c54495_wrap.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

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 811-07092

Name of Fund: The BlackRock Florida Insured Municipal 2008 Term Trust, Inc. (BRF)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, The BlackRock Florida Insured Municipal 2008 Term Trust, Inc., 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 12/31/2008

Date of reporting period: 01/01/2008 – 06/30/2008



Item 1 –      Report to Stockholders

EQUITIES  

FIXED INCOME  

REAL ESTATE  

LIQUIDITY  

ALTERNATIVES  

BLACKROCK SOLUTIONS

 

Semi-Annual Report

JUNE 30, 2008 | (UNAUDITED)


 

 

BlackRock Insured Municipal 2008 Term Trust (BRM)

BlackRock Insured Municipal Term Trust (BMT)

BlackRock Municipal 2018 Term Trust (BPK)

BlackRock Municipal 2020 Term Trust (BKK)

BlackRock Strategic Municipal Trust (BSD)

BlackRock California Insured Municipal 2008 Term Trust (BFC)

BlackRock California Municipal 2018 Term Trust (BJZ)

BlackRock Florida Insured Municipal 2008 Term Trust (BRF)

BlackRock Florida Municipal 2020 Term Trust (BFO)

BlackRock New York Insured Municipal 2008 Term Trust (BLN)

BlackRock New York Municipal 2018 Term Trust (BLH)

BlackRock Pennsylvania Strategic Municipal Trust (BPS)

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE

 

 


Table of Contents

 

 

Page

 

A Letter to Shareholders

3

Semi-Annual Report:

 

Trust Summaries

4

The Benefits and Risks of Leveraging

16

Swap Agreements

16

Financial Statements:

 

Schedules of Investments

17

Statements of Assets and Liabilities

44

Statements of Operations

46

Statements of Changes in Net Assets

48

Financial Highlights

50

Notes to Financial Statements

62

Important Tax Information

67

Disclosure of Investment Advisory Agreement and Subadvisory Agreement

68

Officers and Trustees

71

Additional Information

72

 

 

 

 

 

 

 

 

 

 

 

 

2

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


A Letter to Shareholders

 

THIS PAGE NOT PART OF YOUR FUND REPORT

 

 

 

Dear Shareholder

Throughout the past year, investors were overwhelmed by lingering credit and financial market troubles, surging oil prices and more recently, renewed inflation concerns. Healthy nonfinancial corporate profits and robust exporting activity remained among the few bright spots, helping the economy to grow at a modest, but still positive, pace.

The Federal Reserve Board (the “Fed”) has been aggressive in its attempts to stoke economic growth and ease financial market instability. In addition to slashing the target federal funds rate 325 basis points (3.25%) between September 2007 and April 2008, the central bank introduced the new Term Securities Lending Facility, granted broker-dealers access to the discount window and used its own balance sheet to help negotiate the sale of Bear Stearns. As widely anticipated, the end of the period saw a pause in Fed action, as the central bank held the target rate steady at 2.0% amid rising inflationary pressures.

As the Fed’s bold response to the financial crisis helped ease credit turmoil and investor anxiety, U.S. equity markets sank sharply over the last six months, notwithstanding a brief rally in the spring. International markets were not immune to the tumult, with most regions also registering declines.

Treasury securities also traded in a volatile fashion, but generally rallied (yields fell as prices correspondingly rose), with investors continuing to seek safety as part of a broader flight to quality. The yield on 10-year Treasury issues, which fell to 3.34% in March 2008, climbed up to the 4.20% range in mid-June as investors temporarily shifted out of Treasury issues in favor of riskier assets (such as stocks and other high-quality fixed income sectors), then reversed course and declined to 3.99% by period-end when credit fears re-emerged.

Tax-exempt issues eked out gains for the reporting period, but underperformed their taxable counterparts, as the group continued to be pressured by problems among municipal bond insurers and the breakdown in the market for auction rate securities.

The major benchmark indexes generated results that largely reflected heightened investor risk aversion:

 

 

 

Total Returns as of June 30, 2008

6-month

12-month

 

 

U.S. equities (S&P 500 Index)

(11.91

)%

(13.12

)%

 

 

Small cap U.S. equities (Russell 2000 Index)

(9.37

)%

(16.19

)%

 

 

International equities (MSCI Europe, Australasia, Far East Index)

(10.96

)%

(10.61

)%

 

 

Fixed income (Lehman Brothers U.S. Aggregate Index)

1.13

%

7.12

%

 

 

Tax-exempt fixed income (Lehman Brothers Municipal Bond Index)

0.02

%

3.23

%

 

 

High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index)

(1.08

)%

(1.74

)%

 

 

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only.

You cannot invest directly in an index.

As you navigate today’s volatile markets, we encourage you to review your investment goals with your financial professional and to make portfolio changes, as needed. For more up-to-date commentary on the economy and financial markets, we invite you to visit www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with your investment assets, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,


Rob Kapito
President, BlackRock Advisors, LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 


 

Trust Summary as of June 30, 2008

BlackRock Insured Municipal 2008 Term Trust

 

Investment Objective

BlackRock Insured Municipal 2008 Term Trust (BRM) (the “Trust”) seeks to provide monthly income that is exempt from regular federal income tax and to return $15 per share (the initial offering price per share) to investors on or about December 31, 2008.

 

Performance

For the six months ended June 30, 2008, the Trust returned 1.49% based on market price and 1.49% based on net asset value (“NAV”). For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of (3.26)% on a NAV basis. All returns reflect reinvestment of dividends. The portfolio is being managed to achieve the goal of returning $15 per share on 12/31/2008, and is invested with a short duration. This, combined with high credit quality, was the primary driver of the Trust’s outperformance during a period of rising long-term rates. Low reinvestment rates for maturing principal detracted from performance.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

BRM

Initial Offering Date

September 18, 1992

Termination Date (on or about)

December 31, 2008

Yield on Closing Market Price as of June 30, 2008 ($14.99)1

2.04%

Tax Equivalent Yield2

3.14%

Current Monthly Distribution per Common Share3

$0.0255

Current Annualized Distribution per Common Share3

$0.306

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution rate is not constant and is subject to change.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$14.99

 

$15.03

 

(0.27)%

 

$15.13

 

$14.95

 

Net Asset Value

 

$15.15

 

$15.19

 

(0.26)%

 

$15.28

 

$15.13

 

The following charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:

 

Portfolio Composition

 

Sector

6/30/08

 

12/31/07

City, County & State

30

%

 

28

%

Power

23

 

 

26

 

Industrial & Pollution Control

16

 

 

14

 

Transportation

9

 

 

9

 

Water & Sewer

7

 

 

2

 

Lease Revenue

6

 

 

7

 

Education

3

 

 

8

 

Hospital

3

 

 

1

 

Tax Revenue

3

 

 

5

 

 

Credit Quality Allocations4

 

Credit Rating

6/30/08

 

12/31/07

AAA/Aaa

45

%

 

100

%

AA/Aa

55

 

 

 

 

4

Using the higher of Standard and Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings.

 

 

 

 

 

 

 

 

 

 

 

4

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Trust Summary as of June 30, 2008

BlackRock Insured Municipal Term Trust

 

Investment Objective

BlackRock Insured Municipal Term Trust (BMT) (the “Trust”) seeks to provide monthly income that is exempt from regular federal income tax and to return $10 per share (the initial offering price per share) to investors on or about December 31, 2010.

 

Performance

For the six months ended June 30, 2008, the Trust returned 3.89% based on market price and 1.42% based on NAV. For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of (3.26)% on a NAV basis. All returns reflect reinvestment of dividends. The portfolio is being managed to achieve a goal of returning $10 per share on 12/31/2010, and is invested in shorter-term issues. This was the primary driver of the Trust’s outperformance as long-term rates rose during the six months. Leverage was less efficient during the period, which detracted from performance.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

BMT

Initial Offering Date

February 20, 1992

Termination Date (on or about)

December 31, 2010

Yield on Closing Market Price as of June 30, 2008 ($10.05)1

3.63%

Tax Equivalent Yield2

5.58%

Current Monthly Distribution per Common Share3

$0.030417

Current Annualized Distribution per Common Share3

$0.365004

Leverage as of June 30, 20084

16%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Auction Market Preferred Shares (“Preferred Shares”) and Tender Option Bond Trusts (“TOBs”)) minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

10.05

 

$

9.85

 

2.03% 

 

$

10.55

 

$

9.85

 

Net Asset Value

 

$

10.31

 

$

10.35

 

(0.39)%

 

$

10.59

 

$

10.29

 

The following charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:

 

Portfolio Composition

 

Sector

6/30/08

 

12/31/07

City, County & State

31

%

 

29

%

Education

17

 

 

18

 

Power

17

 

 

14

 

Water & Sewer

16

 

 

16

 

Hospital

8

 

 

7

 

Lease Revenue

6

 

 

7

 

Transportation

4

 

 

7

 

Tax Revenue

1

 

 

2

 

 

Credit Quality Allocations5

 

Credit Rating

 

6/30/08

 

12/31/07

AAA/Aaa

 

36

%

 

100

%

AA/Aa

 

60

 

 

 

A

 

2

 

 

 

Not Rated

 

2

6

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2008, the market value of these securities was $2,527,101 representing 1% of the Trust’s long-term investments.

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

5

 


Trust Summary as of June 30, 2008

BlackRock Municipal 2018 Term Trust

 

Investment Objective

BlackRock Municipal 2018 Term Trust (BPK) (the “Trust”) seeks to provide monthly income that is exempt from regular federal income tax and to return $15 per share (the initial offering price) to investors on or about December 31, 2018.

 

Performance

For the six months ended June 30, 2008, the Trust returned 2.10% based on market price and (3.04)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (3.00)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s shorter duration bias was a positive contributor to performance as long-term rates rose during the six months. Detracting from the Trust’s relative performance was the asset allocation to lower-rated issues as the market experienced spread widening.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

BPK

Initial Offering Date

October 26, 2001

Termination Date (on or about)

December 31, 2018

Yield on Closing Market Price as of June 30, 2008 ($15.10)1

6.00%

Tax Equivalent Yield2

9.23%

Current Monthly Distribution per Common Share3

$0.0755

Current Annualized Distribution per Common Share3

$0.906

Leverage as of June 30, 20084

38%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total managed assets of the Trust (including any assets attributable to Preferred Shares and TOBs), minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

15.10

 

$

15.22

 

(0.79)%

$

16.35

 

$

14.83

 

Net Asset Value

 

$

14.19

 

$

15.06

 

(5.78)%

$

15.47

 

$

14.10

 

The following charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:

 

Portfolio Composition

 

Sector

6/30/08

 

12/31/07

Hospital

24

%

 

25

%

Industrial & Pollution Control

23

 

 

24

 

City, County & State

17

 

 

18

 

Housing

14

 

 

14

 

Education

6

 

 

6

 

Tax Revenue

5

 

 

5

 

Transportation

5

 

 

4

 

Lease Revenue

2

 

 

3

 

Water & Sewer

2

 

 

 

Power

1

 

 

 

Tobacco

1

 

 

1

 

 

Credit Quality Allocations5

 

Credit Rating

6/30/08

 

12/31/07

AAA/Aaa

15

%

 

27

%

AA/Aa

23

 

 

11

 

A

14

 

 

18

 

BBB/Baa

25

 

 

26

 

BB/Ba

2

 

 

2

 

B

4

 

 

8

 

CCC/Caa

3

 

 

 

Not Rated6

14

 

 

8

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2008 and December 31, 2007, the market value of these securities was $6,691,519 representing 2% and $5,534,635 representing 2%, respectively, of the Trust’s long-term investments.

 

 

 

 

 

 

 

 

 

 

 

 

6

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Trust Summary as of June 30, 2008

BlackRock Municipal 2020 Term Trust

 

Investment Objective

BlackRock Municipal 2020 Term Trust (BKK) (the “Trust”) seeks to provide current income exempt from regular federal income tax and to return $15 per share (the initial public offering price) on or about December 31, 2020.

 

Performance

For the six months ended June 30, 2008, the Trust returned 3.94% based on market price and (3.59)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (3.00)% on a NAV basis. All returns reflect reinvestment of dividends. Detracting from the Trust’s relative performance was the asset allocation to lower-rated issues as the market experienced spread widening. The Trust’s intermediate duration bias was a positive contributor during a period of rising long-term rates.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

BKK

Initial Offering Date

September 30, 2003

Termination Date (on or about)

December 31, 2020

Yield on Closing Market Price as of June 30, 2008 ($13.78)1

5.42%

Tax Equivalent Yield2

8.34%

Current Monthly Distribution per Common Share3

$0.06225

Current Annualized Distribution per Common Share3

$0.747

Leverage as of June 30, 20084

39%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total managed assets of the Trust (including any assets attributable to Preferred Shares and TOBs), minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

13.78

 

$

13.60

 

1.32% 

$

15.14

 

$

13.25

 

Net Asset Value

 

$

13.90

 

$

14.79

 

(6.02)%

$

15.25

 

$

13.69

 

The following charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:

 

Portfolio Composition

 

Sector

6/30/08

 

12/31/07

City, County & State

20

%

 

22

%

Hospitals

19

 

 

17

 

Industrial & Pollution Control

15

 

 

17

 

Tobacco

9

 

 

11

 

Power

8

 

 

7

 

Education

8

 

 

8

 

Housing

7

 

 

7

 

Transportation

6

 

 

5

 

Tax Revenue

6

 

 

6

 

Water & Sewer

1

 

 

 

Lease Revenue

1

 

 

 

 

Credit Quality Allocations5

 

Credit Rating

6/30/08

 

12/31/07

AAA/Aaa

16

%

 

30

%

AA/Aa

19

 

 

10

 

A

15

 

 

12

 

BBB/Baa

27

 

 

29

 

BB/Ba

1

 

 

1

 

B

4

 

 

6

 

CCC/Caa

1

 

 

 

Not Rated6

17

 

 

12

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2008 and December 31, 2007, the market value of these securities was $2,865,569 representing 1% and $2,963,570 representing 1%, respectively, of the Trust’s long-term investments.

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

7

 


Trust Summary as of June 30, 2008

BlackRock Strategic Municipal Trust

 

Investment Objective

BlackRock Strategic Municipal Trust (BSD) (the “Trust”) seeks to provide high current income exempt from regular federal income tax, consistent with the preservation of capital.

 

Performance

For the six months ended June 30, 2008, the Trust returned (3.75)% based on market price and (4.39)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (3.00)% on a NAV basis. All returns reflect reinvestment of dividends. On the whole, portfolio positioning and credit exposure were the primary detractors from the Trust’s relative performance. Throughout the period, we remained focused on delivering a competitive dividend yield. While we were successful in this effort, the Trust’s exposure to lower-rated holdings proved detrimental as credit spreads widened considerably. In the interest of sustaining the Trust’s competitive yield, we do not anticipate any significant changes in portfolio composition in the near-term.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

BSD

Initial Offering Date

August 25,1999

Yield on Closing Market Price as of June 30, 2008 ($13.02)1

5.76%

Tax Equivalent Yield2

8.86%

Current Monthly Distribution per Common Share3

$0.0625

Current Annualized Distribution per Common Share3

$0.750

Leverage as of June 30, 20084

39%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total managed assets of the Trust (including any assets attributable to Preferred Shares and TOBs), minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

13.02

 

$

13.96

 

(6.73)%

 

$

15.94

 

$

12.84

 

Net Asset Value

 

$

13.22

 

$

14.27

 

(7.36)%

 

$

14.62

 

$

12.61

 

The following charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

City, County & State

 

23

%

 

22

%

 

Hospital

 

22

 

 

22

 

 

Industrial & Pollution Control

 

11

 

 

16

 

 

Power

 

10

 

 

7

 

 

Housing

 

9

 

 

9

 

 

Education

 

8

 

 

5

 

 

Tax Revenue

 

7

 

 

8

 

 

Transportation

 

7

 

 

7

 

 

Water & Sewer

 

2

 

 

2

 

 

Tobacco

 

1

 

 

2

 

 

 

Credit Quality Allocations5

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

18

%

 

43

%

 

AA/Aa

 

31

 

 

21

 

 

A

 

15

 

 

8

 

 

BBB/Baa

 

9

 

 

15

 

 

BB/Ba

 

10

 

 

3

 

 

B

 

3

 

 

4

 

 

CCC/Caa

 

1

 

 

 

 

Not Rated6

 

13

 

 

6

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2008 and December 31, 2007, the market value of these securities was $4,482,503 representing 3% and $4,358,336 representing 3%, respectively, of the Trust’s long-term investments.

 

 

 

 

 

 

 

 

 

 

 

8

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Trust Summary as of June 30, 2008

BlackRock California Insured Municipal 2008 Term Trust

 

Investment Objective

BlackRock California Insured Municipal 2008 Term Trust (BFC) (the “Trust”) seeks to provide monthly income that is exempt from regular federal and California income taxes and to return $15 per share (the initial public offering price) to investors on or about December 31, 2008.

 

Performance

For the six months ended June 30, 2008, the Trust returned 1.12% based on market price and 1.26% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (2.38)% on a NAV basis. All returns reflect reinvestment of dividends. The portfolio is being managed to achieve the goal of returning $15 per share on 12/31/2008, and is invested primarily in short-term issues. This resulted in the Trust’s relative outperformance as long-term rates rose during the six months. Low short-term reinvestment rates detracted from performance.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

BFC

Initial Offering Date

September 18,1992

Termination Date (on or about)

December 31, 2008

Yield on Closing Market Price as of June 30, 2008 ($14.97)1

2.20%

Tax Equivalent Yield2

3.38%

Current Monthly Distribution per Common Share3

$0.0275

Current Annualized Distribution per Common Share3

$0.330

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

14.97

 

$

15.09

 

(0.80)%

 

$

15.29

 

$

14.97

 

Net Asset Value

 

$

15.18

 

$

15.28

 

(0.65)%

 

$

15.38

 

$

15.17

 

The following charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

City, County & State

 

20

%

 

24

%

 

U.S. Government Obligations

 

18

 

 

 

 

Power

 

17

 

 

21

 

 

Tax Revenue

 

13

 

 

11

 

 

Education

 

10

 

 

12

 

 

Lease Revenue

 

10

 

 

27

 

 

Transportation

 

6

 

 

 

 

Water & Sewer

 

6

 

 

5

 

 

 

Credit Quality Allocations4

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

30

%

 

100

%

 

AA/Aa

 

58

 

 

 

 

A

 

8

 

 

 

 

Not Rated

 

4

 

 

 

 

 

4

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

9

 


Trust Summary as of June 30, 2008

BlackRock California Municipal 2018 Term Trust

 

Investment Objective

BlackRock California Municipal 2018 Term Trust (BJZ) (the “Trust”) seeks to provide monthly income that is exempt from regular federal and California income taxes and to return $15 per share (the initial public offering price) to investors on or about December 31, 2018.

 

Performance

For the six months ended June 30, 2008, the Trust returned 0.04% based on market price and (1.23)% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of (2.42)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s intermediate duration bias was the primary contributor to relative outperformance during a period of rising long-term rates. The allocation to lower-rated issues detracted from performance as the market experienced spread widening.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

 

BJZ

Initial Offering Date

 

October 26, 2001

Termination Date (on or about)

 

December 31, 2018

Yield on Closing Market Price as of June 30, 2008 ($15.04)1

 

4.89%

Tax Equivalent Yield2

 

7.52%

Current Monthly Distribution per Common Share3

 

$0.06125

Current Annualized Distribution per Common Share3

 

$0.735

Leverage as of June 30, 20084

 

38%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total managed assets of the Trust (including any assets attributable to Preferred Shares and TOBs), minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

15.04

 

$

15.40

 

(2.34)%

 

$

16.05

 

$

14.68

 

Net Asset Value

 

$

14.29

 

$

14.82

 

(3.58)%

 

$

15.18

 

$

14.04

 

The following charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

City, County & State

 

24

%

 

23

%

 

Transportation

 

18

 

 

19

 

 

Hospital

 

13

 

 

13

 

 

Lease Revenue

 

11

 

 

14

 

 

Education

 

9

 

 

8

 

 

Power

 

7

 

 

5

 

 

Housing

 

7

 

 

7

 

 

Industrial & Pollution Control

 

7

 

 

7

 

 

Water & Sewer

 

2

 

 

2

 

 

Resource Recovery

 

2

 

 

2

 

 

 

Credit Quality Allocations5

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

18

%

 

44

%

 

AA/Aa

 

24

 

 

 

 

A

 

22

 

 

26

 

 

BBB/Baa

 

23

 

 

27

 

 

Not Rated

 

13

 

 

3

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

 

 

 

 

 

 

 

10

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Trust Summary as of June 30, 2008

BlackRock Florida Insured Municipal 2008 Term Trust

 

Investment Objective

BlackRock Florida Insured Municipal 2008 Term Trust (BRF) (the “Trust”) seeks to provide monthly income that is exempt from regular federal income tax and Florida intangible personal property taxes and to return $15 per share (the initial public offering price) to investors on or about December 31, 2008.

 

Performance

For the six months ended June 30, 2008, the Trust returned 0.92% based on market price and 1.46% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (2.38)% on a NAV basis. All returns reflect reinvestment of dividends. The portfolio is being managed to achieve a goal of returning $15 per share on 12/31/2008, and is invested primarily in short-term issues. This resulted in the relative outperformance as long-term rates rose during the six months. Low short-term reinvestment rates on maturing principal detracted from performance.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

 

BRF

Initial Offering Date

 

September 18, 1992

Termination Date (on or about)

 

December 31, 2008

Yield on Closing Market Price as of June 30, 2008 ($14.72)1

 

0.41%

Tax Equivalent Yield2

 

0.63%

Current Monthly Distribution per Common Share3

 

$0.005

Current Annualized Distribution per Common Share3

 

$0.060

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

14.72

 

$

14.69

 

0.20%

 

$

14.83

 

$

14.49

 

Net Asset Value

 

$

14.99

 

$

14.88

 

0.74%

 

$

15.02

 

$

14.88

 

The following charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

Tax Revenue

 

35

%

 

40

%

 

Hospital

 

16

 

 

1

 

 

Power

 

15

 

 

13

 

 

Transportation

 

14

 

 

12

 

 

City, County & State

 

10

 

 

11

 

 

Education

 

8

 

 

14

 

 

Water & Sewer

 

2

 

 

4

 

 

Resource Recovery

 

 

 

5

 

 

 

Credit Quality Allocations4

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

19

%

 

100

%

 

AA/Aa

 

75

 

 

 

 

A

 

6

 

 

 

 

 

4

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

11


Trust Summary as of June 30, 2008

BlackRock Florida Municipal 2020 Term Trust

 

Investment Objective

BlackRock Florida Municipal 2020 Term Trust (BFO) (the “Trust”) seeks to provide current income that is exempt from regular federal income tax and Florida intangible personal property taxes and to return $15.00 per share (the initial public offering price) on or about December 31, 2020.

 

Performance

For the six months ended June 30, 2008, the Trust returned (1.81)% based on market price and (1.23)% based on NAV. For the same period, the closed-end Lipper Florida Municipal Debt Funds category posted an average return of (2.48)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s intermediate duration bias was the primary driver of relative outperformance as long-term rates rose during the six months. Meanwhile, the allocation to lower-rated issues detracted from results as the market experienced spread widening during the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

 

BFO

Initial Offering Date

 

September 30, 2003

Termination Date (on or about)

 

December 31, 2020

Yield on Closing Market Price as of June 30, 2008 ($12.40)1

 

4.94%

Tax Equivalent Yield2

 

7.60%

Current Monthly Distribution per Common Share3

 

$0.051

Current Annualized Distribution per Common Share3

 

$0.612

Leverage as of June 30, 20084

 

38%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total managed assets of the Trust (including any assets attributable to Preferred Shares and TOBs), minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

12.40

 

$

12.93

 

(4.10)%

$

13.87

 

$

12.21

 

Net Asset Value

 

$

14.20

 

$

14.72

 

(3.53)%

$

15.11

 

$

13.72

 

The following charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

City, County & State

 

22

%

 

22

%

 

Water & Sewer

 

15

 

 

18

 

 

Hospitals

 

13

 

 

12

 

 

Tax Revenue

 

11

 

 

12

 

 

Education

 

10

 

 

10

 

 

Power

 

9

 

 

9

 

 

Industrial & Pollution Control

 

7

 

 

6

 

 

Lease Revenue

 

6

 

 

4

 

 

Housing

 

5

 

 

5

 

 

Transportation

 

2

 

 

2

 

 

 

Credit Quality Allocations5

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

25

%

 

59

%

 

AA/Aa

 

35

 

 

9

 

 

A

 

8

 

 

2

 

 

BBB/Baa

 

10

 

 

9

 

 

BB/Ba

 

2

 

 

2

 

 

CCC/Caa

 

 

 

1

 

 

Not Rated6

 

20

 

 

18

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of June 30, 2008 and December 31, 2007, the market value of these securities was $11,804,478 representing 9% and $2,084,840 representing 2%, respectively, of the Trust’s long-term investments.

 

 

 

 

 

 

 

 

 

 

 

12

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Trust Summary as of June 30, 2008

BlackRock New York Insured Municipal 2008 Term Trust

 

Investment Objective

BlackRock New York Insured Municipal 2008 Term Trust (BLN) (the “Trust”) seeks to provide monthly income that is exempt from regular federal, New York State and New York City income taxes and to return $15 per share (the initial public offering price) to investors on or about December 31, 2008.

 

Performance

For the six months ended June 30, 2008, the Trust returned 1.21% based on market price and 1.35% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (2.38)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust is being managed to achieve a goal of returning $15 per share on 12/31/2008, and is invested primarily in short-term issues. This resulted in the relative outperformance as long-term rates rose during the six months. Meanwhile, low short-term reinvestment rates for maturing principal detracted from results.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

 

BLN

Initial Offering Date

 

September 18, 1992

Termination Date (on or about)

 

December 31, 2008

Yield on Closing Market Price as of June 30, 2008 ($14.98)1

 

2.20%

Tax Equivalent Yield2

 

3.38%

Current Monthly Distribution per Common Share3

 

$0.0275

Current Annualized Distribution per Common Share3

 

$0.330

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

14.98

 

$

15.05

 

(0.47)%

$

15.21

 

$

14.95

 

Net Asset Value

 

$

15.16

 

$

15.21

 

(0.33)%

$

15.28

 

$

15.15

 

The following charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

Transportation

 

39

%

 

25

%

 

City, County & State

 

21

 

 

10

 

 

Hospital

 

16

 

 

9

 

 

Power

 

7

 

 

8

 

 

Industrial & Pollution Control

 

5

 

 

 

 

Housing

 

5

 

 

3

 

 

Tax Revenue

 

4

 

 

7

 

 

Lease Revenue

 

2

 

 

4

 

 

Education

 

1

 

 

19

 

 

Water & Sewer

 

 

 

15

 

 

 

Credit Quality Allocations4

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

13

%

 

100

%

 

AA/Aa

 

83

 

 

 

 

A

 

2

 

 

 

 

BBB/Baa

 

2

 

 

 

 

 

4

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

13

 


Trust Summary as of June 30, 2008

BlackRock New York Municipal 2018 Term Trust

 

Investment Objective

BlackRock New York Municipal 2018 Term Trust (BLH) (the “Trust”) seeks to provide monthly income that is exempt from regular federal, New York State and New York City income taxes and to return $15 per share (the initial public offering price) to investors on or about December 31, 2018.

 

Performance

For the six months ended June 30, 2008, the Trust returned (1.57)% based on market price and (0.47)% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of (1.66)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s intermediate duration bias during a period of rising long-term rates was the primary driver of its relative outperformance. Meanwhile, the allocation to lower-rated issues detracted from results as spreads widened during the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on New York Stock Exchange

 

BLH

Initial Offering Date

 

October 26, 2001

Termination Date (on or about)

 

December 31, 2018

Yield on Closing Market Price as of June 30, 2008 ($15.52)1

 

5.32%

Tax Equivalent Yield2

 

8.18%

Current Monthly Distribution per Common Share3

 

$0.06875

Current Annualized Distribution per Common Share3

 

$0.825

Leverage as of June 30, 20084

 

36%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total managed assets of the Trust (including any assets attributable to Preferred Shares and TOBs), minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

15.52

 

$

16.18

 

(4.08)%

 

$

16.95

 

$

15.03

 

Net Asset Value

 

$

15.50

 

$

15.98

 

(3.00)%

 

$

16.32

 

$

15.40

 

The following charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

Education

 

23

%

 

22

%

 

City, County & State

 

13

 

 

11

 

 

Hospital

 

12

 

 

15

 

 

Tobacco

 

11

 

 

11

 

 

Transportation

 

11

 

 

11

 

 

Industrial & Pollution Control

 

7

 

 

7

 

 

Lease Revenue

 

7

 

 

10

 

 

Housing

 

6

 

 

6

 

 

Tax Revenue

 

6

 

 

6

 

 

Power

 

4

 

 

1

 

 

 

Credit Quality Allocations5

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

18

%

 

44

%

 

AA/Aa

 

33

 

 

37

 

 

A

 

29

 

 

5

 

 

BBB/Baa

 

10

 

 

9

 

 

BB/Ba

 

4

 

 

 

 

B

 

 

 

4

 

 

Not Rated

 

6

 

 

1

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

 

 

 

 

 

 

 

14

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Trust Summary as of June 30, 2008

BlackRock Pennsylvania Strategic Municipal Trust

 

Investment Objective

BlackRock Pennsylvania Strategic Municipal Trust (BPS) (the “Trust”) seeks to provide monthly income that is exempt from regular federal and Pennsylvania income taxes.

 

Performance

For the six months ended June 30, 2008, the Trust returned (2.44)% based on market price and (2.74)% based on NAV. For the same period, the closed-end Lipper Pennsylvania Municipal Debt Funds category posted an average return of (2.78)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s relatively neutral duration posture benefited performance during a period of municipal bond relative underperformance and rising interest rates. The incremental yield derived from the Trust’s lower-rated issues also positively impacted recent performance.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information

 

Symbol on American Stock Exchange

 

BPS

Initial Offering Date

 

August 25, 1999

Yield on Closing Market Price as of June 30, 2008 ($12.89)1

 

4.19%

Tax Equivalent Yield2

 

6.45%

Current Monthly Distribution per Common Share3

 

$0.045

Current Annualized Distribution per Common Share3

 

$0.540

Leverage as of June 30, 20084

 

39%

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

 

2

Tax equivalent yield assumes the maximum Federal tax rate of 35%.

 

3

The distribution is not constant and is subject to change.

 

4

As a percentage of total managed assets, which is the total managed assets of the Trust (including any assets attributable to Preferred Shares and TOBs), minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

6/30/08

 

12/31/07

 

Change

 

High

 

Low

 

Market Price

 

$

12.89

 

$

13.55

 

(4.87)%

 

$

15.85

 

$

12.25

 

Net Asset Value

 

$

13.39

 

$

14.12

 

(5.17)%

 

$

14.55

 

$

12.97

 

The following charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:

 

Portfolio Composition

 

Sector

 

6/30/08

 

12/31/07

 

City, County & State

 

20

%

 

15

%

 

Education

 

17

 

 

18

 

 

Housing

 

17

 

 

16

 

 

Hospital

 

12

 

 

11

 

 

Transportation

 

11

 

 

10

 

 

Water & Sewer

 

10

 

 

16

 

 

Industrial & Pollution Control

 

5

 

 

5

 

 

Lease Revenue

 

4

 

 

4

 

 

Power

 

4

 

 

2

 

 

Tax Revenue

 

 

 

3

 

 

 

Credit Quality Allocations5

 

Credit Rating

 

6/30/08

 

12/31/07

 

AAA/Aaa

 

27

%

 

45

%

 

AA/Aa

 

30

 

 

14

 

 

A

 

22

 

 

21

 

 

BBB/Baa

 

18

 

 

17

 

 

BB/Ba

 

1

 

 

 

 

B

 

 

 

1

 

 

Not Rated

 

2

 

 

2

6

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of December 31, 2007, the market value of these securities was $971,150 representing 2% of the Trust’s long-term investments.

 

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

15

 


The Benefits and Risks of Leveraging

 

The Trusts may utilize leverage to seek to enhance the yield and NAV of their Common Shares. However, these objectives cannot be achieved in all interest rate environments.

To leverage, the Trusts may issue Preferred Shares, which pay dividends at prevailing short-term interest rates, and invest 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 Portfolios’ holdings is reflected in the per share NAV of the Trusts’ 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 trust’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%, then the yield curve has a strongly positive slope. The trust pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the trust’s total portfolio of $150 million earns income based on long-term interest rates.

In this case, the dividends paid to Preferred Shareholders are significantly lower than the income earned on the trust’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 on the trust’s Common Shares (that is, its price as listed on the New York Stock Exchange or American Stock Exchange) may, as a result, decline. Furthermore, if long-term interest rates rise, the Common Shares’ NAV will reflect the full decline in the price of the portfolio’s investments, since the value of the trust’s Preferred Shares does not fluctuate. In addition to the decline in NAV, the market value of the trust’s Common Shares may also decline.

In addition, the Trusts may from time to time leverage their assets through the use of tender option bond (“TOB”) programs. In a typical TOB program, the Trust transfers one or more municipal bonds to a TOB trust, which issues short-term variable rate securities to third-party investors and a residual interest to the Trust. The cash received by the TOB trust from the issuance of the short-term securities (less transaction expenses) is paid to the Trust, which invests the cash in additional portfolio securities. The distribution rate on the short-term securities is reset periodically (typically every seven days) through a remarketing of the short-term securities. Any income earned on the bonds in the TOB trust, net of expenses incurred by the TOB trust, that is not paid to the holders of the short-term securities is paid to the Trust. In connection with managing the Trusts’ assets, the Trusts’ investment advisor may at any time retrieve the bonds out of the TOB trust typically within seven days. TOB investments generally will provide the Trust with economic benefits in periods of declining short-term interest rates, but expose the Trust to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Trust, as described above. Additionally, fluctuations in the market value of municipal securities deposited into the TOB trust may adversely affect the Funds’ NAVs per share. (See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOB trusts.).

Under the Investment Company Act of 1940, the Trusts are permitted to issue Preferred Shares in an amount up to 50% of their total managed assets at the time of issuance. Each Trust also anticipates that its total economic leverage from Preferred Shares and TOBs will not exceed 50% of its total managed assets. As of June 30, 2008, the Trusts had leverage from Preferred Shares and TOBs as a percentage of managed assets as follows:

 

 

 

Percent of
Leverage

 

Insured Municipal Term Trust

 

16%

 

Municipal 2018 Term Trust

 

38%

 

Municipal 2020 Term Trust

 

39%

 

Strategic Municipal Trust

 

39%

 

California Municipal 2018 Term Trust

 

38%

 

Florida Municipal 2020 Term Trust

 

38%

 

New York Municipal 2018 Term Trust

 

36%

 

Pennsylvania Strategic Municipal Trust

 

39%

 

 

Swap Agreements

The Trusts may 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. Swap agreements involve the risk that the party with whom each Trust has entered into a swap will default on its obligation to pay the Trust and the risk that the Trust will not be able to meet its obligation to pay the other party to the agreement.

 

 

 

 

 

 

 

 

 

 

 

16

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Schedule of Investments June 30, 2008 (Unaudited)

BlackRock Insured Municipal 2008 Term Trust (BRM)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama—1.6%

 

 

 

 

 

 

 

Birmingham-Jefferson Civic Center Authority, Alabama, Special Tax Refunding Bonds, Series A, 4.25%, 1/01/09 (a)

 

$

6,555

 

$

6,636,020

 

Arizona—1.0%

 

 

 

 

 

 

 

Chandler, Arizona, GO, CABS, Refunding, 6.50%, 7/01/08 (b)(c)

 

 

4,000

 

 

3,999,720

 

California—7.0%

 

 

 

 

 

 

 

East Bay Municipal Utility District, California, Water System Revenue Refunding Bonds, VRDN, Sub-Series B, 1.23%, 6/01/25 (a)(d)

 

 

14,840

 

 

14,840,000

 

Southern California Public Power Authority, Revenue Refunding Bonds (Power Transmission Project), VRDN, Sub-Series B, 1.28%, 7/01/23 (d)

 

 

13,985

 

 

13,985,000

 

 

 

 

 

 

 

28,825,000

 

Colorado—0.5%

 

 

 

 

 

 

 

El Paso County, Colorado, COP (Detention Facilities Project), Series B, 3.20%, 12/01/08 (e)

 

 

1,000

 

 

1,004,890

 

Thornton, Colorado, COP, 3.25%, 12/01/08 (e)

 

 

1,000

 

 

1,004,340

 

 

 

 

 

 

 

2,009,230

 

Delaware—0.2%

 

 

 

 

 

 

 

Delaware River and Bay Authority Revenue Bonds, 3.25%, 1/01/09 (f)

 

 

650

 

 

653,653

 

District of Columbia—2.6%

 

 

 

 

 

 

 

District of Columbia, GO, VRDN, Series D-1, 1.52%, 6/01/26 (a)(d)

 

 

10,675

 

 

10,675,000

 

Florida—2.7%

 

 

 

 

 

 

 

Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Orlando Regional Healthcare), VRDN:

 

 

 

 

 

 

 

Series A-1, 3.50%, 10/01/41 (a)(d)

 

 

1,500

 

 

1,500,000

 

Series A-2, 1.30%, 10/01/41 (a)(d)

 

 

800

 

 

800,000

 

Palm Beach County, Florida, School Board, COP, VRDN, Series B, 1.51%, 8/01/27 (a)(d)

 

 

5,400

 

 

5,400,000

 

Palm Beach, Florida, Revenue Refunding Bonds (Beach Restoration Project), Series A, 5%, 1/01/09 (a)

 

 

1,300

 

 

1,320,930

 

Tampa, Florida, Water and Sewer Revenue Refunding Bonds, 5.50%, 10/01/08 (a)

 

 

2,080

 

 

2,099,344

 

 

 

 

 

 

 

11,120,274

 

Georgia—4.9%

 

 

 

 

 

 

 

Monroe County, Georgia, Development Authority, PCR, Refunding (Georgia Power Company—Scherer Plant Project), 4.20%, 1/01/12 (e)

 

 

20,000

 

 

20,153,800

 

Hawaii—1.2%

 

 

 

 

 

 

 

Honolulu, Hawaii, City and County GO, Refunding, Series E, 4%, 7/01/08 (b)

 

 

4,750

 

 

4,750,285

 

Illinois—4.6%

 

 

 

 

 

 

 

Cook County, Illinois, School District Number 025 (Arlington Heights), GO, Refunding, 4.50%, 12/01/08 (a)

 

 

2,000

 

 

2,022,760

 

               

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois—(concluded)

 

 

 

 

 

 

 

Du Page County, Illinois, Forest Preserve District, GO, 5.90%, 11/01/08 (c)

 

$

8,985

 

$

8,915,456

 

Illinois State, GO, First Series, 3.50%, 7/01/08 (f)

 

 

6,750

 

 

6,750,337

 

Kane and Du Page Counties, Illinois, Community Unit School District 303 (Saint Charles), GO, Series A, 3.75%, 1/01/09 (a)

 

 

1,455

 

 

1,469,361

 

 

 

 

 

 

 

19,157,914

 

Kentucky—0.9%

 

 

 

 

 

 

 

Owensboro, Kentucky, Electric, Light and Power Revenue Bonds, Series B, 6.75%, 1/01/09 (c)(e)

 

 

3,890

 

 

3,843,048

 

Michigan—0.9%

 

 

 

 

 

 

 

Michigan State Trunk Line Revenue Bonds, Series A, 4.125%, 11/01/08 (a)

 

 

3,000

 

 

3,023,580

 

Wyandotte, Michigan, Electric Revenue Refunding Bonds, 6.25%, 10/01/08 (f)

 

 

765

 

 

772,443

 

 

 

 

 

 

 

3,796,023

 

New Jersey—0.7%

 

 

 

 

 

 

 

Monmouth County, New Jersey, Improvement Authority, Governmental Loan Revenue Refunding Bonds, 5%, 12/01/08 (a)

 

 

1,000

 

 

1,013,760

 

New Jersey State Transportation Trust Fund Authority, Transportation System Revenue Refunding Bonds, Series C, 5.25%, 12/15/08 (e)

 

 

1,750

 

 

1,776,127

 

 

 

 

 

 

 

2,789,887

 

New York—2.9%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, New York, Dedicated Tax Fund, Revenue Refunding Bonds, VRDN, Series B, 1.45%, 11/01/22 (a)(d)

 

 

6,000

 

 

6,000,000

 

New York State Dormitory Authority, Mental Health Services Revenue Bonds, VRDN, Sub-Series D-2B, 1.25%, 2/15/31 (a)(d)

 

 

2,000

 

 

2,000,000

 

Port Authority of New York and New Jersey, Consolidated Revenue Refunding Bonds, 129th Series, 2.875%, 11/01/08 (a)

 

 

4,000

 

 

4,015,720

 

 

 

 

 

 

 

12,015,720

 

Oregon—1.0%

 

 

 

 

 

 

 

Lane County, Oregon, School District Number 4J (Eugene), GO, Advance Refunding, 3%, 1/01/09 (a)

 

 

1,285

 

 

1,293,006

 

Oregon State Department of Administrative Services, COP, Refunding, Series A, 5%, 11/01/08 (a)

 

 

2,905

 

 

2,936,316

 

 

 

 

 

 

 

4,229,322

 

Pennsylvania—6.2%

 

 

 

 

 

 

 

Dauphin County, Pennsylvania, General Authority, Hospital Revenue Refunding Bonds (Hapsco Group—Western Pennsylvania Hospital Project), Series B, 6.25%, 7/01/08 (f)(g)

 

 

965

 

 

965,116

 

 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names of many of the securities have been abbreviated according to the list on the right.

 

AMT

 

Alternative Minimum Tax (subject to)

CABS

 

Capital Appreciation Bonds

COP

 

Certificates of Participation

EDA

 

Economic Development Authority

EDR

 

Economic Development Revenue Bonds

GAN

 

Grant Anticipation Notes

GO

 

General Obligation Bonds

HDA

 

Housing Development Authority

HFA

 

Housing Finance Agency

IDA

 

Industrial Development Authority

IDB

 

Industrial Development Board

M/F

 

Multi-Family

PCR

 

Pollution Control Revenue Bonds

S/F

 

Single-Family

TFABS

 

Tobacco Flexible Amortization Bonds

VRDN

 

Variable Rate Demand Notes

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

JUNE 30, 2008

17


Schedule of Investments (concluded)

BlackRock Insured Municipal 2008 Term Trust (BRM)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

Par
(000)

 

 

Value

 

Pennsylvania—(concluded)

 

 

 

 

 

 

Lehigh County, Pennsylvania, IDA, PCR, Refunding (Pennsylvania Power and Light Utilities Corporation Project), 3.125%, 11/01/08 (e)

$

16,250

 

$

16,284,288

 

Pennsylvania State Department of General Services, COP, Refunding, 4.50%, 11/01/08 (a)

 

2,120

 

 

2,138,020

 

Philadelphia, Pennsylvania, GO, Series 2001, 4.10%, 9/15/08 (a)

 

3,175

 

 

3,189,351

 

Pittsburgh, Pennsylvania, Public Parking Authority, Parking Revenue Refunding Bonds, 3.25%, 12/01/08 (e)

 

3,125

 

 

3,136,875

 

 

 

 

 

 

25,713,650

 

Texas—9.9%

 

 

 

 

 

 

Austin, Texas, Combined Utility System, Revenue Refunding Bonds:

 

 

 

 

 

 

6.625%, 11/15/08 (e)

 

5,000

 

 

5,079,100

 

CABS, Series A, 6.85%, 11/15/08 (c)(f)

 

11,515

 

 

11,412,286

 

Austin, Texas, GO, 3.50%, 9/01/08 (a)

 

5,380

 

 

5,395,710

 

North Texas Tollway Authority, Dallas North Tollway System, Revenue Refunding Bonds, Series C, 5%, 1/01/09 (a)(g)

 

1,500

 

 

1,524,150

 

Texas Municipal Power Agency, Revenue Refunding Bonds (c)(e):

 

 

 

 

 

 

6.798%, 9/01/08 (g)

 

1,115

 

 

1,110,785

 

6.80%, 9/01/08

 

13,885

 

 

13,828,349

 

Ysleta, Texas, Independent School District, GO, CABS, Refunding, 6.70%, 8/15/08 (c)

 

2,275

 

 

2,268,425

 

 

 

 

 

 

40,618,805

 

Washington—6.4%

 

 

 

 

 

 

Clark County, Washington, Public Utility District Number 001, Electric Revenue Refunding Bonds, 5%, 1/01/09 (f)

 

1,250

 

 

1,267,912

 

King County, Washington, GO, Series D, 5.55%, 12/01/08 (f)

 

12,850

 

 

13,039,795

 

King County, Washington, Public Transportation Sales Tax, GO, Refunding, 3.50%, 12/01/08 (a)

 

3,060

 

 

3,082,093

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Washington—(concluded)

 

 

 

 

 

 

 

Seattle, Washington, GO, Series F, 5.125%, 12/15/08

 

$

250

 

$

253,868

 

Seattle, Washington, Limited Tax, GO, Refunding, 4%, 7/01/08 (a)(h)

 

 

5,710

 

 

5,710,343

 

Washington State Health Care Facilities Authority Revenue Bonds (Catholic Health Initiatives), Series A, 5.30%,
12/01/08 (f)

 

 

1,010

 

 

1,023,100

 

Washington State Public Power Supply System, Revenue Refunding Bonds (Nuclear Project Number 3), CABS, Series A, 6.49%, 7/01/08 (c)(f)

 

 

2,000

 

 

1,999,860

 

 

 

 

 

 

 

26,376,971

 

Total Municipal Bonds (Cost—$225,988,201)—55.2%

 

 

 

 

 

227,364,322

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

 

 

 

 

 

 

U.S. Government Obligations (i)

 

 

 

 

 

 

 

Fannie Mae Discount Notes

 

 

 

 

 

 

 

3.04%, 10/20/08

 

 

57,835

 

 

57,300,026

 

3.05%, 11/03/08

 

 

41,500

 

 

41,067,708

 

Freddie Mac Discount Notes, 3.20%, 10/27/08

 

 

66,697

 

 

66,006,167

 

U.S. Treasury Notes, 4.875%, 10/31/08

 

 

19,364

 

 

19,547,048

 

Total Short-Term Securities (Cost—$183,912,059)—44.6%

 

 

 

 

 

183,920,949

 

Total Investments (Cost—$409,900,260*)—99.8%

 

 

 

 

 

411,285,271

 

Other Assets Less Liabilities—0.2%

 

 

 

 

 

771,169

 

Net Assets Applicable to Common Stock—100.0%

 

 

 

 

$

412,056,440

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of June 30, 2008, as computed for federal income tax purposes, were as follows:

 

Aggregate cost

 

$

410,191,472

 

Gross unrealized appreciation

 

$

1,098,216

 

Gross unrealized depreciation

 

 

(4,417

)

Net unrealized appreciation

 

$

1,093,799

 

(a)

FSA Insured.

(b)

FGIC Insured.

(c)

Represents a zero-coupon bond. Rate shown reflects the effective yield at time of purchase.

(d)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(e)

AMBAC Insured.

(f)

MBIA Insured.

(g)

Security is collateralized by Municipal or U.S. Treasury Obligations.

(h)

U.S. Government securities, held in escrow, are used to pay interest on this security as well as to retire the bond, in full, at the date indicated, typically at a premium to par.

(i)

The interest rates shown reflect the discount rates at the time of purchase.

Effective January 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

Level 1—price quotations in active markets/exchanges for identical securities

 

Level 2—other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

 

Level 3—unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used in determining the fair value of investments)

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

The following table summarizes the inputs used as of June 30, 2008 in determining the fair valuation of the Trust’s investments:

 

Valuation
Inputs

 

Investments in
Securities

 

Level 1

 

 

 

Level 2

 

$

411,285,271

 

Level 3

 

 

 

Total

 

$

411,285,271

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

18

SEMI-ANNUAL REPORT

JUNE 30, 2008

 

 


Schedule of Investments June 30, 2008 (Unaudited)

BlackRock Insured Municipal Term Trust (BMT)

 

(Percentages shown are based on Net Assets)

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama—0.9%

 

 

 

 

 

 

 

Alabama State, Federal Highway Authority Revenue Bonds, GAN, Series A, 4.50%, 3/01/11 (a)

 

$

1,410

 

$

1,449,381

 

Birmingham-Jefferson Civic Center Authority, Alabama, Special Tax Refunding Bonds, Series A, 4.375%, 1/01/11 (b)

 

 

1,000

 

 

1,031,450

 

 

 

 

 

 

 

2,480,831

 

Alaska—6.4%

 

 

 

 

 

 

 

Anchorage, Alaska, GO, Refunding, Series B:

 

 

 

 

 

 

 

4.625%, 7/01/10 (c)

 

 

6,000

 

 

6,198,780

 

4.125%, 7/01/11 (a)

 

 

9,295

 

 

9,541,968

 

University of Alaska, Revenue Refunding Bonds, Series K, 3.75%, 10/01/10 (c)

 

 

1,260

 

 

1,274,490

 

 

 

 

 

 

 

17,015,238

 

Arizona—0.4%

 

 

 

 

 

 

 

Mesa, Arizona, GO, Refunding, Series A, 3.75%, 7/01/10 (c)

 

 

1,030

 

 

1,042,102

 

Arkansas—0.2%

 

 

 

 

 

 

 

Little Rock, Arkansas, Capital Improvement, GO, 4%, 4/01/11 (b)

 

 

500

 

 

511,900

 

California—5.7%

 

 

 

 

 

 

 

California State Department of Water Resources, Power Supply Revenue Bonds, Series A:

 

 

 

 

 

 

 

3.60%, 5/01/10 (d)

 

 

5,000

 

 

5,061,450

 

3.70%, 5/01/11 (a)

 

 

3,500

 

 

3,540,320

 

California State, GO, 6.80%, 11/01/10 (c)

 

 

145

 

 

147,010

 

Contra Costa, California, Transportation Authority, Sales Tax Revenue Bonds, Series A, 6.50%, 3/01/09 (c)(e)

 

 

3,145

 

 

3,226,078

 

Los Angeles County, California, Capital Asset Leasing Corporation, Leasehold Revenue Refunding Bonds, 6.05%, 12/01/10 (d)

 

 

3,065

 

 

3,244,118

 

 

 

 

 

 

 

15,218,976

 

Colorado—1.2%

 

 

 

 

 

 

 

Weld County, Colorado, Greeley School District Number 006 (Greeley), GO, Refunding, 3.75%, 12/01/10 (b)

 

 

3,245

 

 

3,315,060

 

Delaware—0.4%

 

 

 

 

 

 

 

Delaware River and Bay Authority Revenue Bonds, 3.75%, 1/01/11 (a)

 

 

1,015

 

 

1,023,942

 

District of Columbia—4.0%

 

 

 

 

 

 

 

District of Columbia, GO, Refunding, Series B, 5.50%, 6/01/11 (b)

 

 

10,000

 

 

10,610,100

 

Florida—1.4%

 

 

 

 

 

 

 

Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Orlando Regional Healthcare), VRDN (b)(f):

 

 

 

 

 

 

 

Series A-1, 3.50%, 10/01/41

 

 

1,000

 

 

1,000,000

 

Series A-2, 1.50%, 10/01/41

 

 

400

 

 

400,000

 

Tampa, Florida, Water and Sewer Revenue Refunding Bonds, 5.50%, 10/01/10 (b)

 

 

2,320

 

 

2,454,421

 

 

 

 

 

 

 

3,854,421

 

Georgia—0.1%