MUNIVEST
FUND, INC.
FUND LOGO
Semi-Annual Report
February 28, 1995
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 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
<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. Of course, increases in
short-term interest rates would reduce (and even eliminate) the
dividends on the Common Stock.
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 or eliminated completely. 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
90 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, 1995, the Common Stock of
MuniVest Fund, Inc. earned $0.322 per share income dividends, which
included earned and unpaid dividends of $0.053 per share. This
represents a net annualized yield of 6.97%, based on a month-end per
share net asset value of $9.31. Over the same period, the Fund's
total investment return was +3.31%, based on a change in per share
net asset value from $9.57 to $9.31, and assuming reinvestment of
$0.326 per share income dividends and $0.164 capital gains
distributions.
<PAGE>
For the six months ended February 28, 1995, the Fund's Preferred
Stock had an average dividend yield as follows: Series A, 3.759%;
Series B, 3.276%; Series C, 3.404%; Series D, 3.945%; and Series E,
3.689%.
The Environment
The combination of heightened inflationary concerns, anticipation of
further tightening of monetary policy by the Federal Reserve Board,
the turmoil of the Mexican currency crisis and a weakening US dollar
all exerted negative influences on the US financial markets during
the six-month period ended February 28, 1995. On the positive side,
late in the period there were increasing signs that the US economy
may be losing momentum, suggesting that most of the interest rate
increases for this economic cycle may be behind us. As a result of
these economic cross-currents, the US financial markets continued to
be volatile during the period.
The manufacturing sector proved to be the driving force behind the
US economy as 1994 drew to a close, making an important contribution
to the substantial increase in corporate earnings. US companies have
been successful at containing labor costs, which are an important
component of the inflation outlook. Growth in the economy has not
been translated into higher wages and benefits for US workers.
Consumer spending is growing at a slower pace than in previous
economic recoveries, and was unchanged for the month of January.
Another encouraging sign was the January increase in the personal
savings rate to the highest level in two years. However, this is
following an all-time annual low for the savings rate in 1994.
In the weeks ahead, investors will continue to assess economic data
and inflationary trends in order to gauge whether inflationary pres-
sures have been tempered and the economy is headed for moderate
growth (a "soft landing"), or if the lagged effect of interest rate
rises will result in a curtailment of economic growth. Investors
will also focus on the progress that the new Congress makes on both
reducing spending and the Federal budget deficit and passing tax
cuts that promote savings and investment. At this time, the recent
defeat of the balanced budget amendment in the Senate does not bode
well for the passage of sweeping fiscal reforms.
The Municipal Market
Long-term municipal bond yields generally declined during the six-
month period ended February 28, 1995. As measured by the Bond Buyer
Revenue Bond Index, tax-exempt bond yields fell 12 basis points
(0.12%). While yields fell overall during the period, the tax-exempt
bond market continued to be very volatile. Municipal bonds continued
their upward climb throughout September and October before reaching
a three-year high of 7.37% in mid-November. Yields then began a
steady and significant decline for the remainder of the reporting
period. Tax-exempt bond yields declined approximately 100 basis
points to 6.34% at the end of February. US Treasury bonds exhibited
a similar pattern with the 30-year Treasury bond yield rising almost
70 basis points from the end of August 1994 to a high of 8.15% in
mid-November 1994. Taxable Treasury bond yields then declined 70
basis points to end the February quarter essentially unchanged at
7.45%.
<PAGE>
The recent peak in interest rates last November and their subsequent
decline coincided with an apparent change in investor psychology.
The series of interest rate increases engineered by the Federal
Reserve Board during 1994 ended with an aggressive monetary policy
tightening in mid-November. This move temporarily restored investor
confidence in the Federal Reserve Board's resolve and ability to
foster an environment of moderate economic growth and minimal
inflationary pressures. Investors then turned their attention to
potentially weaker economic growth in 1995, and interest rates began
to decline. As indications of a slowing in economic growth were
released in early 1995, particularly in housing and employment, the
bond market rally intensified. The dramatic increase in bond yields
in 1994 was caused by an overreaction to excessive inflationary
fears combined with continued expected strong economic growth
throughout 1995. As these fears have yet to be realized, investors
now view the yields available in late 1994 as attractive and bond
prices rose accordingly.
The strong technical position of the municipal market intensified
the recent market rally. New-issue supply during the six months
ended February 28, 1995 totaled approximately $60 billion, a
decrease of over 50% versus the comparable period a year earlier. In
recent months the pace of new issuance slowed further. During the
February quarter, less than $25 billion in long-term securities were
issued, a decline of almost 60% from last year. Both January and
February monthly issuance was less than $8 billion, which represents
the lowest monthly issuance since January 1988. Issuance thus far in
1995 led some analysts to lower their 1995 annual issuance
projections from the $150 to $120 billion range. This represents a
20% reduction in an already recent historically low issuance
environment.
At the same time, investor demand slowly returned to the municipal
market. Both January and February saw net cash inflows into tax-
exempt mutual bond funds, a noticeable reversal from that which was
experienced for much of late 1994. Much of the increase in municipal
bond yields in 1994 was because of investor liquidation of municipal
mutual funds in anticipation of additional price declines associated
with expected increases in interest rates. As both bond yields and
new bond issuance declined in recent months, both retail and
institutional investors were hard pressed to repurchase securities
sold in late 1994. The relative scarcity of tax-exempt bond products
is expected to continue throughout 1995, and this expected scarcity
intensified the recent rise in municipal bond prices.
Despite this recent rise in tax-exempt bond prices, municipal bonds
remained attractive compared to other investment alternatives,
especially on an after-tax basis. For example, to investors in the
maximum Federal income tax bracket, long-term municipal bonds
currently yielding 6.35% represent an after-tax equivalent yield of
over 10.375%. Looking forward, while it's likely that interest rate
volatility will remain a factor in 1995, the magnitude of the
increase in bond yields is unlikely to be repeated. Since the tax-
exempt product supply should remain very limited throughout 1995,
presently available bond yields should prove to be attractive to
long-term investors.
<PAGE>
Portfolio Strategy
During the six-month period ended February 28, 1995, we adopted a
more constructive posture toward the municipal bond market. From
September to late October, we maintained a very defensive attitude
regarding the tax-exempt bond market. The Fund's cash reserves of
nearly 10% of net assets were held to help limit further capital
depreciation. We sold interest rate-sensitive issues when possible
and replaced them with less volatile securities bearing appreciably
large coupons. In late October and early November, we lowered the
Fund's cash reserve position to below 5%. At that time we believed
that much, if not all, of the increase in bond yields experienced in
1994 was over and only minimal interest rate volatility should be
expected. We believe the restructuring of the Fund, which we started
in March 1994, is adequate to preserve the Fund's net asset value
under the above-described environment.
Adopting a more constructive posture allowed us to add a number of
attractively priced, investment-grade issues yielding in excess of
7% to the Fund's portfolio. We were able to participate fully in the
dramatic rally in the tax-exempt bond market since mid-November, and
the Fund's net asset value rose accordingly. Looking forward, we
expect to maintain minimal cash reserves to seek to enhance the
Fund's coupon dividend. We will continue to emphasize maintaining
the Fund's high-credit quality structure (over 50% of the Fund's
portfolio is rated Aa or higher by at least one of the major rating
services), and improving the Fund's ability to maintain its current
dividend by purchasing noncallable issues whenever they are
attractively priced.
Short-term tax-exempt interest rates traded in the 3%--4.50% range
for most of the last six months. Traditional year-end financing
pressures briefly caused short-term interest rates to rise into the
4%--4.50% range. Cash equivalents quickly rallied once these
temporary pressures abated and yielded below 4% by mid-January.
Despite year-end pressures, the municipal yield curve remained
steeply positive. This generated a beneficial impact on the yield
paid to the Common Stock shareholder. However, should the spread
between short-term and long-term interest rates narrow, the benefits
of the leverage effect will diminish and the yield on the Fund's
Common Stock will be reduced. (For a complete explanation of the
benefits and risks of leveraging, see page 1 of this report to
shareholders.)
In Conclusion
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
<PAGE>
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
March 29, 1995
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)
COP Certificates of Participation
CP Commercial Paper
GO General Obligation Bonds
HFA Housing Finance Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
INFLOS Inverse Floating Rate Municipal Bonds
M/F Multi-Family
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
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--2.9% AAA NR* $ 9,795 Alabama HFA, S/F Mortgage Revenue Bonds, Series A, 7.60% due
10/01/2022 (d) $ 10,420
BBB Baa1 8,750 Courtland, Alabama, Industrial Development Board, Revenue
Refunding Bonds (Champion International Corporation), Series
A, 7.20% due 12/01/2013 9,074
BBB Baa1 5,000 Courtland, Alabama, Industrial Development Board, Solid
Waste Disposal Revenue Bonds (Champion International
Corporation Project), AMT, 7% due 6/01/2022 5,026
Alaska--3.5% North Slope Boro, Alaska, Revenue Bonds, UT, Series B (c):
AAA Aaa 6,000 5.10%** due 1/01/2002 4,085
AAA Aaa 6,000 5.20%** due 1/01/2003 3,847
AA- A1 20,750 Valdez, Alaska, Marine Terminal Revenue Refunding Bonds
(Sohio Pipeline), 7.125% due 12/01/2025 21,704
California AA Aa 3,890 Los Angeles, California, Department of Water and Power,
- --1.1% Electric Plant Crossover Revenue Refunding Bonds, 4.75%
due 8/15/2014 3,196
A1 NR* 200 Moorpark, California, M/F Mortgage Revenue Refunding Bonds
(Le Club Apartments Project), VRDN, Series A, 3.90% due
11/01/2015 (g) 200
University of California, COP (UCLA Central Chiller/
Cogeneration):
NR* Aa 1,245 10.75% due 11/01/1998 1,465
NR* Aa 3,315 10.75% due 11/01/1999 4,022
Colorado--3.2% BBB+ NR* 3,250 Boulder County, Colorado, Hospital Revenue Bonds (Longmont
United Hospital Project), 8.20% due 12/01/2000 (a) 3,764
Denver, Colorado, City and County Airport Revenue Bonds:
BB Baa 11,150 AMT, Series C, 6.75% due 11/15/2013 10,720
BB Baa 1,905 AMT, Series C, 6.75% due 11/15/2022 1,800
BB Baa 7,340 Series A, 7.25% due 11/15/2025 7,477
AAA NR* 1,150 El Paso County, Colorado, S/F Mortgage Revenue Bonds, AMT,
Series A, 8% due 9/01/2022 (d) 1,214
NR* A 1,335 Larimer County, Colorado, COP (Poudre School District
No. R-1), 10% due 12/01/2000 1,643
AAA MIG1++ 600 Northglenn, Colorado, IDR, Refunding (Castle Gardens), VRDN,
4% due 1/01/2009 (g) 600
<PAGE>
Delaware--0.5% AAA Aaa 3,630 Delaware Transporation Authority, Transportation System,
Senior Revenue Bonds, 7% due 7/01/2014 (f) 3,958
Florida--1.3% NR* Aaa 10,610 Florida HFA, Home Ownership Revenue Bonds, AMT, Series G1,
7.90% due 3/01/2022 (d) 11,192
Georgia--7.2% A+ A 7,500 Georgia Municipal Electric Authority, Power Revenue Refunding
Bonds, Series V, 6.60% due 1/01/2018 8,025
Georgia Municipal Electric Authority, Special Obligation
Revenue Bonds:
A+ A 12,940 (Fifth Crossover Series--Project One), 6.50% due 1/01/2017 13,672
A+ A 4,850 (Third Crossover Series), 6.60% due 1/01/2018 5,190
Georgia State, GO:
AA+ Aaa 10,000 Series D, UT, 6.80% due 8/01/2011 11,197
AA+ Aaa 8,900 Series F, 6.50% due 12/01/2006 9,759
AA+ Aaa 7,000 Series F, 6.50% due 12/01/2007 7,662
A+ A3 4,785 Monroe County, Georgia, Development Authority, PCR, Refunding
(Oglethorpe Power), Series A, 6.80% due 1/01/2011 5,117
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 3,527
Idaho--0.6% NR* Aaa 5,000 Idaho Housing Agency, S/F Mortgage Revenue Bonds, AMT, Series
E-2, 6.90% due 1/01/2027 5,070
</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>
Illinois--10.9% Chicago, Illinois, Metropolitan Water Reclamation District,
Greater Chicago Capital Improvement Bonds:
AA Aa $ 2,500 5.50% due 12/01/2010 $ 2,404
AA Aa 10,500 5.50% due 12/01/2012 9,930
AAA Aaa 2,500 Cook County, Illinois, COP, UT (Community College--District
No. 508), 8.75% due 1/01/2004 (f) 3,067
BBB Baa2 7,000 Illinois Development Finance Authority, PCR, Refunding (Common-
wealth Edison Company Project), 7.25% due 6/01/2011 7,218
Illinois Educational Facilities Authority Revenue Bonds:
BBB+ NR* 2,500 (Chicago Osteopathic Health System), 7.25% due 5/15/2022 2,508
<PAGE> A+ A1 2,000 Refunding (Loyola University), Series A, 7.125% due 7/01/2021 2,102
NR* Baa1 7,375 Illinois Health Facilities Authority Revenue Bonds (Ravenswood
Hospital Medical Center), 6.90% due 6/01/2022 7,052
A- NR* 2,500 Illinois Health Facilities Authority, Revenue Refunding and
Improvement Bonds (Swedish Covenant), Series A, 6.375% due
8/01/2023 2,331
Illinois Health Facilities Authority Revenue Refunding Bonds:
AA Aa 15,000 (Northwestern Memorial Hospital), Series A, 6% due 8/15/2024 14,114
A+ A1 3,000 (OSF Healthcare Systems), 6% due 11/15/2023 2,705
Illinois Housing Development Authority Revenue Bonds (M/F
Housing Program):
A+ A1 2,000 Refunding, Series A, 7.375% due 7/01/2017 2,150
A+ A1 7,000 Series 5, 6.75% due 9/01/2023 7,146
Illinois State Sales Tax Revenue Bonds:
AAA A1 3,835 Refunding, Series Q, 5.75% due 6/15/2014 3,673
AAA A1 7,650 Series P, 6.50% due 6/15/2022 8,106
AAA A1 4,000 Series R, 5.50% due 6/15/2015 3,692
BBB NR* 2,500 Lansing, Illinois, Tax Increment Revenue Refunding Bonds
(Sales Tax--Landings Redevelopment), 7% due 12/01/2008 2,620
Regional Transportation Authority, Illinois, GO:
AAA Aaa 3,500 Series A, 7.20% due 11/01/2020 (h) 4,031
AAA Aaa 4,000 Series C, UT, 7.75% due 6/01/2020 (f) 4,886
AAA Aaa 2,500 Series C, UT, 7.10% due 6/01/2025 (f) 2,695
Indiana--6.5% A NR* 5,250 Indiana Bond Bank Revenue Bonds (State Revolving Fund
Program), Series A, 6.75% due 2/01/2017 5,375
NR* Aa1 6,855 Indiana State HFA, S/F Mortgage Revenue Refunding Bonds,
Series A, 6.80% due 1/01/2017 6,982
A A 5,000 Indiana Transportation Finance Authority, Airport Facilities
Lease Revenue Bonds (United Air), Series A, 6.75% due 11/01/2011 5,157
A+ A1 7,195 Indiana Transportation Finance Authority, Highway Revenue
Bonds, Series A, 6.80% due 12/01/2016 7,851
Indianapolis, Indiana, Local Public Improvement Bond Bank,
Revenue Refunding Bonds, Series D:
A+ NR* 15,335 6.75% due 2/01/2014 16,284
A+ NR* 13,350 6.75% due 2/01/2020 13,639
Iowa--0.5% NR* Aaa 4,300 Iowa Finance Authority, S/F Mortgage Revenue Bonds, AMT,
Series A, 7.90% due 11/01/2022 (d) 4,558
Kentucky--0.7% A1+ VMIG1++ 400 Daviess County, Kentucky, Solid Waste Disposal Facility
Revenue Bonds (Scott Paper Company Project), VRDN,
AMT, Series A, 4.20% due 12/01/2023 (g) 400
AAA Aaa 3,685 University of Kentucky, University Revenue Refunding Bonds,
Consolidated Educational Building, Second Series,
4.60% due 5/01/2011 (c) 3,172
AAA Aaa 2,935 University of Kentucky, University Revenue Refunding
Bonds, Educational Community Colleges, Second Series,
4.60% due 5/01/2010 (h) 2,550
<PAGE>
Louisiana--0.4% 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 3,199
Massachusetts AAA Aaa 2,035 Boston, Massachusetts, Water and Sewer Commission Revenue
- --10.3% Bonds, Series A, 9.25% due 1/01/2011 (k) 2,720
Massachusetts Bay Transportation Authority Revenue Bonds
(Massachusetts General Transportation Systems), Series A:
A+ A1 16,000 7% due 3/01/2021 18,255
A+ A1 3,010 Refunding, 7% due 3/01/2019 3,420
AAA Aaa 7,300 Massachusetts State Health and Educational Facilities
Authority Revenue Bonds, 6.70% due 8/15/2021 (i) 7,585
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 2,137
Massachusetts State, HFA (Residential Development) (l):
AAA Aaa 3,375 Series A, 6.90% due 11/15/2024 3,505
AAA Aaa 2,360 Series D, Section 8, 6.875% due 11/15/2021 2,447
Massachusetts State Water Resource Authority Revenue Bonds:
A A 5,000 Refunding, Series B, 5.50% due 11/01/2015 4,650
A A 39,630 Series A, 6.50% due 7/15/2019 41,780
Michigan--5.5% BBB Baa1 4,950 Dickinson County, Michigan, Economic Development Corporation,
PCR, Refunding (Champion International Corporation Project),
5.85% due 10/01/2018 4,449
AAA Aaa 3,450 Greenville, Michigan, Public Schools Revenue Bonds, UT, 5.75%
due 5/01/2019 (c) 3,319
BBB NR* 4,385 Lapeer, Michigan, Economic Development Corporation, Limited
Obligation Revenue Bonds (Lapeer Health Services Project),
8.50% due 2/01/2000 (a) 5,085
AAA Aaa 4,500 Michigan State Building Authority, Revenue Refunding Bonds,
Series I, 5.20% due 10/01/2010 (h) 4,173
Michigan State Hospital Finance Authority, Revenue Refunding
Bonds, Series A:
A- A 2,000 (Detroit Medical Center), 6.25% due 8/15/2013 1,944
A- A 7,430 (Detroit Medical Center), 6.50% due 8/15/2018 7,272
NR* A1 2,800 (McLaren Obligation Group), 5.375% due 10/15/2013 2,406
AAA Aaa 4,630 Michigan State Housing Development Authority, Rental Housing
Revenue Refunding Bonds, Series A, 5.90% due 4/01/2023 (h) 4,405
AA+ NR* 6,000 Michigan State Housing Development Authority, S/F Mortgage
Revenue Refunding Bonds, AMT, Series D, 6.85% due 6/01/2026 6,125
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 2,519
AAA Aaa 5,000 Wayne State University, Michigan, General Revenue Refunding
Bonds, 5.65% due 11/15/2015 (h) 4,805
<PAGE>
Minnesota--3.5% Minnesota State, HFA, S/F Mortgage Revenue Bonds:
AA+ Aa 3,750 AMT, Series L, 6.70% due 7/01/2020 3,799
AA+ Aa 6,000 AMT, Series M, 6.70% due 7/01/2026 6,096
AA+ Aa 7,500 Series E, 6.80% due 7/01/2025 7,752
AA+ Aa 4,250 Series H, 6.70% due 1/01/2018 4,371
AA+ Aa 2,000 Series Q, 6.70% due 1/01/2017 2,057
BBB Baa1 5,700 Sartell, Minnesota, PCR, Refunding (Champion International
Corporation), 6.95% due 10/01/2012 5,815
</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>
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) $ 2,412
Nebraska--0.3% AAA Aaa 2,600 Nebraska Investment Finance Authority, S/F Mortgage Revenue
Bonds, AMT, Series 1, 8.125% due 8/15/2038 (c)(d) 2,747
Nevada--1.2% AAA Aaa 5,000 Clark County, Nevada, School District Revenue Bonds,
6.75% due 6/15/2015 (f) 5,311
AAA NR* 1,235 Nevada State Housing Division Housing Revenue Bonds
(Multi-Unit), Issue B, AMT, 7.45% due 10/01/2017 (l) 1,315
AAA Aaa 3,245 Nevada State Housing Division Revenue Bonds (S/F Program),
AMT, Series E, 7% due 10/01/2019 3,335
New Jersey AAA Aaa 3,000 New Jersey State Housing and Mortgage Finance Agency
- --0.4% Revenue Bonds (Home Buyer), AMT, Series M, 6.95% due
10/01/2022 (c) 3,143
New Mexico A1+ P1 700 Farmington, New Mexico, PCR (Arizona Public Service
- --0.1% Company), VRDN, AMT, Series C, 4.20% due 9/01/2024 (g) 700
New York--5.5% New York City, New York, GO, UT:
A- Baa1 2,000 Series A, 7.75% due 3/15/2004 2,163
SP1 MIG1++ 2,100 Series B, RAN, 4.75% due 6/30/1995 2,102
A- Baa1 5,000 Series D, 9.50% due 8/01/2002 5,961
A- Baa1 6,500 Series F, 8.10% due 11/15/1999 7,091
A- Baa1 1,610 Series I, 7.50% due 8/15/2002 1,706
A- Baa1 5,450 Series I, 7.50% due 8/15/2005 5,728
A1+ NR* 8,000 New York City, New York, IDA, IDR (Japan Airlines Company
Ltd. Project), VRDN, AMT, 3.60% due 11/01/2015 (g) 8,000
A1+ NR* 100 New York State Energy Research and Development Authority,
PCR (Niagara Power Corporation Project), VRDN, AMT, Series B,
4.20% due 7/01/2027 (g) 100
A A 13,000 New York State Local Government Assistance Corporation
Revenue Bonds, Series C, 7% due 4/01/2010 13,754
<PAGE>
North NR* VMIG1++ 6,000 North Carolina Medical Care Community, Hospital Revenue
Carolina-- Bonds (Pooled Financing Project), ACES, Series A, 3.90%
0.7% due 10/01/2020 (g) 6,000
North A+ Aa 985 North Dakota State HFA, S/F Mortgage Revenue Bonds,
Dakota--0.1% Series C, 8.75% due 1/01/2019 1,033
Ohio--4.0% AAA Aaa 1,740 Lakota, Ohio, Local School District Revenue Bonds, UT,
7% due 12/01/2008 (h) 1,989
Ohio, HFA, S/F Mortgage Revenue Bonds, AMT (d):
AAA NR* 11,145 Series A, 7.65% due 3/01/2029 11,801
AAA Aaa 8,400 Series B, 6.903% due 3/31/2031 8,541
AAA NR* 5,695 Series C, 8.125% due 3/01/2020 6,057
AAA NR* 4,935 Series C, 7.85% due 9/01/2021 5,259
Pennsylvania A+ Aa3 5,000 Delaware County, Pennsylvania, IDA, Revenue Refunding
- --5.5% Bonds (Resource Recovery Project), Series A, 8.10%
due 12/01/2013 5,294
Pennsylvania HFA, S/F Mortgage Revenue Bonds, AMT:
AA Aa 11,665 Series R, 8.125% due 10/01/2019 12,267
AA Aa 4,890 Series U, 7.80% due 10/01/2020 5,233
AAA Aaa 10,000 Pennsylvania State Higher Education Assistance Agency, Student
Loan Revenue Bonds, RIB, AMT, 9.242% due 9/03/2026 (h)(j) 10,625
NR* VMIG1++ 1,400 Pennsylvania State Higher Educational Facilities Authority,
College and University Revenue Bonds (Temple University),
VRDN, 3.60% due 10/01/2009 (g) 1,400
A1+ VMIG1++ 12,000 Philadelphia, Pennsylvania, Hospitals and Higher Education
Facilities Authority, Hospital Revenue Bonds (Children's
Hospital of Philadelphia Project), VRDN, 3.60% due 3/01/2027 (g) 12,000
Rhode Island AAA Aaa 6,000 Rhode Island Health and Education Building Corporation
- --1.5% Revenue Bonds (Rhode Island Hospital), Linked PARS and
INFLOS, Series R, 6.85% due 8/15/2021 (f) 6,237
AA+ A1 6,000 Rhode Island Housing and Mortgage Finance Corporation, INFLOS,
AMT, Series B, 9.607% due 4/01/2024 (j) 6,210
South Carolina AAA Aaa 2,045 Richland County, South Carolina, Hospital Facilities Revenue
- --0.3% Refunding Bonds (South Carolina Baptist Hospital), Series B,
10% due 8/01/2001 (h) 2,569
<PAGE>
Texas--8.6% Austin, Texas, Utility System Revenue Bonds (Prior Lien) (a):
AAA Aaa 20,000 10% due 5/15/2000 (e) 24,393
AAA Aaa 5,450 10.75% due 5/15/2000 6,826
AAA Aaa 6,000 Series A, 9.50% due 5/15/2000 7,180
Copperas Cove, Texas, Independent School District Revenue
Bonds, UT (b):
AAA Aaa 1,430 6.90% due 8/15/2011 1,530
AAA Aaa 1,610 6.90% due 8/15/2013 1,716
BBB Baa1 4,000 Gulf Coast, Texas, IDA, Revenue Refunding Bonds (Champion
International Corporation), 7.125% due 4/01/2010 4,158
AA+ Aa 2,400 Harris County, Texas, Certificates of Obligation, Tax and
Revenue Bonds, 10% due 10/01/2002 3,096
Harris County, Texas, Health Facilities Development Corporation,
Hospital Revenue Bonds, Series A:
A- A 3,500 (Memorial Hospital Systems Project), 6.60% due 6/01/2014 3,513
A- A 2,500 (Memorial Hospital Systems Project), 6.625% due 6/01/2024 2,451
AA Aa 5,290 (Saint Luke's Episcopal Hospital Project), 6.625% due 2/15/2012 5,337
SP1+ MIG1++ 250 Houston, Texas, GO, TRAN, 4.50% due 6/29/1995 250
AA Aa 11,400 North Central, Texas, Health Facilities Development
Corporation Revenue Bonds (Baylor University Medical Center),
Linked PARS and INFLOS, Series A, 6.85% due 5/15/2016 11,714
SP1+ MIG1++ 100 Texas State, TRAN, UT, 5% due 8/31/1995 100
Utah--0.1% A+ A1 1,000 Salt Lake City, Utah, Municipal Building Authority, Lease
Revenue Refunding Bonds (Municipal Improvements Project),
Series A, 6% due 10/15/2014 957
Virginia--2.1% Virginia State Housing Development Authority, Commonwealth
Mortgage Revenue Bonds:
AA+ Aa 2,950 Series G, Subseries G-2, AMT, 6.65% due 1/01/2019 2,959
AA+ Aa1 10,000 Series H, 6.85% due 7/01/2014 10,360
AA+ Aa1 4,400 Series J, Subseries J-2, 6.75% due 7/01/2017 4,504
Washington King County, Washington, Revenue Refunding Bonds:
- --6.9% AA+ Aa1 3,420 Series B, 4.50% due 1/01/2013 2,781
AA+ Aa1 3,580 Series B, 4.50% due 1/01/2014 2,885
AA+ Aa1 1,720 Series C, UT, 4.50% due 6/01/2012 1,408
AA+ Aa1 1,890 Series C, UT, 4.50% due 6/01/2014 1,519
AA+ Aa1 1,055 Series C, UT, 4.50% due 6/01/2015 840
Washington State Housing Finance Commission, S/F Mortgage
Revenue Refunding Bonds (d):
AAA NR* 9,180 Series A, 7.70% due 7/01/2016 9,829
AAA NR* 2,395 Series D, 6.95% due 7/01/2017 (l) 2,473
</TABLE>
<PAGE>
<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
(concluded) Refunding Bonds (Nuclear Project No. 1):
AA Aa $ 3,000 Series A, 7% due 7/01/2008 $ 3,241
AA Aa 5,000 Series A, 6.875% due 7/01/2017 5,119
AA Aa 5,000 Series B, 7.25% due 7/01/2009 5,463
AAA Aaa 6,985 Series B, 5.60% due 7/01/2015 (c) 6,473
AA Aa 14,320 Series B, 7.125% due 7/01/2016 15,856
Wisconsin-- NR* A 4,000 Wisconsin State Health and Educational Facilities
0.5% Authority, Revenue Refunding Bonds (Saint Claire
Hospital Project), 7% due 2/15/2011 4,096
Wyoming--0.7% BBB Baa3 3,000 Sweetwater County, Wyoming, Solid Waste Disposal Revenue Bonds
(FMC Corporation Project), AMT, Series B, 6.90% due 9/01/2024 2,981
AA Aa 2,500 Wyoming Community Development Authority, S/F Mortgage Revenue
Bonds, AMT, Series H, 7.10% due 6/01/2012 2,603
Total Investments (Cost--$808,200)--97.8% 825,808
Other Assets Less Liabilities--2.2% 18,530
--------
Net Assets--100.0% $844,338
========
<FN>
(a)Prerefunded.
(b)PSF Guaranteed.
(c)MBIA Insured.
(d)GNMA Collateralized.
(e)BIGI Insured.
(f)FGIC Insured.
(g)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at February 28, 1995.
(h)AMBAC Insured.
(i)FSA Insured.
(j)The interest rate is subject to change periodically and inversely
to prevailing market rates. The interest rate shown is the rate in
effect at February 28, 1995.
(k)Escrowed to maturity.
(l)FNMA Collateralized.
*Not Rated.
**Represents the yield to maturity.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of February 28, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$808,199,913)(Note 1a) $825,807,806
Cash 133,526
Receivables:
Securities sold $ 16,615,275
Interest 12,775,359 29,390,634
------------
Prepaid expenses and other assets 22,018
------------
Total assets 855,353,984
------------
Liabilities: Payables:
Securities purchased 9,872,305
Dividends to Common Stock shareholders (Note 1e) 678,090
Investment adviser (Note 2) 320,924 10,871,319
------------
Accrued expenses and other liabilities 144,276
------------
Total liabilities 11,015,595
------------
Net Assets: Net assets $844,338,389
============
Capital: Preferred Stock, par value $.10 per share; 10,000,000 shares
authorized (11,000 shares of AMPS* issued and outstanding,
at $25,000 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 6,483,164
Accumulated realized capital losses on investments--net (24,394,653)
Unrealized appreciation on investments--net 17,607,893
------------
Total--Equivalent to $9.31 net asset value per share of Common
Stock (market price--$8.75) 569,338,389
------------
Total capital $844,338,389
============
<FN>
*Auction Market Preferred Stock.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended February 28, 1995
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 27,427,421
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 2,035,458
Commission fees (Note 4) 330,088
Transfer agent fees 108,355
Accounting services (Note 2) 56,924
Professional fees 49,356
Printing and shareholder reports 40,248
Custodian fees 31,141
Directors' fees and expenses 19,086
Pricing fees 11,785
Listing fees 6,965
Other 15,738
------------
Total expenses 2,705,144
------------
Investment income--net 24,722,277
------------
Realized & Realized loss on investments (22,093,934)
Unrealized Gain Change in unrealized appreciation on investments--net 16,942,815
(Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 19,571,158
(Notes 1b, ============
1d & 3):
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: Feb. 28, 1995 Aug. 31, 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 24,722,277 $ 51,160,280
Realized gain (loss) on investments--net (22,093,934) 18,031,016
Change in unrealized appreciation on investments--net 16,942,815 (65,699,451)
------------ ------------
Net increase in net assets resulting from operations 19,571,158 3,491,845
------------ ------------
<PAGE>
Dividends & Investment income--net:
Distributions to Preferred Stock (4,938,758) (6,969,913)
Shareholders Common Stock (19,954,810) (42,880,970)
(Note 1e): Realized gain on investments to Common Stock--net (10,019,427) (19,681,289)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (34,912,995) (69,532,172)
------------ ------------
Common Stock Net increase in net assets derived from shares issued to
Transactions Common Stock shareholders in reinvestment of dividends -- 8,190,313
(Note 4): ------------ ------------
Net Assets: Total decrease in net assets (15,341,837) (57,850,014)
Beginning of period 859,680,226 917,530,240
------------ ------------
End of period* $844,338,389 $859,680,226
------------ ------------
*Undistributed investment income--net $ 6,483,164 $ 6,654,455
============ ============
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have
been derived from information provided in the For the Six
financial statements. Months Ended
Feb. 28, For the Year Ended August 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992 1991
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.57 $ 10.65 $ 10.19 $ 9.76 $ 9.28
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .41 .84 .92 .97 .96
Realized and unrealized gain (loss) on invest-
ments--net (.10) (.78) .69 .58 .49
-------- -------- -------- -------- --------
Total from investment operations .31 .06 1.61 1.55 1.45
-------- -------- -------- -------- --------
Less dividends and distributions to Common
Stock shareholders:
Investment income--net (.33) (.70) (.78) (.79) (.73)
Realized gain on investments--net (.16) (.32) (.25) (.16) --
-------- -------- -------- -------- --------
Total dividends and distributions to Common
Stock shareholders (.49) (1.02) (1.03) (.95) (.73)
-------- -------- -------- -------- --------
Effect of Preferred Stock Activity:
Dividends to Preferred Stock shareholders:
Investment income--net (.08) (.12) (.12) (.17) (.24)
-------- -------- -------- -------- --------
Net asset value, end of period $ 9.31 $ 9.57 $ 10.65 $ 10.19 $ 9.76
-------- -------- -------- -------- --------
Market price per share, end of period $ 8.75 $ 8.50 $ 11.25 $ 11.25 $ 10.25
======== ======== ======== ======== ========
<PAGE>
Total Based on market price per share 9.32%+++ (16.29%) 10.39% 20.39% 18.02%
Investment ======== ======== ======== ======== ========
Return:** Based on net asset value per share 3.31%+++ (0.44%) 15.38% 14.52% 13.53%
======== ======== ======== ======== ========
Ratios to Expenses .66%* .64% .65% .65% .66%
Average ======== ======== ======== ======== ========
Net Assets:*** Investment income--net 6.07%* 5.76% 6.17% 6.58% 6.84%
======== ======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock, end
Data: of period (in thousands) $569,338 $584,680 $642,530 $601,049 $593,867
======== ======== ======== ======== ========
Preferred Stock outstanding, end of
period (in thousands) $275,000 $275,000 $275,000 $275,000 $275,000
======== ======== ======== ======== ========
Portfolio turnover 47.11% 100.92% 73.38% 112.10% 129.73%
======== ======== ======== ======== ========
Dividends Per Series A--Investment income--net $ 466 $ 633 $ 633 $ 878 $ 1,251
Share on Series B--Investment income--net 406 637 642 882 1,243
Preferred Stock Series C--Investment income--net 422 644 624 861 1,237
Outstanding:++ Series D--Investment income--net 489 633 644 915 1,290
Series E--Investment income--net 457 626 636 884 1,261
<FN>
*Annualized.
**Total investment returns based on market value, which can be
significantly greater or lesser than the net asset value, may result
in substantially different returns. Total investment returns exclude
the effect of sales loads.
***Do not reflect the effect of dividends to Preferred Stock
shareholders.
++Dividends per share have been adjusted to reflect a four-for-one
stock split.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
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. These unaudited financial statements reflect all
adjustments which are, in the opinion of management, necessary to a
fair statement of the results for the interim period presented. All
such adjustments are of a normal recurring nature. 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. The
following is a summary of significant accounting policies followed
by the Fund.
(a) Valuation of investments--Municipal bonds are traded primarily
in the over-the-counter 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.
(b) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the debt markets. Losses may
arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
* Financial futures contracts--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
securities 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.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
* Options--The Fund can write covered call options and purchase put
options. When the Fund writes an option, an amount equal to the
premium received by the Fund is reflected as an asset and an
equivalent liability. The amount of the liability is subsequently
marked to market to reflect the current market value of the option
written.
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premiums paid or received).
Written and purchased options are non-income producing investments.
(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) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital gains
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"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co. ("ML & Co."), which is the limited
partner.
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 0.50% 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, PSI, 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, 1995 were $385,874,920 and
$364,032,131, respectively.
Net realized and unrealized gains (losses) as of February 28, 1995
were as follows:
Realized Unrealized
Losses Gains
Long-term investments $(16,536,499) $15,767,321
Short-term investments (29,802) 1,840,572
Financial futures contracts (5,527,633) --
------------ -----------
Total $(22,093,934) $17,607,893
============ ===========
As of February 28, 1995, net unrealized appreciation for Federal
income tax purposes aggregated $17,607,893, of which $24,041,036
related to appreciated securities and $6,433,143 related to
depreciated securities. The aggregate cost of investments at
February 28, 1995 for Federal income tax purposes was $808,199,913.
4. Capital Stock Transactions:
Common Stock
At February 28, 1995, 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, 1995, shares
issued and outstanding remained constant at 61,123,140. At February
28, 1995, total paid-in capital amounted to $569,641,985.
Preferred Stock
The Auction Market Preferred Stock ("AMPS") 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 Fund is authorized to issue
10,000,000 shares of Preferred Stock having a par value of $.10 per
share. The yields in effect at February 28, 1995 were as follows:
Series A, 3.96%; Series B, 4.05%; Series C, 3.98%; Series D, 3.96%;
and Series E, 3.875%.
<PAGE>
A four-for-one stock split occurred on December 1, 1994. As a
result, for the six months ended February 28, 1995, there were
11,000 AMPS shares issued and outstanding with a liquidation
preference of $25,000 per share, plus accumulated and unpaid
dividends of $285,007. Prior to the stock split, there were 2,750
AMPS shares outstanding with a liquidation preference of $100,000.
The Fund pays commissions to certain broker-dealers at the end of
each auction at an annual rate of approximately one-quarter of 1%
calculated on the proceeds of each auction. For the six months ended
February 28, 1995, MLPF&S, an affiliate of FAM, earned $62,775 as
commissions.
5. Subsequent Event:
On March 13, 1995, the Fund's Board of Directors declared an
ordinary income dividend to Common Stock shareholders in the amount
of $0.052544 per share, payable on March 30, 1995 to shareholders of
record as of March 24, 1995.
PER SHARE INFORMATION
<TABLE>
Per Share
Selected Quarterly
Financial Data*
<CAPTION>
Net Realized Unrealized Dividends/Distributions
Investment Gains Gains Net Investment Income Capital Gains
For the Quarter Income (Losses) (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
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 -- --
September 1, 1994 to November 30, 1994 .21 (.28) (.77) .17 .04 -- --
December 1, 1994 to February 28, 1995 .20 (.09) 1.04 .16 .04 .16 --
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
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 9.875 8.875 3,341
June 1, 1994 to August 31, 1994 9.83 9.35 9.625 8.25 3,361
September 1, 1994 to November 30, 1994 9.57 8.32 8.375 7.125 7,824
December 1, 1994 to February 28, 1995 9.31 8.49 8.75 7.50 6,243
<PAGE>
<FN>
*Calculations are based upon Common Stock outstanding at the end of
each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
