UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
Investment Company Act file number 811-6502
Name of Fund: MuniYield Florida Fund
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President,
MuniYield Florida Fund, 800 Scudders Mill Road, Plainsboro, NJ,
08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 04/30/03
Date of reporting period: 11/01/02 - 04/30/03
Item 1 - Attach shareholder report
(BULL LOGO)
Merrill Lynch Investment Managers
Semi-Annual Report
April 30, 2003
MuniYield
Florida Fund
www.mlim.ml.com
MuniYield Florida Fund seeks to provide shareholders with as high a
level of current income exempt from Federal income taxes as is
consistent with its investment policies and prudent investment
management by investing primarily in a portfolio of long-term
municipal obligations the interest on which, in the opinion of bond
counsel to the issuer, is exempt from Federal income taxes and which
enables shares of the Fund to be exempt from Florida intangible
personal property taxes.
This report, including the financial information herein, is
transmitted to shareholders of MuniYield Florida Fund for their
information. It is not a prospectus. Past performance results shown
in this report should not be considered a representation of future
performance. The Fund has leveraged its Common Shares and intends to
remain leveraged 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.
MuniYield Florida Fund
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
MUNIYIELD FLORIDA FUND
The Benefits
And Risks of
Leveraging
MuniYield 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.
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 such securities.
Swap
Agreements
The Fund may also invest in swap agreements, which are over-the-
counter contracts in which one party agrees to make periodic
payments based on the change in market value of a specified bond,
basket of bonds, or index in return for periodic payments based on a
fixed or variable interest rate or the change in market value of a
different bond, basket of bonds or index. Swap agreements may be
used to obtain exposure to a bond or market without owning or taking
physical custody of securities.
MuniYield Florida Fund, April 30, 2003
DEAR SHAREHOLDER
For the six months ended April 30, 2003, the Common Shares of
MuniYield Florida Fund had a net annualized yield of 6.02%, based on
a period-end per share net asset value of $15.33 and $.458 per share
income dividends. Over the same period, the total investment return
on the Fund's Common Shares was +5.79%, based on a change in per
share net asset value from $14.97 to $15.33, and assuming
reinvestment of $.456 per share ordinary income dividends.
For the six-month period ended April 30, 2003, the Fund's Auction
Market Preferred Shares had an average yield of 1.11% for Series A
and 1.03% for Series B.
For a description of the Fund's total investment return based on a
change in the per share market value (as measured by the trading
price of the Fund's shares on the New York Stock Exchange), and
assuming reinvestment of dividends, please refer to the Financial
Highlights section of the Financial Statements included in this
report. As a closed-end fund, the Fund's shares may trade in the
secondary market at a premium or discount to the Fund's net asset
value. As a result, total investment returns based on changes in the
Fund's market value can vary significantly from total investment
return based on changes in the Fund's net asset value.
The Municipal Market Environment
During the six-month period ended April 30, 2003, amid considerable
weekly and monthly volatility, long-term fixed income interest rates
generally declined. Geopolitical tensions and volatile equity
valuations continued to overshadow economic fundamentals as they
have for most of the last 12 months. Reacting to the strong U.S.
equity rally that began last October, fixed income bond yields
remained under pressure in November 2002, as U.S. equity markets
continued to strengthen. During November, the Standard & Poor's 500
(S&P 500) Index rose an additional 5.50%. Equity prices were
supported by further signs of U.S. economic recovery, especially
improving labor market activity. In late November, third-quarter
2002 U.S. gross domestic product growth was 4%, well above the
second-quarter 2002 rate of 1.30%. Financial conditions were also
strengthened by a larger-than-expected reduction in short-term
interest rates by the Federal Reserve Board in early November. The
Federal Funds target rate was lowered 50 basis points (0.50%) to
1.25%, its lowest level since the 1960s. This action by the Federal
Reserve Board was largely viewed as being taken to bolster the
sputtering U.S. economic recovery. Rebounding U.S. equity markets
and the prospects for a more substantial U.S. economic recovery
pushed long-term U.S. Treasury yield levels to 5.10% by late
November.
However, into early 2003, softer equity prices and renewed investor
concerns about U.S. military action against Iraq and North Korea
again pushed bond prices higher. Reacting to disappointing holiday
sales and corporate managements' attempts to scale back analysts'
expectation of future earnings, the S&P 500 Index declined more than
10% from December 2002 to February 2003. Fearing an eventual
U.S./Iraq military confrontation in 2003, investors again sought the
safety of U.S. Treasury obligations and the prices of fixed income
issues rose. By the end of February 2003, U.S. Treasury bond yields
had declined approximately 40 basis points to 4.67%.
Bond yields continued to fall into early March. Once direct U.S.
military action against Iraq began, bond yields quickly rose. Prior
uncertainty surrounding the Iraqi situation was obviously removed
and early U.S. military successes fostered the hope that the
conflict would be quickly and positively concluded. Concurrently,
the S&P 400 Index rose over 6% as investors, in part, sold fixed
income issues to purchase equities in anticipation of a strong
U.S. economic recovery once the Iraqi conflict was resolved. By
mid-March, U.S. Treasury bond yields again rose to above 5%.
However, as there was growing sentiment that hostilities may not be
resolved in a matter of weeks, U.S. Treasury bond yields again
declined to end the month at 4.81%.
For the six months ended April 30, 2003, long-term U.S. Treasury
bond yields ratcheted back to near 5% by mid-April, as U.S. equity
markets continued to improve and the safe-haven premium U.S.
Treasury issues had commanded prior to the beginning of the Iraqi
conflict continued to be withdrawn. However, with the quick positive
resolution of the Iraqi war, investors quickly resumed their focus
on the fragile U.S. economic recovery. Business activity in the
United States has remained sluggish, especially job creation.
Investors have also been concerned that the recent SARS outbreak
would have a material, negative impact on world economic conditions,
especially in China and Japan. First quarter 2003 U.S. gross
domestic product was released in late April initially estimating
U.S. economic activity to be growing at 1.60%, well below many
analysts' assessments. These factors, as well as the possibility
that the Federal Reserve Board could again lower short-term interest
rates to encourage more robust U.S. economic growth, pushed bond
prices higher during the last two weeks of the period. By April 30,
2003, long-term U.S. Treasury bond yields had declined to almost
4.75%. Over the past six months, long-term U.S. bond yields fell
more than 20 basis points.
For the six months ended April 30, 2003, long-term tax-exempt bond
yields also fell modestly. Yield volatility was reduced relative to
that seen in U.S. Treasury issues, as municipal bond prices were
much less sensitive to worldwide geopolitical pressures on a daily
and weekly basis. Tax-exempt bond yields generally followed their
taxable counterparts higher, responding to a more positive U.S.
fixed income environment and continued slow economic growth. After
rising approximately 10 basis points in November 2002 to 5.30%,
municipal bond yields generally declined through February 2003. At
February 28, 2003, long-term tax-exempt revenue bond yields, as
measured by the Bond Buyer Revenue Bond Index, fell to approximately
5.05%. However, similar to U.S. Treasury bond yields, once military
action began in Iraq, municipal bond yields rose sharply to nearly
5.20% before declining to approximately 5.10% by the end of April.
Over the past six months, long-term tax-exempt bond yields fell
approximately 11 basis points, slightly less than U.S. Treasury
obligations.
A number of factors have combined to generate consistently strong
demand for municipal bonds throughout the six-month period ended
April 30, 2003. Generally weak U.S. equity markets have supported
continued positive demand for tax-exempt products as investors have
sought the relative security of fixed income issues. Also, with tax-
exempt money market rates near 1%, the demand for longer maturity
municipal issues has increased as investors have opted to buy longer
maturity issues rather than remain in cash reserves. Additionally,
investors received approximately $30 billion in January 2003 from
bond maturities, coupon income and proceeds from early redemptions.
However, these positive demand factors were not totally able to
offset the increase in tax-exempt new-issue supply, preventing more
significant declines in tax-exempt bond yields. This modest
underperformance has served to make municipal bonds a particularly
attractive purchase relative to their taxable counterparts.
Throughout most of the yield curve, municipal bonds have been able
to be purchased at yields near or exceeding those of comparable
Treasury issues. Compared to their recent historical averages of
82% - 88% of U.S. Treasury yields, municipal bond yield ratios in
their current 95% - 105% range are likely to prove attractive to
long-term investors.
Declining U.S. equity markets and escalating geopolitical pressures
have resulted in reduced economic activity and consumer confidence.
It is important to note that, despite all the recent negative
factors impeding the growth of U.S. businesses, the U.S. economy
still grew at an approximate 2.50% rate for all of 2002, twice that
of 2001. Similar expansion is expected for early 2003. Lower oil
prices, reduced geopolitical uncertainties, increased Federal
spending for defense, and a likely Federal tax cut are all factors
which should promote stronger economic growth later this year.
However, it is questionable to expect that business and investor
confidence can be so quickly restored as to trigger dramatic,
explosive U.S. economic growth and engender associated, large-scale
interest rate increases. The resumption of solid economic growth is
likely to be a gradual process accompanied by equally graduated
increases in bond yields. Moderate economic growth, especially
within a context of negligible inflationary pressures, should not
greatly endanger the positive fixed income environments tax-exempt
products currently enjoy.
MuniYield Florida Fund, April 30, 2003
Specific to Florida, the state's general fund budget proposal for
fiscal year 2003 - 2004 came in at $53.9 billion, a 7.0% increase
from the prior year. This budget will attempt to close a $2 billion
fiscal year 2004 operating shortfall. It includes currently passed
referendums for smaller classroom sizes, enrolling four-year olds
as pre-kindergartners and a high-speed rail line. Florida is
projected to end fiscal year 2002 - 2003 with an operating surplus
of $140 million and a rainy day fund at $960 million, a sharp
contrast to most other states. With the implementation of the
constitutional amendments, spending will increase faster than
revenues and will force the state to borrow. In fiscal year 2004,
$3 billion is earmarked for schools. However, this is just
scratching the surface of an estimated $4 billion - $27 billion
price tag for education during the next eight years. With this
increase in spending in the current fiscal year, other programs
will be reduced and/or eliminated. Some proposed cuts include
$200 million from transportation, $111 million from universities,
and $51 million from juvenile crime prevention. Additional
expenditure savings will be derived by outsourcing state agency
functions such as payroll and benefits administration totaling
another $200 million. These reductions, along with an increase in
the corporate tax structure, the inclusion of video lottery
terminals being placed in dog and horse racetracks and improving
sales tax collections are estimated to generate more than
$1 billion. Proposed expenditure reductions, revenue increases,
along with a sizable rainy day fund, will enable the state to
operate without increasing other taxes. However, the state balanced
its budget by burdening local governments and universities by asking
the voters to increase local sales taxes and/or increase tuition to
meet local operations. Even though the state is being pressured by a
weak national economy, we believe Florida is in a position during
the upcoming year to perform well given its prospective management
and financial flexibility.
Portfolio Strategy
During the six-month period ended April 30, 2003, we maintained our
neutral position on the municipal bond market. We continued to focus
on reducing the volatility of the Fund by selling some of the Fund's
10-year - 15-year bonds and purchasing larger-couponed bonds
maturing in 20 years - 30 years. We believe these longer maturities
are likely to enhance the Fund's income stream and help preserve
asset valuations in future periods of market volatility. During the
six-month period, Florida's new-issue supply was up approximately
50% compared to the same time a year ago. Despite the heavy supply,
retail and institutional demand remained quite strong. However, this
strong demand hindered us from fully implementing our desired
strategy. The vast majority of new bond issuance has been structured
as par bonds, which are more price sensitive and produce less income
than premium coupon structured issues. Going forward, the municipal
bond curve is expected to remain quite steep. We will maintain our
neutral position and remain fully invested in an effort to enhance
shareholder income.
During the six-month period ended April 30, 2003, the Fund's
borrowing costs remained in the 1% - 1.50% range, with interest
rates presently near 1%. These very attractive funding levels, in
combination with the steep tax-exempt yield curve, have continued to
generate significant income benefits to the Fund's Common
Shareholder. We do not expect any material reduction in our
borrowing costs in 2003 as no additional monetary easings by the
Federal Reserve Board are anticipated. We expect our short-term
borrowing costs to remain at current attractive levels for most of
the coming year. However, should the spread between short-term and
long-term interest rates narrow, the benefits of leverage will
decline and the yield to the Fund's Common Shareholders will be
reduced. (For a more complete explanation of the benefits and risks
of leveraging, see page 1 of this report to shareholders.)
In Conclusion
We appreciate your continuing interest in MuniYield Florida Fund,
and we look forward to serving your investment needs in the months
and years to come.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Trustee
(Kenneth A. Jacob)
Kenneth A. Jacob
Senior Vice President
(John M. Loffredo)
John M. Loffredo
Senior Vice President
(Robert D. Sneeden)
Robert D. Sneeden
Vice President and
Portfolio Manager
May 19, 2003
PROXY RESULTS
During the six-month period ended April 30, 2003, MuniYield Florida
Fund's Common Shareholders voted on the following proposal. The
proposal was approved at a shareholders' meeting on April 28, 2003.
A description of the proposal and number of shares voted are as
follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Trustees: Terry K. Glenn 12,530,293 415,499
James H. Bodurtha 12,530,293 415,499
Joe Grills 12,528,026 417,766
Roberta Cooper Ramo 12,527,635 418,157
Robert S. Salomon, Jr. 12,529,555 416,237
Stephen B. Swensrud 12,528,373 417,419
During the six-month period ended April 30, 2003, MuniYield Florida
Fund's Preferred Shareholders (Series A & B) voted on the following
proposal. The proposal was approved at a shareholders' meeting on
April 28, 2003. A description of the proposal and number of shares
voted are as follows:
Shares Voted Shares Withheld
For From Voting
1. To elect the Fund's Board of Trustees: Terry K. Glenn, James H. Bodurtha,
Joe Grills, Herbert I. London, Andre F. Perold, Roberta Cooper Ramo,
Robert S. Salomon, Jr. and Stephen B. Swensrud 3,699 22
MuniYield Florida Fund, April 30, 2003
SCHEDULE OF INVESTMENTS (in Thousands)
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
Florida--129.3% AA NR* $ 3,140 Beacon Tradeport Community Development District, Florida, Special
Assessment Revenue Refunding Bonds (Commercial Project), Series A,
5.625% due 5/01/2032 (g) $ 3,343
AAA Aaa 7,650 Brevard County, Florida, IDR (NUI Corporation Project), AMT, 6.40%
due 10/01/2024 (a) 8,249
AAA Aaa 2,870 Broward County, Florida, Airport System Revenue Bonds, AMT, Series I,
5.75% due 10/01/2018 (a) 3,164
AAA Aaa 3,460 Broward County, Florida, School Board, COP, 5% due 7/01/2028 (b) 3,567
Citrus County, Florida, Hospital Board Revenue Refunding Bonds
(Citrus Memorial Hospital):
NR* Baa3 2,500 6.25% due 8/15/2023 2,559
NR* Baa3 2,850 6.375% due 8/15/2032 2,924
NR* NR* 2,610 Collier County, Florida, IDA, IDR, Refunding (Southern States
Utilities), AMT, 6.50% due 10/01/2025 2,581
Dade County, Florida, Aviation Revenue Bonds, AMT, Series B (b):
AAA Aaa 1,000 6.55% due 10/01/2013 1,024
AAA Aaa 5,000 6.60% due 10/01/2022 5,159
A 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 2,259
Duval County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds,
AMT (d)(i):
NR* Aaa 1,395 6.20% due 4/01/2020 (b) 1,506
NR* Aaa 2,990 5.40% due 10/01/2021 3,127
AAA Aaa 4,600 Escambia County, Florida, HFA, S/F Mortgage Revenue Refunding
Bonds, AMT, 7% due 4/01/2028 (d)(i) 4,837
NR* Aaa 9,000 Escambia County, Florida, Health Facilities Authority, Health
Facility Revenue Bonds (Florida Health Care Facility Loan), 5.95%
due 7/01/2020 (a) 9,849
BBB Baa2 8,295 Escambia County, Florida, PCR (Champion International Corporation
Project), AMT, 6.90% due 8/01/2022 8,622
AAA Aaa 1,440 Florida Housing Finance Corporation, Homeowner Mortgage Revenue
Refunding Bonds, AMT, Series 4, 6.25% due 7/01/2022 (e) 1,556
NR* Aaa 5,250 Florida Housing Finance Corporation, Housing Revenue Bonds
(Augustine Club Apartments), Series D-1, 5.75% due 10/01/2030 (b) 5,571
AAA Aaa 4,250 Florida Municipal Loan Council Revenue Bonds, Series B, 5.375%
due 11/01/2030 (b) 4,546
AA+ Aa2 1,220 Florida State Board of Education, Capital Outlay, GO, Series A, 6%
due 1/01/2014 1,422
AAA Aaa 1,000 Florida State Board of Education, Lottery Revenue Bonds, Series A,
6% due 7/01/2014 (c) 1,172
Florida State Board of Education, Public Education, GO, Refunding,
Series D:
AAA Aaa 1,000 5.75% due 6/01/2022 (e) 1,125
AA+ Aa2 5,000 Capital Outlay, 5.375% due 6/01/2018 5,523
AAA Aaa 9,000 Florida State Department of Environmental Protection, Preservation
Revenue Bonds, Series A, 5.75% due 7/01/2013 (c) 10,370
A- A3 5,900 Highlands County, Florida, Health Facilities Authority Revenue
Bonds (Adventist Health System/Sunbelt Obligated Group), Series A,
6% due 11/15/2031 6,269
AAA Aaa 5,000 Hillsborough County, Florida, Court Facilities Revenue Bonds, 5.40%
due 5/01/2030 (a) 5,363
Hillsborough County, Florida, IDA, Exempt Facilities Revenue Bonds
(National Gypsum), AMT:
NR* NR* 2,500 Series A, 7.125% due 4/01/2030 2,515
NR* NR* 3,750 Series B, 7.125% due 4/01/2030 3,772
A A3 1,000 Hillsborough County, Florida, IDA, Hospital Revenue Bonds (H. Lee
Moffitt Cancer Center Project), Series C, 5.50% due 7/01/2032 1,016
BBB Baa1 6,000 Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric
Company Project), 5.10% due 10/01/2013 5,828
AAA Aaa 4,000 Hillsborough County, Florida, School District, Sales Tax Revenue
Refunding Bonds, 5.375% due 10/01/2020 (a) 4,336
Jacksonville, Florida, Electric Authority, Electric System
Revenue Bonds:
AA Aa2 2,000 Series 3-A, 5.375% due 10/01/2032 2,063
AA Aa2 3,500 Series 3-C, 5.625% due 10/01/2035 3,556
AAA Aaa 2,315 Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding
and Improvement Bonds, 5.25% due 10/01/2032 (c) 2,438
Jacksonville, Florida, Health Facilities Authority, IDR
(National Benevolent Association, Cypress Village Florida Project),
Series A:
NR* Baa3 345 6.125% due 12/01/2016 309
NR* Baa3 1,220 7.10% due 3/01/2030 1,148
NR* Baa3 2,750 Jacksonville, Florida, Health Facilities Authority, IDR, Refunding
(National Benevolent Association, Cypress Village Florida Project),
7% due 12/01/2022 2,480
AAA Aaa 3,500 Lakeland, Florida, Hospital System Revenue Bonds (Lakeland Regional
Health System), Series A, 5.50% due 11/15/2026 (b) 3,715
NR* Aaa 370 Lee County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County
Program), AMT, Series A-1, 7.125% due 3/01/2028 (d)(i) 413
AAA NR* 670 Leon County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County
Program), AMT, Series B, 7.30% due 1/01/2028 (d)(j) 771
NR* Aaa 1,045 Manatee County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT,
Sub-Series 2, 7.75% due 5/01/2026 (d)(j) 1,062
NR* Aaa 1,405 Manatee County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds,
AMT, Sub-Series 1, 6.25% due 11/01/2028 (d) 1,559
BBB+ NR* 2,930 Martin County, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Martin Memorial Medical Center), Series A, 5.875% due
11/15/2032 2,934
AAA Aaa 3,000 Miami Beach, Florida, Water and Sewer Revenue Bonds, 5.75% due
9/01/2025 (a) 3,357
AAA Aaa 4,300 Miami-Dade County, Florida, Aviation Revenue Bonds (Miami
International Airport), AMT, Series A, 6% due 10/01/2029 (c) 4,838
AAA Aaa 1,750 Miami-Dade County, Florida, Educational Facilities Authority
Revenue Bonds (University of Miami), Series A, 5.75% due 4/01/2029 (a) 1,961
AAA Aaa 8,000 Miami-Dade County, Florida, Expressway Authority, Toll System
Revenue Bonds, DRIVERS, Series 160, 6.375% due 7/01/2010 (c)(f)(k) 11,496
Portfolio
Abbreviations
To simplify the listings of MuniYield Florida Fund's portfolio
holdings in the Schedule of Investments, we have abbreviated the
names of many of the securities according to the list at right.
AMT Alternative Minimum Tax
(subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
S/F Single-Family
MuniYield Florida Fund, April 30, 2003
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
S&P Moody's Face
STATE Ratings Ratings Amount Issue Value
Florida NR* Aaa $ 1,095 Miami-Dade County, Florida, HFA, Home Ownership Mortgage Revenue
(concluded) Refunding Bonds, AMT, Series A-1, 6.30% due 10/01/2020 (d)(i) $ 1,192
AAA NR* 3,300 Miami-Dade County, Florida, Health Facilities Authority, Hospital
Revenue Refunding Bonds, DRIVERS, Series 208, 9.56% due
8/15/2017 (a)(k) 4,130
Miami-Dade County, Florida, School Board COP (e):
AAA Aaa 3,200 Series A, 5.50% due 10/01/2020 3,518
AAA Aaa 1,635 Series C, 5.50% due 10/01/2017 1,824
Orange County, Florida, Health Facilities Authority, Hospital
Revenue Bonds:
A- A3 1,750 (Adventist Health System), 6.25% due 11/15/2024 1,884
A- A2 5,140 (Orlando Regional Healthcare), 6% due 12/01/2028 5,455
A- A2 1,300 (Orlando Regional Healthcare), 5.75% due 12/01/2032 1,344
NR* Aaa 10,500 Orange County, Florida, School Board, COP, Series A, 5.25% due
8/01/2023 (b) 11,135
AAA Aaa 8,615 Orange County, Florida, Tourist Development, Tax Revenue Bonds,
5.50% due 10/01/2032 (a) 9,255
AAA Aaa 1,760 Osceola County, Tourist Development Tax Revenue Bonds, Series A,
5.50% due 10/01/2027 (c) 1,900
AAA Aaa 3,390 Palm Beach County, Florida, Criminal Justice Facilities Revenue
Bonds, 7.20% due 6/01/2015 (c) 4,490
NR* Aaa 695 Palm Beach County, Florida, HFA, S/F Mortgage Revenue Refunding
Bonds, AMT, Series A, 6.80% due 10/01/2027 (d)(i) 721
A NR* 1,395 Palm Beach County, Florida, Health Facilities Authority, Hospital
Revenue Refunding Bonds (Branch Corporation Obligation Group),
5.50% due 12/01/2021 1,451
BBB+ NR* 1,600 Palm Beach County, Florida, Health Facilities Authority, Retirement
Community Revenue Bonds (Acts Obligation Group), 5.625% due 11/15/2020 1,620
AAA Aaa 1,260 Palm Beach County, Florida, Public Improvement Revenue Bonds
(Convention Center Project), 5.625% due 11/01/2016 (c) 1,429
AAA Aaa 6,000 Palm Beach County, Florida, School Board COP, Series A, 6.25%
due 8/01/2010 (c)(f) 7,273
NR* Aaa 1,000 Pasco County, Florida, Sales Tax Revenue Bonds (Half-Cent), 5%
due 12/01/2033 (a) 1,032
Pinellas County, Florida, HFA, S/F Housing Revenue Refunding Bonds
(Multi-County Program), AMT, Series A-1 (d)(i):
NR* Aaa 1,300 6.30% due 9/01/2020 1,406
NR* Aaa 1,990 6.35% due 9/01/2025 2,146
AAA Aaa 4,385 Polk County, Florida, School Board COP, Master Lease, Series A,
5.50% due 1/01/2025 (e) 4,706
AAA Aaa 1,200 Port Everglades Authority, Florida, Port Revenue Bonds, 7.125%
due 11/01/2016 (h) 1,521
AAA Aaa 12,900 Sarasota County, Florida, Public Hospital Board, Revenue Refunding
Bonds (Sarasota Memorial Hospital), Series B, 5.50% due 7/01/2028 (b) 14,464
AAA NR* 4,250 South Broward, Florida, Hospital District Revenue Bonds, DRIVERS,
Series 337, 9.70% due 5/01/2032 (b)(k) 5,002
A- A2 1,000 South Lake County, Florida, Hospital District Revenue Bonds
(South Lake Hospital Inc.), 5.80% due 10/01/2034 1,018
AAA Aaa 5,000 Tampa Bay, Florida, Water Utility System Revenue Bonds, 5.75%
due 10/01/2011 (c)(f) 5,894
AAA Aaa 5,000 Volusia County, Florida, School Board, COP (Master Lease Program),
5.50% due 8/01/2024 (e) 5,428
New Jersey--2.9% Tobacco Settlement Financing Corporation of New Jersey Revenue Bonds:
A- A3 3,510 6.75% due 6/01/2039 3,105
A- A3 3,245 7% due 6/01/2041 2,985
Puerto Rico-- AAA NR* 7,500 Puerto Rico Commonwealth, GO, Refunding, DRIVERS, Series 232,
10.4% 9.441% due 7/01/2017 (k)(l) 9,915
A Baa1 8,000 Puerto Rico Commonwealth, Highway and Transportation Authority,
Transportation Revenue Bonds, Series D, 5.75% due 7/01/2041 8,855
A- Baa1 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series T,
6% due 7/01/2004 (f) 1,076
BBB+ Baa3 1,715 Puerto Rico Public Finance Corporation Revenue Bonds, Commonwealth
Appropriation, Series E, 5.70% due 8/01/2025 1,810
Total Municipal Bonds (Cost--$276,387)--142.6% 296,238
Shares
Held Short-Term Securities
5,430 Merrill Lynch Institutional Tax-Exempt Fund** 5,430
Total Short-Term Securities (Cost--$5,430)--2.6% 5,430
Total Investments (Cost--$281,817)--145.2% 301,668
Other Assets Less Liabilities--0.5% 1,101
Preferred Shares, at Redemption Value--(45.7%) (95,021)
--------
Net Assets Applicable to Common Shares--100.0% $207,748
========
(a)AMBAC Insured.
(b)MBIA Insured.
(c)FGIC Insured.
(d)GNMA Collateralized.
(e)FSA Insured.
(f)Prerefunded.
(g)Radian Insured.
(h)Escrowed to maturity.
(i)FNMA Collateralized.
(j)FHLMC Collateralized.
(k)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, 2003.
(l)XL Capital Insured.
*Not Rated.
**Investments in companies considered to be an affiliate of the Fund
(such companies are defined as "Affiliated Companies" in Section
2(a)(3) of the Investment Company Act of 1940) are as follows:
(in Thousands)
Net Dividend
Affiliate Activity Income
Merrill Lynch Institutional
Tax-Exempt Fund 3,330 $21
See Notes to Financial Statements.
MuniYield Florida Fund, April 30, 2003
STATEMENT OF NET ASSETS
As of April 30, 2003
Assets: Investments, at value (identified cost--$281,817,102) $301,667,950
Cash 75,806
Receivables:
Interest $ 4,278,663
Securities sold 1,821,783
Dividends 174 6,100,620
------------
Prepaid expenses 17,724
------------
Total assets 307,862,100
------------
Liabilities: Payables:
Securities purchased 4,868,608
Investment adviser 126,474
Dividends to Common Shareholders 68,541
Other affiliates 2,294 5,065,917
------------
Accrued expenses 27,206
------------
Total liabilities 5,093,123
------------
Preferred Shares: Preferred Shares, par value $.05 per share (2,200 Series A shares and
1,600 Series B shares of AMPS* issued and outstanding at $25,000 per
share liquidation preference) 95,021,466
------------
Net Assets Net assets applicable to Common Shares $207,747,511
Applicable To ============
Common Shares:
Analysis of Common Shares, par value $.10 per share (13,551,880 shares issued
Net Assets and outstanding) $ 1,355,188
Applicable to Paid-in capital in excess of par 194,722,663
Common Shares: Undistributed investment income--net $ 2,645,338
Accumulated realized capital losses on investments--net (10,826,526)
Unrealized appreciation on investments--net 19,850,848
------------
Total accumulated earnings--net 11,669,660
------------
Total--Equivalent to $15.33 net asset value per Common Share
(market price--$14.32) $207,747,511
============
*Auction Market Preferred Shares.
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 2003
Investment Interest $ 8,106,183
Income: Dividends 21,098
------------
Total income 8,127,281
------------
Expenses: Investment advisory fees $ 740,482
Commission fees 118,811
Accounting services 59,276
Professional fees 29,818
Transfer agent fees 24,606
Printing and shareholder reports 16,247
Listing fees 14,275
Trustees' fees and expenses 11,933
Custodian fees 8,671
Pricing fees 6,080
Other 17,355
------------
Total expenses before reimbursement 1,047,554
Reimbursement of expenses (4,120)
------------
Total expenses after reimbursement 1,043,434
------------
Investment income--net 7,083,847
------------
Realized & Realized gain on investments--net 405,205
Unrealized Change in unrealized appreciation on investments--net 4,026,887
Gain on ------------
Investments--Net: Total realized and unrealized gain on investments--net 4,432,092
------------
Dividends to Investment income--net (507,966)
Preferred ------------
Shareholders: Net Increase in Net Assets Resulting from Operations $ 11,007,973
============
See Notes to Financial Statements.
MuniYield Florida Fund, April 30, 2003
STATEMENTS OF CHANGES IN NET ASSETS
For the Six For the
Months Ended Year Ended
April 30, October 31,
Increase (Decrease) in Net Assets: 2003 2002
Operations: Investment income--net $ 7,083,847 $ 13,911,948
Realized gain on investments--net 405,205 481,869
Change in unrealized appreciation on investments--net 4,026,887 970,890
Dividends and distributions to Preferred Shareholders (507,966) (1,284,066)
------------ ------------
Net increase in net assets resulting from operations 11,007,973 14,080,641
------------ ------------
Dividends & Investment income--net (6,179,657) (11,853,830)
Distributions to Realized gain on investments--net -- (36,333)
Common ------------ ------------
Shareholders: Net decrease in net assets resulting from dividends and
distributions to Common Shareholders (6,179,657) (11,890,163)
------------ ------------
Net Assets Total increase in net assets applicable to Common Shares 4,828,316 2,190,478
Applicable to Beginning of period 202,919,195 200,728,717
Common Shares: ------------ ------------
End of period* $207,747,511 $202,919,195
============ ============
*Undistributed investment income--net $ 2,645,338 $ 2,249,114
============ ============
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
The following per share data and ratios
have been derived from information For the Six
provided in the financial statements. Months Ended
April 30, For the Year Ended October 31,
Increase (Decrease) in Net Asset Value: 2003 2002 2001 2000 1999
Per Share Net asset value, beginning of period $ 14.97 $ 14.81 $ 13.78 $ 13.27 $ 15.70
Operating --------- --------- --------- --------- ---------
Performance:++++ Investment income--net .52+++++ 1.03 1.00 .95 .98
Realized and unrealized gain (loss)
on investments--net .34 .09 1.04 .59 (1.90)
Dividends and distributions to
Preferred Shareholders:
Investment income--net (.04) (.09) (.22) (.28) (.16)
Realized gain on investments--net -- --++ -- -- --
In excess of realized gain on
investments--net -- -- -- -- (.09)
--------- --------- --------- --------- ---------
Total from investment operations .82 1.03 1.82 1.26 (1.17)
--------- --------- --------- --------- ---------
Less dividends and distributions to
Common Shareholders:
Investment income--net (.46) (.87) (.79) (.75) (.83)
Realized gain on investments--net -- --++ -- -- --
In excess of realized gain on
investments--net -- -- -- -- (.43)
--------- --------- --------- --------- ---------
Total dividends and distributions to
Common Shareholders (.46) (.87) (.79) (.75) (1.26)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 15.33 $ 14.97 $ 14.81 $ 13.78 $ 13.27
========= ========= ========= ========= =========
Market price per share, end of period $ 14.32 $ 13.34 $ 13.98 $ 11.3125 $ 11.75
========= ========= ========= ========= =========
Total Investment Based on market price per share 10.89%+++ 1.77% 31.36% 2.82% (19.96%)
Return:** ========= ========= ========= ========= =========
Based on net asset value per share 5.79%+++ 7.80% 14.24% 10.90% (7.88%)
========= ========= ========= ========= =========
Ratios Based on Total expenses, net of reimbursement
Average Net and excluding reorganization expenses*** 1.03%* 1.06% 1.06% 1.12% 1.12%
Assets of ========= ========= ========= ========= =========
Common Shares: Total expenses, excluding reorganization
expenses*** 1.03%* 1.06% 1.06% 1.12% 1.12%
========= ========= ========= ========= =========
Total expenses*** 1.04%* 1.06% 1.06% 1.33% 1.12%
========= ========= ========= ========= =========
Total investment income--net*** 7.02%* 7.00% 6.98% 7.39% 6.73%
========= ========= ========= ========= =========
Amount of dividends to Preferred
Shareholders .50%* .64% 1.53% 2.10% 1.10%
========= ========= ========= ========= =========
Investment income--net, to Common
Shareholders 6.52%* 6.36% 5.45% 5.29% 5.63%
========= ========= ========= ========= =========
Ratios Based on Total expenses, net of reimbursement
Average Net and excluding reorganization expenses .71%* .72% .71% .74% .76%
Assets of ========= ========= ========= ========= =========
Common & Total expenses, excluding
Preferred reorganization expenses .71%* .72% .71% .74% .76%
Shares:*** ========= ========= ========= ========= =========
Total expenses .71%* .72% .71% .87% .76%
========= ========= ========= ========= =========
Total investment income--net 4.79%* 4.74% 4.69% 4.85% 4.58%
========= ========= ========= ========= =========
Ratios Based on Dividends to Preferred Shareholders 1.08%* 1.34% 3.14% 4.02% 2.36%
Average Net ========= ========= ========= ========= =========
Assets of
Preferred Shares:
Supplemental Net assets applicable to Common Shares,
Data: end of period (in thousands) $ 207,748 $ 202,919 $ 200,729 $ 186,777 $ 106,050
========= ========= ========= ========= =========
Preferred Shares outstanding, end
of period (in thousands) $ 95,000 $ 95,000 $ 95,000 $ 95,000 $ 55,000
========= ========= ========= ========= =========
Portfolio turnover 18.67% 39.54% 86.85% 51.06% 97.73%
========= ========= ========= ========= =========
Leverage: Asset coverage per $1,000 $ 3,187 $ 3,136 $ 3,113 $ 2,966 $ 2,928
========= ========= ========= ========= =========
Dividends Per Series A--Investment income--net $ 138 $ 337 $ 771 $ 1,006 $ 587
Share On ========= ========= ========= ========= =========
Preferred Shares Series B--Investment income--net $ 128 $ 333 $ 801 $ 738 --
Outstanding:++++++++ ========= ========= ========= ========= =========
*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 charges.
***Do not reflect the effect of dividends to Preferred Shareholders.
++Amount is less than $(.01) per share.
++++Certain prior period amounts have been reclassified to conform
to current period presentation.
+++Aggregate total investment return.
+++++Based on average shares outstanding.
++++++++The Fund's Preferred Shares were issued on April 10, 1992
(Series A) and February 7, 2000 (Series B).
See Notes to Financial Statements.
MuniYield Florida Fund, April 30, 2003
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield 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 conformity with accounting principles generally accepted
in the United States of America, 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 MYF. 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 their 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 investment strategies both to increase the return of the
Fund and to hedge, or protect, its exposure to interest rate
movement and movements in the securities markets. Losses may arise
due to changes in the value of the contract or if the counterparty
does not perform under the contract.
* Financial futures contracts--The Fund may purchase or sell
financial futures contracts and options on such futures contracts.
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.
* Forward interest rate swaps--The Fund is authorized to enter into
forward interest rate swaps. In a forward interest rate swap, the
Fund and the counterparty agree to pay or receive interest on a
specified notional contract amount, commencing on a specified future
effective date, unless terminated earlier. The value of the
agreement is determined by quoted fair values received daily by the
Fund from the counterparty. When the agreement is closed, the Fund
records a realized gain or loss in an amount equal to the value of
the agreement.
(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). Realized gains and losses on security
transactions are determined on the identified cost basis. Divided
income is recorded on the ex-dividend dates. Interest income is
recognized on the accrual basis. The Fund amortizes all premiums and
discounts on debt securities.
(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 .50% of
the Fund's average weekly net assets, including proceeds from the
issuance of Preferred Shares. For the six months ended April 30,
2003, FAM reimbursed the Fund in the amount of $4,120.
For the six months ended April 30, 2003, the Fund reimbursed FAM
$7,307 for certain accounting services.
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, 2003 were $54,455,069 and
$54,916,780, respectively.
Net realized gains for the six months ended April 30, 2003 and net
unrealized gains as of April 30, 2003 were as follows:
Realized Unrealized
Gains Gains
Long-term investments $ 405,205 $ 19,850,848
------------ ------------
Total $ 405,205 $ 19,850,848
============ ============
As of April 30, 2003, net unrealized appreciation for Federal
income tax purposes aggregated $19,922,186, of which $20,566,867
related to appreciated securities and $644,681 related to
depreciated securities. The aggregate cost of investments at
April 30, 2003 for Federal income tax purposes was $281,745,764.
4. 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 beneficial interest without approval of the holders of
Common Shares.
Common Shares
Shares issued and outstanding during the six months ended April 30,
2003 and for the year ended October 31, 2002 remained constant.
Preferred Shares
Auction Market Preferred Shares ("AMPS") are Preferred Shares of the
Fund, with a par value of $.10 per share and a liquidation
preference of $25,000 per share plus accrued and unpaid dividends,
that entitle their holders to receive cash dividends at an annual
rate that may vary for the successive dividend periods. The yields
in effect at April 30, 2003 were as follows: Series A, 1.20% and
Series B, 1.15%.
Shares issued and outstanding during the six months ended April 30,
2003 and for the year ended October 31, 2002 remained constant.
The Fund pays commissions to certain broker-dealers at the end of
each auction at an annual rate ranging from .25% to .375%,
calculated on the proceeds of each auction. For the six months ended
April 30, 2003, Merrill Lynch, Pierce, Fenner & Smith Incorporated,
an affiliate of FAM, earned $51,239 as commissions.
5. Capital Loss Carryforward:
On October 31, 2002, the Fund had a net capital loss carryforward of
$10,011,014, of which $2,974,823 expires in 2007 and $7,036,191
expires in 2008. This amount will be available to offset like
amounts of any future taxable gains.
6. Subsequent Event:
The Fund paid a tax-exempt income dividend to holders of Common
Shares in the amount of $.077000 per share on May 29, 2003 to
shareholders of record on May 16, 2003.
MuniYield Florida Fund, April 30, 2003
QUALITY PROFILE
The quality ratings of securities in the Fund as of April 30, 2003
were as follows:
Percent of
S&P Rating/Moody's Rating Total Investments
AAA/Aaa 67.8%
AA/Aa 6.0
A/A 11.4
BBB/Baa 10.0
NR (Not Rated) 4.8
MANAGED DIVIDEND POLICY
The Fund's dividend policy is to distribute all or a portion of its
net investment income to its shareholders on a monthly basis. In
order to provide shareholders with a more consistent yield to the
current trading price of shares of Common Stock 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 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 Net
Assets, which comprises part of the Financial Information included
in this report.
MuniYield Florida Fund, April 30, 2003
OFFICERS AND TRUSTEES
Terry K. Glenn, President and Trustee
James H. Bodurtha, Trustee
Joe Grills, Trustee
Herbert I. London, Trustee
Andre F. Perold, Trustee
Roberta Cooper Ramo, Trustee
Robert S. Salomon Jr., Trustee
Stephen B. Swensrud, Trustee
Kenneth A. Jacob, Senior Vice President
John M. Loffredo, Senior Vice President
Robert D. Sneeden, Vice President
Donald C. Burke, Vice President and Treasurer
Brian D. Stewart, Secretary
Melvin R. Seiden, Trustee of MuniYield Florida Fund, has recently
retired. The Fund's Board of Trustees wishes Mr. Seiden well in his
retirement.
Custodian
The Bank of New York
100 Church Street
New York, NY 10286
Transfer Agents
Common Shares:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Shares:
The Bank of New York
100Church Street
New York, NY 10286
NYSE Symbol
MYF
Item 2 - Did registrant adopt a code of ethics, as of the end of the
period covered by this report, that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by
the registrant or a third party? If not, why not? Briefly describe
any amendments or waivers that occurred during the period. State
here if code of ethics/amendments/waivers are on website and give
website address-. State here if fund will send code of ethics to
shareholders without charge upon request--N/A (not answered until
July 15, 2003 and only annually for funds)
Item 3 - Did the registrant's board of directors determine that the
registrant either: (i) has at least one audit committee financial
expert serving on its audit committee; or (ii) does not have an
audit committee financial expert serving on its audit committee? If
yes, disclose name of financial expert and whether he/she is
"independent," (fund may, but is not required, to disclose
name/independence of more than one financial expert) If no, explain
why not. -N/A (not answered until July 15, 2003 and only annually
for funds)
Item 4 - Disclose annually only (not answered until December 15,
2003)
(a) Audit Fees - Disclose aggregate fees billed for each of the last
two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant
in connection with statutory and regulatory filings or engagements
for those fiscal years. N/A.
(b) Audit-Related Fees - Disclose aggregate fees billed in each of
the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance
of the audit of the registrant's financial statements and are not
reported under paragraph (a) of this Item. Registrants shall
describe the nature of the services comprising the fees disclosed
under this category. N/A.
(c) Tax Fees - Disclose aggregate fees billed in each of the last
two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the
fees disclosed under this category. N/A.
(d) All Other Fees - Disclose aggregate fees billed in each of the
last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs
(a) through (c) of this Item. Registrants shall describe the nature
of the services comprising the fees disclosed under this category.
N/A.
(e)(1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation
S-X. N/A.
(e)(2) Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by the
audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X. N/A.
(f) If greater than 50%, disclose the percentage of hours expended
on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were
attributed to work performed by persons other than the principal
accountant's full-time, permanent employees. N/A.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to
the registrant's investment adviser (not including any sub-adviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the adviser
that provides ongoing services to the registrant for each of the
last two fiscal years of the registrant. N/A.
(h) Disclose whether the registrant's audit committee has considered
whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence. N/A.
Item 5 - If the registrant is a listed issuer as defined in Rule 10A-
3 under the Exchange Act, state whether or not the registrant has a
separately-designated standing audit committee established in
accordance with Section 3(a)(58)(A) of the Exchange Act. If the
registrant has such a committee, however designated, identify each
committee member. If the entire board of directors is acting as the
registrant's audit committee in Section 3(a)(58)(B) of the Exchange
Act, so state.
If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act regarding an exemption from the listing
standards for audit committees.
(Listed issuers must be in compliance with the new listing rules by
the earlier of their first annual shareholders meeting after January
2004, or October 31, 2004 (annual requirement))
Item 6 - Reserved
Item 7 - For closed-end funds that contain voting securities in
their portfolio, describe the policies and procedures that it uses
to determine how to vote proxies relating to those portfolio
securities. N/A (not answered until July 1, 2003)
Item 8--Reserved
Item 9(a) - The registrant's certifying officers have reasonably
designed such disclosure controls and procedures to ensure material
information relating to the registrant is made known to us by others
particularly during the period in which this report is being
prepared. The registrant's certifying officers have determined that
the registrant's disclosure controls and procedures are effective
based on our evaluation of these controls and procedures as of a
date within 90 days prior to the filing date of this report.
Item 9(b)--There were no significant changes in the registrant's
internal controls or in other factors that could significantly
affect these controls subsequent to the date of their evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Item 10 - Exhibits
10(a) - Attach code of ethics or amendments/waivers, unless code of
ethics or amendments/waivers is on website or offered to
shareholders upon request without charge. N/A.
10(b) - Attach certifications pursuant to Section 302 of the
Sarbanes-Oxley Act. Attached hereto.
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the registrant has duly
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
MuniYield Florida Fund
By: _/s/ Terry K. Glenn_______
Terry K. Glenn,
President of
MuniYield Florida Fund
Date: June 23, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed
below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.
By: _/s/ Terry K. Glenn________
Terry K. Glenn,
President of
MuniYield Florida Fund
Date: June 23, 2003
By: _/s/ Donald C. Burke________
Donald C. Burke,
Chief Financial Officer of
MuniYield Florida Fund
Date: June 23, 2003
Attached hereto as an exhibit are the certifications pursuant to
Section 906 of the Sarbanes-Oxley Act.