MUNIYIELD
FLORIDA FUND
FUND LOGO
Semi-Annual Report
April 30, 2000
MuniYield Florida Fund seeks to provide shareholders with as high a
level of current income exempt from Federal income taxes as is
consistent with its investment policies and prudent investment
management by investing primarily in a portfolio of long-term
municipal obligations the interest on which, in the opinion of bond
counsel to the issuer, is exempt from Federal income taxes and which
enables shares of the Fund to be exempt from Florida intangible
personal property taxes.
This report, including the financial information herein, is
transmitted to shareholders of MuniYield Florida Fund for their
information. It is not a prospectus. 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.
Statements and other information herein are as dated and are subject
to change.
MuniYield
Florida Fund
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MUNIYIELD FLORIDA FUND
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. Of course, increases in
short-term interest rates would reduce (and even eliminate) the
dividends on the Common Shares.
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 pickup on the
Common Shares will be reduced or eliminated completely. 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 does not fluctuate. In addition to the decline in
net asset value, the market value of the fund's Common Shares 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, income 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.
MuniYield Florida Fund, April 30, 2000
DEAR SHAREHOLDER
For the six months ended April 30, 2000, the Common Shares of
MuniYield Florida Fund earned $0.378 per share income dividends,
which included earned and unpaid dividends of $0.064. This
represents a net annualized yield of 5.72%, based on a month-end per
share net asset value of $13.25. Over the same period, the total
investment return on the Fund's Common Shares was +3.19%, based on a
change in per share net asset value from $13.27 to $13.25, and
assuming reinvestment of $0.379 per share income dividends.
For the six-month period ended April 30, 2000, the Fund's Auction
Market Preferred Shares had an average yield of 3.64% for Series A
and 3.71% for Series B.
The Municipal Market Environment
Since October 1999 through mid-January 2000, fixed-income bond
yields rose steadily higher. US economic growth, in part intensified
by Year 2000 preparations, grew at a 7.3% rate in the fourth quarter
of 1999 and at a 4.2% annual rate for all of 1999. Initial estimates
for the first quarter of 2000 were reported at 5.4%. However,
despite these significant growth rates, no price measure indicator
has shown any considerable signs of future price pressures at the
consumer level, 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 November 1999
and again in February and March 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. By mid-January 2000, US Treasury bond yields
rose 60 basis points (0.60%) to 6.75%. Similarly, as measured by the
Bond Buyer Revenue Bond Index, long-term tax-exempt bond yields rose
approximately 20 basis points to 6.35%.
Since mid-January, fixed-income markets have largely ignored strong
economic fundamentals and concentrated on very positive technical
supply factors. Declining bond issuance, both current, and more
importantly, expected future issuance, helped push bond yields lower
from mid-January to mid-April 2000. In late January and early
February 2000, the US Treasury announced its intention to reduce the
number of issues to be auctioned in the quarterly Treasury note and
bond auctions. Furthermore, budgetary surpluses would allow the US
Treasury to repurchase outstanding, higher-couponed Treasury issues,
primarily in the 15-year and longer-term maturity sectors. Both
these actions would result in a significant reduction in the
outstanding supply of long-term US Treasury debt. Domestic and
international investors quickly began to accumulate what was
expected to become a scarce commodity and bond prices quickly rose.
By mid-April 2000, US Treasury bond yields had declined over 100
basis points to 5.67%. However, bond yields rose somewhat during the
last two weeks of the period as economic statistics were released,
indicating that the economic strength seen in late 1999 was
continuing into early 2000. The decline in long-term US Treasury
bond yields resulted in an inverted taxable yield curve as short-
term and intermediate-term interest rates have not fallen
proportionately since the Federal Reserve Board is expected to
continue to raise short-term interest rates. The current inversion
has had much more to do with debt reduction and Treasury buybacks
than with investor expectations of slower economic growth. Over the
last six months, long-term US Treasury bond yields have fallen
almost 20 basis points to close the six-month period ended April 30,
2000 at 5.96%.
Tax-exempt bond yields have also declined in recent months. The
decline has largely been in response to the rally in US Treasury
securities, as well as a continued positive technical supply
environment. States such as California and Maryland have announced
that their large current and anticipated future budget surpluses
will permit the cancellation or postponement of expected bond
issuance. Additionally, some issuers have also initiated tenders
to repurchase existing debt, reducing the supply of tax-exempt
bonds in the secondary market as well. Since their recent peak
in January 2000, long-term municipal bond yields declined over
25 basis points to finish the six-month period ended April 30,
2000 at 6.07%. During the last six months, municipal bond yields
declined just 10 basis points overall.
The relative underperfomance of the municipal bond market in recent
months has been especially disappointing given the strong technical
position the tax-exempt bond market enjoyed. The issuance of long-
term tax-exempt securities has dramatically declined. Over the last
year, $203 billion in new long-term municipal securities was issued,
a decline of almost 25% compared to the same period a year earlier.
For the six months ended April 30, 2000, approximately $90 billion
in new tax-exempt bonds was underwritten, a decline of more than 25%
compared to the same period in 1999. Although investors received over
$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 individual securities have risen
faster than those of larger, more diverse mutual funds. Over the
last four months, tax-exempt mutual funds have had net redemptions
of more than $8 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 favorable supply position,
tax-exempt municipal bond yields have underperformed their taxable
counterparts.
Any significantly lower municipal bond yields are still likely to
require weaker US employment growth and consumer spending. The
actions taken in recent months by the Federal Reserve Board should
eventually slow US economic growth. The recent declines in US home
sales are perhaps the first sign that consumer spending is being
slowed by higher interest rates. Until further 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 eventual improvement in municipal
bond prices.
Portfolio Strategy
During the six-month period ended
April 30, 2000, we continued our investment strategy of seeking to
enhance the level of tax-exempt income and to decrease the price
volatility of the Fund. We focused on purchasing premium couponed
issues in the 11-year - 20-year maturity range and the sale of long
duration bonds. Because of the steepness in the municipal bond
market yield curve, these issues represented 90% - 95% of the yield
available on the long end of the curve. This maturity sector also
provided for greater protection from any volatility the market has
experienced recently. We were prevented from fully reducing the
Fund's duration because of a scarcity of new issues coming to market
that could be defensively structured.
The Fund's cost of borrowing increased somewhat in recent months as
short-term tax-exempt interest rates rose along with the adjustment
evident in the taxable market. Long-term tax-exempt interest rates
have actually declined modestly, causing the municipal yield curve
to flatten. While this flattening has reduced the incremental yield
enhancement resulting from leveraging the Fund's Common Shares, it
is important to note that in contrast to the inverted shape of the
US Treasury yield curve, the municipal yield curve remained
positively sloped. (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. Because tax-exempt bond
yields are expected to remain in a narrow range, we do not
anticipate making any substantive changes to the Fund, and we expect
to continue to maintain our present investment strategy. If either
the US economy or equity markets display any major weakness, we may
adopt a more positive stance in order to enhance portfolio
appreciation.
In Conclusion
We appreciate your ongoing interest in MuniYield Florida Fund, and
we look forward to serving your investment needs in the months and
years to come.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Trustee
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(William R. Bock)
William R. Bock
Vice President and
Portfolio Manager
June 5, 2000
MuniYield Florida Fund, April 30, 2000
PROXY RESULTS
During the six-month period ended April 30, 2000, MuniYield Florida
Fund's Common Shareholders voted on the following proposals.
Proposals 1 and 2 were approved at a shareholders' meeting on April
27, 2000. Proposal 3 was approved on December 15, 1999. The
description of each proposal and number of shares voted are as
follows:
<TABLE>
<CAPTION>
Shares Voted Shares Withheld
For From Voting
<S> <S> <C> <C>
1. To elect the Fund's Board of Trustees: Terry K. Glenn 8,638,788 220,311
James H. Bodurtha 8,640,346 218,753
Herbert I. London 8,637,032 222,067
Roberta Cooper Ramo 8,640,226 218,873
Arthur Zeikel 8,628,950 230,149
<CAPTION>
Shares Voted Shares Voted Shares Voted
For Against Abstain
<S> <C> <C> <C>
2. To ratify the selection of Deloitte & Touche LLP as the Fund's
independent auditors for the current fiscal year. 8,696,437 53,204 109,458
3. To approve the Agreement and Plan of Reorganization between
the Fund and MuniVest Florida Fund. 4,519,887 142,641 161,386
</TABLE>
During the six-month period ended April 30, 2000, MuniYield Florida
Fund's Preferred Shareholders voted on the following proposals.
Proposals 1 and 2 were approved at a shareholders' meeting on April
27, 2000. Proposal 3 was approved on December 15, 1999. The
description of each proposal and number of shares voted are as
follows:
<TABLE>
<CAPTION>
Shares Voted Shares Withheld
For From Voting
<S> <S> <C> <C>
1. To elect the Fund's Board of Trustees: Terry K. Glenn,
James H. Bodurtha, Herbert I. London, Joseph L. May,
Andre F. Perold, Roberta Cooper Ramo and Arthur Zeikel
as follows:
Series A 1,407 1
Series B 1,183 25
<CAPTION>
Shares Voted Shares Voted Shares Voted
For Against Abstain
<S> <S> <C> <C> <C>
2. To ratify the selection of Deloitte & Touche LLP as the Fund's
independent auditors for the current fiscal year as follows:
Series A 1,361 2 45
Series B 1,183 25 0
3.To approve the Agreement and Plan of Reorganization between
the Fund and MuniVest Florida Fund. 2,146 54 0
</TABLE>
MuniYield Florida Fund, April 30, 2000
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
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
S/F Single-Family
VRDN Variable Rate Demand Notes
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
<S> <S> <S> <C> <S> <C>
Florida--98.1% AAA Aaa $ 1,000 Bay Medical Center, Florida, Hospital Revenue Bonds (Bay Medical
Center Project), 5% due 10/01/2027 (a) $ 862
AAA Aaa 7,650 Brevard County, Florida, IDR (NUI Corporation Project), AMT,
6.40% due 10/01/2024 (a) 7,881
AAA NR* 955 Broward County, Florida, HFA, Revenue Refunding Bonds (Home
Mortgage), AMT, Series A, 7.35% due 3/01/2023 (d)(j) 977
A1+ NR* 700 Capital Projects Finance Authority, Florida, Revenue Bonds
(Florida Hospital Association--Capital Projects Loan), VRDN,
Series A, 5.05% due 6/01/2028 (e)(g) 700
Citrus County, Florida, PCR, Refunding (Florida Power Company
--Crystal River):
A+ A1 13,700 Series A, 6.625% due 1/01/2027 14,093
AAA Aaa 8,200 Series B, 6.35% due 2/01/2022 (b) 8,376
Dade County, Florida, Aviation Revenue Bonds, AMT, Series B (b):
AAA Aaa 1,000 6.55% due 10/01/2013 1,047
AAA Aaa 5,000 6.60% due 10/01/2022 5,197
A1+ VMIG1++ 500 Dade County, Florida, IDA, Exempt Facilities Revenue Refunding
Bonds (Florida Power and Light Co.), VRDN, 6.10% due 6/01/2021 (g) 500
AA- Aa3 2,250 Dade County, Florida, IDA, Solid Waste Disposal Revenue Bonds
(Florida Power and Light Company Project), AMT, 7.15% due
2/01/2023 2,323
A1+ VMIG1++ 200 Dade County, Florida, Water and Sewer System Revenue Bonds,
VRDN, 5% due 10/05/2022 (c)(g) 200
NR* Aaa 2,700 Duval County, Florida, HFA, S/F Mortgage Revenue Refunding
Bonds, AMT, 6.20% due 4/01/2020 (b)(d)(j) 2,729
NR* Aaa 1,465 Escambia County, Florida, HFA, S/F Mortgage Revenue Bonds
(Multi-County Program), AMT, Series A, 6.90% due 4/01/2020 (d) 1,510
Escambia County, Florida, HFA, S/F Mortgage Revenue Refunding
Bonds, AMT (d):
AAA Aaa 5,805 7% due 4/01/2028 (j) 6,110
NR* Aaa 3,925 Series A, 7.40% due 10/01/2023 (i) 4,012
BBB Baa1 7,045 Escambia County, Florida, PCR (Champion International
Corporation Project), AMT, 6.90% due 8/01/2022 7,158
NR* Aaa 1,775 Florida HFA, Home Ownership Revenue Refunding Bonds, AMT,
Series G1, 7.90% due 3/01/2022 (d) 1,820
AAA Aaa 1,650 Florida Housing Finance Corporation, Homeowner Mortgage Revenue
Refunding Bonds, AMT, Series 4, 6.25% due 7/01/2022 (e) 1,674
AAA Aaa 1,155 Florida Ports Financing Commission Revenue Bonds, State
Transportation Trust Fund, AMT, 5.375% due 6/01/2027 (b) 1,054
Florida State Board of Education, Capital Outlay, GO:
AAA Aaa 1,000 (Public Education), Series A, 6.10% due 6/01/2004 (f) 1,050
AA+ Aa2 1,220 Series A, 6% due 1/01/2014 1,272
AAA Aaa 5,000 Series C, 5.85% due 6/01/2003 (f) 5,175
AA+ Aa2 3,565 Florida State Board of Education, Capital Outlay, GO, Refunding
(Public Education), Series C, 5.25% due 6/01/2007 3,601
AAA Aaa 1,000 Florida State Board of Education, Lottery Revenue Bonds,
Series A, 6% due 7/01/2014 (c) 1,046
AAA Aaa 9,000 Florida State Department of Environmental Protection,
Preservation Revenue Bonds, Series A, 5.75% due 7/01/2013 (c) 9,269
AAA Aaa 1,000 Florida State, GO (Department of Transportation-Right
of Way), 5.875% due 7/01/2005 (b)(f) 1,047
AA+ Aa2 5,600 Florida State, GO, Refunding (Department of Transportation-
Right of Way), Series A, 5% due 7/01/2028 4,845
AAA Aaa 4,700 Florida State Mid-Bay Bridge Authority Revenue Bonds,
Series A, 5.95% due 10/01/2022 (a) 4,735
AAA Aaa 5,000 Fort Myers, Florida, Improvement Revenue Refunding Bonds,
Series A, 5% due 12/01/2022 (a) 4,402
AAA Aaa 4,000 Greater Orlando Aviation Authority, Florida, Orlando Airport
Facilities Revenue Bonds, AMT, Series A, 6.50% due
10/01/2012 (c) 4,189
A A 1,500 Hillsborough County, Florida, Capital Improvement Revenue
Refunding Bonds (County Center Project), Second Series,
6.75% due 7/01/2002 (f) 1,585
AAA Aaa 8,000 Hillsborough County, Florida, Court Facilities Revenue
Bonds, 5.40% due 5/01/2030 (a) 7,442
AAA Aaa 1,000 Hillsborough County, Florida, IDA, Revenue Refunding
Bonds (Allegany Health System--J. Knox Village), 6.375%
due 12/01/2003 (b)(f) 1,043
Hillsborough County, Florida, Utility Revenue Refunding Bonds:
BBB+ A3 1,245 Series A, 7% due 8/01/2014 1,296
AAA Aaa 2,000 Series B, 6.50% due 8/01/2016 (b) 2,079
AAA Aaa 2,000 Series B, 6.50% due 8/01/2016 (e) 2,079
AA Aa2 2,000 Jacksonville, Florida, Electric Authority, Revenue
Refunding Bonds (Saint John's River), Issue 2, Series 15,
6% due 10/01/2005 2,091
AA- Aa3 4,095 Jacksonville, Florida, Electric Authority, Water and Sewer
Revenue Bonds, Series A, 6% due 10/01/2024 4,101
Jacksonville, Florida, Health Facilities Authority, Hospital
Revenue Refunding Bonds:
NR* VMIG1++ 2,100 (Genesis Rehabilitation Hospital), VRDN, 5.85% due
5/01/2021 (g) 2,100
AA+ NR* 2,000 (Saint Luke's Hospital Association Project), 7.125% due
11/15/2020 2,094
NR* Baa2 345 Jacksonville, Florida, Health Facilities Authority, IDR
(National Benevolent--Cypress Village), Series A, 6.125%
due 12/01/2016 307
A1+ VMIG1++ 1,000 Jacksonville, Florida, PCR, Refunding (Florida Power and
Light Co. Project), VRDN, 6.05% due 5/01/2029 (g) 1,000
Lakeland, Florida, Electric and Water Revenue Refunding
Bonds, Series A (b):
AAA Aaa 3,730 5% due 10/01/2028 3,229
AAA Aaa 3,500 5% due 10/01/2036 2,974
AAA Aaa 3,500 Lakeland, Florida, Hospital System Revenue Bonds (Lakeland
Regional Health System), Series A, 5.50% due 11/15/2026 (b) 3,318
NR* Aaa 700 Lee County, Florida, HFA, S/F Mortgage Revenue Bonds
(Multi-County Program), Series A-1, 7.125% due 3/01/2028 (d)(j) 752
</TABLE>
MuniYield Florida Fund, April 30, 2000
<TABLE>
SCHEDULE OF INVESTMENTS (CONCLUDED) (in Thousands)
<CAPTION>
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
<S> <S> <S> <C> <S> <C>
Florida AAA Aaa $ 4,000 Lee County, Florida, Solid Waste System Revenue Bonds, AMT,
(concluded) Series A, 6.50% due 10/01/2013 (b) $ 4,156
AAA NR* 1,495 Leon County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-
County Program), AMT, Series B, 7.30% due 1/01/2028 (d)(k) 1,608
NR* Aaa 2,240 Manatee County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT,
Sub-Series 2, 7.75% due 5/01/2026 (d)(k) 2,332
Miami-Dade County, Florida, Educational Facilities Authority
Revenue Bonds (University of Miami), Series A (a):
AAA Aaa 2,110 5.75% due 4/01/2011 2,195
AAA Aaa 1,750 5.75% due 4/01/2029 1,726
AAA Aaa 13,000 Miami-Dade County, Florida, Expressway Authority, Toll System
Revenue Bonds, 6.375% due 7/01/2029 (c) 13,728
BBB- Baa2 2,890 Nassau County, Florida, PCR, Refunding (ITT Rayonier Inc.
Project), 6.20% due 7/01/2015 2,763
Orange County, Florida, School Board, COP, Series A (b):
NR* Aaa 10,500 5.25% due 8/01/2023 9,592
NR* Aaa 2,500 5% due 8/01/2024 2,180
AAA Aaa 2,830 Orange County, Florida, Tourist Development Tax Revenue Bonds,
Series B, 4.75% due 10/01/2024 (a) 2,370
AAA Aaa 11,000 Orlando and Orange County, Florida, Expressway Authority,
Expressway Revenue Refunding Bonds, Junior Lien, 5% due
7/01/2021 (c) 9,750
AAA Aaa 3,390 Palm Beach County, Florida, Criminal Justice Facilities
Revenue Bonds, 7.20% due 6/01/2015 (c) 3,997
NR* Aaa 1,390 Palm Beach County, Florida, HFA, S/F Mortgage Revenue
Refunding Bonds, AMT, Series A, 6.80% due 10/01/2027 (d)(j) 1,448
AAA Aaa 6,000 Palm Beach County, Florida, School Board, COP, Series A, 6.25%
due 8/01/2025 (c) 6,235
AAA NR* 1,000 Peace River/Manasota, Florida, Regional Water Supply Authority
Revenue Bonds (Peace River Option Project), Series A, 5% due
10/01/2023 (b) 877
Pinellas County, Florida, HFA, S/F Housing Revenue Refunding
Bonds (Multi-County Program), AMT, Series A-1 (d)(j):
NR* Aaa 2,060 6.30% due 9/01/2020 2,098
NR* Aaa 3,150 6.35% due 9/01/2025 3,207
A1+ VMIG1++ 300 Pinellas County, Florida, Health Facilities Authority, Revenue
Refunding Bonds (Pooled Hospital Loan Program), DATES, 5.50%
due 12/01/2015 (a)(g) 300
AAA Aaa 1,200 Port Everglades Authority, Florida, Port Revenue Bonds, 7.125%
due 11/01/2016 (l) 1,374
AA- Aa3 1,000 Saint Lucie County, Florida, Solid Waste Disposal Revenue
Bonds (Florida Power and Light Company Project), AMT, 6.70%
due 5/01/2027 1,034
AA NR* 1,000 Saint Lucie County, Florida, Special Assessment (South
Hutchinson Island), 6.20% due 11/01/2005 (f) 1,068
Saint Petersburg, Florida, Health Facilities Authority
Revenue Bonds (b)(f):
AAA Aaa 2,000 (Allegany Health System), Series A, 7% due 12/01/2001 2,098
AAA Aaa 1,550 (Allegany Health System--Saint Anthony's), 6.75% due
12/01/2003 1,619
NR* Aaa 1,965 Saint Petersburg, Florida, Public Utilities Revenue Bonds,
Series A, 5.375% due 10/01/2024 (e) 1,837
NR* Aaa 10,000 Sarasota County, Florida, Public Hospital Board, Revenue
Refunding Bonds, RIB, Series 99, 5.545% due 7/01/2028 (b)(h) 9,072
AAA Aaa 6,000 Sunrise, Florida, Utility System Revenue Bonds, Series A,
5.75% due 10/01/2006 (a)(f) 6,275
AAA Aaa 7,145 Tallahassee, Florida, Energy System Revenue Refunding Bonds,
Series A, 4.75% due 10/01/2026 (e) 5,952
AAA Aaa 8,200 Tampa Bay, Florida, Water Utility System Revenue Bonds,
5.75% due 10/01/2029 (c) 8,085
AAA Aaa 2,015 Tampa Bay, Florida, Water Utility System, Revenue Refunding
Bonds, Series A, 4.75% due 10/01/2027 (c) 1,672
AAA Aaa 2,500 Tampa, Florida, Sports Authority Revenue Bonds, Sales Tax
Payments (Stadium Project), 5.25% due 1/01/2027 (b) 2,270
AAA Aaa 3,000 Tampa, Florida, Water and Sewer Revenue Refunding Bonds,
Series A, 6.25% due 10/01/2002 (c)(f) 3,117
AAA Aaa 2,520 Village Center Community Development District, Florida,
Recreational Revenue Refunding Bonds, Series A, 5% due
11/01/2021 (b) 2,212
AAA Aaa 5,000 Volusia County, Florida, School Board, COP (Master Lease
Program), 5.50% due 8/01/2024 (e) 4,774
Puerto BBB+ Baa1 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds,
Rico--0.3% Series T, 6% due 7/01/2016 1,019
Texas--0.6% Harris County, Texas, Health Facilities Development
Corporation, Hospital Revenue Refunding Bonds (Methodist
Hospital), VRDN (g):
A1+ NR* 1,200 5.40% due 12/01/2025 1,200
A1+ NR* 400 5.40% due 12/01/2026 400
Total Investments (Cost--$276,240)--99.0% 271,984
Other Assets Less Liabilities--1.0% 2,616
--------
Net Assets--100.0% $274,600
========
(a)AMBAC Insured.
(b)MBIA Insured.
(c)FGIC Insured.
(d)GNMA Collateralized.
(e)FSA Insured.
(f)Prerefunded.
(g)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at April 30, 2000.
(h)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 April 30, 2000.
(i)FHA Insured.
(j)FNMA Collateralized.
(k)FHLMC Collateralized.
(l)Escrowed to maturity.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
MuniYield Florida Fund, April 30, 2000
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of April 30, 2000
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$276,239,711) $271,984,172
Receivables:
Interest $ 3,984,381
Securities sold 10,000 3,994,381
------------
Prepaid expenses and other assets 7,745
------------
Total assets 275,986,298
------------
Liabilities: Payables:
Securities purchased 759,142
Custodian bank 218,746
Reorganization costs 172,001
Investment adviser 106,369
Dividends to shareholders 70,799 1,327,057
------------
Accrued expenses and other liabilities 59,285
------------
Total liabilities 1,386,342
------------
Net Assets: Net assets $274,599,956
============
Capital: Capital Shares (unlimited number of shares authorized):
Preferred Shares, par value $.05 per share (3,800 shares of
AMPS* issued and outstanding at $25,000 per share liquidation
preference) $ 95,000,000
Common Shares, par value $.10 per share (13,551,880 shares
issued and outstanding) $ 1,355,188
Paid-in capital in excess of par 195,047,073
Undistributed investment income--net 1,387,544
Accumulated realized capital losses on investments--net (9,790,945)
Accumulated distributions in excess of realized capital gains
on investments--net (4,143,365)
Unrealized depreciation on investments--net (4,255,539)
------------
Total--Equivalent to $13.25 net asset value per Common Share
(market price--$11.00) 179,599,956
------------
Total capital $274,599,956
============
*Auction Market Preferred Shares.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 2000
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 6,091,409
Income:
Expenses: Investment advisory fees $ 530,000
Reorganization expense 277,489
Commission fees 101,868
Professional fees 36,897
Transfer agent fees 29,991
Accounting services 29,791
Printing and shareholder reports 18,590
Custodian fees 8,681
Listing fees 8,146
Trustees' fees and expenses 5,332
Pricing fees 4,026
Other 7,970
------------
Total expenses 1,058,781
------------
Investment income--net 5,032,628
------------
Realized & Realized loss on investments--net (2,343,747)
Unrealized Change in unrealized depreciation on investments--net 4,128,428
Gain (Loss) on ------------
Investments--Net: Net Increase in Net Assets Resulting from Operations $ 6,817,309
============
See Notes to Financial Statements.
</TABLE>
MuniYield Florida Fund, April 30, 2000
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2000 1999
<S> <S> <C> <C>
Operations: Investment income--net $ 5,032,628 $ 7,875,848
Realized loss on investments--net (2,343,747) (2,918,975)
Change in unrealized appreciation/depreciation on investments--net 4,128,428 (12,289,488)
------------ ------------
Net increase (decrease) in net assets resulting from operations 6,817,309 (7,332,615)
------------ ------------
Dividends & Investment income--net:
Distributions to Common Shares (3,651,076) (6,647,197)
Shareholders: Preferred Shares (1,338,134) (1,292,082)
In excess of realized gain on investments--net:
Common Shares -- (3,415,385)
Preferred Shares -- (727,980)
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (4,989,210) (12,082,644)
------------ ------------
Capital Share Proceeds from issuance of Common Shares resulting from
Transactions: reorganization 71,721,673 --
Proceeds from issuance of Preferred Shares resulting from
reorganization 40,000,000 --
Value of shares issued to Common Shareholders in reinvestment
of dividends and distributions -- 1,010,683
------------ ------------
Net increase in net assets derived from capital share
transactions 111,721,673 1,010,683
------------ ------------
Net Assets: Total increase (decrease) in net assets 113,549,772 (18,404,576)
Beginning of period 161,050,184 179,454,760
------------ ------------
End of period* $274,599,956 $161,050,184
============ ============
*Undistributed investment income--net $ 1,387,544 $ 1,344,126
============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived For the Six
from information provided in the financial statements. Months Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.27 $ 15.70 $ 15.59 $ 15.23 $ 15.07
Operating --------- --------- --------- --------- ---------
Performance: Investment income--net .43 .98 1.10 1.13 1.13
Realized and unrealized gain (loss) on
investments--net .05 (1.90) .34 .41 .17
--------- --------- --------- --------- ---------
Total from investment operations .48 (.92) 1.44 1.54 1.30
--------- --------- --------- --------- ---------
Less dividends and distributions to
Common Shareholders:
Investment income--net (.38) (.83) (.86) (.89) (.90)
Realized gain on investments--net -- -- (.22) (.04) --
In excess of realized gain on
investments--net -- (.43) -- -- --
--------- --------- --------- --------- ---------
Total dividends and distributions to
Common Shareholders (.38) (1.26) (1.08) (.93) (.90)
--------- --------- --------- --------- ---------
Effect of Preferred Share activity:++++
Dividends and distributions to Preferred
Shareholders:
Investment income--net (.12) (.16) (.19) (.24) (.24)
Realized gain on investments--net -- -- (.06) (.01) --
In excess of realized gain on
investments--net -- (.09) -- -- --
--------- --------- --------- --------- ---------
Total effect of Preferred Share activity (.12) (.25) (.25) (.25) (.24)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 13.25 $ 13.27 $ 15.70 $ 15.59 $ 15.23
========= ========= ========= ========= =========
Market price per share, end of period $ 11.00 $ 11.75 $ 16.00 $ 15.50 $ 14.50
========= ========= ========= ========= =========
Total Investment Based on market price per share (3.25%)+ (19.96%) 10.66% 13.76% 15.29%
Return:** ========= ========= ========= ========= =========
Based on net asset value per share 3.19%+++ (7.88%) 7.96% 8.93% 7.47%
========= ========= ========= ========= =========
Ratios Based on Total expenses, excluding reorganization
Average Net expenses*** 1.12%* 1.12% 1.04% 1.09% 1.08%
Assets of ========= ========= ========= ========= =========
Common Shares: Total expenses*** 1.29%* 1.12% 1.04% 1.09% 1.08%
========= ========= ========= ========= =========
Total investment income--net*** 7.46%* 6.73% 7.09% 7.32% 7.46%
========= ========= ========= ========= =========
Amount of dividends to Preferred
Shareholders 1.92%* 1.10% 1.25% 1.50% 1.61%
========= ========= ========= ========= =========
Investment income--net, to Common
Shareholders 5.54%* 5.63% 5.84% 5.82% 5.85%
========= ========= ========= ========= =========
Ratios Based on Total expenses, excluding reorganization
Total Average Net expenses .74%* .76% .72% .75% .74%
Assets:***++ ========= ========= ========= ========= =========
Total expenses .85%* .76% .72% .75% .74%
========= ========= ========= ========= =========
Total investment income--net 4.89%* 4.58% 4.90% 5.04% 5.11%
========= ========= ========= ========= =========
Ratios Based on Dividends to Preferred Shareholders 3.65%* 2.36% 2.78% 3.30% 3.48%
Average Net ========= ========= ========= ========= =========
Assets of
Preferred
Shares:
Supplemental Net assets, net of Preferred Shares, end
Data: of period (in thousands) $ 179,600 $ 106,050 $ 124,455 $ 122,731 $ 119,704
========= ========= ========= ========= =========
Preferred Shares outstanding, end of
period (in thousands) $ 95,000 $ 55,000 $ 55,000 $ 55,000 $ 55,000
========= ========= ========= ========= =========
Portfolio turnover 23.79% 97.73% 92.25% 107.09% 119.29%
========= ========= ========= ========= =========
Leverage: Asset coverage per $1,000 $ 2,891 $ 2,928 $ 3,263 $ 3,231 $ 3,176
========= ========= ========= ========= =========
Dividends Series A--Investment income--net $ 453 $ 587 $ 696 $ 826 $ 869
Per Share on ========= ========= ========= ========= =========
Preferred Shares Series B--Investment income--net $ 213 -- -- -- --
Outstanding: ========= ========= ========= ========= =========
*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 Shareholders.
++Includes Common and Preferred Shares average net assets.
++++The Fund's Preferred Shares were issued on April 10, 1992
(Series A) and February 7, 2000 (Series B).
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
MuniYield Florida Fund, April 30, 2000
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield Florida Fund (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 accounting principles generally accepted
in the United States of America, 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 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.
(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 their fair value as determined in good faith
by or under the direction of the Board of Trustees 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 Trustees.
(b) Derivative financial instruments--The Fund may engage in various
portfolio investment strategies to increase or decrease the level of
risk to which the Fund is exposed more quickly and efficiently than
transactions in other types of instruments. Losses may arise due to
changes in the value of the contract or if the counterparty does not
perform under the contract.
* Financial futures contracts--The Fund may purchase or sell 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.
* 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.
(f) Custodian bank--The Portfolio recorded an amount payable to the
custodian bank as a result of the stated overdrawn balance. This
overdrawn balance was due to an unpaid corporate event.
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., Inc. ("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, including proceeds from the
issuance of Preferred Shares.
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, PSI, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 2000 were $64,467,532 and
$47,704,731, respectively.
Net realized losses for the six months ended April 30, 2000 and net
unrealized losses as of April 30, 2000 were as follows:
Realized Unrealized
Losses Losses
Long-term investments $ (1,974,299) $(4,255,539)
Financial futures contracts (369,448) --
------------ -----------
Total $ (2,343,747) $(4,255,539)
============ ===========
As of April 30, 2000, unrealized depreciation for Federal income tax
purposes aggregated $4,255,539, of which $3,911,110 related to
appreciated securities and $8,166,649 related to depreciated
securities. The aggregate cost of investments at April 30, 2000 for
Federal income tax purposes was $276,239,711.
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
Shares issued and outstanding during the six months ended April 30,
2000, increased by 5,558,038 as a result of issuance of Common
Shares from reorganization. Shares issued and outstanding during the
year ended October 31, 1999 increased by 65,627 as a result of
dividend reinvestment.
Preferred Shares
Auction Market Preferred Shares ("AMPS") are Preferred Shares of the
Fund, with a par value of $.05 per share and a liquidation
preference of $25,000 per share, that entitle their holders to
receive cash dividends at an annual rate that may vary for the
successive dividend periods. The yields in effect April 30, 2000
were as follows: Series A, 4.35% and Series B, 4.20%.
Shares issued and outstanding during the six months ended April 30,
2000, increased by 1,600 as a result of issuance of Preferred Shares
from reorganization. Shares issued and outstanding during the year
ended October 31, 1999 remained constant.
The Fund pays commissions to certain broker-dealers at the end of
each auction at an annual rate ranging from .25% to .375%,
calculated on the proceeds of each auction. For the six months ended
April 30, 2000, Merrill Lynch, Pierce, Fenner & Smith Incorporated,
an affiliate of FAM, earned $50,612 as commissions.
5. Capital Loss Carryforward:
At October 31, 1999, the Fund had a net capital loss carryforward of
approximately $3,642,000, all of which expires in 2007. This amount
will be available to offset like amounts of any future taxable
gains.
MuniYield Florida Fund, April 30, 2000
NOTES TO FINANCIAL STATEMENTS (concluded)
6. Reorganization Plan:
On February 7, 2000, the Fund acquired all of the net assets of
MuniVest Florida Fund pursuant to a plan of reorganization. The
acquisition was accomplished by a tax-free exchange of 5,988,782
Common Shares and 1,600 AMPS of MuniVest Florida Fund for 5,558,038
Common Shares and 1,600 AMPS of the Fund. MuniVest Florida Fund's
net assets on that date of $111,721,673, including $5,378,970 of
unrealized depreciation and $6,844,963 of accumulated net realized
capital losses, were combined with those of the Fund. The aggregate
net assets of the Fund immediately after the acquisition amounted to
$269,875,223.
7. Subsequent Event:
On May 5, 2000, the Fund's Board of Trustees declared an ordinary
income dividend to holders of Common Shares in the amount of
$.064290 per share, payable on May 30, 2000 to shareholders of
record as of May 16, 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 particular month and may at times in
any 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.
QUALITY PROFILE
The quality ratings of securities in the Fund as of April 30, 2000
were as follows:
Percent of
S&P Rating/Moody's Rating Net Assets
AAA/Aaa 78.2%
AA/Aa 8.2
A/A 6.2
BBB/Baa 4.1
Other* 2.3
*Temporary investments in short-term municipal securities.
MuniYield Florida Fund, April 30, 2000
OFFICERS AND TRUSTEES
Terry K. Glenn, President and Trustee
James H. Bodurtha, Trustee
Herbert I. London, Trustee
Joseph L. May, Trustee
Andre F. Perold, Trustee
Roberta Cooper Ramo, Trustee
Arthur Zeikel, Trustee
Vincent R. Giordano, Senior Vice President
William R. Bock, Vice President
Kenneth A. Jacob, Vice President
Donald C. Burke, Vice President and Treasurer
Alice A. Pellegrino, Secretary
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agents
Common Shares:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Shares:
The Bank of New York
100Church Street
New York, NY 10286
NYSE Symbol
MYF
Robert R. Martin, Trustee of MuniYield Florida Fund, has recently
retired. The Fund's Board of Trustees wishes Mr. Martin well in his
retirement.
