MUNIVEST
FLORIDA FUND
[Graphic Omitted]
STRATEGIC
Performance
Semi-Annual Report
April 30, 1998
<PAGE>
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.
In this case, the dividends paid to Preferred Share holders 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.
Managed Dividend
Policy
The Fund's dividend policy is to distribute substantially all of its net
investment income to its shareholders on a monthly basis. However, in order to
provide shareholders with a more consistent yield to the current trading price
of Common Shares of the Fund, the Fund may at times pay out less than the entire
amount of net investment income earned in any particular month and may at times
in any particular month pay out such accumulated but undistributed income in
addition to net investment income earned in that month. As a result, the
dividends paid by the Fund for any particular month may be more or less than the
amount of net investment income earned by the Fund during such month. The Fund's
current accumulated but undistributed net investment income, if any, is
disclosed in the Statement of Assets, Liabilities and Capital, which comprises
part of the financial information included in this report.
<PAGE>
MuniVest Florida Fund, April 30, 1998
DEAR SHAREHOLDER
For the six months ended April 30, 1998, the Common Shares of MuniVest Florida
Fund earned $0.382 per share income dividends, which included earned and unpaid
dividends of $0.062. This represents a net annualized yield of 5.59%, based on a
month-end net asset value of $13.77 per share. Over the same period, the total
investment return on the Fund's Common Shares was +2.07%, based on a change in
per share net asset value from $13.87 to $13.77, and assuming reinvestment of
$0.385 per share income dividends.
For the six months ended April 30, 1998, the Fund's Auction Market Preferred
Shares had an average yield of 3.50%.
The Municipal Market Environment
During the six months ended April 30, 1998, bond yields generally moved lower,
and by mid-January 1998 had declined to recent historic lows. Long-term US
Treasury bond yields declined 20 basis points (0.20%) during the same period and
stood at 5.95% by April 30, 1998. Similarly, long-term uninsured tax-exempt bond
yields, as measured by the Bond Buyer Revenue Bond Index, fell approximately 35
basis points to 5.25%, a level not seen since the mid-1970s. While low inflation
has supported lower interest rates, much of the decline in bond yields in late
1997 and early 1998 was driven more by the turmoil in Asian financial markets
than by domestic economic fundamentals. Weak economic conditions in Asia were
expected to negatively impact US growth through reduced export demand.
Additionally, inflation in the United States was also expected to decline in
response to lower prices on goods imported from Asian manufacturers.
However, in recent months, many investors have become increasingly concerned
that most of the downturn in Asia, especially in Japan, has already occurred
and any future deterioration will not be severe enough to constrain US economic
growth and inflationary pressures. These concerns served to push interest rates
higher in the latter part of the period, causing fixed-income yields to retrace
much of their earlier gains.
Thus far in 1998, the municipal bond market has experienced unexpectedly strong
supply pressures. These supply pressures have prevented tax-exempt bond yields
from declining as much as US Treasury bond yields. Over the last six months,
more than $135 billion in new tax-exempt bonds were underwritten, an increase of
over 40% compared to the same period a year ago. During the last three months,
municipalities issued over $72 billion in new securities, an increase of more
than 60% compared to the same three-month period in 1997. Additionally,
corporate issuers have also viewed current interest rate levels as an
opportunity to issue significant amounts of taxable securities. Thus far in
1998, over $100 billion in investment-grade corporate bonds have been
underwritten, an increase of more than 60% relative to the comparable period a
year ago. This sizeable corporate bond issuance has tended to support generally
higher fixed-income yields and reduce the demand for tax-exempt bonds.
However, the recent pace of new municipal bond issuance is unlikely to be
maintained. Continued increases in bond issuance will require lower and lower
tax-exempt bond yields to generate the economic savings necessary for additional
municipal bond refinancings. Preliminary estimates for 1998 total municipal bond
issuance are presently in the $200 billion - $225 billion range. These estimates
suggest that recent supply pressures are likely to abate later in the year.
Municipal bond investors received approximately $30 billion earlier this year in
coupon payments, bond maturities and proceeds from early redemptions. The demand
generated by these assets has helped offset the increase in supply seen thus far
this year. Furthermore, looking ahead, June and July have also tended to be
periods of strong investor demand as seasonal factors are likely to generate
strong income flows similar to those seen earlier this year.
It is also possible that at least some of the recent economic strength seen in
the United States will be reversed in the coming months. A particularly mild
winter has been partially responsible for a strong housing sector, as well as
other construction industries. This recent strong trend may not be sustained and
may lead to weaker construction growth later this year. Additionally, strong
economic growth in 1997 and the increased use of electronic tax filing have
resulted in larger and earlier Federal and state income tax refunds to many
individuals. These refunds appear to have supported strong consumer spending in
recent months, but may be borrowing against weaker spending later this year. In
addition, the continued impact of the Asian financial crisis on the US domestic
economy's future growth remains unclear. Barring a dramatic and unexpected
resurgence of domestic inflation, we do not believe that the Federal Reserve
Board will be willing to raise interest rates until the full impact of the Asian
situation can be established.
All these factors suggest that over the near term, tax-exempt as well as taxable
bond yields are unlikely to rise by any appreciable amount. Recent supply
pressures have caused municipal bond yield ratios to rise relative to US
Treasury bond yields. At April 30, 1998, long-term tax-exempt bond yields were
at attractive yield ratios relative to comparable US Treasury securities (over
90%), and well in excess of their expected range of 85% -88%. Any further
pressure upon the municipal market may well represent a very attractive
investment opportunity.
Portfolio Strategy
During the six months ended March 31, 1998, we shifted from our defensive
position to a more constructive investment outlook. We expected economic growth
to slow along with a continued reduction in inflation as a result of the
declines in Asian equity markets. As of April 30, 1998, only one of these
expectations had been met. Inflation has continued to fall but economic growth
has not slowed. Looking forward to the balance of 1998, we expect to maintain a
constructive outlook. We believe the continued instability of the Asian equity
markets will have a negative impact on the US economy, allowing inflation and
interest rates to decline further.
The yield on the Fund's Auction Market Preferred Shares has been trading between
3.15% -4.00% during the past 12 months. Recently, the yield has been at the
higher-end of this range because of temporary tax season pressure, but is
expected to return to the 3.40% level in the next few weeks. Leverage continues
to benefit the Fund's 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, as a result,
reduce the yield to 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,
/s/ Arthur Zeikel
Arthur Zeikel
President
/s/ Vincent R. Giordano
Vincent R. Giordano
Senior Vice President
/s/ Robert A. DiMella
Robert A. DiMella
Vice President and
Portfolio Manager
May 27, 1998
2 & 3
<PAGE>
MuniVest Florida Fund, April 30, 1998
SCHEDULE OF INVESTMENTS (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
================================================================================================================================
<S> <C> <C> <C> <C> <C>
Florida-- AAA Aaa $ 3,000 Bay Medical Center, Florida, Hospital Revenue Bonds
96.0% (Bay Medical Center Project), 5% due 10/01/2027 (b) $ 2,845
AAA Aaa 5,000 Brevard County, Florida, IDR (NUI Corporation
Project), AMT, 6.40% due 10/01/2024 (b) 5,398
AAA NR* 1,300 Broward County, Florida, HFA, Revenue Bonds, AMT,
Series A, 7.35% due 3/01/2023 (e)(f) 1,373
AAA Aaa 8,200 Citrus County, Florida, PCR, Refunding (Florida Power
Corp.--Crystal River), Series B, 6.35%
due 2/01/2022 (c) 8,850
AAA Aaa 5,000 Dade County, Florida, Aviation Revenue Bonds (Miami
International Airport), Series C, 5.125%
due 10/01/2027 (i) 4,863
AAA Aaa 1,125 Dade County, Florida, Educational Facilities
Authority, Exchangeable Revenue Bonds
(University of Miami), 7.65% due 4/01/2010 (c) 1,214
AA- VMIG1+ 3,000 Dade County, Florida, IDA, Exempt Facilities Revenue
Refunding Bonds (Florida Power and Light
Company), VRDN, 4.10% due 6/01/2021 (a) 3,000
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 2,434
AAA Aaa 3,000 Dade County, Florida, Water and Sewer System Revenue
Bonds, 5.25% due 10/01/2026 (d) 2,974
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) 3,284
NR* Aaa 2,230 Series A, 7.40% due 10/01/2023 2,347
BBB Baa1 1,920 Escambia County, Florida, PCR (Champion International
Corporation Project), AMT, 6.90%
due 8/01/2022 2,096
NR* Aaa 1,500 Florida HFA, Home Ownership Revenue Bonds, AMT,
Series G-1, 7.90% due 3/01/2022 (f) 1,585
Florida State Board of Education, Public Education
Revenue Bonds (Capital Outlay):
AA+ Aa2 1,000 Refunding, Series C, 5.50% due 6/01/2021 1,012
AAA Aaa 6,430 Series A, 6.75% due 6/01/2001 (h) 6,954
AAA Aaa 3,500 Series B, 6.70% due 6/01/2001 (h) 3,780
AA+ Aa2 2,000 Florida State Department of Transportation (Right of
Way Acquisition and Bridge), 5.375%
due 7/01/2026 2,003
AAA Aaa 2,000 Florida State Division Board Finance, Department of
General Services Revenue Bonds
(Department of Natural Resource Preservation), Series
2000-A, 6.75% due 7/01/2001 (b)(h) 2,184
AAA Aaa 4,700 Florida State Mid-Bay Bridge Authority, Crossover
Revenue Refunding Bonds, Series A, 5.95%
due 10/01/2022 (b) 4,980
AAA Aaa 5,000 Fort Myers, Florida, Improvement Revenue Refunding
Bonds, Series A, 5% due 12/01/2022 (b) 4,808
AA Aa 6,925 Gainesville, Florida, Utilities System Revenue Bonds,
Series A, 6.50% due 10/01/2002 (h) 7,631
A A3 5,400 Hillsborough County, Florida, Capital Improvement
Revenue Bonds (County Center Project),
Second Series, 6.75% due 7/01/2002 (h) 5,971
AAA Aaa 2,000 Hillsborough County, Florida, Utility Revenue
Refunding Bonds, Series B, 6.50% due 8/01/2016 (c) 2,151
Jacksonville, Florida, Health Facilities Authority,
Hospital Revenue Bonds:
AAA Aaa 4,000 (Charity Obligation Group), Series A, 5.125% due
8/15/2027 (c) 3,867
AA+ NR* 2,000 Refunding (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 363
AAA Aaa 1,000 Lakeland, Florida, Electric and Water Revenue
Refunding and Improvement Bonds (Junior Sub
Lien), Series B, 6% due 10/01/2007 (d) 1,104
NR* Aaa 3,250 Manatee County, Florida, HFA, S/F Mortgage Revenue
Bonds, AMT, Sub-Series 2, 7.75%
due 5/01/2026 (f) 3,693
Miami-Dade County, Florida, Special Obligation
Revenue Bonds (c):
AAA Aaa 2,000 Refunding, Series A, 5.10%** due 10/01/2015 787
AAA Aaa 5,000 Refunding, Series A, 5.178%** due 10/01/2017 1,755
AAA Aaa 5,000 Series B, 5.66%** due 10/01/2032 749
AAA Aaa 3,000 Series B, 5% due 10/01/2037 2,828
BBB+ Baa 2,890 Nassau County, Florida, PCR, Refunding (ITT Rayonier,
Inc. Project), 6.20% due 7/01/2015 3,027
AAA Aaa 1,150 Okaloosa County, Florida, Gas District Revenue Bonds
(Gas System), Series A, 5.125%
due 10/01/2016 (c) 1,145
AAA Aaa 1,890 Palm Beach County, Florida, Criminal Justice
Facilities Revenue Bonds, 7.20% due 6/01/2015 (d) 2,346
AAA Aaa 1,200 Port Everglades Authority, Florida, Port Improvement
Revenue Bonds, 7.125% due 11/01/2016 (g) 1,449
AAA Aaa 5,000 Port Saint Lucie, Florida, Utility Revenue Refunding
& Improvement Bonds, Series A, 5.125%
due 9/01/2027 (c) 4,863
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 1,082
AAA Aaa 2,500 Tampa, Florida Sports Authority Revenue Bonds (Sales
Tax Payments--Stadium Project),
5.25% due 1/01/2027 (c) 2,478
================================================================================================================================
Puerto Rico-- AAA Aaa 5,000 Puerto Rico Commonwealth Infrastructure Financing
4.0% Authority, Special Tax Revenue Bonds, Series A, 5%
due 7/01/2017 (b) 4,897
================================================================================================================================
Total Investments (Cost--$117,408)--100.0% 122,360
Liabilities in Excess of Other Assets--(0.0%) (12)
Net Assets--100.0% $122,348
========
================================================================================================================================
</TABLE>
(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, 1998.
(b) AMBAC Insured.
(c) MBIA Insured.
(d) FGIC Insured.
(e) FNMA Collateralized.
(f) GNMA Collateralized.
(g) Escrowed to Maturity.
(h) Prerefunded.
(i) FSA Insured.
* 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.
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)
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
S/F Single-Family
VRDN Variable Rate Demand Notes
Quality Profile The quality ratings of securities in the Fund as of April 30,
1998 were as follows:
--------------------------------------------------------------
Percent of
S&P Rating/Moody's Rating Net Assets
--------------------------------------------------------------
AAA/Aaa............................ 74.8%
AA/Aa ............................. 13.4
A/A................................ 4.9
BBB/Baa............................ 4.5
Other+............................. 2.4
--------------------------------------------------------------
+ Temporary investments in short-term municipal securities.
4 & 5
<PAGE>
MuniVest Florida Fund, April 30, 1998
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<TABLE>
<CAPTION>
As of April 30, 1998
============================================================================================================================
<S> <C> <C> <C>
Assets: Investments, at value (identified cost--$117,408,459) (Note 1a). $122,359,516
Cash............................................................ 99,651
Receivables:
Securities sold............................................... $ 2,091,075
Interest...................................................... 1,699,977 3,791,052
-----------
Deferred organization expenses (Note 1e)........................ 2,642
Prepaid expenses and other assets............................... 36,021
------------
Total assets.................................................... 126,288,882
------------
============================================================================================================================
Liabilities: Payables:
Securities purchased.......................................... 3,765,983
Dividends to shareholders (Note 1f)........................... 78,606
Investment adviser (Note 2)................................... 50,805 3,895,394
-----------
Accrued expenses and other liabilities.......................... 45,531
------------
Total liabilities............................................... 3,940,925
------------
============================================================================================================================
Net Assets: Net assets...................................................... $122,347,957
============
============================================================================================================================
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 (5,982,149 shares
issued and outstanding)......................................... $ 598,215
Paid-in capital in excess of par................................ 83,246,930
Undistributed investment income--net............................ 436,336
Accumulated realized capital losses on investments--net (Note 5) (6,884,581)
Unrealized appreciation on investments--net..................... 4,951,057
-----------
Total--Equivalent to $13.77 net asset value per Common Share
(market price--$14.0625)........................................ 82,347,957
------------
Total capital................................................... $122,347,957
============
============================================================================================================================
</TABLE>
*Auction Market Preferred Shares.
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For the Six Months Ended April 30, 1998
============================================================================================================================
<S> <C> <C> <C>
Investment Interest and amortization of premium and discount earned........ $ 3,410,476
Income (Note 1d):
============================================================================================================================
Expenses: Investment advisory fees (Note 2)............................... $ 303,762
Commission fees (Note 4)........................................ 50,729
Professional fees............................................... 36,623
Accounting services (Note 2).................................... 25,771
Transfer agent fees............................................. 14,724
Trustees' fees and expenses..................................... 12,869
Listing fees.................................................... 7,925
Printing and shareholder reports................................ 7,155
Custodian fees.................................................. 5,097
Pricing fees.................................................... 3,277
Amortization of organization expenses (Note 1e)................. 432
Other........................................................... 6,884
Total expenses.................................................. --------- 475,248
-----------
Investment income--net.......................................... 2,935,228
-----------
============================================================================================================================
Realized & Realized gain on investments--net............................... 1,487,776
Unrealized Gain Change in unrealized appreciation on investments--net........... (2,054,960)
(Loss) on -----------
Investments--Net Net Increase in Net Assets Resulting from Operations............ $ 2,368,044
(Notes 1b, 1d & 3): ===========
============================================================================================================================
</TABLE>
See Notes to Financial Statements.
6 & 7
<PAGE>
MuniVest Florida Fund, April 30, 1998
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 1998 1997
=============================================================================================================================
<S> <C> <C> <C>
Operations: Investment income--net........................................... $ 2,935,228 $ 6,012,077
Realized gain on investments--net................................ 1,487,776 1,216,839
Change in unrealized appreciation/depreciation on
investments--net................................................. (2,054,960) 1,616,148
------------ ------------
Net increase in net assets resulting from operations............ 2,368,044 8,845,064
------------ ------------
=============================================================================================================================
Dividends to Investment income--net:
Shareholders Common Shares................................................. (2,299,605) (4,635,108)
(Note 1f): Preferred Shares.............................................. (687,264) (1,349,984)
------------ ------------
Net decrease in net assets resulting from dividends to
shareholders.................................................... (2,986,869) (5,985,092)
------------ ------------
=============================================================================================================================
Capital Share Value of shares issued to Common Shareholders in reinvestment
Transactions of dividends.................................................... 49,203 --
(Note 4): ------------ ------------
Net increase in net assets derived from capital share
transactions.................................................... 49,203 --
------------ ------------
=============================================================================================================================
Net Assets: Total increase (decrease) in net assets......................... (569,622) 2,859,972
Beginning of period............................................. 122,917,579 120,057,607
------------ ------------
End of period*.................................................. $122,347,957 $122,917,579
============ ============
=============================================================================================================================
* Undistributed investment income--net........................... $ 436,336 $ 487,977
============ ============
=============================================================================================================================
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
The following per share data and ratios have been derived For the Six
from information provided in the financial statements. Months Ended For the Year Ended October 31,
April 30, --------------------------------------
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
==================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ...................... $ 13.87 $ 13.39 $ 13.16 $ 11.82 $ 14.99
Operating -------- ------- ------- ------- -------
Performance: Investment income--net .................................... .48 1.01 .99 1.01 1.00
Realized and unrealized gain (loss) on investments--net ... (.09) .48 .23 1.34 (3.05)
-------- ------- ------- ------- -------
Total from investment operations .......................... .39 1.49 1.22 2.35 (2.05)
-------- ------- ------- ------- -------
Less dividends and distributions to Common Shareholders:
Investment income--net .................................. (.38) (.78) (.76) (.76) (.84)
Realized gain on investments--net ....................... -- -- -- -- (.11)
-------- ------- ------- ------- -------
Total dividends and distributions to Common Shareholders .. (.38) (.78) (.76) (.76) (.95)
-------- ------- ------- ------- -------
Effect of Preferred Share activity:
Dividends and distributions to Preferred Shareholders:
Investment income--net ................................ (.11) (.23) (.23) (.25) (.15)
Realized gain on investments--net ..................... -- -- -- -- (.02)
-------- ------- ------- ------- -------
Total effect of Preferred Share activity .................. (.11) (.23) (.23) (.25) (.17)
-------- ------- ------- ------- -------
Net asset value, end of period ............................ $ 13.77 $ 13.87 $ 13.39 $ 13.16 $ 11.82
======== ======= ======= ======= =======
Market price per share, end of period ..................... $14.0625 $ 13.00 $ 12.75 $ 11.50 $ 10.00
======== ======= ======= ======= =======
==================================================================================================================================
Total Investment Based on market price per share ........................... 11.22%++ 8.21% 17.87% 22.93% (28.20%)
Return:** ======== ======= ======= ======= =======
Based on net asset value per share ........................ 2.07%++ 9.93% 8.17% 19.02% (15.07%)
======== ======= ======= ======= =======
==================================================================================================================================
Ratios to Average Expenses, net of reimbursement ............................ .78%* .78% .82% .85% .75%
Net Assets:*** ======== ======= ======= ======= =======
Expenses .................................................. .78%* .78% .82% .85% .78%
======== ======= ======= ======= =======
Investment income--net .................................... 4.83%* 4.96% 4.96% 5.38% 4.94%
======== ======= ======= ======= =======
==================================================================================================================================
Supplemental Net assets, net of Preferred Shares, end of period
Data: (in thousands) ............................................ $ 82,348 $82,918 $80,058 $78,695 $70,674
======== ======= ======= ======= =======
Preferred Shares outstanding, end of period
(in thousands) ............................................ $ 40,000 $40,000 $40,000 $40,000 $40,000
======== ======= ======= ======= =======
Portfolio turnover ........................................ 26.08% 89.21% 116.82% 92.54% 100.98%
======== ======= ======= ======= =======
==================================================================================================================================
Leverage: Asset coverage per $1,000 ................................. $ 3,059 $ 3,073 $ 3,001 $ 2,967 $ 2,767
======== ======= ======= ======= =======
==================================================================================================================================
Dividends
Per Share on Investment income--net .................................... $ 430 $ 844 $ 861 $ 940 $ 569
Preferred Shares ======== ======= ======= ======= =======
Outstanding:+
==================================================================================================================================
</TABLE>
* 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.
+ 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.
8 & 9
<PAGE>
MuniVest Florida Fund, April 30, 1998
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.
o Financial futures contracts--The Fund may purchase or sell financial 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.
o 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 trans actions 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.
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, including
proceeds from the issuance of Preferred Shares.
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, 1998 were $31,392,770 and $32,039,936, respectively.
Net realized gains for the six months ended April 30, 1998 and net unrealized
gains as of April 30, 1998 were as follows:
- -------------------------------------------------------------------------------
Realized Unrealized
Gains Gains
- -------------------------------------------------------------------------------
Long-term investments .................... $1,487,776 $4,951,057
---------- ----------
Total .................................... $1,487,776 $4,951,057
========== ==========
- -------------------------------------------------------------------------------
As of April 30, 1998, net unrealized appreciation for Federal income tax
purposes aggregated $4,951,057, of which $5,341,491 related to appreciated
securities and $390,434 related to depreciated securities. The aggregate cost of
investments at April 30, 1998 for Federal income tax purposes was $117,408,459.
4. Capital Share 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
Shares issued and outstanding during the six months ended April 30, 1998
increased by 3,487 as a result of dividend reinvestment and during the year
ended October 31, 1997 remained constant.
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, 1998 was
3.79%.
For the six months ended April 30, 1998, 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, 1998, Merrill Lynch, Pierce,
Fenner & Smith Inc., an affiliate of FAM, earned $37,037 as commissions.
5. Capital Loss Carryforward:
At October 31, 1997, the Fund had a capital loss carryforward of approximately
$6,318,000, of which $4,064,000 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 7, 1998, the Fund's Board of Trustees declared an ordinary income
dividend to Common Shareholders in the amount of $.061981 per share, payable on
May 28, 1998 to shareholders of record as of May 21, 1998.
10 & 11
<PAGE>
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
Fred G. Weiss, 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
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 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 #16636--4/98
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