MUNIVEST
FLORIDA
FUND
Semi-Annual Report April 30, 1994
This report, including the financial information herein,
is transmitted to the shareholders of MuniVest Florida Fund
for their information. It is not a prospectus, circular or
representation intended for use in the purchase of shares
of the Fund or any securities mentioned in the report. Past
performance results shown in this report should not be con-
sidered 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 Share-
holders, 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.
MuniVest Florida Fund
Box 9011
Princeton, NJ
08543-9011
MUNIVEST FLORIDA FUND
The Benefits and
Risks of
Leveraging
MuniVest 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 divi-
dends 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 re-
flected 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 in-
terest 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 cap-
italization 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.
In this case, the dividends paid to Preferred Shareholders are
significantly lower than the income earned on the fund's long-
term investments, and therefore the Common Shareholders are the
beneficiaries of the incremental yield. However, if short-term
interest rates rise, narrowing the differential between short-
term and long-term interest rates, the incremental yield pick-up
on the Common Shares will be reduced. At the same time, the
market value on 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.
Officers and
Trustees
Arthur Zeikel, President and Trustee
Donald Cecil, Trustee
M. Colyer Crum, Trustee
Edward H. Meyer, Trustee
Jack B. Sunderland, Trustee
J. Thomas Touchton, Trustee
Terry K. Glenn, Executive Vice President
Donald C. Burke, Vice President
Vincent R. Giordano, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Transfer Agents
Common Shares:
The Bank of New York
101 Barclay Street
New York, New York 10286
Preferred Shares:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
Custodian
The Bank of New York
110 Washington Street
New York, New York 10286
NYSE Symbol
MVS
DEAR SHAREHOLDER
For the six-month period ended April 30, 1994, the Common Shares
of MuniVest Florida Fund earned $0.534 per share income dividends,
which includes earned and unpaid dividends of $0.065. This rep-
resents a net annualized yield of 8.43%, based on a month-end per
share net asset value of $12.77. Over the same period, the total
investment return on the Fund's Common Shares was -11.40%, based
on a change in per share net asset value from $14.99 to $12.77,
and assuming reinvestment of $0.541 per share income dividends.
For the six-month period ended April 30, 1994, the Fund's Auction
Market Preferred Shares had an average yield of 2.00%.
The Environment
Inflationary expectations and investor sentiment changed for the
worse during the three-month period ended April 30, 1994. Follow-
ing stronger-than-expected economic results through year-end 1993,
the Federal Reserve Board broke with tradition on February 4,
1994 and publicly announced a modest 25 basis point (0.25%) in-
crease in short-term interest rates. At the March 22 meeting of
the Federal Open Market Committee, the Federal Reserve Board
again raised the Federal Funds rate by 25 basis points, followed
by another 25 basis point increase on April 18.
Rather than view the Federal Reserve Board's first tightening
move as a preemptive strike against inflation, fixed-income
investors focused on Chairman Greenspan's implicit promise of
further tightening should the rate of inflation accelerate, and
bond prices declined sharply. The setback in the bond market was
also reflected in greater stock market volatility. While the
second and third increases in the Federal Funds rate were less
of a surprise, investors remained concerned that interest rates
would trend upward sharply as the central bank aggressively
attempted to contain the inflationary pressures of an improving
economy. At the same time, highly leveraged investors were forced
to liquidate positions in the face of declining stock and bond
prices. Investor confidence was not restored with the announce-
ment of the surprisingly slow 2.6% gross domestic product growth
rate for the first calendar quarter of 1994. Instead, investors
focused on the higher-than-expected (but still moderate) broad
inflation measures and became concerned that business activity
was beginning to stagnate as inflationary pressures were in-
creasing.
The volatility in the US capital markets was mirrored in inter-
national markets during the period. Political and economic de-
velopments, along with concerns of heightened global infla-
tionary pressures, led to a sell-off in most capital markets,
especially the emerging markets that had appreciated strongly
in 1993.
The Municipal Market
During the six months ended April 30, 1994, tax-exempt bond
yields exhibited considerable volatility as they rose to their
highest level in the past two years. As measured by the Bond
Buyer Revenue Bond Index, the yield on newly issued municipal
bonds maturing in 30 years rose over 90 basis points to 6.42% by
the end of April. Yields on seasoned municipal revenue bonds rose
by over 100 basis points in sympathy with the equally dramatic
increase in US Treasury bond yields. By the end of April, yields
of US Treasury securities rose by over 95 basis points to approxi-
mately 7.30%.
Long-term tax-exempt bond yields were essentially unchanged from
the end of October 1993 to the end of January 1994. However, on a
weekly basis, tax-exempt bond yields fluctuated by as much as 15
basis points as investors were unable to reconcile the rapid
economic growth seen late last year with continued low inflation.
Following the initial interest rate increase by the Federal Re-
serve Board in early February, municipal bond prices began to
erode in concert with taxable bond prices as investors began to
sell securities in anticipation of further interest rate in-
creases. This fear led investors to withdraw from the tax-exempt
market. From early February to the end of March, total assets
of all tax-exempt bond funds declined by $14 billion to $247
billion. This decline in investor demand, coupled with fears
that the robust economic recovery seen during the fourth quar-
ter of 1993 would continue well into 1994, helped push municipal
bond yields higher in February and March. Attracted by tax-exempt
yields in excess of 6.25%, investor demand returned in April,
allowing yields to decline approximately 15 basis points to end
the April period at approximately 6.40%.
A rise in tax-exempt bond yields the magnitude of that exper-
ienced over the past six months has not been seen since 1987
when municipal bond rates rose 250 basis points between March
and October of that year. It is very important to note that the
recent municipal bond price declines were largely the result of
consistent and insistent selling pressures over the last two
months. In 1987, the tax-exempt bond market was much more vol-
atile and, at times, chaotic as investors sought to liquidate
positions without concern for fundamental value. For the most
part, the recent price deterioration has been orderly, and the
municipal bond market's liquidity and integrity have not been
challenged or jeopardized.
To a large extent, the municipal bond market has continued to be
supported by its strong technical position. New-issue volume for
the last six months has been less than $105 billion. This rep-
resents a decline of approximately 20% versus the comparable
period a year ago. This decline was expected and has been dis-
cussed in previous shareholder reports. This reduced issuance
has minimized potential selling pressure in recent months since
institutional investors have been wary of selling appreciable
amounts of securities that they may be unable to replace later
this year at any price level. We expect this decline in issuance
to continue since we anticipate recent yield increases to sig-
nificantly impact future municipal bond issuance.
Despite recent price declines, tax-exempt securities remain among
the most attractive investment alternatives available. After the
recent yield increases, longer-term municipal securities yield
approximately 90% of comparable US Treasury yields. Purchasers of
these municipal bonds also accrue substantial after-tax yield
advantages. To investors in the 39% marginal Federal income tax
bracket, the purchase of a municipal bond yielding 6.50% rep-
resents an after-tax equivalent of 10.65%. With prevailing
estimates of 1994 inflation at no more than 3%--4%, real after-
tax rates in excess of 6.50% easily compensate longer-term
investors for much of the price volatility recently experienced.
Portfolio Strategy
Our interest rate outlook is constructive for the second half of
1994 and the first half of 1995 because of the forecast slowing
of the US economy later this year and the continuing reduction of
new-issue supply in the municipal bond market. During the April
period, the increasing volatile nature of interest rates has
provided the Fund with an opportunity to purchase attractively
priced discount bonds with maturities exceeding 15 years, which
are expected to perform well should interest rates decline later
this year. The Fund plans to keep its cash position below 10%,
thereby allowing it to perform well if there is a declining in-
terest rate environment.
By maintaining its Preferred Shares in a weekly mode, the Fund
enhances the return to the Common Shareholders. As of April 28,
1994, the weekly interest rate for MuniVest Florida Fund's
Preferred Shares was 2.80%, while 25-year Florida municipal
interest rates were between 6% and 6.50%. The leveraging of the
Fund's Preferred Shares in a steep yield curve environment has
benefited yields to the Common Shareholders, but if the yield
curve were to flatten, the return would decline. Dividends paid
to Preferred Shareholders are significantly lower than the in-
come earned on the Fund's long-term investments, and therefore
the Common Shareholders are the beneficiaries of the incremental
yield. Should the interest rate differential between short-term
and long-term interest rates narrow because of a rise in short-
term interest rates, the incremental yield "pick up" on the Common
Shares will be reduced. Furthermore, if long-term interest rates
rise, the Common Shares' net asset value will reflect the full
decline in the entire portfolio holdings, since the value of the
Fund's Preferred Shares does not fluctuate. During the six-month
period ended April 30, 1994, long-term interest rates rose,
reflected in the decline in the net asset value of the Fund's
Common Shares. For a complete explanation, see page 1 of this
report to shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
May 25, 1994
Portfolio
Abbreviations
To simplify the listings of MuniVest 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.
ACES SM Adjustable Convertible Extendable Securities
DATES Daily Adjustable Tax-Exempt Securities
IDA Industrial Development Authority
PCR Pollution Control Revenue Bonds
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Florida--100.5% AAA Aaa $ 1,000 Broward County, Florida, Airport Systems Revenue Refunding Bonds,
Series C, 5.25% due 10/01/2008 (b) $ 935
A+ A1 3,500 Citrus County, Florida, PCR, Refunding (Florida Power Corporation--
Crystal River), Series B, 6.35% due 2/01/2022 3,520
Dade County, Florida, Aviation Revenue Refunding Bonds:
A1 VMIG1 3,300 Series V, VRDN, 3.25% due 10/01/2007 (a) 3,300
A Aa 3,380 Series Y, 5.50% due 10/01/2011 3,103
AAA Aaa 2,000 Dade County, Florida, Education Facility Authority, Revenue Refunding
Bonds (Florida International), 5% due 10/01/2016 (c) 1,711
AAA Aaa 4,250 Dade County, Florida, Professional Sports Franchise Facilities, Tax
Revenue Bonds, Series B, 6% due 10/01/2022 (d) 4,137
AAA Aaa 2,210 Dade County, Florida, Seaport Revenue Bonds, UT, 6.50% due
10/01/2026 (b) 2,244
AAA Aaa 3,920 Dunedin, Florida, Hospital Revenue Refunding Bonds (Mease Health Care),
5.375% due 11/15/2021 (c) 3,453
AAA Aaa 1,250 Dunedin, Florida, Utility System Revenue Refunding Bonds, 4.50% due
10/01/2014 (d) 1,006
AAA Aaa 2,000 Edgewater, Florida, Water and Sewer Revenue Refunding Bonds, 5.50%
due 10/01/2021 (c) 1,807
AAA Aaa 2,000 Escambia County, Florida, PCR, Refunding (Gulf Power Company Project),
5.80% due 6/01/2023 (c) 1,867
AAA Aaa 1,250 Escambia County, Florida, Sales Tax Revenue Refunding Bonds, 5.80%
due 1/01/2015 (d) 1,193
Florida State Board of Education, Capital Outlay Revenue Bonds:
AA Aa 8,630 Public Education, Series B, 6% due 6/01/2022 8,279
AA Aa 1,000 Public Education, Series C, UT, 5.50% due 6/01/2023 (c) 901
AA Aa 2,500 Series C, 5.875% due 6/01/2023 2,356
Florida State Municipal Power Agency Revenue Bonds:
AAA Aaa 2,000 (All Requirements Power Supply Project), 5.10% due 10/01/2014 (b) 1,747
AAA Aaa 2,500 Refunding (Saint Lucie Project), 5.25% due 10/01/2021 (d) 2,177
AAA Aaa 4,000 Refunding (Stanton II Project), 4.50% due 10/01/2027 (b) 2,983
AAA Aaa 2,000 (Stanton II Project), 6% due 10/01/2002 (b)(e) 2,124
AAA Aaa 1,000 Florida State Turnpike Authority, Turnpike Revenue Refunding Bonds,
Series A, 5% due 7/01/2019 (d) 844
Fort Meyers, Florida, Utility Revenue Refunding Bonds, Series B (d):
AAA Aaa 1,410 5% due 10/01/2013 1,226
AAA Aaa 1,170 5% due 10/01/2016 1,001
AAA Aaa 2,000 Gainesville, Florida, Guaranteed Entitlement, Revenue Refunding
Bonds, 5.50% due 8/01/2017 (b) 1,819
AAA Aaa 4,000 Hillsborough County, Florida, Aviation Authority, Revenue Refunding
Bonds (Tampa International Airport), Series B, 5.60% due 10/01/2019 (d) 3,676
A1+ VMIG1 2,100 Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric
Company Gannon), VRDN, 3% due 5/15/2018 (a) 2,100
AAA Aaa 3,140 Hollywood, Florida, Water and Sewer Revenue Refunding Bonds, 5.60%
due 10/01/2023 (d) 2,871
Jacksonville, Florida, Electric Authority, Revenue Refunding Bonds
(Saint Johns River Power):
AA Aa1 5,300 2-Series 7, 5.50% due 10/01/2014 4,885
AA Aa1 1,000 Park System, 6% due 10/01/2015 968
AAA Aaa 1,800 Key West, Florida, Sewer Revenue Refunding Bonds, 5.70% due
10/01/2026 (d) 1,665
AAA Aaa 1,000 Kissimmee, Florida, Utility Authority Electric System, Revenue and
Improvement Bonds, 5.25% due 10/01/2018 (d) 877
AA Aaa 1,000 Lakeland, Florida, Electric and Water Revenue Bonds, 5.75% due 10/01/2019 931
AAA Aaa 2,000 Lakeland, Florida, Hospital System Revenue Refunding Bonds (Lakeland
Regional Medical Center Project), Series B, 5.75% due 11/15/2015 (d) 1,891
AAA Aaa 1,900 Lee County, Florida, Capital and Transportation Facilities, Revenue
Refunding Bonds, Series A, 5.60% due 10/01/2021 (c) 1,741
BBB+ Baa1 4,000 Leesburg, Florida, Hospital Revenue Refunding Bonds (Leesburg Regional
Medical Center Project), Series A, 6.125% due 7/01/2018 3,577
AA- A1 3,000 Manatee County, Florida, Revenue Refunding Bonds, UT, 4.50% due 10/01/2015 2,343
AAA Aaa 1,000 Martin County, Florida, Water and Wastewater System Revenue Bonds (Martin
Downs Systems), 5.70% due 10/01/2023 (d) 928
AAA Aaa 1,000 Melbourne, Florida, Water and Sewer Revenue Refunding Bonds, Series A, 5%
due 10/01/2022 (d) 835
BBB Baa 1,000 Nassau County, Florida, PCR, Refunding (ITT Rayonier, Inc. Project),
6.20% due 7/01/2015 942
AAA Aaa 3,000 Orange County, Florida, Health Facilities Authority, Revenue Refunding
Bonds (Orlando Regional Healthcare), Series A, 6% due 11/01/2024 (c) 2,906
Orlando, Florida, Utilities Commission, Water and Electric Revenue Bonds:
AA- Aa 3,000 Refunding, Sub-Series A, 5.25% due 10/01/2023 2,559
AA- Aa 1,000 Series A, 5% due 10/01/2012 869
AA- Aa 4,000 Sub-Series A, 5.50% due 10/01/2027 3,531
AAA Aaa 2,000 Palm Beach County, Florida, Criminal Justice Facilities, Revenue Re-
funding Bonds, 5.375% due 6/01/2011 (d) 1,871
NR VMIG1 3,000 Palm Beach County, Florida, Water and Sewer Revenue Bonds, VRDN, 2.95%
due 10/01/2011 (a) 3,000
A1 VMIG1 2,000 Pinellas County, Florida, Health Facilities Authority, Revenue
Refunding Bonds, DATES (Pooled Hospital Loan Program), 2.95% due
12/01/2015 (a) 2,000
AAA Aaa 1,780 Port Orange, Florida, Water and Sewer Revenue Refunding Bonds (Junior
Lien), 5.25% due 10/01/2021 (b) 1,550
Reedy Creek, Florida, Improvement District Revenue Bonds:
AAA Aaa 3,015 Refunding, Florida Utilities, Series 1, 5% due 10/01/2019 (c) 2,541
A+ A1 2,000 Series A, 6% due 6/01/2016 1,950
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Florida AAA Aaa $ 1,550 Saint Petersburg, Florida, Excise Tax Revenue Refunding Bonds,
(concluded) 5% due 10/01/2016 (d) $ 1,328
AAA Aaa 3,580 Saint Petersburg, Florida, Health Facilities Authority Revenue
Bonds (Allegany Health System), 5.75% due 12/01/2021 (c) 3,328
A3 VMIG2 2,100 Sarasota County, Florida, Health Facility Authority, Hospital Revenue
Bonds, ACES (Venice Hospital Project), 2.95% due 12/01/2015 (a) 2,100
AAA Aaa 1,830 Tampa, Florida, Water and Sewer Revenue Refunding Bonds, Series A, 5%
due 10/01/2014 (d) 1,577
AAA Aaa 2,000 Volusias County, Florida, Health Facilities Authority, Revenue Refunding
and Improvement Bonds (Hospital Facilities--Memorial Health), 5.75%
due 11/15/2020 (b) 1,859
Total Investments (Cost--$124,542)--100.5% 116,932
Liabilities in Excess of Other Assets--(0.5%) (601)
--------
Net Assets--100.0% $116,331
========
<FN>
(a) The interest rate is subject to change periodically based upon the
prevailing market rate. The interest rates shown are the rates in
effect at April 30, 1994.
(b) AMBAC Insured.
(c) MBIA Insured.
(d) FGIC Insured.
(e) Prerefunded.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of April 30, 1994
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$124,541,688) (Note 1a) $116,931,926
Cash 20,556
Receivables:
Securities sold $ 2,009,180
Interest 1,338,567 3,347,747
------------
Deferred organization expenses (Note 1e) 23,893
Prepaid expenses and other assets 6,585
------------
Total assets 120,330,707
------------
Liabilities: Payables:
Securities purchased 3,715,997
Dividends to shareholders (Note 1g) 106,924
Investment adviser (Note 2) 44,526 3,867,447
------------
Accrued expenses and other liabilities 132,764
------------
Total liabilities 4,000,211
------------
Net Assets: Net assets $116,330,496
============
Capital: Capital Shares (unlimited number of shares of beneficial interest
authorized) (Note 4):
Preferred Shares, par value $.10 per share (800 shares of AMPS*
issued and outstanding at $50,000 per share liquidation preference) $ 40,000,000
Common Shares, par value $.10 per share (5,978,662 shares issued
and outstanding) $ 597,866
Paid-in capital in excess of par 83,194,262
Undistributed investment income--net 473,668
Accumulated realized capital losses--net (325,538)
Unrealized depreciation on investments--net (7,609,762)
------------
Total--Equivalent to $12.77 net asset value per Common Share
(market price--$12.75) 76,330,496
------------
Total capital $116,330,496
============
<FN>
*Auction Market Preferred Shares.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 1994
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 3,415,314
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 310,762
Commission fees (Note 4) 51,022
Professional fees 36,343
Transfer agent fees 20,544
Accounting services (Note 2) 20,313
Printing and shareholder reports 13,897
Trustees' fees and expenses 11,480
Listing fees 8,104
Custodian fees 5,047
Pricing fees 3,501
Amortization of organization expenses (Note 1e) 2,684
Other 4,781
------------
Total expenses before reimbursement 488,478
Reimbursement of expenses (Note 2) (36,840)
------------
Total expenses after reimbursement 451,638
------------
Investment income--net 2,963,676
------------
Realized & Realized loss on investments--net (325,534)
Unrealized Change in unrealized appreciation/depreciation on investments--net (12,250,018)
Loss on ------------
Investments--Net Net Decrease in Net Assets Resulting from Operations $ (9,611,876)
(Notes 1d & 3): ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the Period
Months Ended April 30, 1993++
Increase (Decrease) in Net Assets: April 30, 1994 to Oct. 31, 1993
<S> <S> <C> <C>
Operations: Investment income--net $ 2,963,676 $ 2,882,402
Realized gain (loss) on investments--net (325,534) 732,849
Change in unrealized appreciation/depreciation on investments--net (12,250,018) 4,640,256
------------ ------------
Net increase (decrease) in net assets resulting from operations (9,611,876) 8,255,507
------------ ------------
Dividends & Investment income--net:
Distributions Common Shares (2,593,979) (2,049,463)
To Shareholders Preferred Shares (337,104) (391,864)
(Note 1g): Realized gain on investments--net:
Common Shares (633,222) --
Preferred Shares (99,631) --
------------ ------------
Net decrease in net assets resulting from dividends and
distributions to shareholders (3,663,936) (2,441,327)
------------ ------------
Common & Net proceeds from issuance of Common Shares -- 83,656,000
Preferred Share Proceeds from issuance of Preferred Shares -- 40,000,000
Transactions Offering and underwriting costs resulting from the issuance
(Notes 1e & 4): of Preferred Shares -- (749,422)
Value of shares issued to Common Shareholders in reinvestment
of dividends 168,020 617,525
------------ ------------
Net increase in net assets derived from capital share transactions 168,020 123,524,103
------------ ------------
Net Assets: Total increase (decrease) in net assets (13,107,792) 129,338,283
Beginning of period 129,438,288 100,005
------------ ------------
End of period* $116,330,496 $129,438,288
============ ============
*Undistributed investment income--net $ 473,668 $ 441,075
============ ============
<FN>
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Six For the Period
Months Ended April 30, 1993++
Increase (Decrease) in Net Asset Value: April 30, 1994 to Oct. 31, 1993
<S> <S> <C> <C>
Per Share Net asset value, beginning of period $ 14.99 $ 14.18
Operating ------------ ------------
Performance: Investment income--net .50 .49
------------ ------------
Realized and unrealized gain (loss) on investments--net (2.10) .90
------------ ------------
Total from investment operations (1.60) 1.39
------------ ------------
Less dividends and distributions to Common Shareholders:
Investment income--net (.43) (.35)
Realized gain on investments--net (.11) --
------------ ------------
Total dividends and distributions to Common Shareholders (.54) (.35)
------------ ------------
Capital charge resulting from issuance of Common Shares -- (.04)
------------ ------------
Effect of Preferred Share activity++++:
Dividends and distributions to Preferred Shareholders:
Investment income--net (.06) (.07)
Realized gain on investments--net (.02) --
Capital charge resulting from issuance of Preferred Shares -- (.12)
Total effect of Preferred Share activity (.08) (.19)
------------ ------------
Net asset value, end of period $ 12.77 $ 14.99
============ ============
Market price per share, end of period $ 12.75 $ 15.00
============ ============
Total Investment Based on market price per share (11.60%)++ 2.37%++
Return:** ============ ============
Based on net asset value per share (11.40%)++ 8.22%++
============ ============
Ratios to Average Expenses, net of reimbursement .72%* .48%*
Net Assets:*** ============ ============
Expenses .78%* .83%*
============ ============
Investment income--net 4.75%* 4.85%*
============ ============
Supplemental Net assets, net of Preferred Shares, end of period (in thousands) $ 76,330 $ 89,438
Data: ============ ============
Preferred Shares outstanding, end of period (in thousands) $ 40,000 $ 40,000
============ ============
Portfolio turnover 23.50% 23.23%
============ ============
Dividends Per Investment income--net $ 421 $ 490
Share on Preferred
Shares Outstanding:
<FN>
++Commencement of Operations.
++++The Fund's Preferred Shares were issued on June 1, 1993.
*Annualized.
**Total investment returns based on market value, which can
be significantly greater or lesser than the net asset value,
result in substantially different returns. Total investment
returns exclude the effects of sales loads.
***Do not reflect the effect of dividends to Preferred Shareholders.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniVest Florida Fund (the "Fund") is registered under the Invest-
ment Company Act of 1940 as a non-diversified, closed-end manage-
ment investment company. The following is a summary of significant
accounting policies followed by the Fund. The Fund's Common Shares
are listed on the New York Stock Exchange under the symbol MVS.
(a) Valuation of investments--Municipal bonds are traded pri-
marily in the over-the-counter markets and are valued at the
most recent bid price or yield equivalent as obtained by the
Fund's pricing service from dealers that make markets in such
securities. Financial futures contracts, which are traded on
exchanges, are valued at their closing prices as of the close
of such exchanges. Options, which are traded on exchanges, are
valued at their last sale price as of the close of such exchanges
or, lacking any sales, at the last available bid price. Secur-
ities with remaining maturities of sixty days or less are valued
at amortized cost. 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 Trustees
of the Fund.
(b) Financial futures contracts--The Fund may purchase or sell
interest rate futures contracts and options on such futures
contracts for the purpose of hedging the market risk on existing
securities or the intended purchase of securities. Futures
contracts are contracts for delayed delivery of securities at a
specific future date and at a specific price or yield. Upon
entering into a contract, the Fund deposits and maintains as
collateral such initial margin as required by the exchange on
which the transaction is effected. Pursuant to the contract, the
Fund agrees to receive from or pay to the broker an amount of
cash equal to the daily fluctuation in value of the contract.
Such receipts or payments are known as variation margin and are
recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund records a realized gain or loss
equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.
(c) Income taxes--It is the Fund's policy to comply with the re-
quirements 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 trans-
actions 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 trans-
actions are determined on the identified cost basis.
(e) Deferred organization and offering expenses--Deferred organ-
ization expenses are amortized on a straight-line basis over a
five-year period. Direct expenses relating to the public offer-
ing of the Fund's Common and Preferred Shares were charged to
capital at the time of issuance of the shares.
(f) Non-income producing investments--Written and purchased
options are non-income producing investments.
(g) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital
gains are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). Effective January 1, 1994,
the investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc., an indirect wholly-owned subsidiary of
ML & Co. The limited partners are ML & Co. and Merrill Lynch In-
vestment Management, Inc. ("MLIM"), which is also an indirect
wholly-owned subsidiary of ML & Co.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and cer-
tain 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. For the six months
ended April 30, 1994, FAM earned fees of $310,762, of which $35,799
was voluntarily waived. FAM also reimbursed the Fund $1,041 for
additional expenses.
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, MLIM, Merrill Lynch, Pierce, Fenner & Smith
Inc. ("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term secu-
rities, for the six months ended April 30, 1994 were $27,911,650
and $37,731,590, respectively.
Net realized and unrealized losses as of April 30, 1994 were as
follows:
Realized Unrealized
Losses Losses
Long-term investments $(325,534) $(7,609,762)
--------- -----------
Total $(325,534) $(7,609,762)
========= ===========
As of April 30, 1994, net unrealized depreciation for Federal
income tax purposes aggregated $7,609,762, of which $114,625 re-
lated to appreciated securities and $7,724,387 related to depre-
ciated securities. The aggregate cost of investments at April 30,
1994 for Federal income tax purposes was $124,541,688.
4. Capital Shares 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 capital without approval of holders of Common
Shares.
Common Shares
For the six-month period ended April 30, 1994, shares issued and out-
standing increased by 12,867 to 5,978,662 as a result of dividend
reinvestment. At April 30, 1994, total paid-in capital amounted to
$83,792,128.
Preferred Shares
Auction Market Preferred Shares ("AMPS") are Preferred Shares of
the Fund that entitle their holders to receive cash dividends at
an annual rate that may vary for the successive dividend periods.
The yield in effect at April 30, 1994 was 2.94%.
In connection with the offering of AMPS, the Fund reclassified 800
shares of unissued capital stock as AMPS. For the six months ended
April 30, 1994, there were 800 AMPS authorized, issued and outstanding
with a liquidation preference of $50,000 per share, plus accumulated
and unpaid dividends of $69,849.
The Fund pays commissions to certain broker-dealers at the end of
each auction at the annual rate of one-quarter of 1% calculated on
the proceeds of each auction. For the six months ended April 30, 1994,
MLPF&S, an affiliate of MLIM, earned $49,409 as commissions.
5. Subsequent Event:
On May 6, 1994, the Fund's Board of Trustees declared an ordinary
income dividend to Common Shareholders in the amount of $0.065428
per share, payable on May 27, 1994 to shareholders
of record as of May 17, 1994.
PER SHARE INFORMATION
<TABLE>
Per Share Selected
Quarterly Financial
Data*
<CAPTION>
Net Realized Unrealized Dividends/Distributions
Investment Gains Gains Net Investment Income Capital Gains
For the Period Income (Losses) (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
April 30, 1993++ to July 31, 1993 $.24 $ .01 $ .15 $.13 $.03 -- --
August 1, 1993 to October 31, 1993 .25 .11 .63 .22 .04 -- --
November 1, 1993 to January 31, 1994 .26 .06 .12 .22 .02 $.11 $.02
February 1, 1994 to April 30, 1994 .24 (.11) (2.17) .21 .04 -- --
<CAPTION>
Net Asset Value Market Price**
For the Period High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
April 30, 1993++ to July 31, 1993 $14.58 $14.05 $15.25 $15.00 202
August 1, 1993 to October 31, 1993 15.32 14.26 16.00 14.75 294
November 1, 1993 to January 31, 1994 15.06 14.41 15.25 13.50 656
February 1, 1994 to April 30, 1994 15.00 12.06 15.25 12.00 515
<FN>
+Commencement of Operations.
*Calculations are based upon Common Shares outstanding at the end of each period.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
