MUNIVEST
FLORIDA FUND
[GRAPHIC OMITTED]
STRATEGIC
Performance
Semi-Annual Report
April 30, 1999
<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 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, their 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.
As a part of its investment strategy, the Fund may invest in certain securities
whose potential income return is inversely related to changes in a floating
interest rate ("inverse floaters"). In general, income on inverse floaters will
decrease when short-term interest rates increase and increase when short-term
interest rates decrease. Investments in inverse floaters may be characterized as
derivative securities and may subject the Fund to the risks of reduced or
eliminated interest payments and losses of invested principal. In addition,
inverse floaters have the effect of providing investment leverage and, as a
result, the market value of such securities will generally be more volatile than
that of fixed-rate, tax-exempt securities. To the extent the Fund invests in
inverse floaters, the market value of the Fund's portfolio and the net asset
value of the Fund's shares may also be more volatile than if the Fund did not
invest in these securities.
<PAGE>
MuniVest Florida Fund, April 30, 1999
DEAR SHAREHOLDER
For the six months ended April 30, 1999, the Common Shares of MuniVest Florida
Fund earned $0.365 per share income dividends, which included earned and unpaid
dividends of $0.057. This represents a net annualized yield of 5.29%, based on a
month-end per share net asset value of $13.89. Over the same period, the total
investment return on the Fund's Common Shares was +0.47%, based on a change in
per share net asset value from $14.20 to $13.89, and assuming reinvestment of
$0.373 per share income dividends.
For the six-month period ended April 30, 1999, the Fund's Auction Market
Preferred Shares had an average yield of 2.94%.
The Municipal Market Environment
During the six months ended April 30, 1999, long-term bond yields generally
moved higher. From November 1998 through mid-January 1999, long-term bond yields
traded in a relatively narrow range. However, during February, a number of
economic indicators were released that suggested that economic growth in the
United States would likely remain strong throughout most of 1999. Consequently,
long-term US Treasury bond yields rose more than 60 basis points (0.60%) to
5.70% by early March. During the remainder of the six-month period, US Treasury
bond yields traded between 5.50% and 5.70% as the lack of inflationary pressures
offset much of the concerns generated by continued strong economic growth.
During most of the period, long-term, uninsured tax-exempt bond yields exhibited
far less volatility and were largely stable. Also, long-term municipal bond
yields rose just 5 basis points to 5.29% at the end of April 1999, as measured
by the Bond Buyer Revenue Bond Index.
In recent months, the tax-exempt market was better able to withstand much of the
upward pressure on bond yields because of its stronger technical position. While
the continued positive inflationary environment limited some of the recent
increases in taxable bond yields, a deteriorating supply/demand position helped
push taxable bond yields significantly higher than municipal bond yields. Much
of the US Treasury bond market's underperformance in recent months can be
attributed to the large amounts of taxable corporate issuance. Large taxable
corporate underwritings reduced the demand for US Government securities in
recent months, pushing US Treasury bond yields higher.
On the other hand, the tax-exempt bond market enjoyed only limited new-issue
supply. During the six months ended April 30, 1999, more than $123 billion in
new long-term tax-exempt securities was underwritten, a decline of 10% compared
to the same period a year ago. Municipalities issued less than $60 billion in
long-term tax-exempt securities during the three months ended April 30, 1999, a
decline of 25% compared to the April 30, 1998 quarter. More recently, the rate
of new tax-exempt issuance has declined even further. During April 1999, just
over $15 billion in long-term tax-exempt securities was marketed, a decline of
over 33% compared to April 1998 levels. As municipal bond yields fell and
stabilized in recent quarters, the ability of municipalities to refinance
existing higher-couponed debt declined. This led to a significant decrease in
refunding issuance and an overall drop in new municipal bond supply. When
coupled with ongoing, moderate retail and institutional demand, the tax-exempt
bond market was able to avoid much of the yield volatility exhibited by US
Treasury securities.
Looking ahead, the expected combination of moderate economic growth in the
United States and continued negligible inflation suggests a relatively stable
interest rate environment. However, in recent years, bond yields reached their
annual peaks in early May and declined for the remainder of the year. A
meaningful decline in fixed-income bond yields would require either evidence of
a significant slowdown in the US economy or the resumption of concerns regarding
renewed shocks to the world's economic system. Currently, neither condition
exists or seems likely in the immediate future. In our opinion, this suggests a
continuation of the narrow trading ranges seen in recent months.
Portfolio Strategy
During the last several months, we adopted a neutral investment strategy, since
indicators pointed to a continuation of both benign inflation and healthy
domestic economic growth. These favorable conditions led us to believe that
long-term tax-exempt bond yields would remain trading within a somewhat narrow
range. Therefore, we chose to focus on income-producing securities rather than
on those issues with the potential for capital gains. We believed that coupon
income could be the more significant segment for the Fund if the tax-exempt bond
market performed as anticipated. Keeping shareholder income in mind, MuniVest
Florida Fund remained fully invested for most of the past several months, and we
expect to maintain this position going forward.
Short-term tax-exempt yields exhibited considerable volatility in recent months.
Interest rates paid to the Fund's Preferred Shareholders traded below 3% in
December 1998, reflecting heightened investor demand at year-end. Current
short-term interest rate levels reflect tax season-related pressures, which we
expect to abate soon. During the six-month period ended April 30, 1999,
leveraging generated a significant incremental yield to the Fund's Common
Shareholders. Because we believe that the Federal Reserve Board's monetary
policy is likely to remain in a narrow range for the remainder of the year, we
expect short-term tax-exempt interest rates to remain at, or slightly below,
current levels. However, should the spread between short-term and long-term
interest rates narrow, the benefits of the leverage will decline and, as a
result, reduce the yield 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 ahead.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President
/s/ Vincent R. Giordano
Vincent R. Giordano
Senior Vice President
/s/ William R. Bock
William R. Bock
Vice President and
Portfolio Manager
June 4, 1999
================================================================================
After more than 20 years of service, Arthur Zeikel recently retired as Chairman
of Merrill Lynch Asset Management, L.P. (MLAM). Mr. Zeikel served as President
of MLAM from 1977 to 1997 and as Chairman since December 1997. Mr. Zeikel is one
of the country's most respected leaders in asset management and presided over
the growth of Merrill Lynch's asset management business. During his tenure,
client assets under management grew from $300 million to over $500 billion. Mr.
Zeikel will remain on MuniVest Florida Fund's Board of Trustees. We are pleased
to announce that Terry K. Glenn has been elected President and Trustee of the
Fund. Mr. Glenn has held the position of Executive Vice President of MLAM since
1983.
Mr. Zeikel's colleagues at MLAM join the Fund's Board of Trustees in wishing him
well in his retirement from Merrill Lynch and are pleased that he will continue
as a member of the Fund's Board of Trustees.
================================================================================
2 & 3
<PAGE>
MuniVest Florida Fund, April 30, 1999
PROXY RESULTS
During the six-month period ended April 30, 1999, MuniVest Florida Fund's Common
Shareholders voted on the following proposals. Proposals 1 and 2 were approved
at a shareholders' meeting on April 21, 1999. The meeting was adjourned with
respect to Proposal 3. The description of each proposal and number of shares
voted are as follows:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1. To elect the Fund's Trustees: Terry K. Glenn 5,434,455 194,931
Edward H. Meyer 5,433,543 195,843
Jack B. Sunderland 5,433,543 195,843
J. Thomas Touchton 5,434,455 194,931
Fred G. Weiss 5,434,455 194,931
Arthur Zeikel 5,434,443 194,943
<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. 5,513,847 32,887 82,652
- -----------------------------------------------------------------------------------------------------------------------
3. To approve an amendment to the Certificate of Designation of the Fund. Adjourned Adjourned Adjourned
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
During the six-month period ended April 30, 1999, MuniVest Florida Fund's
Preferred Shareholders voted on the following proposals. Proposals 1 and 2 were
approved at a shareholders' meeting on April 21, 1999. The meeting was adjourned
with respect to Proposal 3. The description of each proposal and number of
shares voted are as follows:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Withheld
For From Voting
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1. To elect the Fund's Board of Trustees: Terry K. Glenn, Donald Cecil,
M. Colyer Crum, Edward H. Meyer, Jack B. Sunderland, J. Thomas Touchton,
Fred G. Weiss and Arthur Zeikel. 1,434 0
<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. 1,415 0 18
- -----------------------------------------------------------------------------------------------------------------------
3. To approve an amendment to the Certificate of Designation of the Fund. Adjourned Adjourned Adjourned
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
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>
Alabama--0.8% AAA NR* $1,000 Jefferson County, Alabama, Sewer Revenue Bonds, RIB, Series 124,
6.39% due 2/01/2036 (d)(i) $ 1,038
===================================================================================================================================
California--1.1% A1+ NR* 1,300 California Pollution Control Financing Authority, PCR, Refunding
(Pacific Gas and Electric), VRDN, Series D, 4.10% due
11/01/2026 (a) 1,300
===================================================================================================================================
Florida--101.9% AAA Aaa 1,000 Bay Medical Center, Florida, Hospital Revenue Bonds (Bay Medical
Center Project), 5% due 10/01/2027 (b) 973
AAA Aaa 5,000 Brevard County, Florida, IDR (NUI Corporation Project), AMT, 6.40%
due 10/01/2024 (b) 5,564
AAA Aaa 4,000 Broward County, Florida, Airport System Revenue Bonds (Passenger
Facility), Convertible Lien, Series H-2, 4.75% due 10/01/2023 (b) 3,784
AAA NR* 1,100 Broward County, Florida, HFA, Revenue Refunding Bonds (Home
Mortgage), AMT, Series A, 7.35% due 3/01/2023 (e)(f) 1,152
AAA Aaa 8,200 Citrus County, Florida, PCR, Refunding (Florida Power
Corporation--Crystal River), Series B, 6.35% due 2/01/2022 (c) 8,918
AAA Aaa 1,125 Dade County, Florida, Educational Facilities Authority Revenue
Bonds (University of Miami), 7.65% due 4/01/2010 (c) 1,188
AA- Aa3 2,250 Dade County, Florida, IDA, Solid Waste Disposal Revenue Bonds
(Florida Power and Light Company Project), AMT, 7.15% due 2/01/2023 2,410
A1+ VMIG1+ 200 Dade County, Florida, Water and Sewer System Revenue Bonds, VRDN,
3.85% due 10/05/2022 (a)(d) 200
Escambia County, Florida, HFA, S/F Mortgage Revenue Refunding
Bonds, AMT (f):
AAA Aaa 3,000 7% due 4/01/2028 (e) 3,289
NR* Aaa 2,075 Series A, 7.40% due 10/01/2023 (j) 2,170
BBB Baa1 4,045 Escambia County, Florida, PCR (Champion International Corporation
Project), AMT, 6.90% due 8/01/2022 4,464
A1 VMIG1+ 600 Escambia County, Florida, PCR, Refunding (Gulf Power Company
Project), VRDN, 4.20% due 7/01/2022 (a) 600
NR* Aaa 1,135 Florida HFA, Home Ownership Revenue Bonds, AMT, Series G-1, 7.90%
due 3/01/2022 (f) 1,193
AAA Aaa 1,155 Florida Ports Financing Commission Revenue Bonds (State
Transportation Trust Fund), AMT, 5.375% due 6/01/2027 (c) 1,175
AAA Aaa 2,000 Florida State Board of Education, Capital Outlay, GO (Public
Education), Series B, 4.50% due 6/01/2023 (c) 1,824
===================================================================================================================================
</TABLE>
Portfolio
Abbreviations
To simplify the listings of MuniVest Florida Fund's portfolio holdings in the
Schedule of Investments, we have abbreviated the names of many of the securities
according to the list below and at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DATES Daily Adjustable Tax-Exempt Securities
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
S/F Single-Family
VRDN Variable Rate Demand Notes
4 & 5
<PAGE>
MuniVest Florida Fund, April 30, 1999
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Florida AA+ Aa2 $ 3,565 Florida State Board of Education, Capital Outlay, GO, Refunding
(concluded) (Public Education), Series C, 5.25% due 6/01/2007 $ 3,814
AA+ Aa2 5,000 Florida State Board of Education, Capital Outlay, GO, Series C,
5.85% due 6/01/2003 (g) 5,433
AAA Aaa 1,000 Florida State, GO (Department of Transportation--Right of Way),
5.875% due 7/01/2005 (c)(g) 1,111
NR* Aaa 4,700 Florida State Mid-Bay Bridge Authority Revenue Refunding Bonds,
Series A, 5.95% due 10/01/2022 (b) 5,102
AAA Aaa 2,775 Florida State Turnpike Authority, Turnpike Revenue Bonds
(Department of Transportation), Series B, 5% due 7/01/2016 (c) 2,790
AAA Aaa 5,000 Fort Myers, Florida, Improvement Revenue Refunding Bonds, Series A,
5% due 12/01/2022 (b) 4,905
A- Baa1 2,000 Highlands County, Florida, Health Facilities Authority Revenue
Bonds (Adventist Hospital Health System), 5.25% due 11/15/2020 1,950
A A3 3,000 Hillsborough County, Florida, Capital Improvement Revenue Bonds
(County Center Project), Second Series, 6.75% due 7/01/2002 (g) 3,322
AAA Aaa 2,000 Hillsborough County, Florida, Utility Revenue Refunding Bonds,
Series B, 6.50% due 8/01/2016 (c) 2,149
AA Aa2 2,500 Jacksonville, Florida, Electric Authority Revenue Bonds (Electric
System), Series 3-A, 5.10% due 10/01/2032 2,460
AA Aa2 4,000 Jacksonville, Florida, Electric Authority, Revenue Refunding Bonds
(St. John's River), Issue 2, Series 9, 5.25% due 10/01/2021 4,023
Jacksonville, Florida, Health Facilities Authority, Hospital
Revenue Refunding Bonds:
NR* VMIG1+ 1,500 (Genesis Rehabilitation Hospital), VRDN, 4.25% due 5/01/2021 (a) 1,500
AA+ NR* 2,000 (Saint Luke's Hospital Association Project), 7.125% due 11/15/2020 2,169
NR* Baa1 345 Jacksonville, Florida, Health Facilities Authority, IDR (National
Benevolent--Cypress Village), Series A, 6.125% due 12/01/2016 361
NR* Aaa 2,705 Manatee County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT,
Sub-Series 2, 7.75% due 5/01/2026 (f)(k) 2,949
AAA Aaa 2,460 Miami-Dade County, Florida, GO (Parks Program), 4.75% due
11/01/2023 (d) 2,327
BBB+ Baa1 2,890 Nassau County, Florida, PCR, Refunding (ITT Rayonier Inc. Project),
6.20% due 7/01/2015 3,047
AAA Aaa 1,150 Okaloosa County, Florida, Gas District, Revenue Refunding Bonds (Gas
Systems), Series A, 5.125% due 10/01/2016 (c) 1,175
Orange County, Florida, School Board, COP, Series A (c):
NR* Aaa 4,250 5.25% due 8/01/2023 4,318
NR* Aaa 5,000 5% due 8/01/2024 4,887
AAA Aaa 5,000 Orlando and Orange County Expressway Authority, Florida, Expressway
Revenue Refunding Bonds (Junior Lien), 5% due 7/01/2021 (d) 4,940
AAA Aaa 1,890 Palm Beach County, Florida, Criminal Justice Facilities Revenue
Bonds, 7.20% due 6/01/2015 (d) 2,409
AAA Aaa 2,500 Peace River/Manasota, Florida, Regional Water Supply Authority
Revenue Bonds (Peace River Option Project), Series A, 5% due
10/01/2028 (c) 2,443
A1+ VMIG1+ 3,300 Pinellas County, Florida, Health Facilities Authority, Revenue
Refunding Bonds (Pooled Hospital Loan Program), DATES, 4% due
12/01/2015 (a)(b) 3,300
AAA Aaa 1,500 Polk County, Florida, School Board, COP, Series A, 5% due
1/01/2024 (h) 1,469
AAA Aaa 1,200 Port Everglades Authority, Florida, Port Revenue Bonds, 7.125% due
11/01/2016 (l) 1,483
AA- Aa3 1,000 Saint Lucie County, Florida, Solid Waste Disposal Revenue Bonds
(Florida Power and Light Company Project), AMT, 6.70% due 5/01/2027 1,081
NR* Aaa 5,000 Sarasota County, Florida, Public Hospital Board, Revenue Refunding
Bonds, RIB, Series 99, 6.665% due 7/01/2028 (c)(i) 5,650
AAA Aaa 2,500 Tampa, Florida, Sports Authority Revenue Bonds (Sales Tax
Payments--Stadium Project), 5.25% due 1/01/2027 (c) 2,540
AAA Aaa 1,500 Tampa, Florida, Sports Authority, Revenue Refunding Bonds (County
Interlocal Payments), 5% due 10/01/2028 (b) 1,466
===================================================================================================================================
New York--3.4% A1+ VMIG1+ 4,200 Long Island Power Authority, New York, Electric System Revenue
Bonds, VRDN, Sub-Series 5, 4.25% due 5/01/2033 (a) 4,200
===================================================================================================================================
Texas--0.9% A1+ NR* 1,100 Harris County, Texas, Health Facilities Development Corporation,
Hospital Revenue Refunding Bonds (Methodist Hospital), VRDN, 4.25%
due 12/01/2025 (a) 1,100
===================================================================================================================================
Total Investments (Cost--$129,490)--108.1% 133,115
Liabilities in Excess of Other Assets--(8.1%) (9,948)
--------
Net Assets--100.0% $123,167
========
===================================================================================================================================
</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,
1999.
(b) AMBAC Insured.
(c) MBIA Insured.
(d) FGIC Insured.
(e) FNMA Collateralized.
(f) GNMA Collateralized.
(g) Prerefunded.
(h) FSA Insured.
(i) The interest rate is subject to change periodically and inversely based
upon prevailing market rates. The interest rate shown is the rate in
effect at April 30, 1999.
(j) FHA Insured.
(k) FHLMC Collateralized.
(l) Escrowed to maturity.
* Not Rated.
+ Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
Quality Profile
The quality ratings of securities in the Fund as of April 30, 1999 were as
follows:
- --------------------------------------------------------------------------------
Percent of
S&P Rating/Moody's Rating Net Assets
- --------------------------------------------------------------------------------
AAA/Aaa............................................................... 70.1%
AA/Aa ................................................................ 17.4
A/A................................................................... 4.3
BBB/Baa............................................................... 6.4
Other+................................................................ 9.9
- --------------------------------------------------------------------------------
+ Temporary investments in short-term municipal securities.
6 & 7
<PAGE>
MuniVest Florida Fund, April 30, 1999
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<TABLE>
As of April 30, 1999
============================================================================================================================
<S> <C> <C> <C>
Assets: Investments, at value (identified cost--$129,489,541) (Note 1a) ..... $133,115,138
Cash ................................................................ 236,325
Receivables:
Interest .......................................................... $ 1,840,678
Securities sold ................................................... 1,189,865 3,030,543
------------
Prepaid expenses and other assets ................................... 6,657
------------
Total assets ........................................................ 136,388,663
------------
============================================================================================================================
Liabilities: Payables:
Securities purchased .............................................. 13,113,067
Investment adviser (Note 2) ....................................... 54,202
Dividends to shareholders (Note 1e) ............................... 42,780 13,210,049
------------
Accrued expenses and other liabilities .............................. 11,295
------------
Total liabilities ................................................... 13,221,344
------------
============================================================================================================================
Net Assets: Net assets .......................................................... $123,167,319
============
============================================================================================================================
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 (5,988,782 shares issued
and outstanding) .................................................. $ 598,878
Paid-in capital in excess of par .................................... 83,340,130
Undistributed investment income--net ................................ 519,558
Accumulated realized capital losses on investments--net (Note 5) .... (4,916,844)
Unrealized appreciation on investments--net ......................... 3,625,597
------------
Total--Equivalent to $13.89 net asset value per Common Share
(market price--$13.5625) ............................................ 83,167,319
------------
Total capital ....................................................... $123,167,319
============
============================================================================================================================
</TABLE>
* Auction Market Preferred Shares.
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
<TABLE>
For the Six Months Ended April 30, 1999
=================================================================================================================
<S> <C> <C>
Investment Interest and amortization of premium and discount earned ... $ 3,287,591
Income (Note 1d):
=================================================================================================================
Expenses: Investment advisory fees (Note 2) .......................... $ 310,276
Commission fees (Note 4) ................................... 49,216
Professional fees .......................................... 34,948
Accounting services (Note 2) ............................... 24,905
Transfer agent fees ........................................ 19,382
Printing and shareholder reports ........................... 13,847
Trustees' fees and expenses ................................ 13,318
Listing fees ............................................... 7,852
Custodian fees ............................................. 5,521
Pricing fees ............................................... 3,440
Other ...................................................... 6,861
-----------
Total expenses ............................................. 489,566
-----------
Investment income--net ..................................... 2,798,025
-----------
=================================================================================================================
Realized & Realized loss on investments--net .......................... (134,884)
Unrealized Loss on Change in unrealized appreciation on investments--net ...... (1,715,107)
Investments--Net -----------
(Notes 1b, 1d & 3): Net Increase in Net Assets Resulting from Operations ....... $ 948,034
===========
=================================================================================================================
</TABLE>
See Notes to Financial Statements.
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: 1999 1998
===================================================================================================================================
<S> <C> <C> <C>
Operations: Investment income--net ...................................................... $ 2,798,025 $ 5,943,665
Realized gain (loss) on investments--net .................................... (134,884) 3,590,397
Change in unrealized appreciation/depreciation on investments--net .......... (1,715,107) (1,665,313)
------------ ------------
Net increase in net assets resulting from operations ........................ 948,034 7,868,749
------------ ------------
===================================================================================================================================
Dividends to Investment income--net:
Shareholders Common Shares ............................................................. (2,236,063) (4,560,158)
(Note 1e): Preferred Shares .......................................................... (587,328) (1,326,560)
------------ ------------
Net decrease in net assets resulting from dividends to shareholders ......... (2,823,391) (5,886,718)
------------ ------------
===================================================================================================================================
Beneficial Interest Value of shares issued to Common Shareholders in reinvestment of dividends .. 93,863 49,203
Transactions ------------ ------------
(Note 4):
===================================================================================================================================
Net Assets: Total increase (decrease) in net assets ..................................... (1,781,494) 2,031,234
Beginning of period ......................................................... 124,948,813 122,917,579
------------ ------------
End of period* .............................................................. $123,167,319 $124,948,813
============ ============
===================================================================================================================================
* Undistributed investment income--net ........................................ $ 519,558 $ 544,924
============ ============
===================================================================================================================================
</TABLE>
See Notes to Financial Statements.
8 & 9
<PAGE>
MuniVest Florida Fund, April 30, 1999
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
The following per share data and ratios have been
derived from information provided in the financial For the Six
statements. Months Ended For the Year Ended October 31,
April 30, -----------------------------------------
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ................... $ 14.20 $ 13.87 $ 13.39 $ 13.16 $ 11.82
Operating -------- -------- -------- -------- --------
Performance: Investment income--net ................................. .47 .99 1.01 .99 1.01
Realized and unrealized gain (loss) on
investments--net ....................................... (.31) .32 .48 .23 1.34
-------- -------- -------- -------- --------
Total from investment operations ....................... .16 1.31 1.49 1.22 2.35
-------- -------- -------- -------- --------
Less dividends to Common Shareholders from investment
income--net ............................................ (.37) (.76) (.78) (.76) (.76)
-------- -------- -------- -------- --------
Effect of Preferred Share activity:
Dividends to Preferred Shareholders from investment
income--net .......................................... (.10) (.22) (.23) (.23) (.25)
-------- -------- -------- -------- --------
Net asset value, end of period ......................... $ 13.89 $ 14.20 $ 13.87 $ 13.39 $ 13.16
======== ======== ======== ======== ========
Market price per share, end of period .................. $13.5625 $ 14.125 $ 13.00 $ 12.75 $ 11.50
======== ======== ======== ======== ========
===================================================================================================================================
Total Investment Based on market price per share ........................ (1.38%)+ 14.78% 8.21% 17.87% 22.93%
Return:** ======== ======== ======== ======== ========
Based on net asset value per share ..................... .47%+ 8.16% 9.93% 8.17% 19.02%
======== ======== ======== ======== ========
===================================================================================================================================
Ratios to Average Expenses ............................................... .79%* .77% .78% .82% .85%
Net Assets:*** ======== ======== ======== ======== ========
Investment income--net ................................. 4.51%* 4.80% 4.96% 4.96% 5.38%
======== ======== ======== ======== ========
===================================================================================================================================
Supplemental Net assets, net of Preferred Shares, end of period
Data: (in thousands) ......................................... $ 83,167 $ 84,949 $ 82,918 $ 80,058 $ 78,695
======== ======== ======== ======== ========
Preferred Shares outstanding, end of period
(in thousands) ......................................... $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000
======== ======== ======== ======== ========
Portfolio turnover ..................................... 46.54% 92.75% 89.21% 116.82% 92.54%
======== ======== ======== ======== ========
===================================================================================================================================
Leverage: Asset coverage per $1,000 .............................. $ 3,079 $ 3,124 $ 3,073 $ 3,001 $ 2,967
======== ======== ======== ======== ========
===================================================================================================================================
Dividends Investment income--net ................................. $ 367 $ 829 $ 844 $ 861 $ 940
Per Share on ======== ======== ======== ======== ========
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.
+ Aggregate total investment return.
See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniVest Florida Fund (the "Fund") is registered under the Investment Company
Act of 1940 as a non-diversified, closed-end management investment company. The
Fund's financial statements are prepared in accordance with generally accepted
accounting principles which may require the use of management accruals and
estimates. 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 written or purchased are valued at the last
sale price in the case of exchange-traded options. In the case of options traded
in the over-the-counter market, valuation is the last asked price (options
written) or the last bid price (options purchased). Securities with remaining
maturities of sixty days or less are valued at amortized cost, which
approximates market value. Securities and assets 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).
10 & 11
<PAGE>
MuniVest Florida Fund, April 30, 1999
NOTES TO FINANCIAL STATEMENTS (concluded)
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) 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, 1999 were $55,143,745 and $54,496,533, respectively. Net
realized losses for the six months ended April 30, 1999 and net unrealized gains
as of April 30, 1999 were as follows:
- --------------------------------------------------------------------------------
Realized Unrealized
Losses Gains
- --------------------------------------------------------------------------------
Long-term investments .......................... $ (134,884) $3,625,597
---------- ----------
Total .......................................... $ (134,884) $3,625,597
========== ==========
- --------------------------------------------------------------------------------
As of April 30, 1999, net unrealized appreciation for Federal income tax
purposes aggregated $3,625,597, of which $4,156,868 related to appreciated
securities and $531,271 related to depreciated securities. The aggregate cost of
investments at April 30, 1999 for Federal income tax purposes was $129,489,541.
4. Beneficial Interest 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 beneficial interest without
approval of holders of Common Shares.
Common Shares
Shares issued and outstanding during the six months ended April 30, 1999
increased by 6,633 as a result of dividend reinvestment and during the year
ended October 31, 1998 remained constant.
Preferred Shares
Auction Market Preferred Shares ("AMPS") are Preferred Shares of the Fund, with
a par value of $.05 per share and a liquidation preference of $25,000 per share,
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, 1999
was 3.31%.
Shares issued and outstanding during the six months ended April 30, 1999 and the
year ended October 31, 1998 remained constant.
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, 1999, Merrill Lynch, Pierce,
Fenner & Smith Incorporated, an affiliate of FAM, earned $26,350 as commissions.
5. Capital Loss Carryforward:
At October 31, 1998, the Fund had a capital loss carryforward of approximately
$2,726,000, of which $472,000 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 6, 1999, the Fund's Board of Trustees declared an ordinary income
dividend to Common Shareholders in the amount of $.056659 per share, payable on
May 27, 1999 to shareholders of record as of May 21, 1999.
12 & 13
<PAGE>
MuniVest Florida Fund, April 30, 1999
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.
YEAR 2000 ISSUES
Many computer systems were designed using only two digits to designate years.
These systems may not be able to distinguish the Year 2000 from the Year 1900
(commonly known as the "Year 2000 Problem"). The Fund could be adversely
affected if the computer systems used by the Fund's management or other Fund
service providers do not properly address this problem before January 1, 2000.
The Fund's management expects to have addressed this problem before then, and
does not anticipate that the services it provides will be adversely affected.
The Fund's other service providers have told the Fund's management that they
also expect to resolve the Year 2000 Problem, and the Fund's management will
continue to monitor the situation as the Year 2000 approaches. However, if the
problem has not been fully addressed, the Fund could be negatively affected. The
Year 2000 Problem could also have a negative impact on the securities in which
the Fund invests and this could hurt the Fund's investment returns.
OFFICERS AND TRUSTEES
Terry K. Glenn, 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
Arthur Zeikel, Trustee
Vincent R. Giordano, Senior Vice President
William R. Bock, Vice President
Kenneth A. Jacob, Vice President
Donald C. Burke, Vice President and Treasurer
Alice A. Pellegrino, Secretary
- --------------------------------------------------------------------------------
Gerald M. Richard, Treasurer of MuniVest Florida Fund has recently retired. His
colleagues at Merrill Lynch Asset Management, L.P. join the Fund's Board of
Trustees in wishing Mr. Richard well in his retirement.
- --------------------------------------------------------------------------------
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 Whitehall Bank &Trust Company
One State Street
New York, NY 10004
NYSE Symbol
MVS
14 & 15
<PAGE>
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--4/99
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