MUNIVEST
FLORIDA FUND
FUND LOGO
Annual Report
October 31, 1996
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.
Statements and other information herein are as dated and are subject
to change.
<PAGE>
MuniVest
Florida Fund
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
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.
<PAGE>
To illustrate these concepts, assume a fund's Common Share
capitalization of $100 million and the issuance of Preferred Shares
for an additional $50 million, creating a total value of $150
million available for investment in long-term municipal bonds. If
prevailing short-term interest rates are approximately 3% and long-
term interest rates are approximately 6%, the yield curve has a
strongly positive slope. The fund pays dividends on the $50 million
of Preferred Shares based on the lower short-term interest rates. At
the same time, the fund's total portfolio of $150 million earns the
income based on long-term interest rates. Of course, increases in
short-term interest rates would reduce (and even eliminate) the
dividends on the Common Shares.
In this case, the dividends paid to Preferred Shareholders are
significantly lower than the income earned on the fund's long-term
investments, and therefore the Common Shareholders are the
beneficiaries of the incremental yield. However, if short-term
interest rates rise, narrowing the differential between short-term
and long-term interest rates, the incremental yield pickup on the
Common Shares will be reduced or eliminated completely. At the same
time, the market value of the fund's Common Shares (that is, its
price as listed on the New York Stock Exchange) may, as a result,
decline. Furthermore, if long-term interest rates rise, the Common
Shares' net asset value will reflect the full decline in the price
of the portfolio's investments, since the value of the fund's
Preferred Shares does not fluctuate. In addition to the decline in
net asset value, the market value of the fund's Common Shares may
also decline.
DEAR SHAREHOLDER
For the year ended October 31, 1996, the Common Shares of MuniVest
Florida Fund earned $0.762 per share income dividends, which
included earned and unpaid dividends of $0.066. This represents a
net annualized yield of 5.69%, based on a month-end per share net
asset value of $13.39. Over the same period, the total investment
return on the Fund's Common Shares was +8.17%, based on a change in
per share net asset value from $13.16 to $13.39, and assuming
reinvestment of $0.760 per share income dividends.
<PAGE>
For the six-month period ended October 31, 1996, the total
investment return on the Fund's Common Shares was +6.93%, based on a
change in per share net asset value from $12.91 to $13.39, and
assuming reinvestment of $0.373 per share income dividends.
For the six-month period ended October 31, 1996, the Fund's Auction
Market Preferred Shares had an average yield of 3.56%.
The Municipal Market Environment
Municipal bond yields generally moved lower during the six-month
period ended October 31, 1996. Long-term tax-exempt revenue bond
yields, as measured by the Bond Buyer Revenue Bond Index, declined
approximately 35 basis points (0.35%) to end the October period at
approximately 5.94%. The municipal bond market exhibited
considerable weekly yield volatility over the last six months with
bond yields vacillating as much as 20 basis points. This ongoing
volatility was in response to fluctuating evidence regarding the
degree to which recent economic growth will result in any
significant increase in inflationary pressures. Much of the evidence
supporting stronger growth centered around the strong employment
growth seen in April and June and bond yields rose in response.
Other, more recent, economic indicators suggested that economic
growth will not be excessive and inflationary pressures will remain
well-contained. This continued benign inflationary environment
supported lower tax-exempt bond yields in recent months. US Treasury
bond yields exhibited similar, albeit greater, volatility during the
period falling over 20 basis points to end the period at 6.64%. Over
the past six months, tax-exempt bond yields registered significantly
greater declines than shown by the US Treasury bond market. This
relative outperformance by the municipal bond market was largely the
result of the strong technical support the tax-exempt market enjoyed
throughout most of 1996. Perhaps most significantly, the pace of new
bond issuance recently slowed.
Over the last year, approximately $180 billion in long-term
municipal securities was issued, an increase of over 25% compared to
the same period a year ago. Much of this increase was the result of
issuers seeking to refinance their existing higher-couponed debt as
interest rates declined in 1995 and early 1996. As interest rates
rose, these financings became increasingly economically impractical,
and issuance declined. Over the last six months, approximately $90
billion in long-term, tax-exempt securities was underwritten, an
increase of 5% versus the comparable period a year earlier. Only $41
billion in tax-exempt securities was issued in the last three
months, a 3% decline in issuance versus the October 31, 1995
quarter.
<PAGE>
At the same time, investor demand remained consistently strong. With
nominal new-issue yields generally above 6%, retail investor
interest was steady. Additionally, investors received over $50
billion this June and July in assets derived from coupon income,
bond maturities, and proceeds from early redemptions. Annual new
bond issuance declined in recent years and is expected to remain
below levels seen in the early 1990s. Consequently, as the higher-
couponed bonds issued in the early-to-mid 1980s were redeemed at
their first optional call dates, the total number of outstanding tax-
exempt bonds has declined. This combination of a declining net
supply and significant amounts of assets available for investment
helped maintain investor demand in recent months.
It is unlikely that the municipal bond market will continue to
significantly outperform US Treasury securities in the near future.
The tax-exempt bond market's recent performance led to the yield
ratio between long-term taxable and tax-exempt securities falling
from in excess of 90% to approximately 85%. While historically still
very attractive, some institutional investors, particularly short-
term traders, began to view the tax-exempt bond market's recent
outperformance as an opportunity to sell a relatively expensive
asset. However, to the long-term investor such a sale would
represent the loss of an attractively priced asset which may not be
easily replaced given the relative scarcity of municipal bonds under
present supply conditions.
Looking ahead, no clear consensus for the direction of interest
rates currently exists. Perhaps, the primary focus going forward
will be the extent to which the increase in interest rates seen thus
far in 1996 will negatively impact future economic growth. Should
growth slow in the interest rate-sensitive sectors of the economy,
like housing, auto, and consumer spending, as many economists assert
is likely, then bond yields are likely to decline. Under such a
scenario, the municipal bond market's performance is likely to
closely mirror that of the US Treasury bond market.
Portfolio Strategy
Our investment strategy for MuniVest Florida Fund shifted
dramatically during the past 12 months. We began the year ended
October 31, 1996 optimistic about the interest rate outlook because
of slow economic growth and low inflation. This strategy proved
successful as the bond market rallied into January 1996.
Unfortunately, our portfolio strategy remained constructive during
February and early March while interest rates began to rise. We
reversed course and became extremely defensive, seeking to protect
the Fund from the significant backup in interest rates that brought
the 30-year Treasury bond to 6.90% by the end of March. Since that
time we successfully utilized the trading range that confined the
bond market, enabling the Fund to realize an attractive total
return.
<PAGE>
Currently, we are cautious on the interest rate outlook. There is a
considerable amount of good news priced into the market, and any
surprises, such as a stronger economy or larger employment
increases, could cause interest rates to increase substantially. We
will focus on purchasing higher-coupon bonds that are less sensitive
to interest rate volatility in an effort to enhance tax-exempt
income to the Fund's Common Shareholders while seeking to protect
its net asset value. The interest rate on the Fund's Auction Market
Preferred Shares, which averaged approximately 3.40% over the past
year, continued to benefit the Fund's Common Shareholders. However,
should the spread between short-term and long-term interest rates
narrow, the benefits of 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.)
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
Senior Vice President
(Robert A. DiMella)
Robert A. DiMella
Portfolio Manager
<PAGE>
November 26, 1996
PROXY RESULTS
<TABLE>
During the six-month period ended October 31, 1996, MuniVest Florida
Fund Common Shareholders voted on the following proposals. The
proposals were approved at a special shareholders' meeting on
September 9, 1996. The description of each proposal and number of
shares voted are as follows:
<CAPTION>
Shares Voted Shares Voted
For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Trustees: Edward H. Meyer 5,735,237 116,036
Jack B. Sunderland 5,737,796 113,477
J. Thomas Touchton 5,739,496 111,777
Arthur Zeikel 5,739,196 112,077
<CAPTION>
Shares Voted Shares Voted Shares Voted
For Against Abstain
<S> <C> <C> <C>
2. To select Deloitte & Touche LLP as the Fund's independent
auditors. 5,728,120 44,054 79,099
<CAPTION>
During the six-month period ended October 31, 1996, MuniVest Florida
Fund Preferred Shareholders voted on the following proposals. The
proposals were approved at a special shareholders' meeting on
September 6, 1996. The description of each proposal and number of
shares voted are as follows:
Shares Voted Shares Voted
For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Trustees: Donald Cecil 1,482 37
M. Colyer Crum 1,482 37
Edward H. Meyer 1,482 37
Jack B. Sunderland 1,482 37
J. Thomas Touchton 1,482 37
Arthur Zeikel 1,482 37
<CAPTION>
Shares Voted Shares Voted Shares Voted
For Against Abstain
<S> <C> <C> <C>
2. To select Deloitte & Touche LLP as the Fund's independent
auditors. 1,482 0 37
</TABLE>
<PAGE>
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)
DATES Daily Adjustable Tax-Exempt Securities
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
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Florida--98.8% AAA Aaa $ 5,000 Brevard County, Florida, IDR (NUI Corporation Project), AMT,
6.40% due 10/01/2024 (b) $ 5,328
AAA NR* 1,400 Broward County, Florida, HFA, Revenue Bonds, AMT, Series A,
7.35% due 3/01/2023 (e)(f) 1,468
A+ A1 8,000 Citrus County, Florida, PCR, Refunding (Florida Power
Corporation--Crystal River), Series B, 6.35% due 2/01/2022 8,342
AAA Aaa 5,000 Dade County, Florida, Aviation Revenue Bonds (Miami
International Airport), AMT, Series B, 5.75% due
10/01/2013 (c) 5,040
AAA Aaa 1,125 Dade County, Florida, Educational Facilities Authority,
Exchangeable Revenue Bonds (University of Miami), 7.65% due
4/01/2010 (c) 1,252
<PAGE>
AA- Aa3 2,250 Dade County, Florida, IDA, Solid Waste Disposal Revenue
Bonds (Florida Power & Light Co. Project), AMT, 7.15% due
2/01/2023 2,444
AAA Aaa 4,710 Dade County, Florida, Seaport Revenue Bonds, UT, 6.50% due
10/01/2001 (b)(h) 5,176
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) 3,201
NR* Aaa 2,230 Series A, 7.40% due 10/01/2023 2,346
BBB Baa1 1,920 Escambia County, Florida, PCR (Champion International
Corporation Project), AMT, 6.90% due 8/01/2022 2,029
NR* Aaa 1,770 Florida HFA, Home Ownership Revenue Bonds, AMT, Series G1,
7.90% due 3/01/2022 (f) 1,870
Florida State Board of Education, Public Education Revenue
Bonds (Capital Outlay) (h):
AAA Aaa 6,430 Series A, 6.75% due 6/01/2001 7,095
AAA Aaa 3,500 Series B, 6.70% due 6/01/2001 3,855
AA Aa 2,000 Florida State, Department of Transportation (Right of Way
Acquisition and Bridge), 5.375% due 7/01/2026 1,924
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) 2,194
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Florida NR* NR* $ 4,700 Florida State, Mid-Bay Bridge Authority, Crossover
(concluded) Revenue Refunding Bonds, Series A, 6.10% due 10/01/2022 $ 4,709
AAA Aaa 5,000 Florida State Municipal Power Agency Revenue Bonds
(Stanton II Project), 6.50% due 10/01/2002 (b)(h) 5,585
AAA Aaa 5,900 Florida State Turnpike Authority, Turnpike Revenue Refunding
Bonds, Series A, 5% due 7/01/2019 (d) 5,427
AA Aa 6,925 Gainesville, Florida, Utilities System Revenue Bonds,
Series A, 6.50% due 10/01/2002 (h) 7,726
<PAGE>
A A 5,400 Hillsborough County, Florida, Capital Improvement Revenue
Bonds (County Center Project), Second Series, 6.75% due
7/01/2002 (h) 6,077
AAA Aaa 2,000 Hillsborough County, Florida, Utility Revenue Refunding Bonds,
Series B, 6.50% due 8/01/2016 (c) 2,160
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 2,190
NR* Baa1 345 Jacksonville, Florida, Health Facilities Authority, IDR
(National Benevolent Cypress Village), Series A, 6.125% due
12/01/2016 341
AAA Aaa 1,320 Lakeland, Florida, Hospital System Revenue Bonds (Lakeland
Regional Medical Center), Series A, 5.25% due 11/15/2016 (c) 1,263
NR* Aaa 3,250 Manatee County, Florida, HFA, S/F Mortgage Revenue Bonds,
AMT, Sub-Series 2, 7.75% due 5/01/2026 (f) 3,639
A1+ VMIG1++ 100 Martin County, Florida, PCR, Refunding (Florida Power &
Light Company Project), VRDN, 3.60% due 9/01/2024 (a) 100
BBB+ Baa 2,890 Nassau County, Florida, PCR, Refunding (ITT Rayonier, Inc.
Project), 6.20% due 7/01/2015 2,932
AA- Aa 7,250 Orlando, Florida, Utilities Commission Water and Electric
Revenue Refunding Bonds, Series A, 5.25% due 10/01/2023 6,813
AAA Aaa 1,890 Palm Beach County, Florida, Criminal Justice Facilities Revenue
Bonds, 7.20% due 6/01/2015 (d) 2,286
NR* VMIG1++ 2,600 Palm Beach County, Florida, Water and Sewer Revenue Bonds,
VRDN, 3.70% due 10/01/2011 (a) 2,600
A1 VMIG1++ 1,000 Pinellas County, Florida, Health Facilities Authority, Revenue
Refunding Bonds (Pooled Hospital Loan Program), DATES, 3.65%
due 12/01/2015 (a) 1,000
AAA Aaa 1,200 Port Everglades Authority, Florida, Port Improvement Revenue
Bonds, 7.125% due 11/01/2016 (g) 1,364
A1+ VMIG1++ 900 Saint Lucie County, Florida, PCR, Refunding (Florida Power &
Light Co. Project), VRDN, 3.60% due 1/01/2026 (a) 900
AA- Aa3 1,000 Saint Lucie County, Florida, Solid Waste Disposal Revenue Bonds
(Florida Power & Light Co. Project), AMT, 6.70% due 5/01/2027 1,066
<PAGE>
AAA Aaa 3,500 Sunrise, Florida, Utility System Revenue Bonds, Series A, 5.75%
due 10/01/2026 (b) 3,508
Tampa, Florida, Utility Tax, Capital Appreciation, Sales Tax
Revenue Bonds (b):
AAA Aaa 2,000 6.22%** due 4/01/2021 487
AAA Aaa 2,800 6.22%** due 10/01/2021 662
NR* Aaa 2,000 Tampa, Florida, Water and Sewer Revenue Refunding Bonds
(SBMRS), 6.60% due 10/01/2002 (h) 2,229
Total Investments (Cost--$113,238)--98.8% 118,628
Other Assets Less Liabilities--1.2% 1,430
--------
Net Assets--100.0% $120,058
========
<FN>
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at October 31, 1996.
(b)AMBAC Insured.
(c)MBIA Insured.
(d)FGIC Insured.
(e)FNMA Collateralized.
(f)GNMA Collateralized.
(g)Escrowed to Maturity.
(h)Prerefunded.
*Not Rated.
**Represents a zero coupon bond; the interest rate shown is the
effective yield at the time of purchase by the Fund.
++Highest short-term rating by Moody's Investors Service, Inc.
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, 1996
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$113,238,601) (Note 1a) $118,628,470
Cash 84,297
Interest receivable 1,563,927
Deferred organization expenses (Note 1e) 7,999
Prepaid expenses and other assets 6,840
------------
Total assets 120,291,533
------------
<PAGE>
Liabilities: Payables:
Dividends to shareholders (Note 1f) $ 83,852
Investment adviser (Note 2) 50,665 134,517
------------
Accrued expenses and other liabilities 99,409
------------
Total liabilities 233,926
------------
Net Assets: Net assets $120,057,607
============
Capital: Capital Shares (unlimited number of shares of beneficial
interest authorized) (Note 4):
Preferred Shares, par value $.05 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 460,992
Accumulated realized capital losses on investments--net (Note 5) (9,589,196)
Unrealized appreciation on investments--net 5,389,869
------------
Total--Equivalent to $13.39 net asset value per Common Share
(market price--$12.75) 80,057,607
------------
Total capital $120,057,607
============
<FN>
*Auction Market Preferred Shares.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended October 31, 1996
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 6,884,455
Income (Note 1d):
<PAGE>
Expenses: Investment advisory fees (Note 2) $ 594,730
Commission fees (Note 4) 101,488
Accounting services (Note 2) 71,027
Professional fees 66,854
Printing and shareholder reports 39,646
Transfer agent fees 27,883
Trustees' fees and expenses 20,253
Listing fees 13,850
Custodian fees 10,743
Pricing fees 5,880
Amortization of organization expenses (Note 1e) 5,372
Other 14,322
------------
Total expenses 972,048
------------
Investment income--net 5,912,407
------------
Realized & Realized gain on investments--net 2,150,848
Unrealized Gain Change in unrealized appreciation on investments--net (779,005)
(Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 7,284,250
(Notes 1b, 1d & 3): ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended
October 31,
Increase (Decrease) in Net Assets: 1996 1995
<S> <S> <C> <C>
Operations: Investment income--net $ 5,912,407 $ 6,011,312
Realized gain (loss) on investments--net 2,150,848 (3,707,575)
Change in unrealized appreciation/depreciation on investments--net (779,005) 11,742,362
------------ ------------
Net increase in net assets resulting from operations 7,284,250 14,046,099
------------ ------------
Dividends to Investment income--net:
Shareholders Common Shares (4,543,484) (4,521,327)
(Note 1f): Preferred Shares (1,378,160) (1,504,120)
------------ ------------
Net decrease in net assets resulting from dividends to
shareholders (5,921,644) (6,025,447)
------------ ------------
<PAGE>
Net Assets: Total increase in net assets 1,362,606 8,020,652
Beginning of year 118,695,001 110,674,349
------------ ------------
End of year* $120,057,607 $118,695,001
============ ============
<FN>
*Undistributed investment income--net $ 460,992 $ 470,229
============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
Period
The following per share data and ratios have been derived Apr. 30,
from information provided in the financial statements. 1993++ to
For the Year Ended October 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1993
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.16 $ 11.82 $ 14.99 $ 14.18
Operating -------- -------- -------- --------
Performance: Investment income--net .99 1.01 1.00 .49
Realized and unrealized gain (loss) on investments
--net .23 1.34 (3.05) .90
-------- -------- -------- --------
Total from investment operations 1.22 2.35 (2.05) 1.39
-------- -------- -------- --------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.76) (.76) (.84) (.35)
Realized gain on investments--net -- -- (.11) --
-------- -------- -------- --------
Total dividends and distributions to Common
Shareholders (.76) (.76) (.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 (.23) (.25) (.15) (.07)
Realized gain on investments--net -- -- (.02) --
Capital charge resulting from issuance of
Preferred Shares -- -- -- (.12)
-------- -------- -------- --------
Total effect of Preferred Share activity (.23) (.25) (.17) (.19)
-------- -------- -------- --------
Net asset value, end of period $ 13.39 $ 13.16 $ 11.82 $ 14.99
======== ======== ======== ========
Market price per share, end of period $ 12.75 $ 11.50 $ 10.00 $ 15.00
======== ======== ======== ========
<PAGE>
Total Investment Based on market price per share 17.87% 22.93% (28.20%) 2.37%+++
Return:** ======== ======== ======== ========
Based on net asset value per share 8.17% 19.02% (15.07%) 8.22%+++
======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .82% .85% .75% .48%*
Net Assets:*** ======== ======== ======== ========
Expenses .82% .85% .78% .83%*
======== ======== ======== ========
Investment income--net 4.96% 5.38% 4.94% 4.85%*
======== ======== ======== ========
Supplemental Net assets, net of Preferred Shares, end of period
Data: (in thousands) $ 80,058 $ 78,695 $ 70,674 $ 89,438
======== ======== ======== ========
Preferred Shares outstanding, end of period
(in thousands) $ 40,000 $ 40,000 $ 40,000 $ 40,000
======== ======== ======== ========
Portfolio turnover 116.82% 92.54% 100.98% 23.23%
======== ======== ======== ========
Leverage: Asset coverage per $1,000 $ 3,001 $ 2,967 $ 2,767 $ 3,236
======== ======== ======== ========
Dividends Per Investment income--net $ 861 $ 940 $ 569 $ 245
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 that occurred on December 1, 1994.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
<PAGE>
1. Significant Accounting Policies:
MuniVest Florida Fund (the "Fund") is registered under the
Investment Company Act of 1940 as a non-diversified, closed-end man-
agement investment company. 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, including valuations furnished by a pricing
service retained by the Fund, which may utilize a matrix system for
valuations. The procedures of the pricing service and its valuations
are reviewed by the officers of the Fund under the general
supervision of the Board of Trustees.
(b) Derivative financial instruments--The Fund may engage in various
portfolio 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.
<PAGE>
* Options--The Fund is authorized to write covered call options and
purchase put options. When the Fund writes an option, an amount
equal to the premium received by the Fund is reflected as an asset
and an equivalent liability. The amount of the liability is
subsequently marked to market to reflect the current market value of
the option written.
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired, or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the
closing transaction exceeds the premium paid or received).
Written and purchased options are non-income producing investments.
(c) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(d) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income is recognized on the accrual
basis. Discounts and market premiums are amortized into interest
income. Realized gains and losses on security transactions are
determined on the identified cost basis.
(e) Deferred organization expenses--Deferred organization expenses
are amortized on a straight-line basis over a five-year period.
(f) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital gains
are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
<PAGE>
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 year ended October 31, 1996 were $129,422,054 and
$130,264,124, respectively.
Net realized and unrealized gains as of October 31, 1996 were as
follows:
Realized Unrealized
Gains Gains
Long-term investments $1,602,979 $5,389,869
Financial futures contracts 547,869 --
---------- ----------
Total $2,150,848 $5,389,869
========== ==========
As of October 31, 1996, net unrealized appreciation for Federal
income tax purposes aggregated $5,389,869, of which $5,420,115
related to appreciated securities and $30,246 related to depreciated
securities. The aggregate cost of investments at October 31, 1996
for Federal income tax purposes was $113,238,601.
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, 1996, shares issued and outstanding
remained constant at 5,978,662. At October 31, 1996, total paid-in
capital amounted to $83,795,942.
<PAGE>
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, 1996 was 3.177%.
For the year ended October 31, 1996, there were 1,600 AMPS
authorized, issued and outstanding with a liquidation preference of
$25,000 per share.
The Fund pays commissions to certain broker-dealers at the end of
each auction at an annual rate ranging from 0.25% to 0.375%,
calculated on the proceeds of each auction. For the year ended
October 31, 1996, MLPF&S, an affiliate of FAM, earned $68,574 as
commissions.
5. Capital Loss Carryforward:
At October 31, 1996, the Fund had a capital loss carryforward of
approximately $7,746,000, of which $5,492,000 expires in 2002 and
$2,254,000 expires in 2003. This amount will be available to offset
like amounts of any future taxable gains.
6. Subsequent Event:
On November 8, 1996, the Fund's Board of Trustees declared an
ordinary income dividend to Common shareholders in the amount of
$.066242 per share, payable on November 27, 1996 to shareholders of
record as of November 18, 1996.
<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, 1996, the related statements of
operations for the year then ended and changes in net assets for
each of the years in the two-year period then ended, and the
financial highlights for each of the years in the three-year period
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.
<PAGE>
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 as of
October 31, 1996 by correspondence with the custodian. 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, the financial statements and financial highlights
present fairly, in all material respects, the financial position of
MuniVest Florida Fund as of October 31, 1996, 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 3, 1996
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid by MuniVest
Florida Fund during its taxable year ended October 31, 1996 qualify
as tax-exempt interest dividends for Federal income tax purposes.
Additionally, there were no capital gains distributed by the Fund
during the year.
Please retain this information for your records.
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
Vincent R. Giordano, Senior Vice President
Donald C. Burke, 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
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
NYSE Symbol
MVS
