--------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISOR
--------------------------------------------------------------------------------
July 31, 2000
Dear Shareholder:
In the first half of the year, fears of an open-ended tightening policy by
the Federal Reserve peaked in May, which resulted in a subsequent relief in the
market as the U.S. economy seemed to decelerate significantly. During the
period, the Federal Reserve tightened short-term rates by 1.00% in an attempt to
engineer a "soft landing" for the U.S. economy. In the first six months of the
new millennium we have witnessed unprecedented volatility in both the Treasury
yield curve and the spread sectors. The Treasury curve inverted sharply in the
first quarter, but as weak economic data emerged in the second quarter, market
participants embraced an economic "soft landing" scenario causing the yield
curve to steepen. The downward revision in growth expectations allowed spread
sectors to rally in the month of June, but year-to-date their performance still
trails Treasuries.
While fears of a hawkish Federal Reserve and consequent risks of a
"hard-landing" may not materialize immediately, the risks are skewed in that
direction. A longer period of subdued financial market performance is necessary
to enable the labor markets to build up slack, which is an important
pre-condition for the Fed to achieve its goal.
This report contains a summary of market conditions during the semi-annual
period and a review of portfolio strategy by your Trust's managers in addition
to the Trust's unaudited financial statements and a detailed list of the
portfolio's holdings. Continued thanks for your confidence in BlackRock. We
appreciate the opportunity to help you achieve your long-term investment goals.
Sincerely,
/s/ LAURENCE D. FINK /s/ RALPH L. SCHLOSSTEIN
-------------------- ------------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President
1
<PAGE>
July 31, 2000
Dear Shareholder:
We are pleased to present the unaudited semi-annual report for The
BlackRock Municipal Target Term Trust Inc. ("the Trust") for the six-month
period ended June 30, 2000. We would like to take this opportunity to review the
Trust's stock price and net asset value (NAV) performance, summarize
developments in the fixed income markets and discuss recent portfolio management
activity.
The Trust is a diversified, actively managed closed-end bond fund whose
shares are traded on the New York Stock Exchange under the symbol "BMN". The
Trust's investment objective is to manage a portfolio of municipal debt
securities that will return $10 per share (an amount equal to the Trust's
initial public offering price) to investors on or about December 31, 2006, while
providing high current income exempt from regular federal income tax. The Trust
seeks to achieve this objective by investing in high credit quality ("AAA" or
insured to "AAA") tax-exempt general obligation and revenue bonds issued by
city, county and state municipalities throughout the United States.
The table below summarizes the changes in the Trust's stock price and NAV
over the past six months:
<TABLE>
<CAPTION>
----------------------------------------------------------------------
6/30/00 12/31/99 CHANGE HIGH LOW
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
STOCK PRICE $10.125 $ 9.8125 3.18% $10.125 $ 9.5625
----------------------------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $10.52 $10.60 (0.75)% $10.60 $10.34
----------------------------------------------------------------------------------------------------
</TABLE>
THE FIXED INCOME MARKETS
The dynamic expansion of the U.S. economy continues undaunted by Federal
Reserve Chairman Greenspan's attempt to brake the economy, short of stalling it
into a recession. The labor markets remain tight, growth remains strong with 5%+
annualized growth rates and inflation pressures continue to be offset by
increased productivity. However, the Fed remains cautious, in their February
minutes it was noted that: "Other members acknowledged that the Committee might
need to move more aggressively at a later meeting should imbalances continue to
build and inflation expectations clearly begin to pick up." At the Federal
Reserve meeting in November, February and March the Fed raised the discount rate
by 0.25% at each meeting and a 0.50% increase was made in May to bring the
current discount rate to 6.50%.
The Treasury Yield curve experienced a complex set of dynamics, which has
inverted the curve and may continue to invert the curve for the foreseeable
future. The yields on the short-end of the curve increased sharply during the
period in response to three Federal Reserve increases to the discount rate and
perceived future Fed actions in the coming months. The long-end of the curve is
reacting to the "official" announcement that the Treasury will buy back $30
billion of Treasuries with maturities ranging from 10 to 30 years. With a
decreasing supply of available Treasuries, a balanced budget, and an unchanged
demand for longer maturity Treasuries, we would anticipate this condition to
continue. This condition is further augmented by Treasury auction activity, as
they reduce the available bonds on the long end of the curve they continue to
add supply in the 1-10 year range through periodic auctions. For the semi-annual
period, the yield of the 10-year Treasury security declined from 6.44% on
December 31, 1999 to 6.03% on June 30, 2000.
Municipal bonds outperformed the taxable domestic bond market during the
past six months, returning 4.49% (as measured by the LEHMAN MUNICIPAL INDEX)
versus the LEHMAN AGGREGATE INDEX's 3.98% on a pre-tax basis. Overall, the tone
in the market during the period was extremely positive as the result of
continued strong demand from individual/retail investors coupled with light new
issuance. During 1999, households increased their holdings of individual
municipal bonds
2
<PAGE>
by over $40 billion while mutual funds saw net outflows. Offsetting the large
amount of mutual fund outflows during the first quarter of 2000 was a 22%
decline in overall new municipal bond issuance YTD for the same period, led by a
68% drop in refunding volume. Refunding volume was down due to the relatively
higher interest rates experienced during the first half of 2000 when compared to
the first half of 1999, while new money issuance has declined because the strong
economy has led to full coffers at most municipalities.
THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY
The Trust's portfolio is actively managed to diversify exposure to various
sectors, issuers, revenue sources and security types. BlackRock's investment
strategy emphasizes a relative value approach, which allows the Trust to
capitalize upon changing market conditions by rotating municipal sectors and
coupons. Additionally, the Trust emphasizes securities whose maturity dates
match the termination date of the Trust.
Over the year, trading activity in the Trust remained relatively low, as
many of the securities in the Trust's portfolio continued to trade at prices
above current cost. As trading activity that results in the Trust realizing a
capital gain could require a taxable distribution, we continue to believe that
waiting to restructure the portfolio in a higher interest rate environment is
the most prudent portfolio management strategy. At present, we are confident
that the Trust is on schedule to achieve its primary investment objective of
returning $10 per share upon termination and will continue to seek investment
opportunities in the municipal market.
During the period the Trust issued $74,100,000 in additional preferred
shares. Additionally, the Trust employs leverage to enhance its income by
borrowing at short-term municipal rates and investing the proceeds in longer
maturity issues that have higher yields. The degree to which the Trust can
benefit from its use of leverage may affect its ability to pay high monthly
income. As of June 30, 2000, the Trust's leverage amount was 38% of total
assets.
The Board of Directors of the BlackRock Municipal Target Term Trust voted
to adjust the Trust's monthly dividend effective with the July dividend payable
on August 1, 2000. The dividend reduction was determined after careful
evaluation of the current and anticipated level of the Trust's net investment
income, particularly the reduction in income associated with the increased cost
of borrowing as a result of successive Federal Reserve rate increases. The new
Monthly Dividend is $0.04792 ($0.575 annualized), down from the current Monthly
Dividend of $0.05125 ($0.615).
The following chart compares the Trust's current and December 31, 1999
asset composition:
--------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
--------------------------------------------------------------------------------
SECTOR JUNE 30, 2000 DECEMBER 31, 1999
--------------------------------------------------------------------------------
City, County and State 21% 22%
--------------------------------------------------------------------------------
Transportation 17% 15%
--------------------------------------------------------------------------------
Hospital 15% 15%
--------------------------------------------------------------------------------
Tax Revenue 11% 13%
--------------------------------------------------------------------------------
Education 6% 6%
--------------------------------------------------------------------------------
Water & Sewer 9% 10%
--------------------------------------------------------------------------------
Lease Revenue 8% 9%
--------------------------------------------------------------------------------
Utility/Power 6% 6%
--------------------------------------------------------------------------------
Other 7% 4%
--------------------------------------------------------------------------------
3
<PAGE>
We look forward to managing the Trust to benefit from the opportunities
available in the fixed income markets and to meet its investment objectives. We
thank you for your investment in the BlackRock Municipal Target Term Trust Inc.
Please feel free to contact our marketing center at (800) 227-7BFM (7236) if you
have specific questions which were not addressed in this report.
Sincerely,
/s/ ROBERT S. KAPITO /s/ KEVIN KLINGERT
-------------------- ------------------
Robert S. Kapito Kevin Klingert
Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager
BlackRock Advisors, Inc. BlackRock Advisors, Inc.
--------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BMN
--------------------------------------------------------------------------------
Initial Offering Date: September 27, 1991
--------------------------------------------------------------------------------
Closing Stock Price as of 6/30/00: $10.125
--------------------------------------------------------------------------------
Net Asset Value as of 6/30/00: $10.52
--------------------------------------------------------------------------------
Yield on Closing Stock Price as of 6/30/00 ($10.125) 1: 5.68%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share 2: $0.04792
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share 2: $0.57504
--------------------------------------------------------------------------------
1 Yield on Closing Stock Price is calculated by dividing the current annualized
distribution per share by the closing stock price per share.
2 Distribution is not constant and is subject to change.
4
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
PORTFOLIO OF INVESTMENTS JUNE 30, 2000 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT OPTION CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LONG-TERM INVESTMENTS--160.7%
ALABAMA--1.0%
Hoover Brd. of Ed. Spl. Tax. Wts., G.O., AMBAC,
AAA $1,700++ 6.50%, 2/01/01 ................................................... N/A $ 1,753,159
AAA 1,815++ 6.60%, 2/01/01 ................................................... N/A 1,872,753
AAA 1,025++ 6.625%, 2/01/01 .................................................. N/A 1,057,759
-----------
4,683,671
-----------
ALASKA--1.6%
AAA 9,000 No. Slope Boro., Ser. B, Zero Coupon, 6/30/04, FSA ................. No Opt. Call 7,364,160
-----------
ARIZONA--1.1%
Tucson Bus. Dev. Fin. Corp., Lease Rev., FGIC,
AAA 1,515++ 6.25%, 7/01/02 ................................................... N/A 1,590,189
AAA 3,495 6.25%, 7/01/06 ................................................... 7/02 @ 102 3,659,615
-----------
5,249,804
-----------
CALIFORNIA--5.2%
AAA 6,000 California St., G.O., 6.30%, 9/01/06, AMBAC ........................ No Opt. Call 6,573,660
AAA 1,910++ California St. Pub. Wrks. Rev., Univ. of Cal, Ser. A, 6.20%,
12/01/02, AMBAC .................................................. N/A 2,027,293
AAA 4,000 Glendale Hosp. Rev., Adventist Hlth. Ctr., Ser. A, 6.50%,
3/01/07, MBIA .................................................... 3/01 @ 102 4,131,720
Los Angeles Wst. Wtr. Sys. Rev., MBIA,
AAA 5,570 5.625%, 6/01/07 .................................................. 6/03 @ 102 5,841,037
AAA 3,320++ Ser. D, 6.60%, 12/01/00 .......................................... N/A 3,418,803
AAA 3,500 San Joaquin Hills Trans. Agcy., Toll Rd. Rev., Ser. A,
Zero Coupon, 1/15/07, MBIA ....................................... No Opt. Call 2,549,295
-----------
24,541,808
-----------
COLORADO--8.2%
AAA 17,150 Denver City & Cnty., G.O., Ser. B., 5.625%, 8/01/07, MBIA .......... N/A 17,863,269
Denver City & Cnty. Wtr. Brd. Rev., C.O.P., FGIC,
AAA 2,025++ 6.50%, 11/15/01 .................................................. N/A 2,095,895
AAA 1,385 6.50%, 11/15/05 .................................................. 11/01 @ 101 1,432,242
AAA 1,110++ 6.60%, 11/15/01 .................................................. N/A 1,150,304
AAA 765 6.60%, 11/15/06 .................................................. 11/01 @ 101 791,446
AAA 2,295++ 6.625%, 11/15/01 ................................................. N/A 2,379,089
AAA 1,570 6.625%, 11/15/07 ................................................. 11/01 @ 101 1,623,788
Regional Trans. Dist., Transit Vehicle Proj., Ser. A, MBIA,
AAA 6,215 5.00%, 6/01/06 ................................................... N/A 6,228,984
AAA 5,470 5.00%, 6/01/07 ................................................... N/A 5,469,234
-----------
39,034,251
-----------
DELAWARE--1.7%
AAA 8,000 Delaware Trans. Auth. Sys. Rev., 5.80%, 7/01/09, MBIA .............. 7/01/02 @ 102 8,211,200
-----------
DISTRICT OF COLUMBIA--1.8%
Dist. of Columbia, G.O., Ser. B, MBIA,
AAA 1,060++ 5.90%, 6/01/04 ................................................... N/A 1,118,226
AAA 7,190 5.90%, 6/01/06 ................................................... 6/04 @ 102 7,511,609
-----------
8,629,835
-----------
FLORIDA--11.6%
Florida St. Div. Bd. Fin. Dept. Gen. Svcs. Rev.,
Dept. Nat. Res. & Pres.,
AAA 7,000++ 6.45%, 7/01/01, MBIA ............................................. N/A 7,208,810
AAA 6,975++ 6.75%, 7/01/01, AMBAC ............................................ N/A 7,269,903
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT OPTION CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FLORIDA--(CONTINUED)
AAA $ 2,190 Florida St. Sunshine Skyway Rev., 6.60%, 7/01/07, MBIA ............. 7/01 @ 101 $ 2,251,189
Greater Orlando Aviation Auth., Arpt. Fac. Rev., Ser. B, FGIC,
AAA 4,760 6.55%, 10/01/06 .................................................. 10/02 @ 102 5,023,989
AAA 5,070 6.55%, 10/01/07 .................................................. 10/02 @ 102 5,344,490
AAA 2,650++ Jacksonville Hlth. Fac. Auth. Rev., Mem. Med. Ctr.,
Ser. A, 6.625%, 5/01/01, MBIA .................................... N/A 2,749,402
AAA 7,500 Jacksonville Hosp. Rev., Univ. Med. Ctr. Inc. Proj.,
6.50%, 2/01/07, CONNIE LEE ....................................... 2/02 @ 102 7,821,300
AAA 2,000++ No. Broward Hosp. Rev., 6.50%, 1/01/02, MBIA ....................... N/A 2,091,940
AAA 10,645 Orange Cnty., Tourist Dev. Tax Rev., Ser. A, 6.375%,
10/01/06, AMBAC .................................................. 10/02 @ 102 11,184,701
AAA 2,570++ Tampa Allagany Hlth. Sys., St. Joseph Hlth. Ctr. Rev., 6.70%,
12/01/01, MBIA ................................................... N/A 2,694,902
AAA 1,600 Tampa Util. Tax & Spec. Rev., 6.80%, 10/01/06, AMBAC ............... 10/01 @ 102 1,670,736
-----------
55,311,362
-----------
GEORGIA--0.4%
AAA 1,990 Burke Cnty. Dev. Auth. P.C.R., Oglethorpe Pwr. Corp.,
Ser. B, 6.45%, 1/01/05, MBIA ..................................... 1/04 @ 101 2,090,396
-----------
HAWAII--3.9%
Hawaii St., G.O.,
AAA 9,000 Ser. CS, 5.25%, 4/01/06, MBIA .................................... No Opt. Call 9,125,910
AAA 5,675 Ser. CP, 5.50%, 10/01/06, FGIC ................................... No Opt. Call 5,836,227
AAA 3,500 Honolulu Cnty., G.O., Ser. A, 5.80%, 1/01/07, FGIC ................. No Opt. Call 3,649,065
-----------
18,611,202
-----------
ILLINOIS--16.1%
AAA 4,930++ Alton Hlth. Fac. Rev., Christian Hlth. Ctr., 7.00%, 2/15/01, FGIC .. N/A 5,102,451
Chicago Cent. Pub. Library, G.O., AMBAC,
AAA 1,800++ Ser. A, 6.75%, 4/01/02 ........................................... N/A 1,896,030
AAA 1,600++ Ser. C, 6.75%, 4/01/02 ........................................... N/A 1,685,360
AAA 5,555++ Cook Cnty., G.O., Ser. A, 6.40%, 11/15/02, MBIA .................... N/A 5,871,635
AAA 1,775++ Cook Cnty. Cmnty. Sch. Dist., G.O., Ser. A, 6.375%, 1/01/02, FGIC .. N/A 1,818,967
AAA 7,220 Cook Cnty. Sch. Dist., Zero Coupon, 12/01/07, FGIC ................. No Opt. Call 4,892,850
Illinois Hlth. Fac. Auth. Rev.,
AAA 3,300 Elmhurst Mem. Hosp., 6.60%, 1/01/07, FGIC ........................ 1/02 @ 102 3,437,115
AAA 14,585 Sisters Svcs., Inc., Ser. C, 6.625%, 6/01/06, MBIA ............... 6/02 @ 102 15,272,099
Illinois Regl. Trans. Auth. Rev., Ser. A, FGIC,
AAA 2,780++ 6.55%, 11/01/01 .................................................. N/A 2,903,321
AAA 6,125++ 6.625%, 11/01/01 ................................................. N/A 6,402,524
AAA 8,725++ Illinois St., Ded. Tax Rev., 6.40%, 12/15/01, AMBAC ................ N/A 9,113,524
Illinois St., Sales Tax Rev., Ser. O.,
AAA 5,900 Zero Coupon, 6/15/07 ............................................. No Opt. Call 4,096,075
AAA 5,635 Zero Coupon, 6/15/08 ............................................. No Opt. Call 3,700,899
AAA 2,065++ 6.50%, 6/15/01 ................................................... N/A 2,144,523
AAA 3,935 6.50%, 6/15/06, MBIA ............................................. 6/02 @ 101 4,075,047
AAA 2,000++ 6.60%, 6/15/01 ................................................... N/A 2,078,860
AAA 2,000 Will Cnty. Cmnty. Sch. Dist. Rev., 7.05%, 12/01/08, AMBAC .......... No Opt. Call 2,262,680
-----------
76,753,960
-----------
INDIANA--2.9%
AAA 9,000 Indiana Univ. Rev., Student Fee, Zero Coupon, 8/01/06, AMBAC ....... No Opt. Call 6,571,530
AAA 2,270 Noblesville West Indpt. Sch. Bldg. Corp., G.O.,
7.00%, 7/01/07, MBIA ............................................. 1/01 @ 102 2,340,143
AAA 5,000++ Warsaw High Sch. Bldg. Corp., G.O., 6.90%, 7/01/00, MBIA ........... N/A 5,100,000
-----------
14,011,673
-----------
KENTUCKY--3.1%
Danville Multi-City Lease Rev., Swr. & Drain Sys., MBIA,
AAA 2,015++ 6.60%, 3/01/02 ................................................... N/A 2,114,662
AAA 2,160++ 6.65%, 3/01/02 ................................................... N/A 2,268,540
AAA 3,750++ Kentucky Dev. Fin. Auth. Rev., Sisters of Charity,
6.60%, 11/01/01, MBIA ............................................ N/A 3,899,175
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT OPTION CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
KENTUCKY--(CONTINUED)
AAA $ 6,410 Kentucky St. Ppty. & Bldgs. Auth. Rev., Proj. 45,
6.625%, 10/01/07, MBIA ........................................... 10/01 @ 102 $ 6,669,028
-----------
14,951,405
-----------
LOUISIANA--7.0%
Jefferson Sales Tax Dist. Rev., FGIC,
AAA 6,505++ Ser. A, 6.75%, 12/01/02 .......................................... N/A 6,807,287
AAA 4,000++ Ser. B, 6.75%, 12/01/02 .......................................... N/A 4,181,240
AAA 14,495 Ser. A, 6.75%, 12/01/06 .......................................... 12/02 @ 100 15,098,282
AAA 3,500++ Louisiana St., G.O., Ser. A, 6.50%, 5/01/02, AMBAC ................. N/A 3,673,915
AAA 5,250 New Orleans, G.O., Zero Coupon, 9/01/06, AMBAC ..................... No Opt. Call 3,828,458
-----------
33,589,182
-----------
MASSACHUSETTS--5.1%
AAA 3,670++ Mansfield, G.O., 6.65%, 1/15/02, AMBAC ............................. N/A 3,849,133
AAA 20,015++ Massachusetts Bay Trans. Auth. Rev., Gen. Tran. Sys.,
Ser. A, 6.625%, 3/01/01, MBIA ...................................... N/A 20,695,310
-----------
24,544,443
-----------
MICHIGAN--9.1%
Detroit Swr. Disp. Rev., FGIC,
AAA 1,655++ 6.60%, 7/01/01 ................................................... N/A 1,721,779
AAA 1,765++ 6.65%, 7/01/01 ................................................... N/A 1,837,065
AAA 1,880++ 6.70%, 7/01/01 ................................................... N/A 1,957,663
AAA 3,750 Grand Rapids Wtr. Sply. Rev., 6.625%, 1/01/08, FGIC ................ 1/01 @ 102 3,852,562
Michigan Mun. Bond Auth. Rev.,
AAA 1,165++ Ser. G, 6.35%, 11/01/04, AMBAC ................................... N/A 1,255,474
AAA 675 Ser. G, 6.35%, 11/01/06, AMBAC ................................... 11/04 @ 102 722,189
AAA 5,000 Spec. Tax, Ser. D, Zero Coupon, 5/15/06, MBIA .................... No Opt. Call 3,701,450
Michigan St. Bldg. Auth. Rev.,
AAA 11,590 Ser. I, 6.75%, 10/01/07, MBIA .................................... 10/01 @ 102 12,072,723
AAA 3,850++ Ser. II, 6.75%, 10/01/01, AMBAC .................................. N/A 4,024,136
AAA 11,940 Michigan St. Hosp. Fin. Auth. Rev., Sparrow Oblig. Grp.,
6.60%, 11/15/07, MBIA ............................................ 11/01 @ 102 12,415,451
-----------
43,560,492
-----------
MINNESOTA--0.7%
AAA 3,310 Minnesota St. Hsg. Fin. Auth. Rev., Ser. D., 5.35%,
8/01/06, MBIA .................................................... 2/01/05 @ 102 3,340,882
-----------
NEVADA--4.7%
AAA 6,210++ Clark Cnty. Flood Ctrl., G.O., 6.40%, 11/01/01, AMBAC .............. N/A 6,411,080
Clark Cnty. Sch. Dist., G.O., Ser. A, MBIA,
AAA 11,000 6.70%, 3/01/06 ................................................... 3/01 @ 101 11,229,130
AAA 1,500 6.75%, 3/01/07 ................................................... 3/01 @ 101 1,532,115
AAA 3,250++ Reno Hosp. Auth. Rev., St. Mary Regl. Med. Ctr.,
6.70%, 7/01/01, MBIA ............................................. N/A 3,382,632
-----------
22,554,957
-----------
NEW HAMPSHIRE--0.5%
AAA 2,310 New Hampshire High. Ed. Auth. Rev., Elliot Hosp. of Manchester,
6.70%, 10/01/06, AMBAC ........................................... 10/02 @ 102 2,397,179
-----------
NEW JERSEY--18.2%
Elizabeth, G.O., MBIA,
AAA 10,235++ 6.60%, 8/01/01 ................................................... N/A 10,664,870
AAA 265 6.60%, 8/01/06 ................................................... 8/01 @ 102 275,054
Howell Twp., G.O., FGIC,
AAA 7,715 6.70%, 1/01/06 ................................................... 1/02 @ 102 8,063,178
AAA 2,925 6.75%, 1/01/07 ................................................... 1/02 @ 102 3,058,204
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT OPTION CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW JERSEY--(CONTINUED)
New Jersey St. Highway Auth. Gen. Rev., Garden St. Pkwy., AMBAC,
AAA $ 220++ 6.15%, 1/01/02 ................................................... N/A $ 228,857
AAA 1,545 6.15%, 1/01/07 ................................................... 1/02 @ 102 1,600,651
New Jersey St. Trans. Trust Fund Auth., Trans Sys. Rev, Ser. A,
AAA 5,000 5.125%, 6/15/07, AMBAC ........................................... 6/05 @ 102 5,062,050
AAA 5,075 5.50%, 6/15/07, MBIA ............................................. No Opt. Call 5,248,870
New Jersey St. Hlth. Care Fac. Fin. Auth. Rev.,
Hackensack Med. Ctr., FGIC,
AAA 12,755++ 6.65%, 7/01/01 ................................................... N/A 13,275,786
AAA 3,735++ 6.70%, 7/01/01 ................................................... N/A 3,889,293
AAA 30,000++ New Jersey St. Tpk. Auth. Rev., Ser. C, 6.40%, 1/01/01, AMBAC N/A 30,728,400
No. Jersey Dist. Wtr. Sply. Cmnty. Rev., MBIA,
AAA 2,525 Wanaque No. Proj., Ser. B, 6.50%, 11/15/06 ....................... 11/01 @ 102 2,627,616
AAA 1,065 Wanaque So. Proj., 6.50%, 7/01/06 ................................ ETM 1,135,791
AAA 1,250 Warren Cnty. Fin. Auth., P.C.R., 6.55%, 12/01/06, MBIA ............. 12/02 @ 102 1,258,663
-----------
87,117,283
-----------
NEW MEXICO--0.8%
AAA 3,535 Gallup, P.C.R., Plains Elec. Gen., 8/15/07, MBIA ................... 8/02 @ 102 3,702,594
-----------
NEW YORK--14.8%
AAA 2,800 Nassau Cnty., G.O. Ser. Y, 5.00%, 3/01/06, FGIC .................... No Opt. Call 2,807,252
New York City, G.O.,
AAA 10,000 Ser. E, 6.125%, 8/01/06, MBIA .................................... No Opt. Call 10,623,500
AAA 13,000 Ser. A, 7.00%, 8/01/07, FSA ...................................... 8/06 @ 101.5 14,517,750
New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys. Rev.,
Ser. A, FGIC,
AAA 11,100 6.15%, 6/15/07 ................................................... 6/02 @ 101.5 11,486,391
AAA 1,090++ 6.75%, 6/15/01 ................................................... N/A 1,125,022
AAA 1,070 6.75%, 6/15/06 ................................................... 6/01 @ 101 1,097,884
AAA 1,340++ 7.00%, 6/15/01 ................................................... N/A 1,386,123
AAA 1,320 7.00%, 6/15/07 ................................................... 6/01 @ 101 1,359,732
AAA 4,500 New York St. Environ. Fac. Corp., P.C.R., Ser. D, 6.40%, 5/15/06 ... 11/04 @ 102 4,838,130
AAA 9,830 New York St. Hsg. Fin. Agcy. Rev., Hsg. Proj. Mtge., Ser. A,
5.50%, 11/01/06, FSA ............................................. 5/06 @ 102 10,020,112
AAA 5,250 New York St. Urb. Dev. Corp. Rev., 5.625%, 1/01/07, AMBAC .......... 1/03 @ 102 5,392,905
AAA 6,000 Triborough Brdg. & Tunl. Auth. Rev., Ser. B, 6.70%, 1/01/08, FGIC .. 1/01 @ 102 6,165,420
-----------
70,820,221
-----------
NORTH CAROLINA--1.3%
AAA 6,000 North Carolina Eastern Mun. Pwr. Agcy. Sys. Rev., Ser. B,
6.00%, 1/01/06, CAPMAC ........................................... No Opt. Call 6,248,040
-----------
NORTH DAKOTA--0.5%
AAA 2,035 Grand Forks Hlth. Care Fac. Rev., United Hosp. Oblig. Grp.,
6.50%, 12/01/06, MBIA ............................................ 12/01 @ 102 2,108,362
-----------
PENNSYLVANIA--11.0%
AAA 6,200++ Beaver Cnty. Hosp. Auth., 6.625%, 7/01/02, AMBAC ................... N/A 6,545,340
AAA 1,500++ Coatesville Sch. Dist., G.O., 6.60%, 03/01/01, AMBAC ............... N/A 1,522,320
AAA 10,000++ Harrisburg Auth. Lease Rev., 6.625%, 6/01/01, FSA .................. N/A 10,292,200
AAA 7,450++ Pennsylvania St., G.O., Ser. A, 6.50%, 11/01/01, FGIC .............. N/A 7,740,624
AAA 1,445++ Pennsylvania St. Higher Edl. Rev., 6.75%, 7/01/01, MBIA ............ N/A 1,505,387
AAA 4,500 Pennsylvania St. Tpk. Auth. Rev., Ser. O, 5.80%, 12/01/07, FGIC .... 12/02 @ 102 4,642,020
Philadelphia Mun. Auth., Justice Lease Rev.,
AAA 1,550 Ser. A, 7.00%, 11/15/04, MBIA .................................... 11/01 @ 102 1,624,524
AAA 2,370++ Ser. B, 7.10%, 11/15/01, FGIC .................................... N/A 2,493,785
AAA 2,950 Philadelphia Wtr. & Wastewtr. Rev., 5.50%, 6/15/06, MBIA ........... No Opt. Call 3,036,494
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT OPTION CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PENNSYLVANIA--(CONTINUED)
Pittsburgh & Allegheny Cntys. Rev., AMBAC,
AAA $ 1,015++ Ser. A, 6.50%, 7/15/01 ........................................... N/A $ 1,036,325
AAA 900++ Ser. B, 6.50%, 7/15/01 ........................................... N/A 918,909
AAA 3,000 Schuylkill Cnty. Redev. Auth., Common Lease Rev., Ser. A,
7.00%, 6/01/07, FGIC ............................................. 6/01 @ 102 3,116,550
AAA 7,800++ Westmoreland Cnty., G.O., 6.70%, 8/01/01, AMBAC N/A 7,986,732
-----------
52,461,210
-----------
RHODE ISLAND--2.4%
AAA 11,220++ Conv. Ctr. Auth. Rev., Ser. A, 6.60%, 5/15/01, MBIA ................ N/A 11,638,169
-----------
SOUTH CAROLINA--2.1%
AAA 4,390 Piedmont Mun. Pwr. Agy. Elec. Rev., 6.85%, 1/01/07, FGIC ........... 1/01 @ 102 4,515,422
AAA 5,100 Rock Hill Util. Sys. Rev., 6.50%, 1/01/07, FGIC .................... 1/01 @ 102 5,237,190
-----------
9,752,612
-----------
TENNESSEE--0.5%
AAA 2,350 Met. Nashville Arpt. Rev., Ser. C, 6.625%, 7/01/07, FGIC ........... 7/01 @ 102 2,432,297
-----------
TEXAS--16.9%
AAA 2,000++ Austin Util. Sys. Rev., 6.875%, 5/15/01, AMBAC ..................... N/A 2,079,980
AAA 8,500 Cypress-Fairbanks Indpt. Sch. Dist., G.O., Zero Coupon,
8/01/06, AMBAC ................................................... No Opt. Call 6,213,840
AAA 5,800 El Paso Cnty. Tax Rev., Ser. B, 6.40%, 2/15/07, MBIA 2/02 @ 100 5,927,194
Ft. Bend Cnty., Perm. Imprvt., G.O., FGIC,
AAA 3,375++ 6.60%, 9/01/02 ................................................... N/A 3,509,494
Harris Cnty. Toll Rd., Sr. Lien, Ser. A, FGIC,
AAA 13,555++ 6.50%, 8/15/02 ................................................... N/A 14,303,913
AAA1,955 6.50%, 8/15/06 ..................................................... 8/02 @ 102 2,051,714
AAA 590 6.50%, 8/15/07 ................................................... 8/02 @ 102 617,972
Houston Wtr. & Swr. Sys. Rev., Ser. B, FGIC,
AAA 1,775++ 6.75%, 12/01/01 .................................................. N/A 1,861,212
AAA 13,225 6.75%, 12/01/08 .................................................. 12/01 @ 102 13,802,800
AAA 1,900 No. Central Texas Hlth. Fac. Dev. Corp. Rev.,
Childrens Med. Ctr. of Dallas,
6.375%, 10/01/06, MBIA ........................................... 10/01 @ 102 1,964,410
AAA 1,550++ No. Texas Wtr. Dist., 6.40%, 6/01/03, MBIA ......................... N/A 1,619,347
AAA 3,000++ Round Rock Indpt. Sch. Dist., G.O., 6.75%, 8/15/01, MBIA ........... N/A 3,071,010
AAA 8,115 San Antonio Elec.& Gas. Rev., Ser. B, Zero Coupon, 2/01/08 ......... ETM 5,429,584
AAA 15,000 Texas Mun. Pwr. Agy. Rev., Zero Coupon, 9/01/06, AMBAC ............. No Opt. Call 10,918,650
AAA 3,745++ Texas St. Bldg. Fin. Auth. Rev., 7.00%, 2/01/01, MBIA .............. N/A 3,799,415
AAA 3,395 Tyler Cnty. Hlth. Fac. Dev. Corp. Rev., Mother Francis Hosp.,
6.50%, 7/01/06, FGIC ............................................. 7/02 @ 102 3,549,031
-----------
80,719,566
-----------
WASHINGTON--5.9%
Seattle, G.O., Ser. E, MBIA,
AAA 1,700 Zero Coupon, 12/15/07 ............................................ No Opt. Call 1,151,376
AAA 1,345 Zero Coupon, 12/15/08 ............................................ No Opt. Call 861,755
AAA 1,250 Snohomish Cnty. Pub. Util. Dist., Elec. Rev.,
6.55%, 01/01/07, FGIC ............................................ ETM 1,305,225
Snohomish Cnty. Sch. Dist., G.O., MBIA,
AAA 3,835 6.70%, 12/01/06 .................................................. 12/01 @ 100 3,928,804
AAA 4,145 6.75%, 12/01/07 .................................................. 12/01 @ 100 4,247,465
AAA 5,000 Washington St., G.O. Ser. B, 5.00%, 1/01/08, MBIA N/A 4,984,450
Washington St. Pub. Pwr. Sply. Sys. Rev.,
Nuclear Proj. No. 2, Ser. A,
AAA 12,875 Zero Coupon, 7/01/06, MBIA ....................................... No Opt. Call 9,386,519
AAA 2,265++ 6.50%, 7/01/01, FGIC ............................................. N/A 2,351,998
-----------
28,217,592
-----------
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT OPTION CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WISCONSIN--0.6%
AAA $ 2,850 Wisconsin Hlth. & Ed. Fac. Auth., Columbia Hosp. Rev., 6.50%,
11/15/06, MBIA ................................................... 11/01 @ 102 $ 2,963,915
------------
TOTAL LONG-TERM INVESTMENTS (COST $737,995,267) .................... 767,613,723
------------
SHORT-TERM INVESTMENTS**
NEW YORK
A1+ 50 Long Island Pwr. Auth., 4.40%, 7/03/00, FRDD ....................... N/A 50,000
TEXAS
A1+ 95 Harris Cnty. Hlth. Facs. Dev. Corp. Rev., St. Lukes Episcopal
Hosp., Ser. A, 4.55%, 7/03/00, FRDD .............................. N/A 95,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $145,000) ....................... 145,000
------------
TOTAL INVESTMENTS--160.7% (COST $738,140,267) ...................... 767,758,723
Other assets in excess of liabilities--1.9% ........................ 9,084,785
Liquidation value of preferred stock (62.6%) ....................... (299,100,000)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ................. $477,743,508
============
</TABLE>
----------
* Using the higher of Standard &Poor's, Moody's or Fitch's rating.
** For purposes of amortized cost valuation, the maturity date of these
instruments 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.
+ Option call provisions: date (month/year) and price of the earliest optional
call or redemption. There may be other call provisions at varying prices at
later dates.
++ This bond is pre-refunded. See Glossary for definition.
--------------------------------------------------------------------------------
THE FOLLOWING ABBREVIATIONS ARE USED IN PORTFOLIO DESCRIPTIONS:
AMBAC --American Municipal Bond Assurance Corporation
CAPMAC --Capital Markets Assurance Company
C.O.P. --Certificate of Participation
CONNIE LEE--College Construction Loan Insurance Association
ETM --Escrowed to Maturity
FGIC --Financial Guaranty Insurance Company
FRDD --Floating Rate Daily Demand**
FSA --Financial Security Assurance
G.O. --General Obligation
MBIA --Municipal Bond Insurance Association
P.C.R. --Pollution Control Revenue
--------------------------------------------------------------------------------
See Notes to Financial Statements.
10
<PAGE>
--------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $738,140,267) (Note 1) ......... $ 767,758,723
Interest receivable ........................................ 12,792,049
Other assets ............................................... 1,490
-------------
780,552,262
-------------
LIABILITIES
Dividends payable--common stock ............................ 2,327,295
Due to Custodian ........................................... 469,603
Dividends payable--preferred stock ......................... 284,887
Investment advisory fee payable (Note 2) ................... 223,452
Administration fee payable (Note 2) ........................ 44,690
Other accrued expenses ..................................... 358,827
-------------
3,708,754
-------------
NET INVESTMENT ASSETS ...................................... $ 776,843,508
-------------
Net investment assets were comprised of:
Common stock:
Par value (Note 4) ..................................... $ 454,106
Paid-in capital in excess of par ....................... 420,058,822
Preferred stock (Note 4) ................................. 299,100,000
-------------
719,612,928
Undistributed net investment income ...................... 27,865,575
Accumulated net realized loss ............................ (253,451)
Net unrealized appreciation .............................. 29,618,456
-------------
Net investment assets, June 30, 2000 ..................... $ 776,843,508
=============
Net assets applicable to common
shareholders ........................................... $ 477,743,508
=============
Net asset value per common share:
($477,743,508 / 45,410,639 shares of
common stock issued and outstanding) ..................... $10.52
======
--------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest and discount earned ........................... $22,544,813
-----------
Expenses
Investment advisory .................................... 1,303,131
Auction agent .......................................... 339,000
Administration ......................................... 260,626
Reports to shareholders ................................ 119,000
Legal .................................................. 83,000
Custodian .............................................. 80,000
Directors .............................................. 42,000
Independent accountants ................................ 32,000
Transfer agent ......................................... 18,000
Miscellaneous .......................................... 27,865
-----------
Total expenses ......................................... 2,304,622
-----------
Net investment income .................................... 20,240,191
-----------
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS
Net realized loss on investments ......................... (233,937)
Net change in unrealized appreciation
on investments ......................................... (3,178,252)
-----------
Net loss on investments .................................. (3,412,189)
-----------
NET INCREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS ...................... $16,828,002
===========
See Notes to Financial Statements.
11
<PAGE>
--------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
2000 1999
--------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET INVESTMENT ASSETS
OPERATIONS:
Net investment income .................................................... $ 20,240,191 $ 38,411,884
Net realized gain (loss) on investments .................................. (233,937) 2,678
Net change in unrealized appreciation on investments ..................... (3,178,252) (30,439,561)
------------ ------------
Net increase in net investment assets resulting from operations .......... 16,828,002 7,975,001
------------ ------------
DIVIDENDS:
To common shareholders from net investment income ........................ (13,963,557) (27,927,182)
To preferred shareholders from net investment income ..................... (5,523,866) (7,435,130)
------------ ------------
Total dividends ....................................................... (19,487,423) (35,362,312)
------------ ------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from preferred stock issuance ............................... 73,039,437 --
------------ ------------
Total increase (decrease) .............................................. 70,380,016 (27,387,311)
------------ ------------
NET INVESTMENT ASSETS
Beginning of period ........................................................ 706,463,492 733,850,803
------------ ------------
End of period (including undistributed net investment income of
$27,865,575 and $27,112,807, respectively) ............................... $776,843,508 $706,463,492
============ ============
</TABLE>
See Notes to Financial Statements.
12
<PAGE>
--------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -------------------------------------------------------
PER COMMON SHARE OPERATING PERFORMANCE: 2000 1999 1998 1997 1996 1995
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...................... $ 10.60 $ 11.21 $ 11.22 $ 10.96 $ 11.14 $ 9.98
------- ------- ------- ------- ------- -------
Net investment income ..................................... .45 .85 .85 .85 .84 .87
Net realized and unrealized gain (loss) on investments .... (.08) (.68) (.08) .20 (.24) 1.14
------- ------- ------- ------- ------- -------
Net increase from investment operations ................... .37 .17 .77 1.05 .60 2.01
------- ------- ------- ------- ------- -------
Dividends from net investment income to:
Common shareholders ..................................... (.31) (.62) (.61) (.61) (.61) (.62)
Preferred shareholders .................................. (.12) (.16) (.17) (.18) (.17) (.19)
Distributions from capital gains to:
Common shareholders ..................................... -- -- -- * * (.03)
Preferred shareholders .................................. -- -- -- * * (.01)
------- ------- ------- ------- ------- -------
Total dividends and distributions ......................... (.43) (.78) (.78) (.79) (.78) (.85)
------- ------- ------- ------- ------- -------
Capital charge with respect to the issuance
of preferred shares ..................................... (.02) -- -- -- -- --
------- ------- ------- ------- ------- -------
Net asset value, end of period** .......................... $ 10.52 $ 10.60 $ 11.21 $ 11.22 $ 10.96 $ 11.14
======= ======= ======= ======= ======= =======
Market value, end of period** ............................. $10.125 $ 9.81 $ 11.38 $ 11.00 $ 10.25 $ 10.13
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN+ .................................. 6.24% (8.43)% 9.35% 13.69% 7.43% 21.67%
======= ======= ======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS OF
COMMONSHAREHOLDERS:
Expenses++ ................................................ .99%+++ .87% .80% .88% .91% .90%
Net investment income before preferred stock dividends++ .. 8.68%+++ 7.72% 7.63% 7.70% 7.75% 8.06%
Preferred stock dividends ................................. 2.36%+++ 1.49% 1.50% 1.61% 1.59% 1.83%
Net investment income available to common stockholders .... 6.32%+++ 6.23% 6.13% 6.09% 6.16% 6.23%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands) .. $471,196 $497,324 $508,037 $500,227 $494,667 $487,923
Portfolio turnover rate ................................... 3% 4% 0% 8% 5% 9%
Net assets of common shareholders, end of period
(in thousands) .......................................... $477,744 $481,463 $508,851 $509,613 $497,686 $506,060
Asset coverage per share of preferred stock, end of period $ 64,956 $ 78,514 $ 81,550 $ 81,640 $ 80,298 $ 81,243
Preferred stock outstanding (in thousands) ................ $299,100 $225,000 $225,000 $225,000 $225,000 $225,000
</TABLE>
----------
* Actual amount paid for the year ended December 31, 1997 to preferred
shareholders was $.0008 and to common shareholders was $.0031 and for the
year ended December 31, 1996 to preferred shareholders was $.0007 and to
common shareholders was $.0024.
** Net asset value and market value are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
+ Total investment return is calculated assuming a purchase of common stock 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,
are assumed, for purposes of this calculation to be reinvested at prices
obtained under the Trust's dividend reinvestment plan. Total investment
return does not reflect brokerage commissions.
++ Ratios calculated on the basis of income and expenses applicable to both the
common and preferred stock relative to the average net assets of common
stockholders.
+++ Annualized.
The information above represents the unaudited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data, for each of the periods indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for the Trust's common stock.
13
<PAGE>
--------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL
TARGET TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
NOTE 1. ORGANIZATION & The BlackRock Municipal Target Term Trust
ACCOUNTING Inc. (the "Trust"), was organized in Maryland
POLICIES on July 16, 1991 as a diversified, closed-end
management investment company. The Trust's
investment objective is to manage a diversified portfolio of high quality
securities that will return $10 per share to investors on or about December 31,
2006 while providing current income exempt from regular federal income tax. The
ability of issuers of debt securities held by the Trust to meet their
obligations may be affected by economic developments in a specific state,
industry or region. No assurance can be given that the Trust's investment
objective will be achieved.
The following is a summary of significant accounting policies followed by the
Trust.
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 approved by the Trust's Board of
Directors. 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 in determining values. Short-term
securities are valued at amortized cost. 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 the Trust's Board of Directors.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis and the Trust amortizes premium and accretes original issue
discount on securities purchased using the interest method.
FEDERAL INCOME TAXES: It is the Trust's intention to continue to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute sufficient net income to shareholders. For this
reason and because substantially all of the Trust's gross income consists of
tax-exempt interest, no federal income tax provision is required.
DIVIDENDS AND DISTRIBUTIONS: The 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 those
estimates.
DEFERRED COMPENSATION PLAN: Under a deferred compensation plan approved by the
Board of Directors on February 24, 2000, non-interested Directors may elect to
defer receipt of all or a portion of their annual compensation.
Deferred amounts earn a return as though equivalent dollar amounts had been
invested in common shares of other BlackRock funds selected by the Directors.
This has the same economic effect as if the Directors had invested the deferred
amounts in such other BlackRock funds.
The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of the Trust. The
Trust may, however, elect to invest in common shares of those funds selected by
the Directors in order to match its deferred compensation obligations.
NOTE 2. AGREEMENTS The Trust has an Investment Advisory
Agreement with BlackRock Advisors, Inc. (the
"Advisor") which is a wholly-owned subsidiary of BlackRock, Inc., which in turn
is an indirect majority-owned subsidiary of PNC Financial Services Group, Inc.
The Trust has an Administration Agreement with Prudential Investments Fund
Management LLC ("PIFM"), a wholly-owned subsidiary of The Prudential Insurance
Company of America.
The investment advisory fee paid to the Advisor is computed weekly and
payable monthly at an annual rate of 0.35% of the Trust's average weekly net
investment assets. The administration fee paid to PIFM is also computed weekly
and payable monthly at an annual rate of 0.07% of the Trust's average weekly net
investment assets.
Pursuant to the agreements, the Advisor provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Advisor. PIFM pays occupancy and certain clerical
and accounting costs of the Trust. The Trust bears all other costs and expenses.
14
<PAGE>
NOTE 3. PORTFOLIO Purchases and sales of investment securities,
SECURITIES other than short-term investments for the
year ended June 30, 2000 aggregated
$83,929,627 and $14,332,592, respectively.
The federal income tax basis of the Trust's investments at June 30, 2000 was
the same as the basis for financial reporting purposes and, accordingly, net
unrealized appreciation on investments for federal income tax purposes was
$29,618,456, (gross unrealized appreciation--$29,875,710, gross unrealized
depreciation--$257,254).
For federal income tax purposes, the Trust had a capital loss carry forward
at December 31, 1999 of approximately $19,500 which will expire in 2006.
Accordingly, no capital gains distribution is expected to be paid to
shareholders until net gains have been realized in excess of such amounts.
NOTE 4. CAPITAL There are 200 million shares of $.01 par
value common stock authorized. Of the
45,410,639 common shares outstanding at June 30, 2000, the Advisor owned 10,639
shares. As of June 30, 2000, there were 11,964 preferred shares outstanding as
follows: Series W7-5,964, Series F7-3,000 and Series W28-3,000 which includes
2,964 shares of Series W7 issued on March 10, 2000.
The Trust may classify or reclassify any unissued shares of common stock into
one or more series of preferred stock. On November 21, 1991 the Trust
reclassified 4,500 shares of common stock and issued 3 series of Auction Market
Preferred Stock ("Preferred Stock") as follows: Series W7--1,500 shares, Series
F7--1,500 shares and Series W28--1,500 shares. The Preferred Stock had a
liquidation value of $50,000 per share plus any accumulated but unpaid
dividends. On May 16, 1995 shareholders approved a proposal to split each share
of preferred stock into two shares and simultaneously reduce each share's
liquidation preference from $50,000 to $25,000 plus any accumulated but unpaid
dividends. The stock split occurred on July 24, 1995.
On March 10, 2000, the Trust reclassified 2,964 shares of common stock and
issued an additional 2,964 shares of Series T-7 preferred stock. The additional
shares issued have identical rights and features of the existing Series W-7
preferred stock. Estimated offering cost of $319,563 and underwriting discount
of $741,000 have been charged to paid-in capital in excess of par of the common
shares.
Dividends on Series W7 and Series F7 are cumulative at a rate which is reset
every 7 days based on the results of an auction. Dividends on Series W28 are
also cumulative at a rate which is reset every 28 days based on the results of
an auction. Dividend rates ranged from 2.37% to 6.435% during the six months
ended June 30, 2000.
The Trust may not declare dividends or make other distributions on shares of
common stock or purchase any such shares if, at the time of the declaration,
distribution, or purchase, asset coverage with respect to the outstanding
Preferred Stock would be less than 200%.
The Preferred Stock is redeemable at the option of the 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 Stock is 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 the Trust as set forth in the
Articles of Incorporation are not satisfied.
The holders of Preferred Stock have voting rights equal to the holders of
common stock (one vote per share) and will vote together with holders of shares
of common stock as a single class. However, holders of Preferred Stock are also
entitled to elect two of the Trust's directors. In addition, the Investment
Company Act of 1940 requires that along with approval by shareholders that might
otherwise be required, the approval of the holders of a majority of any
outstanding Preferred Stock, voting separately as a class would be required to
(a) adopt any plan of reorganization that would adversely affect the Preferred
Stock and (b) take any action requiring a vote of security holders, including,
among other things, changes in the Trust's subclassification as a closed-end
investment company or changes in its fundamental investment restrictions.
NOTE 5. DIVIDENDS On June 30, 2000, the Board of Directors of
the Trust declared a dividend from
undistributed earnings of $0.04792 per common share payable on August 1, 2000 to
shareholders of record on July 14, 2000.
For the period July 1, 2000 to July 31, 2000 dividends and distributions
declared on preferred shares totalled $1,039,145 in aggregate for the three
outstanding preferred share series.
15
<PAGE>
--------------------------------------------------------------------------------
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
DIVIDEND REINVESTMENT PLAN
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Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders may elect to have all distributions of dividends and capital gains
reinvested by State Street Bank and Trust Company (the "Plan Agent") in Trust
shares pursuant to the Plan. Shareholders who do not participate in the Plan
will receive all distributions in cash paid by check in United States dollars
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 transfer agent, as
dividend disbursing agent.
The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the New York
Stock Exchange for the participants' accounts. The Trust will not issue any new
shares under the Plan.
Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment will be made for any fraction of a Trust share.
The Plan Agent's fees for the handling of the reinvestment of dividends
and distributions will be paid by the 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.
The Trust reserves the right to amend or terminate the Plan as applied to
any dividend or distribution paid subsequent to written notice of the change
sent to all shareholders of the Trust at least 90 days before the record date
for the dividend or distribution. The Plan also may be amended or terminated by
the Plan Agent upon at least 90 days' written notice to all shareholders of the
Trust. All correspondence concerning the Plan should be directed to the Plan
Agent at (800) 699-1BFM. The addresses are on the front of this report.
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THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
ADDITIONAL INFORMATION
--------------------------------------------------------------------------------
ANNUAL MEETING OF TRUST SHAREHOLDERS. There have been no material changes
in the Trust's investment objectives or policies that have not been approved by
the shareholders or to its charter or by-laws or in the principal risk factors
associated with investment in the Trust. There have been no changes in the
persons who are primarily responsible for the day-to-day management of the
Trust's Portfolio.
The Annual Meeting of Trust Shareholders was held May 18, 2000 to vote on
the following matters:
(1) To elect three Directors as follows:
DIRECTORS CLASS TERM EXPIRING
------- ----- ----- --------
Frank J. Fabozzi ......... II 3 years 2003
Walter F. Mondale ........ II 3 years 2003
Ralph L. Schlosstein ..... II 3 years 2003
Directors whose term of office continues beyond this meeting are Andrew
F. Brimmer, Richard E. Cavanagh, Kent Dixon, Laurence D. Fink and James
Clayburn La Force, Jr.
(2) To ratify the selection of Deloitte & Touche LLP as independent public
accountants of the Trust for the fiscal year ending December 31, 2000.
Shareholders elected the three Directors and ratified the selection of
Deloitte & Touche LLP. The results of the voting was as follows:
<TABLE>
<CAPTION>
VOTES FOR* VOTES AGAINST* ABSTENTIONS*
--------- ------------ -----------
<S> <C> <C> <C>
Frank J. Fabozzi ................................ 8,428 -- 446
Walter F. Mondale ............................... 35,009,163 -- 755,616
Ralph L. Schlosstein ............................ 35,293,623 -- 471,156
Ratification of Deloitte & Touche LLP ........... 35,281,534 200,703 282,542
</TABLE>
----------
* The votes represent common and preferred shareholders voting as a single class
except for the election of Frank J. Fabozzi who was elected by preferred
shareholders.
17
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THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
INVESTMENT SUMMARY
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THE TRUST'S INVESTMENT OBJECTIVE
The BlackRock Municipal Target Term Trust Inc.'s investment objective is to
provide current income exempt from regular federal income tax and to return $10
per share (the initial public offering price per share) to investors on or about
December 31, 2006.
WHO MANAGES THE TRUST?
BlackRock Advisors, Inc. ("the Advisor") is an SEC-registered investment
advisor. As of June 30, 2000, The Advisors and its affiliates (together,
"BlackRock") currently managed over $177 billion on behalf of taxable and
tax-exempt clients worldwide. Strategies include fixed income, equity and cash
and may incorporate both domestic and international securities. Domestic fixed
income strategies utilize the government, mortgage, corporate and municipal bond
sectors.BlackRock manages twenty-two closed-end funds that are traded on either
the New York or American stock exchanges, and a $28 billion family of open-end
funds. BlackRock manages over 629 accounts, domiciled in the United States and
overseas.
WHAT CAN THE TRUST INVEST IN?
The Trust intends to invest substantially all of its assets in a diversified
portfolio of tax-exempt Municipal Obligations which are rated Aaa by Moody's or
AAA by S&P or are covered by insurance or a guaranty of the timely payment of
both principal and interest from an entity having a Aaa or AAA rating or are
determined by the Trust's advisor to be of comparable credit quality.
WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?
The primary investment strategy for the Trust is to seek to closely match the
maturity of the assets of the portfolio with the future return of the initial
investment on or about December 31, 2006. Accordingly, the majority of the
Trust's assets are invested in securities which have maturities that are similar
to the maturity date of the Trust. Most municipal securities, however, have
optional redemption provisions (or "calls") which allow the issuer to redeem the
bonds on specified dates prior to their maturity. While call features are more
predictable than prepayments on mortgage-backed securities, they require
additional active, management considerations for the Trust. If a portion of the
Trust is invested in callable bonds, the yield to call date is analyzed instead
of the yield to the maturity of the bond, and should the security be called, the
Advisor will generally seek to reinvest the proceeds in additional assets with
maturities which are not significantly longer than the remaining term of the
Trust. In addition, in order to seek to earn back the underwriting discount and
upfront expenses and have the ability to return the full initial investment at
the end of the term, the Trust generally seeks to retain a small portion of the
income earned on its portfolio each year.
In addition to seeking the return of the initial offering price, the Advisor
also seeks to provide current income exempt from federal income tax to
investors. The portfolio managers will attempt to achieve this objective by
investing in securities that provide competitive tax-exempt income. In addition,
leverage will be used to enhance the income of the portfolio. In order to
maintain competitive yields as the Trust approaches maturity and depending on
market conditions, the Advisor will attempt to purchase securities with call
protection or maturities as close to the Trust's maturity date as possible.
Securities with call protection should provide the portfolio with some degree of
protection against reinvestment risk during times of lower prevailing interest
rates. Since the Trust's primary goal is to return the initial offering price at
maturity, any cash that the Trust receives prior to its maturity date will be
reinvested in securities with maturities which coincide with the remaining term
of the Trust. It is important to note that the Trust will be managed so as to
preserve the integrity of the return of the initial offering price. If market
conditions, such as high interest rate volatility, force a choice between
current income and risking the return of the initial offering price, it is
likely that the return of the initial offering price will be emphasized.
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HOW ARE THE TRUST'S SHARES PURCHASED AND SOLD? DOES THE TRUST PAY DIVIDENDS
REGULARLY?
The Trust's shares are traded on the New York Stock Exchange which provides
investors with liquidity on a daily basis. Orders to buy or sell shares of the
Trust must be placed through a registered broker or financial advisor. The Trust
pays monthly dividends which are typically paid on the first business day of the
month. For shares held in the shareholder's name, dividends may be reinvested in
additional shares of the Trust through the Trust's transfer agent, State Street
Bank and Trust Company. Investors who wish to hold shares in a brokerage account
should check with their financial advisor to determine whether their brokerage
firm offers dividend reinvestment services.
LEVERAGE CONSIDERATIONS IN A TERM TRUST
Under current market conditions, leverage increases the income earned by the
Trust. The Trust employs leverage primarily through the issuance of preferred
stock. Leverage permits the Trust to borrow money at short-term rates and
reinvest that money in longer-term assets which typically offer higher interest
rates. The difference between the cost of the borrowed funds and the income
earned on the proceeds that are invested in longer term assets is the benefit to
the Trust from leverage.
Leverage also increases the duration (or price volatility of the net assets) of
the Trust, which can improve the performance of the Trust in a declining rate
environment, but can cause net assets to decline faster than the market in a
rapidly rising rate environment. The Advisor's portfolio managers continuously
monitor and regularly review the Trust's use of leverage and the Trust may
reduce, or unwind, the amount of leverage employed should the Advisor consider
that reduction to be in the best interests of the shareholders.
SPECIAL CONSIDERATIONS AND RISK FACTORS RELEVANT TO TERM TRUSTS
THE TRUST IS INTENDED TO BE A LONG-TERM INVESTMENT AND IS NOT A SHORT-TERM
TRADING VEHICLE.
RETURN OF INITIAL INVESTMENT. Although the objective of the Trust is to return
its initial offering price upon termination, there can be no assurance that this
objective will be achieved.
DIVIDEND CONSIDERATIONS. The income and dividends paid by the Trust are likely
to decline to some extent over the term of the Trust due to the anticipated
shortening of the dollar-weighted average maturity of the Trust's assets.
LEVERAGE. The Trust utilizes leverage through the issuance of preferred stock
which involves special risks. The Trust's net asset value and market value may
be more volatile due to its use of leverage.
MARKET PRICE OF SHARES. The shares of closed-end investment companies such as
the Trust trade on the New York Stock Exchange (NYSE symbol: BMN) and as such
are subject to supply and demand influences. As a result, shares may trade at a
discount or a premium to their net asset value.
ILLIQUID SECURITIES. The Trust may invest in securities that are illiquid,
although under current market conditions the Trust expects to do so to only a
limited extent. These securities involve special risks.
ANTITAKEOVER PROVISIONS. Certain antitakeover provisions will make a change in
the Trust's business or management more difficult without the approval of the
Trust's Board of Directors and may have the effect of depriving shareholders of
an opportunity to sell their shares at a premium above the prevailing market
price.
MUNICIPAL OBLIGATIONS. Municipal obligations include debt obligations issued by
states, cities, and local authorities, and possessions and certain territories
of the United States to obtain funds for various public purposes, including the
construction of public facilities, the refinancing of outstanding obligations
and the obtaining of funds for general operating expenses and for loans to other
public institutions and facilities. The value of municipal debt securities
generally varies inversely with changes in prevailing market interest rates.
Depending on the amount of call protection that the securities in the Trust
have, the Trust may be subject to certain reinvestment risks in environments of
declining interest rates.
ALTERNATIVE MINIMUM TAX (AMT). The Trust may invest in securities subject to
alternative minimum tax.
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THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
GLOSSARY
--------------------------------------------------------------------------------
CLOSED-END FUND: Investment vehicle which initially offers a fixed
number of shares and trades on a stock exchange.
The fund invests in a portfolio of securities in
accordance with its stated investment objectives
and policies.
DISCOUNT: When a fund's net asset value is greater than its
stock price the fund is said to be trading at a
discount.
DIVIDEND: Income generated by securities in a portfolio and
distributed to shareholders after the deduction of
expenses. This Trust declares and pays dividends
to common shareholders on a monthly basis.
DIVIDEND REINVESTMENT: Shareholders may have all dividends and
distributions of capital gains automatically
reinvested into additional shares of the Trust.
MARKET PRICE: Price per share of a security trading in the
secondary market. For a closed-end fund, this is
the price at which one share of the fund trades on
the stock exchange. If you were to buy or sell
shares, you would pay or receive the market price.
NET ASSET VALUE (NAV): Net asset value is the total market value of all
securities and other assets held by the Trust,
plus income accrued on its investments, minus any
liabilities including accrued expenses, divided by
the total number of outstanding shares. It is the
underlying value of a single share on a given day.
Net asset value for the Trust is calculated weekly
and published in BARRON'S on Saturday and THE WALL
STREET JOURNAL each Monday.
PREMIUM: When a fund's stock price is greater than its net
asset value, the fund is said to be trading at a
premium.
PRE-REFUNDED BONDS: These securities are collateralized by U.S.
Government securities which are held in escrow and
are used to pay principal and interest on the tax
exempt issue and retire the bond in full at the
date indicated, typically at a premium to par.
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BLACKROCK ADVISORS, INC.
SUMMARY OF CLOSED-END FUNDS
--------------------------------------------------------------------------------
TAXABLE TRUSTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ --------
<S> <C> <C>
The BlackRock Income Trust Inc. BKT N/A
The BlackRock North American Government Income Trust Inc. BNA N/A
The BlackRock High Yield Trust BHY N/A
TERM TRUSTS
The BlackRock Target Term Trust Inc. BTT 12/00
The BlackRock 2001 Term Trust Inc. BTM 06/01
The BlackRock Strategic Term Trust Inc. BGT 12/02
The BlackRock Investment Quality Term Trust Inc. BQT 12/04
The BlackRock Advantage Term Trust Inc. BAT 12/05
The BlackRock Broad Investment Grade 2009 Term Trust Inc. BCT 12/09
TAX-EXEMPT TRUSTS
-------------------------------------------------------------------------------------
STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ --------
The BlackRock Investment Quality Municipal Trust Inc. BKN N/A
The BlackRock California Investment Quality Municipal Trust Inc. RAA N/A
The BlackRock Florida Investment Quality Municipal Trust RFA N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc. RNJ N/A
The BlackRock New York Investment Quality Municipal Trust Inc. RNY N/A
The BlackRock Pennsylvania Strategic Municipal Trust BPS N/A
The BlackRock Strategic Municipal Trust BSD N/A
TERM TRUSTS
The BlackRock Municipal Target Term Trust Inc. BMN 12/06
The BlackRock Insured Municipal 2008 Term Trust Inc. BRM 12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc. BFC 12/08
The BlackRock Florida Insured Municipal 2008 Term Trust BRF 12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc. BLN 12/08
The BlackRock Insured Municipal Term Trust Inc. BMT 12/10
</TABLE>
IF YOU WOULD LIKE FURTHER INFORMATION PLEASE CALL BLACKROCK AT (800) 227-7BFM
(7236) OR CONSULT WITH YOUR FINANCIAL ADVISOR.
21
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BLACKROCK ADVISORS, INC.
AN OVERVIEW
--------------------------------------------------------------------------------
BlackRock Advisors, Inc. (the "Advisor") is an SEC-registered investment
advisor. As of June 30, 2000, BlackRock and its affiliates (together
"BlackRock") managed $177 billion on behalf of taxable and tax-exempt clients
worldwide. Strategies include fixed income, equity and cash and may incorporate
both domestic and international securities. BlackRock manages twenty-two
closed-end funds that are traded on either the New York or American stock
exchanges, and a $28 billion family of open-end funds. BlackRock manages over
629 accounts, domiciled in the United States and overseas.
BlackRock's fixed income product was introduced in 1988 by a team of
highly seasoned fixed income professionals. These professionals had extensive
experience creating, analyzing and trading a variety of fixed income
instruments, including the most complex structured securities. In fact, several
individuals at BlackRock were responsible for developing many of the major
innovations in the mortgage-backed and asset-backed securities markets,
including the creation of the first CMO, the floating rate CMO, the
senior/subordinated pass-through and the multi-class asset-backed security.
BlackRock is unique among asset management and advisory firms in the
emphasis it places on the development of proprietary analytical capabilities.
Over one quarter of the firm's professionals are dedicated to the design,
maintenance and use of these systems, which are not otherwise available to
investors. BlackRock's proprietary analytical tools are used for evaluating, and
designing fixed income investment strategies for client portfolios. Securities
purchased include mortgages, corporate bonds, municipal bonds and a variety of
hedging instruments.
BlackRock has developed investment products that respond to investors'
needs and has been responsible for several major innovations in closed-end
funds. In fact, BlackRock introduced the first closed-end mortgage fund, the
first taxable and tax-exempt closed-end funds to offer a finite term, the first
closed-end fund to achieve a AAA rating by Standard & Poor's, and the first
closed-end fund to invest primarily in North American Government securities.
Currently, BlackRock's closed-end funds have dividend reinvestment plans, which
are designed to provide ongoing demand for the stock in the secondary market.
BlackRock manages a wide range of investment vehicles, each having specific
investment objectives and policies.
In view of our continued desire to provide a high level of service to all
our shareholders, BlackRock maintains a toll-free number for your questions. The
number is (800) 227-7BFM (7236). We encourage you to call us with any questions
that you may have about your BlackRock funds and we thank you for the continued
trust that you place in our abilities.
IF YOU WOULD LIKE FURTHER INFORMATION
PLEASE DO NOT HESITATE TO CALL BLACKROCK AT (800) 227-7BFM
22
<PAGE>
----------
BLACKROCK
----------
DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein
OFFICERS
Ralph L. Schlosstein, PRESIDENT
Keith T. Anderson, VICE PRESIDENT
Michael C. Huebsch, VICE PRESIDENT
Robert S. Kapito, VICE PRESIDENT
Kevin M. Klingert, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Karen H. Sabath, SECRETARY
INVESTMENT ADVISOR
BlackRock Advisors, Inc.
400 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM
ADMINISTRATOR
Prudential Investments Fund Management LLC
Gateway Center 3
100 Mulberry Street
Newark, NJ07102-4077
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171 (800) 699-1BFM
AUCTION AGENT
Deutsche Bank
4 Albany Street
New York, NY 10006
INDEPENDENT AUDITORS
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036
LEGAL COUNSEL - INDEPENDENT DIRECTORS
Debevoise & Plimpton
875 Third Avenue
New York, NY 10022
The accompanying financial statements as of June 30, 2000 were not audited
and accordingly, no opinion is expressed on them.
This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of any securities.
THE BLACKROCK MUNICIPAL TARGET TERM TRUST INC.
c/o Prudential Investments Fund Management LLC
Gateway Center 3
100 Mulberry Street
Newark, NJ07102-4077
092476-10-5
092476-20-4
092476-30-3
092476-40-2
[LOGO] Printed on recycled paper
THE
MUNICIPAL TARGET
TERM TRUST INC.
=========================
SEMI-ANNUAL REPORT
JUNE 30, 2000
