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: 811-10501
------------------------
BlackRock Municipal 2018 Term Trust
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(Exact name of registrant as specified in charter)
100 BELLEVUE PARKWAY, WILMINGTON, DE 19809
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(Address of principal executive offices) (Zip code)
Robert S. Kapito, President
BlackRock Municipal 2018 Term Trust
40 EAST 52ND STREET, NEW YORK, NY 10022
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(Name and address of agent for service)
Registrant's telephone number, including area code: 302 797-2162
-----------------------------
Date of fiscal year end: DECEMBER 31, 2003
--------------------------------------------------------
Date of reporting period: DECEMBER 31, 2003
-------------------------------------------------------
ITEM 1. REPORTS TO SHAREHOLDERS
The Trust's annual report transmitted to shareholders pursuant to Rule 30e-1
under the Investment Company Act of 1940 is as follows:
BlackRock
Closed-End Funds
Annual Report
DECEMBER 31, 2003
================================================================================
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 Municipal Target Term Trust (BMN)
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 [LOGO]
NO BANK GUARANTEE BLACKROCK
TABLE OF CONTENTS
Letter to Shareholders .................................................... 1
Trust Summaries ........................................................... 2
Portfolios of Investments ................................................. 15
Financial Statements
Statements of Assets and Liabilities ................................... 53
Statements of Operations ............................................... 55
Statements of Changes in Net Assets .................................... 57
Financial Highlights ...................................................... 62
Notes to Financial Statements ............................................. 75
Independent Auditors' Report .............................................. 80
Directors/Trustees Information ............................................ 81
Dividend Reinvestment Plans ............................................... 83
Additional Information .................................................... 84
--------------------------------------------------------------------------------
PRIVACY PRINCIPLES OF THE TRUSTS
The Trusts are committed to maintaining the privacy of shareholders and to
safeguarding their non-public personal information. The following information is
provided to help you understand what personal information the Trusts collect,
how we protect that information and why, in certain cases, we may share
information with select other parties.
Generally, the Trusts do not receive any non-public personal information
relating to their shareholders, although certain non-public personal information
of shareholders may become available to the Trusts. The Trusts do not disclose
any non-public personal information about their shareholders or former
shareholders to anyone, except as permitted by law or as is necessary in order
to service shareholder accounts (for example, to a transfer agent or third party
administrator).
The Trusts restrict access to non-public personal information about their
shareholders to BlackRock employees with a legitimate business need for the
information. The Trusts maintain physical, electronic and procedural safeguards
designed to protect the non-public personal information of their shareholders.
--------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
December 31, 2003
Dear Shareholder:
We are pleased to report that during the annual period, the Trusts
provided monthly income, as well as the opportunity to invest in various
portfolios of municipal securities. This report contains the Trusts' audited
financial statements and a listing of the portfolios' holdings.
The portfolio management team continuously monitors the municipal bond
market and adjusts the portfolios in order to gain exposure to various issuers,
revenue sources and security types. This strategy enables the Trusts to move
among different sectors, credits and coupons to capitalize on changing market
conditions.
The following table shows the Trusts' current yields, tax-equivalent
yields, closing market prices per share and net asset values ("NAV") per share
as of December 31, 2003.
--------------------------------------------------------------------------------------------------------------------------
TAX- CLOSING
CURRENT EQUIVALENT MARKET
TRUST (TICKER) YIELD(1) YIELD(1) PRICE NAV
--------------------------------------------------------------------------------------------------------------------------
BlackRock Insured Municipal 2008 Term Trust (BRM) 4.60% 7.08% $17.27 $17.38
--------------------------------------------------------------------------------------------------------------------------
BlackRock Insured Municipal Term Trust (BMT) 5.20 8.00 11.06 11.40
--------------------------------------------------------------------------------------------------------------------------
BlackRock Municipal 2018 Term Trust (BPK) 5.43 8.36 14.36 15.53
--------------------------------------------------------------------------------------------------------------------------
BlackRock Municipal 2020 Term Trust (BKK) 6.25 9.62 15.00 14.51
--------------------------------------------------------------------------------------------------------------------------
BlackRock Municipal Target Term Trust (BMN) 5.25 8.08 10.95 10.97
--------------------------------------------------------------------------------------------------------------------------
BlackRock Strategic Municipal Trust (BSD) 6.50 10.00 14.69 15.91
--------------------------------------------------------------------------------------------------------------------------
BlackRock California Insured Municipal 2008 Term Trust (BFC) 4.52 6.95 17.09 17.19
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BlackRock California Municipal 2018 Term Trust (BJZ) 5.48 8.43 13.42 14.77
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BlackRock Florida Insured Municipal 2008 Term Trust (BRF) 4.63 7.13 16.19 16.43
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BlackRock Florida Municipal 2020 Term Trust (BFO) 5.85 9.00 15.39 14.50
--------------------------------------------------------------------------------------------------------------------------
BlackRock New York Insured Municipal 2008 Term Trust (BLN) 4.42 6.80 16.96 17.13
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BlackRock New York Municipal 2018 Term Trust (BLH) 5.00 7.69 14.70 15.53
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BlackRock Pennsylvania Strategic Municipal Trust (BPS) 5.87 9.03 15.12 16.09
--------------------------------------------------------------------------------------------------------------------------
(1) Yields are based on closing market price. Tax-equivalent yield assumes the
maximum Federal tax rate of 35%.
BlackRock, Inc. ("BlackRock"), a world leader in asset management, has a
proven commitment to the municipal bond market. As of December 31, 2003,
BlackRock managed approximately $18 billion in municipal bonds, including six
open-end and 37 closed-end municipal bond funds. BlackRock is recognized for its
emphasis on risk management and proprietary analytics and for its reputation
managing money for the world's largest institutional investors. BlackRock
Advisors, Inc., which manages the Trusts, is a wholly owned subsidiary of
BlackRock.
On behalf of BlackRock, we thank you for your continued trust and assure
you that we remain committed to excellence in managing your assets. Sincerely,
/s/ Laurence D. Fink /s/ Ralph L. Schlosstein
Laurence D. Fink Ralph L. Schlosstein
Chief Executive Officer President
BlackRock Advisors, Inc. BlackRock Advisors, Inc.
1
TRUST SUMMARIES
DECEMBER 31, 2003
BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST (BRM)
TRUST INFORMATION
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Symbol on New York Stock Exchange: BRM
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Initial Offering Date: September 18, 1992
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Termination Date (on or about): December 31, 2008
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Closing Market Price as of 12/31/03: $17.27
--------------------------------------------------------------------------------
Net Asset Value as of 12/31/03: $17.38
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Yield on Closing Market Price as of 12/31/03 ($17.27):(1) 4.60%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.06625
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.79500
--------------------------------------------------------------------------------
Leverage as of 12/31/03:(3) 36%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
-----------------------------------------------------------------
12/31/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $17.27 $16.58 4.16% $17.80 $16.39
--------------------------------------------------------------------------------
NAV $17.38 $17.62 (1.36)% $18.31 $17.21
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The following chart shows the asset composition of the Trust's long-term
investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
City, County & State 29% 30%
--------------------------------------------------------------------------------
Power 21 22
--------------------------------------------------------------------------------
Education 14 11
--------------------------------------------------------------------------------
Tax Revenue 9 8
--------------------------------------------------------------------------------
Transportation 7 10
--------------------------------------------------------------------------------
Industrial & Pollution Control 6 2
--------------------------------------------------------------------------------
Lease Revenue 5 4
--------------------------------------------------------------------------------
Hospital 4 7
--------------------------------------------------------------------------------
Water & Sewer 4 4
--------------------------------------------------------------------------------
Housing 1 2
--------------------------------------------------------------------------------
As of December 31, 2003, all long-term investments had ratings of AAA/Aaa by
Standard & Poor's ("S&P"), Moody's Investors Service ("Moody's") or Fitch
Ratings ("Fitch").
2
TRUST SUMMARIES
DECEMBER 31, 2003
BLACKROCK INSURED MUNICIPAL TERM TRUST (BMT)
TRUST INFORMATION
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Symbol on New York Stock Exchange: BMT
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Initial Offering Date: February 20, 1992
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Termination Date (on or about): December 31, 2010
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Closing Market Price as of 12/31/03: $11.06
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Net Asset Value as of 12/31/03: $11.40
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Yield on Closing Market Price as of 12/31/03 ($11.06):(1) 5.20%
-------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.047917
-------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.575004
-------------------------------------------------------------------------------
Leverage as of 12/31/03:(3) 37%
-------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
----------------------------------------------------------------
12/31/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $11.06 $10.94 1.10% $11.71 $10.40
--------------------------------------------------------------------------------
NAV $11.40 $11.29 0.97% $11.90 $10.91
--------------------------------------------------------------------------------
The following chart shows the asset composition of the Trust's long-term
investments:
SECTOR BREAKDOWN
-------------------------------------------------------------------------------
SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002
-------------------------------------------------------------------------------
City, County & State 35% 34%
-------------------------------------------------------------------------------
Education 15 14
-------------------------------------------------------------------------------
Water & Sewer 14 13
-------------------------------------------------------------------------------
Power 12 15
-------------------------------------------------------------------------------
Hospital 10 11
-------------------------------------------------------------------------------
Lease Revenue 6 4
-------------------------------------------------------------------------------
Transportation 6 4
-------------------------------------------------------------------------------
Tax Revenue 2 3
-------------------------------------------------------------------------------
Housing -- 2
-------------------------------------------------------------------------------
As of December 31, 2003, 99.5% of all long-term investments had ratings of
AAA/Aaa by S&P, Moody's or Fitch and the remaining 0.5% was rated A+.
3
TRUST SUMMARIES
DECEMBER 31, 2003
BLACKROCK MUNICIPAL 2018 TERM TRUST (BPK)
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BPK
--------------------------------------------------------------------------------
Initial Offering Date: October 26, 2001
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2018
--------------------------------------------------------------------------------
Closing Market Price as of 12/31/03: $14.36
--------------------------------------------------------------------------------
Net Asset Value as of 12/31/03: $15.53
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 12/31/03 ($14.36):(1) 5.43%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.065
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.780
--------------------------------------------------------------------------------
Leverage as of 12/31/03:(3) 36%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
---------------------------------------------------------------
12/31/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $14.36 $13.43 6.92% $14.91 $13.17
--------------------------------------------------------------------------------
NAV $15.53 $14.66 5.93% $15.55 $14.16
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
Industrial & Pollution Control 23% 25%
--------------------------------------------------------------------------------
Hospital 21 18
--------------------------------------------------------------------------------
City, County & State 12 8
--------------------------------------------------------------------------------
Tobacco 12 12
--------------------------------------------------------------------------------
Housing 10 12
--------------------------------------------------------------------------------
Power 6 7
--------------------------------------------------------------------------------
Lease Revenue 3 4
--------------------------------------------------------------------------------
Education 4 4
--------------------------------------------------------------------------------
Transportation 4 3
--------------------------------------------------------------------------------
Tax Revenue 1 1
--------------------------------------------------------------------------------
Other 4 6
--------------------------------------------------------------------------------
CREDIT BREAKDOWN(4)
--------------------------------------------------------------------------------
CREDIT RATING DECEMBER 31, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 15% 21%
--------------------------------------------------------------------------------
AA/Aa 5 4
--------------------------------------------------------------------------------
A 22 37
--------------------------------------------------------------------------------
BBB/Baa 40 24
--------------------------------------------------------------------------------
BB/Ba 2 4
--------------------------------------------------------------------------------
B 4 2
--------------------------------------------------------------------------------
Not Rated(5) 12 8
--------------------------------------------------------------------------------
----------
(4) Using the higher of S&P's, Moody's or Fitch's rating.
(5) The investment advisor has deemed certain of these non-rated securities to
be of investment grade quality. As of December 31, 2003, the market value
of these securities was $18,920,780 representing 5.0% of the Trust's
long-term investments.
4
TRUST SUMMARIES
DECEMBER 31, 2003
BLACKROCK MUNICIPAL 2020 TERM TRUST (BKK)
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BKK
--------------------------------------------------------------------------------
Initial Offering Date: September 30, 2003
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2020
--------------------------------------------------------------------------------
Closing Market Price as of 12/31/03: $15.00
--------------------------------------------------------------------------------
Net Asset Value as of 12/31/03: $14.51
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 12/31/03 ($15.00):(1) 6.25%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.078125
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.937500
--------------------------------------------------------------------------------
Leverage as of 12/31/03:(3) 38%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the Trust's market price and NAV:
------------------------------------
12/31/03 HIGH LOW
--------------------------------------------------------------------------------
Market Price $15.00 $15.03 $14.57
--------------------------------------------------------------------------------
NAV $14.51 $14.53 $14.13
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------
SECTOR DECEMBER 31, 2003
--------------------------------------------------------------------
City, County & State 26%
--------------------------------------------------------------------
Hospitals 15
--------------------------------------------------------------------
Lease Revenue 14
--------------------------------------------------------------------
Industrial & Pollution Control 13
--------------------------------------------------------------------
Tobacco 9
--------------------------------------------------------------------
Education 6
--------------------------------------------------------------------
Power 6
--------------------------------------------------------------------
Tax Revenue 6
--------------------------------------------------------------------
Transportation 3
--------------------------------------------------------------------
Housing 2
--------------------------------------------------------------------
CREDIT BREAKDOWN(4)
--------------------------------------------------------------------
CREDIT RATING DECEMBER 31, 2003
--------------------------------------------------------------------
AAA/Aaa 22%
--------------------------------------------------------------------
AA/Aa 11
--------------------------------------------------------------------
A 18
--------------------------------------------------------------------
BBB/Baa 34
--------------------------------------------------------------------
BB/Ba 1
--------------------------------------------------------------------
B 5
--------------------------------------------------------------------
Not Rated 9
--------------------------------------------------------------------
----------
(4) Using the higher of S&P's, Moody's or Fitch's rating.
5
TRUST SUMMARIES
DECEMBER 31, 2003
BLACKROCK MUNICIPAL TARGET TERM TRUST (BMN)
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on the New York Stock Exchange: BMN
--------------------------------------------------------------------------------
Initial Offering Date: September 27, 1991
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2006
--------------------------------------------------------------------------------
Closing Market Price as of 12/31/03: $10.95
--------------------------------------------------------------------------------
Net Asset Value as of 12/31/03: $10.97
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 12/31/03 ($10.95):(1) 5.25%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.047917
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.575004
--------------------------------------------------------------------------------
Leverage as of 12/31/03:(3) 38%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
----------------------------------------------------------------
12/31/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $10.95 $11.01 (0.54)% $11.30 $10.75
--------------------------------------------------------------------------------
NAV $10.97 $11.16 (1.70)% $11.40 $10.88
--------------------------------------------------------------------------------
The following chart shows the asset composition of the Trust's long-term
investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
City, County & State 39% 38%
--------------------------------------------------------------------------------
Power 13 13
--------------------------------------------------------------------------------
Transportation 11 9
--------------------------------------------------------------------------------
Education 10 9
--------------------------------------------------------------------------------
Lease Revenue 7 6
--------------------------------------------------------------------------------
Water & Sewer 7 10
--------------------------------------------------------------------------------
Housing 5 5
--------------------------------------------------------------------------------
Hospital 4 6
--------------------------------------------------------------------------------
Tax Revenue 3 3
--------------------------------------------------------------------------------
Industrial & Pollution Control 1 1
--------------------------------------------------------------------------------
As of December 31, 2003, all long-term investments had ratings of AAA/Aaa by
S&P, Moody's or Fitch.
6
TRUST SUMMARIES
DECEMBER 31, 2003
BLACKROCK STRATEGIC MUNICIPAL TRUST (BSD)
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BSD
--------------------------------------------------------------------------------
Initial Offering Date: August 25, 1999
--------------------------------------------------------------------------------
Closing Market Price as of 12/31/03: $14.69
--------------------------------------------------------------------------------
Net Asset Value as of 12/31/03: $15.91
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 12/31/03 ($14.69):(1) 6.50%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.079585
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.955020
--------------------------------------------------------------------------------
Leverage as of 12/31/03:(3) 35%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
---------------------------------------------------------------
12/31/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $14.69 $13.78 6.60% $15.10 $13.25
--------------------------------------------------------------------------------
NAV $15.91 $15.01 6.00% $16.10 $14.51
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
Hospital 19% 17%
--------------------------------------------------------------------------------
Industrial & Pollution Control 16 17
--------------------------------------------------------------------------------
City, County & State 11 13
--------------------------------------------------------------------------------
Tax Revenue 9 10
--------------------------------------------------------------------------------
Education 9 9
--------------------------------------------------------------------------------
Transportation 8 8
--------------------------------------------------------------------------------
Power 8 9
--------------------------------------------------------------------------------
Housing 5 5
--------------------------------------------------------------------------------
Water & Sewer 4 4
--------------------------------------------------------------------------------
Lease Revenue 4 --
--------------------------------------------------------------------------------
Tobacco 3 4
--------------------------------------------------------------------------------
Other 4 4
CREDIT BREAKDOWN(4)
--------------------------------------------------------------------------------
CREDIT RATING DECEMBER 31, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 43% 40%
--------------------------------------------------------------------------------
AA/Aa 10 16
--------------------------------------------------------------------------------
A 12 12
--------------------------------------------------------------------------------
BBB/Baa 15 10
--------------------------------------------------------------------------------
BB/Ba 7 13
--------------------------------------------------------------------------------
B 7 3
--------------------------------------------------------------------------------
Not Rated(5) 6 6
--------------------------------------------------------------------------------
----------
(4) Using the higher of S&P's, Moody's or Fitch's rating.
(5) The investment advisor has deemed certain of these non-rated securities to
be of investment grade quality. As of December 31, 2003, the market value
of these securities was $6,508,720 representing 3.7% of the Trust's
long-term investments.
7
TRUST SUMMARIES
DECEMBER 31, 2003
BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST (BFC)
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BFC
--------------------------------------------------------------------------------
Initial Offering Date: September 18, 1992
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2008
--------------------------------------------------------------------------------
Closing Market Price as of 12/31/03: $17.09
--------------------------------------------------------------------------------
Net Asset Value as of 12/31/03: $17.19
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 12/31/03 ($17.09):(1) 4.52%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.064375
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.772500
--------------------------------------------------------------------------------
Leverage as of 12/31/03:(3) 37%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
---------------------------------------------------------------
12/31/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $17.09 $16.44 3.95% $17.09 $16.02
--------------------------------------------------------------------------------
NAV $17.19 $17.34 (0.87)% $18.03 $16.75
--------------------------------------------------------------------------------
The following chart shows the asset composition of the Trust's long-term
investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
City, County & State 22% 32%
--------------------------------------------------------------------------------
Power 18 18
--------------------------------------------------------------------------------
Lease Revenue 19 13
--------------------------------------------------------------------------------
Education 11 8
--------------------------------------------------------------------------------
Water & Sewer 10 7
--------------------------------------------------------------------------------
Tax Revenue 8 6
--------------------------------------------------------------------------------
Resource Recovery 5 1
--------------------------------------------------------------------------------
Transportation 4 9
--------------------------------------------------------------------------------
Hospital 3 3
--------------------------------------------------------------------------------
Industrial & Pollution Control -- 2
--------------------------------------------------------------------------------
Housing -- 1
--------------------------------------------------------------------------------
As of December 31, 2003, all long-term investments had ratings of AAA/Aaa by
S&P, Moody's or Fitch.
8
TRUST SUMMARIES
DECEMBER 31, 2003
BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST (BJZ)
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BJZ
--------------------------------------------------------------------------------
Initial Offering Date: October 26, 2001
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2018
--------------------------------------------------------------------------------
Closing Market Price as of 12/31/03: $13.42
--------------------------------------------------------------------------------
Net Asset Value as of 12/31/03: $14.77
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 12/31/03 ($13.42):(1) 5.48%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.06125
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.73500
--------------------------------------------------------------------------------
Leverage as of 12/31/03:(3) 37%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
---------------------------------------------------------------
12/31/03 12/31/02 CHANGE HIGH LOW
-------------------------------------------------------------------------------
Market Price $13.42 $13.40 0.15% $14.45 $12.87
-------------------------------------------------------------------------------
NAV $14.77 $14.59 1.23% $15.15 $13.55
-------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
Transportation 19% 17%
--------------------------------------------------------------------------------
City, County & State 18 23
--------------------------------------------------------------------------------
Lease Revenue 15 15
--------------------------------------------------------------------------------
Tobacco 11 16
--------------------------------------------------------------------------------
Hospital 10 5
--------------------------------------------------------------------------------
Housing 7 7
--------------------------------------------------------------------------------
Education 5 5
--------------------------------------------------------------------------------
Power 5 3
--------------------------------------------------------------------------------
Industrial & Pollution Control 2 2
--------------------------------------------------------------------------------
Water & Sewer 1 --
--------------------------------------------------------------------------------
Tax Revenue -- 1
--------------------------------------------------------------------------------
Other 7 6
--------------------------------------------------------------------------------
CREDIT BREAKDOWN(4)
--------------------------------------------------------------------------------
CREDIT RATING DECEMBER 31, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 33% 34%
--------------------------------------------------------------------------------
AA/Aa 4 4
--------------------------------------------------------------------------------
A 25 45
--------------------------------------------------------------------------------
BBB/Baa 28 10
--------------------------------------------------------------------------------
Not Rated(5) 10 7
--------------------------------------------------------------------------------
----------
(4) Using the higher of S&P's, Moody's or Fitch's rating.
(5) The investment advisor has deemed certain of these non-rated securities to
be of investment grade quality. As of December 31, 2003, the market value
of these securities was $12,685,095 representing 9.0% of the Trust's
long-term investments.
9
TRUST SUMMARIES
DECEMBER 31, 2003
BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST (BRF)
TRUST INFORMATION
-------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BRF
-------------------------------------------------------------------------------
Initial Offering Date: September 18, 1992
-------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2008
-------------------------------------------------------------------------------
Closing Market Price as of 12/31/03: $16.19
-------------------------------------------------------------------------------
Net Asset Value as of 12/31/03: $16.43
-------------------------------------------------------------------------------
Yield on Closing Market Price as of 12/31/03 ($16.19):(1) 4.63%
-------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.0625
-------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.7500
-------------------------------------------------------------------------------
Leverage as of 12/31/03:(3) 37%
-------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
-----------------------------------------------------------------
12/31/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $16.19 $15.91 1.76% $16.66 $15.48
--------------------------------------------------------------------------------
NAV $16.43 $16.41 0.12% $17.24 $16.10
--------------------------------------------------------------------------------
The following chart shows the asset composition of the Trust's long-term
investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
Tax Revenue 33% 29%
--------------------------------------------------------------------------------
Education 16 16
--------------------------------------------------------------------------------
Power 14 11
--------------------------------------------------------------------------------
Lease Revenue 11 11
--------------------------------------------------------------------------------
City, County & State 10 16
--------------------------------------------------------------------------------
Water & Sewer 7 7
--------------------------------------------------------------------------------
Transportation 6 3
--------------------------------------------------------------------------------
Resource Recovery 3 3
--------------------------------------------------------------------------------
Housing -- 3
--------------------------------------------------------------------------------
Other -- 1
--------------------------------------------------------------------------------
As of December 31, 2003, all long-term investments had ratings of AAA/Aaa by
S&P, Moody's or Fitch.
10
TRUST SUMMARIES
DECEMBER 31, 2003
BLACKROCK FLORIDA MUNICIPAL 2020 TERM TRUST (BFO)
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BFO
--------------------------------------------------------------------------------
Initial Offering Date: September 30, 2003
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2020
--------------------------------------------------------------------------------
Closing Market Price as of 12/31/03: $15.39
--------------------------------------------------------------------------------
Net Asset Value as of 12/31/03: $14.50
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 12/31/03 ($15.39):(1) 5.85%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.075
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.900
--------------------------------------------------------------------------------
Leverage as of 12/31/03:(3) 38%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the Trust's market price and NAV:
------------------------------------
12/31/03 HIGH LOW
------------------------------------------------------------------------
Market Price $15.39 $15.56 $14.82
------------------------------------------------------------------------
NAV $14.50 $14.57 $14.25
------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------
SECTOR DECEMBER 31, 2003
--------------------------------------------------------------------
City, County & State 31%
--------------------------------------------------------------------
Water & Sewer 21
--------------------------------------------------------------------
Tobacco 11
--------------------------------------------------------------------
Power 11
--------------------------------------------------------------------
Hospitals 10
--------------------------------------------------------------------
Industrial & Pollution Control 6
--------------------------------------------------------------------
Tax Revenue 6
--------------------------------------------------------------------
Transportation 3
--------------------------------------------------------------------
Lease Revenue 1
--------------------------------------------------------------------
CREDIT BREAKDOWN(4)
--------------------------------------------------------------------
CREDIT RATING DECEMBER 31, 2003
--------------------------------------------------------------------
AAA/Aaa 50%
--------------------------------------------------------------------
AA/Aa 1
--------------------------------------------------------------------
A 5
--------------------------------------------------------------------
BBB/Baa 17
--------------------------------------------------------------------
Not Rated(5) 27
--------------------------------------------------------------------
(4) Using the higher of S&P's, Moody's or Fitch's rating.
(5) The investment advisor has deemed certain of these non-rated securities to
be of investment grade quality. As of December 31, 2003, the market value
of these securities was $2,097,600 representing 2.0% of the Trust's
long-term investments.
11
TRUST SUMMARIES
DECEMBER 31, 2003
BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST (BLN)
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BLN
--------------------------------------------------------------------------------
Initial Offering Date: September 18, 1992
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2008
--------------------------------------------------------------------------------
Closing Market Price as of 12/31/03: $16.96
--------------------------------------------------------------------------------
Net Asset Value as of 12/31/03: $17.13
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 12/31/03 ($16.96):(1) 4.42%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.0625
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.7500
--------------------------------------------------------------------------------
Leverage as of 12/31/03:(3) 36%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
----------------------------------------------------------------
12/31/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $16.96 $16.22 4.56% $17.15 $15.85
--------------------------------------------------------------------------------
NAV $17.13 $17.09 0.23% $17.81 $16.65
--------------------------------------------------------------------------------
The following chart shows the asset composition of the Trust's long-term
investments:
SECTOR BREAKDOWN
-------------------------------------------------------------------------------
SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002
-------------------------------------------------------------------------------
Transportation 27% 27%
-------------------------------------------------------------------------------
Education 19 18
-------------------------------------------------------------------------------
City, County & State 16 17
-------------------------------------------------------------------------------
Water & Sewer 11 11
-------------------------------------------------------------------------------
Hospital 10 11
-------------------------------------------------------------------------------
Tax Revenue 6 4
-------------------------------------------------------------------------------
Power 5 5
-------------------------------------------------------------------------------
Housing 3 4
-------------------------------------------------------------------------------
Lease Revenue 3 3
-------------------------------------------------------------------------------
As of December 31, 2003, all long-term investments had ratings of AAA/Aaa by
S&P, Moody's or Fitch.
12
TRUST SUMMARIES
DECEMBER 31, 2003
BLACKROCK NEW YORK MUNICIPAL 2018 TERM TRUST (BLH)
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BLH
--------------------------------------------------------------------------------
Initial Offering Date: October 26, 2001
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2018
--------------------------------------------------------------------------------
Closing Market Price as of 12/31/03: $14.70
--------------------------------------------------------------------------------
Net Asset Value as of 12/31/03: $15.53
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 12/31/03 ($14.70):(1) 5.00%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.06125
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.73500
--------------------------------------------------------------------------------
Leverage as of 12/31/03:(3) 36%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
-----------------------------------------------------------------
12/31/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $14.70 $13.46 9.21% $15.00 $13.23
--------------------------------------------------------------------------------
NAV $15.53 $15.11 2.78% $15.79 $14.22
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
Education 22% 21%
--------------------------------------------------------------------------------
Hospital 17 19
--------------------------------------------------------------------------------
City, County & State 11 11
--------------------------------------------------------------------------------
Transportation 11 14
--------------------------------------------------------------------------------
Tobacco 10 11
--------------------------------------------------------------------------------
Lease Revenue 7 7
--------------------------------------------------------------------------------
Industrial & Pollution Control 6 --
--------------------------------------------------------------------------------
Tax Revenue 6 6
--------------------------------------------------------------------------------
Housing 4 5
--------------------------------------------------------------------------------
Power 1 1
--------------------------------------------------------------------------------
Other 5 5
--------------------------------------------------------------------------------
CREDIT BREAKDOWN(4)
--------------------------------------------------------------------------------
CREDIT RATING DECEMBER 31, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 23% 25%
--------------------------------------------------------------------------------
AA/Aa 37 40
--------------------------------------------------------------------------------
A 19 24
--------------------------------------------------------------------------------
BBB/Baa 13 3
--------------------------------------------------------------------------------
B -- 3
--------------------------------------------------------------------------------
CCC/Caa 3 --
--------------------------------------------------------------------------------
Not Rated(5) 5 5
--------------------------------------------------------------------------------
----------
(4) Using the higher of S&P's, Moody's or Fitch's rating.
(5) The investment advisor has deemed certain of these non-rated securities to
be of investment grade quality.
13
TRUST SUMMARIES
DECEMBER 31, 2003
BLACKROCK PENNSYLVANIA STRATEGIC MUNICIPAL TRUST (BPS)
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on American Stock Exchange: BPS
--------------------------------------------------------------------------------
Initial Offering Date: August 25, 1999
--------------------------------------------------------------------------------
Closing Market Price as of 12/31/03: $15.12
--------------------------------------------------------------------------------
Net Asset Value as of 12/31/03: $16.09
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 12/31/03 ($15.12):(1) 5.87%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.073965
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.887580
--------------------------------------------------------------------------------
Leverage as of 12/31/03:(3) 35%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
-----------------------------------------------------------------
12/31/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $15.12 $14.33 5.51% $15.58 $13.74
--------------------------------------------------------------------------------
NAV $16.09 $15.61 3.07% $16.57 $15.31
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR DECEMBER 31, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
Education 21% 20%
--------------------------------------------------------------------------------
Hospital 20 18
--------------------------------------------------------------------------------
Transportation 17 16
--------------------------------------------------------------------------------
Housing 12 12
--------------------------------------------------------------------------------
Water & Sewer 7 12
--------------------------------------------------------------------------------
City, County & State 5 4
--------------------------------------------------------------------------------
Lease Revenue 5 5
--------------------------------------------------------------------------------
Industrial & Pollution Control 4 4
--------------------------------------------------------------------------------
Other 9 9
--------------------------------------------------------------------------------
CREDIT BREAKDOWN(4)
--------------------------------------------------------------------------------
CREDIT RATING DECEMBER 31, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 52% 54%
--------------------------------------------------------------------------------
AA/Aa 14 14
--------------------------------------------------------------------------------
A 7 6
--------------------------------------------------------------------------------
BBB/Baa 10 10
--------------------------------------------------------------------------------
BB/Ba 5 5
--------------------------------------------------------------------------------
Not Rated(5) 12 11
--------------------------------------------------------------------------------
----------
(4) Using the higher of S&P's, Moody's or Fitch's rating.
(5) The investment advisor has deemed certain of these non-rated securities to
be of investment grade quality. As of December 31, 2003, the market value
of these securities was $4,322,000 representing 9.5% of the Trust's
long-term investments.
14
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST (BRM)
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
LONG-TERM INVESTMENTS--155.1%
ALABAMA--2.1%
AAA $ 2,410 Auburn Univ., 5.00%, 4/01/09, AMBAC ....................................... No Opt. Call $ 2,682,089
AAA 6,555 Birmingham Jefferson Civic Ctr. Auth., Ser. A, 4.25%, 1/01/09, FSA ........ No Opt. Call 7,049,509
------------
9,731,598
------------
ALASKA--0.9%
AAA 4,000 Anchorage, GO, Ser. B, 3.75%, 7/01/09, MBIA ............................... No Opt. Call 4,195,320
------------
ARIZONA--1.9%
AAA 4,000 Chandler, GO, Zero Coupon, 7/01/08, FGIC .................................. No Opt. Call 3,549,440
AAA 1,000 Phoenix Str. & Hwy., 4.25%, 7/01/09, FGIC ................................. No Opt. Call 1,081,010
AAA 4,200 Pima Cnty. Str. & Hwy., 4.125%, 7/01/09, FGIC ............................. 07/08 @ 101 4,496,142
------------
9,126,592
------------
CALIFORNIA--2.6%
California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A,
AAA 5,000 3.125%, 5/01/08, FSA .................................................... No Opt. Call 5,160,250
AAA 5,000 3.375%, 5/01/09, MBIA ................................................... No Opt. Call 5,197,600
AAA 1,890 California Hlth. Facs. Fin. Auth., Marin Gen. Hosp., Ser. A, 5.75%,
8/01/09, FSA ............................................................ 01/04 @ 102 1,933,980
------------
12,291,830
------------
COLORADO--2.4%
AAA 2,000 E-470 Pub. Hwy. Auth., Ser. B, Zero Coupon, 9/01/11, MBIA ................. No Opt. Call 1,499,160
AAA 1,000 El Paso Cnty., COP, Detention Fac. Proj., Ser. B, 3.20%, 12/01/08, AMBAC .. No Opt. Call 1,032,720
AAA 6,965 Regl. Transp. Dist., COP, Transp. Vehicles Proj., Ser. A, 5.00%,
6/01/08, MBIA ........................................................... 06/07 @ 101 7,680,027
AAA 1,000 Thornton, COP, 3.25%, 12/01/08, AMBAC ..................................... No Opt. Call 1,035,010
------------
11,246,917
------------
DELAWARE--0.1%
AAA 650 Delaware River & Bay Auth., 3.25%, 1/01/09, MBIA .......................... No Opt. Call 669,130
------------
DISTRICT OF COLUMBIA--3.6%
Dist. of Columbia, GO,
AAA 195 Ser. B, 5.50%, 6/01/09, FSA ............................................. ETM 224,388
AAA 2,605 Ser. B, 5.50%, 6/01/09, FSA ............................................. No Opt. Call 2,954,852
AAA 10,000 Ser. B-1, 5.50%, 6/01/08, AMBAC ......................................... No Opt. Call 11,226,200
AAA 2,750 Ser. E, 5.875%, 6/01/08, MBIA ........................................... ETM 2,825,873
------------
17,231,313
------------
FLORIDA--4.6%
AAA 2,280 Broward Cnty. Sch. Brd., COP, Ser. B, 4.25%, 7/01/09, FSA ................. No Opt. Call 2,465,911
AAA 13,890 Florida Dept. of Env. Protection Presvtn., Ser. B, 5.00%, 7/01/09, MBIA ... No Opt. Call 15,574,302
AAA 1,300 Palm Beach, Restoration Proj., Ser. A, 5.00%, 1/01/09, FSA ................ No Opt. Call 1,450,488
AAA 2,080 Tampa Wtr. & Swr., 5.50%, 10/01/08, FSA ................................... No Opt. Call 2,365,355
------------
21,856,056
------------
GEORGIA--3.5%
AAA 5,000 Georgia, GO, Ser. E, 5.25%, 2/01/10 ....................................... No Opt. Call 5,685,000
AAA 10,000 Monroe Cnty., PCR, Pwr. Co. Plant Vogtle Proj., 4.20%, 1/01/12, AMBAC ..... No Opt. Call 10,700,300
------------
16,385,300
------------
HAWAII--3.7%
Hawaii, GO, FSA,
AAA 6,510 Ser. CY, 4.00%, 2/01/09 ................................................. No Opt. Call 6,941,613
AAA 8,045 Ser. CZ, 3.25%, 7/01/09 ................................................. No Opt. Call 8,271,547
AAA 1,880 Honolulu City and Cnty., Ser. A, 5.00%, 3/01/09, MBIA ..................... No Opt. Call 2,096,745
------------
17,309,905
------------
ILLINOIS--21.4%
AAA 14,205 Chicago O'Hare Intl. Arpt., Ser. A, 6.25%, 1/01/08, MBIA .................. 01/05 @ 102 15,110,853
Chicago Park Dist., Parking Rev., GO,
AAA 3,290 Ser. A, 3.00%, 1/01/08, FGIC ............................................ No Opt. Call 3,375,968
AAA 1,750 Ser. A, 3.50%, 1/01/09, FGIC ............................................ No Opt. Call 1,817,690
AAA 1,000 Ser. C, 3.00%, 1/01/09, AMBAC ........................................... No Opt. Call 1,015,460
See Notes to Financial Statements.
15
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
ILLINOIS (CONTINUED)
AAA $ 2,930 Chicago Proj. & Refunding, Ser. A, 5.00%, 1/01/09, AMBAC .................. No Opt. Call $ 3,247,407
AAA 3,105 Chicago Pub. Bldg., Ser. A, Zero Coupon, 1/01/07, MBIA .................... ETM 2,906,032
Chicago Sch. Fin. Auth., GO, Ser. A, FGIC,
AAA 13,000 6.25%, 6/01/07 .......................................................... 01/04 @ 101.5 13,239,590
AAA 9,150 6.25%, 6/01/09 .......................................................... 01/04 @ 101.5 9,318,634
Cook Cnty. High Sch., GO,
AAA 5,980 J. Sterling Morton Twnshp., Zero Coupon, 12/01/09, FGIC ................. No Opt. Call 4,944,862
AAA 2,000 Arlington Heights, 4.50%, 12/01/08, FSA ................................. No Opt. Call 2,181,920
AAA 8,985 Du Page Cnty. Forest Presvtn. Dist., Zero Coupon, 11/01/08 ................ No Opt. Call 7,798,531
Illinois, GO, Ser. 1, MBIA,
AAA 6,750 3.50%, 7/01/08 .......................................................... No Opt. Call 7,052,602
AAA 5,000 3.75%, 7/01/09 .......................................................... No Opt. Call 5,267,600
AAA 13,000 Illinois Dev. Fin. Auth., Gas Sply., 3.05%, 2/01/33, AMBAC ................ No Opt. Call 13,221,910
AAA 1,455 Kane & Du Page Cntys. Sch. Dist., GO, Ser. A, 3.75%, 1/01/09, FSA ......... No Opt. Call 1,528,172
Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place
Expansion Proj., FGIC,
AAA 8,385 Zero Coupon, 6/15/08 .................................................... ETM 7,469,526
AAA 215 Zero Coupon, 6/15/08 .................................................... No Opt. Call 189,088
AAA 1,570 Ser. A, Zero Coupon, 6/15/08 ............................................ ETM 1,398,587
------------
101,084,432
------------
INDIANA--1.5%
Indiana Hlth. Fac. Fin. Auth., Hosp. Rev. & Impvt., Ancilla Sys. Inc., MBIA,
AAA 3,860 Ser. A, 6.25%, 7/01/08 .................................................. 01/04 @ 101 3,958,006
AAA 2,965 Ser. B, 6.25%, 7/01/08 .................................................. 01/04 @ 101 3,040,281
------------
6,998,287
------------
KANSAS--0.2%
AAA 1,000 Kansas Dev. Fin. Auth., Pub. Wtr. Sply., 4.00%, 4/01/09, AMBAC ............ No Opt. Call 1,064,820
------------
KENTUCKY--0.7%
AAA 3,890 Owensboro Elec. Lt. & Pwr., Ser. B, Zero Coupon, 1/01/09, AMBAC ........... No Opt. Call 3,341,821
------------
LOUISIANA--1.3%
AAA 5,770 Louisiana Pub. Facs. Auth., Ochsner Clinic Fndtn. Proj., Ser. A, 3.50%,
5/15/09, MBIA ........................................................... No Opt. Call 5,971,085
------------
MASSACHUSETTS--1.1%
AAA 4,465(3) Chelsea Sch. Proj. Loan, 6.00%, 6/15/04, AMBAC ............................ N/A 4,651,994
AAA 565 Massachusetts Hsg. Fin. Agcy. Hsg. Projs., Ser. A, 5.95%, 10/01/08, AMBAC . 01/04 @ 102 572,198
------------
5,224,192
------------
MICHIGAN--6.4%
AAA 1,665 Detroit, GO, 3.50%, 4/01/09, MBIA ......................................... No Opt. Call 1,738,276
AAA 6,315 Detroit City Sch. Dist., GO, Sch. Bldg. & Site Impvt., Ser. A, 4.00%,
5/01/09, FGIC ............................................................. No Opt. Call 6,753,261
Lake Orion, Cmnty. Sch. Dist., AMBAC,
AAA 3,290(3) 6.60%, 5/01/05 .......................................................... N/A 3,558,300
AAA 3,285(3) 6.70%, 5/01/05 .......................................................... N/A 3,557,162
AAA 3,000 Michigan Trunk Line, Ser. A, 4.125%, 11/01/08, FSA ........................ No Opt. Call 3,228,960
AAA 2,535 Washtenaw Cmnty. Coll., 4.00%, 4/01/09, MBIA .............................. No Opt. Call 2,714,706
AAA 2,695 West Ottawa Pub. Sch. Dist., GO, Ser. B, 3.50%, 5/01/09, FGIC ............. No Opt. Call 2,822,285
AAA 2,000 Western Twnshps. Util. Auth. Sewage Disp. Sys., 5.00%, 1/01/09, FGIC ...... No Opt. Call 2,228,540
AAA 3,400 Wyandotte Elec., 6.25%, 10/01/08, MBIA .................................... No Opt. Call 3,769,002
------------
30,370,492
------------
MISSISSIPPI--0.5%
Aaa 2,175 De Soto Cnty. Sch. Dist., GO, 3.25%, 2/01/09, FSA ......................... No Opt. Call 2,248,428
------------
NEVADA--5.2%
AAA 16,270 Clark Cnty. Sch. Dist, Ser. A, 4.00%, 6/01/09, FGIC ....................... No Opt. Call 17,373,594
AAA 2,245 Las Vegas Clark Cnty. Library Dist., 4.75%, 2/01/09, FGIC ................. No Opt. Call 2,467,771
Nevada Dept. of Bus. & Ind., Las Vegas Monorail Proj., AMBAC,
AAA 2,085 Zero Coupon, 1/01/09 .................................................... No Opt. Call 1,773,668
AAA 3,585 Zero Coupon, 1/01/10 .................................................... No Opt. Call 2,909,873
------------
24,524,906
------------
NEW JERSEY--7.9%
Monmouth Cnty. Impvt. Auth., Gov't. Loan,
AAA 1,220 3.10%, 4/15/09, AMBAC ................................................... No Opt. Call 1,252,586
AAA 1,000 5.00%, 12/01/08, FSA .................................................... No Opt. Call 1,117,820
See Notes to Financial Statements.
16
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
NEW JERSEY (CONTINUED)
New Jersey Econ. Dev. Auth., Ser. A, MBIA,
AAA 1,220 Econ. Recovery Fund, 4.50%, 3/15/09 ..................................... No Opt. Call $ 1,331,569
AAA $30,275(3) Mkt. Transp. Fac. Rev., 5.80%, 7/01/04 .................................. N/A 31,580,458
AAA 1,750 New Jersey Transp. Trust Fund Auth., Transp. Sys., Ser. C, 5.25%,
12/15/08, AMBAC ........................................................... No Opt. Call 1,969,328
------------
37,251,761
------------
NEW MEXICO--1.1%
AAA 2,030 Farmington Util. Sys., Ser. A, 3.50%, 5/15/09, FSA ........................ No Opt. Call 2,121,350
AAA 3,285 New Mexico Fin. Auth., Pub. Proj., Ser. A, 3.80%, 6/01/08, MBIA ........... No Opt. Call 3,118,664
------------
5,240,014
------------
NEW YORK--14.7%
AAA 2,000 Erie Cnty., Public Impvt., Ser. A, 4.50%, 3/15/09, FGIC ................... No Opt. Call 2,191,060
AAA 15,915 New York, GO, Ser. F, 5.25%, 9/15/09, MBIA ................................ 09/08 @ 101 17,811,909
New York City, GO, MBIA,
AAA 5,000 Ser. E, 6.125%, 8/01/06 ................................................. No Opt. Call 5,524,600
AAA 15,500 Ser. E, 6.20%, 8/01/07 .................................................. No Opt. Call 17,577,000
AAA 5,000 Ser. G, 5.75%, 2/01/08 .................................................. 02/06 @ 101.5 5,457,650
AAA 4,250 New York City Hlth. & Hosp. Corp., Hlth. Sys. Svcs., Ser. A, 3.50%,
2/15/09, AMBAC ............................................................ No Opt. Call 4,407,887
New York Env. Fac. Corp., PCR, Ser. D,
AAA 7,080(3) 6.50%, 11/15/04 ......................................................... N/A 7,549,051
AAA 1,110 6.50%, 5/15/07 .......................................................... 11/04 @ 102 1,180,240
AAA 3,395 New York Thruway Auth., Svc. Contract Rev., Local Hwy. & Brdg.,
Ser. A, 5.40%, 1/01/09, MBIA ............................................ 01/05 @ 102 3,588,583
AAA 4,000 Port Auth. of NY & NJ, Ser. 129, 2.875%, 11/01/08, FSA .................... No Opt. Call 4,093,760
------------
69,381,740
------------
NORTH CAROLINA--8.4%
AAA 1,000(3) Cumberland Cnty., COP, Civic Ctr. Proj., Ser. A, 6.375%, 12/01/04, AMBAC .. N/A 1,067,520
No. Carolina Eastn. Mun. Pwr. Agcy., Sys. Rev., Ser. B,
AAA 13,500 6.125%, 1/01/09, FGIC ................................................... No Opt. Call 15,715,620
AAA 5,000 7.00%, 1/01/08, CAPMAC .................................................. No Opt. Call 5,875,550
AAA 14,675 7.25%, 1/01/07, CAPMAC .................................................. No Opt. Call 16,879,038
------------
39,537,728
------------
OHIO--1.2%
AAA 2,410(3) Cleveland, GO, 6.40%, 11/15/04, MBIA ...................................... N/A 2,567,614
Ohio Bldg. Auth., Ser. A,
AAA 1,000(3) Juvenile Correctional Proj., 6.50%, 10/01/04, AMBAC ..................... N/A 1,060,070
AAA 2,000 Workers Comp. Facs., 5.00%, 4/01/09, FGIC ............................... No Opt. Call 2,239,300
------------
5,866,984
------------
OREGON--1.9%
AAA 1,285 Lane Cnty. Sch. Dist., No. 4, 3.00%, 1/01/09, FSA ......................... No Opt. Call 1,315,159
Oregon Dept. of Admin. Svcs., FSA,
AAA 2,905 COP, 5.00%, 11/01/08 .................................................... No Opt. Call 3,201,310
AAA 2,255 Lottery Rev., Ser. C, 3.125%, 4/01/09 ................................... No Opt. Call 2,318,659
AAA 2,000 Washington & Clackamas Cntys. Sch. Dist., GO, 3.75%, 6/15/08, MBIA ........ No Opt. Call 2,122,740
------------
8,957,868
------------
PENNSYLVANIA--12.1%
Aaa 1,460 Bensalem Twp. Sch. Dist., GO, 3.25%, 8/15/09, FGIC ........................ No Opt. Call 1,501,990
AAA 1,500 Bristol Twnshp. Sch. Dist., 4.25%, 2/15/09, FGIC .......................... No Opt. Call 1,618,005
Dauphin Cnty. Gen. Auth., HAPSCO-Western Pennsylvania Hosp. Proj., MBIA,
AAA 8,480 Ser. A, 6.25%, 7/01/08 .................................................. 01/04 @ 101 8,587,272
AAA 4,290 Ser. B, 6.25%, 7/01/08 .................................................. ETM 4,710,334
AAA 3,500 Indiana Cnty. Indl. Dev. Auth., PCR, Elec. & Gas Corp., Ser. A, 6.00%,
6/01/06, MBIA ........................................................... No Opt. Call 3,854,550
AAA 16,250 Lehigh Cnty. Indl. Dev. Auth., PCR, 3.125%, 11/01/08, AMBAC ............... No Opt. Call 16,755,050
Pennsylvania Dept. of Gen. Svcs., COP, FSA,
AAA 2,075 4.50%, 5/01/08 .......................................................... No Opt. Call 2,258,140
AAA 2,120 4.50%, 11/01/08 ......................................................... No Opt. Call 2,317,754
AAA 2,165 4.50%, 5/01/09 .......................................................... No Opt. Call 2,368,726
AAA 2,220 4.50%, 11/01/09 ......................................................... No Opt. Call 2,434,785
AAA 3,175 Philadelphia, GO, 4.10%, 9/15/08, FSA ..................................... No Opt. Call 3,407,632
AAA 3,125 Pittsburgh Pub. Parking Auth., Parking Rev., 3.25%, 12/01/08, AMBAC ....... No Opt. Call 3,241,750
See Notes to Financial Statements.
17
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
PENNSYLVANIA (CONTINUED)
AAA $ 3,955 West Chester Area Sch. Dist., GO, Ser. AA, 3.65%, 1/15/09, MBIA ........... 07/07 @ 100 $ 4,122,494
------------
57,178,482
------------
SOUTH CAROLINA--0.8%
AAA 2,020 Chester Cnty. Sch. Dist., 3.25%, 2/01/09, FSA ............................. No Opt. Call 2,093,063
AAA 1,705 Lexington Cnty. Sch. Dist. 1, COP, 3.50%, 3/01/09, AMBAC .................. No Opt. Call 1,788,153
------------
3,881,216
------------
TENNESSEE--0.2%
AAA 1,000 Clarksville Wtr., Swr & Gas Rev., 4.30%, 2/01/09, FSA ..................... No Opt. Call 1,080,470
------------
TEXAS--24.1%
AAA 5,380 Austin, GO, Pub. Impvt., 3.50%, 9/01/08, FSA .............................. No Opt. Call 5,641,898
Austin Util. Sys.,
AAA 11,515 Ser. A, Zero Coupon, 11/15/08, MBIA ..................................... No Opt. Call 10,021,504
AAA 5,000 Ser. A, Zero Coupon, 11/15/09, AMBAC .................................... No Opt. Call 4,162,000
AAA 5,000 Ser. A, Zero Coupon, 11/15/09, MBIA ..................................... No Opt. Call 4,162,000
AAA 5,000 6.625%, 11/15/08, AMBAC ................................................. No Opt. Call 5,941,700
Coppell Indpt. Sch. Dist., MBIA,
AAA 1,430 6.10%, 8/15/09 .......................................................... ETM 1,690,246
AAA 620 6.10%, 8/15/09 .......................................................... 02/04 @ 100 623,143
AAA 2,500 Dallas Wtrwks. & Swr. Sys., 3.50%, 4/01/09, FSA ........................... No Opt. Call 2,603,800
AAA 2,000 Houston, Pub. Impvt., Ser. A-1, 5.00%, 3/01/09, MBIA ...................... No Opt. Call 2,232,640
AAA 4,390 Houston Indpt. Sch. Dist., Zero Coupon, 8/15/09, AMBAC .................... No Opt. Call 3,682,727
Lower Colorado River Auth.,
AAA 2,010 3.50%, 5/15/09, MBIA .................................................... No Opt. Call 2,095,325
AAA 2,690 5.25%, 5/15/09, FSA ..................................................... No Opt. Call 3,038,086
AAA 1,650 Lubbock Cnty., 3.50%, 2/15/09, FGIC ....................................... No Opt. Call 1,722,534
AAA 1,500 North Texas Tollway Auth., Ser. C, 5.00%, 1/01/09, FSA .................... No Opt. Call 1,663,965
AAA 6,000 San Antonio Elec. & Gas, Ser. B, Zero Coupon, 2/01/10, FGIC ............... ETM 4,894,560
AAA 9,050 Tarrant Regl. Wtr. Dist., Impvt., 3.50%, 3/01/09, FSA ..................... No Opt. Call 9,420,055
Texas Mun. Pwr. Agcy.,
AAA 820 Zero Coupon, 9/01/08, AMBAC ............................................. ETM 722,805
AAA 14,180 Zero Coupon, 9/01/08, AMBAC ............................................. No Opt. Call 12,412,889
AAA 875 Zero Coupon, 9/01/09, AMBAC ............................................. ETM 739,445
AAA 15,300 Zero Coupon, 9/01/09, AMBAC ............................................. No Opt. Call 12,817,422
AAA 7,000 5.00%, 9/01/10, FGIC .................................................... 09/04 @ 100 7,164,010
Texas Pub. Fin. Auth.,
AAA 2,270 3.50%, 2/01/09, FGIC .................................................... No Opt. Call 2,361,390
AAA 3,000 Ser. A, 5.50%, 2/01/09, AMBAC ........................................... 02/08 @ 101 3,378,210
AAA 5,900 Ser. B, 6.25%, 2/01/09, AMBAC ........................................... No Opt. Call 6,903,000
AAA 1,825 Williamson Cnty., GO, Ser. B, 5.00%, 2/15/09, FSA ......................... No Opt. Call 2,035,550
AAA 2,275 Ysleta Indpt. Sch. Dist., GO, Zero Coupon, 8/15/08 ........................ No Opt. Call 1,994,015
------------
114,124,919
------------
UTAH--3.6%
Intermountain Pwr. Agcy., Sply., Ser. B, MBIA,
AAA 2,215 6.00%, 7/01/07 .......................................................... ETM 2,521,534
AAA 1,285 6.00%, 7/01/07 .......................................................... No Opt. Call 1,455,391
AAA 1,550(3) Salt Lake Cnty. Mun. Bldg. Auth., Ser. A, 6.05%, 10/01/04, MBIA ........... N/A 1,622,617
AAA 10,300(3) Utah, GO, Ser. F, 5.00%, 7/01/07 .......................................... N/A 11,379,440
------------
16,978,982
------------
WASHINGTON--10.3%
AAA 1,250 Clark Cnty. Pub. Util. Dist., No. 1 Elec. Rev., 5.00%, 1/01/09, MBIA ...... No Opt. Call 1,386,637
King Cnty., GO,
AAA 3,060 Pub. Transp. Sales Tax, 3.50%, 12/01/08, FSA ............................ No Opt. Call 3,202,259
AAA 12,850 Ser. D, 5.55%, 12/01/08, MBIA ........................................... 12/07 @ 102 14,619,574
AAA 5,710 Seattle Impvt. Ltd. Tax, 4.00%, 7/01/08, FSA .............................. No Opt. Call 6,099,251
Washington Hlth. Care Fac. Auth., Catholic Hlth. Initiatives, Ser. A, MBIA,
AAA 1,010 5.30%, 12/01/08 ......................................................... No Opt. Call 1,135,462
AAA 1,000 5.40%, 12/01/10 ......................................................... 06/10 @ 101 1,142,710
AAA 2,045 Washington Motor Vehicle Fuel Tax, GO, 4.00%, 7/01/09, MBIA ............... No Opt. Call 2,172,547
Washington Pub. Pwr. Sply.,
AAA 11,000 Ser. A, 5.80%, 7/01/07, FSA ............................................. No Opt. Call 12,365,210
AAA 5,550 Nuclear Proj. No. 3, Zero Coupon, 7/01/07, MBIA ......................... No Opt. Call 5,051,166
AAA 2,000 Nuclear Proj. No. 3, Zero Coupon, 7/01/08, MBIA ......................... No Opt. Call 1,745,860
------------
48,920,676
------------
See Notes to Financial Statements.
18
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
WEST VIRGINIA--1.4%
AAA $ 1,550 West Virginia Econ. Dev. Auth., Correctional Juvenile & Pub., Ser. A,
4.25%, 6/01/08, MBIA .................................................... No Opt. Call $ 1,669,862
West Virginia Higher Ed. Policy Comm. Rev., Ser. A, MBIA,
AAA 2,455 State College Fac., 5.00%, 4/01/09 ...................................... No Opt. Call 2,735,974
AAA 2,135 Univ. Facs., 5.00%, 4/01/09 ............................................. No Opt. Call 2,379,351
------------
6,785,187
------------
WISCONSIN--3.1%
Wisconsin, GO,
AAA 7,705 Ser. A, 4.00%, 5/01/09, FGIC ............................................ No Opt. Call 8,214,763
AAA 6,080 Ser. C, 4.00%, 5/01/09, MBIA ............................................ No Opt. Call 6,482,253
------------
14,697,016
------------
WYOMING--0.6%
Albany Cnty. Impvts. Statutory Trust, COP, MBIA,
AAA 1,270 3.75%, 1/15/09 .......................................................... No Opt. Call 1,335,557
AAA 1,395 3.75%, 7/15/09 .......................................................... No Opt. Call 1,466,494
------------
2,802,051
------------
TOTAL LONG-TERM INVESTMENTS (COST $ 680,127,340) .......................... 733,557,518
------------
SHORT-TERM INVESTMENTS--0.1%
VIRGINIA--0.1%
A1+ 400(4) Loudoun Cnty. Indl. Dev. Auth., Howard Hughes Med., Ser. C, 1.30%,
1/02/04, FRDD (cost $400,000) ........................................... N/A 400,000
------------
TOTAL INVESTMENTS--155.2% (COST $680,527,340) ............................. $733,957,518
Other assets in excess of liabilities--2.1% ............................... 9,907,797
Preferred shares at redemption value, including dividends payable--(57.3)% (271,080,787)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $472,784,528
============
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) This bond is prerefunded. Securities, held in escrow, are used to pay
interest on this security, as well as retire the bond in full at the date
indicated, typically at a premium to par.
(4) For purposes of amortized cost valuation, the maturity date of this
instrument is considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
Securities that are covered by insurance, which ensures the timely payment of
principal and interest, represent approximately 95.1% of the Trust's total
investments.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
CAPMAC -- Capital Markets Assurance Company
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
FRDD -- Floating Rate Daily Demand
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
--------------------------------------------------------------------------------
See Notes to Financial Statements.
19
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
BLACKROCK INSURED MUNICIPAL TERM TRUST (BMT)
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
LONG-TERM INVESTMENTS--155.0%
ALABAMA--0.9%
AAA $ 1,410 Alabama Fed. Hwy. Fin. Auth., Grant Antic., Ser. A, 4.50%, 3/01/11, MBIA .. No Opt. Call $ 1,539,635
AAA 1,000 Birmingham Jefferson Civic Ctr. Auth., Ser. A, 4.375%, 1/01/11, FSA ....... No Opt. Call 1,082,200
------------
2,621,835
------------
ALASKA--7.8%
Anchorage, GO, Ser. B,
AAA 14,345 4.125%, 7/01/11, MBIA ................................................... No Opt. Call 15,194,368
AAA 6,000 4.625%, 7/01/10, FGIC ................................................... No Opt. Call 6,567,000
AAA 1,260 Univ. of Alaska, Ser. K, 3.75%, 10/01/10, FGIC ............................ No Opt. Call 1,316,410
------------
23,077,778
------------
ARIZONA--4.4%
AAA 1,000 Arizona St. Univ., 4.20%, 7/01/11, FGIC ................................... No Opt. Call 1,073,120
AAA 1,030 Mesa, GO, Ser. A, 3.75%, 7/01/10, FGIC .................................... No Opt. Call 1,082,633
AAA 6,340 Pima Cnty. Str. & Hwy., 4.25%, 7/01/11, FGIC .............................. 07/08 @ 101 6,684,959
AAA 4,180 Univ. of Arizona Med. Ctr., Hosp. Rev., 6.25%, 7/01/10, MBIA .............. 01/04 @ 101 4,232,877
------------
13,073,589
------------
ARKANSAS--0.5%
AAA 1,500 Little Rock, Cap. Impvt., 4.00%, 4/01/11, FSA ............................. No Opt. Call 1,586,970
------------
CALIFORNIA--8.3%
California, GO, FGIC,
AAA 4,355(3) 6.80%, 11/01/04 ......................................................... N/A 4,645,043
AAA 145 6.80%, 11/01/10 ......................................................... 11/04 @ 102 154,196
California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A,
AAA 5,000 3.60%, 5/01/10, AMBAC ................................................... No Opt. Call 5,185,600
AAA 3,500 3.70%, 5/01/11, MBIA .................................................... No Opt. Call 3,613,540
AAA 6,100 Contra Costa Trans. Auth., Sales Tax Rev., 6.50%, 3/01/09, FGIC ........... ETM 7,107,903
AAA 3,065 Los Angeles Cnty., Asset Leasing Corp., 6.05%, 12/01/10, AMBAC ............ No Opt. Call 3,654,767
------------
24,361,049
------------
COLORADO--1.2%
AAA 3,245 Weld Cnty. Sch. Dist. No. 6, 3.75%, 12/01/10, FSA ......................... No Opt. Call 3,418,543
------------
DELAWARE--0.4%
AAA 1,015 Delaware River & Bay Auth., 3.75%, 1/01/11, MBIA .......................... No Opt. Call 1,060,086
------------
DISTRICT OF COLUMBIA--3.9%
AAA 10,000 Dist. of Columbia, GO, Ser. B, 5.50%, 6/01/11, FSA ........................ No Opt. Call 11,457,000
------------
FLORIDA--0.9%
AAA 2,320 Tampa Wtr. & Swr., 5.50%, 10/01/10, FSA ................................... No Opt. Call 2,682,152
------------
GEORGIA--1.7%
AAA 5,000 Henry Cnty. Hosp. Auth., Ser. B, 6.375%, 7/01/09, FGIC .................... 01/04 @ 101 5,063,550
------------
HAWAII--4.5%
AAA 11,080 Hawaii, GO, Ser. CN, 5.25%, 3/01/11, FGIC ................................. 03/07 @ 102 12,252,818
AAA 1,000 Univ. of Hawaii, Univ. Sys., 3.875%, 7/15/10, FGIC ........................ No Opt. Call 1,057,550
------------
13,310,368
------------
ILLINOIS--16.1%
Chicago, GO, Ser. A,
AAA 4,000 4.375%, 1/01/11, AMBAC .................................................. No Opt. Call 4,326,200
AAA 1,790 5.00%, 1/01/11, MBIA .................................................... No Opt. Call 2,005,892
Chicago Park Dist., Parking Rev., GO, Ser. A, FGIC,
AAA 3,120 3.50%, 1/01/10 .......................................................... No Opt. Call 3,230,448
AAA 3,695 4.00%, 1/01/11 .......................................................... No Opt. Call 3,909,716
AAA 1,000 Du Page & Cook Cntys. Sch. Dist., GO, 4.50%, 1/01/11, FGIC ................ No Opt. Call 1,089,360
AAA 1,750 Du Page & Will Cntys. Sch. Dist., GO, 4.25%, 12/30/10, FGIC ............... No Opt. Call 1,892,730
Du Page Cnty. Forest Presvtn. Dist.,
AAA 5,000 Zero Coupon, 11/01/10 ................................................... No Opt. Call 3,932,300
AAA 11,965 Zero Coupon, 11/01/11 ................................................... No Opt. Call 8,947,188
See Notes to Financial Statements.
20
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
ILLINOIS (CONTINUED)
Illinois, GO, Ser. 1,
AAA $ 1,500 4.50%, 2/01/11, FGIC .................................................... No Opt. Call $ 1,632,480
AAA 2,000 4.50%, 4/01/11, FSA ..................................................... No Opt. Call 2,174,960
AAA 4,000 5.25%, 2/01/11, FGIC .................................................... No Opt. Call 4,542,560
AAA 5,000 Illinois Edl. Fac. Auth., 5.70%, 7/01/13, FGIC ............................ 01/04 @ 102 5,128,150
AAA 2,265 Kane & Du Page Cntys. Sch. Dist., GO, Ser. A, 4.00%, 1/01/11, FSA ......... No Opt. Call 2,396,619
AAA 1,025 Orland Park, GO, Ser. A, 3.50%, 12/01/10, FGIC ............................ No Opt. Call 1,059,973
AAA 1,075 Rockford Sch. Dist., GO, 4.30%, 2/01/11, FGIC ............................. No Opt. Call 1,158,506
------------
47,427,082
------------
INDIANA--3.8%
AAA 2,635 Indiana Mun. Pwr. Agcy., Pwr. Sply. Sys., Ser. A, 4.50%, 1/01/11, AMBAC ... No Opt. Call 2,867,012
Indianapolis Loc. Pub. Impvt. Bond Bank, Wtr. Wtrwks. Proj., Ser. A, MBIA,
AAA 2,085 4.25%, 7/01/10 .......................................................... No Opt. Call 2,242,605
AAA 2,815 4.375%, 1/01/11 ......................................................... No Opt. Call 3,040,876
AAA 2,950 4.375%, 7/01/11 ......................................................... No Opt. Call 3,181,545
------------
11,332,038
------------
KANSAS--0.7%
Kansas Dev. Fin. Auth., Pub. Wtr. Sply., AMBAC,
AAA 1,025 4.125%, 4/01/10 ......................................................... No Opt. Call 1,101,506
AAA 1,000 4.25%, 4/01/11 .......................................................... No Opt. Call 1,078,130
------------
2,179,636
------------
KENTUCKY--3.4%
AAA 12,675 Kentucky Econ. Dev. Fin. Sys., Norton Hlth. Care Inc., Ser. B, Zero
Coupon, 10/01/10, MBIA .................................................. No Opt. Call 10,050,641
------------
LOUISIANA--2.1%
AAA 6,010 Louisiana Pub. Facs. Auth., Ochsner Clinic Fndtn. Proj., Ser. B, 4.00%,
5/15/11, MBIA ........................................................... No Opt. Call 6,319,335
------------
MASSACHUSETTS--3.4%
AAA 7,865(3) Massachusetts, GO, Ser. C, 6.70%, 11/01/04, FGIC .......................... N/A 8,304,418
AAA 1,725 Massachusetts Hlth. & Edl. Facs. Auth., So. Shore Hosp., Ser. D, 6.50%,
7/01/10, MBIA ........................................................... 01/04 @ 101 1,765,365
------------
10,069,783
------------
MICHIGAN--4.1%
Detroit, GO, MBIA,
AAA 1,580 4.00%, 4/01/10 .......................................................... No Opt. Call 1,677,391
AAA 1,955 4.00%, 4/01/11 .......................................................... No Opt. Call 2,057,970
Michigan Mun. Bd. Auth.,
AAA 900 Ser. A, 6.50%, 11/01/12, MBIA ........................................... 01/04 @ 101 912,600
AAA 730 Ser. B, 6.45%, 11/01/07, AMBAC .......................................... 11/04 @ 102 774,472
AAA 730 Ser. B, 6.65%, 11/01/09, AMBAC .......................................... 11/04 @ 102 775,654
AAA 1,310(3) Ser. G, 6.45%, 11/01/04, AMBAC .......................................... N/A 1,393,526
AAA 1,320(3) Ser. G, 6.65%, 11/01/04, AMBAC .......................................... N/A 1,406,301
AAA 2,810 Wyandotte City Sch. Dist., Bldg. & Site, 4.00%, 5/01/11, FSA .............. No Opt. Call 2,967,079
------------
11,964,993
------------
MINNESOTA--1.8%
AAA 2,800 Hopkins Indpt. Sch. Dist. No. 270, GO, Ser. B, 4.00%, 2/01/11, FSA ........ No Opt. Call 2,968,112
A+ 2,180 So. Minnesota Mun. Pwr. Agcy., Ser. B, 5.75%, 1/01/11 ..................... ETM 2,246,446
------------
5,214,558
------------
NEVADA--3.2%
AAA 4,185(3) Clark Cnty. Sch. Dist., GO, 6.75%, 12/15/04, FGIC ......................... N/A 4,449,325
Nevada Dept. of Bus. & Ind., Las Vegas Monorail Proj., AMBAC,
AAA 3,795 Zero Coupon, 1/01/11 .................................................... No Opt. Call 2,930,765
AAA 2,870 Zero Coupon, 1/01/12 .................................................... No Opt. Call 2,094,755
------------
9,474,845
------------
NEW JERSEY--0.3%
AAA 1,000 Monmouth Cnty. Impvt. Auth., Govt. Loan, 3.375%, 12/01/10, FSA ............ No Opt. Call 1,026,990
------------
NEW MEXICO--3.9%
AAA 1,750 Las Cruces Sch. Dist. No. 002, GO, 5.25%, 8/01/11, FSA .................... 08/09 @ 100 1,953,105
New Mexico Fin. Auth., Pub. Proj., Ser. A, MBIA,
AAA 1,444 3.40%, 6/01/11 .......................................................... No Opt. Call 1,463,927
AAA 1,625 4.20%, 6/01/10 .......................................................... No Opt. Call 1,747,541
AAA 3,625 4.30%, 6/01/11 .......................................................... No Opt. Call 3,893,722
AAA 2,230 New Mexico Hwy. Comn., Ser. B, 4.75%, 6/15/11, AMBAC ...................... No Opt. Call 2,462,232
------------
11,520,527
------------
See Notes to Financial Statements.
21
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
NEW YORK--15.6%
AAA $ 8,950 Long Island Pwr. Auth., Elec. Sys. Rev., Ser. A, 5.50%, 12/01/10, AMBAC ... No Opt. Call $ 10,336,355
AAA 4,500(3) New York City, GO, Ser. B1, 6.95%, 8/15/04, MBIA .......................... N/A 4,706,640
New York Env. Fac. Corp., PCR, Ser. D,
AAA 5,145(3) 6.70%, 11/15/04 ......................................................... N/A 5,494,654
AAA 1,010 6.70%, 5/15/09 .......................................................... 11/04 @ 102 1,075,630
AAA 4,180(3) 6.80%, 11/15/04 ......................................................... N/A 4,467,625
AAA 785 6.80%, 5/15/10 .......................................................... 11/04 @ 102 836,677
New York Med. Care Fac. Fin., New York Hosp., Ser. A, AMBAC,
AAA 9,715(3) 6.60%, 2/15/05 .......................................................... N/A 10,498,321
AAA 2,695(3) 6.625%, 2/15/05 ......................................................... N/A 2,913,052
AAA 5,000 New York St. Thruway Auth., St. Personal Income Tax Rev., Ser. A,
5.00%, 3/15/11, FSA ..................................................... No Opt. Call 5,618,900
------------
45,947,854
------------
OHIO--0.7%
AAA 1,000 Akron, GO, 4.00%, 12/01/10, MBIA .......................................... No Opt. Call 1,067,740
AAA 1,015 Univ. of Cincinnati, Ser. G, 3.50%, 6/01/09, AMBAC ........................ No Opt. Call 1,063,669
------------
2,131,409
------------
OREGON--3.8%
AAA 1,995 Lane Cnty. Sch. Dist. No. 4, 3.75%, 1/01/11, FSA .......................... No Opt. Call 2,079,767
AAA 1,000 Oregon Dept. of Admin. Svcs., Lottery Rev., Ser. C, 3.50%, 4/01/11, FSA ... No Opt. Call 1,024,470
Washington & Clackamas Cntys. Sch. Dist., GO, MBIA,
AAA 3,820 4.00%, 6/15/10 .......................................................... No Opt. Call 4,085,987
AAA 3,720 4.00%, 6/15/11 .......................................................... No Opt. Call 3,949,003
------------
11,139,227
------------
PENNSYLVANIA--9.5%
AAA 2,430 Central York Sch. Dist., GO, 4.125%, 6/01/11, FGIC ........................ No Opt. Call 2,597,184
AAA 4,285 Dauphin Cnty. Gen. Auth., HAPSCO-Western Pennsylvania Hosp. Proj.,
Ser. B, 6.25%, 7/01/08, MBIA ............................................ ETM 4,704,844
AAA 7,500 Pennsylvania Higher Edl. Facs. Auth., Univ. of Pennsylvania Hlth. Svcs.,
Ser. A, 5.25%, 8/01/10, FSA ............................................. 08/09 @ 101 8,397,225
AAA 2,100 Philadelphia Wtr. & Wst., 5.625%, 6/15/08, AMBAC .......................... No Opt. Call 2,389,611
AAA 7,000 Pittsburgh, GO, Ser. A, 5.20%, 3/01/10, FGIC .............................. 09/05 @ 100 7,401,030
AAA 1,075 State Pub. Sch. Bldg. Auth., York Sch. Dist. Proj., 4.75%, 5/01/11, FSA ... No Opt. Call 1,191,939
AAA 1,250 Wilson Sch. Dist., GO, 4.00%, 5/15/10, FSA ................................ No Opt. Call 1,332,212
------------
28,014,045
------------
RHODE ISLAND--1.9%
AAA 5,000 Rhode Island & Providence Plantations, GO, Ser. B, 4.20%, 6/01/10, FGIC ... ETM 5,425,900
AAA 235 Rhode Island Clean Wtr. Protection Fin. Agcy., PCR, Ser. A, 6.70%,
10/01/10, MBIA .......................................................... 04/04 @ 101 240,271
------------
5,666,171
------------
SOUTH CAROLINA--5.1%
AAA 14,925 Piedmont Mun. Pwr. Agcy., Elec. Rev., 6.30%, 1/01/11, MBIA ................ 01/04 @ 101 15,114,100
------------
TENNESSEE--0.8%
Clarksville Wtr., Swr. & Gas, FSA,
AAA 1,005 4.45%, 2/01/10 .......................................................... No Opt. Call 1,093,350
AAA 1,100 4.65%, 2/01/11 .......................................................... No Opt. Call 1,209,032
------------
2,302,382
------------
TEXAS--14.0%
AAA 1,090 Addison, GO, 3.375%, 2/15/11, FGIC ........................................ No Opt. Call 1,108,301
Bexar Met. Wtr. Dist., Wtrwrks. Sys., FSA,
AAA 1,085 3.70%, 5/01/10 .......................................................... No Opt. Call 1,134,042
AAA 1,090 3.80%, 5/01/11 .......................................................... No Opt. Call 1,137,491
AAA 2,500 Dallas Ft. Worth Regl. Arpt., Ser. A, 7.375%, 11/01/10, FGIC .............. 05/04 @ 102 2,593,475
AAA 2,000 Dallas Rapid Transit, 4.30%, 12/01/10, AMBAC .............................. No Opt. Call 2,159,780
Harris Cnty., GO,
AAA 1,500 Ser. A, 5.00%, 10/01/10, FSA ............................................ No Opt. Call 1,683,690
AAA 330 Ser. B, Zero Coupon, 8/15/08, FGIC ...................................... ETM 292,697
AAA 2,255 Ser. B, Zero Coupon, 8/15/08, FGIC ...................................... No Opt. Call 1,976,485
AAA 2,000 Houston, GO, Ser. A1, 5.00%, 3/01/11, MBIA ................................ No Opt. Call 2,240,880
AAA 2,490 Houston Area Wtr. Corp., Northeast Wtr. Purification Proj., 4.50%,
3/01/11, FGIC ........................................................... No Opt. Call 2,707,228
AAA 10,440 Houston Wtr. & Swr. Sys., Ser. C, Zero Coupon, 12/01/10, AMBAC ............ No Opt. Call 8,231,314
See Notes to Financial Statements.
22
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
TEXAS (CONTINUED)
AAA $ 5,550 Katy Indpt. Sch. Dist., GO, Ser. A, Zero Coupon, 2/15/11 .................. No Opt. Call $ 4,293,757
AAA 4,000 Texas Mun. Pwr. Agcy., 5.50%, 9/01/10, MBIA ............................... No Opt. Call 4,596,480
AAA 2,245 Texas Pub. Fin. Auth., 4.00%, 2/01/11, FGIC ............................... No Opt. Call 2,368,071
AAA 1,250 Texas Tech. Univ. Revs., Ser. 9, 5.00%, 2/15/11, AMBAC .................... No Opt. Call 1,398,025
AAA 1,630 Texas Univ. Sys. Fin., 3.50%, 3/15/11, FSA ................................ No Opt. Call 1,668,598
AAA 1,500 Univ. of Houston, Ser. A, 4.00%, 2/15/10, FSA ............................. No Opt. Call 1,590,705
------------
41,181,019
------------
UTAH--2.7%
AAA 3,470 Intermountain Pwr. Agcy., Sply., Ser. A, 5.25%, 7/01/11, MBIA ............. 07/09 @ 101 3,911,766
AAA 1,450(3) Salt Lake Cnty. Mun. Bldg. Auth., Ser. A, 6.15%, 10/01/04, MBIA ........... N/A 1,518,991
AAA 3,175 Salt Lake Cnty. Wtr. Conservancy Dist., Ser. A, Zero Coupon, 10/01/10,
AMBAC ................................................................... No Opt. Call 2,525,998
------------
7,956,755
------------
WASHINGTON--12.5%
AAA 7,345 Benton Cnty. Sch. Dist. No. 17, GO, Kennewick Sch., 4.50%, 12/01/10, FSA .. No Opt. Call 8,022,723
AAA 1,000 Chelan Cnty. Sch. Dist., GO, 4.50%, 12/01/10, FSA ......................... No Opt. Call 1,092,270
AAA 3,000 Clark Cnty. Pub. Util. Dist. No. 1, Elec. Rev., 4.50%, 1/01/11, AMBAC ..... No Opt. Call 3,256,290
AAA 2,040 Clark Cnty. Sch. Dist. No. 114, Evergreen, GO, 4.125%, 12/01/10, FSA ...... No Opt. Call 2,180,842
AAA 1,010 Tacoma, GO, 4.625%, 12/01/10, FGIC ........................................ No Opt. Call 1,111,020
Washington, GO, MBIA,
AAA 5,000 Ser. A, 5.50%, 7/01/11 .................................................. 07/09 @ 100 5,653,300
AAA 1,505 Ser. R, 3.125%, 1/01/11 ................................................. No Opt. Call 1,504,518
Washington Pub. Pwr. Sply. Sys., MBIA,
AAA 1,300 Ser. B, Zero Coupon, 7/01/10 ............................................ No Opt. Call 1,032,434
AAA 9,160 Nuclear Proj. No. 2, Ser. A, Zero Coupon, 7/01/10 ....................... ETM 7,483,995
AAA 3,745 Nuclear Proj. No. 2, Ser. A, Zero Coupon, 7/01/10 ....................... No Opt. Call 2,974,204
AAA 2,280 Whatcom Cnty. Sch. Dist. No. 503, GO, 4.50%, 12/01/10, FSA ................ No Opt. Call 2,490,376
------------
36,801,972
------------
WEST VIRGINIA--3.4%
West Virginia Econ. Dev. Auth., Correctional Juvenile & Pub., Ser. A, MBIA,
AAA 3,705 4.50%, 6/01/10 .......................................................... No Opt. Call 4,046,675
AAA 4,420 4.50%, 6/01/11 .......................................................... No Opt. Call 4,817,844
AAA 1,170 West Virginia Sch. Bldg. Auth., 4.00%, 7/01/11, AMBAC ..................... No Opt. Call 1,237,603
------------
10,102,122
------------
WISCONSIN--5.6%
AAA 1,045 Appleton Wtrwks., 4.375%, 1/01/11, FGIC ................................... No Opt. Call 1,126,124
Wisconsin Clean Wtr., Ser. 2, MBIA,
AAA 4,640 4.00%, 6/01/10 .......................................................... No Opt. Call 4,933,202
AAA 9,850 4.00%, 6/01/11 .......................................................... No Opt. Call 10,413,124
------------
16,472,450
------------
WYOMING--2.1%
Albany Cnty. Impvts. Statutory Trust, COP, MBIA,
AAA 1,325 4.00%, 1/15/10 .......................................................... No Opt. Call 1,404,129
AAA 1,450 4.00%, 7/15/10 .......................................................... No Opt. Call 1,534,404
AAA 1,480 4.00%, 1/15/11 .......................................................... No Opt. Call 1,560,690
AAA 1,510 4.00%, 7/15/11 .......................................................... No Opt. Call 1,587,282
------------
6,086,505
------------
TOTAL LONG-TERM INVESTMENTS (COST $421,798,697) ........................... 457,209,359
------------
See Notes to Financial Statements.
23
SHARES
(000) DESCRIPTION VALUE
==================================================================================================================================
MONEY MARKET FUND--1.4%
4,050 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $4,050,000) ...... $ 4,050,000
------------
TOTAL INVESTMENTS--156.3% (COST $425,848,697) ............................. $461,259,359
Other assets in excess of liabilities--1.4% ............................... 4,192,338
Preferred shares at redemption value, including dividends payable--(57.8)% (170,424,011)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $295,027,686
============
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) This bond is prerefunded. Securities, held in escrow, are used to pay
interest on this security, as well as retire the bond in full at the date
indicated, typically at a premium to par.
Securities that are covered by insurance, which ensures the timely payment of
principal and interest, represent approximately 93.3% of the Trust's total
investments.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
--------------------------------------------------------------------------------
See Notes to Financial Statements.
24
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
BLACKROCK MUNICIPAL 2018 TERM TRUST (BPK)
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
LONG-TERM INVESTMENTS--153.1%
ALABAMA--4.9%
Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj.,
Baa2 $ 5,000 6.15%, 6/01/19 .......................................................... 06/05 @ 102 $ 5,185,200
BBB 1,000 Proj. A, 5.90%, 2/01/17 ................................................. 02/04 @ 102 1,019,610
A2 5,845 Huntsville Hlth. Care Auth., Ser. A, 5.625%, 6/01/22 ...................... 06/12 @ 101 5,999,834
------------
12,204,644
------------
ARIZONA--1.5%
AA 5,000 Glendale Cnty., 2.00%, 7/01/18 ............................................ 07/13 @ 100 3,832,100
------------
CALIFORNIA--2.1%
A 1,750 Agua Caliente Band of Cahuilla Indians, 5.60%, 7/01/13 .................... No Opt. Call 1,758,050
B- 3,460 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc.,
Ser. C, 7.50%, 12/01/24 ................................................. 12/12 @ 102 3,427,199
------------
5,185,249
------------
CONNECTICUT--2.9%
Baa3 3,750(3) Mashantucket Western Pequot Tribe, Spec. Rev., Ser. B, 5.75%, 9/01/18 ..... 09/07 @ 102 3,930,862
BBB- 3,150 Mohegan Tribe Indians, Pub. Impvt. Priority Dist., 6.00%, 1/01/16 ......... 01/11 @ 101 3,330,401
------------
7,261,263
------------
DELAWARE--6.0%
NR 14,000(3) Charter Mac Equity Issuer Trust, Ser. A-3, 6.80%, 10/01/52 ................ 10/14 @ 100 14,811,860
------------
FLORIDA--7.6%
Baa1 1,585 Capital Trust Agy. Mult. Fam., American Opp., Ser. A, 5.75%, 6/01/23 ...... 06/13 @ 102 1,536,293
NR 4,750 Live Oak Cmnty. Dev. Dist., No. 1, Spl. Assmt., Ser. B, 5.30%, 5/01/08 .... No Opt. Call 4,787,002
NR 5,150 Stevens Plantation Cmnty. Dist., Spl. Assmt. Rev., Ser. B, 6.375%, 5/01/13 No Opt. Call 5,197,792
NR 1,030 Sumter Landing Cmnty. Dev. Dist., 6.25%, 5/01/13 .......................... No Opt. Call 1,046,233
NR 6,005 Village Cmnty. Dev., Assmt. Rev., Ser. B, 5.40%, 5/01/07 No Opt. Call 6,088,169
------------
18,655,489
------------
GEORGIA--2.3%
Gainesville & Hall Cnty. Hosp. Auth., Northeast Georgia Hlth. Sys. Inc. Proj.,
A 2,700 5.25%, 5/15/18 .......................................................... 05/11 @ 100 2,744,199
A 2,800 5.50%, 5/15/21 .......................................................... 05/11 @ 100 2,867,704
------------
5,611,903
------------
ILLINOIS--20.5%
AAA 5,000 Chicago O'Hare Intl. Arpt., Ser. A, 5.75%, 1/01/18, MBIA .................. 01/12 @ 100 5,468,800
Illinois Dev. Fin. Auth.,
A 12,500 Adventist Hlth. Sys. Sunbelt Obl., 5.50%, 11/15/20 ...................... 11/09 @ 101 12,699,125
A2 10,000 PCR, Ser. C, 5.95%, 8/15/26 ............................................. 12/06 @ 101 10,261,300
BBB 5,980 Illinois Edl. Facs. Auth., Student Hsg., Edl. Adv. Fund, Univ. Ctr. Proj.,
6.00%, 5/01/22 .......................................................... 05/12 @ 101 6,086,145
A2 5,000 Illinois Hlth. Facs. Auth., Elmhurst Mem. Hlth. Care, 5.50%, 1/01/22 ...... 01/13 @ 100 5,174,000
Illinois Sports Facs. Auth., Dedicated St. Tax Supported Rev., AMBAC,
AAA 1,885 Zero Coupon, 6/15/19 .................................................... 06/15 @ 101 1,467,755
AAA 1,985 Zero Coupon, 6/15/20 .................................................... 06/15 @ 101 1,540,658
AAA 2,090 Zero Coupon, 6/15/21 .................................................... 06/15 @ 101 1,609,614
Kane & Du Page Cntys. Sch. Dist., GO, Ser. B, FSA,
AAA 4,625 Zero Coupon, 1/01/18 .................................................... 01/12 @ 72.424 2,406,017
AAA 4,100 Zero Coupon, 1/01/19 .................................................... 01/12 @ 67.935 2,008,918
AAA 2,950 Zero Coupon, 1/01/21 .................................................... 01/12 @ 60.037 1,262,895
AAA 1,700 Zero Coupon, 1/01/22 .................................................... 01/12 @ 56.453 680,255
------------
50,665,482
------------
INDIANA--7.6%
AA 13,970 Indiana Hlth. Fac. Fin. Auth., Sisters of St. Francis, 5.75%, 11/01/21 .... 11/11 @ 101 14,765,871
Baa2 4,000 Petersburg, PCR, Pwr. & Lt. Conv., 5.75%, 8/01/21 ......................... 08/11 @ 102 3,950,560
------------
18,716,431
------------
LOUISIANA--1.7%
NR 4,000 Louisiana Pub. Facs. Auth., Dept. of Pub. Safety, 5.875%, 6/15/14 ......... 06/10 @ 100 4,108,920
------------
See Notes to Financial Statements.
25
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
MICHIGAN--8.9%
BBB $ 5,000 Dickinson Cnty. Econ. Dev. Corp., PCR, Champion Intl. Corp. Proj., 5.85%,
10/01/18 ................................................................ 01/04 @ 102 $ 5,109,800
A1 5,450 Michigan Hosp. Fin. Auth., Henry Ford Hlth. Sys., Ser. A, 6.00%, 11/15/19 . 11/09 @ 101 5,776,291
BB 9,000 Midland Cnty. Econ. Dev., Ser. A, 6.875%, 7/23/09 ......................... 07/07 @ 101 9,388,080
Pontiac Tax Increment Fin. Auth., ACA,
A 700 Dev. Area 2, 5.625%, 6/01/22 ............................................ 06/12 @ 101 741,832
A 1,000 Dev. Area 3, 5.375%, 6/01/17 ............................................ 06/12 @ 101 1,055,760
------------
22,071,763
------------
MISSISSIPPI--4.2%
BBB 9,000 Lowndes Cnty. Sld. Wst. Disp., PCR, Weyerhaeuser Co. Proj., Ser. A,
6.80%, 4/01/22 .......................................................... No Opt. Call 10,472,850
------------
NEVADA--2.5%
NR 1,100 Las Vegas Spec. Imp. Dist. No. 809, Summerlin Area, 5.35%, 6/01/17 ........ 06/04 @ 103 1,073,886
BBB+ 5,000 Nevada Dept. of Bus. & Ind., Republic Svc. Inc. Proj., 5.625%, 12/01/26 ... No Opt. Call 5,200,800
------------
6,274,686
------------
NEW HAMPSHIRE--4.0%
AAA 7,000 New Hampshire Bus. Fin. Auth., PCR, Pub. Svc. Co. Proj., Ser. C,
5.45%, 5/01/21, MBIA .................................................... 05/12 @ 101 7,690,830
A+ 2,025 New Hampshire Hlth. & Ed. Facs. Auth., Exeter Hosp. Proj., 6.00%, 10/01/24 10/11 @ 101 2,131,495
------------
9,822,325
------------
NEW JERSEY--13.0%
New Jersey Econ. Dev. Auth.,
B 4,065 Continental Airlines Inc. Proj., 7.00%, 11/15/30 ........................ 11/10 @ 101 3,737,605
B 6,750 Continental Airlines Inc. Proj., 7.20%, 11/15/30 ........................ 11/10 @ 101 6,358,770
Baa3 8,410 Kapkowski Road Landfill Proj., 5.50%, 4/01/16 ........................... No Opt. Call 8,614,531
BBB 15,000 Tobacco Settlement Fin. Corp., 6.00%, 6/01/37 ............................. 06/12 @ 100 13,404,450
------------
32,115,356
------------
NEW YORK--1.1%
BBB 2,750 New York Cntys. Tobacco Trust III, Tobacco Settlement Rev., 5.00%, 6/01/27 No Opt. Call 2,746,508
------------
NORTH CAROLINA--1.7%
A3 4,000 Wake Cnty. Ind. Facs., PCR, Carolina Pwr. & Lt. Co. Proj., 5.375%, 2/01/17 02/12 @ 101 4,183,200
------------
OHIO--2.2%
Baa1 5,000 Ohio, PCR, Gen. Motors Corp. Proj., 5.625%, 3/01/15 ....................... No Opt. Call 5,322,350
------------
PENNSYLVANIA--6.7%
Philadelphia Auth. for Ind. Dev., Ser. B, FSA,
AAA 5,000 5.50%, 10/01/18 ......................................................... 10/11 @ 101 5,556,800
AAA 5,000 5.50%, 10/01/19 ......................................................... 10/11 @ 101 5,521,500
West Cornwall Twnshp., Mun. Auth. Coll., Elizabethtown Coll. Proj.,
BBB+ 2,500 5.90%, 12/15/18 ......................................................... 12/11 @ 100 2,712,700
BBB+ 2,650 6.00%, 12/15/22 ......................................................... 12/11 @ 100 2,847,293
------------
16,638,293
------------
SOUTH CAROLINA--3.5%
NR 3,500 Lancaster Cnty., Assmnt. Rev., Edgewater Imp. Dist., Ser. B, 6.125%, 11/01/14 No Opt. Call
3,542,035
BBB 5,000 South Carolina Jobs Econ. Dev. Auth., Hosp. Fac. Rev., Palmetto Hlth.
Alliance, Ser. A, 6.125%, 8/01/23 ....................................... 08/13 @ 100 5,112,700
------------
8,654,735
------------
SOUTH DAKOTA--5.8%
BBB 15,000 Edl. Enhancement Fdg. Corp., Tobacco Settlement, Ser. B, 6.50%, 6/01/32 ... 06/12 @ 101 14,272,800
------------
TENNESSEE--2.2%
AAA 12,000 Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd., Hosp. Facs. Rev., Ser. A, Zero
Coupon, 1/01/19, FSA .................................................... 01/13 @ 71.667 5,464,320
------------
TEXAS--23.4%
BBB 2,000 Alliance Arpt. Auth. Inc., Fed. Express Corp. Proj., 6.375%, 4/01/21 ...... 04/06 @ 102 2,133,980
Birdville Indpt. Sch. Dist., GO,
AAA 1,615 Zero Coupon, 2/15/18 .................................................... No Opt. Call 838,847
AAA 1,815 Zero Coupon, 2/15/19 .................................................... No Opt. Call 888,098
AAA 2,625 Zero Coupon, 2/15/20 .................................................... No Opt. Call 1,207,867
AAA 2,500 Zero Coupon, 2/15/21 .................................................... No Opt. Call 1,079,875
BBB 12,625 Brazos River Auth., PCR, TXU Elec. Co. Proj., Ser. C, 5.75%, 5/01/36 ...... No Opt. Call 13,199,059
NR 4,305 Dallas Cnty. Flood Control, 6.75%, 4/01/16 ................................ 04/13 @ 100 4,386,106
Dallas Ft. Worth Intl. Arpt. Fac. Impvt., Ser. A, FGIC,
AAA 5,000 5.875%, 11/01/17 ........................................................ 11/11 @ 100 5,585,600
AAA 5,000 5.875%, 11/01/18 ........................................................ 11/11 @ 100 5,564,350
See Notes to Financial Statements.
26
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
TEXAS (CONTINUED)
Texas Affordable Hsg. Corp., Mult. Fam. Hsg. Rev., Arborstone/Baybrook
Oaks, Ser. A,
Baa1 $12,695 5.55%, 11/01/18 ......................................................... 11/11 @ 102 $ 12,915,005
Baa1 9,800 5.75%, 11/01/22 ......................................................... 11/11 @ 102 9,960,818
------------
57,759,605
------------
WASHINGTON--4.8%
Energy Northwest Wind Proj.,
A- 5,000 Ser. A, 6.00%, 7/01/23 .................................................. 01/07 @ 103 5,277,050
A- 6,175 Ser. B, 5.875%, 7/01/20 ................................................. 01/07 @ 103 6,539,757
------------
11,816,807
------------
WISCONSIN--12.0%
BBB 14,500 Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32 .......................... 06/12 @ 100 13,623,620
Wisconsin Hlth. & Edl. Facs. Auth.,
A+ 5,000 Froedert & Cmnty. Hlth. Oblig., 5.375%, 10/01/21 ........................ 10/11 @ 101 5,097,200
A 10,000 Wheaton Franciscan Svcs., 6.25%, 8/15/22 ................................ 02/12 @ 101 10,866,300
------------
29,587,120
------------
TOTAL LONG-TERM INVESTMENTS (COST $365,093,288) 378,256,059
------------
SHORT-TERM INVESTMENTS--1.0%
CALIFORNIA--0.8%
VMIG1 2,000(4) Long Beach Unified Sch. Dist., COP, Cap. Impvt. Refdg. Proj., 1.25%,
1/02/04, AMBAC, FRWD .................................................... N/A 2,000,000
------------
----------
SHARES
(000)
----------
MONEY MARKET FUND--0.2%
550 AIM Tax Free Investment Co. Cash Reserve Portfolio ........................ N/A 550,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $2,550,000) ............................ 2,550,000
------------
TOTAL INVESTMENTS--154.1% (COST $367,643,288) ............................. $380,805,916
Other assets in excess of liabilities--1.6% ............................... 3,851,872
Preferred shares at redemption value, including dividends payable--(55.7)% (137,625,996)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $247,031,792
============
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A
under that Act, to qualified institutional buyers. As of December 31,
2003, the Trust held 7.6% of its net assets, with a current market value
of $18,742,722, in securities restricted as to resale.
(4) For purposes of amortized cost valuation, the maturity date of this
instrument is considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
ACA -- American Capital Access
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FRWD -- Floating Rate Weekly Demand
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
--------------------------------------------------------------------------------
See Notes to Financial Statements.
27
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
BLACKROCK MUNICIPAL 2020 TERM TRUST (BKK)
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
LONG-TERM INVESTMENTS--136.3%
CALIFORNIA--21.2%
AAA $ 5,000 California Hlth. Fac. Fin. Auth., Cottage Hlth. Sys., Ser. B, 5.00%,
11/01/23, MBIA .......................................................... 11/13 @ 100 $ 5,146,050
California St, GO,
Baa1 12,000 5.00%, 11/01/22 ......................................................... 11/13 @ 100 11,955,120
Baa1 12,500 5.125%, 11/01/23 ........................................................ 11/13 @ 100 12,536,125
Golden St. Tobacco Sec. Corp.,
BBB 3,000 Ser. A-1, 6.625%, 6/01/40 ............................................... 06/13 @ 100 2,905,950
BBB 975 Ser. A-3, 7.875%, 6/01/42 ............................................... 06/13 @ 100 1,049,129
BBB 1,500 Ser. A-5, 7.875%, 6/01/42 ............................................... 06/13 @ 100 1,614,045
BBB 20,000 Ser. B, 5.375%, 6/01/28 ................................................. 06/10 @ 100 19,727,600
BBB 2,000 Tobacco Settlement Rev., Ser. A-1, 6.75%, 6/01/39 ....................... 06/13 @ 100 1,970,820
B- 3,035 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc.,
Ser. C, 7.50%, 12/01/24 ................................................. 12/12 @ 102 3,006,228
AAA 6,865 Riverside Cnty., Riverside Cnty. Hosp. Proj., Zero Coupon, 6/01/25, MBIA .. No Opt. Call 2,185,473
------------
62,096,540
------------
COLORADO--0.6%
AAA 4,500 E-470 Pub. Hwy. Auth., Cap. Apprec., Ser. B, Zero Coupon, 9/01/22, MBIA ... No Opt. Call 1,750,140
------------
CONNECTICUT--0.9%
BBB- 2,500 Mohegan Tribe Indians Gaming Auth., Pub. Impvt., 5.125%, 1/01/23 .......... 01/14 @ 100 2,492,350
------------
DISTRICT OF COLUMBIA--3.5%
Dist. of Columbia, Friendship Pub. Charter Sch. Inc., ACA
A 3,320 5.00%, 6/01/23 .......................................................... 06/14 @ 100 3,321,029
A 2,680 5.75%, 6/01/18 .......................................................... 06/14 @ 100 2,929,052
BBB 4,215 Tobacco Settlement Fin. Corp., 6.50%, 5/15/33 ............................. No Opt. Call 4,049,435
------------
10,299,516
------------
FLORIDA--8.7%
NR 4,445 Grand Hampton Cmnty. Dev. District, Cap. Impvt., 6.10%, 5/01/24 ........... 05/13 @ 101 4,467,269
NR 3,000 Sterling Hill Cmnty. Dev. Dist., Ser. B, 5.50%, 11/01/10 .................. No Opt. Call 3,035,640
NR 8,000 Stevens Plantation Cmnty. Dist., Spl. Assmt. Rev., Ser. B, 6.375%, 5/01/13 No Opt. Call 8,074,240
NR 4,000 Village Cmnty. Dev. Dist. No. 5, Spl. Assmt. Rev., Ser. A, 6.00%, 5/01/22 . 05/13 @ 101 4,035,600
NR 6,000 Westchester Comnty. Dev. Dist No. 1, Spl. Assmt, 6.00%, 5/01/23 ........... 05/13 @ 101 5,988,960
------------
25,601,709
------------
GEORGIA--3.9%
BBB 2,350 Richmond Cnty. Dev. Auth., Env. Impvt., 5.75%, 11/01/27 ................... 11/13 @ 100 2,382,689
AA 8,620 Savannah Hosp. Auth., St. Joseph/Chandler Hlth. Sys., 5.25%, 7/01/23, RAA . 01/14 @ 100 8,969,627
------------
11,352,316
------------
ILLINOIS--8.3%
AAA 14,000 Illinois Dev. Fin. Auth., Gas Supply Rev., Ser. E, 4.875%, 11/01/38, AMBAC 11/13 @ 101 14,211,260
AA+ 4,800 Illinois Edl. Fac. Auth., Northwestern Univ., 5.00%, 12/01/21 ............. 12/13 @ 100 5,011,200
AAA 13,455 Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place
Expansion Proj., Ser. A, Zero Coupon, 6/15/22, MBIA ..................... No Opt. Call 5,213,274
------------
24,435,734
------------
KANSAS--1.0%
AAA 6,440 Wyandotte Cnty., Unified Gov't. Spl. Oblig., Intl. Speedway, Zero
Coupon, 12/01/20, MBIA .................................................. No Opt. Call 2,850,666
------------
KENTUCKY--3.5%
B 6,635 Kenton Cnty. Arpt. Brd., Delta Airlines, 7.125%, 2/01/21 .................. 02/04 @ 101 6,368,207
BBB 3,750 Maysville Solid Wst. Disp., Inland Container Corp. Proj., 6.90%, 9/01/22 .. 09/13 @ 102 3,946,200
------------
10,314,407
------------
LOUISIANA--0.7%
BBB 2,000 De Soto Parish, Env. Impvt. Rev., Ser. A, 5.85%, 11/01/27 ................. 11/13 @ 100 2,027,660
------------
MARYLAND--1.1%
NR 3,000 Frederick Cnty. Spec. Oblig., Urbana Cmnty. Dev. Auth., 6.625%, 7/01/25 ... 07/07 @ 102 3,133,260
------------
MICHIGAN--1.8%
BB 5,000 Midland Cnty. Econ. Dev., Ser. A, 6.875%, 7/23/09 ......................... 07/07 @ 101 5,215,600
------------
See Notes to Financial Statements.
28
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
MISSISSIPPI--1.0%
BBB $ 3,000 Warren Cnty. Env. Impvt, Intl. Paper, Ser. A, 5.85%, 11/01/27 ............. 11/13 @ 100 $ 3,041,490
------------
NEW HAMPSHIRE--1.7%
BBB+ 5,000 New Hampshire Hlth., Elliot Hosp., Ser. B, 5.60%, 10/01/22 ................ 10/13 @ 100 4,969,800
------------
NEW JERSEY--14.9%
New Jersey Econ. Dev. Auth.,
B 10,000 Continental Airlines Inc. Proj., 7.00%, 11/15/30 ........................ 11/10 @ 101 9,194,600
B 1,500 Continental Airlines Inc. Proj., 9.00%, 6/01/33 ......................... 06/13 @ 101 1,606,185
Baa3 7,500 Kapkowski Road Landfill Proj., 6.50%, 4/01/31 ........................... No Opt. Call 8,380,050
Baa1 4,000 New Jersey Hlth. Care Fac. Fin. Auth., Cap. Hlth. Sys. Oblig. Grp.,
Ser. A, 5.75%, 7/01/23 .................................................. 07/13 @ 100 4,134,880
BBB 20,325 Tobacco Settlement Fin. Corp., 7.00%, 6/01/41 ............................. 06/13 @ 100 20,506,502
------------
43,822,217
------------
NEW YORK--18.5%
Battery Park City Auth., Ser. A,
AAA 8,000 5.00%, 11/01/23 ......................................................... 11/13 @ 100 8,349,440
AAA 5,000 5.00%, 11/01/24 ......................................................... 11/13 @ 100 5,190,100
BBB 3,750 New York Cntys. Tobacco Trust III, Tobacco Settlement Rev., 5.00%, 6/01/27 No Opt. Calll 3,745,238
Tobacco Settlement Fin. Corp.,
AAA 20,000 Ser. A-1, 5.25%, 6/01/22, AMBAC ......................................... 06/13 @ 100 21,161,000
AA- 4,000 Ser. C-1, 5.50%, 6/01/20 ................................................ 06/13 @ 100 4,273,400
AA- 7,000 Ser. C-1, 5.50%, 6/01/21 ................................................ 06/13 @ 100 7,456,400
AA- 4,000 Ser. C-1, 5.50%, 6/01/22 ................................................ 06/13 @ 100 4,254,520
------------
54,430,098
------------
OHIO--4.8%
Cuyahoga Cnty., Cleveland Clinic Hlth. Sys.,
A1 3,000 6.00%, 1/01/19 .......................................................... 07/13 @ 100 3,295,440
A1 10,000 6.00%, 1/01/20 .......................................................... 07/13 @ 100 10,936,700
------------
14,232,140
------------
PENNSYLVANIA--5.9%
A- 10,000 Lancaster Cnty. Hosp. Auth., Gen. Hosp. Proj., 5.75%, 3/15/20 ............. 09/13 @ 100 10,544,700
BBB+ 6,680 Pennsylvania St. Higher Edl. Fac., La Salle Univ., 5.50%, 5/01/26 ......... 05/13 @ 100 6,812,665
------------
17,357,365
------------
RHODE ISLAND--0.7%
BBB 2,000 St. Hlth. & Edl. Bldg. Corp., Hosp. Fin., Ser. A, 5.875%, 9/15/23 ......... 09/08 @ 100 1,984,420
------------
TEXAS--8.2%
BBB 1,100 Brazos River Auth., PCR, TXU Energy Co. LLC Proj., Ser. A, 6.75%, 4/01/38 . No Opt. Call 1,214,136
BBB 3,500 Port Corpus Christi Indl. Dev. Corp., Valero Convertible, Ser. C, 5.40%,
4/01/18 ................................................................. 04/08 @ 102 3,546,445
Baa1 5,000 Texas Affordable Hsg. Corp., Mult. Fam. Hsg. Rev., Arborstone/Baybrook Oaks,
Ser. A, 5.85%, 11/01/31 ................................................. 11/11 @ 102 5,012,100
Texas St. Tpke. Auth., Central Texas Tpke. Sys., Ser. A, AMBAC,
AAA 7,990 Zero Coupon, 8/15/21 .................................................... No Opt. Call 3,338,782
AAA 18,450 Zero Coupon, 8/15/24 .................................................... No Opt. Call 6,267,465
Weatherford Indpt. Sch. Dist.,
AAA 6,945 Zero Coupon, 2/15/23 .................................................... 02/11 @ 50.236 2,460,961
AAA 6,945 Zero Coupon, 2/15/24 .................................................... 02/11 @ 47.435 2,311,990
------------
24,151,879
------------
VIRGINIA--4.3%
NR 5,000 Celebrate North Cmnty. Dev. Auth., Spl. Assmt. Rev., Ser. B, 6.60%, 3/01/25 03/14 @ 102 5,016,000
BBB- 7,500 Mecklenburg Cnty Ind. Dev. Auth., Exempt FAC-UAE LP Proj, 6.50%, 10/15/17 . 10/12 @ 100 7,641,000
------------
12,657,000
------------
WASHINGTON--2.3%
Washington St.,
AAA 10,000 Ser. S-5, Zero Coupon, 1/01/19, FGIC .................................... No Opt. Call 4,885,500
AAA 4,630 Motor Vehicle, Ser. F, Zero Coupon, 12/01/21, MBIA ...................... No Opt. Call 1,903,393
------------
6,788,893
------------
WISCONSIN--2.2%
St. Hlth. & Ed. Fac. Auth., Wheaton Franciscan Svcs.,
A 2,880 5.50%, 8/15/17 .......................................................... 08/13 @ 100 3,046,867
A 3,190 5.50%, 8/15/18 .......................................................... 08/13 @ 100 3,359,676
------------
6,406,543
------------
See Notes to Financial Statements.
29
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
U. S. VIRGIN ISLANDS--4.5%
AA $12,980 Public Fin. Auth., 5.00%, 10/01/24, RAA ................................... 10/14 @ 100 $ 13,233,240
------------
PUERTO RICO--12.1%
Puerto Rico Comnwlth., Pub. Impvt., Ser. A,
A- 5,000 5.25%, 7/01/22 .......................................................... 07/13 @ 100 5,280,700
A- 11,000 5.25%, 7/01/23 .......................................................... 07/13 @ 100 11,565,400
A- 7,000 5.25%, 7/01/24 .......................................................... 07/13 @ 100 7,321,370
A- 10,900 Puerto Rico Elec. Pwr. Auth., Ser. NN, 5.125%, 7/01/24 .................... 07/13 @ 100 11,296,760
------------
35,464,230
------------
TOTAL LONG-TERM INVESTMENTS (COST $392,885,423) ........................... 400,109,213
------------
SHORT-TERM INVESTMENTS--23.4%
CALIFORNIA--6.6%
A1+ 13,000(3) MET. WTR. DIST., SO. CALIFORNIA WTR. WKS., SER. C-2, 1.20%, 1/02/04,FRDD .. N/A 13,000,000
A1+ 6,200(3) Orange Cnty. Sanitation Dist., COP, Ser. B, 1.27%, 1/02/04, FRDD .......... N/A 6,200,000
------------
19,200,000
------------
FLORIDA--0.8%
A1+ 2,460(3) Orange Cnty. Sch. Brd., COP, Ser. B, 1.30%, 1/02/04, MBIA, FRDD ........... N/A 2,460,000
------------
NEW JERSEY--1.3%
A1+ 3,750(3) New Jersey St. Edl. Facs. Auth., Princeton Univ., Ser. B, 1.27%, 1/02/04, FRDD N/A 3,750,000
------------
NEW YORK--5.2%
New York City Mun. Wtr. Fin. Auth.,
A1+ 8,860(3) Ser. F, 1.17%, 1/02/04, FRDD ............................................ N/A 8,859,946
A1+ 6,500(3) Wtr. & Swr. Sys. Rev., Ser. C, 1.17%, 1/02/04, FRDD ..................... N/A 6,500,000
------------
15,359,946
------------
PENNSYLVANIA--3.9%
A1+ 11,540(3) Delaware Cnty. Ind. Dev. Auth., Arpt. Facs., 1.14%, 1/02/04, FRDD ......... N/A 11,540,000
------------
SOUTH CAROLINA--4.1%
A1+ 12,000(3) Piedmont Mun. Pwr., 1.20%, 1/07/04, MBIA, FRWD ............................ N/A 12,000,000
------------
TEXAS--1.5%
A1+ 4,500(3) Brownsville Util. Sys., Ser. A, 1.10%, 1/07/04, MBIA, FRWD ................ N/A 4,500,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $68,809,946) ........................... 68,809,946
------------
TOTAL INVESTMENTS--159.7% (COST $461,695,369) ............................. $468,919,159
Other assets in excess of liabilities--0.8% ............................... 2,301,870
Preferred shares at redemption value, including dividends payable--(60.5)% (177,623,122)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $293,597,907
============
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) For purposes of amortized cost valuation, the maturity date of this
instrument is considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
ACA -- American Capital Access
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FRDD -- Floating Rate Daily Demand
FRWD -- Floating Rate Weekly Demand
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
RAA -- Fadian Asset Assurance
--------------------------------------------------------------------------------
See Notes to Financial Statements.
30
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
BLACKROCK MUNICIPAL TARGET TERM TRUST (BMN)
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
LONG-TERM INVESTMENTS--151.0%
ALABAMA--3.3%
AAA $ 9,450 Alabama Fed. Hwy. Fin. Auth., Grant Antic., Ser. A, 4.125%, 3/01/07, MBIA . No Opt. Call $ 10,081,355
AAA 5,000 Jefferson Cnty., Capital Imprvt., GO, Ser. A, 5.00%, 4/01/07, MBIA ........ No Opt. Call 5,462,700
AAA 1,000 Mobile, GO, 4.00%, 2/15/07, AMBAC ......................................... No Opt. Call 1,062,140
------------
16,606,195
------------
ALASKA--4.2%
Anchorage, GO,
AAA 1,750 Ser. A, 4.125%, 6/01/06, FGIC ........................................... No Opt. Call 1,850,327
AAA 2,245 Ser. A, 4.25%, 6/01/07, FGIC ............................................ No Opt. Call 2,408,032
AAA 1,335 Ser. B, 3.20%, 7/01/07, MBIA ............................................ No Opt. Call 1,382,740
AAA 5,000 Ser. B, 3.25%, 7/01/07, MBIA ............................................ No Opt. Call 5,187,200
AAA 1,000 Ser. B, 4.25%, 7/01/07, FGIC ............................................ No Opt. Call 1,070,860
AAA 9,000 No. Slope Boro., Ser. B, Zero Coupon, 6/30/04, FSA ........................ No Opt. Call 8,948,520
------------
20,847,679
------------
ARIZONA--2.4%
AAA 5,000 Arizona Trans. Brd., Grant Antic., 4.125%, 1/01/07, MBIA .................. No Opt. Call 5,325,950
AAA 6,255 Maricopa Cnty. Pub. Fin. Corp., Lease Rev., 4.25%, 7/01/07, AMBAC ......... No Opt. Call 6,711,302
------------
12,037,252
------------
ARKANSAS--1.1%
AAA 5,000 Univ. of Arkansas, Athl. Fac. Rev., Razorback Stadium Proj., 3.55%,
12/01/21, FSA ........................................................... 12/06 @ 100 5,244,900
------------
CALIFORNIA--7.6%
AAA 6,000 California, GO, 6.30%, 9/01/06, AMBAC ..................................... No Opt. Call 6,702,840
AAA 30,000 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 3.50%, 5/01/07, MBIA No Opt. Call 31,388,400
------------
38,091,240
------------
COLORADO--8.7%
AAA 17,150 Denver City & Cnty., GO, Ser. B, 5.625%, 8/01/07, MBIA .................... No Opt. Call 19,224,464
AAA 1,015 El Paso Cnty., COP, Detention Fac. Proj., Ser. B, 2.50%, 12/01/06, AMBAC .. No Opt. Call 1,036,152
AAA 9,700 Met. Football Stad. Dist., Sales Tax Rev., Ser. A, Zero Coupon,
1/01/07, MBIA ........................................................... No Opt. Call 9,011,688
Regl. Transp. Dist., COP, Transp. Vehicle Proj., Ser. A, MBIA,
AAA 6,215 5.00%, 6/01/06 .......................................................... No Opt. Call 6,701,883
AAA 5,470 5.00%, 6/01/07 .......................................................... No Opt. Call 6,009,014
AAA 1,100 Thornton, COP, 2.50%, 12/01/06, AMBAC ..................................... No Opt. Call 1,122,924
------------
43,106,125
------------
DELAWARE--0.2%
AAA 1,050 Delaware River & Bay Auth., 2.50%, 1/01/07, MBIA .......................... No Opt. Call 1,068,207
------------
DISTRICT OF COLUMBIA--1.7%
AAA 8,250 Dist. of Columbia, GO, Ser. B, 5.90%, 6/01/06, MBIA ....................... 06/04 @ 102 8,576,288
------------
FLORIDA--3.4%
Delray Beach, FSA,
AAA 1,255 Decade of Excellence Prog., GO, 3.50%, 2/01/07 .......................... No Opt. Call 1,313,056
AAA 1,740 Utils. Tax, 3.50%, 6/01/07 .............................................. No Opt. Call 1,831,890
AAA 1,645 Florida Mun. Loan Council, Ser. A, 4.00%, 5/01/07, MBIA ................... No Opt. Call 1,753,389
AAA 6,185 Jacksonville Hosp., Univ. Med. Ctr. Inc. Proj., 6.50%, 2/01/07, CONNIE LEE 02/04 @ 100 6,208,936
AAA 1,765 Orange Cnty. Tourist Dev., Tax Rev., Ser. A, 6.375%, 10/01/06, AMBAC ...... ETM 1,800,229
AAA 2,000 Sarasota Wtr. & Swr. Sys., 4.25%, 10/01/06, MBIA .......................... No Opt. Call 2,131,300
AAA 1,865 Tampa Wtr. & Swr., 5.50%, 10/01/06, FSA ................................... No Opt. Call 2,049,430
------------
17,088,230
------------
GEORGIA--1.4%
AAA 1,990 Burke Cnty. Dev. Auth., PCR, Oglethorpe Pwr. Corp., Ser. B, 6.45%,
1/01/05, MBIA ........................................................... 01/04 @ 101 1,990,000
AAA 4,805 Columbus Wtr. & Swr., 4.00%, 5/01/07, FSA ................................. No Opt. Call 5,113,625
------------
7,103,625
------------
See Notes to Financial Statements.
31
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
HAWAII--4.7%
Hawaii, GO,
AAA $ 5,675 Ser. CP, 5.50%, 10/01/06, FGIC .......................................... No Opt. Call $ 6,236,201
AAA 9,000 Ser. CS, 5.25%, 4/01/06, MBIA ........................................... No Opt. Call 9,702,000
AAA 1,265 Ser. CW, 3.60%, 8/01/06, FGIC ........................................... No Opt. Call 1,322,557
Honolulu City & Cnty., GO, Ser. A,
AAA 2,275 4.00%, 9/01/06, FSA ..................................................... No Opt. Call 2,405,267
AAA 3,500 5.80%, 1/01/07, FGIC .................................................... No Opt. Call 3,894,415
------------
23,560,440
------------
ILLINOIS--19.4%
Champaign Cnty. Cmnty. Unit Sch. Dist., No. 116, Ser. C, FGIC,
AAA 1,065 Zero Coupon, 1/01/07 .................................................... No Opt. Call 987,968
AAA 2,760 Zero Coupon, 1/01/08 .................................................... No Opt. Call 2,466,557
AAA 12,000 Chicago, GO, Ser. A, 4.25%, 1/01/07, MBIA ................................. No Opt. Call 12,800,400
AAA 2,665 Chicago Park Dist., Parking Rev., GO, Ser. A, 3.00%, 1/01/07, FGIC ........ No Opt. Call 2,746,576
AAA 1,565 Chicago Wstwtr. Trans., Ser. A, 3.50%, 1/01/07, AMBAC ..................... No Opt. Call 1,635,503
AAA 7,220 Cook Cnty. Cmnty. Sch. Dist., Zero Coupon, 12/01/07, FGIC ................. No Opt. Call 6,507,530
Du Page Cnty., Trans. Rev., FSA,
AAA 4,815 4.50%, 1/01/07 .......................................................... No Opt. Call 5,170,925
AAA 5,390 4.50%, 1/01/09 .......................................................... No Opt. Call 5,848,743
Illinois, GO, Ser. I,
AAA 15,080 3.25%, 11/01/06, FGIC ................................................... No Opt. Call 15,678,224
AAA 4,000 4.00%, 4/01/07, FSA ..................................................... No Opt. Call 4,246,800
AAA 12,625 4.25%, 4/01/07, MBIA .................................................... No Opt. Call 13,502,311
AAA 10,915 Illinois Hlth. Facs. Auth., Sisters Svcs. Inc., Ser. C, 6.625%, 6/01/06,
MBIA .................................................................... 01/04 @ 101 11,046,526
Illinois Sales Tax, Ser. O,
AAA 5,900 Zero Coupon, 6/15/07 .................................................... No Opt. Call 5,398,087
AAA 5,635 Zero Coupon, 6/15/08 .................................................... No Opt. Call 4,951,531
AAA 1,000 Kane Cnty., GO, 3.75%, 1/01/07, FGIC ...................................... No Opt. Call 1,052,260
AAA 2,000 Will Cnty. Cmnty. Sch. Dist., 7.05%, 12/01/08, AMBAC ...................... No Opt. Call 2,415,900
------------
96,455,841
------------
INDIANA--2.8%
AAA 5,000 Indiana Bond Bank, Sch. Fund, 4.00%, 2/01/07, AMBAC ....................... No Opt. Call 5,287,050
AAA 9,000 Indiana Univ., Student Fee Rev., Zero Coupon, 8/01/06, AMBAC .............. No Opt. Call 8,495,010
------------
13,782,060
------------
IOWA--0.8%
AAA 3,940 West Des Moines Cmnty. Sch. Dist., 4.00%, 6/01/07, AMBAC .................. No Opt. Call 4,196,573
------------
KENTUCKY--3.9%
AAA 12,610 Kentucky Econ. Dev. Fin. Sys., Norton Hlth. Care Inc., Ser. B,
Zero Coupon, 10/01/07, MBIA ............................................. No Opt. Call 11,420,372
Kentucky Ppty. & Bldgs. Auth., Proj. No. 69, FSA,
AAA 2,035 Ser. B, 4.00%, 8/01/06 .................................................. No Opt. Call 2,149,001
AAA 5,560 Ser. C, 4.00%, 8/01/06 .................................................. No Opt. Call 5,871,471
------------
19,440,844
------------
LOUISIANA--4.3%
AAA 3,555 Louisiana Off. Facs. Corp. Lease, Cap. Complex Prg., 4.00%,
5/01/07, AMBAC .......................................................... No Opt. Call 3,777,472
AAA 4,565 Louisiana Pub. Facs. Auth., Ochsner Clinic Fndtn. Proj., Ser. A,
3.00%, 5/15/07, MBIA .................................................... No Opt. Call 4,691,496
AAA 7,630(3) MuniMae Trust, Ser. 7, Cl. A, 4.40%, 12/16/08 ............................. N/A 7,803,430
AAA 5,250 New Orleans, GO, Zero Coupon, 9/01/06, AMBAC .............................. No Opt. Call 4,947,442
------------
21,219,840
------------
MASSACHUSETTS--2.6%
AAA 11,760 Massachusetts, GO, Ser. A, 5.25%, 1/01/09, FSA ............................ No Opt. Call 13,152,972
------------
MICHIGAN--3.7%
AAA 1,270 Detroit, GO, 3.00%, 4/01/07, MBIA ......................................... No Opt. Call 1,309,980
AAA 2,100 Grand Rapids Wtr. Sply., 4.00%, 1/01/07, FGIC ............................. No Opt. Call 2,224,908
Michigan Mun. Bd. Auth.,
AAA 5,000 Zero Coupon, 5/15/06, MBIA .............................................. No Opt. Call 4,771,850
AAA 1,165(3) Ser. G, 6.35%, 11/01/04, AMBAC .......................................... N/A 1,238,325
AAA 675 Ser. G, 6.35%, 11/01/06, AMBAC .......................................... 11/04 @ 102 715,574
See Notes to Financial Statements.
32
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
MICHIGAN (CONTINUED)
Michigan Pub. Pwr. Agcy., Belle River Proj., Ser. A, MBIA,
AAA $ 1,000 2.70%, 1/01/07 .......................................................... No Opt. Call $ 1,021,940
AAA 2,000 5.00%, 1/01/07 .......................................................... No Opt. Call 2,176,720
AAA 4,850 Michigan Trunk Line, Ser. A, 4.00%, 11/01/06, FSA ......................... No Opt. Call 5,144,686
------------
18,603,983
------------
MINNESOTA--2.1%
AAA 5,075 Met. Council Minneapolis-St. Paul, GO, 5.25%, 12/01/06 .................... No Opt. Call 5,572,502
Minneapolis Spec. Sch. Dist. No. 1, COP, FSA,
AAA 1,150 Ser. A, 3.00%, 2/01/07 .................................................. No Opt. Call 1,187,191
AAA 840 Ser. B, 3.25%, 2/01/07 .................................................. No Opt. Call 873,390
AAA 2,610 Minnesota Hsg. Fin. Auth., Ser. D, 5.35%, 8/01/06, MBIA ................... 02/05 @ 102 2,724,005
------------
10,357,088
------------
MISSISSIPPI--0.4%
AAA 1,935 Vicksburg, GO, 4.00%, 4/01/07, MBIA ....................................... No Opt. Call 2,053,132
------------
NEBRASKA--0.8%
AAA 3,850 Douglas Cnty. Sch. Dist. No. 17 Millard, GO, 3.20%, 11/15/06, FSA ......... No Opt. Call 4,001,652
------------
NEVADA--1.4%
AAA 2,975 Clark Cnty., Library Dist., GO, 4.00%, 2/01/07, FGIC ...................... No Opt. Call 3,156,743
AAA 2,005 Las Vegas, GO, Pub. Safety Bonds, 4.00%, 4/01/07, FSA ..................... No Opt. Call 2,130,653
Nevada Dept. of Bus. & Ind., Las Vegas Monorail Proj., AMBAC,
AAA 800 Zero Coupon, 1/01/07 .................................................... No Opt. Call 742,576
AAA 1,295 Zero Coupon, 1/01/08 .................................................... No Opt. Call 1,159,129
------------
7,189,101
------------
NEW JERSEY--3.7%
AAA 205 Elizabeth, GO, 6.60%, 8/01/06, MBIA ....................................... 01/04 @ 100 205,793
AAA 1,000 Monmouth Cnty. Impvt. Auth., Gov't. Loan, 2.34%, 12/01/06, FSA ............ No Opt. Call 1,015,480
AAA 8,565 New Jersey Hwy. Auth., Garden St. Pkwy., 5.00%, 1/01/07, FGIC ............. ETM 9,337,478
AAA 5,000 New Jersey Transp. Trust Fund Auth., Transp. Sys., Ser. A, 5.125%,
6/15/07, AMBAC .......................................................... 06/05 @ 102 5,342,650
AAA 1,065 No. Jersey Dist. Wtr. Sply., Wanaque So. Proj., 6.50%, 7/01/06, MBIA ...... ETM 1,136,206
AAA 1,250 Warren Cnty. Fin. Auth., PCR, 6.55%, 12/01/06, MBIA ....................... 06/04 @ 101 1,288,275
------------
18,325,882
------------
NEW MEXICO--1.2%
AAA 3,535 Gallup, PCR, Plains Elec. Generation, 6.50%, 8/15/07, MBIA ................ 01/04 @ 101 3,589,792
AAA 2,405 New Mexico Fin. Auth., Pub. Proj., Ser. A, 3.50%, 6/01/07, MBIA ........... No Opt. Call 2,456,974
------------
6,046,766
------------
NEW YORK--10.5%
AAA 1,040 Malone Ctrl. Sch. Dist., GO, Ser. B, 2.875%, 1/15/07, FGIC ................ No Opt. Call 1,069,047
AAA 2,800 Nassau Cnty., GO, Ser. Y, 5.00%, 3/01/06, FGIC ............................ No Opt. Call 2,996,280
New York City, GO,
AAA 13,000 Ser. A, 7.00%, 8/01/07, FSA ............................................. 08/06 @ 101.5 14,710,020
AAA 10,000 Ser. E, 6.125%, 8/01/06, MBIA ........................................... No Opt. Call 11,049,200
AAA 2,000 New York City Hlth. & Hosp. Corp., Hlth. Sys. Svcs., Ser. A, 3.20%,
2/15/07, FSA ............................................................ No Opt. Call 2,068,280
AAA 2,460 New York Dorm. Auth., Hosp. Rev., 3.00%, 2/15/07, XLCA .................... No Opt. Call 2,529,249
New York Env. Fac. Corp., PCR,
AAA 3,690(3) Ser. D, 6.40%, 11/15/04 ................................................. N/A 3,931,326
AAA 810 Ser. D, 6.40%, 5/15/06 .................................................. 11/04 @ 102 860,568
AAA 9,220 New York Hsg. Fin. Agcy., Hsg. Proj. Mtge., Ser. A, 5.50%, 11/01/06, FSA .. 05/06 @ 102 9,861,528
Rochester, Ser. B, MBIA,
AAA 1,805 4.00%, 2/15/07 .......................................................... ETM 1,922,794
AAA 1,465 4.00%, 2/15/07 .......................................................... No Opt. Call 1,554,673
------------
52,552,965
------------
NORTH CAROLINA--1.3%
AAA 6,000 No. Carolina Eastn. Mun. Pwr. Agcy., Sys. Rev., Ser. B, 6.00%,
1/01/06, CAPMAC ......................................................... No Opt. Call 6,516,540
------------
OHIO--5.3%
AAA 1,000 Amer. Muni. Pwr. Inc., Omega JU2 Proj., 4.00%, 1/01/07, AMBAC ............. No Opt. Call 1,060,980
AAA 2,170 Cincinnati City Sch. Dist., GO, Sch. Impvt., 4.00%, 12/01/06, MBIA ........ No Opt. Call 2,308,837
AAA 1,285 Milford Sch. Dist., GO, Sch. Impvt., 3.25%, 12/01/06, FSA ................. No Opt. Call 1,340,049
See Notes to Financial Statements.
33
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
OHIO (CONTINUED)
Ohio Bldg. Auth., Ser. A, FSA,
AAA $ 4,585 Admin. Bldg. Fd., 5.00%, 10/01/06 ....................................... No Opt. Call $ 4,983,849
AAA 10,000 Correction Facs., 5.00%, 10/01/06 ....................................... No Opt. Call 10,869,900
AAA 5,400 Ohio Wtr. Dev. Auth., Pure Wtr., 3.00%, 6/01/07, AMBAC .................... No Opt. Call 5,587,542
------------
26,151,157
------------
OKLAHOMA--1.5%
AAA 6,660 Oklahoma Trans. Auth., Tpke. Sys. Rev., Ser. B, 5.00%, 1/01/07, AMBAC ..... No Opt. Call 7,258,601
------------
OREGON--1.3%
AAA 2,020 Oregon Dept. of Admin. Svcs., COP, Ser. A, 5.00%, 11/01/06, FSA ........... No Opt. Call 2,180,651
AAA 2,065 Portland Swr. Sys., Ser. A, 5.00%, 6/01/07, FSA ........................... No Opt. Call 2,272,057
AAA 2,000 Washington & Clackamas Cntys. Sch. Dist., GO, 3.125%, 6/15/07, MBIA ....... No Opt. Call 2,078,520
------------
6,531,228
------------
PENNSYLVANIA--5.0%
AAA 1,500 Delaware Cnty. Regl. Wtr. Qual. Ctrl. Auth., Swr. Rev., 4.00%, 5/01/07, FGIC No Opt. Call 1,596,345
AAA 1,345 Fleetwood Area Sch. Dist., GO, 4.00%, 4/01/07, FGIC ....................... No Opt. Call 1,429,291
AAA 1,615 Oxford Area Sch. Dist., GO, Ser. A, 4.00%, 2/15/07, FGIC .................. No Opt. Call 1,714,856
AAA 1,900 Pennsylvania Dept. of Gen. Svcs., COP, 4.25%, 5/01/06, FSA ................ No Opt. Call 2,010,580
AAA 2,375 Pennsylvania Tpke. Comm., Ser. T, 4.125%, 12/01/06, FGIC .................. No Opt. Call 2,531,845
Philadelphia, GO, FSA,
AAA 1,000 4.00%, 9/15/06 .......................................................... No Opt. Call 1,058,070
AAA 3,100 4.05%, 9/15/07 .......................................................... No Opt. Call 3,314,706
AAA 2,950 Philadelphia Wtr. & Wst., 5.50%, 6/15/06, MBIA ............................ No Opt. Call 3,218,450
AAA 3,620 Pittsburgh Pub. Parking Auth., Parking Rev., 2.75%, 12/01/06, AMBAC ....... No Opt. Call 3,718,862
Pocono Mtn. Sch. Dist., GO, FSA,
AAA 875 4.50%, 4/01/07 .......................................................... No Opt. Call 943,477
AAA 3,025 4.50%, 10/01/07 ......................................................... No Opt. Call 3,285,604
------------
24,822,086
------------
RHODE ISLAND--1.1%
AAA 1,865 Providence, GO, Ser. C, 3.75%, 1/15/07, FGIC .............................. No Opt. Call 1,963,696
AAA 3,400 Rhode Island & Providence Plantations, GO, Ser. A, 4.00%, 12/01/06, FSA ... No Opt. Call 3,612,568
------------
5,576,264
------------
SOUTH CAROLINA--0.8%
AAA 1,715 Lexington Cnty. Sch. Dist. No. 1, COP, 3.00%, 3/01/07, AMBAC .............. No Opt. Call 1,772,967
AAA 2,070 Pickens Cnty. Sch. Dist., GO, Ser. B, 2.25%, 3/01/07, FGIC ................ No Opt. Call 2,092,687
------------
3,865,654
------------
TEXAS--15.9%
AAA 6,575 Austin Wtr. & Wstwtr. Sys., Ser. C, 3.75%, 11/15/06, FSA .................. No Opt. Call 6,930,510
AAA 2,400 Corpus Christi, Gen. Impvt., GO, Ser. A, 5.00%, 3/01/07, FSA .............. No Opt. Call 2,621,184
AAA 1,095 Corpus Christi Bus. & Job Dev., Corp. Sales Tax Rev., 4.00%, 3/01/07, AMBAC No Opt. Call 1,161,915
AAA 8,500 Cypress-Fairbanks Indpt. Sch. Dist., GO, Zero Coupon, 8/01/06, AMBAC ...... No Opt. Call 8,049,670
AAA 6,355 Dallas Rapid Transit, 3.70%, 12/01/06, AMBAC .............................. No Opt. Call 6,694,929
AAA 1,305 Dallas Wtrwrks. & Swr. Sys., 3.00%, 4/01/07, FSA .......................... No Opt. Call 1,344,020
AAA 2,280 Denton Util. Sys., Mult. Util. Impvt., 4.25%, 12/01/06, AMBAC ............. No Opt. Call 2,437,274
AAA 3,445 El Paso Cnty., GO, 4.00%, 2/15/07, FSA .................................... No Opt. Call 3,654,801
AAA 1,000 Houston Area Wtr. Corp., Northeast Wtr. Purification Proj., 4.00%,
3/01/07, FGIC ........................................................... No Opt. Call 1,061,110
AAA 6,285(3) MuniMae Trust, Ser. 10, Cl. A, 4.40%, 7/25/08 ............................. N/A 6,427,858
AAA 2,915 Odessa Texas Wtr. & Swr., 4.25%, 4/01/07, FSA ............................. No Opt. Call 3,115,669
Round Rock Indpt. Sch. Dist., GO, Ser. A,
AAA 2,465 4.25%, 8/01/06 .......................................................... No Opt. Call 2,619,161
AAA 1,000 4.25%, 8/01/07 .......................................................... No Opt. Call 1,074,620
AAA 8,115 San Antonio Elec. & Gas, Ser. B, Zero Coupon, 2/01/08, FGIC ............... ETM 7,299,361
AAA 1,000 Sugar Land, GO, 2.50%, 2/15/07, FGIC ...................................... No Opt. Call 1,015,890
AAA 5,000 Tarrant Regl. Wtr. Dist., Impvt., 3.00%, 3/01/07, FSA ..................... No Opt. Call 5,153,500
AAA 15,000 Texas Mun. Pwr. Agcy., Zero Coupon, 9/01/06, AMBAC ........................ No Opt. Call 14,198,850
AAA 1,000 Texas Pub. Fin. Auth., 3.00%, 2/01/07, FGIC ............................... No Opt. Call 1,029,920
AAA 3,000 Texas Tech. Univ., Ser. 6, 4.25%, 2/15/07, AMBAC .......................... No Opt. Call 3,203,340
------------
79,093,582
------------
See Notes to Financial Statements.
34
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
UTAH--5.6%
Utah, GO, Ser. B,
AAA $ 5,950 4.50%, 7/01/06 .......................................................... No Opt. Call $ 6,353,886
AAA 20,000 4.50%, 7/01/07 .......................................................... No Opt. Call 21,640,400
------------
27,994,286
------------
WASHINGTON--9.6%
AAA 1,325 Benton Cnty. Pub. Util. Dist., Elec. Rev., 3.75%, 11/01/06, FSA ........... No Opt. Call 1,395,689
AAA 3,000 Clark Cnty. Pub. Util., Dist. No. 1, Elec. Rev., 4.00%, 1/01/07, AMBAC .... No Opt. Call 3,173,970
King Cnty.,
AAA 2,090 GO, 3.50%, 12/01/06, MBIA ............................................... No Opt. Call 2,190,027
AAA 3,085 Swr. Rev., 3.50%, 1/01/07, FGIC ......................................... No Opt. Call 3,219,383
AAA 2,100 Kitsap Cnty., GO, Ser. B, 4.00%, 12/01/06, AMBAC .......................... No Opt. Call 2,230,074
Seattle, GO, Ser. E, MBIA,
AAA 1,700 Zero Coupon, 12/15/07 ................................................... No Opt. Call 1,530,051
AAA 1,345 Zero Coupon, 12/15/08 ................................................... No Opt. Call 1,158,152
Snohomish Cnty. Pub. Util. Dist., Elec. Rev.,
AAA 5,620 4.125%, 12/01/06, FSA ................................................... No Opt. Call 5,987,885
AAA 1,250 6.55%, 1/01/07, FGIC .................................................... ETM 1,280,338
AAA 3,890 Tacoma Elec. Sys., Ser. A, 4.00%, 1/01/07, FSA ............................ No Opt. Call 4,115,581
AAA 3,360 Thurston Cnty. Sch. Dist. No. 3, GO, 4.25%, 12/01/06, FSA ................. No Opt. Call 3,591,773
AAA 5,000 Washington, GO, Ser. B, 5.00%, 1/01/08, MBIA .............................. No Opt. Call 5,516,800
AAA 12,875 Washington Pub. Pwr. Sply., Nuclear Proj. No. 2, Ser. A, Zero Coupon,
7/01/06, MBIA ........................................................... No Opt. Call 12,238,460
------------
47,628,183
------------
WEST VIRGINIA--1.7%
AAA 5,300 West Virginia, GO, 4.00%, 6/01/06, FSA .................................... No Opt. Call 5,576,395
West Virginia Econ. Dev. Auth., Correctional Juvenille & Pub., MBIA,
AAA 1,000 Ser. B, 4.00%, 6/01/06 .................................................. No Opt. Call 1,053,910
AAA 1,500 Ser. A, 4.00%, 6/01/07 .................................................. No Opt. Call 1,596,150
------------
8,226,455
------------
WISCONSIN--5.6%
AAA 1,380 Appleton Wtrwks., Ser. B, 4.00%, 1/01/07, FGIC ............................ No Opt. Call 1,460,026
AAA 5,000 Kenosha, GO, Ser. B, Zero Coupon, 10/15/08, FSA ........................... No Opt. Call 4,376,200
AAA 1,275 Milwaukee, GO, Ser. W, 4.00%, 3/15/07, FSA ................................ No Opt. Call 1,353,846
Wisconsin,
AAA 880 COP, Ser. A, 3.75%, 3/01/07, FSA ........................................ No Opt. Call 927,089
AAA 12,780 COP, Ser. A, 3.75%, 9/01/07, FSA ........................................ No Opt. Call 13,499,003
AAA 6,085 GO, Ser. G, 4.00%, 5/01/07, MBIA ........................................ No Opt. Call 6,455,089
------------
28,071,253
------------
TOTAL LONG-TERM INVESTMENTS (COST $708,414,196) 752,444,169
------------
SHORT-TERM INVESTMENTS--7.4%
FLORIDA--0.0%
F1+ 200(4) Orange Cnty. Florida Sch. Brd., COP, Ser. B, 1.30%, 1/02/04, FRDD ......... N/A 200,000
------------
GEORGIA--2.4%
F1+ 4,585(4) De Kalb County Hsg. Auth., 1.26%, 1/02/04, FRWD ........................... N/A 4,585,000
A1+ 7,345(4) Mun. Elec. Auth., Proj. 1, Ser. C, 1.05%, 1/07/04, MBIA, FRWD ............. N/A 7,345,000
------------
11,930,000
------------
MASSACHUSETTS--2.2%
A1+ 11,200(4) Massachusetts St. Dev. Fin. Agcy. Rev., Boston Univ., Ser. R-2, 1.16%,
1/02/04, XLCA ........................................................... N/A 11,200,000
------------
TEXAS--1.6%
Brownsville Util. Sys., Ser. A, MBIA, FRWD,
A1+ 765(4) Zero Coupon, 10/09/03 ................................................... N/A 765,000
A1 7,000(4) 1.10%, 1/07/04 .......................................................... N/A 7,000,000
------------
7,765,000
------------
PUERTO RICO--0.5%
A1 2,500(4) Puerto Rico Comnwlth. Hwy. & Transp. Auth., Transp. Rev., Ser. A,
1.10%, 1/07/04, AMBAC ................................................... N/A 2,500,000
------------
See Notes to Financial Statements.
35
SHARES
(000) DESCRIPTION VALUE
==================================================================================================================================
MONEY MARKET FUND--0.7%
3,350 AIM Tax Free Investment Co. Cash Reserve Portfolio ........................ $ 3,350,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $36,945,000) ........................... 36,945,000
------------
TOTAL INVESTMENTS--158.4% (COST $745,359,196) ............................. $789,389,169
Other assets in excess of liabilities--1.6% 8,061,001
Preferred shares at redemption value, including dividends payable--(60.0)% (299,167,156)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $498,283,014
============
----------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) This bond is prerefunded. Securities, held in escrow, are used to pay
interest on this security, as well as retire the bond in full at the date
indicated, typically at a premium to par.
(4) For purposes of amortized cost valuation, the maturity date of this
instrument is considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
CAPMAC -- Capital Markets Assurance Company
COP -- Certificate of Participation
CONNIE LEE -- College Construction Loan Insurance Association
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
FRDD -- Floating Rate Daily Demand
FRWD -- Floating Rate Weekly Demand
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
XLCA -- XL Capital Assurance
--------------------------------------------------------------------------------
See Notes to Financial Statements.
36
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
BLACKROCK STRATEGIC MUNICIPAL TRUST (BSD)
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
LONG-TERM INVESTMENTS--151.3%
ALABAMA--14.2%
AAA $ 7,000 Alabama Pub. Sch. & Coll. Auth., Cap. Impvt., Ser. C, 5.75%, 7/01/18 ...... 07/09 @ 101.5 $ 7,925,610
Baa2 3,000 Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., Ser. A,
6.70%, 11/01/29 ......................................................... 11/09 @ 101 3,209,850
AAA 4,635(3) Jefferson Cnty. Swr., Ser. D, 5.75%, 02/01/07, FGIC ....................... N/A 5,211,270
------------
16,346,730
------------
ALASKA--1.0%
AAA 1,130 Alaska Hsg. Fin. Corp., Ser. A, 5.875%, 12/01/24, MBIA .................... 12/05 @ 102 1,163,391
------------
CALIFORNIA--6.6%
Golden St. Tobacco Sec. Corp., Ser. B,
A- 4,600 5.50%, 6/01/43 .......................................................... 06/13 @ 100 4,478,376
A- 3,100 5.625%, 6/01/38 ......................................................... 06/13 @ 100 3,088,902
------------
7,567,278
------------
COLORADO--1.8%
AAA 10,000 Northwest Pkwy. Pub. Hwy. Auth., Ser B, Zero Coupon, 6/15/30, FSA ......... 06/11 @ 31.387 2,092,000
------------
CONNECTICUT--8.4%
Mashantucket Western Pequot Tribe, Spec. Rev.,
BBB- 1,500 Ser. A, 5.50%, 9/01/28 .................................................. 09/09 @ 101 1,511,985
Baa3 8,000(4) Ser. B, 5.75%, 9/01/27 .................................................. 09/07 @ 102 8,153,040
------------
9,665,025
------------
DELAWARE--1.9%
NR 2,000(4) Charter Mac Equity Issuer Trust, Ser. B, 7.60%, 11/30/50 .................. 11/10 @ 100 2,186,720
------------
FLORIDA--6.9%
Florida Hsg. Fin. Corp., Sunset Place, Ser. K-1,
A 2,400 6.00%, 10/01/19 ......................................................... 10/09 @ 102 2,496,000
A 2,000 6.10%, 10/01/29 ......................................................... 10/09 @ 102 2,079,180
NR 3,300 Hillsborough Cnty. Ind. Dev. Auth., National Gypsum, Ser. A, 7.125%, 4/01/30 10/10 @ 101 3,412,662
------------
7,987,842
------------
ILLINOIS--9.9%
AAA 5,000 Chicago Brd. of Ed., Sch. Reform, 5.75%, 12/01/27, AMBAC .................. 12/07 @ 102 5,494,200
B 7,560 Chicago O'Hare Intl. Arpt., Delta Air Lines Inc. Term. Proj., 6.45%, 5/01/18 01/04 @ 101 5,964,084
------------
11,458,284
------------
IOWA--0.8%
BBB 1,000 Tobacco Settlement Auth., Tobacco Settlement Rev., Ser. B, 5.30%, 6/01/25 . 06/11 @ 101 866,210
------------
KENTUCKY--9.6%
AAA 32,345 Kentucky Econ. Dev. Fin. Sys., Norton Hlth. Care Inc., Ser. B, Zero
Coupon, 10/01/24, MBIA .................................................. No Opt. Call 11,115,359
------------
MARYLAND--3.8%
NR 4,000(4) MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 6/30/49 .................. 06/09 @ 100 4,322,000
------------
MICHIGAN--9.2%
AAA 2,000 Michigan Hosp. Fin. Auth., Mercy Hlth. Svcs., 5.75%, 8/15/19, MBIA ........ 08/09 @ 101 2,239,060
BB 8,000 Midland Cnty. Econ. Dev., Ser. A, 6.875%, 7/23/09 ......................... 07/07 @ 101 8,344,960
------------
10,584,020
------------
MISSOURI--1.8%
A 2,000 Missouri Hlth. & Edl. Facs. Auth., Hlth. Facs. Rev., St. Anthony's Med.
Ctr., 6.125%, 12/01/19 .................................................. 12/10 @ 101 2,120,180
------------
NEW JERSEY--10.7%
B 6,000 New Jersey Econ. Dev. Auth., Continental Airlines Inc. Proj., 6.25%, 9/15/19 09/09 @ 101 5,204,460
AAA 6,000(3) New Jersey Transp. Trust Fund Auth., Transp. Sys., Ser. A, 6.00%, 6/15/10 . N/A 7,147,740
------------
12,352,200
------------
NEW YORK--8.5%
New York City Transl. Fin. Auth., Ser. B,
AA+ 4,885(3) 6.00%, 5/15/10 .......................................................... N/A 5,865,224
AA+ 1,115 6.00%, 11/15/21 ......................................................... 05/10 @ 101 1,282,228
Aa1 2,500 New York Mtge. Agcy., Homeowner Mtge., Ser. 85, 5.70%, 10/01/17 ........... 09/09 @ 100 2,671,250
------------
9,818,702
------------
See Notes to Financial Statements.
37
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
PENNSYLVANIA--17.3%
Lehigh Cnty. Gen. Purp. Auth., Kidspeace Oblig. Grp.,
Ba2 $ 2,250 6.00%, 11/01/23 ......................................................... 11/08 @ 102 $ 2,203,268
Ba2 2,335 6.20%, 11/01/14 ......................................................... 11/09 @ 102 2,314,405
BBB+ 1,500 Montgomery Cnty. Ind. Dev. Auth., Retirement Cmnty. Rev., 5.25%, 11/15/28 . 11/08 @ 101 1,437,810
Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Ser. A,
A3 700 6.125%, 11/01/21 ........................................................ 05/11 @ 101 698,404
A3 1,000 6.25%, 11/01/31 ......................................................... 05/11 @ 101 999,320
A3 1,000 6.50%, 11/01/16 ......................................................... 05/11 @ 101 1,027,780
AAA 8,500 Philadelphia Sch. Dist., GO, Ser. C, 5.75%, 3/01/29, MBIA ................. 03/10 @ 100 9,380,855
AAA 1,500 Washington Cnty. Auth., Cap. Fdg. & Equip. Proj., 6.15%, 12/01/29, AMBAC .. No Opt. Call 1,837,410
------------
19,899,252
------------
SOUTH CAROLINA--2.4%
BBB 2,500 South Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev., Palmetto Hlth.
Alliance, Ser. C, 7.00%, 8/01/30 ........................................ 08/13 @ 100 2,717,300
------------
TENNESSEE--5.3%
Baa1 3,750 Maury Cnty. Ind. Dev. Brd., PCR, Saturn Corp. Proj., 6.50%, 9/01/24 ....... 09/04 @ 102 3,867,075
AAA 2,000 Memphis Shelby Cnty. Arpt. Auth., Ser. D, 6.00%, 3/01/24, AMBAC ........... 03/10 @ 101 2,192,580
------------
6,059,655
------------
TEXAS--15.1%
AAA 4,750 Harris Cnty. Houston Sports Auth., Ser. A, Zero Coupon, 11/15/38, MBIA .... 11/30 @ 61.166 696,255
AAA 1,500 Lower Colorado River Auth., Ser. A, 5.50%, 5/15/21, AMBAC ................. 05/09 @ 101 1,648,980
BBB 3,000 Port Corpus Christi Auth., Celanese Proj., Ser. B, 6.70%, 11/01/30 ........ 05/12 @ 101 3,172,770
AAA 15,000 Texas Tpke. Auth., Central Sys. Rev., Zero Coupon, 8/15/31, AMBAC ......... 08/12 @ 32.807 3,045,000
AA+ 500 Texas Wtr. Fin. Asst., GO, 5.75%, 8/01/22 ................................. 08/10 @ 100 561,135
AAA 7,030(3) Travis Cnty. Hlth. Facs. Dev. Corp., Ascension Hlth., Ser. A, 5.875%,
11/15/09, AMBAC ......................................................... N/A 8,333,784
------------
17,457,924
------------
UTAH--3.9%
AAA 4,000 Intermountain Pwr. Agcy., Sply., Ser. B, 5.75%, 7/01/19, MBIA ............. 07/07 @ 102 4,473,320
------------
VIRGINIA--1.7%
AAA 1,750 Virginia Res. Auth., Clean Wtr. Rev., 5.625%, 10/01/22 .................... 10/10 @ 100 1,938,125
------------
WASHINGTON--6.4%
Washington, GO,
AA+ 4,750 Ser. A, 5.625%, 7/01/24 ................................................. 07/09 @ 100 5,150,092
AA+ 2,000 Ser. B, 6.00%, 1/01/25 .................................................. 01/10 @ 100 2,274,680
------------
7,424,772
------------
WISCONSIN--4.1%
BBB 5,000 Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32 .......................... 06/12 @ 100 4,697,800
------------
TOTAL LONG-TERM INVESTMENTS (COST $160,501,692) ........................... $174,314,089
------------
-----------
SHARES
(000)
-----------
MONEY MARKET FUND--0.6%
750 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $750,000) ........ N/A 750,000
------------
TOTAL INVESTMENTS--151.9% (COST $161,251,692) ............................. 175,064,089
Other assets in excess of liabilities--1.9% ............................... 2,195,302
Preferred shares at redemption value, including dividends payable--(53.8)% (62,013,242)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $115,246,149
============
----------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) This bond is prerefunded. Securities, held in escrow, are used to pay
interest on this security, as well as retire the bond in full at the date
indicated, typically at a premium to par.
(4) Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A
under that Act, to qualified institutional buyers. As of December 31,
2003, the Trust held 12.7% of its net assets, with a current market value
of $14,661,760, in securities restricted as to resale.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
--------------------------------------------------------------------------------
See Notes to Financial Statements.
38
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST (BFC)
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
LONG-TERM INVESTMENTS--156.8%
CALIFORNIA--144.7%
AAA $ 2,635 Alameda Cnty., COP, Ser. A, 3.80%, 12/01/08, MBIA ......................... No Opt. Call $ 2,825,326
Anaheim Union High Sch. Dist., GO, Ser. A, FSA,
AAA 1,060 3.50%, 8/01/08 .......................................................... No Opt. Call 1,117,781
AAA 1,250 4.00%, 8/01/09 .......................................................... No Opt. Call 1,345,337
AAA 1,000 Burbank, Elec. Rev., 3.50%, 6/01/09, MBIA ................................. No Opt. Call 1,054,160
California, GO,
AAA 2,000 5.00%, 6/01/09, MBIA .................................................... No Opt. Call 2,243,300
AAA 3,000 5.50%, 4/01/09, MBIA .................................................... No Opt. Call 3,427,350
AAA 3,000 5.50%, 2/01/10, MBIA .................................................... No Opt. Call 3,422,040
AAA 2,000 6.25%, 9/01/08, FGIC .................................................... No Opt. Call 2,333,540
AAA 15,000 6.30%, 9/01/08, MBIA .................................................... No Opt. Call 17,534,400
California Dept. of Wtr. Res.,
AAA 10,000 Pwr. Sply. Rev., Ser. A, 3.125%, 5/01/08, FSA ........................... No Opt. Call 10,320,500
AAA 10,000 Pwr. Sply. Rev., Ser. A, 3.375%, 5/01/09, MBIA .......................... No Opt. Call 10,395,200
AAA 1,000 Wtr. Rev., Central Valley Proj., Ser. Z, 4.00%, 12/01/09, FGIC .......... No Opt. Call 1,080,580
California Hlth. Facs. Fin. Auth.,
AAA 6,850 Marin Gen. Hosp., Ser. A, 5.75%, 8/01/09, FSA ........................... 01/04 @ 102 7,009,399
AAA 2,000 Sutter Hlth. Care Sys., 5.70%, 8/15/09, MBIA ............................ 08/06 @ 102 2,240,400
AAA 2,100 California Pub. Wks. Brd., Energy Efficiency, Ser. A, 5.625%,
10/01/08, AMBAC ......................................................... 10/05 @ 102 2,285,724
AAA 2,600 Castaic Lake Wtr. Agcy., COP, Wtr. Sys. Impvt. Proj., Ser. A, 7.25%,
8/01/10, MBIA ........................................................... No Opt. Call 3,254,628
AAA 1,135 Chaffey Cmnty. College Dist., GO, Ser. A, 3.75%, 7/01/09, FSA ............. No Opt. Call 1,205,892
Chula Vista, COP, MBIA, Police Fac. Proj.,
AAA 1,000 4.00%, 8/01/08 .......................................................... No Opt. Call 1,076,130
AAA 1,000 4.00%, 8/01/09 .......................................................... No Opt. Call 1,076,270
AAA 5,500 Clovis Unified Sch. Dist., Ser. B, Zero Coupon, 8/01/08, FGIC ............. ETM 4,905,285
AAA 1,855 El Paso De Robles, GO, Ser. A, Zero Coupon, 8/01/09, FGIC ................. No Opt. Call 1,572,372
AAA 4,025 Elsinore Valley Mun. Wtr. Dist., COP, Ser. A, 6.00%, 7/01/09, FGIC ........ No Opt. Call 4,715,448
AAA 1,055 Glendale Unified Sch. Dist., Ser. D, 3.50%, 9/01/09, MBIA ................. No Opt. Call 1,108,953
Long Beach Bd. of Fin. Auth., Tax Allocation Rev., Redev. Projs., AMBAC,
AAA 1,245 3.50%, 8/01/08 .......................................................... No Opt. Call 1,312,865
AAA 1,120 3.75%, 8/01/09 .......................................................... No Opt. Call 1,190,952
AAA 13,110 Los Angeles, GO, Ser. A, 3.50%, 9/01/09, MBIA ............................. No Opt. Call 13,780,445
Los Angeles Cnty.,
AAA 2,910 Asset Leasing Corp. Rev., 5.95%, 12/01/07, AMBAC ........................ No Opt. Call 3,351,243
AAA 8,090 Asset Leasing Corp. Rev., 6.00%, 12/01/08, AMBAC ........................ No Opt. Call 9,455,916
AAA 8,600 Asset Leasing Corp. Rev., 6.05%, 12/01/09, AMBAC ........................ No Opt. Call 10,202,868
AAA 4,405 Met. Trans. Auth. Rev., Spl. Benefit Assmt. Dist. A1, 3.75%, 9/01/08,
AMBAC ................................................................. No Opt. Call 4,697,800
AAA 9,835 Sanitation Dists. Fin. Auth. Rev., Cap. Proj., Ser. A, 4.00%,
10/01/09, FSA ......................................................... No Opt. Call 10,606,163
AAA 6,000 Los Angeles Dept. of Arpts., Arpt. Rev., LA Intl. Arpt., Ser. B, 5.00%,
5/15/09, MBIA ......................................................... No Opt. Call 6,740,220
AAA 3,860 Los Angeles Sanitation Equip., Ser. A, 3.625%, 2/01/09, FSA ............... No Opt. Call 4,079,557
Los Angeles Unified Sch. Dist., FSA,
AAA 2,660 Ser. B, 3.00%, 10/01/08 ................................................. No Opt. Call 2,750,626
AAA 7,500 Ser. F, 3.00%, 7/01/09 .................................................. No Opt. Call 7,681,725
AAA 1,000 Mount Diablo Unified Sch. Dist., GO, 3.50%, 8/01/08, FSA .................. No Opt. Call 1,054,510
AAA 1,000 Orange Cnty. Local Trans. Auth., Sales Tax Rev., 6.00%, 2/15/09, MBIA ..... No Opt. Call 1,168,200
AAA 2,495 Pasadena Unified Sch. Dist., Ser. C, 3.50%, 11/01/08, FSA ................. No Opt. Call 2,638,213
AAA 3,345 Sacramento City Fin. Auth., City Hall & Redev. Projs., Ser. A, 3.50%,
12/01/08, FSA ........................................................... No Opt. Call 3,540,214
AAA 1,000 Sacramento City Unified Sch. Dist., 3.50%, 7/01/09, FGIC .................. No Opt. Call 1,049,720
Sacramento Mun. Util. Dist., Elec. Rev., Ser. C,
AAA 825 5.75%, 11/15/07, MBIA ................................................... ETM 845,452
AAA 3,750 5.75%, 11/15/08, FGIC ................................................... ETM 3,885,000
AAA 3,950 5.75%, 11/15/09, MBIA ................................................... ETM 4,048,513
AAA 5,000 San Bernardino Cnty., Trans. Auth., Sales Tax Rev., 6.00%, 3/01/10, FGIC .. ETM 5,474,150
See Notes to Financial Statements.
39
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
CALIFORNIA (CONTINUED)
San Diego Cnty.,
AAA $ 2,360 COP, 5.00%, 2/01/09, AMBAC .............................................. No Opt. Call $ 2,648,250
AAA 11,000 COP, 5.625%, 9/01/12, AMBAC ............................................. No Opt. Call 12,774,850
AAA 7,830 Regl. Trans. Comm., Sales Tax Rev., Ser. A, 6.00%, 4/01/08, MBIA ........ ETM 7,911,902
AAA 2,500 Regl. Trans. Comm., Sales Tax Rev., Ser. A, 6.00%, 4/01/08, FGIC ........ ETM 2,526,150
AAA 12,725 San Diego Pub. Facs. Fin. Auth., Wtr. Rev., 3.00%, 8/01/09, MBIA .......... No Opt. Call 13,037,780
AAA 1,250 San Francisco City & Cnty., GO, 4.00%, 6/15/09, FSA ....................... No Opt. Call 1,349,875
AAA 1,000 San Jose Redev. Agcy., 4.00%, 8/01/09, MBIA ............................... No Opt. Call 1,073,580
AAA 1,000 San Mateo Cnty. Cmnty. College Dist., GO, Ser. A, 3.30%, 9/01/08, FGIC .... No Opt. Call 1,046,670
Santa Ana Unified Sch. Dist., GO, Ser. B, FGIC,
AAA 1,000 Zero Coupon, 8/01/08 .................................................... No Opt. Call 887,860
AAA 2,000 Zero Coupon, 8/01/09 .................................................... No Opt. Call 1,695,280
AAA 4,030 Santa Barbara Cnty., Local Transp. Auth., Sales Tax Rev., 3.00%,
3/15/09, FSA ............................................................ No Opt. Call 4,142,236
AAA 2,470 Santa Clara, COP, Ser. B, 3.50%, 2/01/09, AMBAC ........................... No Opt. Call 2,595,847
AAA 2,865(3) Santa Clara Cnty. Fin. Auth., Fac. Replacement Proj. A, 6.50%,
11/15/04, AMBAC ......................................................... N/A 3,054,806
AAA 4,620 Santa Clara Valley Wtr. Dist., COP, 4.00%, 2/01/09, FGIC .................. No Opt. Call 4,965,022
AAA 4,665 So. Coast Air Quality Mgmt. Dist. Bldg. Corp., 4.00%, 8/01/09, AMBAC ...... No Opt. Call 5,020,800
Univ. of California,
AAA 2,500 Ser. A, 5.00%, 5/15/09, AMBAC ........................................... No Opt. Call 2,821,525
AAA 2,000 Ser. F, 5.00%, 9/01/11, FGIC ............................................ 09/06 @ 101 2,175,900
AAA 1,845 West Sacramento Fin. Auth., Wtr. Sys. Impvt., 5.25%, 8/01/08, FGIC ........ 02/04 @ 101 1,868,985
------------
258,701,685
------------
PUERTO RICO--12.1%
Puerto Rico Elec. Pwr. Auth.,
AAA 7,000 Ser. DD, 5.00%, 7/01/10, FSA ............................................ 07/08 @ 101.5 7,861,630
AAA 3,000 Ser. KK, 4.50%, 7/01/09, XLCA ........................................... No Opt. Call 3,311,760
AAA 5,280 Ser. DD, 5.00%, 7/01/09, FSA ............................................ 07/08 @ 101.5 5,915,501
AAA 4,000 Puerto Rico Mun. Fin. Agcy., Ser. A, 5.625%, 8/01/10, FSA ................. 08/09 @ 101 4,612,640
------------
21,701,531
------------
TOTAL INVESTMENTS--156.8% (COST $260,437,492) ............................. $280,403,216
Other assets in excess of liabilities--1.7% ............................... 3,036,531
Preferred shares at redemption value, including dividends payable--(58.5)% (104,586,175)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $178,853,572
============
----------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) This bond is prerefunded. Securities, held in escrow, are used to pay
interest on this security, as well as retire the bond in full at the date
indicated, typically at a premium to par.
Securities that are covered by insurance, which ensures the timely payment of
principal and interest, represent approximately 100.0% of the Trust's total
investments.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
XLCA -- XL Capital Assurance
--------------------------------------------------------------------------------
See Notes to Financial Statements.
40
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST (BJZ)
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
LONG-TERM INVESTMENTS--147.7%
CALIFORNIA--123.7%
BBB+ $ 2,100 ABAG Fin. Auth. for Nonprofit Corps., San Diego Hosp. Assoc., Ser. C,
5.375%, 3/01/21 ......................................................... 03/14 @ 100 $ 2,086,434
California, GO,
Baa1 5,000 5.00%, 11/01/20 ......................................................... 11/11 @ 100 5,038,500
AAA 6,500 Ser. BZ, 5.35%, 12/01/21, MBIA .......................................... 06/07 @ 101 6,629,480
California Cnty. Tobacco Sec. Agcy.,
BBB 5,000 Ser. A, 5.50%, 6/01/33 .................................................. 06/12 @ 100 4,283,550
BBB 5,000 Fresno Cnty. Fdg. Corp., 5.875%, 6/01/27 ................................ 06/12 @ 100 4,706,000
A- 6,500 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.125%, 5/01/19 ... 05/12 @ 101 6,752,720
California Hlth. Fac. Fin. Auth., Adventist Hlth. Sys., Ser. A,
A 1,075 5.00%, 3/01/18 .......................................................... 03/13 @ 100 1,097,618
A 1,000 5.00%, 3/01/19 .......................................................... 03/13 @ 100 1,013,590
A 2,060 5.00%, 3/01/20 .......................................................... 03/13 @ 100 2,069,765
A 1,355 5.00%, 3/01/24 .......................................................... 03/13 @ 100 1,329,553
AAA 20,000 California Hsg. Fin. Agcy., Home Mtge. Rev., Ser. T, Zero Coupon,
8/01/21, MBIA ........................................................... 08/11 @ 57.562 7,651,800
California Infrastructure & Econ. Dev.,
A 1,985 J. David Gladstone Inst. Proj., 5.50%, 10/01/20 ......................... 10/11 @ 101 2,114,104
A 6,500 Kaiser Hosp. Asst. LLC, Ser. A, 5.55%, 8/01/31 .......................... 08/11 @ 102 6,727,695
A2 3,100 California Poll. Ctrl. Fin. Auth., PCR, San Diego Gas & Elec.,
Ser. A, 5.90%, 6/01/14 .................................................. No Opt. Call 3,371,436
California Pub. Wks. Brd., Ser. A,
BBB 2,020 California Cmnty. College, 5.00%, 12/01/17 .............................. 12/08 @ 101 2,050,381
A3 2,415 California St. Univ., 5.00%, 10/01/17 ................................... 10/08 @ 101 2,457,407
A- 2,500 Daly City Hsg. Dev. Fin. Agcy., Sr. Franciscan Acquisition Proj.,
Ser. A, 5.80%, 12/15/25 ................................................. 12/13 @ 102 2,584,850
AAA 3,395 Fontana Pub. Fin. Auth., Tax Allocation Rev., Fontana Redev. Proj.,
Ser. A, 5.25%, 9/01/18, FSA ............................................. 09/11 @ 101 3,707,136
BBB 20,000 Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., Zero Coupon, 1/15/21 01/10 @ 53.346 7,471,200
Lathrop Fin. Auth., Wtr. Sply. Proj.,
NR 995 5.80%, 6/01/21 .......................................................... 06/13 @ 100 986,333
NR 1,040 5.85%, 6/01/22 .......................................................... 06/13 @ 100 1,030,682
NR 1,000 5.90%, 6/01/23 .......................................................... 06/13 @ 100 990,820
AAA 5,000 Long Beach Harbor Dept., Ser. A, 5.25%, 5/15/18, FGIC ..................... 05/10 @ 101 5,427,150
AA 5,000 Los Angeles Cnty., Pub. Wks. Fin. Auth., Regl. Pk. & Open Space,
Ser. A, 5.00%, 10/01/19 ................................................. 10/07 @ 101 5,212,950
AAA 10,025 Los Angeles Habor Dept., Ser. B, 5.50%, 8/01/21, AMBAC .................... 08/11 @ 100 10,876,824
AAA 5,000 Riverside Unified Sch. Dist., Ser. A, 5.25%, 2/01/23, FGIC ................ 02/12 @ 101 5,304,750
San Bernardino Cnty., Spl. Tax, Cmnty. Facs.,
NR 105 5.35%, 9/01/17 .......................................................... 09/12 @ 102 102,119
NR 245 5.50%, 9/01/18 .......................................................... 09/12 @ 102 239,206
NR 500 5.60%, 9/01/19 .......................................................... 09/12 @ 102 487,755
NR 355 5.70%, 9/01/20 .......................................................... 09/12 @ 102 346,036
AAA 2,980 San Diego Cnty., COP, 5.25%, 11/01/19, AMBAC .............................. 11/11 @ 100 3,217,864
AAA 2,135 Santa Clara Valley Transp. Auth., Sales Tax Rev., Ser. A, 5.00%,
6/01/18, MBIA ........................................................... 06/11 @ 100 2,262,267
AAA 4,590 Stockton East Wtr. Dist., COP, Ser. B, Zero Coupon, 4/01/19, FGIC ......... 04/12 @ 66.427 2,059,671
BBB 1,000 Tobacco Sec. Auth. No. California, Tobacco Settlement Rev., Ser. A,
5.375%, 6/01/41 ......................................................... 06/11 @ 100 800,690
BBB 6,000 Tobacco Sec. Auth. So. California, Tobacco Settlement Rev., Ser. A,
5.50%, 6/01/36 .......................................................... 06/12 @ 100 5,079,060
------------
117,567,396
------------
DELAWARE--4.5%
NR 4,000(3) Charter Mac Equity Issuer Trust, Ser. A, 6.625%, 6/30/49 .................. 06/09 @ 100 4,274,760
------------
MARYLAND--5.7%
NR 5,000(3) MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 06/30/49 ................. 06/09 @ 100 5,402,500
------------
PUERTO RICO--13.8%
A- 4,410 Puerto Rico Pub. Bldgs. Auth., Gov't. Facs., Ser. C, 5.75%, 7/01/19 ....... No Opt. Call 5,105,722
BBB+ 7,500 Puerto Rico Pub. Fin. Corp., Ser. E, 5.70%, 8/01/25 ....................... 02/10 @ 100 8,046,075
------------
13,151,797
------------
TOTAL LONG-TERM INVESTMENTS (COST $137,935,624) ........................... 140,396,453
------------
See Notes to Financial Statements.
41
SHARES
(000) DESCRIPTION VALUE
==================================================================================================================================
MONEY MARKET FUNDS--9.0%
4,750 AIM Tax Free Investment Co. Cash Reserve Portfolio ........................ $ 4,750,000
3,800 SSgA Tax Free Money Mkt. Fund ............................................. 3,800,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $8,550,000) ............................ 8,550,000
------------
TOTAL INVESTMENTS--156.7% (COST $146,485,624) ............................. $148,946,453
Other assets in excess of liabilities--1.7% ............................... 1,628,603
Preferred shares at redemption value, including dividends payable--(58.4)% (55,528,256)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $ 95,046,800
============
----------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A
under that Act, to qualified institutional buyers. As of December 31,
2003, the Trust held 10.2% of its net assets, with a current market value
of $9,677,260, in securities restricted as to resale.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
--------------------------------------------------------------------------------
See Notes to Financial Statements.
42
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST (BRF)
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
LONG-TERM INVESTMENTS--155.4%
FLORIDA--137.9%
AAA $ 1,500 Alachua Cnty. Sch. Dist., GO, 4.25%, 1/01/09, FSA ......................... No Opt. Call $ 1,621,185
AAA 1,765 Collier Cnty. Sch. Brd., COP, Ser. A, 3.50%, 2/15/09, FSA ................. No Opt. Call 1,845,184
Dade Cnty.,
AAA 1,000 Aviation Rev., 6.00%, 10/01/08, AMBAC ................................... 10/05 @ 102 1,090,650
AAA 5,000 GO, Ser. A, Zero Coupon, 2/01/08, MBIA .................................. 02/06 @ 92.852 4,442,550
AAA 905 GO, Ser. B, Zero Coupon, 10/01/08, AMBAC ................................ ETM 795,929
AAA 1,095 GO, Ser. B, Zero Coupon, 10/01/08, AMBAC ................................ No Opt. Call 963,020
Dade Cnty. Sch. Brd., COP,
AAA 5,465(3) Ser. A, 5.75%, 5/01/04, MBIA ............................................ N/A 5,603,756
AAA 1,515 Delray Beach, Decade of Excellence Prog., GO, 3.50%, 2/01/09, FSA ......... No Opt. Call 1,585,538
Escambia Cnty. Util. Sys., Ser. B, FGIC,
AAA 1,595 6.125%, 1/01/09 ......................................................... No Opt. Call 1,863,279
AAA 5,235 6.25%, 1/01/12 .......................................................... No Opt. Call 6,292,627
AAA 5,060 6.25%, 1/01/13 .......................................................... No Opt. Call 6,122,954
Florida Brd. of Ed.,
AAA 8,720 GO, 3.50%, 1/01/09, FSA ................................................. No Opt. Call 9,119,638
AAA 4,190 Lottery Rev., Ser. A, 5.00%, 7/01/08, FGIC .............................. No Opt. Call 4,656,766
Florida Dept. of Env. Protection Presvtn., Ser. B, FGIC,
AAA 5,905 4.00%, 7/01/08 .......................................................... No Opt. Call 6,312,740
AAA 6,140 4.00%, 7/01/09 .......................................................... No Opt. Call 6,572,440
Florida Div. of Bond Fin. Dept., Gen. Svc. Rev.,
AAA 2,000 Nat. Res. & Presvtn., Ser. A, 5.00%, 7/01/11, AMBAC ..................... 07/07 @ 101 2,171,660
AAA 8,000 Dept. of Env. Presvtn., Ser. B, 5.25%, 7/01/10, FSA ..................... 07/08 @ 101 9,004,240
AAA 1,090 Florida Mun. Loan Council, Ser. C, 3.50%, 11/01/08, MBIA .................. No Opt. Call 1,140,849
AAA 6,000 Greater Orlando Aviation Auth., Orlando Arpt. Facs. Rev., Ser. C,
3.50%, 10/01/08, MBIA ................................................... No Opt. Call 6,266,940
Hillsborough Cnty. Cap Impvt., FGIC,
AAA 2,630(3) 6.25%, 8/01/04 .......................................................... N/A 2,733,569
AAA 1,500(3) 6.60%, 8/01/04 .......................................................... N/A 1,562,040
AAA 5,000(3) Hillsborough Cnty. Sch. Brd., COP, 5.875%, 7/01/04, MBIA .................. N/A 5,216,150
AAA 3,000 Hillsborough Cnty. Sch. Dist., Sales Tax Rev., 4.00%, 10/01/09, AMBAC ..... No Opt. Call 3,212,010
AAA 10,000 Hillsborough Cnty. Util., 4.50%, 8/01/08, AMBAC ........................... No Opt. Call 10,895,600
Indian River Cnty. Sch. Dist., GO, FSA,
AAA 950 3.25%, 4/01/08 .......................................................... No Opt. Call 987,364
AAA 1,000 3.25%, 4/01/09 .......................................................... No Opt. Call 1,035,820
Indian Trace Cmnty. Dev. Dist., Wtr. Mgmt. Spec. Benefit, Ser. A, MBIA,
AAA 3,000 5.625%, 5/01/08 ......................................................... 05/05 @ 102 3,212,820
AAA 2,910 5.75%, 5/01/09 .......................................................... 05/05 @ 102 3,121,150
Jacksonville Beach Utils., AMBAC,
AAA 1,100 3.10%, 4/01/09 .......................................................... No Opt. Call 1,131,350
AAA 1,155 3.10%, 10/01/09 ......................................................... No Opt. Call 1,181,634
AAA 5,895 Jacksonville Excise Tax, 4.25%, 10/01/08, AMBAC ........................... No Opt. Call 6,375,678
Jacksonville Sales Tax,
AAA 1,155 3.125%, 10/01/08, FGIC .................................................. No Opt. Call 1,191,336
AAA 1,000 3.375%, 10/01/09, FGIC .................................................. No Opt. Call 1,037,610
AAA 2,000 4.10%, 10/01/08, AMBAC .................................................. No Opt. Call 2,149,720
AAA 825 Lake Cnty. Sch. Brd., COP, 3.50%, 7/01/09, AMBAC .......................... No Opt. Call 859,980
AAA 2,000 Lakeland Elec. & Wtr., 5.90%, 10/01/08, FSA ............................... No Opt. Call 2,310,000
AAA 3,000 Lee Cnty. Arprt., 4.25%, 10/01/09, FSA .................................... No Opt. Call 3,233,430
Miami, GO, FGIC,
AAA 1,345 5.90%, 12/01/08 ......................................................... No Opt. Call 1,560,469
AAA 1,000 6.00%, 12/01/09 ......................................................... No Opt. Call 1,181,260
Miami Dade Cnty.,
AAA 2,000 Edl. Fac., Ser. A, 4.875%, 4/01/09, AMBAC ............................... No Opt. Call 2,230,240
AAA 1,535 Pub. Svc. Tax Rev., Pub. Impvt., 3.40%, 4/01/08, AMBAC .................. No Opt. Call 1,604,628
AAA 1,595 Pub. Svc. Tax Rev., Pub. Impvt., 3.625%, 4/01/09, AMBAC ................. No Opt. Call 1,667,732
AAA 4,775 Sch. Brd., COP, 5.25%, 8/01/11, FSA ..................................... 08/08 @ 101 5,326,942
See Notes to Financial Statements.
43
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
FLORIDA (CONTINUED)
Orange Cnty.,
AAA $ 1,000(3) Pub. Svc. Tax Rev., 5.70%, 10/01/05, FGIC ............................... N/A $ 1,093,730
AAA 4,895 Sales Tax Rev., Ser. A, 3.25%, 1/01/09, FGIC ............................ No Opt. Call 5,062,311
AAA 5,130 Tourist Dev., Tax Rev., Ser. A, 4.00%, 10/01/08, AMBAC .................. No Opt. Call 5,479,353
AAA 5,340 Tourist Dev., Tax Rev., Ser. A, 4.00%, 10/01/09, AMBAC .................. No Opt. Call 5,702,693
AAA 1,005 Tourist Dev., Tax Rev., Ser. A, 5.85%, 10/01/08, MBIA ................... ETM 1,162,725
AAA 495 Tourist Dev., Tax Rev., Ser. A, 5.85%, 10/01/08, MBIA ................... No Opt. Call 568,230
Orlando Wst. Wtr. Sys., Ser. A, AMBAC,
AAA 1,100 3.25%, 10/01/08 ......................................................... No Opt. Call 1,140,722
AAA 1,280 3.50%, 10/01/09 ......................................................... No Opt. Call 1,336,602
Osceola Cnty., AMBAC,
AAA 1,810 3.75%, 10/01/08 ......................................................... No Opt. Call 1,917,297
AAA 1,535 3.875%, 10/01/09 ........................................................ No Opt. Call 1,633,332
Osceola Cnty. Gas Tax, FGIC,
AAA 640 3.10%, 4/01/08 .......................................................... No Opt. Call 661,312
AAA 535 3.30%, 4/01/09 .......................................................... No Opt. Call 555,469
AAA 2,000 Osceola Cnty. Trans., Osceola Pkwy. Proj., 5.95%, 4/01/08, MBIA ........... 01/04 @ 101 2,024,740
Palm Beach Cnty. Sch. Brd., COP, Ser. D, FSA,
AAA 1,770 3.00%, 8/01/08 .......................................................... No Opt. Call 1,811,931
AAA 850 3.30%, 8/01/09 .......................................................... No Opt. Call 876,469
AAA 7,085 Pasco Cnty. Solid Wst. Disp. & Res. Rec. Sys., 6.00%, 4/01/09, FGIC ....... 01/04 @ 101 7,168,178
Polk Cnty. Sch. Brd., COP, Ser. A, FSA,
AAA 2,000 3.20%, 1/01/08 .......................................................... No Opt. Call 2,064,320
AAA 2,000 3.375%, 1/01/09 ......................................................... No Opt. Call 2,070,500
AAA 1,020 Sebring Wtr. & Wstwtr., 3.625%, 1/01/09, FGIC ............................. No Opt. Call 1,072,693
AAA 1,000(3) Seminole Cnty. Sch. Brd., COP, Ser. A, 5.90%, 7/01/04, MBIA ............... N/A 1,043,600
AAA 2,000 Seminole Cnty. Wtr. & Swr., 6.00%, 10/01/09, MBIA ......................... No Opt. Call 2,352,940
So. Florida Wtr. Mgmt. Dist., AMBAC,
AAA 1,250 3.00%, 10/01/08 ......................................................... No Opt. Call 1,282,363
AAA 1,000 3.30%, 10/01/09 ......................................................... No Opt. Call 1,033,640
AAA 1,025 St. Johns Cnty. Sch. Brd. COP, Ser. A, 3.50%, 7/01/09, MBIA ............... No Opt. Call 1,069,526
AAA 500 St. Petersburg Hlth. Facs. Auth., All Childrens Hosp., 3.10%,
11/15/08, AMBAC ......................................................... No Opt. Call 513,240
AAA 1,370 Village Ctr. Cmnty. Dev. Dist. Rec., Ser. A, 5.50%, 11/01/08, MBIA ........ No Opt. Call 1,561,101
AAA 2,370 Volusia Cnty., Sales Tax Rev., Ser. B, 4.00%, 10/01/08, MBIA .............. No Opt. Call 2,536,872
------------
197,286,366
------------
PUERTO RICO--17.5%
Puerto Rico Mun. Fin. Agcy., Ser. A, FSA,
AAA 10,000 3.50%, 8/01/08 .......................................................... No Opt. Call 10,518,400
AAA 12,000 3.75%, 8/01/09 .......................................................... No Opt. Call 12,734,520
AAA 1,500 5.625%, 8/01/10 ......................................................... 08/09 @ 101 1,729,740
------------
24,982,660
------------
TOTAL LONG-TERM INVESTMENTS (COST $209,096,168) ........................... 222,269,026
------------
---------
SHARES
(000)
---------
SHORT-TERM INVESTMENTS--0.9%
1,350 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $1,350,000) ...... N/A 1,350,000
------------
TOTAL INVESTMENTS--156.3% (COST $210,446,168) ............................. 223,619,026
Other assets in excess of liabilities--2.5% ............................... 3,632,579
Preferred shares at redemption value, including dividends payable--(58.8)% (84,169,359)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $143,082,246
============
----------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) This bond is prerefunded. Securities, held in escrow, are used to pay
interest on this security, as well as retire the bond in full at the date
indicated, typically at a premium to par.
Securities that are covered by insurance, which ensures the timely payment of
principal and interest, represent approximately 99.4% of the Trust's total
investments.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
--------------------------------------------------------------------------------
See Notes to Financial Statements.
44
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
BLACKROCK FLORIDA MUNICIPAL 2020 TERM TRUST (BFO)
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
LONG-TERM INVESTMENTS--127.8%
FLORIDA--113.2%
Brandy Creek Cmnty. Dev. Dist.,
NR $ 1,510 6.35%, 5/01/34 .......................................................... 05/13 @ 101 $ 1,525,432
NR 2,000 Spl. Assmt., Ser. B, 5.40%, 5/01/09 ..................................... No Opt. Call 2,001,240
NR 2,000 Colonial Cntry. Club Cmnty. Dev. Dist., 6.40%, 5/01/33 .................... 05/13 @ 101 2,060,340
NR 5,000 Crossings at Fleming Island, Cmnty. Dev. Dist., 6.75%, 10/01/25 ........... 10/09 @ 102 5,132,200
AAA 1,095 Deltona Util. Sys., 5.00%, 10/01/23, MBIA ................................ 10/13 @ 100 1,138,088
BBB 4,000 Escambia Cnty. Env. Impvt., 5.75%, 11/01/27 ............................... No Opt. Call 4,055,640
AAA 5,000 Escambia Cnty. Hlth. Facs. Auth., 5.95%, 7/01/20, AMBAC ................... No Opt. Call 5,302,650
BBB+ 1,955 Hillsborough Cnty. Ind. Dev. Auth., PCR, Tampa Elec. Co. Proj.,
5.50%, 10/01/23 ......................................................... 10/12 @ 100 1,947,591
AAA 1,000 Hillsborough Cnty. Sch. Brd., 5.00%, 7/01/27, MBIA ........................ 07/13 @ 100 1,026,120
AA 1,000 Lakeland Wtr. & Wstwtr., 5.00%, 10/01/27 .................................. 10/12 @ 100 1,025,020
AAA 3,000 Lee Cnty. Transp. Fac., Ser. B, 5.00%, 10/01/22, AMBAC .................... 10/14 @ 100 3,154,650
Marco Island Util. Sys., MBIA,
AAA 2,000 5.00%, 10/01/22 ......................................................... 10/13 @ 100 2,086,740
AAA 1,375 5.00%, 10/01/23 ......................................................... 10/13 @ 100 1,429,106
AAA 1,000 5.25%, 10/01/21 ......................................................... 10/13 @ 100 1,073,610
Miami Dade Cnty., MBIA,
AAA 5,365 Ser. A, Zero Coupon, 10/01/19 ........................................... 04/08 @ 55.413 2,402,340
AAA 10,000 Ser. A, Zero Coupon, 10/01/20 ........................................... 04/08 @ 52.398 4,221,500
AAA 7,560 Ser. B, Zero Coupon, 10/01/32 ........................................... 04/08 @ 26.494 1,529,161
AAA 4,000 Mun. Loan Council, Ser. A, Zero Coupon, 4/01/20, MBIA ..................... No Opt. Call 1,843,880
NR 4,000 No. Palm Beach Cnty. Impvt. Dist., Wtr. Ctrl. & Impvt. Unit Dev. 43,
6.10%, 8/01/21 .......................................................... 08/11 @ 101 4,132,720
A 4,450 Orange Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys., 5.625%, 11/15/32 11/12 @ 101 4,605,172
Palm Coast Florida Util. Sys., MBIA,
AAA 1,770 5.00%, 10/01/22 ......................................................... 10/13 @ 100 1,846,765
AAA 1,485 5.00%, 10/01/23 ......................................................... 10/13 @ 100 1,543,435
AAA 1,500 5.00%, 10/01/24 ......................................................... 10/13 @ 100 1,551,840
AAA 2,760 Polk Cnty. Florida Util. Sys., 5.00%, 10/01/23, FGIC ...................... 10/13 @ 100 2,868,606
NR 4,765 Sterling Hill Comnty. Dev. Dist., 6.10%, 5/01/23 .......................... 05/13 @ 101 4,810,792
NR 3,140 Stevens Plantation Impvt. Proj., 6.375%, 5/01/13 .......................... No Opt. Call 3,169,139
NR 1,250 Sumter Cnty. Indl. Dev. Auth., No. Sumter Util. Co. LLC, 6.80%, 10/01/32 .. 10/09 @ 100 1,265,025
Tohopekaliga Wtr. Auth., FSA,
AAA 3,630 Ser. A, 5.00%, 10/01/21 ................................................. 10/13 @ 100 3,810,883
AAA 3,810 Ser. A, 5.00%, 10/01/22 ................................................. 10/13 @ 100 3,975,239
AAA 2,000 Ser. A, 5.00%, 10/01/23 ................................................. 10/13 @ 100 2,078,700
AAA 1,975 Ser. B, 5.00%, 10/01/22 ................................................. 10/13 @ 100 2,060,656
AAA 1,180 Ser. B, 5.00%, 10/01/23 ................................................. 10/13 @ 100 1,226,433
NR 2,000 Village Cmnty. Dev. Dist. No. 5, Spl. Assmt. Rev., Ser. A, 6.00%, 5/01/22 . 05/13 @ 101 2,017,800
Village Ctr. Cmnty. Dev. Dist.,
AAA 5,000 5.25%, 10/01/23, MBIA ................................................... 10/13 @ 101 5,305,550
NR 2,000 Ser. B, 6.35%, 1/01/18 .................................................. 01/14 @ 100 2,097,600
------------
91,307,923
------------
PUERTO RICO--14.6%
Children's Trust Fund, Tobacco Settlement Rev.,
BBB 2,015 5.50%, 5/15/39 .......................................................... 05/12 @ 100 1,879,088
BBB 10,500 5.625%, 5/15/43 ......................................................... 05/12 @ 100 9,893,835
------------
11,772,923
------------
TOTAL LONG-TERM INVESTMENTS (COST $101,113,671) ........................... 103,080,846
------------
See Notes to Financial Statements.
45
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
SHORT-TERM INVESTMENTS--35.9%
ALABAMA--3.7%
A1 $ 3,000(3) Columbia Indl. Dev. Brd., PCR., Ser. B, 1.30%, 1/02/04, FRDD .............. $ 3,000,000
------------
CALIFORNIA--7.4%
A1+ 3,000(3) California St., GO, Ser. A-2, 1.27%, 1/02/04, FRDD ........................ 3,000,000
A1+ 3,000(3) Los Angeles Regl. Arpt. Impvt. Corp., Lease Rev., 1.19%, 1/02/04, FRDD ... 3,000,000
------------
6,000,000
------------
GEORGIA--3.7%
A1+ 3,000(3) Mun. Elec. Auth., Proj. 1, Ser. C, 1.05%, 1/07/04, MBIA, FRWD ............. 3,000,000
------------
KANSAS--3.6%
A1+ 2,900(3) Kansas St. Dept. Transp. Hwy, Ser. B-1, 1.16%, 1/02/04, FRDD .............. 2,900,000
------------
MASSACHUSETTS--2.2%
A1+ 1,800(3) Massachusetts St. Dev. Fin. Agcy., Boston Univ., Ser. R-4, 1.16%, 1/02/04,
XLCA, FRDD .............................................................. 1,800,000
------------
NEW YORK--4.1%
A1+ 3,260(3) New York City, GO, Ser. B-2, 1.17%, 1/02/04, FRDD ......................... 3,260,000
------------
TEXAS--7.1%
A1+ 2,700(3) Brownsville Util. Sys., Ser. A, 1.10%, 1/07/04, MBIA, FRWD ................ 2,700,000
A1+ 3,000(3) Lower Neches Valley Auth., Ind. Dev. Corp., Ser. A, 1.20%, 1/02/04, FRDD .. 3,000,000
------------
5,700,000
------------
PUERTO RICO--4.1%
A1 3,300(3) Puerto Rico Comnwlth. Govt. Dev. Bank, 1.06%, 1/07/04, MBIA, FRWD ......... 3,300,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $28,960,000) ........................... 28,960,000
------------
TOTAL INVESTMENTS--163.7% (COST $130,073,671) ............................. 132,040,846
Liabilities in excess of other assets--(3.1)% ............................. (2,480,731)
Preferred shares at redemption value, including dividends payable--(60.6)% (48,905,424)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $ 80,654,691
============
----------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) For purposes of amortized cost valuation, the maturity date of this
instrument is considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
FRDD -- Floating Rate Daily Demand
FRWD -- Floating Rate Weekly Demand
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
XLCA -- XL Capital Assurance
--------------------------------------------------------------------------------
See Notes to Financial Statements.
46
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST (BLN)
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
LONG-TERM INVESTMENTS--152.3%
Albany Cnty., GO, FGIC,
AAA $ 1,515 3.50%, 6/01/08 .......................................................... No Opt. Call $ 1,590,735
AAA 2,030 3.50%, 6/01/09 .......................................................... No Opt. Call 2,124,192
AAA 1,075(3) Babylon, GO, Ser. A, 5.875%, 1/15/04, AMBAC ............................... N/A 1,097,822
AAA 1,000 Bath Central Sch. Dist., 4.00%, 6/15/08, FGIC ............................. No Opt. Call 1,071,440
AAA 2,250 Central Square Central Sch. Dist., 3.75%, 5/15/09, FGIC ................... No Opt. Call 2,381,558
1,960 East Greenbush Central Sch. Dist., Ser. C, 4.00%, 6/15/09, FSA ............ No Opt. Call 2,101,081
Elmira City Sch. Dist., FGIC,
AAA 2,125 3.25%, 6/15/08 .......................................................... No Opt. Call 2,209,830
AAA 1,500 3.25%, 6/15/09 .......................................................... No Opt. Call 1,551,150
Erie Cnty., GO,
AAA 3,825 Pub. Impvt., Ser. A, 3.25%, 9/01/09, FGIC ............................... No Opt. Call 3,929,728
AAA 1,000 Pub. Impvt., Ser. A, 3.75%, 10/01/08, FGIC .............................. No Opt. Call 1,057,900
AAA 785 Ser. B, 5.70%, 5/15/08, MBIA ............................................ 05/04 @ 102 812,538
AAA 1,185 Evans & Brant Central Sch. Dist., Ser. C, 3.75%, 12/15/08, FGIC ........... No Opt. Call 1,259,335
Fayetteville-Manlius Central Sch. Dist., GO, FGIC,
AAA 1,125 3.75%, 6/15/09 .......................................................... No Opt. Call 1,191,769
AAA 1,000 4.00%, 6/15/08 .......................................................... No Opt. Call 1,071,440
AAA 1,500 Hempstead Township, GO, Ser. B, 4.00%, 8/01/09, MBIA ...................... No Opt. Call 1,602,315
AAA 1,070 Highland Central Sch. Dist., GO, 3.50%, 6/15/09, FSA ...................... No Opt. Call 1,119,990
AAA 12,500 Long Island Pwr. Auth., Elec. Sys., 5.00%, 4/01/08, MBIA .................. No Opt. Call 13,796,250
Lowville Central Sch. Dist., GO, FGIC,
AAA 1,255 3.30%, 6/15/08 .......................................................... No Opt. Call 1,307,748
AAA 1,305 3.60%, 6/15/09 .......................................................... No Opt. Call 1,372,560
Met. Transp. Auth.,
AAA 12,000 Ser. A, 3.50%, 11/15/09, FSA ............................................ No Opt. Call 12,508,320
AAA 26,075 Ser. K, 6.00%, 7/01/08, MBIA ............................................ ETM 30,322,096
AAA 2,500 Commuter Fac. Rev., Ser. A, 6.10%, 7/01/08, MBIA ........................ ETM 2,917,825
AAA 1,500 Middletown Sch. Dist., GO, Ser. A, 3.00%, 11/01/09, FSA ................... No Opt. Call 1,526,235
Monroe Cnty., GO, Pub. Impvt., FGIC,
AAA 1,225 4.00%, 3/01/09 .......................................................... No Opt. Call 1,308,692
AAA 2,095 4.00%, 3/01/10 .......................................................... No Opt. Call 2,226,189
Mt. Sinai Union Free Sch. Dist., AMBAC,
AAA 935 6.00%, 2/15/08 .......................................................... No Opt. Call 1,071,847
AAA 930 6.10%, 2/15/09 .......................................................... No Opt. Call 1,085,998
AAA 1,075 6.10%, 2/15/10 .......................................................... No Opt. Call 1,267,554
New Paltz Central Sch. Dist., GO, FGIC,
AAA 500 3.125%, 6/01/08 ......................................................... No Opt. Call 517,185
AAA 610 3.50%, 6/01/09 .......................................................... No Opt. Call 638,304
AAA 3,000 New York, GO, Ser. A, 4.00%, 3/15/09, FSA ................................. No Opt. Call 3,206,430
New York City, GO,
AAA 1,000 Ser. A, 5.20%, 8/01/10, FSA ............................................. 08/08 @ 101 1,116,200
AAA 4,720 Ser. C, 4.75%, 8/15/09, XLCA ............................................ 08/08 @ 101 5,140,127
AAA 12,755 Ser. C, 5.00%, 8/01/08, FSA ............................................. No Opt. Call 14,096,061
AAA 45 Ser. C-1, 6.25%, 8/01/10, FSA ........................................... 01/04 @ 100.75 45,500
AAA 50 Ser. C-1, 6.375%, 8/01/08, MBIA ......................................... 01/04 @ 100.75 50,560
AAA 6,895 Ser. E, 6.20%, 8/01/08, MBIA ............................................ No Opt. Call 7,958,830
New York City Hlth. & Hosp. Corp., Hlth. Sys., Ser. A,
AAA 2,810 3.75%, 2/15/09, FSA ..................................................... No Opt. Call 2,947,718
AAA 2,000 5.00%, 2/15/08, AMBAC ................................................... No Opt. Call 2,201,380
New York City Mun. Wtr. Fin. Auth., Ser. A,
AAA 11,500 Zero Coupon, 6/15/09, MBIA .............................................. No Opt. Call 9,812,605
AAA 1,710 6.00%, 6/15/08, FGIC .................................................... ETM 1,985,874
New York City Transl. Fin. Auth.,
AAA 4,000 Ser. B, 4.00%, 5/01/09, MBIA ............................................ No Opt. Call 4,273,480
AAA 7,800 Ser. B, 5.25%, 5/01/11, MBIA ............................................ No Opt. Call 8,907,990
AAA 2,000 Ser. C, 5.00%, 8/01/09, FSA ............................................. No Opt. Call 2,234,940
AAA 3,300 Ser. C, 5.50%, 2/01/09, FSA ............................................. No Opt. Call 3,749,262
See Notes to Financial Statements.
47
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
LONG-TERM INVESTMENTS (CONTINUED)
New York Dorm. Auth.,
AAA $ 3,150(3) City Univ., Ser. 1, 6.125%, 7/01/04, AMBAC .............................. N/A $ 3,290,774
AAA 1,070 Hosp. Lutheran Medical, 3.00%, 2/01/09, MBIA ............................ No Opt. Call 1,084,274
AAA 1,625 Sch. Dist. Fin., Ser. C, 3.50%, 10/01/08, MBIA .......................... No Opt. Call 1,700,270
AAA 2,970 Secured Hosp., 4.00%, 2/15/09, XLCA ..................................... No Opt. Call 3,150,754
AAA 3,500 Secured Hosp., 5.00%, 2/15/10, MBIA ..................................... 02/08 @ 101.5 3,878,210
AAA 5,000 Secured Hosp., 5.125%, 2/15/09, FSA ..................................... 02/08 @ 101.5 5,537,550
AAA 1,600 St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/07, FGIC ...................... No Opt. Call 1,780,416
AAA 2,500 St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/08, AMBAC ..................... No Opt. Call 2,823,425
AAA 5,000 St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/08, FGIC ...................... No Opt. Call 5,646,850
AAA 6,000 St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/08, CONNIE LEE ................ No Opt. Call 6,776,220
AAA 5,000 St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/09, AMBAC ..................... No Opt. Call 5,717,150
AAA 500 W.K. Nursing Home, 5.65%, 8/01/09 ....................................... 08/06 @ 102 537,125
AAA 1,000 Winthrop Univ. Hosp. Assoc., Ser. A, 4.125%, 7/01/08, AMBAC ............. No Opt. Call 1,070,380
New York Env. Facs. Corp.,
AAA 1,630 Clean Wtr. & Drinking, 3.875%, 4/15/10 .................................. No Opt. Call 1,730,033
AAA 6,000 Mun. Wtr. Proj., 4.00%, 6/15/09 ......................................... No Opt. Call 6,435,000
AAA 4,170(3) PCR, Ser. D, 6.60%, 11/15/04 ............................................ N/A 4,449,807
AAA 830 PCR, Ser. D, 6.60%, 5/15/08 ............................................. 11/04 @ 102 883,228
New York Hsg. Fin. Agcy.,
AAA 1,345 Hsg. Proj. Mtge., Ser. A, 5.80%, 5/01/09, FSA ........................... 05/06 @ 102 1,437,146
AAA 4,585 Hsg. Proj. Mtge., Ser. A, 5.80%, 11/01/09, FSA .......................... 05/06 @ 102 4,898,064
AAA 3,865 Multifamily Mtge. Hsg., Ser. C, 6.30%, 8/15/08 .......................... 01/04 @ 101 3,890,779
New York Med. Care Fac. Fin. Agcy.,
AAA 3,000 Mental Hlth. Fac., 5.25%, 8/15/07, FGIC ................................. 02/04 @ 102 3,074,010
AAA 5,000(3) New York Hosp., Ser. A, 6.50%, 2/15/05, AMBAC ........................... N/A 5,397,700
AAA 250 New York Pwr. Auth., Ser. CC, 5.125%, 1/01/11, MBIA ....................... ETM 284,100
New York Thruway Auth.,
AAA 4,955 Ser. A, 3.75%, 3/15/09, MBIA ............................................ No Opt. Call 5,199,133
AAA 2,000 Hwy. & Brdg. Trust Fund, Ser. A, 3.90%, 4/01/09, FSA .................... No Opt. Call 2,124,960
AAA 5,000(3) Hwy. & Brdg. Trust Fund, Ser. A, 5.625%, 4/01/04, AMBAC ................. N/A 5,155,300
AAA 2,000 Hwy. & Brdg. Trust Fund, Ser. B, 4.00%, 4/01/09, MBIA ................... No Opt. Call 2,134,700
AAA 2,900 Hwy. & Brdg. Trust Fund, Ser. B, 5.25%, 4/01/11, MBIA ................... No Opt. Call 3,307,711
AAA 1,000(3) Hwy. & Brdg. Trust Fund, Ser. B, 6.00%, 4/01/04, FGIC ................... N/A 1,031,940
AAA 6,940(3) Svc. Contract Rev., Local Hwy. & Brdg., 5.75%, 4/01/04, MBIA ............ N/A 7,157,569
AAA 3,410 Svc. Contract Rev., Local Hwy. & Brdg., Ser. A, 5.375%, 4/01/09, MBIA ... 04/08 @ 101 3,833,897
New York Urban Dev. Corp., Correctional Facs., AMBAC,
AAA 2,000 Ser. A, 5.50%, 1/01/09 .................................................. No Opt. Call 2,268,080
AAA 5,140 Svc. Contract Rev., Ser. B, 5.25%, 1/01/10 .............................. 01/09 @ 101 5,775,869
AAA 1,040 Newfane Central Sch. Dist., GO, 3.00%, 6/01/08, FSA ....................... No Opt. Call 1,070,326
So. Seneca Central Sch. Dist., GO, MBIA,
AAA 1,185 3.20%, 6/15/08 .......................................................... No Opt. Call 1,229,817
AAA 1,045 3.375%, 6/15/09 ......................................................... No Opt. Call 1,087,228
AAA 1,030 Sodus Central Sch. Dist., 4.00%, 6/15/09, FGIC ............................ No Opt. Call 1,104,139
AAA 5,000 Suffolk Cnty. Ind. Dev. Agcy., 6.00%, 2/01/08, FGIC ....................... No Opt. Call 5,712,600
AAA 1,675 Suffolk Cnty. Wtr. Auth., Ser. C, 5.75%, 6/01/08, AMBAC ................... ETM 1,697,077
AAA 2,265 Triborough Brdg. & Tunl. Auth., Ser. A, 5.125%, 1/01/11, MBIA ............. ETM 2,553,584
------------
TOTAL LONG-TERM INVESTMENTS (COST $270,532,873) ........................... 293,683,778
------------
See Notes to Financial Statements.
48
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
SHORT-TERM INVESTMENTS--2.3%
GEORGIA--1.00%
A1+ $ 2,000(4) Mun. Elec. Auth., Proj. 1, Ser. C, 1.05%, 1/07/04, MBIA, FRWD ............. $ 2,000,000
------------
NEW YORK--0.2%
A1+ 300(4) New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys., Ser. G, 1.27%,
1/02/04, FGIC, FRDD ..................................................... 300,000
------------
-----------
SHARES
(000)
-----------
MONEY MARKET FUND--1.1%
2,150 AIM Tax Free Investment Co. Cash Reserve Portfolio ........................ 2,150,000
-------------
TOTAL SHORT-TERM INVESTMENTS (COST $4,450,000) ............................ 4,450,000
-------------
TOTAL INVESTMENTS--154.6% (COST $274,982,873) ............................. $ 298,133,778
Other assets in excess of liabilities--2.2% ............................... 4,226,078
Preferred shares at redemption value, including dividends payable--(56.8)% (109,558,756)
-------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $ 192,801,100
=============
----------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) This bond is prerefunded. Securities, held in escrow, are used to pay
interest on this security, as well as retire the bond in full at the date
indicated, typically at a premium to par.
(4) For purposes of amortized cost valuation, the maturity date of this
instrument is considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
Securities that are covered by insurance, which ensures the timely payment of
principal and interest, represent approximately 93.3% of the Trust's total
investments.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
CONNIE LEE -- College Construction Loan Insurance Association
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
FRDD -- Floating Rate Daily Demand
FRWD -- Floating Rate Weekly Demand
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
XLCA -- XL Capital Assurance
--------------------------------------------------------------------------------
See Notes to Financial Statements.
49
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
BLACKROCK NEW YORK MUNICIPAL 2018 TERM TRUST (BLH)
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
LONG-TERM INVESTMENTS--152.7%
NEW YORK--137.0%
Aaa $ 1,320 East Rochester Hsg. Auth., 5.20%, 12/20/24 ................................ 12/11 @ 101 $ 1,364,418
BBB 2,450 Jefferson Cnty. Ind. Dev. Agcy., Sld. Wst. Disp. Rev., 5.20%, 12/01/20 .... 12/13 @ 100 2,460,731
AAA 1,900 Long Island Pwr. Auth., Elec. Sys. Rev., Zero Coupon, 6/01/18, FSA ........ No Opt. Call 1,015,607
AAA 5,000 Met. Transp. Auth., Ser. A, 5.125%, 11/15/21, FGIC ........................ 11/12 @ 100 5,321,250
New York City, GO,
A 4,000 Ser. B, 5.375%, 12/01/20 ................................................ 12/11 @ 100 4,195,560
A+ 5,000 Ser. G, 5.75%, 8/01/18 .................................................. 08/12 @ 100 5,467,400
A- 4,000 New York City Ind. Dev. Agcy., Civic Fac. Rev., YMCA of Greater
New York Proj., 5.25%, 8/01/21 .......................................... 02/11 @ 100 4,099,280
New York City Transl. Fin. Auth.,
AA+ 3,000 Ser. B, 5.00%, 5/01/18 .................................................. 11/11 @ 101 3,196,500
AA+ 1,895 Ser. C, 5.00%, 5/01/19 .................................................. 05/09 @ 101 1,995,075
New York Dorm. Auth.,
AA 1,000 Brooklyn Law Sch., Ser. A, 5.50%, 7/01/18, RAA .......................... 07/13 @ 100 1,090,600
AA- 1,800 City Univ., Ser. A, 5.125%, 7/01/21 ..................................... 07/11 @ 100 1,877,868
AA- 3,750 Mental Hlth. Svcs., Ser. A, 5.00%, 2/15/18 .............................. 02/08 @ 102 3,884,850
AAA 1,030(3) Mental Hlth. Svcs., Ser. B, 5.50%, 08/15/11, MBIA ....................... N/A 1,207,789
AAA 1,590 Mental Hlth. Svcs., Ser. B, 5.50%, 8/15/20, MBIA ........................ 08/11 @ 100 1,727,837
AA- 3,230 Upstate Cmnty. Colleges, Ser. A, 5.00%, 7/01/19 ......................... 07/09 @ 101 3,378,709
AAA 1,000 Willow Towers Inc. Proj., 5.25%, 2/01/22 ................................ 08/12 @ 101 1,045,110
AA- 3,500 New York Urban Dev. Corp., Correctional Facs., 5.00%, 1/01/19 ............. 01/08 @ 102 3,606,925
AA 4,180 Niagra Cnty. Ind. Dev. Agcy., Civic Fac. Rev., Niagra Univ. Proj.,
Ser. A, 5.35%, 11/01/23, RAA ............................................ 11/11 @ 101 4,390,379
AA 4,130 Oneida Hlth. Care Corp., Residential Hlth. Care Proj., 5.30%, 2/01/21 ..... 02/11 @ 101 4,358,182
AA 3,875 Orange Cnty. Ind. Dev. Agcy., Civic Fac. Rev., St. Lukes Hosp. Newburg Proj.,
Ser. A, 5.375%, 12/01/21, RAA ........................................... 12/11 @ 101 4,136,989
Port Auth. of NY & NJ,
AAA 3,885 Ser. 126, 5.00%, 11/15/18, FGIC ......................................... 05/12 @ 101 4,121,752
Caa2 2,600 Spec. Oblig., Cont'l/Eastern Proj. LaGuardia, 9.125%, 12/01/15 .......... 01/04 @ 100 2,592,148
BBB 4,000 Rockland Tobacco Asset Sec. Corp., Tobacco Settlement Rev., 5.625%, 8/15/35 08/12 @ 100 3,826,920
A2 3,000 TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32 ............... 07/12 @ 100 3,000,180
AAA 3,710 Westchester Cnty. Ind. Dev. Agy., Civiv Fac. Rev., Ser. A, 5.125%,
12/01/22, AMBAC ......................................................... 12/11 @ 102 3,943,767
-------------
77,305,826
-------------
DELAWARE--7.6%
NR 4,000(4) Charter Mac Equity Issuer Trust, Ser. A, 6.625%, 6/30/49 .................. 06/09 @ 100 4,274,760
-------------
See Notes to Financial Statements.
50
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
PUERTO RICO--8.1%
BBB $ 2,000 Children's Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43 ........... 05/12 @ 100 $ 1,884,540
BBB+ 2,500 Puerto Rico Pub. Fin. Corp., Ser. E, 5.70%, 8/01/25 ....................... 02/10 @ 100 2,682,025
------------
4,566,565
------------
TOTAL LONG-TERM INVESTMENTS (COST $81,654,126) ............................ 86,147,151
------------
---------
SHARES
(000)
---------
MONEY MARKET FUND--0.4%
200 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $200,000) ........ N/A 200,000
------------
TOTAL INVESTMENTS--153.1% (COST $81,854,126) .............................. 86,347,151
Other assets in excess of liabilities--2.6% ............................... 1,468,933
Preferred shares at redemption value, including dividends payable--(55.7)% (31,400,768)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $ 56,415,316
============
----------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) This bond is prerefunded. Securities, held in escrow, are used to pay
interest on this security, as well as retire the bond in full at the date
indicated, typically at a premium to par.
(4) Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A
under that Act, to qualified institutional buyers. As of December 31,
2003, the Trust held 7.6% of its net assets, with a current market value
of $4,274,760, in securities restricted as to resale.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
RAA -- Radian Asset Assurance
--------------------------------------------------------------------------------
See Notes to Financial Statements.
51
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2003
BLACKROCK PENNSYLVANIA STRATEGIC MUNICIPAL TRUST (BPS)
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
==================================================================================================================================
LONG-TERM INVESTMENTS--140.2%
PENNSYLVANIA--120.4%
AAA $ 2,150(3) Allegheny Cnty. Port Auth., 6.125%, 03/01/09, MBIA ........................ N/A $ 2,543,450
AAA 1,800 Allegheny Cnty. San. Auth., 5.375%, 12/01/24, MBIA ........................ 12/07 @ 102 1,909,962
BBB+ 1,400 Bucks Cnty. Ind. Dev. Auth., Pennswood Vlg. Proj., Ser. A, 6.00%, 10/01/34 10/12 @ 101 1,443,260
NR 1,250 Dauphin Cnty. Gen. Auth., Hotel & Conf. Ctr., Hyatt Regency, 6.20%, 1/01/19 01/09 @ 102 1,135,525
NR 2,500 Delaware Cnty. Hlth. Facs. Auth., Mercy Hlth. Corp. Proj., 6.00%, 12/15/26 ETM 2,762,900
AAA 1,250 Delaware Cnty. Ind. Dev. Auth., Wtr. Facs., 6.00%, 6/01/29, FGIC .......... 06/09 @ 101 1,388,525
Lehigh Cnty. Gen. Purp. Auth., Kidspeace Oblig. Grp.,
Ba2 1,250 6.00%, 11/01/23 ......................................................... 11/08 @ 102 1,224,037
Ba2 1,250 6.20%, 11/01/14 ......................................................... 11/09 @ 102 1,238,975
BBB+ 1,250 Montgomery Cnty. Ind. Dev. Auth., Retirement Cmnty. Rev., 5.25%, 11/15/28 . 11/08 @ 101 1,198,175
Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Ser. A,
A3 1,000 6.25%, 11/01/31 ......................................................... 05/11 @ 101 999,320
A3 1,000 Exempt Facs. Rev., 6.375%, 11/01/41 ..................................... 05/11 @ 101 1,002,830
Pennsylvania Higher Edl. Facs. Auth.,
AA- 1,250 Lafayette Coll. Proj., 6.00%, 5/01/30 ................................... 05/10 @ 100 1,415,075
AA 310 Philadelphia Univ., 6.10%, 6/01/30, RAA ................................. 06/10 @ 100 339,813
Pennsylvania Hsg. Fin. Agcy., Sngl. Fam. Mtge.,
AA+ 1,130 Ser. 60A, 5.85%, 10/01/27 ............................................... 04/07 @ 101.5 1,168,420
AA+ 3,200 Ser. 68A, 6.10%, 4/01/21 ................................................ 10/09 @ 100 3,349,024
A 1,000 Pennsylvania St. Higher Edl. Facs. Auth., Univ. of Pennsylvania Hlth. Svcs.,
Ser. A, 5.75%, 1/01/22 .................................................. 01/06 @ 101 1,022,120
AAA 1,250 Philadelphia Arpt. Sys., Ser. B, 5.40%, 6/15/27, FGIC ..................... 06/07 @ 102 1,290,588
AAA 1,250 Philadelphia Pkg. Auth., Pkg. Rev., 5.625%, 9/01/18, FSA .................. 09/09 @ 101 1,390,412
Philadelphia Sch. Dist., GO,
AAA 1,190 Ser. B, 5.50%, 9/01/25, AMBAC ........................................... 09/05 @ 101 1,252,463
AAA 2,800 Ser. C, 5.50%, 3/01/24, MBIA ............................................ 03/10 @ 100 3,018,652
AAA 3,050 Ser. C, 5.75%, 3/01/29, MBIA ............................................ 03/10 @ 100 3,366,072
AAA 2,250 Southeastern Trans. Auth., 5.375%, 3/01/17, FGIC .......................... 03/07 @ 102 2,448,337
AAA 1,750 Washington Cnty. Auth., Cap. Fdg. & Equip. Proj., 6.15%, 12/01/29, AMBAC .. No Opt. Call 2,143,645
------------
39,051,580
------------
MARYLAND--13.3%
NR 4,000(4) MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 06/30/49 ................. 06/09 @ 100 4,322,000
------------
PUERTO RICO--6.5%
BBB+ 2,000 Puerto Rico Pub. Fin. Corp., Ser. E, 5.50%, 8/01/29 ....................... 02/12 @ 100 2,099,740
------------
TOTAL LONG-TERM INVESTMENTS (COST $41,790,198) ............................ 45,473,320
------------
----------
SHARES
(000)
----------
MONEY MARKET FUNDS--9.9%
1,600 AIM Tax Free Investment Co. Cash Reserve Portfolio ........................ N/A 1,600,000
1,600 SSgA Tax Free Money Mkt. Fund ............................................. N/A 1,600,000
------------
TOTAL MONEY MARKET FUNDS (COST $3,200,000) ................................ 3,200,000
TOTAL INVESTMENTS--150.1% (COST $44,990,198) .............................. 48,673,320
Other assets in excess of liabilities--3.9% ............................... 1,265,443
Preferred shares at redemption value, including dividends payable--(54.0)% (17,503,738)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................ $ 32,435,025
============
----------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) This bond is prerefunded. Securities, held in escrow, are used to pay
interest on this security, as well as retire the bond in full at the date
indicated, typically at a premium to par.
(4) Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A
under that Act, to qualified institutional buyers. As of December 31,
2003, the Trust held 13.3% of its net assets, with a current market value
of $4,322,000, in securities restricted as to resale.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
RAA -- Radian Asset Assurance
--------------------------------------------------------------------------------
See Notes to Financial Statements.
52
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2003
INSURED INSURED MUNICIPAL
MUNICIPAL 2008 MUNICIPAL MUNICIPAL 2018 MUNICIPAL 2020 TARGET
TERM TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST
ASSETS (BRM) (BMT) (BPK) (BKK) (BMN)
------------ ------------ ------------ ------------ ------------
Investments at value(1) ......................... $733,957,518 $461,259,359 $380,805,916 $468,919,159 $789,389,169
------------ ------------ ------------ ------------ ------------
Cash ............................................ 382,587 505,160 526,186 24,400 516,385
Receivable for investments sold ................. 346,092 -- 157,093 -- 165,306
Interest receivable ............................. 9,581,165 5,548,161 4,446,564 4,329,999 7,904,984
Other assets .................................... 131,595 90,657 28,408 6,617 111,417
------------ ------------ ------------ ------------ ------------
744,398,957 467,403,337 385,964,167 473,280,175 798,087,261
------------ ------------ ------------ ------------ ------------
LIABILITIES
Payable to custodian ............................ -- -- -- -- --
Payable for investments purchased ............... -- 1,557,940 -- -- --
Dividends payable--common shares ................ -- -- 1,034,022 1,580,987 --
Investment advisory fee payable ................. 221,765 138,016 130,000 199,283 237,035
Administration fee payable ...................... 63,361 39,433 -- -- 94,705
Deferred Directors/Trustees fees ................ 97,662 76,305 16,696 -- 82,014
Other accrued expenses .......................... 150,854 139,946 125,661 278,876 223,337
------------ ------------ ------------ ------------ ------------
533,642 1,951,640 1,306,379 2,059,146 637,091
------------ ------------ ------------ ------------ ------------
PREFERRED SHARES AT REDEMPTION VALUE
$25,000 liquidation value per share, including
dividends payable(2),(3) ...................... 271,080,787 170,424,011 137,625,996 177,623,122 299,167,156
------------ ------------ ------------ ------------ ------------
NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS ........................... $472,784,528 $295,027,686 $247,031,792 $293,597,907 $498,283,014
============ ============ ============ ============ ============
COMPOSITION OF NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS:
Par value ..................................... $ 272,071 $ 258,856 $ 15,908 $ 20,237 $ 454,106
Paid-in capital in excess of par .............. 377,589,494 239,251,319 225,641,716 287,166,281 420,179,598
Undistributed (Distributions in excess of)
net investment income ....................... 41,560,348 20,108,157 10,248,439 (329,584) 33,592,893
Accumulated net realized loss ................. (67,562) (1,308) (2,036,899) (482,817) 26,444
Net unrealized appreciation (depreciation) .... 53,430,177 35,410,662 13,162,628 7,223,790 44,029,973
------------ ------------ ------------ ------------ ------------
Net assets applicable to common shareholders,
December 31, 2003 ............................. $472,784,528 $295,027,686 $247,031,792 $293,597,907 $498,283,014
============ ============ ============ ============ ============
Net asset value per common share(4) ............. $17.38 $11.40 $15.53 $14.51 $10.97
====== ====== ====== ====== ======
(1)Investments at cost .......................... $680,527,340 $425,848,697 $367,643,288 $461,695,369 $745,359,196
(2)Preferred shares outstanding ................. 10,840 6,816 5,504 7,104 11,964
(3)Par value per share .......................... 0.01 0.01 0.001 0.001 0.01
(4)Common shares outstanding .................... 27,207,093 25,885,639 15,908,028 20,236,628 45,410,639
See Notes to Financial Statements.
53
CALIFORNIA NEW YORK PENNSYLVANIA
STRATEGIC INSURED CALIFORNIA FLORIDA INSURED FLORIDA INSURED NEW YORK STRATEGIC
MUNICIPAL MUNICIPAL 2008 MUNICIPAL 2018 MUNICIPAL 2008 MUNICIPAL 2020 MUNICIPAL 2008 MUNICIPAL 2018 MUNICIPAL
TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TRUST
(BSD) (BFC) (BJZ) (BRF) (BFO) (BLN) (BLH) (BPS)
------------ ------------ ------------ ------------ ------------ ------------ ----------- -----------
$175,064,089 $280,403,216 $148,946,453 $223,619,026 $132,040,846 $298,133,778 $86,347,151 $48,673,320
------------ ------------ ------------ ------------ ------------ ------------ ----------- -----------
500,720 -- 514,114 514,988 86,582 508,346 536,323 863,991
-- -- -- -- -- -- -- --
2,391,939 3,478,464 1,613,859 3,267,775 1,172,769 3,909,723 1,215,285 612,113
33,230 69,517 9,805 46,486 1,798 57,423 7,311 19,882
------------ ------------ ------------ ------------ ------------ ------------ ----------- -----------
177,989,978 283,951,197 151,084,231 227,448,275 133,301,995 302,609,270 88,106,070 50,169,306
------------ ------------ ------------ ------------ ------------ ------------ ----------- -----------
-- 272,170 -- -- -- -- -- --
-- -- -- -- 3,154,860 -- -- --
576,375 -- 394,023 -- 417,160 -- 222,523 149,076
52,339 84,462 50,902 67,573 54,863 89,791 29,724 14,497
-- 24,132 -- 19,308 -- 25,655 -- --
19,865 36,659 5,264 28,900 -- 37,520 4,641 10,417
82,008 94,027 58,986 80,889 114,997 96,448 33,098 56,553
------------ ------------ ------------ ------------ ------------ ------------ ----------- -----------
730,587 511,450 509,175 196,670 3,741,880 249,414 289,986 230,543
------------ ------------ ------------ ------------ ------------ ------------ ----------- -----------
62,013,242 104,586,175 55,528,256 84,169,359 48,905,424 109,558,756 31,400,768 17,503,738
------------ ------------ ------------ ------------ ------------ ------------ ----------- -----------
$115,246,149 $178,853,572 $ 95,046,800 $143,082,246 $ 80,654,691 $192,801,100 $56,415,316 $32,435,025
============ ============ ============ ============ ============= ============ =========== ===========
$ 7,242 $ 104,071 $ 6,433 $ 87,071 $ 5,562 $ 112,571 $ 3,633 $ 2,015
102,593,420 144,174,166 91,213,865 120,583,337 78,885,738 155,947,555 51,482,732 28,362,834
4,314,946 14,613,272 2,852,269 9,238,980 (203,764) 13,588,759 1,543,840 884,358
(5,481,856) (3,661) (1,486,596) -- (20) 1,310 (1,107,914) (497,304)
13,812,397 19,965,724 2,460,829 13,172,858 1,967,175 23,150,905 4,493,025 3,683,122
------------ ------------ ------------ ------------ ------------ ------------ ----------- -----------
$115,246,149 $178,853,572 $ 95,046,800 $143,082,246 $ 80,654,691 $192,801,100 $56,415,316 $32,435,025
============ ============ ============ ============ ============= ============ =========== ===========
$15.91 $17.19 $14.77 $16.43 $14.50 $17.13 $15.53 $16.09
====== ====== ====== ====== ====== ====== ====== ======
$161,251,692 $260,437,492 $146,485,624 $210,446,168 $130,073,671 $274,982,873 $81,854,126 $44,990,198
2,480 4,182 2,221 3,366 1,956 4,382 1,256 700
0.001 0.01 0.001 0.01 0.001 0.01 0.001 0.001
7,242,261 10,407,093 6,433,028 8,707,093 5,562,128 11,257,093 3,633,028 2,015,492
54
STATEMENTS OF OPERATIONS
FOR THE PERIOD(1) ENDED DECEMBER 31, 2003
INSURED INSURED MUNICIPAL
MUNICIPAL 2008 MUNICIPAL MUNICIPAL 2018 MUNICIPAL 2020 TARGET
TERM TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST
INVESTMENT INCOME (BRM) (BMT) (BPK) (BKK) (BMN)
-------------- ----------- -------------- -------------- -----------
Interest Income ............................... $33,710,604 $21,658,177 $21,532,057 $3,636,152 $33,080,661
----------- ----------- ----------- ----------- -----------
EXPENSES
Investment advisory ........................... 2,631,604 1,623,069 1,492,702 453,807 2,813,159
Administration ................................ 751,887 463,734 -- -- 562,632
Transfer agent ................................ 25,212 26,509 16,441 4,092 25,229
Custodian ..................................... 143,966 128,651 82,238 36,287 159,431
Reports to shareholders ....................... 80,864 48,614 43,499 9,765 78,780
Trustees ...................................... 78,425 41,919 34,376 10,230 72,000
Registration .................................. 31,500 31,500 31,500 7,998 36,000
Independent accountants ....................... 54,067 55,661 43,384 11,439 50,258
Legal ......................................... 58,423 40,872 29,166 10,044 101,000
Insurance ..................................... 40,122 26,565 31,485 3,649 38,456
Organization .................................. -- -- -- 15,000 --
Auction agent ................................. 705,383 429,849 357,833 45,250 747,335
Miscellaneous ................................. 102,774 78,402 41,453 10,975 154,659
----------- ----------- ----------- ----------- -----------
Total expenses .............................. 4,704,227 2,995,345 2,204,077 618,536 4,838,939
Less fees waived by Advisor ............... -- -- -- -- --
Less fees paid indirectly ................. (3,945) (2,758) (4,842) (12,572) (4,865)
----------- ----------- ----------- ----------- -----------
Net expenses ................................ 4,700,282 2,992,587 2,199,235 605,964 4,834,074
----------- ----------- ----------- ----------- -----------
Net investment income ........................... 29,010,322 18,665,590 19,332,822 3,030,188 28,246,587
----------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments ................................. 2,271,344 (104,764) 980,317 (482,817) 594,145
Futures ..................................... -- 11,604 -- -- --
----------- ----------- ----------- ----------- -----------
2,271,344 (93,160) 980,317 (482,817) 594,145
Net change in unrealized
appreciation/depreciation on:
Investments ................................. (4,173,526) 2,770,245 7,230,936 7,223,790 (7,445,940)
Futures ..................................... -- (11,672) -- -- --
----------- ----------- ----------- ----------- -----------
(4,173,526) 2,758,573 7,230,936 7,223,790 (7,445,940)
----------- ----------- ----------- ----------- -----------
Net gain (loss) ................................. (1,902,182) 2,665,413 8,211,253 6,740,973 (6,851,795)
----------- ----------- ----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO PREFERRED
SHAREHOLDERS FROM:
Net investment income ......................... (2,248,584) (1,453,010) (1,336,973) (212,799) (2,708,216)
Net realized gains ............................ (332,710) (100,766) -- -- (126,993)
----------- ----------- ----------- ----------- -----------
Total dividends and distributions ............... (2,581,294) (1,553,776) (1,336,973) (212,799) (2,835,209)
----------- ----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS
APPLICABLE TO COMMON SHAREHOLDERS
RESULTING FROM OPERATIONS ..................... $24,526,846 $19,777,227 $26,207,102 $ 9,558,362 $18,559,583
=========== =========== =========== =========== ===========
(1) Commencement of investment operations for Municipal 2020 and Florida 2020
was September 30, 2003. The other Trusts' statements are for a full year.
See Notes to Financial Statements.
55
CALIFORNIA NEW YORK PENNSYLVANIA
STRATEGIC INSURED CALIFORNIA FLORIDA INSURED FLORIDA INSURED NEW YORK STRATEGIC
MUNICIPAL MUNICIPAL 2008 MUNICIPAL 2018 MUNICIPAL 2008 MUNICIPAL 2020 MUNICIPAL 2008 MUNICIPAL 2018 MUNICIPAL
TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TRUST
(BSD) (BFC) (BJZ) (BRF) (BFO) (BLN) (BLH) (BPS)
----------- -------------- -------------- --------------- -------------- -------------- -------------- ------------
$ 9,931,690 $11,811,703 $7,680,000 $9,208,059 $ 874,803 $13,282,012 $4,444,523 $2,617,459
----------- ----------- ---------- ---------- ---------- ----------- ---------- ----------
1,034,313 997,354 591,395 798,774 124,505 1,058,780 343,640 296,345
-- 284,958 -- 228,221 -- 302,509 -- --
16,441 18,950 15,715 18,052 3,999 20,053 15,715 16,555
65,973 77,162 42,585 73,348 13,066 91,277 37,570 39,099
26,643 29,078 22,595 24,209 4,650 35,074 18,756 14,123
15,903 28,919 13,993 23,112 3,348 31,238 12,767 12,410
22,499 31,500 22,500 22,500 5,766 31,499 22,498 1,201
39,078 41,167 41,746 37,115 10,788 41,666 41,239 25,414
17,183 30,833 12,022 20,196 2,976 31,186 10,843 12,234
8,523 14,945 12,337 12,148 990 16,024 7,084 2,369
-- -- -- -- 15,000 -- -- --
159,913 274,585 145,971 219,049 12,162 287,466 85,590 52,783
28,912 47,080 30,753 41,917 7,255 48,233 23,053 17,225
----------- ----------- ---------- ---------- ---------- ----------- ---------- ----------
1,435,381 1,876,531 951,612 1,518,641 204,505 1,995,005 618,755 489,758
(430,964) -- -- -- -- -- -- (123,479)
(5,271) (6,206) (4,990) (6,665) (4,510) (6,694) (5,992) (9,093)
----------- ----------- ---------- ---------- ---------- ----------- ---------- ----------
999,146 1,870,325 946,622 1,511,976 199,995 1,988,311 612,763 357,186
----------- ----------- ---------- ---------- ---------- ----------- ---------- ----------
8,932,544 9,941,378 6,733,378 7,696,083 674,808 11,293,701 3,831,760 2,260,273
----------- ----------- ---------- ---------- ---------- ----------- ---------- ----------
(2,846,500) 643,694 35,456 278,399 (20) 445,163 (431,368) 176,317
-- -- -- -- -- 11,604 -- --
----------- ----------- ---------- ---------- ---------- ----------- ---------- ----------
(2,846,500) 643,694 35,456 278,399 (20) 456,767 (431,368) 176,317
7,762,221 (70,777) (368,473) 833,697 1,967,175 (1,000,376) 1,090,916 437,910
-- -- -- -- -- (11,672) -- --
----------- ----------- ---------- ---------- ---------- ----------- ---------- ----------
7,762,221 (70,777) (368,473) 833,697 1,967,175 (1,012,048) 1,090,916 437,910
----------- ----------- ---------- ---------- ---------- ----------- ---------- ----------
4,915,721 572,917 (333,017) 1,112,096 1,967,155 (555,281) 659,548 614,227
----------- ----------- ---------- ---------- ---------- ----------- ---------- ----------
(595,299) (692,786) (468,828) (555,799) (59,253) (917,968) (286,897) (147,231)
-- (124,259) -- (157,394) -- (56,470) -- --
----------- ----------- ---------- ---------- ---------- ----------- ---------- ----------
(595,299) (817,045) (468,828) (713,193) (59,253) (974,438) (286,897) (147,231)
----------- ----------- ---------- ---------- ---------- ----------- ---------- ----------
$13,252,966 $ 9,697,250 $5,931,533 $8,094,986 $2,582,710 $ 9,763,982 $4,204,411 $2,727,269
=========== =========== ========== ========== ========== =========== ========== ==========
56
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD(1) ENDED DECEMBER 31, 2003 AND FOR THE YEAR ENDED
DECEMBER 31, 2002
INSURED INSURED
MUNICIPAL 2008 TERM TRUST MUNICIPAL TERM TRUST
(BRM) (BMT)
--------------------------------- ---------------------------------
INCREASE IN NET ASSETS APPLICABLE TO 2003 2002 2003 2002
COMMON SHAREHOLDERS ------------ ------------ ------------ ------------
OPERATIONS:
Net investment income ............................ $ 29,010,322 $ 34,371,404 $ 18,665,590 $ 21,059,940
Net realized gain (loss) ......................... 2,271,344 2,687,741 (93,160) 3,435,689
Net change in unrealized appreciation/depreciation (4,173,526) 11,516,251 2,758,573 6,943,379
Dividends to preferred shareholders from:
Net investment income .......................... (2,248,584) (3,429,311) (1,453,010) (2,026,272)
Net realized gain .............................. (332,710) (193,351) (100,766) (401,327)
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 24,526,846 44,952,734 19,777,227 29,011,409
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
COMMON SHAREHOLDERS FROM:
Net investment income ............................ (27,680,153) (21,629,022) (16,494,099) (14,884,571)
Net realized gain ................................ (3,452,580) (1,003,044) (626,432) (2,498,663)
------------ ------------ ------------ ------------
Total dividends and distributions .................. (31,132,733) (22,632,066) (17,120,531) (17,383,234)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from the issuance of common shares .. -- -- -- --
Net proceeds from the underwriters' over-allotment
option exercised ............................... -- -- -- --
Underwriting discounts and offering costs relating
to the issuance of preferred shares ............ -- -- -- --
------------ ------------ ------------ ------------
Net proceeds from capital share transactions ..... -- -- -- --
------------ ------------ ------------ ------------
Total increase (decrease) .......................... (6,605,887) 22,320,668 2,656,696 11,628,175
------------ ------------ ------------ ------------
NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS:
Beginning of period ................................ 479,390,415 457,069,747 292,370,990 280,742,815
------------ ------------ ------------ ------------
End of period ...................................... $472,784,528 $479,390,415 $295,027,686 $292,370,990
============ ============ ============ ============
End of period undistributed (distributions in
excess of) net investment income ................. $ 41,560,348 $ 42,597,722 $ 20,108,157 $ 19,492,189
(1) Commencement of investment operations for Municipal 2020 was September 30,
2003. This information includes the initial investments by BlackRock
Funding, Inc. The other Trusts' statements are for a full year.
See Notes to Financial Statements.
57
MUNICIPAL
MUNICIPAL 2020 MUNICIPAL STRATEGIC
2018 TERM TRUST TERM TRUST TARGET TERM TRUST MUNICIPAL TRUST
(BPK) (BKK) (BMN) (BSD)
------------------------------- ------------ ------------------------------- -------------------------------
2003 2002 2003 2003 2002 2003 2002
------------ ------------ ------------ ------------ ------------ ------------ ------------
$ 19,332,822 $ 18,533,905 $ 3,030,188 $ 28,246,587 $ 31,860,076 $ 8,932,544 $ 9,124,316
980,317 (3,021,249) (482,817) 594,145 990,672 (2,846,500) 435,409
7,230,936 14,845,740 7,223,790 (7,445,940) 26,905,451 7,762,221 2,608,519
(1,336,973) (1,906,541) (212,799) (2,708,216) (3,733,411) (595,299) (837,410)
-- -- -- (126,993) (390,763) -- --
------------ ------------ ------------ ------------ ------------ ------------ ------------
26,207,102 28,451,855 9,558,362 18,559,583 55,632,025 13,252,966 11,330,834
------------ ------------ ------------ ------------ ------------ ------------ ------------
(12,408,248) (12,408,254) (3,161,973) (26,110,995) (27,169,808) (6,727,394) (6,393,453)
-- -- -- (1,117,102) (1,682,964) -- --
------------ ------------ ------------ ------------ ------------ ------------ ------------
(12,408,248) (12,408,254) (3,161,973) (27,228,097) (28,852,772) (6,727,394) (6,393,453)
------------ ------------ ------------ ------------ ------------ ------------ ------------
-- -- 264,587,501 -- -- -- --
-- -- 24,710,337 -- -- -- --
-- (40,134) (2,096,320) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------ ------------
-- -- 287,201,518 -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------ ------------
13,798,854 16,003,467 293,597,907 (8,668,514) 26,779,253 6,525,572 4,937,381
------------ ------------ ------------ ------------ ------------ ------------ ------------
233,232,938 217,229,471 -- 506,951,528 480,172,275 108,720,577 103,783,196
------------ ------------ ------------ ------------ ------------ ------------ ------------
$247,031,792 $233,232,938 $293,597,907 $498,283,014 $506,951,528 $115,246,149 $108,720,577
============ ============ ============ ============ ============ ============ ============
$ 10,248,439 $ 4,664,860 $ (329,584) $ 33,592,893 $ 34,371,156 $ 4,314,946 $ 2,705,894
58
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE PERIOD(1) ENDED DECEMBER 31, 2003 AND FOR THE YEAR ENDED
DECEMBER 31, 2002
CALIFORNIA INSURED CALIFORNIA
MUNICIPAL 2008 TERM TRUST MUNICIPAL 2018 TERM TRUST
(BFC) (BJZ)
--------------------------------- ---------------------------------
INCREASE IN NET ASSETS APPLICABLE TO 2003 2002 2003 2002
COMMON SHAREHOLDERS ------------ ------------ ------------ ------------
OPERATIONS:
Net investment income ............................ $ 9,941,378 $ 12,296,157 $ 6,733,378 $ 6,650,751
Net realized gain (loss) ......................... 643,694 2,132,299 35,456 (1,522,082)
Net change in unrealized appreciation/depreciation (70,777) 2,845,882 (368,473) 6,517,313
Dividends to preferred shareholders from:
Net investment income .......................... (692,786) (1,144,907) (468,828) (730,547)
Net realized gain .............................. (124,259) (282,979) -- --
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations 9,697,250 15,846,452 5,931,533 10,915,435
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
COMMON SHAREHOLDERS FROM:
Net investment income ............................ (10,396,554) (8,379,547) (4,728,270) (4,728,272)
Net realized gain ................................ (944,964) (1,455,598) -- --
------------ ------------ ------------ ------------
Total dividends and distributions .................. (11,341,518) (9,835,145) (4,728,270) (4,728,272)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from the issuance of common shares .. -- -- -- --
Net proceeds from the underwriter's over-allotment
option exercised ............................... -- -- -- --
Underwriting discounts and offering costs relating
to the issuance of preferred shares ............ -- -- -- (8,099)
------------ ------------ ------------ ------------
Net proceeds from capital share transactions ..... -- -- -- --
------------ ------------ ------------ ------------
Total increase (decrease) .......................... (1,644,268) 6,011,307 1,203,263 6,179,064
------------ ------------ ------------ ------------
NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS:
Beginning of period ................................ 180,497,840 174,486,533 93,843,537 87,664,473
------------ ------------ ------------ ------------
End of period ...................................... $178,853,572 $180,497,840 $ 95,046,800 $ 93,843,537
============ ============ ============ ============
End of period undistributed (distributions in
excess of) net investment income ................. $ 14,613,272 $ 15,765,930 $ 2,852,269 $ 1,316,019
(1) Commencement of investment operations for Florida 2020 was September 30,
2003. This information includes the initial investments by BlackRock
Funding, Inc. The other Trusts' statements are for a full year.
See Notes to Financial Statements.
59
FLORIDA
MUNICIPAL
FLORIDA INSURED 2020 NEW YORK INSURED NEW YORK
MUNICIPAL 2008 TERM TRUST TERM TRUST MUNICIPAL 2008 TERM TRUST MUNICIPAL 2018 TERM TRUST
(BRF) (BFO) (BLN) (BLH)
------------------------------- ------------ ------------------------------- -------------------------------
2003 2002 2003 2003 2002 2003 2002
------------ ------------ ------------ ------------ ------------ ------------ ------------
$ 7,696,083 $ 9,728,220 $ 674,808 11,293,701 $ 12,692,900 $ 3,831,760 $ 3,676,247
278,399 2,460,124 (20) 456,767 1,241,424 (431,368) (668,608)
833,697 746,601 1,967,175 (1,012,048) 7,115,347 1,090,916 5,602,206
(555,799) (985,695) (59,253) (917,968) (1,285,575) (286,897) (415,905)
(157,394) (327,763) -- (56,470) (285,365) -- --
------------ ------------ ------------ ------------ ------------ ------------ ------------
8,094,986 11,621,487 2,582,710 9,763,982 19,478,731 4,204,411 8,193,940
------------ ------------ ------------ ------------ ------------ ------------ ------------
(7,050,777) (6,530,070) (834,319) (8,839,915) (8,442,487) (2,670,425) (2,670,271)
(882,029) (1,538,717) -- (460,415) (1,309,504) -- --
------------ ------------ ------------ ------------ ------------ ------------ ------------
(7,932,806) (8,068,787) (834,319) (9,300,330) (9,751,991) (2,670,425) (2,670,271)
------------ ------------ ------------ ------------ ------------ ------------ ------------
-- -- 71,605,000 -- -- -- --
-- -- 7,920,860 -- -- -- --
-- -- (619,560) -- -- -- 4,438
------------ ------------ ------------ ------------ ------------ ------------ ------------
-- -- 78,906,300 -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------ ------------
162,180 3,552,700 80,654,691 463,652 9,726,740 1,533,986 5,528,107
------------ ------------ ------------ ------------ ------------ ------------ ------------
142,920,066 139,367,366 -- 192,337,448 182,610,708 54,881,330 49,353,223
------------ ------------ ------------ ------------ ------------ ------------ ------------
$143,082,246 $142,920,066 $ 80,654,691 $192,801,100 $192,337,448 $ 56,415,316 $ 54,881,330
============ ============ ============ ============ ============ ============ ============
$ 9,238,980 $ 9,191,501 $ (203,764) $ 13,588,759 $ 12,149,497 $ 1,543,840 $ 669,402
60
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE PERIOD ENDED DECEMBER 31, 2003 AND FOR THE YEAR ENDED DECEMBER 31, 2002
PENNSYLVANIA
STRATEGIC MUNICIPAL TRUST
(BPS)
---------------------------------
INCREASE IN NET ASSETS APPLICABLE TO 2003 2002
COMMON SHAREHOLDERS ------------ ------------
OPERATIONS:
Net investment income ................................. $ 2,260,273 $ 2,349,724
Net realized gain (loss) .............................. 176,317 (124,910)
Net change in unrealized appreciation/depreciation .... 437,910 1,591,396
Dividends to preferred shareholders from
net investment income ............................... (147,231) (217,886)
------------ ------------
Net increase in net assets resulting from operations .... 2,727,269 3,598,324
------------ ------------
DIVIDENDS TO COMMON SHAREHOLDERS FROM:
Net investment income ................................. (1,746,005) (1,675,080)
------------ ------------
Total increase .......................................... 981,264 1,923,244
------------ ------------
NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS:
Beginning of period ..................................... 31,453,761 29,530,517
------------ ------------
End of period ........................................... $ 32,435,025 $ 31,453,761
============ ============
End of period undistributed net investment income ....... $ 884,358 $ 518,789
61
FINANCIAL HIGHLIGHTS
BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST (BRM)
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------
2003 2002 2001(1) 2000(1) 1999(1)
-------- -------- -------- -------- --------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of year ......................... $ 17.62 $ 16.80 $ 16.62 $ 16.00 $ 17.06
-------- -------- -------- -------- --------
Investment operations:
Net investment income ................................... 1.07 1.26 1.33 1.30 1.21
Net realized and unrealized gain (loss) ................. (0.07) 0.53 (0.08) 0.54 (1.23)
Dividends and distributions to preferred shareholders:
Net investment income ................................. (0.08) (0.13) (0.27) (0.38) (0.24)
Net realized gain ..................................... (0.01) (0.01) -- -- --
-------- -------- -------- -------- --------
Net increase (decrease) from investment operations ......... 0.91 1.65 0.98 1.46 (0.26)
-------- -------- -------- -------- --------
Dividends and distributions to common shareholders:
Net investment income ................................... (1.02) (0.79) (0.80) (0.80) (0.80)
Net realized gain ....................................... (0.13) (0.04) -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions .......................... (1.15) (0.83) (0.80) (0.80) (0.80)
-------- -------- -------- -------- --------
Capital charges with respect to issuance of preferred shares -- -- -- (0.04) --
-------- -------- -------- -------- --------
Net asset value, end of year ............................... $ 17.38 $ 17.62 $ 16.80 $ 16.62 $ 16.00
======== ======== ======== ======== ========
Market price, end of year .................................. $ 17.27 $ 16.58 $ 15.70 $ 14.88 $ 13.75
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN(2) ................................. 11.29% 11.15% 11.06% 14.40% (10.14)%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(3)
Expenses after fees paid indirectly ........................ 0.98% 0.98% 1.01% 1.05% 0.93%
Expenses before fees paid indirectly ....................... 0.98% 0.98% 1.02% 1.05% 0.93%
Net investment income before preferred share dividends ..... 6.03% 7.34% 7.87% 8.06% 7.30%
Preferred share dividends .................................. 0.47% 0.73% 1.60% 2.40% 1.47%
Net investment income available to common shareholders ..... 5.56% 6.61% 6.27% 5.66% 5.83%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ............ $480,887 $468,417 $460,153 $438,958 $452,317
Portfolio turnover ......................................... 18% 23% 3% 3% 1%
Net assets of common shareholders, end of year (000) ....... $472,785 $479,390 $457,070 $452,057 $435,314
Preferred shares outstanding (000) ......................... $271,000 $271,000 $271,000 $271,000 $206,000
Asset coverage per preferred share, end of year ............ $ 68,622 $ 69,235 $ 67,178 $ 66,735 $ 77,857
----------
(1) Amounts have been restated to conform to the presentation under the
provision of EITF D-98.
(2) Total investment return is calculated assuming a purchase of a common
share at the current market price on the first day and a sale at the
current market price on the last day of each year reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(3) Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
common shareholders.
The information in the above Financial Highlights represents the audited
operating performance for a common share outstanding, total investment returns,
ratios to average net assets and other supplemental data for each year
indicated. This information has been determined based upon financial information
provided in the financial statements and market price data for the Trust's
common shares.
See Notes to Financial Statements.
62
FINANCIAL HIGHLIGHTS
BLACKROCK INSURED MUNICIPAL TERM TRUST (BMT)
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
2003 2002 2001(1) 2000(1) 1999(1)
-------- -------- -------- -------- --------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of year ......................... $ 11.29 $ 10.85 $ 10.85 $ 10.60 $ 11.22
-------- -------- -------- -------- --------
Investment operations:
Net investment income ................................... 0.73 0.81 0.89 0.89 0.85
Net realized and unrealized gain (loss) ................. 0.10 0.41 (0.12) 0.28 (0.68)
Dividends and distributions to preferred shareholders:
Net investment income ................................. (0.06) (0.08) (0.18) (0.26) (0.17)
Net realized gain ..................................... -- (0.02) (0.01) (0.01) --
-------- -------- -------- -------- --------
Net increase from investment operations .................... 0.77 1.12 0.58 0.90 0.00
-------- -------- -------- -------- --------
Dividends and distributions to common shareholders:
Net investment income ................................... (0.64) (0.58) (0.57) (0.60) (0.62)
Net realized gain ....................................... (0.02) (0.10) (0.02) (0.02) --
-------- -------- -------- -------- --------
Total dividends and distributions .......................... (0.66) (0.68) (0.59) (0.62) (0.62)
-------- -------- -------- -------- --------
Capital charges with respect to issuance of preferred shares -- -- 0.01 (0.03) --
-------- -------- -------- -------- --------
Net asset value, end of year ............................... $ 11.40 $ 11.29 $ 10.85 $ 10.85 $ 10.60
======== ======== ======== ======== ========
Market price, end of year .................................. $ 11.06 $ 10.94 $ 10.63 $ 10.44 $ 9.44
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN(2) ................................. 7.28% 9.51% 7.73% 17.81% (12.92)%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(3)
Expenses after fees paid indirectly ........................ 1.02% 1.05% 1.06% 1.11% 0.94%
Expenses before fees paid indirectly ....................... 1.02% 1.06% 1.06% 1.11% 0.94%
Net investment income before preferred share dividends ..... 6.36% 7.32% 8.12% 8.40% 7.74%
Preferred share dividends .................................. 0.50% 0.70% 1.68% 2.44% 1.51%
Net investment income available to common shareholders ..... 5.86% 6.62% 6.44% 5.96% 6.23%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ............ $293,334 $287,692 $284,390 $274,553 $284,075
Portfolio turnover ......................................... 11% 36% 7% 14% 0%
Net assets of common shareholders, end of year (000) ....... 295,028 $292,371 $280,743 $280,965 $274,320
Preferred shares outstanding (000) ......................... 170,400 $170,400 $170,400 $170,400 $130,000
Asset coverage per preferred share, end of year ............ $ 68,288 $ 67,895 $ 66,195 $ 66,242 $ 77,768
----------
(1) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(2) Total investment return is calculated assuming a purchase of a common
share at the current market price on the first day and a sale at the
current market price on the last day of each year reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(3) Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
common shareholders.
The information in the above Financial Highlights represents the audited
operating performance for a common share outstanding, total investment returns,
ratios to average net assets and other supplemental data for each year
indicated. This information has been determined based upon financial information
provided in the financial statements and market price data for the Trust's
common shares.
See Notes to Financial Statements.
63
FINANCIAL HIGHLIGHTS
BLACKROCK MUNICIPAL 2018 TERM TRUST (BPK)
FOR THE PERIOD
YEAR ENDED DECEMBER 31, SEPTEMBER 30, 2003(1)
------------------------------ THROUGH
2003 2002 DECEMBER 31, 2001(2),(3)
-------- -------- ------------------------
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ................. $ 14.66 $ 13.66 $ 14.33(4)
-------- -------- --------
Investment operations:
Net investment income ............................. 1.21 1.17 0.10
Net realized and unrealized gain (loss) ........... 0.52 0.73 (0.55)
Dividends to preferred shareholders from
net investment income ........................... (0.08) (0.12) (0.01)
-------- -------- --------
Net increase (decrease) from investment operations ... 1.65 1.78 (0.46)
-------- -------- --------
Dividends to common shareholders from
net investment income ............................. (0.78) (0.78) (0.07)
-------- -------- --------
Capital charges with respect to issuance of:
Common shares ..................................... -- -- (0.03)
Preferred shares .................................. -- -- (0.11)
-------- -------- --------
Total capital charges ................................ -- -- (0.14)
-------- -------- --------
Net asset value, end of period ....................... $ 15.53 $ 14.66 $ 13.66
======== ======== ========
Market price, end of period .......................... $ 14.36 $ 13.43 $ 13.06
======== ======== ========
TOTAL INVESTMENT RETURN(5) ........................... 12.92% 8.84% (12.51)%
======== ======== ========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(6)
Expenses after fees paid indirectly .................. 0.93% 0.92% 0.93%(7)
Expenses before fees paid indirectly ................. 0.94% 0.94% 0.93%(7)
Net investment income before preferred share dividends 8.21% 8.14% 4.39%(7)
Preferred share dividends ............................ 0.57% 0.84% 0.28%(7)
Net investment income available to common shareholders 7.64% 7.30% 4.11%(7)
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ...... $235,575 $227,674 $206,486
Portfolio turnover ................................... 15% 53% 0%
Net assets of common shareholders, end of period (000) $247,032 $233,233 $217,229
Preferred shares outstanding (000) ................... $137,600 $137,600 $137,600
Asset coverage per preferred share, end of period .... $ 69,887 $ 67,381 $ 64,485
----------
(1) Commencement of investment operations. This information includes the
initial investment by BlackRock Funding, Inc.
(2) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(3) Calculated using the average shares outstanding method.
(4) Net asset value, beginning of period, reflects a deduction of $0.675 per
share sales charge from the initial offering price of $15.00 per share.
(5) Total investment return is calculated assuming a purchase of a common
share at the current market price on the first day and a sale at the
current market price on the last day of each period reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to
be reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(6) Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
the common shareholders.
(7) Annualized.
The information in the above Financial Highlights represents the audited
operating performance for a common share outstanding, total investment returns,
ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information
provided in the financial statements and market price data for the Trust's
common shares.
See Notes to Financial Statements.
64
FINANCIAL HIGHLIGHTS
BLACKROCK MUNICIPAL 2020 TERM TRUST (BKK)
FOR THE PERIOD
SEPTEMBER 30, 2003(1)
THROUGH
DECEMBER 31, 2003
---------------------
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ............................ $ 14.33(2)
--------
Investment operations:
Net investment income ........................................ 0.15
Net realized and unrealized gain ............................. 0.25
Dividends to preferred shareholders from net investment income (0.01)
--------
Net increase from investment operations ......................... 0.39
--------
Dividends to common shareholders from net investment income ..... (0.16)
--------
Capital charges with respect to issuance of:
Common shares ................................................ (0.03)
Preferred shares ............................................. (0.02)
--------
Total capital charges ........................................... (0.05)
--------
Net asset value, end of period .................................. $ 14.51
========
Market price, end of period ..................................... $ 15.00
========
TOTAL INVESTMENT RETURN(3) ...................................... 1.05%
========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(4),(5)
Expenses after fees paid indirectly ............................. 0.85%
Expenses before fees paid indirectly ............................ 0.87%
Net investment income before preferred share dividends .......... 4.25%
Preferred share dividends ....................................... 0.30%
Net investment income available to common shareholders .......... 3.95%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ................. $279,827
Portfolio turnover .............................................. 17%
Net assets of common shareholders, end of period (000) .......... $293,598
Preferred shares outstanding (000) .............................. $177,600
Asset coverage per preferred share, end of period ............... $ 66,332
----------
(1) Commencement of investment operations. This information includes the
initial investment by BlackRock Funding, Inc.
(2) Net asset value, beginning of period, reflects a deduction of $0.675 per
share sales charge from the initial offering price of $15.00 per share.
(3) Total investment return is calculated assuming a purchase of a common
share at the current market price on the first day and a sale at the
current market price on the last day of each period reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to
be reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(4) Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
the common shareholders.
(5) Annualized.
The information in the above Financial Highlights represents the audited
operating performance for a common share outstanding, total investment returns,
ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information
provided in the financial statements and market price data for the Trust's
common shares.
See Notes to Financial Statements.
65
FINANCIAL HIGHLIGHTS
BLACKROCK MUNICIPAL TARGET TERM TRUST (BMN)
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------
2003 2002 2001(1) 2000(1) 1999(1)
-------- -------- -------- -------- --------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of year ......................... $ 11.16 $ 10.57 $ 10.67 $ 10.60 $ 11.21
-------- -------- -------- -------- --------
Investment operations:
Net investment income ................................... 0.62 0.70 0.83 0.90 0.85
Net realized and unrealized gain (loss) ................. (0.16) 0.62 (0.10) 0.05 (0.68)
Dividends and distributions to preferred shareholders:
Net investment income ................................. (0.06) (0.08) (0.17) (0.26) (0.16)
Net realized gain ..................................... -- (0.01) (0.02) -- --
-------- -------- -------- -------- --------
Net increase from investment operations .................... 0.40 1.23 0.54 0.69 0.01
-------- -------- -------- -------- --------
Dividends and distributions to common shareholders:
Net investment income .................................... (0.57) (0.60) (0.58) (0.60) (0.62)
Net realized gain ........................................ (0.02) (0.04) (0.06) -- --
-------- -------- -------- -------- --------
Total dividends and distributions .......................... (0.59) (0.64) (0.64) (0.60) (0.62)
-------- -------- -------- -------- --------
Capital charges with respect to issuance of preferred shares -- -- -- (0.02) --
-------- -------- -------- -------- --------
Net asset value, end of year ............................... $ 10.97 $ 11.16 $ 10.57 $ 10.67 $ 10.60
======== ======== ======== ======== ========
Market price, end of year .................................. $ 10.95 $ 11.01 $ 10.40 $ 9.94 $ 9.81
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN(2) ................................. 4.99% 12.28% 11.16% 7.63% (8.43)%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(3)
Expenses after fees paid indirectly ........................ 0.96% 0.97% 0.96% 1.00% 0.87%
Expenses before fees paid indirectly ....................... 0.96% 0.97% 0.98% 1.00% 0.87%
Net investment income before preferred share dividends ..... 5.60% 6.44% 7.73% 8.61% 7.72%
Preferred share dividends .................................. 0.54% 0.75% 1.57% 2.48% 1.49%
Net investment income available to common shareholders ..... 5.06% 5.69% 6.16% 6.13% 6.23%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ............ $504,660 $494,694 $489,251 $477,169 $497,324
Portfolio turnover ......................................... 4% 18% 42% 5% 4%
Net assets of common shareholders, end of year (000) ....... $498,283 $506,952 $480,172 $484,646 $481,463
Preferred shares outstanding (000) ......................... $299,100 $299,100 $299,100 $299,100 $225,000
Asset coverage per preferred share, end of year ............ $ 66,654 $ 67,379 $ 65,141 $ 65,530 $ 78,514
----------
(1) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(2) Total investment return is calculated assuming a purchase of a common
share at the current market price on the first day and a sale at the
current market price on the last day of each year reported. Dividends and
distributions, if any, are assumed, for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(3) Ratios calculated on the basis of income and expenses applicable to both
the common and preferred shares relative to the average net assets of the
common shareholders.
The information in the above Financial Highlights represents the audited
operating performance for a common share outstanding, total investment returns,
ratios to average net assets and other supplemental data, for each year
indicated. This information has been determined based upon financial information
provided in the financial statements and market price data for the Trust's
common shares.
See Notes to Financial Statements.
66
FINANCIAL HIGHLIGHTS
BLACKROCK STRATEGIC MUNICIPAL TRUST (BSD)
FOR THE PERIOD
YEAR ENDED DECEMBER 31, AUGUST 25, 1999(1)
------------------------------------------------ THROUGH
2003 2002 2001(2) 2000(2) DECEMBER 31, 1999(2)
-------- -------- -------- -------- --------------------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period .................... $ 15.01 $ 14.33 $ 14.75 $ 13.39 $ 14.33(3)
-------- -------- -------- -------- --------
Investment operations:
Net investment income ................................ 1.23 1.26 1.25 1.22 0.30
Net realized and unrealized gain (loss) .............. 0.68 0.42 (0.58) 1.41 (0.79)
Dividends and distributions to preferred shareholders:
Net investment income .............................. (0.08) (0.12) (0.23) (0.35) (0.06)
In excess of net investment income ................. -- -- -- (0.01) --
-------- -------- -------- -------- --------
Net increase (decrease) from investment operations ...... 1.83 1.56 0.44 2.27 (0.55)
-------- -------- -------- -------- --------
Dividends and distributions to common shareholders:
Net investment income ................................ (0.93) (0.88) (0.86) (0.88) (0.23)
In excess of net investment income ................... -- -- -- (0.03) --
-------- -------- -------- -------- --------
Total dividends and distributions ....................... (0.93) (0.88) (0.86) (0.91) (0.23)
-------- -------- -------- -------- --------
Capital charges with respect to issuance of:
Common shares ........................................ -- -- -- -- (0.03)
Preferred shares ..................................... -- -- -- -- (0.13)
-------- -------- -------- -------- --------
Total capital charges ................................... -- -- -- -- (0.16)
======== ======== ======== ======== ========
Net asset value, end of period .......................... $ 15.91 $ 15.01 $ 14.33 $ 14.75 $ 13.39
======== ======== ======== ======== ========
Market price, end of period ............................. $ 14.69 $ 13.78 $ 13.58 $ 13.69 $ 12.50
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN(4) .............................. 13.75% 8.03% 5.32% 17.44% (15.17)%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:(5)
Expenses after fees waived and paid indirectly .......... 0.91% 0.98% 0.91% 0.90% 0.94%(6)
Expenses before fees waived and paid indirectly ......... 1.30% 1.39% 1.31% 1.30% 1.35%(6)
Net investment income before preferred
share dividends ...................................... 8.09% 8.54% 8.40% 8.86% 6.24%(6)
Preferred share dividends ............................... 0.54% 0.78% 1.58% 2.60% 1.16%(6)
Net investment income available to
common shareholders .................................. 7.55% 7.76% 6.82% 6.26% 5.08%(6)
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ......... $110,385 $106,807 $107,381 $100,171 $ 98,300
Portfolio turnover ...................................... 8% 13% 4% 44% 4%
Net assets of common shareholders, end of period (000) .. $115,246 $108,721 $103,783 $106,833 $ 96,971
Preferred shares outstanding (000) ...................... $ 62,000 $ 62,000 $ 62,000 $ 62,000 $ 62,000
Asset coverage per preferred share, end of period ....... $ 71,476 $ 68,844 $ 66,855 $ 68,092 $ 64,109
----------
(1) Commencement of investment operations. This information includes the
initial investments by BlackRock Financial Management, Inc.
(2) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(3) Net asset value, beginning of period, reflects a deduction of $0.675 per
share sales charge from the initial offering price of $15.00 per share.
(4) Total investment return is calculated assuming a purchase of a common
share at the current market price on the first day and a sale at the
current market price on the last day of each period reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to
be reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(5) Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
the common shareholders.
(6) Annualized.
The information in the above Financial Highlights represents the audited
operating performance for a common share outstanding, total investment returns,
ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information
provided in the financial statements and market price data for the Trust's
common shares.
See Notes to Financial Statements.
67
FINANCIAL HIGHLIGHTS
BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST (BFC)
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------
2003 2002 2001(1) 2000(1) 1999(1)
-------- -------- -------- -------- --------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of year ......................... $ 17.34 $ 16.77 $ 16.72 $ 16.11 $ 17.12
-------- -------- -------- -------- --------
Investment operations:
Net investment income ................................... 0.96 1.18 1.27 1.27 1.17
Net realized and unrealized gain (loss) ................. 0.06 0.48 (0.19) 0.52 (1.20)
Dividends and distributions to preferred shareholders:
Net investment income ................................. (0.07) (0.11) (0.24) (0.35) (0.21)
Net realized gain ..................................... (0.01) (0.03) (0.01) -- --
-------- -------- -------- -------- --------
Net increase (decrease) from investment operations ......... 0.94 1.52 0.83 1.44 (0.24)
-------- -------- -------- -------- --------
Dividends and distributions to common shareholders:
Net investment income ................................... (1.00) (0.81) (0.77) (0.77) (0.77)
Net realized gain ....................................... (0.09) (0.14) (0.02) -- --
-------- -------- -------- -------- --------
Total dividends and distributions .......................... (1.09) (0.95) (0.79) (0.77) (0.77)
-------- -------- -------- -------- --------
Capital changes with respect to issuance of preferred shares -- -- 0.01 (0.06) --
-------- -------- -------- -------- --------
Net asset value, end of year ............................... $ 17.19 $ 17.34 $ 16.77 $ 16.72 $ 16.11
======== ======== ======== ======== ========
Market price, end of year .................................. $ 17.09 $ 16.44 $ 15.90 $ 15.63 $ 13.88
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN(2) ................................. 10.90% 9.56% 7.06% 18.68% (8.40)%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(3)
Expenses after fees paid indirectly ........................ 1.04% 1.05% 1.08% 1.11% 0.98%
Expenses before fees paid indirectly ....................... 1.04% 1.06% 1.09% 1.11% 0.98%
Net investment income before preferred share dividends ..... 5.51% 6.91% 7.57% 7.74% 7.01%
Preferred share dividends .................................. 0.38% 0.64% 1.45% 2.14% 1.25%
Net investment income available to common shareholders ..... 5.13% 6.27% 6.12% 5.60% 5.76%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ............ $180,408 $177,861 $176,424 $170,286 $174,070
Portfolio turnover ......................................... 15% 33% 5% 0% 0%
Net assets of common shareholders, end of year (000) ....... $178,854 $180,498 $174,487 $173,974 $167,672
Preferred shares outstanding (000) ......................... $104,550 $104,550 $104,550 $104,550 $ 78,000
Asset coverage per preferred share, end of year ............ $ 67,776 $ 68,161 $ 66,735 $ 66,629 $ 78,765
----------
(1) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(2) Total investment return is calculated assuming a purchase of a common
share at the current market price on the first day and a sale at the
current market price on the last day of each year reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(3) Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
common shareholders.
The information in the above Financial Highlights represents the audited
operating performance for a common share outstanding, total investment returns,
ratios to average net assets and other supplemental data for each year
indicated. This information has been determined based upon financial information
provided in the financial statements and market price data for the Trust's
common shares.
See Notes to Financial Statements.
68
FINANCIAL HIGHLIGHTS
BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST (BJZ)
FOR THE PERIOD
YEAR ENDED DECEMBER 31, OCTOBER 30, 2001(1)
------------------------------ THROUGH
2003 2002 DECEMBER 31, 2001(2),(3)
-------- -------- ------------------------
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period(4) .............. $ 14.59 $ 13.63 $ 14.33
-------- -------- --------
Investment operations:
Net investment income ............................. 1.04 1.03 0.09
Net realized and unrealized gain (loss) ........... (0.06) 0.78 (0.57)
Dividends to preferred shareholders from
net investment income ........................... (0.07) (0.11) (0.01)
-------- -------- --------
Net increase (decrease) from investment operations ... 0.91 1.70 (0.49)
-------- -------- --------
Dividends to common shareholders
from net investment income ........................ (0.73) (0.74) (0.06)
-------- -------- --------
Capital charges with respect to issuance of:
Common shares ..................................... -- -- (0.03)
Preferred shares .................................. -- -- (0.12)
-------- -------- --------
Total capital charges ................................ -- -- (0.15)
-------- -------- --------
Net asset value, end of period(4) .................... $ 14.77 $ 14.59 $ 13.63
======== ======== ========
Market price, end of period(4) ....................... $ 13.42 $ 13.40 $ 12.85
======== ======== ========
TOTAL INVESTMENT RETURN(5) ........................... 5.67% 10.04% (13.94)%
======== ======== ========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(6)
Expenses after fees paid indirectly .................. 1.03% 0.99% 1.07%(7)
Expenses before fees paid indirectly ................. 1.03% 1.03% 1.07%(7)
Net investment income before preferred share dividends 7.29% 7.33% 3.78%(7)
Preferred share dividends ............................ 0.51% 0.81% 0.27%(7)
Net investment income available to common shareholders 6.78% 6.52% 3.51%(7)
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ...... $ 92,324 $ 90,721 $ 82,906
Portfolio turnover ................................... 9% 42% 0%
Net assets of common shareholders, end of period (000) $ 95,047 $ 93,844 $ 87,664
Preferred shares outstanding (000) ................... $ 55,528 $ 55,525 $ 55,525
Asset coverage per preferred share, end of period .... $ 67,796 $ 67,254 $ 64,488
----------
(1) Commencement of investment operations. This information includes the
initial investment by BlackRock Funding, Inc.
(2) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(3) Calculated using the average shares outstanding method.
(4) Net asset value, beginning of period, reflects a deduction of $0.675 per
share sales charge from the initial offering price of $15.00 per share.
(5) Total investment return is calculated assuming a purchase of a common
share at the current market price on the first day and a sale at the
current market price on the last day of each period reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to
be reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(6) Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
the common shareholders.
(7) Annualized.
The information in the above Financial Highlights represents the unaudited
operating performance for a common share outstanding, total investment returns,
ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information
provided in the financial statements and market price data for the Trust's
common shares.
See Notes to Financial Statements.
69
FINANCIAL HIGHLIGHTS
BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST (BRF)
YEAR ENDED DECEMBER 31,
------------------------------------------------------------------
2003 2002 2001(1) 2000(1) 1999(1)
-------- -------- -------- -------- --------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of year ......................... $ 16.41 $ 16.01 $ 15.84 $ 15.56 $ 16.51
-------- -------- -------- -------- --------
Investment operations:
Net investment income ................................... 0.88 1.12 1.25 1.24 1.17
Net realized and unrealized gain (loss) ................. 0.13 0.36 (0.04) 0.28 (1.02)
Dividends and distributions to preferred shareholders:
Net investment income ................................. (0.06) (0.11) (0.25) (0.37) (0.24)
Net realized gain ..................................... (0.02) (0.04) (0.01) -- --
-------- -------- -------- -------- --------
Net increase (decrease) from investment operations ......... 0.93 1.33 0.95 1.15 (0.09)
-------- -------- -------- -------- --------
Dividends and distributions to common shareholders:
Net investment income ................................... (0.81) (0.75) (0.75) (0.81) (0.86)
Net realized gain ....................................... (0.10) (0.18) (0.04) -- --
-------- -------- -------- -------- --------
Total dividends and distributions .......................... (0.91) (0.93) (0.79) (0.81) (0.86)
-------- -------- -------- -------- --------
Capital charges with respect to issuance of preferred shares -- -- 0.01 (0.06) --
-------- -------- -------- -------- --------
Net asset value, end of year ............................... $ 16.43 $ 16.41 $ 16.01 $ 15.84 $ 15.56
======== ======== ======== ======== ========
Market price, end of year .................................. $ 16.19 $ 15.91 $ 15.40 $ 14.00 $ 14.13
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN(2) ................................. 7.64% 9.61% 15.90% 4.96% (11.12)%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(3)
Expenses after fees paid indirectly ........................ 1.05% 1.05% 1.10% 1.14% 0.99%
Expenses before fees paid indirectly ....................... 1.05% 1.06% 1.12% 1.14% 0.99%
Net investment income before preferred share dividends ..... 5.34% 6.90% 7.75% 7.94% 7.25%
Preferred share dividends .................................. 0.39% 0.70% 1.55% 2.39% 1.50%
Net investment income available to common shareholders ..... 4.95% 6.20% 6.20% 5.55% 5.75%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ............ $144,071 $141,064 $140,004 $135,492 $140,225
Portfolio turnover ......................................... 6% 52% 7% 0% 3%
Net assets of common shareholders, end of year (000) ....... $143,082 $142,920 $139,367 $137,917 $135,459
Preferred shares outstanding (000) ......................... $ 84,169 $ 84,150 $ 84,150 $ 84,150 $ 66,000
Asset coverage per preferred share, end of year ............ $ 67,514 $ 67,460 $ 66,406 $ 65,982 $ 76,312
----------
(1) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(2) Total investment return is calculated assuming a purchase of a common
share at the current market price on the first day and a sale at the
current market price on the last day of each year reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(3) Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
common shareholders.
The information in the above Financial Highlights represents the audited
operating performance for a common share outstanding, total investment returns,
ratios to average net assets and other supplemental data for each year
indicated. This information has been determined based upon financial information
provided in the financial statements and market price data for the Trust's
common shares.
See Notes to Financial Statements.
70
FINANCIAL HIGHLIGHTS
BLACKROCK FLORIDA MUNICIPAL 2020 TERM TRUST (BFO)
FOR THE PERIOD
SEPTEMBER 30, 2003(1)
THROUGH
DECEMBER 31, 2003
---------------------
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ............................ $ 14.33(2)
--------
Investment operations:
Net investment income ........................................ 0.12
Net realized and unrealized gain ............................. 0.26
Dividends to preferred shareholders from net investment income (0.01)
--------
Net increase from investment operations ......................... 0.37
--------
Dividends to common shareholders from
net investment income ........................................ (0.15)
--------
Capital charges with respect to issuance of:
Common shares ................................................ (0.03)
Preferred shares ............................................. (0.02)
--------
Total capital charges ........................................... (0.05)
--------
Net asset value, end of period .................................. $ 14.50
========
Market price, end of period ..................................... $ 15.39
========
TOTAL INVESTMENT RETURN(3) ...................................... 3.60%
========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(4),(5)
Expenses after fees paid indirectly ............................. 1.02%
Expenses before fees paid indirectly ............................ 1.05%
Net investment income before preferred share dividends .......... 3.45%
Preferred share dividends ....................................... 0.30%
Net investment income available to common shareholders .......... 3.15%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ................. $ 76,698
Portfolio turnover .............................................. 0%
Net assets of common shareholders, end of period (000) .......... $ 80,655
Preferred shares outstanding (000) .............................. $ 48,900
Asset coverage per preferred share, end of period ............... $ 66,237
----------
(1) Commencement of investment operations. This information includes the
initial investment by BlackRock Funding, Inc.
(2) Net asset value, beginning of period, reflects a deduction of $0.675 per
share sales charge from the initial offering price of $15.00 per share.
(3) Total investment return is calculated assuming a purchase of a common
share at the current market price on the first day and a sale at the
current market price on the last day of each period reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to
be reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(4) Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
the common shareholders.
(5) Annualized.
The information in the above Financial Highlights represents the audited
operating performance for a common share outstanding, total investment returns,
ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information
provided in the financial statements and market price data for the Trust's
common shares.
See Notes to Financial Statements.
71
FINANCIAL HIGHLIGHTS
BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST (BLN)
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------
2003 2002 2001(1) 2000(1) 1999(1)
-------- -------- -------- -------- --------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of year ......................... $ 17.09 $ 16.22 $ 16.17 $ 15.63 $ 16.74
-------- -------- -------- -------- --------
Investment operations:
Net investment income ................................... 1.01 1.13 1.25 1.24 1.16
Net realized and unrealized gain (loss) ................. (0.05) 0.75 (0.17) 0.53 (1.18)
Dividends and distributions to preferred shareholders:
Net investment income ................................. (0.08) (0.11) (0.26) (0.38) (0.23)
Net realized gain ..................................... (0.01) (0.03) (0.01) -- --
-------- -------- -------- -------- --------
Net increase (decrease) from investment operations ......... 0.87 1.74 0.81 1.39 (0.25)
-------- -------- -------- -------- --------
Dividends and distributions to common shareholders:
Net investment income ................................... (0.79) (0.75) (0.75) (0.80) (0.86)
Net realized gain ....................................... (0.04) (0.12) (0.02) -- --
-------- -------- -------- -------- --------
Total dividends and distributions .......................... (0.83) (0.87) (0.77) (0.80) (0.86)
-------- -------- -------- -------- --------
Capital changes with respect to issuance of preferred shares -- -- 0.01 (0.05) --
-------- -------- -------- -------- --------
Net asset value, end of year ............................... $ 17.13 $ 17.09 $ 16.22 $ 16.17 $ 15.63
======== ======== ======== ======== ========
Market price, end of year .................................. $ 16.96 $ 16.22 $ 15.50 $ 14.75 $ 14.69
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN(2) ................................. 9.88% 10.47% 10.48% 6.10% (6.96)%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(3)
Expenses after fees paid indirectly ........................ 1.03% 1.04% 1.10% 1.12% 0.99%
Expenses before fees paid indirectly ....................... 1.03% 1.05% 1.10% 1.12% 0.99%
Net investment income before preferred share dividends ..... 5.85% 6.75% 7.59% 7.85% 7.13%
Preferred share dividends .................................. 0.48% 0.68% 1.56% 2.40% 1.42%
Net investment income available to common shareholders ..... 5.37% 6.07% 6.03% 5.45% 5.71%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ............ $192,958 $187,970 $184,600 $177,057 $183,111
Portfolio turnover ......................................... 7% 31% 9% 0% 0%
Net assets of common shareholders, end of year (000) ....... $192,801 $192,337 $182,611 $182,075 $175,961
Preferred shares outstanding (000) ......................... $109,550 $109,550 $109,550 $109,550 $ 85,500
Asset coverage per preferred share, end of year ............ $ 69,000 $ 68,893 $ 66,674 $ 66,596 $ 76,489
----------
(1) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(2) Total investment return is calculated assuming a purchase of a common
share at the current market price on the first day and a sale at the
current market price on the last day of each year reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(3) Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
common shareholders.
The information in the above Financial Highlights represents the audited
operating performance for a common share outstanding, total investment returns,
ratios to average net assets and other supplemental data for each year
indicated. This information has been determined based upon financial information
provided in the financial statements and market price data for the Trust's
common shares.
See Notes to Financial Statements.
72
FINANCIAL HIGHLIGHTS
BLACKROCK NEW YORK MUNICIPAL 2018 TERM TRUST (BLH)
FOR THE PERIOD
YEAR ENDED DECEMBER 31, OCTOBER 30, 2001(1)
------------------------------ THROUGH
2003 2002 DECEMBER 31, 2001(2),(3)
-------- -------- ------------------------
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ................. $ 15.11 $ 13.58 $ 14.33(4)
-------- -------- --------
Investment operations:
Net investment income ............................. 1.06 1.01 0.09
Net realized and unrealized gain (loss) ........... 0.18 1.37 (0.61)
Dividends to preferred shareholders
from net investment income ...................... (0.08) (0.11) (0.01)
-------- -------- --------
Net increase (decrease) from investment operations ... 1.16 2.27 (0.53)
-------- -------- --------
Dividends to common shareholders
from net investment income ........................ (0.74) (0.74) (0.06)
-------- -------- --------
Capital charges with respect to issuance of:
Common shares ..................................... -- -- (0.03)
Preferred shares .................................. -- -- (0.13)
-------- -------- --------
Total capital charges ................................ -- -- (0.16)
-------- -------- --------
Net asset value, end of period ....................... $ 15.53 $ 15.11 $ 13.58
======== ======== ========
Market price, end of period .......................... $ 14.70 $ 13.46 $ 13.15
======== ======== ========
TOTAL INVESTMENT RETURN(5) ........................... 14.94% 7.96% (11.94)%
======== ======== ========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(6)
Expenses after fees paid indirectly .................. 1.12% 1.13% 1.15%(7)
Expenses before fees paid indirectly ................. 1.14% 1.17% 1.15%(7)
Net investment income before preferred share dividends 7.03% 7.03% 3.73%(7)
Preferred share dividends ............................ 0.53% 0.80% 0.26%(7)
Net investment income available to common shareholders 6.50% 6.23% 3.47%(7)
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ...... $ 54,510 $ 52,265 $ 47,959
Portfolio turnover ................................... 11% 41% 1%
Net assets of common shareholders, end of period (000) $ 56,415 $ 54,881 $ 49,353
Preferred shares outstanding (000) ................... $ 31,400 $ 31,400 $ 31,400
Asset coverage per preferred share, end of period .... $ 69,917 $ 68,702 $ 64,311
----------
(1) Commencement of investment operations. This information includes the
initial investment by BlackRock Funding, Inc.
(2) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(3) Calculated using the average shares outstanding method.
(4) Net asset value, beginning of period, reflects a deduction of $0.675 per
share sales charge from the initial offering price of $15.00 per share.
(5) Total investment return is calculated assuming a purchase of a common
share at the current market price on the first day and a sale at the
current market price on the last day of each period reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to
be reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(6) Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
the common shareholders.
(7) Annualized.
The information in the above Financial Highlights represents the audited
operating performance for a common share outstanding, total investment returns,
ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information
provided in the financial statements and market price data for the Trust's
common shares.
See Notes to Financial Statements.
73
FINANCIAL HIGHLIGHTS
BLACKROCK PENNSYLVANIA STRATEGIC MUNICIPAL TRUST (BPS)
FOR THE PERIOD
YEAR ENDED DECEMBER 31, AUGUST 25, 1999(1)
----------------------------------------------- THROUGH
2003 2002 2001(2) 2000(2) DECEMBER 31, 1999(2)
-------- -------- -------- -------- --------------------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period .................... $ 15.61 $ 14.65 $ 14.62 $ 13.40 $ 14.33(3)
-------- -------- -------- -------- --------
Investment operations:
Net investment income ................................ 1.12 1.17 1.17 1.18 0.27
Net realized and unrealized gain (loss) .............. 0.30 0.73 (0.08) 1.29 (0.66)
Dividends and distributions to preferred shareholders:
From net investment income ......................... (0.07) (0.11) (0.24) (0.33) (0.06)
In excess of net investment income ................. -- -- -- (0.03) --
-------- -------- -------- -------- --------
Net increase (decrease) from investment operations ...... 1.35 1.79 0.85 2.11 (0.45)
-------- -------- -------- -------- --------
Dividends and distributions to common shareholders:
From net investment income ........................... (0.87) (0.83) (0.82) (0.82) (0.21)
In excess of net investment income ................... -- -- -- (0.06) (0.02)
-------- -------- -------- -------- --------
Total dividends and distributions ....................... (0.87) (0.83) (0.82) (0.88) (0.23)
-------- -------- -------- -------- --------
Capital charges with respect to issuance of:
Common shares ........................................ -- -- -- -- (0.03)
Preferred shares ..................................... -- -- -- (0.01) (0.22)
-------- -------- -------- -------- --------
Total capital charges ................................... -- -- -- (0.01) (0.25)
-------- -------- -------- -------- --------
Net asset value, end of period .......................... $ 16.09 $ 15.61 $ 14.65 $ 14.62 $ 13.40
======== ======== ======== ======== ========
Market price, end of period ............................. $ 15.12 $ 14.33 $ 14.03 $ 13.13 $ 13.38
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN(4) .............................. 11.91% 8.19% 13.12% 5.08% (9.43)%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:(5)
Expenses after fees waived and paid indirectly .......... 1.12% 1.34% 1.11% 1.22% 1.20%(6)
Expenses before fees waived and paid indirectly ......... 1.54% 1.75% 1.55% 1.63% 1.61%(6)
Net investment income before preferred
share dividends ...................................... 7.09% 7.69% 7.86% 8.49% 5.63%(6)
Preferred share dividends ............................... 0.46% 0.71% 1.63% 2.60% 1.17%(6)
Net investment income available to common
shareholders ......................................... 6.63% 6.98% 6.23% 5.89% 4.46%(6)
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ......... $ 31,892 $ 30,545 $ 30,122 $ 27,920 $ 26,882
Portfolio turnover ...................................... 0% 7% 16% 28% 1%
Net assets of common shareholders, end of period (000) .. $ 32,435 $ 31,454 $ 29,531 $ 29,469 $ 26,995
Preferred shares outstanding (000) ...................... $ 17,500 $ 17,500 $ 17,500 $ 17,500 $ 17,500
Asset coverage per preferred share, end of period ....... $ 71,341 $ 69,939 $ 67,194 $ 67,112 $ 63,571
----------
(1) Commencement of investment operations. This information includes the
initial investment by BlackRock Financial Management, Inc.
(2) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(3) Net asset value, beginning of period, reflects a deduction of $0.675 per
share sales charge from the initial offering price of $15.00 per share.
(4) Total investment return is calculated assuming a purchase of a common
share at the current market price on the first day and a sale at the
current market price on the last day of each period reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to
be reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(5) Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
the common shareholders.
(6) Annualized.
The information in the above Financial Highlights represents the audited
operating performance for a common share outstanding, total investment returns,
ratios to average net assets and other supplemental data for each period
indicated. This information has been determined based upon financial information
provided in the financial statements and market price data for the Trust's
common shares.
74
NOTES TO FINANCIAL STATEMENTS
NOTE 1. ORGANIZATION & ACCOUNTING POLICIES
The BlackRock Insured Municipal 2008 Term Trust Inc. ("Municipal Insured 2008"),
The BlackRock Insured Municipal Term Trust Inc. ("Insured Municipal"), The
BlackRock Municipal Target Term Trust Inc. ("Municipal Target"), The BlackRock
California Insured Municipal 2008 Term Trust Inc. ("California Insured 2008")
and The BlackRock New York Insured Municipal 2008 Term Trust Inc. ("New York
Insured 2008") were organized as Maryland corporations. The BlackRock Municipal
2018 Term Trust ("Municipal 2018"), The BlackRock Municipal 2020 Term Trust
("Municipal 2020"), The BlackRock Strategic Municipal Trust ("Municipal
Strategic"), The BlackRock California Municipal 2018 Term Trust ("California
2018"), The BlackRock Florida Municipal 2020 Term Trust ("Florida 2020"), The
BlackRock New York Municipal 2018 Term Trust ("New York 2018") and The BlackRock
Pennsylvania Strategic Municipal Trust ("Pennsylvania Strategic") were organized
as Delaware statutory trusts. The BlackRock Florida Insured Municipal 2008 Term
Trust ("Florida Insured 2008") was organized as a Massachusetts business trust.
Municipal Insured 2008, Insured Municipal, Municipal 2018, Municipal 2020,
Municipal Target and Municipal Strategic are registered as diversified
closed-end management investment companies under the Investment Company Act of
1940, as amended. California Insured 2008, California 2018, Florida Insured
2008, Florida 2020, New York Insured 2008, New York 2018 and Pennsylvania
Strategic are registered as non-diversified closed-end management investment
companies under the Investment Company Act of 1940, as amended. Municipal
Insured 2008, California Insured 2008, Florida Insured 2008 and New York Insured
2008 are herein referred to as the 2008 Trusts. Municipal 2018, California 2018
and New York 2018 are herein referred to as the 2018 Trusts. Municipal 2020 and
Florida 2020 are herein referred to as the 2020 Trusts. Municipal Strategic and
Pennsylvania Strategic are herein referred to as the Strategic Trusts. The 2020
Trusts had no transactions other than each Trust having a sale to BlackRock
Funding, Inc. of 8,028 common shares for $115,001. Investment operations for the
2020 Trusts commenced on September 30, 2003.
The following is a summary of significant accounting policies followed by the
Trusts.
SECURITIES VALUATION: Municipal securities (including commitments to purchase
such securities on a "when-issued" basis) are valued on the basis of prices
provided by dealers or pricing services selected under the supervision of each
Trust's Board of Trustees or Board of Directors as the case may be (each, a
"Board"). In determining the value of a particular security, pricing services
may use certain information with respect to transactions in such securities,
quotations from bond dealers, market transactions in comparable securities and
various relationships between securities. A futures contract is valued at the
last sale price as of the close of the Commodities exchange on which it trades.
Short-term investments may be valued at amortized cost. Investments in other
investment companies are valued at net asset value. Any securities or other
assets for which such current market quotations are not readily available are
valued at fair value as determined in good faith under procedures established
by, and under the general supervision and responsibility of, each Trust's Board.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on trade date. Realized and unrealized gains and losses are calculated
on the identified cost basis. Each Trust also records interest income on an
accrual basis and amortizes premium and/or accretes discount on securities
purchased using the interest method.
FINANCIAL FUTURES CONTRACTS: A futures contract is an agreement between two
parties to buy and sell a financial instrument for a set price on a future date.
Initial margin deposits are made upon entering into futures contracts and can be
either cash or securities. During the period the futures contract is open,
changes in the value of the contract are recognized as unrealized gains or
losses by "marking-to-market" on a daily basis to reflect the market value of
the contract at the end of each day's trading. Variation margin payments are
made or received, depending upon whether unrealized gains or losses are
incurred. When the contract is closed, the Trust records a realized gain or loss
equal to the difference between the proceeds from (or cost of) the closing
transaction and the Trust's basis in the contract.
Financial futures contracts, when used by the Trusts, help in maintaining
a targeted duration. Futures contracts can be sold to effectively shorten an
otherwise longer duration portfolio. In the same sense, futures contracts can be
purchased to lengthen a portfolio that is shorter than its duration target.
Thus, by buying or selling futures contracts, the Trusts may attempt to manage
the duration of positions so that changes in interest rates do not change the
duration of the portfolio unexpectedly. At December 31, 2003, there were no open
financial futures contracts in any of the Trusts.
SEGREGATION: In cases in which the Investment Company Act of 1940, as amended,
and the interpretive positions of the Securities and Exchange Commission ("SEC")
require that each Trust segregate assets in connection with certain investments
(e.g., when-issued securities, reverse repurchase agreements or futures
contracts), each Trust will, consistent with certain interpretive letters issued
by the SEC, designate on its books and records cash or other liquid debt
securities having a market value at least equal to the amount that would
otherwise be required to be physically segregated.
FEDERAL INCOME TAXES: It is each Trust's intention to continue to be treated as
a regulated investment company under the Internal Revenue Code and to distribute
sufficient net income to shareholders. For this reason and because substantially
all of the gross income of each Trust consists of tax-exempt interest, no
Federal income tax provisions are required.
DIVIDENDS AND DISTRIBUTIONS: Each Trust declares and pays dividends and
distributions to common shareholders monthly from net investment income, net
realized short-term capital gains and other sources, if necessary. Net long-term
capital gains, if any, in excess of loss carryforwards may be distributed
annually. Dividends and distributions are recorded on the ex-dividend date.
Dividends and distributions to preferred shareholders are accrued and determined
as described in Note 4.
ESTIMATES: The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from these
estimates.
DEFERRED COMPENSATION AND BLACKROCK CLOSED-END SHARE EQUIVALENT INVESTMENT PLAN:
Under the deferred compensation plan approved by the Trust's Board,
non-interested Trustees are required to defer a portion of their annual
complex-wide compensation. Deferred amounts
75
earn an approximate return as though equivalent dollar amounts had been invested
in common shares of other BlackRock closed-end trusts selected by the Trustees.
This has the same economic effect for the Trustees as if the Trustees had
invested the deferred amounts in such Trusts.
The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of the Trust. Each
Trust may, however, elect to invest in common shares of those Trusts selected by
the Trustees/Directors in order to match its deferred compensation obligations.
RECLASSIFICATION OF CAPITAL ACCOUNTS: In order to present undistributed
(distribution in excess of) net investment income ("UNII"), accumulated net
realized gain ("Accumulated Gain") and paid-in capital ("PIC") more closely to
its tax character the following accounts, for each Trust, were increased
(decreased):
TRUST UNII ACCUMULATED GAIN PIC
----- ---- ---------------- ---
Municipal Insured 2008 $(118,959) $118,959 $ --
INSURED MUNICIPAL (102,513) 102,513 --
Municipal 2018 (4,022) 4,022 --
Municipal 2020 15,000 -- (15,000)
Municipal Target (205,639) 205,639 --
Municipal Strategic (799) 799 --
California Insured 2008 (4,696) 4,696 --
California 2018 (30) 30 --
Florida Insured 2008 (42,028) 42,028 --
Florida 2020 15,000 -- (15,000)
New York Insured 2008 (96,556) 96,556 --
New York 2018 -- -- --
Pennsylvania Strategic (1,468) 1,468 --
NOTE 2. AGREEMENTS
Each Trust has an Investment Management Agreement with BlackRock Advisors,
Inc. (the "Advisor"), a wholly owned subsidiary of BlackRock, Inc. BlackRock
Financial Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves
as sub-advisor to the 2018 Trusts and 2020 Trusts. BlackRock, Inc. is an
indirect majority owned subsidiary of The PNCFinancial Services Group, Inc. The
investment management agreement on the 2018 Trusts, 2020 Trusts and Strategic
Trusts covers both investment advisory and administration services. Each 2008
Trust had an Administration Agreement with Princeton Administrators, L.P.
("Princeton"), an indirect wholly owned affiliate of Merrill Lynch &Co., Inc.
Insured Municipal had an Administration Agreement with UBS Global Asset
Management (US) Inc. ("UBSGAM") (formerly Brinson Advisors, Inc.), an indirect
wholly owned asset management subsidiary of UBS AG. Municipal Target had an
Administration Agreement with Prudential Investments LLC ("PI"), an indirect
wholly owned subsidiary of Prudential Financial, Inc.
Each Trust's investment advisory fee paid to the Advisor is computed
weekly and payable monthly based on an annual rate, 0.35% for the 2008 Trusts,
Insured Municipal and Municipal Target, 0.40% for the 2018 Trusts, 0.50% for the
2020 Trusts and 0.60% for the Strategic Trusts, of the Trust's average weekly
managed assets. The Advisor has voluntarily agreed to waive a portion of the
investment advisory fee or other expenses on the Strategic Trusts as a
percentage of managed assets as follows: 0.25% for the first five years of each
of the Trust's operations, 0.20% in year six, 0.15% in year seven, 0.10% in year
eight and 0.05% in year nine.
The administration fee paid to each Trust's respective administrator,
other than the 2018 Trusts, 2020 Trusts and Strategic Trusts is computed weekly
and payable monthly based on an annual rate, 0.10% to UBSGAM and Princeton and
0.07% to PI, of the Trust's average weekly managed assets.
On May 22, 2003, the Boards of the 2008 Trusts, Insured Municipal and
Municipal Target approved the change of each Trust's current administrator to
the Advisor. The new administration agreements become effective September 1,
2003, except for Insured Municipal, which becomes effective August 15, 2003.
Each Trust's fee structure, as described above, will remain unchanged under the
new administration agreements.
Pursuant to the agreements, the Advisor provides continuous supervision of
the investment portfolio and pays the compensation of officers of each Trust who
are affiliated persons of the Advisor. The Advisor pays occupancy and certain
clerical and accounting costs for the 2018 Trusts, 2020 Trusts and the Strategic
Trusts. Each Trust's administrator pays occupancy and certain clerical and
accounting costs of their respective Trust(s). Each Trust bears all other costs
and expenses, which include reimbursements to the Advisor for certain
operational support services provided to each Trust.
Pursuant to the terms of the custody agreement, each Trust received
earning credits from its custodian for positive cash balances maintained, which
are used to offset custody fees.
NOTE 3. PORTFOLIO SECURITIES
Purchases and sales of investment securities, other than short-term
investments, for the year ended December 31, 2003, were as follows:
TRUST PURCHASES SALES TRUST PURCHASES SALES
----- --------- ----- ----- --------- -----
Municipal Insured 2008 $148,837,448 $131,443,192 California 2018 $ 12,768,260 $19,674,147
Insured Municipal 50,720,318 55,255,303 Florida Insured 2008 13,401,877 16,404,451
Municipal 2018 58,585,736 55,964,881 Florida 2020 101,058,880 --
Municipal 2020 449,661,785 56,499,669 New York Insured 2008 20,444,194 26,212,769
Municipal Target 32,138,832 59,737,448 New York 2018 10,320,773 9,434,014
Municipal Strategic 18,414,141 14,101,406 Pennsylvania Strategic -- 2,565,000
California Insured 2008 40,825,239 42,962,308
76
At December 31, 2003, the total cost of securities for Federal income tax
purposes and the aggregate gross unrealized appreciation and depreciation for
securities held by each Trust were as follows:
TRUST COST APPRECIATION DEPRECIATION NET
----- ---- ------------ ------------ ---
Municipal Insured 2008 $680,297,418 $53,722,780 $62,679 $53,660,100
Insured Municipal 425,669,945 35,589,414 -- 35,589,414
Municipal 2018 367,606,950 15,415,664 2,216,698 13,198,966
Municipal 2020 461,693,023 7,240,914 14,778 7,226,136
Municipal Target 745,192,523 44,196,646 -- 44,196,646
Municipal Strategic 161,144,824 16,148,192 2,228,927 13,919,265
California Insured 2008 259,938,191 20,470,754 5,729 20,465,025
California 2018 146,485,617 4,621,647 2,160,810 2,460,836
Florida Insured 2008 210,289,965 13,329,061 -- 13,329,061
Florida 2020 130,072,547 2,011,816 43,518 1,968,299
New York Insured 2008 274,514,449 23,619,365 36 23,619,329
New York 2018 81,860,854 4,634,746 148,449 4,486,297
Pennsylvania Strategic 44,945,946 3,787,439 60,065 3,727,374
For Federal income tax purposes, the following Trusts had capital loss
carryforwards at December 31, 2003. These amounts may be used to offset future
realized capital gains, if any:
CAPITAL LOSS CAPITAL LOSS
TRUST CARRYFORWARD AMOUNT EXPIRES TRUST CARRYFORWARD AMOUNT EXPIRES
----- ------------------- ------- ----- ------------------- -------
Insured Municipal $ 1,308 2011 New York 2018 $ 668,608 2010
==========
Municipal 2018 $2,036,899 2010 431,368 2010
========== ----------
Municipal Strategic $ 78,019 2008 $1,099,976
==========
1,802,842 2009 Pennsylvania Strategic 89,327 2009
760,288 2010 408,700 2010
---------- ----------
$2,641,149 $ 498,027
========== ==========
California 2018 $1,287,186 2010
==========
Accordingly, no capital gain distributions are expected to be paid to
shareholders of a Trust until that Trust has net realized capital gains in
excess of its capital loss carryforward amounts. Each of the Strategic Trusts
has a tax year-end of June 30th.
NOTE 4. CAPITAL
There are 200 million of $0.01 par value common shares authorized for each
of the 2008 Trusts, Insured Municipal and Municipal Target. There are an
unlimited number of $0.001 par value common shares authorized for each of the
2018 Trusts, 2020 Trusts and Strategic Trusts. Each Trust may classify or
reclassify any unissued common shares into one or more series of preferred
shares. At December 31, 2003, the common shares outstanding and the shares owned
by affiliates of the Advisor of each Trust were as follows:
COMMON
SHARES COMMON SHARES COMMON
TRUST OUTSTANDING SHARES OWNED TRUST OUTSTANDING SHARES OWNED
----- ----------- ------------ ----- ----------- ------------
Municipal Insured 2008 27,207,093 -- California 2018 6,433,028 8,028
Insured Municipal 25,885,639 -- Florida Insured 2008 8,707,093 --
Municipal 2018 15,908,028 8,028 Florida 2020 5,562,128 8,028
Municipal 2020 20,236,628 8,028 New York Insured 2008 11,257,093 --
Municipal Target 45,410,639 -- New York 2018 3,633,028 8,028
Municipal Strategic 7,242,261 -- Pennsylvania Strategic 2,015,492 --
California Insured 2008 10,407,093 --
TRANSACTIONS IN COMMON SHARES OF BENEFICIAL INTEREST FOR THE PERIOD ENDED
DECEMBER 31, 2003 WERE AS FOLLOWS:
SHARES FROM
-----------------------------------------------------------
UNDERWRITERS'
EXERCISING THE NET INCREASE
INITIAL PUBLIC OVER-ALLOTMENT REINVESTMENT IN SHARES
TRUST OFFERING OPTION OF DIVIDENDS OUTSTANDING
----- -------------- -------------- ------------ ------------
Municipal 2020 18,508,028 1,728,600 -- 20,236,628
Florida 2020 5,008,028 554,100 -- 5,562,128
Offering Costs incurred in connection with the offering of common shares
for the Municipal 2020 Term Turst and Florida Municipal 2020 Term Trust have
been charged against the proceeds from the initial common share offering of the
common shares in the amounts of $540,000 and $135,000, respectively.
77
As of December 31, 2003, each Trust had the following series of preferred
shares outstanding as listed in the table below. The preferred shares have a
liquidation value of $25,000 per share plus any accumulated unpaid dividends.
TRUST SERIES SHARES TRUST SERIES SHARES
----- ------ ------ ----- ------ ------
Municipal Insured 2008 T7 4,660 Municipal Strategic W7 2,480
R7 2,060 California Insured 2008 W7 2,622
T28 2,060 W28 1,560
R28 2,060 California 2018 M7 2,221
Insured Municipal M7 4,216 Florida Insured 2008 R7 3,366
M28 2,600 FLORIDA 2020 F7 1,956
Municipal 2018 W7 2,752 New York Insured 2008 F7 2,672
R7 2,752 F28 1,710
Municipal 2020 M7 2,368 New York 2018 T7 1,256
W7 2,368 Pennsylvania Strategic W7 700
F7 2,368
Municipal Target W7 5,964
F7 3,000
W28 3,000
Underwriting discounts and offering costs incurred in connection with the
2020 Trust's preferred share offering have been charged to paid-in capital in
excess of par of the common shares.
UNDERWRITING OFFERING UNDERWRITING OFFERING
TRUST DISCOUNT COST TRUST DISCOUNT COST
----- ------------ -------- ------------ ------------ --------
Municipal 2020 $1,776,000 $320,320 Florida 2020 $489,000 $130,560
Dividends on 7-day preferred shares are cumulative at a rate which is
reset every seven days based on the results of an auction. Dividends on 28-day
preferred shares are cumulative at a rate which is reset every 28 days based on
the results of an auction. The dividend ranges on the preferred shares for each
of the Trusts for the year ended December 31, 2003, were as follows:
TRUST LOW HIGH TRUST LOW HIGH
----- --- ---- ----- --- ----
Municipal Insured 2008 0.45% 1.80% California 2018 0.40% 1.20%
Insured Municipal 0.50 1.29 Florida Insured 2008 0.69 1.84
Municipal 2018 0.40 1.40 Florida 2020 1.05 1.35
Municipal 2020 0.85 1.40 New York Insured 2008 0.44 1.25
Municipal Target 0.48 1.45 New York 2018 0.45 1.25
Municipal Strategic 0.55 1.30 Pennsylvania Strategic 0.40 1.30
California Insured 2008 0.40 1.63
A Trust may not declare dividends or make other distributions on common
shares or purchase any such shares if, at the time of the declaration,
distribution or purchase, asset coverage with respect to the outstanding
preferred shares would be less than 200%.
The preferred shares are redeemable at the option of each Trust, in whole
or in part, on any dividend payment date at $25,000 per share plus any
accumulated or unpaid dividends whether or not declared. The preferred shares
are also subject to mandatory redemption at $25,000 per share plus any
accumulated or unpaid dividends, whether or not declared, if certain
requirements relating to the composition of the assets and liabilities of a
Trust, as set forth in each Trust's Declaration of Trust/Articles Supplementary
are not satisfied.
The holders of preferred shares have voting rights equal to the holders of
common shares (one vote per share) and will vote together with holders of common
shares as a single class. However, holders of preferred shares, voting as a
separate class, are also entitled to elect two Directors/Trustees for each
Trust. In addition, the Investment Company Act of 1940, as amended, requires
that along with approval by shareholders that might otherwise be required, the
approval of the holders of a majority of any outstanding preferred shares,
voting separately as a class would be required to (a) adopt any plan of
reorganization that would adversely affect the preferred shares, (b) change a
Trust's sub- classification as a closed-end investment company or change its
fundamental investment restrictions and (c) change its business so as to cease
to be an investment company.
78
NOTE 5. DIVIDENDS
Subsequent to December 31, 2003, the Board of each Trust declared
dividends from undistributed earnings per common share payable February 2, 2004,
to shareholders of record on January 15, 2004. The per share common dividends
declared were:
COMMON DIVIDEND COMMON DIVIDEND
TRUST PER SHARE TRUST PER SHARE
----- --------------- ----- ---------------
Municipal Insured 2008 $0.066250 California 2018 $0.061250
Insured Municipal 0.047917 Florida Insured 2008 0.062500
Municipal 2018 0.065000 Florida 2020 0.075000
Municipal 2020 0.078125 New York Insured 2008 0.062500
Municipal Target 0.047917 New York 2018 0.061250
Municipal Strategic 0.079585 Pennsylvania Strategic 0.073965
California Insured 2008 0.064375
The dividends declared on preferred shares for the period January 1, 2004 to
January 31, 2004, for each of the Trusts were as follows:
DIVIDENDS DIVIDENDS
TRUST SERIES DECLARED TRUST SERIES DECLARED
----- ------ --------- ----- ------ ---------
Municipal Insured 2008 T7 $ 79,173 California Insured 2008 W7 $54,695
R7 39,634 W28 27,518
T28 34,361 California 2018 M7 37,602
R28 78,980 Florida Insured 2008 R7 67,455
Insured Municipal M7 78,207 Florida 2020 F7 37,030
M28 42,874 New York Insured 2008 F7 42,218
Municipal 2018 W7 56,740 F28 26,556
R7 55,398 New York 2018 T7 17,622
Municipal 2020 M7 42,008 Pennsylvania Strategic W7 13,853
W7 53,020
F7 42,150
Municipal Target W7 116,537
F7 53,520
W28 48,840
Municipal Strategic W7 49,727
79
INDEPENDENT AUDITORS' REPORT
To the Board of Directors\Trustees and Shareholders of:
BlackRock Insured Municipal 2008 Term Trust Inc.
BlackRock Insured Municipal Term Trust Inc.
BlackRock Municipal 2018 Term Trust
BlackRock Municipal 2020 Term Trust
BlackRock Municipal Target Term Trust Inc.
BlackRock Strategic Municipal Trust
BlackRock California Insured Municipal 2008 Term Trust Inc.
BlackRock California Municipal 2018 Term Trust
BlackRock Florida Insured Municipal 2008 Term Trust
BlackRock Florida Municipal 2020 Term Trust
BlackRock New York Insured Municipal 2008 Term Trust Inc.
BlackRock New York Municipal 2018 Term Trust
BlackRock Pennsylvania Strategic Municipal Trust
We have audited the accompanying statements of assets and liabilities of the
each of the above mentioned Trusts (collectively, the "Trusts"), including the
portfolios of investments, as of December 31, 2003, and the related statements
of operations for the year then ended, the statements of changes in net assets
for each of the two years in the period then ended, and the financial highlights
for each of the periods presented. These financial statements and financial
highlights are the responsibility of the Trusts' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures, included confirmation of securities owned as of
December 31, 2003, by correspondence with the custodian and brokers; where
replies were not received from brokers, we performed other auditing procedures.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of each of the Trusts as of
December 31, 2003, the results of their operations for the year than ended, the
changes in their net assets for each of the two years in the period then ended,
and the financial highlights for each of the periods presented, in conformity
with accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
February 18, 2004
80
DIRECTORS/TRUSTEES INFORMATION (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT DIRECTORS/TRUSTEES
------------------------------------------------------------------------------------------------------------------------------------
Name, address, age Andrew F. Brimmer Richard E. Cavanagh Kent Dixon
P.O. Box 4546 P.O. Box 4546 P.O. Box 4546
New York, NY 10163-4546 New York, NY 10163-4546 New York, NY 10163-4546
Age: 77 Age: 57 Age: 66
------------------------------------------------------------------------------------------------------------------------------------
Current positions held with Lead Director/Trustee Director/Trustee Director/Trustee
the Trusts Audit Committee Chairman(2) Audit Committee Member Audit Committee Member(2)
------------------------------------------------------------------------------------------------------------------------------------
Term of office and length of 3 years(4) / since inception 3 years(4) / since inception(5) 3 years(4) / since inception
time served
------------------------------------------------------------------------------------------------------------------------------------
Principal occupations during President of Brimmer & President and Chief Executive Consultant/Investor. Former
the past five years Company, Inc., a Washington, Officer of The Conference President and Chief Executive
D.C.-based economic and Board, Inc., a leading global Officer of Empire Federal
financial consulting firm, business membership Savings Bank of America and
also Wilmer D. Barrett organization, from Banc PLUS Savings Association,
Professor of Economics, 1995-present. Former Executive former Chairman of the Board,
University of Massachusetts - Dean of the John F. Kennedy President and Chief Executive
Amherst. Formerly member of School of Government at Officer of Northeast Savings.
the Board of Governors of the Harvard University from
Federal Reserve System. Former 1988-1995. Acting Director,
Chairman, District of Columbia Harvard Center for Business
Financial Control Board. and Government (1991-1993).
Formerly Partner (principal)
of McKinsey & Company, Inc.
(1980- 1988). Former Executive
Director of Federal Cash
Management, White House Office
of Management and Budget
(1977-1979). Co-author, THE
WINNING PERFORMANCE (best
selling management book
published in 13 national
editions).
------------------------------------------------------------------------------------------------------------------------------------
Number of portfolios overseen 49 49 49
within the fund complex
------------------------------------------------------------------------------------------------------------------------------------
Other Directorships held Director of CarrAmerica Realty Trustee: Airplanes Group, Former Director of ISFA (the
outside of the fund complex Corporation and Borg-Warner Aircraft Finance Trust (AFT) owner of INVEST, a national
Automotive. Formerly Director and Educational Testing securities brokerage service
of Airborne Express, Service (ETS). Director, Arch designed for banks and thrift
BankAmerica Corporation (Bank Chemicals, Fremont Group and institutions).
of America), Bell South The Guardian Life Insurance
Corporation, College Company of America.
Retirement Equities Fund
(Trustee), Commodity Exchange,
Inc. (Public Governor),
Connecticut Mutual Life
Insurance Company, E.I. du
Pont de Nemours & Company,
Equitable Life Assurance
Society of the United States,
Gannett Company, Mercedes-Benz
of North America, MNC
Financial Corporation
(American Security Bank), NCM
Capital Management, Navistar
International Corporation, PHH
Corp. and UAL Corporation
(United Airlines).
------------------------------------------------------------------------------------------------------------------------------------
For "Interested Director/
Trustee" relationships, events
or transactions by reason of
which the Trustee is an
interested person as defined
in Section 2(a)(19)(1940 Act)
------------------------------------------------------------------------------------------------------------------------------------
(1) Interested Director/Trustee as defined by Section 2(a)(19) of the
Investment Company Act of 1940.
(2) The Board of each Trust has determined that each Trust has two Audit
Committee financial experts serving on its Audit Committee, Dr. Brimmer
and Mr. Dixon, both of whom are independent for the purpose of the
definition of Audit Committee financial expert as applicable to the
Trusts.
(3) Director/Trustee since inception; appointed Chairman of the Board on
08/22/02.
(4) The Board is classified into three classes of which one class is elected
annually. Each Director/Trustee serves a three-year term concurrent with
the class from which he is elected.
(5) For the 2008 Trusts, Insured Municipal and Municipal Target appointed
Director on 08/11/94.
(6) For Insured Municipal and Municipal Target appointed Director on 06/19/92.
(7) Except during the periods 8/12/93 through 4/15/97 and 10/31/02 through
11/11/02 for all of the Trusts.
81
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INDEPENDENT DIRECTORS/TRUSTEES (CONTINUED)
----------------------------------------------------------------------------------------------------------
Frank J. Fabozzi James Clayburn La Force, Jr. Walter F. Mondale
P.O. Box 4546 P.O. Box 4546 P.O. Box 4546
New York, NY 10163-4546 New York, NY 10163-4546 New York, NY 10163-4546
Age: 55 Age: 75 Age: 76
----------------------------------------------------------------------------------------------------------
Director/Trustee Director/Trustee Director/Trustee
----------------------------------------------------------------------------------------------------------
3 years(4) / since inception 3 years(4) / since inception(6) 3 years(4) / since inception(7)
----------------------------------------------------------------------------------------------------------
Consultant. Editor of THE Dean Emeritus of the John E. Senior Counsel, Dorsey &
JOURNAL OF PORTFOLIO Anderson Graduate School of Whitney, LLP., a law firm
MANAGEMENT and Frederick Frank Management, University of (January 2004-present);
Adjunct Professor of Finance California since July 1, 1993. Partner, Dorsey & Whitney,
at the School of Management at Acting Dean of the School of LLP., (December 1996-December
Yale University. Author and Business, Hong Kong University 2003, September 1987-August
editor of several books on of Science and Technology 1993). Formerly U.S.
fixed income portfolio 1990-1993. From 1978 to Ambassador to Japan
management. Visiting Professor September 1993, Dean of the (1993-1996). Formerly Vice
of Finance and Accounting at John E. Anderson Graduate President of the United
the Sloan School of School of Management, States, U.S. Senator and
Management, Massachusetts University of California. Attorney General of the State
Institute of Technology from of Minnesota. 1984 Democratic
1986 to August 1992. Nominee for President of the
United States.
----------------------------------------------------------------------------------------------------------
49 49 49
----------------------------------------------------------------------------------------------------------
Director, Guardian Mutual Payden & Rygel Investment Director of United Health
Funds Group (18 portfolios). Trust, Metzler-Payden Foundation and the Japan
Investment Trust, Advisors Society. Member of the Hubert
Series Trust, Arena H. Humphrey Institute of
Pharmaceuticals, Inc. and Public Affairs Advisory Board,
CancerVax Corporation. The Mike and Maureen Mansfield
Foundation, Dean's Board of
Visitors of the Medical School
at the University of
Minnesota, and the Mayo
Foundation Advisory Council to
the President.
----------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
INTERESTED DIRECTORS(1)/TRUSTEES
--------------------------------------------------------------------------------
Ralph L. Schlosstein Robert S. Kapito
BlackRock,Inc. BlackRock,Inc.
40 East 52nd Street 40 East 52nd Street
New York, NY 10022 New York, NY 10022
Age: 52 Age: 46
--------------------------------------------------------------------------------
Chairman of the Board(3) President and Director/Trustee
--------------------------------------------------------------------------------
3 years(4) / since inception 3 years(4) / since August 22, 2002
--------------------------------------------------------------------------------
Director since 1999 and Vice Chairman of BlackRock,
President of BlackRock, Inc. Inc. Head of the Portfolio
since its formation in 1998 Management Group. Also a
and of BlackRock, Inc.'s member of the Management
predecessor entities since Committee, the Investment
1988. Member of the Management Strategy Group, the Fixed
Committee and Investment Income and Global Operating
Strategy Group of BlackRock, Committees and the Equity
Inc. Formerly, Managing Investment Strategy Group.
Director of Lehman Brothers, Responsible for the portfolio
Inc. and Co-head of its management of the Fixed
Mortgage and Savings Income, Domestic Equity and
Institutions Group. Currently, International Equity,
Chairman and a Trustee of each Liquidity, and Alternative
of the closed-end Trusts in Investment Groups of
which BlackRock Advisors, Inc. BlackRock. Currently President
acts as investment advisor. and a Director/Trustee of each
of the closed-end Trusts in
which BlackRock Advisors, Inc.
acts as investment advisor.
--------------------------------------------------------------------------------
49 49
--------------------------------------------------------------------------------
Chairman and President of the Chairman of the Hope and
BlackRock Liquidity Funds (10 Heroes Children's Cancer Fund.
portfolios), Director of President of the Board of
Anthracite Capital, Inc.(7) Directors of the Periwinkle
and Director of several of National Theatre for Young
BlackRock's alternative Audiences. Director of
investment vehicles. icruise.com, Corp.
Currently, a Member of the
Visiting Board of Overseers of
the John F. Kennedy School of
Government at Harvard
University, the Financial
Institutions Center Board of
the Wharton School of the
University of Pennsylvania, a
trustee of the American Museum
of Natural History, a Trustee
of Trinity School in New York
City and a Trustee of New
Visions for Public Education
in New York City. Formerly, a
Director of Pulte Corporation
and a Member of Fannie Mae's
Advisory Council.
--------------------------------------------------------------------------------
Director and President of the Director and Vice Chairman of
Advisor. the Advisor.
--------------------------------------------------------------------------------
82
DIVIDEND REINVESTMENT PLANS
Pursuant to each Trust's Dividend Reinvestment Plan (the "Plan"), common
shareholders of the 2008 Trusts, Insured Municipal and Municipal Target may
elect, while the common shareholders of the 2018 Trusts, 2020 Trusts and
Strategic Trusts are automatically enrolled, to have all distributions of
dividends and capital gains reinvested by EquiServe Trust Company, N.A. (the
"Plan Agent") in the respective Trust's shares pursuant to the Plan.
Shareholders who do not participate in the Plan will receive all distributions
in cash paid by check and mailed directly to the shareholders of record (or if
the shares are held in street or other nominee name, then to the nominee) by the
Plan Agent, which serves as agent for the shareholders in administering the
Plan.
After a 2008 Trust, Insured Municipal, 2018 Trust, 2020 Trust and/or
Municipal Target declares a dividend or determines to make a capital gain
distribution, the Plan Agent will acquire shares for the participants' account,
by the purchase of outstanding shares on the open market, on the Trust's primary
exchange or elsewhere ("open market purchases"). These Trusts will not issue any
new shares under the Plan.
After a Strategic Trust declares a dividend or determines to make a
capital gain distribution, the Plan Agent will acquire shares for the
participants' account, depending upon the circumstances described below, either
(i) through receipt of unissued but authorized shares from the Trust ("newly
issued shares") or (ii) by open market purchases. If, on the dividend payment
date, the NAV is equal to or less than the market price per share plus estimated
brokerage commissions (such condition being referred to herein as "market
premium"), the Plan Agent will invest the dividend amount in newly issued shares
on behalf of the participants. The number of newly issued shares to be credited
to each participant's account will be determined by dividing the dollar amount
of the dividend by the NAV on the date the shares are issued. However, if the
NAV is less than 95% of the market price on the payment date, the dollar amount
of the dividend will be divided by 95% of the market price on the payment date.
If, on the dividend payment date, the NAV is greater than the market value per
share plus estimated brokerage commissions (such condition being referred to
herein as "market discount"), the Plan Agent will invest the dividend amount in
shares acquired on behalf of the participants in open market purchases.
Participation in the Plan is completely voluntary and may be terminated or
resumed at any time without penalty by notice if received and processed by the
Plan Administrator prior to the dividend record date; otherwise such termination
or resumption will be effective with respect to any subsequently declared
dividend or other distribution.
The Plan Agent's fees for the handling of the reinvestment of dividends
and distributions will be paid by each Trust. However, each participant will pay
a pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any Federal income tax that may be payable on
such dividends or distributions.
Each Trust reserves the right to amend or terminate the Plan. There is no
direct service charge to participants in the Plan; however, each Trust reserves
the right to amend the Plan to include a service charge payable by the
participants. Participants that request a sale of shares through the Plan Agent
are subject to a $2.50 sales fee and a $0.15 per share sold brokerage
commission. All correspondence concerning the Plan should be directed to the
Plan Agent at 150 Royall Street, Canton, MA 02021, or by calling (800) 699-1BFM.
83
ADDITIONAL INFORMATION (UNAUDITED)
There have been no material changes in the Trusts' investment objectives
or policies that have not been approved by the shareholders or to their charters
or by-laws or in the principal risk factors associated with investment in the
Trusts. There have been no changes in the persons who are primarily responsible
for the day-to-day management of the Trusts' portfolios.
We are required by the Internal Revenue Code to advise you within 60 days
of a Trust's tax year-end as to the Federal tax status of dividends and
distributions paid by the Trusts during such tax year. Accordingly, during the
tax year-ended December 31, 2003, the Trusts (excluding the Strategic Trusts,
which have June 30th tax year-ends) paid dividends and distributions per common
share as follows:
TAX-EXEMPT ORDINARY LONG-TERM
TRUST INCOME INCOME CAPITAL GAIN TOTAL
----- ---------- -------- ------------ -----
Municipal Insured 2008
Common Shares $1.017400 $0.002200 $0.124700 $1.144300
Preferred Shares:
T7 0.035994 0.000104 0.007778 0.043876
R7 0.013634 0.000044 0.003147 0.016825
T28 0.017558 0.000052 0.003679 0.021289
R28 0.015461 0.000050 0.003550 0.019061
Insured Municipal
Common Shares 0.637204 -- 0.024200 0.661404
Preferred Shares:
M7 0.034686 -- 0.002360 0.037046
M28 0.021446 -- 0.001533 0.022979
Municipal 2018
Common Shares 0.780000 -- -- 0.780000
Preferred Shares:
W7 0.041979 -- -- 0.041979
R7 0.042065 -- -- 0.042065
Municipal Target
Common Shares 0.575004 -- 0.024600 0.599604
Preferred Shares:
W7 0.028996 -- 0.001301 0.030297
F7 0.014566 -- 0.000720 0.015286
W28 0.016737 -- 0.000775 0.017512
California Insured 2008
Common Shares 0.999000 -- 0.090800 1.089800
Preferred Shares:
W7 0.041727 -- 0.007149 0.048876
W28 0.024841 -- 0.004793 0.029635
California 2018
Common Shares 0.735000 -- -- 0.735000
Preferred Shares M7 0.072878 -- -- 0.072878
Florida Insured 2008
Common Shares 0.809800 0.017100 0.084200 0.911100
Preferred Shares R7 0.063833 0.001840 0.016237 0.081911
New York Insured 2008
Common Shares 0.785300 0.008600 0.032300 0.826200
Preferred Shares:
F7 0.048716 0.000617 0.002317 0.051650
F28 0.032830 0.000438 0.001645 0.034912
New York 2018
Common Shares 0.866292 -- -- 0.866292
Preferred Shares R7 0.078969 -- -- 0.078969
Quarterly performance and other information regarding the Trusts may be
found on BlackRock's website, which can be accessed at
http://www.blackrock.com/funds/cefunds/index.html. This reference to BlackRock's
website is intended to allow investors public access to information regarding
the Trusts and does not, and is not intended, to incorporate BlackRock's website
into this report.
Certain of the officers of the Trusts listed on the inside back cover of
this Report to Shareholders are also officers of the Advisor or Sub-Advisor.
They serve in the following capacities for the Advisor or Sub-Advisor: Robert S.
Kapito--Director and Vice Chairman of the Advisor and the Sub-Advisor, Kevin M.
Klingert, Henry Gabbay and Anne Ackerley--Managing Directors of the Advisor and
the Sub-Advisor, Richard M. Shea and James Kong--Managing Directors of the
Sub-Advisor, Vincent B. Tritto--Director of the Sub-Advisor, and Brian
Kindelan--Director of the Advisor.
84
[This Page Intentionally Left Blank]
BLACKROCK CLOSED-END FUNDS
Directors/Trustees
Ralph L. Schlosstein, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
Robert S. Kapito
James Clayburn La Force, Jr.
Walter F. Mondale
Officers
Robert S. Kapito, PRESIDENT
Henry Gabbay, TREASURER
Anne Ackerley, VICE PRESIDENT
Kevin M. Klingert, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX
James Kong, ASSISTANT TREASURER
Vincent B. Tritto, SECRETARY
Brian P. Kindelan, ASSISTANT SECRETARY
Investment Advisor
BlackRock Advisors, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM
Sub-Advisor(1)
BlackRock Financial Management, Inc.
40 East 52nd Street
New York, NY 10022
Custodian
State Street Bank and Trust Company
225 Franklin St.
Boston, MA 02110
Transfer Agent
EquiServe Trust Company, N.A.
150 Royall Street
Canton, MA 02021
(800) 699-1BFM
Auction Agent(1)
Bank of New York
100 Church Street, 8th Floor
New York, NY 10286
Auction Agent(2)
Deutsche Bank Trust Company Americas
60 Wall Street, 27th Floor
New York, NY 10005
Independent Accountants
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116
Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036
Legal Counsel - Independent Directors/Trustees
Debevoise & Plimpton LLP
919 THIRD AVENUE
New York, NY 10022
This report is for shareholder information. This is not a prospectus
intended for use in the purchase or sale of Trust shares. Statements and other
information contained in this report are as dated and are subject to change.
--------------------------------------------------------------------------------
BlackRockAdvisors, Inc.(3)
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM
Municipal 2018
Municipal 2020
Strategic Municipal
California Municipal 2018
Florida Municipal 2020
New York Municipal 2018
Pennsylvania Strategic
Municipal
Princeton Administrators, L.P.(3)
P.O. Box 9095
Princeton, NJ 08543-9095
(800) 227-7BFM
Insured Municipal 2008
California Insured
Municipal 2008
Florida Insured
Municipal 2008
New York Insured
Municipal 2008
Prudential Investments LLC(3)
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 227-7BFM
Municipal Target
UBS Global Asset Management (US) Inc.(3)
51 West 52nd Street
21st Floor
New York, NY 10019
(800) 227-7BFM
Insured Municipal
----------
(1) For the 2018 Trusts and 2020 Trusts.
(2) For the Trusts, except the 2018 Trusts and 2020 Trusts.
(3) Provided administrative services for the Trust(s) listed directly below
its name. Effective September 1, 2003, BlackRock Advisors, Inc. provides
the administrative services for all the Trusts.
The Trusts will mail only one copy of shareholder documents, including annual
and semi-annual reports and proxy statements, to shareholders with multiple
accounts at the same address. This practice is commonly called "householding"
and is intended to reduce expenses and eliminate duplicate mailings of
shareholder documents. Mailings of your shareholder documents may be householded
indefinitely unless you instruct us otherwise. If you do not want the mailing of
these documents to be combined with those for other members of your household,
please contact the Trusts at (800) 227-7BFM.
The Trusts have delegated to the Advisor the voting of proxies relating to their
voting securities pursuant to the Advisor's proxy voting policies and
procedures. You may obtain a copy of these proxy voting policies and procedures,
without charge, by calling (800) 699-1236. These policies and procedures are
also available on the website of the Securities and Exchange Commission at
http://www.sec.gov.
This report is for shareholder information. This is not a
prospectus intended for use in the purchase or sale of Trust [BLACKROCK's LOGO]
shares. Statements and other information contained in this
report are as dated and are subject to change.
CLF-ANN-4
ITEM 2. CODE OF ETHICS
(a) The Registrant has adopted a code of ethics (the "Code of Ethics") that
applies to its principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions.
(b) Not applicable.
(c) The Registrant has not amended its Code of Ethics during the period covered
by the shareholder report presented in Item 1 hereto.
(d) The Registrant has not granted a waiver or an implicit waiver from a
provision of its Code of Ethics during the period covered by the shareholder
report presented in Item 1 hereto.
(e) Not applicable.
(f) The Registrant 's Code of Ethics is attached as an Exhibit hereto.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Registrant 's Board of Trustees has determined that it has two audit
committee financial experts serving on its audit committee, each of whom is an
"independent" Trustees: Dr. Andrew F. Brimmer and Mr. Kent Dixon. Under
applicable securities laws, a person who is determined to be an audit committee
financial expert will not be deemed an "expert" for any purpose, including
without limitation for the purposes of Section 11 of the Securities Act of 1933,
as a result of being designated or identified as an audit committee financial
expert. The designation or identification of a person as an audit committee
financial expert does not impose on such person any duties, obligations, or
liabilities that are greater than the duties, obligations, and liabilities
imposed on such person as a member of the audit committee and Board of Trustees
in the absence of such designation or identification.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) AUDIT FEES. The aggregate fees billed for each of the last two fiscal years
for professional services rendered by the principal accountant for the audit of
the Trust'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 were $31,700 for the fiscal year ended
December 31, 2003 and $27,900 for the fiscal year ended December 31, 2002.
(b) AUDIT-RELATED FEES. The 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 Trust's financial statements and are not
reported above in Item 4(a) were $4,000 for the fiscal year ended December 31,
2003 and $8,000 for the fiscal year ended December 31, 2002.
The nature of these services was attest services not required by statute or
regulation, overhead and out-of-pocket expenses.
(c) TAX FEES. The 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 were $10,200 for the fiscal year ended December 31,
2003 and $7,500 for the fiscal year ended December 31, 2002.
The nature of these services was federal, state and local income and excise tax
return preparation and related advice and planning and miscellaneous tax advice.
(d) ALL OTHER FEES. The were no fees billed in each of the last two fiscal
years for products and services provided by the principal accountant, other than
the services reported above in Items 4(a) through (c).
(e) AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES.
(i) The Trust has polices and procedures (the "Policy") for the
pre-approval by the Trust's Audit Committee of Audit, Audit-Related, Tax and
Other Services (as each is defined in the Policy) provided by the Trust's
independent auditor (the "Independent Auditor") to the Trust and other "Covered
Entities" (as defined below). The term of any such pre-approval is 12 months
from the date of pre-approval, unless the Audit Committee specifically provides
for a different period. The amount of any such pre-approval is set forth in the
appendices to the Policy (the "Service Pre-Approval Documents"). At its first
meeting of each calendar year, the Audit Committee will review and re-approve
the Policy and approve or re-approve the Service Pre-Approval Documents for that
year, together with any changes deemed necessary or desirable by the Audit
Committee. The Audit Committee may, from time to time, modify the nature of the
services pre-approved, the aggregate level of fees pre-approved or both.
For the purposes of the Policy, "Covered Services" means (A) all
engagements for audit and non-audit services to be provided by the Independent
Auditor to the Trust and (B) all engagements for non-audit services related
directly to the operations and financial reporting or the Trust to be provided
by the Independent Auditor to any Covered Entity, "Covered Entities" means (1)
the Advisor or (2) any entity controlling, controlled by or under common control
with the Advisor that provides ongoing services to the Trust.
In the intervals between the scheduled meetings of the Audit Committee,
the Audit Committee delegates pre-approval authority under this Policy to the
Chairman of the Audit Committee (the "Chairman"). The Chairman shall report any
pre-approval decisions under this Policy to the Audit Committee at its next
scheduled meeting. At each scheduled meeting, the Audit Committee will review
with the Independent Auditor the Covered Services pre-approved by the Chairman
pursuant to delegated authority, if any, and the fees related thereto. Based on
these reviews, the Audit Committee can modify, at its discretion, the
pre-approval originally granted by the Chairman pursuant to delegated authority.
This modification can be to the nature of services pre-approved, the aggregate
2
level of fees approved, or both. Pre-approval of Covered Services by the
Chairman pursuant to delegated authority is expected to be the exception rather
than the rule and the Audit Committee may modify or withdraw this delegated
authority at any time the Audit Committee determines that it is appropriate to
do so.
Fee levels for all Covered Services to be provided by the Independent
Auditor and pre-approved under this Policy will be established annually by the
Audit Committee and set forth in the Service Pre-Approval Documents. Any
increase in pre-approved fee levels will require specific pre-approval by the
Audit Committee (or the Chairman pursuant to delegated authority).
The terms and fees of the annual Audit services engagement for the
Trust are subject to the specific pre-approval of the Audit Committee. The Audit
Committee (or the Chairman pursuant to delegated authority) will approve, if
necessary, any changes in terms, conditions or fees resulting from changes in
audit scope, Trust structure or other matters.
In addition to the annual Audit services engagement specifically
approved by the Audit Committee, any other Audit services for the Trust not
listed in the Service Pre-Approval Document for the respective period must be
specifically pre-approved by the Audit Committee (or the Chairman pursuant to
delegated authority.)
Requests or applications to provide Covered Services that require
approval by the Audit Committee (or the Chairman pursuant to delegated
authority) must be submitted to the Audit Committee or the Chairman, as the case
may be, by both the Independent Auditor and the Chief Financial Officer of the
respective Covered Entity, and must include a joint statement as to whether, in
their view, (a) the request or application is consistent with the rules of the
Securities and Exchange Commission ("SEC") on auditor independence and (b) the
requested service is or is not a non-audit service prohibited by the SEC. A
request or application submitted to the Chairman between scheduled meetings of
the Audit Committee should include a discussion as to why approval is being
sought prior to the next regularly scheduled meeting of the Audit Committee.
(ii) All of the services rendered after May 22, 2003 described in each of
Items 4(b) through (d) were approved by the audit committee pursuant to
paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) The non-audit fees billed by the Trust's accountant for services rendered to
the Trust, the Advisor or any entity controlling, controlled by, or under common
control with the Advisor that provides ongoing services to the registrant
(except for any sub-advisor whose role is primarily portfolio management and is
subcontracted with or overseen by another investment advisor) that directly
impacted the Trust for each of the last two fiscal years were $14,200 for the
fiscal year ended December 31, 2003 and $15,500 for the fiscal year ended
December 31, 2002.
(h) Not applicable.
3
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The Trust has a separately designated standing audit committee established in
accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The
audit committee of the Trust is comprised of: Dr. Andrew F. Brimmer; Richard E.
Cavanagh; and Kent Dixon.
ITEM 6. [RESERVED.]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The Registrant has delegated the voting of proxies relating to its voting
securities to its investment advisor, BlackRock Advisors, Inc. (the "Advisor")
and its sub-advisor, BlackRock Financial Management, Inc. (the "Sub-Advisor").
The Proxy Voting Policies and Procedures of the Advisor and Sub-Advisor (the
"Proxy Voting Policies") are included as an Exhibit 99.PROXYPOL hereto.
ITEM 8. [RESERVED.]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The Registrant's principal executive officer and principal financial officer
have evaluated the Registrant's disclosure controls and procedures within 90
days of this filing and have concluded that the Registrant's disclosure controls
and procedures are effective, as of a date, in ensuring that information
required to be disclosed by the registrant in this Form N-CSR was recorded,
processed, summarized, and reported timely.
(b) The Registrant's principal executive officer and principal financial officer
are aware of no changes in the Registrant's internal control over financial
reporting that occurred during the Registrant's most recent fiscal half-year
that has materially affected, or is reasonably likely to materially affect, the
Registrant's internal control over financial reporting.
ITEM 10. EXHIBITS.
(a)(1) Code of Ethics.
(a)(2) Section 302 Certification of Principal Executive Officer and
Principal Financial Officer.
(b) Section 906 Certification of Principal Executive Officer and
Principal Financial Officer.
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SIGNATURES
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.
(Registrant) BlackRock Municipal 2018 Term Trust
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By: /s/ Henry Gabbay
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Name: Henry Gabbay
Title: Treasurer
Date: March 8, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Robert S. Kapito
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Name: Robert S. Kapito
Title: Principal Executive Officer
Date: March 8, 2004
By: /s/ Henry Gabbay
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Name: Henry Gabbay
Title: Principal Financial Officer
Date: March 8, 2004
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