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 811-21348
Name of Fund: Muni Intermediate Duration Fund, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, Muni Intermediate Duration Fund, Inc., 800 Scudders Mill Road,
Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton,
NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 05/31/06
Date of reporting period: 06/01/05 - 11/30/05
Item 1 - Report to Stockholders
Muni Intermediate Duration Fund, Inc.
Muni New York Intermediate Duration Fund, Inc.
Semi-Annual Reports
November 30, 2005
(BULL LOGO) Merrill Lynch Investment Managers
www.mlim.ml.com
Mercury Advisors
A Division of Merrill Lynch Investment Managers
www.mercury.ml.com
These reports, including the financial information herein, are transmitted
to shareholders of Muni Intermediate Duration Fund, Inc. and Muni New York
Intermediate Duration Fund, Inc. for their information. This is not a
prospectus. The Funds have leveraged their Common Stock and intend to remain
leveraged by issuing Preferred Stock to provide the Common Stock shareholders
with potentially higher rates of return. Leverage creates risks for Common
Stock shareholders, including the likelihood of greater volatility of net
asset value and market price of shares of the Common Stock, and the risk that
fluctuations in the short-term dividend rates of the Preferred Stock may
affect the yield to Common Stock shareholders. Past performance results shown
in these reports should not be considered a representation of future
performance. Statements and other information herein are as dated and are
subject to change.
A description of the policies and procedures that the Funds use to determine
how to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free 1-800-MER-FUND (1-800-637-3863);
(2) at www.mutualfunds.ml.com; and (3) on the Securities and Exchange
Commission's Web site at http://www.sec.gov. Information about how the
Funds vote proxies relating to securities held in the Funds' portfolios
during the most recent 12-month period ended June 30 is available (1) at
www.mutualfunds.ml.com; and (2) on the Securities and Exchange Commission's
Web site at http://www.sec.gov.
Muni Intermediate Duration Fund, Inc.
Muni New York Intermediate Duration Fund, Inc.
Box 9011
Princeton, NJ 08543-9011
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Muni Intermediate Duration Fund, Inc.
Muni New York Intermediate Duration Fund, Inc.
The Benefits and Risks of Leveraging
The Funds utilize leveraging to seek to enhance the yield and net asset value
of their Common Stock. However, these objectives cannot be achieved in all
interest rate environments. To leverage, each Fund issues Preferred Stock,
which pays dividends at prevailing short-term interest rates, and invests the
proceeds in long-term municipal bonds. The interest earned on these
investments, net of dividends to Preferred Stock, is paid to Common Stock
shareholders in the form of dividends, and the value of these portfolio
holdings is reflected in the per share net asset value of each Fund's Common
Stock. However, in order to benefit Common Stock shareholders, the yield curve
must be positively sloped; that is, short-term interest rates must be lower
than long-term interest rates. At the same time, a period of generally
declining interest rates will benefit Common Stock shareholders. If either of
these conditions change, then the risks of leveraging will begin to outweigh
the benefits.
To illustrate these concepts, assume a fund's Common Stock capitalization
of $100 million and the issuance of Preferred Stock for an additional
$50 million, creating a total value of $150 million available for investment
in long-term municipal bonds. If prevailing short-term interest rates are
approximately 3% and long-term interest rates are approximately 6%, the
yield curve has a strongly positive slope. The fund pays dividends on the
$50 million of Preferred Stock based on the lower short-term interest rates.
At the same time, the fund's total portfolio of $150 million earns the income
based on long-term interest rates.
In this case, the dividends paid to Preferred Stock shareholders are
significantly lower than the income earned on the fund's long-term
investments, and therefore the Common Stock shareholders are the beneficiaries
of the incremental yield. However, if short-term interest rates rise,
narrowing the differential between short-term and long-term interest rates,
the incremental yield pickup on the Common Stock will be reduced or eliminated
completely. At the same time, the market value of the fund's Common Stock
(that is, its price as listed on the New York Stock Exchange) may, as a
result, decline. Furthermore, if long-term interest rates rise, the Common
Stock's net asset value will reflect the full decline in the price of the
portfolio's investments, since the value of the fund's Preferred Stock does
not fluctuate. In addition to the decline in net asset value, the market value
of the fund's Common Stock may also decline.
As a part of its investment strategy, the Funds may invest in certain
securities whose potential income return is inversely related to changes in a
floating interest rate ("inverse floaters"). In general, income on inverse
floaters will decrease when short-term interest rates increase and increase
when short-term interest rates decrease. Investments in inverse floaters may
be characterized as derivative securities and may subject the Funds to the
risks of reduced or eliminated interest payments and losses of invested
principal. In addition, inverse floaters have the effect of providing
investment leverage and, as a result, the market value of such securities will
generally be more volatile than that of fixed-rate, tax-exempt securities. To
the extent the Funds invest in inverse floaters, the market value of each
Fund's portfolio and the net asset value of each Fund's shares may also be
more volatile than if the Funds did not invest in such securities. As of
November 30, 2005, the percentage of Muni Intermediate Duration Fund, Inc.'s
total net assets invested in inverse floaters was 3.70%, before the deduction
of Preferred Stock. As of November 30, 2005, none of Muni New York
Intermediate Duration Fund, Inc.'s total net assets was invested in inverse
floaters.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
A Letter From the President
Dear Shareholder
As the financial markets continued to muddle their way through 2005, the
Federal Reserve Board (the Fed) advanced its monetary tightening campaign full
steam ahead. The 13th consecutive interest rate hike since June 2004 came on
December 13, bringing the target federal funds rate to 4.25%. Oil prices,
after reaching record highs on more than one occasion over the past several
months, moderated somewhat by period-end, as did inflation expectations.
Against this backdrop, most major market indexes managed to post positive
results for the current reporting period:
Total Returns as of November 30, 2005 6-month 12-month
U.S. equities (Standard & Poor's 500 Index) + 5.88% + 8.44%
Small-cap U.S. equities (Russell 2000 Index) +10.47 + 8.14
International equities (MSCI Europe Australasia Far East Index) +11.23 +13.25
Fixed income (Lehman Brothers Aggregate Bond Index) - 0.48 + 2.40
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 0.36 + 3.88
High yield bonds (Credit Suisse First Boston High Yield Index) + 2.33 + 2.94
With the kick-off of the holiday shopping season, attention turned to the
consumer, who has remained resilient even amid high energy prices and rising
interest rates. Some observers surmise that a slowdown in residential real
estate may ultimately contribute to a weakening in consumer spending. At this
juncture, the outlook remains unclear.
Equity markets moved sideways for much of 2005, notwithstanding a strong rally
in the middle of the fourth quarter. Corporate earnings have continued to
surprise on the upside and company profit margins remain high, as does
productivity. On the other hand, high energy prices, more Fed interest rate
hikes, a consumer slowdown and/or the potential for slower earnings growth
pose the greatest risks to U.S. stocks. Internationally, many markets have
benefited from strong economic statistics, trade surpluses and solid finances.
Emerging markets have had a particularly strong year, partly reflecting high
economic growth rates and positive financial reforms.
The bond market continued to be characterized by a flattening yield curve. The
difference between the two-year and 10-year Treasury yield was just seven
basis points (.07%) at period-end, compared to 40 basis points six months ago
and 134 basis points 12 months ago.
Navigating the financial markets can be a challenge, particularly during
uncertain times. With that in mind, we invite you to visit our online magazine
at www.mlim.ml.com/shareholdermagazine. Shareholder is a publication designed
to provide insights on investing and timely "food for thought" for investors.
We are pleased to make the magazine available online, where we are able to
expand our reach in terms of content and readership.
As always, we thank you for trusting Merrill Lynch Investment Managers with
your investment assets, and we look forward to serving you in the months and
years ahead.
Sincerely,
(Robert C. Doll, Jr.)
Robert C. Doll, Jr.
President and Director
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
A Discussion With Your Funds' Portfolio Managers
The Funds remained focused on generating an attractive level of tax-exempt
income for shareholders, looking for income-enhancing opportunities as market
rates rose late in the period.
Describe the recent market environment relative to municipal bonds.
Over the past six months, long-term bond yields generally rose. Bond prices,
which move opposite of yields, fell as investors focused on inflationary
pressures, especially higher energy costs in the wake of the Gulf Coast
hurricanes. A strengthening U.S. economy, which grew at a faster-
than-expected 4.3% rate in the third quarter of 2005, added further to the
inflationary concerns.
The Federal Reserve Board (the Fed) continued to raise short-term interest
rates at each of its meetings during the period, lifting the federal funds
target rate to 4% by period-end (and to 4.25% on December 13). With short-term
interest rates increasing more than long-term interest rates, the yield curve
continued to flatten.
During the past six months, 10-year Treasury note yields rose 49 basis points
(.49%) to 4.49%, while 30-year U.S. Treasury yields rose 37 basis points to
4.69%. Tax-exempt bond yields exhibited a similar pattern during the period.
According to Municipal Market Data, the yield on AAA-rated issues maturing in
30 years increased 29 basis points to 4.55%, while the yield on AAA-rated
issues maturing in 10 years rose 38 basis points to 3.87%.
Historically low nominal tax-exempt bond yields continued to encourage
municipalities to issue new debt and refund outstanding, higher-couponed
issues. During the past six months, almost $207 billion in new municipal bonds
was underwritten, a 16.8% increase compared to issuance during the same six
months of 2004. Year-to-date through November 30, the volume of refunding
issues increased by more than 44% on a year-over-year basis. Refunding issues
were heavily weighted in the 10-year - 20-year maturity range, putting pressure
on intermediate tax-exempt bond yields while supporting longer-term bond
prices.
Investor demand for municipal product remained positive during most of the
period. The most current statistics from the Investment Company Institute
indicate that, year-to-date through October 2005, net new cash flows into long-
term municipal bond funds exceeded $6.9 billion - a significant improvement
from the $12.7 billion net outflow seen during the same period in 2004. Solid
investor demand enabled municipal bonds to perform generally in line with
their taxable counterparts, reversing some of their recent underperformance.
We believe that attractive yield ratios relative to taxable bonds should
continue to attract both traditional and non-traditional investors to the
municipal marketplace, especially if municipal bond issuance remains
manageable.
The communities shattered by Hurricanes Katrina and Rita will require
extensive reconstruction. It is too early, however, to estimate the amount of
tax-exempt debt that may be required to finance these efforts or assess the
overall impact on the municipal market. However, much of the rebuilding is
likely to be funded through federal loans and grants, and the reconstruction
will likely be spread over a number of years. Consequently, any new municipal
bond issuance prompted by the hurricanes is not likely to disrupt the tax-
exempt market in the near future.
Muni Intermediate Duration Fund, Inc.
How did the Fund perform during the period?
For the six-month period ended November 30, 2005, the Common Stock of Muni
Intermediate Duration Fund, Inc. had net annualized yields of 5.66% and 6.17%,
based on a period-end per share net asset value of $15.22 and a per share
market price of $13.96, respectively, and $.432 per share income dividends.
Over the same period, the total investment return on the Fund's Common Stock
was +1.13%, based on a change in per share net asset value from $15.51 to
$15.22, and assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, exceeded the +.58% average
return of the Lipper General Municipal Debt Funds (Leveraged) category for the
six-month period. (Funds in this Lipper category invest primarily in municipal
debt issues rated in the top four credit-rating categories. These funds can be
leveraged via use of debt, preferred equity and/or reverse repurchase
agreements.)
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
The Fund's outperformance can be attributed to a modestly overweighted
exposure to spread product - lower-quality, higher-yielding municipal bonds,
which benefited as credit spreads narrowed during the period. The high yield
municipal market continued to perform well on the back of strong demand, as
investors, looking for better yields in a low interest rate environment,
poured cash into high yield mutual funds. The Fund benefited particularly from
issues in the special tax (land secured), senior living and toll road sectors,
all of which saw gains in an otherwise down market. The Fund also benefited
from price appreciation of its holdings issued by Mississippi Systems Energy,
a subsidiary of Entergy Corporation, which was downgraded after Hurricane
Katrina struck the Gulf Coast region. Ironically, the credit downgrade caused
our bonds to appreciate because it made it less probable that the securities'
call feature would be exercised. Of final note, the Fund's underweight stance
in airline bonds was a positive. We had no exposure to either Delta Air Lines,
Inc. or Northwest Airlines, both of which declared bankruptcy during the
period, in part because of the impact of higher fuel costs.
For a description of the Fund's total investment return based on a change in
the per share market value of the Fund's Common Stock (as measured by the
trading price of the Fund's shares on the New York Stock Exchange), and
assuming reinvestment of dividends, please refer to the Financial Highlights
section of this report. As a closed-end fund, the Fund's shares may trade in
the secondary market at a premium or discount to the Fund's net asset value.
As a result, total investment returns based on changes in the market value of
the Fund's Common Stock may vary significantly from total investment returns
based on changes in the Fund's net asset value.
What changes were made to the portfolio during the period?
Portfolio activity concentrated on uncovering attractive relative value in the
municipal marketplace. Given the prospect of continued yield curve flattening,
we reduced our exposure to bonds with maturities of 10 years - 18 years while
adding to our holdings in bonds longer than 25 years. We also maintained our
strategy of purchasing bonds of issuers we believed were more likely to
defease their existing debt to help close their budget gaps. When bonds are
defeased, it typically means that the securities are retired at their first
call date, enabling the bonds to appreciate significantly. The states of
California and Massachusetts are two issuers who have been aggressive in
implementing this strategy. Purchases during the period also included higher-
coupon bonds with shorter call dates, which we believed offered attractive
relative yields and the potential for future outperformance.
For the six months ended November 30, 2005, the average yield for the Fund's
Auction Market Preferred Stock (AMPS) was 1.78% for Series M7; 1.80% for
Series T7; 1.83% for Series W7; 1.92% for Series TH7; 1.74% for Series F7; and
2.41% for Series TH28. The Fed's interest rate hikes clearly are having an
impact on the Fund's borrowing costs. The Fed raised the short-term interest
rate target 100 basis points during the six-month period (and once more on
December 13). Still, the tax-exempt yield curve remained relatively steep and
continued to generate an income benefit to the holders of Common Stock from
the leveraging of Preferred Stock. However, should the spread between short-
term and long-term interest rates narrow, the benefits of leveraging will
decline and, as a result, reduce the yield on the Fund's Common Stock. At the
end of the period, the Fund's leverage amount, due to AMPS, was 35.6% of total
net assets, before the deduction of Preferred Stock. (For a more complete
explanation of the benefits and risks of leveraging, see page 2 of this report
to shareholders.)
How would you characterize the Fund's position at the close of the period?
Relative to the broader municipal market, we maintained a neutral level of
interest rate risk but are positioned for the continued flattening of the
yield curve. Having reduced some of our more volatile corporate-backed bonds,
the Fund has a more neutral exposure to high yield spread product. With higher
interest rates and our outlook for slower economic activity, however, we will
be on the lookout for opportunities to slightly increase the Fund's duration.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
A Discussion With Your Funds' Portfolio Managers (concluded)
Muni New York Intermediate Duration Fund, Inc.
Describe conditions in the State of New York.
The State of New York maintains credit ratings of A1, AA and AA- from Moody's,
Standard & Poor's (S&P) and Fitch, respectively. Moody's assigns a positive
outlook to the state's rating, while Fitch and S&P carry stable outlooks. The
state economy continues to improve and revenue collections are increasing.
State tax collections remain largely dependent on the performance of the
financial sector, but tax receipts for fiscal year 2005 (ended March 31, 2005)
were 15% above the prior fiscal year. Due to surging tax collections,
particularly income taxes, the fiscal year 2005 operating surplus totaled
$1.2 billion.
For the first time in more than 20 years, New York lawmakers approved a budget
on time. The fiscal year 2006 budget calls for $105 billion in spending and
forecasts a 5% increase in tax receipts for the fiscal year (which began April
1, 2005). Aided by this revenue growth, the enacted budget includes most of
the governor's original proposals for closing an estimated $4 billion deficit.
However, this does not factor in a lawsuit won by the Campaign for Fiscal
Equity that could add up to $2 billion in annual state education spending.
Crafting balanced budgets beyond fiscal year 2006 will present a challenge
given political resistance to additional tax hikes and cuts in popular
programs, as well as pressure from local governments for pension and Medicaid
relief, and new education spending.
Current employment numbers show a 1% increase from year-ago levels. New York
ranks fifth-highest among all states in per capita income. Modest income
growth through the remainder of 2005 would boost personal income tax receipts,
which account for roughly 38% of general fund receipts.
How did the Fund perform during the period?
For the six-month period ended November 30, 2005, the Common Stock of Muni New
York Intermediate Duration Fund, Inc. had net annualized yields of 4.90% and
5.56%, based on a period-end per share net asset value of $14.66 and a per
share market price of $12.92, respectively, and $.360 per share income
dividends. Over the same period, the total investment return on the Fund's
Common Stock was +.02%, based on a change in per share net asset value from
$15.05 to $14.66, and assuming reinvestment of all distributions.
The Fund's total return, based on net asset value, lagged the +.86% average
return of the Lipper New York Municipal Debt Funds category for the six-month
period. (Funds in this Lipper category limit their investment to securities
exempt from taxation in New York or a city in New York.) Notably, the Lipper
category consists primarily of funds with the ability to invest in municipal
issues with longer durations, whereas our portfolio is limited to bonds in the
intermediate duration range. This put the Fund at a disadvantage relative to
the Lipper average as the yield curve continued to flatten, causing shorter-
duration and intermediate-duration bonds to underperform longer-dated
municipal investments.
In addition, airline-related debt, which had benefited Fund performance in the
prior period, detracted from returns over the past six months. We continue to
hold a core position in airline-related debt issues, as they are a significant
contributor to the yield of the portfolio, although we are monitoring our
exposure carefully given the inherent volatility in this sector. Also
hindering performance was our exposure to Puerto Rico paper, which we had
increased during the period. Although these bonds underperformed the broader
market over the past six months due to budgetary concerns in Puerto Rico, they
continue to offer both good liquidity and positive incremental yield
characteristics. For these reasons, coupled with our expectation for a
positive resolution to the budgetary concerns, we would view further weakness
in Puerto Rico as a buying opportunity.
We continued to capitalize on the flattening yield curve by moving into longer-
dated securities as opportunities presented themselves, while remaining within
our intermediate investment parameters. This strategy helped the Fund's total
return as the price of longer-dated bonds increased.
For a description of the Fund's total investment return based on a change in
the per share market value of the Fund's Common Stock (as measured by the
trading price of the Fund's shares on the New York Stock Exchange), and
assuming reinvestment of dividends, please refer to the Financial Highlights
section of this report. As a closed-end fund, the Fund's shares may trade in
the secondary market at a premium or discount to the Fund's net asset value.
As a result, total investment returns based on changes in the market value of
the Fund's Common Stock may vary significantly from total investment returns
based on changes in the Fund's net asset value.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
What changes were made to the portfolio during the period?
We entered the period defensively positioned and moved toward neutral as the
period progressed. Most activity in the portfolio occurred in the latter part
of the six-month period as rates increased all along the yield curve. This
provided an opportunity to restructure a portion of the portfolio as more
attractively structured, higher-yielding alternatives became available. In
general, our strategy was to roll out of shorter, more seasoned holdings
(generally in the five-year - 10-year range) into longer-dated bonds
(generally in the 25-year range) that we believe could contribute more
attractive yield and total return potential.
As detailed in the Fund's prospectus, 80% of the bonds we hold in the
portfolio must have a duration between three years and 10 years. Because the
yield curve measures maturity, not duration, we are able to add bonds with
longer maturities without necessarily extending duration. This is accomplished
through the purchase of cushion bonds, which have longer maturities but are
priced and traded at their relatively short call date (generally 10 years or
less). We believe this strategy will benefit Fund performance if the yield
curve continues to flatten, as expected, and should allow the Fund to
more closely match the maturity profile of its Lipper peers. Overall, the
portfolio's average maturity was extended by a little more than a year, for
an average maturity just shy of 14 years at period-end.
For the six months ended November 30, 2005, the average yield for the Fund's
Auction Market Preferred Stock (AMPS) was 2.23%. The Fed's interest rate hikes
clearly are having an impact on the Fund's borrowing costs. The Fed raised the
short-term interest rate target 100 basis points during the six-month period
(and once more on December 13). Still, the tax-exempt yield curve remained
relatively steep and continued to generate an income benefit to the holders of
Common Stock from the leveraging of Preferred Stock. However, should the
spread between short-term and long-term interest rates narrow, the benefits of
leveraging will decline and, as a result, reduce the yield on the Fund's
Common Stock. At the end of the period, the Fund's leverage amount, due to
AMPS, was 33.45% of total net assets, before the deduction of Preferred Stock.
(For a more complete explanation of the benefits and risks of leveraging, see
page 2 of this report to shareholders.)
How would you characterize the Fund's position at the close of the period?
We ended the period with a fairly neutral market outlook. At its most recent
meeting, the Fed modified its language slightly, removing the long-standing
reference to monetary policy that it deems "accommodative." This represented
the first hint that the measured monetary tightening campaign may be nearing
an end. Until it does, we anticipate continued volatility as investors adjust
their assumptions about the markets.
Against this backdrop, we will continue to take advantage of the volatility
and higher rates in an effort to generate a competitive yield for our
shareholders. One benefit of the recent upturn in long-term interest rates is
that it has allowed us to restructure the portfolio in terms of coupon, call
date and maturity without having a negative impact on yield, and in certain
cases, with a favorable impact on yield. Over time, we believe this
restructuring should translate into enhanced total return performance.
Robert A. DiMella, CFA
Vice President and Portfolio Manager
Muni Intermediate Duration Fund, Inc.
Timothy T. Browse, CFA
Vice President and Portfolio Manager
Muni New York Intermediate Duration Fund, Inc.
December 19, 2005
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Portfolio Information
Quality Profiles as of November 30, 2005
Percent of
Muni Intermediate Duration Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 33.2%
AA/Aa 4.5
A/A 19.4
BBB/Baa 19.4
BB/Ba 6.7
B/B 0.6
CCC/Caa 1.4
NR (Not Rated) 14.3
Other* 0.5
* Includes portfolio holdings in variable rate demand notes.
Muni New York Intermediate Percent of
Duration Fund, Inc. Total
By S&P/Moody's Rating Investments
AAA/Aaa 41.1%
AA/Aa 12.8
A/A 13.0
BBB/Baa 12.1
BB/Ba 7.4
CCC/Caa 2.2
NR (Not Rated) 9.6
Other* 1.8
* Includes portfolio holdings in short-term investments.
Swap Agreements
The Funds may invest in swap agreements, which are over-the-counter contracts
in which one party agrees to make periodic payments based on the change in
market value of a specified bond, basket of bonds, or index in return for
periodic payments based on a fixed or variable interest rate or the change in
market value of a different bond, basket of bonds or index. Swap agreements
may be used to obtain exposure to a bond or market without owning or taking
physical custody of securities. Swap agreements involve the risk that the
party with whom each Fund has entered into the swap will default on its
obligation to pay the Funds and the risk that the Funds will not be able to
meet their obligations to pay the other party to the agreement.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Schedule of Investments Muni Intermediate Duration Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
Alabama--3.8%
Jefferson County, Alabama, Limited Obligation
School Warrants, Series A:
$ 5,500 5.50% due 1/01/2021 $ 5,908
6,500 5.25% due 1/01/2023 6,823
2,400 Sylacauga, Alabama, Health Care Authority Revenue
Bonds (Coosa Valley Medical Center), Series A, 6%
due 8/01/2025 2,433
6,600 Tuscaloosa, Alabama, Special Care Facilities Financing
Authority, Residential Care Facility Revenue Bonds
(Capstone Village, Inc. Project), Series A, 5.625%
due 8/01/2025 6,572
Arizona--5.0%
3,020 Maricopa County, Arizona, IDA, Education Revenue
Bonds (Arizona Charter Schools Project 1), Series A,
6.625% due 7/01/2020 3,029
3,000 Navajo County, Arizona, IDA, IDR (Stone Container
Corporation Project), AMT, 7.20% due 6/01/2027 3,124
Pima County, Arizona, IDA, Education Revenue Bonds
(Arizona Charter Schools Project):
1,000 Series C, 6.70% due 7/01/2021 1,057
1,750 Series K/L, 6.375% due 7/01/2031 1,815
Pinal County, Arizona, COP:
2,760 5.25% due 12/01/2018 2,922
2,910 5.25% due 12/01/2019 3,070
3,065 5.25% due 12/01/2020 3,227
3,230 5.25% due 12/01/2021 3,393
3,405 5.25% due 12/01/2022 3,564
3,630 Vistancia Community Facilities District, Arizona, GO,
5% due 7/15/2014 3,577
Arkansas--1.3%
Conway, Arkansas, Public Facilities Board, Capital
Improvement Revenue Refunding Bonds (Hendrix
College Projects):
1,500 Series A, 5% due 10/01/2026 1,529
3,755 Series B, 5% due 10/01/2026 3,829
University of Arkansas, University Revenue Refunding
Bonds (UAMS Campus), Series A (d):
1,000 5% due 11/01/2013 1,081
1,250 5% due 11/01/2015 1,346
California--26.9%
8,865 California Pollution Control Financing Authority, PCR,
Refunding, DRIVERS, AMT, Series 878Z, 7.324%
due 12/01/2009 (d)(h) 9,922
California State Department of Water Resources, Power
Supply Revenue Bonds, Series A (i):
8,500 5.25% due 5/01/2012 9,305
11,500 5.375% due 5/01/2012 12,671
Face
Amount Municipal Bonds Value
California (concluded)
$ 5,000 California State, GO, Refunding, 5.25%
due 2/01/2027 (d) $ 5,268
10,000 California State Public Works Board, Lease Revenue
Bonds (Department of Corrections), Series C, 5.50%
due 6/01/2020 10,763
17,500 California State, Various Purpose, GO, 5.50%
due 4/01/2028 18,792
2,500 California Statewide Communities Development
Authority, Health Facility Revenue Bonds (Memorial
Health Services), Series A, 6% due 10/01/2023 2,747
1,180 Chula Vista, California, IDR (San Diego Gas and Electric
Company), AMT, Series B, 5% due 12/01/2027 1,188
2,400 Elk Grove, California, Poppy Ridge Community Facilities
Number 3 Special Tax, Series 1, 6% due 9/01/2008 (i) 2,571
Los Angeles, California, Unified School District, GO:
10,485 (Election of 1997), Series F, 5% due 7/01/2025 (b) 10,939
26,575 Series A, 5% due 1/01/2028 (d) 27,588
Oakland, California, Sewer Revenue Bonds, Series A (c):
3,565 5% due 6/15/2028 3,703
2,000 5% due 6/15/2029 2,076
5,850 Ontario-Monclair, California, School District, GO
(Election of 2002), Series A, 5% due 8/01/2027 (b) 6,054
10,135 Peralta, California, Community College District, GO
(Election of 2000), Series D, 5% due 8/01/2030 (c) 10,536
1,515 Rowland, California, Unified School District, GO
(Election of 2000), Series B, 5.25% due 8/01/2027 (c) 1,605
Sacramento, California, Special Tax (North Natomas
Community Facilities), Series 4-C:
585 5.60% due 9/01/2020 618
1,720 5.75% due 9/01/2022 1,823
500 5.90% due 9/01/2023 534
3,000 6% due 9/01/2028 3,199
3,000 San Jose, California, Airport Revenue Bonds, Series A,
5.25% due 3/01/2017 (b) 3,201
3,100 San Jose, California, GO (Libraries, Parks and Public
Safety Projects), 5% due 9/01/2030 (d) 3,202
4,875 Tamalpais, California, Union High School District, GO
(Election of 2001), 5% due 8/01/2028 (c) 5,047
2,450 University of California, Limited Project Revenue Bonds,
Series B, 5% due 5/15/2033 (c) 2,530
Colorado--2.6%
2,000 Denver, Colorado, City and County Airport Revenue
Refunding Bonds, Series E, 5.25% due 11/15/2023 (d) 2,079
900 Elk Valley, Colorado, Public Improvement Revenue
Bonds (Public Improvement Fee), Series A, 7.10%
due 9/01/2014 964
2,250 Montrose, Colorado, Memorial Hospital, Revenue Bonds,
6.375% due 12/01/2023 2,425
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedules of
Investments, we have abbreviated the names of many of the securities
according to the list at right.
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
S/F Single-Family
TAN Tax Anticipation Notes
VRDN Variable Rate Demand Notes
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Schedule of Investments (continued) Muni Intermediate Duration Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
Colorado (concluded)
$ 7,500 Plaza Metropolitan District Number 1, Colorado, Tax
Allocation Revenue Bonds (Public Improvement
Fees), 7.50% due 12/01/2015 $ 8,239
1,000 Southlands, Colorado, Medical District, GO
(Metropolitan District Number 1), 6.75%
due 12/01/2016 1,090
Connecticut--1.7%
1,160 Connecticut State Development Authority, Airport
Facility Revenue Bonds (LearJet Inc. Project), AMT,
7.95% due 4/01/2026 1,385
8,000 Connecticut State Development Authority, PCR,
Refunding (Connecticut Light and Power Company),
Series A, 5.85% due 9/01/2028 8,517
Florida--4.7%
1,000 Broward County, Florida, Airport Exempt Facility
Revenue Bonds (Learjet Inc. Project), AMT, 7.50%
due 11/01/2020 1,130
2,970 Harbor Bay, Florida, Community Development District,
Capital Improvement Special Assessment Bonds,
6.75% due 5/01/2034 3,219
2,985 Heritage Isle at Viera Community Development District,
Florida, Special Assessment Bonds, Series B, 5%
due 11/01/2009 2,992
4,705 Lee County, Florida, Revenue Bonds, 5%
due 10/01/2022 (a) 4,952
3,500 Midtown Miami, Florida, Community Development
District, Special Assessment Revenue Bonds, Series A,
6% due 5/01/2024 3,713
3,670 Orange County, Florida, Health Facilities Authority,
Health Care Revenue Refunding Bonds (Orlando
Lutheran Towers), 5% due 7/01/2013 3,628
965 Orlando, Florida, Urban Community Development
District, Capital Improvement Special Assessment
Bonds, 6% due 5/01/2020 1,034
1,085 Portofino Shores, Florida, Community Development
District, Special Assessment Bonds, Series A, 6.40%
due 5/01/2034 1,138
2,390 South Lake County, Florida, Hospital District Revenue
Bonds (South Lake Hospital Inc.), 6.625%
due 10/01/2023 2,615
875 Sterling Hill, Florida, Community Development District,
Capital Improvement Revenue Refunding Bonds,
Series B, 5.50% due 11/01/2010 878
2,060 Watergrass Community Development District, Florida,
Special Assessment Revenue Bonds, Series B, 4.875%
due 11/01/2010 2,059
Georgia--3.1%
1,500 Atlanta, Georgia, Tax Allocation Bonds (Atlantic Station
Project), 7.90% due 12/01/2024 1,621
Brunswick and Glynn County, Georgia, Development
Authority, First Mortgage Revenue Bonds (Coastal
Community Retirement Corporation Project), Series A:
5,210 7.125% due 1/01/2025 5,454
2,800 7.25% due 1/01/2035 2,926
4,500 Fulton County, Georgia, Residential Care Facilities,
Revenue Refunding Bonds (Canterbury Court Project),
Series A, 5.80% due 2/15/2018 4,570
Savannah, Georgia, EDA, Revenue Bonds (Marshes of
Skidaway), First Mortgage, Series A:
1,245 6.25% due 1/01/2012 1,242
2,245 6.85% due 1/01/2019 2,306
Face
Amount Municipal Bonds Value
Idaho--0.1%
$ 540 Idaho Housing and Finance Association, S/F
Mortgage Revenue Bonds, AMT, Series F-2,
5.85% due 7/01/2015 (e) $ 545
Illinois--3.4%
2,510 Chicago, Illinois, O'Hare International Airport
Revenue Bonds, 3rd Lien, AMT, Series B-2, 6%
due 1/01/2029 (f) 2,781
6,000 Hodgkins, Illinois, Environmental Improvement Revenue
Bonds (Metro Biosolids Management LLC Project),
AMT, 5.90% due 11/01/2017 6,319
6,930 Illinois, Development Finance Authority Revenue
Bonds (Community Rehabilitation Providers Facilities),
Series A, 6.625% due 7/01/2032 7,442
1,800 Illinois State Finance Authority Revenue Bonds
(Landing At Plymouth Place Project), Series A, 6%
due 5/15/2025 1,818
1,580 Village of Wheeling, Illinois, Revenue Bonds (North
Milwaukee/Lake-Cook Tax Increment Financing (TIF)
Redevelopment Project), 6% due 1/01/2025 1,553
Louisiana--0.9%
5,000 Port New Orleans, Louisiana, IDR, Refunding
(Continental Grain Company Project), 6.50%
due 1/01/2017 5,110
Maine--1.6%
1,965 Portland, Maine, Housing Development Corporation,
Senior Living Revenue Bonds (Avesta Housing
Development Corporation Project), Series A, 6%
due 2/01/2034 2,030
7,000 Rumford, Maine, Solid Waste Disposal Revenue
Refunding Bonds (Boise Cascade Corporation Project),
AMT, 6.875% due 10/01/2026 7,463
Maryland--0.3%
500 Maryland State Industrial Development Financing
Authority, Economic Development Revenue Bonds
(Our Lady of Good Counsel School), Series A, 6%
due 5/01/2035 510
1,150 Prince Georges County, Maryland, Special Obligation
Bonds (National Harbor Project), 5.20%
due 7/01/2034 1,141
Massachusetts--4.7%
4,560 Massachusetts Bay Transportation Authority, Sales Tax
Revenue Refunding Bonds, Senior Series A, 5%
due 7/01/2032 4,673
Massachusetts State Development Finance Agency,
Resource Recovery Revenue Bonds (Ogden Haverhill
Associates), AMT, Series B:
1,210 5.35% due 12/01/2015 1,221
2,000 5.50% due 12/01/2019 2,033
9,050 Massachusetts State, HFA, Rental Housing
Mortgage Revenue Bonds, AMT, Series A, 5.15%
due 7/01/2026 (c) 9,027
10,000 Massachusetts State School Building Authority,
Dedicated Sales Tax Revenue Bonds, Series A, 5%
due 8/15/2030 (c) 10,373
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Schedule of Investments (continued) Muni Intermediate Duration Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
Michigan--1.5%
$ 3,325 Macomb County, Michigan, Hospital Finance Authority,
Hospital Revenue Bonds (Mount Clemens General
Hospital), Series B, 5.875% due 11/15/2034 $ 3,363
4,795 Michigan State Hospital Finance Authority, Revenue
Refunding Bonds (Oakwood Obligated Group),
Series A, 6% due 4/01/2022 5,212
Minnesota--0.7%
Minneapolis and Saint Paul, Minnesota, Housing and
Redevelopment Authority, Health Care System
Revenue Bonds (Group Health Plan Inc. Project):
1,000 6% due 12/01/2019 1,093
2,545 6% due 12/01/2021 2,771
Mississippi--1.4%
Mississippi Business Finance Corporation, Mississippi,
PCR, Refunding (System Energy Resources Inc.
Project):
5,000 5.875% due 4/01/2022 5,088
2,910 5.90% due 5/01/2022 2,961
Nevada--0.4%
2,250 Clark County, Nevada, Improvement District
Number 142 Special Assessment, 6.375%
due 8/01/2023 2,325
New Jersey--15.1%
Garden State Preservation Trust of New Jersey, Open
Space and Farmland Preservation Revenue Bonds,
Series A (c):
3,635 5.80% due 11/01/2021 4,164
5,050 5.80% due 11/01/2023 5,785
New Jersey EDA, Cigarette Tax Revenue Bonds:
10,950 5.625% due 6/15/2018 11,499
9,810 5.75% due 6/15/2029 10,281
17,900 New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A, 5.25% due 7/01/2033 (d) 18,964
5,540 New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT, 6.625%
due 9/15/2012 5,193
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds, Series D:
10,000 5% due 6/15/2018 (a) 10,583
20,000 5% due 6/15/2019 (c) 21,086
New Mexico--2.2%
Farmington, New Mexico, PCR, Refunding:
3,000 (Public Service Company of New Mexico--
San Juan), Series D, 6.375% due 4/01/2022 3,183
9,000 (Tucson Electric Power Co.-San Juan Project),
Series A, 6.95% due 10/01/2020 9,387
New York--25.5%
1,200 Dutchess County, New York, IDA, Civic Facility Revenue
Bonds (Saint Francis Hospital), Series B, 7.25%
due 3/01/2019 1,300
Metropolitan Transportation Authority, New York,
Revenue Bonds, Series B (a):
5,465 5% due 11/15/2027 5,709
6,600 5% due 11/15/2030 6,846
10,500 Metropolitan Transportation Authority, New York,
Revenue Refunding Bonds, Series A, 5.75%
due 11/15/2032 11,559
1,755 New York City, New York, City IDA, Civic Facility
Revenue Bonds (Special Needs Facilities Pooled
Program), Series C-1, 5.50% due 7/01/2007 1,774
Face
Amount Municipal Bonds Value
New York (concluded)
$ 3,500 New York City, New York, City IDA, Special Facility
Revenue Bonds (Continental Airlines Inc. Project),
AMT, 8.375% due 11/01/2016 $ 3,359
1,110 New York City, New York, City Transitional Finance
Authority, Future Tax Secured Revenue Bonds,
Series C, 5.50% due 5/01/2009 (i) 1,194
5,000 New York City, New York, GO, Refunding, Series B,
5.75% due 8/01/2015 5,514
2,540 New York City, New York, IDA, Civic Facility Revenue
Bonds (Special Needs Facilities Pooled Program),
Series C-1, 6.80% due 7/01/2019 2,466
New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds (a):
5,550 DRIVERS, Series 1133Z, 7.147%
due 10/15/2012 (h) 6,338
4,325 Series A, 5% due 10/15/2032 4,485
3,900 New York Convention Center Development Corporation,
New York, Revenue Bonds (Hotel Unit Fee Secured),
5% due 11/15/2027 (a) 4,068
5,580 New York State Dormitory Authority, Lease Revenue
Refunding Bonds (Court Facilities), Series A, 5.25%
due 5/15/2012 5,998
New York State Dormitory Authority Revenue Bonds:
1,000 (North Shore L I Jewish Group), 5% due 5/01/2012 1,049
7,075 (School Districts Financing Program), Series D,
5.25% due 10/01/2023 (d) 7,598
New York State Dormitory Authority, Revenue Refunding
Bonds, Series A:
7,775 (City University System), Consolidated Second
Generation, 6.125% due 7/01/2013 (a) 8,653
7,000 (Mount Sinai Health), 6.625% due 7/01/2018 7,528
5,000 (Mount Sinai Health), 6.625% due 7/01/2019 5,369
60 New York State Thruway Authority, Local Highway and
Bridge Service Contract, Revenue Refunding Bonds,
5.50% due 4/01/2017 65
New York State Urban Development Corporation,
Correctional and Youth Facilities Services Revenue
Refunding Bonds, Series A:
4,500 5% due 1/01/2017 4,737
11,650 5.50% due 1/01/2017 12,530
10,000 New York State Urban Development Corporation,
Personal Income Tax Revenue Bonds (State Facilities),
Series A-1, 5.25% due 3/15/2034 (b) 10,584
Tobacco Settlement Financing Corporation of New York
Revenue Bonds:
3,340 Series A-1, 5.50% due 6/01/2016 3,563
6,510 Series A-1, 5.25% due 6/01/2022 (a) 6,924
7,000 Series C-1, 5.50% due 6/01/2021 7,576
10,000 Series C-1, 5.50% due 6/01/2022 10,763
North Carolina--2.2%
3,105 Gaston County, North Carolina, Industrial Facilities
and Pollution Control Financing Authority Revenue
Bonds (National Gypsum Company Project), AMT,
5.75% due 8/01/2035 3,219
6,000 North Carolina Medical Care Commission, Health Care
Facilities, First Mortgage Revenue Refunding Bonds
(Presbyterian Homes Project), 7% due 10/01/2031 6,391
3,150 North Carolina Medical Care Commission, Health Care
Housing Revenue Bonds (The ARC of North Carolina
Projects), Series A, 5.50% due 10/01/2024 3,239
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Schedule of Investments (continued) Muni Intermediate Duration Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
Ohio--0.2%
$ 1,280 Port of Greater Cincinnati Development Authority,
Ohio, Special Assessment Revenue Bonds
(Cooperative Public Parking Infrastructure Project),
6.30% due 2/15/2024 $ 1,358
Pennsylvania--4.6%
3,500 Montgomery County, Pennsylvania, IDA, Revenue
Bonds (Whitemarsh Continuing Care Project),
6% due 2/01/2021 3,640
7,710 Pennsylvania Economic Development Financing
Authority, Exempt Facilities Revenue Bonds
(National Gypsum Company), AMT, Series A,
6.25% due 11/01/2027 8,216
7,490 Philadelphia, Pennsylvania, Gas Works Revenue
Refunding Bonds, 1975 General Ordinance, 17th
Series, 5.375% due 7/01/2022 (c) 8,026
Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Refunding Bonds (Guthrie Healthcare
System), Series A:
1,750 6.25% due 12/01/2015 1,946
3,000 6.25% due 12/01/2016 3,332
1,490 6.25% due 12/01/2018 1,645
South Carolina--1.7%
Medical University Hospital Authority, South Carolina,
FHA-Insured Mortgage Hospital Facilities, Revenue
Refunding Bonds, Series A (d)(e):
4,250 5.25% due 8/15/2023 4,499
3,000 5.25% due 8/15/2024 3,172
2,000 Newberry County, South Carolina, School District,
Installment Purchase Revenue Bonds, 5%
due 12/01/2030 2,028
Tennessee--3.9%
1,800 Johnson City, Tennessee, Health and Educational
Facilities Board, Retirement Facility Revenue Bonds
(Appalachian Christian Village Project), Series A, 6%
due 2/15/2019 1,814
5,000 McMinn County, Tennessee, IDB, PCR (Calhoun
Newsprint Co. Project), AMT, 7.625% due 3/01/2016 5,009
Shelby County, Tennessee, Health, Educational and
Housing Facility Board, Hospital Revenue Refunding
Bonds (Methodist Healthcare) (i):
6,000 6% due 9/01/2012 6,803
3,500 6.25% due 9/01/2012 4,021
Shelby County, Tennessee, Health, Educational and
Housing Facility Board Revenue Bonds
(Germantown Village), Series A:
3,550 6.75% due 12/01/2018 3,591
1,450 7% due 12/01/2023 1,476
Texas--15.1%
Austin, Texas, Convention Center Revenue Bonds
(Convention Enterprises Inc.), First Tier, Series A:
6,445 6.375% due 1/01/2016 6,778
10,260 6.70% due 1/01/2032 10,825
1,500 Bexar County, Texas, Health Facilities Development
Corporation, Revenue Refunding Bonds (Army
Retirement Residence Project), 6.30%
due 7/01/2032 1,594
Face
Amount Municipal Bonds Value
Texas (concluded)
Brazos River Authority, Texas, PCR, Refunding, AMT,
Series A:
$ 1,500 (TXU Energy Company LLC Project), 6.75%
due 4/01/2038 $ 1,686
5,085 (Texas Utility Company), 7.70% due 4/01/2033 5,950
4,000 Dallas-Fort Worth, Texas, International Airport Facility
Improvement Corporation, Revenue Bonds
(Learjet Inc.), AMT, Series A-1, 6.15% due 1/01/2016 4,069
5,000 Dallas-Fort Worth, Texas, International Airport Facility
Improvement Corporation, Revenue Refunding
Bonds, AMT, Series A-2, 9% due 5/01/2029 4,709
2,440 Gulf Coast, Texas, IDA, Solid Waste Disposal Revenue
Bonds (Citgo Petroleum Corporation Project), AMT,
7.50% due 5/01/2025 2,754
6,540 Gulf Coast, Texas, Waste Disposal Authority Revenue
Refunding Bonds (International Paper Company),
AMT, Series A, 6.10% due 8/01/2024 6,936
4,400 Harris County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Texas
Children's Hospital), VRDN, Series B-1, 3%
due 10/01/2029 (d)(g) 4,400
Harris County, Texas, Revenue Refunding Bonds,
DRIVERS (c)(h):
9,320 Series 1111, 7.135% due 8/15/2009 10,133
6,300 Series 1172-Z, 7.287% due 8/15/2009 6,824
1,500 Houston, Texas, Health Facilities Development
Corporation, Retirement Facility Revenue Bonds
(Buckingham Senior Living Community), Series A,
7% due 2/15/2023 1,645
7,420 Lower Colorado River Authority, Texas, PCR (Samsung
Austin Semiconductor), AMT, 6.95% due 4/01/2030 8,292
2,600 Matagorda County, Texas, Navigation District
Number 1, Revenue Refunding Bonds (Reliant
Energy Inc.), Series C, 8% due 5/01/2029 2,826
2,300 Port Corpus Christi, Texas, Individual Development
Corporation, Environmental Facilities Revenue Bonds
(Citgo Petroleum Corporation Project), AMT, 8.25%
due 11/01/2031 2,432
5,000 Sabine River Authority, Texas, PCR, Refunding (TXU
Electric Company Project/TXU Energy Company LLC),
AMT, Series B, 5.75% due 5/01/2030 5,324
Virginia--5.8%
James City County, Virginia, IDA, Residential Care
Facility Revenue Refunding Bonds, Series A:
3,285 5.75% due 3/01/2017 3,426
1,150 6% due 3/01/2023 1,220
2,250 Loudoun County, Virginia, IDA, IDR, Refunding (Dulles
Airport Marriott Hotel), 7.125% due 9/01/2015 2,298
10,735 Pocahontas Parkway Association, Virginia, Toll
Road Revenue Bonds, Senior-Series A, 5.50%
due 8/15/2028 11,057
15,435 Tobacco Settlement Financing Corporation of
Virginia, Asset-Backed Revenue Bonds, 5.625%
due 6/01/2037 15,463
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Schedule of Investments (concluded) Muni Intermediate Duration Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
Wyoming--1.6%
Sweetwater County, Wyoming, Solid Waste
Disposal Revenue Bonds (FMC Corporation
Project), AMT:
$ 3,895 Series A, 7% due 6/01/2024 $ 3,921
5,000 Series B, 6.90% due 9/01/2024 5,042
Guam--0.4%
2,250 Commonwealth of the Northern Mariana Islands,
Guam, GO, Series A, 6.75% due 10/01/2033 2,442
Puerto Rico--8.0%
Puerto Rico Electric Power Authority, Power
Revenue Bonds:
17,935 Series NN, 5.50% due 7/01/2018 19,159
6,500 Series RR, 5% due 7/01/2025 (f) 6,812
5,390 Puerto Rico Industrial, Medical and Environmental
Pollution Control Facilities Financing Authority,
Special Facilities Revenue Bonds (American
Airlines Inc.), Series A, 6.45%
due 12/01/2025 3,817
Face
Amount Municipal Bonds Value
Puerto Rico (concluded)
Puerto Rico Public Buildings Authority, Government
Facilities, Revenue Refunding Bonds:
$ 5,170 Series D, 5.25% due 7/01/2027 $ 5,285
8,000 Series I, 5.50% due 7/01/2021 8,511
2,525 Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series E, 5.50% due 8/01/2029 2,620
U.S. Virgin Islands--1.6%
1,860 Virgin Islands Government Refinery Facilities, Revenue
Refunding Bonds (Hovensa Coker Project), AMT,
6.50% due 7/01/2021 2,097
6,750 Virgin Islands Public Finance Authority, Refinery
Facilities Revenue Bonds (Hovensa Refinery), AMT,
6.125% due 7/01/2022 7,374
Total Investments (Cost--$858,125*)--152.0% 880,029
Other Assets Less Liabilities--3.3% 18,913
Preferred Stock, at Redemption Value--(55.3%) (320,073)
----------
Net Assets Applicable to Common Stock--100.0% $ 578,869
==========
* The cost and unrealized appreciation (depreciation) of investments as
of November 30, 2005, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 857,917
===============
Gross unrealized appreciation $ 24,638
Gross unrealized depreciation (2,526)
---------------
Net unrealized appreciation $ 22,112
===============
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FSA Insured.
(d) MBIA Insured.
(e) Federal Housing Administration/Veterans' Administration Mortgages packaged
by the Federal National Mortgage Association.
(f) XL Capital Insured.
(g) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(h) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(i) Prerefunded.
Forward interest rate swaps outstanding as of November 30, 2005
were as follows:
Notional Unrealized
Amount Appreciation
Pay a fixed rate of 4.641% and receive
a floating rate based on 3-month LIBOR
Broker, JPMorgan Chase Bank
Expires December 2017 $ 60,000 $ 2,293
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Schedule of Investments Muni New York Intermediate Duration Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
New York--128.4%
$ 760 Albany County, New York, IDA, IDR (Albany College
of Pharmacy), Series A, 5.25% due 12/01/2019 $ 792
480 Dutchess County, New York, IDA, Civic Facility
Revenue Bonds (Saint Francis Hospital), Series B,
7.25% due 3/01/2019 520
2,000 Erie County, New York, IDA, Life Care Community
Revenue Bonds (Episcopal Church Home), Series A,
5.875% due 2/01/2018 2,065
Erie County, New York, IDA, School Facility Revenue
Bonds (City of Buffalo Project) (b):
3,835 5.75% due 5/01/2024 4,155
1,000 5.75% due 5/01/2026 1,120
2,000 Hempstead Town, New York, IDA, Resource Recovery
Revenue Refunding Bonds (American Refinery - Fuel
Co. Project), 5% due 12/01/2010 2,078
1,000 Madison County, New York, IDA, Civic Facility Revenue
Bonds (Colgate University Project), Series A, 5%
due 7/01/2030 (a) 1,036
1,615 New York City, New York, City Housing Development
Corporation, Presidential Revenue Bonds (The Animal
Medical Center), Series A, 5.50% due 12/01/2033 1,679
1,415 New York City, New York, City IDA, Civic Facility Revenue
Bonds (PSCH Inc. Project), 6.20% due 7/01/2020 1,501
1,000 New York City, New York, City IDA, Revenue Bonds
(Visy Paper Inc. Project), AMT, 7.95% due 1/01/2028 1,024
New York City, New York, City IDA, Special Facility
Revenue Bonds, AMT:
1,500 (1990 American Airlines Inc. Project), 5.40%
due 7/01/2020 990
1,000 (British Airways Plc Project), 7.625%
due 12/01/2032 1,074
1,000 (Continental Airlines Inc. Project), 8.375%
due 11/01/2016 960
1,000 New York City, New York, City IDA, Special Facilities
Revenue Refunding Bonds (Terminal One Group
Association Project), AMT, 5.50% due 1/01/2024 1,052
2,980 New York City, New York, City Transitional Finance
Authority, Future Tax Secured Revenue Bonds, Series C,
5.50% due 5/01/2009 (h) 3,207
New York City, New York, GO:
1,500 Series J, 5.25% due 5/15/2018 (c) 1,621
3,000 Series J, 5.50% due 6/01/2021 3,227
1,285 Series N, 5% due 8/01/2023 (e) 1,346
New York City, New York, GO, Refunding:
1,000 Series F, 5.25% due 8/01/2009 1,056
2,000 Series G, 5.50% due 8/01/2012 (d) 2,198
500 New York City, New York, Trust for Cultural Resources
Revenue Bonds (Museum of American Folk Art), 6.125%
due 7/01/2030 (i) 539
New York Convention Center Development Corporation,
New York, Revenue Bonds (Hotel Unit Fee Secured) (a):
2,750 5% due 11/15/2024 2,886
1,500 5% due 11/15/2026 1,567
Face
Amount Municipal Bonds Value
New York (continued)
$ 1,000 New York State Dormitory Authority, Mental Health
Services Facilities Improvement, Revenue Bonds,
Series B, 5% due 2/15/2030 (a) $ 1,033
1,000 New York State Dormitory Authority, Non-State
Supported Debt, Insured Revenue Bonds (United
Cerebral Palsy Affiliates--Pooled Loan Program),
Series A, 5% due 7/01/2034 (j) 1,029
1,000 New York State Dormitory Authority, Non-State
Supported Debt, Insured Revenue Refunding Bonds
(Canisius College), 5% due 7/01/2018 (c) 1,059
New York State Dormitory Authority Revenue Bonds:
1,500 (North Shore Long Island Jewish Group), 5%
due 5/01/2013 1,573
1,735 (Winthrop S. Nassau University), 5.50%
due 7/01/2011 1,862
New York State Dormitory Authority, Revenue
Refunding Bonds:
1,305 (Lenox Hill Hospital Obligation Group), 5.75%
due 7/01/2017 1,345
1,000 (Mount Sinai Health), Series A, 6.50%
due 7/01/2015 1,075
1,000 (Mount Sinai Health), Series A, 6.625%
due 7/01/2018 1,076
1,000 (State University Educational Facilities), Series A,
5.50% due 5/15/2013 1,099
1,790 New York State Dormitory Authority, State Personal
Income Tax Revenue Bonds (Education), Series F, 5%
due 3/15/2030 1,842
New York State Dormitory Authority, Supported Debt
Revenue Refunding Bonds:
1,500 (Department of Health), Series A, 5%
due 7/01/2025 (g) 1,559
1,790 (State University Dormitory Facilities), Series C, 5%
due 7/01/2021 (c) 1,893
1,000 New York State Environmental Facilities Corporation,
Solid Waste Disposal Revenue Bonds (Waste
Management Inc. Project), AMT, Series A, 4.45%
due 7/01/2017 1,011
1,000 New York State Environmental Facilities Corporation,
State Clean Water and Drinking Revolving Funds
Revenue Bonds, Series G, 5.25% due 10/15/2014 1,077
3,500 New York State Local Government Assistance
Corporation, Revenue Refunding Bonds, Sub-Lien,
Series A-1, 5% due 4/01/2012 (b) 3,759
2,000 New York State Municipal Bond Bank Agency,
Special School Purpose Revenue Bonds, Series C,
5.25% due 12/01/2018 2,126
1,000 New York State Thruway Authority, General Revenue
Refunding Bonds, Series G, 5% due 1/01/2024 (b) 1,050
3,000 New York State Urban Development Corporation,
Correctional and Youth Facilities Services Revenue
Refunding Bonds, Series A, 5% due 1/01/2017 3,158
2,000 New York State Urban Development Corporation
Revenue Bonds, Subordinate Lien, Corporation Purpose,
Series A, 5.125% due 7/01/2019 2,111
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Schedule of Investments (concluded)
Muni New York Intermediate Duration Fund, Inc.
(In Thousands)
Face
Amount Municipal Bonds Value
New York (concluded)
$ 1,000 Niagara Falls, New York, Public Water Authority,
Water and Sewer System Revenue Refunding Bonds,
5.50% due 7/15/2034 (d) $ 1,090
Saratoga County, New York, IDA, Civic Facility Revenue
Refunding Bonds (The Saratoga Hospital Project),
Series A (f):
365 4.375% due 12/01/2013 374
380 4.50% due 12/01/2014 390
395 4.50% due 12/01/2015 404
Schenectady, New York:
500 BAN, 5.25% due 5/26/2006 499
1,000 GO, TAN, 5.90% due 12/30/2005 999
1,085 Suffolk County, New York, IDA, IDR, Refunding
(Nissequogue Cogen Partners Facility), AMT, 4.875%
due 1/01/2008 1,104
1,000 Tobacco Settlement Financing Corporation of New York,
Asset-Backed Revenue Bonds, Series A-1, 5.25%
due 6/01/2016 1,061
1,000 Tobacco Settlement Financing Corporation of New York
Revenue Bonds, Series C-1, 5.50% due 6/01/2022 1,076
Tompkins County, New York, IDA, Care Community
Revenue Refunding Bonds (Kendal at Ithaca), Series A-2:
250 5.75% due 7/01/2018 257
1,000 6% due 7/01/2024 1,031
1,250 Utica, New York, IDA, Civic Facility Revenue
Bonds (Utica College Project), Series A, 6.875%
due 12/01/2024 1,329
Westchester County, New York, IDA, Civic Facility
Revenue Bonds (Special Needs Facilities
Pooled Program):
515 Series D-1, 6.80% due 7/01/2019 542
615 Series E-1, 5.50% due 7/01/2007 622
Guam--1.7%
1,000 A.B. Won Guam International Airport Authority, General
Revenue Refunding Bonds, AMT, Series C, 5.25%
due 10/01/2022 (c) 1,050
Face
Amount Municipal Bonds Value
Puerto Rico--10.5%
Children's Trust Fund Project of Puerto Rico, Tobacco
Settlement Revenue Refunding Bonds:
$ 750 5% due 5/15/2011 $ 776
1,035 5.375% due 5/15/2033 1,048
1,000 Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds, Series K, 5% due 7/01/2030 994
1,100 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series RR, 5% due 7/01/2029 (g) 1,143
425 Puerto Rico Housing Financing Authority, Capital
Funding Program Revenue Bonds, 5% due 12/01/2019 442
1,900 Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series E, 5.70% due 2/01/2010 (h) 2,059
U.S. Virgin Islands--2.6%
500 Virgin Islands Government Refinery Facilities,
Revenue Refunding Bonds (Hovensa Coker Project),
AMT, 6.50% due 7/01/2021 564
1,000 Virgin Islands Public Finance Authority, Senior Lien
Revenue Bonds (Matching Fund Loan Note), Series A,
5.25% due 10/01/2024 1,054
Total Municipal Bonds
(Cost--$86,202)--143.2% 88,338
Shares
Held Short-Term Securities
1,629 CMA New York Municipal Money Fund (k) 1,629
Total Short-Term Securities
(Cost--$1,629)--2.7% 1,629
Total Investments (Cost--$87,831*)--145.9% 89,967
Other Assets Less Liabilities--4.4% 2,704
Preferred Stock, at Redemption Value--(50.3%) (31,000)
----------
Net Assets Applicable to Common Stock--100.0% $ 61,671
==========
* The cost and unrealized appreciation (depreciation) of investments
as of November 30, 2005, as computed for federal income tax purposes,
were as follows:
Aggregate cost $ 87,788
===============
Gross unrealized appreciation $ 2,365
Gross unrealized depreciation (186)
---------------
Net unrealized appreciation $ 2,179
===============
(a) AMBAC Insured.
(b) FSA Insured.
(c) MBIA Insured.
(d) XL Capital Insured.
(e) FGIC.
(f) Radian Insured.
(g) CIFG Insured.
(h) Prerefunded.
(i) ACA Insured.
(j) Assured Guarantee Insured.
(k) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA New York Municipal
Money Fund 1,011 $10
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Statements of Net Assets
Muni Muni New York
Intermediate Intermediate
Duration Duration
As of November 30, 2005 Fund, Inc. Fund, Inc.
Assets
Investments in unaffiliated securities, at value* $ 880,028,568 $ 88,338,318
Investments in affiliated securities, at value** -- 1,628,894
Unrealized appreciation on forward interest rate swaps 2,292,720 --
Cash 78,368 14,783
Interest receivable 14,742,874 1,399,125
Receivable for securities sold 14,573,878 5,294,062
Prepaid expenses 37,120 19,965
--------------- ---------------
Total assets 911,753,528 96,695,147
--------------- ---------------
Liabilities
Payable for securities purchased 11,998,947 3,932,632
Dividends payable to Common Stock shareholders 504,264 59,771
Payable to investment adviser 235,937 23,975
Offering costs payable 38,709 --
Payable to other affiliates 7,614 5,561
Accrued expenses 26,048 2,193
--------------- ---------------
Total liabilities 12,811,519 4,024,132
--------------- ---------------
Preferred Stock
Preferred Stock, at redemption value, par value $.10 per share++
of AMPS+++ at $25,000 per share liquidation preference 320,073,446 31,000,000
--------------- ---------------
Net Assets Applicable to Common Stock
Net assets applicable to Common Stock $ 578,868,563 $ 61,671,015
=============== ===============
Analysis of Net Assets Applicable to Common Stock
Undistributed investment income--net $ 5,233,272 $ 359,285
Undistributed (accumulated) realized capital gains (losses)--net 8,936,825 (454,242)
Unrealized appreciation--net 24,196,440 2,135,860
--------------- ---------------
Total accumulated earnings--net 38,366,537 2,040,903
--------------- ---------------
Common Stock, par value $.10 per share++++ 3,803,493 420,644
Paid-in capital in excess of par $ 536,698,533 $ 59,209,468
--------------- ---------------
Net Assets Applicable to Common Stock $ 578,868,563 $ 61,671,015
=============== ===============
Net asset value per share of Common Stock $ 15.22 $ 14.66
=============== ===============
Market price per share of Common Stock $ 13.96 $ 12.92
=============== ===============
* Identified cost in unaffiliated securities $ 858,124,848 $ 86,202,458
=============== ===============
** Identified cost in affiliated securities -- $ 1,628,894
=============== ===============
++ Preferred Stock authorized, issued and outstanding:
Series M7 Shares 2,000 --
=============== ===============
Series T7 Shares 2,700 --
=============== ===============
Series W7 Shares 2,000 --
=============== ===============
Series TH7 Shares 2,700 --
=============== ===============
Series F7 Shares 2,000 1,240
=============== ===============
Series TH28 Shares 1,400 --
=============== ===============
++++ Common Stock issued and outstanding 38,034,934 4,206,439
=============== ===============
+++ Auction Market Preferred Stock.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Statements of Operations
Muni Muni New York
Intermediate Intermediate
Duration Duration
For the Six Months Ended November 30, 2005 Fund, Inc. Fund, Inc.
Investment Income
Interest and amortization of premium and discount earned $ 22,349,152 $ 2,149,438
Dividends from affiliates -- 10,419
--------------- ---------------
Total Income 22,349,152 2,159,857
--------------- ---------------
Expenses
Investment advisory fees $ 2,465,897 $ 258,152
Commission fees 394,958 39,707
Accounting services 128,370 29,835
Transfer agent fees 45,047 15,700
Professional fees 30,342 26,758
Printing and shareholder reports 25,232 3,606
Custodian fees 23,836 5,990
Pricing fees 14,267 4,908
Listing fees 13,402 9,664
Directors' fees and expenses 13,189 13,503
Other 29,337 15,402
--------------- ---------------
Total expenses before waiver and reimbursement 3,183,877 423,225
Waiver and reimbursement of expenses (672,517) (72,559)
--------------- ---------------
Total expenses after waiver and reimbursement 2,511,360 350,666
--------------- ---------------
Investment income--net 19,837,792 1,809,191
--------------- ---------------
Realized & Unrealized Gain (Loss)--Net
Realized gain (loss) on:
Investments--net 4,522,485 117,859
Forward interest rate swaps--net (3,070,421) --
--------------- ---------------
Total realized gain--net 1,452,064 117,859
Change in unrealized appreciation/depreciation on:
Investments--net (17,316,965) (1,685,229)
Forward interest rate swaps--net 6,305,190 --
--------------- ---------------
Total change in unrealized appreciation/depreciation--net (11,011,775) (1,685,229)
--------------- ---------------
Total realized and unrealized loss--net (9,559,711) (1,567,370)
--------------- ---------------
Dividends & Distributions to Preferred Stock Shareholders
Investment income--net (2,873,904) (346,692)
Realized gain--net (1,412,045) --
--------------- ---------------
Total dividends and distributions to Preferred Stock shareholders (4,285,949) (346,692)
--------------- ---------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 5,992,132 $ (104,871)
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Statements of Changes in Net Assets Muni Intermediate Duration Fund, Inc.
For the Six For the
Months Ended Year Ended
November 30, May 31,
Increase (Decrease) in Net Assets: 2005 2005
Operations
Investment income--net $ 19,837,792 $ 38,953,922
Realized gain--net 1,452,064 10,418,746
Change in unrealized appreciation/depreciation--net (11,011,775) 33,195,645
Dividends and distributions to Preferred Stock shareholders (4,285,949) (4,936,122)
--------------- ---------------
Net increase in net assets resulting from operations 5,992,132 77,632,191
--------------- ---------------
Dividends & Distributions to Common Stock Shareholders
Investment income--net (16,431,091) (32,862,183)
Realized gain--net -- (7,146,878)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions to Common
Stock shareholders (16,431,091) (40,009,061)
--------------- ---------------
Stock Transactions
Offering and underwriting costs resulting from the issuance of Preferred Stock (494,510) --
--------------- ---------------
Net decrease in net assets derived from stock transactions (494,510) --
--------------- ---------------
Net Assets Applicable to Common Stock
Total increase (decrease) in net assets applicable to Common Stock (10,933,469) 37,623,130
Beginning of period 589,802,032 552,178,902
--------------- ---------------
End of period* $ 578,868,563 $ 589,802,032
=============== ===============
* Undistributed investment income--net $ 5,233,272 $ 4,700,475
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Statements of Changes in Net Assets Muni New York Intermediate Duration Fund, Inc.
For the Six For the
Months Ended Year Ended
November 30, May 31,
Increase (Decrease) in Net Assets: 2005 2005
Operations
Investment income--net $ 1,809,191 $ 3,594,122
Realized gain (loss)--net 117,859 (514,710)
Change in unrealized appreciation--net (1,685,229) 2,943,785
Dividends to Preferred Stock shareholders (346,692) (481,976)
--------------- ---------------
Net increase (decrease) in net assets resulting from operations (104,871) 5,541,221
--------------- ---------------
Dividends to Common Stock Shareholders
Investment income--net (1,514,318) (3,028,634)
--------------- ---------------
Net decrease in net assets resulting from dividends to Common Stock shareholders (1,514,318) (3,028,634)
--------------- ---------------
Net Assets Applicable to Common Stock
Total increase (decrease) in net assets applicable to Common Stock (1,619,189) 2,512,587
Beginning of period 63,290,204 60,777,617
--------------- ---------------
End of period* $ 61,671,015 $ 63,290,204
=============== ===============
* Undistributed investment income--net $ 359,285 $ 411,104
=============== ===============
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Financial Highlights Muni Intermediate Duration Fund, Inc.
For the Six For the For the Period
Months Ended Year Ended August 1, 2003++
The following per share data and ratios have been derived November 30, May 31, to May 31,
from information provided in the financial statements. 2005 2005 2004
Per Share Operating Performance
Net asset value, beginning of period $ 15.51 $ 14.52 $ 14.33
------------ ------------ ------------
Investment income--net .52+++++ 1.02+++++ .79
Realized and unrealized gain (loss)--net (.25) 1.15 .21
Dividends and distributions to Preferred Stock shareholders:
Investment income--net (.08) (.11) (.06)
Realized gain--net (.04) (.02) --
------------ ------------ ------------
Total from investment operations .15 2.04 .94
------------ ------------ ------------
Less dividends and distributions to Common Stock shareholders:
Investment income--net (.43) (.86) (.65)
Realized gain--net -- (.19) --
------------ ------------ ------------
Total dividends and distributions to Common Stock shareholders (.43) (1.05) (.65)
------------ ------------ ------------
Offering costs resulting from issuance of Common Stock -- -- (.02)
------------ ------------ ------------
Offering and underwriting costs resulting from issuance of Preferred Stock (.01) -- (.08)
------------ ------------ ------------
Net asset value, end of period $ 15.22 $ 15.51 $ 14.52
============ ============ ============
Market price per share, end of period $ 13.96 $ 13.94 $ 13.10
============ ============ ============
Total Investment Return**
Based on net asset value per share 1.13%+++ 15.36% 6.09%+++
============ ============ ============
Based on market price per share 3.21%+++ 14.93% (8.59%)+++
============ ============ ============
Ratios Based on Average Net Assets of Common Stock
Expenses, net of waiver*** .85%* .84% .75%*
============ ============ ============
Expenses*** 1.08%* 1.07% 1.03%*
============ ============ ============
Investment income--net*** 6.75%* 6.77% 6.51%*
============ ============ ============
Amount of dividends to Preferred Stock shareholders .98%* .74% .48%*
============ ============ ============
Investment income--net, to Common Stock shareholders 5.77%* 6.03% 6.03%*
============ ============ ============
Ratios Based on Average Net Assets of Preferred Stock
Dividends to Preferred Stock shareholders 1.86%* 1.50% .97%*
============ ============ ============
Supplemental Data
Net assets applicable to Common Stock, end of period (in thousands) $ 578,869 $ 589,802 $ 552,179
============ ============ ============
Preferred Stock outstanding, end of period (in thousands) $ 320,000 $ 285,000 $ 285,000
============ ============ ============
Portfolio turnover 29.19% 54.55% 70.29%
============ ============ ============
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Financial Highlights (concluded) Muni Intermediate Duration Fund, Inc.
For the Six For the For the Period
Months Ended Year Ended August 1, 2003++
The following per share data and ratios have been derived November 30, May 31, to May 31,
from information provided in the financial statements. 2005 2005 2004
Leverage
Asset coverage per $1,000 $ 2,809 $ 3,069 $ 2,937
============ ============ ============
Dividends Per Share on Preferred Stock Outstanding
Series M7++++--Investment income--net $ 223 $ 372 $ 190
============ ============ ============
Series T7++++--Investment income--net $ 225 $ 377 $ 192
============ ============ ============
Series W7++++--Investment income--net $ 229 $ 374 $ 188
============ ============ ============
Series TH7++++--Investment income--net $ 240 $ 375 $ 188
============ ============ ============
Series F7++++--Investment income--net $ 218 $ 373 $ 189
============ ============ ============
Series TH28++++++--Investment income--net $ 198 -- --
============ ============ ============
* Annualized.
** Total investment returns based on market value, which can be significantly greater
or lesser than the net asset value, may result in substantially different returns.
Total investment returns exclude the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Commencement of operations.
++++ Issued on August 20, 2003.
++++++ Issued on August 3, 2005.
+++ Aggregate total investment return.
+++++ Based on average shares outstanding.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Financial Highlights Muni New York Intermediate Duration Fund, Inc.
For the Six For the For the Period
Months Ended Year Ended August 1, 2003++
The following per share data and ratios have been derived November 30, May 31, to May 31,
from information provided in the financial statements. 2005 2005 2004
Per Share Operating Performance
Net asset value, beginning of period $ 15.05 $ 14.45 $ 14.33
------------ ------------ ------------
Investment income--net .43+++++ .85+++++ .68
Realized and unrealized gain (loss)--net (.38) .58 .19
Dividends to Preferred Stock shareholders from investment income--net (.08) (.11) (.06)
------------ ------------ ------------
Total from investment operations (.03) 1.32 .81
------------ ------------ ------------
Less dividends to Common Stock shareholders from investment income--net (.36) (.72) (.54)
------------ ------------ ------------
Offering costs resulting from issuance of Common Stock -- -- (.03)
------------ ------------ ------------
Offering and underwriting costs resulting from issuance of Preferred Stock -- -- (.12)
------------ ------------ ------------
Net asset value, end of period $ 14.66 $ 15.05 $ 14.45
============ ============ ============
Market price per share, end of period $ 12.92 $ 13.44 $ 12.79
============ ============ ============
Total Investment Return**
Based on net asset value per share .02%+++ 9.99% 4.71%+++
============ ============ ============
Based on market price per share (1.30%)+++ 10.97% (11.46%)+++
============ ============ ============
Ratios Based on Average Net Assets of Common Stock
Total expenses, net of waiver and reimbursement*** 1.12%* 1.15% .81%*
============ ============ ============
Total expenses*** 1.35%* 1.38% 1.19%*
============ ============ ============
Total investment income--net*** 5.76%* 5.75% 5.40%*
============ ============ ============
Amount of dividends to Preferred Stock shareholders 1.10%* .77% .45%*
============ ============ ============
Investment income--net, to Common Stock shareholders 4.66%* 4.98% 4.95%*
============ ============ ============
Ratios Based on Average Net Assets of Preferred Stock
Dividends to Preferred Stock shareholders 2.23%* 1.55% .96%*
============ ============ ============
Supplemental Data
Net assets applicable to Common Stock, end of period (in thousands) $ 61,671 $ 63,290 $ 60,778
============ ============ ============
Preferred Stock outstanding, end of period (in thousands) $ 31,000 $ 31,000 $ 31,000
============ ============ ============
Portfolio turnover 29.24% 16.51% 21.02%
============ ============ ============
Leverage
Asset coverage per $1,000 $ 2,989 $ 3,042 $ 2,961
============ ============ ============
Dividends Per Share on Preferred Stock Outstanding
Series F7++++--Investment income--net $ 280 $ 389 $ 188
============ ============ ============
* Annualized.
** Total investment returns based on market value, which can be significantly greater
or lesser than the net asset value, may result in substantially different returns.
Total investment returns exclude the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock shareholders.
++ Commencement of operations.
++++ The Fund's Preferred Stock was issued on August 20, 2003.
+++ Aggregate total investment return.
+++++ Based on average shares outstanding.
See Notes to Financial Statements.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Notes to Financial Statements
1. Significant Accounting Policies:
Muni Intermediate Duration Fund, Inc. and Muni New York Intermediate Duration
Fund, Inc. (the "Funds" or individually as the "Fund") are registered under
the Investment Company Act of 1940, as amended, as non-diversified, closed-end
management investment companies. The Funds' financial statements are prepared
in conformity with U.S. generally accepted accounting principles, which may
require the use of management accruals and estimates. Actual results may
differ from these estimates. These unaudited financial statements reflect all
adjustments, which are, in the opinion of management, necessary to present a
fair statement of the results for the interim period. All such adjustments are
of a normal, recurring nature. The Funds determine and make available for
publication the net asset values of their Common Stock on a daily basis. Each
Fund's Common Stock shares are listed on the New York Stock Exchange under the
symbol MUI for Muni Intermediate Duration Fund, Inc. and MNE for Muni New York
Intermediate Duration Fund, Inc.
(a) Valuation of investments--Municipal bonds are traded primarily in the over-
the-counter ("OTC") markets and are valued at the last available bid price in
the OTC market or on the basis of values as obtained by a pricing service.
Pricing services use valuation matrixes that incorporate both dealer-supplied
valuations and valuation models. The procedures of the pricing service and its
valuations are reviewed by the officers of the Funds under the general
direction of the Board of Directors. Such valuations and procedures are
reviewed periodically by the Board of Directors of the Funds. Financial
futures contracts and options thereon, which are traded on exchanges, are
valued at their closing prices as of the close of such exchanges. Options
written or purchased are valued at the last sale price in the case of exchange-
traded options. In the case of options traded in the OTC market, valuation
is the last asked price (options written) or the last bid price (options
purchased). Swap agreements are valued by quoted fair values received daily by
the Fund's pricing service. Short-term investments with a remaining maturity
of 60 days or less are valued at amortized cost, which approximates market
value, under which method the investment is valued at cost and any premium or
discount is amortized on a straight line basis to maturity. Investments in
open-end investment companies are valued at their net asset value each business
day. Securities and other assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or under the
direction of the Board of Directors of the Funds.
(b) Derivative financial instruments--Each Fund may engage in various
portfolio investment strategies both to increase the return of the Fund and to
hedge, or protect, their exposure to interest rate movements and movements in
the securities markets. Losses may arise due to changes in the value of the
contract or if the counterparty does not perform under the contract.
* Financial futures contracts--Each Fund may purchase or sell financial
futures contracts and options on such futures contracts. Futures contracts are
contracts for delayed delivery of securities at a specific future date and at
a specific price or yield. Upon entering into a contract, the Fund deposits
and maintains as collateral such initial margin as required by the exchange on
which the transaction is effected. Pursuant to the contract, the Fund agrees
to receive from or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are known as
variation margin and are recorded by the Fund as unrealized gains or losses.
When the contract is closed, the Fund records a realized gain or loss equal to
the difference between the value of the contract at the time it was opened and
the value at the time it was closed.
* Options--Each Fund may purchase and write call and put options. When the
Fund writes an option, an amount equal to the premium received by the Fund is
reflected as an asset and an equivalent liability. The amount of the liability
is subsequently marked-to-market to reflect the current market value of the
option written. When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or deducted from)
the basis of the security acquired or deducted from (or added to) the proceeds
of the security sold. When an option expires (or the Fund enters into a
closing transaction), the Fund realizes a gain or loss on the option to the
extent of the premiums received or paid (or gain or loss to the extent the
cost of the closing transaction exceeds the premium paid or received).
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Notes to Financial Statements (continued)
Written and purchased options are non-income producing investments.
* Forward interest rate swaps--Each Fund may enter into forward interest rate
swaps. In a forward interest rate swap, the Fund and the counterparty agree to
make periodic net payments on a specified notional contract amount, commencing
on a specified future effective date, unless terminated earlier. When the
agreement is closed, the Fund records a realized gain or loss in an amount
equal to the value of the agreement.
(c) Income taxes--It is each Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.
(d) Security transactions and investment income--Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Interest income is recognized on the accrual basis. The Funds amortize all
premiums and discounts on debt securities.
(e) Dividends and distributions--Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
(f) Offering costs--Direct expenses relating to the public offering of each
Fund's Preferred Stock were charged to capital at the time of issuance of the
shares.
2. Investment Advisory Agreement and Transactions with Affiliates:
Each Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services,
Inc. ("PSI"), an indirect, wholly-owned subsidiary of Merrill Lynch & Co.,
Inc. ("ML & Co."), which is the limited partner.
FAM is responsible for the management of each Fund's portfolio and provides
the necessary personnel, facilities, equipment and certain other services
necessary to the operations of the Funds. For such services, each Fund pays a
monthly fee at an annual rate of .55% of the Fund's average daily net assets,
including proceeds from the issuance of Preferred Stock. FAM has contractually
agreed to waive a portion of its fee during the first seven years of each
Fund's operations ending July 31, 2010, as follows:
Fee Waiver
(As a Percentage
of Average Daily
Net Assets)
Years 1 through 5 .15%
Year 6 .10%
Year 7 .05%
Year 8 and thereafter .00%
FAM has not agreed to waive any portion of its fee beyond July 31, 2010.
For the six months ended November 30, 2005, FAM earned fees and waived a
portion of its fees as follows:
Investment
Advisory Fees Fees
Earned Waived
Muni Intermediate
Duration Fund, Inc. $2,465,897 $672,517
Muni New York
Intermediate Duration
Fund, Inc. $ 258,152 $ 70,405
In addition, FAM has agreed to reimburse its management fee by the amount of
management fees Muni New York Intermediate Duration Fund, Inc. pays to FAM
indirectly through its investment in CMA New York Municipal Money Fund. For
the six months ended November 30, 2005, FAM reimbursed the Fund in the amount
of $2,154.
For the six months ended November 30, 2005, MerrillLynch, Pierce, Fenner &
Smith Incorporated ("MLPF&S"), an affiliate of FAM, received underwriting fees
of $350,000 in connection with the issuance of Muni Intermediate Duration
Fund, Inc.'s Preferred Stock.
For the six months ended November 30, 2005, the Funds reimbursed FAM for
certain accounting services. The reimbursements were as follows:
Reimbursement
Muni Intermediate Duration Fund, Inc. $9,729
Muni New York Intermediate Duration Fund, Inc. $ 952
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Notes to Financial Statements (concluded)
Certain officers and/or directors of the Funds are officers and/or directors
of FAM, PSI, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
six months ended November 30, 2005 were as follows:
Muni Muni New York
Intermediate Intermediate
Duration Duration
Fund, Inc. Fund, Inc.
Total Purchases $270,265,460 $26,292,471
Total Sales $258,685,824 $28,969,062
4. Stock Transactions:
Each Fund is authorized to issue 200,000,000 shares of stock, including
Preferred Stock, par value $.10 per share, all of which were initially
classified as Common Stock. The Board of Directors is authorized, however, to
reclassify any unissued shares of beneficial interest without approval of the
holders of Common Stock.
Preferred Stock
Auction Market Preferred Stock are redeemable shares of Preferred Stock of the
Fund, with a par value of $.10 per share and a liquidation preference of
$25,000 per share plus accrued and unpaid dividends, that entitle their
holders to receive cash dividends at an annual rate that may vary for the
successive dividend periods. The yields in effect at November 30, 2005 were as
follows:
Muni Muni New York
Intermediate Intermediate
Duration Duration
Fund, Inc. Fund, Inc.
Series M7 3.05% --
Series T7 3.05% --
Series TH7 2.95% --
Series W7 2.95% --
Series F7 2.95% 2.75%
Series TH28 2.90% --
Muni Intermediate Duration Fund, Inc.
Shares issued and outstanding during the six months ended November 30, 2005
increased by 1,400 from the issuance of an additional series of Preferred
Stock and during the year ended May 31, 2005 remained constant.
Muni New York Intermediate Duration Fund, Inc.
Shares issued and outstanding during the six months ended November 30, 2005
and the year ended May 31, 2005 remained constant.
Each Fund pays commissions to certain broker-dealers at the end of each
auction at an annual rate ranging from .25% to .375%, calculated on the
proceeds of each auction. For the six months ended November 30, 2005, MLPF&S
earned $333,716 relating to Muni Intermediate Duration Fund, Inc. and $28,971
relating to Muni New York Intermediate Duration Fund, Inc., as commissions.
5. Capital Loss Carryforward:
Muni New York Intermediate Duration Fund, Inc.
On May 31, 2005, the Fund had a net capital loss carryforward of $572,101, of
which $57,391 expires in 2012 and $514,710 expires in 2013. This amount will
be available to offset any like amounts of any future taxable gains.
6. Subsequent Event:
Each Fund paid a tax-exempt income dividend to holders of Common Stock in the
amounts of $.072000 per share and $.060000 per share relating to Muni
Intermediate Duration Fund, Inc. and Muni New York Intermediate Duration Fund,
Inc., respectively, on December 29, 2005 to shareholders of record on December
15, 2005.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Proxy Results Muni Intermediate Duration Fund, Inc.
During the six-month period ended November 30, 2005, Muni Intermediate
Duration Fund, Inc.'s Common Stock shareholders voted on the following
proposal. The proposal was approved at a shareholders' meeting on August 23,
2005. A description of the proposal and number of shares voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Directors: Robert C. Doll, Jr. 36,281,553 1,033,143
John Francis O'Brien 36,265,312 1,049,384
David H. Walsh 36,282,267 1,032,429
Fred G. Weiss 36,277,880 1,036,816
During the six-month period ended November 30, 2005, Muni Intermediate
Duration Fund, Inc.'s Preferred Stock shareholders (Series F, M, T, TH & W)
voted on the following proposal. The proposal was approved at a shareholders'
meeting on August 23, 2005. A description of the proposal and number of shares
voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Directors: Robert C. Doll, Jr.,
Donald W. Burton, Laurie Simon Hodrick, John Francis O'Brien,
David H. Walsh and Fred G. Weiss 10,401 20
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Proxy Results Muni New York Intermediate Duration Fund, Inc.
During the six-month period ended November 30, 2005, Muni New York
Intermediate Duration Fund, Inc.'s Common Stock shareholders voted on the
following proposal. The proposal was approved at a shareholders' meeting on
August 23, 2005. A description of the proposal and number of shares voted are
as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Directors: Robert C. Doll, Jr. 4,055,051 110,370
John Francis O'Brien 4,055,051 110,370
David H. Walsh 4,053,718 111,703
Fred G. Weiss 4,056,251 109,170
During the six-month period ended November 30, 2005, Muni Intermediate
Duration Fund, Inc.'s Preferred Stock shareholders (Series F) voted on the
following proposal. The proposal was approved at a shareholders' meeting on
August 23, 2005. A description of the proposal and number of shares voted are
as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Directors: Robert C. Doll, Jr.,
Donald W. Burton, Laurie Simon Hodrick, John Francis O'Brien,
David H. Walsh and Fred G. Weiss 1,093 28
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Disclosure of Investment Advisory Agreement
Activities of and Composition of the Board of Directors
All but one member of each Fund's Board of Directors is an independent
director whose only affiliation with Fund Asset Management, L.P. (the
"Investment Adviser") or other Merrill Lynch affiliates is as a director of
each Fund and as a trustee or director of certain other funds advised by the
Investment Adviser or its affiliates. The Chairmen of the Boards are also
independent directors. New director nominees are chosen as nominees by a
Nominating Committee consisting of independent directors. All independent
directors also are members of each Board's Audit Committee and the independent
directors meet in executive session at each in-person Board meeting. The Board
and the Audit Committee meet in person for at least two days each quarter and
conduct other in-person and telephone meetings throughout the year, some of
which are formal board meetings, and some of which are informational meetings.
The independent counsel to the independent directors attends all in-person
Board and Audit Committee meetings and other meetings at the independent
directors' request.
Investment Advisory Agreements--Matters Considered by the Board
Every year, each Board considers approval of each Fund's investment advisory
agreement (the "Investment Advisory Agreement"). Each Board assesses the
nature, scope and quality of the services provided to each Fund by the
personnel of the Investment Adviser and its affiliates, including
administrative services, shareholder services, oversight of fund accounting,
marketing services and assistance in meeting legal and regulatory
requirements. Each Board also receives and assesses information regarding
the services provided to the Fund by certain unaffiliated service providers.
At various times throughout the year, each Board also considers a range of
information in connection with its oversight of the services provided by the
Investment Adviser and its affiliates. Among the matters considered are:
(a) fees (in addition to management fees) paid to the Investment Adviser and
its affiliates by each Fund; (b) Fund operating expenses paid to third
parties; (c) the resources devoted to and compliance reports relating to each
Fund's investment objective, policies and restrictions, and its compliance
with its Code of Ethics and the Investment Adviser's compliance policies and
procedures; and (d) the nature, cost and character of non-investment
management services provided by the Investment Adviser and its affiliates.
Each Board believes that the Investment Adviser is one of the most experienced
global asset management firms and considers the overall services provided by
the Investment Adviser to be of high quality. Each Board also believes that
the Investment Adviser is financially sound and well managed and notes that
the Investment Adviser is affiliated with one of America's largest financial
firms. Each Board works closely with the Investment Adviser in overseeing the
Investment Adviser's efforts to achieve good performance. As part of this
effort, each Board discusses portfolio manager effectiveness and, when
performance is not satisfactory, discusses with the Investment Adviser taking
steps such as changing investment personnel.
Annual Consideration of Approvals by the Board of Directors
In the period prior to the Board meeting to consider renewal of the Investment
Advisory Agreement, each Board requests and receives materials specifically
relating to the Fund's Investment Advisory Agreement. These materials are
prepared separately for each Fund, and include (a) information compiled by
Lipper Inc. ("Lipper") on the fees and expenses and the investment performance
of the Fund as compared to a comparable group of funds as classified by
Lipper; (b) information comparing the Fund's market price with its net asset
value per share; (c) a discussion by the Fund's portfolio management team of
investment strategies used by the Fund during its most recent fiscal year; (d)
information on the profitability to the Investment Adviser and its affiliates
of the Investment Advisory Agreement and other relationships with the Fund;
and (e) information provided by the Investment Adviser concerning services
related to the valuation and pricing of Fund portfolio holdings, allocation of
Fund brokerage fees, the Fund's portfolio turnover statistics, and direct and
indirect benefits to the Investment Adviser and its affiliates from their
relationship with the Fund.
Certain Specific Renewal Data
In connection with the most recent renewal of each Fund's Investment Advisory
Agreement in November 2005, the independent directors' and Board's review
included the following:
Investment Adviser's Services and Fund Performance--Each Board reviewed the
nature, extent and quality of services provided by the Investment Adviser,
including the investment advisory services and the resulting performance of
each Fund. The Boards focused primarily on the Investment Adviser's investment
advisory services and each Fund's investment performance, having concluded
that the other services provided to each Fund by the Investment Adviser were
satisfactory. Each Board compared Fund performance - both including and
excluding the effects of each Fund's fees and expenses - to the performance of
a comparable group of mutual funds, and the performance of a relevant index or
combination of indexes. While each Board reviews performance data quarterly,
consistent with the Investment Adviser's investment goals, each Board attaches
primary importance to performance over relatively long periods of time,
typically three to five years. For a fund in operation for less than three
years, such as each of the Funds, the Board considers performance for the life
of the fund.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
The Board noted that for the period ended August 31, 2005, Muni Intermediate
Duration Fund, Inc.'s performance was in the second quintile for the one-year
period. The Board reviewed the Fund's investment objectives and strategies.
The Board discussed with senior management of the Investment Adviser
responsible for investment operations and the senior management of the
Investment Adviser's municipal investing group the strategies being used to
achieve the stated objectives. Among other things, the Board considered the
size, education and experience of the Investment Adviser's investment staff,
its use of technology, and the Investment Adviser's approach to training and
retaining portfolio managers and other research, advisory and management
personnel. The Board also reviewed the Investment Adviser's compensation
policies and practices with respect to the Fund's portfolio manager. The Board
also considered the experience of the Fund's portfolio manager and noted that
Mr. DiMella has over ten years of experience investing in municipal
securities. The Board concluded that the Fund's performance supported the
continuation of the Investment Advisory Agreement.
The Board noted that Muni New York Intermediate Duration Fund, Inc.'s
performance was in the fifth quintile for the one-year period ended August 31,
2005. In considering this measure of relative performance, the Board took into
account the fact that the universe of comparable funds was very small. The
Board reviewed the Fund's investment objectives and strategies. The Board
discussed with senior management of the Investment Adviser responsible for
investment operations and the senior management of the Investment Adviser's
municipal investing group the strategies being used to achieve the stated
objectives. Among other things, the Board considered the size, education and
experience of the Investment Adviser's investment staff, its use of
technology, and the Investment Adviser's approach to training and retaining
portfolio managers and other research, advisory and management personnel. The
Board also reviewed the Investment Adviser's compensation policies and
practices with respect to the Funds' portfolio manager. The Board also
considered the experience of the Funds' portfolio manager and noted that Mr.
Browse has over five years of experience investing in municipal securities.
The Board concluded that the Fund's performance supported the continuation of
the Investment Advisory Agreement.
Management Fees and Other Expenses--Each Board reviews the Fund's contractual
management fee rate and actual management fee rate as a percentage of total
assets at common asset levels - the actual rate includes advisory and
administrative service fees and the effects of any fee waivers - compared to
the other funds in its Lipper category. It also compares the Fund's total
expenses to those of other comparable funds. The Investment Adviser noted that
it did not have clients other than investment companies with similar
investment mandates. With respect to Muni Intermediate Duration Fund, Inc. the
Board noted that the contractual and actual management fee rates, as well as
total expenses, were lower than the median fees charged by comparable funds,
as determined by Lipper. With respect to Muni New York Intermediate Duration
Fund, Inc. the Board noted that contractual and actual management fee rates,
as well as total expenses, were equal to the median fees charged by comparable
funds, as determined by Lipper. Each Board concluded that the Fund's
management fee and fee rate and overall expense ratio are reasonable compared
to those of other comparable funds.
Profitability--Each Board considers the cost of the services provided to the
Fund by the Investment Adviser, and the Investment Adviser's and its
affiliates' profits relating to the management and distribution of the Fund
and the MLIM/FAM-advised funds. As part of its analysis, each Board reviewed
the Investment Adviser's methodology in allocating its costs to the management
of the Fund and concluded that there was a reasonable basis for the
allocation. The Boards also considered federal court decisions discussing an
investment adviser's profitability and profitability levels considered to be
reasonable in those decisions. Each Board believes the Investment Adviser's
profits are reasonable in relation to the nature and quality of services
provided.
Economies of Scale--Each Board considered the extent to which economies of
scale might be realized as the assets of a Fund increase and whether there
should be changes in the management fee rate or structure in order to enable
the Fund to participate in these economies of scale. Each Board considered
economies of scale to the extent applicable to each Fund's closed-end
structure and determined that each Fund appropriately benefits from any
economies of scale and no changes were currently necessary.
Conclusion
After the independent directors deliberated in executive session, each entire
Board, including all of the independent directors, approved the renewal of the
existing Investment Advisory Agreement, concluding that the advisory fee was
reasonable in relation to the services provided and that a contract renewal
was in the best interests of the shareholders.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Officers and Directors
Robert C. Doll, Jr., President and Director
Donald W. Burton, Director
Laurie Simon Hodrick, Director
John F. O'Brien, Director
David H. Walsh, Director
Fred G. Weiss, Director
Donald C. Burke, Vice President and Treasurer
Kenneth A. Jacob, Senior Vice President
John M. Loffredo, Senior Vice President
Timothy T. Browse, Vice President
Robert A. DiMella, Vice President
Jeffrey Hiller, Chief Compliance Officer
Alice A. Pellegrino, Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agents
Common Stock:
EquiServe
(c/o Computershare
Investor Services)
P.O. Box 43010
Providence, RI 02940-3010
1-800-426-5523
Preferred Stock:
The Bank of New York
101 Barclay Street--7 West
New York, NY 10286
Investment Objectives
NYSE Symbol Muni Intermediate Duration Fund, Inc. seeks to provide
MUI shareholders with high current income exempt from federal income
taxes by investing primarily in a portfolio of municipal
obligations, the interest on which, in the opinion of bond counsel
to the issuer, is exempt from federal income taxes.
NYSE Symbol Muni New York Intermediate Duration Fund, Inc. seeks to provide
MNE shareholders with high current income exempt from federal income
taxes and New York State and New York City personal income taxes
by investing primarily in a portfolio of municipal obligations,
the interest on which, in the opinion of bond counsel to the
issuer, is exempt from federal income taxes and New York State and
New York City personal income taxes.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Availability of Quarterly Schedules of Investments
The Funds file their complete schedules of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third quarters
of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the
SEC's Web site at http://www.sec.gov. The Funds' Forms N-Q may also be
reviewed and copied at the SEC's Public Reference Room in Washington, DC.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330.
Electronic Delivery
The Funds offer electronic delivery of communications to their shareholders.
In order to receive this service, you must register your account and provide
us with e-mail information. To sign up for this service, simply access this
Web site at http://www.icsdelivery.com/live and follow the instructions. When
you visit this site, you will obtain a personal identification number (PIN).
You will need this PIN should you wish to update your e-mail address, choose
to discontinue this service and/or make any other changes to the service. This
service is not available for certain retirement accounts at this time.
SEMI-ANNUAL REPORTS NOVEMBER 30, 2005
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-
annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable to this
semi-annual report
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable to this semi-
annual report
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable to this semi-annual report
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - Not Applicable
Item 11 - Controls and Procedures
11(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others
particularly during the period in which this report is being
prepared. The registrant's certifying officers have determined
that the registrant's disclosure controls and procedures are
effective based on our evaluation of these controls and procedures
as of a date within 90 days prior to the filing date of this
report.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal half-year
of the period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
Muni Intermediate Duration Fund, Inc.
By: /s/ Robert C. Doll, Jr.
----------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
Muni Intermediate Duration Fund, Inc.
Date: January 25, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.
By: /s/ Robert C. Doll, Jr.
----------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
Muni Intermediate Duration Fund, Inc.
Date: January 25, 2006
By: /s/ Donald C. Burke
----------------------------
Donald C. Burke,
Chief Financial Officer of
Muni Intermediate Duration Fund, Inc.
Date: January 25, 2006