MUNIVEST
FUND, INC.
FUND LOGO
Semi-Annual Report February 28, 1994
This report, including the financial information herein,
is transmitted to the shareholders of MuniVest Fund, Inc.
for their information. It is not a prospectus, circular or
representation intended for use in the purchase of shares
of the Fund or any securities mentioned in the report.
Past performance results shown in this report should not
be considered a representation of future performance.
The Fund has leveraged its Common Stock by issuing Pre-
ferred Stock to provide the Common Stock shareholders
with a potentially higher rate of return. Leverage creates
risks for Common Stock shareholders, including the
likelihood of greater volatility of net asset value and
market price 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.
MuniVest Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MUNIVEST FUND, INC.
<PAGE>
The Benefits and
Risks of
Leveraging
MuniVest Fund, Inc. utilizes leveraging to seek to enhance the
yield and net asset value of its Common Stock. However, these
objectives cannot be achieved in all interest rate environments.
To leverage, the Fund issues Preferred Stock, which pays
dividends at prevailing short-term interest rates, and invests
the proceeds in long-term municipal bonds. The interest earned on
these investments is paid to Common Stock shareholders in the
form of dividends, and the value of these portfolio holdings is
reflected in the per share net asset value of the Fund's Common
Stock. However, in order to benefit Common Stock shareholders,
the yield curve must be positively sloped; that is, short-term
interest rates must be lower than long-term interest rates. At
the same time, a period of generally declining interest rates
will benefit Common Stock shareholders. If either of these
conditions change, then the risks of leveraging will begin to
outweigh the benefits.
To illustrate these concepts, assume a fund's Common Stock
capitalization of $100 million and the issuance of Preferred
Stock for an additional $50 million, creating a total value of
$150 million available for investment in long-term municipal
bonds. If prevailing short-term interest rates are approximately
3% and long-term interest rates are approximately 6%, the yield
curve has a strongly positive slope. The fund pays dividends on
the $50 million of Preferred Stock based on the lower short-term
interest rates. At the same time, the fund's total portfolio of
$150 million earns the income based on long-term interest rates.
In this case, the dividends paid to Preferred Stock shareholders
are significantly lower than the income earned on the fund's
long-term investments, and therefore the Common Stock
shareholders are the beneficiaries of the incremental yield.
However, if short-term interest rates rise, narrowing the
differential between short-term and long-term interest rates, the
incremental yield pick-up on the Common Stock will be reduced. At
the same time, the market value on the fund's Common Stock (that
is, its price as listed on the American 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.
<PAGE>
Officers and
Directors
Arthur Zeikel, President and Director
Ronald W. Forbes, Director
Cynthia A. Montgomery, Director
Charles C. Reilly, Director
Kevin A. Ryan, Director
Richard R. West, Director
Terry K. Glenn, Executive Vice President
Donald C. Burke, Vice President
Vincent R. Giordano, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
The Bank of New York
110 Washington Street
New York, New York 10286
ASE Symbol
MVF
Transfer Agents
Common Stock:
The Bank of New York
110 Washington Street
New York, New York 10286
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
TO OUR SHAREHOLDERS
For the six months ended February 28, 1994, the Common Stock of
MuniVest Fund, Inc. earned $0.629 per share income dividends,
representing a net annualized yield of 12.54%, based on a month-
end per share net asset value of $10.12. Over the same period,
the Fund's total investment return was +1.43%, based on a change
in per share net asset value from $10.65 to $10.12, and assuming
reinvestment of $0.636 per share income dividends and $0.053
capital gains distributions.
For the six months ended February 28, 1994, the Fund's Preferred
Stock had an average dividend yield as follows: Series A, 2.365%;
Series B, 2.375%; Series C, 2.421%; Series D, 2.434%; and Series
E, 2.335%.
<PAGE>
The Environment
Inflationary expectations changed sharply during the February
quarter. Following better-than-expected economic results, Federal
Reserve Board Chairman Alan Greenspan indicated in Congressional
testimony in January that continued strong expansion in the eco-
nomy would lead the central bank to tighten monetary policy in
an effort to control inflation. On February 4, 1994, the central
bank broke with tradition and publicly announced a modest increase
in short-term interest rates.
Rather than than view the Federal Reserve Board's action as a
preemptive strike against inflation, fixed-income investors
focused on Chairman Greenspan's implicit promise of further
tightening should the rate of inflation accelerate, and bond
prices declined sharply. The setback in the bond market was also
reflected in greater stock market volatility.
In the weeks ahead, investors will continue to gauge the pace of
the economic expansion and watch for signs of an overheating
economy that could prompt successive Federal Reserve Board
actions to raise short-term interest rates. At this time, there
is little evidence that the rate of inflation will increase
rapidly. Job growth is sluggish, and new claims for unemployment
insurance have trended higher since the beginning of the year.
Commodity prices have risen somewhat, but in many cases these
increases are occurring from very depressed levels. Therefore,
although the secular long-term trend toward lower interest rates
may be over, it is not yet certain whether the pace of economic
activity will accelerate to the point where extensive Federal
Reserve Board tightening will be necessary to contain inflation.
The Municipal Market
Yields on long-term tax-exempt securities exhibited considerable
volatility during the three months ended February 28, 1994.
Initially, municipal bond yields resumed their earlier decline
and in mid-December reached 5.53% as measured by the Bond Buyer
Revenue Bond Index. Tax-exempt yields rose slightly for the
remainder of 1993 before increasing more substantially in 1994.
During the February period, long-term municipal bond yields
increased by approximately 15 basis points (0.15%) to 5.88%.
Over the same time, however, US Treasury bond yields rose
approximately 30 basis points to 6.70% at the end of February.
This outperformance by municipal bonds is likely to be the
dominant theme of much of 1994.
<PAGE>
During recent months, taxable yields have become volatile in
reaction to the inherent conflicts between the strong economic
recovery seen in late 1993 and early 1994 and continued low
inflationary pressures. While tax-exempt yields have reacted to
these conflicts, the municipal bond market has also focused on
the very strong technical factors supporting lower municipal bond
yields. During the past 12 months, municipalities issued over
$284 billion in bonds, an increase of over 17% versus a year ago.
Much of this increase has been the result of municipalities
refinancing existing high-couponed debt. At current yield levels,
few of these issues will remain to be refunded. This has led to
estimates of municipal bond issuance declining to approximately
$175 billion for all of 1994. Over $290 billion in long-term tax-
exempt bonds were issued during 1993. Thus far this year, this
expected decline in issuance has occurred. So far in 1994, new-
issue supply has fallen approximately 20% compared to the same
period last year.
In addition to this dramatic decline in issuance, investor demand
is expected to increase in the coming year. This demand should be
generated by a number of factors, with a recent increase in
marginal Federal income tax rates perhaps the dominant immediate
factor. Also, bond calls and early redemptions are expected to
increase significantly in the coming quarters and last at least
into early 1995. The combination of declining new-issue volume
and rising numbers of bonds being redeemed prior to their stated
maturities will eventually lead to a net decline in the number of
bonds outstanding. In such a scenario, investor demand rises as
bondholders are forced to continually purchase new municipal
bonds to replace their previous holdings.
The outlook for the municipal market is positive. While the
historic declines in yields seen last year are unlikely to be
repeated, the strong technical structure within the tax-exempt
market would easily support the retracing of much of the recent
increase in bond yields. At the very least, should interest rates
continue to rise in response to continued strong economic growth
and a resurgence in inflationary pressures, municipal bond price
deterioration should continue to be minimal in comparison to any
taxable investment alternative.
Portfolio Strategy
The Fund remains constructive on the long-term tax-exempt bond
market. In the coming months, the Fund will emphasize income-
oriented issues rather than those bonds which generate capital
appreciation. We will continue to purchase noncallable issues
whenever they are attractively priced to seek to maintain the
Fund's current yield into the coming years. We plan to reduce the
Fund's holdings of performance-oriented issues moderately during
the coming quarter. However, this reduction will not adversely
impact the Fund's ability to respond to future declines in tax-
exempt bond yields. The Fund's cash reserve position will remain
low, since large cash positions still negatively impact the
Fund's current yield. Also, given forecasts of reduced bond
supply, we expect the availability of attractively priced
investment-grade securities to be limited in the coming months.
<PAGE>
Over the past six months, short-term tax-exempt bond rates traded
in the 2.00%--2.50% range. This level of short-term interest
rates has had a very positive impact on the Fund's Common Stock
yield as a result of the leveraging effect of the Fund's
Preferred Stock. However, should the spread between short-term
and long-term interest rates narrow, the benefits of the
leveraging effect would diminish and reduce the yield on the
Fund's Common Stock. For a complete explanation of the benefits
and risks of leveraging, see page 1 of this report to share-
holders.
We appreciate your ongoing interest in MuniVest Fund, Inc., and
we look forward to serving your investment needs and objectives
in the months and years to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
March 25, 1994
Portfolio
Abbreviations
To simplify the listings of MuniVest Fund, Inc.'s portfolio
holdings in the Schedule of Investments, we have abbreviated the
names of many of the securities according to the list at right.
ACESSM Adjustable Convertible Extendable Securities
AMT Alternative Minimum Tax (subject to)
ARCS Auction Rate Certificates
BAN Bond Anticipation Notes
COP Certificates of Participation
DATES Daily Adjustable Tax-Exempt Securities
GO General Obligation Bonds
HFA Housing Finance Authority
IDA Industrial Development Authority
INFLOS Inverse Floating Rate Municipal Bonds
LEVRRS Leveraged Reverse Rate Securities
PARS Periodic Auction Reset Securities
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
SAVRS Select Auction Variable Rate Securities
S/F Single-Family
TRAN Tax Revenue Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Alabama--2.8% AAA NR $ 9,795 Alabama HFA, S/F Mortgage Revenue Bonds, Series A, 7.60% due 10/01/2022 (d) $ 10,530
BBB Baa1 8,750 Courtland, Alabama, Industrial Development Board, Revenue Refunding Bonds
(Champion International Corporation), Series A, 7.20% due 12/01/2013 9,644
BBB Baa1 5,000 Courtland, Alabama, Industrial Development Board, Solid Waste Disposal
Revenue Bonds (Champion International Corporation Project), AMT, 7%
due 6/01/2022 5,366
Alaska--4.0% A+ Aa1 7,500 Alaska State Housing Finance Corporation (Insured Mortgage Program),
First Series, 5.75% due 12/01/2023 7,281
North Slope Boro, Alaska, GO (Capital Appreciation), Series B, UT (c):
AAA Aaa 6,000 5.10%* due 1/01/2002 4,058
AAA Aaa 6,000 5.20%* due 1/01/2003 3,827
AA- A1 18,250 Valdez, Alaska, Marine Terminal Revenue Refunding Bonds (Sohio Pipeline),
7.125% due 12/01/2025 20,385
Arizona--3.5% A1+ VMIG1 1,500 Maricopa County, Arizona, IDA, Hospital Facility Revenue Bonds (Samaritan
Health Service Hospital), Series B2, VRDN, 2.20% due 12/01/2008 (c) (g) 1,500
AA-- Aa 10,000 Maricopa County, Arizona, Unified School District No. 48 (Scottsdale
Improvement), UT, 4.40% due 7/01/2013 8,625
BBB Baa2 3,000 Navajo County, Arizona, Pollution Control Corporation, Revenue Refunding
Bonds (Arizona Public Service Company), Series A, 5.875% due 8/15/2028 2,924
Phoenix, Arizona, Civic Improvement Corporation, Wastewater System Lease
Revenue Refunding Bonds:
A A1 5,000 5% due 7/01/2012 4,599
A A1 5,000 4.75% due 7/01/2023 4,301
AA P1 1,000 Pinal County, Arizona, IDA, PCR (Magma--Copper/Newmont Mining Corporation),
VRDN, 2.30% due 12/01/2009 (g) 1,000
AA Aa 10,000 Salt River Project, Arizona, Agricultural Improvement and Power District,
Electric System Revenue Refunding Bonds, Series C, 4.75% due 1/01/2017 8,806
<PAGE>
California--5.8% NR P1 2,300 California Pollution Control Financing Authority, Resource Recovery Revenue
Bonds (Delano Project), AMT, VRDN, 2.30% due 8/01/2019 (g) 2,300
Los Angeles, California, Department of Water and Power, Electric Plant
Crossover Revenue Refunding Bonds:
AA Aa 3,890 4.75% due 8/15/2014 3,443
AA Aa 18,000 Second Issue, 4.75% due 11/15/2019 15,640
Los Angeles, California, Department of Water and Power, Waterworks Crossover
Revenue Refunding Bonds, Second Issue:
AA Aa 7,060 4.50% due 5/15/2013 6,100
AA Aa 7,270 4.50% due 5/15/2018 6,191
University of California, COP (UCLA Central Chiller/Cogeneration) (k):
NR NR 1,245 10.75% due 11/01/1998 1,582
NR NR 3,315 10.75% due 11/01/1999 4,332
AAA Aaa 14,745 University of California, Revenue Refunding Bonds (Multiple Purpose Projects),
Series C, 4.75% due 9/01/2015 (h) 13,274
Colorado--4.4% BBB+ NR 3,250 Boulder County, Colorado, Hospital Revenue Bonds (Longmont United Hospital
Project), 8.20% due 12/01/2020 (a) 3,934
Denver, Colorado, City and County Airport Revenue Bonds:
BBB Baa1 11,150 AMT, Series C, 6.75% due 11/15/2013 11,615
BBB Baa1 4,405 AMT, Series C, 6.75% due 11/15/2022 4,571
BBB Baa1 7,340 Series A, 7.25% due 11/15/2025 8,011
Denver, Colorado, City and County School District No. 001, UT:
A+ A 2,000 COP, Series B, 10% due 12/01/2000 2,629
A+ A 2,000 COP, Series B, 10% due 12/01/2001 2,693
A+ A 1,450 Series A, 9.40% due 12/15/2000 1,857
AAA NR 2,125 El Paso County, Colorado, S/F Mortgage Revenue Bonds, AMT, Series A,
8% due 9/01/2022 (d) 2,287
NR A 1,335 Larimer County, Colorado, COP (Poudre School District No. R-1), 10%
due 12/01/2000 1,731
Connecticut-- AA- Aa 10,000 Connecticut State, GO, Series A, 9.875% due 3/01/2001 13,095
2.0% AA- A1 4,000 Connecticut State Special Tax Obligation Revenue Bonds (Transportation
Infrastructure), Series B, 10% due 10/01/2000 5,216
District of AAA Aaa 2,270 District of Columbia, Revenue Refunding Bonds, Series A-1, UT, 6.50%
Columbia--0.3% due 6/01/2010 (c) 2,488
Florida--4.7% AA Aaa 11,615 Florida HFA, Home Ownership Revenue Bonds, AMT, 7.90% due 3/01/2022 (d) 12,407
Largo, Florida, Suncoast Health System Hospital Revenue Refunding Bonds:
BBB- NR 2,000 6.20% due 3/01/2013 1,918
BBB- NR 3,015 6.30% due 3/01/2020 2,894
AAA Aaa 12,105 Orange County, Florida, Health Facilities Authority, Revenue Refunding
Bonds (Pooled Hospital Loan), Series A, 7.875% due 12/01/2025 (f) 13,013
Reedy Creek, Florida, Improvement District, Utility Revenue Bonds, Series
1 (c):
AAA Aaa 4,950 AMT, 8.50% due 10/01/2009 5,696
AAA Aaa 5,000 Refunding, 5% due 10/01/2014 4,636
A-3 VMIG2 1,055 Sarasota County, Florida, Health Facility Authority, Hospital Revenue Bonds
(Venice Hospital Project), ACES, VRDN, 2.25% due 12/01/2015 (g) 1,055
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Georgia--3.0% AA- A1 $ 4,000 Georgia Municipal Electric Authority, Power Revenue Refunding Bonds, Series
V, 6.60% due 1/01/2018 $ 4,443
Georgia Municipal Electric Authority, Special Obligation Revenue Bonds:
AA- A1 3,500 (Fourth Crossover Series--Project One), 6.50% due 1/01/2020 3,861
AA- A1 6,885 Refunding (Second Crossover Series), 8.125% due 1/01/2017 7,806
AA- A3 4,785 Monroe County, Georgia, Development Authority, PCR, Refunding (Oglethorpe
Power), Series A, 6.80% due 1/01/2011 5,366
BBB+ NR 5,250 Tri City Hospital Authority, Georgia, Hospital Revenue Bonds (South Fulton
Medical Center--Certificates), 6.375% due 7/01/2016 5,203
Hawaii--1.3% AAA NR 3,500 Hawaii State Department of Budget and Finance, Special Purpose Mortgage
Revenue Bonds (Citizens Utility Company), Linked RIB and SAVRS, AMT, Series
91A, 6.66% due 11/01/2021 3,768
AA Aaa 5,885 Honolulu, Hawaii, City and County, GO, Series A, UT, 10% due 8/01/2000 (k) 7,608
Illinois--4.9% A+ A1 9,650 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds
(Senior Lien), Series A, 5% due 1/01/2016 8,700
A+ A1 2,000 Chicago, Illinois, Water Revenue Bonds, 7.20% due 11/15/1999 (a) 2,297
Cook County, Illinois, COP, UT (Community College--District No. 508) (f):
AAA Aaa 5,000 8.40% due 1/01/2001 6,010
AAA Aaa 2,500 8.75% due 1/01/2004 3,168
BBB Baa2 7,000 Illinois Development Finance Authority, PCR, Refunding (Commonwealth Edison
Company Project), 7.25% due 6/01/2011 7,629
BBB+ NR 2,500 Illinois Educational Facilities Authority Revenue Bonds (Chicago Osteopathic
Health System), 7.25% due 5/15/2022 2,638
NR Baa1 7,375 Illinois Health Facilities Authority Revenue Bonds (Ravenswood Hospital
Medical Center), 6.90% due 6/01/2022 7,705
A- NR 2,500 Illinois Health Facilities Authority, Revenue Refunding and Improvement Bonds
(Swedish Covenant), Series A, 6.375% due 8/01/2023 2,539
BBB NR 2,500 Lansing, Illinois, Tax Increment Revenue Refunding Bonds (Sales Tax--Landings
Redevelopment), 7% due 12/01/2008 2,684
Indiana--0.3% A+ NR 2,100 Indianapolis, Indiana, Local Public Improvement Bond Bank, Revenue Refunding
Bonds, Series D, 6.75% due 2/01/2014 2,360
Iowa--0.8% NR Aaa 4,540 Iowa Finance Authority, S/F Mortgage Revenue Bonds, AMT, Series A, 7.90%
due 11/01/2022 (d) 4,948
A1+ NR 2,700 Iowa Finance Authority, Solid Waste Disposal Revenue Bonds (Cedar River Paper
Company Project), Series A, VRDN, 2.40% due 7/01/2023 (g) 2,700
<PAGE>
Kentucky--0.7% AAA Aaa 3,685 University of Kentucky, University Revenue Refunding Bonds, Consolidated
Educational Building, Second Series, 4.60% due 5/01/2011 (c) 3,331
AAA Aaa 2,935 University of Kentucky, University Revenue Refunding Bonds, Educational
Community Colleges, Second Series, 4.60% due 5/01/2010 (h) 2,675
Maryland--0.4% NR Aa1 500 Baltimore County, Maryland, Lease Revenue Refunding Bonds, 5% due 10/01/2012 467
AAA Aaa 2,000 Montgomery County, Maryland, Consolidated Public Improvement Revenue Bonds,
UT, 9.75% due 6/01/2001 2,657
AA+ Aa 600 University of Maryland, System Auxiliary Facilities and Tuition Revenue
Refunding Bonds, Series C, 5% due 10/01/2011 563
Massachusetts-- A+ A 13,190 Massachusetts State, GO (Consolidated Loan), UT, Series B, 9.25% due
7.6% 7/01/2000 16,373
AAA Aaa 7,300 Massachusetts State Health and Educational Facilities Authority Revenue
Bonds (Saint Elizabeth's Hospital), Linked ARCS and LEVRRS, 6.70% due
8/15/2021 (i) 7,973
BBB Baa1 2,300 Massachusetts State Health and Educational Facilities Authority Revenue
Bonds (Sisters Providence Health System), Series A, 6.625% due 11/15/2022 2,370
AA- NR 875 Massachusetts State Port Authority Revenue Bonds, Series A, 9.25% due
7/01/2005 950
A A 34,930 Massachusetts State Water Resource Authority Revenue Bonds, Series A, 6.50%
due 7/15/2019 38,502
NR NR 1,500 Merrimack Valley, Massachusetts, Regional Transportation Authority, BAN,
2.75% due 10/28/1994 1,498
Michigan--4.0% AAA Aaa 1,930 Detroit, Michigan, Water Supply System, Revenue Refunding Bonds, 4.75% due
7/01/2019 (f) 1,697
BBB Baa1 4,950 Dickinson County, Michigan, Economic Development Corporation, PCR, Refunding
(Champion International Corporation Project), 5.85% due 10/01/2018 4,805
AA Aa 2,040 Lansing, Michigan, Water Supply and Electric Utility System Revenue Bonds
(Board of Water and Light), Series A, 5% due 7/01/2013 1,887
BBB NR 4,385 Lapeer, Michigan, Economic Development Corporation, Limited Obligation
Revenue Bonds (Lapeer Health Services Project), 8.50% due 2/01/2012 (a) 5,312
AA- A1 2,500 Michigan Public Power Agency, Revenue Refunding Bonds (Belle River Project),
Series A, 5.25% due 1/01/2018 2,329
Michigan State Hospital Finance Authority, Revenue Refunding Bonds, Series A:
A- A 2,000 (Detroit Medical Center), 6.25% due 8/15/2013 2,054
A- A 7,430 (Detroit Medical Center), 6.50% due 8/15/2018 7,791
NR A 2,800 (McLaren Obligation Group), 5.375% due 10/15/2013 2,618
AA Aa 7,500 Royal Oak, Michigan, Hospital Finance Authority, Hospital Revenue Refunding
Bonds (William Beaumont Hospital), Series G, 5.25% due 11/15/2019 7,047
Minnesota--0.7% BBB Baa1 5,700 Sartell, Minnesota, PCR, Refunding (Champion International Corporation), 6.95%
due 10/01/2012 6,204
<PAGE>
Mississippi-- AAA Aaa 2,500 De Soto County, Mississippi, School District Revenue Bonds, UT, 4.75% due
0.8% 2/01/2013 (c) 2,243
NR P1 1,800 Jackson County, Mississippi, PCR, Refunding (Chevron U.S.A. Incorporated
Project), VRDN, 2.20% due 12/01/2016 (g) 1,800
NR P1 2,900 Perry County, Mississippi, PCR, Refunding (Leaf River Forest Project), VRDN,
2.25% due 3/01/2002 (g) 2,900
Missouri--0.3% AAA Aaa 2,090 Phelps County, Missouri, Hospital Revenue Bonds (Phelps County Regional Medical
Center), 8.30% due 3/01/2000 (a) 2,520
Nebraska--0.4% AAA Aaa 3,220 Nebraska Investment Finance Authority, S/F Mortgage Revenue Bonds, AMT, Series
1, 8.125% due 8/15/2038 (c) (d) 3,377
Nevada--1.3% AAA Aaa 9,580 Clark County, Nevada, School District Revenue Bonds, Series A, 9.75% due
6/01/2000 (c) 12,140
New Jersey--0.8% A A 6,400 New Jersey State Turnpike Authority, Revenue Refunding Bonds, Series C, 6.50%
due 1/01/2016 7,190
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
New York--9.7% A- Baa1 $ 3,000 New York City, New York, GO, Series A, 7.50% due 3/15/2000 $ 3,369
New York City, New York, GO, UT:
A- Baa1 2,000 Series A, 7.75% due 3/15/2004 2,280
A1+ VMIG1 700 Series B, VRDN, 2.30% due 10/01/2022 (f) (g) 700
A- Baa1 200 Series D, VRDN, 2.20% due 8/01/1995 (g) 200
A- Baa1 5,000 Series D, 7.875% due 8/01/2000 5,710
A- Baa1 5,000 Series D, 9.50% due 8/01/2002 6,340
A1+ VMIG1 2,000 Series D, VRDN, 2.15% due 2/01/2020 (g) 2,000
A- Baa1 6,500 Series F, 8.10% due 11/15/1999 7,495
A- Baa1 390 Series I, 7.50% due 8/15/1999 (a) 451
A- Baa1 1,610 Series I, 7.50% due 8/15/2002 1,769
A- Baa1 5,450 Series I, 7.50% due 8/15/2005 6,143
A1+ VMIG1 400 Subseries A-9, VRDN, 2.20% due 8/01/2018 (g) 400
A1+ VMIG1 400 New York City, New York, Municipal Water Finance Authority, Water and Sewer
System Revenue Bonds, Series C, VRDN, 2.20% due 6/15/2022 (f) (g) 400
BBB Baa1 3,845 New York State Dormitory Authority Revenue Bonds (City University System),
Series F, 7.75% due 7/01/2002 4,383
New York State Local Government Assistance Corporation Revenue Bonds:
A A 3,500 Series A, 6.875% due 4/01/2019 3,897
A A 13,000 Series C, 7% due 4/01/2010 14,569
AAA NR 14,060 Series D, 6.75% due 4/01/2021 (a) 16,124
AA Aa 9,400 New York State Medical Care Facilities Finance Agency, Hospital and
Nursing Home Mortgage, Revenue Bonds (Long Island College Hospital),
Series B, 8.10% due 2/15/2022 (b) 10,295
<PAGE>
North A- Aaa 3,850 North Carolina Eastern Municipal Power Agency, Power System Revenue
Carolina-- Refunding Bonds, Series A, 7.75% due 1/01/1999 (a) 4,454
0.6% NR VMIG1 700 Person County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Solid Waste Disposal Revenue Bonds (Carolina Power
and Light), DATES, AMT, 2.15% due 11/01/2016 (g) 700
North A+ Aa 1,590 North Dakota State HFA, S/F Mortgage Revenue Bonds, Series C, 8.75%
Dakota--0.2% due 1/01/2019 1,705
Ohio--3.5% Ohio HFA, S/F Mortgage Revenue Bonds, AMT (d):
AAA NR 11,860 Series A, 7.65% due 3/01/2029 12,696
AAA Aaa 4,250 Series B-4, RIB, 11.139% due 3/31/2031 (j) 4,691
AAA NR 7,740 Series C, 8.125% due 3/01/2020 8,489
AAA NR 4,935 Series C, 7.85% due 9/01/2021 5,133
Pennsylvania-- AAA Aaa 5,000 Bethlehem, Pennsylvania, Water Authority, Revenue Refunding Bonds, 4.875%
4.9% due 11/15/2014 (c) 4,564
A+ Aa3 5,000 Delaware County, Pennsylvania, IDA, Revenue Refunding Bonds (Resource
Recovery Project), Series A, 8.10% due 12/01/2013 5,494
A1+ NR 200 Geisinger Authority, Pennsylvania, Health System Revenue Bonds, Series B,
VRDN, 2.30% due 7/01/2022 (g) 200
AAA Aaa 3,650 New Castle, Pennsylvania, Hospital Authority Revenue Refunding Bonds
(Saint Francis Project), 9.25% due 6/01/1998 (a) 4,340
Pennsylvania HFA, S/F Mortgage Revenue Bonds, AMT:
AA Aa 11,665 Series R, 8.125% due 10/01/2019 12,578
AA Aa 4,890 Series U, 7.80% due 10/01/2020 5,304
AAA Aaa 10,000 Pennsylvania State Higher Education Assistance Agency, Student Loan
Revenue Bonds, AMT, RIB, 10.994% due 9/03/2026 (h) (j) 11,200
Rhode A- Baa1 15,000 Rhode Island Depositors Economic Protection Corporation, Special Obligation
Island--3.3% Revenue Refunding Bonds, Series A, 6.375% due 8/01/2022 16,019
AAA Aaa 6,000 Rhode Island Health and Education Building Corporation Revenue Bonds
(Rhode Island Hospital), Linked PARS and INFLOS, 6.85% due 8/15/2021 (f) (j) 6,569
AA+ A1 6,000 Rhode Island Housing and Mortgage Finance Corporation, INFLOS, Series B,
11.584% due 4/01/2024 (j) 6,668
South Carolina-- AAA Aaa 2,045 Richland County, South Carolina, Hospital Facilities Revenue Refunding Bonds
0.3% (South Carolina Baptist Hospital), Series B, 10% due 8/01/2001 (h) 2,702
Texas--11.4% Austin, Texas, Utility System Revenue Bonds (Prior Lien) (a):
AAA Aaa 5,450 10.75% due 5/15/2000 7,236
AAA Aaa 20,000 10% due 5/15/2000 (e) 25,764
AAA Aaa 6,000 Series A, 9.50% due 5/15/2000 7,556
Brazos River Authority, Texas, Revenue Refunding Bonds (Houston Light and
Power Company Project):
<PAGE> A- A2 6,600 Series A, 8.25% due 5/01/2019 7,426
AAA Aaa 1,750 Series C, 8.10% due 5/01/2019 (e) 1,998
BBB Baa1 4,000 Gulf Coast, IDA, Revenue Refunding Bonds (Champion International
Corporation), 7.125% due 4/01/2010 4,361
Harris County, Texas, Certificates of Obligation, Tax and Revenue Bonds:
AA+ Aa 2,400 10% due 10/01/1999 3,030
AA+ Aa 2,400 10% due 10/01/2002 3,248
AAA Aaa 7,500 Harris County, Texas, Toll Road Tax and Sub-Lien Revenue Bonds, UT, 10.375%
due 2/01/1998 (a) 9,129
A1+ NR 300 Houston, Texas, Health Facilities Development Corporation, Hospital
Revenue Bonds (Methodist Hospital Project), VRDN, 2.30% due 12/01/2021 (g) 300
AA Aa 5,750 North Central, Texas, Health Facilities Development Corporation Revenue
Bonds (Baylor University Medical Center), INFLOS, Series A, 11.084% due
5/15/2016 (j) 6,814
Tarrant County, Texas, Water Control and Improvement, District #001, Water
Revenue Refunding Bonds (h):
AAA Aaa 2,500 4.50% due 3/01/2011 2,231
AAA Aaa 5,000 4.75% due 3/01/2013 4,523
SP1+ MIG1++ 3,500 Texas State TRAN, 3.25% due 8/31/1994 3,508
AAA NR 5,000 Texas Veterans' Land Revenue Bonds, 8.30% due 12/01/1999 (a) 5,959
AA+ Aa1 7,000 University of Texas, Revenue Refunding Bonds (Permanent University Fund),
9.50% due 7/01/2000 8,889
Washington-- King County, Washington, Revenue Refunding Bonds:
10.3% AA+ Aa1 3,420 Series B, 4.50% due 1/01/2013 2,960
AA+ Aa1 3,580 Series B, 4.50% due 1/01/2014 3,069
AA+ Aa1 1,720 Series C, UT, 4.50% due 6/01/2012 1,500
AA+ Aa1 1,890 Series C, UT, 4.50% due 6/01/2014 1,617
AA+ Aa1 1,055 Series C, UT, 4.50% due 6/01/2015 899
AAA Aaa 5,315 Snohomish County, Washington, Public Utility District No. 001,
Electric Revenue Bonds, Series B, 9.75% due 1/01/1999 (f) 6,671
AAA NR 11,095 Washington State Housing Finance Commission, S/F Mortgage Revenue
Refunding Bonds, Series A, 7.70% due 7/01/2016 (d) 11,913
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Washington Washington State Public Power Supply System, Revenue Refunding Bonds
(concluded) (Nuclear Project No. 2) (a):
AA Aa $20,000 Series A, 7.375% due 7/01/2000 $ 23,249
AA Aa 12,000 Series C, 7.625% due 1/01/2001 14,153
Washington State, GO, Series A:
AA Aa 8,820 4.75% due 10/01/2013 7,944
AA Aa 21,000 4.50% due 10/01/2018 17,910
<PAGE>
West Virginia-- BBB+ A3 8,760 Mason County, West Virginia, PCR, Refunding (Appalachian Power Company
1.0% Project), Series I, 6.85% due 6/01/2022 9,407
Total Investments (Cost--$852,466)--100.0% 893,455
Variation Margin on Financial Futures Contracts--(0.1%)** (763)
Other Assets Less Liabilities--0.0% 624
--------
Net Assets--100.0% $893,316
========
<FN>
(a) Prerefunded.
(b) FHA Insured.
(c) MBIA Insured.
(d) GNMA Collateralized.
(e) BIGI Insured.
(f) FGIC Insured.
(g) The interest rate is subject to change periodically based upon the prevailing market rate.
The interest rates shown are those in effect at February 28, 1994.
(h) AMBAC Insured.
(i) FSA Insured.
(j) The interest rate is subject to change periodically and inversely to the prevailing market
rate. The interest rate shown is the rate in effect at February 28, 1994.
(k) Escrowed to Maturity.
++Highest short-term rating by Moody's Investors Service, Inc.
*Represents the yield to maturity.
**Financial Futures Contracts sold as of February 28, 1994 were as follows:
Number of Expiration Value
Contracts Issue Date (Note 1a)
905 US Treasury Note June 1994 $ (98,715,703)
95 US Treasury Note June 1994 (10,362,422)
810 US Treasury Note June 1994 (88,353,281)
535 US Treasury Note June 1994 (58,356,797)
370 US Treasury Note June 1994 (40,358,906)
-------------
(Total Contract Price--$297,585,156) $(296,147,109)
==============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of February 28, 1994
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$852,465,664) (Note 1a) $893,455,473
Cash 70,877
Receivables:
Interest $ 14,457,958
Securities sold 8,287,544 22,745,502
------------
Prepaid expenses and other assets 49,169
------------
Total assets 916,321,021
------------
Liabilities: Payables:
Securities purchased 20,849,725
Dividends to Common Stock shareholders 832,147
Variation margin (Note 1b) 763,594
Investment adviser (Note 2) 347,082 22,792,548
------------
Accrued expenses and other liabilities 212,734
------------
Total liabilities 23,005,282
------------
Net Assets: Net assets $893,315,739
============
Capital: Preferred Stock, par value $.10 per share; 10,000,000
shares authorized (2,750 shares of AMPS* issued and
outstanding, at $100,000 per share liquidation preference) (Note 4) $275,000,000
Common Stock, par value $.10 per share; 150,000,000 shares
authorized (61,123,140 shares issued and outstanding) (Note 4) $ 6,112,314
Paid-in capital in excess of par 563,529,670
Undistributed investment income--net 5,858,409
Undistributed realized capital gains--net 387,490
Unrealized appreciation on investments--net 42,427,856
------------
Total--Equivalent to $10.12 net asset value per share of Common
Stock (market price--$9.875) 618,315,739
------------
Total capital $893,315,739
============
<FN>
*Auction Market Preferred Stock.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended February 28, 1994
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 28,798,758
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 2,267,706
Commission fees (Note 4) 345,161
Transfer agent fees 90,751
Professional fees 47,340
Accounting services (Note 2) 38,773
Printing and shareholder reports 35,682
Custodian fees 34,716
Directors' fees and expenses 17,712
Pricing fees 10,048
Listing fees 7,407
Other 16,488
------------
Total expenses 2,911,784
------------
Investment income--net 25,886,974
------------
Realized & Realized gain on investments--net 10,699,797
Unrealized Gain Change in unrealized appreciation on investments--net (23,936,673)
(Loss) on ------------
Investments-- Net Increase in Net Assets Resulting from Operations $ 12,650,098
Net (Notes 1d & 3): ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the Year
Months Ended Ended
Increase (Decrease) in Net Assets: Feb. 28, 1994 Aug. 31, 1993
<S> <S> <C> <C>
Operations: Investment income--net $ 25,886,974 $ 54,510,029
Realized gain on investments--net 10,699,797 11,158,872
Change in unrealized appreciation/depreciation on investments--net (23,936,673) 30,340,925
------------ ------------
Net increase in net assets resulting from operations 12,650,098 96,009,826
------------ ------------
Dividends & Investment income--net:
Distributions to Preferred Stock (3,280,633) (6,992,500)
Shareholders Common Stock (22,092,990) (46,467,995)
(Note 1g): Realized gain on investments--net, to Common Stock shareholders (19,681,288) (15,079,136)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (45,054,911) (68,539,631)
------------ ------------
Common Stock Net increase in net assets derived from shares issued to Common
Transactions Stock shareholders in reinvestment of dividends 8,190,312 14,011,267
(Note 4): ------------ ------------
Net Assets: Total increase (decrease) in net assets (24,214,501) 41,481,462
Beginning of period 917,530,240 876,048,778
------------ ------------
End of period* $893,315,739 $917,530,240
============ ============
<FN>
*Undistributed investment income--net $ 5,858,409 $ 5,345,058
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been For the Six
derived from information provided in the financial Months Ended For the Year Ended August 31,
statements. February 28, -----------------------------------------
Increase (Decrease) in Net Asset Value: 1994 1993 1992 1991 1990
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.65 $ 10.19 $ 9.76 $ 9.28 $ 9.58
Operating -------- -------- -------- -------- ---------
Performance: Investment income--net .42 .92 .97 .96 1.02
Realized and unrealized gain (loss) on investments--net (.22) .69 .58 .49 (.26)
-------- -------- -------- -------- --------
Total from investment operations .20 1.61 1.55 1.45 .76
-------- -------- -------- -------- --------
Offering Costs Less dividends and distributions to Common Stock
Resulting from shareholders:
The Issuance of Investment income--net (.36) (.78) (.79) (.73) (.71)
Fund Shares: Realized gain on investments--net (.32) (.25) (.16) -- (.05)
-------- -------- -------- -------- --------
Total dividends and distributions to Common Stock
shareholders (.68) (1.03) (.95) (.73) (.76)
-------- -------- -------- -------- --------
Effect of Preferred Stock activity:
Dividends to Preferred Stock shareholders:
Investment income--net (.05) (.12) (.17) (.24) (.30)
-------- -------- -------- -------- --------
Net asset value, end of period $ 10.12 $ 10.65 $ 10.19 $ 9.76 $ 9.28
======== ======== ======== ======== ========
Market price per share, end of period $ 9.875 $ 11.25 $ 11.25 $ 10.25 $ 9.375
======== ======== ======== ======== ========
Total Based on market price per share (6.31%)+++ 10.39% 20.39% 18.02% 0.26%
Investment ======== ======== ======== ======== ========
Return:** Based on net asset value per share 1.43%+++ 15.38% 14.52% 13.53% 4.89%
======== ======== ======== ======== ========
<PAGE>
Ratios Expenses .64%* .65% .65% .66% .67%
To Average ======== ======== ======== ======== ========
Net Assets:*** Investment income--net 5.70%* 6.17% 6.58% 6.84% 7.05%
======== ======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock, end of period
Data: (in thousands) $618,316 $642,530 $601,049 $593,867 $527,574
======== ======== ======== ======== ========
Preferred Stock outstanding at end of period
(in thousands) $275,000 $275,000 $275,000 $275,000 $275,000
======== ======== ======== ======== ========
Portfolio turnover 51.72% 73.38% 112.10% 129.73% 112.81%
======== ======== ======== ======== ========
Dividends Per Series A--Investment income--net $ 1,271 $ 2,530 $ 3,512 $ 5,003 $ 6,096
Share on Series B--Investment income--net 1,107 2,568 3,528 4,973 6,108
Preferred Series C--Investment income--net 1,118 2,497 3,444 4,947 6,096
Stock Series D--Investment income--net 1,318 2,575 3,659 5,160 6,101
Outstanding: Series E--Investment income--net 1,165 2,543 3,534 5,046 6,034
<FN>
*Annualized.
**Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, result in substantially different
returns. Total investment returns exclude the effects of sales loads.
***Do not reflect the effect of dividends to Preferred Stock shareholders.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniVest Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 as a non-diversified, closed-end
management investment company. The following is a summary of
significant accounting policies followed by the Fund. The Fund
determines and makes available for publication the net asset
value of its Common Stock on a weekly basis. The Fund's Common
Stock is listed on the American Stock Exchange under the symbol MVF.
<PAGE>
(a) Valuation of investments--Municipal bonds are traded
primarily in the over-the-counter markets and are valued at the
most recent bid price or yield equivalent as obtained by the
Fund's pricing service from dealers that make markets in such
securities. Financial futures contracts, which are traded on
exchanges, are valued at their closing prices as of the close of
such exchanges. Options, which are traded on exchanges, are
valued at their last sale price as of the close of such exchanges
or, lacking any sales, at the last available bid price. Securities
with remaining maturities of sixty days or less are valued at
amortized cost, which approximates market. Securities for which
market quotations are not readily available are valued at fair
value as determined in good faith by or under the direction of
the Board of Directors of the Fund.
(b) Financial futures contracts--The Fund may purchase or sell
interest rate futures contracts and options on such futures
contracts for the purpose of hedging the market risk on existing
or the intended purchase of securities. Futures contracts are con-
tracts 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.
NOTES TO FINANCIAL STATEMENTS (concluded)
(c) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income
tax provision is required.
(d) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are
entered into (the trade dates). Interest income is recognized on
the accrual basis. Discounts and market premiums are amortized
into interest income. Realized gains and losses on security
transactions are determined on the identified cost basis.
(e) Deferred organization and offering expenses--Deferred organ-
ization expenses are amortized on a straight-line basis over a
five-year period. Direct expenses relating to the public offering
of both the Common Stock and the Auction Market Preferred Stock
("AMPS") were charged to capital at the time of issuance of
the stocks.
<PAGE>
(f) Non-income producing investments--Written and purchased options
are non-income producing investments.
(g) Dividends and distributions--Dividends and distributions paid
by the Fund are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). Effective January 1, 1994,
the investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch and Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc., an indirect wholly-owned subsidiary of
ML & Co. The limited partners are ML & Co. and Merrill Lynch Invest-
ment Management, Inc. ("MLIM"), which is also an indirect wholly-
owned subsidiary of ML & Co.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee at an annual rate of .50%
of the Fund's average weekly net assets.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of FAM, MLIM, Merrill Lynch, Pierce, Fenner & Smith
Inc. ("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended February 28, 1994 were $476,885,513 and
$454,219,695, respectively.
Net realized and unrealized gains (losses) as of February 28, 1994
were as follows:
Unrealized
Realized Gains
Gains (Losses)
Long-term investments $8,171,986 $40,995,906
Short-term investments 145 (6,097)
Financial futures contracts 2,527,666 1,438,047
----------- -----------
Total $10,699,797 $42,427,856
=========== ===========
<PAGE>
As of February 28, 1994, net unrealized appreciation for Federal
income tax purposes aggregated $40,989,809, of which $48,494,323
related to appreciated securities and $7,504,514 related to de-
preciated securities. The aggregate cost of investments at Feb-
ruary 28, 1994 for Federal income tax purposes was $852,465,664.
4. Capital Stock Transactions:
Common Stock
At February 28, 1994, the Fund had one class of shares of Common
Stock, par value $.10 per share, of which 150,000,000 shares were
authorized. For the six months ended February 28, 1994, shares issued
and outstanding increased by 779,075 to 61,123,140 as a result
of dividend reinvestment. At February 28, 1994, total paid-in capital
amounted to $569,641,984.
Preferred Stock
The AMPS of each series are shares of Preferred Stock of the Fund
that entitle their holders to receive cash dividends at an annual
rate that may vary for the successive dividend periods for each
series.
The number of AMPS shares authorized, issued and outstanding for
the six months ended February 28, 1994 are as follows:
Series A Series B Series C Series D Series E
AMPS AMPS AMPS AMPS AMPS
500 500 500 500 750
Liquidation preference is $100,000 per share.
The yields in effect at February 28, 1994 were as follows: Series
A, 2.40%; Series B, 2.201%; Series C, 2.33%; Series D, 2.416%;
and Series E, 2.35%.
The Fund pays a commission to certain broker-dealers at the end
of each auction at the annual rate of one-quarter of 1% calculated
on the proceeds of each auction. For the six months ended Feb-
ruary 28, 1994, MLPF&S, an affiliate of MLIM, received $222,013
as commissions.
5. Subsequent Event:
On March 11, 1994, the Fund's Board of Directors declared an or-
dinary income dividend to Common Stock shareholders in the amount
of $.056519 per share, payable on March 30, 1994 to shareholders
of record as of March 21, 1994.
<PAGE>
PER SHARE INFORMATION
<TABLE>
Per Share Selected
Quarterly Financial
Data*
<CAPTION>
Dividends/Distributions
------------------------------
Net Unrealized Net Investment Income
Investment Realized Gains --------------------- Capital
For the Quarter Income Gains (Losses) Common Preferred Gains
<S> <C> <C> <C> <C> <C> <C>
March 1, 1992 to May 31, 1992 $.24 $.04 $.04 $.20 $.04 --
June 1, 1992 to August 31, 1992 .25 .13 .17 .21 .04 --
September 1, 1992 to November 31, 1992 .24 -- (.11) .20 .03 --
December 1, 1992 to February 28, 1993 .22 .08 .56 .20 .03 $.25
March 1, 1993 to May 31, 1993 .23 .02 (.25) .19 .03 --
June 1, 1993 to August 31, 1993 .23 .09 .30 .19 .03 --
September 1, 1993 to November 30, 1993 .21 .16 (.30) .19 .03 --
December 1, 1993 to February 28, 1994 .21 .05 (.13) .17 .02 .32
<CAPTION>
Net Asset Value Market Price**
------------------- ------------------
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
March 1, 1992 to May 31, 1992 $ 9.88 $ 9.66 $11.125 $10.375 3,502
June 1, 1992 to August 31, 1992 10.58 9.86 11.75 10.505 3,949
September 1, 1992 to November 31, 1992 10.33 9.77 11.75 10.25 3,299
December 1, 1992 to February 28, 1993 10.46 9.82 11.375 10.50 2,526
March 1, 1993 to May 31, 1993 10.56 10.11 11.375 10.625 2,105
June 1, 1993 to August 31, 1993 10.65 10.25 11.50 10.75 2,190
September 1, 1993 to November 30, 1993 10.86 10.44 11.25 10.25 2,454
December 1, 1993 to February 28, 1994 10.76 10.11 10.75 9.375 2,851
<PAGE>
<FN>
*Calculations are based upon shares of Common Stock outstanding
at the end of each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
