UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-07080
Name of Fund: BlackRock MuniYield Michigan Insured Fund, Inc. (MIY)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive
Officer, BlackRock MuniYield Michigan 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: (800) 882-0052, Option 4
Date of fiscal year end: 10/31/2007
Date of reporting period: 11/01/2006 - 10/31/2007
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES
BLACKROCK SOLUTIONS
Annual Report
OCTOBER 31, 2007
BlackRock MuniYield Florida Insured Fund (MFT)
BlackRock MuniYield Michigan Insured Fund, Inc. (MIY)
BlackRock MuniYield New Jersey Insured Fund, Inc. (MJI)
BlackRock MuniYield Pennsylvania Insured Fund (MPA)
(BLACKROCK logo)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
These reports, including the financial information herein, are transmitted to
shareholders of BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield
Michigan Insured Fund, Inc., BlackRock MuniYield New Jersey Insured Fund, Inc.
and BlackRock MuniYield Pennsylvania Insured Fund 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 Stock or Shares and intend to remain leveraged by
issuing Preferred Stock or Shares to provide the Common Stock Shareholders or
Common Shareholders with potentially higher rates of return. Leverage creates
risks for Common Stock Shareholders or Common Shareholders, including the
likelihood of greater volatility of net asset value and market price of the
Common Stock or Shares, and the risk that fluctuations in the short-term
dividend rates of the Preferred Stock or Shares may affect the yield to Common
Stock Shareholders or Common 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 1-800-441-7762; (2) at
www.blackrock.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.blackrock.com; and (2)
on the Securities and Exchange Commission's Web site at http://www.sec.gov.
BlackRock MuniYield Florida Insured Fund
BlackRock MuniYield Michigan Insured Fund, Inc.
BlackRock MuniYield New Jersey Insured Fund, Inc.
BlackRock MuniYield Pennsylvania Insured Fund
P.O. Box 9011
Princeton, NJ 08543-9011
(GO PAPERLESS... logo)
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Table of Contents
Page
A Letter to Shareholders 3
Annual Report:
Fund Summaries 4
Financial Statements:
Schedules of Investments 8
Statements of Net Assets 21
Statements of Operations 22
Statements of Changes in Net Assets 23
Financial Highlights 25
Notes to Financial Statements 29
Report of Independent Registered Public Accounting Firm 35
Important Tax Information 36
The Benefits and Risks of Leveraging 37
Swap Agreements 37
Automatic Dividend Reinvestment Plan 38
Officers and Directors or Trustees 39
Additional Information 42
ANNUAL REPORT OCTOBER 31, 2007
A Letter to Shareholders
Dear Shareholder
The October reporting period was fairly tumultuous for financial markets, but
culminated in positive performance for most major benchmarks:
Total Returns as of October 31, 2007 6-month 12-month
U.S. equities (S&P 500 Index) +5.49% +14.56%
Small cap U.S. equities (Russell 2000 Index) +2.25% + 9.27%
International equities (MSCI Europe, Australasia, Far East Index) +8.19% +24.91%
Fixed income (Lehman Brothers U.S. Aggregate Bond Index) +2.68% + 5.38%
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +1.30% + 2.91%
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) -0.07% + 6.89%
Past performance is no guarantee of future results. Index performance shown
for illustrative purposes only. You cannot invest directly in an index.
Subprime mortgage woes dominated headlines for much of 2007, but intensified
in the summer and fall, spawning a widespread liquidity and credit crisis with
ramifications across global markets. The Federal Reserve Board (the "Fed") and
other countries' central banks stepped in to inject liquidity into the markets
and bolster investor confidence. The Fed cut the federal funds rate by 0.50%
in September and another 0.25% on the final day of the reporting period,
bringing its target rate to 4.50%. In taking action, the central bankers, who
had long deemed themselves inflation fighters, were seeking to stem the
fallout from the credit crunch and forestall a wider economic unraveling. By
period-end, the Fed had cited the risks between slower economic growth and
faster inflation as equally balanced.
Amid the volatility throughout the past year, equity markets have displayed
surprising resilience. Most recently, the credit turmoil dampened corporate
merger-and-acquisition (M&A) activity, a key source of strength for equity
markets. Still, market fundamentals have held firm, dividend payouts and share
buybacks have continued to grow, and valuations remain attractive. These
tailwinds generally have prevailed over the headwinds created by the slowing
U.S. economy, troubled housing market and, recently, a more difficult
corporate earnings backdrop. International markets fared even better than U.S.
equities, benefiting from robust M&A activity and generally stronger economies.
In fixed income markets, mixed economic signals and the credit woes resulted
in a flight to quality. At the height of the uncertainty, investors shunned
bonds associated with the housing and credit markets in favor of higher-
quality Treasury issues. The yield on 10-year Treasury issues, which touched
5.30% in June (its highest level in five years), fell to 4.48% by period-end,
while prices correspondingly rose. The tax-exempt bond market has been
challenged by a combination of record-setting supply year-to-date, economic
uncertainty and concerns around the credit worthiness of bond insurers. This
has brought municipal bond prices to relatively attractive levels and, as
such, demand generally has remained firm.
As you navigate market volatility, we encourage you to review your investment
goals with your financial professional and to make portfolio changes, as
needed. For more market insight and commentary from BlackRock investment
professionals, we invite you to visit www.blackrock.com/funds. As always, we
thank you for entrusting BlackRock with your investment assets, and we look
forward to continuing to serve you in the months and years ahead.
Sincerely,
/s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.
Vice Chairman, BlackRock, Inc.
/s/ Peter J. Hayes
------------------
Peter J. Hayes
Managing Director, BlackRock, Inc.
THIS PAGE NOT PART OF YOUR FUND REPORT
Fund Summary as of October 31, 2007 BlackRock MuniYield Florida Insured Fund
Investment Objective
BlackRock MuniYield Florida Insured Fund (MFT) seeks to provide shareholders
with as high a level of current income exempt from federal income taxes as is
consistent with its investment policies and prudent investment management by
investing primarily in a portfolio of long-term, investment grade municipal
obligations the interest on which, in the opinion of bond counsel to the
issuer, is exempt from federal income taxes and which enables shares of the
Fund to be exempt from Florida intangible personal property taxes.
Fund Information
Symbol on New York Stock Exchange MFT
Initial Offering Date October 30, 1992
Yield on Closing Market Price as of October 31, 2007 ($12.74)* 5.27%
Tax Equivalent Yield** 8.11%
Current Monthly Distribution per Common Share*** $.056
Current Annualized Distribution per Common Share*** $.672
Leverage as of October 31, 2007**** 37.20%
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change. A portion of
the distribution may be deemed a tax return of capital or net realized
gain at fiscal year end.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred
Shares that may be outstanding) minus the sum of accrued liabilities
(other than debt representing financial leverage).
The table below summarizes the changes in the Fund's market price and net
asset value per share:
10/31/07 10/31/06 Change High Low
Market Price $12.74 $14.21 (10.34%) $14.42 $12.55
Net Asset Value $14.38 $14.91 (3.55%) $15.05 $13.88
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
10/31/07 10/31/06
Lease Revenue 18% 17%
Transportation 18 17
Hospital 13 11
Water & Sewer 13 18
Education 11 12
City, County & State 9 10
Housing 6 1
Tax Revenue 6 8
Power 5 5
Industrial & Pollution Control 1 1
Credit Quality Allocations*
Credit Rating 10/31/07 10/31/06
AAA/Aaa 91% 92%
AA/Aa 2 1
A/A 5 5
BBB/Baa 2 2
* Using the higher of S&P's or Moody's ratings.
ANNUAL REPORT OCTOBER 31, 2007
Fund Summary as of October 31, 2007
BlackRock MuniYield Michigan Insured Fund, Inc.
Investment Objective
BlackRock MuniYield Michigan Insured Fund, Inc. (MIY) seeks to provide
shareholders with as high a level of current income exempt from federal income
tax 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 income tax and Michigan income
taxes.
Fund Information
Symbol on New York Stock Exchange MIY
Initial Offering Date October 30, 1992
Yield on Closing Market Price as of October 31, 2007 ($13.40)* 5.28%
Tax Equivalent Yield** 8.12%
Current Monthly Distribution per share of Common Stock*** $.059
Current Annualized Distribution per share of Common Stock*** $.708
Leverage as of October 31, 2007**** 37.63%
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change. A portion of
the distribution may be deemed a tax return of capital or net realized
gain at fiscal year end.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred
Stock that may be outstanding) minus the sum of accrued liabilities
(other than debt representing financial leverage).
The table below summarizes the changes in the Fund's market price and net
asset value per share:
10/31/07 10/31/06 Change High Low
Market Price $13.40 $14.67 (8.66%) $14.81 $12.83
Net Asset Value $15.03 $15.45 (2.72%) $15.62 $14.57
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
10/31/07 10/31/06
Hospital 22% 21%
City, County & State 19 21
Industrial & Pollution Control 13 14
Transportation 12 10
Education 10 10
Water & Sewer 8 8
Resource Recovery 7 3
Lease Revenue 4 11
Housing 2 1
Tax Revenue 2 0
Power 1 1
Credit Quality Allocations*
Credit Rating 10/31/07 10/31/06
AAA/Aaa 86% 86%
AA/Aa 3 3
A/A 9 8
BBB/Baa 2 3
* Using the higher of S&P's or Moody's ratings.
ANNUAL REPORT OCTOBER 31, 2007
Fund Summary as of October 31, 2007
BlackRock MuniYield New Jersey Insured Fund, Inc.
Investment Objective
BlackRock MuniYield New Jersey Insured Fund, Inc. (MJI) seeks to provide
shareholders with as high a level of current income exempt from federal income
tax and New Jersey personal income taxes as is consistent with its investment
policies and prudent investment management by investing primarily in a
portfolio of long-term municipal obligations the interest on which, in the
opinion of bond counsel to the issuer, is exempt from federal income tax and
New Jersey personal income taxes.
Fund Information
Symbol on New York Stock Exchange MJI
Initial Offering Date October 30, 1992
Yield on Closing Market Price as of October 31, 2007 ($13.70)* 4.73%
Tax Equivalent Yield** 7.28%
Current Monthly Distribution per share of Common Stock*** $.054
Current Annualized Distribution per share of Common Stock*** $.648
Leverage as of October 31, 2007**** 35.74%
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change. A portion of
the distribution may be deemed a tax return of capital or net realized
gain at fiscal year end.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred
Stock that may be outstanding) minus the sum of accrued liabilities
(other than debt representing financial leverage).
The table below summarizes the changes in the Fund's market price and net
asset value per share:
10/31/07 10/31/06 Change High Low
Market Price $13.70 $14.96 (8.42%) $15.06 $12.84
Net Asset Value $15.02 $15.42 (2.59%) $15.59 $14.42
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
10/31/07 10/31/06
Transportation 19% 22%
City, County & State 18 19
Education 18 17
Lease Revenue 10 12
Water & Sewer 9 6
Industrial & Pollution Control 8 8
Hospital 6 8
Housing 5 4
Tax Revenue 5 2
Power 1 1
Tobacco 1 1
Credit Quality Allocations*
Credit Rating 10/31/07 10/31/06
AAA/Aaa 87% 85%
AA/Aa 2 3
A/A 6 4
BBB/Baa 4 8
BB/Baa 1 --
* Using the higher of S&P's or Moody's ratings.
ANNUAL REPORT OCTOBER 31, 2007
Fund Summary as of October 31, 2007
BlackRock MuniYield Pennsylvania Insured Fund
Investment Objective
BlackRock MuniYield Pennsylvania Insured Fund (MPA) seeks to provide
shareholders with as high a level of current income exempt from federal and
Pennsylvania 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 Pennsylvania income taxes.
Fund Information
Symbol on New York Stock Exchange MPA
Initial Offering Date October 30, 1992
Yield on Closing Market Price as of October 31, 2007 ($13.67)* 4.92%
Tax Equivalent Yield** 7.57%
Current Monthly Distribution per Common Share*** $.056
Current Annualized Distribution per Common Share*** $.672
Leverage as of October 31, 2007**** 36.46%
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change. A portion of
the distribution may be deemed a tax return of capital or net realized
gain at fiscal year end.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred
Shares that may be outstanding) minus the sum of accrued liabilities
(other than debt representing financial leverage).
The table below summarizes the changes in the Fund's market price and net
asset value per share:
10/31/07 10/31/06 Change High Low
Market Price $13.67 $14.60 (6.37%) $15.27 $13.25
Net Asset Value $15.49 $15.89 (2.52%) $16.12 $14.85
The following charts show the portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
10/31/07 10/31/06
City, County & State 24% 17%
Education 20 19
Transportation 14 15
Water & Sewer 10 13
Housing 7 6
Hospital 7 9
Lease Revenue 6 13
Power 6 3
Industrial & Pollution Control 5 5
Sales Tax 1 0
Credit Quality Allocations*
Credit Rating 10/31/07 10/31/06
AAA/Aaa 81% 80%
AA/Aa 4 4
A/A 3 3
BBB/Baa 7 8
NR 2 3
Other** 3 2
* Using the higher of S&P's or Moody's ratings.
** Includes portfolio holdings in variable rate demand notes.
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments as of October 31, 2007
BlackRock MuniYield Florida Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
Arizona--1.0%
$ 1,250 Salt Verde Financial Corporation, Arizona, Senior
Gas Revenue Bonds, 5% due 12/01/2037 $ 1,196
District of Columbia--0.8%
1,000 Metropolitan Washington Airports Authority, D.C.,
Airport System Revenue Bonds, AMT, Series A,
5.25% due 10/01/2032 (c) 1,021
Florida--142.0%
1,300 Alachua County, Florida, School Board, COP, 5.25%
due 7/01/2029 (a) 1,353
1,430 Bay County, Florida, Sales Tax Revenue Bonds, 5%
due 9/01/2027 (a) 1,489
700 Boynton Beach, Florida, Utility System Revenue
Refunding Bonds, 6.25% due 11/01/2020 (b)(c) 820
2,000 Brevard County, Florida, Health Facilities Authority,
Healthcare Facilities Revenue Bonds (Health First
Inc. Project), 5% due 4/01/2036 1,982
1,720 Broward County, Florida, Educational Facilities
Authority Revenue Bonds (Nova Southeastern
University), 5% due 4/01/2031 (e) 1,769
1,100 Broward County, Florida, HFA, S/F Mortgage
Revenue Refunding Bonds, AMT, Series E, 5.90%
due 10/01/2039 (m)(n) 1,167
1,300 Collier County, Florida, School Board, COP, 5%
due 2/15/2027 (f) 1,346
1,000 Daytona Beach, Florida, Utility System Revenue
Refunding Bonds, Series B, 5% due 11/15/2027 (c) 1,027
1,000 Deltona, Florida, Transportation Capital Improvement
Revenue Bonds, 5.125% due 10/01/2026 (h) 1,051
1,000 Emerald Coast, Florida, Utilities Authority, System
Revenue Bonds, 5.25% due 1/01/2036 (c) 1,048
1,000 Flagler County, Florida, Capital Improvement
Revenue Bonds, 5% due 10/01/2035 (h) 1,027
1,035 Florida HFA, Housing Revenue Bonds (Brittany
Rosemont Apartments), AMT, Series C-1, 6.75%
due 8/01/2014 (a) 1,036
Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Bonds, AMT:
1,200 Series 3, 5.15% due 7/01/2038 (m)(n) 1,198
1,540 Series 11, 5.95% due 1/01/2032 (f) 1,568
Face
Amount Municipal Bonds Value
Florida (continued)
$ 335 Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Refunding Bonds, AMT, Series 4,
6.25% due 7/01/2022 (f) $ 348
1,000 Florida State Board of Education, Capital Outlay, GO,
Public Education, Series B, 5% due 6/01/2031 (c) 1,025
6,190 Florida State Board of Education, Lottery Revenue
Bonds, Series A, 6% due 7/01/2010 (c)(i) 6,647
1,150 Florida State Department of Transportation, GO, 5%
due 7/01/2025 (h) 1,194
1,000 Florida State Governmental Utility Authority, Utility
Revenue Bonds (Lehigh Utility System), 5.125%
due 10/01/2033 (a) 1,028
1,860 Florida State Turnpike Authority, Turnpike Revenue
Bonds (Department of Transportation), Series B, 5%
due 7/01/2030 1,888
1,250 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series C, 5.25% due 11/15/2036 1,275
1,340 Hillsborough County, Florida, HFA, S/F Mortgage
Revenue Bonds, AMT, Series 1, 5.375%
due 10/01/2049 (m)(n) 1,420
2,000 Hillsborough County, Florida, IDA, Hospital Revenue
Bonds (H. Lee Moffitt Cancer Center Project),
Series A, 5.25% due 7/01/2037 2,016
Hillsborough County, Florida, School Board, COP (h):
6,000 5.375% due 7/01/2009 (i) 6,186
1,000 5% due 7/01/2029 1,020
Jacksonville, Florida, Economic Development
Commission, Health Care Facilities Revenue Bonds
(Mayo Clinic-Jacksonville) (h):
1,000 Series A, 5.50% due 11/15/2036 1,062
750 Series B, 5.50% due 11/15/2036 796
1,140 Jacksonville, Florida, Economic Development
Commission, IDR (Metropolitan Parking Solutions
Project), AMT, 5.50% due 10/01/2030 (l) 1,152
1,455 Jacksonville, Florida, Guaranteed Entitlement
Revenue Refunding and Improvement Bonds, 5.25%
due 10/01/2032 (c) 1,530
1,000 Jacksonville, Florida, HFA, Homeowner Mortgage
Revenue Refunding Bonds, AMT, Series A-1, 5.625%
due 10/01/2039 (m)(n) 1,037
2,875 Jacksonville, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Baptist Medical Center
Project), 5% due 8/15/2037 (f) 2,931
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedules of
Investments, we have abbreviated the names and descriptions of many of the
securities according to the list below and at right.
AMT Alternative Minimum Tax (subject to)
CABS Capital Appreciation Bonds
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
EDR Economic Development Revenue Bonds
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
S/F Single-Family
VRDN Variable Rate Demand Notes
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield Florida Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
Florida (continued)
$ 1,225 Jacksonville, Florida, Port Authority, Seaport Revenue
Bonds, AMT, 5.625% due 11/01/2026 (h) $ 1,274
2,280 Jacksonville, Florida, Sales Tax Revenue Bonds, 5%
due 10/01/2027 (h) 2,359
2,000 Lakeland, Florida, Electric and Water Revenue
Refunding Bonds, Series A, 5% due 10/01/2028 (h) 2,038
1,000 Lee County, Florida, Airport Revenue Bonds, AMT,
Series A, 6% due 10/01/2029 (f) 1,060
2,285 Lee County, Florida, Capital Revenue Bonds, 5.25%
due 10/01/2023 (a) 2,442
1,800 Lee County, Florida, HFA, S/F Mortgage Revenue
Bonds (Multi-County Program), AMT, Series A-2, 6%
due 9/01/2040 (m)(n) 1,956
2,000 Lee Memorial Health System, Florida, Hospital
Revenue Bonds, Series A, 5% due 4/01/2032 (a) 2,047
1,000 Leesburg, Florida, Capital Improvement Revenue
Bonds, 5.25% due 10/01/2034 (c) 1,045
1,000 Manatee County, Florida, HFA, Homeowner Revenue
Bonds, AMT, Series A, 5.90% due 9/01/2040 (m)(n) 1,062
1,000 Marco Island, Florida, Utility System Revenue
Bonds, 5% due 10/01/2033 (h) 1,024
1,000 Martin County, Florida, Utilities System Revenue
Bonds, 5.125% due 10/01/2033 (a) 1,028
2,000 Miami Beach, Florida, Water and Sewer Revenue
Bonds, 5.75% due 9/01/2025 (a) 2,115
Miami-Dade County, Florida, Aviation Revenue
Bonds, AMT, Series A:
6,300 5% due 10/01/2033 (f) 6,319
5,000 (Miami International Airport) 6%
due 10/01/2024 (c) 5,303
1,000 Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport), AMT,
Series A, 5% due 10/01/2040 (o) 1,001
2,000 Miami-Dade County, Florida, Educational Facilities
Authority Revenue Bonds (University of Miami),
Series A, 5.75% due 4/01/2010 (a)(i) 2,125
Miami-Dade County, Florida, Expressway Authority,
Toll System Revenue Bonds, Series B (c):
1,000 5.25% due 7/01/2027 1,049
3,875 5% due 7/01/2033 3,970
1,200 Miami-Dade County, Florida, HFA, Home Ownership
Mortgage Revenue Bonds, AMT, Series A, 5.55%
due 10/01/2049 (m)(n) 1,269
1,655 Miami-Dade County, Florida, IDA, IDR (BAC
Funding Corporation Project), Series A, 5.375%
due 10/01/2030 (a) 1,745
2,000 Miami-Dade County, Florida, School Board, COP,
Series A, 5.50% due 10/01/2009 (f)(i) 2,076
1,865 Miami-Dade County, Florida, Solid Waste System
Revenue Bonds, 5.25% due 10/01/2030 (h) 1,962
Miami-Dade County, Florida, Subordinate Special
Obligation Revenue Bonds, Series A (h)(p):
4,375 5.186% due 10/01/2031 1,292
5,735 5.203% due 10/01/2033 1,520
Face
Amount Municipal Bonds Value
Florida (continued)
$ 4,765 Orange County, Florida, Educational Facilities
Authority, Educational Facilities Revenue
Refunding Bonds (Rollins College Project), 5.50%
due 12/01/2032 (a) $ 5,111
1,835 Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Orlando Regional
Healthcare), 6% due 12/01/2012 (i) 2,036
1,000 Orange County, Florida, Sales Tax Revenue Refunding
Bonds, Series A, 5.125% due 1/01/2023 (c) 1,049
Orange County, Florida, School Board, COP, Series A:
6,500 5.25% due 8/01/2009 (h)(i) 6,759
1,000 5% due 8/01/2032 (c) 1,028
2,190 Orange County, Florida, Tourist Development, Tax
Revenue Refunding Bonds, 5% due 10/01/2029 (a) 2,261
Orlando and Orange County, Florida, Expressway
Authority Revenue Bonds, Series B (a):
4,000 5% due 7/01/2030 4,101
6,815 5% due 7/01/2035 6,973
1,100 Osceola County, Florida, Tourist Development
Tax Revenue Bonds, Series A, 5.50%
due 10/01/2027 (c) 1,169
1,500 Palm Beach County, Florida, Criminal Justice
Facilities Revenue Bonds, 7.20% due 6/01/2015 (c) 1,828
2,000 Palm Beach County, Florida, School Board, COP,
Refunding, Series D, 5.25% due 8/01/2021 (f) 2,111
Palm Beach County, Florida, School Board, COP,
Series A:
5,000 6% due 8/01/2010 (c)(i) 5,375
2,470 5% due 8/01/2029 (c) 2,528
1,300 5% due 8/01/2031 (f) 1,334
1,500 Panama City, Florida, Water and Sewer Revenue
Bonds, Series B, 5.25% due 10/01/2022 (h) 1,609
1,000 Pembroke Pines, Florida, Public Improvement
Revenue Bonds, Series A, 5% due 10/01/2034 (a) 1,026
1,000 Polk County, Florida, Utility System Revenue Bonds,
5.25% due 10/01/2022 (c) 1,066
1,055 Port St. Lucie, Florida, Utility Revenue Bonds,
5.25% due 9/01/2024 (h) 1,128
1,000 Saint Johns County, Florida, Ponte Vedra Utility
System Revenue Bonds, 5% due 10/01/2035 (f) 1,027
1,400 Saint Johns County, Florida, Sales Tax Revenue
Bonds, Series A, 5.25% due 10/01/2031 (a) 1,462
1,000 Saint Lucie, Florida, West Services District, Utility
Revenue Bonds, 5.25% due 10/01/2034 (h) 1,049
1,430 South Florida Water Management District, COP, 5%
due 10/01/2036 (a) 1,463
1,000 South Lake County, Florida, Hospital District
Revenue Bonds (South Lake Hospital Inc.), 5.80%
due 10/01/2034 1,024
University of Central Florida, COP, Series A (c):
2,280 (UCF) Athletics Association Inc., 5.25%
due 10/01/2034 2,369
2,820 (UCF Convocation Center), 5% due 10/01/2035 2,874
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (concluded)
BlackRock MuniYield Florida Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
Florida (concluded)
$ 1,500 University of North Florida, Capital Improvement
Revenue Bonds (Housing Project), 5%
due 11/01/2032 (c) $ 1,554
Village Center Community Development District,
Florida, Recreational Revenue Bonds, Series A (h):
1,640 5.375% due 11/01/2034 1,736
1,000 5.125% due 11/01/2036 1,034
Village Center Community Development District,
Florida, Utility Revenue Bonds (h):
2,585 5.25% due 10/01/2023 2,746
4,030 5.125% due 10/01/2028 4,171
Volusia County, Florida, IDA, Student Housing Revenue
Bonds (Stetson University Project), Series A (g):
1,000 5% due 6/01/2025 1,041
1,000 5% due 6/01/2035 1,028
New Jersey--1.7%
2,000 New Jersey EDA, Cigarette Tax Revenue Bonds,
5.50% due 6/15/2024 2,049
Puerto Rico--2.6%
1,000 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series TT, 5% due 7/01/2037 1,015
1,000 Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds, Series I, 5%
due 7/01/2036 (q) 1,007
1,145 Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series E, 5.70% due 2/01/2010 (i) 1,201
Total Municipal Bonds
(Cost--$174,778)--148.1% 180,076
Face
Amount Municipal Bonds Held in Trust (k) Value
Florida--14.3%
$ 3,300 Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport), AMT,
Series A, 5% due 10/01/2040 (o) $ 3,304
6,960 Miami-Dade County, Florida, Health Facilities
Authority, Hospital Revenue Refunding Bonds
(Miami Children's Hospital), Series A, 5.625%
due 8/15/2018 (a) 7,523
2,000 Santa Rosa County, Florida, School Board, COP,
Revenue Refunding Bonds, Series 2, 5.25%
due 2/01/2026 (c) 2,100
4,000 South Broward, Florida, Hospital District, Hospital
Revenue Bonds, 5.625% due 5/01/2032 (h) 4,370
Puerto Rico--6.2%
7,100 Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series A, 5.375% due 8/01/2011 (h)(i) 7,566
Total Municipal Bonds Held in Trust
(Cost--$24,109)--20.5% 24,863
Shares
Held Short-Term Securities
1,845 CMA Florida Municipal Money Fund, 2.81% (d)(j) 1,845
Total Short-Term Securities
(Cost--$1,845)--1.5% 1,845
Total Investments (Cost--$200,732*)--170.1% 206,784
Liabilities in Excess of Other Assets--(1.1%) (1,397)
Liability for Trust Certificates,
Including Interest Expense Payable--(9.7%) (11,793)
Preferred Shares, at Redemption Value--(59.3%) (72,020)
----------
Net Assets Applicable to Common Shares--100.0% $ 121,574
==========
* The cost and unrealized appreciation (depreciation) of investments
as of October 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 189,249
==============
Gross unrealized appreciation $ 6,257
Gross unrealized depreciation (402)
--------------
Net unrealized appreciation $ 5,855
==============
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) Represents the current yield as of October 31, 2007.
(e) Assured Guaranty Insured.
(f) FSA Insured.
(g) CIFG Insured.
(h) MBIA Insured.
(i) Prerefunded.
(j) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA Florida Municipal Money Fund (3,205) $96
(k) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction
in which the fund may have acquired the residual interest certificates.
These securities serve as collateral in a financing transaction. See
Note 1(c) to Financial Statements for details of municipal bonds
held in trust.
(l) ACA Insured.
(m) FHLMC Collateralized.
(n) FNMA/GNMA Collateralized.
(o) XL Capital Insured.
(p) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(q) Commonwealth Guaranteed.
o Forward interest rate swaps outstanding as of October 31, 2007
were as follows:
Notional Unrealized
Amount Depreciation
Pay a fixed rate of 4.019% and receive
a floating rate based on 1-week (SIFMA)
Municipal Swap Index Rate
Broker, JPMorgan Chase
Expires November 2022 $4,150 $ (67)
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments as of October 31, 2007
BlackRock MuniYield Michigan Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Michigan--138.7%
$ 3,600 Adrian, Michigan, City School District, GO, 5%
due 5/01/2014 (d)(e) $ 3,883
3,725 Bay City, Michigan, School District, School Building
and Site, GO, 5% due 5/01/2031 (d) 3,869
3,875 Bendle, Michigan, Public School District, School
Building and Site, GO, 5% due 5/01/2035 (c) 4,008
1,000 Birmingham, Michigan, City School District, School
Building and Site, GO, 5% due 11/01/2033 (d) 1,032
1,000 Central Montcalm, Michigan, Public Schools, GO,
5.90% due 5/01/2009 (b)(e) 1,036
1,500 Delta County, Michigan, Economic Development
Corporation, Environmental Improvement Revenue
Refunding Bonds (Mead Westvaco-Escanaba), AMT,
Series B, 6.45% due 4/15/2012 (e) 1,647
Detroit, Michigan, City School District, GO (School
Building and Site Improvement):
3,000 Refunding, Series A, 5% due 5/01/2021 (d) 3,147
2,300 Series A, 5.375% due 5/01/2013 (c)(e) 2,504
3,100 Series B, 5% due 5/01/2028 (c) 3,184
Detroit, Michigan, Water Supply System Revenue
Bonds:
1,025 DRIVERS, Series 200, 5.75%
due 7/01/2011 (c)(e)(i) 1,197
1,550 Second Lien, Series B, 5% due 7/01/2013 (b)(e) 1,660
2,420 Second Lien, Series B, 5% due 7/01/2034 (b) 2,470
1,250 Senior Lien, Series A, 5.875%
due 1/01/2010 (c)(e) 1,324
6,900 Senior Lien, Series A, 5% due 7/01/2034 (b) 7,043
11,790 Series B, 5.25% due 7/01/2013 (b)(e) 12,779
1,415 Detroit, Michigan, Water Supply System, Revenue
Refunding Bonds, 6.25% due 7/01/2012 (c)(h) 1,496
3,900 Dickinson County, Michigan, Economic Development
Corporation, Environmental Improvement Revenue
Refunding Bonds (International Paper Company
Project), Series A, 5.75% due 6/01/2016 4,070
3,100 Dickinson County, Michigan, Healthcare System,
Hospital Revenue Refunding Bonds, 5.80%
due 11/01/2024 (g) 3,171
East Grand Rapids, Michigan, Public School District,
GO (d):
1,610 5.75% due 5/01/2009 (e) 1,664
1,575 5% due 5/01/2031 1,636
Eastern Michigan University, General Revenue
Refunding Bonds (a):
590 6% due 6/01/2010 (e) 632
435 6% due 6/01/2020 463
Eastern Michigan University Revenue Bonds,
Series B (c)(e):
1,500 5.60% due 6/01/2010 1,579
1,310 5.625% due 6/01/2010 1,380
Face
Amount Municipal Bonds Value
Michigan (continued)
Eaton Rapids, Michigan, Public Schools, School
Building and Site, GO (d):
$ 2,425 5% due 5/01/2014 (e) $ 2,616
1,325 5.25% due 5/01/2020 1,419
1,675 5.25% due 5/01/2021 1,794
1,700 5% due 5/01/2026 1,762
1,175 5% due 5/01/2029 1,214
Flint, Michigan, Hospital Building Authority, Revenue
Refunding Bonds (Hurley Medical Center), Series A (g):
615 5.375% due 7/01/2020 622
1,375 6% due 7/01/2020 1,450
2,200 Fowlerville, Michigan, Community Schools, School
District, GO, 5% due 5/01/2030 (c) 2,271
1,000 Frankenmuth, Michigan, School District, GO, 5.75%
due 5/01/2010 (c)(e) 1,055
Gibraltar, Michigan, School District, GO (School
Building and Site) (c):
2,940 5% due 5/01/2014 (e) 3,171
710 5% due 5/01/2028 734
1,100 Grand Blanc, Michigan, Community Schools, GO,
5.625% due 5/01/2020 (c) 1,178
Grand Rapids, Michigan, Building Authority Revenue
Bonds, Series A (a):
1,035 5.50% due 10/01/2012 (e) 1,126
665 5.50% due 10/01/2019 717
900 5.50% due 10/01/2020 970
2,070 Grand Valley, Michigan, State University Revenue
Bonds, 5.50% due 2/01/2018 (c) 2,284
11,250 Greater Detroit Resource Recovery Authority,
Michigan, Revenue Refunding Bonds, Series A,
6.25% due 12/13/2008 (a) 11,589
5,625 Gull Lake, Michigan, Community School
District, School Building and Site, GO, 5%
due 5/01/2014 (d)(e) 6,067
Harper Woods, Michigan, City School District, School
Building and Site, GO, Refunding (c):
4,345 5% due 5/01/2014 (e) 4,687
430 5% due 5/01/2034 442
9,325 Hartland, Michigan, Consolidated School District,
GO, 6% due 5/01/2010 (c)(e) 9,892
3,990 Hudsonville, Michigan, Public Schools, School
Building and Site, GO, 5% due 5/01/2029 (d) 4,124
1,575 Jenison, Michigan, Public Schools, School Building
and Site, GO, 5.50% due 5/01/2019 (c) 1,688
2,500 Kent County, Michigan, Airport Revenue Bonds
(Gerald R. Ford International Airport), 5%
due 1/01/2037 2,580
4,000 Kent, Michigan, Hospital Finance Authority, Hospital
Revenue Refunding Bonds (Butterworth Hospital),
Series A, 7.25% due 1/15/2013 (b) 4,345
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield Michigan Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Michigan (continued)
Kent, Michigan, Hospital Finance Authority Revenue
Bonds (Spectrum Health), Series A (e):
$ 1,000 5.50% due 7/15/2011 $ 1,076
3,000 5.50% due 7/15/2011 (b) 3,228
1,510 Lansing, Michigan, Building Authority, GO, Series A,
5.375% due 6/01/2013 (b)(e) 1,646
1,875 Michigan Higher Education Facilities Authority, Limited
Obligation Revenue Bonds (Hillsdale College Project),
5% due 3/01/2035 1,879
2,250 Michigan Higher Education Facilities Authority, Limited
Obligation Revenue Refunding Bonds (Hope College),
Series A, 5.90% due 4/01/2032 2,309
Michigan Higher Education Facilities Authority, Revenue
Refunding Bonds (College for Creative Studies):
1,235 5.85% due 12/01/2022 1,289
1,145 5.90% due 12/01/2027 1,191
Michigan Higher Education Student Loan Authority,
Student Loan Revenue Bonds, AMT (a):
2,500 Series XVII-B, 5.40% due 6/01/2018 2,538
3,000 Series XVII-Q, 5% due 3/01/2031 3,021
1,065 Michigan Municipal Bond Authority Revenue Bonds
(Local Government Loan Program), Group A, 5.50%
due 11/01/2020 (a) 1,119
75 Michigan Municipal Bond Authority, Revenue
Refunding Bonds (Local Government Loan Program),
Series A, 6.50% due 11/01/2012 (b) 75
Michigan State Building Authority, Revenue Refunding
Bonds (Facilities Program) (b):
2,500 Series I, 5.50% due 10/15/2018 2,663
3,500 Series II, 5% due 10/15/2029 3,596
1,250 RIB, Series 517X, 7.27%
due 10/15/2010 (d)(i) 1,411
Michigan State, COP (a):
3,000 5.40% due 6/01/2022 (h)(l) 1,559
3,000 5.50% due 6/01/2010 (e) 3,150
3,740 Michigan State, Comprehensive Transportation
Revenue Refunding Bonds, 5% due 5/15/2026 (d) 3,912
Michigan State, HDA, Limited Obligation M/F
Housing Revenue Bonds, AMT (f):
1,000 (Deaconess Towers Apartments), 5.25%
due 2/20/2048 1,001
4,050 (Wiliams Pavilion Apartments), 4.75%
due 4/20/2037 3,806
Michigan State, HDA, Rental Housing Revenue
Bonds, AMT:
835 Series A, 5.30% due 10/01/2037 (b) 839
3,310 Series D, 5% due 4/01/2026 (d) 3,306
Face
Amount Municipal Bonds Value
Michigan (continued)
Michigan State Hospital Finance Authority Revenue
Bonds, Series A:
$ 9,180 (Mid-Michigan Obligor Group), 5%
due 4/15/2036 $ 9,097
1,500 (Trinity Health Credit Group), 5%
due 12/01/2031 1,519
2,530 Michigan State Hospital Finance Authority, Hospital
Revenue Bonds (Mid-Michigan Obligation Group),
Series A, 5.50% due 4/15/2018 (a) 2,665
Michigan State Hospital Finance Authority, Hospital
Revenue Refunding Bonds:
2,200 (Crittenton Hospital), Series A, 5.625%
due 3/01/2027 2,283
4,375 (Oakwood Obligated Group), Series A, 5%
due 7/15/2025 4,428
1,500 (Oakwood Obligated Group), Series A, 5%
due 7/15/2037 1,484
2,000 (Sparrow Obligation Group), 5.625%
due 11/15/2011 (e) 2,172
4,250 (Sparrow Obligated Group), 5% due 11/15/2031 4,244
Michigan State Hospital Finance Authority, Revenue
Refunding Bonds:
2,715 (Ascension Health Credit), Series A, 5.75%
due 11/15/2009 (b)(e) 2,858
12,000 (Ascension Health Credit), Series A, 6.125%
due 11/15/2009 (b)(e) 12,719
2,500 (Ascension Health Credit), Series A, 6.25%
due 11/15/2009 (b)(e) 2,656
6,700 (Henry Ford Health System), Series A, 5.25%
due 11/15/2032 6,820
3,000 (Henry Ford Health System), Series A, 5%
due 11/15/2038 2,968
2,200 (Mercy Health Services), Series X, 5.75%
due 8/15/2009 (b)(e) 2,306
2,000 (Mercy Health Services), Series X, 6%
due 8/15/2009 (b)(e) 2,105
4,930 (Mercy-Mount Clemens), Series A, 6%
due 5/15/2009 (b)(e) 5,161
3,000 (Saint John Hospital), Series A, 6%
due 5/15/2013 (a)(h) 3,062
3,100 (Trinity Health Credit Group), Series D, 5%
due 8/15/2034 3,120
1,000 (Trinity Health Credit), Series C, 5.375%
due 12/01/2023 1,042
5,255 (Trinity Health Credit), Series C, 5.375%
due 12/01/2030 5,445
6,400 (Trinity Health), Series A, 6%
due 12/01/2027 (a) 6,821
Michigan State Strategic Fund, Limited Obligation
Revenue Refunding Bonds:
10,250 (Detroit Edison Company Pollution
Control Project), AMT, Series A, 5.55%
due 9/01/2029 (b) 10,613
6,000 (Detroit Edison Company Pollution Control
Project), Series AA, 6.95% due 5/01/2011 (c) 6,648
2,175 (Dow Chemical Company Project), AMT, 5.50%
due 12/01/2028 2,250
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield Michigan Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Michigan (continued)
$ 15,000 Monroe County, Michigan, Economic Development
Corporation, Limited Obligation Revenue Refunding
Bonds (Detroit Edison Co. Project), Series AA, 6.95%
due 9/01/2022 (c) $ 19,237
1,000 Montrose Township, Michigan, School District, GO,
6.20% due 5/01/2017 (b) 1,167
1,830 Muskegon Heights, Michigan, Water System Revenue
Bonds, Series A, 5.625% due 11/01/2010 (b)(e) 1,943
235 Northview, Michigan, Public School District, GO,
Refunding, 5.80% due 5/01/2021 (b) 237
1,100 Norway Vulcan, Michigan, Area Schools, GO, 5.90%
due 5/01/2009 (c)(e) 1,140
500 Oak Park, Michigan, Street Improvement, GO, 5%
due 5/01/2030 (b) 520
5,320 Orchard View, Michigan, Schools, School Building and
Site, GO, 5% due 11/01/2013 (b)(e) 5,725
2,425 Oxford, Michigan, Area Community School District,
GO, 5.50% due 11/01/2011 (d)(e) 2,604
1,370 Pennfield, Michigan, School District, School Building
and Site, GO, 5% due 5/01/2014 (c)(e) 1,478
1,000 Plainwell, Michigan, Community Schools, School
District, School Building and Site, GO, 5.50%
due 11/01/2012 (d)(e) 1,089
3,905 Plymouth-Canton, Michigan, Community School
District, GO, 5% due 5/01/2029 (c) 4,036
700 Pontiac, Michigan, Tax Increment Finance Authority,
Revenue Refunding Bonds (Development Area
Number 2), 5.625% due 6/01/2022 (g) 720
1,425 Reed, Michigan, City Public Schools, School Building
and Site, GO, 5% due 5/01/2014 (d)(e) 1,537
1,500 Roseville, Michigan, School District, School Building
and Site, GO, Refunding, 5% due 5/01/2031 (d) 1,558
2,500 Saginaw, Michigan, Hospital Finance Authority,
Revenue Refunding Bonds (Covenant Medical Center),
Series E, 5.625% due 7/01/2013 (b) 2,598
Saginaw Valley State University, Michigan, General
Revenue Refunding Bonds (c):
2,100 5% due 7/01/2024 2,186
1,445 5% due 7/01/2034 1,486
1,500 Saint Clair County, Michigan, Economic Revenue
Refunding Bonds (Detroit Edison Company), RIB,
Series 282, 9.02% due 8/01/2024 (a)(i) 1,617
1,300 Southfield, Michigan, Library Building Authority, GO,
5.50% due 5/01/2010 (b)(e) 1,364
Face
Amount Municipal Bonds Value
Michigan (concluded)
Southfield, Michigan, Public Schools, School Building
and Site, GO, Series A (d)(e):
$ 3,500 5% due 5/01/2014 $ 3,775
2,900 5.25% due 5/01/2014 3,170
1,325 Sparta, Michigan, Area Schools, School Building and
Site, GO, 5% due 5/01/2014 (c)(e) 1,429
2,500 Thornapple Kellogg School District, Michigan, GO,
Refunding, 5% due 5/01/2032 (b) 2,602
1,100 Waverly, Michigan, Community School, GO, 5.50%
due 5/01/2010 (c)(e) 1,154
10,660 Wayne Charter County, Michigan, Airport Revenue
Bonds (Detroit Metropolitan Wayne County), AMT,
Series A, 5.375% due 12/01/2015 (b) 10,913
1,750 Wayne Charter County, Michigan, Detroit
Metropolitan Airport, GO, Airport Hotel, Series A, 5%
due 12/01/2030 (b) 1,794
9,160 Wayne County, Michigan, Airport Authority Revenue
Bonds (Detroit Metropolitan Wayne County Airport),
AMT, 5% due 12/01/2034 (b) 9,197
West Bloomfield, Michigan, School District, GO,
Refunding (c):
1,710 5.50% due 5/01/2017 1,830
1,225 5.50% due 5/01/2018 1,313
2,405 West Branch-Rose City, Michigan, Area School District,
GO, 5.50% due 5/01/2009 (c)(e) 2,477
1,600 Zeeland, Michigan, Public Schools, School Building
and Site, GO, 5% due 5/01/2029 (b) 1,654
Puerto Rico--6.1%
8,900 Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation
Revenue Refunding Bonds, Series N, 5.25%
due 7/01/2039 (c) 9,907
2 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Trust Receipts, Class R, Series 16 HH,
7.684% due 7/01/2013 (d)(i) 2
2,790 Puerto Rico Municipal Finance Agency Revenue
Bonds, Series A, 5% due 8/01/2027 (d) 2,906
1,000 Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series E, 5.70% due 2/01/2010 (e) 1,049
20,000 Puerto Rico Sales Tax Financing Corporation, Sales
Tax Revenue Refunding Bonds, Series A, 4.99%
due 8/01/2046 (b)(l) 2,878
Total Municipal Bonds
(Cost--$379,065)--144.8% 396,063
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (concluded)
BlackRock MuniYield Michigan Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Held in Trust (m) Value
Michigan--21.2%
$ 6,700 Detroit, Michigan, Water Supply System,
Senior Lien Revenue Bonds, Series A, 5.75%
due 7/01/2011 (c)(e) $ 7,261
Michigan State Building Authority, Revenue Refunding
Bonds (Facilities Program), Series I (d):
4,750 5.50% due 10/15/2010 5,057
15,030 5.50% due 10/15/2011 16,002
14,800 Saint Clair County, Michigan, Economic Revenue
Refunding Bonds (Detroit Edison Co. Project),
Series AA, 6.40% due 8/01/2024 (a) 15,375
Wayne County, Michigan, Airport Authority Revenue
Bonds (Detroit Metropolitan Wayne County Airport),
AMT (b):
7,525 5.25%, due 12/01/2025 7,803
6,295 5.25% due 12/01/2026 6,528
Face
Amount Municipal Bonds Held in Trust (m) Value
Puerto Rico--1.0%
$ 2,535 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series HH, 5.75% due 7/01/2010 (d)(e) $ 2,710
Total Municipal Bonds Held in Trust
(Cost--$61,242)--22.2% 60,736
Shares
Held Short-Term Securities
3,922 CMA Michigan Municipal Money Fund, 2.85% (j)(k) 3,922
Total Short-Term Securities
(Cost--$3,922)--1.4% 3,922
Total Investments (Cost--$444,229*)--168.4% 460,721
Other Assets Less Liabilities--2.5% 6,995
Liability for Trust Certificates,
Including Interest Expense Payable--(10.6%) (29,071)
Preferred Stock, at Redemption Value--(60.3%) (165,052)
----------
Net Assets Applicable to Common Stock--100.0% $ 273,593
==========
* The cost and unrealized appreciation (depreciation) of investments
as of October 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 415,339
==============
Gross unrealized appreciation $ 18,890
Gross unrealized depreciation (2,326)
--------------
Net unrealized appreciation $ 16,564
==============
(a) AMBAC Insured.
(b) MBIA Insured.
(c) FGIC Insured.
(d) FSA Insured.
(e) Prerefunded.
(f) GNMA Collateralized.
(g) ACA Insured.
(h) Escrowed to maturity.
(i) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(j) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA Michigan Municipal
Money Fund (3,462) $138
(k) Represents the current yield as of October 31, 2007.
(l) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(m) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction
in which the Fund may have acquired the residual interest certificates.
These securities serve as collateral in a financing transaction. See
Note 1(c) to Financial Statements for details of municipal bonds
held in trust.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments as of October 31, 2007
BlackRock MuniYield New Jersey Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New Jersey--137.0%
$ 1,000 Delaware River and Bay Authority Revenue Bonds,
5% due 1/01/2033 (e) $ 1,023
Delaware River Joint Toll Bridge Commission of New
Jersey and Pennsylvania, Bridge Revenue Refunding
Bonds:
1,875 5% due 7/01/2023 1,928
1,000 5% due 7/01/2028 1,020
1,000 Essex County, New Jersey, Improvement Authority,
Airport Revenue Refunding Bonds, AMT, 4.75%
due 11/01/2032 (e) 963
6,925 Garden State Preservation Trust of New Jersey,
Capital Appreciation Revenue Bonds, Series B, 5.12%
due 11/01/2023 (d)(h) 3,361
Garden State Preservation Trust of New Jersey, Open
Space and Farmland Preservation Revenue Bonds,
Series A (d):
2,605 5.80% due 11/01/2022 2,949
3,300 5.75% due 11/01/2028 3,892
2,000 Gloucester County, New Jersey, Improvement Authority,
Solid Waste Resource Recovery, Revenue Refunding
Bonds (Waste Management Inc. Project), Series A,
6.85% due 12/01/2029 2,103
750 Hopatcong, New Jersey, GO, Sewer Refunding Bonds,
4.50% due 8/01/2033 (a) 754
1,000 Hudson County, New Jersey, COP, Refunding, 6.25%
due 12/01/2016 (e) 1,173
1,000 Hudson County, New Jersey, Improvement Authority,
Capital Appreciation Revenue Bonds, Series A-1,
4.46% due 12/15/2032 (e)(h) 297
7,500 Hudson County, New Jersey, Improvement Authority,
Facility Lease Revenue Refunding Bonds (Hudson
County Lease Project), 5.375% due 10/01/2024 (c) 7,680
5,200 Jackson Township, New Jersey, School District, GO,
5% due 4/15/2012 (c)(g) 5,512
3,750 Jersey City, New Jersey, Sewer Authority,
Sewer Revenue Refunding Bonds, 6.25%
due 1/01/2014 (a) 4,154
3,000 Middlesex County, New Jersey, COP, Refunding, 5%
due 8/01/2022 (e) 3,102
Monmouth County, New Jersey, Improvement Authority,
Governmental Loan Revenue Refunding Bonds (a):
3,045 5% due 12/01/2011 (g) 3,217
240 5.20% due 12/01/2014 252
765 5.25% due 12/01/2015 803
605 5% due 12/01/2017 637
545 5% due 12/01/2018 569
560 5% due 12/01/2019 585
1,455 Morristown, New Jersey, Parking Authority Revenue
Bonds, 4.50% due 8/01/2037 (e) 1,443
Face
Amount Municipal Bonds Value
New Jersey (continued)
New Jersey EDA, Cigarette Tax Revenue Bonds:
$ 1,060 5.625% due 6/15/2019 $ 1,077
785 5.75% due 6/15/2029 822
225 5.50% due 6/15/2031 232
465 5.75% due 6/15/2034 489
1,000 New Jersey EDA, First Mortgage Revenue
Bonds (Fellowship Village), Series C, 5.50%
due 1/01/2028 1,004
1,700 New Jersey EDA, First Mortgage Revenue Refunding
Bonds (Fellowship Village), Series A, 5.50%
due 1/01/2018 1,717
New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A (e):
2,325 4.95% due 7/01/2021 (h) 1,255
3,900 5% due 7/01/2029 4,034
8,500 5.25% due 7/01/2033 8,928
1,765 5% due 7/01/2034 1,820
1,000 New Jersey EDA, School Facilities Construction
Revenue Bonds, Series U, 5% due 9/01/2037 (a) 1,043
1,500 New Jersey EDA, School Facilities Construction,
Revenue Refunding Bonds, Series K, 5.25%
due 12/15/2017 (c) 1,643
New Jersey EDA, Water Facilities Revenue Bonds
(New Jersey-American Water Company, Inc. Project),
AMT, Series A:
1,000 5.25% due 11/01/2032 (a) 1,023
5,070 6.875% due 11/01/2034 (c) 5,134
1,000 New Jersey EDA, Water Facilities Revenue Refunding
Bonds (United Water of New Jersey, Inc.), Series B,
4.50% due 11/01/2025 (a) 1,005
New Jersey Health Care Facilities Financing Authority
Revenue Bonds:
1,125 (Somerset Medical Center), 5.50%
due 7/01/2033 1,069
4,000 (South Jersey Hospital), 6% due 7/01/2012 (g) 4,398
New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds:
525 (Atlantic City Medical Center) 5.75%
due 7/01/2012 (g) 574
290 (Atlantic City Medical Center) 6.25%
due 7/01/2012 (g) 323
325 (Atlantic City Medical Center) 6.25%
due 7/01/2017 354
790 (Atlantic City Medical Center) 5.75%
due 7/01/2025 825
2,250 (Meridian Health System Obligation Group),
5.25% due 7/01/2019 (d) 2,324
New Jersey Sports and Exposition Authority,
Luxury Tax Revenue Refunding Bonds (Convention
Center) (e):
1,540 5.50% due 3/01/2021 1,736
1,000 5.50% due 3/01/2022 1,131
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield New Jersey Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
New Jersey (continued)
$ 3,200 New Jersey State Educational Facilities Authority,
Higher Education, Capital Improvement Revenue
Bonds, Series A, 5.125% due 9/01/2012 (a)(g) $ 3,425
New Jersey State Educational Facilities Authority
Revenue Bonds:
1,100 (Kean University), Series D, 5%
due 7/01/2032 (c) 1,150
280 (Kean University), Series D, 5%
due 7/01/2039 (c) 291
1,600 (Montclair State University), Series A, 5%
due 7/01/2021 (a) 1,697
695 (Richard Stockton College), Series F, 5%
due 7/01/2031 (e) 724
1,185 (Rowan University), Series C, 5%
due 7/01/2014 (e)(g) 1,280
1,315 (Rowan University), Series C, 5.125%
due 7/01/2014 (e)(g) 1,430
300 (Rowan University), Series G, 4.50%
due 7/01/2031 (e) 300
New Jersey State Educational Facilities Authority,
Revenue Refunding Bonds:
3,020 (Montclair State University), Series J, 4.25%
due 7/01/2030 (e) 2,894
3,185 (Montclair State University), Series L, 5%
due 7/01/2014 (e)(g) 3,441
1,250 (Ramapo College), Series I, 4.25%
due 7/01/2031 (a) 1,203
4,790 (Ramapo College), Series I, 4.25%
due 7/01/2036 (a) 4,568
700 (Rowan University), Series B, 4.25%
due 7/01/2034 (c) 664
195 (Rowan University), Series C, 5%
due 7/01/2011 (c)(g) 207
360 (Rowan University), Series C, 5%
due 7/01/2031 (c) 369
1,500 (Stevens Institute of Technology), Series A, 5%
due 7/01/2034 1,472
1,725 (William Paterson University), Series E, 5%
due 7/01/2021 (f) 1,807
3,500 New Jersey State, GO, Refunding, Series H, 5.25%
due 7/01/2015 (d) 3,842
3,565 New Jersey State Higher Education Assistance
Authority, Student Loan Revenue Bonds, AMT,
Series A, 5.30% due 6/01/2017 (a) 3,601
New Jersey State Housing and Mortgage Finance
Agency, Capital Fund Program Revenue Bonds,
Series A (d):
4,425 4.70% due 11/01/2025 4,453
1,970 5% due 5/01/2027 2,058
2,640 New Jersey State Housing and Mortgage Finance
Agency, Home Buyer Revenue Bonds, AMT, Series CC,
5.80% due 10/01/2020 (e) 2,715
1,000 New Jersey State Housing and Mortgage Finance
Agency, M/F Revenue Bonds, AMT, Series A, 4.90%
due 11/01/2035 (c) 975
500 New Jersey State Housing and Mortgage Finance
Agency, S/F Housing Revenue Refunding Bonds, AMT,
Series T, 4.70% due 10/01/2037 470
Face
Amount Municipal Bonds Value
New Jersey (concluded)
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds:
$ 4,750 Series C, 4.83% due 12/15/2032 (d)(h) $ 1,436
2,760 Series C, 5.05% due 12/15/2035 (a)(h) 715
3,240 Series D, 5% due 6/15/2019 (d) 3,433
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Refunding Bonds:
4,250 Series A, 5.25% due 12/15/2020 (d) 4,715
3,600 Series B, 5.50% due 12/15/2021 (e) 4,090
3,005 New Jersey State Turnpike Authority, Turnpike Revenue
Bonds, Series B, 5.15% due 1/01/2035 (a)(h) 2,165
3,600 Newark, New Jersey, Housing Authority, Port
Authority-Port Newark Marine Terminal, Additional
Rent-Backed Revenue Refunding Bonds (City
of Newark Redevelopment Projects), 4.375%
due 1/01/2037 (e) 3,487
1,710 North Hudson Sewage Authority, New Jersey,
Sewer Revenue Refunding Bonds, 5.125%
due 8/01/2020 (e) 1,881
1,250 Perth Amboy, New Jersey, GO (Convertible CABS),
Refunding, 4.75% due 7/01/2035 (d)(h) 1,020
1,000 Port Authority of New York and New Jersey,
Consolidated Revenue Bonds, 93rd Series, 6.125%
due 6/01/2094 1,162
5,000 Port Authority of New York and New Jersey,
Consolidated Revenue Refunding Bonds, AMT, 146th
Series, 4.25% due 12/01/2032 (d) 4,478
Rahway Valley Sewerage Authority, New Jersey, Sewer
Revenue Bonds (Capital Appreciation), Series A (e)(h):
4,100 4.74% due 9/01/2026 1,706
2,350 4.36% due 9/01/2033 680
Salem County, New Jersey, Improvement Authority
Revenue Bonds (Finlaw State Office Building
Project) (d):
1,250 5.375% due 8/15/2028 1,355
700 5.25% due 8/15/2038 743
2,200 South Jersey Port Corporation of New Jersey, Revenue
Refunding Bonds, 5% due 1/01/2023 2,259
1,715 Tobacco Settlement Financing Corporation of
New Jersey, Asset-Backed Revenue Bonds, 7%
due 6/01/2013 (g) 2,005
Union County, New Jersey, Utilities Authority, Senior
Lease Revenue Refunding Bonds (Ogden Martin
System of Union, Inc.), AMT, Series A (a):
1,590 5.375% due 6/01/2017 1,616
1,670 5.375% due 6/01/2018 1,697
University of Medicine and Dentistry of New Jersey,
Revenue Bonds, Series A (a):
570 5.50% due 12/01/2018 616
1,145 5.50% due 12/01/2019 1,238
1,130 5.50% due 12/01/2020 1,222
865 5.50% due 12/01/2021 935
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (concluded)
BlackRock MuniYield New Jersey Insured Fund, Inc. (In Thousands)
Face
Amount Municipal Bonds Value
Puerto Rico--10.1%
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds:
$ 1,500 Series J, 5% due 7/01/2029 (e) $ 1,557
1,380 Series K, 5% due 7/01/2015 (g) 1,505
1,200 Series N, 5.25% due 7/01/2039 (c) 1,336
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax and Capital Appreciation
Revenue Bonds, Series A (h):
2,750 4.48% due 7/01/2030 (c) 936
2,250 4.34% due 7/01/2037 (a) 534
2,000 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series RR, 5% due 7/01/2028 (b) 2,081
Puerto Rico Industrial, Tourist, Educational, Medical
and Environmental Control Facilities Revenue Bonds:
2,110 (Ascension Health), RIB, Series 377, 8.50%
due 11/15/2030 (i) 2,388
3,000 (University Plaza Project), Series A, 5%
due 7/01/2033 (e) 3,073
Total Municipal Bonds
(Cost--$187,564)--147.1% 194,477
Face
Amount Municipal Bonds Held in Trust (k) Value
New Jersey--4.0%
Delaware River Port Authority of Pennsylvania and
New Jersey Revenue Bonds (d):
$ 2,500 6% due 1/01/2018 $ 2,622
2,500 6% due 1/01/2019 2,622
Total Municipal Bonds Held in Trust
(Cost--$5,105)--4.0% 5,244
Shares
Held Short-Term Securities
89 CMA New Jersey Municipal Money
Fund, 2.88% (j)(l) 89
Total Short-Term Securities
(Cost--$89)--0.1% 89
Total Investments (Cost--$192,758*)--151.2% 199,810
Other Assets Less Liabilities--6.3% 8,419
Liability for Trust Certificates,
Including Interest Expense Payable--(1.9%) (2,531)
Preferred Stock, at Redemption Value--(55.6%) (73,524)
----------
Net Assets Applicable to Common Stock--100.0% $ 132,174
==========
* The cost and unrealized appreciation (depreciation) of investments
as of October 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 190,115
===============
Gross unrealized appreciation $ 8,180
Gross unrealized depreciation (985)
---------------
Net unrealized appreciation $ 7,195
===============
(a) AMBAC Insured.
(b) CIFG Insured.
(c) FGIC Insured.
(d) FSA Insured.
(e) MBIA Insured.
(f) XL Capital Insured.
(g) Prerefunded.
(h) Represents a zero coupon bond; the interest rate shown is the effective
yield at the time of purchase.
(i) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(j) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA New Jersey Municipal Money Fund (1,272) $29
(k) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction
in which the Fund may have acquired the residual interest certificates.
These securities serve as collateral in a financing transaction. See
Note 1(c) to Financial Statements for details of municipal bonds
held in trust.
(l) Represents the current yield as of October 31, 2007.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments as of October 31, 2007
BlackRock MuniYield Pennsylvania Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
Pennsylvania--129.3%
$ 4,650 Allegheny County, Pennsylvania, GO, Series C-60, 5%
due 11/01/2032 (e) $ 4,847
2,000 Allegheny County, Pennsylvania, Hospital
Development Authority, Health Center Revenue Bonds
(University of Pittsburgh Medical Center Health
System), Series B, 6% due 7/01/2026 (f) 2,382
1,000 Allegheny County, Pennsylvania, Residential Finance
Authority, S/F Mortgage Revenue Bonds, AMT,
Series TT, 5% due 5/01/2035 (d) 984
5,000 Allegheny County, Pennsylvania, Sanitation Authority,
Sewer Revenue Bonds, 5% due 12/01/2037 (c) 5,185
5,000 Allegheny County, Pennsylvania, Sanitation Authority,
Sewer Revenue Refunding Bonds, Series A, 5%
due 12/01/2030 (f) 5,195
Chambersburg, Pennsylvania, Area School District,
GO (c):
2,115 5.25% due 3/01/2026 2,250
2,500 5.25% due 3/01/2027 2,656
4,000 5.25% due 3/01/2029 4,242
1,750 Chester County, Pennsylvania, Health and Education
Facilities Authority, Revenue Refunding Bonds
(Devereux Foundation), 5% due 11/01/2031 1,740
5,500 Delaware County, Pennsylvania, IDA Revenue Bonds
(Pennsylvania Suburban Water Company Project),
AMT, Series A, 5.15% due 9/01/2032 (a) 5,579
4,770 Delaware County, Pennsylvania, IDA, Water Facilities
Revenue Refunding Bonds (Aqua Pennsylvania, Inc.
Project), AMT, Series B, 5% due 11/01/2036 (c) 4,782
1,500 Delaware Valley Regional Finance Authority,
Pennsylvania, Local Government Revenue Bonds,
5.75% due 7/01/2032 1,741
East Stroudsburg, Pennsylvania, Area School District,
GO:
7,000 Refunding, 5% due 9/01/2025 (e) 7,378
2,000 Series A, 7.75% due 9/01/2027 (c) 2,592
8,850 Erie County, Pennsylvania, Convention Center
Authority, Convention Center Hotel Revenue Bonds,
5% due 1/15/2036 (c) 9,054
5,000 Erie County, Pennsylvania, Hospital Authority
Revenue Bonds (Hamot Health Foundation), 5%
due 11/01/2035 (h) 5,083
4,450 Erie, Pennsylvania, Water Authority, Revenue
Refunding Bonds, VRDN, Series A, 3.43%
due 12/01/2036 (e)(l) 4,450
4,000 Gettysburg, Pennsylvania, Municipal Authority, College
Revenue Refunding Bonds, 5% due 8/15/2023 (f) 4,072
5,000 Lehigh County, Pennsylvania, IDA, PCR, Refunding
(Pennsylvania Power and Light Utilities Corporation
Project), Series A, 4.70% due 9/01/2029 (c) 5,020
Face
Amount Municipal Bonds Value
Pennsylvania (continued)
$ 1,265 Monroe County, Pennsylvania, Hospital Authority
Revenue Refunding Bonds (Pocono Medical Center),
5.125% due 1/01/2037 $ 1,212
2,675 North Allegheny, Pennsylvania, School District, GO,
Series C, 5.25% due 5/01/2027 (e) 2,818
935 Northampton Borough, Pennsylvania,
Municipal Authority, Water Revenue Bonds, 5%
due 5/15/2034 (f) 961
1,585 Northeastern York School District, Pennsylvania, GO,
Series B, 5% due 4/01/2032 (c) 1,649
6,000 Northumberland County, Pennsylvania, IDA,
Water Facilities Revenue Refunding Bonds
(Aqua Pennsylvania Inc. Project), AMT, 5.05%
due 10/01/2039 (c) 6,026
1,200 Pennsylvania Economic Development Financing
Authority, Solid Waste Disposal Revenue Bonds
(Waste Management Inc. Project), AMT, Series A,
5.10% due 10/01/2027 1,159
2,500 Pennsylvania HFA, Revenue Bonds, DRIVERS, AMT,
Series 1248Z, 6.671% due 10/01/2009 (f)(i) 2,548
Pennsylvania HFA, S/F Mortgage Revenue Refunding
Bonds, AMT:
5,000 Series 92-A, 4.75% due 4/01/2031 4,769
3,000 Series 96A, 4.70% due 10/01/2037 2,795
Pennsylvania State Higher Educational Facilities
Authority Revenue Bonds:
4,400 (Drexel University), Series A, 5% due 5/01/2037 (f) 4,568
3,000 (UPMC Health System), Series A, 6%
due 1/15/2022 3,214
4,305 (York College of Pennsylvania Project),
Series EE1, 5% due 11/01/2033 (g) 4,423
8,845 Pennsylvania State Higher Educational Facilities
Authority, State System Revenue Bonds, Series AE,
4.75% due 6/15/2032 (f) 8,907
7,000 Pennsylvania State IDA, EDR, Refunding, 5.50%
due 7/01/2020 (a) 7,585
Pennsylvania State Public School Building Authority,
School and Capital Appreciation Revenue Bonds
(Corry Area School District) (e)(n):
1,980 4.85% due 12/15/2022 1,003
1,980 4.87% due 12/15/2023 950
1,980 4.89% due 12/15/2024 901
1,980 4.92% due 12/15/2025 856
7,800 Pennsylvania State Turnpike Commission, Turnpike
Revenue Bonds, Series A, 5.50% due 12/01/2031 (a) 8,469
Philadelphia, Pennsylvania, Authority for Industrial
Development, Airport Revenue Refunding Bonds
(Philadelphia Airport System Project), AMT,
Series A (c):
4,000 5.50% due 7/01/2017 4,220
3,655 5.50% due 7/01/2018 3,856
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (continued)
BlackRock MuniYield Pennsylvania Insured Fund (In Thousands)
Face
Amount Municipal Bonds Value
Pennsylvania (concluded)
Philadelphia, Pennsylvania, Authority for Industrial
Development, Lease Revenue Bonds:
$ 9,125 (City of Philadelphia Project), Series A, 5.375%
due 2/15/2027 (f) $ 9,280
3,000 Series B, 5.50% due 10/01/2011 (e)(j) 3,240
4,680 Series B, 5.50% due 10/01/2011 (e)(j)(p) 5,055
10,000 Philadelphia, Pennsylvania, Gas Works Revenue
Bonds, 1998 General Ordinance, 4th Series, 5%
due 8/01/2032 (e) 10,215
3,900 Philadelphia, Pennsylvania, Gas Works Revenue
Refunding Bonds, VRDN, Series 6, 3.43%
due 8/01/2031 (e)(l) 3,900
3,000 Philadelphia, Pennsylvania, Hospitals and Higher
Education Facilities Authority, Hospital Revenue
Refunding Bonds (Presbyterian Medical Center),
6.65% due 12/01/2019 (b) 3,590
3,000 Philadelphia, Pennsylvania, Housing Authority
Revenue Bonds (Capital Fund Program), Series A,
5.50% due 12/01/2018 (e) 3,213
4,645 Philadelphia, Pennsylvania, Qualified Redevelopment
Authority Revenue Bonds, AMT, Series B, 5%
due 4/15/2027 (c) 4,735
1,750 Philadelphia, Pennsylvania, Redevelopment Authority
Revenue Bonds (Neighborhood Transformation),
Series A, 5.50% due 4/15/2022 (c) 1,858
5,000 Philadelphia, Pennsylvania, School District, GO
Series D, 5.125% due 6/01/2014 (c)(j) 5,434
3,700 Philadelphia, Pennsylvania, Water and Wastewater
Revenue Refunding Bonds, Series B, 4.75%
due 11/01/2031 (a) 3,720
5,000 Pittsburgh, Pennsylvania, Water and Sewer Authority,
Water and Sewer System Revenue Bonds, First Lien,
5% due 9/01/2015 (f)(j) 5,431
3,680 Reading, Pennsylvania, Area Water Authority, Water
Revenue Bonds, 5% due 12/01/2027 (e) 3,860
6,000 Reading, Pennsylvania, School District, GO, 5%
due 1/15/2029 (e) 6,245
Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Refunding Bonds (Guthrie Healthcare
System), Series A:
2,010 5.875% due 12/01/2011 (j) 2,204
590 5.875% due 12/01/2031 616
6,145 Shaler Area School District, Pennsylvania, Capital
Appreciation, GO, 4.765% due 9/01/2030 (g)(n) 2,067
2,000 Southcentral General Authority, Pennsylvania,
Revenue Bonds (York College of Pennsylvania
Project), 5% due 5/01/2037 (g) 2,058
1,040 York, Pennsylvania, City School District, GO, Series A,
5.25% due 6/01/2022 (g) 1,112
Face
Amount Municipal Bonds Value
Guam--1.5%
$ 2,500 A.B. Won Guam International Airport Authority,
General Revenue Refunding Bonds, AMT, Series C,
5% due 10/01/2023 (f) $ 2,546
Puerto Rico--13.1%
10,795 Puerto Rico Commonwealth, Public Improvement,
GO, Series A, 5% due 7/01/2034 10,879
Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds, Series I (q):
2,500 5.50% due 7/01/2025 2,654
5,000 5.375% due 7/01/2034 5,188
Puerto Rico Sales Tax Financing Corporation, Sales
Tax Revenue Refunding Bonds, Series A:
7,000 5.01% due 8/01/2043 (f)(n) 1,206
3,250 5.25% due 8/01/2057 3,357
Total Municipal Bonds
(Cost--$249,433)--143.9% 255,784
Municipal Bonds Held in Trust (o)
Pennsylvania--28.8%
15,000 Pennsylvania State Public School Building Authority,
School Lease Revenue Bonds (The School District of
Philadelphia Project), 5.25% due 6/01/2013 (e)(j) 16,257
15,000 Pennsylvania State Turnpike Commission, Oil
Franchise Tax Revenue Bonds, Sub-Series B, 5.50%
due 12/01/2013 (f)(j) 16,561
7,500 Philadelphia Pennsylvania Airport Revenue Bonds,
5% due 6/15/2037 (e) 7,522
10,000 Philadelphia, Pennsylvania, School District, GO,
Series B, 5.625% due 8/01/2012 (c)(j) 10,904
Total Municipal Bonds Held in Trust
(Cost--$49,083)--28.8% 51,244
Shares
Held Short-Term Securities
86 CMA Pennsylvania Municipal Money Fund, 2.88% (k)(m) 86
Total Short-Term Securities
(Cost--$86)--0.0% 86
Total Investments (Cost--$298,602*)--172.7% 307,114
Liabilities in Excess of Other Assets--(1.8%) (3,253)
Liability for Trust Certificates,
Including Interest Expense Payable--(13.5%) (24,036)
Preferred Shares, at Redemption Value--(57.4%) (102,018)
----------
Net Assets Applicable to Common Shares--100.0% $ 177,807
==========
ANNUAL REPORT OCTOBER 31, 2007
Schedule of Investments (concluded)
BlackRock MuniYield Pennsylvania Insured Fund (In Thousands)
* The cost and unrealized appreciation (depreciation) of investments
as of October 31, 2007, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 274,695
===============
Gross unrealized appreciation $ 9,401
Gross unrealized depreciation (732)
---------------
Net unrealized appreciation $ 8,669
===============
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) FNMA/GNMA Collateralized.
(e) FSA Insured.
(f) MBIA Insured.
(g) XL Capital Insured.
(h) CIFG Insured.
(i) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(j) Prerefunded.
(k) Investments in companies considered to be an affiliate of the Fund,
for purpose of Section 2(a)(3) of the Investment Company Act of 1940
were as follows:
Net Dividend
Affiliate Activity Income
CMA Pennsylvania Municipal Money Fund 20 $20
(l) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(m) Represents the current yield as of October 31, 2007.
(n) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(o) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction
in which the Fund may have acquired the residual interest certificates.
These securities serve as collateral in a financing transaction. See
Note 1(c) to Financial Statements for details of municipal bonds
held in trust.
(p) All or a portion of security held as collateral in connection with
forward interest rate swaps.
(q) Commonwealth Guaranteed.
o Forward interest rate swaps outstanding as of October 31, 2007
were as follows:
Unrealized
Notional Appreciation
Amount (Depreciation)
Pay a fixed rate of 3.8025% and
receive a floating rate based on
1-week (SIFMA) Municipal Swap Index rate
Broker, JPMorgan Chase
Expires November 2017 $15,000 $ (162)
Pay a fixed rate of 3.637% and
receive a floating rate based on
1-week (SIFMA) Municipal Swap Index rate
Broker, JPMorgan Chase
Expires January 2018 $20,000 62
Pay a fixed rate of 4.357% and
receive a floating rate based on
1-week (SIFMA) Municipal Swap Index rate
Broker, JPMorgan Chase
Expires November 2027 $ 9,000 (434)
---------
Total $ (534)
=========
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Statements of Net Assets
BlackRock BlackRock
BlackRock MuniYield MuniYield BlackRock
MuniYield Michigan New Jersey MuniYield
Florida Insured Insured Pennsylvania
As of October 31, 2007 Insured Fund Fund, Inc. Fund, Inc. Insured Fund
Assets
Investments in unaffiliated securities, at value* $ 204,938,645 $ 456,798,979 $ 199,720,625 $ 307,027,641
Investments in affiliated securities, at value** 1,845,491 3,921,556 89,193 86,262
Cash 77,768 19,954 20,111 --
Unrealized appreciation on forward interest rate swaps -- -- -- 62,360
Interest receivable 2,298,614 8,338,718 3,134,202 4,352,266
Receivable for securities sold -- -- 5,897,151 --
Prepaid expenses 1,513 2,234 1,298 1,656
-------------- -------------- -------------- --------------
Total assets 209,162,031 469,081,441 208,862,580 311,530,185
-------------- -------------- -------------- --------------
Liabilities
Trust certificates 11,680,000 28,817,500 2,500,000 23,750,000
Bank overdraft -- -- -- 3,642,799
Unrealized depreciation on forward interest rate swaps 66,960 -- -- 596,223
Payable for securities purchased 3,082,660 -- -- 2,585,720
Interest expense payable 113,003 253,541 31,099 286,206
Dividends payable to Common Stock shareholders/Common
Shareholders 473,302 1,074,172 475,313 642,912
Payable to investment adviser 80,741 184,880 87,483 119,037
Payable to other affiliates 1,124 2,537 1,188 1,628
Accrued expenses 71,049 103,770 69,599 80,434
-------------- -------------- -------------- --------------
Total liabilities 15,568,839 30,436,400 3,164,682 31,704,959
-------------- -------------- -------------- --------------
Preferred Stock/Shares
Preferred Stock/Shares, at redemption value, of AMPS+++
at $25,000 per share liquidation preference++*** 72,019,660 165,051,547 73,523,934 102,018,352
-------------- -------------- -------------- --------------
Net Assets Applicable to Common Stock/Shares
Net assets applicable to Common Stock/Shares $ 121,573,532 $ 273,593,494 $ 132,173,964 $ 177,806,874
============== ============== ============== ==============
Analysis of Net Assets Applicable to Common Stock/Shares
Undistributed investment income--net $ 339,357 $ 1,796,256 $ 1,307,514 $ 677,381
Accumulated realized capital losses--net (3,172,512) (15,301,986) (322,491) (1,930,706)
Unrealized appreciation--net 5,985,098 16,491,259 7,052,167 7,978,340
-------------- -------------- -------------- --------------
Total accumulated earnings--net 3,151,943 2,985,529 8,037,190 6,725,015
-------------- -------------- -------------- --------------
Common Stock/Shares, par value $.10 per share++++ 845,181 1,820,630 880,210 1,148,057
Paid-in capital in excess of par 117,576,408 268,787,335 123,256,564 169,933,802
-------------- -------------- -------------- --------------
Net Assets $ 121,573,532 $ 273,593,494 $ 132,173,964 $ 177,806,874
============== ============== ============== ==============
Net asset value per share of Common Stock/Shares $ 14.38 $ 15.03 $ 15.02 $ 15.49
============== ============== ============== ==============
Market Price $ 12.74 $ 13.40 $ 13.70 $ 13.67
============== ============== ============== ==============
* Identified cost of unaffiliated securities $ 198,886,587 $ 440,307,720 $ 192,668,458 $ 298,515,438
============== ============== ============== ==============
** Identified cost of affiliated securities $ 1,845,491 $ 3,921,556 $ 89,193 $ 86,262
============== ============== ============== ==============
*** Preferred Stock/Shares issued and outstanding:
Series A, par value of $.05 per share 2,400 2,000 2,240 1,600
============== ============== ============== ==============
Series B, par value of $.05 per share 480 2,000 -- 1,920
============== ============== ============== ==============
Series B, par value of $.10 per share -- -- 700 --
============== ============== ============== ==============
Series C, par value of $.05 per share -- 1,600 -- 560
============== ============== ============== ==============
Series D, par value of $.10 per share -- 1,000 -- --
============== ============== ============== ==============
++ Preferred Stock/Shares authorized 1,000,000 6,600 2,940 1,000,000
============== ============== ============== ==============
++++ Common Stock/Shares issued and outstanding 8,451,814 18,206,301 8,802,099 11,480,567
============== ============== ============== ==============
+++ Auction Market Preferred Stock/Shares.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Statements of Operations
BlackRock BlackRock
BlackRock MuniYield MuniYield BlackRock
MuniYield Michigan New Jersey MuniYield
Florida Insured Insured Pennsylvania
For the Year Ended October 31, 2007 Insured Fund Fund, Inc. Fund, Inc. Insured Fund
Investment Income
Interest $ 9,842,341 $ 23,346,555 $ 10,198,947 $ 14,693,124
Dividends from affiliates 95,766 137,587 29,087 20,208
-------------- -------------- -------------- --------------
Total income 9,938,107 23,484,142 10,228,034 14,713,332
-------------- -------------- -------------- --------------
Expenses
Investment advisory fees 977,034 2,207,154 1,034,003 1,412,279
Interest expense and fees 405,590 1,172,910 268,042 1,055,463
Commission fees 182,703 420,888 186,372 261,134
Accounting services 88,703 151,893 91,671 95,961
Professional fees 77,267 87,582 76,081 79,762
Transfer agent fees 45,819 76,347 47,721 56,203
Printing and shareholder reports 20,811 44,959 22,064 28,852
Directors'/Trustees' fees and expenses 22,093 22,323 22,104 22,175
Custodian fees 12,090 24,464 13,745 19,074
Pricing fees 14,005 21,240 13,220 12,212
Listing fees 9,436 9,436 9,435 9,436
Other 41,511 58,539 43,762 48,520
-------------- -------------- -------------- --------------
Total expenses before reimbursement 1,897,062 4,297,735 1,828,220 3,101,071
Reimbursement of expenses (15,883) (22,170) (4,167) (3,253)
-------------- -------------- -------------- --------------
Total expenses after reimbursement 1,881,179 4,275,565 1,824,053 3,097,818
-------------- -------------- -------------- --------------
Investment income--net 8,056,928 19,208,577 8,403,981 11,615,514
-------------- -------------- -------------- --------------
Realized and Unrealized Gain (Loss)--Net
Realized gain (loss) on:
Investments--net 286,303 1,663,620 588,462 2,680,909
Forward interest rate swaps--net (109,389) (93,463) -- (343,664)
-------------- -------------- -------------- --------------
Total realized gain--net 176,914 1,570,157 588,462 2,337,245
-------------- -------------- -------------- --------------
Change in unrealized appreciation/depreciation on:
Investments--net (4,471,390) (9,861,159) (4,321,927) (7,389,915)
Forward interest rate swaps--net 122,801 139,794 -- 390,911
-------------- -------------- -------------- --------------
Total change in unrealized appreciation/depreciation--net (4,348,589) (9,721,365) (4,321,927) (6,999,004)
-------------- -------------- -------------- --------------
Total realized and unrealized loss--net (4,171,675) (8,151,208) (3,733,465) (4,661,759)
-------------- -------------- -------------- --------------
Dividends and Distributions to Preferred Stock Shareholders/Preferred Shareholders
Investment income--net (2,631,621) (5,850,606) (2,420,847) (3,638,710)
Realized gain--net -- -- (23,780) --
-------------- -------------- -------------- --------------
Total dividends and distributions to Preferred Stock
shareholders/Preferred shareholders (2,631,621) (5,850,606) (2,444,627) (3,638,710)
-------------- -------------- -------------- --------------
Net Increase in Net Assets Resulting from Operations $ 1,253,632 $ 5,206,763 $ 2,225,889 $ 3,315,045
============== ============== ============== ==============
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Statements of Changes in Net Assets
BlackRock MuniYield BlackRock MuniYield
Florida Insured Fund Michigan Insured Fund, Inc.
For the Year Ended October 31, For the Year Ended October 31,
Increase (Decrease) in Net Assets: 2007 2006 2007 2006
Operations
Investment income--net $ 8,056,928 $ 8,162,555 $ 19,208,577 $ 18,947,795
Realized gain--net 176,914 48,897 1,570,157 766,219
Change in unrealized appreciation/depreciation--net (4,348,589) 2,043,553 (9,721,365) 3,191,112
Dividends to Preferred Stock shareholders/Preferred Shareholders (2,631,621) (2,323,697) (5,850,606) (5,190,018)
-------------- -------------- -------------- --------------
Net increase in net assets resulting from operations 1,253,632 7,931,308 5,206,763 17,715,108
-------------- -------------- -------------- --------------
Dividends to Common Stock Shareholders/Common Shareholders
Investment income--net (5,721,878) (6,338,731) (12,962,886) (15,230,229)
-------------- -------------- -------------- --------------
Stock/Share Transactions
Value of shares issued to Common Stock shareholders/Common
Shareholders in reinvestment of dividends -- 27,237 -- 614,402
-------------- -------------- -------------- --------------
Net Assets Applicable to Common Stock/Shares
Total increase (decrease) in net assets applicable to
Common Stock/Shares (4,468,246) 1,619,814 (7,756,123) 3,099,281
Beginning of year 126,041,778 124,421,964 281,349,617 278,250,336
-------------- -------------- -------------- --------------
End of year* $ 121,573,532 $ 126,041,778 $ 273,593,494 $ 281,349,617
============== ============== ============== ==============
* Undistributed investment income--net $ 339,357 $ 635,928 $ 1,796,256 $ 1,401,171
============== ============== ============== ==============
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Statements of Changes in Net Assets (concluded)
BlackRock MuniYield BlackRock MuniYield
New Jersey Insured Fund, Inc. Pennsylvania Insured Fund
For the Year Ended October 31, For the Year Ended October 31,
Increase (Decrease) in Net Assets: 2007 2006 2007 2006
Operations
Investment income--net $ 8,403,981 $ 8,577,480 $ 11,615,514 $ 11,618,794
Realized gain--net 588,462 982,663 2,337,245 34,726
Change in unrealized appreciation/depreciation--net (4,321,927) 2,138,341 (6,999,004) 4,128,137
Dividends and distributions to Preferred Stock shareholders/
Preferred Shareholders (2,444,627) (2,163,956) (3,638,710) (3,155,383)
-------------- -------------- -------------- --------------
Net increase in net assets resulting from operations 2,225,889 9,534,528 3,315,045 12,626,274
-------------- -------------- -------------- --------------
Dividends and Distributions to Common Stock Shareholders/Common Shareholders
Investment income--net (5,747,771) (6,390,415) (7,910,111) (8,977,803)
Realized gain--net (70,742) -- -- --
-------------- -------------- -------------- --------------
Net decrease in net assets resulting from dividends and
distributions to Common Stock shareholders/Common
Shareholders (5,818,513) (6,390,415) (7,910,111) (8,977,803)
-------------- -------------- -------------- --------------
Stock Transactions
Offering and underwriting costs, including adjustments,
resulting from the issuance of Preferred Shares -- -- -- (17,729)
-------------- -------------- -------------- --------------
Net Assets Applicable to Common Stock/Shares
Total increase (decrease) in net assets applicable to
Common Stock/Shares (3,592,624) 3,144,113 (4,595,066) 3,630,742
Beginning of year 135,766,588 132,622,475 182,401,940 178,771,198
-------------- -------------- -------------- --------------
End of year* $ 132,173,964 $ 135,766,588 $ 177,806,874 $ 182,401,940
============== ============== ============== ==============
* Undistributed investment income--net $ 1,307,514 $ 1,086,101 $ 677,381 $ 650,149
============== ============== ============== ==============
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Financial Highlights BlackRock MuniYield Florida Insured Fund
The following per share data and ratios have been derived For the Year Ended October 31,
from information provided in the financial statements. 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of year $ 14.91 $ 14.72 $ 15.22 $ 15.04 $ 15.04
---------- ---------- ---------- ---------- ----------
Investment income--net* .95 .97 .98 .98 1.05
Realized and unrealized gain (loss)--net (.49) .24 (.38) .20 (.06)
Dividends to Preferred Shareholders from investment income--net (.31) (.27) (.17) (.07) (.07)
---------- ---------- ---------- ---------- ----------
Total from investment operations .15 .94 .43 1.11 92
---------- ---------- ---------- ---------- ----------
Less dividends to Common Shareholders from investment income--net (.68) (.75) (.90) (.93) (.92)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs resulting from the issuance
of Preferred Shares -- -- (.03) -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 14.38 $ 14.91 $ 14.72 $ 15.22 $ 15.04
========== ========== ========== ========== ==========
Market price per share, end of year $ 12.74 $ 14.21 $ 14.18 $ 14.98 $ 14.18
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 1.39% 6.87% 2.72% 7.98% 6.45%
========== ========== ========== ========== ==========
Based on market price per share (5.75%) 5.73% .54% 12.73% 5.56%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets Applicable to Common Shares
Total expenses, net of reimbursement and excluding interest
expense and fees*** 1.20% 1.17% 1.20% 1.09% 1.08%
========== ========== ========== ========== ==========
Total expenses, net of reimbursement*** 1.52% 1.45% 1.38% 1.27% 1.25%
========== ========== ========== ========== ==========
Total expenses*** 1.54% 1.46% 1.38% 1.28% 1.25%
========== ========== ========== ========== ==========
Total investment income--net*** 6.53% 6.58% 6.50% 6.54% 6.86%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Shareholders 2.13% 1.87% 1.13% .48% .47%
========== ========== ========== ========== ==========
Investment income to Common Shareholders--net 4.40% 4.71% 5.37% 6.06% 6.39%
========== ========== ========== ========== ==========
Supplemental Data
Net assets applicable to Common Shares, end of year
(in thousands) $ 121,574 $ 126,042 $ 124,422 $ 128,455 $ 126,915
========== ========== ========== ========== ==========
Preferred Shares outstanding at liquidation preference,
end of year (in thousands) $ 72,000 $ 72,000 $ 72,000 $ 60,000 $ 60,000
========== ========== ========== ========== ==========
Portfolio turnover 26% 34% 52% 28% 40%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,689 $ 2,751 $ 2,728 $ 3,141 $ 3,115
========== ========== ========== ========== ==========
* Based on average shares outstanding.
** 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.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Financial Highlights BlackRock MuniYield Michigan Insured Fund, Inc.
The following per share data and ratios have been derived For the Year Ended October 31,
from information provided in the financial statements. 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of year $ 15.45 $ 15.32 $ 15.96 $ 15.94 $ 15.74
---------- ---------- ---------- ---------- ----------
Investment income--net* 1.06 1.04 1.08 1.06 1.10
Realized and unrealized gain (loss)--net (.45) .22 (.54) .03 .15
Dividends to Preferred Stock shareholders from investment
income--net (.32) (.29) (.18) (.07) (.07)
---------- ---------- ---------- ---------- ----------
Total from investment operations (.29) .97 .36 1.02 1.18
---------- ---------- ---------- ---------- ----------
Less dividends to Common Stock shareholders from investment
income--net (.71) (.84) (.98) (1.00) (.98)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs resulting from the issuance of
Preferred Stock -- -- (.02) -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 15.03 $ 15.45 $ 15.32 $ 15.96 $ 15.94
========== ========== ========== ========== ==========
Market price per share, end of year $ 13.40 $ 14.67 $ 15.31 $ 15.37 $ 14.69
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 2.30% 6.64% 2.24% 7.04% 8.26%
========== ========== ========== ========== ==========
Based on market price per share (3.95%) 1.32% 6.10% 11.85% 12.57%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets Applicable to Common Stock
Total expenses, net of reimbursement and excluding interest
expense and fees*** 1.12% 1.11% 1.10% 1.00% 1.01%
========== ========== ========== ========== ==========
Total expenses, net of reimbursement*** 1.55% 1.61% 1.42% 1.19% 1.20%
========== ========== ========== ========== ==========
Total expenses*** 1.55% 1.62% 1.42% 1.22% 1.21%
========== ========== ========== ========== ==========
Total investment income--net*** 6.95% 6.84% 6.84% 6.69% 6.83%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders 2.12% 1.87% 1.13% .46% .45%
========== ========== ========== ========== ==========
Investment income to Common Stock shareholders--net 4.83% 4.97% 5.71% 6.23% 6.38%
========== ========== ========== ========== ==========
Supplemental Data
Net assets applicable to Common Stock, end of year
(in thousands) $ 273,593 $ 281,350 $ 278,250 $ 289,695 $ 289,364
========== ========== ========== ========== ==========
Preferred Stock outstanding at liquidation preference,
end of year (in thousands) $ 165,000 $ 165,000 $ 165,000 $ 140,000 $ 140,000
========== ========== ========== ========== ==========
Portfolio turnover 10% 15% 25% 32% 29%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,658 $ 2,705 $ 2,686 $ 3,069 $ 3,067
========== ========== ========== ========== ==========
* Based on average shares outstanding.
** 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.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Financial Highlights BlackRock MuniYield New Jersey Insured Fund, Inc.
The following per share data and ratios have been derived For the Year Ended October 31,
from information provided in the financial statements. 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of year $ 15.42 $ 15.07 $ 15.46 $ 15.25 $ 15.14
---------- ---------- ---------- ---------- ----------
Investment income--net* .96 .97 .96 1.03 1.06
Realized and unrealized gain (loss)--net (.42) .36 (.27) .21 .06
Dividends and distributions to Preferred Stock shareholders:
Investment income--net (.28) (.25) (.16) (.06) (.06)
Realized gain--net --++ -- -- -- --++
---------- ---------- ---------- ---------- ----------
Total from investment operations .26 1.08 .53 1.18 1.06
---------- ---------- ---------- ---------- ----------
Less dividends and distributions to Common Stock shareholders:
Investment income--net (.65) (.73) (.92) (.94) (.94)
Realized gain--net (.01) -- -- -- (.01)
---------- ---------- ---------- ---------- ----------
Total dividends and distributions to Common Stock shareholders (.66) (.73) (.92) (.94) (.95)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs, including adjustments,
resulting from the issuance of Preferred Stock -- -- --++++ (.03) --
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 15.02 $ 15.42 $ 15.07 $ 15.46 $ 15.25
========== ========== ========== ========== ==========
Market price per share, end of year $ 13.70 $ 14.96 $ 14.65 $ 15.16 $ 14.39
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 2.00% 7.50% 3.49% 7.99% 7.24%
========== ========== ========== ========== ==========
Based on market price per share (4.10%) 7.28% 2.60% 12.23% 6.02%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets Applicable to Common Stock
Total expense, net of reimbursement and excluding interest
expense and fees*** 1.17% 1.15% 1.16% 1.06% 1.03%
========== ========== ========== ========== ==========
Total expenses, net of reimbursement*** 1.37% 1.59% 1.52% 1.33% 1.29%
========== ========== ========== ========== ==========
Total expenses*** 1.37% 1.59% 1.52% 1.35% 1.30%
========== ========== ========== ========== ==========
Total investment income--net*** 6.30% 6.46% 6.21% 6.79% 6.89%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Stock shareholders 1.81% 1.63% 1.03% .42% .38%
========== ========== ========== ========== ==========
Investment income to Common Stock shareholders--net 4.49% 4.83% 5.18% 6.37% 6.51%
========== ========== ========== ========== ==========
Supplemental Data
Net assets applicable to Common Stock, end of year
(in thousands) $ 132,174 $ 135,767 $ 132,622 $ 135,370 $ 133,240
========== ========== ========== ========== ==========
Preferred Stock outstanding at liquidation preference,
end of year (in thousands) $ 73,500 $ 73,500 $ 73,500 $ 73,500 $ 56,000
========== ========== ========== ========== ==========
Portfolio turnover 23% 11% 29% 16% 21%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,798 $ 2,847 $ 2,804 $ 2,842 $ 3,379
========== ========== ========== ========== ==========
* Based on average shares outstanding.
** 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.
++++ Amount is less than $.01 per share.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Financial Highlights BlackRock MuniYield Pennsylvania Insured Fund
The following per share data and ratios have been derived For the Year Ended October 31,
from information provided in the financial statements. 2007 2006 2005 2004 2003
Per Share Operating Performance
Net asset value, beginning of year $ 15.89 $ 15.57 $ 16.04 $ 15.56 $ 15.34
---------- ---------- ---------- ---------- ----------
Investment income--net* 1.01 1.01 1.05 1.08 1.11
Realized and unrealized gain (loss)--net (.40) .36 (.35) .48 .16
Dividends to Preferred Shareholders from investment income--net (.32) (.27) (.19) (.08) (.07)
---------- ---------- ---------- ---------- ----------
Total from investment operations .29 1.10 .51 1.48 1.20
---------- ---------- ---------- ---------- ----------
Less dividends to Common Shareholders from investment income--net (.69) (.78) (.96) (1.00) (.98)
---------- ---------- ---------- ---------- ----------
Offering and underwriting costs, including adjustments,
resulting from the issuance of Preferred Shares -- --++ (.02) -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 15.49 $ 15.89 $ 15.57 $ 16.04 $ 15.56
========== ========== ========== ========== ==========
Market price per share, end of year $ 13.67 $ 14.60 $ 14.91 $ 15.61 $ 14.81
========== ========== ========== ========== ==========
Total Investment Return**
Based on net asset value per share 2.19% 7.52% 3.16% 10.15% 8.33%
========== ========== ========== ========== ==========
Based on market price per share (1.85%) 3.16% 1.51% 12.63% 10.07%
========== ========== ========== ========== ==========
Ratios Based on Average Net Assets Applicable to Common Shares
Total expenses, net of reimbursement and excluding interest
expense and fees*** 1.13% 1.13% 1.13% 1.05% 1.07%
========== ========== ========== ========== ==========
Total expenses, net of reimbursement*** 1.72% 1.69% 1.69% 1.32% 1.29%
========== ========== ========== ========== ==========
Total expenses*** 1.72% 1.70% 1.70% 1.33% 1.30%
========== ========== ========== ========== ==========
Total investment income--net*** 6.44% 6.49% 6.56% 6.89% 7.08%
========== ========== ========== ========== ==========
Amount of dividends to Preferred Shareholders 2.02% 1.76% 1.17% .51% .47%
========== ========== ========== ========== ==========
Investment income to Common Shareholders--net 4.42% 4.73% 5.39% 6.38% 6.61%
========== ========== ========== ========== ==========
Supplemental Data
Net assets applicable to Common Shares, end of year
(in thousands) $ 177,807 $ 182,402 $ 178,771 $ 183,877 $ 178,337
========== ========== ========== ========== ==========
Preferred Shares outstanding at liquidation preference,
end of year (in thousands) $ 102,000 $ 102,000 $ 102,000 $ 88,000 $ 88,000
========== ========== ========== ========== ==========
Portfolio turnover 35% 25% 42% 41% 41%
========== ========== ========== ========== ==========
Leverage
Asset coverage per $1,000 $ 2,743 $ 2,788 $ 2,753 $ 3,090 $ 3,027
========== ========== ========== ========== ==========
* Based on average shares outstanding.
** 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.
See Notes to Financial Statements.
ANNUAL REPORT OCTOBER 31, 2007
Notes to Financial Statements
1. Significant Accounting Policies:
BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield Michigan Insured
Fund, Inc., BlackRock MuniYield New Jersey Insured Fund, Inc. and BlackRock
MuniYield Pennsylvania Insured Fund (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. The Funds determine
and make available for publication the net asset value of their Common
Stock/Shares on a daily basis. The Funds' Common Stock/Shares are listed on
the New York Stock Exchange under the symbol MFT for BlackRock MuniYield
Florida Insured Fund, MIY for BlackRock MuniYield Michigan Insured Fund, Inc.,
MJI for BlackRock MuniYield New Jersey Insured Fund, Inc. and MPA for
BlackRock MuniYield Pennsylvania Insured Fund. 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 markets 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 each Fund's Board of Directors or Trustees. Such valuations and
procedures are reviewed periodically by each Fund's Board of Directors or
Trustees. Financial futures contracts and options thereon, which are traded on
exchanges, are valued at their closing prices as of the close of such
exchanges. Effective September 4, 2007, exchange-traded options are valued at
the mean between the last bid and ask prices at the close of the options
market in which the options trade and previously were valued at the last sales
price as of the close of options trading on applicable exchanges. 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.
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 each Fund's Board of Directors or
Trustees. Such valuations and procedures will be reviewed periodically by each
Fund's Board of Directors or Trustees.
(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, its exposure to interest rate movements and movements in
the securities markets. Losses may arise due to changes in the value of the
contract due to an unfavorable change in the price of the underlying security
or index, or if the counterparty does not perform under the contract. The
counterparty for certain instruments may pledge cash or securities as
collateral.
* Financial futures contracts--Each Fund may purchase or sell financial
futures contracts and options on such financial futures contracts. Financial
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).
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.
* Swaps--Each Fund may enter into swap agreements, which are OTC contracts in
which the Fund and a counterparty agree to make periodic net payments on a
specified notional amount. The net payments can be made for a set period of
time or may be triggered by a predetermined credit event. The net periodic
payments may be based on a fixed or variable interest rate; the change in
market value of a specified security, basket of securities, or index; or the
return generated by a security. These periodic payments received or made by
the Fund are recorded in the accompanying Statement of Operations as realized
gains or losses, respectively. Gains or losses are also realized upon
termination of the swap agreements. Swaps are marked-to-market daily and
changes in value are recorded as unrealized appreciation (depreciation). Risks
include changes in the returns of the underlying instruments, failure of the
counterparties to perform under the contracts' terms and the possible lack of
liquidity with respect to the swap agreements.
ANNUAL REPORT OCTOBER 31, 2007
Notes to Financial Statements (continued)
(c) Municipal bonds held in trust--The Funds invest in leveraged residual
certificates ("TOB Residuals") issued by tender option bond trusts ("TOBs"). A
TOB is established by a third party sponsor forming a special purpose entity,
into which the Fund, or an agent on behalf of the Fund, transfers municipal
securities. A TOB typically issues two classes of beneficial interests: short-
term floating rate certificates, which are sold to third party investors, and
residual certificates, which are generally issued to the Fund which made the
transfer or to affiliates of the Fund. The Funds' transfers of the municipal
securities to a TOB do not qualify for sale treatment under Statement of
Financial Accounting Standards No. 140 "Accounting for Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities," therefore the
municipal securities deposited into a TOB are presented in the Funds'
schedules of investments and the proceeds from the transactions are reported
as a liability for trust certificates of the Funds. Similarly, proceeds from
residual certificates issued to affiliates, if any, from the transaction are
included in the liability for trust certificates. Interest income from the
underlying security is recorded by the Funds on an accrual basis. Interest
expense incurred on the secured borrowing and other expenses related to
remarketing, administration and trustee services to a TOB are reported as
expenses of the Fund. The floating rate certificates have interest rates that
generally reset weekly and their holders have the option to tender
certificates to the TOB for redemption at par at each reset date. The residual
interests held by the Funds include the right of the Funds (1) to cause the
holders of a proportional share of the floating rate certificates to tender
their certificates at par, and (2) to transfer a corresponding share of the
municipal securities from the TOB to the Funds. At October 31, 2007, the
aggregate value of the underlying municipal securities transferred to TOBs and
the liability for trust certificates were:
Underlying
Municipal
Liability for Range of Bonds
Trust Interest Transferred
Certificates Rates to TOBs
BlackRock MuniYield
Florida Insured 3.68% -
Fund $11,680,000 3.76% $24,862,700
Blackrock MuniYield
Michigan Insured 3.69% -
Fund, Inc. $28,817,500 3.76% $60,735,982
BlackRock MuniYield
New Jersey Insured
Fund, Inc. $ 2,500,000 3.70% $ 5,244,325
BlackRock MuniYield
Pennsylvania 3.58% -
Insured Fund $23,750,000 3.72% $51,244,375
Financial transactions executed through TOBs generally will under perform the
market for fixed rate municipal bonds in a rising interest rate environment,
but tend to outperform the market for fixed rate bonds when interest rates
decline or remain relatively stable. Should short-term interest rates rise,
the Funds' investment in TOB Residuals likely will adversely affect the Funds'
investment income-net and distributions to shareholders. Fluctuations in the
market value of municipal securities deposited into the TOB may adversely
affect the Funds' net asset values per share.
While the Funds' investment policies and restrictions expressly permit
investments in inverse floating rate securities such as TOB Residuals, they
generally do not allow the Funds to borrow money for purposes of making
investments. The Funds' management believes that the Funds' restrictions on
borrowings do not apply to the secured borrowings deemed to have occurred for
accounting purposes.
(d) Bank overdraft--MuniYield Pennsylvania Insured Fund recorded a bank
overdraft which resulted from management estimates of available cash.
(e) 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.
(f) 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.
(g) Dividends and distributions--Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
(h) Offering expenses--Direct expenses relating to the public offering of
certain Fund's Preferred Stock/Shares were charged to Common Stock/Shares
capital. Any adjustments to estimates of offering costs were recorded to
capital.
(i) Recent accounting pronouncements--In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes--an interpretation of FASB Statement No. 109."
FIN 48 prescribes the minimum recognition threshold a tax position must meet
in connection with accounting for uncertainties in income tax positions taken
or expected to be taken by an entity, including mutual funds, before being
measured and recognized in the financial statements. Adoption of FIN 48 is
required for the last net asset value calculation in the first required
financial statement reporting period for fiscal years beginning after December
15, 2006. The impact on the Funds' financial statements, if any, is currently
being assessed.
ANNUAL REPORT OCTOBER 31, 2007
Notes to Financial Statements (continued)
In September 2006, Statement of Financial Accounting Standards No. 157, "Fair
Value Measurements" ("FAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. At this time, management is evaluating the implication of FAS
157 and its impact on the Funds' financial statements, if any, has not been
determined.
In addition, in February 2007, Statement of Financial Accounting Standards No.
159, "The Fair Value Option for Financial Assets and Financial Liabilities"
("FAS 159"), was issued and is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also
elects to apply the provisions of FAS 157. FAS 159 permits entities to choose
to measure many financial instruments and certain other items at fair value
that are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. At this time, management is
evaluating the implications of FAS 159 and its impact on the Funds' financial
statements, if any, has not been determined.
(j) Reclassifications--U.S. generally accepted accounting principles require
that certain components of net assets be adjusted to reflect permanent
differences between financial and tax reporting. Accordingly, the current
year's permanent book/tax differences have been reclassified as follows:
BlackRock MuniYield New Jersey Insured Fund, Inc.
$13,950 has been reclassified between undistributed net investment income and
accumulated net realized capital losses as a result of permanent differences
attributable to amortization methods on fixed income securities. This
reclassification has no effect on net assets or net asset values per share.
BlackRock MuniYield Pennsylvania Insured Fund
$39,461 has been reclassified between undistributed net investment income and
accumulated net realized capital losses as a result of permanent differences
attributable to amortization methods on fixed income securities. This
reclassification has no effect on net assets or net asset values per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
Each Fund has entered into an Investment Advisory Agreement with BlackRock
Advisors, LLC (the "Manager"), an indirect, wholly owned subsidiary of
BlackRock, Inc. Merrill Lynch & Co., Inc. ("Merrill Lynch") and The PNC
Financial Services Group, Inc. are principal owners of BlackRock, Inc.
The Manager 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 daily net
assets, including proceeds from the issuance of Preferred Stock/Shares. The
Manager has agreed to reimburse its management fee by the amount of management
fees each Fund pays to the Manager indirectly through its investment(s)
described below:
Reimbursement for
the Year Ended
Investment October 31, 2007
BlackRock MuniYield CMA Florida
Florida Insured Municipal
Fund Money Fund $15,883
BlackRock MuniYield CMA Michigan
Michigan Insured Municipal
Fund, Inc. Money Fund $22,170
BlackRock MuniYield CMA New Jersey
New Jersey Insured Municipal
Fund, Inc. Money Fund $ 4,167
BlackRock MuniYield CMA Pennsylvania
Pennsylvania Insured Municipal
Fund Money Fund $ 3,253
In addition, the Manager has entered into a sub-advisory agreement with
BlackRock Investment Management, LLC, an affiliate of the Manager, under which
the Manager pays the subadviser for services it provides a monthly fee at an
annual rate that is a percentage of the management fee paid by the Funds to
the Manager.
Each of the Funds reimbursed the Manager for certain accounting services. The
reimbursements were as follows:
Reimbursement
BlackRock MuniYield Florida Insured Fund $3,646
BlackRock MuniYield Michigan Insured Fund, Inc. $8,234
BlackRock MuniYield New Jersey Insured Fund, Inc. $3,862
BlackRock MuniYield Pennsylvania Insured Fund $5,279
Certain officers and/or directors or trustees of each Fund are officers and/or
directors of BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
year ended October 31, 2007 were as follows:
ANNUAL REPORT OCTOBER 31, 2007
Notes to Financial Statements (continued)
Total Total
Purchases Sales
BlackRock MuniYield
Florida Insured Fund $ 59,827,933 $ 53,713,458
BlackRock MuniYield
Michigan Insured Fund, Inc. $ 48,667,495 $ 57,169,408
BlackRock MuniYield New
Jersey Insured Fund, Inc. $ 49,132,444 $ 60,752,829
BlackRock MuniYield
Pennsylvania Insured Fund $108,777,713 $110,104,768
4. Stock/Share Transactions:
BlackRock MuniYield Florida Insured Fund and BlackRock MuniYield Pennsylvania
Insured Fund are authorized to issue an unlimited number of Common Shares of
beneficial interest, par value $.10 per share together with 1,000,000
Preferred Shares of beneficial interest, par value of $.05 per share. Each
Fund's Board of Trustees is authorized, however, to reclassify any unissued
shares of capital stock without approval of the holders of Common Shares.
BlackRock MuniYield Michigan Insured Fund, Inc. and BlackRock MuniYield New
Jersey Insured Fund, Inc. are authorized to issue 200,000,000 shares of
capital stock, including Preferred Stock, par value $.10 per share or $.05 per
share, all of which were initially classified as Common Stock. Each Fund's
Board of Directors is authorized, however, to reclassify any unissued shares
of capital stock without approval of the holders of Common Stock.
Common Stock/Shares
BlackRock MuniYield Florida Insured Fund
Shares issued and outstanding during the year ended October 31, 2007 remained
constant. Shares issued and outstanding for the year ended October 31, 2006
increased by 1,851 as a result of dividend reinvestment.
BlackRock MuniYield Michigan Insured Fund, Inc.
Shares issued and outstanding during the year ended October 31, 2007 remained
constant. Shares issued and outstanding for the year ended October 31, 2006
increased by 40,195 as a result of dividend reinvestment.
BlackRock MuniYield New Jersey Insured Fund, Inc.
Shares issued and outstanding during the years ended October 31, 2007 and
October 31, 2006 remained constant.
BlackRock MuniYield Pennsylvania Insured Fund
Shares issued and outstanding during the years ended October 31, 2007 and
October 31, 2006 remained constant.
Preferred Stock/Shares
Auction Market Preferred Stock/Shares are redeemable Preferred Stock/Shares of
the respective 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.
BlackRock MuniYield Florida Insured Fund and BlackRock MuniYield Pennsylvania
Insured Fund have a par value of $.05 per share. BlackRock MuniYield Michigan
Insured Fund, Inc. has a par value of $.05 per share on Series A Shares,
Series B Shares and Series C Shares, and $.10 per share on Series D Shares.
BlackRock MuniYield New Jersey Insured Fund, Inc. has a par value of $.05 per
share for Series A Shares and $.10 per share for Series B Shares. The yields
in effect at October 31, 2007 were as follows:
BlackRock BlackRock
MuniYield MuniYield
Florida Michigan
Insured Insured
Fund Fund, Inc.
Series A 3.53% 3.53%
Series B 3.50% 3.50%
Series C -- 3.58%
Series D -- 3.55%
BlackRock BlackRock
MuniYield MuniYield
New Jersey Pennsylvania
Insured Insured
Fund, Inc. Fund
Series A 3.20% 3.48%
Series B 3.20% 2.90%
Series C -- 3.00%
Each Fund pays commissions to certain broker-dealers at the end of each
auction at an annual rate ranging from .25% to .375%, calculated on the
proceeds of each auction. For the year ended October 31, 2007, Merrill Lynch,
Pierce, Fenner & Smith Incorporated, a wholly owned subsidiary of Merrill
Lynch, earned commissions as follows:
Commissions
BlackRock MuniYield Florida Insured Fund $ 115,812
BlackRock MuniYield Michigan Insured Fund, Inc. $ 186,966
BlackRock MuniYield New Jersey Insured Fund, Inc. $ 105,471
BlackRock MuniYield Pennsylvania Insured Fund $ 147,665
5. Distribution to Shareholders:
Each Fund paid a tax-exempt income dividend to holders of Common Stock/Shares
on December 3, 2007 to stock/shareholders of record on November 15, 2007. The
amount of the tax-exempt income dividend was as follows:
Per Share Amount
BlackRock MuniYield Florida Insured Fund $.056000
BlackRock MuniYield Michigan Insured Fund, Inc. $.059000
BlackRock MuniYield New Jersey Insured Fund, Inc. $.054000
BlackRock MuniYield Pennsylvania Insured Fund $.056000
ANNUAL REPORT OCTOBER 31, 2007
Notes to Financial Statements (continued)
BlackRock MuniYield Florida Insured Fund
The tax character of distributions paid during the fiscal years ended
October 31, 2007 and October 31, 2006 was as follows:
10/31/2007 10/31/2006
Distributions paid from:
Tax-exempt income--net $ 8,353,499 $ 8,662,428
--------------- ---------------
Total distributions $ 8,353,499 $ 8,662,428
=============== ===============
As of October 31, 2007, the components of accumulated earnings on a
tax basis were as follows:
Undistributed tax-exempt income--net $ 208,645
Undistributed long-term capital gains--net --
---------------
Total undistributed earnings--net 208,645
Capital loss carryforward (2,587,527)*
Unrealized gains--net 5,530,825**
---------------
Total accumulated earnings--net $ 3,151,943
===============
* On October 31, 2007, the Fund had a net capital loss carryforward of
$2,587,527, of which $505,802 expires in 2008 and $2,081,725 expires
in 2012. This amount will be available to offset like amounts of any
future taxable gains.
** The difference between book-basis and tax-basis net unrealized gain is
attributable primarily to the tax deferral of losses on wash sales, the
tax deferral of losses on straddles, the difference between book and tax
amortization methods for premiums and discounts on fixed income securities
and the difference between the book and tax treatment of residual interest
in tender option bonds.
BlackRock MuniYield Michigan Insured Fund, Inc.
The tax character of distributions paid during the fiscal years ended
October 31, 2007 and October 31, 2006 was as follows:
10/31/2007 10/31/2006
Distributions paid from:
Tax-exempt income--net $ 18,813,492 $ 20,420,247
--------------- ---------------
Total distributions $ 18,813,492 $ 20,420,247
=============== ===============
As of October 31, 2007, the components of accumulated earnings on a tax
basis were as follows:
Undistributed tax-exempt income--net $ 1,008,344
Undistributed long-term capital gains--net --
---------------
Total undistributed earnings--net 1,008,344
Capital loss carryforward (11,763,462)*
Unrealized gains--net 13,740,647**
---------------
Total accumulated earnings--net $ 2,985,529
===============
* On October 31, 2007, the Fund had a net capital loss carryforward of
$11,763,462 of which $6,685,590 expires in 2008, $1,124,652 expires in
2010 and $3,953,220 expires in 2012. This amount will be available to
offset like amounts of any future taxable gains.
** The difference between book-basis and tax-basis net unrealized gain is
attributable primarily to the tax deferral of losses on wash sales, the
tax deferral of losses on straddles, the difference between book and tax
amortization methods for premiums and discounts on fixed income securities
and the difference between the book and tax treatment of residual interests
in tender option bonds.
BlackRock MuniYield New Jersey Insured Fund, Inc.
The tax character of distributions paid during the fiscal years ended
October 31, 2007 and October 31, 2006 was as follows:
10/31/2007 10/31/2006
Distributions paid from:
Tax-exempt income--net $ 8,168,618 $ 8,554,371
Ordinary income--net 53,500 --
Long-term capital gain--net 41,022 --
--------------- ---------------
Total distributions $ 8,263,140 $ 8,554,371
=============== ===============
As of October 31, 2007, the components of accumulated earnings on a
tax basis were as follows:
Undistributed tax-exempt income--net $ 1,030,534
Undistributed long-term capital gains--net 140,032
Undistributed ordinary income--net 13,936
---------------
Total undistributed earnings--net 1,184,502
Capital loss carryforward --
Unrealized gains--net 6,852,688*
---------------
Total accumulated earnings--net $ 8,037,190
===============
* The difference between book-basis and tax basis net unrealized gain is
attributable primarily to the tax deferral of losses on straddles, the
difference between book and tax amortization methods for premiums and
discounts on fixed income securities and the difference between the book
and tax treatment of residual interests in tender option bonds.
BlackRock MuniYield Pennsylvania Insured Fund
The tax character of distributions paid during the fiscal years ended
October 31, 2007 and October 31, 2006 was as follows:
10/31/2007 10/31/2006
Distributions paid from:
Tax-exempt income--net $ 11,548,821 $ 12,133,186
--------------- ---------------
Total distributions $ 11,548,821 $ 12,133,186
=============== ===============
As of October 31, 2007, the components of accumulated earnings on a
tax basis
were as follows:
Undistributed tax-exempt income--net $ 377,444
Undistributed long-term capital gains--net --
---------------
Total undistributed earnings--net 377,444
Capital loss carryforward (1,135,911)*
Unrealized gains--net 7,483,482**
---------------
Total accumulated earnings--net $ 6,725,015
===============
* On October 31, 2007, the Fund had a net capital loss carryforward of
$1,135,911, all of which expires in 2008. This amount will be available
to offset like amounts of any future taxable gains.
** The difference between book-basis and tax-basis net unrealized gain is
attributable primarily to the tax deferral of losses on wash sales, the
tax deferral of losses on straddles, the difference between book and tax
amortization methods for premiums and discounts on fixed income securities
and the difference between the book and tax treatment of residual interests
in tender option bonds.
ANNUAL REPORT OCTOBER 31, 2007
Notes to Financial Statements (concluded)
6. Restatement Information (For BlackRock Muniyield Michigan Insured
Fund, Inc):
Subsequent to the initial issuance of BlackRock MuniYield Michigan Insured
Fund, Inc. October 31,2006 financial statements, the Fund determined that the
criteria for sale accounting in FAS 140 had not been met for certain transfers
of municipal bonds and that these transfers should have been accounted for as
secured borrowings rather than as sales. As a result, certain financial
highlights for each of the three years in the period ended October 31, 2005
have been restated to give effect to recording the transfers of the municipal
bonds as secured borrowings, including recording interest on the bonds as
interest income and interest on the secured borrowings as interest expense.
Financial Highlights for BlackRock MuniYield Michigan Insured Fund, Inc.
For the Years Ended October 31, 2005, 2004 and 2003
2005 2004 2003
Previously Previously Previously
Reported Restated Reported Restated Reported Restated
Total expenses, net of waiver and reimbursement*** 1.10% 1.42% 1.00% 1.19% 1.01% 1.20%
Total expenses*** 1.10% 1.42% 1.02% 1.22% 1.03% 1.21%
Portfolio turnover 30.16% 25% 36.63% 32% 33.39% 29%
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
ANNUAL REPORT OCTOBER 31, 2007
Report of Independent Registered Public Accounting Firm
To the Shareholders and Boards of Directors or Trustees
of BlackRock MuniYield Florida Insured Fund, BlackRock
MuniYield Michigan Insured Fund, Inc., BlackRock
MuniYield New Jersey Insured Fund, Inc. and BlackRock
MuniYield Pennsylvania Insured Fund:
We have audited each of the accompanying statements of net assets, including
the schedules of investments, of BlackRock MuniYield Florida Insured Fund,
BlackRock MuniYield New Jersey Insured Fund, Inc., and BlackRock MuniYield
Pennsylvania Insured Fund, as of October 31, 2007, and the related statements
of operations for the year then ended, the statements of changes in net assets
for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended for each of the
respective funds. We have also audited the accompanying statement of net
assets, including the schedule of investments, of BlackRock MuniYield Michigan
Insured Fund, Inc. as of October 31, 2007, and the related statement of
operations for the year then ended, the statements of changes in net assets
and the financial highlights for each of the two years in the period then
ended. The above-referenced funds are hereinafter referred to collectively as
the "Funds". These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on the financial statements and financial highlights of each of the
funds based on our audits. The financial highlights of BlackRock MuniYield
Michigan Insured Fund, Inc., for each of the three years in the period ended
October 31, 2005 (before the restatement described in Note 6), were audited by
other auditors whose report, dated December 9, 2005, expressed a qualified
opinion on those financial highlights because of the errors described in
Note 6.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. The Funds are not required to have, nor were we engaged to
perform, audits of their internal control over financial reporting. Our audits
included consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Funds' internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. Our procedures
included confirmation of securities owned as of October 31, 2007 by
correspondence with the custodian and brokers; where replies were not received
from brokers, we performed other auditing procedures. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights of BlackRock
MuniYield Florida Insured Fund, BlackRock MuniYield New Jersey Insured Fund,
Inc. and BlackRock MuniYield Pennsylvania Insured Fund referred to above
present fairly, in all material respects, the respective financial positions
of each of those funds as of October 31, 2007, the results of their operations
for the year then ended, the changes in their net assets for each of the two
years in the period then ended and their financial highlights for each of the
five years in the period then ended, in conformity with accounting principles
generally accepted in the United States of America. Additionally, in our
opinion, the financial statements and financial highlights of BlackRock
MuniYield Michigan Insured Fund, Inc. as of and for the year ended October 31,
2007, present fairly, in all material respects, its financial position as of
October 31, 2007, and the results of its operations for the year then ended
and the changes in its net assets and its financial highlights for each of the
two years in the period then ended, in conformity with accounting principles
generally accepted in the United States of America.
We also have audited the adjustments, applied by management, to restate
certain financial highlights of BlackRock MuniYield Michigan Insured Fund,
Inc. (the "Michigan Insured Fund") for each of the three years in the period
ended October 31, 2005, to correct the errors described in Note 6. These
adjustments are the responsibility of the Michigan Insured Fund's management.
The audit procedures that we performed with respect to the adjustments
included such tests as we considered necessary in the circumstances and were
designed to obtain reasonable assurance about whether the adjustments are
appropriate and have been properly applied, in all material respects, to the
restated financial highlights of the Michigan Insured Fund for each of the
three years in the period ended October 31, 2005. We did not perform any audit
procedures designed to assess whether any additional adjustments to such
financial highlights might be necessary in order for such financial highlights
to be presented in conformity with generally accepted accounting principles.
In our opinion, the adjustments to Michigan Insured Fund's financial
highlights for each of the three years in the period ended October 31, 2005,
described in Note 6 are appropriate and have been properly applied, in all
material respects. However, we were not engaged to audit, review, or apply any
procedures to Michigan Insured Fund's financial highlights other than with
respect to the adjustments described in Note 6 and, accordingly, we do not
express an opinion or any other form of assurance on such financial
highlights.
Deloitte & Touche LLP
Princeton, New Jersey
December 21, 2007
ANNUAL REPORT OCTOBER 31, 2007
Important Tax Information
All of the net investment income distributions paid by BlackRock MuniYield
Florida Insured Fund, BlackRock MuniYield New Jersey Insured Fund, Inc.,
BlackRock MuniYield Michigan Insured Fund, Inc. and BlackRock MuniYield
Pennsylvania Insured Fund during the taxable year ended October 31, 2007
qualify as tax-exempt interest dividends for federal income tax purposes.
Additionally, the following table summarizes the taxable per share
distributions paid by BlackRock MuniYield New Jersey Insured Fund, Inc. during
the year:
Payable Ordinary Long-Term
Date Income Capital Gains
Common Stock Shareholders 12/28/2006 $.004549 $.003488
Preferred Stock Shareholders:
Series A 12/18/2006 $4.59 $3.52
Series B 12/15/2006 $4.54 $3.48
ANNUAL REPORT OCTOBER 31, 2007
The Benefits and Risks of Leveraging
The Funds utilize leverage to seek to enhance the yield and net asset value of
their Common Stock or Common Shares. However, these objectives cannot be
achieved in all interest rate environments. To leverage, the Funds issue
Preferred Stock or Shares, which pay dividends at prevailing short-term
interest rates, and invests the proceeds in long-term municipal bonds. The
interest earned on these investments, net of dividends to Preferred Stock or
Shares, is paid to Common Stock Shareholders or Common Shareholders in the
form of dividends, and the value of these portfolio holdings is reflected in
the per share net asset value of the Fund's Common Stock or Shares. However,
in order to benefit Common Stock Shareholders or Common Shareholders, the
yield curve must be positively sloped; that is, short-term interest rates must
be lower than long-term interest rates. At the same time, a period of
generally declining interest rates will benefit Common Stock Shareholders or
Common Shareholders. If either of these conditions change, then the risks of
leveraging will begin to outweigh the benefits.
To illustrate these concepts, assume a fund's Common Stock or Shares
capitalization of $100 million and the issuance of Preferred Stock or Shares
for an additional $50 million, creating a total value of $150 million
available for investment in long-term municipal bonds. If prevailing short-
term interest rates are approximately 3% and long-term interest rates are
approximately 6%, the yield curve has a strongly positive slope. The fund pays
dividends on the $50 million of Preferred Stock or Shares based on the lower
short-term interest rates. At the same time, the fund's total portfolio of
$150 million earns the income based on long-term interest rates.
In this case, the dividends paid to Preferred Stock Shareholders or Preferred
Shareholders are significantly lower than the income earned on the fund's long-
term investments, and therefore the Common Stock Shareholders or Common
Shareholders are the beneficiaries of the incremental yield. However, if short-
term interest rates rise, narrowing the differential between short-term and
long-term interest rates, the incremental yield pickup on the Common Stock or
Shares will be reduced or eliminated completely. At the same time, the market
value of the fund's Common Stock or Shares (that is, its price as listed on
the New York Stock Exchange) may, as a result, decline. Furthermore, if long-
term interest rates rise, the Common Stock's or Shares' net asset value will
reflect the full decline in the price of the portfolio's investments, since
the value of the fund's Preferred Stock or Shares does not fluctuate. In
addition to the decline in net asset value, the market value of the fund's
Common Stock or Shares may also decline.
As of October 31, 2007, BlackRock MuniYield Florida Insured Fund, BlackRock
MuniYield Michigan Insured Fund, Inc., BlackRock MuniYield New Jersey Insured
Fund, Inc. and BlackRock MuniYield Pennsylvania Insured Fund had leverage
amounts, due to Auction Market Preferred Stock or Shares, of 37.20%, 37.63%,
35.74% and 36.46% of total net assets, respectively, before the deduction of
Preferred Stock or Shares.
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. (See Note
1(c) to Financial Statements for details of municipal bonds held in trust.)
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 obligation to pay the other party to the agreement.
ANNUAL REPORT OCTOBER 31, 2007
Automatic Dividend Reinvestment Plan
How the Plan Works--The Funds offer a Dividend Reinvestment Plan (the "Plan")
under which income and capital gains dividends paid by each Fund are
automatically reinvested in additional shares of Common Stock or Shares of
each Fund. The Plan is administered on behalf of the shareholders by The Bank
of New York Mellon for BlackRock MuniYield Florida Insured Fund, BlackRock
MuniYield Michigan Insured Fund, Inc. and BlackRock MuniYield New Jersey
Insured Fund, Inc. and Computershare Trust Company, N.A. for BlackRock
MuniYield Pennsylvania Insured Fund (individually, the "Plan Agent" or
together, the "Plan Agents"). Under the Plan, whenever the Funds declare a
dividend, participants in the Plan will receive the equivalent in shares of
Common Stock or Shares of each Fund. The Plan Agents will acquire the shares
for the participant's account either (i) through receipt of additional
unissued but authorized shares of each Fund ("newly issued shares") or (ii) by
purchase of outstanding shares of Common Stock or Shares on the open market on
the New York Stock Exchange or elsewhere. If, on the dividend payment date,
each Fund's net asset value per share is equal to or less than the market
price per share plus estimated brokerage commissions (a condition often
referred to as a "market premium"), the Plan Agents will invest the dividend
amount in newly issued shares. If a Fund's net asset value per share is
greater than the market price per share (a condition often referred to as a
"market discount"), the Plan Agents will invest the dividend amount by
purchasing on the open market additional shares. If the Plan Agents are unable
to invest the full dividend amount in open market purchases, or if the market
discount shifts to a market premium during the purchase period, the Plan
Agents will invest any uninvested portion in newly issued shares. The shares
acquired are credited to each shareholder's account. The amount credited is
determined by dividing the dollar amount of the dividend by either (i) when
the shares are newly issued, the net asset value per share on the date the
shares are issued or (ii) when shares are purchased in the open market, the
average purchase price per share.
Participation in the Plan--Participation in the Plan is automatic, that is, a
shareholder is automatically enrolled in the Plan when he or she purchases
shares of Common Stock or Shares of the Funds unless the shareholder
specifically elects not to participate in the Plan. Shareholders who elect not
to participate will receive all dividend distributions in cash. Shareholders
who do not wish to participate in the Plan must advise their Plan Agent in
writing (at the address set forth below) that they elect not to participate in
the Plan. Participation in the Plan is completely voluntary and may be
terminated or resumed at any time without penalty by writing to the Plan Agent.
Benefits of the Plan--The Plan provides an easy, convenient way for
shareholders to make additional, regular investments in the Funds. The Plan
promotes a long-term strategy of investing at a lower cost. All shares
acquired pursuant to the Plan receive voting rights. In addition, if the
market price plus commissions of each Fund's shares is above the net asset
value, participants in the Plan will receive shares of the Funds for less than
they could otherwise purchase them and with a cash value greater than the
value of any cash distribution they would have received. However, there may
not be enough shares available in the market to make distributions in shares
at prices below the net asset value. Also, since each Fund does not redeem
shares, the price on resale may be more or less than the net asset value.
Plan Fees--There are no enrollment fees or brokerage fees for participating in
the Plan. The Plan Agents' service fees for handling the reinvestment of
distributions are paid for by the Funds. However, brokerage commissions may be
incurred when the Funds purchase shares on the open market and shareholders
will pay a pro rata share of any such commissions.
Tax Implications--The automatic reinvestment of dividends and distributions
will not relieve participants of any federal, state or local income tax that
may be payable (or required to be withheld) on such dividends. Therefore,
income and capital gains may still be realized even though shareholders do not
receive cash. The value of shares acquired pursuant to the Plan will generally
be excluded from gross income to the extent that the cash amount reinvested
would be excluded from gross income. If, when the Funds' shares are trading at
a market premium, the Funds issue shares pursuant to the Plan that have a
greater fair market value than the amount of cash reinvested, it is possible
that all or a portion of the discount from the market value (which may not
exceed 5% of the fair market value of each Fund's shares) could be viewed as a
taxable distribution. If the discount is viewed as a taxable distribution, it
is also possible that the taxable character of this discount would be allocable
to all the shareholders, including shareholders who do not participate in the
Plan. Thus, shareholders who do not participate in the Plan might be required
to report as ordinary income a portion of their distributions equal to their
allocable share of the discount.
Contact Information--All correspondence concerning the Plan, including any
questions about the Plan, should be directed to the Plan Agent at The Bank
of New York Mellon, Church Street Station, P.O. Box 11258, New York, NY
10286-1258, Telephone: 800-432-8224 for BlackRock MuniYield Florida Insured
Fund, BlackRock MuniYield Michigan Insured Fund, Inc. and BlackRock MuniYield
New Jersey Insured Fund, Inc. and Computershare Trust Company, N.A., P.O. Box
43010, Providence, RI 02940-3010, Telephone: 800-426-4523 for BlackRock
MuniYield Pennsylvania Insured Fund.
ANNUAL REPORT OCTOBER 31, 2007
Officers and Directors or Trustees as of October 31, 2007
Number of
Funds and
Portfolios in Other Public
Fund Complex Directorships
Position(s) Length of Overseen by Held by
Name, Address Held with Time Director or Director or
and Year of Birth Funds Served Principal Occupation(s) During Past 5 Years Trustee Trustee
Interested Director or Trustee
Robert C. Doll, Jr.* Fund 2005 to Vice Chairman and Director of BlackRock, Inc., 120 Funds None
P.O. Box 9011 President 2007 Global Chief Investment Officer for Equities, 161 Portfolios
Princeton, NJ and Director Chairman of the BlackRock Retail Operating
08543-9011 or Trustee Committee, and member of the BlackRock Executive
1954 Committee since 2006; President of the funds
advised by Merrill Lynch Investment Managers, L.P.
("MLIM") and its affiliates ("MLIM/FAM-advised
funds") from 2005 to 2006 and Chief Investment
Officer thereof from 2001 to 2006; President of
MLIM and Fund Asset Management, L.P. ("FAM")
from 2001 to 2006; Co-Head (Americas Region)
thereof from 2000 to 2001 and Senior Vice President
from 1999 to 2001; President and Director of
Princeton Services, Inc. ("Princeton Services")
and President of Princeton Administrators, L.P.
("Princeton Administrators") from 2001 to 2006;
Chief Investment Officer of OppenheimerFunds, Inc.
in 1999 and Executive Vice President thereof
from 1991 to 1999.
* Mr. Doll is a director, trustee or member of an advisory board of certain other
investment companies for which BlackRock Advisors, LLC and its affiliates act as
investment adviser. Mr. Doll is an "interested person," as defined in the Investment
Company Act, of the Fund based on his positions with BlackRock, Inc. and its
affiliates. Directors or Trustees serve until their resignation, removal or death, or
until December 31 of the year in which they turn 72. As Fund President, Mr. Doll
serves at the pleasure of the Boards of Directors or Trustees.
ANNUAL REPORT OCTOBER 31, 2007
Officers and Directors or Trustees as of October 31, 2007 (continued)
Number of
Funds and
Portfolios in Other Public
Fund Complex Directorships
Position(s) Length of Overseen by Held by
Name, Address Held with Time Director or Director or
and Year of Birth Funds Served Principal Occupation(s) During Past 5 Years Trustee Trustee
Independent Directors or Trustees*
Donald W. Burton Director or 2002 to Managing General Partner of The Burton 21 Funds Knology, Inc.
P.O. Box 9095 Trustee 2007 Partnership, Limited Partnership (an investment 32 Portfolios (telecommunica-
Princeton, NJ partnership) since 1979; Managing General Partner tions); Capital
08543-9095 of The South Atlantic Venture Funds since 1983; Southwest
1944 Member of the Investment Advisory Council of the (financial)
Florida State Board of Administration since 2001.
John Francis O'Brien Director or 2005 to President and Chief Executive Officer of 21 Funds Cabot Corporation
P.O. Box 9095 Trustee 2007 Allmerica Financial Corporation (financial 32 Portfolios (chemicals), LKQ
Princeton, NJ services holding company) from 1995 to 2002 and Corporation
08543-9095 Director from 1995 to 2003; President of Allmerica (auto parts
1943 Investment Management Co., Inc. (investment manufacturing)
adviser) from 1989 to 2002, Director from 1989 to and TJX
2002 and Chairman of the Board from 1989 to 1990; Companies,
President, Chief Executive Officer and Director Inc. (retailer)
of First Allmerica Financial Life Insurance
Company from 1989 to 2002 and Director of various
other Allmerica Financial companies until 2002;
Director from 1989 to 2006, Member of the Governance
Nominating Committee from 2004 to 2006, Member of the
Compensation Committee from 1989 to 2006 and Member of
the Audit Committee from 1990 to 2004 of ABIOMED;
Director, Member of the Governance and Nomination
Committee and Member of the Audit Committee of Cabot
Corporation since 1990; Director and Member of the
Audit Committee and Compensation Committee of LKQ
Corporation since 2003; Lead Director of TJX Companies,
Inc. since 1996; Trustee of the Woods Hole Oceanographic
Institute since 2003. Director, Ameresco, Inc. since
2006. Director, Boston Lyric Opera since 2002.
David H. Walsh Director or 2003 to Director, Ruckleshaus Institute and Haub School 21 Funds None
P.O. Box 9095 Trustee 2007 of Natural Resources at the University of 32 Portfolios
Princeton, NJ Wyoming since 2006; Consultant with Putnam
08543-9095 Investments from 1993 to 2003, and employed in
1941 various capacities therewith from 1973 to 1992;
Director, Massachusetts Audubon Society from 1990
to 1997; Director, The National Audubon Society
from 1998 to 2005; Director, The American Museum
of Fly Fishing since 1997.
Fred G. Weiss** Director or 1998 to Managing Director of FGW Associates since 1997; 21 Funds Watson Pharmaceu-
P.O. Box 9095 Trustee 2007 Board member of certain BlackRock-advised funds 32 Portfolios ticals, Inc.
Princeton, NJ since 1998; Vice President, Planning, Investment (pharmaceutical
08543-9095 and Development of Warner Lambert Co. from 1979 to company)
1941 1997; Director of Michael J. Fox Foundation for
Parkinson's Research since 2000; Director, Watson
Pharmaceutical, Inc. (pharmaceutical company)
since 1999; Director of Osmotica Holdings Corp.
(a drug delivery technology company) since 2003;
Director of KIMC Investments, Inc. dba MedVance
Institute (a chain of for-profit allied health
training schools) since 2003.
* Directors or Trustees serve until their resignation, removal or death, or until December 31
of the year in which they turn 72.
** Chairman of each Board of Directors or Trustees and Audit Committee.
ANNUAL REPORT OCTOBER 31, 2007
Officers and Directors or Trustees as of October 31, 2007 (concluded)
Position(s) Length of
Name, Address Held with Time
and Year of Birth Funds Served Principal Occupation(s) During Past 5 Years
Fund Officers*
Donald C. Burke Vice 1993 to Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill
P.O. Box 9011 President 2007 Lynch Investment Managers, L.P. ("MLIM") and Fund Asset Management, L.P.
Princeton, NJ and and ("FAM") in 2006; First Vice President of MLIM and FAM from 1997 to 2005 and
08543-9011 Treasurer 1999 to Treasurer thereof from 1999 to 2006; Vice President of MLIM and FAM from 1990
1960 2007 to 1997.
Karen Clark Chief 2007 Managing Director of BlackRock, Inc. and Chief Compliance Officer of certain
P.O. Box 9095 Compliance BlackRock-advised funds since 2007; Director of BlackRock, Inc. from 2005 to
Princeton, NJ Officer 2007; Principal and Senior Compliance Officer, State Street Global Advisors,
08543-9011 from 2001 to 2005; Principal Consultant, PricewaterhouseCoopers, LLP from 1998
1965 to 2001; and Branch Chief, Division of Investment Management and Office of
Compliance Inspections and Examinations, U.S. Securities and Exchange Commission,
from 1993 to 1998.
Howard Surloff Secretary 2007 Managing Director, of BlackRock Inc. and General Counsel of U.S. Funds at
P.O. Box 9011 BlackRock, Inc. since 2006; General Counsel (U.S.) of Goldman Sachs Asset
Princeton, NJ Management from 1993 to 2006.
08543-9011
1965
* Officers of the Funds serve at the pleasure of the Boards of Directors or Trustees.
For All Funds:
Accounting Agent
State Street Bank and
Trust Company
Princeton, NJ 08540
Independent Registered Public
Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540
Legal Counsel
Sidley Austin LLP
New York, NY 10019
BlackRock MuniYield Pennsylvania Insured Fund
Custodian
State Street Bank and
Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agents
Common Shares:
Computershare Trust
Company, N.A.
P.O. Box 43010
Providence, RI 02940-3010
Preferred Shares:
The Bank of New York Mellon
101 Barclay Street - 7 West
New York, NY 10286
BlackRock MuniYield Florida Insured Fund
BlackRock MuniYield Michigan Insured Fund, Inc.
BlackRock MuniYield New Jersey Insured Fund, Inc.
Custodian
The Bank of New York Mellon
One Wall Street
New York, NY 10286
Transfer Agents
Common Stock or Shares:
The Bank of New York Mellon
101 Barclay Street - 11 East
New York, NY 10286
Preferred Stock or Shares:
The Bank of New York Mellon
101 Barclay Street - 7 West
New York, NY 10286
ANNUAL REPORT OCTOBER 31, 2007
Additional Information
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 Statements of Net Assets, which comprises part of the financial
information included in these reports.
Fund Certifications
In May 2007, BlackRock MuniYield Florida Insured Fund, BlackRock MuniYield
Michigan Insured Fund, Inc., BlackRock MuniYield New Jersey Insured Fund, Inc.
and Blackrock MuniYield Pennsylvania Insured Fund filed their Chief Executive
Officer Certification for the prior year with the New York Stock Exchange
pursuant to Section 303A.12(a) of the New York Stock Exchange Corporate
Governance Listing Standards.
The Funds' Chief Executive Officer and Chief Financial Officer Certifications
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 were filed with
the Funds' Forms N-CSR and are available on the Securities and Exchange
Commission's Web site at http://www.sec.gov.
ANNUAL REPORT OCTOBER 31, 2007
Additional Information (continued)
Proxy Results BlackRock MuniYield Florida Insured Fund
During the six-month period ended October 31, 2007, the Common Shareholders
and Auction Market Preferred Shareholders (Series A & B) of BlackRock
MuniYield Florida Insured Fund voted on the following proposal, which was
approved at an annual shareholders' meeting on August 16, 2007. This proposal
was part of the reorganization of the Fund's Board of Trustees to take effect
on or about November 1, 2007. A description of the proposal and number of
shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Trustees: G. Nicholas Beckwith, III 7,667,245 221,940
Richard E. Cavanagh 7,667,245 221,940
Richard S. Davis 7,667,245 221,940
Kent Dixon 7,667,245 221,940
Kathleen F. Feldstein 7,658,819 230,366
James T. Flynn 7,667,245 221,940
Henry Gabbay 7,711,625 177,560
Jerrold B. Harris 7,657,719 231,466
R. Glenn Hubbard 7,658,819 230,366
Karen P. Robards 7,666,145 223,040
Robert S. Salomon, Jr. 7,658,819 230,366
During the six-month period ended October 31, 2007, the Auction Market
Preferred Shareholders (Series A & B) of BlackRock MuniYield Florida Insured
Fund voted on the following proposal, which was approved at an annual
shareholders' meeting on August 16, 2007. This proposal was part of the
reorganization of the Fund's Board of Trustees to take effect on or about
November 1, 2007. A description of the proposal and number of shares voted for
each Trustee are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Trustees: Frank J. Fabozzi and W. Carl Kester 2,815 0
ANNUAL REPORT OCTOBER 31, 2007
Additional Information (continued)
Proxy Results BlackRock MuniYield Michigan Insured Fund, Inc.
During the six-month period ended October 31, 2007, the Common Stock and
Auction Market Preferred Stock (Series A-D) shareholders of BlackRock
MuniYield Michigan Insured Fund, Inc. voted on the following proposal, which
was approved at an annual shareholders' meeting on August 16, 2007. This
proposal was part of the reorganization of the Fund's Board of Directors to
take effect on or about November 1, 2007. A description of the proposal and
number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: G. Nicholas Beckwith, III 16,498,026 464,709
Richard E. Cavanagh 16,500,086 462,649
Richard S. Davis 16,495,243 467,492
Kent Dixon 16,488,114 474,621
Kathleen F. Feldstein 16,490,190 472,545
James T. Flynn 16,484,483 478,252
Henry Gabbay 16,627,939 334,796
Jerrold B. Harris 16,498,716 464,019
R. Glenn Hubbard 16,491,409 471,326
Karen P. Robards 16,497,506 465,229
Robert S. Salomon, Jr. 16,484,884 477,851
During the six-month period ended October 31, 2007, the Auction Market
Preferred Stock shareholders (Series A-D) of BlackRock MuniYield Michigan
Insured Fund, Inc. voted on the following proposal, which was approved at an
annual shareholders' meeting on August 16, 2007. This proposal was part of the
reorganization of the Fund's Board of Directors to take effect on or about
November 1, 2007. A description of the proposal and number of shares voted for
each Director are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: Frank J. Fabozzi and W. Carl Kester 6,428 0
ANNUAL REPORT OCTOBER 31, 2007
Additional Information (continued)
Proxy Results BlackRock MuniYield New Jersey Insured Fund, Inc.
During the six-month period ended October 31, 2007, the Common Stock and
Auction Market Preferred Stock (Series A & B) shareholders of BlackRock
MuniYield New Jersey Insured Fund, Inc. voted on the following proposal, which
was approved at an annual shareholders' meeting on August 16, 2007. This
proposal was part of the reorganization of the Fund's Board of Directors to
take effect on or about November 1, 2007. A description of the proposal and
number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: G. Nicholas Beckwith, III 7,843,377 267,663
Richard E. Cavanagh 7,843,377 267,663
Richard S. Davis 7,843,377 267,663
Kent Dixon 7,836,711 274,329
Kathleen F. Feldstein 7,837,711 273,329
James T. Flynn 7,843,377 267,663
Henry Gabbay 7,843,377 267,663
Jerrold B. Harris 7,843,377 267,663
R. Glenn Hubbard 7,838,377 272,663
Karen P. Robards 7,843,377 267,663
Robert S. Salomon, Jr. 7,838,377 272,663
During the six-month period ended October 31, 2007, the Auction Market
Preferred Stock shareholders (Series A & B) of BlackRock MuniYield New Jersey
Insured Fund, Inc. voted on the following proposal, which was approved at an
annual shareholders' meeting on August 16, 2007. This proposal was part of the
reorganization of the Fund's Board of Directors to take effect on or about
November 1, 2007. A description of the proposal and number of shares voted for
each Director are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Directors: Frank J. Fabozzi and W. Carl Kester 2,699 0
ANNUAL REPORT OCTOBER 31, 2007
Additional Information (continued)
Proxy Results BlackRock MuniYield Pennsylvania Insured Fund
During the six-month period ended October 31, 2007, the Common Shareholders
and Auction Market Preferred Shareholders (Series A-C) of BlackRock MuniYield
Pennsylvania Insured Fund voted on the following proposal, which was approved
at an annual shareholders' meeting on August 16, 2007. This proposal was part
of the reorganization of the Fund's Board of Trustees to take effect on or
about November 1, 2007. A description of the proposal and number of shares
voted are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Trustees: G. Nicholas Beckwith, III 10,637,082 241,980
Richard E. Cavanagh 10,635,506 243,556
Richard S. Davis 10,636,554 242,508
Kent Dixon 10,633,263 245,799
Kathleen F. Feldstein 10,632,907 246,155
James T. Flynn 10,633,265 245,797
Henry Gabbay 10,714,480 164,582
Jerrold B. Harris 10,637,082 241,980
R. Glenn Hubbard 10,633,901 245,161
Karen P. Robards 10,638,082 240,980
Robert S. Salomon, Jr. 10,631,675 247,387
During the six-month period ended October 31, 2007, the Auction Market
Preferred Shareholders (Series A-C) of BlackRock MuniYield Pennsylvania
Insured Fund voted on the following proposal, which was approved at an annual
shareholders' meeting on August 16, 2007. This proposal was part of the
reorganization of the Fund's Board of Trustees to take effect on or about
November 1, 2007. A description of the proposal and number of shares voted for
each Trustee are as follows:
Shares Voted Shares Withheld
For From Voting
To elect the Fund's Trustees: Frank J. Fabozzi and W. Carl Kester 3,943 0
ANNUAL REPORT OCTOBER 31, 2007
Additional Information (concluded)
Availability of Quarterly Schedules of Investments
The Funds file their complete schedule 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.
Electronic Delivery
Electronic copies of most financial reports and prospectuses are available on
the Funds' Web sites. Shareholders can sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Funds' electronic delivery program.
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that not all
investment advisers, banks or brokerages may offer this service.
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former
fund investors and individual clients (collectively, "Clients") and to
safeguarding their nonpublic personal information. The following information
is provided to help you understand what personal information BlackRock
collects, how we protect that information and why in certain cases we share
such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal nonpublic information from and about
you from different sources, including the following: (i) information we
receive from you or, if applicable, your financial intermediary, on
applications, forms or other documents; (ii) information about your
transactions with us, our affiliates, or others; (iii) information we receive
from a consumer reporting agency; and (iv) from visits to our Web sites.
BlackRock does not sell or disclose to nonaffiliated third parties any
nonpublic personal information about its Clients, except as permitted by law
or as is necessary to respond to regulatory requests or to service Client
accounts. These nonaffiliated third parties are required to protect the
confidentiality and security of this information and to use it only for its
intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that
may be of interest to you. In addition, BlackRock restricts access to
nonpublic personal information about its Clients to those BlackRock employees
with a legitimate business need for the information. BlackRock maintains
physical, electronic and procedural safeguards that are designed to protect
the nonpublic personal information of its Clients, including procedures
relating to the proper storage and disposal of such information.
ANNUAL REPORT OCTOBER 31, 2007
Item 2 - Code of Ethics - The registrant (or the "Fund") has adopted a code
of ethics, as of the end of the period covered by this report,
applicable to the registrant's principal executive officer,
principal financial officer and principal accounting officer, or
persons performing similar functions. During the period covered by
this report, there have been no amendments to or waivers granted
under the code of ethics. A copy of the code of ethics is available
without charge at www.blackrock.com.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors or trustees, as applicable (the "board of directors") has
determined that (i) the registrant has the following audit
committee financial experts serving on its audit committee and (ii)
each audit committee financial expert is independent:
Donald W. Burton (term ended effective November 1, 2007)
John F. O'Brien (term ended effective November 1, 2007)
David H. Walsh (term ended effective November 1, 2007)
Fred G. Weiss (term ended effective November 1, 2007)
Robert S. Salomon, Jr. (term began effective November 1, 2007)
Kent Dixon (term began effective November 1, 2007)
Frank J. Fabozzi (term began effective November 1, 2007)
W. Carl Kester (term began effective November 1, 2007)
James T. Flynn (term began effective November 1, 2007)
Karen P. Robards (term began effective November 1, 2007)
The registrant's board of directors has determined that W. Carl
Kester and Karen P. Robards qualify as financial experts pursuant
to Item 3(c)(4) of Form N-CSR.
Prof. Kester has a thorough understanding of generally accepted
accounting principles, financial statements and internal control
over financial reporting as well as audit committee functions.
Prof. Kester has been involved in providing valuation and other
financial consulting services to corporate clients since 1978.
Prof. Kester's financial consulting services present a breadth and
level of complexity of accounting issues that are generally
comparable to the breadth and complexity of issues that can
reasonably be expected to be raised by the registrant's financial
statements.
Ms. Robards has a thorough understanding of generally accepted
accounting principles, financial statements and internal control
over financial reporting as well as audit committee functions.
Ms. Robards has been President of Robards & Company, a financial
advisory firm, since 1987. Ms. Robards was formerly an investment
banker for more than 10 years where she was responsible for
evaluating and assessing the performance of companies based on
their financial results. Ms. Robards has over 30 years of
experience analyzing financial statements. She also is the member
of the Audit Committees of one publicly held company and a non-
profit organization.
Under applicable securities laws, a person determined to be an
audit committee financial expert will not be deemed an "expert" for
any purpose, including without limitation for the purposes of
Section 11 of the Securities Act of 1933, as a result of being
designated or identified as an audit committee financial expert.
The designation or identification as an audit committee financial
expert does not impose on such person any duties, obligations, or
liabilities greater than the duties, obligations, and liabilities
imposed on such person as a member of the audit committee and board
of directors in the absence of such designation or identification.
Item 4 - Principal Accountant Fees and Services
(a) Audit Fees (b) Audit-Related Fees (1) (c) Tax Fees (2) (d) All Other Fees (3)
MuniYield Current Previous Current Previous Current Previous Current Previous
Michigan Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Insured End End End End End End End End
BlackRock
MuniYield
Michigan $53,350 $28,500 $3,500 $3,500 $6,100 $6,000 $1,042 $0
Insured
Fund, Inc.
(1) The nature of the services include assurance and related services reasonably related
to the performance of the audit of financial statements not included in Audit Fees.
(2) The nature of the services include tax compliance, tax advice and tax planning.
(3) The nature of the services include a review of compliance procedures and attestation
thereto.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant's audit committee (the "Committee") has
adopted policies and procedures with regard to the pre-approval of
services. Audit, audit-related and tax compliance services
provided to the registrant on an annual basis require specific pre-
approval by the Committee. The Committee also must approve other
non-audit services provided to the registrant and those non-audit
services provided to the registrant's affiliated service providers
that relate directly to the operations and the financial reporting
of the registrant. Certain of these non-audit services that the
Committee believes are a) consistent with the SEC's auditor
independence rules and b) routine and recurring services that will
not impair the independence of the independent accountants may be
approved by the Committee without consideration on a specific case-
by-case basis ("general pre-approval"). However, such services
will only be deemed pre-approved provided that any individual
project does not exceed $5,000 attributable to the registrant or
$50,000 for all of the registrants the Committee oversees. Any
proposed services exceeding the pre-approved cost levels will
require specific pre-approval by the Committee, as will any other
services not subject to general pre-approval (e.g., unanticipated
but permissible services). The Committee is informed of each
service approved subject to general pre-approval at the next
regularly scheduled in-person board meeting.
(e)(2) None of the services described in each of Items 4(b)
through (d) were approved by the audit committee pursuant to
paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) Affiliates' Aggregate Non-Audit Fees:
Current Previous
Fiscal Year Fiscal Year
MuniYield Michigan Insured End End
BlackRock MuniYield
Michigan Insured Fund, Inc. $295,142 $2,928,083
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser (not including any non-affiliated
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant's investment
adviser), and any entity controlling, controlled by, or under
common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible
with maintaining the principal accountant's independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $284,500, 0%
Item 5 - Audit Committee of Listed Registrants - The following individuals
are members of the registrant's separately-designated standing
audit committee established in accordance with Section 3(a)(58)(A)
of the Exchange Act (15 U.S.C. 78c(a)(58)(A)):
Donald W. Burton (term ended effective November 1, 2007)
John F. O'Brien (term ended effective November 1, 2007)
David H. Walsh (term ended effective November 1, 2007)
Fred G. Weiss (term ended effective November 1, 2007)
Robert S. Salomon, Jr. (term began effective November 1, 2007)
Kent Dixon (term began effective November 1, 2007)
Frank J. Fabozzi (term began effective November 1, 2007)
W. Carl Kester (term began effective November 1, 2007)
James T. Flynn (term began effective November 1, 2007)
Karen P. Robards (term began effective November 1, 2007)
Item 6 - Schedule of Investments - The registrant's Schedule of Investments
is included as part of the Report to Stockholders filed under Item
1 of this form.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - The registrant has delegated the
voting of proxies relating to Fund portfolio securities to its
investment adviser, BlackRock Advisors, LLC and its sub-adviser, as
applicable. The Proxy Voting Policies and Procedures of the adviser
and sub-adviser are attached hereto as Exhibit 99.PROXYPOL.
Proxy Voting Policies and Procedures
For BlackRock Advisors, LLC
And Its Affiliated SEC Registered Investment Advisers
September 30, 2006
Table of Contents Page
Introduction
Scope of Committee Responsibilities
Special Circumstances
Voting Guidelines
Boards of Directors
Auditors
Compensation and Benefits
Capital Structure
Corporate Charter and By-Laws
Corporate Meetings
Investment Companies
Environmental and Social Issues
Notice to Clients
Proxy Voting Policies and Procedures
These Proxy Voting Policies and Procedures ("Policy") for BlackRock
Advisors, LLC and its affiliated U.S. registered investment advisers (1)
("BlackRock") reflect our duty as a fiduciary under the Investment Advisers
Act of 1940 (the "Advisers Act") to vote proxies in the best interests of our
clients. BlackRock serves as the investment manager for investment companies,
other commingled investment vehicles and/or separate accounts of institutional
and other clients. The right to vote proxies for securities held in such
accounts belongs to BlackRock's clients. Certain clients of BlackRock have
retained the right to vote such proxies in general or in specific
circumstances. (2) Other clients, however, have delegated to BlackRock the
right to vote proxies for securities held in their accounts as part of
BlackRock's authority to manage, acquire and dispose of account assets.
When BlackRock votes proxies for a client that has delegated to
BlackRock proxy voting authority, BlackRock acts as the client's agent. Under
the Advisers Act, an investment adviser is a fiduciary that owes each of its
clients a duty of care and loyalty with respect to all services the adviser
undertakes on the client's behalf, including proxy voting. BlackRock is
therefore subject to a fiduciary duty to vote proxies in a manner BlackRock
believes is consistent with the client's best interests, (3) whether or not
the client's proxy voting is subject to the fiduciary standards of the
Employee Retirement Income Security Act of 1974 ("ERISA"). (4) When voting
proxies for client accounts (including investment companies), BlackRock's
primary objective is to make voting decisions solely in the best interests of
clients and ERISA clients' plan beneficiaries and participants. In fulfilling
its obligations to clients, BlackRock will seek to act in a manner that it
believes is most likely to enhance the economic value of the underlying
securities held in client accounts. (5) It is imperative that BlackRock
considers the interests of its clients, and not the interests of BlackRock,
when voting proxies and that real (or perceived) material conflicts that may
arise between BlackRock's interest and those of BlackRock's clients are
properly addressed and resolved.
(1) The Policy does not apply to BlackRock Asset Management U.K. Limited and
BlackRock Investment Managers International Limited, which are U.S.
registered investment advisers based in the United Kingdom.
(2) In certain situations, a client may direct BlackRock to vote in
accordance with the client's proxy voting policies. In these
situations, BlackRock will seek to comply with such policies to the
extent it would not be inconsistent with other BlackRock legal
responsibilities.
(3) Letter from Harvey L. Pitt, Chairman, SEC, to John P.M. Higgins,
President, Ram Trust Services (February 12, 2002) (Section 206 of the
Investment Advisers Act imposes a fiduciary responsibility to vote
proxies fairly and in the best interests of clients); SEC Release No.
IA-2106 (February 3, 2003).
(4) DOL Interpretative Bulletin of Sections 402, 403 and 404 of ERISA at
29 C.F.R. 2509.94-2
(5) Other considerations, such as social, labor, environmental or other
policies, may be of interest to particular clients. While BlackRock is
cognizant of the importance of such considerations, when voting proxies
it will generally take such matters into account only to the extent that
they have a direct bearing on the economic value of the underlying
securities. To the extent that a BlackRock client desires to pursue a
particular social, labor, environmental or other agenda through the
proxy votes made for its securities held through BlackRock as investment
adviser, BlackRock encourages the client to consider retaining direct
proxy voting authority or to appoint independently a special proxy
voting fiduciary other than BlackRock.
Advisers Act Rule 206(4)-6 was adopted by the SEC in 2003 and requires,
among other things, that an investment adviser that exercises voting authority
over clients' proxy voting adopt policies and procedures reasonably designed
to ensure that the adviser votes proxies in the best interests of clients,
discloses to its clients information about those policies and procedures and
also discloses to clients how they may obtain information on how the adviser
has voted their proxies.
In light of such fiduciary duties, the requirements of Rule 206(4)-6,
and given the complexity of the issues that may be raised in connection with
proxy votes, BlackRock has adopted these policies and procedures. BlackRock's
Equity Investment Policy Oversight Committee, or a sub-committee thereof (the
"Committee"), addresses proxy voting issues on behalf of BlackRock and its
clients. (6) The Committee is comprised of senior members of BlackRock's
Portfolio Management Group and advised by BlackRock's Legal and Compliance
Department.
(6) Subject to the Proxy Voting Policies of Merrill Lynch Bank & Trust
Company FSB, the Committee may also function jointly as the Proxy Voting
Committee for Merrill Lynch Bank & Trust Company FSB trust accounts
managed by personnel dually-employed by BlackRock.
I. Scope of Committee Responsibilities
The Committee shall have the responsibility for determining how to
address proxy votes made on behalf of all BlackRock clients, except for
clients who have retained the right to vote their own proxies, either
generally or on any specific matter. In so doing, the Committee shall seek to
ensure that proxy votes are made in the best interests of clients, and that
proxy votes are determined in a manner free from unwarranted or inappropriate
influences. The Committee shall also oversee the overall administration of
proxy voting for BlackRock accounts. (7)
The Committee shall establish BlackRock's proxy voting guidelines, with
such advice, participation and research as the Committee deems appropriate
from portfolio managers, proxy voting services or other knowledgeable
interested parties. As it is anticipated that there will not necessarily be a
"right" way to vote proxies on any given issue applicable to all facts and
circumstances, the Committee shall also be responsible for determining how the
proxy voting guidelines will be applied to specific proxy votes, in light of
each issuer's unique structure, management, strategic options and, in certain
circumstances, probable economic and other anticipated consequences of
alternative actions. In so doing, the Committee may determine to vote a
particular proxy in a manner contrary to its generally stated guidelines.
The Committee may determine that the subject matter of certain proxy
issues are not suitable for general voting guidelines and requires a case-by-
case determination, in which case the Committee may elect not to adopt a
specific voting guideline applicable to such issues. BlackRock believes that
certain proxy voting issues - such as approval of mergers and other
significant corporate transactions - require investment analysis akin to
investment decisions, and are therefore not suitable for general guidelines.
The Committee may elect to adopt a common BlackRock position on certain proxy
votes that are akin to investment decisions, or determine to permit portfolio
managers to make individual decisions on how best to maximize economic value
for the accounts for which they are responsible (similar to normal buy/sell
investment decisions made by such portfolio managers). (8)
While it is expected that BlackRock, as a fiduciary, will generally
seek to vote proxies over which BlackRock exercises voting authority in a
uniform manner for all BlackRock clients, the Committee, in conjunction with
the portfolio manager of an account, may determine that the specific
circumstances of such account require that such account's proxies be voted
differently due to such account's investment objective or other factors that
differentiate it from other accounts. In addition, on proxy votes that are
akin to investment decisions, BlackRock believes portfolio managers may from
time to time legitimately reach differing but equally valid views, as
fiduciaries for BlackRock's clients, on how best to maximize economic value in
respect of a particular investment.
(7) The Committee may delegate day-to-day administrative responsibilities
to other BlackRock personnel and/or outside service providers, as
appropriate.
(8) The Committee will normally defer to portfolio managers on proxy votes
that are akin to investment decisions except for proxy votes that
involve a material conflict of interest, in which case it will
determine, in its discretion, the appropriate voting process so as to
address such conflict.
The Committee will also be responsible for ensuring the maintenance of
records of each proxy vote, as required by Advisers Act Rule 204-2. (9) All
records will be maintained in accordance with applicable law. Except as may be
required by applicable legal requirements, or as otherwise set forth herein,
the Committee's determinations and records shall be treated as proprietary,
nonpublic and confidential.
The Committee shall be assisted by other BlackRock personnel, as may be
appropriate. In particular, the Committee has delegated to the BlackRock
Operations Department responsibility for monitoring corporate actions and
ensuring that proxy votes are submitted in a timely fashion. The Operations
Department shall ensure that proxy voting issues are promptly brought to the
Committee's attention and that the Committee's proxy voting decisions are
appropriately disseminated and implemented.
To assist BlackRock in voting proxies, the Committee may retain the
services of a firm providing such services. BlackRock has currently retained
Institutional Shareholder Services ("ISS") in that role. ISS is an
independent adviser that specializes in providing a variety of fiduciary-level
proxy-related services to institutional investment managers, plan sponsors,
custodians, consultants, and other institutional investors. The services
provided to BlackRock may include, but are not limited to, in-depth research,
voting recommendations (which the Committee is not obligated to follow), vote
execution, and recordkeeping.
(9) The Committee may delegate the actual maintenance of such records to an
outside service provider. Currently, the Committee has delegated the
maintenance of such records to Institutional Shareholder Services.
II Special Circumstances
Routine Consents. BlackRock may be asked from time to time to consent
to an amendment to, or grant a waiver under, a loan agreement, partnership
agreement, indenture or other governing document of a specific financial
instrument held by BlackRock clients. BlackRock will generally treat such
requests for consents not as "proxies" subject to these Proxy Voting Policies
and Procedures but as investment matters to be dealt with by the responsible
BlackRock investment professionals would, provided that such consents (i) do
not relate to the election of a board of directors or appointment of auditors
of a public company, and (ii) either (A) would not otherwise materially affect
the structure, management or control of a public company, or (B) relate to a
company in which BlackRock clients hold only interests in bank loans or debt
securities and are consistent with customary standards and practices for such
instruments.
Securities on Loan. Registered investment companies that are advised by
BlackRock as well as certain of our advisory clients may participate in
securities lending programs. Under most securities lending arrangements,
securities on loan may not be voted by the lender (unless the loan is
recalled). BlackRock believes that each client has the right to determine
whether participating in a securities lending program enhances returns, to
contract with the securities lending agent of its choice and to structure a
securities lending program, through its lending agent, that balances any
tension between loaning and voting securities in a matter that satisfies such
client. If client has decided to participate in a securities lending program,
BlackRock will therefore defer to the client's determination and not attempt
to seek recalls solely for the purpose of voting routine proxies as this could
impact the returns received from securities lending and make the client a less
desirable lender in a marketplace. Where a client retains a lending agent
that is unaffiliated with BlackRock, BlackRock will generally not seek to vote
proxies relating to securities on loan because BlackRock does not have a
contractual right to recall such loaned securities for the purpose of voting
proxies. Where BlackRock or an affiliate acts as the lending agent, BlackRock
will also generally not seek to recall loaned securities for proxy voting
purposes, unless the portfolio manager responsible for the account or the
Committee determines that voting the proxy is in the client's best interest
and requests that the security be recalled.
Voting Proxies for Non-US Companies. While the proxy voting process is
well established in the United States, voting proxies of non-US companies
frequently involves logistical issues which can affect BlackRock's ability to
vote such proxies, as well as the desirability of voting such proxies. These
issues include (but are not limited to): (i) untimely notice of shareholder
meetings, (ii) restrictions on a foreigner's ability to exercise votes, (iii)
requirements to vote proxies in person, (iv) "shareblocking" (requirements
that investors who exercise their voting rights surrender the right to dispose
of their holdings for some specified period in proximity to the shareholder
meeting), (v) potential difficulties in translating the proxy, and (vi)
requirements to provide local agents with unrestricted powers of attorney to
facilitate voting instructions.
As a consequence, BlackRock votes proxies of non-US companies only on a
"best-efforts" basis. In addition, the Committee may determine that it is
generally in the best interests of BlackRock clients not to vote proxies of
companies in certain countries if the Committee determines that the costs
(including but not limited to opportunity costs associated with shareblocking
constraints) associated with exercising a vote generally are expected to
outweigh the benefit the client will derive by voting on the issuer's
proposal. If the Committee so determines in the case of a particular country,
the Committee (upon advice from BlackRock portfolio managers) may override
such determination with respect to a particular issuer's shareholder meeting
if the Committee believes the benefits of seeking to exercise a vote at such
meeting outweighs the costs, in which case BlackRock will seek to vote on a
best-efforts basis.
Securities Sold After Record Date. With respect to votes in connection
with securities held on a particular record date but sold from a client
account prior to the holding of the related meeting, BlackRock may take no
action on proposals to be voted on in such meeting.
Conflicts of Interest. From time to time, BlackRock may be required to
vote proxies in respect of an issuer that is an affiliate of BlackRock (a
"BlackRock Affiliate"), or a money management or other client of BlackRock (a
"BlackRock Client").(10) In such event, provided that the Committee is aware
of the real or potential conflict, the following procedures apply:
* The Committee intends to adhere to the voting guidelines set forth
herein for all proxy issues including matters involving BlackRock
Affiliates and BlackRock Clients. The Committee may, in its
discretion for the purposes of ensuring that an independent
determination is reached, retain an independent fiduciary to advise
the Committee on how to vote or to cast votes on behalf of
BlackRock's clients; and
* if the Committee determines not to retain an independent
fiduciary, or does not desire to follow the advice of such
independent fiduciary, the Committee shall determine how to vote
the proxy after consulting with the BlackRock Legal and Compliance
Department and concluding that the vote cast is in the client's
best interest notwithstanding the conflict.
(10) Such issuers may include investment companies for which BlackRock
provides investment advisory, administrative and/or other services.
III. Voting Guidelines
The Committee has determined that it is appropriate and in the best
interests of BlackRock's clients to adopt the following voting guidelines,
which represent the Committee's usual voting position on certain recurring
proxy issues that are not expected to involve unusual circumstances. With
respect to any particular proxy issue, however, the Committee may elect to
vote differently than a voting guideline if the Committee determines that
doing so is, in the Committee's judgment, in the best interest of its clients.
The guidelines may be reviewed at any time upon the request of any Committee
member and may be amended or deleted upon the vote of a majority of voting
Committee members present at a Committee meeting for which there is a quorum.
A. Boards of Directors
These proposals concern those issues submitted to shareholders relating
to the composition of the Board of Directors of companies other than
investment companies. As a general matter, the Committee believes that a
company's Board of Directors (rather than shareholders) is most likely to have
access to important, nonpublic information regarding a company's business and
prospects, and is therefore best-positioned to set corporate policy and
oversee management. The Committee therefore believes that the foundation of
good corporate governance is the election of qualified, independent corporate
directors who are likely to diligently represent the interests of shareholders
and oversee management of the corporation in a manner that will seek to
maximize shareholder value over time. In individual cases, the Committee may
look at a Director nominee's history of representing shareholder interests as
a director of other companies, or other factors to the extent the Committee
deems relevant.
The Committee's general policy is to vote:
# VOTE and DESCRIPTION
A.1 FOR nominees for director of United States companies in uncontested
elections, except for nominees who
* have missed at least two meetings and, as a result, attended less
than 75% of meetings of the Board of Directors and its committees
the previous year, unless the nominee missed the meeting(s) due to
illness or company business
* voted to implement or renew a "dead-hand" poison pill
* ignored a shareholder proposal that was approved by either a
majority of the shares outstanding in any year or by the majority
of votes cast for two consecutive years
* failed to act on takeover offers where the majority of the
shareholders have tendered their shares
* are corporate insiders who serve on the audit, compensation or
nominating committees or on a full Board that does not have such
committees composed exclusively of independent directors
* on a case-by-case basis, have served as directors of other
companies with allegedly poor corporate governance
* sit on more than six boards of public companies
A.2 FOR nominees for directors of non-U.S. companies in uncontested
elections, except for nominees from whom the Committee determines to
withhold votes due to the nominees' poor records of representing
shareholder interests, on a case-by-case basis
A.3 FOR proposals to declassify Boards of Directors, except where there
exists a legitimate purpose for classifying boards
A.4 AGAINST proposals to classify Boards of Directors, except where there
exists a legitimate purpose for classifying boards
A.5 AGAINST proposals supporting cumulative voting
A.6 FOR proposals eliminating cumulative voting
A.7 FOR proposals supporting confidential voting
A.8 FOR proposals seeking election of supervisory board members
A.9 AGAINST shareholder proposals seeking additional representation of
women and/or minorities generally (i.e., not specific individuals) to a
Board of Directors
A.10 AGAINST shareholder proposals for term limits for directors
A.11 FOR shareholder proposals to establish a mandatory retirement age for
directors who attain the age of 72 or older
A.12 AGAINST shareholder proposals requiring directors to own a minimum
amount of company stock
A.13 FOR proposals requiring a majority of independent directors on a Board
of Directors
A.14 FOR proposals to allow a Board of Directors to delegate powers to a
committee or committees
A.15 FOR proposals to require audit, compensation and/or nominating
committees of a Board of Directors to consist exclusively of independent
directors
A.16 AGAINST shareholder proposals seeking to prohibit a single person from
occupying the roles of chairman and chief executive officer
A.17 FOR proposals to elect account inspectors
A.18 FOR proposals to fix the membership of a Board of Directors at a
specified size
A.19 FOR proposals permitting shareholder ability to nominate directors
directly
A.20 AGAINST proposals to eliminate shareholder ability to nominate directors
directly
A.21 FOR proposals permitting shareholder ability to remove directors
directly
A.22 AGAINST proposals to eliminate shareholder ability to remove directors
directly
B. Auditors
These proposals concern those issues submitted to shareholders related
to the selection of auditors. As a general matter, the Committee believes
that corporate auditors have a responsibility to represent the interests of
shareholders and provide an independent view on the propriety of financial
reporting decisions of corporate management. While the Committee will
generally defer to a corporation's choice of auditor, in individual cases, the
Committee may look at an auditors' history of representing shareholder
interests as auditor of other companies, to the extent the Committee deems
relevant.
The Committee's general policy is to vote:
B.1 FOR approval of independent auditors, except for
* auditors that have a financial interest in, or material association
with, the company they are auditing, and are therefore believed by
the Committee not to be independent
* auditors who have rendered an opinion to any company which in the
Committee's opinion is either not consistent with best accounting
practices or not indicative of the company's financial situation
* on a case-by-case basis, auditors who in the Committee's opinion
provide a significant amount of non-audit services to the company
B.2 FOR proposals seeking authorization to fix the remuneration of auditors
B.3 FOR approving internal statutory auditors
B.4 FOR proposals for audit firm rotation, except for proposals that would
require rotation after a period of less than 5 years
C. Compensation and Benefits
These proposals concern those issues submitted to shareholders related
to management compensation and employee benefits. As a general matter, the
Committee favors disclosure of a company's compensation and benefit policies
and opposes excessive compensation, but believes that compensation matters are
normally best determined by a corporation's board of directors, rather than
shareholders. Proposals to "micro-manage" a company's compensation practices
or to set arbitrary restrictions on compensation or benefits will therefore
generally not be supported.
The Committee's general policy is to vote:
C.1 IN ACCORDANCE WITH THE RECOMMENDATION OF ISS on compensation plans if
the ISS recommendation is based solely on whether or not the company's
plan satisfies the allowable cap as calculated by ISS. If the
recommendation of ISS is based on factors other than whether the plan
satisfies the allowable cap the Committee will analyze the particular
proposed plan. This policy applies to amendments of plans as well as to
initial approvals.
C.2 FOR proposals to eliminate retirement benefits for outside directors
C.3 AGAINST proposals to establish retirement benefits for outside directors
C.4 FOR proposals approving the remuneration of directors or of supervisory
board members
C.5 AGAINST proposals to reprice stock options
C.6 FOR proposals to approve employee stock purchase plans that apply to all
employees. This policy applies to proposals to amend ESPPs if the plan
as amended applies to all employees.
C.7 FOR proposals to pay retirement bonuses to directors of Japanese
companies unless the directors have served less than three years
C.8 AGAINST proposals seeking to pay outside directors only in stock
C.9 FOR proposals seeking further disclosure of executive pay or requiring
companies to report on their supplemental executive retirement benefits
C.10 AGAINST proposals to ban all future stock or stock option grants to
executives
C.11 AGAINST option plans or grants that apply to directors or employees of
"related companies" without adequate disclosure of the corporate
relationship and justification of the option policy
C.12 FOR proposals to exclude pension plan income in the calculation of
earnings used in determining executive bonuses/compensation
D. Capital Structure
These proposals relate to various requests, principally from
management, for approval of amendments that would alter the capital structure
of a company, such as an increase in authorized shares. As a general matter,
the Committee will support requests that it believes enhance the rights of
common shareholders and oppose requests that appear to be unreasonably
dilutive.
The Committee's general policy is to vote:
D.1 AGAINST proposals seeking authorization to issue shares without
preemptive rights except for issuances up to 10% of a non-US company's
total outstanding capital
D.2 FOR management proposals seeking preemptive rights or seeking
authorization to issue shares with preemptive rights
D.3 FOR management proposals approving share repurchase programs
D.4 FOR management proposals to split a company's stock
D.5 FOR management proposals to denominate or authorize denomination of
securities or other obligations or assets in Euros
D.6 FOR proposals requiring a company to expense stock options (unless the
company has already publicly committed to do so by a certain date).
E. Corporate Charter and By-Laws
These proposals relate to various requests for approval of amendments
to a corporation's charter or by-laws, principally for the purpose of adopting
or redeeming "poison pills". As a general matter, the Committee opposes poison
pill provisions.
The Committee's general policy is to vote:
E.1 AGAINST proposals seeking to adopt a poison pill
E.2 FOR proposals seeking to redeem a poison pill
E.3 FOR proposals seeking to have poison pills submitted to shareholders for
ratification
E.4 FOR management proposals to change the company's name
F. Corporate Meetings
These are routine proposals relating to various requests regarding the
formalities of corporate meetings.
The Committee's general policy is to vote:
F.1 AGAINST proposals that seek authority to act on "any other business that
may arise"
F.2 FOR proposals designating two shareholders to keep minutes of the
meeting
F.3 FOR proposals concerning accepting or approving financial statements and
statutory reports
F.4 FOR proposals approving the discharge of management and the supervisory
board
F.5 FOR proposals approving the allocation of income and the dividend
F.6 FOR proposals seeking authorization to file required documents/other
formalities
F.7 FOR proposals to authorize the corporate board to ratify and execute
approved resolutions
F.8 FOR proposals appointing inspectors of elections
F.9 FOR proposals electing a chair of the meeting
F.10 FOR proposals to permit "virtual" shareholder meetings over the Internet
F.11 AGAINST proposals to require rotating sites for shareholder meetings
G. Investment Companies
These proposals relate to proxy issues that are associated solely with
holdings of shares of investment companies, including, but not limited to,
investment companies for which BlackRock provides investment advisory,
administrative and/or other services. As with other types of companies, the
Committee believes that a fund's Board of Directors (rather than its
shareholders) is best-positioned to set fund policy and oversee management.
However, the Committee opposes granting Boards of Directors authority over
certain matters, such as changes to a fund's investment objective, that the
Investment Company Act of 1940 envisions will be approved directly by
shareholders.
The Committee's general policy is to vote:
G.1 FOR nominees for director of mutual funds in uncontested elections,
except for nominees who
* have missed at least two meetings and, as a result, attended less
than 75% of meetings of the Board of Directors and its committees
the previous year, unless the nominee missed the meeting due to
illness or fund business
* ignore a shareholder proposal that was approved by either a majority
of the shares outstanding in any year or by the majority of votes
cast for two consecutive years
* are interested directors who serve on the audit or nominating
committees or on a full Board that does not have such committees
composed exclusively of independent directors
* on a case-by-case basis, have served as directors of companies with
allegedly poor corporate governance
G.2 FOR the establishment of new series or classes of shares
G.3 AGAINST proposals to change a fund's investment objective to
nonfundamental
G.4 FOR proposals to establish a master-feeder structure or authorizing the
Board to approve a master-feeder structure without a further shareholder
vote
G.5 AGAINST a shareholder proposal for the establishment of a director
ownership requirement
G.6 FOR classified boards of closed-end investment companies
H. Environmental and Social Issues
These are shareholder proposals to limit corporate conduct in some
manner that relates to the shareholder's environmental or social concerns. The
Committee generally believes that annual shareholder meetings are
inappropriate forums for the discussion of larger social issues, and opposes
shareholder resolutions "micromanaging" corporate conduct or requesting
release of information that would not help a shareholder evaluate an
investment in the corporation as an economic matter. While the Committee is
generally supportive of proposals to require corporate disclosure of matters
that seem relevant and material to the economic interests of shareholders, the
Committee is generally not supportive of proposals to require disclosure of
corporate matters for other purposes.
The Committee's general policy is to vote:
H.1 AGAINST proposals seeking to have companies adopt international codes
of conduct
H.2 AGAINST proposals seeking to have companies provide non-required
reports on:
* environmental liabilities;
* bank lending policies;
* corporate political contributions or activities;
* alcohol advertising and efforts to discourage drinking by minors;
* costs and risk of doing business in any individual country;
* involvement in nuclear defense systems
H.3 AGAINST proposals requesting reports on Maquiladora operations or
on CERES principles
H.4 AGAINST proposals seeking implementation of the CERES principles
Notice to Clients
BlackRock will make records of any proxy vote it has made on behalf of
a client available to such client upon request.(11) BlackRock will use its
best efforts to treat proxy votes of clients as confidential, except as it may
decide to best serve its clients' interests or as may be necessary to effect
such votes or as may be required by law.
BlackRock encourage clients with an interest in particular proxy voting
issues to make their views known to BlackRock, provided that, in the absence
of specific written direction from a client on how to vote that client's
proxies, BlackRock reserves the right to vote any proxy in a manner it deems
in the best interests of its clients, as it determines in its sole discretion.
These policies are as of the date indicated on the cover hereof. The
Committee may subsequently amend these policies at any time, without notice.
(11) Such request may be made to the client's portfolio or relationship
manager or addressed in writing to Secretary, BlackRock Equity
Investment Policy Oversight Committee, Legal and Compliance Department,
BlackRock Inc., 40 East 52nd Street, New York, New York 10022.
Information about how the Fund voted proxies relating to securities
held in the Fund's portfolio during the most recent 12 month period
ended June 30 is available without charge (1) at www.blackrock.com
and (2) on the Commission's web site at http://www.sec.gov.
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
as of October 31, 2007.
(a)(1) BlackRock MuniYield Michigan Insured Fund, Inc. is managed
by a team of investment professionals comprised of Fred K. Stuebe,
Director at BlackRock, Theodore R. Jaeckel, Jr., CFA, Managing
Director at BlackRock, and Walter O'Connor, Managing Director at
BlackRock. Each is a member of BlackRock's municipal tax-exempt
management group. Mr. Jaeckel and Mr. O'Connor are responsible for
setting the Fund's overall investment strategy and overseeing the
management of the Fund. Mr. Stuebe is the Fund's lead portfolio
manager and is responsible for the day-to-day management of the
Fund's portfolio and the selection of its investments. Messrs.
Jaeckel and O'Connor have been members of the Fund's management
team since 2006 and Mr. Stuebe has been the Fund's portfolio
manager since 1995.
Mr. Jaeckel joined BlackRock in 2006. Prior to joining BlackRock,
he was a Managing Director (Municipal Tax-Exempt Fund Management)
of Merrill Lynch Investment Managers, L.P. ("MLIM") from 2005 to
2006 and a Director of MLIM from 1997 to 2005. He has been a
portfolio manager with BlackRock or MLIM since 1991.
Mr. O'Connor joined BlackRock in 2006. Prior to joining BlackRock,
he was a Managing Director (Municipal Tax-Exempt Fund Management)
of MLIM from 2003 to 2006 and was a Director of MLIM from 1997 to
2002. He has been a portfolio manager with BlackRock or MLIM since
1991.
Mr. Stuebe joined BlackRock in 2006. Prior to joining BlackRock, he
was a Director (Municipal Tax-Exempt Fund Management) of MLIM from
2000 to 2006. He has 25 years of experience investing in Municipal
Bonds as a portfolio manager on behalf of registered investment
companies. He has been a portfolio manager with BlackRock or MLIM
since 1989.
(a)(2) As of October 31, 2007:
(iii) Number of Other Accounts and
(ii) Number of Other Accounts Managed Assets for Which Advisory Fee is
and Assets by Account Type Performance-Based
Other Other
(i) Name of Registered Other Pooled Registered Other Pooled
Portfolio Investment Investment Other Investment Investment Other
Manager Companies Vehicles Accounts Companies Vehicles Accounts
Fred K. Stuebe 5 0 0 0 0 0
$ 1,870,244,683 $ 0 $0 $0 $ 0 $0
Walter
O'Connor 80 0 0 0 0 0
$28,491,370,825 $ 0 $0 $0 $ 0 $0
Theodore R.
Jaeckel, Jr. 80 1 0 0 1 0
$28,491,370,825 $26,763,472 $0 $0 $26,763,472 $0
(iv) Potential Material Conflicts of Interest
BlackRock, Inc. and its affiliates (collectively, herein
"BlackRock") has built a professional working environment, firm-
wide compliance culture and compliance procedures and systems
designed to protect against potential incentives that may favor one
account over another. BlackRock has adopted policies and procedures
that address the allocation of investment opportunities, execution
of portfolio transactions, personal trading by employees and other
potential conflicts of interest that are designed to ensure that
all client accounts are treated equitably over time. Nevertheless,
BlackRock furnishes investment management and advisory services to
numerous clients in addition to the Fund, and BlackRock may,
consistent with applicable law, make investment recommendations to
other clients or accounts (including accounts which are hedge funds
or have performance or higher fees paid to BlackRock, or in which
portfolio managers have a personal interest in the receipt of such
fees), which may be the same as or different from those made to the
Fund. In addition, BlackRock, its affiliates and any officer,
director, stockholder or employee may or may not have an interest
in the securities whose purchase and sale BlackRock recommends to
the Fund. BlackRock, or any of its affiliates, or any officer,
director, stockholder, employee or any member of their families may
take different actions than those recommended to the Fund by
BlackRock with respect to the same securities. Moreover, BlackRock
may refrain from rendering any advice or services concerning
securities of companies of which any of BlackRock's (or its
affiliates') officers, directors or employees are directors or
officers, or companies as to which BlackRock or any of its
affiliates or the officers, directors and employees of any of them
has any substantial economic interest or possesses material non-
public information. Each portfolio manager also may manage accounts
whose investment strategies may at times be opposed to the strategy
utilized for the Fund. In this connection, it should be noted that
certain portfolio managers currently manage certain accounts that
are subject to performance fees. In addition, certain portfolio
managers assist in managing certain hedge funds and may be entitled
to receive a portion of any incentive fees earned on such funds and
a portion of such incentive fees may be voluntarily or
involuntarily deferred. Additional portfolio managers may in the
future manage other such accounts or funds and may be entitled to
receive incentive fees.
As a fiduciary, BlackRock owes a duty of loyalty to its clients and
must treat each client fairly. When BlackRock purchases or sells
securities for more than one account, the trades must be allocated
in a manner consistent with its fiduciary duties. BlackRock
attempts to allocate investments in a fair and equitable manner
among client accounts, with no account receiving preferential
treatment. To this end, BlackRock has adopted a policy that is
intended to ensure that investment opportunities are allocated
fairly and equitably among client accounts over time. This policy
also seeks to achieve reasonable efficiency in client transactions
and provide BlackRock with sufficient flexibility to allocate
investments in a manner that is consistent with the particular
investment discipline and client base.
(a)(3) As of October 31, 2007:
Portfolio Manager Compensation
The portfolio manager compensation program of BlackRock is
critical to BlackRock's ability to attract and retain the most
talented asset management professionals. This program ensures that
compensation is aligned with maximizing investment returns and it
provides a competitive pay opportunity for competitive performance.
Compensation Program
The elements of total compensation for BlackRock portfolio
managers are: fixed base salary, annual performance-based cash and
stock compensation (cash and stock bonus) and other benefits.
BlackRock has balanced these components of pay to provide portfolio
managers with a powerful incentive to achieve consistently superior
investment performance. By design, portfolio manager compensation
levels fluctuate--both up and down--with the relative investment
performance of the portfolios that they manage.
Base Salary
Under the BlackRock approach, like that of many asset
management firms, fixed base salaries represent a relatively small
portion of a portfolio manager's total compensation. This approach
serves to enhance the motivational value of the performance-based
(and therefore variable) compensation elements of the compensation
program.
Performance-Based Compensation
BlackRock believes that the best interests of investors are
served by recruiting and retaining exceptional asset management
talent and managing their compensation within a consistent and
disciplined framework that emphasizes pay for performance in the
context of an intensely competitive market for talent. To that end,
the portfolio manager incentive compensation is based on a
formulaic compensation program.
BlackRock's formulaic portfolio manager compensation program
includes: pre-tax investment performance relative to the
appropriate competitors or benchmarks over 1-, 3- and 5-year
performance periods and a measure of operational efficiency. If a
portfolio manager's tenure is less than 5 years, performance
periods will reflect time in position. Portfolio managers are
compensated based on products they manage. For these purposes, the
performance of the Fund is compared to the Lipper Closed-end
Michigan Municipal Debt Funds classification. A smaller
discretionary element of portfolio manager compensation may include
consideration of: financial results, expense control, profit
margins, strategic planning and implementation, quality of client
service, market share, corporate reputation, capital allocation,
compliance and risk control, leadership, workforce diversity,
supervision, technology and innovation. All factors are considered
collectively by BlackRock management.
Cash Bonus
Performance-based compensation is distributed to portfolio
managers in a combination of cash and stock. Typically, the cash
bonus, when combined with base salary, represents more than 60% of
total compensation for the portfolio managers.
Stock Bonus
A portion of the dollar value of the total annual performance-
based bonus is paid in restricted shares of stock of BlackRock,
Inc. (the "Company"). Paying a portion of annual bonuses in stock
puts compensation earned by a portfolio manager for a given year
"at risk" based on the Company's ability to sustain and improve its
performance over future periods. The ultimate value of stock
bonuses is dependent on future Company stock price performance. As
such, the stock bonus aligns each portfolio manager's financial
interests with those of the Company's shareholders and encourages a
balance between short-term goals and long-term strategic
objectives. Management strongly believes that providing a
significant portion of competitive performance-based compensation
in stock is in the best interests of investors and shareholders.
This approach ensures that portfolio managers participate as
shareholders in both the "downside risk" and "upside opportunity"
of the Company's performance. Portfolio managers, therefore, have a
direct incentive to protect the Company's reputation for integrity.
Other Benefits
Portfolio managers are also eligible to participate in broad-
based plans offered generally to BlackRock employees, including
broad-based retirement, 401(k), health, and other employee benefit
plans. For example, BlackRock, Inc. has created a variety of
incentive savings plans in which BlackRock employees are eligible
to participate, including a 401(k) plan, the BlackRock Retirement
Savings Plan (RSP) and the BlackRock Employee Stock Purchase Plan
(ESPP). The employer contribution components of the RSP include a
company match equal to 50% of the first 6% of eligible pay
contributed to the plan capped at $4,000 per year, and a company
retirement contribution equal to 3% of eligible compensation, plus
an additional contribution of 2% for any year in which BlackRock
has positive net operating income. The RSP offers a range of
investment options, including registered investment companies
managed by the firm. Company contributions follow the investment
direction set by participants for their own contributions or
absent, employee investment direction, are invested into a stable
value fund. The ESPP allows for investment in BlackRock common
stock at a 5% discount on the fair market value of the stock on the
purchase date. Annual participation in the ESPP is limited to the
purchase of 1,000 shares or a dollar value of $25,000. Each
portfolio manager is eligible to participate in these plans.
(a)(4) Beneficial Ownership of Securities. As of October 31,
2007, none of Messrs. Stuebe, Jaeckel or O'Connor
beneficially owned any stock issued by the Fund.
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable due to no such
purchases during the period covered by this report.
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating and Governance Committee will consider
nominees to the Board recommended by shareholders when a vacancy
becomes available. Shareholders who wish to recommend a nominee
should send nominations which include biographical information and
set forth the qualifications of the proposed nominee to the
registrant's Secretary. There have been no material changes to
these procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded
that the registrant's disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940,
as amended (the "1940 Act")) are effective as of a date within 90
days of the filing of this report based on the evaluation of these
controls and procedures required by Rule 30a-3(b) under the 1940
Act and Rule 13a-15(b) under the Securities and Exchange Act of
1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940
Act) that occurred during the second fiscal quarter of the period
covered by this report that have materially affected, or are
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - See Item 2
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.
BlackRock MuniYield Michigan Insured Fund, Inc.
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Michigan Insured Fund, Inc.
Date: December 19, 2007
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/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Michigan Insured Fund, Inc.
Date: December 19, 2007
By: /s/ Neal J. Andrews
-------------------
Neal J. Andrews,
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield Michigan Insured Fund, Inc.
Date: December 19, 2007