MUNIVEST
FUND II, INC.
FUND LOGO
Annual Report
October 31, 1995
<PAGE>
This report, including the financial information herein, is transmitted to the
shareholders of MuniVest Fund II, 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.
MuniVest Fund II, Inc.
Box 9011
Princeton, NJ
08543-9011
MUNIVEST FUND II, INC.
The Benefits and
Risks of
Leveraging
MuniVest Fund II, 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.
<PAGE>
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 New York 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.
DEAR SHAREHOLDER
For the year ended October 31, 1995, the Common Stock of MuniVest Fund II,
Inc. earned $0.845 per share income dividends, which included earned and
unpaid dividends of $0.072. This represents a net annualized yield of 6.06%,
based on a month-end net asset value of $13.93 per share. Over the same
period, the total investment return on the Fund's Common Stock was +19.27%,
based on a change in per share net asset value from $12.56 to $13.93, and
assuming reinvestment of $0.846 per share income dividends.
For the six-month period ended October 31, 1995, the total investment return
on the Fund's Common Stock was +7.97%, based on a change in per share net
asset value from $13.36 to $13.93, and assuming reinvestment of $0.420 per
share income dividends.
For the six-month period ended October 31, 1995, the Fund's Auction Market
Preferred Stock had an average yield as follows: Series A, 3.55%; Series B,
4.17%; and Series C, 3.98%.
<PAGE>
The Environment
After losing momentum through the second calendar quarter of 1995, it now
appears that the US economic expansion has resumed. Gross domestic product
growth for the three months ended September 30 was reported to be 4.2%, higher
than generally expected. September durable goods orders increased a
surprisingly strong 3%, and existing home sales rose to a near-record level.
At the same time, there is evidence that inflationary pressures remain
subdued. Reflecting the trend of renewed economic growth--and continued good
news on the inflation front--the Federal Reserve Board signaled no near-term
shift in monetary policy following its September meeting. Thus, official
interest rates may not be reduced further in the immediate future.
Another significant development has been the strengthening of the US dollar
relative to the yen and the Deutschemark. Improving interest rate
differentials favoring the US currency, combined with coordinated central bank
intervention and more positive investor sentiment, have helped to bolster the
dollar in foreign exchange markets. Other factors that appear to be improving
the US dollar's outlook in the near term are a pick-up in capital flows to the
United States and the prospect of increased capital outflows from Japan.
However, it remains to be seen if the US dollar's strengthening trend can
continue without significant improvements in the US budget and trade deficits.
In the weeks ahead, investor interest will continue to focus on US economic
activity. Clear signs of a moderate, noninflationary expansion could further
benefit the US stock and bond markets. In addition, should the current Federal
budget deficit reduction efforts now underway in Washington prove successful,
the implications would likely be positive for the US financial markets.
The Municipal Market
Tax-exempt bond yields continued to decline during the six-month period ended
October 31, 1995. As measured by the Bond Buyer Revenue Bond Index, the yield
on uninsured, long-term municipal revenue bonds fell 30 basis points (0.30%)
to end the October period at approximately 6.00%. While tax-exempt bond yields
have declined dramatically from their highs one year ago, municipal bond
yields have exhibited considerable yield volatility on a weekly basis. In
recent months, tax-exempt bond yields have fluctuated by as much as 20 basis
points on a week-to-week basis. US Treasury bond yields have displayed similar
volatility, but the extent of their decline has been greater. By the end of
October, long-term US Treasury bond yields had declined almost 100 basis
points to 6.33%. Proposed Federal tax restructuring continued to weigh heavily
on the tax-exempt bond market. Thus far in 1995, US Treasury bond yields have
declined approximately 150 basis points. Municipal bond yields have fallen
approximately 95 basis points as the uncertainty surrounding any changes to
the existing Federal income tax structure has prevented the municipal bond
market from rallying as strongly as its taxable counterpart.
A general view of a moderately expanding domestic economy, supported by a very
favorable inflationary environment, allowed interest rates to significantly
decline from their recent highs in November 1994. However, this decline was
not a smooth downward curve. Conflicting economic indicators were released
during recent months that have prevented a clear consensus regarding the
near-term direction of interest rates from being reached. The resultant
uncertainty has promoted more of a saw-toothed pattern as interest rate
declines were repeatedly interrupted by indications of stronger-than-expected
economic growth. As these concerns were overcome by subsequent weaker economic
releases, interest rate declines have resumed. These periods of volatility are
likely to continue for the remainder of 1995, or until proposed Federal budget
deficit reduction packages are resolved and any resultant responses by the
Federal Reserve Board have occurred.
<PAGE>
However, the municipal bond market's technical position remained supportive
throughout recent quarters. Approximately $82 billion in long-term municipal
securities were issued during the six months ended October 31, 1995. While
this issuance is virtually identical to underwritings during the October 31,
1994 quarter, tax-exempt bond issuance over the last 12 months remained
approximately 25% below comparable 1994 levels. The municipal bond market
should maintain this positive technical position well into 1996. Annual
issuance for 1995 is now projected to be approximately $140 billion,
significantly less than last year's already low level of $162 billion.
Projected maturities and early redemptions for the remainder of 1995 and
throughout 1996 will lead to a continued decline in the total outstanding
municipal bond supply throughout 1996, and, perhaps, into 1998 should new
bond issuance remain at historically low levels.
Despite the municipal bond market's relative underperformance compared to the
US Treasury market thus far in 1995, the extent of the tax-exempt bond
market's rally was nonetheless quite impressive. Municipal bond yields have
fallen 135 basis points from their highs reached in November 1994 and
municipal bond prices rose accordingly. Most tax-exempt products recouped
almost all of the losses incurred in 1994 and are well on their way to posting
double-digit total returns for all of 1995. This relative underperformance so
far in 1995 provided long-term investors with the rare opportunity to purchase
tax-exempt securities at yield levels near those of taxable securities.
Additionally, many of the factors that led to the relative underperformance of
the tax-exempt bond market thus far in 1995, namely investor concern
regarding Federal budget deficit reductions and proposed changes in the
Federal income tax structure, are nearing resolution. The Federal budget
reconciliation process has already begun, and may be essentially completed by
year-end. Recent public opinion polls suggest that the majority of American
taxpayers prefer the existing Federal income tax system compared to proposed
changes, such as the flat tax or national sales tax. In an upcoming election
year, neither party is likely to advocate a clearly unpopular position,
particularly one that can be expected to negatively impact the Federal budget
deficit reduction program through reduced tax revenues. As these factors are
resolved, we believe that much of the resistance that the municipal bond
market met this year should dissipate. This should allow municipal bond yields
to significantly decline from current levels in order to return to more normal
historic yield relationships.
<PAGE>
Portfolio Strategy
Over the past 12 months, the Fund's portfolio strategy and performance can be
divided into two periods. From November through mid-December 1994, we believed
that most of the rise in interest rates seen during the latter half of 1994
was unwarranted. Consequently, we maintained the Fund's earlier aggressive
portfolio structure, causing the Fund to underperform market averages through
late 1994. Beginning in mid-December 1994 and through October 31, 1995, the
Fund's fiscal year-end, our positive outlook toward interest rates was
rewarded as bond yields began a significant correction. Since their highs in
November 1994, tax-exempt bond yields have fallen over 100 basis points and
bond prices have risen accordingly. During this period, the Fund outperformed
industry averages and recouped almost all of the losses it incurred in 1994.
Given the extent of the municipal bond market's recent rally, we adopted a
more neutral outlook toward interest rates. The Fund's cash reserves will
remain limited in order to enhance the Fund's current income, but no
significant additional purchase of interest rate-sensitive securities will be
made. The Fund's present structure will allow it to fully participate in any
additional market improvement. Our primary focus will continue to seek to
provide as high a level as possible of tax-exempt income.
Short-term tax-exempt interest rates traded in the 3.25%--4.00% range
throughout most of the last six months. This scenario continued to generate
significant beneficial impact upon the yield paid to the Fund's Common Stock
shareholders. 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 Fund's Common Stock. (For a complete
explanation of the benefits and risks of leveraging, see page 1 of this report
to shareholders.)
In Conclusion
We appreciate your ongoing interest in MuniVest Fund II, Inc., and we look
forward to assisting you with your financial needs in the months and years
ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President
<PAGE>
(Fred K. Stuebe)
Fred K. Stuebe
Portfolio Manager
December 4, 1995
We are pleased to announce that Fred K. Stuebe is responsible for the
day-to-day management of MuniVest Fund II, Inc. Mr. Stuebe has been employed
by Merrill Lynch Asset Management, L.P. (an affiliate of the Fund's investment
adviser) since 1989 as Vice President and Portfolio Manager in the Tax-Exempt
Bond Department. Prior thereto, he was employed by Old Republic Insurance
Company since 1984 as Vice President--Tax-Exempt Investments.
<TABLE>
PROXY RESULTS
<CAPTION>
During the six-month period ended October 31, 1995, MuniVest Fund II, Inc.
Common Stock shareholders voted on the following proposals. The proposals were
approved at a special shareholders' meeting on June 16, 1995. The description
of each proposal and number of shares voted are as follows:
Shares Voted Shares Voted
For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Charles C. Reilly 18,639,817 628,841
Kevin A. Ryan 18,643,317 625,341
Cynthia A. Montgomery 18,640,433 628,225
Arthur Zeikel 18,644,522 624,136
<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. 18,591,743 288,116 388,799
</TABLE>
<PAGE>
During the six-month period ended October 31, 1995, MuniVest Fund II, Inc.
Preferred Stock shareholders (Series A, B and C) voted on the following
proposals. The proposals were approved at a special shareholders' meeting on
June 16, 1995. The description of each proposal and number of shares voted are
as follows:
<TABLE>
<CAPTION>
Shares Voted Shares Voted
For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Ronald W. Forbes,
Richard R. West, Charles C. Reilly, Kevin A. Ryan,
Cynthia A. Montgomery and Arthur Zeikel as follows: Series A 1,320 0
Series B 1,399 0
Series C 1,121 381
<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 1,320 0 0
Series B 1,319 0 80
Series C 1,280 222 0
</TABLE>
Portfolio
Abbreviations
To simplify the listings of MuniVest Fund II, Inc.'s portfolio holdings in
the Schedule of Investments, we have abbreviated the names of many of the
securities according to the list below and at right.
AMT Alternative Minimum Tax (subject to)
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
M/F Multi-Family
PCR Pollution Control Revenue Bonds
S/F Single-Family
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
STATE
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<S> <S> <C> <S> <C>
Alaska--3.3%
AA- A1 $12,500 Valdez, Alaska, Marine Terminal Revenue Refunding Bonds (Sohio Pipeline), 7.125% due
12/01/2025 $ 13,623
Arizona--0.8%
A1+ P1 400 Maricopa County, Arizona, PCR, Refunding (Arizona Public Service Co.), VRDN, Series C,
4% due 5/01/2029 (a) 400
AAA Aaa 2,315 Maricopa County, Arizona, School District No. 3, Refunding and Improvement Bonds
(Tempe Elementary School), UT, 7.50% due 7/01/2010 (c) 2,842
Arkansas--0.1%
NR* P1 400 Crosset, Arkansas, PCR (Georgia-Pacific Corp. Project), VRDN, 3.90% due 10/01/2007 (a) 400
California--0.5%
A- A 2,000 California State Public Works Board, Lease Revenue Bonds (Various Community College
Projects), 7% due 3/01/2014 2,177
Colorado--5.5%
NR* Aa 4,445 Colorado HFA, S/F Program Revenue Bonds, AMT, Senior Series F, 8.625% due 6/01/2025 (h) 5,133
AA Aa 4,785 Colorado Springs, Colorado, Utilities Revenue Bonds, Series C, 6.75% due 11/15/2021 5,264
Denver, Colorado, City and County Airport Revenue Bonds:
BBB Baa 7,500 AMT, Series C, 6.75% due 11/15/2022 7,570
AAA Aaa 4,350 Series A, 7.25% due 11/15/2025 (d) 4,906
Delaware--0.6%
AAA Aaa 2,250 Delaware Transportation Authority, Transportation System Revenue Bonds, Senior Series,
7% due 7/01/2014 (c) 2,530
District of Columbia--0.1%
A1+ VMIG1++ 500 District of Columbia, General Fund Recovery Revenue Bonds, VRDN, UT, Series B, 4.30% due
6/01/2003 (a) 500
Florida--0.9%
BBB Baa1 3,655 Escambia County, Florida, PCR (Champion International Corp. Project), AMT, 6.90% due
8/01/2022 3,809
<PAGE>
Georgia--7.0%
Georgia Municipal Electric Authority, Special Obligation Revenue Bonds:
A A 6,000 (3rd Crossover Series), 6.60% due 1/01/2018 6,453
A A 1,250 (4th Crossover Series), Project One, 6.50% due 1/01/2020 1,332
A+ A 11,035 (5th Crossover Series), Project One, 6.50% due 1/01/2017 11,733
Georgia State, GO, Series F:
AA+ Aaa 5,000 6.50% due 12/01/2006 5,705
AA+ Aaa 3,150 6.50% due 12/01/2007 3,590
Idaho--0.6%
NR* Aaa 2,500 Idaho Housing Agency, S/F Mortgage Revenue Bonds, AMT, Series E-2, 6.90% due 1/01/2027 2,599
Illinois--12.8%
AA- Aa3 4,000 Chicago, Illinois, Gas Supply Revenue Bonds (People's Gas), Series A, 6.875% due
3/01/2015 4,309
Illinois HDA, M/F Program Revenue Bonds:
A+ A1 9,360 Refunding, Series A, 7.375% due 7/01/2017 10,171
A+ A1 6,500 Series 5, 6.75% due 9/01/2023 6,655
A+ Aa 2,550 Illinois HDA, Residential Mortgage Revenue Bonds, AMT, 6.874% due 2/01/2018 2,656
Illinois Health Facilities Authority Revenue Bonds:
NR* Baa1 3,235 (Holy Cross Hospital Project), 6.75% due 3/01/2024 3,237
A+ A1 3,350 Refunding (OSF Healthcare System), 6% due 11/15/2023 3,257
Illinois Regional Transportation Authority, Revenue Bonds:
AAA Aaa 4,815 Series A, 6.50% due 6/01/2015 (b) 5,100
AAA Aaa 1,500 Series A, 7.20% due 11/01/2020 (b) 1,800
AAA Aaa 7,000 Series A, 6.70% due 11/01/2021 (c) 7,954
AAA Aaa 2,500 UT, Series C, 7.75% due 6/01/2020 (c) 3,177
AAA Aaa 1,000 UT, Series C, 7.10% due 6/01/2025 (c) 1,119
AAA A1 3,500 Illinois State Sales Tax Revenue Bonds, Series O, 6.50% due 6/15/2013 3,711
Indiana--13.9%
Indiana Bond Bank Revenue Bonds (State Revolving Fund Program), Series A:
A NR* 2,750 6.875% due 2/01/2012 2,957
A NR* 5,750 6.75% due 2/01/2017 6,152
NR* Aaa 7,350 Indiana State HFA, S/F Mortgage Revenue Refunding Bonds, Series A, 6.80% due 1/01/2017 7,631
AAA Aaa 2,050 Indiana State Toll Road Commission, Toll Road Revenue Bonds (East-West Toll Road), 9%
due 1/01/2015 (e) 2,756
A A 1,915 Indiana Transportation Finance Authority, Airport Facilities Lease Revenue Bonds (United
Air), Series A, 6.75% due 11/01/2011 2,021
Indiana Transportation Finance Authority, Highway Revenue Bonds, Series A:
A+ A1 2,000 7.25% due 6/01/2015 2,359
A+ A1 3,775 6.80% due 12/01/2016 4,229
Indianapolis, Indiana, Local Public Improvement Bond Bank Revenue Bonds:
A+ NR* 8,750 Refunding, Series D, 6.75% due 2/01/2014 9,640
A+ NR* 11,800 Refunding, Series D, 6.75% due 2/01/2020 12,592
NR* A1 2,365 Series C, 6.70% due 1/01/2017 2,491
A1 Aaa 100 Rockport, Indiana, PCR, Refunding (AEP Generating Co. Project), VRDN, Series A, 3.90%
due 7/01/2025 (a) (b) 100
AAA Aaa 3,770 South Newton, Indiana, First Mortgage Revenue Bonds (School Building Corp.), UT, 7% due
1/15/2017 (d) 4,217
<PAGE>
Louisiana--1.0%
A- A3 2,000 De Soto Parish, Louisiana, Environmental Improvement, Revenue Refunding Bonds
(International Paper Co. Project), AMT, Series B, 6.55% due 4/01/2019 2,051
NR* Baa2 2,000 Lake Charles, Louisiana, Harbor and Terminal District, Port Facilities Revenue Refunding
Bonds (Trunkline Long Co. Project), 7.75% due 8/15/2022 2,254
Maine--1.7%
AA- A1 6,790 Maine State Housing Authority, Mortgage Purchase Revenue Bonds, AMT, Series C-2, 6.875%
due 11/15/2023 7,024
Maryland--0.8%
NR* VMIG1++ 1,900 Maryland State Energy Financing Administration, Limited Obligation Revenue Bonds
(Baltimore Ferst Project), VRDN, AMT, 4.05% due 7/01/2011 (a) 1,900
AAA Aaa 1,000 Maryland State Health and Higher Educational Facilities Authority Revenue Bonds
(University of Maryland Medical Systems), Series B, 7% due 7/01/2022 (c) 1,182
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
STATE
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<S> <S> <C> <S> <C>
Massachusetts--3.4%
AAA Aaa $ 1,000 Massachusetts State HFA, Residential Development Revenue Bonds, Series C, 6.90% due
11/15/2021 (f) $ 1,051
A+ A1 1,000 Massachusetts State Revenue Refunding Bonds (College Building Authority Project),
Series A, 7.50% due 5/01/2011 1,204
Massachusetts State Water Resource Authority Revenue Bonds:
A A 5,000 Refunding, Series B, 5.50% due 11/01/2015 4,835
A A 6,000 Series A, 6.50% due 7/15/2019 6,594
<PAGE>
Michigan--7.6%
AAA Aaa 2,500 Detroit, Michigan, Sewage Disposal Revenue Bonds, 6.625% due 7/01/2021 (c) 2,682
BBB Baa1 3,500 Dickinson County, Michigan, Economic Development Corp., Solid Waste Disposal Revenue
Refunding Bonds (Champion International), 6.55% due 3/01/2007 3,650
AA A1 1,250 Michigan Municipal Bond Authority, Revenue Refunding Bonds (Local Government--Qualified
School), Series A, 6.50% due 5/01/2016 1,327
A+ NR* 3,000 Michigan State HDA, Rental Housing Revenue Refunding Bonds, Series A, 6.65%
due 4/01/2023 3,077
Michigan State HDA, S/F Mortgage Revenue Bonds:
AA+ NR* 3,715 Refunding, AMT, Series D, 6.85% due 6/01/2026 3,849
AA+ NR* 4,885 Series A, 6.875% due 6/01/2023 5,102
A A 3,500 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Detroit Medical
Center Obligation Group), Series A, 6.50% due 8/15/2018 3,553
A+ A1 2,500 Michigan State Strategic Fund, Limited Obligation Revenue Bonds (Ford Motor Co. Project),
AMT, Series A, 6.55% due 10/01/2022 2,578
NR* P1 700 Michigan State Strategic Fund, PCR, Refunding (Consumers Power Project), VRDN, Series A,
3.90% due 4/15/2018 (a) 700
AAA Aaa 2,000 Muskegon County, Michigan, Public Schools Revenue Bonds, 5.25% due 5/01/2016 (c) 1,904
AA- Aa 2,585 Royal Oak, Michigan, Hospital Finance Authority, Revenue Refunding Bonds (Beaumont
Properties, Inc.), Series E, 6.625% due 1/01/2019 2,701
Minnesota--2.3%
AA- A1 200 Minneapolis, Minnesota, Community Development Agency, PCR (Collateral--Northern System
Power Co. Project), VRDN, 4% due 3/01/2011 (a) 200
Minnesota State HFA, S/F Mortgage Revenue Bonds:
AA Aa 2,750 AMT, Series L, 6.70% due 7/01/2020 2,831
AA Aa 3,960 AMT, Series M, 6.70% due 7/01/2026 4,077
AA+ Aa 2,500 Series E, 6.80% due 7/01/2025 2,640
Mississippi--0.8%
AA- Aa 3,000 Mississippi State, Revenue Refunding Bonds, Series B, 5.70% due 11/15/2006 3,205
Nebraska--0.6%
AAA Aaa 2,200 Lancaster County, Nebraska, Hospital Authority No. 1, Hospital Revenue Bonds (Bryan
Memorial Hospital Project), 6.70% due 6/01/2022 (d) 2,349
Nevada--4.7%
AAA Aaa 4,055 Clark County, Nevada, Sanitation District, Series A, 6.70% due 7/01/2002 (i) 4,581
AAA Aaa 2,500 Clark County, Nevada, School District Revenue Bonds, 6.75% due 6/15/2015 (c) 2,729
AAA Aaa 1,500 Nevada State Housing Division Revenue Bonds (S/F Program), AMT, Series E, 7% due
10/01/2019 1,570
Nevada State Revenue Bonds (Colorado River Commission--Hoover):
AA Aa 1,825 6.50% due 7/01/2014 1,946
AA Aa 5,430 Refunding, 6.60% due 10/01/2016 5,771
AAA Aaa 2,500 Washoe County, Nevada, Gas Facilities Revenue Bonds (Sierra Pacific Power Co.), AMT,
6.65% due 12/01/2017 (b) 2,668
New Jersey--2.0%
AAA Aaa 3,443 Morris County, New Jersey, Revenue Refunding Bonds, UT, 6% due 7/15/2004 3,780
AAA Aaa 4,435 New Jersey State Housing and Mortgage Finance Agency Revenue Bonds (Home Buyer), AMT,
Series M, 6.95% due 10/01/2022 (d) 4,689
New Mexico--0.0%
A1+ P1 100 Farmington, New Mexico, PCR (Arizona Public Service Co.), VRDN, AMT, Series C, 4.05%
due 9/01/2024 (a) 100
<PAGE>
New York--7.1%
New York City, New York, GO, UT, Series B:
BBB+ Baa1 2,425 7% due 6/01/2016 2,548
BBB+ Baa1 5,000 Sub-Series B-1, 7% due 8/15/2016 5,318
BBB+ Baa1 4,000 Sub-Series B-1, 7.25% due 8/15/2019 4,350
New York City, New York, Municipal Water Finance Authority, Water and Sewer System
Revenue Bonds, Series C (i):
A- Aaa 1,900 7.375% due 6/15/2001 2,203
A- Aaa 2,500 7.75% due 6/15/2001 2,945
New York State Local Government Assistance Corporation Revenue Bonds:
A A 5,000 Refunding, Series B, 5.50% due 4/01/2021 4,808
A Aaa 5,000 Series A, 7.125% due 4/01/2002 (i) 5,806
AAA Aaa 1,150 Series C, 7% due 4/01/2001 (i) 1,312
Ohio--0.4%
AAA Aaa 1,500 Cleveland, Ohio, Water Works, Revenue Refunding Bonds (First Mortgage), Series F-92B,
6.50% due 1/01/2011 (b) 1,618
Pennsylvania--1.8%
AA Aa 1,250 Pennsylvania HFA, S/F Mortgage Revenue Bonds, AMT, Series 43, 7.40% due 10/01/2014 1,344
BBB+ NR* 6,340 Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities Authority, Revenue
Refunding Bonds (Philadelphia Mental Retardation Project), 6.20% due 8/01/2011 6,371
South Carolina--1.4%
A- A1 3,000 Richland County, South Carolina, Solid Waste Disposal Facilities Revenue Bonds (Union
Camp Corp. Project), AMT, Series B, 7.125% due 9/01/2021 3,205
NR* Aa 1,000 South Carolina State Housing Finance and Development Authority, Mortgage Revenue Bonds,
AMT, Series A, 6.70% due 7/01/2027 (h) 1,027
AAA Aaa 1,000 South Carolina State, Public Service Authority, Revenue Refunding Bonds (Santee Cooper),
Series B, 7.10% due 7/01/2001 (i) 1,147
Texas--3.8%
AAA Aaa 1,000 Bedford, Texas, Hurst Euless Independent School District, Revenue Refunding Bonds, UT,
6.50% due 8/15/2024 1,055
Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds,
Series A:
A- A 1,500 (Memorial Hospital System Project), 6.60% due 6/01/2014 1,544
A- A 1,500 (Memorial Hospital System Project), 6.625% due 6/01/2024 1,554
AA Aa 2,500 (Saint Luke's Episcopal Hospital Project), 6.625% due 2/15/2012 2,612
AA Aa 8,000 North Central, Texas, Health Facilities Development Corporation Revenue Bonds (Baylor
University Medical Center), Series A, 6.85% due 5/15/2016 8,457
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
STATE
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<S> <S> <C> <S> <C>
Virginia--4.0%
A- A1 $ 3,115 Isle Wight County, Virginia, IDA, Solid Waste Disposal Facilities Revenue Bonds
(Union Camp Corp. Project), AMT, 6.55% due 4/01/2024 $ 3,236
Virginia State HDA, Commonwealth Mortgage Revenue Bonds:
AA+ Aa1 2,000 AMT, Series B, Sub-Series B-2, 6.85% due 1/01/2027 2,058
AA+ Aa1 2,500 AMT, Series G, Sub-Series G-2, 6.65% due 1/01/2019 2,551
AA+ Aa1 2,000 Series B, Sub-Series B-5, 6.90% due 7/01/2013 2,083
AA+ Aa1 5,100 Series H, 6.85% due 7/01/2014 5,376
AAA Aaa 1,000 Virginia State Transportation Revenue Refunding Bonds, UT, Series A, 4.90% due 7/01/2004 1,023
Washington--5.0%
AAA NR* 2,395 Washington State Housing Finance Commission, S/F Mortgage Revenue Refunding Bonds,
Series D, 6.95% due 7/01/2017 (f) (g) 2,513
Washington State Public Power Supply System, Revenue Refunding Bonds:
AA Aa 4,950 (Nuclear Project No. 1), Series B, 7.25% due 7/01/2009 5,595
AA Aa 5,000 (Nuclear Project No. 1), Series B, 7.125% due 7/01/2016 5,641
AAA Aa 4,000 (Nuclear Project No. 2), Series C, 7.625% due 1/01/2001 (i) 4,644
AAA Aaa 1,900 (Nuclear Project No. 3), Series B, 7.125% due 7/01/2016 (d) 2,244
Wisconsin--1.1%
NR* A 2,000 Wisconsin State Health and Educational Facilities Authority, Revenue Refunding Bonds
(Saint Claire Hospital Project), 7% due 2/15/2011 2,098
AA Aa 2,250 Wisconsin State Housing and Economic Development Authority, Home Ownership Revenue
Bonds, AMT, Series D, 6.65% due 7/01/2025 2,295
Wyoming--3.1%
BBB Baa2 5,000 Sweetwater County, Wyoming, Solid Waste Disposal Revenue Bonds (FMC Corp. Project),
AMT, Series B, 6.90% due 9/01/2024 5,138
Wyoming Community Development Authority, S/F Mortgage Revenue Bonds:
AA Aa 1,500 AMT, Series H, 7.10% due 6/01/2012 1,613
AA Aa 5,885 Series B, 6.70% due 6/01/2017 6,157
Total Investments (Cost--$387,708)--98.7% 406,700
Other Assets Less Liabilities--1.3% 5,530
--------
Net Assets--100.0% $412,230
========
<PAGE>
<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, 1995.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)MBIA Insured.
(e)Escrowed to Maturity.
(f)FNMA Collateralized.
(g)GNMA Collateralized.
(h)FHA Insured.
(i)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte and Touche LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of October 31, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$387,707,843) (Note 1a) $406,699,759
Cash 31,582
Interest receivable 8,024,658
Deferred organization expenses (Note 1e) 19,937
Prepaid expenses and other assets 19,597
------------
Total assets 414,795,533
------------
Liabilities: Payables:
Securities purchased $ 1,907,412
Dividends to shareholders (Note 1f) 428,149
Investment adviser (Note 2) 168,855 2,504,416
------------
Accrued expenses and other liabilities 60,696
------------
Total liabilities 2,565,112
------------
Net Assets: Net assets $412,230,421
============
<PAGE>
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.10 per share (5,400 shares of AMPS* issued and
outstanding at $25,000 per share liquidation preference) $135,000,000
Common Stock, par value $.10 per share (19,907,055 shares issued
and outstanding) $ 1,990,705
Paid-in capital in excess of par 277,543,484
Undistributed investment income--net 2,349,837
Accumulated realized capital losses on investments--net (Note 5) (23,645,521)
Unrealized appreciation on investments--net 18,991,916
------------
Total--Equivalent to $13.93 net asset value per share of Common Stock
(market price--$12.125) 277,230,421
------------
Total capital $412,230,421
============
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended October 31, 1995
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 24,847,172
Income
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 1,995,373
Commission fees (Note 4) 348,789
Accounting services (Note 2) 71,284
Professional fees 69,363
Transfer agent fees 68,765
Printing and shareholder reports 51,295
Custodian fees 31,308
Listing fees 24,510
Directors' fees and expenses 24,338
Pricing fees 15,919
Amortization of organization expenses (Note 1e) 8,288
Other 25,400
------------
Total expenses 2,734,632
------------
Investment income--net 22,112,540
------------
<PAGE>
Realized & Realized loss on investments--net (17,641,284)
Unrealized Change in unrealized appreciation/depreciation on investments--net 44,786,134
Gain (Loss) ------------
on Invest- Net Increase in Net Assets Resulting from Operations $ 49,257,390
ments--Net ============
(Notes 1b,
1d & 3):
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended October 31,
Increase (Decrease) in Net Assets: 1995 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 22,112,540 $ 21,439,599
Realized loss on investments--net (17,641,284) (6,004,219)
Change in unrealized appreciation/depreciation on investments--net 44,786,134 (44,336,422)
------------ ------------
Net increase (decrease) in net assets from operations 49,257,390 (28,901,042)
------------ ------------
Dividends & Investment income--net:
Distributions Common Stock (16,834,919) (17,256,192)
to Share- Preferred Stock (5,271,525) (3,546,657)
holders Realized gain on investments--net:
(Note 1f): Common Stock -- (1,493,468)
Preferred Stock -- (238,878)
------------ ------------
Net decrease in net assets resulting from dividends and distributions to
shareholders (22,106,444) (22,535,195)
------------ ------------
Capital Offering and underwriting costs resulting from the issuance of Preferred Stock -- 8,817
Stock ------------ ------------
Transactions Net increase in net assets derived from capital stock transactions -- 8,817
(Notes ------------ ------------
1e & 4):
Net Assets: Total increase (decrease) in net assets 27,150,946 (51,427,420)
Beginning of year 385,079,475 436,506,895
------------ ------------
End of year* $412,230,421 $385,079,475
============ ============
<FN>
*Undistributed investment income--net $ 2,349,837 $ 2,343,741
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year For the Period
Ended October 31, Mar. 29, 1993++ to
Increase (Decrease) in Net Asset Value: 1995 1994 Oct. 31, 1993
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 12.56 $ 15.15 $ 14.18
Operating ----------- ----------- -----------
Performance: Investment income--net 1.11 1.08 .62
Realized and unrealized gain (loss) on investments--net 1.37 (2.53) 1.02
----------- ----------- -----------
Total from investment operations 2.48 (1.45) 1.64
----------- ----------- -----------
Less dividends and distributions to Common Stock shareholders:
Investment income--net (.85) (.87) (.45)
Realized gain on investments--net -- (.08) --
----------- ----------- -----------
Total dividends and distributions to Common Stock shareholders (.85) (.95) (.45)
----------- ----------- -----------
Capital charge resulting from issuance of Common Stock -- -- (.02)
----------- ----------- -----------
Effect of Preferred Stock activity:++++
Dividends and distributions to Preferred Stock shareholders:
Investment income--net (.26) (.18) (.09)
Realized gain on investments--net -- (.01) --
Capital charge resulting from issuance of Preferred Stock -- -- (.11)
----------- ----------- -----------
Total effect of Preferred Stock activity (.26) (.19) (.20)
----------- ----------- -----------
Net asset value, end of period $ 13.93 $ 12.56 $ 15.15
=========== =========== ===========
Market price per share, end of period $ 12.125 $ 10.375 $ 14.625
=========== =========== ===========
Total Based on market price per share 25.68% (23.56%) .53%+++
Investment =========== =========== ===========
Return:** Based on net asset value per share 19.27% (10.67%) 10.16%+++
=========== =========== ===========
Ratios to Expenses, net of reimbursement .69% .68% .35%*
Average =========== =========== ===========
Net Assets:*** Expenses .69% .68% .49%*
=========== =========== ===========
Investment income--net 5.55% 5.17% 5.17%*
=========== =========== ===========
<PAGE>
Supplemental Net assets, net of Preferred Stock, end of period (in thousands) $ 277,230 $ 250,079 $ 301,507
Data: =========== =========== ===========
Preferred Stock outstanding, end of period (in thousands) $ 135,000 $ 135,000 $ 135,000
=========== =========== ===========
Portfolio turnover 95.62% 114.56% 25.00%
=========== =========== ===========
Dividends Per Series A--Investment income--net $ 967 $ 644 $ 292
Share on Series B--Investment income--net 891 693 352
Preferred Series C--Investment income--net 1,070 634 302
Stock
Outstanding:++++++
<FN>
*Annualized.
**Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially
different returns. Total investment returns exclude the effects of sales loads.
***Do not reflect the effect of dividends to Preferred Stock shareholders.
++Commencement of Operations.
++++The Fund's Preferred Stock was issued on April 26, 1993.
++++++Dividends per share have been adjusted to reflect a two-for-one stock split.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniVest Fund II, Inc. (the "Fund") is registered under the Investment
Company Act of 1940 as a non-diversified, closed-end management investment
company. 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 New York Stock Exchange under the symbol MVT. 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, which are traded on exchanges, are valued at
their last sale price as of the close of such exchanges or, lacking any sales,
at the last available bid price. Securities with remaining maturities of sixty
days or less are valued at amortized cost, which approximates market value.
Securities for which market quotations are not readily available are valued at
fair value as determined in good faith by or under the direction of the Board
of Directors of the Fund, 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.
<PAGE>
(b) Derivative financial instruments--The Fund may engage in various portfolio
strategies to seek to increase its return by hedging its portfolio against
adverse movements in the debt markets. Losses may arise due to changes in the
value of the contract or if the counterparty does not perform under the
contract.
* Financial futures contracts--The Fund may purchase or sell interest rate
futures contracts and options on such futures contracts for the purpose of
hedging the market risk on existing securities or the intended purchase of
securities. Futures contracts are contracts for delayed delivery of securities
at a specific future date and at a specific price or yield. Upon entering into
a contract, the Fund deposits and maintains as collateral such initial margin
as required by the exchange on which the transaction is effected. Pursuant to
the contract, the Fund agrees to receive from or pay to the broker an amount
of cash equal to the daily fluctuation in value of the contract. Such receipts
or payments are known as variation margin and are recorded by the Fund as
unrealized gains or losses. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was closed.
* 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.
<PAGE>
(e) Deferred organization and offering 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 Fund's Common and
Preferred Stock were charged to capital at the time of issuance of the shares.
(f) Dividends and distributions--Dividends from net investment income are
declared and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services,
Inc. ("PSI"), an indirect wholly-owned subsidiary of Merrill Lynch & Co.,
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 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 directors of the Fund are officers and/or directors of
FAM, PSI, Merrill Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S"), and/or ML
& Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
year ended October 31, 1995 were $341,010,438 and $331,780,847, respectively.
Net realized and unrealized gains (losses) as of October 31, 1995 were as
follows:
Realized Unrealized
Losses Gains
Long-term investments $(11,642,937) $ 18,991,916
Short-term investments (40,836) --
Financial futures contracts (5,957,511) --
------------ ------------
Total $(17,641,284) $ 18,991,916
============ ============
As of October 31, 1995, net unrealized appreciation for Federal income tax
purposes aggregated $18,991,916, of which $19,010,698 related to appreciated
securities and $18,782 related to depreciated securities. The aggregate cost
of investments at October 31, 1995 for Federal income tax purposes was
$387,707,843.
<PAGE>
4. Capital Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of capital stock, including
Preferred Stock, par value $.10 per share, all of which were initially
classified as Common Stock. The Board of Directors is authorized, however, to
reclassify any unissued shares of capital stock without approval of holders of
Common Stock.
Common Stock
For the year ended October 31, 1995, shares issued and outstanding remained
constant at 19,907,055. At October 31, 1995, total paid-in capital amounted to
$279,534,189.
Preferred Stock
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. The yields in effect at
October 31, 1995 were as follows: Series A, 3.788%; Series B, 3.65%; and
Series C, 3.75%.
A two-for-one stock split occurred on December 1, 1994. As a result, as of
October 31, 1995, there were 5,400 AMPS authorized, issued and outstanding
with a liquidation preference of $25,000 per share, plus accumulated and
unpaid dividends of $147,372.
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, 1995, MLPF&S, an affiliate of
FAM, earned $196,617 as commissions.
5. Capital Loss Carryforward:
At October 31, 1995, the Fund had a capital loss carryforward of approximately
$20,052,000, of which $6,004,000 expires in 2002 and $14,048,000 expires
in 2003. This amount will be available to offset like amounts of any future
taxable gains.
6. Subsequent Event:
On November 13, 1995, the Fund's Board of Directors declared an ordinary
income dividend to Common Stock shareholders in the amount of $0.072264 per
share, payable on November 29, 1995 to shareholders of record as of November
24, 1995.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Shareholders,
MuniVest Fund II, Inc.:
<PAGE>
We have audited the accompanying statement of assets, liabilities and capital,
including the schedule of investments, of MuniVest Fund II, Inc. as of October
31, 1995, 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 for the period March 29, 1993 (commencement of operations) to
October 31, 1993. 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, 1995 by correspondence with the custodian and broker. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of MuniVest Fund II,
Inc. as of October 31, 1995, the results of its operations, the changes in its
net assets, and the financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
December 4, 1995
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (unaudited)
All of the net investment income distributions paid monthly by MuniVest Fund
II, Inc. during its taxable year ended October 31, 1995, qualify as tax-exempt
interest dividends for Federal income tax purposes. Additionally, there were
no capital gains distributed by the Fund during the year.
PER SHARE INFORMATION (unaudited)
<PAGE>
<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, 1993 to January 31, 1994 $.28 $ .10 $ .10 $.22 $.05 $.08 --
February 1, 1994 to April 30, 1994 .27 .08 (1.88) .22 .04 -- --
May 1, 1994 to July 31, 1994 .26 (.12) .41 .22 .04 .08 $.01
August 1, 1994 to October 31, 1994 .27 (.37) (.85) .21 .05 -- --
November 1, 1994 to January 31, 1995 .28 (.64) .95 .22 .07 -- --
February 1, 1995 to April 30, 1995 .27 (.18) .68 .21 .06 -- --
May 1, 1995 to July 31, 1995 .28 (.02) .32 .21 .07 -- --
August 1, 1995 to October 31, 1995 .28 (.05) .31 .21 .06 -- --
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
November 1, 1993 to January 31, 1994 $15.27 $14.67 $14.75 $13.375 2,643
February 1, 1994 to April 30, 1994 15.23 12.80 14.50 11.875 2,175
May 1, 1994 to July 31, 1994 14.15 13.15 12.625 11.875 1,966
August 1, 1994 to October 31, 1994 13.79 12.56 12.375 10.50 4,443
November 1, 1994 to January 31, 1995 12.87 11.51 11.25 9.625 5,533
February 1, 1995 to April 30, 1995 13.66 12.89 11.875 11.125 2,714
May 1, 1995 to July 31, 1995 14.18 13.33 12.25 11.50 1,994
August 1, 1995 to October 31, 1995 14.02 13.42 12.25 11.50 2,053
<FN>
*Calculations are based upon shares of Common Stock outstanding at the end of each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
OFFICERS AND DIRECTORS
Arthur Zeikel, President and Director
Ronald W. Forbes, Director
Cynthia A. Montgomery, Director
Charles C. Reilly, Director
Kevin A. Ryan, Director
Richard R. West, Director
Terry K. Glenn, Executive Vice President
Donald C. Burke, Vice President
Vincent R. Giordano, Vice President
Kenneth A. Jacob, Vice President
Fred K. Stuebe, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
<PAGE>
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, New York 10286
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
Custodian
The Bank of New York
90 Washington Street
New York, New York 10286
NYSE Symbol
MVT
