MUNIVEST
FUND, INC.
FUND LOGO
Annual Report August 31, 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
Preferred Stock to provide the Common Stock share-
holders 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
<PAGE>
MUNIVEST FUND, INC.
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 year ended August 31, 1994, the Common Stock of MuniVest
Fund, Inc. earned $0.970 per share income dividends, representing
a net annualized yield of 10.14%, based on a month-end per share
net asset value of $9.57. Over the same period, the Fund's total
investment return was -0.44%, based on a change in per share net
asset value from $10.65 to $9.57, and assuming reinvestment of
$0.976 per share income dividends and $0.053 capital gains
distributions.
For the six months ended August 31, 1994, the Common Stock of
MuniVest Fund, Inc. earned $0.341 per share income dividends,
representing a net annualized yield of 7.10%, based on a month-
end per share net asset value of $9.57. Over the same period, the
Fund's total investment return was -1.84%, based on a change in
per share net asset value from $10.12 to $9.57, and assuming
reinvestment of $0.340 per share income dividends.
<PAGE>
For the year ended August 31, 1994, the Fund's Preferred Stock
had an average dividend yield as follows: Series A, 2.558%;
Series B, 2.503%; Series C, 2.577%; Series D, 2.569%; and Series
E, 2.515%.
The Environment
Concerns of increasing inflationary pressures continued to prompt
volatility in the US stock and bond markets during the March--
August period. In addition, the weakness of the US dollar in
foreign exchange markets prolonged stock and bond market declines
during July. While the immediate concerns regarding the US dollar
had diminished by late July, the possibility of continued
tightening by the Federal Reserve Board resurfaced after Chairman
Alan Greenspan gave his most recent Congressional testimony.
However, a lower-than-expected rate of growth reported for the US
economy during the second calendar quarter allayed inflationary
concerns to some degree, despite the fifth increase in short-term
interest rates made by the central bank in mid-August.
While the economic recovery is continuing, data suggest that it
is losing some momentum. Consumer spending is increasing, but at
a relatively slow pace, and existing home sales may have peaked.
In the industrial sector, capital goods spending is still on the
rise, but the gain for the second quarter was revised downward to
6.5%. On balance, the growth in US industry is progressing at a
steady, modest rate.
Despite evidence of a moderating trend in the US economy, Chairman
Greenspan indicated in his July Humphrey-Hawkins testimony that
the central bank would prefer to err on the side of too much monetary
tightening rather than too little. In the weeks ahead, investors will
continue to assess economic data and inflationary trends in order to
gauge whether further increases in short-term interest rates are
imminent. Continued indications of moderate and sustainable levels
of economic growth would be positive for the US capital markets.
The Municipal Market
During the six-month period ended August 31, 1994, tax-exempt
bond yields exhibited continued volatility as they rose to their
highest level in nearly two years. As measured by the Bond Buyer
Revenue Bond Index, the yield on a newly issued municipal revenue
bond maturing in 30 years rose approximately 60 basis points (0.60%)
to 6.46% at the end of August. Yields on seasoned municipal issues
rose by approximately 70 basis points in sympathy with the even more
dramatic rise in US Treasury bond yields. By the end of August,
yields on US Treasury securities had risen approximately 80 basis
points to end the period at 7.47%.
<PAGE>
Long-term tax-exempt interest rates continued to rise in March, as
investors began to sell securities in anticipation of further
interest rate increases by the Federal Reserve Board. These fears
were realized as the Federal Reserve Board continued to raise
interest rates in subsequent months. Municipal bond yields rose
to a high of 6.60% in mid-May amid indications of a continued
strong economic recovery and potential resurgent inflationary
pressures. In recent months, a number of economic indicators have
suggested that the pace of the current economic expansion is
slowing. Also, many analysts believe that the Federal Reserve
Board will now wait some period of time before acting again in
order to judge the overall impact of their actions upon economic
growth and inflation. These factors have allowed municipal bond
yields to decline approximately 15 basis points to 6.46% and
attain a small measure of overall stability in recent weeks.
The magnitude of the rise in tax-exempt bond yields during the
past six months has not been seen since 1987 when municipal bond
yields rose 250 basis points from March to October in that year.
It is very important to note that the municipal bond price
declines over the last six months, while certainly damaging, were
essentially much different than the 1987 episode. Recent price
declines have largely been the result of consistent and insistent
selling pressures over the last six months. In the 1987 period,
the tax-exempt bond market was much more volatile and, at times,
chaotic as investors sought to liquidate positions without much
concern to fundamental value. The recent price deterioration, for
the most part, has been orderly and the municipal bond market's
liquidity and integrity have not been challenged or jeopardized.
To a large extent, the municipal bond market has continued to be
supported by its strong technical position. New-issue volume for
the last six months was approximately $83 billion, which
represents a decline of approximately 50% versus the comparable
period a year earlier. This reduction was expected and discussed in
earlier shareholder reports. This decline in issuance minimized
potential selling pressures in recent months as institutional
investors have been wary of selling appreciable amounts of
securities that they may be unable to replace later this year at
any price level. We expect this decline in new bond issuance to
continue this year and into 1995.
Despite recent price declines, tax-exempt securities remain among
the most attractive investment alternatives available. Longer-
term municipal securities, after the recent yield increases,
provide a yield approximately 85% of comparable US Treasury
issues. Purchasers of these municipal bonds also accrue
substantial after-tax yield advantages. For example, to investors
in the 39% marginal Federal income tax bracket, the purchase of a
tax-exempt product yielding 6.40% represents an after-tax
equivalent of 10.50%. With prevailing estimates of 1994 inflation
at no more than 3%--4%, real (inflation adjusted) after-tax rates
in excess of 6.25% easily compensate longer-term investors for
much of the price volatility recently experienced.
<PAGE>
We continue to look for municipal bond yields to decline later
this year and into 1995, as inflationary pressures remain low,
and as the domestic economy is further slowed by the impact of
higher interest rates. As this scenario unfolds, currently
available tax-exempt products should generate attractive returns
for long-term investors.
Portfolio Strategy
In March and April 1994, it became apparent that the Federal
Reserve Board was committed to further increases in short-term
interest rates in order to prevent the creation of any
significant inflationary pressures. Therefore, we restructured
MuniVest Fund, Inc. by raising its cash reserves to approximately
10% of net assets and reducing the Fund's holdings of more
interest rate-sensitive issues. In addition, we placed greater
emphasis on higher-coupon, more defensive issues. We maintained
this strategy throughout the remainder of the six-month period
ended August 31, 1994. Consequently, the Fund's current yield was
enhanced and its responsiveness to interest rate volatility
was reduced.
Looking ahead, we expect to maintain our current strategy until
signs that the economic expansion is slowing become more
pronounced and no additional increases by the Federal Reserve
Board seem forthcoming. The Fund's current composition and
structure will allow it to recapture much, if not all, of its
capital depreciation should tax-exempt interest rates decline
further in 1994 and 1995. However, the Fund's recent
restructuring should prevent any material capital depreciation in
response to further interest rate volatility. The increased
current yield gained during the restructuring should continue to
augment the Fund's dividend well into the next decade.
Over the past six months, short-term cash equivalents have traded
in the 2.50%--3% range, rising approximately 75 basis points in
response to the series of Federal Reserve Board interest rate
increases. During the same period, yields on corresponding
taxable instruments rose approximately 150 basis points. This
relatively smaller response by short-term municipal securities
has allowed the leverage of the Preferred Stock to continue to
have a very positive impact upon the yield of the Common Stock
shareholder. However, should the spread between short-term and
long-term tax-exempt rates narrow, the benefits of this leverage
will 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 shareholders.
<PAGE>
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
September 23, 1994
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<C> <C> <C> <S> <C>
STATE
Alabama--2.8%
AAA NR $ 9,795 Alabama HFA, S/F Mortgage Revenue Bonds, Series A, 7.60% due 10/01/2022 (d) $ 10,226
BBB Baa1 8,750 Courtland, Alabama, Industrial Development Board, Revenue Refunding Bonds
(Champion International Corporation), Series A, 7.20% due 12/01/2013 9,081
BBB Baa1 5,000 Courtland, Alabama, Industrial Development Board, Solid Waste Disposal Revenue Bonds
(Champion International Corporation Project), AMT, 7% due 6/01/2022 5,034
Alaska--3.2% North Slope Boro, Alaska, Revenue Bonds, UT, Series B (c):
AAA Aaa 6,000 5.10%* due 1/01/2002 4,039
AAA Aaa 6,000 5.20%* due 1/01/2003 3,796
AA- A1 18,250 Valdez, Alaska, Marine Terminal Revenue Refunding Bonds (Sohio Pipeline),
7.125% due 12/01/2025 19,203
Arizona--4.1%
NR Aa 5,000 Arizona Educational Loan Marketing Corporation, Educational Loan Revenue Bonds,
Senior Series B, VRDN, 3.20% due 12/01/2002 (g) 5,000
A-1 P1 2,500 Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding (Arizona
Public Service Company), Series D, VRDN, 3.30% due 5/01/2029 (g) 2,500
AA- Aa 10,000 Maricopa County, Arizona, Unified School District No. 48 (Scottsdale Improvement),
UT, 4.40% due 7/01/2013 7,902
A A1 5,000 Phoenix, Arizona, Civic Improvement Corporation, Wastewater System Lease Revenue
Refunding Bonds, 4.75% due 7/01/2023 3,931
A-1+ VMIG1 2,100 Phoenix, Arizona, Series 2, UT, VRDN, 3.35% due 6/01/2018 (g) 2,100
AA P1 900 Pinal County, Arizona, IDA, PCR (Magma-Copper/Newmont Mining Corporation), VRDN,
3.35% due 12/01/2009 (g) 900
Salt River Project, Arizona, Agricultural Improvement and Power District,
Electric System Revenue Bonds:
AA Aa 5,000 Refunding, Series C, 4.75% due 1/01/2017 4,062
AA Aa 9,000 Series A, 6.50% due 1/01/2022 9,149
<PAGE>
Arkansas--0.1%
AAA NR 1,000 Arkansas State Development Finance Authority, S/F Mortgage Revenue Bonds (Mortgage
Backed Security Program), Series B, AMT, 6.40% due 1/01/2027 (d) 989
California--3.5%
Los Angeles, California, Department of Water and Power, Electric Plant Crossover
Revenue Refunding Bonds:
AA Aa 3,890 4.75% due 8/15/2014 3,176
AA Aa 7,500 Second Issue, 4.75% due 11/15/2019 5,945
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 5,576
AA Aa 7,270 4.50% due 5/15/2018 5,552
University of California, COP (UCLA Central Chiller/Cogeneration) (k):
NR NR 1,245 10.75% due 11/01/1998 1,522
NR NR 3,315 10.75% due 11/01/1999 4,180
AAA Aaa 5,000 University of California, Revenue Refunding Bonds (Multiple Purpose Projects), Series C,
4.75% due 9/01/2015 (h) 4,099
</TABLE>
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.
ACES SM 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
RAN Revenue Anticipation Notes
RIB Residual Interest Bonds
SAVRS Select Auction Variable Rate Securities
S/F Single-Family
TAN Tax Anticipation Notes
TRAN Tax Revenue Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<C> <C> <C> <S> <C>
STATE
Colorado--3.9%
BBB+ NR $ 3,250 Boulder County, Colorado, Hospital Revenue Bonds (Longmont United Hospital Project),
8.20% due 12/01/2020 (a) $ 3,822
Denver, Colorado, City and County Airport Revenue Bonds:
BB Baa 11,150 AMT, Series C, 6.75% due 11/15/2013 10,173
BB Baa 1,905 AMT, Series C, 6.75% due 11/15/2022 1,712
BB Baa 7,340 Series A, 7.25% due 11/15/2025 7,153
Denver, Colorado, City and County School District No. 001, UT:
A+ A 2,000 COP, Series B, 10% due 12/01/2000 2,512
A+ A 2,000 COP, Series B, 10% due 12/01/2001 2,565
A+ A 1,450 Series A, 9.40% due 12/15/2000 1,773
AAA NR 1,910 El Paso County, Colorado, S/F Mortgage Revenue Bonds, AMT, Series A,
8% due 9/01/2022 (d) 1,984
NR A 1,335 Larimer County, Colorado, COP (Poudre School District No. R-1), 10% due 12/01/2000 1,680
Connecticut--1.8%
A- VMIG1 3,100 Connecticut State, Economic Recovery Notes, VRDN, Series B, 3.05% due 6/01/1996 (g) 3,100
AA- Aa 10,000 Connecticut State, GO, Series A, 9.875% due 3/01/2001 12,633
District of Columbia--0.3%
AAA Aaa 2,270 District of Columbia, Revenue Refunding Bonds, Series A-1, UT, 6.50% due 6/01/2010 (c) 2,338
Florida--3.5%
BBB Baa1 3,000 Escambia County, Florida, PCR (Champion International Corporation Project), AMT,
6.90% due 8/01/2022 3,000
NR Aaa 11,450 Florida HFA, Home Ownership Revenue Bonds, AMT, 7.90% due 3/01/2022 (d) 11,868
A-1+ VMIG1 200 Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric Company Project),
VRDN, 3.35% due 5/15/2018 (g) 200
Largo, Florida, Suncoast Health System, Hospital Revenue Refunding Bonds:
BBB- NR 2,000 6.20% due 3/01/2013 1,879
BBB- NR 3,015 6.30% due 3/01/2020 2,759
AAA Aaa 4,985 Orange County, Florida, Health Facilities Authority, Revenue Refunding Bonds (Pooled
Hospital Loan), Series A, 7.875% due 12/01/2025 (f) 5,284
NR VMIG1 400 Palm Beach County, Florida, Water and Sewer Revenue Bonds, VRDN, 3.35% due 10/01/2011 (g) 400
A-1 VMIG1 2,900 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding Bonds
(Pooled Hospital Loan Project), DATES, 3.35% due 12/01/2015 (g) 2,900
A-1 VMIG1 2,100 Saint Lucie County, Florida, PCR, Refunding (Florida Power & Light Company Project),
VRDN, 3.30% due 1/01/2026 (g) 2,100
<PAGE>
Georgia--8.9%
AAA Aaa 7,450 Fulton County, Georgia, Water and Sewer Revenue Refunding Bonds, 6.375% due 1/01/2014 (f) 7,775
A+ A 7,500 Georgia Municipal Electric Authority, Power Revenue Refunding Bonds, Series V,
6.60% due 1/01/2018 7,838
Georgia Municipal Electric Authority, Special Obligation Revenue Bonds:
A+ A 2,000 (First Crossover Series--General Resolution), 6.50% due 1/01/2020 2,068
A+ A 7,750 (Fifth Crossover Series--Project One), 6.50% due 1/01/2017 8,076
A+ A 5,000 (Fourth Crossover Series--Project One), 6.50% due 1/01/2020 5,170
A+ A 4,850 (Third Crossover Series), 6.60% due 1/01/2018 5,069
Georgia State, GO:
AA+ Aaa 10,000 Series D, UT, 6.80% due 8/01/2011 11,022
AA+ Aaa 8,900 Series F, 6.50% due 12/01/2006 9,743
AA+ Aaa 10,000 Series F, 6.50% due 12/01/2007 10,911
AA- A3 4,785 Monroe County, Georgia, Development Authority, PCR, Refunding (Oglethorpe Power),
Series A, 6.80% due 1/01/2011 5,031
BBB+ NR 4,250 Tri City Hospital Authority, Georgia, Hospital Revenue Bonds (South Fulton Medical
Center--Certificates), 6.375% due 7/01/2016 3,910
Hawaii--0.4%
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 (g) (j) 3,562
Illinois--4.9%
Cook County, Illinois, COP, UT (Community College--District No. 508) (f):
AAA Aaa 5,000 8.40% due 1/01/2001 5,836
AAA Aaa 2,500 8.75% due 1/01/2004 3,076
BBB Baa2 7,000 Illinois Development Finance Authority, PCR, Refunding (Commonwealth Edison Company
Project), 7.25% due 6/01/2011 7,246
Illinois Educational Facilities Authority Revenue Bonds:
BBB+ NR 2,500 (Chicago Osteopathic Health System), 7.25% due 5/15/2022 2,540
A+ A1 1,930 Refunding (Loyola University), 6.50% due 7/01/2015 1,937
NR Baa1 7,375 Illinois Health Facilities Authority Revenue Bonds (Ravenswood Hospital Medical Center),
6.90% due 6/01/2022 7,347
A- NR 2,500 Illinois Health Facilities Authority, Revenue Refunding and Improvement Bonds (Swedish
Covenant), Series A, 6.375% due 8/01/2023 2,381
A+ A1 3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds (OSF Healthcare Systems),
6% due 11/15/2023 2,759
AAA Aa 5,750 Illinois State Sales Tax Revenue Bonds, Series P, 6.50% due 6/15/2022 6,000
BBB NR 2,500 Lansing, Illinois, Tax Increment Revenue Refunding Bonds (Sales Tax--Landings
Redevelopment), 7% due 12/01/2008 2,594
Indiana--0.7%
Indianapolis, Indiana, Local Public Improvement Bond Bank, Revenue Refunding Bonds,
Series D:
A+ NR 2,100 6.75% due 2/01/2014 2,259
A+ NR 4,000 6.75% due 2/01/2020 4,037
Iowa--0.7%
NR Aaa 4,505 Iowa Finance Authority, S/F Mortgage Revenue Bonds, AMT, Series A, 7.90%
due 11/01/2022 (d) 4,681
<PAGE>
A-1+ NR 1,000 Iowa Finance Authority, Solid Waste Disposal Revenue Bonds (Cedar River Paper Company
Project), Series A, VRDN, 3.50% due 7/01/2023 (g) 1,000
Kentucky--0.6%
AAA Aaa 3,685 University of Kentucky, University Revenue Refunding Bonds, Consolidated Educational
Building, Second Series, 4.60% due 5/01/2011 (c) 3,057
AAA Aaa 2,935 University of Kentucky, University Revenue Refunding Bonds, Educational Community
Colleges, Second Series, 4.60% due 5/01/2010 (h) 2,463
Louisiana--0.7%
A-1+ NR 2,600 Calcasieu Parish Incorporated, Louisiana, Industrial Development Board, Revenue
Refunding Bonds (Olin Corporation Project), VRDN, Series B, 3.20% due 2/01/2016 (g) 2,600
NR Baa3 3,000 Lake Charles, Louisiana, Harbor and Terminal District, Port Facilities Revenue
Refunding Bonds (Trunkline Long Company Project), 7.75% due 8/15/2022 3,234
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<C> <C> <C> <S> <C>
STATE
Massachusetts--9.9%
AAA Aaa $ 2,035 Boston, Massachusetts, Water and Sewer Commission Revenue Bonds, Series A,
9.25% due 1/01/2011 (k) $ 2,717
Massachusetts Bay Transportation Authority Revenue Bonds (Massachusetts General
Transportation Systems), Series A:
A+ A 3,010 7% due 3/01/2019 3,352
A+ A 16,000 7% due 3/01/2021 17,926
A+ A 5,690 Massachusetts State, GO (Consolidated Loans), UT, Series B, 9.25% due 7/01/2000 6,871
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 (g) (i) (j) 7,557
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 2,175
AA- NR 875 Massachusetts State Port Authority Revenue Bonds, Series A, 9.25% due 7/01/2005 926
A A 39,630 Massachusetts State Water Resource Authority Revenue Bonds, Series A,
6.50% due 7/15/2019 41,642
NR NR 1,500 Merrimack Valley, Massachusetts, Regional Transportation Authority, BAN,
2.75% due 10/28/1994 1,498
<PAGE>
Michigan--4.5%
AAA Aaa 1,930 Detroit, Michigan, Water Supply System, Revenue Refunding Bonds, 4.75% due 7/01/2019 (f) 1,549
BBB Baa1 4,950 Dickinson County, Michigan, Economic Development Corporation, PCR, Refunding (Champion
International Corporation Project), 5.85% due 10/01/2018 4,380
BBB NR 4,385 Lapeer, Michigan, Economic Development Corporation, Limited Obligation Revenue Bonds
(Lapeer Health Services Project), 8.50% due 2/01/2000 (a) 5,163
AA- A 1,000 Michigan State Building Authority, Revenue Refunding Bonds, Series I, 6.75% due 10/01/2011 1,048
Michigan State Hospital Finance Authority, Revenue Refunding Bonds, Series A:
A- A 2,000 (Detroit Medical Center), 6.25% due 8/15/2013 1,937
A- A 7,430 (Detroit Medical Center), 6.50% due 8/15/2018 7,341
NR A1 2,800 (McLaren Obligation Group), 5.375% due 10/15/2013 2,430
Michigan State Housing Development Authority, S/F Mortgage Revenue Bonds, Series A:
AA+ NR 2,000 6.45% due 12/01/2014 2,001
AA+ NR 1,000 6.50% due 12/01/2017 1,002
AAA Aaa 1,565 Michigan State Municipal Bond Authority Revenue Bonds (Local Government Loan Program),
Series A, 6.125% due 12/01/2018 (f) 1,558
NR P1 1,700 Michigan State Strategic Fund, Limited Obligation Revenue Bonds (Dow Chemical Company
Project), VRDN, AMT, 3.50% due 12/01/2014 (g) 1,700
Michigan State Trunk Line, Series A:
AA- A1 2,000 5.60% due 11/15/2010 1,908
AAA Aaa 1,500 5.75% due 11/15/2020 (f) 1,415
AA- Aa 2,500 Royal Oak, Michigan, Hospital Finance Authority, Hospital Revenue Refunding Bonds
(Beaumont Properties, Inc.), Series E, 6.625% due 1/01/2019 2,548
Aa Aa1 3,000 University of Michigan, University Revenue Refunding Bonds, Series A,
5.75% due 12/01/2012 2,850
Minnesota--0.7%
BBB Baa1 5,700 Sartell, Minnesota, PCR, Refunding (Champion International Corporation),
6.95% due 10/01/2012 5,828
Mississippi--0.3%
AAA Aaa 2,500 De Soto County, Mississippi, School District Revenue Bonds, UT, 4.75% due 2/01/2013 (c) 2,108
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) 2,449
Nebraska--0.3%
AAA Aaa 2,830 Nebraska Investment Finance Authority, S/F Mortgage Revenue Bonds, AMT, Series 1,
8.125% due 8/15/2038 (c) (d) 2,960
New Jersey--1.0%
New Jersey State Turnpike Authority, Revenue Refunding Bonds, Series C:
A A 3,250 6.50% due 1/01/2009 3,463
A A 5,000 6.50% due 1/01/2016 5,249
New Mexico--0.1%
NR Aa 675 New Mexico System Revenue Bonds (Military Institution at Rosewell), 6% due 6/01/2013 674
<PAGE>
New York--8.8%
NR MIG1++ 4,000 Erie County, New York, RAN, UT, 4.75% due 8/15/1995 4,026
New York City, New York, GO, UT:
A- Baa1 2,000 Series A, 7.75% due 3/15/2004 2,217
SP-1+ MIG1++ 6,000 Series A, TAN, 4.25% due 2/15/1995 6,014
A- Baa1 5,000 Series D, 9.50% due 8/01/2001 6,195
A- Baa1 6,500 Series F, 8.10% due 11/15/1999 7,268
A- Baa1 1,610 Series I, 7.50% due 8/15/2002 1,750
A- Baa1 5,450 Series I, 7.50% due 8/15/2005 5,945
A-1+ NR 13,000 New York State Energy Research and Development Authority, PCR (Niagara Power
Corporation Project), AMT, Series B, VRDN, 3.45% due 7/01/2027 (g) 13,000
A-1+ NR 1,600 New York State Environmental Facilities Corporation, Resource Recovery Revenue
Bonds (Equity Huntington Project), AMT, VRDN, 3.25% due 11/01/2014 (g) 1,600
New York State Local Government Assistance Corporation Revenue Bonds:
A A 3,500 Series A, 6.875% due 4/01/2019 3,681
A A 13,000 Series C, 7% due 4/01/2010 13,955
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) 10,293
North Carolina--0.2%
NR Aa2 600 Halifax County, North Carolina, Industrial Facilities and Pollution Control Financing
Authority Revenue Bonds (Exempt Facilities--Westmoreland), VRDN, AMT,
3.45% due 12/01/2019 (g) 600
NR VMIG1 700 North Carolina Medical Care Community, Hospital Revenue Bonds (Pooled Financing
Project), Series B, ACES, 3.35% due 10/01/2013 (g) 700
North Dakota--0.1%
A+ Aa 1,100 North Dakota State HFA, S/F Mortgage Revenue Bonds, Series C, 8.75% due 1/01/2019 1,146
Ohio--3.6%
AAA Aaa 1,740 Lakota, Ohio, Local School District Revenue Bonds, UT, 7% due 12/01/2008 (h) 1,953
Ohio HFA, S/F Mortgage Revenue Bonds, AMT (d):
AAA NR 11,580 Series A, 7.65% due 3/01/2029 12,246
AAA Aaa 4,250 Series B-4, RIB, 10.227% due 3/31/2031 (j) 4,335
AAA NR 6,550 Series C, 8.125% due 3/01/2020 6,916
AAA NR 4,935 Series C, 7.85% due 9/01/2021 5,158
Oregon--0.1%
A-1 NR 1,000 Port St. Helen, Oregon, PCR (Portland General Electric Company Project), AMT,
Series A, VRDN, 3.45% due 8/01/2014 (g) 1,000
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<C> <C> <C> <S> <C>
STATE
Pennsylvania--3.9%
A+ Aa3 $ 5,000 Delaware County, Pennsylvania, IDA, Revenue Refunding Bonds (Resource Recovery Project),
Series A, 8.10% due 12/01/2013 $ 5,313
Pennsylvania HFA, S/F Mortgage Revenue Bonds, AMT:
AA Aa 11,665 Series R, 8.125% due 10/01/2019 12,361
AA Aa 4,890 Series U, 7.80% due 10/01/2020 5,128
AAA Aaa 10,000 Pennsylvania State Higher Education Assistance Agency, Student Loan Revenue Bonds,
AMT, RIB, 10.342% due 9/03/2026 (h) (j) 10,513
<PAGE>
Rhode Island--3.1%
A- Baa1 15,000 Rhode Island Depositors Economic Protection Corporation, Special Obligation Revenue
Refunding Bonds, Series A, 6.375% due 8/01/2022 14,608
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) (g) (j) 6,214
AA+ A1 6,000 Rhode Island Housing and Mortgage Finance Corporation, INFLOS, Series B,
10.722% due 4/01/2024 (j) 6,113
South Carolina--0.3%
AAA Aaa 2,045 Richland County, South Carolina, Hospital Facilities Revenue Refunding Bonds (South
Carolina Baptist Hospital), Series B, 10% due 8/01/2001 (h) 2,623
Texas--8.9%
Austin, Texas, Utility System Revenue Bonds (Prior Lien) (a):
AAA Aaa 20,000 10% due 5/15/2000 (e) 24,874
AAA Aaa 5,450 10.75% due 5/15/2000 6,976
AAA Aaa 6,000 Series A, 9.50% due 5/15/2000 7,332
BBB Baa1 4,000 Gulf Coast, IDA, Revenue Refunding Bonds (Champion International Corporation),
7.125% due 4/01/2010 4,152
AA+ Aa 2,400 Harris County, Texas, Certificates of Obligation, Tax and Revenue Bonds,
10% due 10/01/2002 3,147
Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds
(Memorial Hospital Systems Project), Series A:
A- A 3,500 6.60% due 6/01/2014 3,505
A- A 2,500 6.625% due 6/01/2024 2,453
SP-1+ MIG1++ 10,000 Houston, Texas, GO, TRAN, 4.50% due 6/29/1995 10,036
A-1+ NR 1,800 Houston, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds
(Methodist Hospital Project), VRDN, 3.75% due 12/01/2014 (g) 1,799
AA Aa 5,750 North Central, Texas, Health Facilities Development Corporation Revenue Bonds (Baylor
University Medical Center), INFLOS, Series A, 10.333% due 5/15/2016 (j) 6,088
NR VMIG1 400 Port Arthur, Texas, Navigational District, PCR, Refunding (Texaco Inc., Project),
VRDN, 3.35% due 10/01/2024 (g) 400
Tarrant County, Texas, Water Control and Improvement, District #001, Water Revenue
Refunding Bonds (h):
AAA Aaa 2,500 4.50% due 3/01/2011 2,051
AAA Aaa 5,000 4.75% due 3/01/2013 4,170
Virginia--2.6%
AAA Aaa 3,000 Fairfax County, Virginia, Sewer Revenue Refunding Bonds, 5.65% due 11/15/2015 (h) 2,823
Virginia State Housing Development Authority, Commonwealth Mortgage:
AA+ Aa 2,950 Series G--Subseries G-2, AMT, 6.65% due 1/01/2019 2,992
AA+ Aa 4,060 Series H, 6.60% due 7/01/2008 4,148
AA+ Aa 10,000 Series H, 6.85% due 7/01/2014 10,140
AA Aa 2,250 Virginia State Transportation Board, Transportation Contract Revenue Refunding Bonds
(Route 28 Project), 6.50% due 4/01/2018 2,314
<PAGE>
Washington--7.1% King County, Washington, Revenue Refunding Bonds:
AA+ Aa1 3,420 Series B, 4.50% due 1/01/2013 2,740
AA+ Aa1 3,580 Series B, 4.50% due 1/01/2014 2,840
AA+ Aa1 1,720 Series C, UT, 4.50% due 6/01/2012 1,390
AA+ Aa1 1,890 Series C, UT, 4.50% due 6/01/2014 1,495
AA+ Aa1 1,055 Series C, UT, 4.50% due 6/01/2015 829
AA- A1 3,000 Seattle, Washington, Municipality Metropolitan Sewer Revenue Bonds, 6.25% due 1/01/2018 3,013
AAA NR 9,890 Washington State Housing Finance Commission, S/F Mortgage Revenue Refunding Bonds,
Series A, 7.70% due 7/01/2016 (d) 10,251
Washington State Public Power Supply System, Revenue Refunding Bonds (Nuclear
Project No. 1):
AA Aa 3,000 Series A, 7% due 7/01/2008 3,306
AA Aa 5,000 Series B, 7.25% due 7/01/2009 5,602
AA Aa 13,820 Series B, 7.125% due 7/01/2016 15,301
AA Aa 3,000 Washington State Public Power Supply System, Revenue Refunding Bonds (Nuclear Project
No. 2), Series B, 7% due 7/01/2012 3,107
AA Aa 12,570 Washington State, Series B, GO, UT, 5% due 5/01/2017 10,651
West Virginia--1.0%
BBB+ A3 8,760 Mason County, West Virginia, PCR, Refunding (Appalachian Power Company Project),
Series I, 6.85% due 6/01/2022 8,839
Wisconsin--0.5%
NR A 4,000 Wisconsin State Health and Educational Facilities Authority, Revenue Refunding Bonds
(Saint Claire Hospital Project), 7% due 2/15/2011 4,041
Puerto Rico--0.4%
A-1 VMIG1 3,900 Puerto Rico Commonwealth, Government Development Bank, Revenue Refunding Bonds, VRDN,
2.90% due 12/01/2015 (g) 3,900
Total Investments (Cost--$840,155)--97.8% 840,820
Other Assets Less Liabilities--2.2% 18,860
--------
Net Assets--100.0% $859,680
========
(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 rate shown is the rate in effect at August 31, 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 August 31, 1994.
(k) Escrowed to Maturity.
*Represents the yield to maturity.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of August 31, 1994
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$840,155,292) (Note 1a) $840,820,370
Receivables:
Securities sold $ 23,863,147
Interest 13,757,511 37,620,658
------------
Prepaid expenses and other assets 22,018
------------
Total assets 878,463,046
------------
Liabilities: Payables:
Securities purchased 12,245,532
Dividends to Common Stock shareholders (Note 1f) 795,040
Investment adviser (Note 2) 387,396 13,427,968
------------
Accrued expenses and other liabilities 5,354,852
------------
Total liabilities 18,782,820
------------
Net Assets: Net assets $859,680,226
============
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 563,529,671
Undistributed investment income--net 6,654,455
Undistributed realized capital gains--net 7,718,708
Unrealized appreciation on investments--net 665,078
------------
Total--Equivalent to $9.57 net asset value per share of Common Stock
(market price--$8.50) 584,680,226
------------
Total capital $859,680,226
============
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended August 31, 1994
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 56,869,868
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 4,432,672
Commission fees (Note 4) 703,221
Transfer agent fees 198,172
Professional fees 84,156
Accounting services (Note 2) 67,850
Printing and shareholder reports 62,964
Custodian fees 61,411
Directors' fees and expenses 33,890
Pricing fees 18,600
Listing fees 14,500
Other 32,152
------------
Total expenses 5,709,588
------------
Investment income--net 51,160,280
------------
Realized & Realized gain on investments--net 18,031,016
Unrealized Gain Change in unrealized appreciation on investments--net (65,699,451)
(Loss) on ------------
Investments-- Net Increase in Net Assets Resulting from Operations $ 3,491,845
Net (Notes 1d & 3): ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended August 31,
Increase (Decrease) in Net Assets: 1994 1993
<S> <S> <C> <C>
Operations: Investment income--net $ 51,160,280 $ 54,510,029
Realized gain on investments--net 18,031,016 11,158,872
Change in unrealized appreciation on investments--net (65,699,451) 30,340,925
------------ ------------
Net increase in net assets resulting from operations 3,491,845 96,009,826
------------ ------------
Dividends & Investment income--net:
Distributions to Preferred Stock (6,969,913) (6,992,500)
Shareholders Common Stock (42,880,970) (46,467,995)
(Note 1f): Realized gain on investments--net, to Common Stock shareholders (19,681,289) (15,079,136)
------------ ------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (69,532,172) (68,539,631)
------------ ------------
Common Stock Net increase in net assets derived from shares issued to Common Stock
Transactions shareholders in reinvestment of dividends 8,190,313 14,011,267
(Note 4): ------------ ------------
Net Assets: Total increase (decrease) in net assets (57,850,014) 41,481,462
Beginning of year 917,530,240 876,048,778
------------ ------------
End of year* $859,680,226 $917,530,240
------------ ------------
*Undistributed investment income--net $ 6,654,455 $ 5,345,058
------------ ------------
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements.
For the Year Ended August 31,
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 year $ 10.65 $ 10.19 $ 9.76 $ 9.28 $ 9.58
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .84 .92 .97 .96 1.02
Realized and unrealized gain (loss) on investments--net (.78) .69 .58 .49 (.26)
-------- -------- -------- -------- --------
Total from investment operations .06 1.61 1.55 1.45 .76
-------- -------- -------- -------- --------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.70) (.78) (.79) (.73) (.71)
Realized gain on investments--net (.32) (.25) (.16) -- (.05)
-------- -------- -------- -------- --------
Total dividends and distributions to Common Stock
shareholders (1.02) (1.03) (.95) (.73) (.76)
-------- -------- -------- -------- --------
Effect of Preferred Stock activity:
Dividends to Preferred Stock shareholders:
Investment income--net (.12) (.12) (.17) (.24) (.30)
-------- -------- -------- -------- --------
Net asset value, end of year $ 9.57 $ 10.65 $ 10.19 $ 9.76 $ 9.28
======== ======== ======== ======== ========
Market price per share, end of year $ 8.50 $ 11.25 $ 11.25 $ 10.25 $ 9.375
======== ======== ======== ======== ========
Total Investment Based on market price per share (16.29%) 10.39% 20.39% 18.02% 0.26%
Return:* ======== ======== ======== ======== ========
Based on net asset value per share (.44%) 15.38% 14.52% 13.53% 4.89%
======== ======== ======== ======== ========
Ratios Expenses .64% .65% .65% .66% .67%
To Average ======== ======== ======== ======== ========
Net Assets:** Investment income--net 5.76% 6.17% 6.58% 6.84% 7.05%
======== ======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock, end of year
Data: (in thousands) $584,680 $642,530 $601,049 $593,867 $527,574
======== ======== ======== ======== ========
Preferred Stock outstanding at end of year
(in thousands) $275,000 $275,000 $275,000 $275,000 $275,000
======== ======== ======== ======== ========
Portfolio turnover 100.92% 73.38% 112.10% 129.73% 112.81%
======== ======== ======== ======== ========
<PAGE>
Dividends Per Series A--Investment income--net $ 2,530 $ 2,530 $ 3,512 $ 5,003 $ 6,096
Share on Preferred Series B--Investment income--net 2,548 2,568 3,528 4,973 6,108
Stock Outstanding: Series C--Investment income--net 2,575 2,497 3,444 4,947 6,096
Series D--Investment income--net 2,533 2,575 3,659 5,160 6,101
Series E--Investment income--net 2,503 2,543 3,534 5,046 6,034
<FN>
*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.
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.
(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 value.
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.
<PAGE>
(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
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.
(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) Non-income producing investments--Written and purchased
options are non-income producing investments.
(f) 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 & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of ML & Co. The limited partners are ML & Co. and Fund
Asset Management, Inc. ("FAMI"), 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.
<PAGE>
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, FAMI, PSI, Merrill Lynch, Pierce, Fenner &
Smith Inc. ("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securi-
ties, for the year ended August 31, 1994 were $838,188,535 and
$873,326,627, respectively.
Net realized and unrealized gains (losses) as of August 31, 1994
were as follows:
Realized Unrealized
Gains (Losses) Gains (Losses)
Long-term investments $ 7,630,641 $ 704,950
Short-term investments (2,153) (39,872)
Financial futures contracts 10,402,528 --
----------- -----------
Total $18,031,016 $ 665,078
=========== ===========
As of August 31, 1994, net unrealized appreciation for Federal
income tax purposes aggregated $585,101, of which $16,705,596
related to appreciated securities and $16,120,495 related to
depreciated securities. The aggregate cost of investments at
August 31, 1994 for Federal income tax purposes was $840,235,269.
4. Capital Stock Transactions:
Common Stock
At August 31, 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 year ended August 31, 1994, shares issued and
outstanding increased by 779,075 to 61,123,140 as a result of
dividend reinvestment. At August 31, 1994, total paid-in capital
amounted to $569,641,985.
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 year ended August 31, 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.
<PAGE>
The yields in effect at August 31, 1994 were as follows: Series
A, 2.865%; Series B, 3.09%; Series C, 3.20%; Series D, 2.94%; and
Series E, 3.10%.
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 year ended
August 31, 1994, MLPF&S, an affiliate of MLIM, received $473,232
as commissions.
5. Subsequent Event:
On September 9, 1994, the Fund's Board of Directors declared an
ordinary income dividend to Common Stock shareholders in the
amount of $.057084 per share, payable on September 29, 1994 to
shareholders of record as of September 19, 1994.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders,
MuniVest Fund, Inc.
We have audited the accompanying statement of assets, liabilities
and capital, including the schedule of investments, of MuniVest
Fund, Inc. as of August 31, 1994, the related statements of
operations for the year then ended and changes in net assets for
each of the years in the two-year period then ended, and the
financial highlights for each of the years in the five-year period
then ended. These financial statements and the financial highlights
are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities
owned at August 31, 1994 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial
highlights present fairly, in all material respects, the
financial position of MuniVest Fund, Inc. as of August 31, 1994,
the results of its operations, the changes in its net assets, and
the financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
September 30, 1994
</AUDIT-REPORT>
<PAGE>
IMPORTANT TAX INFORMATION (unaudited)
All of the net investment income distributions paid monthly by
MuniVest Fund, Inc. during its taxable year ended August 31, 1994
qualify as tax-exempt interest dividends for Federal income tax
purposes. Additionally, the Fund distributed short-term capital
gains of $0.186370 per share and long-term capital gains of
$0.138618 per share to shareholders of record on December 20,
1993.
Please retain this information for your records.
<TABLE>
PER SHARE INFORMATION (unaudited)
<CAPTION>
Per Share Selected Quarterly Financial Data*
Net Realized Unrealized Dividends/Distributions
Investment Gains Gains Net Investment Income Capital
For the Quarter Income (Losses) (Losses) Common Preferred Gains
<S> <C> <C> <C> <C> <C> <C>
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 .22 .17 (.30) .19 .03 --
December 1, 1993 to February 28, 1994 .21 .05 (.12) .17 .02 .32
March 1, 1994 to May 31, 1994 .21 .13 (.69) .17 .03 --
June 1, 1994 to August 31, 1994 .20 (.05) .03 .17 .04 --
<PAGE>
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
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
March 1, 1994 to May 31, 1994 10.05 9.18 8.875 9.875 3,341
June 1, 1994 to August 31, 1994 9.83 9.35 8.25 9.625 3,361
<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>
