UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-08217
Name of Fund: MuniHoldings New York Insured Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, MuniHoldings New York Insured Fund, Inc., 800 Scudders Mill Road,
Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ
08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 08/31/06
Date of reporting period: 09/01/05 - 02/28/06
Item 1 - Report to Stockholders
Semi-Annual Reports
February 28, 2006
MuniHoldings Florida Insured Fund
MuniHoldings New York Insured Fund, Inc.
MuniHoldings Florida Insured Fund
MuniHoldings New York Insured Fund, Inc.
Announcement to Shareholders
On February 15, 2006, BlackRock, Inc. ("BlackRock") and Merrill Lynch & Co.,
Inc. ("Merrill Lynch") entered into an agreement to contribute Merrill Lynch's
investment management business, Merrill Lynch Investment Managers, L.P. and
certain affiliates (including Fund Asset Management, L.P. and Merrill Lynch
Investment Managers International Limited), to BlackRock to create a new
independent company that will be one of the world's largest asset management
firms with nearly $1 trillion in assets under management (based on combined
assets under management as of December 31, 2005). The transaction is expected to
close in the third quarter of 2006, at which time the new company will operate
under the BlackRock name. If approved by the Funds' Board of Directors/Trustees
and the Funds' shareholders, the combined company that results from the
transaction is expected to become the investment adviser of the Funds.
Officers and Trustees
Robert C. Doll, Jr., President and Director/Trustee
Ronald W. Forbes, Director/Trustee
Cynthia A. Montgomery, Director/Trustee
Jean Margo Reid, Director/Trustee
Roscoe S. Suddarth, Director/Trustee
Richard R. West, Director/Trustee
Edward D. Zinbarg, Director/Trustee
Donald C. Burke, Vice President and Treasurer
Kenneth A. Jacob, Senior Vice President
John M. Loffredo, Senior Vice President
Timothy T. Browse, Vice President
Robert D. Sneeden, Vice President
Jeffrey Hiller, Chief Compliance Officer
Alice A. Pellegrino, Secretary
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agents
Common Shares/Stock:
The Bank of New York
101 Barclay Street -- 11 East
New York, NY 10286
Preferred Shares/Stock:
The Bank of New York
101 Barclay Street -- 7 West
New York, NY 10286
Investment Objectives
NYSE Symbol
MFL
MuniHoldings Florida Insured Fund seeks to provide shareholders with current
income exempt from federal income tax. The Fund also seeks to offer shareholders
the opportunity to own shares, the value of which is exempt from Florida
intangible personal property tax. The Fund seeks to achieve its investment
objective 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 tax.
NYSE Symbol
MHN
MuniHoldings New York Insured Fund, Inc. seeks to provide shareholders with
current income exempt from federal income taxes and New York State and New York
City personal income taxes by investing primarily in a portfolio of long-term,
investment grade municipal obligations, the interest on which, in the opinion of
bond counsel to the issuer, is exempt from federal income taxes and New York
State and New York City personal income taxes.
2 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
A Letter From the President
Dear Shareholder
Financial markets began 2006 with a return to volatility following a fairly
uninspiring 2005. For the six- and 12-month periods ended February 28, 2006,
most major market indexes landed in positive territory:
Total Returns as of February 28, 2006 6-month 12-month
============================================================================================
U.S. equities (Standard & Poor's 500 Index) + 5.93% + 8.40%
--------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) +10.24 +16.59
--------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) +15.14 +17.41
--------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers Aggregate Bond Index) - 0.11 + 2.74
--------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 0.99 + 3.87
--------------------------------------------------------------------------------------------
High yield bonds (Credit Suisse High Yield Index) + 1.89 + 3.27
--------------------------------------------------------------------------------------------
The Federal Reserve Board (the Fed) increased interest rates 200 basis points
(2.00%) over the past 12 months, bringing the target federal funds rate to 4.5%.
Notably, Ben Bernanke replaced Alan Greenspan as Fed chairman in January, a
month after the central bank removed the critical word "measured" from the
description of its rate-hiking program. Still, most observers expect at least
one more interest rate hike before the Fed pauses in its tightening campaign.
U.S. economic growth, which came in at 4.1% in the third quarter of 2005, fell
to 1.6% in the fourth quarter. Growth is expected to reaccelerate in the first
quarter of 2006, although the economy is likely to feel some pressure in the
quarters ahead as the consumer sector seems to be softening. Capital spending by
businesses, however, appears relatively strong. Overall corporate health,
including strong company balance sheets, helped prompt robust
dividend-distribution, share-buyback and merger-and-acquisition activity in
2005, a trend that has continued in 2006. This, as well as reasonably good
company earnings and low core inflation, has been supportive of U.S. stocks
despite the headwinds of rising interest rates and high energy prices. Many
international equity markets have fared even better, thanks in part to higher
economic growth rates and low inflation.
In the U.S. bond market, short-term interest rates continued to move higher as
longer-term interest rates advanced more moderately. After flattening
dramatically in 2005, the Treasury curve recently has been toying with bouts of
inversion, whereby short-term yields have surpassed long-term yields. At
period-end, the six-month Treasury bill offered the highest yield on the curve
at 4.74%.
Amid the uncertainty inherent in the financial markets, we encourage you to
review your goals periodically with your financial advisor and to make portfolio
changes, as needed. For timely "food for thought" for investors, we also invite
you to visit Shareholder magazine at www.mlim.ml.com/shareholdermagazine. As
always, we thank you for trusting Merrill Lynch Investment Managers with your
investment assets, and we look forward to continuing to serve your investment
needs.
Sincerely,
/s/ Robert C. Doll, Jr.
Robert C. Doll, Jr.
President and Director/Trustee
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 3
A Discussion With Your Funds' Portfolio Managers
We primarily targeted the longer end of the municipal yield curve, which
remained steep compared to the shorter end and provided opportunities for
enhanced yield.
Describe the recent market environment relative to municipal bonds.
Over the past six months, long-term bond yields generally rose as their prices,
which move in the opposite direction, declined. Investors appeared to disregard
signs of slowing economic growth, reflected in gross domestic product growth of
just 1.6% in the fourth quarter of 2005, and instead focused on potential
inflationary pressures and continued short-term interest rate increases by the
Federal Reserve Board (the Fed). In addition to inflationary fears sparked by
elevated commodity prices, national hourly wage levels rose recently. This led
some economic analysts to suggest that recent declines in the national
unemployment rate will result in escalating wage inflation. The resurgent
inflationary fears helped push bond yields higher over the past six months.
For its part, the Fed has continued to raise short-term interest rates at each
of its meetings during the period, bringing the federal funds rate to 4.5%.
Given little expectation that the Fed's monetary tightening cycle will end in
early 2006, the yield curve continued to flatten with shorter interest rates
increasing more than longer ones. At the end of February 2006, 30-year U.S.
Treasury bond yields had risen 25 basis points (.25%) to 4.51%, while 10-year
Treasury yields rose 53 basis points to 4.55% and two-year Treasury yields rose
85 basis points to 4.69%. The result was an inverted Treasury yield curve.
Notably, the municipal yield curve has maintained a positive slope. According to
Municipal Market Data, AAA-rated tax-exempt bonds maturing in 30 years saw their
yields increase eight basis points to 4.30%, while yields on AAA-rated issues
maturing in 10 years increased 25 basis points to end the period at 3.75%. The
tax-exempt market's positive technical position has allowed municipal bond
prices to decline less than those of taxable bonds.
Supporting the recent outperformance of the municipal bond market has been a
dramatic slowdown in the issuance of new long-term tax-exempt bonds. In 2005,
more than $408 billion in new long-term tax-exempt bonds was underwritten,
representing a new annual record and an increase of over 13% compared to 2004.
For the six-month period ended February 28, 2006, $172 billion in long-term
municipal bonds was issued, a decline of 1.5% compared to the same period a year
ago. More recently, new-issue volume has declined at an even faster rate. In the
past three months, $76 billion in new long-term tax-exempt bonds was marketed, a
decline of 16% compared to the same three months a year ago. The record level of
new issuance in 2005 was largely triggered by a 47% increase in refunding
activity as issuers took advantage of historically low bond yields and a
flattening yield curve to refinance outstanding higher-couponed debt. So far in
2006, refunding issuance has declined more than 55% relative to the first two
months of 2005. It remains to be seen if this decline is the beginning of a
sustained trend toward a significant decline in refunding issuance. This is
important, as analysts' estimates for new-issue supply for 2006, currently in
the $340 billion - $370 billion range, are largely dependant on modest declines
in refunding activity. Should the current trend continue, new-issue supply
projections for this year could be adjusted lower.
Investor demand for municipal product has remained strong. As reported by the
Investment Company Institute (ICI), for all of 2005, long-term municipal bond
funds received net new monies of $5.04 billion. This represented a sharp
reversal from the $3.67 billion outflow seen in 2004. January 2006 data from ICI
indicates that tax-exempt mutual funds have continued to experience positive
cash flows, receiving over $2 billion for the month, more than twice the net new
monies received in January 2005.
Looking ahead, the fundamentals for the tax-exempt bond market appear favorable,
and continued positive cash flows are anticipated. Given their attractive yields
relative to comparable U.S. Treasury bonds, and the prospects for reduced
issuance in 2006, we believe municipal bonds could enjoy solid results in the
coming months.
MuniHoldings Florida Insured Fund
Describe conditions in the State of Florida.
Florida's economy has outperformed that of both the nation and other southern
states, and appears likely to continue this trend in the foreseeable future. The
state's mix of solid demographics and increasing job growth among diversified
industries is expected to continue to encourage migration into the state.
Although national economic trends have put pressure on the state, we believe
Florida is well positioned given its record of proactive management and
financial flexibility.
The state's enacted fiscal year 2005 - 2006 budget is $64.7 billion, an increase
of 12% from the prior year. The budget
4 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
reflects a combination of spending constraints, with spending below anticipated
personal income growth, and increased revenue growth. Of the increased revenue,
not all is expected to be permanent, as some stems primarily from the
reconstruction and replacement of property destroyed by hurricanes and,
therefore, is not recurring.
Fiscal discipline has afforded the state the opportunity to provide tax relief
in the form of tax-free shopping days, reduced sales tax on equipment, tax
credits and a phase out of the intangible tax. Three areas of the budget account
for 93% of the total expenditures -- education at 52%, health and human services
at 26% and public safety at 15%. Revenues for the first four months of the
fiscal year were $602 million, 14% higher than the same period in the prior
fiscal year.
How did the Fund perform during the period?
For the six-month period ended February 28, 2006, the Common Shares of
MuniHoldings Florida Insured Fund had net annualized yields of 5.89% and 5.91%,
based on a period-end per share net asset value of $14.90 and a per share market
price of $14.85, respectively, and $.435 per share income dividends. Over the
same period, the total investment return on the Fund's Common Shares was +.24%,
based on a change in per share net asset value from $15.32 to $14.90, and
assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, lagged the +1.18% average
return of the Lipper Florida Municipal Debt Funds category for the six-month
period. (Funds in this Lipper category limit their investment to those
securities exempt from taxation in the State of Florida.) For the most part,
performance was impacted as the yield curve flattened and short and intermediate
maturities underperformed. We had exposure to these sectors through bonds that
had been prerefunded -- thereby transforming several of our longer-dated issues
into intermediate-maturity issues -- and higher-coupon bonds priced to a short
call. Despite their underperformance on a total return basis, these bonds were
acquired in a higher interest rate environment and, as such, contribute
meaningfully to the Fund's yield. This supports our long-term commitment to
providing shareholders with an attractive level of income and allowed the Fund
to maintain an above-average yield compared to its peers.
To a lesser extent, the Fund's total return performance was affected by its
conservative investment parameters. This prohibited us from investing in
non-investment grade issues, which outperformed the high-grade market as credit
spreads narrowed during the period.
For a description of the Fund's total investment return based on a change in the
per share market value of the Fund's Common Shares (as measured by the trading
price of the Fund's shares on the New York Stock Exchange), and assuming
reinvestment of dividends, please refer to the Financial Highlights section of
this report. As a closed-end fund, the Fund's shares may trade in the secondary
market at a premium or discount to the Fund's net asset value. As a result,
total investment returns based on changes in the market value of the Fund's
Common Shares can vary significantly from total investment returns based on
changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
We did not alter our strategy or make meaningful changes to the portfolio's
composition during the six-month period. We continued to focus on increasing the
income provided to shareholders and muting the Fund's net asset value
volatility. To that end, we remained fully invested throughout the period in
order to enhance yield.
In making new purchases, we generally focused on premium-coupon bonds in the
20-year - 25-year maturity range whenever they became available. We observed the
greatest value in this area, meaning we were able to capture most of the yield
available on the curve without taking on the additional risk of extending into
the 30-year range. Notably, we did begin to see some value in the 15-year area
of the curve and continue to explore opportunities there.
Issuance of Florida municipal bonds increased approximately 5% during the period
compared to the same six months a year ago. As has been the case for some time,
few new issues met our desired investment characteristics. Much of the supply
came in the first three months of the period in the form of refinancings, and
the majority of the new issues offered relatively short maturities and yields
below 5%. We were not inclined to give up bonds booked in the portfolio at
higher yields in order to take advantage of the new-issue calendar.
For the six-month period ended February 28, 2006, the Fund's Auction Market
Preferred Shares (AMPS) had average yields as follows: Series A, 2.71%; Series
B, 2.81%; Series C, 2.85%; Series D, 2.71%; and Series E, 2.71%. At this point
in the Fed's monetary tightening cycle, interest rate increases are having an
impact on the Fund's borrowing costs. The Fed raised the short-term interest
rate target 100 basis points during the six-month period. Nevertheless, we are
still able to borrow at a lower rate than where we invest, and this has
continued to generate an income benefit to the holders of Common Shares. Of
course, should the spread between short-term and long-term interest rates
narrow, the benefits of leveraging will decline and, as a result, reduce the
yield on the Fund's Common Shares. At the end of the period, the Fund's leverage
amount, due to AMPS, was 39.33% of total
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 5
A Discussion With Your Funds' Portfolio Managers ( concluded)
net assets, before the deduction of Preferred Shares. (For a more complete
explanation of the benefits and risks of leveraging, see page 8 of this report
to shareholders.)
How would you characterize the Fund's position at the close of the period?
We would characterize the Fund's position as fairly neutral in terms of interest
rate risk. Currently, we favor bonds with 20-year - 25-year maturities and will
also look to increase exposure to 15-year maturities. In the current low-yield
environment, we are targeting bonds with 5% coupons, but will look for an
increase in long-term rates as an opportunity to pursue higher-coupon bonds
(5.25% and above) in the 20-year - 30-year maturity range. We are awaiting that
back-up in interest rates, which would present an opportunity to sell some of
the prerefunded bonds in the portfolio and purchase some longer-dated issues
without giving up a great deal of yield.
We expect the U.S. equity and bond markets to remain volatile as investors
continue to anticipate and react to economic data and Fed actions. Many believe
the Fed is nearing the end of its rate-hiking campaign. However, the central
bank has indicated that it will become more "data dependent" in determining
monetary policy, which leaves room for interpretation. Against this backdrop, we
will continue to maintain a fully invested portfolio and intend to use periods
of volatility to pursue higher-coupon bonds whenever they are attractively
priced.
MuniHoldings New York Insured Fund, Inc.
Describe conditions in the State of New York.
In December, credit-rating agency Moody's upgraded New York's rating to Aa3, the
state's highest rating from Moody's since 1975. Standard and Poor's and Fitch
maintained ratings of AA and AA-, respectively, and all three agencies assign a
stable outlook to the state's ratings. The New York economy continues to improve
and revenue collections are increasing. State tax collections remain largely
dependant on the performance of the financial sector, but tax receipts for
fiscal year 2005 (ended March 31, 2005) were 15% above the prior fiscal year.
Due to surging tax collections, particularly income taxes, the fiscal year 2005
operating surplus totaled $1.2 billion.
The fiscal year 2006 budget calls for $105 billion in spending and forecasts a
5% increase in tax receipts for the fiscal year (which began April 1, 2005).
Aided by this revenue growth, the enacted budget includes most of the governor's
original proposals for closing an estimated $4 billion deficit. However, this
does not factor in a lawsuit won by the Campaign for Fiscal Equity that could
add up to $2 billion in annual state education spending. Crafting balanced
budgets beyond fiscal year 2006 will present a challenge given political
resistance to additional tax hikes and cuts in popular programs, as well as
pressure from local governments for pension and Medicaid relief, and new
education spending. Governor Pataki proposed a $111 billion budget for fiscal
year 2007 (which begins April 1, 2006) that includes an estimated $840 million
in tax cuts during the year and suggested that an anticipated $2 billion surplus
from the current 2006 fiscal year be applied toward out-year gaps. The
legislature has not yet approved the 2007 budget, which still does not include
any money for compliance with the court order on school funding.
Current employment numbers show a 1% increase from the prior year. New York
ranks fifth-highest among all states in per capita income. Economic growth is
disproportionately stronger in downstate New York, while the upstate economy
remains lackluster.
How did the Fund perform during the period?
For the six-month period ended February 28, 2006, the Common Stock of
MuniHoldings New York Insured Fund, Inc. had net annualized yields of 5.92% and
5.96%, based on a period-end per share net asset value of $15.12 and a per share
market price of $15.02, respectively, and $.444 per share income dividends. Over
the same period, the total investment return on the Fund's Common Stock was
+.32%, based on a change in per share net asset value from $15.54 to $15.12, and
assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, lagged the +.83% average
return of the Lipper New York Insured Municipal Debt Funds category for the
six-month period. (Funds in this Lipper category invest primarily in securities
exempt from taxation in New York and insured as to timely payment.) Detracting
from the Fund's total return performance was our exposure to prerefunded bonds
and those with short call dates. While we've taken steps to reduce exposure to
these shorter-term issues, we have been careful to retain some that have
relatively high acquisition yields and, therefore, provide a meaningful income
benefit to the portfolio. In fact, the Fund has been able to maintain an
above-average distribution rate because of its yield advantage versus its New
York insured peers.
Contributing to Fund performance during the period were our positions in
longer-dated bonds, which outperformed short and intermediate maturities as the
yield curve
6 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
flattened. The portfolio's housing bonds and AMT issues, which tend to offer
additional yield, also performed well as investors continued to seek out higher
levels of income in the low interest rate environment. Similarly, uninsured,
higher-yielding issues, in which the portfolio may invest up to 20% of its net
assets, also performed quite well due to a general tightening in credit spreads.
For a description of the Fund's total investment return based on a change in the
per share market value of the Fund's Common Stock (as measured by the trading
price of the Fund's shares on the New York Stock Exchange), and assuming
reinvestment of dividends, please refer to the Financial Highlights section of
this report. As a closed-end fund, the Fund's shares may trade in the secondary
market at a premium or discount to the Fund's net asset value. As a result,
total investment returns based on changes in the market value of the Fund's
Common Stock can vary significantly from total investment returns based on
changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
Throughout the period, we focused primarily on extending the average portfolio
maturity by lightening our exposure to shorter-dated bonds and adding exposure
to longer-dated issues. We have been particularly focused on trimming
short-duration bonds of the high-coupon, short-call structure. Specifically,
this has included bonds that are either prerefunded or have a call date within
three years or less. These bonds are priced with a premium and, as the call date
approaches, the bonds lose value at an accelerating rate. The downside of
selling some of these bonds is that they either have a relatively high
acquisition yield, having been bought in a higher rate environment, or are of a
lower-quality, higher-yielding nature. Thus, we are trying to balance our desire
to maintain an attractive yield with our goal of enhancing the portfolio's total
return potential.
We added longer-dated bonds to the mix as the new-issue market presented
opportunities. This was somewhat challenging as the New York municipal market
continued to be characterized by relatively low supply and new issues tended to
come with shorter maturities and lower yields than we would prefer. One notable
addition was bonds issued for the rehabilitation and expansion of the Jacob
Javitz Convention Center. Those bonds we purchased had 35-year maturities. This
not only assisted our goal of increasing the portfolio's average maturity, but
also contributed to our efforts to enhance the Fund's diversification.
To that end, we also added marginally to the portfolio's uninsured basket, which
is capped at an allowable limit of 20% of net assets. We continue to seek
opportunities within this sector, as it tends to offer good total return
potential as well as additional yield. Within the New York insured municipal
market, a well-defined trading range provided us with opportunities to execute
relative value trades, thereby improving on security structures and book yields.
For the six-month period ended February 28, 2006, the Fund's Auction Market
Preferred Stock (AMPS) had average yields as follows: Series A, 2.55%; Series B,
2.49%; Series C, 2.63%; Series D, 2.72%; and Series E, 2.45%. At this point in
the Fed's monetary tightening cycle, interest rate increases are having an
impact on the Fund's borrowing costs. The Fed raised the short-term interest
rate target 100 basis points during the six-month period. Nevertheless, we are
still able to borrow at a lower rate than where we invest, and this has
continued to generate an income benefit to the holders of Common Stock. Of
course, should the spread between short-term and long-term interest rates
narrow, the benefits of leveraging will decline and, as a result, reduce the
yield on the Fund's Common Stock. At the end of the period, the Fund's leverage
amount, due to AMPS, was 40.25% of total net assets, before the deduction of
Preferred Stock. (For a more complete explanation of the benefits and risks of
leveraging, see page 8 of this report to shareholders.)
How would you characterize the portfolio's position at the close of the period?
In terms of duration (that is, sensitivity to interest rate risk), the Fund
ended the period neutral to slightly long relative to its New York insured
peers. The Fed appears relatively close to the end of its measured monetary
tightening campaign, with the consensus currently factoring in two more interest
rate hikes by mid-year. When the Fed does signal its end, we would expect to see
a strong rally in the intermediate part of the curve and a more moderate rally
in the long end. Based on this scenario, we are targeting the intermediate to
long maturity range, essentially 20 years - 30 years.
We expect new municipal supply to remain fairly muted, creating a positive
technical environment that should allow municipal bonds to outperform Treasuries
in the months ahead. We continue to look for opportunities to diversify the Fund
while also seeking to balance yield and total return potential in the portfolio.
Robert D. Sneeden
Vice President and Portfolio Manager
MuniHoldings Florida Insured Fund
Timothy T. Browse, CFA
Vice President and Portfolio Manager
MuniHoldings New York Insured Fund, Inc.
March 9, 2006
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 7
The Benefits and Risks of Leveraging
The Funds utilize leveraging to seek to enhance the yield and net asset value of
their Common Shares or Common Stock. However, these objectives cannot be
achieved in all interest rate environments. To leverage, the Funds issue
Preferred Shares or Stock, which pay dividends at prevailing short-term interest
rates, and invest the proceeds in long-term municipal bonds. The interest earned
on these investments, net of dividends to Preferred Shares or Stock, is paid to
Common Shareholders or Common Stock shareholders in the form of dividends, and
the value of these portfolio holdings is reflected in the per share net asset
value of the Fund's Common Shares or Stock. However, in order to benefit Common
Shareholders or Common Stock shareholders, the yield curve must be positively
sloped; that is, short-term interest rates must be lower than long-term interest
rates. At the same time, a period of generally declining interest rates will
benefit Common Shareholders or Common Stock shareholders. If either of these
conditions change, then the risks of leveraging will begin to outweigh the
benefits.
To illustrate these concepts, assume a fund's Common Shares or Stock
capitalization of $100 million and the issuance of Preferred Shares or Stock for
an additional $50 million, creating a total value of $150 million available for
investment in long-term municipal bonds. If prevailing short-term interest rates
are approximately 3% and long-term interest rates are approximately 6%, the
yield curve has a strongly positive slope. The fund pays dividends on the $50
million of Preferred Shares or Stock based on the lower short-term interest
rates. At the same time, the fund's total portfolio of $150 million earns the
income based on long-term interest rates.
In this case, the dividends paid to Preferred Shareholders or Preferred Stock
shareholders are significantly lower than the income earned on the fund's
long-term investments, and therefore the Common Shareholders or Common Stock
shareholders are the beneficiaries of the incremental yield. However, if
short-term interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental yield pickup on the Common Shares
or Stock will be reduced or eliminated completely. At the same time, the market
value on the fund's Common Shares or Stock (that is, its price as listed on the
New York Stock Exchange), may, as a result, decline. Furthermore, if long-term
interest rates rise, the Common Shares' or Stock's net asset value will reflect
the full decline in the price of the portfolio's investments, since the value of
the fund's Preferred Shares or Stock does not fluctuate. In addition to the
decline in net asset value, the market value of the fund's Common Shares or
Stock may also decline.
As a part of their investment strategy, the Funds may invest in certain
securities whose potential income return is inversely related to changes in a
floating interest rate ("inverse floaters"). In general, income on inverse
floaters will decrease when short-term interest rates increase and increase when
short-term interest rates decrease. Investments in inverse floaters may be
characterized as derivative securities and may subject the Funds to the risks of
reduced or eliminated interest payments and losses of invested principal. In
addition, inverse floaters have the effect of providing investment leverage and,
as a result, the market value of such securities will generally be more volatile
than that of fixed rate, tax-exempt securities. To the extent the Funds invest
in inverse floaters, the market value of each Fund's portfolio and the net asset
value of each Fund's shares may also be more volatile than if the Funds did not
invest in these securities. As of February 28, 2006, the percentages of
MuniHoldings Florida Insured Fund's and MuniHoldings New York Insured Fund,
Inc.'s total net assets invested in inverse floaters were 4.88% and 7.60%,
respectively, before the deduction of Preferred Shares or Stock.
8 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
Portfolio Information
Quality Profiles as of February 28, 2006
MuniHoldings Florida Insured Fund Percent of Total
By S&P/Moody's Rating Investments
--------------------------------------------------------------------------------
AAA/Aaa ..................................................... 95.9%
AA/Aa ....................................................... 0.5
A/A ......................................................... 2.5
BBB/Baa ..................................................... 0.6
Other* ...................................................... 0.5
--------------------------------------------------------------------------------
* Includes portfolio holdings in short-term investments and variable rate
demand notes.
MuniHoldings New York Insured Fund, Inc. Percent of Total
By S&P/Moody's Rating Investments
--------------------------------------------------------------------------------
AAA/Aaa ..................................................... 87.9%
AA/Aa ....................................................... 2.1
A/A ......................................................... 5.9
BBB/Baa ..................................................... 2.2
Other* ...................................................... 1.9
--------------------------------------------------------------------------------
* Includes portfolio holdings in short-term investments and variable rate
demand notes.
Swap Agreements
The Funds may invest in swap agreements, which are over-the-counter contracts in
which one party agrees to make periodic payments based on the change in market
value of a specified bond, basket of bonds, or index in return for periodic
payments based on a fixed or variable interest rate or the change in market
value of a different bond, basket of bonds or index. Swap agreements may be used
to obtain or reduce 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 the swap will default on its obligation to
pay the Fund and the risk that the Fund will not be able to meet its obligations
to pay the other party to the agreement.
Dividend Policy
The Funds' dividend policy is to distribute all or a portion of their net
investment income to their shareholders on a monthly basis. In order to provide
shareholders with a more stable level of dividend distributions, the Funds may
at times pay out less than the entire amount of net investment income earned in
any particular month and may at times, in any particular month, pay out such
accumulated but undistributed income in addition to net investment income earned
in that month. As a result, the dividends paid by the Funds for any particular
month may be more or less than the amount of net investment income earned by the
Funds during such month. The Funds' current accumulated but undistributed net
investment income, if any, is disclosed in the Statement of Net Assets, which
comprises part of the financial information included in these reports.
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 9
Schedule of Investments MuniHoldings Florida Insured Fund (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
District of Columbia--0.4%
--------------------------------------------------------------------------------
$ 2,050 Metropolitan Washington Airports Authority, D.C.,
Airport System Revenue Bonds, AMT, Series A,
5.25% due 10/01/2032 (h) $ 2,138
================================================================================
Florida--158.3%
--------------------------------------------------------------------------------
6,600 Alachua County, Florida, School Board, COP, 5.25%
due 7/01/2029 (b) 7,098
--------------------------------------------------------------------------------
4,195 Beacon Tradeport Community Development District,
Florida, Special Assessment Revenue Refunding Bonds
(Commercial Project), Series A, 5.625% due 5/01/2032 (k) 4,539
--------------------------------------------------------------------------------
805 Brevard County, Florida, HFA, S/F Mortgage Revenue
Bonds, AMT, 6.80% due 3/01/2028 (d) 825
--------------------------------------------------------------------------------
575 Clay County, Florida, HFA, S/F Mortgage Revenue Bonds,
AMT, 6.55% due 3/01/2028 (d) 588
--------------------------------------------------------------------------------
1,320 Clay County, Florida, School Board, COP (Master Lease
Program), 5.75% due 7/01/2010 (a)(j) 1,445
--------------------------------------------------------------------------------
5,000 Collier County, Florida, IDA, IDR, Refunding (Southern
States Utilities), AMT, 6.50% due 10/01/2025 5,116
--------------------------------------------------------------------------------
Dade County, Florida, Water and Sewer System
Revenue Bonds (h):
20,575 5.25% due 10/01/2021 21,289
21,640 5.25% due 10/01/2026 22,327
--------------------------------------------------------------------------------
Escambia County, Florida, HFA, S/F Mortgage Revenue
Refunding Bonds (Multi-County Program), AMT,
Series A (i):
340 6.30% due 10/01/2020 341
1,280 6.375% due 10/01/2026 1,282
--------------------------------------------------------------------------------
1,835 Flagler County, Florida, Capital Improvement Revenue
Bonds, 5% due 10/01/2035 (a) 1,935
--------------------------------------------------------------------------------
1,020 Flagler County, Florida, School Board, COP, Series A,
5% due 8/01/2024 (c) 1,079
--------------------------------------------------------------------------------
Florida HFA, Homeowner Mortgage Revenue
Refunding Bonds, AMT, Series 2 (a):
1,800 5.75% due 7/01/2014 1,861
14,980 5.90% due 7/01/2029 15,458
--------------------------------------------------------------------------------
960 Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Refunding Bonds, AMT, Series 4,
6.25% due 7/01/2022 (c) 984
--------------------------------------------------------------------------------
2,055 Florida Housing Finance Corporation, Housing Revenue
Bonds (Waverly Apartments), AMT, Series C-1, 6.30%
due 7/01/2030 (c) 2,201
--------------------------------------------------------------------------------
Florida Municipal Loan Council Revenue Bonds,
Series B (a):
1,285 5.375% due 11/01/2025 1,378
4,150 5.375% due 11/01/2030 4,441
--------------------------------------------------------------------------------
3,750 Florida State Board of Education, Capital Outlay, GO,
Public Education, Refunding, Series D, 5.75%
due 6/01/2022 (c) 4,121
--------------------------------------------------------------------------------
7,600 Florida State Board of Education, Capital Outlay, GO,
Public Education, Series C, 5.75% due 6/01/2010 (h)(j) 8,328
12,725 Florida State Board of Education, Lottery Revenue
Bonds, DRIVERS, Series 222, 8.997%
due 7/01/2017 (f)(h) 15,695
--------------------------------------------------------------------------------
2,200 Florida State Board of Regents, Housing Revenue Bonds
(University of Central Florida), 5.25%
due 10/01/2026 (h) 2,346
--------------------------------------------------------------------------------
7,165 Florida State Board of Regents, University Systems
Improvement Revenue Bonds, 5.25%
due 7/01/2007 (a)(j) 7,407
--------------------------------------------------------------------------------
3,505 Florida State Department of General Services, Division
Facilities Management Revenue Bonds (Florida Facilities
Pool), Series A, 6% due 9/01/2010 (b)(j) 3,892
--------------------------------------------------------------------------------
Florida State Governmental Utility Authority, Utility
Revenue Bonds (b):
2,350 (Citrus Utility System), 5.125% due 10/01/2033 2,479
2,900 (Lehigh Utility System), 5.125% due 10/01/2033 3,059
--------------------------------------------------------------------------------
14,325 Florida State Turnpike Authority, Turnpike Revenue
Bonds, DRIVERS, Series 218, 8.987%
due 7/01/2029 (f)(h) 17,669
--------------------------------------------------------------------------------
15,000 Hernando County, Florida, School Board, COP, 5%
due 7/01/2030 (a) 15,834
--------------------------------------------------------------------------------
7,135 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series A, 6% due 11/15/2031 7,694
--------------------------------------------------------------------------------
Hillsborough County, Florida, School Board, COP (a)(j):
6,600 5.375% due 7/01/2009 6,995
33,400 6% due 7/01/2009 36,352
--------------------------------------------------------------------------------
1,300 Indian River County, Florida, Water and Sewer Revenue
Refunding Bonds, Series A, 5.25% due 9/01/2018 (h) 1,377
--------------------------------------------------------------------------------
1,800 Jacksonville, Florida, Economic Development
Commission, Health Care Facilities Revenue Bonds
(Mayo Clinic--Jacksonville), Series A, 5.50%
due 11/15/2036 (a) 1,956
--------------------------------------------------------------------------------
7,305 Jacksonville, Florida, Guaranteed Entitlement Revenue
Refunding and Improvement Bonds, 5.25%
due 10/01/2032 (h) 7,818
--------------------------------------------------------------------------------
Jacksonville, Florida, Port Authority, Seaport Revenue
Bonds, AMT (a):
1,130 5.625% due 11/01/2010 (j) 1,216
1,870 5.625% due 11/01/2026 1,991
--------------------------------------------------------------------------------
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedules of Investments,
we have abbreviated the names of many of the securities according to the list at
right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DATES Daily Adjustable Tax-Exempt Securities
DRIVERS Derivative Inverse Tax-Exempt Receipts
GO General Obligation Bonds
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
10 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
Schedule of Investments (continued)
MuniHoldings Florida Insured Fund (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Florida (continued)
--------------------------------------------------------------------------------
Jacksonville, Florida, Sales Tax Revenue Bonds (b):
$ 2,000 5.50% due 10/01/2016 $ 2,184
3,800 5.50% due 10/01/2018 4,129
--------------------------------------------------------------------------------
1,500 Jacksonville, Florida, Water and Sewer Revenue Bonds
(United Water Florida Project), AMT, 6.35%
due 8/01/2025 (b) 1,534
--------------------------------------------------------------------------------
Lee County, Florida, Airport Revenue Bonds (c):
9,963 RIB, AMT, Series 811-X, 8.52% due 10/01/2029 (f) 11,767
1,000 Series B, 5.75% due 10/01/2010 (j) 1,101
--------------------------------------------------------------------------------
4,225 Lee County, Florida, Capital Revenue Bonds, 5.25%
due 10/01/2023 (b) 4,595
--------------------------------------------------------------------------------
100 Lee County, Florida, HFA, S/F Mortgage Revenue Bonds
(Multi-County Program), AMT, Series A-1, 7.20%
due 3/01/2033 (d)(g) 101
--------------------------------------------------------------------------------
525 Lee County, Florida, HFA, S/F Mortgage Revenue
Refunding Bonds, AMT, Series A-2, 6.30%
due 3/01/2029 (d)(e)(g) 530
--------------------------------------------------------------------------------
Leesburg, Florida, Capital Improvement Revenue
Bonds (h):
1,605 5.25% due 10/01/2027 1,742
3,425 5.25% due 10/01/2034 3,698
--------------------------------------------------------------------------------
525 Manatee County, Florida, HFA, S/F Mortgage Revenue
Refunding Bonds, AMT, Sub-Series 1, 6.25%
due 11/01/2028 (d) 527
--------------------------------------------------------------------------------
2,000 Marco Island, Florida, Utility System Revenue Bonds,
5% due 10/01/2033 (a) 2,094
--------------------------------------------------------------------------------
5,990 Martin County, Florida, Utilities System Revenue Bonds,
5.125% due 10/01/2033 (b) 6,319
--------------------------------------------------------------------------------
Miami Beach, Florida, Stormwater Revenue Bonds (h):
1,630 5.75% due 9/01/2016 1,788
1,000 5.25% due 9/01/2020 1,071
4,400 5.25% due 9/01/2025 4,688
1,910 5.375% due 9/01/2030 2,041
--------------------------------------------------------------------------------
Miami Beach, Florida, Water and Sewer Revenue
Bonds (b):
2,690 5.625% due 9/01/2018 2,928
10,600 5.75% due 9/01/2025 11,575
--------------------------------------------------------------------------------
Miami-Dade County, Florida, Aviation Revenue Bonds,
AMT, Series A:
7,150 5% due 10/01/2033 (c) 7,335
4,390 5.125% due 10/01/2035 (c) 4,540
6,000 (Miami International Airport), 6%
due 10/01/2024 (h) 6,543
10,000 (Miami International Airport), 6%
due 10/01/2029 (h) 10,906
--------------------------------------------------------------------------------
Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport), AMT,
Series A:
3,270 5% due 10/01/2037 (n) 3,376
19,890 5% due 10/01/2038 (l) 20,532
--------------------------------------------------------------------------------
Miami-Dade County, Florida, Educational Facilities
Authority Revenue Bonds, Series A (b):
1,000 5.50% due 4/01/2019 1,077
19,425 6% due 4/01/2023 21,307
5,000 (University of Miami), 5.75% due 4/01/2029 5,427
--------------------------------------------------------------------------------
Miami-Dade County, Florida, Expressway Authority,
Toll System Revenue Bonds, Series B (h):
8,995 5.25% due 7/01/2027 9,732
11,375 5% due 7/01/2033 11,919
--------------------------------------------------------------------------------
12,250 Miami-Dade County, Florida, Expressway Authority,
Toll System Revenue Refunding Bonds, 5.125%
due 7/01/2025 (h) 13,011
--------------------------------------------------------------------------------
6,705 Miami-Dade County, Florida, GO (Parks Program),
6% due 11/01/2024 (h) 7,313
--------------------------------------------------------------------------------
2,185 Miami-Dade County, Florida, HFA, M/F Mortgage
Revenue Bonds (Marbrisa Apartments Project), AMT,
Series 2A, 6% due 8/01/2026 (c) 2,325
--------------------------------------------------------------------------------
Miami-Dade County, Florida, IDA, IDR (b):
5,100 (Airis Miami II LLC Project), AMT,
6% due 10/15/2019 5,520
3,280 (BAC Funding Corporation Project), Series A,
5.25% due 10/01/2020 3,545
--------------------------------------------------------------------------------
Miami-Dade County, Florida, Solid Waste System
Revenue Bonds:
2,945 5.50% due 10/01/2015 (c) 3,212
3,105 5.50% due 10/01/2016 (c) 3,382
8,800 5.25% due 10/01/2030 (a) 9,581
--------------------------------------------------------------------------------
Nassau County, Florida, Public Improvement Revenue
Refunding Bonds (a):
1,035 5.75% due 5/01/2016 1,137
1,095 5.75% due 5/01/2017 1,198
1,155 5.75% due 5/01/2018 1,264
1,225 5.75% due 5/01/2019 1,341
--------------------------------------------------------------------------------
5,175 Nassau County, Florida, Water and Sewer System
Revenue Bonds, 5.125% due 9/01/2033 (a) 5,457
--------------------------------------------------------------------------------
2,375 Orange County, Florida, HFA, M/F Housing Revenue
Bonds, Series A, 6.40% due 1/01/2031 (a) 2,470
--------------------------------------------------------------------------------
1,275 Orange County, Florida, HFA, S/F Mortgage Revenue
Bonds, AMT, 6.85% due 10/01/2027 (d)(g) 1,287
--------------------------------------------------------------------------------
Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds:
2,900 (Adventist Health System), 6.25% due 11/15/2024 3,232
9,220 (Orlando Regional Healthcare), 6%
due 12/01/2012 (j) 10,449
5,000 (Orlando Regional Healthcare), Series A, 6.25%
due 10/01/2018 (a) 6,027
--------------------------------------------------------------------------------
Orange County, Florida, School Board, COP:
1,300 5.50% due 8/01/2025 (b) 1,392
2,000 Series A, 5% due 8/01/2031 (h) 2,110
--------------------------------------------------------------------------------
Orange County, Florida, Tourist Development,
Tax Revenue Bonds (b):
31,745 5.75% due 10/01/2009 (j) 34,168
27,075 5.50% due 10/01/2032 29,255
--------------------------------------------------------------------------------
Orlando and Orange County, Florida, Expressway
Authority Revenue Bonds, Series B (b):
3,250 5% due 7/01/2030 3,402
37,550 5% due 7/01/2035 39,140
--------------------------------------------------------------------------------
Osceola County, Florida, Infrastructure Sales Surplus
Tax Revenue Bonds (b):
3,155 5.375% due 10/01/2018 3,433
7,680 5.25% due 10/01/2025 8,225
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 11
Schedule of Investments (continued)
MuniHoldings Florida Insured Fund (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Florida (continued)
--------------------------------------------------------------------------------
Osceola County, Florida, Sales Tax Revenue Bonds (h):
$ 2,065 5.625% due 6/01/2016 $ 2,275
1,605 5.625% due 6/01/2017 1,759
1,075 5.625% due 6/01/2018 1,178
--------------------------------------------------------------------------------
4,240 Osceola County, Florida, School Board, COP, Series A,
5.25% due 6/01/2027 (b) 4,535
--------------------------------------------------------------------------------
5,560 Osceola County, Florida, Tourist Development Tax
Revenue Bonds, Series A, 5.50% due 10/01/2027 (h) 6,034
--------------------------------------------------------------------------------
1,715 Palm Bay, Florida, Utility System Improvement Revenue
Bonds, Series A, 5% due 10/01/2025 (h) 1,829
--------------------------------------------------------------------------------
Palm Beach County, Florida, GO (Liquid Acquisition
Program), Series B (a):
4,605 5.75% due 8/01/2016 4,971
5,330 5.75% due 8/01/2018 5,745
--------------------------------------------------------------------------------
5,500 Palm Beach County, Florida, Public Improvement
Revenue Bonds (Convention Center Project), 5.625%
due 11/01/2011 (h)(j) 6,069
--------------------------------------------------------------------------------
6,115 Palm Beach County, Florida, School Board, COP,
Refunding, Series B, 5.375% due 8/01/2017 (b) 6,620
--------------------------------------------------------------------------------
Palm Beach County, Florida, School Board, COP,
Series A (h)(j):
5,070 6% due 8/01/2010 5,621
13,205 6.25% due 8/01/2010 14,770
--------------------------------------------------------------------------------
4,000 Palm Coast, Florida, Utility System Revenue Bonds,
5% due 10/01/2027 (a) 4,193
--------------------------------------------------------------------------------
3,000 Panama City, Florida, Water and Sewer Revenue Bonds,
Series B, 5.25% due 10/01/2022 (a) 3,282
--------------------------------------------------------------------------------
Peace River/Manasota Regional Water Supply Authority,
Florida, Utility System Revenue Bonds, Series A (c):
6,000 5% due 10/01/2030 6,351
10,000 5% due 10/01/2035 10,545
--------------------------------------------------------------------------------
2,070 Pembroke Pines, Florida, Public Improvement Revenue
Bonds, Series A, 5% due 10/01/2034 (b) 2,173
--------------------------------------------------------------------------------
400 Pinellas County, Florida, Health Facilities Authority,
Revenue Refunding Bonds (Pooled Hospital Loan
Program), DATES, VRDN, 3% due 12/01/2015 (b)(o) 400
--------------------------------------------------------------------------------
Polk County, Florida, Public Facilities Revenue Bonds (a):
3,195 5% due 12/01/2025 3,406
4,940 5% due 12/01/2033 5,209
--------------------------------------------------------------------------------
9,885 Polk County, Florida, School Board, COP, Master Lease,
Series A, 5.50% due 1/01/2025 (c) 10,667
--------------------------------------------------------------------------------
9,645 Pompano Beach, Florida, Water and Sewer Revenue
Bonds, 6% due 7/01/2020 (h) 10,060
--------------------------------------------------------------------------------
Port St. Lucie, Florida, Utility Revenue Bonds (a):
1,280 5.25% due 9/01/2026 1,400
1,345 5.25% due 9/01/2027 1,459
--------------------------------------------------------------------------------
Saint Johns County, Florida, IDA, IDR, Refunding
(Professional Golf Project) (a):
1,275 5.50% due 9/01/2015 1,400
1,345 5.50% due 9/01/2016 1,475
1,420 5.50% due 9/01/2017 1,545
1,500 5.50% due 9/01/2018 1,632
--------------------------------------------------------------------------------
Saint Johns County, Florida, Ponte Vedra Utility System
Revenue Bonds (c):
2,945 5% due 10/01/2030 3,117
2,430 5% due 10/01/2035 2,562
--------------------------------------------------------------------------------
Saint Johns County, Florida, Sales Tax Revenue Bonds (b):
1,375 Series A, 5.25% due 10/01/2028 1,487
1,355 Series A, 5.25% due 10/01/2031 1,463
2,000 Series A, 5.25% due 10/01/2034 2,155
1,430 Series B, 5.25% due 10/01/2027 1,548
840 Series B, 5.25% due 10/01/2032 906
--------------------------------------------------------------------------------
3,500 Saint Johns County, Florida, Transportation Improvement
Revenue Bonds, 5.125% due 10/01/2032 (b) 3,694
--------------------------------------------------------------------------------
4,055 Saint Lucie County, Florida, School Board, COP,
6.25% due 7/01/2010 (c)(j) 4,528
--------------------------------------------------------------------------------
Saint Lucie County, Florida, School Board, COP,
Refunding (c):
1,495 Series A, 5.50% due 7/01/2018 1,624
1,170 Series C, 5.50% due 7/01/2018 1,271
--------------------------------------------------------------------------------
Saint Lucie, Florida, West Services District, Utility
Revenue Bonds (a):
1,720 5.25% due 10/01/2034 1,869
4,750 5% due 10/01/2038 5,001
--------------------------------------------------------------------------------
3,250 Saint Lucie, Florida, West Services District, Utility
Revenue Refunding Bonds, Senior Lien, 6%
due 10/01/2022 (a) 3,622
--------------------------------------------------------------------------------
3,000 Seminole County, Florida, Sales Tax Revenue Bonds,
Series A, 5% due 10/01/2031 (a) 3,173
--------------------------------------------------------------------------------
1,750 South Lake County, Florida, Hospital District Revenue
Bonds (South Lake Hospital Inc.), 5.80%
due 10/01/2034 1,828
--------------------------------------------------------------------------------
2,250 Sunrise, Florida, Utility System Revenue Refunding
Bonds, 5.20% due 10/01/2022 (b) 2,519
--------------------------------------------------------------------------------
2,430 Sunrise Lakes, Florida, Phase 4 Recreation District,
Refunding Bonds, GO, 5.25% due 8/01/2024 (b) 2,508
--------------------------------------------------------------------------------
8,200 Tallahassee, Florida, Energy System Revenue Bonds,
5% due 10/01/2035 (a) 8,634
--------------------------------------------------------------------------------
Tallahassee, Florida, Lease Revenue Bonds (Florida
State University Project), Series A (a):
2,800 5.25% due 8/01/2023 2,944
1,000 5.375% due 8/01/2026 1,068
--------------------------------------------------------------------------------
30,335 Tampa Bay, Florida, Water Utility System Revenue
Bonds, 6% due 10/01/2011 (h)(j) 34,008
--------------------------------------------------------------------------------
14,750 Tampa, Florida, Sports Authority Revenue Bonds
(Local Option Sales Tax--Stadium Project), 5.25%
due 1/01/2007 (a)(j) 15,122
--------------------------------------------------------------------------------
3,835 Taylor County, Florida, Sales Tax Revenue Bonds,
6% due 10/01/2010 (h)(j) 4,231
--------------------------------------------------------------------------------
8,935 University of Central Florida (UCF) Athletics Association
Inc., COP, Series A, 5.25% due 10/01/2034 (h) 9,567
--------------------------------------------------------------------------------
Village Center Community Development District,
Florida, Recreational Revenue Bonds, Series A (a):
10,775 5.375% due 11/01/2034 11,805
1,750 5.125% due 11/01/2036 1,861
--------------------------------------------------------------------------------
12 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
Schedule of Investments (concluded)
MuniHoldings Florida Insured Fund (in Thousands)
Face
Amount Municipal Bonds Value
===============================================================================
Florida (concluded)
-------------------------------------------------------------------------------
$ 3,000 Village Center Community Development District, Florida,
Utility Revenue Bonds, 5.25% due 10/01/2023 (a) $ 3,268
-------------------------------------------------------------------------------
Volusia County, Florida, IDA, Student Housing Revenue
Bonds (Stetson University Project), Series A (l):
2,075 5% due 6/01/2025 2,209
1,740 5% due 6/01/2035 1,832
-------------------------------------------------------------------------------
9,450 Winter Haven, Florida, Utility System Revenue Refunding
and Improvement Bonds, 5% due 10/01/2035 (a) 9,965
===============================================================================
Maryland--0.9%
-------------------------------------------------------------------------------
4,740 Baltimore, Maryland, Convention Center Hotel Revenue
Bonds, Senior Series A, 5.25% due 9/01/2039 (n) 5,109
===============================================================================
Texas--1.7%
-------------------------------------------------------------------------------
9,350 San Antonio, Texas, Convention Center Hotel Finance
Corporation, Contract Revenue Empowerment Zone
Bonds, AMT, Series A, 5% due 7/15/2034 (b) 9,610
===============================================================================
Puerto Rico--0.5%
-------------------------------------------------------------------------------
2,725 Puerto Rico Industrial, Tourist, Educational, Medical
and Environmental Control Facilities Revenue Bonds
(University Plaza Project), Series A, 5.625%
due 7/01/2019 (a) 2,943
-------------------------------------------------------------------------------
Total Municipal Bonds
(Cost--$860,001)--161.8% 908,190
===============================================================================
Shares
Held Short-Term Securities
===============================================================================
4,227 CMA Florida Municipal Money Fund, 2.56% (m)(p) 4,227
-------------------------------------------------------------------------------
Total Short-Term Securities
(Cost--$4,227)--0.8% 4,227
===============================================================================
Total Investments (Cost--$864,228*)--162.6% 912,417
Other Assets Less Liabilities--2.2% 12,155
Preferred Shares, at Redemption Value--(64.8%) (363,360)
---------
Net Assets Applicable to Common Shares--100.0% $ 561,212
=========
* The cost and unrealized appreciation (depreciation) of investments as of
February 28, 2006, as computed for federal income tax purposes, were as
follows:
Aggregate cost ............................................. $ 864,851
=========
Gross unrealized appreciation .............................. $ 47,749
Gross unrealized depreciation .............................. (183)
---------
Net unrealized appreciation ................................ $ 47,566
=========
(a) MBIA Insured.
(b) AMBAC Insured.
(c) FSA Insured.
(d) GNMA Collateralized.
(e) FHLMC Collateralized.
(f) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(g) FNMA Collateralized.
(h) FGIC Insured.
(i) FHA Insured.
(j) Prerefunded.
(k) Radian Insured.
(l) CIFG Insured.
(m) 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 4,227 $ 27
Merrill Lynch Institutional Tax-Exempt Fund (2,535) $ 53
--------------------------------------------------------------------------
(n) XL Capital Insured.
(o) 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.
(p) Variable rate security.
Forward interest rate swaps outstanding as of February 28, 2006 were as
follows:
--------------------------------------------------------------------------
Notional Unrealized
Amount Depreciation
--------------------------------------------------------------------------
Pay a fixed rate of 3.977% and receive
a floating rate based on 1-week Bond
Market Association rate
Broker, JPMorgan Chase Bank
Expires April 2026 $24,000 $ (45)
--------------------------------------------------------------------------
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 13
Schedule of Investments MuniHoldings New York Insured Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
New York--148.9%
--------------------------------------------------------------------------------
Albany County, New York, Airport Authority, Airport
Revenue Bonds, AMT (g):
$ 1,500 5.375% due 12/15/2017 $ 1,567
1,500 5.50% due 12/15/2019 1,571
5,200 6% due 12/15/2023 5,505
--------------------------------------------------------------------------------
3,375 Albany, New York, IDA, Civic Facility Revenue Bonds
(The University Heights Association--Albany Law
School), Series A, 6.75% due 12/01/2029 (k) 3,736
--------------------------------------------------------------------------------
1,000 Albany, New York, Municipal Water Finance Authority,
Water and Sewer System Revenue Refunding Bonds,
Series A, 6.375% due 12/01/2009 (e)(j) 1,110
--------------------------------------------------------------------------------
2,000 Buffalo, New York, GO, Series D, 6%
due 12/01/2009 (g)(j) 2,192
--------------------------------------------------------------------------------
1,025 Erie County, New York, GO, Public Improvement,
Series A, 5.75% due 10/01/2013 (e) 1,110
--------------------------------------------------------------------------------
Erie County, New York, IDA, School Facility Revenue
Bonds (City of Buffalo Project) (g):
2,500 5.75% due 5/01/2019 2,776
5,150 5.75% due 5/01/2024 5,572
--------------------------------------------------------------------------------
Long Island Power Authority, New York, Electric System
Revenue Bonds, Series A (a):
3,000 5% due 9/01/2029 3,161
5,950 5% due 9/01/2034 6,245
--------------------------------------------------------------------------------
5,000 Metropolitan Transportation Authority, New York,
Dedicated Tax Fund Revenue Bonds, Series A,
5% due 11/15/2011 (e)(j) 5,376
--------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York,
Revenue Bonds:
4,250 Series A, 5% due 11/15/2033 (a) 4,487
7,000 Series B, 5% due 11/15/2035 (i) 7,385
--------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York,
Revenue Refunding Bonds:
3,000 RIB, Series 724X, 8.07% due 11/15/2032 (g)(l) 3,662
3,000 Series A, 5% due 11/15/2030 (g) 3,167
2,500 Series A, 5.25% due 11/15/2031 (e) 2,684
29,000 Series A, 5.75% due 11/15/2032 (g) 32,202
1,500 Series B, 5% due 11/15/2028 (i) 1,575
--------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York,
Service Contract Revenue Refunding Bonds, Series A (e):
3,500 5% due 7/01/2021 3,712
2,000 5% due 7/01/2025 2,120
--------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York,
Transit Facilities Revenue Bonds (j):
2,535 Series C, 4.75% due 7/01/2012 (g) 2,702
1,000 Series C-1, 5.50% due 7/01/2008 (i) 1,052
--------------------------------------------------------------------------------
Metropolitan Transportation Authority, New York,
Transportation Revenue Bonds, Series A:
2,000 5% due 11/15/2026 (g) 2,106
2,500 5% due 11/15/2032 (e) 2,617
--------------------------------------------------------------------------------
6,300 Metropolitan Transportation Authority, New York,
Transportation Revenue Refunding Bonds, Series F,
5.25% due 11/15/2027 (i) 6,765
--------------------------------------------------------------------------------
2,385 Monroe Woodbury, New York, Central School District,
GO, 5.625% due 5/15/2006 (i)(j) 2,444
--------------------------------------------------------------------------------
1,410 Montgomery County, New York, IDA, Lease Revenue
Bonds (Hamilton Fulton Montgomery Board of
Cooperative Educational Services Project), Series A,
5% due 7/01/2034 (d) 1,472
--------------------------------------------------------------------------------
5,210 Nassau Health Care Corporation, New York, Health
System Revenue Bonds, 5.75% due 8/01/2009 (g)(j) 5,688
--------------------------------------------------------------------------------
2,000 New York City, New York, City Health and Hospital
Corporation, Health System Revenue Refunding Bonds,
Series A, 5.25% due 2/15/2017 (i) 2,108
--------------------------------------------------------------------------------
2,340 New York City, New York, City Housing Development
Corporation, M/F Housing Revenue Bonds, AMT,
Series H-2, 5.125% due 11/01/2034 2,364
--------------------------------------------------------------------------------
885 New York City, New York, City IDA, Civic Facility
Revenue Bonds (Anti-Defamation League Foundation),
Series A, 5.50% due 6/01/2022 (i) 925
--------------------------------------------------------------------------------
1,200 New York City, New York, City IDA, Civic Facility
Revenue Refunding Bonds (Nightingale-Bamford
School), 5.25% due 1/15/2017 (a) 1,301
--------------------------------------------------------------------------------
12,700 New York City, New York, City IDA, IDR (Japan Airlines
Company), AMT, 6% due 11/01/2015 (g) 13,031
--------------------------------------------------------------------------------
7,965 New York City, New York, City IDA, Parking Facility
Revenue Bonds (Royal Charter--New York
Presbyterian), 5.75% due 12/15/2029 (g) 8,917
--------------------------------------------------------------------------------
1,500 New York City, New York, City IDA, Special Facilities
Revenue Refunding Bonds (Terminal One Group
Association Project), AMT, 5.50% due 1/01/2024 1,609
--------------------------------------------------------------------------------
500 New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System, Crossover Revenue
Refunding Bonds, Series F, 5% due 6/15/2029 (g) 518
--------------------------------------------------------------------------------
New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds:
11,500 RIB, Series 726X, 8.07% due 6/15/2027 (i)(l) 13,843
2,850 Series A, 5.75% due 6/15/2009 (e)(j) 3,079
3,970 Series B, 5.75% due 6/15/2006 (i)(j) 4,038
11,000 Series B, 5.75% due 6/15/2007 (i)(j) 11,435
900 VRDN, Series C, 2.85% due 6/15/2022 (e)(m) 900
1,700 VRDN, Series C, 2.85% due 6/15/2023 (e)(m) 1,700
--------------------------------------------------------------------------------
New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System, Revenue
Refunding Bonds:
1,250 Series A, 5.125% due 6/15/2034 (i) 1,314
5,500 Series A, 5% due 6/15/2035 (a) 5,739
7,380 Series B, 5.75% due 6/15/2026 (i) 7,505
--------------------------------------------------------------------------------
4,600 New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System, Second General
Resolution Revenue Refunding Bonds, VRDN, Series AA-1,
2.99% due 6/15/2032 (m) 4,600
--------------------------------------------------------------------------------
New York City, New York, City Transitional Finance
Authority, Future Tax Secured Revenue Bonds:
1,145 Series B, 5.50% due 2/01/2012 (i) 1,249
805 Series B, 5.50% due 2/01/2013 (i) 880
6,405 Series B, 6.25% due 11/15/2018 (e) 7,156
1,180 Series C, 5.50% due 5/01/2009 (j) 1,263
16,200 Series C, 5% due 2/01/2033 (e) 16,965
2,500 Series E, 5.25% due 2/01/2022 (i) 2,695
100 VRDN, Series C, 2.94% due 5/01/2028 (m) 100
--------------------------------------------------------------------------------
14 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
Schedule of Investments (continued)
MuniHoldings New York Insured Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
New York (continued)
--------------------------------------------------------------------------------
$ 1,000 New York City, New York, City Transitional Finance
Authority, Revenue Refunding Bonds, Series A,
5% due 11/15/2026 (e) $ 1,048
--------------------------------------------------------------------------------
New York City, New York, GO:
4,750 RIB, Series 725X, 8.07% due 3/15/2027 (g)(l) 5,723
4,500 Series B, 5.75% due 8/01/2013 (i) 4,934
3,750 Series D, 5.25% due 10/15/2023 4,015
5,000 Series D, 5% due 11/01/2034 5,196
1,850 Series I, 6.25% due 4/15/2007 (i)(j) 1,926
8,000 Series J, 5% due 5/15/2023 8,389
8,300 Series M, 5% due 4/01/2035 8,638
1,150 Sub-Series C-1, 5.25% due 8/15/2026 1,234
200 VRDN, Series B, Sub-Series B-5, 2.92%
due 8/15/2022 (i)(m) 200
2,900 VRDN, Series B-2, Sub-Series B-5, 2.92%
due 8/15/2011 (i)(m) 2,900
--------------------------------------------------------------------------------
New York City, New York GO, Refunding Series A:
880 6.375% due 5/15/2010 (e)(j) 987
3,700 6.25% due 5/15/2026 (g) 4,103
--------------------------------------------------------------------------------
2,525 New York City, New York, IDA, Civic Facility Revenue
Bonds (Ethical Culture Fieldston School Project),
Sub-Series B-1, 4.50% due 6/01/2035 (d) 2,529
--------------------------------------------------------------------------------
New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds (a):
1,250 DRIVERS, Series 1133Z, 7.004% due 10/15/2012 (l) 1,465
3,000 Series A, 5% due 10/15/2029 3,181
16,350 Series A, 5% due 10/15/2032 17,300
1,645 Series A, 4.50% due 10/15/2033 1,648
--------------------------------------------------------------------------------
3,950 New York City, New York, Trust for Cultural Resources,
Revenue Refunding Bonds (American Museum of Natural
History), Series A, 5% due 7/01/2036 (i) 4,165
--------------------------------------------------------------------------------
New York Convention Center Development Corporation,
New York, Revenue Bonds (a):
10,500 DRIVERS, VRDN, Series 1247Z, 6.504%
due 11/15/2013 (l) 11,673
12,230 (Hotel Unit Fee Secured), 5% due 11/15/2035 12,913
--------------------------------------------------------------------------------
New York State Dormitory Authority, Hospital Revenue
Refunding Bonds:
1,000 (New York Presbyterian Hospital), 5.50%
due 8/01/2011 (a)(f) 1,086
2,000 (North General Hospital), 5.75% due 2/15/2017 (d) 2,231
--------------------------------------------------------------------------------
New York State Dormitory Authority, Lease Revenue Bonds:
1,535 (Municipal Health Facilities Improvement Program),
Series 1, 5.50% due 1/15/2014 (g) 1,666
645 (Office Facilities Audit and Control), 5.50%
due 4/01/2023 (i) 688
--------------------------------------------------------------------------------
New York State Dormitory Authority Revenue Bonds:
1,340 (853 Schools Program), Issue 2, Series E, 5.75%
due 7/01/2019 (a) 1,445
1,200 (Cooper Union of Advance Science), 6.25%
due 7/01/2029 (i) 1,309
2,058 (Gustavus Adolphus Child & Family Services, Inc.),
Series B, 5.50% due 7/01/2018 (a) 2,201
6,750 (Interfaith Medical Center), Series D, 5.40%
due 2/15/2028 (i) 7,066
1,585 (Long Island University), Series B, 5.50%
due 9/01/2020 (k) 1,710
1,250 (Long Island University), Series B, 5.25%
due 9/01/2028 (k) 1,324
1,180 (New York State Rehabilitation Association),
Series A, 5.25% due 7/01/2019 (c) 1,278
1,000 (New York State Rehabilitation Association),
Series A, 5.125% due 7/01/2023 (c) 1,056
5,345 (Pace University), 6% due 7/01/2010 (j) 5,931
2,150 (Saint Barnabas Hospital), 5.45%
due 8/01/2035 (a)(f) 2,227
1,240 (School Districts Financing Program), Series D,
5% due 10/01/2030 (i) 1,293
6,900 (School Districts Financing Program), Series E,
5.75% due 10/01/2030 (i) 7,651
1,595 (Upstate Community Colleges), Series A, 6%
due 7/01/2010 (g)(j) 1,771
--------------------------------------------------------------------------------
New York State Dormitory Authority, Revenue
Refunding Bonds:
3,700 (Bronx-Lebanon Hospital Center), Series E,
5.20% due 2/15/2013 (i) 3,857
1,865 (City University System), Series 1, 5.25%
due 7/01/2014 (e) 1,957
3,400 (Saint Charles Hospital and Rehabilitation Center),
Series A, 5.625% due 7/01/2012 (i) 3,627
1,370 (School District Financing Program), Series I, 5.75%
due 10/01/2018 (i) 1,530
4,485 Series B, 5.50% due 8/15/2007 (i) 4,658
--------------------------------------------------------------------------------
8,300 New York State Dormitory Authority, State Personal
Income Tax Revenue Bonds (Education), Series F,
5% due 3/15/2035 8,732
--------------------------------------------------------------------------------
6,500 New York State Dormitory Authority, State University
Educational Facilities Revenue Refunding Bonds
(1989 Resources), 6% due 5/15/2012 (i) 7,164
--------------------------------------------------------------------------------
New York State Dormitory Authority, Supported Debt
Revenue Bonds, (Mental Health Facilities):
1,550 Series B, 5.25% due 2/15/2014 (j) 1,707
285 Series B, 5.25% due 2/15/2023 306
1,060 Series D, 5.875% due 8/15/2010 (g)(j) 1,164
--------------------------------------------------------------------------------
1,000 New York State Dormitory Authority, Supported Debt
Revenue Refunding Bonds (Department of Health),
Series A, 5% due 7/01/2025 (c) 1,056
--------------------------------------------------------------------------------
11,460 New York State Energy Research and Development
Authority, Gas Facilities Revenue Refunding Bonds
(Brooklyn Union Gas Company/Keyspan), AMT, Series A,
4.70% due 2/01/2024 (e) 11,586
--------------------------------------------------------------------------------
6,000 New York State Energy Research and Development
Authority, PCR, Refunding (Central Hudson Gas and
Electric), Series A, 5.45% due 8/01/2027 (a) 6,390
--------------------------------------------------------------------------------
6,000 New York State Environmental Facilities Corporation,
Water Facilities Revenue Bonds (Long Island Water Corp.
Project), AMT, Series A, 4.90% due 10/01/2034 (i) 6,096
--------------------------------------------------------------------------------
4,400 New York State Environmental Facilities Corporation,
Water Facilities Revenue Refunding Bonds (Spring Valley
Water Company), Series B, 6.15% due 8/01/2024 (a) 4,454
--------------------------------------------------------------------------------
750 New York State Housing Finance Agency, State Personal
Income Tax Revenue Bonds (Economic Development and
Housing), Series A, 5% due 9/15/2023 (i) 793
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 15
Schedule of Investments (continued)
MuniHoldings New York Insured Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
New York (continued)
--------------------------------------------------------------------------------
$ 200 New York State Local Government Assistance Corporation,
Revenue Refunding Bonds, Sub-Lien, VRDN, Series 4V,
3.19% due 4/01/2022 (g)(l) $ 200
--------------------------------------------------------------------------------
6,800 New York State Medical Care Facilities Finance Agency,
Revenue Bonds (Montefiore Medical Center), Series A,
5.75% due 2/15/2025 (a)(f) 6,881
--------------------------------------------------------------------------------
New York State Mortgage Agency, Homeowner
Mortgage Revenue Bonds, AMT:
2,805 Series 84, 5.90% due 4/01/2022 (i) 2,919
1,750 Series 130, 4.80% due 10/01/2037 1,756
--------------------------------------------------------------------------------
New York State Mortgage Agency, Homeowner
Mortgage Revenue Refunding Bonds:
2,140 AMT, Series 67, 5.70% due 10/01/2017 (i) 2,206
13,285 AMT, Series 67, 5.80% due 10/01/2028 (i) 13,639
870 Series 61, 5.80% due 10/01/2017 898
2,100 Series 83, 5.55% due 10/01/2027 (i) 2,168
--------------------------------------------------------------------------------
New York State Mortgage Agency Revenue Bonds, AMT,
Series 27:
3,500 5.80% due 10/01/2020 3,649
3,860 5.875% due 4/01/2030 (i) 3,988
--------------------------------------------------------------------------------
1,265 New York State Mortgage Agency, Revenue Refunding
Bonds, AMT, Series 82, 5.65% due 4/01/2030 (i) 1,276
--------------------------------------------------------------------------------
New York State Municipal Bond Bank Agency, Special
School Purpose Revenue Bonds, Series C:
2,000 5.25% due 6/01/2019 2,148
3,900 5.25% due 6/01/2020 4,209
--------------------------------------------------------------------------------
5,000 New York State Thruway Authority, General Revenue
Bonds, Series F, 5% due 1/01/2030 (a) 5,274
--------------------------------------------------------------------------------
New York State Thruway Authority, General Revenue
Refunding Bonds, Series G (g):
2,000 4.75% due 1/01/2029 2,059
9,250 4.75% due 1/01/2030 9,517
--------------------------------------------------------------------------------
8,000 New York State Thruway Authority, Highway and Bridge
Trust Fund Revenue Bonds, Series B-1, 5.75%
due 4/01/2010 (e)(j) 8,763
--------------------------------------------------------------------------------
3,045 New York State Thruway Authority, Second General
Highway and Bridge Trust Fund Revenue Bonds, Series A,
5.25% due 4/01/2013 (i)(j) 3,347
--------------------------------------------------------------------------------
1,000 New York State Thruway Authority, State Personal Income
Tax, Transportation Revenue Refunding Bonds, Series A,
5% due 3/15/2024 (g) 1,064
--------------------------------------------------------------------------------
3,000 New York State Urban Development Corporation,
Personal Income Tax Revenue Bonds, Series C-1,
5% due 3/15/2013 (i)(j) 3,250
--------------------------------------------------------------------------------
1,000 Niagara Falls, New York, City School District, COP,
Refunding (High School Facility), 5% due 6/15/2028 (g) 1,050
--------------------------------------------------------------------------------
1,700 Oneida County, New York, IDA, Civic Facilities Revenue
Bonds (Mohawk Valley), Series A, 5.20%
due 2/01/2013 (g) 1,779
--------------------------------------------------------------------------------
1,800 Oneida-Herkimer, New York, Solid Waste Management
Authority, Solid Waste Revenue Refunding Bonds,
5.50% due 4/01/2013 (g) 1,975
--------------------------------------------------------------------------------
2,500 Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, AMT, One Hundred Thirty-Seventh Series,
5.125% due 7/15/2030 (g) 2,634
--------------------------------------------------------------------------------
6,000 Port Authority of New York and New Jersey, Revenue
Refunding Bonds, DRIVERS, AMT, Series 177, 8.469%
due 10/15/2032 (i)(l) 6,565
--------------------------------------------------------------------------------
Port Authority of New York and New Jersey, Special
Obligation Revenue Bonds, AMT (i):
13,365 DRIVERS, Series 278, 7.968% due 12/01/2022 (l) 14,785
3,000 (JFK International Air Terminal LLC), Series 6,
6.25% due 12/01/2011 3,325
7,830 (JFK International Air Terminal LLC), Series 6,
6.25% due 12/01/2015 8,902
7,000 (JFK International Air Terminal LLC), Series 6,
5.90% due 12/01/2017 7,399
--------------------------------------------------------------------------------
2,340 Rome, New York, City School District, GO, 5.50%
due 6/15/2009 (g)(j) 2,510
--------------------------------------------------------------------------------
5,000 Schenectady, New York, IDA, Civic Facility Revenue
Bonds (Union College Project), Series A, 5.45%
due 12/01/2029 (a) 5,393
--------------------------------------------------------------------------------
3,000 Schenectady, New York, IDA, Civic Facility Revenue
Refunding Bonds (Union College Project), Series A,
5.625% due 7/01/2031 (a) 3,313
--------------------------------------------------------------------------------
4,355 Suffolk County, New York, IDA, IDR (Keyspan--Port
Jefferson), AMT, 5.25% due 6/01/2027 4,541
--------------------------------------------------------------------------------
Suffolk County, New York, IDA, Solid Waste Disposal
Facility, Revenue Refunding Bonds (Ogden Martin
System Huntington Project), AMT (a):
4,660 6% due 10/10/2010 5,097
5,000 6.15% due 10/01/2011 5,580
3,530 6.25% due 10/01/2012 4,007
--------------------------------------------------------------------------------
1,800 Suffolk County, New York, Public Improvement, GO,
Series B, 4.50% due 11/01/2024 (i) 1,828
--------------------------------------------------------------------------------
Tobacco Settlement Financing Corporation of New York
Revenue Bonds:
5,000 Series A-1, 5.25% due 6/01/2020 (a) 5,400
20,275 Series A-1, 5.25% due 6/01/2021 (a) 21,870
2,000 Series A-1, 5.25% due 6/01/2022 (a) 2,152
3,700 Series C-1, 5.50% due 6/01/2021 4,049
--------------------------------------------------------------------------------
500 Triborough Bridge and Tunnel Authority, New York,
General Purpose Revenue Refunding Bonds, VRDN,
Series C, 3.15% due 1/01/2032 (a)(m) 500
--------------------------------------------------------------------------------
Triborough Bridge and Tunnel Authority, New York,
Revenue Refunding Bonds (i):
12,000 5.25% due 11/15/2023 12,972
8,315 5% due 11/15/2032 8,666
2,095 Series A, 5% due 1/01/2012 (j) 2,253
1,500 Series B, 5% due 11/15/2032 1,563
--------------------------------------------------------------------------------
2,600 Triborough Bridge and Tunnel Authority, New York,
Special Obligation Revenue Refunding Bonds, VRDN,
Series D, 3.15% due 1/01/2031 (g)(m) 2,600
--------------------------------------------------------------------------------
Triborough Bridge and Tunnel Authority, New York,
Subordinate Revenue Bonds:
2,465 5% due 11/15/2028 (a) 2,589
6,000 Series A, 5.25% due 11/15/2030 (i) 6,448
--------------------------------------------------------------------------------
7,000 Westchester County, New York, IDA, Civic Facility
Revenue Bonds (Purchase College Foundation Housing
Project), Series A, 5.75% due 12/01/2031 (a) 7,832
--------------------------------------------------------------------------------
1,795 Yonkers, New York, GO, Series A, 5.75%
due 10/01/2010 (e)(j) 1,982
16 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
Schedule of Investments (concluded)
MuniHoldings New York Insured Fund, Inc. (in Thousands)
Face
Amount Municipal Bonds Value
===============================================================================
Guam--1.1%
-------------------------------------------------------------------------------
A.B. Won Guam International Airport Authority, General
Revenue Refunding Bonds, AMT, Series C (i):
$ 3,700 5.25% due 10/01/2021 $ 3,897
1,050 5.25% due 10/01/2022 1,106
===============================================================================
Puerto Rico--14.9%
-------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and Transportation
Authority, Transportation Revenue Bonds:
4,800 5.25% due 7/01/2017 (e) 5,232
1,250 Trust Receipts, Class R, Series B, 8.274%
due 7/01/2035 (i)(l) 1,508
-------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and Transportation
Authority, Transportation Revenue Refunding Bonds:
10,000 Series D, 5.75% due 7/01/2012 (j) 11,173
8,900 Series K, 5% due 7/01/2035 9,181
2,000 Series K, 5% due 7/01/2035 (b) 2,110
3,750 Series L, 5.25% due 7/01/2041 (c) 4,311
-------------------------------------------------------------------------------
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax and Capital Appreciation Revenue
Bonds, Series A:
10,280 4.62%* due 7/01/2031 (e) 3,252
5,500 4.66%* due 7/01/2033 (e) 1,576
9,300 4.66%* due 7/01/2034 (a) 2,542
2,700 4.67%* due 7/01/2037 (a) 639
-------------------------------------------------------------------------------
4,500 Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax Revenue Bonds, Series B, 5%
due 7/01/2041 (c) 4,718
-------------------------------------------------------------------------------
7,475 Puerto Rico Commonwealth, Public Improvement, GO,
Series A, 5.25% due 7/01/2020 7,971
-------------------------------------------------------------------------------
Puerto Rico Electric Power Authority, Power
Revenue Bonds:
4,750 Series NN, 5.125% due 7/01/2029 5,006
4,850 Series RR, 5% due 7/01/2029 (c) 5,143
4,950 Series RR, 5% due 7/01/2030 (d) 5,245
-------------------------------------------------------------------------------
Total Municipal Bonds
(Cost--$737,291)--164.9% 767,552
===============================================================================
Shares
Held Short-Term Securities
===============================================================================
747 CMA New York Municipal Money Fund, 2.59% (h)(n) 747
-------------------------------------------------------------------------------
Total Short-Term Securities
(Cost--$747)--0.2% 747
===============================================================================
Total Investments (Cost--$738,038**)--165.1% 768,299
Other Assets Less Liabilities--2.2% 10,387
Preferred Stock, at Redemption Value--(67.3%) (313,189)
---------
Net Assets Applicable to Common Stock--100.0% $ 465,497
=========
* Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
** The cost and unrealized appreciation (depreciation) of investments as of
February 28, 2006, as computed for federal income tax purposes, were as
follows:
Aggregate cost ............................................ $ 737,931
=========
Gross unrealized appreciation ............................. $ 30,575
Gross unrealized depreciation ............................. (207)
---------
Net unrealized appreciation ............................... $ 30,368
=========
(a) AMBAC Insured.
(b) AGC Insured.
(c) CIFG Insured.
(d) XL Capital Insured.
(e) FGIC Insured.
(f) FHA Insured.
(g) FSA Insured.
(h) 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 York Municipal Money Fund 704 $4
--------------------------------------------------------------------------
(i) MBIA Insured.
(j) Prerefunded.
(k) Radian Insured.
(l) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(m) 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.
(n) Variable rate security.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 17
Statements of Net Assets
MuniHoldings MuniHoldings
Florida New York
Insured Insured
As of February 28, 2006 Fund Fund, Inc.
=============================================================================================================================
Assets
-----------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value* ................. $ 908,189,595 $ 767,551,944
Investments in affiliated securities, at value** .................. 4,227,127 746,901
Cash .............................................................. 84,444 47,648
Interest receivable ............................................... 14,078,689 10,040,838
Receivable for securities sold .................................... 4,074,749 4,566,375
Prepaid expenses .................................................. 3,102 2,830
-------------------------------
Total assets ...................................................... 930,657,706 782,956,536
-------------------------------
=============================================================================================================================
Liabilities
-----------------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on forward interest rate swaps ............ 44,856 --
Payable for securities purchased .................................. 5,532,046 3,872,162
Payable to investment adviser ..................................... 296,138 246,966
Payable for other affiliates ...................................... 8,035 6,755
Dividends payable to Common Stock shareholders/Common Shareholders 99,000 189,339
Accrued expenses and other liabilities ............................ 106,329 94,567
-------------------------------
Total liabilities ................................................. 6,086,404 4,409,789
-------------------------------
=============================================================================================================================
Preferred Stock/Shares
-----------------------------------------------------------------------------------------------------------------------------
Preferred Stock/Shares, at redemption value, par value $.10 per
share of AMPS@ at $25,000 per share liquidation preference*** .... 363,359,664 313,049,478
-------------------------------
=============================================================================================================================
Net Assets Applicable to Common Stock/Shares
-----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock/Shares ...................... $ 561,211,638 $ 465,497,269
===============================
=============================================================================================================================
Analysis of Net Assets Applicable to Common Stock/Shares
-----------------------------------------------------------------------------------------------------------------------------
Undistributed investment income--net .............................. $ 4,462,198 $ 3,214,414
Accumulated realized capital losses--net .......................... (66,227,453) (45,958,998)
Unrealized appreciation--net ...................................... 48,143,428 30,261,276
-------------------------------
Total accumulated losses--net ..................................... (13,621,827) (12,483,308)
-------------------------------
Common Stock/Shares, par value $.10 per share+ .................... 3,766,766 3,078,462
Paid-in capital in excess of par .................................. 571,066,699 474,902,115
-------------------------------
Net Assets ........................................................ $ 561,211,638 $ 465,497,269
===============================
18 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
Statements of Net Assets (concluded)
MuniHoldings MuniHoldings
Florida New York
Insured Insured
As of February 28, 2006 Fund Fund, Inc.
=============================================================================================================================
Net Assets Value
-----------------------------------------------------------------------------------------------------------------------------
Net assets value per share of Common Stock/Shares ................. $ 14.90 $ 15.12
===============================
Market price ...................................................... $ 14.85 $ 15.02
===============================
* Identified cost for unaffiliated securities .................. $ 860,001,311 $ 737,290,668
===============================
** Identified cost for affiliated securities .................... $ 4,227,127 $ 746,901
===============================
*** Preferred Stock/Shares authorized, issued and outstanding:
Series A Stock/Shares ..................................... 2,095 1,900
===============================
Series B Stock/Shares ..................................... 3,495 1,900
===============================
Series C Stock/Shares ..................................... 3,440 3,040
===============================
Series D Stock/Shares ..................................... 2,160 3,680
===============================
Series E Stock/Shares ..................................... 3,340 2,000
===============================
+ Common Stock/Shares issued and outstanding ................... 37,667,658 30,784,615
===============================
@ Auction Market Preferred Stock/Shares.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 19
Statements of Operations
MuniHoldings MuniHoldings
Florida New York
Insured Insured
For the Six Months Ended February 28, 2006 Fund Fund, Inc.
=============================================================================================================================
Investment Income
-----------------------------------------------------------------------------------------------------------------------------
Interest and amortization of premium and discount earned .......... $ 22,667,263 $ 18,566,277
Dividends from affiliates ......................................... 80,266 3,665
-------------------------------
Total income ...................................................... 22,747,529 18,569,942
-------------------------------
=============================================================================================================================
Expenses
-----------------------------------------------------------------------------------------------------------------------------
Investment advisory fees .......................................... 2,522,426 2,118,824
Commission fees ................................................... 456,434 396,592
Accounting services ............................................... 131,824 119,300
Transfer agent fees ............................................... 47,769 45,061
Professional fees ................................................. 28,894 27,312
Custodian fees .................................................... 22,612 19,867
Printing and shareholder reports .................................. 21,620 18,744
Directors'/Trustees' fees and expenses ............................ 15,772 16,247
Pricing fees ...................................................... 14,002 13,845
Listing fees ...................................................... 13,225 10,910
Other ............................................................. 29,393 28,300
-------------------------------
Total expenses before waiver and reimbursement .................... 3,303,971 2,815,002
Waiver and reimbursement of expenses .............................. (174,938) (173,109)
-------------------------------
Total expenses after waiver and reimbursement ..................... 3,129,033 2,641,893
-------------------------------
Investment income--net ............................................ 19,618,496 15,928,049
=============================================================================================================================
Realized & Unrealized Gain (Loss)--Net
-----------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on:
Investments--net ............................................... (613,749) (128,160)
Futures contracts and/or forward interest rate swaps--net ...... (395,952) 44,967
-------------------------------
Total realized loss--net .......................................... (1,009,701) (83,193)
-------------------------------
Change in unrealized appreciation/depreciation on:
Investments--net ............................................... (13,601,036) (11,055,627)
Futures contracts and/or forward interest rate swaps--net ...... 916,559 296,267
-------------------------------
Total change in unrealized appreciation/depreciation--net ......... (12,684,477) (10,759,360)
-------------------------------
Total realized and unrealized loss--net ........................... (13,694,178) (10,842,553)
-------------------------------
=============================================================================================================================
Dividends to Preferred Stock Shareholders/Preferred Shareholders
-----------------------------------------------------------------------------------------------------------------------------
Investment income--net ............................................ (4,986,564) (4,025,479)
-------------------------------
Net Increase in Net Assets Resulting from Operations .............. $ 937,754 $ 1,060,017
===============================
See Notes to Financial Statements.
20 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
Statements of Changes in Net Assets MuniHoldings Florida Insured Fund
For the Six For the
Months Ended Year Ended
February 28, August 31,
Increase (Decrease) in Net Assets: 2006 2005
=============================================================================================================================
Operations
-----------------------------------------------------------------------------------------------------------------------------
Investment income--net ............................................ $ 19,618,496 $ 41,066,003
Realized loss--net ................................................ (1,009,701) (1,924,948)
Change in unrealized appreciation/depreciation--net ............... (12,684,477) 3,311,646
Dividends to Preferred Shareholders ............................... (4,986,564) (6,626,611)
-------------------------------
Net increase in net assets resulting from operations .............. 937,754 35,826,090
-------------------------------
=============================================================================================================================
Dividends to Common Shareholders
-----------------------------------------------------------------------------------------------------------------------------
Investment income--net ............................................ (16,723,446) (37,933,871)
-------------------------------
Net decrease in net assets resulting from dividends to Common
Shareholders ..................................................... (16,723,446) (37,933,871)
-------------------------------
=============================================================================================================================
Capital Share Transactions
-----------------------------------------------------------------------------------------------------------------------------
Value of shares issued to Common Shareholders in reinvestment of
dividends ........................................................ 66,617 529,463
-------------------------------
=============================================================================================================================
Net Assets Applicable to Common Shares
-----------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets applicable to Common Shares .......... (15,719,075) (1,578,318)
Beginning of period ............................................... 576,930,713 578,509,031
-------------------------------
End of period* .................................................... $ 561,211,638 $ 576,930,713
===============================
* Undistributed investment income--net ......................... $ 4,462,198 $ 6,553,712
===============================
See Notes to Financial Statements.
MuniHoldings New York Insured Fund, Inc.
For the Six For the
Months Ended Year Ended
February 28, August 31,
Increase (Decrease) in Net Assets: 2006 2005
=============================================================================================================================
Operations
-----------------------------------------------------------------------------------------------------------------------------
Investment income--net ............................................ $ 15,928,049 $ 31,975,240
Realized loss--net ................................................ (83,193) (2,377,019)
Change in unrealized appreciation/depreciation--net ............... (10,759,360) 8,840,346
Dividends to Preferred Stock shareholders ......................... (4,025,479) (5,197,939)
-------------------------------
Net increase in net assets resulting from operations .............. 1,060,017 33,240,628
-------------------------------
=============================================================================================================================
Dividends to Common Stock Shareholders
-----------------------------------------------------------------------------------------------------------------------------
Investment income--net ............................................ (13,976,215) (29,183,815)
-------------------------------
Net decrease in net assets resulting from dividends to Common Stock
shareholders ..................................................... (13,976,215) (29,183,815)
-------------------------------
=============================================================================================================================
Net Assets Applicable to Common Stock
-----------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets applicable to Common Stock (12,916,198) 4,056,813
Beginning of period ............................................... 478,413,467 474,356,654
-------------------------------
End of period* .................................................... $ 465,497,269 $ 478,413,467
===============================
* Undistributed investment income--net ......................... $ 3,214,414 $ 5,288,059
===============================
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 21
Financial Highlights MuniHoldings Florida Insured Fund
For the Six For the Year Ended
Months Ended August 31,
The following per share data and ratios have been derived February 28, -----------------------------------------------
from information provided in the financial statements. 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ..................... $ 15.32 $ 15.37 $ 15.04 $ 15.41 $ 15.29
------------------------------------------------------------
Investment income--net ................................... .52+ 1.09+ 1.11+ 1.15+ 1.14
Realized and unrealized gain (loss)--net ................. (.37) .05 .31 (.46) .06
Less dividends and distributions to Preferred
Shareholders:
Investment income--net ................................ (.13) (.18) (.09) (.10) (.13)
Realized gain--net .................................... -- -- -- -- --++
------------------------------------------------------------
Total from investment operations ......................... .02 .96 1.33 .59 1.07
------------------------------------------------------------
Less dividends and distributions to Common Shareholders:
Investment income--net ................................ (.44) (1.01) (1.00) (.96) (.95)
Realized gain--net .................................... -- -- -- -- --++
------------------------------------------------------------
Total dividends and distributions to Common Shareholders . (.44) (1.01) (1.00) (.96) (.95)
------------------------------------------------------------
Net asset value, end of period ........................... $ 14.90 $ 15.32 $ 15.37 $ 15.04 $ 15.41
============================================================
Market price per share, end of period .................... $ 14.85 $ 15.75 $ 14.84 $ 14.08 $ 14.66
============================================================
==================================================================================================================================
Total Investment Return**
----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ....................... .24%@ 6.49% 9.43% 4.17% 7.75%
============================================================
Based on market price per share .......................... (2.83%)@ 13.39% 12.86% 2.51% 11.63%
============================================================
==================================================================================================================================
Ratios Based on Average Net Assets of Common Shares
----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver and reimbursement and
excluding reorganization expenses*** .................... 1.12%* 1.11% 1.10% 1.10% 1.13%
============================================================
Total expenses, excluding reorganization expenses*** ..... 1.19%* 1.16% 1.17% 1.17% 1.20%
============================================================
Total expenses*** ........................................ 1.19%* 1.16% 1.17% 1.17% 1.21%
============================================================
Total investment income--net*** .......................... 7.04%* 7.11% 7.23% 7.40% 7.71%
============================================================
Amount of dividends to Preferred Shareholders ............ 1.79%* 1.15% .60% .65% .96%
============================================================
Investment income--net, to Common Shareholders ........... 5.25%* 5.96% 6.63% 6.75% 6.75%
============================================================
==================================================================================================================================
Ratios Based on Average Net Assets of Preferred Shares
----------------------------------------------------------------------------------------------------------------------------------
Dividends to Preferred Shareholders ...................... 2.77%* 1.82% .95% 1.06% 1.49%
============================================================
22 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
Financial Highlights (concluded) MuniHoldings Florida Insured Fund
For the Six For the Year Ended
Months Ended August 31,
The following per share data and ratios have been derived February 28, -----------------------------------------------
from information provided in the financial statements. 2006 2005 2004 2003 2002
==================================================================================================================================
Supplemental Data
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Shares, end of period
(in thousands) .......................................... $561,212 $576,931 $578,509 $565,993 $580,003
============================================================
Preferred Shares outstanding, end of period (in thousands) $363,250 $363,250 $363,250 $363,250 $363,250
============================================================
Portfolio turnover ....................................... 23.36% 26.50% 21.20% 27.40% 13.89%
============================================================
==================================================================================================================================
Leverage
----------------------------------------------------------------------------------------------------------------------------------
Asset coverage per $1,000 ................................ $ 2,545 $ 2,588 $ 2,593 $ 2,558 $ 2,597
============================================================
==================================================================================================================================
Dividends Per Share on Preferred Shares Outstanding
----------------------------------------------------------------------------------------------------------------------------------
Series A--Investment income--net ......................... $ 335 $ 441 $ 233 $ 252 $ 362
============================================================
Series B--Investment income--net ......................... $ 349 $ 451 $ 237 $ 267 $ 375
============================================================
Series C--Investment income--net ......................... $ 354 $ 461 $ 237 $ 252 $ 369
============================================================
Series D--Investment income--net ......................... $ 336 $ 462 $ 243 $ 273 $ 368
============================================================
Series E--Investment income--net ......................... $ 336 $ 463 $ 241 $ 276 $ 381
============================================================
* Annualized.
** Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
different returns. Total investment returns exclude the effects of sales
charges.
*** Do not reflect the effect of dividends to Preferred Shareholders.
+ Based on average shares outstanding.
++ Amount is less than $(.01) per share.
@ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 23
Financial Highlights MuniHoldings New York Insured Fund, Inc.
For the Six For the Year Ended
Months Ended August 31,
The following per share data and ratios have been derived February 28, -----------------------------------------------
from information provided in the financial statements. 2006 2005 2004 2003 2002
==================================================================================================================================
Per Share Operating Performance
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ..................... $ 15.54 $ 15.41 $ 15.19 $ 15.66 $ 15.78
------------------------------------------------------------
Investment income--net* .................................. .52 1.04 1.05 1.09 1.07
Realized and unrealized gain (loss)--net ................. (.36) .21 .18 (.58) (.19)
Less dividends to Preferred Stock shareholders from
investment income--net .................................. (.13) (.17) (.08) (.08) (.12)
------------------------------------------------------------
Total from investment operations ......................... .03 1.08 1.15 .43 .76
------------------------------------------------------------
Less dividends to Common Stock shareholders from
investment income--net .................................. (.45) (.95) (.93) (.90) (.88)
------------------------------------------------------------
Net asset value, end of period ........................... $ 15.12 $ 15.54 $ 15.41 $ 15.19 $ 15.66
============================================================
Market price per share, end of period .................... $ 15.02 $ 15.28 $ 14.10 $ 13.79 $ 14.37
============================================================
==================================================================================================================================
Total Investment Return**
----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ....................... .32%@ 7.63% 8.36% 3.32% 5.68%
============================================================
Based on market price per share .......................... 1.35%@ 15.66% 9.21% 2.22% 6.49%
============================================================
==================================================================================================================================
Ratios Based on Average Net Assets of Common Stock
----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver and reimbursement excluding
reorganization expenses*** .............................. 1.15%+ 1.14% 1.14% 1.13% 1.16%
============================================================
Total expenses, excluding reorganization expenses*** ..... 1.22%+ 1.21% 1.21% 1.20% 1.23%
============================================================
Total expenses*** ........................................ 1.22%+ 1.21% 1.21% 1.20% 1.26%
============================================================
Total investment income--net*** .......................... 6.92%+ 6.71% 6.80% 6.96% 7.01%
============================================================
Amount of dividends to Preferred Stock shareholders ...... 1.75%+ 1.09% .55% .68% .98%
============================================================
Investment income--net, to Common Stock shareholders ..... 5.17%+ 5.62% 6.25% 6.28% 6.03%
==================================================================================================================================
Ratios Based on Average Net Assets of Preferred Stock
----------------------------------------------------------------------------------------------------------------------------------
Dividends to Preferred Stock shareholders ................ 2.59%+ 1.66% .83% 1.05% 1.47%
============================================================
24 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
Financial Highlights (concluded) MuniHoldings New York Insured Fund, Inc.
For the Six For the Year Ended
Months Ended August 31,
The following per share data and ratios have been derived February 28, -----------------------------------------------
from information provided in the financial statements. 2006 2005 2004 2003 2002
==================================================================================================================================
Supplemental Data
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock, end of period
(in thousands) .......................................... $465,497 $478,413 $474,357 $467,512 $482,184
============================================================
Preferred Stock outstanding, end of period (in thousands) $313,000 $313,000 $313,000 $313,000 $313,000
============================================================
Portfolio turnover ....................................... 24.99% 35.63% 32.04% 59.02% 86.39%
============================================================
==================================================================================================================================
Leverage
----------------------------------------------------------------------------------------------------------------------------------
Asset coverage per $1,000 ................................ $ 2,487 $ 2,528 $ 2,516 $ 2,494 $ 2,541
============================================================
==================================================================================================================================
Dividends Per Share on Preferred Stock Outstanding
----------------------------------------------------------------------------------------------------------------------------------
Series A--Investment income--net ......................... $ 316 $ 409 $ 197 $ 247 $ 347
============================================================
Series B--Investment income--net ......................... $ 309 $ 385 $ 182 $ 236 $ 348
============================================================
Series C--Investment income--net ......................... $ 325 $ 432 $ 201 $ 258 $ 377
============================================================
Series D--Investment income--net ......................... $ 338 $ 434 $ 238 $ 287 $ 391
============================================================
Series E--Investment income--net ......................... $ 304 $ 389 $ 198 $ 256 $ 347
============================================================
* 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.
+ Annualized.
@ Aggregate total investment return.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 25
Notes to Financial Statements
1. Significant Accounting Policies:
MuniHoldings Florida Insured Fund and MuniHoldings New York Insured Fund, Inc.
(the "Funds" or individually as the "Fund") are registered under the Investment
Company Act of 1940, as amended, as non-diversified, closed-end management
investment companies. The Funds' financial statements are prepared in conformity
with U.S. generally accepted accounting principles, which may require the use of
management accruals and estimates. Actual results may differ from these
estimates. These unaudited financial statements reflect all adjustments, which
are, in the opinion of management, necessary to present a fair statement of the
results for the interim period. All such adjustments are of a normal, recurring
nature. The Funds determine and make available for publication the net asset
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 symbols MFL and
MHN, respectively. The following is a summary of significant accounting policies
followed by the Funds.
(a) Valuation of investments -- Municipal bonds are traded primarily in the
over-the-counter ("OTC") markets and are valued at the last available bid price
in the OTC market or on the basis of values as obtained by a pricing service.
Pricing services use valuation matrixes that incorporate both dealer-supplied
valuations and valuation models. The procedures of the pricing service and its
valuations are reviewed by the officers of the Funds under the general direction
of the Board of Directors/Trustees. Such valuations and procedures are reviewed
periodically by the Board of Directors/Trustees of the Funds. Financial futures
contracts and options thereon, which are traded on exchanges, are valued at
their closing prices as of the close of such exchanges. Options written or
purchased are valued at the last sale price in the case of exchange-traded
options. In the case of options traded in the OTC market, valuation is the last
asked price (options written) or the last bid price (options purchased). Swap
agreements are valued based upon quoted fair valuations received daily by the
Funds from a pricing service. Short-term investments with a remaining maturity
of 60 days or less are valued at amortized cost which approximates market value,
under which method the investment is valued at cost and any premium or discount
is amortized on a straight line basis to maturity. Investments in open-end
investment companies are valued at their net asset value each business day.
Securities and other assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or under the
direction of the Board of Directors/Trustees of the Funds.
(b) Derivative financial instruments -- Each Fund may engage in various
portfolio investment strategies both to increase the return of the Fund and to
hedge, or protect, its exposure to interest rate movements and movements in the
securities markets. Losses may arise due to changes in the value of the contract
or if the counterparty does not perform under the contract.
o Financial futures contracts -- Each Fund may purchase or sell financial
futures contracts and options on such futures contracts. Futures contracts
are contracts for delayed delivery of securities at a specific future date
and at a specific price or yield. Upon entering into a contract, the Fund
deposits and maintains as collateral such initial margin as required by
the exchange on which the transaction is effected. Pursuant to the
contract, the Fund agrees to receive from or pay to the broker an amount
of cash equal to the daily fluctuation in value of the contract. Such
receipts or payments are known as variation margin and are recorded by the
Funds as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value
of the contract at the time it was opened and the value at the time it was
closed.
o Options -- Each Fund may write covered call options and purchase 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.
o 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,
26 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
Notes to Financial Statements (continued)
the Fund records a realized gain or loss in an amount equal to the value
of the agreement.
(c) Income taxes -- It is each Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.
(d) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Interest income is recognized on the accrual basis. The Funds amortize all
premiums and discounts on debt securities.
(e) Dividends and distributions -- Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
2. Investment Advisory Agreement and Transactions with Affiliates:
Each Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect, wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML
& Co."), which is the limited partner.
FAM is responsible for the management of each Fund's portfolio and provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, each Fund pays a monthly fee
at an annual rate of .55% of the Fund's average weekly net assets, including
proceeds from the issuance of Preferred Stock/Shares. The Investment Adviser has
agreed to reimburse its management fee by the amount of management fees each
Fund pays to FAM indirectly through its investments described below:
--------------------------------------------------------------------------------
Investment Reimbursement
--------------------------------------------------------------------------------
MuniHoldings Florida CMA Florida Municipal
Insured Fund Money Fund/Merrill Lynch $8,972
Institutional Tax-Exempt
Fund
--------------------------------------------------------------------------------
MuniHoldings New York CMA New York Municipal
Insured Fund, Inc. Money Fund $ 667
--------------------------------------------------------------------------------
In addition, the Investment Adviser has agreed to reimburse its management fee
on the proceeds of Preferred Stock/Shares that exceeds 35% of each Fund's total
net assets. For the six months ended February 28, 2006, FAM earned and waived
the following:
--------------------------------------------------------------------------------
Fees Earned Waived
--------------------------------------------------------------------------------
MuniHoldings Florida
Insured Fund ........................... $2,522,426 $ 165,966
MuniHoldings New York
Insured Fund, Inc. ..................... $2,118,824 $ 172,442
--------------------------------------------------------------------------------
For the six months ended February 28, 2006, the Funds reimbursed FAM for certain
accounting services. The reimbursements were as follows:
--------------------------------------------------------------------------------
Reimbursement
--------------------------------------------------------------------------------
MuniHoldings Florida Insured Fund ............................ $10,054
MuniHoldings New York Insured Fund, Inc. ..................... $ 8,534
--------------------------------------------------------------------------------
Certain officers and/or directors/trustees of the Funds are officers and/or
directors of FAM, PSI, and/or ML & Co.
In February 2006, ML & Co. and BlackRock, Inc. entered into an agreement to
merge ML & Co.'s investment management business, including FAM, with the
investment management business of BlackRock, Inc. The transaction is expected to
close in the third quarter of 2006.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended February 28, 2006 were as follows:
--------------------------------------------------------------------------------
MuniHoldings MuniHoldings
Florida Insured New York Insured
Fund Fund, Inc.
--------------------------------------------------------------------------------
Total Purchases .................. $212,827,855 $190,719,206
Total Sales ...................... $216,683,991 $208,331,533
--------------------------------------------------------------------------------
4. Share/Stock Transactions:
MuniHoldings Florida Insured Fund is authorized to issue an unlimited number of
shares of beneficial interest, including Preferred Shares, par value $.10 per
share, all of which were initially classified as Common Shares. The Board of
Trustees is authorized, however, to reclassify any unissued shares of beneficial
interest without the approval of holders of Common Shares.
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 27
Notes to Financial Statements (concluded)
MuniHoldings New York Insured Fund, Inc. is authorized to issue 200,000,000
shares of stock, including Preferred Stock, par value $.10 per share, all of
which were initially classified as Common Stock. The Board of Directors is
authorized, however, to reclassify any unissued shares of stock without approval
of holders of Common Stock.
Common Shares/Stock
MuniHoldings Florida Insured Fund
Shares issued and outstanding during the six months ended February 28, 2006 and
for the year ended August 31, 2005 increased by 4,505 and 34,561, respectively,
as a result of dividend reinvestments.
MuniHoldings New York Insured Fund, Inc.
Shares issued and outstanding during the six months ended February 28, 2006 and
the year ended August 31, 2005 remained constant.
Preferred Shares/Stock
Auction Market Preferred Shares/Stock are redeemable shares of Preferred
Shares/Stock of the Funds, with a liquidation preference of $25,000 per share
plus accrued and unpaid dividends that entitle their holders to receive cash
dividends at an annual rate that may vary for the successive dividend periods.
The yields in effect at February 28, 2006 were as follows:
--------------------------------------------------------------------------------
MuniHoldings MuniHoldings
Florida Insured New York Insured
Fund Fund, Inc.
--------------------------------------------------------------------------------
Series A ............................. 2.70% 2.80%
Series B ............................. 3.08% 2.55%
Series C ............................. 3.15% 2.80%
Series D ............................. 3.00% 2.80%
Series E ............................. 2.95% 2.50%
--------------------------------------------------------------------------------
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 six months ended February 28, 2006, Merrill Lynch, Pierce,
Fenner & Smith Incorporated, an affiliate of FAM, earned commissions as follows:
--------------------------------------------------------------------------------
Commissions
--------------------------------------------------------------------------------
MuniHoldings Florida Insured Fund ........................... $228,320
MuniHoldings New York Insured Fund, Inc. .................... $140,593
--------------------------------------------------------------------------------
5. Capital Loss Carryforward:
MuniHoldings Florida Insured Fund
On August 31, 2005, the Fund had a net capital loss carryforward of $61,566,460,
of which $25,345,146 expires in 2007, $9,834,324 expires in 2008, $16,563,861
expires in 2009, $1,836,991 expires in 2012 and $7,986,138 expires in 2013. This
amount will be available to offset like amounts of any future taxable gains.
MuniHoldings New York Insured Fund, Inc.
On August 31, 2005, the Fund had a net capital loss carryforward of $36,185,739,
of which $566,530 expires in 2007, $3,509,287 expires in 2008, $17,055,889
expires in 2009 and $15,054,033 expires in 2013. This amount will be available
to offset like amounts of any future taxable gains.
6. Subsequent Event:
MuniHoldings Florida Insured Fund
The Fund paid a tax-exempt income dividend to holders of Common Shares in the
amount of $.068000 per share on March 30, 2006 to shareholders of record on
March 14, 2006.
MuniHoldings New York Insured Fund, Inc.
The Fund paid a tax-exempt income dividend to holders of Common Stock in the
amount of $.069000 per share on March 30, 2006 to shareholders of record on
March 14, 2006.
28 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
Disclosure of Investment Advisory Agreement
Activities of and Composition of the Board of Directors
All but one member of each Fund's Board of Directors is an independent director
whose only affiliation with Fund Asset Management, L.P. (the "Investment
Adviser") or other Merrill Lynch affiliates is as a director of each Fund and as
a trustee or director of certain other funds advised by the Investment Adviser
or its affiliates. The Chairman of the Boards is also an independent director.
New director nominees are chosen as nominees by a Nominating Committee comprised
of independent directors. All independent directors also are members of each
Board's Audit Committee and the independent directors meet in executive session
at each in-person Board meeting. The Board and the Audit Committee meet in
person for at least two days each quarter and conduct other in-person and
telephone meetings throughout the year, some of which are formal board meetings,
and some of which are informational meetings. The independent counsel to the
independent directors attends all in-person Board and Audit Committee meetings
and other meetings at the independent directors' request.
Investment Advisory Agreements -- Matters Considered by the Board
Every year, each Board considers approval of each Fund's investment advisory
agreement (the "Investment Advisory Agreement"). Each Board assesses the nature,
scope and quality of the services provided to each Fund by the personnel of the
Investment Adviser and its affiliates, including administrative services,
shareholder services, oversight of fund accounting, marketing services and
assistance in meeting legal and regulatory requirements. Each Board also
receives and assesses information regarding the services provided to the Fund by
certain unaffiliated service providers.
At various times throughout the year, each Board also considers a range of
information in connection with its oversight of the services provided by the
Investment Adviser and its affiliates. Among the matters considered are: (a)
fees (in addition to management fees) paid to the Investment Adviser and its
affiliates by each Fund; (b) Fund operating expenses paid to third parties; (c)
the resources devoted to and compliance reports relating to each Fund's
investment objective, policies and restrictions, and its compliance with its
Code of Ethics and the Investment Adviser's compliance policies and procedures;
and (d) the nature, cost and character of non-investment management services
provided by the Investment Adviser and its affiliates.
Each Board believes that the Investment Adviser is one of the most experienced
global asset management firms and considers the overall services provided by the
Investment Adviser to be of high quality. Each Board also believes that the
Investment Adviser is financially sound and well managed and notes that the
Investment Adviser is affiliated with one of America's largest financial firms.
Each Board works closely with the Investment Adviser in overseeing the
Investment Adviser's efforts to achieve good performance. As part of this
effort, each Board discusses portfolio manager effectiveness and, when
performance is not satisfactory, discusses with the Investment Adviser taking
steps such as changing investment personnel.
Annual Consideration of Approvals by the Board of Directors
In the period prior to the Board meeting to consider renewal of the Investment
Advisory Agreement, each Board requests and receives materials specifically
relating to the Fund's Investment Advisory Agreement. These materials are
prepared separately for each Fund, and include (a) information compiled by
Lipper Inc. ("Lipper") on the fees and expenses, investment performance and
leverage of the Fund as compared to a comparable group of funds as classified by
Lipper; (b) information comparing the Fund's market price with its net asset
value per share; (c) a discussion by the Fund's portfolio management team of
investment strategies used by the Fund during its most recent fiscal year; (d)
information on the profitability to the Investment Adviser and its affiliates of
the Investment Advisory Agreement and other relationships with the Fund; (e)
information provided by the Investment Adviser concerning investment advisory
fees charged to other clients such as other closed-end insured leveraged funds
for Florida and New York; and (f) services related to the valuation and pricing
of Fund portfolio holdings, the Fund's portfolio turnover statistics, and direct
and indirect benefits to the Investment Adviser and its affiliates from their
relationship with the Fund. The Board did not identify any particular
information as controlling, and each member of the Board may have attributed
different weights to the various items considered.
Certain Specific Renewal Data
In connection with the most recent renewal of each Fund's Investment Advisory
Agreement in February, 2006, the independent directors' and Board's review
included the following:
Investment Adviser's Services and Fund Performance -- Each Board reviewed the
nature, extent and quality of services provided by the Investment Adviser,
including the investment advisory services and the resulting performance
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 29
Disclosure of Investment Advisory Agreement (concluded)
of each Fund. The Boards focused primarily on the Investment Adviser's
investment advisory services and each Fund's investment performance, having
concluded that the other services provided to each Fund by the Investment
Adviser were satisfactory. Each Board compared Fund performance -- both
including and excluding the effects of each Fund's fees and expenses -- to the
performance of a comparable group of funds. While each Board reviews performance
data quarterly, consistent with the Investment Adviser's investment goals, each
Board attaches primary importance to performance over relatively long periods of
time, typically three to five years.
Relative to closed-end leveraged Florida municipal debt funds deemed comparable
by the Investment Adviser, the Board noted that for the period ended November
30, 2005, MuniHoldings Florida Insured Fund's performance for the one-year
period ranked sixth of seven funds, and for the three-year period ranked fifth
of seven funds. For the five-year period, the Fund ranked first in a group of
four funds. The Board also reviewed the Fund's performance based on annualized
yields and noted that the Fund ranked first of seven funds for the past three
years ended November 30, 2005, and first of four funds for the prior two years.
The Board reviewed the Fund's investment objectives and strategies. The Board
discussed with senior management of the Investment Adviser responsible for
investment operations and the senior management of the Investment Adviser's
municipal investing group the strategies being used to achieve the stated
objectives. Among other things, the Board considered the size, education and
experience of the Investment Adviser's investment staff, its use of technology,
and the Investment Adviser's approach to training and retaining portfolio
managers and other research, advisory and management personnel. The Board also
reviewed the Investment Adviser's compensation policies and practices with
respect to the Fund's portfolio manager. The Board also considered the
experience of the Fund's portfolio manager and noted that Mr. Sneeden has over
10 years of experience investing in municipal securities. The Board concluded
that the Fund's performance supported the continuation of the Investment
Advisory Agreement.
Relative to closed-end leveraged New York insured municipal debt funds, deemed
comparable by the Investment Adviser, the Board noted that MuniHoldings New York
Insured Fund's performance for the one- and three-year periods ranked in the
fifth quintile, and in the fourth quintile for the five-year period. The Board
also noted the Fund's performance based on annualized yields and noted that the
Fund ranked in the first or second quintile for the four years ended November
30, 2005. The Board reviewed the Fund's investment objectives and strategies.
The Board discussed with senior management of the Investment Adviser responsible
for investment operations and the senior management of the Investment Adviser's
municipal investing group the strategies being used to achieve the stated
objectives. Among other things, the Board considered the size, education and
experience of the Investment Adviser's investment staff, its use of technology,
and the Investment Adviser's approach to training and retaining portfolio
managers and other research, advisory and management personnel. The Board also
reviewed the Investment Adviser's compensation policies and practices with
respect to the Funds' portfolio manager. The Board also considered the
experience of the Funds' portfolio manager and noted that Mr. Browse has over
five years of experience investing in municipal securities. The Board concluded
that the Fund's performance supported the continuation of the Investment
Advisory Agreement.
Management Fees and Other Expenses -- Each Board reviews the Fund's contractual
management fee rate and actual management fee rate as a percentage of total
assets at common asset levels -- the actual rate includes advisory and
administrative service fees and the effects of any fee waivers -- compared to
the other funds considered comparable by Lipper. It also compares the Fund's
total expenses to those of other, comparable funds of the Investment Adviser.
The Board noted that investment advisory fees charged to each of the Funds was
slightly more than the fees charged to other retail closed-end Florida and New
York insured funds of the Investment Adviser. With respect to MuniHoldings
Florida Insured Fund, the Board noted that that the contractual management fee
rate and total expense ratio were equal to the median fees charged by comparable
funds, as determined by Lipper, while the actual management fees were higher
than the median fees. With respect to MuniHoldings New York Insured Fund, Inc.,
the Board noted that the contractual management fee rate was equal to the median
fees charged by comparable funds, as determined by Lipper, while the actual
management fee rate and actual total expense ratio were higher than the median
fees charged by such comparable funds. Each Board concluded that the Fund's
management fee and fee rate and overall expense ratio (taking into account the
fee waiver agreement applicable to each fund) are reasonable compared to those
of other comparable funds.
Profitability -- Each Board considered the cost of the services provided to the
Fund by the Investment Adviser, and the Investment Adviser's and its affiliates'
profits relating to the
30 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
management of the Fund and the MLIM/FAM-advised funds. As part of its analysis,
each Board reviewed the Investment Adviser's methodology in allocating its costs
to the management of the Fund and concluded that there was a reasonable basis
for the allocation. The Boards also considered federal court decisions
discussing an investment adviser's profitability and profitability levels
considered to be reasonable in those decisions. Each Board concluded that the
Investment Adviser's profits are acceptable in relation to the nature and
quality of services provided and given the level of fees and expenses overall.
Economies of Scale -- Each Board considered the extent to which economies of
scale might be realized as the assets of a Fund increase and whether there
should be changes in the management fee rate or structure in order to enable the
Fund to participate in these economies of scale. Each Board considered economies
of scale to the extent applicable to each Fund's closed-end structure and
determined that each Fund appropriately benefits from any economies of scale and
no changes were currently necessary.
Conclusion
After the independent directors deliberated in executive session, each entire
Board, including all of the independent directors, approved the renewal of the
existing Investment Advisory Agreement, concluding that the advisory fee, taking
into account the fee waiver, was reasonable in relation to the services provided
and that a contract renewal was in the best interests of the shareholders.
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 31
Proxy Results MuniHoldings Florida Insured Fund
During the six-month period ended February 28, 2006, MuniHoldings Florida
Insured Fund Common Shareholders voted on the following proposal. The proposal
was approved at a shareholders' meeting on January 26, 2006. A description of
the proposal and number of shares voted are as follows:
----------------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
----------------------------------------------------------------------------------------------------------
1. To elect the Fund's Trustees: Robert C. Doll, Jr. 36,759,782 473,263
Cynthia A. Montgomery 36,759,257 473,788
Jean Margo Reid 36,760,328 472,717
Roscoe S. Suddarth 36,726,705 506,340
Edward D. Zinbarg 36,741,806 491,239
----------------------------------------------------------------------------------------------------------
During the six-month period ended February 28, 2006, MuniHoldings Florida
Insured Fund Preferred Shareholders (Series A - E) voted on the following
proposal. The proposal was approved at a shareholders' meeting on January 26,
2006. A description of the proposal and number of shares voted are as follows:
----------------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
----------------------------------------------------------------------------------------------------------
1. To elect the Fund's Board of Trustees: Robert C. Doll, Jr. 14,252 75
Ronald W. Forbes 14,252 39
Cynthia A. Montgomery 14,252 39
Jean Margo Reid 14,252 39
Roscoe S. Suddarth 14,252 64
Richard R. West 14,252 64
Edward D. Zinbarg 14,252 64
----------------------------------------------------------------------------------------------------------
32 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
Proxy Results MuniHoldings New York Insured Fund, Inc.
During the six-month period ended February 28, 2006, MuniHoldings New York
Insured Fund, Inc.'s Common Stock shareholders voted on the following proposal.
The proposal was approved at a shareholders' meeting on January 26, 2006. A
description of the proposal and number of shares voted are as follows:
----------------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
----------------------------------------------------------------------------------------------------------
1. To elect the Fund's Trustees: Robert C. Doll, Jr. 29,567,771 427,920
Cynthia A. Montgomery 29,574,553 421,138
Jean Margo Reid 29,555,631 440.060
Roscoe S. Suddarth 29,527,365 468,326
Edward D. Zinbarg 29,535,823 459,868
----------------------------------------------------------------------------------------------------------
During the six-month period ended February 28, 2006, MuniHoldings New York
Insured Fund, Inc.'s Preferred Stock shareholders (Series A - E) voted on the
following proposal. The proposal was approved at a shareholders' meeting on
January 26, 2006. A description of the proposal and number of shares voted are
as follows:
----------------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
----------------------------------------------------------------------------------------------------------
1. To elect the Fund's Board of Trustees: Robert C. Doll, Jr. 12,296 76
Ronald W. Forbes 12,296 25
Cynthia A. Montgomery 12,296 25
Jean Margo Reid 12,296 19
Roscoe S. Suddarth 12,296 21
Richard R. West 12,296 25
Edward D. Zinbarg 12,296 25
----------------------------------------------------------------------------------------------------------
SEMI-ANNUAL REPORTS FEBRUARY 28, 2006 33
Availability of Quarterly Schedules of Investments
The Funds file their complete schedules of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third quarters of
each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the SEC's
Web site at http://www.sec.gov. The Funds' Forms N-Q may also be reviewed and
copied at the SEC's Public Reference Room in Washington, DC. Information on the
operation of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
Electronic Delivery
The Funds offer electronic delivery of communications to their shareholders. In
order to receive this service, you must register your account and provide us
with e-mail information. To sign up for this service, simply access this Web
site at http://www.icsdelivery.com/live and follow the instructions. When you
visit this site, you will obtain a personal identification number (PIN). You
will need this PIN should you wish to update your e-mail address, choose to
discontinue this service and/or make any other changes to the service. This
service is not available for certain retirement accounts at this time.
34 SEMI-ANNUAL REPORTS FEBRUARY 28, 2006
[LOGO] Merrill Lynch Investment Managers
www.mlim.ml.com
--------------------------------------------------------------------------------
Mercury Advisors
A Division of Merrill Lynch Investment Managers
www.mercury.ml.com
These reports, including the financial information herein, are transmitted to
shareholders of MuniHoldings Florida Insured Fund and MuniHoldings New York
Insured Fund, Inc. for their information. This is not a prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. The Funds have leveraged their Common
Shares or Stock and intend to remain leveraged by issuing Preferred Shares or
Stock to provide the Common Shareholders or Common Stock shareholders with a
potentially higher rate of return. Leverage creates risks for Common
Shareholders or Common Stock shareholders, including the likelihood of greater
volatility of net asset value and market price of shares of the Common Shares or
Stock, and the risk that fluctuations in the short-term dividend rates of the
Preferred Shares or Stock may affect the yield to Common Shareholders or Common
Stock shareholders. Statements and other information herein are as dated and are
subject to change.
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free 1-800-637-3863; (2) at
www.mutualfunds.ml.com; and (3) on the Securities and Exchange Commission's Web
site at http://www.sec.gov. Information about how the Funds vote proxies
relating to securities held in the Funds' portfolios during the most recent
12-month period ended June 30 is available (1) at www.mutualfunds.ml.com; and
(2) on the Securities and Exchange Commission's Web site at http://www.sec.gov.
MuniHoldings Florida Insured Fund
MuniHoldings New York Insured Fund, Inc.
Box 9011
Princeton, NJ 08543-9011
#MHFLNY -- 2/06
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-annual
report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable to this
semi-annual report
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable to this semi-annual
report
Item 8 - Portfolio Managers of Closed-End Management Investment Companies - Not
Applicable to this semi-annual report
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - Not Applicable
Item 11 - Controls and Procedures
11(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others particularly
during the period in which this report is being prepared. The
registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation
of these controls and procedures as of a date within 90 days prior to
the filing date of this report.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
270.30a-3(d)) that occurred during the last fiscal half-year of the
period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
MuniHoldings New York Insured Fund, Inc.
By: /s/ Robert C. Doll, Jr.
---------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
MuniHoldings New York Insured Fund, Inc.
Date: April 20, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Robert C. Doll, Jr.
---------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
MuniHoldings New York Insured Fund, Inc.
Date: April 20, 2006
By: /s/ Donald C. Burke
---------------------------
Donald C. Burke,
Chief Financial Officer of
MuniHoldings New York Insured Fund, Inc.
Date: April 20, 2006