- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISOR
- --------------------------------------------------------------------------------
January 31, 2000
Dear Shareholder:
After easing monetary policy three times during the fourth quarter of
1998, the Federal Reserve reversed its trend by raising the Fed funds target
rate 75 basis points (to 5.50%) over the course of 1999 in response to robust
GDP, low unemployment and rising equity prices. U.S. Treasury yields rose
significantly during the past twelve months, with the yield of the 30-year
Treasury rising above 6.00% for the first time since May 1998.
Despite the rise in Treasury yields, continued strong economic growth
may spur the Federal Reserve to proactively fight perceived inflation through
continued monetary policy tightening in 2000. Until the inflation picture
becomes clearer, we expect interest rates to remain largely range-bound.
Accordingly, we will continue to seek the most attractive relative value
opportunities and utilize our proprietary risk management systems to help the
Trust to achieve its investment objectives.
This report contains a summary of market conditions during the annual
period and a review of portfolio strategy by your Trust's managers in addition
to the Trust's audited financial statements and a detailed portfolio list of the
Trust's holdings. Continued thanks for your confidence in BlackRock. We
appreciate the opportunity to help you achieve your long-term investment goals.
Sincerely,
/S/ LAURENCE D. FINK /S/ RALPH L. SCHLOSSTEIN
- -------------------- ------------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President
1
<PAGE>
January 31, 2000
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, 1999. 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 shares are
traded on the New York Stock Exchange under the symbol "BFC." The Trust's
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
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
NAV over the past year:
- --------------------------------------------------------------------------------
12/31/99 12/31/98 Change High Low
- --------------------------------------------------------------------------------
Stock Price $13.875 $15.9375 (12.94)% $16.00 $13.6875
- --------------------------------------------------------------------------------
Net Asset Value (NAV) $16.11 $17.12 (5.90)% $17.31 $16.11
- --------------------------------------------------------------------------------
THE FIXED INCOME MARKETS
The U.S. economy sustained its growth during the past twelve months, as
U.S. exports and manufacturing continued to rebound. Additionally, consumer
strength remains an important contributor to economic growth as low unemployment
and rising incomes fuel domestic demand. After lowering interest rates three
times in the second half of 1998, and despite inflation concerns as measured by
CPI and PPI remaining relatively benign, the Federal Reserve (the "Fed") adopted
a tightening bias and raised its target for the Federal funds rate from 4.75% to
5.50% between June and November 1999. In a statement accompanying the latest
tightening on November 16, it was indicated that the Fed believes that growth
"continues in excess of the economy's growth potential"; nevertheless, the Fed
reversed their tightening stance by adopting a neutral bias.
U.S. Treasury yields rose dramatically during 1999, with the yield of
the 30-year Treasury increasing by 139 basis points to close the year at 6.48%.
Bond prices, which move inversely to their yields, were punished by the constant
threat of inflation in response to the strong economic data and the market's
uncertainty over the Fed's policy throughout the year. Recently, a weaker
dollar, higher commodity prices and strong gains in the U.S. and European equity
markets have depressed overall demand for fixed income securities.
Municipals underperformed the taxable market during the year, posting a
pre-tax -2.07% total return as measured by the LEHMAN MUNICIPAL BOND INDEX
versus the LEHMAN AGGREGATE'S -0.83%. As interest rates rose to their highest
level in four years during the third quarter of 1999, retail demand for
municipal securities increased dramatically. This rise in municipal interest
rates is directly related to the increase of alternative taxable investment
spreads over Treasuries. Currently municipals are substantially cheaper than
their long-term average valuations as compared to Treasuries. Unlike the taxable
market, which witnessed a surge of supply by issuers trying to avoid potential
year-end market dislocations due to Y2K, the
2
<PAGE>
volume of new municipal issuance is down significantly from 1998's pace,
creating a positive technical environment. We believe that the current market
environment offers some of the most attractive investment opportunities in
municipals in the last few years.
Standard & Poor's raised the State's general obligation rating in
August to AA- from A+, citing the continued economic expansion and improved
fiscal and budgetary performance. Payroll employment grew for the 40th
consecutive month with September results setting a new record high at 14 million
non-farm employees. On a year-over-year basis, non-farm employment grew 2.8% in
spite of the slow but steady decline in manufacturing, primarily in the
aerospace sector. Unemployment dropped to 4.9% in September, the State's lowest
rate ever since recording began in January 1970 and only 0.7% above the national
average. The State's fiscal 2000 budget is based upon conservative assumptions
providing some flexibility. Overall revenue collections through October were
greater than anticipated, providing the State with an improved liquidity
position which should allow it to weather potential future volatility in the
economically sensitive revenue stream.
THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY
The Trust's portfolio is managed to diversify exposure to various
sectors, issuers, revenue sources and security types. BlackRock's investment
strategy emphasizes a relative value approach, which allows the Trust to
capitalize upon changing market conditions by rotating municipal sectors and
coupons. Additionally, the Trust emphasizes securities whose maturity dates
match the termination date of the Trust.
Over the year, trading activity in the Trust remained relatively low,
as many of the securities in the Trust's portfolio continued to trade at prices
above where they were purchased. As trading activity that results in the Trust
realizing a capital gain could require a taxable distribution, we continue to
believe that waiting to restructure the portfolio in a higher interest rate
environment is the most prudent portfolio management strategy. At present, we
are confident that the Trust is on schedule to achieve its primary investment
objective of returning $15 per share upon termination and will continue to seek
investment opportunities in the municipal market.
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.
3
<PAGE>
The following chart compares the Trust's current and December 31, 1998
asset composition:
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
- --------------------------------------------------------------------------------
SECTOR DECEMBER 31, 1999 DECEMBER 31, 1998
- --------------------------------------------------------------------------------
Lease Revenue & Certificates of Participation 26% 26%
- --------------------------------------------------------------------------------
Transportation 20% 20%
- --------------------------------------------------------------------------------
Water & Sewer 20% 20%
- --------------------------------------------------------------------------------
County, City & State 12% 9%
- --------------------------------------------------------------------------------
Special District 7% 6%
- --------------------------------------------------------------------------------
Utility/Power 6% 9%
- --------------------------------------------------------------------------------
Hospital 5% 5%
- --------------------------------------------------------------------------------
Education 2% 3%
- --------------------------------------------------------------------------------
Tax Revenue 2% 2%
- --------------------------------------------------------------------------------
As a result of an internal reorganization effective January 1, 2000,
BlackRock Advisors, Inc. has replaced BlackRock Financial Management, Inc., a
wholly-owned subsidiary of BlackRock Advisors, Inc. as the Advisor of the Trust.
The investment management and other personnel responsible for providing services
to the Trust did not change as a result of the reorganization. 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 M. KLINGERT
- -------------------- ---------------------
Robert S. Kapito Kevin M. Klingert
Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager
BlackRock Advisors, Inc. BlackRock Advisors, 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 12/31/99: $13.875
- --------------------------------------------------------------------------------
Net Asset Value as of 12/31/99: $16.11
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 12/31/99 ($13.875)1: 5.57%
- --------------------------------------------------------------------------------
Current Monthly Distribution per Common Share2: $ 0.064375
- --------------------------------------------------------------------------------
Current Annualized Distribution per Common Share2: $ 0.772525
- --------------------------------------------------------------------------------
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, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL OPTION CALL
RATING* AMOUNT PROVISIONS+ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--144.1%
CALIFORNIA--141.7%
California Hlth. Fac. Fin. Auth. Rev.,
<S> <C> <C> <C> <C>
AAA $ 6,850 Marin Gen. Hosp., Ser. A, 5.75%, 8/01/09, FSA ..................... 8/03 @ 102 $ 7,048,033
AAA 2,000 Sutter Hlth. Care Sys., 5.70%, 8/15/09, MBIA ...................... 8/06 @ 102 2,077,340
California St., G.O.,
AAA 3,000 5.50%, 4/01/09, MBIA .............................................. No Opt. Call 3,096,930
AAA 2,000 6.25%, 9/01/08, FGIC .............................................. No Opt. Call 2,169,780
AAA 15,000 6.30%, 9/01/08, MBIA .............................................. No Opt. Call 16,325,550
California St. Pub. Wks. Brd.,
AAA 2,100 Energy Efficiency, Ser. A, 5.625%, 10/01/08, AMBAC ................ 10/05 @ 102 2,180,577
AAA 10,255++ Lease Rev., 6.40%, 9/01/01, MBIA .................................. N/A 10,777,595
AAA 9,165 California St. Wide Cmnty. Dev. Auth., Lease Rev.,
6.00%,10/01/10, AMBAC ............................................. 10/02 @ 102 9,601,896
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 3,012,126
AAA 5,515++ Central Coast Wtr. Auth. Rev., St. Wtr. Proj. Reg. Fac.,
6.40%, 10/01/02, AMBAC ............................................ N/A 5,879,376
AAA 5,500 Clovis Unified Sch. Dist., Ser. B, Zero Coupon, 8/01/08, FGIC ....... ETM 3,518,405
AAA 13,740 East Bay Mun. Utils. Dist., Wtr. Sys. Rev., 6.00%,
6/01/09, AMBAC .................................................... 6/02 @ 102 14,348,407
AAA 4,025 Elsinore Valley Mun. Wtr. Dist., C.O.P., Ser. A, 6.00%,
7/01/09, FGIC ..................................................... No Opt. Call 4,299,143
Los Angeles Cnty. Asset Leasing Corp. Rev., AMBAC,
AAA 2,910 5.95%, 12/01/07 ................................................... No Opt. Call 3,104,475
AAA 8,090 6.00%, 12/01/08 ................................................... No Opt. Call 8,655,168
AAA 8,600 6.05%, 12/01/09 ................................................... No Opt. Call 9,238,722
AAA 1,000 Los Angeles Elec. Rev., 5.75%, 9/01/12, FGIC ........................ 9/03 @ 102 1,023,850
AAA 5,765++ Los Angeles Wastewtr. Sys. Rev., Ser. B, 6.25%, 6/01/02, AMBAC ...... N/A 6,095,911
AAA 3,075++ Marysville Hosp. Rev., Fremont-Rideout Hlth. Group, Ser. A,
6.20%, 1/01/03, AMBAC ............................................. N/A 3,264,605
AAA 8,000++ Modesto Irrig. Dist. Fin. Rev., Domestic Wtr. Proj., Ser. A,
6.00%, 9/01/02, AMBAC ............................................. N/A 8,438,800
Northern California Pwr. Agcy., Multiple Cap. Fac. Rev.,
Ser. A, MBIA,
AAA 430++ 6.40%, 8/01/02 .................................................... N/A 457,288
AAA 570 6.40%, 8/01/07 .................................................... 8/02 @ 102 603,311
AAA 1,280++ 6.50%, 8/01/02 .................................................... N/A 1,364,301
AAA 1,725 6.50%, 8/01/08 .................................................... 8/02 @ 102 1,825,619
AAA 1,000 Orange Cnty. Local Trans. Auth. Sales Tax Rev., 6.00%,
2/15/09, MBIA ..................................................... No Opt. Call 1,065,880
AAA 5,600 Pittsburg Redev. Agcy. Tax Alloc. Rev., Los Medanos
Cmnty. Dev. Proj.,
5.50%, 8/01/07, FGIC .............................................. 8/02 @ 102 5,740,448
AAA 3,075++ Riverside Cnty., Trans. Comm. Sales Tax Rev., Ser. A, 6.50%,
6/01/01, MBIA ..................................................... N/A 3,224,076
Sacramento Mun. Utils. Dist., Elec. Rev., Ser. C,
AAA 825 5.75%, 11/15/07, MBIA ............................................. ETM 869,137
AAA 1,675 5.75%, 11/15/07, MBIA ............................................. 11/02 @ 102 1,744,747
AAA 3,750 5.75%, 11/15/08, FGIC ............................................. ETM 3,857,775
AAA 2,500 5.75%, 11/15/08, FGIC ............................................. 11/02 @ 102 2,587,625
AAA 3,950 5.75%, 11/15/09, MBIA ............................................. ETM 4,162,431
AAA 750 5.75%, 11/15/09, MBIA ............................................. 11/02 @ 102 774,000
AAA 5,700 San Bernardino Cnty. C.O.P., Arpt. Impvt., 6.00%, 7/01/07, MBIA ..... 7/02 @ 102 5,966,817
AAA 5,000 San Bernardino Cnty. Trans. Auth., Sales Tax Rev., 6.00%,
3/01/10, FGIC ..................................................... ETM 5,239,800
San Diego Cnty. Regl. Trans. Cmnty. Sales Tax Rev., Ser. A,
AAA 2,500 6.00%, 4/01/08, FGIC ............... ETM 2,620,750
AAA 7,830 6.00%, 4/01/08, MBIA .............................................. ETM 8,208,189
AAA 7,650 San Diego Redev. Agcy. Rev., Tax Allocation-Centre City Proj.,
6.00%, 9/01/08, AMBAC ............................................. 9/02 @ 102 8,000,905
San Jose Arpt. Rev., MBIA,
AAA 8,010 6.00%, 3/01/09 .................................................... 3/03 @ 102 8,396,803
AAA 3,000 6.00%, 3/01/10 .................................................... 3/03 @ 102 3,145,770
AAA 3,755 6.10%, 3/01/07 .................................................... 3/03 @ 102 3,966,406
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL OPTION CALL
RATING* AMOUNT PROVISIONS+ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (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 $ 3,136,230
AAA 2,820 Santa Rosa Wtr. Rev., Ser. B, 6.20%, 9/01/09, FGIC .................. 9/02 @ 101.5 2,952,963
AAA 5,000 So. California Rapid Trans. Dist., C.O.P., Workers Comp. Fund,
6.00%, 7/01/10, MBIA .............................................. 1/01 @ 102.5 5,178,500
So. California Rapid Trans. Dist. Rev., Spec. Benefit Assmt.
Dist. A1, AMBAC,
AAA 5,750 5.50%, 9/01/09 .................................................... 9/02 @ 100 5,803,187
AAA 5,500 6.00%, 9/01/08 .................................................... 9/02 @ 102 5,752,285
AAA 8,500 Sonoma Cnty. C.O.P., Cap. Rites-Detention Fac., 6.00%,
11/15/10, AMBAC ................................................... 11/02 @ 102 8,915,140
AAA 2,000 Univ. of California Rev., Multi-Purpose Projs., Ser. F-1989,
5.00%, 9/01/11, FGIC .............................................. 9/06 @ 101 1,954,180
AAA 3,460++ West and Central Basin Fin. Auth. Rev.,6.125%, 8/01/02, AMBAC ....... N/A 3,656,701
AAA 2,160 West Sacramento Fin. Auth. Rev., Wtr. Sys. Impvt., 5.25%,
8/01/08, FGIC ..................................................... 8/02 @ 102 2,179,051
-----------
237,507,004
-----------
PUERTO RICO--2.4%
AAA 4,000 Puerto Rico Mun. Fin. Agcy., Ser. A, 5.625%, 8/01/10, FSA ........... 8/09 @ 101 4,112,080
-----------
TOTAL LONG-TERM INVESTMENTS (COST $227,119,046) ..................... 241,619,084
-----------
SHORT-TERM INVESTMENT**--0.8%
A-1+ 1,300 Los Angeles Regl. Arpt Impvt. Corp. Lease Rev., 4.25%, 1/03/00, FRDD
(cost $1,300,000) ................................................. N/A 1,300,000
-----------
TOTAL INVESTMENTS--144.9% (COST $228,419,046) ....................... 242,919,084
Other assets in excess of liabilities--1.6% ......................... 2,752,640
Liquidation value of preferred stock--(46.5)% ....................... (78,000,000)
-----------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .................. $167,671,724
===========
</TABLE>
- ----------------------
* Using the higher of Standard & Poor's or Moody's rating.
** For purposes of amortized cost valuation, the maturity date of this
instrument is considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
+ Option call provisions: date (month/year) and price of the earliest optional
call or redemption. There may be other call provisions at varying prices at
later dates.
++ This bond is prerefunded. See glossary for definition.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
THE FOLLOWING ABBREVIATIONS ARE USED IN PORTFOLIO DESCRIPTIONS:
<S> <C>
AMBAC -- American Municipal Bond Assurance Corporation FRDD -- Floating Rate Daily Demand**
C.O.P. -- Certificate of Participation FSA -- Financial Security Assurance
ETM -- Escrowed to Maturity G.O. -- General Obligation
FGIC -- Financial Guaranty Insurance Company MBIA -- Municipal Bond Insurance Association
- -----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED
MUNICIPAL 2008 TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $228,419,046)
(Note 1) ........................................... $242,919,084
Cash ................................................... 15,040
Interest receivable .................................... 3,704,137
Other assets ........................................... 4,859
------------
246,643,120
------------
LIABILITIES
Dividends payable-common stock ......................... 669,957
Dividends payable-preferred stock ...................... 73,815
Investment advisory fee payable (Note 2) ............... 63,775
Administration fee payable (Note 2) .................... 18,221
Other accrued expenses ................................. 145,628
------------
971,396
------------
NET INVESTMENT ASSETS .................................. $245,671,724
============
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 ................ 8,447,786
Net unrealized appreciation ........................ 14,500,038
------------
Net investment assets, December 31, 1999 ........... $245,671,724
============
Net assets applicable to common
shareholders .................................... $167,671,724
============
Net asset value per common share:
($167,671,724 O 10,407,093 shares of
common stock issued and outstanding) ............... $16.11
======
- --------------------------------------------------------------------------------
THE BLACKROCKCALIFORNIA INSURED
MUNICIPAL 2008 TERMTRUST INC.
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest and discount earned ....................... $13,903,670
-----------
Operating expenses
Investment advisory ................................ 882,244
Administration ..................................... 252,070
Auction agent ...................................... 215,000
Custodian .......................................... 80,500
Reports to shareholders ............................ 50,500
Directors .......................................... 44,000
Independent accountants ............................ 34,000
Registration ....................................... 24,500
Legal .............................................. 23,500
Transfer agent ..................................... 20,500
Miscellaneous ...................................... 77,425
-----------
Total expenses ..................................... 1,704,239
-----------
Net investment income .................................. 12,199,431
-----------
UNREALIZED LOSS ON
INVESTMENTS
Net change in unrealized appreciation on
investments ........................................ (12,439,396)
-----------
NET DECREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS ....................... $ (239,965)
===========
See Notes to Financial Statements.
7
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
STATEMENTS OF CHANGES INNET INVESTMENT ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------
1999 1998
------------ ------------
INCREASE (DECREASE) IN NET INVESTMENT ASSETS
OPERATIONS:
<S> <C> <C>
Net investment income ...................................................... $ 12,199,431 $ 12,234,667
Net change in unrealized appreciation on investments ....................... (12,439,396) 2,624,041
------------ ------------
Net increase (decrease) in net investment
assets resulting from operations ....................................... (239,965) 14,858,708
------------ ------------
DIVIDENDS:
To common shareholders from net investment income .......................... (8,039,333) (8,039,335)
To preferred shareholders from net investment income ....................... (2,182,935) (2,396,026)
-----------
------------ ------------
Total dividends ............................................................ (10,222,268) (10,435,361)
------------
Total increase (decrease) ............................................... (10,462,233) 4,423,347
NET INVESTMENT ASSETS
Beginning of year .............................................................. 256,133,957 251,710,610
------------ ------------
End of year (including undistributed net investment income
of $8,447,786 and $6,470,623, respectively) ................................ $245,671,724 $256,133,957
============ ============
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCKCALIFORNIA INSURED MUNICIPAL 2008 TERMTRUST INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------
1999 1998 1997 1996 1995
------- ------- ------- ------- -------
PER COMMON SHARE OPERATING PERFORMANCE:
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of the year .......................... $ 17.12 $ 16.69 $ 15.86 $ 15.92 $ 13.66
------- ------- ------- ------- -------
Net investment income ........................................... 1.17 1.18 1.15 1.11 1.12
Net realized and unrealized gain (loss) on investments .......... (1.20) .25 .69 (.16) 2.27
------- ------- ------- ------- -------
Net increase (decrease) from investment operations .............. (.03) 1.43 1.84 0.95 3.39
------- ------- ------- ------- -------
Dividends and distributions:
Dividends from net investment income to:
Common shareholders ......................................... (.77) (.77) (.77) (.77) (.85)
Preferred shareholders ...................................... (.21) (.23) (.24) (.24) (.28)
Distributions from net realized gain on investments to:
Common shareholders ......................................... -- -- -- ** --
Preferred shareholders ...................................... -- -- -- ** --
Distributions in excess of net realized gain on investments to:
Common shareholders ......................................... -- -- -- ** **
Preferred shareholders ...................................... -- -- -- ** **
------- ------- ------- ------- -------
Total dividends and distributions ............................... (.98) (1.00) (1.01) (1.01) (1.13)
------- ------- ------- ------- -------
Net asset value, end of year* ................................... $ 16.11 $ 17.12 $ 16.69 $ 15.86 $ 15.92
======= ======= ======= ======= =======
Market value, end of year* ...................................... $ 13.88 $ 15.94 $ 15.25 $ 14.63 $ 13.63
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN ......................................... (8.40)% 9.77% 9.90% 13.67% 20.57%
======= ======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS:
Expenses ........................................................ .98% .91% .98% 1.03% 1.02%
Net investment income before preferred stock dividends++......... 7.01% 6.96% 7.11% 7.11% 7.46%
Preferred stock dividends ....................................... 1.25% 1.36% 1.48% 1.56% 1.85%
Net investment income available to common shareholders .......... 5.76% 5.60% 5.63% 5.55% 5.61%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands) ........ $174,070 $175,760 $167,984 $161,839 $156,774
Portfolio turnover .............................................. 0% 0% 0% 3% 13%
Net assets of common shareholders, end of year (in thousands) ... $167,672 $178,134 $173,711 $165,038 $165,719
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 ........ $ 78,765 $ 82,111 $ 80,701 $ 77,919 $ 78,133
</TABLE>
- -------------------
* Net asset value and market value are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
** Actual amount paid from realized gains to preferred shareholders was $0.00136
per common share for the year ended December 31, 1996, 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.
+ 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 year reported. Dividends and distributions, are
assumed for purposes of this calculation, to be reinvested at prices obtained
under the Trust's dividend reinvestment plan. Total investment return does
not reflect brokerage commissions.
++ Ratios are calculated on the basis of income and expenses applicable to both
the common and preferred stock, relative to the average net assets of common
stockholders.
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 years 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
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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
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 dealers or pricing services approved by the Trust's Board of
Directors. In determining the value of a particular security, pricing services
may use certain information with respect to transactions in such securities,
quotations from bond dealers, market transactions in comparable securities and
various relationships between securities in determining values. 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 having a remaining maturity of 60 days or less are
valued at amortized cost which approximates market value.
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 dis tribute 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 "Advisor"), a wholly-owned subsidiary of
BlackRockAdvisors, Inc., which is a wholly-owned subsidiary of BlackRock, Inc.,
which in turn is an indirect majority-owned subsidiary of PNCBank Corp. The
Trust has an Administration Agreement with Princeton Administrators, L.P. (the
"Administrator"), an indirect wholly-owned affiliate of Merrill Lynch & Co.,
Inc.
The investment advisory fee paid to the Advisor is computed weekly and
payable monthly at an annual rate of 0.35% of the Trust's average weekly net
investment assets. The administration fee paid to 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 Advisor provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Advisor. The Administrator pays occupancy and
certain clerical and accounting costs of the Trust. The Trust bears all other
costs and expenses.
NOTE 3. PORTFOLIO SECURITIES
Purchases of investment securities, other than short- term investments for the
year ended December 31, 1999 aggregated $4,163,520. There were no sales, other
than short-term investments, during the year ended December 31, 1999.
10
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The Federal income tax basis of the Trust's investments at December 31,
1999 was the same as the basis for financial reporting, and accordingly, net
unrealized appreciation was $14,500,038 (gross unrealized
appreciation--$14,627,190, gross unrealized depreciation--$127,152).
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, 1999, the Advisor owned
7,093 shares. As of December 31, 1999, 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 Market 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 2.00% to 4.85% during the year ended December 31,
1999.
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 stock, voting separately as a class would be required to
(a) adopt any plan of reorganization that would adversely affect the Preferred
Stock, and (b) take any action requiring a vote of security holders, including,
among other things, changes in the Trust's subclassification as a closed-end
investment company or changes in its fundamental investment restrictions.
NOTE 5. DIVIDENDS
Subsequent to December 31, 1999, the Board of Directors of the Trust declared a
dividend from undistributed earnings of $0.064375 per common share payable
February 1, 2000 to shareholders of record on January 14, 2000.
For the period January 1, 2000 to January 31, 2000, dividends declared on
Preferred Stock totalled $194,220 in aggregate for the two outstanding Preferred
Stock series.
NOTE 6. SUBSEQUENT EVENT
Subsequent to year end, the Trust will be issuing 1,062 shares of Auction Rate
Municipal Preferred Stock, series W7, at an aggregate offering price of
$26,550,000. The liquidation preference of each share is $25,000 plus
accumulated but unpaid dividends. The estimated net proceeds of the offering are
$25,984,500 after payment of offering expenses and the underwriting discount.
Except for the initial dividend rate and the length of the initial dividend
period for the new preferred shares, the rights and preferences of the new
preferred shares are the same as the Trust's outstanding series W7 preferred
shares.
11
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THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
REPORT OF INDEPENDENT AUDITORS
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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, 1999, and the related statement of
operations for the year then ended, and the statements of changes in net assets
for each of the two years in the period then ended and the financial highlights
for each of the 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, 1999 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, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
BlackRock California Insured Municipal 2008 Term Trust Inc. as of December 31,
1999, and the results of its operations, the changes in its net assets and the
financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
/S/ DELOITTE & TOUCHE LLP
- -------------------------
Deloitte & Touche LLP
New York, New York
February 11, 2000
12
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THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
TAX INFORMATION
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We are required by the Internal Revenue Code to advise you within 60 days
of the Trust's tax year end 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.
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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
reinvested by State Street Bank and Trust Company (the "Plan Agent") in Trust
shares pursuant to the Plan. Shareholders who do not participate in the Plan
will receive all distributions in cash paid by check in United States dollars
mailed directly to the shareholders of record (or if the shares are held in
street or other nominee name, then to the nominee) by the transfer agent, as
dividend disbursing agent.
The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the New York
Stock Exchange or elsewhere for the participants' accounts. The Trust will not
issue any new shares under the Plan.
Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment for any fraction of a Trust share.
The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any federal income tax that may be payable on
such dividends or distributions.
The Trust reserves the right to amend or terminate the Plan as applied to
any dividend or distribution paid subsequent to written notice of the change
sent to all shareholders of the Trust at least 90 days before the record date
for the dividend or distribution. The Plan also may be amended or terminated by
the Plan Agent upon at least 90 days' written notice to all shareholders of the
Trust. All correspondence concerning the Plan should be directed to the Plan
Agent at (800) 699-1BFM. The address is on the front of this report.
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ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
There have been no material changes in the Trust's investment objectives or
policies that have not been approved by the shareholders or to its charter or
by-laws or in the principal risk factors associated with investment in the
Trust. There have been no changes in the persons who are primarily responsible
for the day-to-day management of the Trust's portfolio.
We have transitioned into the Year 2000, and it is business as usual at
BlackRock.
13
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THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
INVESTMENT SUMMARY
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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 Advisors, Inc. (the "Advisor") is an SEC-registered investment
advisor. As of December 31, 1999, BlackRock and its affiliates (together
"BlackRock") managed over $165 billion on behalf of taxable and tax-exempt
clients worldwide. Strategies include fixed income, equity and cash and may
incorporate both domestic and international securities. Domestic fixed income
strategies utilize the government, mortgage, corporate and municipal bond
sectors. BlackRock manages twenty-two closed-end funds that are traded on either
the New York or American stock exchanges, and a $27 billion family of open-end
funds. BlackRock manages over 580 accounts, 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 both principal and
interest. The Trust may invest up to 20% of total assets in uninsured California
municipal obligations which are rated Aaa by Moody's or AAA by S&P, or are
determined by the Advisor to be of comparable credit quality (guaranteed,
escrowed or backed in trust).
WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?
The Advisor 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 Advisor 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 Advisor 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 to enhance the income of the portfolio. In
order to maintain competitive yields as the Trust approaches maturity and
depending on market conditions, the Advisor will attempt to purchase securities
with call protection or maturities as close to the Trust's maturity date as
possible. Securities with call protection should provide the portfolio with some
degree of protection against reinvestment risk during times of lower prevailing
interest rates. Since the Trust's primary goal is to return the initial offering
price at maturity, any cash that the Trust receives prior to its maturity date
will be reinvested in securities with maturities which coincide with the
remaining term of the Trust. 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 first business day of the
month. For shares held in the shareholder's name, dividends may be reinvested in
additional shares of the Trust through the Trust's transfer agent, State Street
Bank and Trust Company. Investors who wish to hold shares in a brokerage account
should check with their financial advisor to determine whether their brokerage
firm offers dividend reinvestment services.
14
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LEVERAGE CONSIDERATIONS IN A TERM TRUST
Under current market conditions, leverage increases the income earned by the
Trust. The Trust employs leverage primarily through the issuance of preferred
stock. Leverage permits the Trust to borrow money at short-term rates and
reinvest that money in longer-term assets which typically offer higher interest
rates. The difference between the cost of the borrowed funds and the income
earned on the proceeds that are invested in longer term assets is the benefit to
the Trust from leverage.
Leverage also increases the duration (or price volatility of the net assets) of
the Trust, which can improve the performance of the Trust in a declining rate
environment, but can cause net assets to decline faster than the market in a
rapidly rising rate environment. The Advisor's portfolio managers continuously
monitor and regularly review the Trust's use of leverage and the Trust may
reduce, or unwind, the amount of leverage employed should the Advisor consider
that reduction to be in the best interests of the shareholders.
SPECIAL CONSIDERATIONS AND RISK FACTORS RELEVANT TO TERM TRUSTS
THE TRUST IS INTENDED TO BE A LONG-TERM INVESTMENT AND IS NOT A SHORT-TERM
TRADING VEHICLE.
RETURN OF INITIAL INVESTMENT. Although the objective of the Trust is to return
its initial offering price upon termination, there can be no assurance that this
objective will be achieved.
DIVIDEND CONSIDERATIONS. The income and dividends paid by the Trust are likely
to decline to some extent over the term of the Trust due to the anticipated
shortening of the dollar-weighted average maturity of the Trust's assets.
LEVERAGE. The Trust utilizes leverage through the issuance of preferred stock
which involves special risks. The Trust's net asset value and market value may
be more volatile due to its use of leverage.
MARKET PRICE OF SHARES. The shares of closed-end investment companies such as
the Trust trade on the New York Stock Exchange (NYSE symbol: 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
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THE BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST INC.
GLOSSARY
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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, divided by the total number
of outstanding shares. It is the underlying value of a
single share on a given day. Net asset value for the
Trust is calculated weekly and published in Barron's on
Saturday and THE WALL STREET JOURNAL 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
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BLACKROCK ADVISORS, INC.
SUMMARY OF CLOSED-END FUNDS
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<TABLE>
<CAPTION>
TAXABLE TRUSTS
- ---------------------------------------------------------------------------------------------------------
STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ ------
<S> <C> <C>
The BlackRock Income Trust Inc. BKT N/A
The BlackRock North American Government Income Trust Inc. BNA N/A
The BlackRock High Yield Trust BHY N/A
TERM TRUSTS
The BlackRock Target Term Trust Inc. BTT 12/00
The BlackRock 2001 Term Trust Inc. BTM 06/01
The BlackRock Strategic Term Trust Inc. BGT 12/02
The BlackRock Investment Quality Term Trust Inc. BQT 12/04
The BlackRock Advantage Term Trust Inc. BAT 12/05
The BlackRock Broad Investment Grade 2009 Term Trust Inc. BCT 12/09
TAX-EXEMPT TRUSTS
- ---------------------------------------------------------------------------------------------------------
STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ ------
The BlackRock Investment Quality Municipal Trust Inc. BKN N/A
The BlackRock California Investment Quality Municipal Trust Inc. RAA N/A
The BlackRock Florida Investment Quality Municipal Trust RFA N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc. RNJ N/A
The BlackRock New York Investment Quality Municipal Trust Inc. RNY N/A
The BlackRock Pennsylvania Strategic Municipal Trust BPS N/A
The BlackRock Strategic Municipal Trust BSD N/A
TERM TRUSTS
The BlackRock Municipal Target Term Trust Inc. BMN 12/06
The BlackRock Insured Municipal 2008 Term Trust Inc. BRM 12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc. BFC 12/08
The BlackRock Florida Insured Municipal 2008 Term Trust BRF 12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc. BLN 12/08
The BlackRock Insured Municipal Term Trust Inc. BMT 12/10
</TABLE>
17
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BLACKROCK ADVISORS, INC.
AN OVERVIEW
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BlackRock Advisors, Inc. (the "Advisor") is an SEC-registered investment
advisor. As of December 31, 1999, the Advisor and its affiliates (together,
"BlackRock") managed $165 billion on behalf of taxable and tax-exempt clients
worldwide. Strategies include fixed income, equity and cash and may incorporate
both domestic and international securities. BlackRock manages twenty-two
closed-end funds that are traded on either the New York or American stock
exchanges, and a $27 billion family of open-end funds. BlackRock manages over
580 accounts, domiciled in the United States and overseas.
BlackRock's fixed income product was introduced in 1988 by a team of highly
seasoned fixed income professionals. These professionals had extensive
experience creating, analyzing and trading a variety of fixed income
instruments, including the most complex structured securities. In fact, several
individuals at BlackRock were responsible for developing many of the major
innovations in the mortgage-backed and asset-backed securities markets,
including the creation of the first CMO, the floating rate CMO, the
senior/subordinated pass-through and the multi-class asset-backed security.
BlackRock is unique among asset management and advisory firms in the
emphasis it places on the development of proprietary analytical capabilities.
Over one quarter of the firm's professionals is dedicated to the design,
maintenance and use of these systems, which are not otherwise available to
investors. BlackRock's proprietary analytical tools are used for evaluating, and
designing fixed income investment strategies for client portfolios. Securities
purchased include mortgages, corporate bonds, municipal bonds and a variety of
hedging instruments.
BlackRock has developed investment products that respond to investors'
needs and has been responsible for several major innovations in closed-end
funds. In fact, BlackRock introduced the first closed-end mortgage fund, the
first taxable and tax-exempt closed-end funds to offer a finite term, the first
closed-end fund to achieve a AAA rating by Standard & Poor's, and the first
closed-end fund to invest primarily in North American Government securities.
Currently, BlackRock's closed-end funds have dividend reinvestment plans, which
are designed to provide ongoing demand for the stock in the secondary market.
BlackRock manages a wide range of investment vehicles, each having specific
investment objectives and policies.
In view of our continued desire to provide a high level of service to all
our shareholders, BlackRock maintains a toll-free number for your questions. The
number is (800) 227-7BFM (7236). We encourage you to call us with any questions
that you may have about your BlackRock funds and we thank you for the continued
trust that you place in our abilities.
IF YOU WOULD LIKE FURTHER INFORMATION
PLEASE DO NOT HESITATE TO CALL BLACKROCK AT (800) 227-7BFM
18
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BLACKROCK
DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein
OFFICERS
Ralph L. Schlosstein, PRESIDENT
Keith T. Anderson, VICE PRESIDENT
Michael C. Huebsch, VICE PRESIDENT
Robert S. Kapito, VICE PRESIDENT
Kevin Klingert, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Karen H. Sabath, SECRETARY
INVESTMENT ADVISOR
BlackRock Advisors, Inc.
400 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM
ADMINISTRATOR
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
Deutsche Bank
4 Albany Street
New York, NY 10006
INDEPENDENT AUDITORS
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036
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) 543-6217
09247G 10 8
09247G 20 7
09247G 30 6
Printed on recycled paper
THE BLACKROCK
CALIFORNIA INSURED MUNICIPAL 2008
TERM TRUST INC.
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ANNUAL REPORT
DECEMBER 31, 1999
