MUNIVEST
FLORIDA FUND
FUND LOGO
Semi-Annual Report
April 30, 1995
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.
<PAGE>
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 dividends at prevailing short-term interest rates, and
invests the proceeds in long-term municipal bonds. The interest earned on
these investments is paid to Common Shareholders in the form of dividends, and
the value of these portfolio holdings is reflected in the per share net asset
value of the Fund's Common Shares. However, in order to benefit Common
Shareholders, the yield curve must be positively sloped; that is, short-term
interest rates must be lower than long-term interest rates. At the same time,
a period of generally declining interest rates will benefit Common
Shareholders. If either of these conditions change, then the risks of
leveraging will begin to outweigh the benefits.
To illustrate these concepts, assume a fund's Common Share capitalization of
$100 million and the issuance of Preferred Shares for an additional $50
million, creating a total value of $150 million available for investment in
long-term municipal bonds. If prevailing short-term interest rates are
approximately 3% and long-term interest rates are approximately 6%, the yield
curve has a strongly positive slope. The fund pays dividends on the $50
million of Preferred Shares based on the lower short-term interest rates. At
the same time the fund's total portfolio of $150 million earns the income
based on long-term interest rates. Of course, increases in short-term interest
rates would reduce (and even eliminate) the dividends on the Common Shares.
<PAGE>
In this case, the dividends paid to Preferred Shareholders are significantly
lower than the income earned on the fund's long-term investments, and
therefore the Common Shareholders are the beneficiaries of the incremental
yield. However, if short-term interest rates rise, narrowing the differential
between short-term and long-term interest rates, the incremental yield pick-up
on the Common Shares will be reduced or eliminated completely. 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
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
<PAGE>
Preferred Shares:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
TO OUR SHAREHOLDERS
For the six-month period ended April 30, 1995, the Common Shares of MuniVest
Florida Fund earned $0.380 per share income dividends, which include earned
and unpaid dividends of $0.061. This represents a net annualized yield of
6.11%, based on a month-end per share net asset value of $12.53. Over the same
period, the total investment return on the Fund's Common Shares was +9.80%,
based on a change in per share net asset value from $11.82 to $12.53, and
assuming reinvestment of $0.388 per share income dividends.
For the six-month period ended April 30, 1995, the Fund's Auction Market
Preferred Shares had an average yield of 3.53%.
The Environment
During the six months ended April 30, 1995, the perception that the US economy
was overheating and inflationary pressures were increasing gave way to a more
benign economic outlook. With more signs of slowing growth, investors now
appear to be forecasting a "soft landing" for the US economy. Although gross
domestic product was reported to have increased at a revised 5.1% rate during
the final quarter of 1994, declines in other indicators such as new home sales
and durable goods orders registered thus far in 1995 have led investors to
anticipate that the economy is losing enough momentum to keep inflation under
control and preclude further significant monetary policy tightening by the
Federal Reserve Board. A further indication of a slowing economy was the
reported decline in the Index of Leading Economic Indicators for March.
As US stock and bond markets have risen on more positive economic news, the
value of the US dollar has reached new lows relative to the yen and the
Deutschemark. Persistent trade deficits and exports of capital from the United
States have kept the US currency in a decade-long decline relative to the
Japanese and German currencies. Over the longer term, since the United States
has the highest productivity among industrialized nations and among the lowest
labor costs, demand for US dollar-denominated assets may improve. However, a
reduction of the still-widening US trade deficit may be necessary before the
US dollar appreciates substantially relative to the yen and the Deutschemark.
<PAGE>
The first months of 1995 have been very positive for the stock and bond
markets. Continued signs of a moderating expansion and well-contained
inflationary pressures would provide further assurance that the peak in
interest rates is behind us. On the other hand, indications of reaccelerating
growth and further significant monetary policy tightening by the Federal
Reserve Board would be a decided negative for the US financial markets.
The Municipal Market
During the six-month period ended April 30, 1995, the tax-exempt bond market
gradually recouped much of the losses sustained during 1994. Signs of a
weakening domestic economy and ongoing moderate inflationary pressures have
fostered an environment of declining interest rates. Since October 31, 1994,
A-rated, uninsured municipal revenue bond yields, as measured by the Bond
Buyer Revenue Bond Index, have declined over 65 basis points (0.65%) to
close the six-month period ended April 30, 1995 at 6.29%. Tax-exempt bond
yields initially continued to climb in late 1994, reaching a high of 7.37% in
late November 1994. Municipal bond yields have since declined over 100 basis
points from their recent highs and are presently lower than they were a year
ago. US Treasury bond yields have experienced similar declines over the last
six months to end the April period at 7.34%.
Much of the recent improvement in the tax-exempt bond market, however, has
occurred over the last three months. During this most recent quarter,
municipal bond yields have fallen approximately 50 basis points, while US
Treasury bond yields declined only 35 basis points. Tax-exempt bond yields
declined more than their taxable counterparts in recent months, largely in
response to the significant decline in new bond issuance in recent quarters.
Over the last six months, less than $60 billion in new long-term municipal
securities were underwritten, a decline of nearly 45% versus the comparable
period a year earlier. Issuance was particularly low this past January and
February, with monthly volume of less than $8 billion. These levels are
the lowest monthly totals since the mid-1980s.
To compound the municipal market's already strong technical posture, both
institutional and individual investors have seen significant cash inflows in
recent months. These assets were derived from regular coupon payments, bond
maturities and the proceeds from early bond calls and redemptions. It has been
estimated that investors received over $20 billion in principal redemptions
and coupon income in January 1995 alone. With monthly issuance in the $10
billion range thus far this year, the current supply/demand imbalance has
dominated the municipal market and bond prices have risen accordingly. The
tax-exempt bond market's technical position is likely to remain very strong
throughout most of 1995. Investors are expected to receive almost $40 billion
in principal and coupon payments on July 1, 1995. Investor proceeds from all
sources have been estimated to exceed $200 billion for all of 1995. Estimates
of total new bond issuance for 1995 have continued to be lowered with most
estimates now in the $125 billion range. Investors should find it increasingly
difficult to replace existing holdings as they mature and to reinvest coupon
income in such an environment.
<PAGE>
The municipal bond market's outperformance thus far this year caused the
tax-exempt market to become temporarily expensive relative to its taxable
counterpart in late April. Investor concerns regarding the international
currency situation and the future impact of proposed revisions to US taxation
policies upon the tax advantage of municipal bonds have combined to cause
tax-exempt bond yields to increase marginally in recent weeks. Municipal bond
yields rose approximately 15 basis points by April 30, 1995 from their lows in
mid-April 1995. Long-term US Treasury bond yields have remained essentially
stable.
Such an underperformance by the tax-exempt bond market is likely to be limited
in duration. The recent increase in tax-exempt bond yields has already begun
to attract institutional investors since some municipal bonds yielding in
excess of 85% of US Treasury bond yields are again available. Also, concerns
regarding the implication for municipal bonds' tax advantage resulting from
various proposed tax law changes (for example, flat-tax, value-added tax or
national sales tax) are all likely to quickly recede as investors realize that
such, if any, changes are unlikely to be enacted before late 1996 at the
earliest. Long-term investors will also recall 1986 when similar tax proposals
were made and tax-exempt bond yields initially rose and then quickly fell.
Investors are likely to view the current situation as an opportunity to
purchase very attractively priced tax-advantaged products. This should cause
municipal bond yields to quickly return to their more historic relationship.
Portfolio Strategy
During the six months ended April 30, 1995, with the continued decline of
interest rates, we shifted our portfolio strategy from a neutral posture on
interest rates to one that is more constructive on interest rates. We achieved
this by extending the duration of the Fund in order to seek to enhance any
market appreciation. New-issue volume in the Florida tax-exempt market was
just over $3.5 billion in bonds for the six-month period. This represents a
decline of approximately 35% versus the same six-month period last year. With
the decline of new issuance in Florida and with no significant increase on
the horizon, we kept the Fund's cash reserve position at approximately 1%.
Looking forward, our strategy will continue to be to seek to enhance the total
return of the Fund as yields continue to decline.
Florida tax-exempt short-term interest rates traded in the 3.50%--4.50% range
throughout the past six months. While short-term interest rates have risen
significantly over the past year, it is important to note that the municipal
yield curve has remained steeply positive. This has produced a material yield
advantage to the Common Shareholder. However, should the spread between
short-term and long-term interest rates narrow, the benefits of the leverage
will diminish and, as a result, reduce the yield of the Fund's Common Shares.
(For a complete explanation of the benefits and risks of leveraging, see
page 1 of this report to shareholders.)
<PAGE>
In Conclusion
We appreciate your ongoing interest in MuniVest Florida Fund, and we look
forward to serving your investment needs in the months and years to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
May 23, 1995
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.
AMT Alternative Minimum Tax (subject to)
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
S/F Single-Family
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
Florida--96.3%
<S> <S> <C> <S> <C>
AAA Aaa $ 3,000 Arcadia, Florida, Dedicated Pool Local Government Revenue Refunding Bonds,
5.25% due 12/01/2015 (d) $ 2,713
NR* VMIG1++ 600 Atlantic Beach, Florida, Revenue Refunding and Improvement Bonds (Fleet Landing),
VRDN, Series B, 5.25% due 10/01/2024 (a) 600
AAA Aaa 5,000 Brevard County, Florida, IDR (Nui Corporation Project), AMT, 6.40% due 10/01/2024 (b) 5,077
AAA Aaa 1,900 Brevard County, Florida, Utility Revenue Refunding Bonds, 5.25% due 3/01/2014 (b) 1,744
AAA NR* 1,400 Broward County, Florida, HFA, Revenue Bonds, AMT, Series A, 7.35% due 3/01/2023 (e) (f) 1,465
A+ A1 9,000 Citrus County, Florida, PCR, Refunding (Florida Power Corporation--Crystal River),
Series B, 6.35% due 2/01/2022 9,087
AAA Aaa 1,125 Dade County, Florida, Educational Facilities Authority, Exchangeable Revenue Bonds
(University of Miami), 7.65% due 4/01/2010 (c) 1,247
A+ VMIG1++ 600 Dade County, Florida, IDA, Exempt Facilities Revenue Refunding Bonds (Florida Power &
Light Co. Project), VRDN, 4.90% due 6/01/2021 (a) 600
A+ A2 2,250 Dade County, Florida, IDA, Solid Waste Disposal Revenue Bonds (Florida Power & Light
Co. Project), AMT, 7.15% due 2/01/2023 2,353
AAA Aaa 2,210 Dade County, Florida, Seaport Revenue Bonds, UT, 6.50% due 10/01/2026 (b) 2,286
Escambia County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT (f):
AAA Aaa 3,000 Refunding (Multi-County Program), 7% due 4/01/2028 (e) 3,091
NR* Aaa 2,230 Series A, 7.40% due 10/01/2023 2,333
BBB Baal 1,500 Escambia County, Florida, PCR (Champion International Corporation Project), AMT,
6.90% due 8/01/2022 1,527
AAA NR* 2,500 Florida HFA (Hammocks Place Project), Series C, 6.25% due 12/01/2006 2,559
NR* Aaa 1,925 Florida HFA, Home Ownership Revenue Bonds, AMT, Series G1, 7.90% due 3/01/2022 (f) 2,051
AAA Aaa 3,000 Florida Keys Aqueduct Authority, Water Revenue Refunding Bonds, 5.25% due 9/01/2021 (b) 2,671
Florida State Board of Education, Capital Outlay Public Education Revenue Bonds:
AA Aa 6,430 Series A, 6.75% due 6/01/2021 6,773
AA Aa 3,500 Series B, 6.70% due 6/01/2022 3,656
<PAGE>
AAA Aaa 2,000 Florida State Division, Board of Finance, Department of General Services Revenue Bonds
(Department of Natural Resource Preservation), Series 2000-A, 6.75% due 7/01/2013 (b) 2,121
AAA Aaa 1,000 Florida State Municipal Power Agency Revenue Refunding Bonds (Saint Lucie Project),
5.70% due 10/01/2016 (d) 962
AAA Aaa 1,000 Gainesville, Florida, Guaranteed Entitlement, Revenue Refunding Bonds, 5.50% 937
due 8/01/2017 (b)
Gainesville, Florida, Utilities Systems Revenue Bonds, Series A:
AA Aa 1,900 6.50% due 10/01/2012 2,008
AA Aa 5,025 6.50% due 10/01/2022 5,196
A A 6,500 Hillsborough County, Florida, Capital Improvement Revenue Bonds (County Center
Project), Second Series, 6.75% due 7/01/2022 6,756
A1 VMIG1++ 700 Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric Company--Gannon),
VRDN, 5% due 5/15/2018 (a) 700
AAA Aaa 2,000 Hillsborough County, Florida, Utility Revenue Refunding Bonds, Series B, 6.50%
due 8/01/2016 (c) 2,076
AAA Aaa 1,000 Indian River County, Florida, Water and Sewer Revenue Refunding Bonds, Series A, 5.25%
due 9/01/2024 (d) 886
AA Aa1 6,290 Jacksonville, Florida, Electric Authority Revenue Refunding Bonds (Saint John's River
Power), 2-Series 7, 5.50% due 10/01/2014 5,877
AA+ NR* 2,000 Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds
(Saint Luke's Hospital Association Project), 7.125% due 11/15/2020 2,136
NR* Aaa 3,250 Manatee County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT, Sub-Series 2,
7.75% due 5/01/2026 (f) (g) 3,522
A1 VMIG1++ 100 Martin County, Florida, PCR, Refunding (Florida Power & Light Co. Project), VRDN,
5.25% due 9/01/2024 (a) 100
BBB Baa 1,000 Nassau County, Florida, PCR, Refunding (ITT Rayonier, Inc. Project), 6.20% due 7/01/2015 960
AAA Aaa 4,500 Orlando & Orange County, Florida, Expressway Authority, Florida Expressway Revenue
Refunding Bonds (Senior Lien), 5.25% due 7/01/2014 (b) 4,118
AA- Aa 6,800 Orlando, Florida, Utilities Commission Water and Electric Revenue Refunding Bonds,
Sub-Series D, 6.75% due 10/01/2017 7,459
AAA Aaa 1,890 Palm Beach County, Florida, Criminal Justice Facilities Revenue Bonds, 7.20%
due 6/01/2015 (d) 2,189
NR* VMIG1++ 400 Palm Beach County, Florida, Water and Sewer Revenue Bonds, VRDN, 5% due 10/01/2011 (a) 400
<PAGE>
NR* Aa 1,200 Pensacola, Florida, Health Facilities Authority, Health Facilities Revenue Bonds
(Daughters of Charity National Health), 5.25% due 1/01/2011 1,094
AAA Aaa 1,200 Port Everglades Authority, Florida, Port Improvement Revenue Bonds, 7.125%
due 11/01/2016 (h) 1,373
A+ A2 1,000 Saint Lucie County, Florida, Solid Waste Disposal Revenue Bonds (Florida Power & Light
Co. Project), AMT, 6.70% due 5/01/2027 1,018
AAA Aaa 2,580 Saint Petersburg, Florida, Health Facilities Authority Revenue Bonds (Allegany Health
System Loan Program), 5.75% due 12/01/2021 (c) 2,442
AAA Aaa 2,000 Tampa, Florida, Revenue Bonds (Allegany Health System--Saint Joseph),
5.125% due 12/01/2023 (c) 1,716
AAA Aaa 3,100 Volusia County, Florida, Tourist Development Tax Revenue Refunding Bonds, 5.25%
due 12/01/2013 (c) 2,854
Total Investments (Cost--$108,884)--96.3% 110,733
Other Assets Less Liabilities--3.7% 4,203
--------
Net Assets--100.0% $114,936
========
<FN>
(a)The interest rate is subject to change periodically based upon the prevailing market rates.
The interest rate shown is the rate in effect at April 30, 1995.
(b)AMBAC Insured.
(c)MBIA Insured.
(d)FGIC Insured.
(e)FNMA Collateralized.
(f)GNMA Collateralized.
(g)FHLMC Collateralized.
(h)Escrowed to Maturity.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of April 30, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$108,883,657) (Note 1a) $110,733,404
Cash 90,183
Receivables:
Securities sold $ 6,150,057
Interest 1,681,897 7,831,954
------------
Deferred organization expenses (Note 1e) 18,728
Prepaid expenses and other assets 6,467
------------
Total assets 118,680,736
------------
Liabilities: Payables:
Securities purchased 3,549,045
Dividends to shareholders (Note 1f) 75,815
Investment adviser (Note 2) 44,720 3,669,579
------------
Accrued expenses and other liabilities 74,823
------------
Total liabilities 3,744,402
------------
Net Assets: Net assets $114,936,334
============
Capital: Capital Shares (unlimited number of shares of beneficial interest authorized)
(Note 4):
Preferred Shares, par value $.10 per share (1,600 shares of AMPS* issued
and outstanding at $25,000 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 438,240
Accumulated realized capital losses on investments--net (Note 5) (11,147,595)
Unrealized appreciation on investments--net 1,849,747
------------
Total--Equivalent to $12.53 net asset value per Common Share
(market price--$10.75) 74,936,334
------------
Total capital $114,936,334
============
<FN>
*Auction Market Preferred Shares.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 1995
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 3,473,718
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 278,888
Professional fees 47,681
Commission fees (Note 4) 46,407
Accounting services (Note 2) 20,494
Printing and shareholder reports 20,418
Transfer agent fees 16,483
Trustees' fees and expenses 12,624
Listing fees 9,164
Custodian fees 5,532
Pricing fees 3,555
Amortization of organization expenses (Note 1e) 2,605
Other 5,152
-----------
Total expenses 469,003
------------
Investment income--net 3,004,715
------------
Realized & Unreal- Realized loss on investments--net (3,115,127)
ized Gain (Loss) on Change in unrealized appreciation/depreciation on investments--net 7,423,236
Investments--Net ------------
(Notes 1b, 1d & 3): Net Increase in Net Assets Resulting from Operations $ 7,312,824
============
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: April 30, 1995 Oct. 31, 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 3,004,715 $ 5,960,791
Realized loss on investments--net (3,115,127) (8,032,465)
Change in unrealized appreciation/depreciation on investments--net 7,423,236 (10,213,744)
------------ ------------
Net increase (decrease) in net assets from operations 7,312,824 (12,285,418)
------------ ------------
<PAGE>
Dividends & Investment income--net:
Distributions to Common Shares (2,349,727) (5,007,822)
Shareholders Preferred Shares (701,112) (909,680)
(Note 1f): 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 (3,050,839) (6,650,355)
------------ ------------
Capital Share Offering and underwriting costs resulting from the issuance of Preferred -- 3,814
Transactions Shares Value of shares issued to Common Shareholders in reinvestment of
(Notes 1e & 4): dividends and distributions -- 168,020
------------ ------------
Net increase in net assets derived from capital share transactions -- 171,834
------------ ------------
Net Assets: Total increase (decrease) in net assets 4,261,985 (18,763,939)
Beginning of period 110,674,349 129,438,288
------------ ------------
End of period* $114,936,334 $110,674,349
============ ============
<FN>
*Undistributed investment income--net $ 438,240 $ 484,364
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived For the For the For the Period
from information provided in the financial statements. Six Months Year Ended April 30, 1993++
Ended April 30, October 31, to October 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1993
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 11.82 $ 14.99 $ 14.18
Operating ----------- ----------- -----------
Performance: Investment income--net .50 1.00 .49
Realized and unrealized gain (loss) on investments--net .72 (3.05) .90
----------- ----------- -----------
Total from investment operations 1.22 (2.05) 1.39
----------- ----------- -----------
Less dividends and distributions to Common Shareholders:
Investment income--net (.39) (.84) (.35)
Realized gain on investments--net -- (.11) --
----------- ----------- -----------
Total dividends and distributions to Common Shareholders (.39) (.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 (.12) (.15) (.07)
Realized gain on investments--net -- (.02) --
Capital charge resulting from issuance of Preferred Shares -- -- (.12)
----------- ----------- -----------
Total effect of Preferred Share activity (.12) (.17) (.19)
----------- ----------- -----------
Net asset value, end of period $ 12.53 $ 11.82 $ 14.99
=========== =========== ===========
Market price per share, end of period $ 10.75 $ 10.00 $ 15.00
=========== =========== ===========
Total Investment Based on market price per share 11.34%+++ (28.20%) 2.37%+++
Return:** =========== =========== ===========
Based on net asset value per share 9.80%+++ (15.07%) 8.22%+++
=========== =========== ===========
Ratios to Average Expenses, net of reimbursement .87%* .75% .48%*
Net Assets:*** =========== =========== ===========
Expenses .87%* .78% .83%*
=========== =========== ===========
Investment income--net 5.60%* 4.94% 4.85%*
=========== =========== ===========
<PAGE>
Supplemental Net assets, net of Preferred Shares, end of period
Data: (in thousands) $ 74,936 $ 70,674 $ 89,438
=========== =========== ===========
Preferred Shares outstanding, end of period (in thousands) $ 40,000 $ 40,000 $ 40,000
=========== =========== ===========
Portfolio turnover 48.89% 100.98% 23.23%
=========== =========== ===========
Dividends Investment income--net $ 438 $ 569 $ 245
Per 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, may 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.
++++++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 Florida Fund (the "Fund") is registered under the Investment
Company Act of 1940 as a non-diversified, closed-end management investment
company. These unaudited financial statements reflect all adjustments which
are, in the opinion of management, necessary to a fair statement of the
results for the interim period presented. All such adjustments are of a normal
recurring nature. The Fund determines and makes available for publication the
net asset value of its Common Shares on a weekly basis. The Fund's Common
Shares are listed on the New York Stock Exchange under the symbol MVS. 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 Trustees of the Fund.
<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 Shares 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.
NOTES TO FINANCIAL STATEMENTS (concluded)
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 trustees 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
six months ended April 30, 1995 were $54,047,392 and $51,840,788, respectively.
Net realized and unrealized gains (losses) as of April 30, 1995 were as
follows:
Realized Unrealized
Losses Gains
Long-term investments $(1,857,840) $1,849,747
Financial futures contracts (1,257,287) --
----------- ----------
Total $(3,115,127) $1,849,747
=========== ==========
As of April 30, 1995, net unrealized appreciation for Federal income tax
purposes aggregated $1,849,747, of which $2,390,042 related to appreciated
securities and $540,295 related to depreciated securities. The aggregate cost
of investments at April 30, 1995 for Federal income tax purposes was
$108,883,657.
<PAGE>
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 months ended April 30, 1995, shares issued and outstanding
remained constant at 5,978,662. At April 30, 1995, 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 April 30,
1995 was 4.57%.
A two-for-one stock split occurred on December 1, 1994. As a result, for the
six months ended April 30, 1995, there were 1,600 AMPS authorized, issued and
outstanding with a liquidation preference of $25,000 per share, plus
accumulated and unpaid dividends of $15,024.
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 six months ended April 30, 1995, MLPF&S, an affiliate of
FAM, earned $49,904 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.
6. Subsequent Event:
On May 9, 1995, the Fund's Board of Trustees declared an ordinary income
dividend to Common Shareholders in the amount of $.060721 per share, payable
on May 30, 1995 to shareholders of record as of May 19, 1995.
<PAGE>
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 Quarter 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 -- --
May 1, 1994 to July 31, 1994 .25 (.43) .73 .20 .05 -- --
August 1, 1994 to October 31, 1994 .25 (.86) (.39) .20 .05 -- --
November 1, 1994 to January 31, 1995 .25 (.43) .94 .20 .06 -- --
February 1, 1995 to April 30, 1995 .25 (.09) .30 .19 .06 -- --
<CAPTION>
Net Asset Value Market Price**
For the Quarter 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
November 1, 1994 to January 31, 1995 12.33 10.82 11.625 9.00 1,355
February 1, 1995 to April 30, 1995 12.88 12.35 12.125 10.75 659
<FN>
*Calculations are based upon Common Shares outstanding at the end of each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
++Commencement of Operations.
</TABLE>
