MUNIVEST
FLORIDA FUND
FUND LOGO
Annual Report
October 31, 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 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.
MuniVest
Florida Fund
Box 9011
Princeton, NJ
08543-9011
MUNIVEST FLORIDA FUND
The Benefits and
Risks of
Leveraging
<PAGE>
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
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.
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
<PAGE>
Custodian
The Bank of New York
90 Washington Street
New York, New York 10286
NYSE Symbol
MVS
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
DEAR SHAREHOLDER
For the year ended October 31, 1994, the Common Shares of
MuniVest Florida Fund earned $0.941 per share income dividends,
which includes earned and unpaid dividends of $0.069. This
represents a net annualized yield of 7.98%, based on a month-end
net asset value of $11.82 per share. Over the same period, the
total investment return on the Fund's Common Stock was -15.07%,
based on a change in per share net asset value from $14.99 to
$11.82, and assuming reinvestment of $0.944 per share income
dividends.
For the six-month period ended October 31, 1994, the total
investment return on the Fund's Common Shares was -4.15%, based
on a change in per share net asset value from $12.77 to $11.82,
and assuming reinvestment of $0.404 per share income dividends.
The average yield of the Fund's Auction Market Preferred Shares
for the six months ended October 31, 1994 was 2.866%.
The Environment
As discussed in our last report to shareholders, the Federal
Reserve Board moved to counteract inflationary pressures by
tightening monetary policy. This trend continued during the May--
October period. Despite the series of preemptive strikes against
inflation by the central bank, concerns of increasing inflationary
pressures continued to prompt volatility in the US capital markets
during the period. In addition, the weakness of the US dollar in
foreign exchange markets prolonged stock and bond market declines.
<PAGE>
Ongoing strength in the manufacturing sector and better-than-
expected economic results continue to fuel speculation that the
Federal Reserve Board will continue to raise short-term interest
rates in the months ahead. However, although consumer spending is
increasing, it is doing so at a lower rate than has been the case
in recent economic recoveries. In the weeks ahead, investors will
continue to assess economic data and inflationary trends in order
to gauge whether further increases in short-term interest rates
are imminent. Continued indications of moderate and sustainable
levels of economic growth would be positive for the US capital
markets. At the same time, greater US dollar stability in foreign
exchange markets would help to dampen expectations of
significantly higher short-term interest rates.
The Municipal Market
The long-term tax-exempt market continued to erode throughout the
three months ended October 31, 1994. As measured by the Bond
Buyer Revenue Bond Index, yields on A-rated municipal revenue
bonds maturing in 30 years rose by almost 50 basis points (0.50%)
to 6.95% during the October 31, 1994 quarter. This represents the
highest level in tax-exempt bond yields in over two years. US
Treasury bonds suffered even greater declines during the quarter
as Treasury bond yields rose approximately 60 basis points to end
the quarter at 8.00%.
The tax-exempt bond market reacted negatively throughout the
October quarter to indications that, despite a series of interest
rate increases by the Federal Reserve Board, the strength of the
domestic economy seen in recent quarters has not yet been
significantly reduced. While inflationary pressures have remained
well contained, additional Federal Reserve Board actions have
been expected both to ensure that domestic economic growth is
eventually confined to current levels and to assure nervous
financial markets of its anti-inflationary intentions.
Fortunately, while the demand for tax-exempt bonds has declined
somewhat in recent months, new bond issuance has remained greatly
reduced. During the quarter ended October 31, 1994, only $32
billion in long-term tax-exempt securities were issued, a decline
of over 50% versus the October 31, 1993 quarter. Similarly, for
the six months ended October 31, 1994, only $75 billion in
municipal securities were underwritten, a decline of over 50%
versus the comparable period a year earlier. This reduction in
issuance in recent quarters has allowed the municipal bond market
to react to both the decline in investor demand and the rise in
fixed-income yields in a more orderly fashion than in similar
situations in the past, particularly during 1987.
<PAGE>
Long-term tax-exempt revenue bonds currently yield approximately
7%, or almost 11.5% on an after-tax equivalent basis, to an
investor in the 39.6% Federal income tax bracket. As inflation
has only marginally increased in the past year, real tax-exempt
interest rates have risen dramatically. The Federal Reserve Board
appears committed to maintaining inflation at or below its
current levels. Indeed, most forecasts expect inflation to remain
in its present range of 3%--4% throughout 1995 and, potentially,
for the remainder of the 1990s. Real after-tax equivalent
interest rates exceeding 7% represent historically attractive
municipal investments for long-term investors.
Federal Reserve Board actions taken thus far have yet to fully
impact US domestic growth and expected additional actions should
promote only a modest economic expansion within a benign
inflationary context beginning sometime early in 1995. Within
such an environment, it is unlikely that tax-exempt interest
rates will remain at their current attractive levels. Tax-exempt
bond issuance is unlikely to return to the historic high levels
seen in 1992 and 1993, while investor demand should return as
markets stabilize. As we have discussed in earlier reports,
the total number of tax-exempt bonds outstanding is scheduled to
decline dramatically in 1994 and 1995 as a result of both regular
bond maturities and early redemptions. Investors seeking tax-
advantaged issues are likely to find it very difficult to obtain
currently available tax-exempt yields as the current supply/demand
balance is unlikely to be maintained in the coming quarters.
Portfolio Strategy
During the six-month period ended October 31, 1994, with the
volatile municipal market, our strategy shifted to a more neutral
posture on interest rates. We achieved this by selling deep
discount bonds, which are more interest rate sensitive. We placed
greater emphasis on current coupon bonds and premium bonds. We
maintained this strategy throughout the past six months, enhancing
the Fund's current yield while reducing its interest rate
volatility. New issuance in the Florida market was down to little
more than $3 billion, representing a decline of nearly 68% from
the same time last year.
Short-term tax-exempt interest rates traded in a range between
2.75%--3.375% for the last six months, despite the series of
short-term interest rate increases engineered by the Federal
Reserve Board. The demand for tax-exempt cash equivalents has
been very strong for most of this year and is expected to remain
so in the coming quarters. The tax-exempt yield curve remained
very positive throughout this year, consequently the leverage of
the Preferred Stock has continued to have a very positive impact
on the yield paid to 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.)
<PAGE>
We appreciate your ongoing interest in MuniVest Florida Fund, and
we look forward to serving your investment needs and objectives
in the months and years to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
November 23, 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 below and
at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DATES Daily Adjustable Tax-Exempt Securities
HFA Housing Finance Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
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>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<C> <C> <C> <S> <C>
Florida--96.0%
AAA Aaa $ 5,000 Brevard County, Florida, IDR (Nui Corporation Project), AMT, 6.40% due 10/01/2024 (b) $ 4,826
NR* Aaa 2,500 Broward County, Florida, Housing Finance Authority, S/F Mortgage Revenue Bonds, AMT,
6.55% due 8/01/2019 (e) (f) 2,374
A+ A1 9,000 Citrus County, Florida, PCR, Refunding (Florida Power Corporation--Crystal River),
Series B, 6.35% due 2/01/2022 8,606
A+ A2 2,250 Dade County, Florida, IDA, Solid Waste Disposal Revenue Bonds (Florida Power and
Light Company Project), AMT, 7.15% due 2/01/2023 2,302
AAA Aaa 4,000 Dade County, Florida, Professional Sports Franchise Facilities, Tax Revenue Bonds,
Series B, 6% due 10/01/2022 (d) 3,714
AAA Aaa 3,210 Dade County, Florida, Seaport Revenue Bonds, UT, 6.50% due 10/01/2026 (b) 3,167
NR* Aaa 2,400 Duval County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT, 6.70% due 10/01/2026 (f) 2,288
AAA Aaa 2,000 Edgewater, Florida, Water and Sewer Revenue Refunding Bonds, 5.50% due 10/01/2021 (c) 1,698
BBB Baa1 1,500 Escambia County, Florida, PCR (Champion International Corporation Project), AMT,
6.90% due 8/01/2022 1,429
AAA Aaa 2,000 Escambia County, Florida, PCR, Refunding (Gulf Power Company Project),
5.80% due 6/01/2023 (c) 1,767
AAA Aaa 1,250 Escambia County, Florida, Sales Tax Revenue Refunding Bonds, 5.80% due 1/01/2015 (d) 1,131
AAA NR* 2,500 Florida HFA (Hammocks Place Project), Series C, 6.25% due 12/01/2006 2,500
AA Aa 1,750 Florida HFA, S/F Mortgage Revenue Bonds, AMT, Series B, 6.65% due 7/01/2026 1,649
Florida State Board of Education, Capital Outlay Revenue Bonds:
AA Aa 6,430 (Public Education), Series A, 6.75% due 6/01/2021 6,475
AA Aa 3,750 (Public Education), Series B, 6.70% due 6/01/2022 3,754
AA Aa 3,000 (Public Education), UT, Series C, 6.625% due 6/01/2022 2,998
AA Aa 1,000 UT, Series E, 5.80% due 6/01/2024 885
AAA Aaa 2,000 Florida State Municipal Power Agency Revenue Bonds (Stanton II Project),
6% due 10/01/2002 (b) (h) 2,070
AAA Aaa 1,000 Gainesville, Florida, Guaranteed Entitlement, Revenue Refunding Bonds,
5.50% due 8/01/2017 (b) 859
Gainesville, Florida, Utility Systems Revenue Bonds, Series A:
AA Aa 1,900 6.50% due 10/01/2012 1,894
AA Aa 5,025 6.50% due 10/01/2022 4,911
AAA Aaa 1,500 Hillsborough County, Florida, Aviation Authority, Revenue Refunding Bonds (Tampa
International Airport), Series B, 5.60% due 10/01/2019 (d) 1,298
<PAGE>
A A 6,930 Hillsborough County, Florida, Capital Improvement Revenue Bonds (County Center
Project), Second Series, 6.75% due 7/01/2022 6,801
AAA Aaa 3,215 Hillsborough County, Florida, Hospital Authority, Revenue Refunding Bonds (Tampa
General Hospital Project), 6.375% due 10/01/2013 (g) 3,158
AAA Aaa 2,000 Hillsborough County, Florida, Utility Revenue Refunding Bonds, Series B,
6.50% due 8/01/2016 (c) 1,984
AAA Aaa 1,375 Jacksonville, Florida, Capital Improvement Revenue Bonds, COP (Gator Bowl Project),
6% due 10/01/2025 (b) 1,272
AA Aa1 5,300 Jacksonville, Florida, Electric Authority, Revenue Refunding Bonds (Saint Johns
River Power), 2-Series 7, 5.50% due 10/01/2014 4,616
AAA Aaa 1,000 Kissimmee, Florida, Utility Authority Electric System, Revenue Refunding and
Improvement Bonds, 5.25% due 10/01/2018 (d) 818
AAA Aaa 1,900 Lee County, Florida, Capital and Transportation Facilities, Revenue Refunding Bonds,
Series A, 5.60% due 10/01/2021 (c) 1,634
A1 VMIG1 900 Martin County, Florida, PCR, Refunding (Florida Power and Light Company Project),
VRDN, 3.65% due 9/01/2024 (a) 900
BBB Baa 1,000 Nassau County, Florida, PCR, Refunding (ITT Rayonier, Inc. Project),
6.20% due 7/01/2015 895
AAA Aaa 2,000 Orange County, Florida, Health Facilities Authority, Revenue Refunding Bonds
(Orlando Regional Healthcare), Series A, 6% due 11/01/2024 (c) 1,837
AAA NR* 2,070 Orange County, Florida, M/F, HFA Revenue Refunding Bonds (Tealwood Apartments),
Series B, 6.40% due 2/01/2030 (f) 1,913
AAA Aaa 2,000 Orange County, Florida, Tourist Development, Tax Revenue Bonds, Series B,
6% due 10/01/2024 (c) 1,851
NR* VMIG1 300 Palm Beach County, Florida, Water and Sewer Revenue Bonds, VRDN,
3.70% due 10/01/2011 (a) 300
A1 VMIG1 2,300 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding Bonds,
DATES (Pooled Hospital Loan Program), 3.70% due 12/01/2015 (a) 2,300
Pinellas County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program),
AMT, Series A (e) (f):
NR* Aaa 2,000 6.45% de 8/01/2018 1,884
NR* Aaa 2,500 6.55% due 8/01/2027 2,341
A1 VMIG1 2,200 Saint Lucie County, Florida, PCR, Refunding (Florida Power and Light Company
Project), VRDN, 3.65% due 1/01/2026 (a) 2,200
<PAGE>
A+ A2 1,000 Saint Lucie County, Florida, Solid Waste Disposal Revenue Bonds (Florida Power and
Light Company Project), AMT, 6.70% due 5/01/2027 963
AAA Aaa 2,580 Saint Petersburg, Florida, Health Facilities Authority Revenue Bonds (Allegany
Health System), 5.75% due 12/01/2021 (c) 2,255
Titusville, Florida, Water and Sewer Revenue Refunding Bonds (c):
AAA Aaa 1,500 6.20% due 10/01/2014 1,458
AAA Aaa 2,500 6% due 10/01/2024 2,314
Total Investments (Cost--$111,863)--96.0% 106,289
Other Assets Less Liabilities--4.0% 4,385
--------
Net Assets--100.0% $110,674
========
<FN>
(a) The interest rate is subject to change periodically based upon the prevailing market rate.
The interest rate shown is the rate in effect at October 31, 1994.
(b) AMBAC Insured.
(c) MBIA Insured.
(d) FGIC Insured.
(e) FNMA Insured.
(f) GNMA Insured.
(g) FSA Insured.
(h) Prerefunded.
*Not Rated.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of October 31, 1994
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$111,862,673) (Note 1a) $106,289,185
Receivables:
Securities sold $ 11,334,400
Interest 1,554,798 12,889,198
------------
Deferred organization expenses (Note 1e) 18,728
Prepaid expenses and other assets 9,306
------------
Total assets 119,206,417
------------
<PAGE>
Liabilities: Payables:
Securities purchased 6,729,115
Dividends to shareholders (Note 1g) 86,648
Investment adviser (Note 2) 44,835 6,860,598
------------
Accrued expenses and other liabilities 1,671,470
------------
Total liabilities 8,532,068
------------
Net Assets: Net assets $110,674,349
============
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 83,198,076
Undistributed investment income--net 484,364
Accumulated realized capital losses--net (Note 5) (8,032,469)
Unrealized depreciation on investments--net (5,573,488)
------------
Total--Equivalent to $11.82 net asset value per Common Share
(market price--$10.00) 70,674,349
------------
Total capital $110,674,349
============
<FN>
*Auction Market Preferred Shares.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended October 31, 1994
<S> <S> <C> <C>
Investment
Income (Note 1d): Interest and amortization of premium and discount earned $ 6,867,552
Expenses: Investment advisory fees (Note 2) $ 601,593
Commission fees (Note 4) 101,088
Professional fees 52,524
Printing and shareholder reports 41,961
Transfer agent fees 38,641
Accounting services (Note 2) 31,804
Trustees' fees and expenses 22,872
Listing fees 16,001
<PAGE> Custodian fees 9,704
Pricing fees 7,381
Amortization of organization expenses (Note 1e) 5,357
Other 14,675
------------
Total expenses before reimbursement 943,601
Reimbursement of expenses (Note 2) (36,840)
------------
Total expenses after reimbursement 906,761
------------
Investment income--net 5,960,791
------------
Realized & Realized loss on investments--net (8,032,465)
Unrealized Loss on Change in unrealized appreciation/depreciation on investments--net (10,213,744)
Investments--Net ------------
(Notes 1d & 3): Net Decrease in Net Assets Resulting from Operations $(12,285,418)
============
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the For the Period
Year Ended April 30, 1993++
Increase (Decrease) in Net Assets: Oct. 31, 1994 to Oct. 31, 1993
<S> <S> <C> <C>
Operations: Investment income--net $ 5,960,791 $ 2,882,402
Realized gain (loss) on investments--net (8,032,465) 732,849
Change in unrealized appreciation/depreciation on investments--net (10,213,744) 4,640,256
------------ ------------
Net increase (decrease) in net assets resulting from operations (12,285,418) 8,255,507
------------ ------------
Dividends & Investment income--net:
Distributions Common Shares (5,007,822) (2,049,463)
To Shareholders Preferred Shares (909,680) (391,864)
(Note 1g): Realized gain on investments--net:
Common Shares (633,221) --
Preferred Shares (99,632) --
------------ ------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (6,650,355) (2,441,327)
------------ ------------
<PAGE>
Capital Share Net proceeds from issuance of Common Shares -- 83,656,000
Transactions Proceeds from issuance of Preferred Shares -- 40,000,000
(Notes 1e & 4): Offering and underwriting costs resulting from the issuance of Preferred Shares 3,814 (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 171,834 123,524,103
------------ ------------
Net Assets: Total increase (decrease) in net assets (18,763,939) 129,338,283
Beginning of period 129,438,288 100,005
------------ ------------
End of period* $110,674,349 $129,438,288
============ ============
<FN>
*Undistributed investment income--net $ 484,364 $ 441,075
============ ============
++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 For the Period
Year Ended April 30, 1993++
Increase (Decrease) in Net Asset Value: Oct. 31, 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 1.00 .49
Realized and unrealized gain (loss) on investments--net (3.05) .90
------------ ------------
Total from investment operations (2.05) 1.39
------------ ------------
Less dividends and distributions to Common Shareholders:
Investment income--net (.84) (.35)
Realized gain on investments--net (.11) --
------------ ------------
Total dividends and distributions (.95) (.35)
------------ ------------
Capital charge resulting from issuance of Common Shares -- (.04)
------------ ------------
Effect of Preferred Share activity++:
Dividends and distributions to Preferred Shareholders:
Investment income--net (.15) (.07)
Realized gain on investments--net (.02) --
Capital charge resulting from issuance of Preferred Shares -- (.12)
------------ ------------
Total effect of Preferred Share activity (.17) (.19)
------------ ------------
<PAGE> Net asset value, end of period $ 11.82 $ 14.99
============ ============
Market price per share, end of period $ 10.00 $ 15.00
============ ============
Total Investment Based on market price per share (28.20%) 2.37%+++
Return:** ============ ============
Based on net asset value per share (15.07%) 8.22%+++
============ ============
Ratios to Average Expenses, net of reimbursement .75% .48%*
Net Assets:*** ============ ============
Expenses .78% .83%*
============ ============
Investment income--net 4.94% 4.85%*
============ ============
Supplemental Net assets, net of Preferred Shares, end of period (in thousands) $ 70,674 $ 89,438
Data: ============ ============
Preferred Shares outstanding, end of period (in thousands) $ 40,000 $ 40,000
============ ============
Portfolio turnover 100.98% 23.23%
============ ============
Dividends Per Investment income--net $ 1,137 $ 490
Share on Preferred
Shares Outstanding:
<FN>
*Annualized.
**Total investment returns based on market value, which can be significantly greater
or lesser than the net asset value, result in substantially different returns. Total
investment returns exclude the effects of sales loads.
***Do not reflect the effect of dividends to Preferred Shareholders.
++Commencement of Operations.
++++The Fund's Preferred Shares were issued on June 1, 1993.
+++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
Investment Company Act of 1940 as a non-diversified, closed-end
management investment company. The Fund's Common Shares are listed
on the New York Stock Exchange under the symbol MVS. The following
is a summary of significant accounting policies followed by the
Fund.
<PAGE>
(a) Valuation of investments--Municipal bonds are traded
primarily in the over-the-counter markets and are valued at the
most recent bid price or yield equivalent as obtained by the
Fund's pricing service from dealers that make markets in such
securities. Financial futures contracts, which are traded on
exchanges, are valued at their closing prices as of the close of
such exchanges. Options, which are traded on exchanges, are
valued at their last sale price as of the close of such exchanges
or, lacking any sales, at the last available bid price. Securities
with remaining maturities of sixty days or less are valued at
amortized cost, which approximates market value. Securities for
which market quotations are not readily available are valued at
fair value as determined in good faith by or under the direction
of the Board of Trustees of the Fund.
(b) Financial futures contracts--The Fund may purchase or sell
interest rate futures contracts and options on such futures
contracts for the purpose of hedging the market risk on existing
securities or the intended purchase of securities. Futures
contracts are contracts for delayed delivery of securities at a
specific future date and at a specific price or yield. Upon
entering into a contract, the Fund deposits and maintains as
collateral such initial margin as required by the exchange on
which the transaction is effected. Pursuant to the contract, the
Fund agrees to receive from or pay to the broker an amount of
cash equal to the daily fluctuation in value of the contract.
Such receipts or payments are known as variation margin and are
recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund records a realized gain or loss
equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.
(c) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income
tax provision is required.
(d) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are
entered into (the trade dates). Interest income is recognized on
the accrual basis. Discounts and market premiums are amortized
into interest income. Realized gains and losses on security
transactions are determined on the identified cost basis.
(e) Deferred organization 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 Shares were charged
to capital at the time of issuance of the shares.
<PAGE>
(f) Non-income producing investments--Written and purchased
options are non-income producing investments.
(g) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital
gains are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). Effective January 1, 1994,
the investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill Lynch &
Co., Inc. ("ML & Co."). The general partner of FAM is Princeton
Services, Inc. (PSI), an indirect wholly-owned subsidiary of ML &
Co. The limited partners are ML & Co. and Fund Asset Management,
Inc. ("FAMI"), which is also an indirect wholly-owned
subsidiary of ML & Co.
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. For the year
ended October 31, 1994, FAM earned fees of $601,593, 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, FAMI, PSI, MLIM, Merrill Lynch, Pierce, Fenner
& Smith Inc. ("MLPF&S"), and/or ML & Co.
NOTES TO FINANCIAL STATEMENTS (concluded)
3. Investments:
Purchases and sales of investments, excluding short-term secu-
rities, for the year ended October 31, 1994 were $115,445,516 and
$123,776,594, respectively.
Net realized and unrealized losses as of October 31, 1994 were as
follows:
Realized Unrealized
Losses Losses
Long-term investments $(7,690,394) $(5,573,488)
Financial futures contracts (342,071) --
----------- -----------
Total $(8,032,465) $(5,573,488)
=========== ===========
<PAGE>
As of October 31, 1994, net unrealized depreciation for Federal
income tax purposes aggregated $5,573,488, of which $21,370
related to appreciated securities and $5,594,858 related to
depreciated securities. The aggregate cost of investments at
October 31, 1994 for Federal income tax purposes was
$111,862,673.
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 year ended October 31, 1994, shares issued and outstanding
increased by 12,867 to 5,978,662 as a result of dividend
reinvestment. At October 31, 1994, total paid-in capital amounted to
$83,795,942.
Preferred Shares
Auction Market Preferred Shares ("AMPS") are Preferred Shares
of the Fund that entitle their holders to receive cash dividends
at an annual rate that may vary for the successive dividend
periods. The yield in effect at October 31, 1994 was 2.70%.
In connection with the offering of AMPS, the Fund reclassified
800 shares of unissued capital stock as AMPS. For the year ended
October 31, 1994, there were 800 AMPS authorized, issued and out-
standing with a liquidation preference of $50,000 per share, plus
accumulated and unpaid dividends of $71,649. Effective December
1, 1994, as a result of a two-for-one stock split there will be
1,600 AMPS shares with a liquidation preference of $25,000 per
share.
The Fund pays commissions to certain broker-dealers at the end of
each auction at the annual rate ranging from 0.25% to 0.375%,
calculated on the proceeds of each auction. For the year ended
October 31, 1994, MLPF&S, an affiliate of FAM earned $98,495 as
commissions.
5. Capital Loss Carryforward:
At October 31, 1994, the Fund had a capital loss carryforward of
approximately $8,011,000, all of which expires in 2002. This
amount will be available to offset like amounts of any future
taxable gains.
<PAGE>
6. Subsequent Event:
On November 8, 1994, the Fund's Board of Trustees declared an
ordinary income dividend to Common Shareholders in the amount of
$0.068969 per share, payable on November 29, 1994 to shareholders
of record as of November 18, 1994.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
MuniVest Florida Fund:
We have audited the accompanying statement of assets, liabilities
and capital, including the schedule of investments, of MuniVest
Florida Fund as of October 31, 1994, the related statements of
operations for the year then ended and changes in net assets and the
financial highlights for the year then ended and for the period
April 30, 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, 1994 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position
of MuniVest Florida Fund as of October 31, 1994, the results of its
operations, the changes in its net assets, and the financial
highlights for the respective stated periods in conformity with
generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
December 5, 1994
</AUDIT-REPORT>
<PAGE>
IMPORTANT TAX INFORMATION (unaudited)
All of the net investment income distributions paid monthly by
MuniVest Florida Fund during its taxable year ended October 31,
1994, qualify as tax-exempt interest dividends for Federal income
tax purposes. Additionally, the following table summarizes the
per share capital gain distributions paid by the fund during the
year:
Payable Short-Term Long-Term
Date Capital Gains Capital Gains
Common Shareholders 12/30/93 $0.106142 --
Preferred Shareholders 11/19/93 $35.73 --
11/26/93 $31.75 --
12/03/93 $31.75 --
12/17/93 $21.82 --
12/23/93 $ 3.49 --
Please retain this information for your records.
<TABLE>
PER SHARE INFORMATION (unaudited)
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 .01 $.11 $.02
February 1, 1994 to April 30, 1994 .24 (.11) (2.17) .22 .04 -- --
May 1, 1994 to July 31, 1994 .25 (.43) .73 .20 .05 -- --
August 1, 1994 to October 31, 1994 .25 (.86) (.39) .20 .05 -- --
<PAGE>
<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
May 1, 1994 to July 31, 1994 13.56 12.39 13.00 11.75 795
August 1, 1994 to October 31, 1994 13.09 11.82 12.875 9.875 892
<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>
