MUNIVEST
FUND, INC.
[GRAPHIC OMITTED]
STRATEGIC
Performance
Semi-Annual Report
February 29, 2000
<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.
As a part of its investment strategy, the Fund may invest in certain securities
whose potential income return is inversely related to changes in a floating
interest rate ("inverse floaters"). In general, interest rates on inverse
floaters will decrease when short-term interest rates increase and increase when
short-term interest rates decrease. Investments in inverse floaters may be
characterized as derivative securities and may subject the Fund to the risks of
reduced or eliminated interest payments and losses of invested principal. In
addition, inverse floaters have the effect of providing investment leverage and,
as a result, the market value of such securities will generally be more
volatile than that of fixed-rate, tax-exempt securities. To the extent the Fund
invests in inverse floaters, the market value of the Fund's portfolio and the
net asset value of the Fund's shares may also be more volatile than if the Fund
did not invest in such securities.
<PAGE>
MuniVest Fund, Inc., February 29, 2000
DEAR SHAREHOLDER
For the six months ended February 29, 2000, the Common Stock of MuniVest Fund,
Inc. earned $0.279 per share income dividends, which included earned and unpaid
dividends of $0.044. This represents a net annualized yield of 6.53%, based on a
month-end per share net asset value of $8.58. Over the same period, the total
investment return on the Fund's Common Stock was -2.89%, based on a change in
per share net asset value from $9.15 to $8.58, and assuming reinvestment of
$0.283 per share income dividends.
For the six months ended February 29, 2000, the Fund's Preferred Stock had an
average yield as follows: Series A, 3.79%; Series B, 3.98%; Series C, 3.34%;
Series D, 3.34%; and Series E, 3.58%.
The Municipal Market Environment
Throughout most of the period ended February 29, 2000, US fixed-income interest
rates were under pressure as domestic economic growth remained robust and rising
commodity prices, especially oil, rekindled investor concerns regarding a
reemergence of inflationary pressures. US economic growth, in part intensified
by Year 2000 (Y2K) preparations, grew at a 6.9% rate in the fourth quarter of
1999 and at a 4.4% annual rate for all of 1999.
However, despite these significant growth rates, no price measure indicator has
shown any considerable signs of pressures at either the consumer level or from
labor, despite the lowest unemployment rates since January 1970. Given no signs
of an economic slowdown, the Federal Reserve Board continued to raise short-term
interest rates in August and November 1999 and again in early February 2000. In
each instance, the Federal Reserve Board cited both the continued growth of US
employment and the impressive strength of the US equity markets as reasons for
attempting to moderate US economic growth before inflationary price increases
are realized. In this environment, long-term US Treasury bond yields rose almost
60 basis points (0.60%) by mid-January 2000 to 6.75%, their highest yield level
since June 1997.
However, in late January and early February 2000, the US Treasury announced that
it intended to use present and future surpluses to purchase existing high-coupon
debt, as well as to limit future issuance of longer maturity debt. While
complete details have not been released, we expect the reduced supply of
long-term US Treasury bonds to be significant and easily exceed demand on the
part of the world's financial institutions and governments. US Treasury bond
prices began rising as investors began hoarding what is expected to become a
scarce commodity. While US Treasury yields have remained high through the past
ten years, the yield on 30-year US Treasury bonds fell dramatically, by
declining more than 50 basis points to end the period at 6.14%.
The municipal bond market has also been under pressure throughout the entire
period. By mid-January 2000, yields on long-term, uninsured revenue bonds rose
more than 50 basis points to 6.35%, as measured by the Bond Buyer Revenue Bond
Index. While some states such as California and Maryland have announced that
their present and expected budget surpluses will allow for the cancellation
and/or postponement of expected bond issuance, the municipal bond market has
been unable to match the sort of price improvement that US Treasury bonds have
shown in recent weeks. Municipal bond yields declined approximately 10 basis
points to 6.24% by February 29, 2000. During the last few months, long-term
tax-exempt bond yields rose more than 40 basis points to their highest level
since August 1995.
The relative underperformance of the municipal bond market in recent months has
been especially disappointing given the strong technical position the tax-exempt
bond market has enjoyed. The issuance of long-term tax-exempt securities has
dramatically declined. Over the last year, $212 billion in new long-term
municipal securities was issued, a decline of more than 20% compared to the same
period a year earlier. For the three months ended February 29, 2000, less than
$40 billion in new tax-exempt bonds was underwritten, a decline of more than 30%
compared to the February 28, 1999 quarter. Thus far in 2000, total bond issuance
volume is less than $20 billion, a decline of more than 40% compared to the
first two months of 1999.
Despite receiving more than $30 billion in coupon payments, bond maturities and
the proceeds from early bond redemptions coupled with the highest municipal bond
yields in three years, overall investor demand has diminished. Long-term
municipal bond mutual funds have seen consistent outflows in recent months as
the yields of individ ual securities have risen faster than those of larger,
more diverse mutual funds. Over the last six months, tax-exempt mutual funds
have had net redemptions of approximately $9 billion. Also, the demand from
property and casualty insurance companies has weakened as a result of the losses
and anticipated losses incurred from a series of damaging storms across much of
the eastern United States. Additionally, many institutional investors who have
in recent years been attracted to the municipal bond market by historically
attractive tax-exempt bond yield ratios of over 90%, found other asset classes
even more attractive. Even with a reduced supply position, tax-exempt issuers
have been forced repeatedly to raise municipal bond yields in an attempt to
attract adequate demand.
However, the recent relative underperformance of the municipal bond market has
resulted in the opportunity for long-term investors to purchase tax-exempt
issues whose yields are in excess of taxable US Treasury securities. At February
29, 2000, long-term uninsured municipal revenue bond yields were 101.5% of
comparable US Treasury securities. In recent months, many taxable asset classes,
such as corporate bonds, mortgage-backed securities, and US Government agency
issues have all accelerated debt issuance. This acceleration occurred largely to
avoid issuing securities at year-end and thereby avoid any associated potential
Y2K problems. However, this increased issuance also resulted in higher yield
levels in the various asset classes as lower bond prices became necessary to
attract sufficient investor demand. Going forward, we believe that the pace of
non-US Government debt is likely to slow significantly. As the supply of this
debt declines, many institutional investors are likely to return to the
municipal bond market and the attractive yield ratios available. Furthermore,
with the potential scarcity of longer maturity debt, the attractiveness of the
US municipal bond market should be further enhanced.
Any significantly lower municipal bond yields are still likely to require weaker
US employment growth and consumer spending. The tightening actions taken in
recent months by the Federal Reserve Board, as well as those expected in March
and perhaps May 2000, should eventually slow US economic growth. The recent
decline in US home sales is perhaps the first sign that consumer spending is
being slowed by higher interest rates. Until fur ther signs develop, it is
likely that the municipal bond market's current favorable technical position
will dampen significant tax-exempt interest rate volatility and provide a stable
environment for an eventual improvement in municipal bond prices.
Portfolio Strategy
During the six-month period ended February 29, 2000, we maintained the neutral
portfolio position we had adopted earlier last year, as we expected continued
interest rate volatility. Portfolio activity was largely restricted by the
decline in new-issue supply. However, we purchased larger-couponed issues in the
15-year-20-year maturity range whenever possible. We believe these issues can
provide some protection from continued upward shifts in interest rates. Also,
given the steepness of the municipal bond market's yield curve, these issues are
able to capture 90%-95% of the yield currently available. We also added
higher-yielding uninsured securities to the Fund's holdings whenever they were
attractively priced. These issues should help the Fund maintain its present
attractive dividend.
Throughout the period, the Fund's borrowing costs centered around 3.50%. The US
Treasury bond yield curve has recently inverted with the ten-year US Treasury
bond yield higher than that of the 30-year Treasury bond. The tax-exempt bond
mar ket has remained positively sloped, generating significant income
2 & 3
<PAGE>
MuniVest Fund, Inc., February 29, 2000
for the Fund's Common Stock shareholders from the leveraging of the Preferred
Stock. However, should the spread between short-term and long-term tax-exempt
interest rates narrow, the benefits of the leverage will decline and, as a
result, 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.)
Looking ahead, we expect to maintain our fully invested position in order to
seek to enhance shareholder income. Since we believe that tax-exempt bond yields
are likely to remain in a relatively narrow range, we do not expect to make any
significant changes to the current composition and structure of the portfolio.
Should either the US economy or equity markets exhibit any significant weakness,
we are prepared to adopt a more aggressive stance in order to seek to enhance
portfolio appreciation.
In Conclusion
We appreciate your ongoing interest in MuniVest Fund, Inc., and we look forward
to assisting you with your financial needs in the months and years ahead.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Director
/s/ Vincent R. Giordano
Vincent R. Giordano
Senior Vice President
/s/ Fred K. Stuebe
Fred K. Stuebe
Vice President and Portfolio Manager
March 28, 2000
Quality Profile
The quality ratings of securities in the Fund as of February 29, 2000 were as
follows:
- --------------------------------------------------------------------------------
Percent of
S&P Rating/Moody's Rating Net Assets
- --------------------------------------------------------------------------------
AAA/Aaa .................................................. 43.9%
AA/Aa .................................................... 26.8
A/A ...................................................... 12.1
BBB/Baa .................................................. 9.4
NR (Not Rated) ........................................... 2.1
Other* ................................................... 7.5
- --------------------------------------------------------------------------------
* Temporary investments in short-term municipal securities.
SCHEDULE OF INVESTMENTS (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Alabama--2.9% BBB Baa1 $ 8,750 Courtland, Alabama, IDB, IDR, Refunding (Champion International
Corporation), Series A, 7.20% due 12/01/2013 $ 9,127
Courtland, Alabama, IDB, Solid Waste Disposal Revenue Bonds
(Champion International Corporation Project), AMT:
BBB Baa1 5,000 7% due 6/01/2022 5,061
BBB Baa1 6,170 Series A, 6.375% due 3/01/2029 5,810
AAA NR* 3,580 Jefferson County, Alabama, Sewer Revenue Bonds, RIB, Series 124,
6.52% due 2/01/2036 (f)(j) 2,760
A1 VMIG1+ 400 West Jefferson, Alabama, IDB, PCR, Refunding (Alabama Power
Company Project), VRDN, 3.85% due 6/01/2028 (g) 400
====================================================================================================================================
Alaska--1.7% AAA Aaa 1,840 Anchorage, Alaska, Water Revenue Refunding Bonds, 6% due 9/01/2024 (h) 1,824
North Slope Boro, Alaska, GO, Series B (c):
AAA Aaa 6,000 5.10%** due 1/01/2002 5,475
AAA Aaa 6,000 5.20%** due 1/01/2003 5,189
A1+ VMIG1+ 1,125 Valdez, Alaska, Marine Terminal Revenue Refunding Bonds (Exxon
Pipeline Company Project),
VRDN, Series C, 3.80% due 12/01/2033 (g) 1,125
====================================================================================================================================
Arizona--1.8% AAA Aa1 5,580 Arizona State Transportation Board, Highway Revenue Refunding Bonds,
6% due 7/01/2012 5,835
Maricopa County, Arizona, Pollution Control Corporation, PCR,
Refunding (Arizona Public Service Company), VRDN (g):
A1+ P1 1,300 Series A, 3.80% due 5/01/2029 1,300
A1+ P1 700 Series B, 3.80% due 5/01/2029 700
A1+ P1 6,500 Series E, 3.80% due 5/01/2029 6,500
====================================================================================================================================
California--0.3% AA- Aa3 2,000 California State, GO, 7% due 8/01/2009 2,278
====================================================================================================================================
Colorado--4.7% Arapahoe County, Colorado, School District Number 005, GO
(Cherry Creek):
AA Aa2 5,750 6% due 12/15/2013 5,987
AA Aa2 4,165 6% due 12/15/2014 4,314
Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT,
Senior Series A-2:
NR* Aa2 2,500 6.60% due 5/01/2028 2,534
NR* Aa2 3,000 7.50% due 4/01/2031 3,286
====================================================================================================================================
</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)
COP Certificates of Participation
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue Bonds
INFLOS Inverse Floating Rate Municipal Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
RITR Residual Interest Trust Receipts
S/F Single-Family
VRDN Variable Rate Demand Notes
4 & 5
<PAGE>
MuniVest Fund, Inc., February 29, 2000
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Colorado Denver, Colorado, City and County Airport Revenue Bonds:
(concluded) BBB+ Aaa $ 1,720 AMT, Series C, 6.75% due 11/15/2002 (a) $ 1,834
BBB+ Baa1 9,850 AMT, Series C, 6.75% due 11/15/2013 9,995
BBB+ Baa1 1,485 AMT, Series C, 6.75% due 11/15/2022 1,493
AAA Baa1 7,340 Series A, 7.25% due 11/15/2002 (a) 7,923
AAA NR* 435 El Paso County, Colorado, Local S/F Mortgage Revenue Bonds,
AMT, Series A, 8% due 9/01/2022 (d)(k) 446
====================================================================================================================================
District of A1+ VMIG1+ 300 District of Columbia, GO (General Fund Recovery), VRDN, Series
Columbia--0.0% B-2, 3.90% due 6/01/2003 (g) 300
====================================================================================================================================
Florida--1.4% NR* Aaa 4,950 Florida HFA, Home Ownership Revenue Refunding Bonds, AMT, Series
G1, 7.90% due 3/01/2022 (d) 5,090
AAA Aaa 4,245 Florida State Board of Education, GO, Refunding (Public Education),
Series A, 4.50% due 6/01/2023 (f) 3,375
NR* VMIG1+ 1,300 Hillsborough County, Florida, IDA, PCR, Refunding (Tampa
Electric Company Project), VRDN, 3.80% due 9/01/2025 (g) 1,300
A1+ VMIG1+ 1,300 Manatee County, Florida, PCR, Refunding (Florida Power and
Light Company Project), VRDN, 3.80% due 9/01/2024 (g) 1,300
A1+ VMIG1+ 100 Saint Lucie County, Florida, PCR, Refunding (Florida Power and
Light Company Project), VRDN, 3.80% due 1/01/2026 (g) 100
====================================================================================================================================
Georgia--3.0% A A3 4,850 Georgia Municipal Electric Authority, Power Revenue Refunding Bonds
(Crossover), Series W, 6.60% due 1/01/2018 5,232
Georgia State, GO, Series F:
AAA Aaa 6,400 6.50% due 12/01/2006 6,925
AAA Aaa 5,000 6.50% due 12/01/2007 5,443
AAA Aa2 1,525 Georgia State Housing and Finance Authority, Revenue Refunding Bonds,
S/F Mortgage, AMT, Sub-Series A-2, 6.55% due 12/01/2027 (k) 1,535
A A3 4,785 Monroe County, Georgia, Development Authority, PCR, Refunding
(Oglethorpe Power Corporation--Scherer), Series A, 6.80% due 1/01/2011 5,194
====================================================================================================================================
Hawaii--1.2% A A 10,000 Hawaii State Department of Budget and Finance, Special Purpose Revenue
Bonds, 6.25% due 7/01/2021 9,568
====================================================================================================================================
Idaho--0.5% NR* Aaa 3,990 Idaho Housing Agency, S/F Mortgage Revenue Refunding Bonds, AMT,
Series E-2, 6.90% due 1/01/2027 4,082
====================================================================================================================================
Illinois--12.0% A1 NR* 13,430 Chicago, Illinois, GO, Refunding, RITR, Series 126, 6.51%
due 1/01/2034 (f)(j) 10,469
AAA Aaa 7,500 Chicago, Illinois, GO, Series A, 6.75% due 1/01/2035 (f) 8,034
AAA NR* 6,250 Chicago, Illinois, Sales Tax Revenue Bonds, RIB, Series
92, 6.485% due 1/01/2030 (f)(j) 4,870
AAA Aaa 4,905 Chicago, Illinois, Water Revenue Refunding Bonds, 5.50%
due 11/01/2022 (f) 4,529
AAA Aaa 5,300 Cook County, Illinois, GO, Refunding, Series B, 5.375%
due 11/15/2018 (c) 4,896
AAA NR* 1,810 Illinois Development Finance Authority Revenue Bonds
(Bradley University Project), 5.375% due 8/01/2019 (h) 1,671
NR* NR* 2,500 Illinois Educational Facilities Authority, Revenue Refunding Bonds
(Chicago Osteopathic Health System), 7.25% due 11/15/2019 (a) 2,857
Illinois HDA, Revenue Refunding Bonds:
A+ A1 660 (M/F Housing), Series A, 7.375% due 7/01/2017 689
A+ A1 7,000 (M/F Program), Series 5, 6.75% due 9/01/2023 7,302
Illinois Health Facilities Authority Revenue Bonds:
NR* Baa1 2,650 (Holy Cross Hospital Project), 6.70% due 3/01/2014 2,644
A1+ VMIG1+ 500 (Northwestern Memorial Hospital), VRDN, 3.85% due 8/15/2025 (g) 500
NR* Baa1 2,205 (Ravenswood Hospital Medical Center), 6.85% due 6/01/2002 (a) 2,333
NR* Baa1 7,375 (Ravenswood Hospital Medical Center), 6.90% due 6/01/2002 (a) 7,810
Illinois Health Facilities Authority, Revenue Refunding Bonds:
AA A1 9,000 (Advocate Health Care), Series A, 5.875% due 8/15/2022 8,441
A1 VMIG1+ 3,600 (University of Chicago Hospitals), VRDN, 3.85% due 8/01/2026 (c)(g) 3,600
A1+ P1 1,900 Joliet, Illinois, Regional Port District, Marine Terminal Revenue
Refunding Bonds (Exxon Project), VRDN, 3.80% due 10/01/2024 (g) 1,900
BBB NR* 2,500 Lansing, Illinois, Tax Increment Revenue Refunding Bonds
(Sales Tax--Landings Redevelopment), 7% due 12/01/2008 2,625
AAA Aaa 3,620 Metropolitan Pier and Exposition Authority, Illinois, Dedicated
State Tax Revenue Bonds, 6.5% due 6/15/2003 (a)(f) 3,862
NR* Aaa 2,500 Northern Illinois University, Revenue Refunding Bonds (Auxiliary
Facilities System), 6% due 4/01/2029 (h) 2,479
Regional Transportation Authority, Illinois, Revenue Bonds:
AAA Aaa 3,500 Series A, 7.20% due 11/01/2020 (h) 4,021
AAA Aaa 2,500 Series C, 7.10% due 6/01/2004 (a)(f) 2,744
AAA Aaa 4,000 Series C, 7.75% due 6/01/2020 (f) 4,838
AAA Aaa 3,000 Will County, Illinois, Environmental Revenue Bonds (Mobil Oil
Refining Corporation Project), AMT, 6.40% due 4/01/2026 3,024
====================================================================================================================================
Indiana--10.4% AAA NR* 5,250 Indiana Bond Bank Revenue Bonds (State Revolving Fund Program),
Series A, 6.75% due 2/01/2017 5,647
Indiana Health Facility Financing Authority, Hospital Revenue
Refunding Bonds:
AA Aa3 10,250 (Clarian Health Partners Inc.), Series A, 6% due 2/15/2021 9,814
BBB+ NR* 3,000 (Hancock Memorial Hospital Health Services), 6.125% due 8/15/2017 2,669
NR* Aaa 4,290 Indiana State, HFA, S/F Mortgage Revenue Refunding Bonds, Series A,
6.80% due 1/01/2017 (k) 4,375
AA- Aa3 7,195 Indiana Transportation Finance Authority, Highway Revenue Bonds,
Series A, 6.80% due 12/01/2016 8,011
Indianapolis, Indiana, Local Public Improvement Bond Bank Revenue
Refunding Bonds, Series D:
AA NR* 15,335 6.75% due 2/01/2014 16,929
AA NR* 20,350 6.75% due 2/01/2020 21,189
Jasper County, Indiana, PCR, Refunding (Northern Indiana Public
Service), VRDN (g):
A1 VMIG1+ 2,900 Series A, 3.85% due 8/01/2010 2,900
A1 VMIG1+ 3,700 Series B, 3.85% due 6/01/2013 3,700
A1 VMIG1+ 4,500 Series C, 3.85% due 4/01/2019 4,500
A1+ VMIG1+ 1,500 Princeton, Indiana, PCR, Refunding (PSI Energy Incorporated
Project), VRDN, 3.80% due 4/01/2022 (g) 1,500
AA Aa2 2,000 Purdue University, Indiana, University Revenue Bonds (Student Fee),
Series B, 6.70% due 1/01/2005 (a) 2,184
====================================================================================================================================
Iowa--0.2% NR* Aaa 1,710 Iowa Finance Authority, S/F Mortgage Revenue Bonds, AMT, Series A,
7.90% due 11/01/2022 (d) 1,747
====================================================================================================================================
Louisiana--1.6% BBB+ A3 4,000 De Soto Parish, Louisiana, Environmental Improvement Revenue
Refunding Bonds (International Paper Co. Project), AMT, Series
B, 6.55% due 4/01/2019 3,955
NR* A3 3,000 Lake Charles, Louisiana, Harbor and Terminal District, Port
Facilities Revenue Refunding Bonds (Trunkline Long Company Project),
7.75% due 8/15/2022 3,225
A+ A1 5,000 Louisiana Public Facilities Authority Revenue Bonds (Tulane
University), 6.625% due 11/15/2002 (a) 5,313
NR* VMIG1+ 400 Louisiana State Offshore Terminal Authority, Deepwater Port Revenue
Refunding Bonds (First Stage A-Loop Inc.), ACES, 3.80%
due 9/01/2006 (g) 400
====================================================================================================================================
Maine--0.5% AAA Aaa 4,195 Maine State Housing Authority, Mortgage Purchase Revenue Refunding
Bonds, AMT, Series B-2, 6.45% due 11/15/2026 (h) 4,259
====================================================================================================================================
</TABLE>
6 & 7
<PAGE>
MuniVest Fund, Inc., February 29, 2000
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Maryland--2.2% AAA Aaa $ 5,840 Maryland GO, State and Local Facilities Loan, Second Series,
4.75% due 8/01/2003 $ 5,843
NR* Aa2 7,000 Maryland State Community Development Administration, Department of
Housing and Community Development Revenue Refunding Bonds
(S/F Program), AMT, Fifth Series, 6.75% due 4/01/2026 7,093
AAA Aaa 2,540 Montgomery County, Maryland, Consolidated Public Improvement,
GO, Series A, 4.875% due 5/01/2003 2,551
AA Aa1 1,900 Washington Suburban Sanitation District, Maryland, GO, Refunding
(Water Supply), Second Series, 4.75% due 6/01/2002 1,905
====================================================================================================================================
Massachusetts--6.2% AAA Aaa 2,035 Boston, Massachusetts, Water and Sewer Commission Revenue Bonds,
9.25% due 1/01/2011 (e) 2,630
AA- Aa2 3,010 Massachusetts Bay Transportation Authority, Revenue Refunding
Bonds (General Transportation System), Series A, 7% due 3/01/2019 3,407
AA- Aa2 5,000 Massachusetts State Consolidated Loan, GO, Series A, 6% due 2/01/2014 5,170
AA- Aa3 2,775 Massachusetts State Port Authority Revenue Bonds, Series C, 6%
due 7/01/2014 2,866
A+ A1 30,000 Massachusetts State Water Resource Authority Revenue Bonds, Series A,
6.50% due 7/15/2019 32,265
Massachusetts State Water Resource Authority, Revenue Refunding Bonds,
Series A (f):
AAA Aaa 1,000 6% due 8/01/2014 1,039
AAA Aaa 2,480 6% due 8/01/2017 2,537
====================================================================================================================================
Michigan--2.2% AAA Aaa 2,095 Caledonia, Michigan, Community Schools, GO, Refunding, 4.75% due
5/01/2022 (f) 1,734
AA+ NR* 5,130 Michigan State, HDA, Revenue Refunding Bonds, AMT, Series D, 6.85%
due 6/01/2026 (k) 5,241
Michigan State Hospital Finance Authority, Revenue Refunding Bonds:
AAA Aaa 3,000 (Ascension Health Credit), Series A, 6.125% due 11/15/2023 (c) 2,994
AA Aa2 4,340 (Ascension Health Credit), Series A, 6.125% due 11/15/2026 4,231
NR* A1 2,500 (McLaren Health Care Corp.), Series A, 5% due 6/01/2028 1,908
NR* VMIG1+ 100 (Mount Clemens Hospital), VRDN, 3.90% due 8/15/2015 (g) 100
AA VMIG1+ 1,000 Royal Oak, Michigan, Hospital Finance Authority, Hospital Revenue Bonds
(William Beaumont Hospital), VRDN, Series L, 3.80% due 1/01/2027 (g) 1,000
====================================================================================================================================
Minnesota--2.5% AAA Aaa 5,200 Minnesota State, GO, 6% due 8/01/2004 5,452
Minnesota State, HFA, S/F Mortgage Revenue Bonds:
AA+ Aa2 2,700 AMT, Series L, 6.70% due 7/01/2020 2,757
AA+ Aa2 4,165 AMT, Series M, 6.70% due 7/01/2026 4,240
AA+ Aa2 3,050 Series H, 6.70% due 1/01/2018 3,116
AA+ NR* 5,000 Rochester, Minnesota, Health Care Facilities Revenue Bonds (Mayo
Foundation), Series A, 5.50% due 11/15/2027 4,598
====================================================================================================================================
Missouri--0.3% AAA NR* 2,500 Missouri State Housing Development Commission, S/F Mortgage Revenue
Bonds (Homeowner Loan), AMT, Series A, 7.50% due 3/01/2031 (b)(d) 2,735
====================================================================================================================================
Nebraska--0.4% AAA NR* 2,980 Nebraska Investment Finance Authority, S/F Housing Revenue Bonds, AMT,
Series C, 6.30% due 9/01/2028 (b)(d)(l) 2,930
====================================================================================================================================
Nevada--2.8% AAA Aaa 8,580 Clark County, Nevada, School District, GO, Series A, 6% due
6/15/2014 (c) 8,838
BBB+ Baa1 5,000 Henderson, Nevada, Health Care Facility Revenue Bonds (Catholic
Healthcare West--Saint Rose Dominican Hospital), 5.375% due 7/01/2026 3,781
Nevada Housing Division Revenue Bonds (Multi-Unit Housing), AMT (b):
AAA NR* 3,475 (Arville Electric Project), 6.60% due 10/01/2023 3,558
AAA Aa2 1,235 Issue B, 7.45% due 10/01/2017 1,318
Nevada Housing Division Revenue Bonds (S/F Program), AMT (k):
AAA Aaa 2,565 Senior Series E, 7% due 10/01/2019 2,632
NR* Aa2 1,665 Series A, 6.55% due 10/01/2012 1,687
A1+ P1 700 Washoe County, Nevada, Water Facility Revenue Bonds (Sierra Pacific
Power Company Project), AMT, VRDN, 4% due 12/01/2020 (g) 700
====================================================================================================================================
New Jersey--1.8% AAA Aaa 2,000 New Jersey State Housing and Mortgage Finance Agency Revenue Bonds,
Home Buyer, AMT, Series M, 6.95% due 10/01/2022 (c) 2,093
AAA Aaa 12,000 New Jersey State Transit Corporation, COP (Federal Transit Administration
Grants), Series A, 6% due 9/15/2013 (h) 12,432
====================================================================================================================================
New York--13.2% A1+ VMIG1+ 2,500 Long Island Power Authority, New York, Electric System Revenue Bonds,
VRDN, Sub-Series 5, 3.75% due 5/01/2033 (g) 2,500
AAA Aaa 12,385 Long Island Power Authority, New York, Electric System Revenue Refunding
Bonds, Series A, 5.50% due 12/01/2029 (c) 11,275
AAA Aaa 2,100 Metropolitan Transportation Authority, New York, Dedicated Tax
Fund Revenue Bonds, Series A, 6.125% due 4/01/2016 (f) 2,162
AAA Aaa 3,000 New York City, New York, City Health and Hospital Corporation Revenue
Refunding Bonds, Series A, 6.30% due 2/15/2003 (a) 3,172
NR* Aaa 11,920 New York City, New York, City Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds, RITR, Series 10, 6.37%
due 6/15/2026 (i)(j) 9,610
AA Aa3 9,750 New York City, New York, City Transitional Finance Authority
Revenue Bonds, Future Tax Secured, Series C, 4.75% due 5/01/2023 7,992
New York City, New York, GO:
A- A3 480 Series D, 6% due 2/15/2005 (a) 502
A- A3 1,670 Series D, 6% due 2/15/2020 1,651
A A3 1,255 Series I, 6.25% due 4/15/2027 1,264
New York City, New York, GO, Refunding:
A- A3 5,000 Series F, 5.875% due 8/01/2024 4,809
A- A3 3,500 Series K, 5.375% due 8/01/2019 3,209
AAA NR* 10,775 New York State Dormitory Authority Revenue Bonds (City University
System--Consolidated Second Generation), Series A, 6.125%
due 7/01/2013 (h) 11,276
AAA A3 11,775 New York State Dormitory Authority, Revenue Refunding Bonds (Mental
Health Services Facilities), Series C, 4.75% due 8/15/2022 (c) 9,683
New York State Dormitory Authority, State University Educational
Facilities Revenue Refunding Bonds, Series 1989 (c):
AAA NR* 16,500 6% due 5/15/2015 16,930
AAA NR* 10,250 6% due 5/15/2016 10,463
NR* NR* 9,000 New York State Energy Research and Development Authority, Gas
Facilities Revenue Bonds, RITR, Series 9, 6.62% due 1/01/2021 (c)(j) 7,855
A1+ VMIG1+ 1,600 Port Authority of New York and New Jersey, Special Obligation Revenue
Refunding Bonds (Versatile Structure Obligation), VRDN, Series 1R,
AMT, 3.90% due 8/01/2028 (g) 1,600
====================================================================================================================================
North Carolina--0.3% NR* VMIG1+ 550 North Carolina Medical Care Commission, Hospital Revenue Bonds (Pooled
Financing Project), ACES, Series A, 3.80% due 10/01/2020 (g) 550
AAA Aaa 1,900 University of North Carolina, System Pool Revenue Bonds, Series B,
4.50% due 10/01/2018 (c) 1,548
====================================================================================================================================
Ohio--1.7% A1+ VMIG1+ 1,500 Cuyahoga County, Ohio, Hospital Revenue Bonds (The Cleveland Clinic),
VRDN, Series D, 3.85% due 1/01/2026 (g) 1,500
AAA Aaa 6,000 Ohio HFA, Mortgage Revenue Refunding Bonds (Residential), AMT, Series C,
5.75% due 9/01/2030 (d) 5,568
AAA Aaa 2,200 Ohio HFA, S/F Mortgage Revenue Bonds, AMT, RIB, Series B, 9.628% due
3/31/2031 (d)(j) 2,324
AA+ Aa1 3,910 Ohio State, Common Schools Capital Facilities, GO, Series A, 5.25% due
6/15/2003 3,969
====================================================================================================================================
</TABLE>
8 & 9
<PAGE>
MuniVest Fund, Inc., February 29, 2000
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Pennsylvania--1.9% AAA Aaa $ 4,040 Allegheny County, Pennsylvania, Airport Authority, Airport
Revenue Refunding Bonds (Pittsburgh International Airport), AMT,
6% due 1/01/2013 (f) $ 4,120
AAA Aaa 5,000 Delaware River Port Authority of Pennsylvania and New Jersey
Revenue Bonds, 6% due 1/01/2019 (i) 5,070
A1+ VMIG1+ 500 Geisinger Authority, Pennsylvania, Health System Revenue Refunding
Bonds (Penn State--Geisinger Health), VRDN, Series B, 3.80% due
8/15/2028 (g) 500
AAA Aaa 2,440 Pennsylvania State Higher Education Assistance Agency Revenue Bonds
(Capital Acquisition), 6.125% due 12/15/2018 (c) 2,499
A1+ NR* 2,900 Pennsylvania State Higher Educational Facilities Authority, Revenue
Refunding Bonds (Carnegie Mellon University), VRDN, Series C, 3.80%
due 11/01/2029 (g) 2,900
A1+ NR* 100 Schuylkill County, Pennsylvania, IDA, Resource Recovery Revenue
Refunding Bonds (Northeastern Power Company), VRDN, Series A, 3.80%
due 12/01/2022 (g) 100
====================================================================================================================================
Rhode Island--0.8% AA+ Aa2 6,000 Rhode Island Housing and Mortgage Finance Corporation, Revenue
Refunding Bonds, INFLOS, AMT, 9.961% due 4/01/2024 (j) 6,413
====================================================================================================================================
Tennessee--1.2% AAA Aaa 10,000 Metropolitan Government of Nashville and Davidson County, Tennessee,
Health and Education Facilities Board, Revenue Refunding Bonds
(Ascension Health Credit), Series A, 5.875% due 11/15/2028 (h) 9,671
====================================================================================================================================
Texas--11.9% NR* Aaa 3,000 Arlington, Texas, Independent School District, GO, 6% due 2/15/2025 2,992
AAA Aaa 6,000 Austin, Texas, Airport System Revenue Bonds, Prior Lien, Series A,
AMT, 6.125% due 11/15/2025 (c) 5,919
AAA Aaa 3,040 Copperas Cove, Texas, Independent School District, GO, 6.90%
due 8/15/2004 (a) 3,276
AA- Aa3 10,250 Guadalupe-Blanco River Authority, Texas, Sewage and Solid Waste
Disposal Facility Revenue Bonds (E. I. du Pont de Nemours and Company
Project), AMT, 6.40% due 4/01/2026 10,389
BBB Baa1 4,000 Gulf Coast, Texas, IDA (Champion International Corp.), Refunding,
7.125% due 4/01/2010 4,176
A1+ VMIG1+ 1,000 Gulf Coast, Texas, Waste Disposal Authority, PCR, Refunding (Amoco Oil
Company Project), VRDN, 3.80% due 10/01/2017 (g) 1,000
BBB- Baa2 3,250 Gulf Coast Waste Disposal Authority, Texas, Revenue Refunding Bonds
(USX Corporation Projects), 5.50% due 9/01/2017 2,781
AA Aa1 2,400 Harris County, Texas, GO (Certificates of Obligation), 10% due
10/01/2002 (e) 2,692
Harris County, Texas, Health Facilities Development Corporation,
Hospital Revenue Bonds (a):
AAA Aaa 1,485 (Hermann Hospital Project), 6.375% due 10/01/2004 (c) 1,580
NR* NR* 3,500 (Memorial Hospital System Project), Series A, 6.60% due 6/01/2004 3,760
NR* NR* 2,500 (Memorial Hospital System Project), Series A, 6.625% due 6/01/2004 2,688
Harris County, Texas, Health Facilities Development Corporation,
Hospital Revenue Refunding Bonds (Methodist Hospital), VRDN (g):
A1+ NR* 5,950 3.85% due 12/01/2025 5,950
A1+ NR* 850 3.85% due 12/01/2026 850
Harris County, Texas, Health Facilities Development Corporation,
Revenue Refunding Bonds (e):
NR* Aa3 10,385 RITR, Series 6, 7.045% due 12/01/2027 (j) 9,839
AA Aa3 5,500 (School Health Care System), Series B, 6.25% due 7/01/2027 5,542
A1+ Aaa 1,900 Harris County, Texas, Industrial Development Corporation, PCR (Exxon
Project), VRDN, 3.85% due 3/01/2024 (g) 1,900
AAA Aaa 3,125 Jefferson County, Texas, GO, 6.25% due 8/01/2016 (i) 3,261
AAA Aaa 5,000 Lower Neches Valley Authority, Texas, Industrial Development
Corporation Sewer Facilities Revenue Bonds (Mobil Oil Refining Corp.
Project), AMT, 6.40% due 3/01/2030 5,053
NR* Aaa 5,225 Midway, Texas, Independent School District, GO, Refunding, 6.125%
due 8/15/2014 5,440
AA NR* 1,640 Red River, Texas, Education Finance Revenue Bonds (Saint Mark's
School--Texas Project), 6% due 8/15/2019 1,640
Travis County, Texas, Health Facilities Development Corporation,
Revenue Refunding Bonds (Ascension Health Credit), Series A:
AAA Aaa 4,605 6.25% due 11/15/2014 (c) 4,787
AAA Aaa 3,920 5.875% due 11/15/2024 (h) 3,793
Ysleta, Texas, Independent School District, Public Facility
Corporation, School Facility Lease Revenue Bonds:
AAA Aaa 2,285 6% due 11/15/2011 2,387
AAA Aaa 2,425 6% due 11/15/2012 2,524
AAA Aaa 1,000 6% due 11/15/2013 1,033
====================================================================================================================================
Virginia--1.0% BBB- Baa3 10,000 Pocahontas Parkway Association, Virginia, Toll Road Revenue Bonds,
Senior-Series A, 5.50% due 8/15/2028 7,904
====================================================================================================================================
Washington--7.1% AA+ Aa1 6,955 King County, Washington, GO, Series B, 6.625% due 12/01/2015 7,489
AA+ Aaa 4,640 Seattle, Washington, GO, Refunding, Series A, 5% due 3/01/2002 4,666
AAA Aaa 2,230 Vancouver, Washington, Water and Sewer Revenue Bonds, 6% due
6/01/2014 (f) 2,289
Washington State, GO, Series B (i):
AAA Aaa 9,690 6% due 1/01/2014 9,957
AAA Aaa 5,695 6% due 1/01/2015 5,779
NR* Aaa 1,535 Washington State Housing Finance Commission Revenue Bonds (S/F
Program), Series 3N, 5.25% due 12/01/2017 (b)(d)(l) 1,423
Washington State Public Power Supply System, Revenue Refunding Bonds
(Nuclear Project No. 1):
AA- Aa1 3,000 Series A, 7% due 7/01/2008 3,304
AA- Aa1 5,000 Series B, 7.25% due 7/01/2009 5,515
AA- Aa1 14,320 Series B, 7.125% due 7/01/2016 16,234
====================================================================================================================================
Wisconsin--0.3% AA Aa2 2,000 Wisconsin Housing and Economic Development Authority, Homeownership
Revenue Bonds, AMT, Series D, 6.45% due 9/01/2027 (k) 2,017
====================================================================================================================================
Wyoming--1.8% AAA VMIG1+ 4,100 Lincoln County, Wyoming, PCR, Refunding (Pacificorp Projects), VRDN,
3.85% due 11/01/2024 (g)(h) 4,100
BBB- Baa2 7,475 Sweetwater County, Wyoming, Solid Waste Disposal Revenue Bonds (FMC
Corp. Project), AMT, Series B, 6.90% due 9/01/2024 7,397
NR* VMIG1+ 300 Uinta County, Wyoming, PCR, Refunding (Chevron USA Inc. Project), VRDN,
3.75% due 12/01/2022 (g) 300
AA VMIG1+ 2,500 Wyoming Community Development Authority Revenue Bonds, S/F Mortgage,
VRDN, AMT, Series H, 7.10% due 6/01/2012 (g)(k) 2,604
====================================================================================================================================
Total Investments (Cost--$824,188)--101.8% 815,391
Liabilities in Excess of Other Assets--(1.8%) (14,302)
--------
Net Assets--100.0% $801,089
========
====================================================================================================================================
</TABLE>
(a) Prerefunded.
(b) FNMA Collateralized.
(c) MBIA Insured.
(d) GNMA Collateralized.
(e) Escrowed to maturity.
(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 29, 2000.
(h) AMBAC Insured.
(i) FSA Insured.
(j) The interest rate is subject to change periodically and inversely
based upon prevailing market rates. The interest rate shown is the
rate in effect at February 29, 2000.
(k) FHA Insured.
(l) FHLMC Collateralized.
* Not Rated.
** Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase by the Fund.
+ Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
10 & 11
<PAGE>
MuniVest Fund, Inc., February 29, 2000
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<TABLE>
<CAPTION>
As of February 29, 2000
================================================================================================================================
<S> <C> <C> <C>
Assets: Investments, at value (identified cost--$824,187,599) ........................... $ 815,390,768
Cash ............................................................................ 3,375,334
Receivables:
Securities sold ............................................................... $ 35,103,544
Interest ...................................................................... 10,216,408 45,319,952
-------------
Prepaid expenses and other assets ............................................... 20,984
-------------
Total assets .................................................................... 864,107,038
-------------
================================================================================================================================
Liabilities: Payables:
Securities purchased .......................................................... 62,137,426
Dividends to shareholders ..................................................... 458,402
Investment adviser ............................................................ 250,773 62,846,601
-------------
Accrued expenses and other liabilities .......................................... 170,944
-------------
Total liabilities ............................................................... 63,017,545
-------------
================================================================================================================================
Net Assets: Net assets ...................................................................... $ 801,089,493
=============
================================================================================================================================
Capital: Preferred Stock, par value $.025 per share; 10,000,000 shares
authorized (11,000 shares of AMPS* issued and outstanding, at $25,000 per share
liquidation preference) ......................................................... $ 275,000,000
Common Stock, par value $.10 per share; 150,000,000 shares
authorized; 61,346,288 shares issued and outstanding ............................ $ 6,134,629
Paid-in capital in excess of par ................................................ 565,767,507
Undistributed investment income--net ............................................ 5,484,829
Accumulated realized capital losses on investments--net ......................... (40,637,204)
Accumulated distributions in excess of realized capital gains on investments--net (1,863,437)
Unrealized depreciation on investments--net ..................................... (8,796,831)
-------------
Total--Equivalent to $8.58 net asset value per share of Common Stock
(market price--$7.6875) ......................................................... 526,089,493
-------------
Total capital ................................................................... $ 801,089,493
=============
================================================================================================================================
</TABLE>
* Auction Market Preferred Stock.
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For the Six Months Ended February 29, 2000
================================================================================================================================
<S> <C> <C> <C>
Investment Interest and amortization of premium and discount earned ........................ $ 23,959,829
Income:
================================================================================================================================
Expenses: Investment advisory fees ........................................................ $ 2,017,276
Commission fees ................................................................. 341,767
Transfer agent fees ............................................................. 128,647
Accounting services ............................................................. 51,083
Professional fees ............................................................... 47,754
Custodian fees .................................................................. 27,759
Printing and shareholder reports ................................................ 26,973
Pricing fees .................................................................... 12,102
Directors' fees and expenses .................................................... 9,579
Listing fees .................................................................... 7,122
Other ........................................................................... 20,666
-------------
Total expenses .................................................................. 2,690,728
-------------
Investment income--net .......................................................... 21,269,101
-------------
================================================================================================================================
Realized & Realized loss on investments--net ............................................... (27,310,763)
Unrealized Change in unrealized depreciation on investments--net ........................... (6,919,744)
Loss on -------------
Investments Net Decrease in Net Assets Resulting from Operations ............................ $ (12,961,406)
- --Net: =============
================================================================================================================================
</TABLE>
See Notes to Financial Statements.
12 & 13
<PAGE>
MuniVest Fund, Inc., February 29, 2000
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
February 29, August 31,
Increase (Decrease) in Net Assets: 2000 1999
===================================================================================================================================
<S> <C> <C> <C>
Operations: Investment income--net ......................................................... $ 21,269,101 $ 44,306,733
Realized gain (loss) on investments--net ....................................... (27,310,763) 5,143,958
Change in unrealized appreciation/depreciation on investments--net ............. (6,919,744) (67,514,851)
------------- -------------
Net decrease in net assets resulting from operations ........................... (12,961,406) (18,064,160)
------------- -------------
===================================================================================================================================
Dividends & Investment income--net:
Distributions to Common Stock ................................................................. (17,380,692) (35,297,693)
Shareholders: Preferred Stock .............................................................. (4,941,140) (8,932,120)
In excess of realized gain on investments--net, to Common Stock shareholders ... -- (1,863,437)
------------- -------------
Net decrease in net assets resulting from dividends and distributions to
shareholders ................................................................. (22,321,832) (46,093,250)
------------- -------------
===================================================================================================================================
Capital Stock Value of shares issued to Common Stock shareholders in reinvestment of
Transactions: dividends and distributions .................................................. -- 2,260,151
------------- -------------
===================================================================================================================================
Net Assets: Total decrease in net assets ................................................... (35,283,238) (61,897,259)
Beginning of period ............................................................ 836,372,731 898,269,990
------------- -------------
End of period* ................................................................. $ 801,089,493 $ 836,372,731
============= =============
===================================================================================================================================
*Undistributed investment income--net ........................................... $ 5,484,829 $ 6,537,560
============= =============
===================================================================================================================================
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
The following per share data and ratios have For the
been derived from information provided in the Six Months
financial statements. Ended For the Year Ended August 31,
February 29, -------------------------------------------
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............ $ 9.15 $ 10.20 $ 9.89 $ 9.45 $ 9.51
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .......................... .34 .73 .76 .77 .79
Realized and unrealized gain (loss) on
investments--net ............................. (.55) (1.02) .30 .45 (.06)
-------- -------- -------- -------- --------
Total from investment operations ................ (.21) (.29) 1.06 1.22 .73
-------- -------- -------- -------- --------
Less dividends and distributions to Common
Stock shareholders:
Investment income--net ....................... (.28) (.58) (.59) (.62) (.63)
In excess of realized gain on investments--net -- (.03) -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions to Common
Stock shareholders ........................... (.28) (.61) (.59) (.62) (.63)
-------- -------- -------- -------- --------
Effect of Preferred Stock activity:
Dividends to Preferred Stock shareholders
from investment income--net .................. (.08) (.15) (.16) (.16) (.16)
-------- -------- -------- -------- --------
Net asset value, end of period .................. $ 8.58 $ 9.15 $ 10.20 $ 9.89 $ 9.45
======== ======== ======== ======== ========
Market price per share, end of period ........... $ 7.6875 $ 8.6875 $ 10.00 $ 9.50 $ 9.125
======== ======== ======== ======== ========
===================================================================================================================================
Total Based on market price per share ................. (8.36%)++ (7.44%) 11.78% 11.25% 14.18%
Investment ======== ======== ======== ======== ========
Return:** Based on net asset value per share .............. (2.89%)++ (4.42%) 9.52% 11.84% 6.46%
======== ======== ======== ======== ========
===================================================================================================================================
Ratios Based Total expenses*** ............................... 1.00%* .93% .93% .93% .94%
on Average ======== ======== ======== ======== ========
Net Assets Of Total investment income--net*** ................. 7.93%* 7.26% 7.55% 7.85% 8.10%
Common Stock: ======== ======== ======== ======== ========
Amount of dividends to Preferred
Stock shareholders ........................... 1.84%* 1.46% 1.60% 1.59% 1.67%
======== ======== ======== ======== ========
Investment income--net, to Common
Stock shareholders ........................... 6.09%* 5.80% 5.95% 6.27% 6.44%
======== ======== ======== ======== ========
===================================================================================================================================
Ratios Based Total expenses .................................. .66%* .64% .64% .64% .64%
on Total ======== ======== ======== ======== ========
Average Total investment income--net .................... 5.25%* 5.01% 5.19% 5.40% 5.57%
Net Assets:***+ ======== ======== ======== ======== ========
===================================================================================================================================
Ratios Based Dividends to Preferred Stock
on Average Net shareholders ................................. 3.60%* 3.25% 3.55% 3.47% 3.59%
Assets Of ======== ======== ======== ======== ========
Preferred Stock:
===================================================================================================================================
Supplemental Net assets, net of Preferred Stock, end of
Data: period (in thousands) ........................ $526,089 $561,373 $623,270 $604,515 $577,540
======== ======== ======== ======== ========
Preferred Stock outstanding, end of period
(in thousands) ............................... $275,000 $275,000 $275,000 $275,000 $275,000
======== ======== ======== ======== ========
Portfolio turnover .............................. 64.34% 101.35% 102.77% 78.02% 69.87%
======== ======== ======== ======== ========
===================================================================================================================================
Leverage: Asset coverage per $1,000 ....................... $ 2,913 $ 3,041 $ 3,266 $ 3,198 $ 3,100
======== ======== ======== ======== ========
===================================================================================================================================
Dividends Series A--Investment income--net ................ $ 473 $ 839 $ 890 $ 872 $ 895
Per Share ======== ======== ======== ======== ========
on Preferred Series B--Investment income--net ................ $ 496 $ 815 $ 902 $ 871 $ 903
Stock ======== ======== ======== ======== ========
Outstanding: Series C--Investment income--net ................ $ 416 $ 820 $ 886 $ 860 $ 900
======== ======== ======== ======== ========
Series D--Investment income--net ................ $ 416 $ 802 $ 880 $ 868 $ 901
======== ======== ======== ======== ========
Series E--Investment income--net ................ $ 446 $ 793 $ 884 $ 868 $ 895
======== ======== ======== ======== ========
===================================================================================================================================
</TABLE>
* Annualized.
** Total investment returns based on market value, which can be
significantly greater or lesser than the net asset value, may result
in substantially different returns. Total investment returns exclude
the effects of sales charges.
*** Do not reflect the effect of dividends to Preferred Stock
shareholders.
+ Includes Common and Preferred Stock average net assets.
++ Aggregate total investment return.
See Notes to Financial Statements.
14 & 15
<PAGE>
MuniVest Fund, Inc., February 29, 2000
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
Fund's financial statements are prepared in accordance with generally accepted
accounting principles, which may require the use of management accruals and
estimates. 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 and options thereon,
which are traded on exchanges, are valued at their closing prices as of the
close of such exchanges. Options written or purchased are valued at the last
sale price in the case of exchange-traded options. In the case of options traded
in the over-the-counter market, valuation is the last asked price (options
written) or the last bid price (options purchased). Securities with remaining
maturities of sixty days or less are valued at amortized cost, which
approximates market value. Securities and assets for which market quotations are
not readily available are valued at fair value as determined in good faith by or
under the direction of the Board of Directors of the Fund, including valuations
furnished by a pricing service retained by the Fund, which may utilize a matrix
system for valuations. The procedures of the pricing service and its valuations
are reviewed by the officers of the Fund under the general supervision of the
Board of Directors.
(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.
o Financial futures contracts--The Fund may purchase or sell financial 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.
o Options--The Fund is authorized to 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 premium 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. Distributions in excess of realized capital gains are due
primarily to differing tax treatments for futures transactions and post-October
losses.
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 .50% of the Fund's average weekly net assets.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or directors of the Fund are officers and/or directors of
FAM, PSI, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended February 29, 2000 were $510,107,406 and $487,658,042, respectively.
Net realized losses for the six months ended February 29, 2000 and net
unrealized losses as of February 29, 2000 were as follows:
- --------------------------------------------------------------------------------
Realized Unrealized
Losses Losses
- --------------------------------------------------------------------------------
Long-term investments .............. $(27,310,763) $ (8,796,831)
------------ ------------
Total .............................. $(27,310,763) $ (8,796,831)
============ ============
- --------------------------------------------------------------------------------
As of February 29, 2000, net unrealized depreciation for Federal income tax
purposes aggregated $8,796,831, of which $15,241,640 related to appreciated
securities and $24,038,471 related to depreciated securities. The aggregate cost
of investments at February 29, 2000 for Federal income tax purposes was
$824,187,599.
4. Capital Stock Transactions:
Common Stock
At February 29, 2000, the Fund had one class of shares of Common Stock, par
value $.10 per share, of which 150,000,000 shares were authorized. Shares issued
and outstanding during the six months ended February 29, 2000 remained constant
and for the year ended August 31, 1999 increased by 223,148 from shares sold.
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. The yields in effect
at February 29, 2000 were as follows: Series A, 3.72%; Series B, 3.90%; Series
C, 3.61%; Series D, 3.63%; and Series E, 3.75%.
Shares issued and outstanding during the six months ended February 29, 2000 and
for the year ended August 31, 1999 remained constant.
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 29, 2000, Merrill Lynch,
Pierce, Fenner & Smith Incorporated, an affiliate of FAM, received $144,359 as
commissions.
5. Subsequent Event:
On March 7, 2000, the Fund's Board of Directors declared an ordinary income
dividend to Common Stock shareholders in the amount of $.044400 per share,
payable on March 30, 2000 to shareholders of record as of March 17, 2000.
16 & 17
<PAGE>
MuniVest Fund, Inc., February 29, 2000
MANAGED DIVIDEND POLICY
The Fund's dividend policy is to distribute all or a portion of its net
investment income to its shareholders on a monthly basis. In order to provide
shareholders with a more consistent yield to the current trading price of shares
of Common Stock of the Fund, the Fund may at times pay out less than the entire
amount of net investment income earned in any par ticular month and may at times
in any particular month pay out such accumulated but undistributed income in
addition to net investment income earned in that month. As a result, the
dividends paid by the Fund for any particular month may be more or less than the
amount of net investment income earned by the Fund during such month. The Fund's
current accumulated but undistributed net investment income, if any, is
disclosed in the Statement of Assets, Liabilities and Capital, which comprises
part of the financial information included in this report.
OFFICERS AND DIRECTORS
Terry K. Glenn, President and Director
Ronald W. Forbes, Director
Cynthia A. Montgomery, Director
Charles C. Reilly, Director
Kevin A. Ryan, Director
Richard R. West, Director
Arthur Zeikel, Director
Vincent R. Giordano, Senior Vice President
Kenneth A. Jacob, Vice President
Fred K. Stuebe, Vice President
Donald C. Burke, Vice President and Treasurer
William E. Zitelli, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Stock:
The Bank of New York
100 Church Street
New York, NY 10286
ASE Symbol
MVF
18 & 19
<PAGE>
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 of shares
of the Common Stock, and the risk that fluctuations in the short-term dividend
rates of the Preferred Stock may affect the yield to Common Stock shareholders.
Statements and other information herein are as dated and are subject to change.
MuniVest Fund, Inc.
Box 9011
Princeton, NJ
08543-9011 #10787--2/00
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