1,200,825
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 17,512,485 1,241,350 689,173
3. To approve an amendment to articles supplementary or certificate
of designation. Adjourned Adjourned Adjourned
During the six-month period ended April 30, 2005, MuniYield New York
Insured Fund, Inc.'s Preferred Stock shareholders (Series A - E) voted on
the following proposals. Proposal 1 was approved at a shareholders' meeting
on April 28, 2005. With respect to Proposal 2, the proposal was adjourned
until May 27, 2005, at which time it passed. Proposal 3 was adjourned until
June 27, 2005. A description of the proposals and number of shares voted
were as follows:
Shares Voted Shares Withheld
For From Voting
1.To elect the Fund's Board of Directors: James H. Bodurtha, Joe Grills,
Herbert I. London, Andre F. Perold, Roberta Cooper Ramo, Robert S.
Salomon, Jr. and Stephen B. Swensrud 7,301 72
Shares Voted Shares Voted Shares Voted
For Against Abstain
2. To approve an amendment to fundamental investment restrictions. 9,793 509 46
3. To approve an amendment to articles supplementary or certificate
of designation. Adjourned Adjourned Adjourned
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Officers and Directors/Trustees
Robert C. Doll, Jr., President and Director/Trustee
James H. Bodurtha, Director/Trustee
Joe Grills, Director/Trustee
Herbert I. London, Director/Trustee
Roberta Cooper Ramo, Director/Trustee
Robert S. Salomon, Jr., Director/Trustee
Stephen B. Swensrud, Director/Trustee
Kenneth A. Jacob, Senior Vice President
John M. Loffredo, Senior Vice President
Timothy T. Browse, Vice President
Michael A. Kalinoski, Vice President
Walter C. O'Connor, Vice President
Robert D. Sneeden, Vice President
Fred K. Stuebe, Vice President
Donald C. Burke, Vice President and Treasurer
Jeffrey Hiller, Chief Compliance Officer
Alice A. Pellegrino, Secretary
MuniYield Arizona Fund, Inc.,
MuniYield California Fund, Inc.,
MuniYield Florida Fund,
MuniYield Michigan Insured Fund II, Inc. and
MuniYield New York Insured Fund, Inc.:
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agents
Common Stock/Shares: Preferred Stock/Shares:
The Bank of New York The Bank of New York
101 Barclay Street - 11 East 101 Barclay Street - 7 West
New York, NY 10286 New York, NY 10286
MuniYield California Insured Fund, Inc.:
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agents
Common Stock: Preferred Stock:
EquiServe The Bank of New York
P.O. Box 43010 101 Barclay Street - 7 West
Providence, RI 02940-3010 New York, NY 10286
Effective January 1, 2005, Terry K. Glenn retired as President and
Director/ Trustee of MuniYield Arizona Fund, Inc., MuniYield California
Fund, Inc., MuniYield Florida Fund, MuniYield California Insured Fund,
Inc., MuniYield Michigan Insured Fund II, Inc. and MuniYield New York
Insured Fund, Inc. The Funds' Board of Directors/Trustees wishes Mr. Glenn
well in his retirement.
Effective January 1, 2005, Robert C. Doll, Jr. became President and Director/
Trustee of the Funds.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Investment Objectives
AMEX Symbol MuniYield Arizona Fund, Inc. seeks to provide shareholders with
MZA as high a level of current income exempt from federal and Arizona
income taxes as is consistent with its investment policies and
prudent investment management by investing primarily in a
portfolio of long-term, investment grade municipal obligations
the interest on which, in the opinion of bond counsel to the
issuer, is exempt from federal and Arizona income taxes.
NYSE Symbol MuniYield California Fund, Inc. seeks to provide shareholders
MYC with as high a level of current income exempt from federal and
California 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 and California income taxes.
NYSE Symbol MuniYield California Insured Fund, Inc. seeks to provide
MCA shareholders with as high a level of current income exempt from
federal and California income taxes as is consistent with its
investment policies and prudent investment management by
investing primarily in a portfolio of long-term, investment
grade municipal obligations the interest on which, in the
opinion of bond counsel to the issuer, is exempt from federal
and California income taxes.
NYSE Symbol MuniYield Florida Fund seeks to provide shareholders with as high
MYF a level of current income exempt from federal income taxes as is
consistent with its investment policies and prudent investment
management by investing primarily in a portfolio of long-term
municipal obligations the interest on which, in the opinion of
bond counsel to the issuer, is exempt from federal income taxes
and which enables shares of the Fund to be exempt from Florida
intangible personal property taxes.
NYSE Symbol MuniYield Michigan Insured Fund II, Inc. seeks to provide
MYM shareholders with as high a level of current income exempt from
federal and Michigan 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 and Michigan income taxes.
NYSE Symbol MuniYield New York Insured Fund, Inc. seeks to provide
MYN 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.
Dividend Policy
The Funds' dividend policy is to distribute all or a portion of their net
investment income to their shareholders on a monthly basis. In order to
provide shareholders with a more stable level of dividend distributions,
the Funds 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 Funds for any particular month may be more or less than the amount of net
investment income earned by the Funds during such month. The Funds' 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 these reports.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Availability of Quarterly Schedule of Investments
The Funds file their complete schedules of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third quarters
of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the
SEC's Web site at http://www.sec.gov. The Funds' Forms N-Q may also be
reviewed and copied at the SEC's Public Reference Room in Washington, DC.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
Electronic Delivery
The Funds offer electronic delivery of communications to their
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 Web site at 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.
SEMI-ANNUAL REPORTS, APRIL 30, 2005
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 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable to this semi-annual report
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - Not
Applicable
Item 11 - Controls and Procedures
11(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.
11(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 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
MuniYield California Insured Fund, Inc.
By: /s/ Robert C. Doll, Jr.
-------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
MuniYield California Insured Fund, Inc.
Date: June 20, 2005
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/ Robert C. Doll, Jr.
-------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
MuniYield California Insured Fund, Inc.
Date: June 20, 2005
By: /s/ Donald C. Burke
-------------------------------
Donald C. Burke,
Chief Financial Officer of
MuniYield California Insured Fund, Inc.
Date: June 20, 2005