UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-06570
Name of Fund: BlackRock MuniYield New Jersey Fund, Inc. (MYJ)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive Officer,
BlackRock MuniYield New Jersey Fund, Inc., 800 Scudders Mill Road,
Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ
08543-9011
Registrant's telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 11/30/2007
Date of reporting period: 12/01/2006 - 11/30/2007
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
BlackRock MuniYield BLACKROCK
New Jersey Fund, Inc. (MYJ)
ANNUAL REPORT | NOVEMBER 30, 2007
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
Table of Contents
================================================================================
Page
--------------------------------------------------------------------------------
A Letter to Shareholders ................................................. 3
Annual Report:
Fund Summary ............................................................. 4
The Benefits and Risks of Leveraging ..................................... 5
Financial Statements:
Schedule of Investments ................................................ 6
Statement of Assets and Liabilities .................................... 10
Statement of Operations ................................................ 10
Statements of Changes in Net Assets .................................... 11
Financial Highlights ..................................................... 12
Notes to Financial Statements ............................................ 13
Report of Independent Registered Public Accounting Firm .................. 16
Important Tax Information (unaudited) .................................... 16
Automatic Dividend Reinvestment Plan ..................................... 17
Officers and Directors ................................................... 18
Additional Information ................................................... 22
2 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007
A Letter to Shareholders
Dear Shareholder
The November reporting period was fairly tumultuous for financial markets,
culminating in mixed results for some of the major benchmark indexes:
Total Returns as of November 30, 2007 6-month 12-month
========================================================================================================
U.S. equities (S&P 500 Index) -2.33% + 7.72%
--------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) -8.82 - 1.17
--------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) +2.82 +17.30
--------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers U.S. Aggregate Bond Index) +5.32 + 6.05
--------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +2.40 + 2.71
--------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) -2.84 + 3.01
--------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future results. Index performance shown for
illustrative purposes only. You cannot invest directly in an index.
Subprime mortgage woes dominated headlines for much of 2007, but intensified in
the summer and fall, spawning a widespread liquidity and credit crisis with
ramifications across global markets. The Federal Reserve Board (the "Fed")
stepped in to inject liquidity into the markets and bolster investor confidence,
cutting the federal funds rate by 0.50% in September, 0.25% in October and 0.25%
in December, which brought the target short-term interest rate to 4.25%. In
taking action, the central bankers, who had long deemed themselves inflation
fighters, were seeking to stem the fallout from the credit crunch and forestall
a wider economic unraveling.
Amid the volatility throughout 2007, equity markets displayed surprising
resilience. To some extent, the credit turmoil dampened corporate
merger-and-acquisition (M&A) activity, a key source of strength for equity
markets. Still, market fundamentals generally held firm, dividend payouts and
share buybacks continued, and valuations remained attractive. As the returns
indicate, the most recent six months were more trying, reflecting the slowing
U.S. economy, a troubled housing market and a more difficult corporate earnings
backdrop. Overall, large cap stocks outperformed small caps as investors grew
increasingly risk averse. International markets fared better than their U.S.
counterparts, benefiting from generally stronger economies.
In fixed income markets, mixed economic signals and the credit woes resulted in
a flight to quality. Investors shunned bonds associated with the housing and
credit markets in favor of higher-quality Treasury issues. The yield on 10-year
Treasury issues, which touched 5.30% in June (its highest level in five years),
fell to 3.97% by period-end, while prices correspondingly rose. Meanwhile, the
tax-exempt bond market has been challenged by a combination of record-setting
supply, economic uncertainty and concerns around the credit worthiness of bond
insurers. This brought municipal bond prices to relatively attractive levels
and, as such, demand generally held firm.
As you navigate market volatility, we encourage you to review your investment
goals with your financial professional and to make portfolio changes, as needed.
For more market insight and commentary from BlackRock investment professionals,
we invite you to visit www.blackrock.com/funds. As always, we thank you for
entrusting BlackRock with your investment assets, and we look forward to
continuing to serve you in the months and years ahead.
Sincerely,
/s/ Rob Kapito
Rob Kapito
President, BlackRock Advisors, LLC
3
THIS PAGE NOT PART OF YOUR FUND REPORT
Fund Summary as of November 30, 2007
Investment Objective
BlackRock MuniYield New Jersey Fund, Inc. (MYJ) seeks to provide shareholders
with as high a level of current income exempt from federal and New Jersey income
taxes as is consistent with its investment policies and prudent investment
management by investing primarily in a portfolio of long-term, investment grade
municipal obligations the interest on which, in the opinion of bond counsel to
the issuer, is exempt from federal income tax and New Jersey personal income
taxes.
Fund Information
Symbol on New York Stock Exchange ................................ MYJ
Initial Offering Date ............................................ May 1, 1992
Yield on Closing Market Price as of November 30, 2007 ($13.66)* .. 5.10%
Tax Equivalent Yield** ........................................... 7.85%
Current Monthly Distribution per share of Common Stock*** ........ $ .058
Current Annualized Distribution per share of Common Stock*** ..... $ .696
Leverage as of November 30, 2007**** ............................. 36%
--------------------------------------------------------------------------------
* Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
Past performance does not guarantee future results.
** Tax equivalent yield assumes the maximum federal tax rate of 35%.
*** The distribution is not constant and is subject to change.
**** As a percentage of managed assets, which is the total assets of the Fund
(including any assets attributable to Auction Market Preferred Stock that
may be outstanding) minus the sum of accrued liabilities (other than debt
representing financial leverage).
The table below summarizes the changes in the Fund's market price and net asset
value per share:
--------------------------------------------------------------------------------
11/30/07 11/30/06 Change High Low
--------------------------------------------------------------------------------
Market Price .............. $13.66 $15.47 (11.70%) $15.68 $13.35
Net Asset Value ........... $15.18 $15.90 (4.53%) $15.94 $14.57
--------------------------------------------------------------------------------
The following charts show the Fund's portfolio composition and credit quality
allocations of the Fund's long-term investments:
Portfolio Composition
Sector 11/30/07 11/30/06
--------------------------------------------------------------------------------
Education ................................................. 18% 19%
Hospital .................................................. 17 17
Transportation ............................................ 17 23
City, County, State ....................................... 13 12
Industrial & Pollution Control ............................ 7 7
Water & Sewer ............................................. 7 4
Housing ................................................... 6 5
Lease Revenue ............................................. 6 7
Tax Revenue ............................................... 4 2
Tobacco ................................................... 3 2
Power ..................................................... 2 2
--------------------------------------------------------------------------------
Credit Quality Allocations*
Credit Rating 11/30/07 11/30/06
--------------------------------------------------------------------------------
AAA/Aaa ................................................... 60% 64%
AA/Aa ..................................................... 12 10
A/A ....................................................... 12 8
BBB/Baa ................................................... 14 16
BB/Ba ..................................................... 1 --
CC/Ca ..................................................... -- 1
NR (Not Rated) ............................................ 1 1
--------------------------------------------------------------------------------
* Using the higher of S&P's or Moody's ratings.
4 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007
The Benefits and Risks of Leveraging
BlackRock MuniYield New Jersey Fund, Inc. utilizes leverage to seek to enhance
the yield and net asset value of its Common Stock. However, these objectives
cannot be achieved in all interest rate environments. To leverage, the Fund
issues Preferred Stock, which pays dividends at prevailing short-term interest
rates, and invests the proceeds in long-term municipal bonds. The interest
earned on these investments, net of dividends to Preferred Stock, is paid to
Common Stock shareholders in the form of dividends, and the value of these
portfolio holdings is reflected in the per share net asset value of the Fund's
Common Stock. However, in order to benefit Common Stock shareholders, the yield
curve must be positively sloped; that is, short-term interest rates must be
lower than long-term interest rates. At the same time, a period of generally
declining interest rates will benefit Common Stock shareholders. If either of
these conditions change, then the risks of leveraging will begin to outweigh the
benefits.
To illustrate these concepts, assume a fund's Common Stock capitalization of
$100 million and the issuance of Preferred Stock for an additional $50 million,
creating a total value of $150 million available for investment in long-term
municipal bonds. If prevailing short-term interest rates are approximately 3%
and long-term interest rates are approximately 6%, the yield curve has a
strongly positive slope. The fund pays dividends on the $50 million of Preferred
Stock based on the lower short-term interest rates. At the same time, the fund's
total portfolio of $150 million earns the income based on long-term interest
rates.
In this case, the dividends paid to Preferred Stock shareholders are
significantly lower than the income earned on the fund's long-term investments,
and therefore the Common Stock shareholders are the beneficiaries of the
incremental yield. However, if short-term interest rates rise, narrowing the
differential between short-term and long-term interest rates, the incremental
yield pickup on the Common Stock will be reduced or eliminated completely. At
the same time, the market value of the fund's Common Stock (that is, its price
as listed on the New York Stock Exchange) may, as a result, decline.
Furthermore, if long-term interest rates rise, the Common Stock's net asset
value will reflect the full decline in the price of the portfolio's investments,
since the value of the fund's Preferred Stock does not fluctuate. In addition to
the decline in net asset value, the market value of the fund's Common Stock may
also decline.
As of November 30, 2007, the Fund's leverage amount, due to Auction Market
Preferred Stock, was 36% of total net assets, before the deduction of Preferred
Stock.
As a part of its investment strategy, the Fund may invest in certain securities
whose potential income return is inversely related to changes in a floating
interest rate ("inverse floaters"), including tender option bond residuals ("TOB
residuals"). In general, income on inverse floaters will decrease when
short-term interest rates increase and increase when short-term interest rates
decrease. Investments in inverse floaters may be characterized as derivative
securities and may subject the Fund to the risks of reduced or eliminated
interest payments and losses of invested principal. In addition, inverse
floaters have the effect of providing investment leverage and, as a result, the
market value of such securities will generally be more volatile than that of
fixed-rate, tax-exempt securities. To the extent the Fund invests in inverse
floaters, the market value of the Fund's portfolio and the net asset value of
the Fund's shares may also be more volatile than if the Fund did not invest in
these securities. (See Note 1(b) of the Notes to Financial Statements for
details of municipal bonds transferred to tender option bond trusts).
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007 5
Schedule of Investments as of November 30, 2007 (in Thousands)
Face
Amount Municipal Bonds Value
===============================================================================
New Jersey -- 141.0%
-------------------------------------------------------------------------------
$ 1,000 Burlington County, New Jersey, Bridge Commission
Revenue Bonds (Governmental Leasing Program),
5.25% due 8/15/2012 (g) $ 1,086
-------------------------------------------------------------------------------
1,500 Delaware River and Bay Authority Revenue Bonds, 5%
due 1/01/2033 (d) 1,541
-------------------------------------------------------------------------------
Delaware River Joint Toll Bridge Commission of
New Jersey and Pennsylvania, Bridge Revenue
Refunding Bonds:
2,010 5% due 7/01/2021 2,082
3,645 5% due 7/01/2028 3,700
-------------------------------------------------------------------------------
2,620 Essex County, New Jersey, Improvement Authority
Revenue Bonds, Series A, 5% due 10/01/2013 (b)(g) 2,847
-------------------------------------------------------------------------------
Garden State Preservation Trust of New Jersey, Capital
Appreciation Revenue Bonds, Series B (c)(i):
6,860 5.12% due 11/01/2023 3,298
4,540 5.25% due 11/01/2028 1,697
-------------------------------------------------------------------------------
Garden State Preservation Trust of New Jersey, Open
Space and Farmland Preservation Revenue Bonds,
Series A (c):
4,300 5.80% due 11/01/2022 4,897
5,460 5.75% due 11/01/2028 6,536
-------------------------------------------------------------------------------
Gloucester County, New Jersey, Improvement Authority,
Solid Waste Resource Recovery, Revenue Refunding
Bonds (Waste Management Inc. Project):
1,180 AMT, Series B, 7% due 12/01/2029 1,236
2,000 Series A, 6.85% due 12/01/2029 2,099
-------------------------------------------------------------------------------
1,500 Hudson County, New Jersey, COP, Refunding, 6.25%
due 12/01/2016 (d) 1,778
-------------------------------------------------------------------------------
4,500 Hudson County, New Jersey, Improvement Authority,
Facility Lease Revenue Refunding Bonds (Hudson
County Lease Project), 5.375% due 10/01/2024 (b) 4,603
-------------------------------------------------------------------------------
6,840 Jackson Township, New Jersey, School District, GO, 5%
due 4/15/2012 (b)(g) 7,321
-------------------------------------------------------------------------------
Middlesex County, New Jersey, Improvement
Authority, County-Guaranteed Revenue Bonds
(Golf Course Projects):
1,455 5.25% due 6/01/2022 1,570
3,050 5% due 6/01/2029 3,170
-------------------------------------------------------------------------------
970 Middlesex County, New Jersey, Improvement Authority,
Senior Revenue Bonds (Heldrich Center Hotel/
Conference Project), Series A, 5% due 1/01/2020 950
-------------------------------------------------------------------------------
1,500 Middlesex County, New Jersey, Pollution Control
Financing Authority, Revenue Refunding Bonds
(Amerada Hess Corporation), 6.05% due 9/15/2034 1,539
-------------------------------------------------------------------------------
Monmouth County, New Jersey, Improvement Authority,
Governmental Loan Revenue Refunding Bonds (a):
2,085 5% due 12/01/2011 (g) 2,220
1,215 5% due 12/01/2015 1,287
1,280 5% due 12/01/2016 1,356
-------------------------------------------------------------------------------
835 Morristown, New Jersey, Parking Authority Revenue
Bonds, 4.50% due 8/01/2037 (d) 822
-------------------------------------------------------------------------------
500 Mount Holly, New Jersey, Municipal Utilities Authority,
Sewer Revenue Bonds, Series C, 4.50%
due 12/01/2037 492
-------------------------------------------------------------------------------
New Jersey EDA, Cigarette Tax Revenue Bonds:
1,720 5.625% due 6/15/2019 1,733
1,895 5.75% due 6/15/2029 1,904
2,000 5.75% due 6/15/2029 (f) 2,166
370 5.50% due 6/15/2031 365
755 5.75% due 6/15/2034 757
-------------------------------------------------------------------------------
New Jersey EDA, EDR (Masonic Charity Foundation of
New Jersey):
1,425 5.25% due 6/01/2024 1,491
685 5.25% due 6/01/2032 706
-------------------------------------------------------------------------------
1,500 New Jersey EDA, First Mortgage Revenue Bonds
(Fellowship Village Project), Series C, 5.50%
due 1/01/2028 1,502
-------------------------------------------------------------------------------
New Jersey EDA, First Mortgage Revenue
Refunding Bonds, Series A:
1,250 (Fellowship Village), 5.50% due 1/01/2018 1,263
3,500 (Fellowship Village), 5.50% due 1/01/2025 3,511
2,500 (The Winchester Gardens at Ward Homestead
Project), 5.75% due 11/01/2024 2,560
2,000 (The Winchester Gardens at Ward Homestead
Project), 5.80% due 11/01/2031 2,026
-------------------------------------------------------------------------------
14,000 New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A, 5.25% due 7/01/2033 (d) 14,747
-------------------------------------------------------------------------------
New Jersey EDA, Revenue Bonds:
220 (Department of Human Services), 5%
due 7/01/2012 233
3,850 (Saint Barnabas Project), Series A, 6.30%
due 7/01/2024 (d)(i) 1,787
-------------------------------------------------------------------------------
New Jersey EDA, School Facilities Construction
Revenue Bonds:
5,800 Series L, 5% due 3/01/2030 (c) 6,014
3,400 Series O, 5.25% due 3/01/2023 3,656
3,000 Series P, 5% due 9/01/2015 3,258
3,115 Series P, 5.25% due 9/01/2016 3,416
2,000 Series U, 5% due 9/01/2037 (a) 2,094
-------------------------------------------------------------------------------
Portfolio Abbreviations
To simplify the listings of BlackRock MuniYield New Jersey Fund, Inc.'s
portfolio holdings in the Schedule of Investments, we have abbreviated the names
of many of the securities according to the list at right.
AMT Alternative Minimum Tax (subject to)
CABS Capital Appreciation Bonds
COP Certificates of Participation
EDA Economic Development Authority
EDR Economic Development Revenue Bonds
GO General Obligation Bonds
M/F Multi-Family
S/F Single-Family
6 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007
Schedule of Investments (continued) (in Thousands)
Face
Amount Municipal Bonds Value
===============================================================================
New Jersey (continued)
-------------------------------------------------------------------------------
New Jersey EDA, Water Facilities Revenue Bonds
(New Jersey -- American Water Company, Inc. Project),
AMT, Series A:
$ 1,000 5.25% due 11/01/2032 (a) $ 1,018
6,670 6.875% due 11/01/2034 (b) 6,759
-------------------------------------------------------------------------------
8,000 New Jersey EDA, Water Facilities Revenue Refunding
Bonds (United Water of New Jersey, Inc.), Series B,
4.50% due 11/01/2025 (a) 8,072
-------------------------------------------------------------------------------
3,500 New Jersey Environmental Infrastructure Trust Revenue
Bonds (Environmental Infrastructure), Series A, 5.25%
due 9/01/2010 (g) 3,715
-------------------------------------------------------------------------------
1,100 New Jersey Health Care Facilities Financing Authority,
Health System Revenue Bonds (Catholic Health East),
Series A, 5.375% due 11/15/2012 (g) 1,205
-------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing Authority
Revenue Bonds:
1,540 (Children's Specialized Hospital), Series A, 5.50%
due 7/01/2036 1,548
1,950 (Hunterdon Medical Center), Series A, 5.125%
due 7/01/2035 1,959
1,845 (Pascack Valley Hospital Association), 6.625%
due 7/01/2036 (l) 1,004
500 (RWJ Healthcare Corporation), Series B, 5%
due 7/01/2025 (e) 503
1,000 (RWJ Healthcare Corporation), Series B, 5%
due 7/01/2035 (e) 978
4,000 (Robert Wood University), 5.70%
due 7/01/2020 (a) 4,198
1,875 (Somerset Medical Center), 5.50%
due 7/01/2033 1,744
6,640 (South Jersey Hospital), 6% due 7/01/2012 (f) 7,367
2,000 (Southern Ocean County Hospital), 5.125%
due 7/01/2031 (e) 1,961
-------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds:
1,060 (Atlantic City Medical Center), 5.75%
due 7/01/2012 (g) 1,169
500 (Atlantic City Medical Center), 6.25%
due 7/01/2012 (g) 562
520 (Atlantic City Medical Center), 6.25%
due 7/01/2017 564
1,125 (Atlantic City Medical Center), 5.75%
due 7/01/2025 1,173
1,650 (Capital Health System Inc.), Series A, 5.75%
due 7/01/2023 1,699
1,500 (Meridian Health System Obligation Group),
5.25% due 7/01/2019 (c) 1,550
2,250 (Meridian Health System Obligation Group),
5.375% due 7/01/2024 (c) 2,322
2,195 (Meridian Health System Obligation Group),
5.25% due 7/01/2029 (c) 2,257
4,255 (Saint Barnabas Health Care System), Series A,
5% due 7/01/2029 4,071
2,000 (Saint Barnabas Health Care System), Series B,
5.92% due 7/01/2030 (i) 531
1,500 (Saint Barnabas Health Care System), Series B,
5.72% due 7/01/2036 (i) 275
13,250 (Saint Barnabas Health Care System), Series B,
5.18% due 7/01/2037 (i) 2,278
-------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds (concluded):
1,385 (South Jersey Hospital System), 5%
due 7/01/2036 1,389
1,650 (South Jersey Hospital System), 5%
due 7/01/2046 1,638
-------------------------------------------------------------------------------
4,150 New Jersey State Educational Facilities Authority,
Higher Education, Capital Improvement Revenue
Bonds, Series A, 5.125% due 9/01/2012 (a)(g) 4,488
-------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority
Revenue Bonds:
2,000 (Georgian Court College Project), Series C, 6.50%
due 7/01/2013 (f) 2,318
1,100 (Kean University), Series D, 5% due 7/01/2032 (b) 1,154
1,750 (Rider University), Series C, 5% due 7/01/2037 (e) 1,699
1,955 (Rowan University), Series C, 5%
due 7/01/2014 (d)(g) 2,136
2,165 (Rowan University), Series C, 5.125%
due 7/01/2014 (d)(g) 2,381
-------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority,
Revenue Refunding Bonds:
1,000 (Gregorian Court University), Series D, 5.25%
due 7/01/2037 990
5,305 (Montclair State University), Series L, 5%
due 7/01/2014 (d)(g) 5,795
2,600 (Princeton University), Series A, 5%
due 7/01/2030 2,717
750 (Ramapo College), Series I, 4.25%
due 7/01/2031 (a) 719
810 (Ramapo College), Series I, 4.25%
due 7/01/2036 (a) 770
1,000 (Rider University), 5% due 7/01/2017 (e) 1,011
1,255 (Rider University), Series A, 5.50%
due 7/01/2023 (e) 1,293
1,450 (Rider University), Series A, 5.25%
due 7/01/2034 (e) 1,446
1,300 (Rowan University), Series B, 4.25%
due 7/01/2034 (b) 1,229
2,200 (Stevens Institute of Technology), Series A, 5%
due 7/01/2027 2,142
-------------------------------------------------------------------------------
3,170 New Jersey State Higher Education Assistance
Authority, Student Loan Revenue Bonds, AMT, Series A,
5.30% due 6/01/2017 (a) 3,205
-------------------------------------------------------------------------------
2,500 New Jersey State Highway Authority, Garden State
Parkway General Revenue Refunding Bonds, 5.625%
due 1/01/2010 (f) 2,643
-------------------------------------------------------------------------------
7,175 New Jersey State Housing and Mortgage Finance
Agency, Capital Fund Program Revenue Bonds,
Series A, 4.70% due 11/01/2025 (c) 7,251
-------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency, Home Buyer Revenue Bonds, AMT (d):
4,515 Series CC, 5.80% due 10/01/2020 4,646
2,600 Series U, 5.60% due 10/01/2012 2,642
-------------------------------------------------------------------------------
1,500 New Jersey State Housing and Mortgage Finance
Agency, M/F Revenue Bonds, AMT, Series A, 4.90%
due 11/01/2035 (b) 1,448
-------------------------------------------------------------------------------
4,945 New Jersey State Housing and Mortgage Finance
Agency, S/F Housing Revenue Refunding Bonds, AMT,
Series T, 4.65% due 10/01/2032 4,633
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007 7
Schedule of Investments (continued) (in Thousands)
Face
Amount Municipal Bonds Value
===============================================================================
New Jersey (concluded)
-------------------------------------------------------------------------------
$ 3,620 New Jersey State Transit Corporation, COP (Federal
Transit Administration Grants), Series B, 5.75%
due 9/15/2014 $ 3,897
-------------------------------------------------------------------------------
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds:
3,525 Series A, 5.50% due 12/15/2021 4,003
4,140 Series C, 5.05% due 12/15/2035 (a)(i) 1,074
4,555 Series D, 5% due 6/15/2020 4,843
-------------------------------------------------------------------------------
5,865 New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Refunding Bonds,
Series B, 5.50% due 12/15/2021 (d) 6,735
-------------------------------------------------------------------------------
4,870 New Jersey State Turnpike Authority, Turnpike Revenue
Bonds, Series B, 5.15% due 1/01/2035 (a)(i) 3,559
-------------------------------------------------------------------------------
3,750 Newark, New Jersey, Housing Authority,
Port Authority -- Port Newark Marine Terminal,
Additional Rent-Backed Revenue Refunding Bonds
(City of Newark Redevelopment Projects), 4.375%
due 1/01/2037 (d) 3,621
-------------------------------------------------------------------------------
Perth Amboy, New Jersey, GO (Convertible CABS),
Refunding (c)(h):
1,575 4.739% due 7/01/2033 1,306
1,925 4.744% due 7/01/2034 1,594
-------------------------------------------------------------------------------
5,000 Port Authority of New York and New Jersey,
Consolidated Revenue Bonds, 93rd Series, 6.125%
due 6/01/2094 5,856
-------------------------------------------------------------------------------
6,000 Rahway Valley Sewerage Authority, New Jersey, Sewer
Revenue Bonds, CABS, Series A,
4.87% due 9/01/2031 (d)(i) 1,926
-------------------------------------------------------------------------------
Salem County, New Jersey, Improvement Authority
Revenue Bonds (Finlaw State Office Building
Project) (c):
500 5.375% due 8/15/2028 544
500 5.25% due 8/15/2038 533
-------------------------------------------------------------------------------
South Jersey Port Corporation of New Jersey, Revenue
Refunding Bonds:
4,280 4.75% due 1/01/2018 4,410
2,485 4.85% due 1/01/2019 2,561
2,000 5% due 1/01/2020 2,073
-------------------------------------------------------------------------------
Tobacco Settlement Financing Corporation of New
Jersey, Asset-Backed Revenue Bonds:
3,010 7% due 6/01/2013 (g) 3,548
1,925 5.75% due 6/01/2032 2,084
-------------------------------------------------------------------------------
Tobacco Settlement Financing Corporation of New
Jersey, Asset-Backed Revenue Refunding Bonds:
5,000 Series 1A, 5% due 6/01/2041 4,188
5,100 Series 1B, 5.65% due 6/01/2041 (i) 510
-------------------------------------------------------------------------------
Union County, New Jersey, Utilities Authority, Senior
Lease Revenue Refunding Bonds (Ogden Martin
System of Union, Inc.), AMT, Series A (a):
1,585 5.375% due 6/01/2017 1,610
1,175 5.375% due 6/01/2018 1,193
-------------------------------------------------------------------------------
University of Medicine and Dentistry of New Jersey,
Revenue Bonds, Series A (a):
945 5.50% due 12/01/2018 1,023
1,900 5.50% due 12/01/2019 2,057
1,870 5.50% due 12/01/2020 2,024
1,435 5.50% due 12/01/2021 1,553
===============================================================================
Puerto Rico -- 6.6%
-------------------------------------------------------------------------------
1,730 Puerto Rico Commonwealth Highway and Transportation
Authority, Transportation Revenue Refunding Bonds,
Series K, 5% due 7/01/2015 (g) 1,909
-------------------------------------------------------------------------------
2,750 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series TT, 5% due 7/01/2032 2,754
-------------------------------------------------------------------------------
Puerto Rico Industrial, Tourist, Educational, Medical
and Environmental Control Facilities Revenue Bonds:
1,900 (Cogeneration Facility -- AES Puerto Rico Project),
AMT, 6.625% due 6/01/2026 1,994
3,500 (University Plaza Project), Series A, 5%
due 7/01/2033 (d) 3,582
-------------------------------------------------------------------------------
3,750 Puerto Rico Municipal Finance Agency, GO, Series A,
5% due 8/01/2021 (c) 3,999
===============================================================================
U.S. Virgin Islands -- 2.6%
-------------------------------------------------------------------------------
3,500 Virgin Islands Government Refinery Facilities, Revenue
Refunding Bonds (Hovensa Coker Project), AMT, 6.50%
due 7/01/2021 3,702
-------------------------------------------------------------------------------
1,900 Virgin Islands Public Finance Authority, Refinery
Facilities Revenue Bonds (Hovensa Refinery), AMT,
5.875% due 7/01/2022 1,970
-------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $313,911) -- 150.2% 323,816
===============================================================================
===============================================================================
Municipal Bonds Transferred to
Tender Option Bond Trusts (h)
===============================================================================
New Jersey -- 3.8%
-------------------------------------------------------------------------------
Delaware River Port Authority of Pennsylvania and
New Jersey Revenue Bonds (c):
2,500 6% due 1/01/2018 2,624
5,360 6% due 1/01/2019 5,625
-------------------------------------------------------------------------------
Total Municipal Bonds Transferred to
Tender Option Bond Trusts
(Cost -- $8,212) -- 3.8% 8,249
===============================================================================
===============================================================================
Shares
Held Short-Term Securities
===============================================================================
2,413 CMA New Jersey Municipal Money Fund, 2.96% (i)(j) 2,413
-------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $2,413) -- 1.1% 2,413
===============================================================================
Total Investments (Cost -- $324,536*) -- 155.1% 334,478
Other Assets Less Liabilities -- 1.9% 4,163
Liability for Trust Certificates,
Including Interest Expense Payable (1.8%) (3,991)
Preferred Stock, at Redemption Value -- (55.2%) (119,065)
---------
Net Assets Applicable to Common Stock -- 100.0% $ 215,585
=========
8 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007
Schedule of Investments (concluded) (in Thousands)
* The cost and unrealized appreciation (depreciation) of investments as of
November 30, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ............................................. $ 320,316
=========
Gross unrealized appreciation .............................. $ 14,105
Gross unrealized depreciation .............................. (3,873)
---------
Net unrealized appreciation ................................ $ 10,232
=========
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FSA Insured.
(d) MBIA Insured.
(e) Radian Insured.
(f) Assured Guaranty Insured.
(g) Prerefunded.
(h) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired the residual interest certificates. These
securities serve as a collateral in a financing transaction. See Note 1(b)
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
(i) Represents a zero-coupon or step bond; the interest rate shown reflects
the effective yield at the time of purchase.
(j) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
CMA New Jersey Municipal Money Fund 2,138 $140
--------------------------------------------------------------------------
(k) Represents the current yield as of November 30, 2007.
(l) Non-income producing security; issuer filed for bankruptcy or is in
default of interest payments.
See Notes to Financial Statements.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007 9
Statement of Assets and Liabilities
As of November 30, 2007
===============================================================================
Assets
-------------------------------------------------------------------------------
Investments in unaffiliated securities, at value
(identified cost -- $322,123,858) .......................... $ 332,065,370
Investments in affiliated securities, at value
(identified cost -- $2,412,538) ............................ 2,412,538
Cash ......................................................... 41,743
Interest receivable .......................................... 5,658,930
Prepaid expenses ............................................. 18,628
-------------
Total assets ................................................. 340,197,209
-------------
===============================================================================
Liabilities
-------------------------------------------------------------------------------
Trust certificates* .......................................... 3,930,000
Payables:
Dividends to Common Stock shareholders ..................... 823,788
Securities purchased ....................................... 488,720
Investment adviser ......................................... 145,421
Interest expense ........................................... 60,538
Other affiliates ........................................... 2,430
Accrued expenses ............................................. 95,934
-------------
Total liabilities ............................................ 5,546,831
-------------
===============================================================================
Preferred Stock
-------------------------------------------------------------------------------
Preferred Stock, at redemption value, par value $.05 per share
(2,400 Series A Shares and 1,500 Series B Shares) and $.10
per share (860 Series C Shares) of AMPS** authorized, issued
and outstanding at $25,000 per share liquidation preference 119,065,174
-------------
===============================================================================
Net Assets Applicable to Common Stock
-------------------------------------------------------------------------------
Net assets applicable to Common Stock ........................ $ 215,585,204
=============
===============================================================================
Analysis of Net Assets Applicable to Common Stock
-------------------------------------------------------------------------------
Common Stock, par value $.10 per share (14,203,242 shares
issued and outstanding) .................................... $ 1,420,324
Paid-in capital in excess of par ............................. 203,960,129
Undistributed investment income -- net ....................... 1,964,587
Accumulated realized capital losses -- net ................... (1,701,348)
Unrealized appreciation -- net ............................... 9,941,512
-------------
Total -- Equivalent to $15.18 net asset value per share of
Common Stock (market price -- $13.66) ........................ $ 215,585,204
=============
* Represents short-term floating rate certificates issued by tender option
bond trusts.
** Auction Market Preferred Stock.
See Notes to Financial Statements.
Statement of Operations
For the Year Ended November 30, 2007
===============================================================================
Investment Income
-------------------------------------------------------------------------------
Interest ..................................................... $ 17,061,867
Dividends from affiliates .................................... 140,447
-------------
Total income ................................................. 17,202,314
-------------
===============================================================================
Expenses
-------------------------------------------------------------------------------
Investment advisory fees ..................................... 1,696,520
Interest expense and fees .................................... 376,090
Commission fees .............................................. 301,920
Accounting services .......................................... 125,176
Professional fees ............................................ 82,528
Transfer agent fees .......................................... 63,256
Printing and shareholder reports ............................. 45,941
Directors' fees and expenses ................................. 19,884
Custodian fees ............................................... 19,702
Pricing fees ................................................. 18,355
Listing fees ................................................. 9,436
Other ........................................................ 61,157
-------------
Total expenses before reimbursement .......................... 2,819,965
Reimbursement of expenses .................................... (19,930)
-------------
Total expenses after reimbursement ........................... 2,800,035
-------------
Investment income -- net ..................................... 14,402,279
-------------
===============================================================================
Realized & Unrealized Gain (Loss) -- Net
-------------------------------------------------------------------------------
Realized gain on investments -- net .......................... 1,589,868
Change in unrealized appreciation on investments -- net ...... (12,322,831)
-------------
Total realized and unrealized loss -- net .................... (10,732,963)
-------------
===============================================================================
Dividends to Preferred Stock Shareholders
-------------------------------------------------------------------------------
Investment income -- net ..................................... (4,053,487)
-------------
Net Decrease in Net Assets Resulting from Operations ......... $ (384,171)
=============
See Notes to Financial Statements.
10 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007
Statements of Changes in Net Assets
For the Year Ended
November 30,
-------------------------------
Increase (Decrease) in Net Assets: 2007 2006
===================================================================================================================================
Operations
-----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ....................................................................... $ 14,402,279 $ 14,265,484
Realized gain -- net ........................................................................... 1,589,868 1,517,835
Change in unrealized appreciation -- net ....................................................... (12,322,831) 6,246,899
Dividends to Preferred Stock shareholders ...................................................... (4,053,487) (3,617,009)
-------------------------------
Net increase (decrease) in net assets resulting from operations ................................ (384,171) 18,413,209
-------------------------------
===================================================================================================================================
Dividends to Common Stock Shareholders
-----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ....................................................................... (9,885,456) (10,808,667)
-------------------------------
Net decrease in net assets resulting from dividends to Common Stock shareholders ............... (9,885,456) (10,808,667)
-------------------------------
===================================================================================================================================
Net Assets Applicable to Common Stock
-----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets applicable to Common Stock ............................. (10,269,627) 7,604,542
Beginning of year .............................................................................. 225,854,831 218,250,289
-------------------------------
End of year* ................................................................................... $ 215,585,204 $ 225,854,831
===============================
* Undistributed investment income -- net ................................................... $ 1,964,587 $ 1,613,177
===============================
See Notes to Financial Statements.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007 11
Financial Highlights
For the Year Ended November 30,
The following per share data and ratios have been derived ------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year .............................. $ 15.90 $ 15.37 $ 15.25 $ 15.39 $ 14.84
------------------------------------------------------------
Investment income -- net+ ....................................... 1.01 1.00 1.01 1.06 1.05
Realized and unrealized gain (loss) -- net ...................... (.74) .54 .18 (.14) .52
Dividends to Preferred Stock shareholders from
investment income -- net ...................................... (.29) (.25) (.16) (.08) (.06)
------------------------------------------------------------
Total from investment operations ................................ (.02) 1.29 1.03 .84 1.51
------------------------------------------------------------
Dividends to Common Stock shareholders from
investment income -- net ...................................... (.70) (.76) (.91) (.96) (.96)
------------------------------------------------------------
Offering and underwriting costs, including adjustments,
resulting from the issuance of Preferred Stock ................ -- -- --++ (.02) --
------------------------------------------------------------
Net asset value, end of year .................................... $ 15.18 $ 15.90 $ 15.37 $ 15.25 $ 15.39
============================================================
Market price per share, end of year ............................. $ 13.66 $ 15.47 $ 14.38 $ 14.73 $ 14.34
============================================================
===================================================================================================================================
Total Investment Return*
-----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share .............................. .11% 8.83% 7.08% 5.84% 10.81%
============================================================
Based on market price per share ................................. (7.41%) 13.17% 3.72% 9.72% 8.90%
============================================================
===================================================================================================================================
Ratios Based on Average Net Assets Applicable to Common Stock
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of reimbursement and excluding
interest expense and fees**@ .................................. 1.10% 1.09% 1.09% 1.02% 1.02%
============================================================
Total expenses, net of reimbursement** .......................... 1.27% 1.44% 1.39% 1.24% 1.21%
============================================================
Total expenses** ................................................ 1.28% 1.44% 1.39% 1.25% 1.22%
============================================================
Total investment income -- net** ................................ 6.56% 6.50% 6.47% 6.94% 6.94%
============================================================
Amount of dividends to Preferred Stock shareholders ............. 1.85% 1.65% 1.05% .50% .40%
============================================================
Investment income to Common Stock shareholders -- net ........... 4.71% 4.85% 5.42% 6.44% 6.54%
============================================================
===================================================================================================================================
Supplemental Data
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock,
end of year (in thousands) .................................... $215,585 $225,855 $218,250 $216,618 $218,642
============================================================
Preferred Stock outstanding at liquidation preference,
end of year (in thousands) .................................... $119,000 $119,000 $119,000 $119,000 $ 97,500
============================================================
Portfolio turnover .............................................. 18% 9% 32% 14% 26%
============================================================
===================================================================================================================================
Leverage
-----------------------------------------------------------------------------------------------------------------------------------
Asset coverage per $1,000 ....................................... $ 2,812 $ 2,898 $ 2,834 $ 2,820 $ 3,242
============================================================
* 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.
+ Based on average shares outstanding.
++ Amount is less than $(.01) per share.
@ Interest expense and fees relate to tender option bond trusts. See Note
1(b) of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
See Notes to Financial Statements.
12 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007
Notes to Financial Statements
1. Significant Accounting Policies:
BlackRock MuniYield New Jersey Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended, as a non-diversified, closed-end
management investment company. The Fund's financial statements are prepared in
conformity with U.S. generally accepted accounting principles, which may require
the use of management accruals and estimates. Actual results may differ from
these estimates. The Fund determines and makes available for publication the net
asset value of its Common Stock on a daily basis. The Fund's Common Stock shares
are listed on the New York Stock Exchange under the symbol MYJ. The following is
a summary of significant accounting policies followed by the Fund.
(a) Valuation of investments -- Municipal bonds are traded primarily in the
over-the-counter ("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 Fund under the general direction
of the Board of Directors. Such valuations and procedures are reviewed
periodically by the Board of Directors of the Fund. Financial futures contracts
and options thereon, which are traded on the exchanges, are valued at their
closing prices as of the close of such exchanges. Effective September 4, 2007,
exchange-traded options are valued at the mean between the last bid and ask
prices at the close of the options market in which the options trade and
previously were valued at the last sales price as of the close of options
trading on applicable exchanges. Options traded in the OTC market are valued at
the last asked price (options written) or the last bid price (options
purchased). Swap agreements are valued by quoted fair values received daily by
the Fund's pricing service. Investments in open-end investment companies are
valued at their net asset value each business day. Securities and other assets
for which market quotations are not readily available are valued at fair value
as determined in good faith by or under the direction of the Board of Directors
of the Fund.
(b) Municipal bonds transferred to tender option bond trusts -- The Fund invests
in leveraged residual certificates ("TOB Residuals") issued by tender option
bond trusts ("TOBs"). A TOB is established by a third party sponsor forming a
special purpose entity, into which the Fund, or an agent on behalf of the Fund,
transfers municipal securities. A TOB typically issues two classes of beneficial
interests: short-term floating rate certificates, which are sold to third party
investors, and residual certificates, which are generally issued to the Fund
which made the transfer or to affiliates of the Fund. The Fund's transfers of
the municipal securities to a TOB do not qualify for sale treatment under
Statement of Financial Accounting Standards No. 140, "Accounting for Transfers
and Servicing of Financial Assets and Extinguishments of Liabilities" ("FAS
140"), therefore the municipal securities deposited into a TOB are presented in
the Fund's schedule of investments and the proceeds from the transaction are
reported as a liability for trust certificates of the Fund. Similarly, proceeds
from residual certificates issued to affiliates, if any, from the transaction
are included in the liability for trust certificates. Interest income from the
underlying security is recorded by the Fund on an accrual basis. Interest
expense incurred on the secured borrowing and other expenses related to
remarketing, administration and trustee services to a TOB are reported as
expenses of the Fund. The floating rate certificates have interest rates that
generally reset weekly and their holders have the option to tender certificates
to the TOB for redemption at par at each reset date. The residual interests held
by the Fund include the right of the Fund (1) to cause the holders of a
proportional share of the floating rate certificates to tender their
certificates at par, and (2) to transfer a corresponding share of the municipal
securities from the TOB to the Fund. At November 30, 2007, the aggregate value
of the underlying municipal securities transferred to TOBs was $8,248,913, the
related liability for trust certificates was $3,930,000 and the interest rate
was 3.697%.
Financial transactions executed through TOBs generally will underperform the
market for fixed rate municipal bonds in a rising interest rate environment, but
tend to outperform the market for fixed rate bonds when interest rates decline
or remain relatively stable. Should short-term interest rates rise, the Fund's
investments in TOB Residuals likely will adversely affect the Fund's investment
income -- net and distributions to shareholders. Fluctuations in the market
value of municipal securities deposited into the TOB may adversely affect the
Fund's net asset value per share.
While the Fund's investment policies and restrictions expressly permit
investments in inverse floating rate securities such as TOB Residuals, they
generally do not allow the Fund to borrow money for purposes of making
investments. The Fund's management believes that the Fund's restrictions on
borrowings do not apply to the liability for trust certificates reflected as a
result of the Fund's investments in TOB Residuals.
(c) Income taxes -- It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.
(d) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are deter-mined on the
identified cost basis. Dividend income is recorded on the ex-dividend date.
Interest income is recognized on the accrual basis. The Fund amortizes all
premiums and discounts on debt securities.
(e) Dividends and distributions -- Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007 13
Notes to Financial Statements (continued)
(f) Recent accounting pronouncements -- In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109."
FIN 48 prescribes the minimum recognition threshold a tax position must meet in
connection with accounting for uncertainties in income tax positions taken or
expected to be taken by an entity, including mutual funds, before being measured
and recognized in the financial statements. Adoption of FIN 48 is required for
the last net asset value calculation in the first required financial statement
reporting period for fiscal years beginning after December 15, 2006. The impact
on the Fund's financial statements, if any, is currently being assessed.
In September 2006, Statement of Financial Accounting Standards No. 157, "Fair
Value Measurements" ("FAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. The impact on the Fund's financial statement disclosures, if any,
is currently being assessed.
In addition, in February 2007, FASB issued Statement of Financial Accounting
Standards No. 159, "The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159"), which is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects
to apply the provisions of FAS 157. FAS 159 permits entities to choose to
measure many financial instruments and certain other items at fair value that
are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. The impact on the Fund's financial
statement disclosures, if any, is currently being assessed.
(g) Reclassification -- U.S. generally accepted accounting principles require
that certain components of net assets be adjusted to reflect permanent
differences between financial and tax reporting. Accordingly, during the current
year, $111,926 has been reclassified between undistributed net investment income
and accumulated net realized capital losses as a result of permanent differences
attributable to amortization methods on fixed income securities. This
reclassification has no effect on net assets or net asset values per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with BlackRock
Advisors, LLC (the "Manager"), an indirect, wholly owned subsidiary of
BlackRock, Inc. Merrill Lynch & Co., Inc. and The PNC Financial Services Group,
Inc. are the principal owners of BlackRock, Inc.
The Manager is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operations of the Fund. For such services, the Fund
pays a monthly fee at an annual rate of .50% of the Fund's average daily net
assets, including proceeds from the issuance of Preferred Stock. The Manager has
agreed to reimburse its management fee by the amount of management fees the Fund
pays to the Manager indirectly through its investment in CMA New Jersey
Municipal Money Fund. For the year ended November 30, 2007, the Manager
reimbursed the Fund in the amount of $19,930.
In addition, the Manager has entered into a sub-advisory agreement with
BlackRock Investment Management, LLC, an affiliate of the Manager, under which
the Manager pays the sub-adviser for services it provides a monthly fee at an
annual rate that is a percentage of the management fee paid by the Fund to the
Manager.
For the year ended November 30, 2007, the Fund reimbursed the Manager $6,277 for
certain accounting services.
Certain officers and/or directors of the Fund are officers and/or directors of
BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
year ended November 30, 2007 were $61,809,344 and $75,770,681, respectively.
4. Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of capital 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 capital stock without approval of the holders
of Common Stock.
14 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007
Notes to Financial Statements (concluded)
Preferred Stock
Auction Market Preferred Stock are redeemable shares of Preferred Stock of the
Fund, with a par value of $.05 per share on Series A and Series B Shares and
$.10 per share on Series C Shares 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 November 30, 2007 were as follows: Series A, 4.40%,
Series B, 4.20% and Series C, 4.15%.
The Fund pays commissions to certain broker-dealers at the end of each auction
at an annual rate ranging from .25% to .375%, calculated on the proceeds of each
auction. For the year ended November 30, 2007, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, an affiliate of BlackRock, Inc., earned $170,928 as
commissions.
5. Distributions to Shareholders:
The Fund paid a tax-exempt income dividend to holders of Common Stock in the
amount of $.058000 per share on December 31, 2007 to shareholders of record on
December 14, 2007.
The tax character of distributions paid during the fiscal years ended November
30, 2007 and November 30, 2006 was as follows:
--------------------------------------------------------------------------------
11/30/2007 11/30/2006
--------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income ............................. $ 13,938,943 $14,425,676
---------------------------
Total distributions ............................. $ 13,938,943 $14,425,676
===========================
As of November 30, 2007, the components of accumulated earnings on a tax basis
were as follows:
-----------------------------------------------------------------------------
Undistributed tax-exempt income -- net ...................... $ 1,461,436
Undistributed ordinary income ............................... 111,926
Undistributed long-term capital gains -- net ................ --
------------
Total undistributed earnings -- net ......................... 1,573,362
Capital loss carryforward ................................... (1,019,340)*
Unrealized gains -- net ..................................... 9,650,729**
------------
Total accumulated earnings -- net ........................... $ 10,204,751
============
* On November 30, 2007, the Fund had a net capital loss carryforward of
$1,019,340, of which $779,784 expires in 2008 and $239,556 expires in
2012. This amount will be available to offset like amounts of any future
taxable gains.
** The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on straddles, the
difference between book and tax amortization methods for premiums and
discounts on fixed income securities and the difference between the book
and tax treatment of residual interests in tender option bonds.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007 15
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of BlackRock MuniYield New Jersey
Fund, Inc.:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of BlackRock MuniYield New Jersey Fund, Inc. (the
"Fund") as of November 30, 2007, and the related statement of operations for the
year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of November 30, 2007, by correspondence with the
custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
BlackRock MuniYield New Jersey Fund, Inc. as of November 30, 2007, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and its financial highlights for
each of the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
January 23, 2008
Important Tax Information (Unaudited)
All of the net investment income distributions paid by BlackRock MuniYield New
Jersey Fund, Inc. during the taxable year ended November 30, 2007 qualify as
tax-exempt interest dividends for federal income tax purposes.
16 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007
Automatic Dividend Reinvestment Plan
How the Plan Works -- The Fund offers a Dividend Reinvestment Plan (the "Plan")
under which income and capital gains dividends paid by the Fund are
automatically reinvested in additional shares of Common Stock of the Fund. The
Plan is administered on behalf of the shareholders by The Bank of New York
Mellon (the "Plan Agent"). Under the Plan, whenever the Fund declares a
dividend, participants in the Plan will receive the equivalent in shares of
Common Stock of the Fund. The Plan Agent will acquire the shares for the
participant's account either (i) through receipt of additional unissued but
authorized shares of the Fund ("newly issued shares") or (ii) by purchase of
outstanding shares of Common Stock on the open market on the New York Stock
Exchange or elsewhere. If, on the dividend payment date, the Fund's net asset
value per share is equal to or less than the market price per share plus
estimated brokerage commissions (a condition often referred to as a "market
premium"), the Plan Agent will invest the dividend amount in newly issued
shares. If the Fund's net asset value per share is greater than the market price
per share (a condition often referred to as a "market discount"), the Plan Agent
will invest the dividend amount by purchasing on the open market additional
shares. If the Plan Agent is unable to invest the full dividend amount in open
market purchases, or if the market discount shifts to a market premium during
the purchase period, the Plan Agent will invest any uninvested portion in newly
issued shares. The shares acquired are credited to each shareholder's account.
The amount credited is determined by dividing the dollar amount of the dividend
by either (i) when the shares are newly issued, the net asset value per share on
the date the shares are issued or (ii) when shares are purchased in the open
market, the average purchase price per share.
Participation in the Plan -- Participation in the Plan is automatic, that is, a
shareholder is automatically enrolled in the Plan when he or she purchases
shares of Common Stock of the Fund unless the shareholder specifically elects
not to participate in the Plan. Shareholders who elect not to participate will
receive all dividend distributions in cash. Shareholders who do not wish to
participate in the Plan, must advise the Plan Agent in writing (at the address
set forth below) that they elect not to participate in the Plan. Participation
in the Plan is completely voluntary and may be terminated or resumed at any time
without penalty by writing to the Plan Agent.
Benefits of the Plan -- The Plan provides an easy, convenient way for
shareholders to make additional, regular investments in the Fund. The Plan
promotes a long-term strategy of investing at a lower cost. All shares acquired
pursuant to the Plan receive voting rights. In addition, if the market price
plus commissions of the Fund's shares is above the net asset value, participants
in the Plan will receive shares of the Fund for less than they could otherwise
purchase them and with a cash value greater than the value of any cash
distribution they would have received. However, there may not be enough shares
available in the market to make distributions in shares at prices below the net
asset value. Also, since the Fund does not redeem shares, the price on resale
may be more or less than the net asset value.
Plan Fees -- There are no enrollment fees or brokerage fees for participating in
the Plan. The Plan Agent's service fees for handling the reinvestment of
distributions are paid for by the Fund. However, brokerage commissions may be
incurred when the Fund purchases shares on the open market and shareholders will
pay a pro rata share of any such commissions.
Tax Implications -- The automatic reinvestment of dividends and distributions
will not relieve participants of any federal, state or local income tax that may
be payable (or required to be withheld) on such dividends. Therefore, income and
capital gains may still be realized even though shareholders do not receive
cash. Participation in the Plan generally will not affect the tax-exempt status
of exempt interest dividends paid by the Fund. If, when the Fund's shares are
trading at a market premium, the Fund issues shares pursuant to the Plan that
have a greater fair market value than the amount of cash reinvested, it is
possible that all or a portion of the discount from the market value (which may
not exceed 5% of the fair market value of the Fund's shares) could be viewed as
a taxable distribution. If the discount is viewed as a taxable distribution, it
is also possible that the taxable character of this discount would be allocable
to all the shareholders, including shareholders who do not participate in the
Plan. Thus, shareholders who do not participate in the Plan might be required to
report as ordinary income a portion of their distributions equal to their
allocable share of the discount.
Contact Information -- All correspondence concerning the Plan, including any
questions about the Plan, should be directed to the Plan Agent at The Bank of
New York Mellon, One Wall Street, New York, NY 10286, Telephone: 800-432-8224.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007 17
Officers and Directors
Number of
BlackRock-
Advised Funds
Position(s) Length of and Portfolios
Name, Address Held with Time Currently Public
and Year of Birth Fund Served Principal Occupation(s) During Past Five Years Overseen Directorships
====================================================================================================================================
Non-Interested Directors*
------------------------------------------------------------------------------------------------------------------------------------
G. Nicholas Beckwith, III Director 2007 to Chairman and Chief Executive Officer, Arch 111 Funds None
40 East 52nd Street present Street Management, LLC from 2005 to present; 108 Portfolios
New York, NY 10022 Chairman and CEO, Beckwith Blawnox Property
1945 LLC from 2005 to present; Chairman and CEO,
Beckwith Clearfield Property LLC from 2005
to present; Chairman and CEO, Beckwith
Delmont Property LLC from 2005 to present;
Chairman and CEO, Beckwith Erie Property LLC
from 2005 to present; Chairman, Penn West
Industrial Trucks LLC from 2005 to present;
Chairman, President and Chief Executive
Officer, Beckwith Machinery Company from
1969 to 2005; Chairman of the Board of
Directors, University of Pittsburgh Medical
Center since 2002; Board of Directors, Shady
Side Hospital Foundation from 1977 to
present; Beckwith Institute for Innovation
In Patient Care from 1991 to present;
Member, Advisory Council on Biology and
Medicine, Brown University from 2002 to
present; Trustee, Claude Worthington Benedum
Foundation from 1977 to present; Board of
Trustees, Chatham College, University of
Pittsburgh from 2003 to present; Emeritus
Trustee, Shady Side Academy from 1977 to
present.
------------------------------------------------------------------------------------------------------------------------------------
Richard E. Cavanagh Director 2007 to Trustee, Aircraft Finance Trust from 1999 to 112 Funds Arch Chemical
40 East 52nd Street and present present; Director, The Guardian Life 109 Portfolios (chemicals and
New York, NY 10022 Chairman Insurance Company of America from 1998 to allied products)
1946 of the present; Chairman and Trustee, Educational
Board of Testing Service from 1997 to present;
Directors Director, the Fremont Group from 1996 to
present; President and Chief Executive
Officer of The Conferences Board, Inc. (a
leading global business research
organization) from 1995 to 2007.
------------------------------------------------------------------------------------------------------------------------------------
Kent Dixon Director 2007 to Consultant/Investor since 1988. 112 Funds None
40 East 52nd Street and Member present 109 Portfolios
New York, NY 10022 of the Audit
1937 Committee
------------------------------------------------------------------------------------------------------------------------------------
Frank J. Fabozzi Director 2007 to Consultant/Editor of The Journal of 112 Funds None
40 East 52nd Street and Member present Portfolio Management; Yale University, 109 Portfolios
New York, NY 10022 of the Audit School of Management, Professor in the
1948 Committee Practice of Finance and Becton Fellow from
2006 to present; Adjunct Professor of
Finance and Becton Fellow from 2005 to 2006;
Professor in the practice of Finance from
2003 to 2005; Adjunct Professor of Finance
from 1994 to 2003; Author and editor.
------------------------------------------------------------------------------------------------------------------------------------
Kathleen F. Feldstein Director 2007 to President of Economic Studies, Inc., (a 112 Funds The McClatchy
40 East 52nd Street present Belmont MA-based private economic consulting 109 Portfolios Company
New York, NY 10022 firm) since 1987; Chair, Board of Trustees,
1941 McLean Hospital since 2000; Member of the
Board of Partners Community Healthcare, Inc.
from 2005 to present; Member of the Board of
Partners HealthCare and Sherrill House from
1990 to present; Trustee, Museum of Fine
Arts, Boston from 1992 to present and a
Member of the Visiting Committee to the
Harvard University Art Museum from 2003 to
present; Trustee, The Committee for Economic
Development (a research organization of
business leaders and educators) from 1990 to
present; Member of the Advisory Board to the
International School of Business, Brandeis
University from 2002 to present.
------------------------------------------------------------------------------------------------------------------------------------
James T. Flynn Director 2007 to Chief Financial Officer of JP Morgan & Co., 111 Funds None
40 East 52nd Street and Member present Inc. from 1990 to 1995 and an employee of JP 108 Portfolios
New York, NY 10022 of the Audit Morgan in various capacities from 1967 to
1939 Committee 1995.
---------------------------------------------------------------------------------------------------------
* Directors serve until their resignation, removal or death, or until December 31 of the year in
which they turn 72.
------------------------------------------------------------------------------------------------------------------------------------
18 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007
Officers and Directors (continued)
Number of
BlackRock-
Advised Funds
Position(s) Length of and Portfolios
Name, Address Held with Time Currently Public
and Year of Birth Fund Served Principal Occupation(s) During Past Five Years Overseen Directorships
====================================================================================================================================
Non-Interested Directors* (concluded)
------------------------------------------------------------------------------------------------------------------------------------
Jerrold B. Harris Director 2007 to President and Chief Executive Officer, VWR 111 Funds BlackRock-Kelso
40 East 52nd Street present Scientific Products Corporation from 1989 to 108 Portfolios Capital Corp.
New York, NY 10022 1999. Trustee, Ursinus College (education)
1942 from 2000 to the present; Director, Troemner
LLC (scientific equipment) from 2000 to
present.
------------------------------------------------------------------------------------------------------------------------------------
R. Glenn Hubbard Director 2007 to Dean of Columbia Business School since 2004; 112 Funds ADP (data and
40 East 52nd Street present Columbia faculty member since 1988; 109 Portfolios information
New York, NY 10022 Co-director of Columbia Business School's services);
1958 Entrepreneurship Program 1997 to 2004; KKR Financial
Visiting Professor at the John F. Kennedy Corporation; Duke
School of Government at Harvard University Realty;
and the Harvard Business School from 1985, Metropolitan Life
as well as the University of Chicago from Insurance Company
1994; Deputy Assistant Secretary of the U.S.
Treasury Department for Tax Policy from 1991
to 1993; Chairman of the U.S. Council of
Economic Advisers under the President of the
United States from 2001 to 2003.
------------------------------------------------------------------------------------------------------------------------------------
W. Carl Kester Director 2007 to Deputy Dean for Academic Affairs, Harvard 111 Funds None
40 East 52nd Street and Member present Business School since 2006; The Mizuho 108 Portfolios
New York, NY 10022 of the Audit Financial Group, Professor of Finance,
1951 Committee Harvard Business School since 2006; Unit
Head, Finance, Harvard Business School, from
2005 to 2006; Senior Associate Dean and
Chairman of the MBA Program of Harvard
Business School, 1999 to 2005; Member of the
faculty of Harvard Business School since
1981; Independent Consultant since 1978.
------------------------------------------------------------------------------------------------------------------------------------
Karen P. Robards Director and 2007 to Partner of Robards & Company, LLC. 111 Funds AtriCure, Inc.
40 East 52nd Street Chairperson present (financial advisory firm) since 1987; 108 Portfolios (medical devices);
New York, NY 10022 of the Audit Formerly an investment banker with Morgan Care Investment
1950 Committee Stanley for more than ten years; Director of Trust, Inc.
Enable Medical Corp. from 1996 to 2005;
Director of AtriCure, Inc. since 2000;
Director of Care Investment Trust, Inc. (a
healthcare REIT) since 2007; Co-founder and
Director of the Cooke Center for Learning
and Development (a not-for-profit
organization) since 1987.
------------------------------------------------------------------------------------------------------------------------------------
Robert S. Salomon, Jr. Director 2002 to Principal of STI Management (investment 111 Funds None
40 East 52nd Street and Member present adviser) from 1994 to 2005; Chairman and CEO 108 Portfolios
New York, NY 10022 of the Audit of Salomon Brothers Asset Management Inc.
1936 Committee from 1992 to 1995; Chairman of Salomon
Brothers Equity Mutual Funds from 1992 to
1995; regular columnist with Forbes Magazine
from 1992 to 2002; Director of Stock
Research and U.S. Equity Strategist at
Salomon Brothers Inc. from 1975 to 1991;
Trustee, Commonfund from 1980 to 2001.
---------------------------------------------------------------------------------------------------------
* Directors serve until their resignation, removal or death, or until December 31 of the year in
which they turn 72.
------------------------------------------------------------------------------------------------------------------------------------
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007 19
Officers and Directors (continued)
Number of
BlackRock-
Advised Funds
Position(s) Length of and Portfolios
Name, Address Held with Time Currently Public
and Year of Birth Fund Served Principal Occupation(s) During Past Five Years Overseen Directorships
====================================================================================================================================
Interested Directors*
------------------------------------------------------------------------------------------------------------------------------------
Richard S. Davis Director 2007 to Managing Director, BlackRock, Inc. since 184 Funds None
40 East 52nd Street present 2005; Chief Executive Officer, State Street 289 Portfolios
New York, NY 10022 Research & Management Company from 2000 to
1945 2005; Chairman of the Board of Trustees,
State Street Research mutual funds ("SSR
Funds") from 2000 to 2005; Senior Vice
President, Metropolitan Life Insurance
Company from 1999 to 2000; Chairman, SSR
Realty from 2000 to 2004.
------------------------------------------------------------------------------------------------------------------------------------
Henry Gabbay Director 2007 to Consultant, BlackRock since 2007; Managing 183 Funds None
40 East 52nd Street present Director, BlackRock, Inc. from 1989 to June, 288 Portfolios
New York, NY 10022 2007; Chief Administrative Officer,
1947 BlackRock Advisors, LLC from 1998 to 2007;
President of BlackRock Funds and BlackRock
Bond Allocation Target Shares from 2005 to
2007; Treasurer of certain closed-end funds
in the Fund complex from 1989 to 2006.
---------------------------------------------------------------------------------------------------------
* Messrs. Davis and Gabbay are both "interested persons," as defined in the Investment Company Act
of 1940, of the Fund based on their positions with BlackRock, Inc. and its affiliates. Directors
serve until their resignation, removal or death, or until December 31 of the year in which they
turn 72.
------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
Advisory Board Member
------------------------------------------------------------------------------------------------------------------------------------
Roscoe S. Suddarth* Member 2007 President, Middle East Institute, from 1995 111 Funds None
40 East 52nd Street of the to 2001; Foreign Service Officer, United 108 Portfolios
New York, NY 10022 Advisory States Foreign Service, from 1961 to 1995
1935 Board and Career Minister from 1989 to 1995;
Deputy Inspector General, U.S. Department of
State, from 1991 to 1994; U.S. Ambassador to
the Hashemite Kingdom of Jordan from 1987 to
1990.
---------------------------------------------------------------------------------------------------------
* Roscoe Suddarth resigned from the Advisory Board of the Fund, effective December 31, 2007.
20 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007
Officers and Directors (concluded)
Position(s) Length of
Name, Address Held with Time
and Year of Birth Fund Served Principal Occupation(s) During Past Five Years
====================================================================================================================================
Fund Officers*
------------------------------------------------------------------------------------------------------------------------------------
Donald C. Burke Fund 2007 to Managing Director of BlackRock, Inc. since 2006; Formerly Managing Director of
40 East 52nd Street President present Merrill Lynch Investment ("MLIM") and Fund Asset Management, L.P. ("FAM") in 2006;
New York, NY 10022 and Chief First Vice President thereof from 1997 to 2005; Treasurer thereof from 1999 to
1960 Executive 2006 and Vice President thereof from 1990 to 1997.
Officer
------------------------------------------------------------------------------------------------------------------------------------
Anne F. Ackerley Vice 2007 to Managing Director of BlackRock, Inc. since 2000 and First Vice President and Chief
40 East 52nd Street President present Operating Officer of Mergers and Acquisitions Group from 1997 to 2000; First Vice
New York, NY 10022 President and Chief Operating Officer of Public Finance Group thereof from 1995 to
1962 1997; Formerly First Vice President of Emerging Markets Fixed Income Research of
Merrill Lynch & Co., Inc. from 1994 to 1995.
------------------------------------------------------------------------------------------------------------------------------------
Howard Surloff Secretary 2007 to Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at
40 East 52nd Street present BlackRock, Inc. since 2006; Formerly General Counsel (U.S.) of Goldman Sachs Asset
New York, NY 10022 Management, L.P. from 1993 to 2006.
1965
------------------------------------------------------------------------------------------------------------------------------------
Brian P. Kindelan Chief 2007 to Chief Compliance Officer of the Funds since 2007; Anti-Money Laundering Officer of
40 East 52nd Street Compliance present BlackRock, Inc. since 2007; Managing Director and Senior Counsel thereof since
New York, NY 10022 Officer Inc. January 2005; Director and Senior Counsel of BlackRock Advisors, Inc. from 2001 to
1959 2004 and Vice President and Senior Counsel, thereof, from 1998 to 2000; Senior
Counsel of PNC Bank Corp. from 1995 to 1998.
------------------------------------------------------------------------------------------------------------------------------------
Neal J. Andrews Chief 2007 to Managing Director of Administration and Operations Group, BlackRock, Inc., since
40 East 52nd Street Financial present 2006; Formerly Senior Vice President and Line of Business Head of Fund Accounting
New York, NY 10022 Officer and Administration at PFPC Inc. from 1992 to 2006.
1966
------------------------------------------------------------------------------------------------------------------------------------
Jay M. Fife Treasurer 2007 to Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Formerly
40 East 52nd Street present Assistant Treasurer of the MLIM/FAM advised funds from 2005 to 2006; Director of
New York, NY 10022 MLIM Fund Services Group from 2001 to 2006.
1970
---------------------------------------------------------------------------------------------------------
* Officers of the Fund serve at the pleasure of the Board of Directors.
------------------------------------------------------------------------------------------------------------------------------------
Custodian
The Bank of New York Mellon
New York, NY 10286
Transfer Agents
Common Stock:
Bank of New York Mellon
New York, NY 10286
Preferred Stock:
The Bank of New York Mellon
New York, NY 10286
Accounting Agent
State Street Bank and
Trust Company
Princeton, NJ 08540
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540
Legal Counsel
Skadden, Arps, Slate,
Meagher & Flom LLP
New York, NY 10036
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007 21
Additional Information
Proxy Results
During the six-month period ended November 30, 2007, the Common Stock and
Auction Market Preferred Stock (Series A-C) shareholders of BlackRock MuniYield
New Jersey Fund, Inc. voted on the following proposal, which was approved at an
annual shareholders' meeting on August 16, 2007. This proposal was part of the
reorganization of the Fund's Board of Directors that took effect on November 1,
2007. A description of the proposal and number of shares voted are as follows:
--------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
--------------------------------------------------------------------------------------------------
To elect the Fund's Directors: G. Nicholas Beckwith, III 13,124,837 317,062
Richard E. Cavanagh 13,124,361 317,538
Richard S. Davis 13,122,750 319,149
Kent Dixon 13,119,370 322,529
Kathleen F. Feldstein 13,119,311 322,588
James T. Flynn 13,128,337 313,562
Henry Gabbay 13,124,377 317,522
Jerrold B. Harris 13,124,837 317,062
R. Glenn Hubbard 13,115,318 326,581
Karen P. Robards 13,127,828 314,071
Robert S. Salomon, Jr. 13,123,942 317,957
--------------------------------------------------------------------------------------------------
During the six-month period ended November 30, 2007, the Auction Market
Preferred Stock shareholders (Series A-C) of BlackRock MuniYield New Jersey
Fund, Inc. voted on the following proposal, which was approved at an annual
shareholders' meeting on August 16, 2007. This proposal was part of the
reorganization of the Fund's Board of Directors that took effect on November 1,
2007. A description of the proposal and number of shares voted are as follows:
--------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
--------------------------------------------------------------------------------------------------
To elect the Fund's Directors: Frank J. Fabozzi 4,419 2
W. Carl Kester 4,418 3
--------------------------------------------------------------------------------------------------
Fund Certification
In November 2007, the Fund filed its Chief Executive Officer Certification for
the prior year with the New York Stock Exchange pursuant to Section 303A.12(a)
of the New York Stock Exchange Corporate Governance Listing Standards.
The Fund's Chief Executive Officer and Chief Financial Officer Certifications
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 were filed with the
Fund's Form N-CSR and are available on the Securities and Exchange Commission's
Web site at http://www.sec.gov.
22 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007
Additional Information (concluded)
Dividend Policy
The Fund's dividend policy is to distribute all or a portion of its net
investment income to its shareholders on a monthly basis. In order to provide
shareholders with a more stable level of dividend distributions, the Fund may at
times pay out less than the entire amount of net investment income earned in any
particular month and may at times in any month pay out such accumulated but
undistributed income in addition to net investment income earned in that month.
As a result, the dividends paid by the Fund for any particular month may be more
or less than the amount of net investment income earned by the Fund during such
month. The Fund's current accumulated but undistributed net investment income,
if any, is disclosed in the Statement of Assets and Liabilities, which comprises
part of the financial information included in this report.
Availability of Quarterly Schedule of Investments
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission ("SEC") for the first and third quarters of each fiscal
year on Form N-Q. The Fund's Forms N-Q are available on the SEC's Web site at
http://www.sec.gov. The Fund's Forms N-Q may also be reviewed and copied at the
SEC's Public Reference Room in Washington, DC. Information on the operation of
the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Electronic Delivery
Electronic copies of most financial reports are available on the Fund's Web
site. Shareholders can sign up for e-mail notifications of quarterly statements
and annual and semi-annual reports by enrolling in the Fund's electronic
delivery program.
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that not all
investment advisers, banks or brokerages may offer this service.
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former fund
investors and individual clients (collectively, "Clients") and to safeguarding
their non-public personal information. The following information is provided to
help you understand what personal information BlackRock collects, how we protect
that information and why in certain cases we share such information with select
parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you
from different sources, including the following: (i) information we receive from
you or, if applicable, your financial intermediary, on applications, forms or
other documents; (ii) information about your transactions with us, our
affiliates, or others; (iii) information we receive from a consumer reporting
agency; and (iv) from visits to our Web sites.
BlackRock does not sell or disclose to non-affiliated third parties any
non-public personal information about its Clients, except as permitted by law or
as is necessary to respond to regulatory requests or to service Client accounts.
These non-affiliated third parties are required to protect the confidentiality
and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that may
be of interest to you. In addition, BlackRock restricts access to non-public
personal information about its Clients to those BlackRock employees with a
legitimate business need for the information. BlackRock maintains physical,
electronic and procedural safeguards that are designed to protect the non-public
personal information of its Clients, including procedures relating to the proper
storage and disposal of such information.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. NOVEMBER 30, 2007 23
This report, including the financial information herein, is transmitted to
shareholders of BlackRock MuniYield New Jersey Fund, Inc. for their information.
It is not a prospectus. Past performance results shown in this report should not
be considered a representation of future performance. The Fund has leveraged its
Common Stock and intends to remain leveraged by issuing Preferred Stock to
provide the Common Stock shareholders with a potentially higher rate of return.
Leverage creates risks for Common Stock shareholders, including the likelihood
of greater volatility of net asset value and market price of shares of the
Common Stock, and the risk that fluctuations in the short-term dividend rates of
the Preferred Stock may affect the yield to Common Stock shareholders.
Statements and other information herein are as dated and are subject to change.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free 1-800-441-7762; (2) at
www.blackrock.com; and (3) on the Securities and Exchange Commission's Web site
at http://www.sec.gov. Information about how the Fund voted proxies relating to
securities held in the Fund's portfolio during the most recent 12-month period
ended June 30 is available (1) at www.blackrock.com and (2) on the Securities
and Exchange Commission's Web site at http://www.sec.gov.
BlackRock MuniYield New Jersey Fund, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
BLACKROCK
#16381-11/07
Item 2 - Code of Ethics - The registrant (or the "Fund") has adopted a code
of ethics, as of the end of the period covered by this report,
applicable to the registrant's principal executive officer,
principal financial officer and principal accounting officer, or
persons performing similar functions. During the period covered by
this report, there have been no amendments to or waivers granted
under the code of ethics. A copy of the code of ethics is available
without charge at www.blackrock.com.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors or trustees, as applicable (the "board of directors") has
determined that (i) the registrant has the following audit committee
financial experts serving on its audit committee and (ii) each audit
committee financial expert is independent:
Joe Grills (term ended effective November 1, 2007)
Robert S. Salomon, Jr.
Kent Dixon (term began effective November 1, 2007)
Frank J. Fabozzi (term began effective November 1, 2007)
W. Carl Kester (term began effective November 1, 2007)
James T. Flynn (term began effective November 1, 2007)
Karen P. Robards (term began effective November 1, 2007)
The registrant's board of directors has determined that W. Carl
Kester and Karen P. Robards qualify as financial experts pursuant to
Item 3(c)(4) of Form N-CSR.
Prof. Kester has a thorough understanding of generally accepted
accounting principles, financial statements and internal control
over financial reporting as well as audit committee functions. Prof.
Kester has been involved in providing valuation and other financial
consulting services to corporate clients since 1978. Prof. Kester's
financial consulting services present a breadth and level of
complexity of accounting issues that are generally comparable to the
breadth and complexity of issues that can reasonably be expected to
be raised by the registrant's financial statements.
Ms. Robards has a thorough understanding of generally accepted
accounting principles, financial statements and internal control
over financial reporting as well as audit committee functions. Ms.
Robards has been President of Robards & Company, a financial
advisory firm, since 1987. Ms. Robards was formerly an investment
banker for more than 10 years where she was responsible for
evaluating and assessing the performance of companies based on their
financial results. Ms. Robards has over 30 years of experience
analyzing financial statements. She also is the member of the Audit
Committees of one publicly held company and a non-profit
organization.
Under applicable securities laws, a person determined to be an audit
committee financial expert will not be deemed an "expert" for any
purpose, including without limitation for the purposes of Section 11
of the Securities Act of 1933, as a result of being designated or
identified as an audit committee financial expert. The designation
or identification as an audit committee financial expert does not
impose on such person any duties, obligations, or liabilities
greater than the duties, obligations, and liabilities imposed on
such person as a member of the audit committee and board of
directors in the absence of such designation or identification.
Item 4 - Principal Accountant Fees and Services
----------------------------------------------------------------------------------------------------------------------------------
(a) Audit Fees (b) Audit-Related Fees(1) (c) Tax Fees(2) (d) All Other Fees(3)
----------------------------------------------------------------------------------------------------------------------------------
Current Previous Current Previous Current Previous Current Previous
Fiscal Year Fiscal Fiscal Year Fiscal Fiscal Year Fiscal Fiscal Year Fiscal
Entity Name End Year End End Year End End Year End End Year End
----------------------------------------------------------------------------------------------------------------------------------
BlackRock MuniYield
New Jersey Fund,
Inc. $52,850 $28,000 $3,500 $3,500 $6,100 $6,000 $1,042 $0
----------------------------------------------------------------------------------------------------------------------------------
1 The nature of the services include assurance and related services
reasonably related to the performance of the audit of financial statements
not included in Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax
planning.
3 The nature of the services include a review of compliance procedures and
attestation thereto.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant's audit committee (the "Committee") has adopted
policies and procedures with regard to the pre-approval of services.
Audit, audit-related and tax compliance services provided to the
registrant on an annual basis require specific pre-approval by the
Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to
the registrant's affiliated service providers that relate directly
to the operations and the financial reporting of the registrant.
Certain of these non-audit services that the Committee believes are
a) consistent with the SEC's auditor independence rules and b)
routine and recurring services that will not impair the independence
of the independent accountants may be approved by the Committee
without consideration on a specific case-by-case basis ("general
pre-approval"). However, such services will only be deemed
pre-approved provided that any individual project does not exceed
$5,000 attributable to the registrant or $50,000 for all of the
registrants the Committee oversees. Any proposed services exceeding
the pre-approved cost levels will require specific pre-approval by
the Committee, as will any other services not subject to general
pre-approval (e.g., unanticipated but permissible services). The
Committee is informed of each service approved subject to general
pre-approval at the next regularly scheduled in-person board
meeting.
(e)(2) None of the services described in each of Items 4(b) through
(d) were approved by the audit committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) Affiliates' Aggregate Non-Audit Fees:
--------------------------------------------------------------------
Current Fiscal Previous Fiscal
Entity Name Year End Year End
--------------------------------------------------------------------
BlackRock MuniYield New
Jersey Fund, Inc. $295,142 $3,147,617
--------------------------------------------------------------------
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser (not including any non-affiliated
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant's investment
adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services
to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $284,500, 0%
Item 5 - Audit Committee of Listed Registrants - The following individuals
are members of the registrant's separately-designated standing audit
committee established in accordance with Section 3(a)(58)(A) of the
Exchange Act (15 U.S.C. 78c(a)(58)(A)):
James H. Bodurtha (term ended effective November 1, 2007)
Kenneth A. Froot (term ended effective November 1, 2007)
Joe Grills (term ended effective November 1, 2007)
Herbert I. London (term ended effective November 1, 2007)
Roberta Cooper Ramo (term ended effective November 1, 2007)
Robert S. Salomon, Jr.
Kent Dixon (term began effective November 1, 2007)
Frank J. Fabozzi (term began effective November 1, 2007)
W. Carl Kester (term began effective November 1, 2007)
James T. Flynn (term began effective November 1, 2007)
Karen P. Robards (term began effective November 1, 2007)
Item 6 - Schedule of Investments - The registrant's Schedule of Investments
is included as part of the Report to Stockholders filed under Item 1
of this form.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - The registrant has delegated the
voting of proxies relating to Fund portfolio securities to its
investment adviser, BlackRock Advisors, LLC and its sub-adviser, as
applicable. The Proxy Voting Policies and Procedures of the adviser
and sub-adviser are attached hereto as Exhibit 99.PROXYPOL.
Information about how the Fund voted proxies relating to securities
held in the Fund's portfolio during the most recent 12 month period
ended June 30 is available without charge (1) at www.blackrock.com
and (2) on the Commission's web site at http://www.sec.gov.
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
as of November 30, 2007.
(a)(1) BlackRock MuniYield New Jersey Fund, Inc. is managed by a
team of investment professionals comprised of Timothy T. Browse,
Vice President at BlackRock, Theodore R. Jaeckel, Jr., CFA, Managing
Director at BlackRock, and Walter O'Connor, Managing Director at
BlackRock. Each is a member of BlackRock's municipal tax-exempt
management group. Mr. Jaeckel and Mr. O'Connor are responsible for
setting the Fund's overall investment strategy and overseeing the
management of the Fund. Mr. Browse is the Fund's lead portfolio
manager and is responsible for the day-to-day management of the
Fund's portfolio and the selection of its investments. Messrs.
Jaeckel and O'Connor have been members of the Fund's management team
since 2006 and Mr. Browse has been the Fund's portfolio manager
since 2006.
Mr. Jaeckel joined BlackRock in 2006. Prior to joining BlackRock, he
was a Managing Director (Municipal Tax-Exempt Fund Management) of
Merrill Lynch Investment Managers, L.P. ("MLIM") from 2005 to 2006
and a Director of MLIM from 1997 to 2005. He has been a portfolio
manager with BlackRock or MLIM since 1991.
Mr. O'Connor joined BlackRock in 2006. Prior to joining BlackRock,
he was a Managing Director (Municipal Tax-Exempt Fund Management) of
MLIM from 2003 to 2006 and was a Director of MLIM from 1997 to 2002.
He has been a portfolio manager with BlackRock or MLIM since 1991.
Mr. Browse joined BlackRock in 2006. Prior to joining BlackRock, he
was a Vice President (Municipal Tax-Exempt Fund Management) of MLIM
from 2004 to 2006. He has been a portfolio manager with BlackRock or
MLIM since 2004. From 2000 to 2003, he was a Vice President,
portfolio manager and team leader of the Municipal Investment Team
with Lord Abbott & Co.
(a)(2)As of November 30, 2007:
-----------------------------------------------------------------------------------------------------------------------
(iii) Number of Other Accounts and
(ii) Number of Other Accounts Managed Assets for Which Advisory Fee is
and Assets by Account Type Performance-Based
-----------------------------------------------------------------------------------------------------------------------
Other Other Other Other
(i) Name of Registered Pooled Registered Pooled
Portfolio Investment Investment Other Investment Investment Other
Manager Companies Vehicles Accounts Companies Vehicles Accounts
-----------------------------------------------------------------------------------------------------------------------
Timothy T.
Browse 15 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------
$ 3,923,403,516 $0 $0 $0 $0 $0
-----------------------------------------------------------------------------------------------------------------------
Walter O'Connor 80 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------------------
$28,527,653,672 $0 $0 $0 $0 $0
-----------------------------------------------------------------------------------------------------------------------
Theodore R.
Jaeckel, Jr. 80 1 0 0 1 0
-----------------------------------------------------------------------------------------------------------------------
$28,527,653,672 $23,342,748 $0 $0 $23,342,748 $0
-----------------------------------------------------------------------------------------------------------------------
(iv) Potential Material Conflicts of Interest
BlackRock, Inc. and its affiliates (collectively, herein
"BlackRock") has built a professional working environment, firm-wide
compliance culture and compliance procedures and systems designed to
protect against potential incentives that may favor one account over
another. BlackRock has adopted policies and procedures that address
the allocation of investment opportunities, execution of portfolio
transactions, personal trading by employees and other potential
conflicts of interest that are designed to ensure that all client
accounts are treated equitably over time. Nevertheless, BlackRock
furnishes investment management and advisory services to numerous
clients in addition to the Fund, and BlackRock may, consistent with
applicable law, make investment recommendations to other clients or
accounts (including accounts which are hedge funds or have
performance or higher fees paid to BlackRock, or in which portfolio
managers have a personal interest in the receipt of such fees),
which may be the same as or different from those made to the Fund.
In addition, BlackRock, its affiliates and any officer, director,
stockholder or employee may or may not have an interest in the
securities whose purchase and sale BlackRock recommends to the Fund.
BlackRock, or any of its affiliates, or any officer, director,
stockholder, employee or any member of their families may take
different actions than those recommended to the Fund by BlackRock
with respect to the same securities. Moreover, BlackRock may refrain
from rendering any advice or services concerning securities of
companies of which any of BlackRock's (or its affiliates') officers,
directors or employees are directors or officers, or companies as to
which BlackRock or any of its affiliates or the officers, directors
and employees of any of them has any substantial economic interest
or possesses material non-public information. Each portfolio manager
also may manage accounts whose investment strategies may at times be
opposed to the strategy utilized for the Fund. In this connection,
it should be noted that certain portfolio managers currently manage
certain accounts that are subject to performance fees. In addition,
certain portfolio managers assist in managing certain hedge funds
and may be entitled to receive a portion of any incentive fees
earned on such funds and a portion of such incentive fees may be
voluntarily or involuntarily deferred. Additional portfolio managers
may in the future manage other such accounts or funds and may be
entitled to receive incentive fees.
As a fiduciary, BlackRock owes a duty of loyalty to its clients and
must treat each client fairly. When BlackRock purchases or sells
securities for more than one account, the trades must be allocated
in a manner consistent with its fiduciary duties. BlackRock attempts
to allocate investments in a fair and equitable manner among client
accounts, with no account receiving preferential treatment. To this
end, BlackRock has adopted a policy that is intended to ensure that
investment opportunities are allocated fairly and equitably among
client accounts over time. This policy also seeks to achieve
reasonable efficiency in client transactions and provide BlackRock
with sufficient flexibility to allocate investments in a manner that
is consistent with the particular investment discipline and client
base.
(a)(3) As of November 30, 2007:
Portfolio Manager Compensation
The portfolio manager compensation program of BlackRock is
critical to BlackRock's ability to attract and retain the most
talented asset management professionals. This program ensures that
compensation is aligned with maximizing investment returns and it
provides a competitive pay opportunity for competitive performance.
Compensation Program
The elements of total compensation for BlackRock portfolio
managers are: fixed base salary, annual performance-based cash and
stock compensation (cash and stock bonus) and other benefits.
BlackRock has balanced these components of pay to provide portfolio
managers with a powerful incentive to achieve consistently superior
investment performance. By design, portfolio manager compensation
levels fluctuate -- both up and down -- with the relative investment
performance of the portfolios that they manage.
Base Salary
Under the BlackRock approach, like that of many asset
management firms, fixed base salaries represent a relatively small
portion of a portfolio manager's total compensation. This approach
serves to enhance the motivational value of the performance-based
(and therefore variable) compensation elements of the compensation
program.
Performance-Based Compensation
BlackRock believes that the best interests of investors are
served by recruiting and retaining exceptional asset management
talent and managing their compensation within a consistent and
disciplined framework that emphasizes pay for performance in the
context of an intensely competitive market for talent. To that end,
the portfolio manager incentive compensation is based on a formulaic
compensation program.
BlackRock's formulaic portfolio manager compensation program
includes: pre-tax investment performance relative to the appropriate
competitors or benchmarks over 1-, 3- and 5-year performance periods
and a measure of operational efficiency. If a portfolio manager's
tenure is less than 5 years, performance periods will reflect time
in position. Portfolio managers are compensated based on products
they manage. For these purposes, the performance of the Fund is
compared to the Lipper Closed-end New Jersey Municipal Debt Funds
classification. A smaller discretionary element of portfolio manager
compensation may include consideration of: financial results,
expense control, profit margins, strategic planning and
implementation, quality of client service, market share, corporate
reputation, capital allocation, compliance and risk control,
leadership, workforce diversity, supervision, technology and
innovation. All factors are considered collectively by BlackRock
management.
Cash Bonus
Performance-based compensation is distributed to portfolio
managers in a combination of cash and stock. Typically, the cash
bonus, when combined with base salary, represents more than 60% of
total compensation for the portfolio managers.
Stock Bonus
A portion of the dollar value of the total annual
performance-based bonus is paid in restricted shares of stock of
BlackRock, Inc. (the "Company"). Paying a portion of annual bonuses
in stock puts compensation earned by a portfolio manager for a given
year "at risk" based on the Company's ability to sustain and improve
its performance over future periods. The ultimate value of stock
bonuses is dependent on future Company stock price performance. As
such, the stock bonus aligns each portfolio manager's financial
interests with those of the Company's shareholders and encourages a
balance between short-term goals and long-term strategic objectives.
Management strongly believes that providing a significant portion of
competitive performance-based compensation in stock is in the best
interests of investors and shareholders. This approach ensures that
portfolio managers participate as shareholders in both the "downside
risk" and "upside opportunity" of the Company's performance.
Portfolio managers, therefore, have a direct incentive to protect
the Company's reputation for integrity.
Other Benefits
Portfolio managers are also eligible to participate in
broad-based plans offered generally to BlackRock employees,
including broad-based retirement, 401(k), health, and other employee
benefit plans. For example, BlackRock, Inc. has created a variety of
incentive savings plans in which BlackRock employees are eligible to
participate, including a 401(k) plan, the BlackRock Retirement
Savings Plan (RSP) and the BlackRock Employee Stock Purchase Plan
(ESPP). The employer contribution components of the RSP include a
company match equal to 50% of the first 6% of eligible pay
contributed to the plan capped at $4,000 per year, and a company
retirement contribution equal to 3% of eligible compensation, plus
an additional contribution of 2% for any year in which BlackRock has
positive net operating income. The RSP offers a range of investment
options, including registered investment companies managed by the
firm. Company contributions follow the investment direction set by
participants for their own contributions or absent, employee
investment direction, are invested into a stable value fund. The
ESPP allows for investment in BlackRock common stock at a 5%
discount on the fair market value of the stock on the purchase date.
Annual participation in the ESPP is limited to the purchase of 1,000
shares or a dollar value of $25,000. Each portfolio manager is
eligible to participate in these plans.
(a)(4) Beneficial Ownership of Securities. As of November 30, 2007,
none of Messrs. Browse, Jaeckel or O'Connor
beneficially owned any stock issued by the Fund.
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable due to no such
purchases during the period covered by this report.
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating and Governance Committee will consider
nominees to the Board recommended by shareholders when a vacancy
becomes available. Shareholders who wish to recommend a nominee
should send nominations which include biographical information and
set forth the qualifications of the proposed nominee to the
registrant's Secretary. There have been no material changes to these
procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
13a-15(b) under the Securities and Exchange Act of 1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the second fiscal quarter of the period covered
by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - See Item 2
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock MuniYield New Jersey Fund, Inc.
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield New Jersey Fund, Inc.
Date: January 16, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield New Jersey Fund, Inc.
Date: January 16, 2008
By: /s/ Neal J. Andrews
-------------------
Neal J. Andrews,
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield New Jersey Fund, Inc.
Date: January 16, 2008