UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06570
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: 11/30/2008
Date of reporting period: 12/01/2007 - 05/31/2008
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
----------------------------------------------
BlackRock MuniYield BLACKROCK
New Jersey Fund, Inc. (MYJ)
SEMI-ANNUAL REPORT
MAY 31, 2008 | (UNAUDITED)
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NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
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Table of Contents
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Page
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A Letter to Shareholders ................................................ 3
Semi-Annual Report:
Fund Summary ............................................................ 4
The Benefits and Risks of Leveraging .................................... 5
Swap Agreements ......................................................... 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
Disclosure of Investment Advisory Agreement and Subadvisory Agreement ... 17
Officers and Directors .................................................. 21
Additional Information .................................................. 21
2 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008
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A Letter to Shareholders
Dear Shareholder
For much of the reporting period, investors grappled with the repercussions of
the credit crisis that surfaced last summer, and with the effects of a weakening
economy and surging energy and food prices. These factors were offset by the
positive impact from robust export activity, strength in the non-financial
corporate sector and monetary and fiscal stimuli.
Amid the market turbulence, the Federal Reserve Board (the "Fed") initiated a
series of moves to restore liquidity and bolster financial market stability.
Since September 2007, the central bank slashed the target federal funds rate 325
basis points (3.25%), bringing the rate to 2.0% as of period-end. Also of
significance were its other policy decisions, which included extending use of
the discount window to broker-dealers and investment banks and backstopping the
rescue of ill-fated Bear Stearns. Notably, on April 30, the Fed dropped previous
references to downside growth risks and added more emphasis on inflationary
pressures, indicating the central bankers have likely concluded the current
cycle of monetary easing.
Nevertheless, the Fed's response to the financial crisis helped to ease credit
turmoil and investor anxiety. Since hitting a low point on March 17, following
the collapse of Bear Stearns, stocks appreciated 10% (through May 30). Most
international markets, which had outperformed U.S. stocks for some time, saw a
reversal in that trend, as the troubled credit situation and downward pressures
on growth fanned recession fears.
In fixed income markets, Treasury securities rallied (yields fell as prices
correspondingly rose), as a broad "flight-to-quality" theme persisted. The yield
on 10-year Treasury issues, which touched 5.30% in June 2007 (its highest level
in five years), fell to a low of 3.34% in March 2008 before rising to 4.06% by
May 31 as investors grew more risk tolerant and shifted out of Treasury issues
in favor of stocks and other high-quality fixed income sectors. Tax-exempt
issues underperformed throughout most of the reporting period, pressured by
problems among municipal bond insurers and the freeze in the market for auction
rate securities. However, the final two months saw a firmer tone in the
municipal market, as investors took advantage of unusually high yields.
On the whole, results for the major benchmark indexes generally reflected
heightened investor risk aversion:
Total Returns as of May 31, 2008 6-month 12-month
---------------------------------------------------------------------------------------------------------
U.S. equities (S&P 500 Index) (4.47%) (6.70%)
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Small cap U.S. equities (Russell 2000 Index) (1.87) (10.53)
---------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) (5.21) (2.53)
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Fixed income (Lehman Brothers U.S. Aggregate Index) 1.49 6.89
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Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) 1.44 3.87
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High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index) 1.81 (1.08)
---------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future results. Index performance shown for
illustrative purposes only.
You cannot invest directly in an index.
As you navigate today's volatile markets, we encourage you to review your
investment goals with your financial professional and to make portfolio changes,
as needed. For more up-to-date commentary on the economy and financial markets,
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
THIS PAGE NOT PART OF YOUR FUND REPORT
3
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Fund Summary as of May 31, 2008
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Investment Objective
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BlackRock MuniYield New Jersey Fund, Inc. (MYJ) (the "Fund") 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.
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Performance
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For the six months ended May 31, 2008, the Fund returned 7.36% based on
market price and (0.02%) based on net asset value ("NAV"). For the same
period, the closed-end Lipper New Jersey Municipal Debt Funds category
posted an average return of (1.23%) on a NAV basis. All returns reflect
reinvestment of dividends. The Fund's outperformance resulted primarily
from its relatively neutral duration position, which proved beneficial
during a period of rising tax-exempt interest rates. A generally high
credit quality profile also benefited comparative results, as credit
spreads remained wide.
The views expressed reflect the opinions of BlackRock as of the date
of this report and are subject to change based on changes in market,
economic or other conditions. These views are not intended to be a
forecast of future events and are no guarantee of future results.
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Fund Information
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Symbol on New York Stock Exchange ................................ MYJ
Initial Offering Date ............................................ May 1, 1992
Yield on Closing Market Price as of May 31, 2008 ($14.30)(1) ..... 4.87%
Tax Equivalent Yield(2) .......................................... 7.49%
Current Monthly Distribution per share of Common Stock(3) ........ $0.058
Current Annualized Distribution per share of Common Stock(3) ..... $0.696
Leverage as of May 31, 2008(4) ................................... 39%
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(1) 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.
(2) Tax equivalent yield assumes the maximum federal tax rate of 35%.
(3) The distribution is not constant and is subject to change.
(4) As a percentage of total managed assets, which is the total assets of the
Fund (including any assets attributable to Auction Market Preferred Stock
("Preferred Stock") and Tender Option Bond Trusts ("TOBs")) minus the sum
of accrued liabilities.
The table below summarizes the changes in the Fund's market price and net asset
value per share:
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5/31/08 11/30/07 Change High Low
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Market Price ........ $ 14.30 $ 13.66 4.69% $ 14.83 $ 12.97
Net Asset Value ..... $ 14.80 $ 15.18 (2.50%) $ 15.54 $ 13.88
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The following charts show the Fund's portfolio composition and credit quality
allocations of the Fund's long-term investments:
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Portfolio Composition
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Sector 5/31/08 11/30/07
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Education ............................................... 20% 18%
Hospital ................................................ 18 17
Transportation .......................................... 17 17
City, County, State ..................................... 12 13
Industrial & Pollution Control .......................... 7 7
Housing ................................................. 6 6
Lease Revenue ........................................... 6 6
Water & Sewer ........................................... 5 7
Tax Revenue ............................................. 4 4
Tobacco ................................................. 3 3
Power ................................................... 2 2
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Credit Quality Allocations(5)
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Credit Rating 5/31/08 11/30/07
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AAA/Aaa ................................................. 53% 60%
AA/Aa ................................................... 16 12
A/A ..................................................... 14 12
BBB/Baa ................................................. 13 14
BB/Ba ................................................... 1 1
Not Rated ............................................... 3 1
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(5) Using the higher of Standard & Poor's or Moody's Investors Service
ratings.
4 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008
================================================================================
The Benefits and Risks of Leveraging
The Fund utilizes leverage to seek to enhance the yield and NAV 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 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 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 NAV 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 NAV, the market value of the fund's Common Stock may also decline.
In addition, the Fund may from time to time leverage its assets through the use
of tender option bond ("TOB") programs. In a typical TOB program, the Fund
transfers one or more municipal bonds to a TOB trust, which issues short-term
variable rate securities to third-party investors and a residual interest to the
Fund. The cash received by the TOB trust from the issuance of the short-term
securities (less transaction expenses) is paid to the Fund, which invests the
cash in additional portfolio securities. The distribution rate on the short-term
securities is reset periodically (typically every seven days) through a
remarketing of the short-term securities. Any income earned on the bonds in the
TOB trust, net of expenses incurred by the TOB trust, that is not paid to the
holders of the short-term securities is paid to the Fund. In connection with
managing the Fund's assets, the Fund's investment advisor may at any time
retrieve the bonds out of the TOB trust typically within seven days. TOB
investments generally will provide the Fund with economic benefits in periods of
declining short-term interest rates, but expose the Fund to risks during periods
of rising short-term interest rates similar to those associated with Preferred
Stock issued by the Fund, as described above. Additionally, fluctuations in the
market value of municipal securities deposited into the TOB trust may adversely
affect the Fund's NAV per share. (See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to TOB trusts.)
Under the Investment Company Act of 1940, the Fund is permitted to issue
Preferred Stock in an amount up to 50% of its total managed assets at the time
of issuance. The Fund also anticipates that its total economic leverage, which
includes Preferred Stock and TOBs, will not exceed 50% of its total managed
assets. As of May 31, 2008, the Fund had economic leverage of 39% of its total
managed assets.
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Swap Agreements
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The Fund may invest in swap agreements, which are over-the-counter contracts in
which one party agrees to make periodic payments based on the change in market
value of a specified bond, basket of bonds, or index in return for periodic
payments based on a fixed or variable interest rate or the change in market
value of a different bond, basket of bonds or index.
Swap agreements may be used to obtain exposure to a bond or market without
owning or taking physical custody of securities. Swap agreements involve the
risk that the party with whom the Fund has entered into the swap will default on
its obligation to pay the Fund and the risk that the Fund will not be able to
meet its obligations to pay the other party to the agreement.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008 5
================================================================================
Schedule of Investments May 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
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New Jersey -- 130.5%
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Burlington County, New Jersey, Bridge Commission
Revenue Bonds (Governmental Leasing Program),
5.25%, 8/15/12 (a) $ 1,000 $ 1,090,150
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Delaware River and Bay Authority Revenue Bonds,
5%, 1/01/33 (b) 1,500 1,510,320
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Delaware River Joint Toll Bridge Commission of New
Jersey and Pennsylvania, Bridge Revenue Refunding
Bonds, 5%, 7/01/21 2,010 2,064,350
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Delaware River Port Authority of Pennsylvania and
New Jersey Revenue Bonds, 6%, 1/01/19 (c) 7,860 8,214,879
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Essex County, New Jersey, Improvement Authority
Revenue Bonds, Series A, 5%, 10/01/13 (a)(d) 2,620 2,861,643
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Garden State Preservation Trust of New Jersey, Capital
Appreciation Revenue Bonds, Series B (c):
5.12%, 11/01/23 (e) 6,860 3,271,603
5.25%, 11/01/28 (e) 4,540 1,633,220
Series A, 5.80%, 11/01/22 4,300 4,839,306
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Gloucester County, New Jersey, Improvement Authority,
Solid Waste Resource Recovery, Revenue Refunding
Bonds (Waste Management Inc. Project):
AMT, Series B, 7%, 12/01/29 1,180 1,229,678
Series A, 6.85%, 12/01/29 2,000 2,079,880
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Hudson County, New Jersey, COP, Refunding, 6.25%,
12/01/16 (b) 1,500 1,760,610
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Hudson County, New Jersey, Improvement Authority,
Facility Lease Revenue Refunding Bonds (Hudson
County Lease Project), 5.375%, 10/01/24 (d) 4,500 4,547,295
--------------------------------------------------------------------------------
Jackson Township, New Jersey, School District,
GO, 5%, 4/15/12 (a)(d) 6,840 7,354,094
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Middlesex County, New Jersey, Improvement Authority,
County-Guaranteed Revenue Bonds (Golf
Course Projects):
5.25%, 6/01/22 1,455 1,558,058
5%, 6/01/29 3,050 3,140,768
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Middlesex County, New Jersey, Improvement Authority,
Senior Revenue Bonds (Heldrich Center
Hotel/Conference Project), Series A, 5%, 1/01/20 970 881,468
--------------------------------------------------------------------------------
Middlesex County, New Jersey, Pollution Control
Financing Authority, Revenue Refunding Bonds
(Amerada Hess Corporation), 6.05%, 9/15/34 1,500 1,496,895
--------------------------------------------------------------------------------
Par
Municipal Bonds (000) Value
--------------------------------------------------------------------------------
New Jersey (continued)
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Monmouth County, New Jersey, Improvement
Authority, Governmental Loan Revenue
Refunding Bonds (f):
5%, 12/01/11 (a) $ 2,085 $ 2,239,623
5%, 12/01/15 1,215 1,274,341
5%, 12/01/16 1,280 1,342,515
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Morristown, New Jersey, Parking Authority Revenue
Bonds, 4.50%, 8/01/37 (b) 585 559,336
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New Jersey EDA, Cigarette Tax Revenue Bonds,:
5.625%, 6/15/19 1,720 1,715,064
5.75%, 6/15/29 (g) 2,000 2,101,780
5.75%, 6/15/29 (h) 1,895 1,956,322
5.50%, 6/15/31 (h) 370 378,181
5.75%, 6/15/34 (h) 755 775,483
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New Jersey EDA, EDR (Masonic Charity Foundation
of New Jersey):
5.25%, 6/01/24 1,425 1,474,747
5.25%, 6/01/32 685 695,823
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New Jersey EDA, First Mortgage Revenue Bonds
(Fellowship Village Project), Series C,
5.50%, 1/01/28 1,500 1,459,620
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New Jersey EDA, First Mortgage Revenue
Refunding Bonds:
(Fellowship Village), Series A, 5.50%, 1/01/18 1,250 1,254,062
(Fellowship Village), Series A, 5.50%, 1/01/25 3,500 3,458,595
(The Winchester Gardens at Ward Homestead
Project), Series A, 5.75%, 11/01/24 2,500 2,529,250
(The Winchester Gardens at Ward Homestead
Project), Series A, 5.80%, 11/01/31 2,000 1,975,680
--------------------------------------------------------------------------------
New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A, 5.25%, 7/01/33 (b) 14,000 14,435,540
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New Jersey EDA, Revenue Bonds:
(Department of Human Services), 5%, 7/01/12 220 234,529
(Saint Barnabas Project), Series A, 6.30%,
7/01/24 (b)(e) 3,850 1,723,299
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New Jersey EDA, School Facilities Construction
Revenue Bonds:
Series O, 5.25%, 3/01/23 2,400 2,527,920
Series P, 5%, 9/01/15 3,000 3,281,070
Series P, 5.25%, 9/01/16 3,115 3,433,446
Series U, 5%, 9/01/37 (f) 2,000 2,048,980
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New Jersey EDA, Water Facilities Revenue Bonds
(New Jersey-American Water Company, Inc. Project),
AMT, Series A:
5.25%, 11/01/32 (f) 1,000 983,730
6.875%, 11/01/34 (d) 6,670 6,749,640
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Portfolio Abbreviations
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To simplify the listings of portfolio holdings in the Schedule of Investments,
we have abbreviated the names of many of the securities according to the list on
the 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
See Notes to Financial Statements.
6 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008
================================================================================
Schedule of Investments (continued)
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
--------------------------------------------------------------------------------
New Jersey (continued)
--------------------------------------------------------------------------------
New Jersey EDA, Water Facilities Revenue Refunding
Bonds (United Water of New Jersey, Inc.), Series B,
4.50%, 11/01/25 (f) $ 4,500 $ 4,473,000
--------------------------------------------------------------------------------
New Jersey Environmental Infrastructure Trust
Revenue Bonds (Environmental Infrastructure),
Series A, 5.25%, 9/01/10 (a) 3,000 3,218,160
--------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing
Authority, Health System Revenue Bonds (Catholic
Health East), Series A, 5.375%, 11/15/12 (a) 1,100 1,208,493
--------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing
Authority Revenue Bonds:
(Children's Specialized Hospital), Series A,
5.50%, 7/01/36 1,540 1,434,002
(Hunterdon Medical Center), Series A,
5.125%, 7/01/35 1,950 1,920,419
(Meridian Health), Series I, 5%, 7/01/38 (g) 1,000 1,011,810
(Pascack Valley Hospital Association),
6.625%, 7/01/36 (i) 1,845 1,192,793
(Robert Wood University), 5.70%, 7/01/20 (f) 4,000 4,191,880
(Somerset Medical Center), 5.50%, 7/01/33 1,875 1,573,556
(South Jersey Hospital), 6%, 7/01/12 (a) 6,640 7,373,521
(Southern Ocean County Hospital), 5.125%,
7/01/31 (g) 2,000 1,938,080
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New Jersey Health Care Facilities Financing
Authority, Revenue Refunding Bonds:
(Atlantic City Medical Center), 5.75%,
7/01/12 (a) 1,060 1,166,996
(Atlantic City Medical Center), 6.25%,
7/01/12 (a) 500 561,835
(Atlantic City Medical Center), 6.25%, 7/01/17 520 562,458
(Atlantic City Medical Center), 5.75%, 7/01/25 1,125 1,156,613
(Capital Health System Inc.), Series A,
5.75%, 7/01/23 1,650 1,685,590
(Hackensack University Medical Center),
5.25%, 1/01/36 (g) 1,000 1,036,540
(Meridian Health System Obligation Group),
5.25%, 7/01/19 (c) 1,500 1,544,730
(Meridian Health System Obligation Group),
5.375%, 7/01/24 (c) 2,250 2,311,785
(Meridian Health System Obligation Group),
5.25%, 7/01/29 (c) 2,195 2,246,714
(Saint Barnabas Health Care System), Series A,
5%, 7/01/29 4,155 3,892,446
(Saint Barnabas Health Care System), Series B,
5.92%, 7/01/30 (e) 2,000 434,260
(Saint Barnabas Health Care System), Series B,
5.72%, 7/01/36 (e) 1,500 209,670
(Saint Barnabas Health Care System), Series B,
5.18%, 7/01/37 (e) 13,250 1,712,297
(South Jersey Hospital System), 5%, 7/01/36 1,385 1,352,259
(South Jersey Hospital System), 5%, 7/01/46 1,650 1,584,627
--------------------------------------------------------------------------------
Par
Municipal Bonds (000) Value
--------------------------------------------------------------------------------
New Jersey (continued)
--------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority
Revenue Bonds:
(Georgian Court College Project), Series C,
6.50%, 7/01/13 (a) $ 2,000 $ 2,317,620
(Rider University), Series C, 5%, 7/01/37 (h) 1,750 1,737,977
(Rowan University), Series C, 5%,
7/01/14 (a)(b) 1,955 2,147,020
(Rowan University), Series C, 5.125%,
7/01/14 (a)(b) 2,165 2,392,498
--------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority,
Revenue Refunding Bonds:
(Gregorian Court University), Series D,
5.25%, 7/01/37 1,000 970,930
(Montclair State University), Series L, 5%,
7/01/14 (a)(b) 5,305 5,826,057
(Princeton University), Series A, 5%, 7/01/30 2,600 2,690,792
(Ramapo College), Series I, 4.25%, 7/01/31 (f) 750 683,025
(Ramapo College), Series I, 4.25%, 7/01/36 (f) 810 726,700
(Rider University), 5%, 7/01/17 (h) 1,000 1,014,330
(Rider University), Series A, 5.50%, 7/01/23 (h) 1,255 1,310,923
(Rider University), Series A, 5.25%, 7/01/34 (h) 1,450 1,466,486
(Rowan University), Series B, 5%, 7/01/24 (g) 1,800 1,905,192
(Rowan University), Series B, 5%, 7/01/27 (g) 1,250 1,306,362
(Stevens Institute of Technology), Series A,
5%, 7/01/27 2,200 2,137,982
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New Jersey State Higher Education Assistance
Authority, Student Loan Revenue Bonds, AMT,
Series A, 5.30%, 6/01/17 (f) 3,170 3,205,155
--------------------------------------------------------------------------------
New Jersey State Highway Authority, Garden State
Parkway General Revenue Refunding Bonds, 5.625%,
1/01/10 (a) 2,500 2,655,625
--------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency, Home Buyer Revenue Bonds, AMT (b):
Series CC, 5.80%, 10/01/20 4,515 4,625,663
Series U, 5.60%, 10/01/12 2,550 2,590,698
--------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency, M/F Revenue Bonds, AMT, Series A, 4.90%,
11/01/35 (d) 1,500 1,363,410
--------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency, S/F Housing Revenue Bonds, AMT, Series U,
4.95%, 10/01/32 700 663,005
--------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency, S/F Housing Revenue Refunding Bonds,
AMT, Series T, 4.65%, 10/01/32 4,945 4,396,649
--------------------------------------------------------------------------------
New Jersey State Transit Corporation, COP (Federal
Transit Administration Grants), Series B,
5.75%, 9/15/14 3,620 3,889,183
--------------------------------------------------------------------------------
New Jersey State Transportation Trust Fund
Authority, Transportation System Revenue Bonds:
Series A, 5.50%, 12/15/21 3,525 3,978,949
Series C, 5.05%, 12/15/35 (e)(f) 4,140 976,005
Series D, 5%, 6/15/20 4,555 4,827,753
--------------------------------------------------------------------------------
New Jersey State Transportation Trust Fund
Authority, Transportation System Revenue
Refunding Bonds, Series B, 5.50%, 12/15/21 (b) 5,865 6,646,218
--------------------------------------------------------------------------------
New Jersey State Turnpike Authority, Turnpike
Revenue Bonds, Series B, 5.15%, 1/01/35 (e)(f) 4,870 3,536,545
--------------------------------------------------------------------------------
See Notes to Financial Statements.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008 7
================================================================================
Schedule of Investments (continued)
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
--------------------------------------------------------------------------------
New Jersey (concluded)
--------------------------------------------------------------------------------
Newark, New Jersey, Housing Authority, Port
Authority-Port Newark Marine Terminal, Additional
Rent-Backed Revenue Refunding Bonds (City of Newark
Redevelopment Projects), 4.375%, 1/01/37 (b) $ 3,750 $ 3,558,150
--------------------------------------------------------------------------------
Perth Amboy, New Jersey, GO (Convertible CABS),
Refunding (c)(m):
4.739%, 7/01/33 1,575 1,303,439
4.744%, 7/01/34 1,925 1,591,763
--------------------------------------------------------------------------------
Port Authority of New York and New Jersey,
Consolidated Revenue Bonds, 93rd Series,
6.125%, 6/01/94 5,000 5,703,900
--------------------------------------------------------------------------------
Rahway Valley Sewerage Authority, New Jersey, Sewer
Revenue Bonds, CABS, Series A, 4.87%,
9/01/31 (b)(e) 6,000 1,785,540
--------------------------------------------------------------------------------
Salem County, New Jersey, Improvement
Authority Revenue Bonds (Finlaw State Office
Building Project) (c):
5.375%, 8/15/28 500 535,375
5.25%, 8/15/38 500 524,520
--------------------------------------------------------------------------------
South Jersey Port Corporation of New Jersey,
Revenue Refunding Bonds:
4.75%, 1/01/18 4,280 4,396,887
4.85%, 1/01/19 2,485 2,553,338
5%, 1/01/20 2,000 2,059,320
--------------------------------------------------------------------------------
Tobacco Settlement Financing Corporation of New
Jersey, Asset-Backed Revenue Bonds:
7%, 6/01/13 (a) 3,010 3,526,998
5.75%, 6/01/32 1,820 1,957,556
--------------------------------------------------------------------------------
Tobacco Settlement Financing Corporation of New
Jersey, Asset-Backed Revenue Refunding Bonds:
Series 1A, 5%, 6/01/41 2,500 1,932,350
Series 1B, 5.65%, 6/01/41 (e) 5,100 428,094
--------------------------------------------------------------------------------
Union County, New Jersey, Utilities Authority,
Senior Lease Revenue Refunding Bonds (Ogden Martin
System of Union, Inc.), AMT, Series A (f):
5.375%, 6/01/17 1,585 1,601,405
5.375%, 6/01/18 1,175 1,185,281
--------------------------------------------------------------------------------
University of Medicine and Dentistry of New Jersey,
Revenue Bonds, Series A (f):
5.50%, 12/01/18 945 1,000,084
5.50%, 12/01/19 1,900 2,010,751
5.50%, 12/01/20 1,870 1,979,002
5.50%, 12/01/21 1,435 1,518,646
--------------
274,278,478
--------------------------------------------------------------------------------
Puerto Rico -- 5.6%
--------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and
Transportation Authority, Highway Revenue
Refunding Bonds, Series CC, 5.50%, 7/01/31 (g) 3,000 3,349,380
--------------------------------------------------------------------------------
Puerto Rico Industrial, Tourist, Educational,
Medical and Environmental Control Facilities
Revenue Bonds:
(Cogeneration Facility-AES Puerto Rico Project),
AMT, 6.625%, 6/01/26 1,900 1,950,502
(University Plaza Project), Series A,
5%, 7/01/33 (b) 2,500 2,513,650
--------------------------------------------------------------------------------
Par
Municipal Bonds (000) Value
--------------------------------------------------------------------------------
Puerto Rico (concluded)
--------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency, GO,
Series A, 5%, 8/01/21 (c) $ 3,750 $ 3,948,075
--------------
11,761,607
--------------------------------------------------------------------------------
U.S. Virgin Islands -- 2.6%
--------------------------------------------------------------------------------
Virgin Islands Government Refinery Facilities,
Revenue Refunding Bonds (Hovensa Coker Project),
AMT, 6.50%, 7/01/21 3,500 3,591,525
--------------------------------------------------------------------------------
Virgin Islands Public Finance Authority, Refinery
Facilities Revenue Bonds (Hovensa Refinery),
AMT, 5.875%, 7/01/22 1,900 1,870,417
--------------
5,461,942
--------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $286,927,945) -- 138.7% 291,502,027
================================================================================
================================================================================
Municipal Bonds Transferred to
Tender Option Bond Trusts (j)
--------------------------------------------------------------------------------
New Jersey -- 13.9%
--------------------------------------------------------------------------------
Garden State Preservation Trust of New Jersey, Open
Space and Farmland Preservation Revenue Bonds,
Series A, 5.75% 11/1/28 (c) 5,460 6,421,724
--------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency, Capital Fund Program Revenue Bonds,
Series A, 4.70% 11/01/25 (c) 7,175 7,137,737
--------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority
Revenue Bond, 5% 7/1/35 (c) 6,115 6,320,552
--------------------------------------------------------------------------------
New Jersey EDA, School Facilities Construction
Revenue Bonds, Series L, 5% 3/01/30 (c) 5,800 5,938,051
--------------------------------------------------------------------------------
Port Authority of New York & New Jersey, Revenue
Bonds, One Hundred Fifty-Second Series,
5.75% 11/1/30 3,300 3,499,518
--------------------------------------------------------------------------------
Total Municipal Bonds Transferred to
Tender Option Bond Trusts
(Cost -- $28,238,050) -- 13.9% 29,317,582
================================================================================
================================================================================
Short-Term Securities Shares
--------------------------------------------------------------------------------
CMA New Jersey Municipal Money Fund,
1.35% (k)(l) 25,310,335 25,310,335
--------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $25,310,335) -- 12.0% 25,310,335
================================================================================
Total Investments (Cost -- $340,476,330*) -- 164.6% 346,129,944
Other Assets Less Liabilities -- 0.5% 969,328
Liability for Trust Certificates, Including
Interest Expense and Fees Payable -- (8.5%) (17,808,860)
Preferred Stock, at Redemption Value -- (56.6%) (119,042,333)
--------------
Net Assets Applicable to Common Stock -- 100.0% $ 210,248,079
==============
See Notes to Financial Statements.
8 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008
================================================================================
Schedule of Investments (concluded)
(Percentages shown are based on Net Assets)
* The cost and unrealized appreciation (depreciation) of investments as of
May 31, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ........................................... $323,096,771
=============
Gross unrealized appreciation ............................ $ 10,932,196
Gross unrealized depreciation ............................ (5,694,023)
-------------
Net unrealized appreciation .............................. $ 5,238,173
=============
(a) U.S. government securities, held in escrow, are used to pay interest on
this security as well as to retire the bond in full at the date indicated,
typically at a premium to par.
(b) MBIA Insured.
(c) FSA Insured.
(d) FGIC Insured.
(e) Represents a zero-coupon bond. Rate shown reflects the effective yield at
the time of purchase.
(f) AMBAC Insured.
(g) Assured Guaranty Insured.
(h) Radian Insured.
(i) Illiquid security.
(j) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1 of
the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
(k) Represents the current yield as of report date.
(l) 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 22,897,797 $ 105,421
--------------------------------------------------------------------------
(m) Represents a step bond. Rate shown reflects the effective yield at the
time of purchase.
o Effective December 1, 2007, the Fund adopted Financial Accounting Standard
Board ("FASB") Statement of Financial Accounting Standards No. 157, "Fair
Value Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair
value, establishes a framework for measuring fair values and requires
additional disclosures about the use of fair value measurements. Various
inputs are used in determining the fair value of investments, which are as
follows:
o Level 1 -- price quotations in active markets/exchanges for
identical securities
o Level 2 -- other observable inputs (including, but not limited to:
quoted prices for similar assets or liabilities in markets that are
not active, inputs other than quoted prices that are observable for
the assets or liabilities (such as interest rates, yield curves,
volatilities, prepayment speeds, loss severities, credit risks, and
default rates) or other market-corroborated inputs)
o Level 3 -- unobservable inputs based on the best information
available in the circumstance, to the extent observable inputs are
not available (including the Fund's own assumption used in
determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities.
For information about the Fund's policy regarding valuation of investments
and other significant accounting policies, please refer to Note 1 of the
Notes to Financial Statements.
The following table summarizes the inputs used as of May 31, 2008 in
determining the fair valuation of the Fund's investments:
--------------------------------------------------------------------------
Investments in
Valuation Inputs Securities
--------------------------------------------------------------------------
Level 1 .................................................. $ 25,310,335
Level 2 .................................................. 320,819,609
Level 3 .................................................. --
--------------------------------------------------------------------------
Total $346,129,944
=============
See Notes to Financial Statements.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008 9
================================================================================
Statement of Assets and Liabilities
May 31, 2008 (Unaudited)
----------------------------------------------------------------------------------------------------------------------------------
Assets
----------------------------------------------------------------------------------------------------------------------------------
Investments at value -- unaffiliated (cost -- $315,165,995) .................................................... $ 320,819,609
Investments at value -- affiliated (cost -- $25,310,335) ....................................................... 25,310,335
Cash ........................................................................................................... 21,001
Interest receivable ............................................................................................ 5,327,064
Investments sold receivable .................................................................................... 105,000
Prepaid expenses ............................................................................................... 18,628
---------------
Total assets ................................................................................................... 351,601,637
---------------
----------------------------------------------------------------------------------------------------------------------------------
Accrued Liabilities
----------------------------------------------------------------------------------------------------------------------------------
Investments purchased payable .................................................................................. 3,433,095
Income dividends payable -- Common Stock ....................................................................... 823,788
Investment advisory fees payable ............................................................................... 137,304
Interest expense and fees payable .............................................................................. 13,860
Officer's and Directors' fees payable .......................................................................... 2,683
Other affiliates payable ....................................................................................... 2,393
Other accrued expenses payable ................................................................................. 103,102
---------------
Total accrued liabilities ...................................................................................... 4,516,225
---------------
----------------------------------------------------------------------------------------------------------------------------------
Other Liabilities
----------------------------------------------------------------------------------------------------------------------------------
Trust certificates(1) .......................................................................................... 17,795,000
---------------
Total Liabilities .............................................................................................. 22,311,225
---------------
----------------------------------------------------------------------------------------------------------------------------------
Preferred Stock
----------------------------------------------------------------------------------------------------------------------------------
Preferred Stock, at redemption value, par value $0.05 per share
(2,400 Series A Shares and 1,500 Series B Shares) and $0.10
per share (860 Series C Shares) authorized, issued and
outstanding at $25,000 per share liquidation preference ..................................................... 119,042,333
---------------
----------------------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Stock
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock .......................................................................... $ 210,248,079
===============
----------------------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Stock Shareholders Consist of
----------------------------------------------------------------------------------------------------------------------------------
Common Stock, par value $0.10 per share (14,203,242 shares issued and outstanding) ............................. $ 1,420,324
Paid-in capital in excess of par ............................................................................... 203,960,129
Undistributed net investment income ............................................................................ 1,520,805
Accumulated net realized loss .................................................................................. (2,306,793)
Net unrealized appreciation/depreciation ....................................................................... 5,653,614
---------------
Net Assets, $14.80 net asset value per share of Common Stock ................................................... $ 210,248,079
===============
Statement of Operations
Six Months Ended May 31, 2008 (Unaudited)
----------------------------------------------------------------------------------------------------------------------------------
Investment Income
----------------------------------------------------------------------------------------------------------------------------------
Interest ....................................................................................................... $ 7,680,625
Dividends from affiliates ...................................................................................... 105,421
---------------
Total income ................................................................................................... 7,786,046
---------------
----------------------------------------------------------------------------------------------------------------------------------
Expenses
----------------------------------------------------------------------------------------------------------------------------------
Investment advisory ............................................................................................ 821,668
Commissions for Preferred Stock ................................................................................ 134,600
Professional ................................................................................................... 65,603
Accounting services ............................................................................................ 46,917
Printing ....................................................................................................... 24,394
Transfer agent ................................................................................................. 13,416
Directors ...................................................................................................... 8,974
Custodian ...................................................................................................... 8,440
Registration ................................................................................................... 5,835
Miscellaneous .................................................................................................. 42,594
---------------
Total expenses excluding interest expense and fees ............................................................. 1,172,441
Interest expense and fees(2) ................................................................................... 44,695
---------------
Total expenses ................................................................................................. 1,217,136
Less fees waived by advisor .................................................................................... (25,361)
---------------
Total expenses after waiver .................................................................................... 1,191,775
---------------
Net investment income .......................................................................................... 6,594,271
---------------
----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Loss
----------------------------------------------------------------------------------------------------------------------------------
Net realized loss from:
Investments ................................................................................................. (446,673)
Forward starting swaps ...................................................................................... (46,813)
---------------
(493,486)
---------------
Net change in unrealized appreciation/depreciation on investments .............................................. (4,287,898)
---------------
Total realized and unrealized loss ............................................................................. (4,781,384)
---------------
----------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Preferred Stock Shareholders From
----------------------------------------------------------------------------------------------------------------------------------
Net investment income .......................................................................................... (2,095,325)
Net realized gain .............................................................................................. (31,683)
---------------
Total dividends and distributions to Preferred Stock shareholders .............................................. (2,127,008)
---------------
Net Decrease in Net Assets Resulting from Operations ........................................................... $ (314,121)
===============
(1) Represents short-term floating rate certificates issued by tender option
bond trusts.
(2) Related to tender option bond trusts.
See Notes to Financial Statements.
10 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008
================================================================================
Statements of Changes in Net Assets
Six Months
Ended
May 31, Year Ended
2008 November 30,
Increase (Decrease) in Net Assets: (Unaudited) 2007
-----------------------------------------------------------------------------------------------------------------------------
Operations
-----------------------------------------------------------------------------------------------------------------------------
Net investment income .................................................................... $ 6,594,271 $ 14,402,279
Net realized gain (loss) ................................................................. (493,486) 1,589,868
Net change in unrealized appreciation/depreciation ....................................... (4,287,898) (12,322,831)
Dividends and distributions to Preferred Stock shareholders from:
Net investment income ................................................................. (2,095,325) (4,053,487)
Net realized gain ..................................................................... (31,683) --
--------------------------------
Net decrease in net assets applicable to Common Stockholders resulting from operations ... (314,121) (384,171)
--------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Common Stock Shareholders from
-----------------------------------------------------------------------------------------------------------------------------
Net investment income .................................................................... (4,942,728) (9,885,456)
Net realized gain ........................................................................ (80,276) --
--------------------------------
Decrease in net assets resulting from dividends and distributions to Common Stock
shareholders .......................................................................... (5,023,004) (9,885,456)
--------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Stock Shareholders
-----------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets applicable to Common Stock .................................. (5,337,125) (10,269,627)
Beginning of period ...................................................................... 215,585,204 225,854,831
--------------------------------
End of period ............................................................................ $ 210,248,079 $ 215,585,204
================================
End of period undistributed net investment income ........................................ $ 1,520,805 $ 1,964,587
================================
See Notes to Financial Statements.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008 11
================================================================================
Financial Highlights
Six Months
Ended
May 31, Year Ended November 30,
2008 -----------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
------------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................ $ 15.18 $ 15.90 $ 15.37 $ 15.25 $ 15.39 $ 14.84
-----------------------------------------------------------------------------
Net investment income(1) ............................ 0.46 1.01 1.00 1.01 1.06 1.05
Net realized and unrealized gain (loss) ............. (0.33) (0.74) 0.54 0.18 (0.14) 0.52
Dividends and distributions to Preferred Stock
shareholders from:
Net investment income ............................ (0.15) (0.29) (0.25) (0.16) (0.08) (0.06)
Net realized gain ................................ --(2) -- -- -- -- --
-----------------------------------------------------------------------------
Net increase (decrease) from investment operations .. (0.02) (0.02) 1.29 1.03 0.84 1.51
-----------------------------------------------------------------------------
Dividends and distributions to Common Stock
shareholders from:
Net investment income ............................ (0.35) (0.70) (0.76) (0.91) (0.96) (0.96)
Net realized gain ................................ (0.01) -- -- -- -- --
-----------------------------------------------------------------------------
Total dividends and distributions to Common Stock
shareholders ..................................... (0.36) (0.70) (0.76) (0.91) (0.96) (0.96)
-----------------------------------------------------------------------------
Capital changes with respect to issuance of shares .. -- -- -- --(2) (0.02) --
-----------------------------------------------------------------------------
Net asset value, end of period ...................... $ 14.80 $ 15.18 $ 15.90 $ 15.37 $ 15.25 $ 15.39
=============================================================================
Market price, end of period ......................... $ 14.30 $ 13.66 $ 15.47 $ 14.38 $ 14.73 $ 14.34
=============================================================================
------------------------------------------------------------------------------------------------------------------------------------
Total Investment Return(3)
------------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................ (0.02%)(4) 0.11% 8.83% 7.08% 5.84% 10.81%
=============================================================================
Based on market price ............................... 7.36%(4) (7.41%) 13.17% 3.72% 9.72% 8.90%
=============================================================================
------------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Applicable to
Common Stock
------------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and excluding interest
expense and fees(5,6) ............................ 1.09%(7) 1.10% 1.09% 1.09% 1.02% 1.02%
=============================================================================
Total expenses after waiver(5) ...................... 1.13%(7) 1.27% 1.44% 1.39% 1.24% 1.21%
=============================================================================
Total expenses(5) ................................... 1.15%(7) 1.28% 1.44% 1.39% 1.25% 1.22%
=============================================================================
Net investment income(5) ............................ 6.25%(7) 6.56% 6.50% 6.47% 6.94% 6.94%
=============================================================================
Dividends to Preferred Stock shareholders ........... 1.99%(7) 1.85% 1.65% 1.05% 0.50% 0.40%
=============================================================================
Net investment income to Common Stock shareholders .. 4.26%(7) 4.71% 4.85% 5.42% 6.44% 6.54%
=============================================================================
------------------------------------------------------------------------------------------------------------------------------------
Supplemental Data
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Stock, end of
period (000) ..................................... $ 210,248 $ 215,585 $ 225,855 $ 218,250 $ 216,618 $ 218,642
=============================================================================
Preferred Stock outstanding at liquidation
preference, end of period (000)................... $ 119,000 $ 119,000 $ 119,000 $ 119,000 $ 119,000 $ 97,500
=============================================================================
Portfolio turnover .................................. 7% 18% 9% 32% 14% 26%
=============================================================================
Asset coverage end of period (000) .................. $ 2,767 $ 2,812 $ 2,898 $ 2,834 $ 2,820 $ 3,242
=============================================================================
(1) Based on average shares outstanding.
(2) Amount is less than $(0.01) per share.
(3) 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.
(4) Aggregate total investment return.
(5) Do not reflect the effect of dividends to Preferred Stock shareholders.
(6) Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
(7) Annualized.
See Notes to Financial Statements.
12 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008
================================================================================
Notes to Financial Statements (Unaudited)
1. Significant Accounting Policies:
BlackRock MuniYield New Jersey Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as a
non-diversified, closed-end management investment company. The Fund's financial
statements are prepared in conformity with accounting principles generally
accepted in the United States of America, which may require the use of
management accruals and estimates. 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 following is a summary of significant accounting policies followed by the
Fund:
Valuation of Investments: Municipal Investments are valued on the basis of
prices provided by dealers or pricing services selected under the supervision of
the Fund's Board of Directors (the "Board"). In determining the value of a
particular investment, pricing services may use certain information with respect
to transactions in such investments, quotations from dealers, pricing matrixes,
market transactions in comparable investments and various relationships between
investments. Short-term securities are valued at amortized cost. Swap agreements
are valued by quoted fair values received daily by the Fund's pricing service.
In the event that application of these methods of valuation results in a price
for an investment which is deemed not to be representative of the market value
of such investment, the investment will be valued by a method approved by the
Board as reflecting fair value ("Fair Value Assets"). When determining the price
for Fair Value Assets, the investment advisor and/or sub-advisor seeks to
determine the price that the Fund might reasonably expect to receive from the
current sale of that asset in an arm's-length transaction. Fair value
determinations shall be based upon all available factors that the investment
advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets
is subsequently reported to the Board or a committee thereof.
Derivative Financial Instruments: The Fund may engage in various portfolio
investment strategies to increase the return of the Fund and to hedge, or
protect, its exposure to interest rate movements and movements in the securities
markets. Losses may arise if the value of the contract due to an unfavorable
change in the price of the underlying security or if the counterparty does not
perform under the contract.
o Forward interest rate swaps -- The Fund may enter into forward interest
rate swaps, in which the Fund and the counterparty agree to make periodic
net payments on a specified notional contract amount, commencing on a
specified future effective date, unless terminated earlier. These periodic
payments received or made by the Fund are recorded in the accompanying
Statements of Operations as realized gains or losses, respectively. Gains
or losses are also realized upon termination of the swap agreements. Swaps
are marked-to-market daily and changes in value are recorded as unrealized
appreciation (depreciation). The Fund generally intends to close each
forward interest rate swap before the accrual date specified in the
agreement and therefore avoid entering into the interest rate swap
underlying each forward interest rate swap.
Municipal Bonds Transferred to Tender Option Bond Trusts: The Fund leverages its
assets through the use of tender option bond trusts ("TOBs"). A TOB is
established by a third party sponsor forming a special purpose entity, into
which one or more funds or an agent on behalf of the funds, transfers municipal
securities. Other funds managed by the investment advisor may also contribute
municipal securities to a TOB into which the Fund has contributed 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 ("TOB Residuals"), which are generally issued to the participating
funds that made the transfer. The TOB Residuals 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, within seven days, a corresponding share of the municipal securities
from the TOB to the Fund. The cash received by the TOB from the sale of the
short-term floating rate certificates, less transaction expenses, is paid to the
Fund, which typically invests the cash in additional municipal securities. The
Fund's transfer of the municipal securities to a TOB is accounted for as a
secured borrowing, 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 of the Fund.
Interest income from the underlying securities 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. As of
May 31, 2008, the aggregate value of the underlying municipal securities
transferred to TOBs was $29,317,582, the related liability for trust
certificates was $17,795,000 and the range of interest rates was 1.67% to
2.291%.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008 13
================================================================================
Notes to Financial Statements (continued)
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 TOBs likely will adversely affect the Fund's investment income
and dividends to Common Stock shareholders. Fluctuations in the market value of
municipal securities deposited into the TOB may adversely affect the Fund's net
asset value per share.
Zero-Coupon Bonds: The Fund may invest in zero-coupon bonds, which are normally
issued at a significant discount from face value and do not provide periodic
interest payments. Zero-coupon bonds may experience greater volatility in market
value than similar maturity debt obligations which provide for regular interest
payments.
Segregation: In cases in which the 1940 Act and the interpretive positions of
the Securities and Exchange Commission ("SEC") require that the Fund segregate
assets in connection with certain investments (e.g., swaps and when-issued
securities), the Fund will, consistent with certain interpretive letters issued
by the SEC, designate on its books and records cash or other liquid debt
securities having a market value at least equal to the amount that would
otherwise be required to be physically segregated.
Investment Transactions and Investment income: Investment transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend date.
Interest income is recognized on the accrual method. The Fund amortizes all
premiums and discounts on debt securities.
Dividends and Distributions: Dividends from net investment income are declared
and paid monthly. Distributions of capital gains are recorded on the ex-dividend
dates. Dividends and distributions to holders of Preferred Stock are accrued and
determined as described in Note 4.
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.
Effective May 30, 2008, the Fund implemented Financial Accounting Standards
Board ("FASB") Interpretation No. 48, "Accounting for Uncertainty in Income
Taxes -- an interpretation of FASB Statement No. 109" ("FIN 48"). 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 investment companies, before being
measured and recognized in the financial statements. The investment advisor has
evaluated the application of FIN 48 to the Fund, and has determined that the
adoption of FIN 48 does not have a material impact on the Fund's financial
statements. The Fund files U.S. federal and various state and local tax returns.
No income tax returns are currently under examination. The statute of
limitations on the Fund's U.S. federal tax returns remain open for the years
ended November 30, 2004 through November 30, 2006. The statutes of limitations
on the Fund's state and local tax returns may remain open for an additional year
depending upon the jurisdiction.
Recent Accounting Pronouncement: In March 2008, Statement of Financial
Accounting Standards No. 161, "Disclosures about Derivative Instruments and
Hedging Activities -- an amendment of FASB Statement No. 133" ("FAS 161"), was
issued and is effective for fiscal years beginning after November 15, 2008. FAS
161 is intended to improve financial reporting for derivative instruments by
requiring enhanced disclosure that enables investors to understand how and why
an entity uses derivatives, how derivatives are accounted for, and how
derivative instruments affect an entity's results of operations and financial
position. The impact on the Fund's financial statement disclosures, if any, is
currently being assessed.
Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan:
Under the deferred compensation plan approved by the Fund's Board,
non-interested Directors ("Independent Directors") may defer a portion of their
annual complex-wide compensation. Deferred amounts earn an approximate return as
though equivalent dollar amounts had been invested in common shares of other
certain BlackRock Closed-End Funds selected by the Independent Directors. This
has approximately the same economic effect for the Independent Directors as if
the Independent Directors had invested the deferred amounts directly in other
certain BlackRock Closed-End Funds.
The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of the Fund. The
Fund may, however, elect to invest in common stock of other certain BlackRock
Closed-End Funds selected by the Independent Directors in order to match its
deferred compensation obligations.
Other: Expenses directly related to that Fund are charged to the Fund. Other
operating expenses shared by several funds are pro-rated among those funds on
the basis of relative net assets or other appropriate methods.
14 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008
================================================================================
Notes to Financial Statements (continued)
2. Investment Advisory Agreement and Other Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with BlackRock
Advisors, LLC (the "Advisor"), an indirect, wholly owned subsidiary of
BlackRock, Inc., to provide investment advisory and administration services.
Merrill Lynch & Co., Inc. ("Merrill Lynch") and The PNC Financial Services
Group, Inc. are principal owners of BlackRock, Inc.
The Advisor 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 the Advisor a monthly fee at an annual rate of 0.50% of the average daily
value of the Fund's net assets, plus the proceeds from the issuance of Preferred
Stock and TOBs.
The Advisor has agreed to waive its investment advisory fees by the amount of
investment advisory fees the Fund pays to the Advisor indirectly through its
investment in affiliated money market funds. This amount is included in fees
waived by the Advisor on the Statement of Operations.
The Advisor has entered into a separate sub-advisory agreement with BlackRock
Investment Management, LLC ("BIM"), an affiliate of the Advisor, under which the
Advisor pays BIM for services it provides, a monthly fee that is a percentage of
the investment advisory fee paid by the Fund to the Advisor.
For the six months ended May 31, 2008, the Fund reimbursed the Advisor $2,593
for certain accounting services, which is included in accounting services in the
Statement of Operations.
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 six
months ended May 31, 2008 were $23,394,989 and $29,863,540, respectively.
4. Capital Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of stock, including Preferred
Stock, par value $0.10 per share, all of which were initially classified as
Common Stock. The Board is authorized, however, to reclassify any unissued
shares of stock without approval of holders of Common Stock.
Common Stock
Shares issued and outstanding during the six months ended May 31, 2008 and the
year ended November 30, 2007 remained constant.
Preferred Stock
Preferred Stock of the Fund has a par value of $0.05 per share (Series A and
Series B Shares) and $0.10 per share (Series C Shares) and a liquidation
preference of $25,000 per share, plus accrued and unpaid dividends, that
entitles its holders to receive cash dividends at varying annualized rates for
each dividend period. The yields in effect at May 31, 2008 were as follows:
Series A, 3.454%, Series B, 2.559% and Series C, 2.589%. Shares issued and
outstanding during the six months ended May 31, 2008 and the year ended November
30, 2007 remained constant.
The Fund pays commissions to certain broker-dealers at the end of each auction
at an annual rate of 0.25%, calculated on the aggregate principal amount. For
the six months ended May 31, 2008, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, a wholly owned subsidiary of Merrill Lynch, earned commissions of
$82,660.
Dividends on seven-day Preferred Stock are cumulative at a rate which is reset
every seven days based on the results of an auction. If the Preferred Stock
fails to clear the auction on an auction date, the Fund is required to pay the
maximum applicable rate on the Preferred Stock to holders of such shares for
each successive dividend period until such time as the stock is successfully
auctioned. The maximum applicable rate on the Preferred Stock for Series A and
B, is the higher of 110% of the AA commercial paper rate or 110% of 90% of the
Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax
rate. The maximum applicable rate on the Preferred Stock for Series C is the
higher of 110% plus or multiplied by the Telerate/BBA LIBOR; or 90% of the Kenny
S&P 30-day High-Grade Index rate divided by 1.00 minus the marginal tax rate.
During the six months ended May 31, 2008, the Preferred Stock of the Fund was
successfully auctioned at each auction date until February 13, 2008. The low,
high and average dividend rates on the Preferred Stock for the Fund for the six
months ended May 31, 2008 were as follows:
--------------------------------------------------------------------------------
Low High Average
--------------------------------------------------------------------------------
Series A ........................................ 2.559% 4.356% 3.460%
Series B ........................................ 2.589% 4.356% 3.487%
Series C ........................................ 2.800% 5.198% 3.864%
--------------------------------------------------------------------------------
Since February 13, 2008, the Preferred Stock of the Fund failed to clear any of
its auctions. As a result, the Preferred Stock dividend rates were reset to the
maximum applicable rate, which ranged from 2.559% to 5.198%. A failed auction is
not an event of default for the Fund but it is a liquidity event for the holders
of the Preferred Stock. A failed auction occurs when there are more sellers of a
fund's auction rate preferred stock than buyers. It is impossible to predict how
long this imbalance will last. An auction for the Fund's Preferred Stock may not
occur for some time, if ever, and even if liquidity does resume, holders of
Preferred Stock may not have the ability to sell the Preferred Stock at its
liquidation preference.
The Fund may not declare dividends or make other distributions on Common Stock
or purchase any such shares if, at the time of the declaration, distribution or
purchase, asset coverage with respect to the outstanding Preferred Stock is less
than 200%.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008 15
================================================================================
Notes to Financial Statements (concluded)
The Preferred Stock is redeemable at the option of the Fund, in whole or in
part, on any dividend payment date at $25,000 per share plus any accumulated
unpaid dividends whether or not declared. The Preferred Stock is also subject to
mandatory redemption at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared, if certain requirements relating to the
composition of the assets and liabilities of the Fund, as set forth in the
Fund's Articles Supplementary, are not satisfied.
The holders of Preferred Stock have voting rights equal to the holders of Common
Stock (one vote per share) and will vote together with holders of Common Stock
(one vote per share) as a single class. However, holders of Preferred Stock,
voting as a separate class, are also entitled to elect two Directors for the
Fund. In addition, the 1940 Act requires that along with approval by
shareholders that might otherwise be required, the approval of the holders of a
majority of any outstanding Preferred Stock, voting separately as a class would
be required to (a) adopt any plan of reorganization that would adversely affect
the Preferred Stock, (b) change the Fund's subclassification as a closed-end
investment company or change its fundamental investment restrictions or (c)
change its business so as to cease to be an investment company.
5. Capital Loss Carryforward:
On November 30, 2007, the Fund had a 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 future realized capital gains.
6. Concentration Risk:
The Fund's investments are concentrated in certain states, which may be affected
by adverse financial, social, environmental, economic, regulatory and political
factors.
Many municipalities insure repayment of their bonds, which reduces the risk of
loss due to issuer default. The market value of these bonds may fluctuate for
other reasons and there is no assurance that the issuer will meet its
obligation.
7. Subsequent Event:
The Fund paid a tax-exempt income dividend to holders of Common Stock in the
amount of $0.058000 per share on July 1, 2008 to shareholders of record on June
16, 2008.
The dividends declared on Preferred Stock for the period June 1, 2008 to June
30, 2008 were as follows: Series A, $117,252; Series B, $72,296 and Series C,
$56,435.
On June 2, 2008, the Fund announced the following redemptions of Preferred Stock
at a price of $25,000 per share plus any accrued and unpaid dividends through
the redemption date:
--------------------------------------------------------------------------------
Redemption Shares to be Aggregate
Series Date Redeemed Price
--------------------------------------------------------------------------------
A .............................. 6/26/2008 288 $ 7,200,000
B .............................. 6/25/2008 180 $ 4,500,000
C .............................. 6/24/2008 103 $ 2,575,000
--------------------------------------------------------------------------------
The Fund financed the Preferred Stock redemptions with cash received from TOB
transactions.
16 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008
================================================================================
Disclosure of Investment Advisory Agreement and Subadvisory Agreement
Disclosure of Investment Advisory Agreement and Subadvisory Agreement
The Board of Directors (the "Board," the members of which are referred to as
"Directors") of the BlackRock MuniYield New Jersey Fund, Inc. (the "Fund") met
in April and May 2008 to consider approving the continuation of the Fund's
investment advisory agreement (the "Advisory Agreement") with BlackRock
Advisors, LLC (the "Advisor"), the Fund's investment adviser. The Board also
considered the approval of the Fund's subadvisory agreement (the "Subadvisory
Agreement" and, together with the "Advisory Agreement," the "Agreements")
between the Advisor and BlackRock Investment Management, LLC (the "Subadvisor").
The Advisor and the Subadvisor are collectively referred to herein as the
"Advisors" and, together with BlackRock, Inc., "BlackRock."
Activities and Composition of the Board
The Board of Directors of the Fund consists of thirteen individuals, eleven of
whom are not "interested persons" of the Fund as defined in the Investment
Company Act of 1940 (the "1940 Act") (the "Independent Directors"). The
Directors are responsible for the oversight of the operations of the Fund and
perform the various duties imposed on the directors of investment companies by
the 1940 Act. The Independent Directors have retained independent legal counsel
to assist them in connection with their duties. The Chairman of the Board is an
Independent Director. The Board has established four standing committees: an
Audit Committee, a Governance and Nominating Committee, a Compliance Committee
and a Performance Oversight Committee.
Advisory Agreement and Subadvisory Agreement
Upon the consummation of the combination of BlackRock, Inc.'s investment
management business with Merrill Lynch & Co., Inc.'s investment management
business, including Merrill Lynch Investment Managers, L.P., and certain
affiliates, the Fund entered into the Advisory Agreement and the Subadvisory
Agreement, each with an initial two-year term. Consistent with the 1940 Act,
after the Advisory and Subadvisory Agreement's respective initial two-year term,
the Board is required to consider the continuation of the Fund's Advisory
Agreement and Subadvisory Agreement on an annual basis. In connection with this
process, the Board assessed, among other things, the nature, scope and quality
of the services provided to the Fund by the personnel of BlackRock and its
affiliates, including investment management, administrative services, secondary
market support services, oversight of fund accounting, and assistance in meeting
legal and regulatory requirements. The Board also received and assessed
information regarding the services provided to the Fund by certain unaffiliated
service providers.
Throughout the year, the Board also considered a range of information in
connection with its oversight of the services provided by BlackRock and its
affiliates. Among the matters the Board considered were: (a) investment
performance for one, three and five years, as applicable, against peer funds, as
well as senior management and portfolio managers' analysis of the reasons for
underperformance, if applicable; (b) fees, including advisory and other fees
paid to BlackRock and its affiliates by the Fund, such as transfer agency fees
and fees for marketing and distribution; (c) Fund operating expenses paid to
third parties; (d) the resources devoted to and compliance reports relating to
the Fund's investment objective, policies and restrictions; (e) the Fund's
compliance with its Code of Ethics and compliance policies and procedures; (f)
the nature, cost and character of non-investment management services provided by
BlackRock and its affiliates; (g) BlackRock's and other service providers'
internal controls; (h) BlackRock's implementation of the proxy voting guidelines
approved by the Board; (i) the use of equity brokerage commissions and execution
quality; (j) valuation and liquidity procedures; and (k) reviews of BlackRock's
business, including BlackRock's response to the increasing scale of its
business.
Board Considerations in Approving the Advisory Agreement and Subadvisory
Agreement
To assist the Board in its evaluation of the Agreements, the Directors received
information from BlackRock in advance of the April 22, 2008 meeting which
detailed, among other things, the organization, business lines and capabilities
of the Advisors, including: (a) the responsibilities of various departments and
key personnel and biographical information relating to key personnel; (b)
financial statements for BlackRock; (c) the advisory and/or administrative fees
paid by the Fund to the Advisors, including comparisons, compiled by Lipper, an
independent third party, with the management fees of funds with similar
investment objectives ("Peers"); (d) the profitability of BlackRock and certain
industry profitability analyses for advisers to registered investment companies;
(e) the expenses of BlackRock in providing various services; (f) non-investment
advisory reimbursements, if applicable, and "fallout" benefits to BlackRock; (g)
economies of scale, if any, generated through the Advisors' management of all of
the BlackRock closed-end funds (the "Fund Complex"); (h) the expenses of the
Fund, including comparisons of the Fund's expense ratios (both before and after
any fee waivers) with the expense ratios of its Peers; and (i) the Fund's
performance for the past one-, three-and five-year periods, when applicable, as
well as the Fund's performance compared to its Peers.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008 17
================================================================================
Disclosure of Investment Advisory Agreement and Subadvisory Agreement
(continued)
The Board also considered other matters it deemed important to the approval
process, where applicable, such as payments made to BlackRock or its affiliates
relating to the distribution of Fund shares, services related to the valuation
and pricing of Fund portfolio holdings, allocation of fund brokerage fees
(including the related benefits to BlackRock of "soft dollars") and direct and
indirect benefits to BlackRock and its affiliates from their relationship with
the Fund.
In addition to the foregoing materials, independent legal counsel to the
Independent Directors provided a legal memorandum outlining, among other things,
the duties of the Board under the 1940 Act, as well as the general principles of
relevant law in reviewing and approving advisory contracts, the requirements of
the 1940 Act in such matters, an adviser's fiduciary duty with respect to
advisory agreements and compensation, and the standards used by courts in
determining whether investment company boards of directors have fulfilled their
duties and the factors to be considered by boards in voting on advisory
agreements.
The Independent Directors reviewed this information and discussed it with
independent legal counsel prior to the meeting on April 22, 2008. At the Board
meeting on April 22, 2008, BlackRock made a presentation to and responded to
questions from the Board. Following the meeting on April 22, 2008, the Board
presented BlackRock with questions and requests for additional information.
BlackRock responded to these requests with additional written materials provided
to the Directors prior to the meetings on May 29 and 30, 2008. At the Board
meeting on May 29 and 30, 2008, BlackRock responded to further questions from
the Board. In connection with BlackRock's presentations, the Board considered
each Agreement and, in consultation with independent legal counsel, reviewed the
factors set out in judicial decisions and Securities and Exchange Commission
("SEC") statements relating to the renewal of the Agreements.
I. Matters Considered by the Board
In connection with its deliberations with respect to the Agreements, the Board
considered all factors it believed relevant with respect to the Fund, including
the following: the nature, extent and quality of the services provided by the
Advisors; the investment performance of the Fund; the costs of the services to
be provided and profits to be realized by the Advisors and their affiliates from
their relationship with the Fund; the extent to which economies of scale would
be realized as the Fund Complex grows; and whether BlackRock realizes other
benefits from its relationship with the Fund.
A. Nature, Extent and Quality of the Services: In evaluating the nature, extent
and quality of the Advisors' services, the Board reviewed information concerning
the types of services that the Advisors provide and are expected to provide to
the Fund, narrative and statistical information concerning the Fund's
performance record and how such performance compares to the Fund's Peers,
information describing BlackRock's organization and its various departments, the
experience and responsibilities of key personnel and available resources. The
Board noted the willingness of the personnel of BlackRock to engage in open,
candid discussions with the Board. The Board further considered the quality of
the Advisors' investment process in making portfolio management decisions.
In addition to advisory services, the Directors considered the quality of the
administrative or non-investment advisory services provided to the Fund. In this
regard, the Advisors and their affiliates provided the Fund with such
administrative, transfer agency, shareholder and other services, as applicable
(exclusive of, and in addition to, any such services provided by others for the
Fund), and officers and other personnel as are necessary for the operations of
the Fund. In addition to investment management services, the Advisors and their
affiliates provided the Fund with services such as: preparing shareholder
reports and communications, including annual and semi-annual financial
statements and Fund websites; communications with analysts to support secondary
market trading; assisting with daily accounting and pricing; preparing periodic
filings with regulators and stock exchanges; overseeing and coordinating the
activities of other service providers; administering and organizing Board
meetings and preparing the Board materials for such meetings; providing legal
and compliance support (such as helping to prepare proxy statements and
responding to regulatory inquiries); and performing other Fund administrative
tasks necessary for the operation of the Fund (such as tax reporting and
fulfilling regulatory filing requirements). The Board considered the Advisors'
policies and procedures for assuring compliance with applicable laws and
regulations.
B. The Investment Performance of the Fund and BlackRock: As previously noted,
the Board received performance information regarding the Fund and its Peers.
Among other things, the Board received materials reflecting the Fund's historic
performance and the Fund's performance compared to its Peers. More specifically,
the Fund's one-, three- and five-year total returns (when applicable) were
evaluated relative to its respective Peers (including of the Peers' median
performance).
The Board reviewed a narrative analysis of the Peer rankings prepared by Lipper
and reviewed by BlackRock at the Board's request. The summary placed the Peer
rankings into context by analyzing various factors that affect these
comparisons.
The Board noted that in general the Fund performed better than its Peers in that
its performance was at or above the median in at least two for the one-, three-
and five-year periods reported.
After considering this information, the Boards concluded that the performance of
the Fund, in light of and after considering the other facts and circumstances
applicable to the Fund, supports a conclusion that the Fund's Agreements should
be renewed.
18 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008
================================================================================
Disclosure of Investment Advisory Agreement and Subadvisory Agreement
(continued)
C. Consideration of the Advisory Fees and the Cost of the Services and Profits
to be Realized by BlackRock and its Affiliates from the Relationship with the
Fund: In evaluating the management fees and expenses that a Fund is expected to
bear, the Board considered the Fund's current management fee structure and the
Fund's expense ratios in absolute terms as well as relative to the fees and
expense ratios of its applicable Peers. The Board, among other things, reviewed
comparisons of the Fund's gross management fees before and after any applicable
reimbursements and fee waivers and total expense ratios before and after any
applicable waivers with those of applicable Peers. The Board also reviewed a
narrative analysis of the Peer rankings prepared by Lipper and summarized by
BlackRock at the request of the Board. This summary placed the Peer rankings
into context by analyzing various factors that affect these comparisons.
The Board noted that the Fund paid contractual management fees lower than or
equal to the median contractual fees paid by its Peers. This comparison was made
without giving effect to any expense reimbursements or fee waivers.
The Board also compared the management fees charged and services provided to the
closed-end investment companies managed by the Advisors to the management fees
charged by the Advisors to other types of clients (such as open-end investment
companies and separately managed institutional accounts) in similar investment
categories. The Board noted certain differences in services provided and costs
incurred by the Advisor with respect to closed-end funds compared to separately
managed accounts and open-end funds in general and the reasons for such
differences.
In connection with the Board's consideration of the fees and expense
information, the Board reviewed the considerable investment management
experience of the Advisors and considered the high level of investment
management, administrative and other services provided by the Advisors. In light
of these factors and the other facts and circumstances applicable to the Fund,
the Board concluded that the fees paid and level of expenses incurred by the
Fund under its Agreements support a conclusion that the Fund's Agreements should
be renewed.
D. Profitability of BlackRock: The Board also considered BlackRock's
profitability in conjunction with its review of fees. The Board reviewed
BlackRock's profitability with respect to the Fund Complex and other fund
complexes managed by the Advisors. In reviewing profitability, the Board
recognized that one of the most difficult issues in determining profitability is
establishing a method of allocating expenses. The Board also reviewed
BlackRock's assumptions and methodology of allocating expenses, noting the
inherent limitations in allocating costs among various advisory products. The
Board also recognized that individual fund or product line profitability of
other advisors is generally not publicly available.
The Board recognized that profitability may be affected by numerous factors
including, among other things, the types of funds managed, expense allocations
and business mix, and therefore comparability of profitability is somewhat
limited. Nevertheless, to the extent available, the Board considered BlackRock's
operating margin compared to the operating margin estimated by BlackRock for a
leading investment management firm whose operations consist primarily of
advising closed-end funds. The comparison indicated that BlackRock's operating
margin was approximately the same as the operating margin of such firm.
In evaluating the reasonableness of the Advisors' compensation, the Board also
considered any other revenues paid to the Advisors, including partial
reimbursements paid to the Advisors for certain non-investment advisory
services. The Board noted that these payments were less than the Advisors' costs
for providing these services, if applicable. The Board also considered indirect
benefits (such as soft dollar arrangements) that the Advisors and their
affiliates are expected to receive, which are attributable to their management
of the Fund.
The Board concluded that BlackRock's profitability, in light of all the other
facts and circumstances applicable to the Fund, supports a conclusion that the
Fund's Agreements should be renewed.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008 19
================================================================================
Disclosure of Investment Advisory Agreement and Subadvisory Agreement
(concluded)
E. Economies of Scale: In reviewing the Fund's fees and expenses, the Board
examined the potential benefits of economies of scale, and whether any economies
of scale should be reflected in the Fund's fee structure, for example through
the use of breakpoints for the Fund or the Fund Complex. In this regard, the
Board reviewed information provided by BlackRock, noting that most closed-end
fund complexes do not have fund-level breakpoints because closed-end funds
generally do not experience substantial growth after their initial public
offering and each fund is managed independently consistent with its own
investment objectives. The Board noted that only three closed-end funds in the
Fund Complex have breakpoints in their fee structures. Information provided by
Lipper also revealed that only one closed-end fund complex used a complex-level
breakpoint structure.
F. Other Factors: In evaluating fees, the Board also considered indirect
benefits or profits the Advisors or their affiliates may receive as a result of
their relationships with the Fund ("fall-out benefits"). The Directors,
including the Independent Directors, considered the intangible benefits that
accrue to the Advisors and their affiliates by virtue of their relationships
with the Fund, including potential benefits accruing to the Advisors and their
affiliates as a result of participating in offerings of the Fund's shares,
potentially stronger relationships with members of the broker-dealer community,
increased name recognition of the Advisors and their affiliates, enhanced sales
of other investment funds and products sponsored by the Advisors and their
affiliates and increased assets under management which may increase the benefits
realized by the Advisors from soft dollar arrangements with broker-dealers. The
Board also considered the unquantifiable nature of these potential benefits.
II. Conclusion with Respect to the Agreements
In reviewing the Agreements, the Directors did not identify any single factor
discussed above as all-important or controlling and different Directors may have
attributed different weights to the various factors considered. The Directors,
including the Independent Directors, unanimously determined that each of the
factors described above, in light of all the other factors and all of the facts
and circumstances applicable to the Fund, was acceptable for the Fund and
supported the Directors' conclusion that the terms of each Agreement were fair
and reasonable, that the Fund's fees are reasonable in light of the services
provided to the Fund and that each Agreement should be approved.
20 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008
================================================================================
Officers and Directors
Richard E. Cavanagh, Chairman of the Board and Director
Karen P. Robards, Vice Chair of the Board, Chair of Audit Committee and Director
G. Nicholas Beckwith, III, Director
Richard S. Davis, Director
Kent Dixon, Director
Frank J. Fabozzi, Director
Kathleen F. Feldstein, Director
James T. Flynn, Director
Henry Gabbay, Director
Jerrold B. Harris, Director
R. Glenn Hubbard, Director
W. Carl Kester, Director
Robert S. Salomon, Jr., Director
Donald C. Burke, Fund President and Chief Executive Officer
Anne F. Ackerley, Vice President
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer
Brian P. Kindelan, Chief Compliance Officer of the Fund
Howard Surloff, Secretary
Custodian
The Bank of New York Mellon
New York, NY 10286
Transfer Agent
Common Stock and Preferred Stock:
BNY Mellon Shareowner Services
Jersey City, NJ 07310
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
================================================================================
Additional Information
--------------------------------------------------------------------------------
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 website 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 website.
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 Advisors, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that not all
investment advisors, banks or brokerages may offer this service.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008 21
================================================================================
Additional Information (continued)
--------------------------------------------------------------------------------
General Information
--------------------------------------------------------------------------------
The Fund will mail only one copy of shareholder documents, including annual and
semi-annual reports and proxy statements, to shareholders with multiple accounts
at the same address. This practice is commonly called "householding" and it is
intended to reduce expenses and eliminate duplicate mailings of shareholder
documents. Mailings of your shareholder documents may be householded
indefinitely unless you instruct us otherwise. If you do not want the mailing of
these documents to be combined with those for other members of your household,
please contact the Fund at (800) 441-7762.
Quarterly performance, semi-annual and annual reports and other information
regarding the Fund may be found on BlackRock's website, which can be accessed at
http://www.blackrock.com. This reference to BlackRock's website is intended to
allow investors public access to information regarding the Fund and does not,
and is not intended to, incorporate BlackRock's website into this report.
--------------------------------------------------------------------------------
Deposit Securities
--------------------------------------------------------------------------------
Effective May 30, 2008, following approval by the Fund's Board and the
applicable ratings agencies, the definition of "Deposited Securities" in the
Fund's Articles Supplementary was amended in order to facilitate the redemption
of the Fund's Preferred Stock. The following phrase was added to the definition
of "Deposit Securities" found in the Fund's Articles Supplementary:
; provided, however, that solely in connection with any redemption of
AMPS, the term Deposit Securities shall include (i) any committed
financing pursuant to a credit agreement, reverse repurchase agreement
facility or similar credit arrangement, in each case which makes available
to the Corporation, no later than the day preceding the applicable
redemption date, cash in an amount not less than the aggregate amount due
to Holders by reason of the redemption of their shares of AMPS on such
redemption date; and (ii) cash amounts due and payable to the Corporation
out of a sale of its securities if such cash amount is not less than the
aggregate amount due to Holders by reason of the redemption of their
shares of AMPS on such redemption date and such sale will be settled not
later than the day preceding the applicable redemption date.
--------------------------------------------------------------------------------
Section 19 Notice
--------------------------------------------------------------------------------
The amounts and sources of distributions reported are only estimates and are not
being provided for tax reporting purposes. The actual amounts and source for tax
reporting purposes will depend upon the Fund's investment experience during the
remainder of its fiscal year and may be subject to changes based on the tax
regulations. The Fund will send you a Form 1099-DIV for the calendar year that
will tell you how to report these distributions for federal income tax purposes.
-----------------------------------------------------------------------------------------------------------------------------------
Total Fiscal Year to Date Percentage of Fiscal Year to Date
Cumulative Distributions by Character Cumulative Distributions by Character
---------------------------------------------- -------------------------------------------
Net Net
Net Realized Return Total Per Net Realized Return Total Per
Investment Capital of Common Investment Capital of Common
Income Gains Capital Share Income Gains Capital Share
-----------------------------------------------------------------------------------------------------------------------------------
BlackRock MuniYield New Jersey
Fund, Inc. $ 0.348 $ 0.005652 -- $ 0.353652 98% 2% -- 100%
-----------------------------------------------------------------------------------------------------------------------------------
22 BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008
================================================================================
Additional Information (concluded)
--------------------------------------------------------------------------------
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 websites.
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.
--------------------------------------------------------------------------------
Proxy Voting Policy
--------------------------------------------------------------------------------
The Board of Directors of the Fund has delegated the voting of proxies for Fund
securities to the Investment Adviser pursuant to the Investment Adviser's proxy
voting guidelines. Under these guidelines, the Investment Adviser will vote
proxies related to Fund securities in the best interests of the Fund and its
stockholders. From time to time, a vote may present a conflict between the
interests of the Fund's stockholders, on the one hand, and those of the
Investment Adviser, or any affiliated person of the Fund or the Investment
Adviser, on the other. In such event, provided that the Investment Adviser's
Equity Investment Policy Oversight Committee, or a sub-committee thereof (the
"Committee") is aware of the real or potential conflict or material non-routine
matter and if the Committee does not reasonably believe it is able to follow its
general voting guidelines (or if the particular proxy matter is not addressed in
the guidelines) and vote impartially, the Committee may retain an independent
fiduciary to advise the Committee on how to vote or to cast votes on behalf of
the Investment Adviser's clients. If the Investment Adviser determines not to
retain an independent fiduciary, or does not desire to follow the advice of such
independent fiduciary, the Committee shall determine how to vote the proxy after
consulting with the Investment Adviser's Portfolio Management Group and/or the
Investment Adviser's Legal and Compliance Department and concluding that the
vote cast is in its client's best interest notwithstanding the conflict.
Information on how the Fund voted proxies relating to portfolio securities
during the most recent 12-month period ended June 30 is available without
charge, (i) at www.blackrock.com and (ii) on the SEC's website at
http://www.sec.gov.
BLACKROCK MUNIYIELD NEW JERSEY FUND, INC. MAY 31, 2008 23
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This report is transmitted to shareholders only. 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,
which 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, currently set at the maximum reset rate as a result of failed
auctions, 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 (800) 441-7762; (2) at
www.blackrock.com; and (3) on the Securities and Exchange Commission's website
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 upon request and without charge (1) at
www.blackrock.com or by calling (800) 441-7762 and (2) on the Securities and
Exchange Commission's website at http://www.sec.gov.
BlackRock MuniYield New Jersey Fund, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
BLACKROCK
#16381-5/08
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-annual
report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable to this
semi-annual report
Item 6 - Investments
(a) The registrant's Schedule of Investments is included as part of
the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual
period covered since the previous Form N-CSR filing.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable to this semi-annual
report
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
As of May 31, 2008
(a) Not Applicable
(b) Effective March 1, 2008, Fred K. Stuebe joined the Registrant's
portfolio management team. Messrs. Theodore R. Jaeckel, Jr. and
Walter O'Connor, previously identified in response to paragraph (a)
of this item in the Registrant's most recent annual report, continue
as members of the Registrant's portfolio management team.
(a)(1) BlackRock MuniYield New Jersey Fund, Inc. is managed by a team
of investment professionals. As of March 1, 2008, the lead members of
the team are Fred K. Stuebe, Director at BlackRock, Theodore R.
Jaeckel, Jr., CFA, Managing Director at BlackRock and Walter
O'Connor, Managing Director at BlackRock. Each is a member of
BlackRock's municipal tax-exempt management group. Mr. Jaeckel, Mr.
O'Connor and Mr. Stuebe are responsible for the day-to-day management
of the Fund's portfolio, including setting the Fund's overall
investment strategy, overseeing the management of the Fund and/or
selecting the Fund's investments. Messrs. Jaeckel and O'Connor have
been members of the Fund's management team since 2006 and Mr. Stuebe
has been the Fund's portfolio manager since 2008.
Mr. Stuebe joined BlackRock in 2006. Prior to joining BlackRock, he
was a Director (Municipal Tax-Exempt Fund Management) of MLIM from
2000 to 2006. He has 25 years of experience investing in Municipal
Bonds as a portfolio manager on behalf of registered investment
companies. He has been a portfolio manager with BlackRock or MLIM
since 1989.
(a)(2) As of May 31, 2008:
-----------------------------------------------------------------------------------------------------------
(iii) Number of Other Accounts and
(ii) Number of Other Accounts Managed Assets for Which Advisory Fee is
and Assets by Account Type Performance-Based
-----------------------------------------------------------------------------------------------------------
Other Other
(i) Name of Registered Other Pooled Registered Other Pooled
Portfolio Investment Investment Other Investment Investment Other
Manager Companies Vehicles Accounts Companies Vehicles Accounts
-----------------------------------------------------------------------------------------------------------
Fred K. Stuebe 10 0 0 0 0 0
-----------------------------------------------------------------------------------------------------------
$3.21 Billion $0 $0 $0 $0 $0
-----------------------------------------------------------------------------------------------------------
(iv) Potential Material Conflicts of Interest
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 for the Funds. 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
or 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 a Fund. In this regard, it
should be noted that Mr. Jaeckel currently manages certain accounts
that are subject to performance fees. In addition, Mr. Jaeckel
assists 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 May 31, 2008:
Portfolio Manager Compensation Overview
BlackRock's financial arrangements with its portfolio managers, its
competitive compensation and its career path emphasis at all levels
reflect the value senior management places on key resources.
Compensation may include a variety of components and may vary from
year to year based on a number of factors. The principal components
of compensation include a base salary, a performance-based
discretionary bonus, participation in various benefits programs and
one or more of the incentive compensation programs established by
BlackRock such as its Long-Term Retention and Incentive Plan.
Base compensation. Generally, portfolio managers receive base
compensation based on their seniority and/or their position with the
firm. Senior portfolio managers who perform additional management
functions within the portfolio management group or within BlackRock
may receive additional compensation for serving in these other
capacities.
Discretionary Incentive Compensation
Discretionary incentive compensation is a function of several
components: the performance of BlackRock, Inc., the performance of
the portfolio manager's group within BlackRock, the investment
performance, including risk-adjusted returns, of the firm's assets
under management or supervision by that portfolio manager relative to
predetermined benchmarks, and the individual's seniority, role within
the portfolio management team, teamwork and contribution to the
overall performance of these portfolios and BlackRock. In most cases,
including for the portfolio managers of the Fund, these benchmarks
are the same as the benchmark or benchmarks against which the
performance of the Fund or other accounts managed by the portfolio
managers are measured. BlackRock's Chief Investment Officers
determine the benchmarks against which the performance of funds and
other accounts managed by each portfolio manager is compared and the
period of time over which performance is evaluated. With respect to
the portfolio managers, such benchmarks for the Fund include a
combination of market-based indices (e.g., Lehman Brothers Municipal
Bond Index), certain customized indices and certain fund industry
peer groups.
BlackRock's Chief Investment Officers make a subjective determination
with respect to the portfolio managers' compensation based on the
performance of the funds and other accounts managed by each portfolio
manager relative to the various benchmarks noted above. Performance
is measured on both a pre-tax and after-tax basis over various time
periods including 1, 3, 5 and 10-year periods, as applicable.
Distribution of Discretionary Incentive Compensation
Discretionary incentive compensation is distributed to portfolio
managers in a combination of cash and BlackRock, Inc. restricted
stock units which vest ratably over a number of years. The BlackRock,
Inc. restricted stock units, if properly vested, will be settled in
BlackRock, Inc. common stock. Typically, the cash bonus, when
combined with base salary, represents more than 60% of total
compensation for the portfolio managers. Paying a portion of annual
bonuses in stock puts compensation earned by a portfolio manager for
a given year "at risk" based on the BlackRock's ability to sustain
and improve its performance over future periods.
Long-Term Retention and Incentive Plan ("LTIP") --The LTIP
is a long-term incentive plan that seeks to reward certain key
employees. Beginning in 2006, awards are granted under the LTIP in
the form of BlackRock, Inc. restricted stock units that, if properly
vested and subject to the attainment of certain performance goals,
will be settled in BlackRock, Inc. common stock. Each portfolio
manager except Mr. Stuebe has received awards under the LTIP.
Deferred Compensation Program --A portion of the
compensation paid to eligible BlackRock employees may be voluntarily
deferred into an account that tracks the performance of certain of
the firm's investment products. Each participant in the deferred
compensation program is permitted to allocate his deferred amounts
among the various investment options. Each portfolio manager has
participated in the deferred compensation program.
Other compensation benefits. In addition to base compensation and
discretionary incentive compensation, portfolio managers may be
eligible to receive or participate in one or more of the following:
Incentive Savings Plans -- 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. BlackRock contributions follow the investment direction set by
participants for their own contributions or, absent employee
investment direction, are invested into a balanced portfolio. 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 May 31, 2008, Mr.
Stuebe did not beneficially own any stock issued by the Fund.
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating and Governance Committee will consider
nominees to the board of directors 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 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 - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the registrant has duly
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
BlackRock MuniYield New Jersey Fund, Inc.
By: /s/ Donald C. Burke
-------------------------------
Donald C. Burke
Chief Executive Officer of
BlackRock MuniYield New Jersey Fund, Inc.
Date: July 18, 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: July 18, 2008
By: /s/ Neal J. Andrews
-------------------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield New Jersey Fund, Inc.
Date: July 18, 2008