MUNIYIELD
FLORIDA FUND
FUND LOGO
Annual Report
October 31, 1994
This report, including the financial information herein, is
transmitted to the shareholders of MuniYield Florida Fund 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 Shares by issuing
Preferred Shares to provide the Common Shareholders with a
potentially higher rate of return. Leverage creates risks for Common
Shareholders, including the likelihood of greater volatility of net
asset value and market price of shares of the Common Shares, and the
risk that fluctuations in the short-term dividend rates of the
Preferred Shares may affect the yield to Common Shareholders.
MuniYield
Florida Fund
Box 9011
Princeton, NJ
08543-9011
MuniYield Florida Fund
TO OUR SHAREHOLDERS
<PAGE>
For the year ended October 31, 1994, the Common Shares of MuniYield
Florida Fund earned $1.048 per share income dividends, which
includes earned and unpaid dividends of $0.078. This represents a
net annualized yield of 7.58%, based on a month-end net asset value
of $13.82 per share. Over the same period, the total investment
return on the Fund,s Common Shares was -9.43%, based on a change in
per share net asset value from $16.74 to $13.82, and assuming
reinvestment of $1.053 per share income dividends and $0.326 per
share capital gains distributions.
For the six-month period ended October 31, 1994, the total
investment return on the Fund's Common Shares was -1.92%, based on a
change in per share net asset value from $14.59 to $13.82, and
assuming reinvestment of $0.461 per share income dividends.
The average yield of the Fund's Auction Market Preferred Shares for
the six months ended October 31, 1994 was 3.07%.
The Environment
As discussed in our last report to shareholders, the Federal Reserve
Board moved to counteract inflationary pressures by tightening
monetary policy. This trend continued during the May--October
period. Despite the series of preemptive strikes against inflation
by the central bank, concerns of increasing inflationary pressures
continued to prompt volatility in the US capital markets during the
period. In addition, the weakness of the US dollar in foreign
exchange markets prolonged stock and bond market declines.
Ongoing strength in the manufacturing sector and better-than-expected
economic results continue to fuel speculation that the Federal Reserve
Board will continue to raise short-term interest rates in the months
ahead. However, although consumer spending is increasing, it is doing
so at a lower rate than has been the case in recent economic
recoveries. In the weeks ahead, investors will continue to assess
economic data and inflationary trends in order to gauge whether
further increases in short-term interest rates are imminent. Continued
indications of moderate and sustainable levels of economic growth
would be positive for the US capital markets. At the same time,
greater US dollar stability in foreign exchange markets would help to
dampen expectations of significantly higher short-term interest rates.
<PAGE>
The Municipal Market
The long-term tax-exempt market continued to erode throughout the
three months ended October 31, 1994. As measured by the Bond Buyer
Revenue Bond Index, yields on A-rated municipal revenue bonds
maturing in 30 years rose by almost 50 basis points (0.50%) to 6.95%
during the October 1994 quarter. This represents the highest level
in tax-exempt bond yields in over two years. US Treasury bonds
suffered even greater declines during the quarter as Treasury bond
yields rose approximately 60 basis points to end the quarter at
8.00%.
The tax-exempt bond market reacted negatively throughout the October
quarter to indications that, despite a series of interest rate
increases by the Federal Reserve Board, the strength of the domestic
economy seen in recent quarters has not yet been significantly
reduced. While inflationary pressures have remained well contained,
additional Federal Reserve Board actions have been expected both to
ensure that domestic economic growth is eventually confined to
current levels and to assure nervous financial markets of its
anti-inflationary intentions.
Fortunately, while the demand for tax-exempt bonds has declined
somewhat in recent months, new bond issuance has remained greatly
reduced. During the quarter ended October 31, 1994, only $32 billion
in long-term tax-exempt securities were issued, a decline of over
50% versus the October 31, 1993 quarter. Similarly, for the six
months ended October 31, 1994, only $75 billion in municipal
securities were underwritten, a decline of over 50% versus the
comparable period a year earlier. This reduction in issuance in
recent quarters has allowed the municipal bond market to react to
both the decline in investor demand and the rise in fixed-income
yields in a more orderly fashion than in similar situations in the
past, particularly during 1987.
Long-term tax-exempt revenue bonds currently yield approximately 7%,
or almost 11.5% on an after-tax equivalent basis, to an investor in
the 39.6% Federal income tax bracket. As inflation has only
marginally increased in the past year, real tax-exempt interest
rates have risen dramatically. The Federal Reserve Board appears
committed to maintaining inflation at or below its current levels.
Indeed, most forecasts expect inflation to remain in its present
range of 3%--4% throughout 1995 and, potentially, for the remainder
of the 1990s. Real after-tax equivalent interest rates exceeding 7%
represent historically attractive municipal investments for
long-term investors.
<PAGE>
Federal Reserve Board actions taken thus far have yet to fully
impact US domestic growth and expected additional actions should
promote only a modest economic expansion within a benign
inflationary context beginning sometime early in 1995. Within such
an environment, it is unlikely that tax-exempt interest rates will
remain at their current attractive levels. Tax-exempt bond issuance
is unlikely to return to the historic high levels seen in 1992 and
1993, while investor demand should return as markets stabilize. As
we have discussed in earlier reports, the total number of tax-exempt
bonds outstanding is scheduled to decline dramatically in 1994 and
1995 as a result of both regular bond maturities and early
redemptions. Investors seeking tax-advantaged issues are likely to
find it very difficult to obtain currently available tax-exempt
yields as the current supply/demand balance is unlikely to be
maintained in the coming quarters.
Portfolio Strategy
During the six-month period ended October 31, 1994, with the
volatile municipal market, our strategy shifted to a more neutral
posture on interest rates. We achieved this by selling deep-discount
bonds, which are more interest rate sensitive. We placed greater
emphasis on current coupon bonds and premium bonds. We maintained
this strategy throughout the past six months, enhancing the Fund's
current yield while reducing its interest rate volatility. New
issuance in the Florida market was down to little more than $3
billion, representing a decline of nearly 68% from the same time
last year.
Short-term tax-exempt interest rates traded in a range between
2.75%--3.375% for the last six months, despite the series of short-
term interest rate increases engineered by the Federal Reserve Board.
The demand for tax-exempt cash equivalents has been very strong for
most of this year and is expected to remain so in the coming quarters.
The tax-exempt yield curve remained very positive throughout this
year, consequently the leverage of the Preferred Shares has
continued to have a very positive impact on the yield paid to the
Common Shareholder. However, should the spread between short-term
and long-term interest rates narrow, the benefits of the leverage
will decline and, as a result, reduce the yield of the Common
Shares. (For a complete explanation of the benefits and risks of
leveraging, see page 3 of this report to shareholders.)
We appreciate your ongoing interest in MuniYield Florida Fund, and
we look forward to serving your investment needs and objectives in
the months and years to come.
<PAGE>
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
December 8, 1994
THE BENEFITS AND RISKS OF LEVERAGING
MuniYield Florida Fund utilizes leveraging to seek to enhance the
yield and net asset value of its Common Shares. However, these
objectives cannot be achieved in all interest rate environments. To
leverage, the Fund issues Preferred Shares, which pay 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 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 Shares. However, in order to
benefit Common 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 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 Share
capitalization of $100 million and the issuance of Preferred Shares
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 Shares 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.
<PAGE>
In this case, the dividends paid to Preferred Shareholders are
significantly lower than the income earned on the fund's long-term
investments, and therefore the Common 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 Shares will be reduced. At the same time, the market value of
the fund's Common Shares (that is, its price as listed on the New
York Stock Exchange) may, as a result, decline. Furthermore, if long-
term interest rates rise, the Common Shares' net asset value will
reflect the full decline in the price of the portfolio's
investments, since the value of the fund's Preferred Shares do not
fluctuate. In addition to the decline in net asset value, the market
value of the fund's Common Shares may also decline.
PORTFOLIO ABBREVIATIONS
To simplify the listings of MuniYield Florida Fund's portfolio holdings
in the Schedule of Investments, we have abbreviated the names of many of
the securities according to the list at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DATES Daily Adjustable Tax-Exempt Securities
HFA Housing Finance Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
S/F Single-Family
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody,s Face Value
Ratings Ratings Amount Issue (Note 1a)
Florida--99.0%
<S> <S> <C> <S> <C>
AAA Aaa $ 2,000 Broward County, Florida, Tourist Development Tax Special, Revenue Refunding
Bonds (Convention Center), 5.625% due 10/01/2013 (b) $ 1,789
Citrus County, Florida, PCR, Refunding (Florida Power Corporation--Crystal
River):
A+ A1 13,700 Series A, 6.625% due 1/01/2027 13,439
A+ A1 3,000 Series B, 6.35% due 2/01/2022 2,869
<PAGE>
Dade County, Florida, Aviation Revenue Bonds:
AAA Aaa 1,000 AMT, Series B, 6.55% due 10/01/2013 (c) 989
AAA Aaa 5,000 AMT, Series B, 6.60% due 10/01/2022 (c) 4,906
A Aa 2,000 Refunding, Series Y, 5.50% due 10/01/2011 1,778
AAA Aaa 4,000 Dade County, Florida, Seaport Revenue Bonds, UT, 6.25% due 10/01/2021 (b) 3,844
A1 VMIG1 100 Dade County, Florida, Solid Waste, IDR (Montenay-Dade Ltd. Project), VRDN,
Series A, 3.50% due 12/01/2013 (a) 100
NR* Aaa 2,500 Escambia County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program),
AMT, Series A, 6.90% due 4/01/2020 (f) 2,450
BBB Baa1 2,000 Escambia County, Florida, PCR (Champion International Corporation Project),
AMT, 6.90% due 8/01/2022 1,905
AAA Aaa 13,000 Escambia County, Florida, PCR, Refunding (Gulf Power Company Project),
5.80% due 6/01/2023 (c) 11,488
Florida State Board of Education, Capital Outlay Revenue Bonds:
AA Aa 11,800 (Public Education), Series A, 6.75% due 6/01/2021 11,882
AA Aa 6,000 (Public Education), Series B, 6.70% due 6/01/2022 6,006
AA Aa 2,500 UT, Series E, 5.80% due 6/01/2024 2,212
Florida State Division, Board of Finance, Department of General Services
Revenue Bonds (Department of Natural Resource Preservation), Series 2000-A
(b):
AAA Aaa 2,000 6.75% due 7/01/2007 2,073
AAA Aaa 4,500 6.75% due 7/01/2013 4,600
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
S&P Moody,s Face Value
Ratings Ratings Amount Issue (Note 1a)
Florida (continued)
<S> <S> <C> <S> <C>
Gainesville, Florida, Utility Systems Revenue Bonds:
AA Aa $ 5,000 Series A, 6.50% due 10/01/2022 $ 4,886
AA Aa 1,600 Series B, 6.50% due 10/01/2010 1,616
AAA Aaa 4,000 Greater Orlando Aviation Authority, Florida, Revenue Bonds (Orlando Airport
Facilities), AMT, Series A, 6.50% due 10/01/2012 (d) 3,962
A A 6,000 Hillsborough County, Florida, Capital Improvement Revenue Bonds (County Center
Project), Second Series, 6.75% due 7/01/2022 5,889
AAA Aaa 1,500 Hillsborough County, Florida, Hospital Authority, Revenue Refunding Bonds (Tampa
General Hospital Project), 6.375% due 10/01/2013 (i) 1,473
<PAGE>
AA- Aa2 300 Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric Company
Project), VRDN, 3.60% due 9/01/2025 (a) 300
AAA Aaa 1,000 Hillsborough County, Florida, IDA, Revenue Bonds (Allegheny Health Systems--J.
Knox Village), 6.375% due 12/01/2012 (c) 986
AAA Aaa 1,500 Jacksonville Beach, Florida, Utility Revenue Bonds, 6.50% due 10/01/2001 (c)(g) 1,602
AAA Aaa 1,850 Jacksonville, Florida, Capital Improvement Revenue Bonds, COP (Gator Bowl
Project), 6% due 10/01/2025 (b) 1,711
AA Aaa 3,000 Jacksonville, Florida, Electric Authority Revenue Bonds (Bulk Power Supply--
Scherer 4-1-A), 6.75% due 10/01/2000 (g) 3,226
Jacksonville, Florida, Excise Tax Revenue Bonds, Series A (b):
AAA Aaa 1,200 6.50% due 10/01/2011 1,193
AAA Aaa 3,250 6.50% due 10/01/2016 3,209
AAA NR* 4,500 Jacksonville, Florida, Hospital Revenue Bonds (University Medical Center,
Inc. Project), 6.60% due 2/01/2013 (h) 4,495
BBB- NR* 1,000 Largo, Florida, Sun Coast Health System, Hospital Revenue Refunding Bonds,
6.20% due 3/01/2013 889
AAA Aaa 4,000 Lee County, Florida, Solid Waste Systems Revenue Bonds, AMT, Series A, 6.50%
due 10/01/2013 (c) 4,002
AAA Aaa 3,750 Orange County, Florida, Solid Waste Facilities Revenue Bonds, 6.375% due
10/01/2017 (d) 3,681
AAA Aaa 5,000 Orange County, Florida, Tourist Development Tax Revenue Bonds, Series B,
6.50% due 10/01/2019 (b) 4,957
AA- Aaa 11,320 Orlando, Florida, Utilities Commission Water and Electric Revenue Bonds,
Series A, 6.50% due 10/01/2001 (g) 12,052
NR* Aaa 3,000 Palm Beach County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT, Series A,
6.80% due 10/01/2027 (e)(f) 2,930
NR* VMIG1 1,000 Palm Beach County, Florida, Water and Sewer Revenue Bonds, VRDN, 3.70% due
10/01/2011 (a) 1,000
A1 VMIG1 1,400 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding Bonds
(Pooled Hospital Loan Project), DATES, 3.70% due 12/01/2015 (a) 1,400
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody,s Face Value
Ratings Ratings Amount Issue (Note 1a)
Florida (concluded)
<S> <S> <C> <S> <C>
NR* Aaa $ 2,500 Pinellas County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program),
AMT, Series A, 6.55% due 8/01/2027 (e)(f) $ 2,341
AAA Aaa 5,000 Reedy Creek, Florida, Improvement District, Florida Utility Revenue Bonds,
Series 1991-1, 6.50% due 10/01/2001 (c)(g) 5,289
A1 VMIG1 1,700 Saint Lucie County, Florida, PCR, Refunding (Florida Power and Light Company
Project), VRDN, 3.65% due 1/01/2026 (a) 1,700
Saint Petersburg, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Allegheny Health System) (c):
AAA Aaa 1,550 (Saint Anthony,s), 6.75% due 12/01/2021 1,561
AAA Aaa 2,000 Series A, 7% due 12/01/2015 2,066
A+ Al 6,250 South Broward, Florida, Hospital District, Revenue Refunding Bonds, 5.50%
due 5/01/2028 5,024
AAA Aaa 3,000 Tampa, Florida, Revenue Bonds (Allegheny Health Systems--Saint Joseph),
6.75% due 12/01/2017 (c) 3,032
AAA Aaa 3,000 Vero Beach, Florida, Electric Revenue Bonds, Series A, 6.60% due 12/01/1999 (d)(g) 3,212
Puerto Rico--1.0%
A1 VMIG1 1,600 Puerto Rico Commonwealth, Government Development Bank Refunding Bonds, VRDN,
3.10% due 12/01/2015 (a) 1,600
Total Investments (Cost--$165,922)--100.0% 163,614
Liabilities in Excess of Other Assets--0.0% (23)
--------
Net Assets--100.0% $163,591
========
<FN>
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at October 31, 1994.
(b)AMBAC Insured.
(c)MBIA Insured.
(d)FGIC Insured.
(e)FNMA Collateralized.
(f)GNMA Collateralized.
(g)Prerefunded.
(h)Connie Lee Insured.
(i)FSA Insured.
*Not Rated.
<PAGE>
Ratings of issues shown have not been audited by Deloitte & Touche
LLP.
See Notes to Financial Statements.
FINANCIAL INFORMATION
</TABLE>
<TABLE>
Statement of Assets, Liabilities and Capital as of October 31, 1994
<CAPTION>
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$165,921,676) (Note 1a) $163,614,200
Receivables:
Securities sold $ 4,129,098
Interest 2,547,031 6,676,129
------------
Deferred organization expenses (Note 1e) 18,594
Prepaid expenses and other assets 73,867
------------
Total assets 170,382,790
------------
Liabilities: Payables:
Securities purchased 4,878,088
Dividends to shareholders (Note 1g) 288,633
Investment adviser (Note 2) 70,626 5,237,347
------------
Accrued expenses and other liabilities 1,554,307
------------
Total liabilities 6,791,654
------------
Net Assets: Net assets $163,591,136
============
<PAGE>
Capital: Capital Shares (unlimited number of shares of beneficial interest
authorized) (Note 4):
Preferred Shares, par value $.10 per share (1,100 shares of AMPS*
issued and outstanding at $50,000 per share liquidation preference) $ 55,000,000
Common Shares, par value $.10 per share (7,858,776 shares issued
and outstanding) $ 785,878
Paid-in capital in excess of par 109,597,864
Undistributed investment income--net 1,058,795
Accumulated realized capital losses--net (Note 5) (543,925)
Unrealized depreciation on investments--net (2,307,476)
------------
Total--Equivalent to $13.82 net asset value per Common Share
(market price--$11.375) 108,591,136
------------
Total capital $163,591,136
============
<FN>
*Auction Market Preferred Shares.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Year Ended
October 31, 1994
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 10,373,377
Income
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 875,429
Commission fees (Note 4) 190,394
Professional fees 78,828
Transfer agent fees 35,680
Printing and shareholder reports 33,914
Accounting services (Note 2) 25,602
Trustees, fees and expenses 23,130
Listing fees 18,645
Custodian fees 12,843
Amortization of organization expenses (Note 1e) 8,003
Pricing fees 6,782
Other 23,653
------------
Total expenses 1,332,903
------------
Investment income--net 9,040,474
------------
<PAGE>
Realized & Realized loss on investments--net (543,924)
Unrealized Loss Change in unrealized appreciation/depreciation on investments--net (18,814,168)
on Investments ------------
- --Net (Notes Net Decrease in Net Assets Resulting from Operations $(10,317,618)
1d & 3): ============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Year Ended
October 31,
Increase (Decrease) in Net Assets: 1994 1993
<S> <S> <C> <C>
Operations: Investment income--net $ 9,040,474 $ 9,088,907
Realized gain (loss) on investments--net (543,924) 4,018,658
Change in unrealized appreciation/depreciation on investments--net (18,814,168) 16,471,373
------------ ------------
Net increase (decrease) in net assets resulting from operations (10,317,618) 29,578,938
------------ ------------
Dividends & Investment income--net:
Distributions Common Shares (7,419,538) (7,474,609)
to Shareholders Preferred Shares (1,206,557) (1,580,809)
(Note 1g): Realized gain on investments--net:
Common Shares (3,373,293) (274,178)
Preferred Shares (645,359) (67,859)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (12,644,747) (9,397,455)
------------ ------------
Capital Share Value of shares issued to Common Shareholders in reinvestment
Transactions of dividends and distributions 1,278,280 1,552,631
(Note 4): ------------ ------------
Net increase in net assets derived from capital share transactions 1,278,280 1,552,631
------------ ------------
Net Assets: Total increase (decrease) in net assets (21,684,085) 21,734,114
Beginning of year 185,275,221 163,541,107
------------ ------------
End of year* $163,591,136 $185,275,221
============ ============
<FN>
*Undistributed investment income--net $ 1,058,795 $ 644,416
============ ============
<PAGE>
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
For the
Period
The following per share data and ratios have been derived For the Feb. 28,
from information provided in the financial statements. Year Ended 1992++ to
October 31, October 31,
Increase (Decrease) in Net Asset Value: 1994 1993 1992
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 16.74 $ 14.13 $ 14.18
Operating ------------ ------------ ------------
Performance: Investment income--net 1.15 1.17 .77
Realized and unrealized gain (loss) on investments--net (2.46) 2.66 .05
------------ ------------ ------------
Total from investment operations (1.31) 3.83 .82
------------ ------------ ------------
Less dividends and distributions to Common Shareholders:
Investment income--net (.95) (.97) (.55)
Realized gain on investments--net (.43) (.04) --
------------ ------------ ------------
Total dividends and distributions (1.38) (1.01) (.55)
------------ ------------ ------------
Capital charge resulting from issuance of Common Shares -- -- (.03)
------------ ------------ ------------
Effect of Preferred Share activity++++:
Dividends and distributions to Preferred Shareholders:
Investment income--net (.15) (.20) (.14)
Realized gain on investments--net (.08) (.01) --
Capital charge resulting from issuance of Preferred
Shares -- -- (.15)
------------ ------------ ------------
Total effect of Preferred Share activity (.23) (.21) (.29)
------------ ------------ ------------
Net asset value, end of period $ 13.82 $ 16.74 $ 14.13
============ ============ ============
Market price per share, end of period $ 11.375 $ 16.625 $ 14.75
============ ============ ============
Total Investment Based on market price per share (24.94%) 20.13% 2.05%+++
Return:** ============ ============ ============
Based on net asset value per share (9.43%) 26.27% 3.41%+++
============ ============ ============
<PAGE>
Ratios to Expenses, net of reimbursement .76% .78% .58%*
Average ============ ============ ============
Net Assets:*** Expenses .76% .78% .76%*
============ ============ ============
Investment income--net 5.15% 5.16% 5.59%*
============ ============ ============
Supplemental Net assets, net of Preferred Shares, end of period
Data: (in thousands) $ 108,591 $ 130,275 $ 108,541
============ ============ ============
Preferred Shares outstanding, end of period (in thousands) $ 55,000 $ 55,000 $ 55,000
============ ============ ============
Portfolio turnover 18.31% 32.84% 16.18%
============ ============ ============
Dividends Per Investment income--net $ 1,097 $ 1,437 $ 934
Share On
Preferred Shares
Outstanding:
<FN>
*Annualized.
**Total investment returns based on market value, which can be significantly greater or
lesser than the net asset value, result in substantially different returns. Total investment
returns exclude the effects of sales loads.
***Do not reflect the effect of dividends to Preferred Shareholders.
++Commencement of Operations.
++++The Fund,s Preferred Shares were issued on April 10, 1992.
+++Aggregate total investment returns.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield Florida Fund (the "Fund") is registered under the
Investment Company Act of 1940 as a nondiversified, closed-end
management investment company. The Fund determines and makes
available for publication the net asset value of its Common Shares
on a weekly basis. The Fund's Common Shares are listed on the New
York Stock Exchange under the symbol MYF. The following is a summary
of significant accounting policies followed by the Fund.
<PAGE>
(a) Valuation of investments--Municipal bonds are traded primarily
in the over-the-counter markets and are valued at the most recent
bid price or yield equivalent as obtained by the Fund's pricing
service from dealers that make markets in such securities. Financial
futures contracts, which are traded on exchanges, are valued at
their closing prices as of the close of such exchanges. Options,
which are traded on exchanges, are valued at their last sale price
as of the close of such exchanges or, lacking any sales, at the last
available bid price. Securities with remaining maturities of sixty
days or less are valued at amortized cost, which approximates market
value. Securities for which market quotations are not readily
available are valued at their fair value as determined in good faith
by or under the direction of the Board of Trustees of the Fund.
(b) Financial futures contracts--The Fund may purchase or sell
interest rate futures contracts and options on such futures
contracts for the purpose of hedging the market risk on existing
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.
(c) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(d) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income is recognized on the accrual
basis. Discounts and market premiums are amortized into interest
income. Realized gains and losses on security transactions are
determined on the identified cost basis.
(e) Deferred organization expenses--Deferred organization expenses
are amortized on a straight-line basis over a five-year period.
Direct expenses relating to the public offering of the Common and
Preferred Shares were charged to capital at the time of issuance.
<PAGE>
(f) Non-income producing investments--Written and purchased options
are non-income producing investments.
(g) 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"). Effective January 1, 1994, the
investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of ML & Co. The limited partners are ML & Co. and Fund
Asset Management, Inc. ("FAMI"), which is also an indirect
wholly-owned subsidiary of ML & Co.
FINANCIAL STATEMENTS (concluded)
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.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, FAMI, PSI, Merrill Lynch, Pierce, Fenner & Smith
Inc. ("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended October 31, 1994 were $30,684,329 and
$35,797,066, respectively.
Net realized and unrealized gains (losses) as of October 31, 1994
were as follows:
<PAGE>
Realized Unrealized
Gains (Losses) Losses
Long-term investments $ (719,533) $(2,307,476)
Financial futures contracts 175,609 --
---------- -----------
Total $ (543,924) $(2,307,476)
========== ===========
As of October 31, 1994, net unrealized depreciation for Federal
income tax purposes aggregated $2,307,476, of which $2,167,352
related to appreciated securities and $4,474,828 related to
depreciated securities. The aggregate cost of investments at October
31, 1994 for Federal income tax purposes was $165,921,676.
4. Capital Share Transactions:
The Fund is authorized to issue an unlimited number of shares of
beneficial interest, including Preferred Shares, par value $.10 per
share, all of which were initially classified as Common Shares. The
Board of Trustees is authorized, however, to reclassify any unissued
shares of beneficial interest without approval of the holders of
Common Shares.
Common Shares
For the year ended October 31, 1994, shares outstanding increased by
78,808 to 7,858,776 as a result of dividend reinvestment. At October
31, 1994, total paid-in capital amounted to $110,383,742.
Preferred Shares
Auction Market Preferred Shares ("AMPS") are Preferred Shares of the
Fund that entitle their holders to receive cash dividends at an
annual rate that may vary for the successive dividend periods. The
yield in effect at October 31, 1994 was 3.07%.
For the year ended October 31, 1994, there were 1,100 AMPS shares
authorized, issued and outstanding with a liquidation preference of
$50,000 per share, plus accumulated and unpaid dividends of
$394,779. Effective December 1, 1994, as a result of a two-for-one
stock split, there will be 2,200 AMPS shares with a liquidation
preference of $25,000 per share.
The Fund pays commissions to certain broker-dealers at the end of
each auction at an annual rate ranging from 0.25% to 0.375%,
calculated on the proceeds of each auction. For the year ended
October 31, 1994, MLPF&S, an affiliate of FAMI, earned $51,996 as
commissions.
<PAGE>
5. Capital Loss Carryforward:
At October 31, 1994, the Fund had a capital loss carryforward of
approximately $544,000, all of which expires in 2002. This amount
will be available to offset like amounts of any future taxable
gains.
6. Subsequent Event:
On November 8, 1994, the Fund,s Board of Trustees declared an
ordinary income dividend to holders of Common Shares in the amount
of $0.078350 per share, payable on November 29, 1994 to shareholders
of record as of November 18, 1994.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders of
MuniYield Florida Fund:
We have audited the accompanying statement of assets, liabilities
and capital, including the schedule of investments, of MuniYield
Florida Fund as of October 31, 1994, the related statements of
operations for the year then ended, and changes in net assets for
each of the years in the two-year period then ended and the
financial highlights for each of the years in the two-year period
then ended and the period February 28, 1992 (commencement of
operations) to October 31, 1992. These financial statements and the
financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these
financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at October
31, 1994 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
MuniYield Florida Fund as of October 31, 1994, the results of its
operations, the changes in its net assets, and the financial
highlights for the respective stated periods in conformity with
generally accepted accounting principles.
<PAGE>
Deloitte & Touche LLP
Princeton, New Jersey
December 6, 1994
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (unaudited)
All of the net investment income distributions paid monthly by
MuniYield Florida Fund during its taxable year ended October 31,
1994 qualify as tax-exempt interest dividends for Federal income tax
purposes. Additionally, the following table summarizes the per share
capital gains distributions paid by the Fund during the year.
<TABLE>
Payable Short-Term Long-Term
Date Capital Gains Capital Gains
<S> <C> <C> <C>
Common Shareholders 12/30/93 $ 0.107599 $ 0.325988
Preferred Shareholders 12/01/93 $45.43 $135.30
1/03/94 $49.67 $149.12
1/13/94 $14.87 $ 45.37
1/20/94 $ 6.73 $ 20.69
1/27/94 $ 7.68 $ 23.67
2/03/94 $ 7.83 $ 24.31
2/10/94 $ 8.26 $ 25.90
3/01/94 $ 5.11 $ 16.74
Please retain this information for your records.
</TABLE>
PER SHARE INFORMATION (unaudited)
<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>
November 1, 1992 to January 31, 1993 $.30 $ .09 $ .82 $.24 $.05 $.04 $.01
February 1, 1993 to April 30, 1993 .29 .04 .67 .24 .06 -- --
May 1, 1993 to July 31, 1993 .29 .26 .11 .24 .05 -- --
August 1, 1993 to October 31, 1993 .29 .14 .53 .25 .04 -- --
November 1, 1993 to January 31, 1994 .30 .04 .17 .24 -- .43 .07
February 1, 1994 to April 30, 1994 .28 .03 (1.93) .24 .05 -- .01
May 1, 1994 to July 31, 1994 .28 (.05) .26 .24 .05 -- --
August 1, 1994 to October 31, 1994 .29 (.08) (.90) .23 .05 -- --
<PAGE>
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
November 1, 1992 to January 31, 1993 $14.99 $14.14 $15.875 $14.75 415
February 1, 1993 to April 30, 1993 16.18 14.98 16.125 15.125 541
May 1, 1993 to July 31, 1993 16.30 15.59 16.625 15.125 722
August 1, 1993 to October 31, 1993 17.08 16.08 16.875 15.875 734
November 1, 1993 to January 31, 1994 16.71 16.09 17.00 15.25 547
February 1, 1994 to April 30, 1994 16.49 14.15 16.25 13.75 998
May 1, 1994 to July 31, 1994 15.21 14.26 14.375 13.50 572
August 1, 1994 to October 31, 1994 14.81 13.82 13.875 11.375 1,077
<FN>
*Calculations are based upon Common Shares outstanding at the end of
each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
OFFICERS AND TRUSTEES
Arthur Zeikel, President and Trustee
Kenneth S. Axelson, Trustee
Herbert I. London, Trustee
Robert R. Martin, Trustee
Joseph L. May, Trustee
Andre F. Perold, Trustee
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
Transfer Agents
Common Shares:
The Bank of New York
101 Barclay Street
New York, New York 10286
Preferred Shares:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
NYSE Symbol
MYF
<PAGE>
