MUNIVEST
FLORIDA FUND
FUND LOGO
Semi-Annual Report
April 30, 1997
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
Robert A. DiMella, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Patrick D. Sweeney, Secretary
<PAGE>
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agents
Common Shares:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Shares:
IBJ Schroder Bank &Trust Company
One State Street
New York, NY 10004
NYSE Symbol
MVS
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.
MuniVest
Florida Fund
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MUNIVEST FLORIDA FUND
<PAGE>
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.
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.
<PAGE>
DEAR SHAREHOLDER
For the six-month period ended April 30, 1997, the Common Shares of
MuniVest Florida Fund earned $0.393 per share income dividends,
which included earned and unpaid dividends of $0.063. This
represents a net annualized yield of 6.04%, based on a month-end per
share net asset value of $13.12. Over the same period, the total
investment return on the Fund's Common Shares was +1.04%, based on a
change in per share net asset value from $13.39 to $13.12, and
assuming reinvestment of $0.397 per share income dividends.
The average yield of the Fund's Auction Market Preferred Shares for
the six-month period ended April 30, 1997 was 3.17%.
The Municipal Market
Environment
Long-term tax-exempt revenue bonds traded in a relatively narrow
range throughout much of the six months ended April 30, 1997. By mid-
January 1997, municipal bond yields had risen to over 6% as
investors reacted negatively to reports of progressively stronger
domestic economic growth. However, a continued lack of any material
inflationary pressures allowed bond yields to decline to their prior
levels by late February. Bond yields rose again as investors became
increasingly concerned that the US domestic economic strength seen
thus far in 1997 would continue and that the increase in short-term
interest rates administered by the Federal Reserve Board (FRB) in
late March would be the first in a series of such moves designed to
slow the US economy before any dormant inflationary pressures were
awakened. Long-term tax-exempt bond yields rose approximately 15
basis points (0.15%) to almost 6.15% by mid-April. Similarly, long-
term US Treasury bond yields rose over 35 basis points over the same
period to 7.16%. However, in late April economic indicators were
released showing that despite considerable economic growth, any
inflationary pressures, particularly those associated with wage
increases, were well-contained and of no immediate concern. Fixed-
income bond prices staged a significant rally during the last week
of April with long-term US Treasury bond yields falling nearly 20
basis points to end the month at 6.95%. Municipal bond yields, as
measured by the Bond Buyer Revenue Bond Index, declined nearly 15
basis points to stand at 6.01% by April 30, 1997.
<PAGE>
As in recent quarters, the relative stability of long-term tax-
exempt bond yields was supported by low levels of new municipal bond
issuance. Over the past six months, approximately $90 billion in
long-term tax-exempt bonds was underwritten, a decline of more than
6% versus the corresponding period a year earlier. During the three-
month period ended April 30, 1997, $41 billion in new long-term
municipal bonds was issued, also a 6% decline in issuance as
compared to the three months ended April 30, 1996. Overall investor
demand has remained strong, particularly from property and casualty
insurance companies and individual retail investors. In recent
years, investor demand has increased whenever tax-exempt bond yields
have approached or exceeded the 6% level as they have in the past
few months.
Additionally, in recent months much of the new bond issuance was
dominated by a number of larger issues. These included $710 million
in New York City water bonds, $600 million in state of California
bonds, $1 billion in New York City general obligation bonds, $435
million in Dade County, Florida water and sewer revenue bonds, $450
million in Puerto Rico Electric Authority issues, and $930 million
in Port Authority of New York and New Jersey issues. These bonds
have typically been issued in states with relatively high state
income taxes and consequently generally were underwritten at yields
that were relatively unattractive to residents in other states. This
has exacerbated the general decline in overall issuance in recent
years, making the decrease in supply even more dramatic for general
market investors.
The present economic situation remains nearly ideal. The domestic
economy continues to grow steadily with little, if any, sign of a
resurgence in inflation. Recent economic growth generated
considerable unexpected tax revenues for the Federal government.
Forecasts for the 1997 Federal fiscal deficit were reduced to under
$100 billion, a level not seen since the early 1980s. Such a reduced
Federal deficit enhances the prospect for a balanced Federal budget.
All of these factors support a scenario of steady, or even falling,
interest rates in the coming years. Present annual estimates of
future municipal bond issuance remain centered around $175 billion,
indicating that the current relative scarcity of tax-exempt bonds
should continue for at least the remainder of the year. Should
interest rates begin to decline later this year, either as the
result of a balanced Federal budget or continued benign inflation,
investors are unlikely to be able to purchase long-term municipal
bonds at their currently attractive levels.
Portfolio Strategy
During the past six months we maintained a neutral-to-slightly
constructive investment strategy that concentrated on providing an
attractive level of tax-exempt income while seeking to preserve the
Fund's net asset value. The everchanging perception on the state of
the economy, and the need for possible further monetary policy
tightening by the FRB, caused large swings in interest rates over
this time period.
<PAGE>
We have strived to take advantage of market fluctuations to seek to
enhance the Fund's total return. We purchased interest rate-
sensitive bonds in the middle of January when tax-exempt interest
rates increased to attractive levels. However, we subsequently sold
these issues after the bond market rally in early February. Looking
forward, we expect the FRB to continue raising short-term interest
rates, which is expected to place negative pressure on long-term tax-
exempt interest rates. We anticipate maintaining a neutral portfolio
strategy until there are signs that the economy is slowing to below
trend growth, thereby reducing the threat of rising inflation.
The yield on the Fund's Auction Market Preferred Shares has been
trading within a narrow range between 3.25%--3.65%. Over the past
few weeks, the interest rate on the Preferred Shares has been
greater than 4% in response to pressures from seasonal corporate and
individual tax payments. This interest rate has started to decline,
but is expected to return to normal levels shortly. Leverage
continues to benefit the Common Shareholders by significantly
augmenting their yield. However, should the spread between short-
term and long-term tax-exempt interest rates narrow, the benefits of
leverage will decline and the yield on the Fund's Common Shares will
be reduced. (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
<PAGE>
(Robert A. DiMella)
Robert A. DiMella
Vice President and Portfolio Manager
May 27, 1997
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
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--96.5% AAA Aaa $ 5,000 Brevard County, Florida, IDR (NUI Corporation Project), AMT,
6.40% due 10/01/2024 (b) $ 5,200
AAA NR* 1,400 Broward County, Florida, HFA, Revenue Bonds, AMT, Series A,
7.35% due 3/01/2023 (e)(f) 1,467
AAA Aaa 8,200 Citrus County, Florida, PCR, Refunding (Florida Power Corp.--
Crystal River), Series B, 6.35% due 2/01/2022 (c) 8,562
<PAGE>
AAA Aaa 1,125 Dade County, Florida, Educational Facilities Authority,
Exchangeable Revenue Bonds (University of Miami), 7.65% due
4/01/2010 (c) 1,228
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 2,432
Dade County, Florida, Professional Sports Franchise Facilities,
Tax Revenue Bonds (c):
AAA Aaa 1,055 5.87%** due 10/01/2021 251
AAA Aaa 2,000 5.90%** due 10/01/2028 311
AAA Aaa 4,710 Dade County, Florida, Seaport Revenue Bonds, UT, 6.50% due
10/01/2001 (b)(h) 5,077
AAA Aaa 8,225 Dade County, Florida, Water and Sewer System Revenue Bonds,
5.25% due 10/01/2021 (d) 7,719
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) 3,162
NR* Aaa 2,230 Series A, 7.40% due 10/01/2023 2,338
BBB Baa1 1,920 Escambia County, Florida, PCR (Champion International
Corporation Project), AMT, 6.90% due 8/01/2022 2,035
NR* Aaa 1,770 Florida HFA, Home Ownership Revenue Bonds, AMT, Series G1,
7.90% due 3/01/2022 (f) 1,859
Florida State Board of Education, Public Education Revenue
Bonds (Capital Outlay) (h):
AAA Aaa 6,430 Series A, 6.75% due 6/01/2001 6,960
AAA Aaa 3,500 Series B, 6.70% due 6/01/2001 3,782
AAA Aaa 2,340 Florida State Department of General Services Revenue Bonds
(Division Facilities Management), Series B, 5.25% due
9/01/2026 (b) 2,178
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) 2,155
NR* NR* 4,700 Florida State Mid-Bay Bridge Authority, Crossover Revenue
Refunding Bonds, Series A, 6.10% due 10/01/2022 4,706
AAA Aaa 5,900 Florida State Turnpike Authority, Turnpike Revenue Refunding
Bonds, Series A, 5% due 7/01/2019 (d) 5,342
AA Aa 6,925 Gainesville, Florida, Utilities System Revenue Bonds, Series A,
6.50% due 10/01/2002 (h) 7,567
<PAGE>
A A 5,400 Hillsborough County, Florida, Capital Improvement Revenue
Bonds (County Center Project), Second Series, 6.75% due
7/01/2002 (h) 5,935
AAA Aaa 3,000 Hillsborough County, Florida, School Board, COP (Master Lease
Program), 5.25% due 7/01/2017 (c) 2,839
AAA Aaa 2,000 Hillsborough County, Florida, Utility Revenue Refunding Bonds,
Series B, 6.50% due 8/01/2016 (c) 2,144
AAA Aaa 5,000 Jacksonville, Florida, District Water and Sewer Revenue Bonds,
5% due 10/01/2020 (c) 4,539
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 2,178
NR* Baa1 345 Jacksonville, Florida, Health Facilities Authority, IDR
(National Benevolent Cypress Village), Series A, 6.125% due
12/01/2016 345
AAA Aaa 1,320 Lakeland, Florida, Hospital System Revenue Bonds (Lakeland
Regional Medical Center), Series A, 5.25% due 11/15/2016 (c) 1,246
NR* Aaa 3,250 Manatee County, Florida, HFA, S/F Mortgage Revenue Bonds,
AMT, Sub-Series 2, 7.75% due 5/01/2026 (f) 3,591
BBB+ Baa 2,890 Nassau County, Florida, PCR, Refunding (ITT Rayonier, Inc.
Project), 6.20% due 7/01/2015 2,914
AAA Aaa 1,890 Palm Beach County, Florida, Criminal Justice Facilities
Revenue Bonds, 7.20% due 6/01/2015 (d) 2,233
NR* VMIG1++ 600 Palm Beach County, Florida, Water and Sewer Revenue Bonds,
VRDN, 4.60% due 10/01/2011 (a) 600
AAA Aaa 1,200 Port Everglades Authority, Florida, Port Improvement Revenue
Bonds, 7.125% due 11/01/2016 (g) 1,372
A1+ VMIG1++ 100 Saint Lucie County, Florida, PCR, Refunding (Florida Power &
Light Co. Project), VRDN, 4.45% due 1/01/2026 (a) 100
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 1,065
AAA Aaa 900 Sarasota County, Florida, Utility System Revenue Bonds, 5.60%
due 10/01/2017 (d) 892
<PAGE>
AAA Aaa 5,000 South Broward Hospital District, Florida, Hospital Revenue
Refunding Bonds, 5.25% due 5/01/2021 (c) 4,665
Tampa, Florida, Utility Tax, Capital Appreciation, Sales
Tax Revenue Bonds (b):
AAA Aaa 2,000 6.19%** due 4/01/2021 491
AAA Aaa 2,800 6.22%** due 10/01/2021 667
NR* Aaa 2,000 Tampa, Florida, Water and Sewer Revenue Refunding Bonds
(SBMRS), 6.60% due 10/01/2002 (d)(h) 2,182
Total Investments (Cost--$110,674)--96.5% 114,329
Other Assets Less Liabilities--3.5% 4,120
--------
Net Assets--100.0% $118,449
========
<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 April 30, 1997.
(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.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of April 30, 1997
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$110,674,146) (Note 1a) $114,328,638
Cash 62,019
Receivables:
Securities sold $ 2,547,936
Interest 1,702,691 4,250,627
------------
Deferred organization expenses (Note 1e) 7,999
Prepaid expenses and other assets 6,840
------------
Total assets 118,656,123
------------
<PAGE>
Liabilities: Payables:
Dividends to shareholders (Note 1f) 89,300
Investment adviser (Note 2) 48,294 137,594
------------
Accrued expenses and other liabilities 69,199
------------
Total liabilities 206,793
------------
Net Assets: Net assets $118,449,330
============
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 436,169
Accumulated realized capital losses on investments--net (Note 5) (9,437,273)
Unrealized appreciation on investments--net 3,654,492
------------
Total--Equivalent to $13.12 net asset value per Common Share
(market price--$12.50) 78,449,330
------------
Total capital $118,449,330
============
<FN>
*Auction Market Preferred Shares.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Six Months Ended April 30, 1997
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 3,445,881
Income (Note 1d):
<PAGE>
Expenses: Investment advisory fees (Note 2) $ 296,542
Commission fees (Note 4) 49,136
Professional fees 33,562
Accounting services (Note 2) 22,247
Printing and shareholder reports 15,789
Transfer agent fees 15,591
Trustees' fees and expenses 10,953
Listing fees 8,158
Custodian fees 5,213
Amortization of organization expenses (Note 1e) 2,594
Pricing fees 2,384
Other 7,980
------------
Total expenses 470,149
------------
Investment income--net 2,975,732
------------
Realized & Realized gain on investments--net 151,923
Unrealized Gain Change in unrealized appreciation on investments--net (1,735,377)
(Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 1,392,278
(Notes 1b, 1d & 3): ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 1997 1996
<S> <S> <C> <C>
Operations: Investment income--net $ 2,975,732 $ 5,912,407
Realized gain on investments--net 151,923 2,150,848
Change in unrealized appreciation/depreciation on investments--net (1,735,377) (779,005)
------------ ------------
Net increase in net assets resulting from operations 1,392,278 7,284,250
------------ ------------
Dividends to Investment income--net:
Shareholders Common Shares (2,370,827) (4,543,484)
(Note 1f): Preferred Shares (629,728) (1,378,160)
Net decrease in net assets resulting from dividends to
shareholders (3,000,555) (5,921,644)
------------ ------------
<PAGE>
Net Assets: Total increase (decrease) in net assets (1,608,277) 1,362,606
Beginning of period 120,057,607 118,695,001
------------ ------------
End of period* $118,449,330 $120,057,607
============ ============
<FN>
*Undistributed investment income--net $ 436,169 $ 460,992
============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
The following per share data and ratios have Period
been derived from information provided in the For the Six Apr. 30,
financial statements. Months Ended 1993++ to
April 30, For the Year Ended October 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994 1993
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 13.39 $ 13.16 $ 11.82 $ 14.99 $ 14.18
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .50 .99 1.01 1.00 .49
Realized and unrealized gain (loss) on
investments--net (.26) .23 1.34 (3.05) .90
-------- -------- -------- -------- --------
Total from investment operations .24 1.22 2.35 (2.05) 1.39
-------- -------- -------- -------- --------
Less dividends and distributions to Common
Shareholders:
Investment income--net (.40) (.76) (.76) (.84) (.35)
Realized gain on investments--net -- -- -- (.11) --
-------- -------- -------- -------- --------
Total dividends and distributions to Common
Shareholders (.40) (.76) (.76) (.95) (.35)
-------- -------- -------- -------- --------
Capital charge resulting from issuance of
Common Shares -- -- -- -- (.04)
-------- -------- -------- -------- --------
Effect of Preferred Share activity:++++
Dividends to Preferred Shareholders:
Investment income--net (.11) (.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 (.11) (.23) (.25) (.17) (.19)
-------- -------- -------- -------- --------
Net asset value, end of period $ 13.12 $ 13.39 $ 13.16 $ 11.82 $ 14.99
======== ======== ======== ======== ========
Market price per share, end of period $ 12.50 $ 12.75 $ 11.50 $ 10.00 $ 15.00
======== ======== ======== ======== ========
<PAGE>
Total Investment Based on market price per share 1.10%+++ 17.87% 22.93% (28.20%) 2.37%+++
Return:** ======== ======== ======== ======== ========
Based on net asset value per share 1.04%+++ 8.17% 19.02% (15.07%) 8.22%+++
======== ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .79%* .82% .85% .75% .48%*
Net Assets:*** ======== ======== ======== ======== ========
Expenses .79%* .82% .85% .78% .83%*
======== ======== ======== ======== ========
Investment income--net 5.01%* 4.96% 5.38% 4.94% 4.85%*
======== ======== ======== ======== ========
Supplemental Net assets, net of Preferred Shares, end
Data: of period (in thousands) $ 78,449 $ 80,058 $ 78,695 $ 70,674 $ 89,438
======== ======== ======== ======== ========
Preferred Shares outstanding, end of
period (in thousands) $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000
======== ======== ======== ======== ========
Portfolio turnover 42.47% 116.82% 92.54% 100.98% 23.23%
======== ======== ======== ======== ========
Leverage: Asset coverage per $1,000 $ 2,961 $ 3,001 $ 2,967 $ 2,767 $ 3,236
======== ======== ======== ======== ========
Dividends Investment income--net $ 394 $ 861 $ 940 $ 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 that occurred on December 1, 1994.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
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, 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.
<PAGE>
* 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.
(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.
<PAGE>
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, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended April 30, 1997 were $49,929,902 and
$48,722,633, respectively.
Net realized and unrealized gains as of April 30, 1997 were as
follows:
Realized Unrealized
Gains Gains
Long-term investments $ 151,923 $3,654,492
--------- ----------
Total $ 151,923 $3,654,492
========= ==========
As of April 30, 1997, net unrealized appreciation for Federal income
tax purposes aggregated $3,654,492, of which $3,969,299 related to
appreciated securities and $314,807 related to depreciated
securities. The aggregate cost of investments at April 30, 1997 for
Federal income tax purposes was $110,674,146.
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.
<PAGE>
Common Shares
For the six months ended April 30, 1997, shares issued and
outstanding remained constant at 5,978,662. At April 30, 1997, 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, 1997 was 4.00%.
For the six months ended April 30, 1997, 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 six months ended
April 30, 1997, Merrill Lynch, Pierce, Fenner & Smith Inc., an
affiliate of FAM, earned $27,110 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 May 9, 1997, the Fund's Board of Trustees declared an ordinary
income dividend to Common Shareholders in the amount of $.062823 per
share, payable on May 29, 1997 to shareholders of record as of May
19, 1997.
