- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------
July 31, 1998
Dear Shareholder:
Domestic bonds provided investors with modest total returns during the
past six months, as interest rates generally fell. Supporting the bond market
was favorable inflation news and the belief that the Federal Reserve is unlikely
to raise short-term interest rates in the immediate future.
U.S. economic growth has slowed of late after a robust first quarter of
1998. We expect the fallout from the Asian fiscal crisis to quash any
significant rebound in U.S. growth for the remainder of the year. While we
expect that interest rates will be fairly stable in the near-term, our
longer-term outlook for the bond market remains optimistic, based on the
fundamentally favorable backdrop of low inflation, a currently high level of
real yields, and declining Treasury borrowing.
As you may know, the five investment management firms that comprised the
PNC Asset Management Group have consolidated under BlackRock, resulting in
BlackRock Inc., a $119 billion money management firm. We look forward to using
our global investment management expertise to present exciting investment
opportunities to closed-end fund shareholders in the future.
This report contains comments from your Trust's managers regarding the
markets and portfolio in addition to the Trust's financial statements and a
detailed portfolio listing. We thank you for your continued investment in the
Trust.
Sincerely,
/s/ Laurence D. Fink /s/ Ralph L. Schlosstein
- -------------------- ------------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President
1
<PAGE>
July 31, 1998
Dear Shareholder:
We are pleased to present the semi-annual report for The BlackRock
California Insured Municipal 2008 Term Trust Inc. ("the Trust") for the six
months ended June 30, 1998. 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 non-diversified closed-end bond fund whose investment
objective is to manage a portfolio of municipal debt securities that will return
$15 per share (an amount equal to the Trust's initial public offering price) to
investors on or about December 31, 2008, while providing high current income
exempt from regular federal and California income tax. The Trust seeks to
achieve this objective by investing in high credit quality ("AAA" or insured to
"AAA") California tax-exempt general obligation and revenue bonds issued by
city, county and state municipalities.
The table below summarizes the changes in the Trust's stock price and net
asset value over the period:
----------------------------------------------------
6/30/98 12/31/97 CHANGE HIGH LOW
- --------------------------------------------------------------------------------
STOCK PRICE $15.5625 $15.2500 2.05% $15.7500 $15.0000
- --------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $16.77 $16.69 0.48% $16.96 $16.54
- --------------------------------------------------------------------------------
THE FIXED INCOME MARKETS
After an extremely strong first quarter of 1998, U.S. economic growth
slowed during the past three months. Despite the strong economic growth of the
past year, inflation stayed surprisingly subdued. One explanation for the
absence of inflation in the U.S. economy stems from the aftermath of the Asian
financial crisis. U.S. exports to Asia have slowed, while the strength of the
dollar caused cheap Asian imports to flood the U.S. market and exert downward
price pressure on domestic goods.
Yields of U.S. Treasury securities have remained in a fairly narrow range
during the period. For example, the yield of the 10-Year Treasury posted a net
decline of 29 basis points (0.29%), beginning 1998 at 5.74% and closing on June
30, 1998 at 5.45%. The past six months represented a continuation of strong
Treasury performance, which has been due to moderating economic growth, low
inflation and a "flight to quality" from investors seeking a safe haven in U.S.
Treasury securities. Continued expectations that the Asian crisis will slow
economic growth and force the Fed to leave the Federal funds rate unchanged
provided additional support to the bond market. With Treasury supply waning due
to a surplus in the federal budget and an increased foreign demand for
Treasuries due to their U.S. government backing and relatively attractive
yields, we anticipate a positive environment for Treasuries for the balance of
1998.
California's economy has recovered. Today's growth industries include
entertainment, high technology, biotechnology and small start-up businesses that
have recently contributed to the state's fiscal viability. Additionally, the
construction industry is booming, as building is occurring in both the
commercial and residential sectors. A growing population has resulted in
significantly increased revenues, stabilizing the State's financial position to
such a degree that California
2
<PAGE>
maintains a balanced budget. The State's job growth continues to exceed that of
the U.S. These positive trends may result in an upgrade of the State's credit
rating to the AA category. The Asian economic turmoil's impact on the California
economy is currently being offset by increased trade with Mexico.
Municipal bonds underperformed the taxable domestic bond market during the
past six months, returning 2.69% (as measured by the LEHMAN BROTHERS MUNICIPAL
INDEX) versus the LEHMAN BROTHERS AGGREGATE INDEX'S 3.91% on a pre-tax basis.
The main forces behind municipal bond underperformance were increased municipal
bond supply (fueled by the lowest municipal interest rates since the 1960s) and
retail investor focus on the equity markets. We believe that municipals are
attractively valued versus Treasuries and our outlook for municipal securities
is favorable. The credit quality of most issuers remains strong, and we expect
that the attractive taxable equivalent yields offered by municipal securities
should bring investors back into the market.
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,
credits and coupons. Additionally, the Trust emphasizes securities whose
maturity dates match the termination date of the Trust. We have continued to
minimize trading activity in the Trust during the period, as the market prices
of a significant portion of the portfolio's bonds are currently above the prices
at which they were bought. A bond sold at a gain would result in the Trust
realizing a capital gain, which may require a taxable distribution to
shareholders. Since one of the Trust's primary investment objectives is to pay
out tax-exempt income, we believe that waiting to restructure the portfolio in a
higher interest rate environment remains the most prudent strategy.
The following chart compares the Trust's current and December 31, 1997
asset composition:
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
- --------------------------------------------------------------------------------
SECTOR JUNE 30,1998 DECEMBER 31, 1997
- --------------------------------------------------------------------------------
Lease Revenue 26% 19%
- --------------------------------------------------------------------------------
Transportation 21% 20%
- --------------------------------------------------------------------------------
Water & Sewer 20% 19%
- --------------------------------------------------------------------------------
County, City & State 11% 11%
- --------------------------------------------------------------------------------
Utility/Power 9% 9%
- --------------------------------------------------------------------------------
Hospital 5% 6%
- --------------------------------------------------------------------------------
Special District 3% 3%
- --------------------------------------------------------------------------------
Tax Revenue 2% 2%
- --------------------------------------------------------------------------------
Education 2% 2%
- --------------------------------------------------------------------------------
Other 1% 2%
- --------------------------------------------------------------------------------
Certificates of Participation -- 7%
- --------------------------------------------------------------------------------
3
<PAGE>
Additionally, the Trust employs leverage to enhance its income by paying
the Trust's preferred shareholders short-term municipal rates and investing the
proceeds in longer maturity issues which have higher yields. The Trust's ability
to pay high monthly income may be affected by the profitability of its leverage.
The Federal Reserve's neutral interest rate policy has allowed the Trust's
leverage costs to remain reasonable. At the present, we believe that leverage
will continue to positively contribute to the Trust's long-term income earning
ability.
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 California Insured Municipal 2008
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 Financial Management, Inc. BlackRock Financial Management, Inc.
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
- --------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BFC
- --------------------------------------------------------------------------------
Initial Offering Date: September 18, 1992
- --------------------------------------------------------------------------------
Closing Stock Price as of 6/30/98: $15.5625
- --------------------------------------------------------------------------------
Net Asset Value as of 6/30/98: $16.77
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 6/30/98 ($15.5625)1: 4.96%
- --------------------------------------------------------------------------------
Current Monthly Distribution per Common Share2: $0.064375
- --------------------------------------------------------------------------------
Current Annualized Distribution per Common Share2: $0.7725
- --------------------------------------------------------------------------------
- ----------
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>
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
PORTFOLIO OF INVESTMENTS JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS++ (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LONG-TERM INVESTMENTS--142.6%
California Hlth. Fac. Fin. Auth. Rev.,
AAA $ 6,850 Marin Gen. Hosp., Ser. A, 5.75%, 8/01/09, FSA ............................. 08/03 at 102 $ 7,302,511
AAA 2,000 Sutter Hlth. Care Sys., 5.70%, 8/15/09, MBIA .............................. 08/06 at 102 2,165,220
California St., G.O.,
AAA 2,000 6.25%, 9/01/08, FGIC ...................................................... No Opt. Call 2,297,700
AAA 15,000 6.30%, 9/01/08, MBIA ...................................................... No Opt. Call 17,293,650
AAA 3,000 5.50%, 4/01/09, MBIA ...................................................... No Opt. Call 3,262,560
California St. Pub. Wks. Brd.,
AAA 2,100 Energy Efficiency, Ser. A, 5.625%, 10/01/08, AMBAC .......................... 10/05 at 102 2,278,983
AAA 10,255 Lease Rev., 6.40%, 9/01/01+, MBIA ........................................... N/A 11,173,540
AAA 9,165 California St. Wide Cmnty. Dev. Auth., Lease Rev., 6.00%, 10/01/10, AMBAC ... 10/02 at 102 9,884,819
AAA 2,600 Castaic Lake Wtr. Agcy. C.O.P., Wtr. Sys. Impvt. Proj., Ser A,
7.25%, 8/01/10, MBIA ...................................................... No Opt. Call 3,234,816
AAA 5,515 Central Coast Wtr. Auth. Rev., St. Wtr. Proj. Reg. Fac.,
6.40%, 10/01/02+, AMBAC ................................................... N/A 6,114,315
AAA 5,500 Clovis Unified Sch. Dist., Ser. B, Zero Coupon, 8/01/08, FGIC ............... No Opt. Call 3,472,315
AAA 13,740 East Bay Mun. Utils. Dist., Wtr. Sys. Rev., 6.00%, 6/01/09, AMBAC ........... 06/02 at 102 14,803,064
AAA 4,025 Elsinore Valley Mun. Wtr. Dist., C.O.P., Ser. A, 6.00%, 7/01/09, FGIC ....... No Opt. Call 4,520,155
Los Angeles Cnty. Asset Leasing Corp. Rev., AMBAC,
AAA 2,910 5.95%, 12/01/07 ........................................................... No Opt. Call 3,250,470
AAA 8,090 6.00%, 12/01/08 ........................................................... No Opt. Call 9,114,598
AAA 8,600 6.05%, 12/01/09 ........................................................... No Opt. Call 9,767,622
AAA 1,000 Los Angeles Elec. Rev., 5.75%, 9/01/12, FGIC ................................ 09/03 at 102 1,062,920
AAA 5,765 Los Angeles Wastewtr. Sys. Rev., Ser. B, 6.25%, 6/01/02+, AMBAC ............. N/A 6,323,513
AAA 3,075 Marysville Hosp. Rev., Fremont-Rideout Hlth. Group, Ser. A,
6.20%, 1/01/03+, AMBAC .................................................... N/A 3,388,404
AAA 8,000 Modesto Irrig. Dist. Fin. Rev., Domestic Wtr. Proj., Se(pi)r. A,
6.00%, 9/01/02+, AMBAC .................................................... N/A 8,735,360
Northern California Pwr. Agcy., Multiple Cap. Fac. Rev., Ser. A, MBIA,
AAA 1,000 6.40%, 8/01/07 ............................................................ 08/02 at 102 1,095,130
AAA 3,045 6.50%, 8/01/08 ............................................................ 08/02 at 102 3,333,940
AAA 1,000 Orange Cnty. Local Trans. Auth. Sales Tax Rev., 6.00%, 2/15/09, MBIA ........ No Opt. Call 1,119,640
AAA 5,600 Pittsburg Redev. Agcy. Tax Alloc. Rev., Los Medanos Cmnty. Dev. Proj.,
5.50%, 8/01/07, FGIC ...................................................... 08/02 at 102 5,913,824
AAA 3,075 Riverside Cnty. Trans. Comm. Sales Tax Rev., Ser. A, 6.50%, 6/01/01+, MBIA .. N/A 3,342,802
Sacramento Mun. Utils. Dist., Elec. Rev., Ser. C,
AAA 2,500 5.75%, 11/15/07, MBIA ..................................................... 11/02 at 102 2,670,600
AAA 6,250 5.75%, 11/15/08, FGIC ..................................................... 11/02 at 102 6,805,513
AAA 4,700 5.75%, 11/15/09, MBIA ..................................................... 11/02 at 102 5,020,728
AAA 5,700 San Bernardino Cnty. C.O.P., Arpt. Impvt., 6.00%, 7/01/07, MBIA ............. 07/02 at 102 6,125,904
AAA 5,000 San Bernardino Cnty. Trans. Auth., Sales Tax Rev., 6.00%, 3/01/10, FGIC ..... No Opt. Call 5,360,950
San Diego Cnty. Regl. Trans. Cmnty. Sales Tax Rev., Ser. A,
AAA 7,830 6.00%, 4/01/08, MBIA ...................................................... 04/01 at 102 8,711,110
AAA 2,500 6.00%, 4/01/08, FGIC ...................................................... No. Opt. Call 2,781,325
AAA 7,650 San Diego Redev. Agcy. Rev., Tax Allocation-Centre City Proj.,
6.00%, 9/01/08, AMBAC ..................................................... 09/02 at 102 8,242,722
San Jose Arpt. Rev., MBIA,
AAA 3,755 6.10%, 3/01/07 ............................................................ 03/03 at 102 4,093,926
AAA 8,010 6.00%, 3/01/09 ............................................................ 03/03 at 102 8,664,177
AAA 3,000 6.00%, 3/01/10 ............................................................ 03/03 at 102 3,245,010
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS++ (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AAA $ 2,865 Santa Clara Cnty. Fin. Auth., Fac. Replacement, Proj. A,
6.50%, 11/15/04+, AMBAC ................................................... N/A $ 3,281,829
AAA 2,820 Santa Rosa Wtr. Rev., Ser. B, 6.20%, 9/01/09, FGIC .......................... 09/02 at 101.5 3,047,912
AAA 5,000 So. California Rapid Trans. Dist. C.O.P., Workers Comp. Fund,
6.00%, 7/01/10, MBIA ...................................................... 01/01 at 102.5 5,310,800
So. California Rapid Trans. Dist. Rev., Spec. Benefit Assmt. Dist. A1, AMBAC,
AAA 5,500 6.00%, 9/01/08 ............................................................ 09/02 at 102 5,926,140
AAA 5,750 5.50%, 9/01/09 ............................................................ 09/02 at 100 5,969,075
AAA 8,500 Sonoma Cnty. C.O.P., Capital Rites-Detention Fac., 6.00%, 11/15/10, AMBAC ... 11/02 at 102 9,181,105
AAA 2,000 Univ. of California Rev., Multi-Purpose Projs., Ser. B-1989,
6.80%, 9/01/99+, AMBAC .................................................... N/A 2,108,720
AAA 2,000 Univ. of California Rev., Multi-Purpose Projs., Ser. F-1989,
5.00%, 9/01/11, FGIC ...................................................... 09/06 at 101 2,045,380
West & Central Basin Fin. Auth. Rev., AMBAC,
AAA 1,665 6.125%, 8/01/02+ .......................................................... N/A 1,823,625
AAA 870 6.125%, 8/01/08 ........................................................... 08/02 at 102 952,885
AAA 925 6.125%, 8/01/09 ........................................................... 08/02 at 102 1,013,125
AAA 2,160 West Sacramento Fin. Auth. Rev., Wtr. Sys. Impvt., 5.25%, 8/01/08, FGIC ..... 08/02 at 102 2,248,236
------------
TOTAL LONG-TERM INVESTMENTS (COST $224,562,310) ............................. 248,882,668
------------
SHORT-TERM INVESTMENTS**--1.3%
A-1+ 1,160 California Hlth. Fac. Fin. Auth. Rev., Ser. A, 3.25%, 7/01/98, FRDD ......... N/A 1,160,000
California P.C.R. Fin. Auth. FRDD,
A-1+ 400 Proj. B, 3.25%, 7/01/98 ................................................... N/A 400,000
A-1+ 400 Proj. C, 3.25%, 7/01/98 ................................................... N/A 400,000
A-1+ 400 Irvine Impvt. BD Act 1915, Dist 95-12-Ser. A, 3.30%, 7/01/98, FRDD .......... N/A 400,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $2,360,000) .............................. 2,360,000
------------
TOTAL INVESTMENTS--143.9% (COST $226,922,310) ............................... 251,242,668
Other asset in excess of liabilities--0.8% .................................. 1,308,640
Liquidation value of preferred stock--(44.7%) ............................... (78,000,000)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $174,551,308
============
</TABLE>
- ----------
* Rating: 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 later of the next date or which the
security can be redeemed at par or the next date on thich the rate of
interest is adjusted.
+ This bond is prerefunded. See glossary for definition.
++ 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.
- --------------------------------------------------------------------------------
THE FOLLOWING ABBREVIATIONS ARE USED IN PORTFOLIO DESCRIPTIONS:
<TABLE>
<S> <C> <C> <C>
AMBAC -- American Municipal Bond Assurance Corporation FSA -- Financial Security Assurance
C.O.P. -- Certificate of Participation G.O. -- General Obligation Bond
FGIC -- Financial Guaranty Insurance Company MBIA -- Municipal Bond Insurance Association
FRDD -- Floating Rate Daily Demand P.C.R. -- Pollution ControlRevenue
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
6
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED
MUNICIPAL 2008 TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $226,922,310)
(Note 1) ................................. $251,242,668
Interest receivable ........................ 3,707,234
Receivable for investments sold ............ 40,000
Other assets ............................... 12,790
------------
255,002,692
------------
LIABILITIES
Payable for investments purchased .......... 2,038,089
Dividends payable-preferred stock .......... 120,015
Investment advisory fee payable (Note 2) ... 72,774
Due to custodian ........................... 51,857
Administration fee payable (Note 2) ........ 20,793
Other accrued expenses ..................... 147,856
------------
2,451,384
------------
NET INVESTMENT ASSETS $252,551,308
============
Net investment assets were comprised of:
Common Stock:
Par value (Note 4) ..................... $ 104,071
Paid-in capital in excess of par ....... 144,619,829
Preferred Stock (Note 4) ................. 78,000,000
------------
222,723,900
Undistributed net investment income ........ 5,504,551
Accumulated net realized gain .............. 2,499
Net unrealized appreciation ................ 24,320,358
------------
Net investment assets, June 30, 1998 ....... $252,551,308
============
Net assets applicable to common
shareholders ............................. $174,551,308
============
Net asset value per common share:
($174,551,308 / 10,407,093 shares of
common stock issued and outstanding) ..... $16.77
======
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED
MUNICIPAL 2008 TERMTRUST INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest and discount earned ............. $6,904,529
----------
Expenses
Investment advisory ...................... 439,702
Administration ........................... 125,629
Auction agent ............................ 117,000
Custodian ................................ 40,000
Reports to shareholders .................. 23,000
Directors ................................ 19,000
Audit .................................... 16,000
Transfer agent ........................... 9,000
Legal .................................... 6,000
Miscellaneous ............................ 18,452
----------
Total expenses ........................... 813,783
----------
Net investment income ...................... 6,090,746
----------
UNREALIZED GAIN ON
INVESTMENTS (NOTE 3)
Net change in unrealized appreciation on
investments ............................ 4,965
----------
NET INCREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS .......... $6,095,711
==========
See Notes to Financial Statements.
7
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
STATEMENTS OF CHANGES INNET INVESTMENT ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, DECEMBER 31,
1998 1997
---------- ------------
<S> <C> <C>
INCREASE IN NET INVESTMENT ASSETS
OPERATIONS:
Net investment income ................................................ $ 6,090,746 $ 11,943,375
Net change in unrealized appreciation on investments ................. 4,965 7,258,145
------------ ------------
Net increase in net investment assets resulting from operations .... 6,095,711 19,201,520
------------ ------------
DIVIDENDS AND DISTRIBUTIONS:
To common shareholders from net investment income .................... (4,019,669) (8,039,350)
To preferred shareholders from net investment income ................. (1,235,344) (2,490,040)
------------
Total dividends and distributions .................................. (5,255,013) (10,529,390)
------------
Total increase ................................................. 840,698 8,672,130
NET INVESTMENT ASSETS
Beginning of period .................................................... 251,710,610 243,038,480
------------ ------------
End of period .......................................................... $252,551,308 $251,710,610
============ ============
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCKCALIFORNIA INSURED MUNICIPAL 2008 TERMTRUST INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, -----------------------------------------------------------
1998 1997 1996 1995 1994 1993
-------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of the period ............. $ 16.69 $ 15.86 $ 15.92 $ 13.66 $ 16.09 $ 14.18
-------- -------- -------- -------- -------- --------
Net investment income 0.59 1.15 1.11 1.12 1.12 1.14
Net realized and unrealized gain (loss) on
investments ...................................... -- 0.69 (0.16) 2.27 (2.48) 1.81
-------- -------- -------- -------- -------- --------
Net increase (decrease) from investment operations ... 0.59 1.84 0.95 3.39 (1.36) 2.95
-------- -------- -------- -------- -------- --------
Dividends from net investment income to:
Common shareholders ................................ (0.39) (0.77) (0.77) (0.85) (0.86) (0.85)
Preferred shareholders ............................. (0.12) (0.24) (0.24) (0.28) (0.21) (0.18)
Distributions from net realized gain on
investments to:
Common shareholders ................................ -- -- ** -- -- (0.01)
Preferred shareholders ............................. -- -- ** -- -- **
Distributions in excess of net realized gain on
investments to:
Common shareholders ................................ -- -- ** ** -- --
Preferred shareholders ............................. -- -- ** ** -- --
-------- -------- -------- -------- -------- --------
Total dividends and distributions (0.51) (1.01) (1.01) (1.13) (1.07) (1.04)
-------- -------- -------- -------- -------- --------
Capital charge with respect to issuance of shares .... -- -- -- -- *** --
-------- -------- -------- -------- -------- --------
Net asset value, end of period* ...................... $ 16.77 $ 16.69 $ 15.86 $ 15.92 $ 13.66 $ 16.09
======== ======== ======== ======== ======== ========
Market value, end of period* ......................... $ 15.56 $ 15.25 $ 14.63 $ 13.63 $ 12.00 $ 15.13
======== ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN+ ............................. 4.61% 9.90% 13.67% 20.57% (15.59%) 14.79%
======== ======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:++
Expenses ............................................. 0.94%+++ 0.98% 1.03% 1.02% 1.08% 0.96%
Net investment income before preferred stock dividends 7.05%+++ 7.11% 7.11% 7.46% 7.70% 7.33%
Preferred stock dividends ............................ 1.43%+++ 1.48% 1.56% 1.85% 1.46% 1.15%
Net investment income available to common shareholders 5.62%+++ 5.63% 5.55% 5.61% 6.24% 6.18%
SUPPLEMENTAL DATA:
Average net assets of common shareholders
(in thousands) ..................................... $174,312 $167,984 $161,839 $156,774 $151,669 $160,350
Portfolio turnover ................................... 0% 0% 3% 13% 17% 8%
Net assets of common shareholders, end of period
(in thousands) ..................................... $174,551 $173,711 $165,038 $165,719 $142,165 $167,439
Preferred stock outstanding (in thousands) ........... $ 78,000 $ 78,000 $ 78,000 $ 78,000 $ 78,000 $ 78,000
Asset coverage per share of preferred stock,
end of period# ..................................... $ 80,946 $ 80,677 $ 77,897 $ 78,115 $141,131 $157,333
</TABLE>
- ----------
* Net asset value and market value are published in THE WALL STREET JOURNAL
each Monday.
** Actual amount paid from net realized gain on investments to preferred
shareholders was $0.00136 and $0.00344 per common share for the years ended
December 31, 1996 and 1993, respectively, and to common shareholders was
$0.004363 per share for the year ended December 31, 1996. Actual amount paid
in excess of net realized gain on investments to preferred shareholders was
$0.0004 and $0.0007 per common share for the years ended December 31, 1996
and 1995, respectively, and to common shareholders was $0.0013 and $0.0021
per share for the years ended December 31, 1996 and 1995, respectively.
*** Actual amount was $0.00006 per common share.
# A stock split occurred on July 24, 1995 (Note 4).
+ 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 the period. 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
return does not reflect brokerage commissions.
++ Ratios calculated on the basis of income and expenses applicable to both the
common and preferred shares, and preferred stock dividends, relative to the
average net assets of common shareholders.
+++ 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 the periods indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for Trust's shares.
See Notes to Financial Statements.
9
<PAGE>
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THE BLACKROCK CALIFORNIA INSURED
MUNICIPAL 2008 TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION & ACCOUNTING POLICIES The BlackRock California Insured
Municipal 2008 Term Trust Inc. (the "Trust") was organized in Maryland on August
7, 1992 as a non-diversified closed-end management investment company. The
Trust's investment objective is to manage a non-diversified portfolio of high
quality securities that will return $15 per share to investors on or about
December 31, 2008 while providing current income exempt from regular federal and
California State income taxes. The ability of issuers of debt securities held by
the Trust to meet their obligations may be affected by economic developments in
the state, a specific 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 a pricing service which uses information with respect to
transactions in bonds, quotations from bond dealers, market transactions in
comparable securities and various relationships between securities in
determining values. 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.
Short-term securities which mature in 60 days are valued at current market
quotations. Short-term securities which mature in 60 days or less are valued at
amortized cost, if their term to maturity from date of purchase is 60 days or
less or by amortizing their value on the 61st day prior to maturity, if their
original term to maturity from date of purchase exceeded 60 days.
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 generally
accepted accounting principles 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.
NOTE 2. AGREEMENTS The Trust has an Investment Advisory Agreement with BlackRock
Financial Management, Inc. (the "Adviser"), a wholly-owned corporate subsidiary
of BlackRockAdvisors, Inc., which is an indirect majority-owned subsidiary of
PNCBank, N.A., and an Administration Agreement with Princeton Administrators,
L.P. (the "Administrator"), an indirect wholly-owned subsidiary of Merrill Lynch
& Co., Inc.
The investment advisory fee paid to the Adviser 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 the Administrator is also
computed weekly and payable monthly at an annual rate of 0.10% of the Trust's
average weekly net investment assets.
Pursuant to the agreements, the Adviser provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Adviser. The Administrator pays occupancy and
certain clerical and accounting costs of the Trust. The Trust bears all other
costs and expenses.
NOTE 3. PORTFOLIO Purchases of investment securities, other than short-term
investments, for the six months ended June 30, 1998
10
<PAGE>
aggregated $2,031,700. There were no sales, other than short-term investments,
during the six months ended June 30, 1998
The federal income tax basis of the Trust's investments at June 30, 1998 was
substantially the same as the basis for financial reporting, and accordingly,
gross and net unrealized appreciation for federal income tax purposes was
$24,320,358.
NOTE 4. CAPITAL There are 200 million shares of $.01 par value common stock
authorized. Of the 10,407,093 common shares outstanding at June 30, 1998, the
Adviser owned 7,093 shares. As of June 30, 1998, there were 3,120 preferred
shares outstanding as follows: Series W28--1,560 and Series W7--1,560.
The Trust may classify or reclassify any unissued shares of common stock into
one or more series of preferred stock. On November 23, 1992, the Trust
reclassified 1,560 shares of common stock and issued 2 series of Auction Market
Preferred Stock ("Preferred Stock") as follows: Series W28--780 shares, Series
W7--780 shares. The Preferred Stock has a liquidation value of $25,000 per share
plus any accumulated but unpaid dividends. On May 16, 1995 shareholders approved
a proposal to split each share of the Trust's Auction Rate Municipal 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.
Dividends on Series W7 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 2.35% to 3.95% during the six months ended June 30,
1998.
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 stockholders 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
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 Subsequent to June 30, 1998, the Board of Directors of the
Trust declared a dividend from undistributed earnings of $0.064375 per common
share payable July 31, 1998 to shareholders of record on July 15, 1998.
For the period July 1, 1998 to July 31, 1998, dividends declared on Preferred
Stock totalled $196,541 in aggregate for the two outstanding Preferred Stock
series.
11
<PAGE>
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THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
DIVIDEND REINVESTMENT PLAN
- --------------------------------------------------------------------------------
Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders may elect to have all distributions of dividends and capital gains
automatically reinvested by State Street Bank & Trust Company (the "Plan Agent")
in Trust shares. 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 custodian, 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 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 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.
Experience under the Plan may indicate that changes are desirable.
Accordingly, 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 address is on the front of
this report.
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
There have been no material changes in the Trust's investment objectives or
policies that have not been approved by the shareholders. There have been no
changes in the Trust's charter or by-laws. There have been no changes 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 6, 1998 to vote on
the following matters:
(1) To elect two Directors to serve as follows:
DIRECTOR CLASS TERM EXPIRING
------- ----- ----- -------
Walter F. Mondale II 3 years 2001
Ralph L.Schlosstein II 3 years 2001
Directors whose term of office continues beyond this meeting are Andrew
D.Brimmer, Richard E. Cavanagh, Kent Dixon, Frank J. Fabozzi, Laurence
D. Fink, James Grosfeld 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, 1998.
Shareholders elected the two 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>
Walter F.Mondale .......................... 8,748,977 0 77,878
Ralph L.Schlosstein ....................... 8,698,122 0 128,733
Ratification of Deloitte & Touche LLP ..... 8,688,137 30,595 108,123
</TABLE>
12
<PAGE>
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THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
THE TRUST'S INVESTMENT OBJECTIVE
The BlackRock California Insured Municipal 2008 Term Trust's investment
objective is to provide current income exempt from regular federal and
California income tax and to return $15 per share (the initial public offering
price per share) to investors on or about December 31, 2008.
WHO MANAGES THE TRUST?
BlackRock Financial Management, Inc. ("BlackRock") is an SEC-registered
investment adviser. BlackRock and its affiliates currently manage over $119
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-one closed-end funds that are traded on either the New York or American
stock exchanges, and a $23 billion family of open-end equity and bond funds.
Current institutional clients number 334, domiciled in the United States and
overseas.
WHAT CAN THE TRUST INVEST IN?
The Trust intends to invest at least 80% of its total assets in California
municipal obligations insured as to the timely payment of principal and
interest. The Trust may invest up to 20% in uninsured California municipal
obligations which are rated Aaa by Moody's or AAA by S&P, or are determined by
the Adviser to be of comparable credit quality (guaranteed, escrowed or backed
in trust).
WHAT IS THE ADVISER'S INVESTMENT STRATEGY?
The Adviser will seek to meet the Trust's investment objective by managing the
assets of the Trust so as to return the initial offering price ($15 per share)
at maturity. The Trust will implement a conservative strategy that will seek to
closely match the maturity of the assets of the portfolio with the future return
of the initial investment at the end of 2008. At the Trust's termination,
BlackRock expects that the value of the securities which have matured, combined
with the value of the securities that are sold, if any, will be sufficient to
return the initial offering price to investors. On a continuous basis, the Trust
will seek its objective by actively managing its portfolio of California
municipal obligations and retaining a small amount of income each year. In
addition to seeking the return of the initial offering price, the Adviser also
seeks to provide current income exempt from regular federal and California
income tax to investors. The portfolio managers will attempt to achieve this
objective by investing in securities that provide competitive income. In
addition, leverage will be used (in an amount up to 35% of the total assets) to
enhance the income of the portfolio. In order to maintain competitive yields as
the Trust approaches maturity and depending on market conditions, the Adviser
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. Since
shorter-term securities typically yield less than longer-term securities, this
strategy will likely result in a decline in the Trust's income over time. 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.
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 last 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.
13
<PAGE>
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. In general, the portfolio is typically leveraged at
approximately 35% of total assets. 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.
BlackRock'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 BlackRock 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: BFC) 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. Investing in these securities involves 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
AMT. The Trust currently holds no securities that are subject to AMT.
14
<PAGE>
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THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 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 deduction of
expenses. This Trust declares and pays dividends on a
monthly basis.
DIVIDEND REINVESTMENT: Shareholders may have all distributions of dividends
and 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 investment, minus any liabilities
including accrued expenses, dividend 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 on
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 the U.S.
Government securities which are held in escrow and are
used to pay principal and interest on the tax-exempt
issue and to retire the bond in full at the date
indicated, typically at a premium to par.
15
<PAGE>
BlackRock
DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
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 Klingert, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Karen H. Sabath, SECRETARY
INVESTMENT ADVISER
BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
(800) 227-7BFM
ADMINISTRATOR
Princeton Administrators, L.P.
P.O.Box 9095
Princeton, NJ 08543-9095
(800) 543-6217
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 669-1BFM
AUCTION AGENT
Bankers Trust Company
Four 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
919 Third Avenue
New York, NY 10022
The accompanying financial statements as of June 30, 1998 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 CALIFORNIA INSURED
MUNICIPAL 2008 TERM TRUST INC.
c/o Princeton Administrators, L.P.
P.O.Box 9095
Princeton, NJ 08543-9095
(800) 699-1BFM
09247G 10 8
09247G 20 7
09247G 30 8
[LOGO] Printed on recycled paper
THE BLACKROCK
CALIFORNIA INSURED
MUNICIPAL 2008
TERM TRUST INC.
==================================================
SEMI-ANNUAL REPORT
JUNE 30, 1998
