- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------
January 31, 1998
Dear Trust Shareholder:
U.S. fixed income investors have been rewarded with solid total returns
over the past twelve months ended December 31, 1997, as low inflation despite
strong economic growth drove Treasury yields lower.
The economy has shown some signs of slowing, which BlackRock expects may
persist as recessions in the emerging Asian economies and Japan will moderate
U.S. growth. We do not see immediate signs of inflationary pressure nor do we
anticipate an imminent change in monetary policy by the Federal Reserve. Our
longer-term outlook for the bond market remains optimistic, based on the
fundamentally favorable backdrop of slower economic growth, low inflation and
declining Treasury borrowing.
There are exciting developments occurring at BlackRock that we would like
to share with you. As you may know, BlackRock was acquired by PNC Bank, N.A. in
1995. In early 1998 the five investment management firms that comprise the PNC
Asset Management Group were consolidated under the BlackRock umbrella. This will
result in BlackRock Inc. becoming a $100 billion money management firm ranking
it among the 25 largest in the country. 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 detailed market and portfolio strategy commentary by
your Trust's managers in addition to the Trust's audited financial statements
and a detailed portfolio listing. We thank you for your continued investment in
the Trust and wish you a successful new year.
Sincerely,
/s/ /s/
- ----------------------- --------------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President
1
<PAGE>
January 31, 1998
Dear Shareholder:
We are pleased to present the annual report for The BlackRock California
Insured Municipal 2008 Term Trust Inc. ("the Trust") for the year ended December
31, 1997. 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 past year:
---------------------------------------------------
12/31/97 12/31/96 CHANGE HIGH LOW
- --------------------------------------------------------------------------------
STOCK PRICE $15.25 $14.625 4.27% $15.438 $13.625
- --------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $16.69 $15.86 5.23% $16.69 $15.49
- --------------------------------------------------------------------------------
THE FIXED INCOME MARKETS
The U.S. economy exhibited strong growth and low inflation during 1997,
pushing bond yields below 6% for the first time since early 1996. Fueled by
increased consumer spending and low unemployment, growth was robust. The primary
inflation indicators, consumer and producer prices, remained dormant throughout
the period and unemployment rate remained low. After increasing the Fed Funds
Rate to 5.50% in March, the Federal Reserve left the rate unchanged for the
remainder of the year, as the combination of slowing domestic growth and the
economic turmoil in Asia threatened to exert deflationary pressures on the U.S.
economy.
The positive momentum has continued into the early days of 1998 based, in
part, on the possibility of early elimination of the budget deficit and on
comments by Fed Chairman Greenspan that deflation was an issue. New home sales
recently hit a new cyclical peak, the employment picture remains very strong and
consumer confidence and spending remain high. Despite the strong growth, current
and future inflation both appear to be controlled.
Municipal bonds, as measured by the LEHMAN MUNICIPAL BOND INDEX, posted a
9.20% total return for the year, versus 9.68% for the taxable bond market
(measured by the LEHMAN AGGREGATE INDEX). The substantial decline in municipal
interest rates resulted in 1997 being the third largest issuance year on record
(a 19% increase over 1996), which negatively impacted municipal bond
performance. After keeping pace with the Treasury market rally in the second
quarter, municipals cheapened in relation to Treasuries during the latter half
of the year due to reduced participation by retail investors at lower interest
rate levels and increased supply.
California's economy is recovering. Today's growth industries include
entertainment, high technology, biotechnology and small start-up businesses
which 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
increased revenues, stabilizing the State's financial position to such a degree
that California maintains a balanced
2
<PAGE>
budget. Further, California leads the U.S. in job growth, having created over 1
million jobs during the last four years and projecting 3% employment growth rate
in 1997. All of these positive factors resulted in Fitch raising the State's
credit rating to AA- in September 1997. Asia's economic turmoil will effect the
California economy, but it is premature to gauge the severity of the impact.
Looking forward, we expect issuance of municipal securities in 1998 to be
similar to 1997 levels, with an increase in new supply being offset by a
decrease in refunding supply. BlackRock remains focused on high quality
municipal securities, because the yield advantage of purchasing lower rated
securities remains marginal. The strong state of the economy is expected to
continue, providing strong fundamentals for municipal issuers. We expect to see
more discussions about tax reform towards the end of the first quarter of 1998,
which may create buying opportunities.
THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY
The Trust's portfolio is actively managed to diversify exposure across
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. Portfolio trading activity was very low during 1997, as a
majority of the bonds in the portfolio are trading at prices which, if sold,
would result in a taxable capital gain. Additionally, as these bonds were
purchased in higher interest rate environments. Were they to be sold, the Trust
would be forced to reinvest the proceeds in lower yielding securities. Both of
these factors led us to decide that the most prudent investment strategy for
1997 was to maintain the current portfolio structure.
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. The Trust has experienced favorable short-term municipal rates over the
past year. The Federal Reserve's decision to raise the Fed funds target rate in
March 1997 did not significantly impact the short end of the municipal yield
curve, allowing the rates the Trust pays to preferred shareholders (the Trust's
leverage cost) to remain affordable.
The following charts compare the Trust's current and December 31, 1996
asset composition:
---------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
---------------------------------------------------------------------------
SECTOR DECEMBER 31, 1997 DECEMBER 31, 1996
---------------------------------------------------------------------------
Transportation 20% 21%
---------------------------------------------------------------------------
Water & Sewer 19% 19%
---------------------------------------------------------------------------
Lease Revenue 19% 19%
---------------------------------------------------------------------------
County, City & State 11% 12%
---------------------------------------------------------------------------
Utility/Power 9% 9%
---------------------------------------------------------------------------
Certificates of Participation 7% 7%
---------------------------------------------------------------------------
Hospital 6% 5%
---------------------------------------------------------------------------
Special District 3% 3%
---------------------------------------------------------------------------
Tax Revenue 2% 2%
---------------------------------------------------------------------------
Education 2% 2%
---------------------------------------------------------------------------
Other 2% 1%
---------------------------------------------------------------------------
We appreciate your continued confidence and look forward to managing The
BlackRock California Insured Municipal 2008 Term Trust Inc. in the coming years
to realize its investment objectives. Please feel free to contact the mutual
fund
3
<PAGE>
specialists at BlackRock's marketing center at (800) 227-7BFM (7236) if you have
any questions that weren't answered in this report. Additionally, you can reach
us via e-mail at [email protected].
Sincerely,
/s/ /s/
- ------------------------------ ---------------------------
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 12/31/97: $15.25
------------------------------------------------------------------------------
Net Asset Value as of 12/31/97: $16.69
------------------------------------------------------------------------------
Yield on Closing Stock Price as of 12/31/97 ($15.25)1: 5.07%
------------------------------------------------------------------------------
Current Monthly Distribution per Common Share2: $0.064375
------------------------------------------------------------------------------
Current Annualized Distribution per CommonShare2: $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
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OPTION
PRINCIPAL CALL
RATING* AMOUNT PROVISIONS++ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LONG-TERM INVESTMENTS -- 142.0%
California Hlth. Facs. Fin. Auth. Rev.,
AAA $ 6,850 Marin Gen. Hosp., Ser. A, 5.75%, 8/01/09, FSA .................. 08/03 at 102 $ 7,294,839
AAA 2,000 Sutter Hlth. Care Sys., 5.70%, 8/15/09, MBIA ................... 08/06 at 102 2,154,280
California St., G.O.,
AAA 2,000 6.25%, 9/01/08, FGIC ........................................... No Opt. Call 2,300,140
AAA 3,000 5.50%, 4/01/09, MBIA ........................................... No Opt. Call 3,252,810
AAA 15,000 6.30%, 9/01/08, MBIA ........................................... No Opt. Call 17,314,050
California St. Pub. Wks. Brd.,
AAA 2,100 Energy Efficiency, Ser. A, 5.625%, 10/01/08, AMBAC ............. 10/05 at 102 2,264,598
AAA 10,255 Lease Rev., 6.40%, 9/01/01+, MBIA .............................. No Opt. Call 11,242,044
AAA 9,165 California St. Wide Cmnty. Dev. Auth., Lease Rev.,
6.00%, 10/01/10, AMBAC ......................................... 10/02 at 10 29,861,357
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 3,220,516
AAA 5,515 Central Coast Wtr. Auth. Rev., St. Wtr. Proj. Reg. Facs.,
6.40%, 10/01/02+, AMBAC ........................................ No Opt. Call 6,133,893
AAA 5,500 Clovis Unified Sch. Dist., Ser. B, Zero Coupon,
8/01/08, FGIC .................................................. No Opt. Call 3,376,560
AAA 13,740 East Bay Mun. Utils. Dist., Wtr. Sys. Rev.,
6.00%, 6/01/09, AMBAC .......................................... 06/02 at 102 14,791,522
AAA 4,025 Elsinore Valley Mun. Wtr. Dist., C.O.P.,
Ser. A, 6.00%, 7/01/09, FGIC ................................... No Opt. Call 4,537,543
Los Angeles Cnty. Asset Leasing Corp. Rev., AMBAC,
AAA 2,910 5.95%, 12/01/07 ................................................ No Opt. Call 3,277,591
AAA 8,090 6.00%, 12/01/08 ................................................ No Opt. Call 9,153,431
AAA 8,600 6.05%, 12/01/09 ................................................ No Opt. Call 9,764,268
AAA 1,000 Los Angeles Elec. Rev., 5.75%, 9/01/12, FGIC ...................... 09/03 at 102 1,053,030
AAA 5,765 Los Angeles Wastewtr. Sys. Rev., Ser. B,
6.25%, 6/01/08, AMBAC .......................................... 06/02 at 102 6,275,318
AAA 3,075 Marysville Hosp. Rev., Fremont-Rideout Hlth. Group,
Ser. A, 6.20%, 1/01/09, AMBAC .................................. 01/03 at 10 23,351,535
AAA 8,000 Modesto Irrig. Dist. Fin. Rev., Domestic Wtr. Proj.,
Ser. A, 6.00%, 9/01/09, AMBAC .................................. 09/02 at 102 8,635,760
Northern California Pwr. Agcy., Multiple Cap. Facs.
Rev., Ser. A, MBIA,
AAA 1,000 6.40%, 8/01/07 ................................................. 08/02 at 102 1,103,650
AAA 3,045 6.50%, 8/01/08 ................................................. 08/02 at 102 3,353,063
AAA 1,000 Orange Cnty. Local Trans. Auth. Sales Tax Rev.,
6.00%, 2/15/09, MBIA ........................................... No Opt. Call 1,124,030
AAA 5,600 Pittsburg Redev. Agcy. Tax Alloc. Rev.,
Los Medanos Cmnty. Dev. Proj.,
5.50%, 8/01/07, FGIC ........................................... 08/02 at 102 5,937,064
AAA 3,075 Riverside Cnty., Trans. Comm. Sales Tax Rev.,
Ser. A, 6.50%, 6/01/01+, MBIA .................................. No Opt. Call 3,370,877
Sacramento Mun. Utils. Dist., Elec. Rev., Ser. C,
AAA 2,500 5.75%, 11/15/07, MBIA .......................................... 11/02 at 102 2,683,375
AAA 6,250 5.75%, 11/15/08, FGIC .......................................... 11/02 at 102 6,793,575
AAA 4,700 5.75%, 11/15/09, MBIA .......................................... 11/02 at 102 5,002,116
AAA 5,700 San Bernardino Cnty. C.O.P., Arpt. Impvt.,
6.00%, 7/01/07, MBIA ........................................... 07/02 at 102 6,166,374
AAA 5,000 San Bernardino Cnty. Trans. Auth., Sales Tax Rev.,
6.00%, 3/01/10, FGIC ........................................... No Opt. Cal 5,347,850
San Diego Cnty. Regl. Trans. Cmnty. Sales Tax Rev.,
Ser. A,
AAA 7,830 6.00%, 4/01/08, MBIA ........................................... 04/01 at 102 8,692,944
AAA 2,500 6.00%, 4/01/08, FGIC ........................................... No. Opt. Call 2,775,525
AAA 7,650 San Diego Redev. Agcy. Rev., Tax Allocation-Centre
City Proj., 6.00%, 9/01/08, AMBAC .............................. 09/02 at 102 8,241,192
San Jose Arpt. Rev., MBIA,
AAA 8,010 6.00%, 3/01/09 ................................................. 03/03 at 102 8,654,565
AAA 3,000 6.00%, 3/01/10 ................................................. 03/03 at 102 3,227,040
AAA 3,755 6.10%, 3/01/07 ................................................. 03/03 at 102 4,110,636
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
OPTION
PRINCIPAL CALL
RATING* AMOUNT PROVISIONS++ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AAA $2,865 Santa Clara Cnty. Fin. Auth., Fac. Replacement, Proj. A,
6.50%, 11/15/07, AMBAC ....................................... 11/04 at 102 $ 3,287,759
AAA 2,820 Santa Rosa Wtr. Rev., Ser. B, 6.20%, 9/01/09, FGIC .............. 09/02 at 101.5 3,056,090
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 5,309,550
So. California Rapid Trans. Dist. Rev., Spec.
Benefit Assmt. Dist. A1, AMBAC,
AAA 5,750 5.50%, 9/01/09 ............................................... 09/02 at 100 5,920,545
AAA 5,500 6.00%, 9/01/08 ............................................... 09/02 at 102 5,937,085
AAA 8,500 Sonoma Cnty. C.O.P., Capital Rites-Detention Fac.,
6.00%, 11/15/10, AMBAC ....................................... 11/02 at 102 9,176,600
AAA 2,000 Univ. of California Rev., Multi-Purpose Projs.,
Ser. B-1989, 6.80%, 9/01/99+, AMBAC .......................... No Opt. Call 2,129,340
West & Central Basin Fin. Auth. Rev., AMBAC,
AAA 1,665 6.125%, 8/01/02+ ............................................. No Opt. Call 1,828,136
AAA 870 6.125%, 8/01/08 .............................................. 08/02 at 102 955,243
AAA 925 6.125%, 8/01/09 .............................................. 08/02 at 102 1,015,631
AAA 2,160 West Sacramento Fin. Auth. Rev., Wtr. Sys. Impvt.,
5.25%, 8/01/08, FGIC ......................................... 08/02 at 102 2,242,253
------------
TOTAL LONG-TERM INVESTMENTS (cost $222,381,800) ................. 246,697,193
------------
SHORT-TERM INVESTMENTS** -- 1.0%
A-1+ 800 California Hlth. Facs. Fin. Auth. Rev., Ser. A, FRDD,
5.00%, 1/02/98 ............................................... 800,000
A-1+ 100 California Poll. Ctrl. Fin. Auth. Rev., Proj. B, FRDD,
4.90%, 1/02/98 ............................................... 100,000
A-1+ 100 Irvine Ranch Wtr. Dist., FRDD, 5.00%, 1/02/98 ................... 100,000
A-1+ 635 Tustin, Impvt. BD Act 1915, Dist No. 95-2-A, FRDD,
5.00%, 1/02/98 ............................................... 635,000
------------
TOTAL SHORT-TERM INVESTMENTS (cost $1,635,000) .................. 1,635,000
------------
TOTAL INVESTMENTS-- 143.0% (cost $224,016,800) .................. 248,332,193
Other assets in excess of liabilities-- 1.9% .................... 3,378,417
Liquidation value of preferred stock-- (44.9%) .................. (78,000,000)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS-- 100% ............. $173,710,610
============
</TABLE>
- ----------
* Rating using the higher of Standard & Poor's, Moody's or Fitch's.
** For purposes of amortized cost valuation, the maturity date of these
instruments is considered to be the later 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.
+ 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.
---------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
C.O.P. -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FRDD -- Floating Rate Daily Demand
FSA -- Financial Security Assurance
G.O. -- General Obligation Bond
MBIA -- Municipal Bond Insurance Association
---------------------------------------------------------------------------
See Notes to Financial Statements.
6
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED
MUNICIPAL 2008 TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $224,016,800)
(Note 1) .............................. $ 248,332,193
Interest receivable ..................... 3,698,997
Cash .................................... 40,025
Other assets ............................ 22,335
-------------
252,093,550
-------------
LIABILITIES
Dividends payable-preferred stock ....... 75,326
Advisory fee payable (Note 2) ........... 73,260
Administration fee payable (Note 2) ..... 20,932
Other accrued expenses .................. 213,422
-------------
382,940
-------------
NET INVESTMENT ASSETS ................... $ 251,710,610
=============
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 ..... 4,668,818
Accumulated net realized gain ........... 2,499
Net unrealized appreciation ............. 24,315,393
-------------
Net investment assets, December 31, 1997 $ 251,710,610
=============
Net assets applicable to common
shareholders .......................... $ 173,710,610
=============
Net asset value per common share:
($173,710,610 / 10,407,093 shares of
common stock issued and outstanding) .. $16.69
======
- --------------------------------------------------------------------------------
THE BLACKROCKCALIFORNIA INSURED
MUNICIPAL 2008 TERMTRUST INC.
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest and discount earned .......... $13,586,043
-----------
Expenses
Investment advisory ................... 855,107
Administration ........................ 244,316
Auction agent ......................... 215,000
Custodian ............................. 67,000
Reports to shareholders ............... 47,000
Directors ............................. 37,000
Audit ................................. 28,000
Transfer agent ........................ 18,000
Legal ................................. 11,000
Miscellaneous ......................... 120,245
-----------
Total expenses ...................... 1,642,668
-----------
Net investment income ................... 11,943,375
-----------
UNREALIZED GAIN ON
INVESTMENTS (NOTE 3)
Net change in unrealized appreciation on
investments ......................... 7,258,145
-----------
NET INCREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS ....... $19,201,520
===========
See Notes to Financial Statements.
7
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
STATEMENTS OF CHANGES IN
NET INVESTMENT ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------
1997 1996
---------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET INVESTMENT ASSETS
OPERATIONS:
Net investment income ............................................................... $ 11,943,375 $ 11,500,629
Net realized gain on investments .................................................... -- 149,344
Net change in unrealized appreciation (depreciation) on investments ................. 7,258,145 (1,762,159)
------------ ------------
Net increase in net investment assets resulting from operations ................... 19,201,520 9,887,814
------------ ------------
DIVIDENDS AND DISTRIBUTIONS:
To common shareholders from net investment income ................................... (8,039,350) (7,980,442)
To common shareholders from net realized gain on investments ........................ -- (45,406)
To common shareholders in excess of net realized gain on investments ................ -- (13,529)
To preferred shareholders from net investment income ................................ (2,490,040) (2,510,203)
To preferred shareholders from net realized gain on investments ..................... -- (14,102)
To preferred shareholders in excess of net realized gain on investments ............. -- (4,196)
------------ ------------
Total dividends and distributions ................................................. (10,529,390) (10,567,878)
------------ ------------
Total increase (decrease) ..................................................... 8,672,130 (680,064)
NET INVESTMENT ASSETS
Beginning of year ..................................................................... 243,038,480 243,718,544
------------ ------------
End of year ........................................................................... $251,710,610 $243,038,480
============ ============
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCKCALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------------------------------------
1997 1996 1995 1994 1993
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of the year .................. $ 15.86 $ 15.92 $ 13.66 $ 16.09 $ 14.18
--------- -------- ------- ------- --------
Net investment income ................................ 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 ...................................... 1.84 0.95 3.39 (1.36) 2.95
--------- -------- ------- ------- --------
Dividends from net investment income to:
Preferred shareholders ............................... (0.24) (0.24) (0.28) (0.21) (0.18)
Common shareholders .................................. (0.77) (0.77) (0.85) (0.86) (0.85)
Distributions from net realized gain on investments to:
Preferred shareholders ............................... -- ** -- -- **
Common shareholders .................................. -- ** -- -- (0.01)
Distributions in excess of net realized gain on
investments to:
Preferred shareholders ............................... -- ** ** -- --
Common shareholders .................................. -- ** ** -- --
--------- -------- ------- ------- --------
Total dividends and distributions ....................... (1.01) (1.01) (1.13) (1.07) (1.04)
--------- -------- ------- ------- --------
Capital charge with respect to issuance
of shares ............................................ -- -- -- **** --
--------- -------- ------- ------- --------
Net asset value, end of year* ........................... $ 16.69 $ 15.86 $ 15.92 $ 13.66 $ 16.09
========= ======== ======= ======= ========
Market value, end of year* .............................. $ 15.25 $ 14.625 $ 13.625 $ 12.00 $ 15.125
========= ======== ======= ======= ========
TOTAL INVESTMENT RETURN+ ................................ 9.90% 13.67% 20.57% (15.59)% 14.79%
========= ======== ======= ======= ========
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS:++
Expenses ................................................ 0.98% 1.03% 1.02% 1.08% 0.96%
Net investment income before preferred stock
dividends .............................................. 7.11% 7.11% 7.46% 7.70% 7.33%
Preferred stock dividends ............................... 1.48% 1.56% 1.85% 1.46% 1.15%
Net investment income available to common shareholders .. 5.63% 5.55% 5.61% 6.24% 6.18%
SUPPLEMENTAL DATA:
Average net assets of common shareholders
(in thousands) ......................................... $167,984 $161,839 $156,774 $151,669 $160,350
Portfolio turnover ...................................... 0% 3% 13% 17% 8%
Net assets of common shareholders, end of period
(in thousands) ......................................... $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
Asset coverage per share of preferred stock,
end of year# ........................................... $ 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.
The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the year 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>
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1. 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 or less are valued at amortized
cost, if their term to maturity from date of purchase is 60 days or less.
Short-term securities with a term to maturity greater than 60 days from the date
of purchase are valued at current market quotations until maturity.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized 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
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 PNC
Asset Management Group, Inc., the holding company for PNC's asset management
businesses 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
For the year ended December 31, 1997, the Trust, other than for short-term
investments, had no purchases or sales.
10
<PAGE>
The federal income tax basis of the Trust's investments at December 31, 1997 was
substantially the same as the basis for financial reporting, and accordingly,
unrealized appreciation was $24,315,393 (on both a gross and net basis).
NOTE 4. CAPITAL
There are 200 million shares of $.01 par value common stock authorized. Of the
10,407,093 common shares outstanding at December 31, 1997, the Adviser owned
7,093 shares. As of December 31, 1997, 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 2.30% to 4.125% during the year ended December 31,
1997.
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 December 31, 1997, the Board of Directors of the Trust declared a
dividend from undistributed earnings of $0.064375 per common share payable
January 31, 1998 to shareholders of record on January 15, 1998.
For the period January 1, 1998 to January 31, 1998, dividends declared on
Preferred Stock totalled $230,094 in aggregate for the two outstanding Preferred
Stock series.
11
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
The Shareholders and Board of Directors of
The BlackRock California Insured Municipal 2008 Term Trust Inc.:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of The BlackRock California Insured Municipal 2008
Term Trust Inc., as of December 31, 1997 and the related statements of
operations for the year then ended, and of changes in net investment assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at December
31, 1997, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of The BlackRock
California Insured Municipal 2008 Term Trust Inc. as of December 31, 1997, and
the results of its operations, the changes in its net investment assets and the
financial highlights for the respective stated periods, in conformity with
generally accepted accounting principles.
/s/
- -------------------------
Deloitte & Touche LLP
New York, New York
February 13, 1998
12
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA MUNICIPAL 2008 TERM TRUST INC.
TAX INFORMATION
- --------------------------------------------------------------------------------
We are required by the Internal revenue Code to advise you within 60 days
of the Trust's fiscal year end (December 31, 1997) as to the federally
tax-exempt interest dividends received by you during such fiscal year.
Accordingly, we are advising you that all dividends paid by the Trust during the
fiscal year were federally tax-exempt interest dividends.
- --------------------------------------------------------------------------------
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.
13
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
THE TRUST'S INVESTMENT OBJECTIVE
The 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 or the Adviser) is the
investment adviser for the Trust. BlackRock is a registered investment adviser
specializing in fixed income securities. Currently, BlackRock manages
approximately $55 billion of assets across the government, mortgage, corporate
and municipal sectors. These assets are managed on behalf of institutional and
individual investors in 21 closed-end funds traded on the New York or American
Stock Exchanges, several open-end funds and separate accounts for more than 125
clients in the U.S. and overseas. BlackRock is a subsidiary of PNC Asset
Management Group, Inc. which is a division of PNC Bank, N.A., one of the
nation's largest banking organizations.
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.
14
<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 asset.
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.
15
<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.
16
<PAGE>
- --------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGEMENT, 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
TERM TRUSTS
The BlackRock 1998 Term Trust Inc. .............................. BBT 12/98
The BlackRock 1999 Term Trust Inc. .............................. BNN 12/99
The BlackRock Target Term Trust Inc. ............................ BTT 12/00
The BlackRock 2001 Term Trust Inc. .............................. BLK 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
- --------------------------------------------------------------------------------
<CAPTION>
STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ ------
<S> <C> <C>
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
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.
17
<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 Administration, L.P.
P.O.Box 9095
Princeton, NJ 08543-9095
(800) 699-1BFM
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
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 Administration, L.P.
P.O.Box 9095
Princeton, NJ 08543-9095
(800) 699-1BFM
09247G 10 8
09247G 20 7
09247G 30 8
==============
The BlackRock
==============
California Insured
Municipal 2008
Term Trust Inc.
=======================
Annual Report
December 31, 1997
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