<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------
January 31, 1997
Dear Trust Shareholder,
The domestic fixed income markets over the past twelve months were once
again greatly influenced by interest rate volatility. Significant swings in the
pace of U.S. economic growth influenced the bond market's performance, as every
release of economic data led to market participant speculation regarding the
direction of Federal Reserve monetary policy.
Despite strong growth and rising wage pressures, the Fed's decision not to
raise interest rates at their two most recent policy meetings has markedly
increased the stakes in the bond market. The rationale behind the Fed's decision
not to raise interest rates appears to focus on the benign inflation data
released during the third quarter. Should economic growth slow and inflation
remain benign, the Fed will be proven correct in their inaction and the market
should be expected to rally significantly. On the other hand, signs of a
stronger economy could result in weaker bond prices as the likelihood of a Fed
tightening would increase.
BlackRock maintains a positive view on the bond market. On balance, the
outlook for moderate inflation remains intact, suggesting that further declines
in interest rates are likely. In addition to this favorable fundamental
backdrop, foreign demand for U.S. bonds has increased due to the renewed
attractiveness of the U.S. bond market on a global basis.
This annual report is designed to help you stay informed about your
investment and represents our ongoing commitment to improving our communication
with you. We hope you find this report useful now and in the future. We
appreciate your confidence and look forward to helping you achieve your
long-term investment goals.
Sincerely,
[SIG]
[SIG]
Ralph L. Schlosstein
Laurence D. Fink
President
Chairman
1
<PAGE>
January 31, 1997
Dear Shareholder:
We are pleased to present the annual report for The BlackRock Florida
Insured Municipal 2008 Term Trust ("the Trust") for the year ended December 31,
1996. 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 "BRF". 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 high current income
exempt from regular federal income tax and Florida intangible personal property
tax. The Trust seeks to achieve this objective by investing in high credit
quality ("AAA" or insured to "AAA") Florida 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:
<TABLE>
<CAPTION>
12/31/96 12/31/95 CHANGE HIGH LOW
<S> <C> <C> <C> <C> <C>
STOCK PRICE $ 15.125 $ 15.000 0.83% $ 15.50 $ 13.75
NET ASSET VALUE (NAV) $ 15.78 $ 16.04 (1.62%) $ 16.25 $ 15.15
</TABLE>
THE FIXED INCOME MARKETS
While 1996 featured several major shifts in sentiment and some dramatically
sharp market moves, the net year-over-year yield changes turned out to be
modest. Yields rose sharply across the Treasury yield curve throughout the first
half of the year in response to data indicating accelerating economic growth,
including a sharp rise in commodity prices, which rekindled inflationary
concerns. The possibility of a stronger economy dampened investor expectations
of continued Federal Reserve easing of monetary policy and initiated whispers of
a potentially more restrictive Fed policy.
Largely softer economic data and continued moderation in the broad inflation
measures during the third and fourth quarters allowed the Fed to leave short
term interest rates unchanged at their most recent policy meetings.
Additionally, a stronger dollar, large foreign buying of U.S. Treasuries and
balanced budget hopes following the November elections also supported the
market. However, Alan Greenspan's mention of "irrational exuberance in the
financial markets" on December 4, 1996 rattled the Treasury market, leading to a
monthlong rise in rates. A resilient housing market and strong consumer
confidence also contributed to the market decline in late December.
Municipal bond performance as measured by the LEHMAN MUNICIPAL BOND INDEX
outpaced that of taxable bonds (represented by the LEHMAN AGGREGATE INDEX),
returning 4.43% versus 3.63% for taxables. This strong performance is the result
of the relative scarcity of new municipal bond issuance combined with increased
retail demand due to the end of "flat tax" reform concerns. In particular, the
third quarter of 1996 witnessed approximately $60 billion in cash (in the form
of calls, maturities and interest payments) returned to investors and recycled
back into the municipal bond market. As the fourth quarter progressed, however,
retail demand moderated in response to a strengthening stock market and
declining interest rate levels. The municipal market finished 1996 on a strong
note, outperforming taxables during the latter half of November and into
December.
2
<PAGE>
The Florida municipal bond market underperformed the national markets for
the year, as new issue supply has been relatively robust. We currently maintain
a slightly bearish outlook for the Florida economy, which could be facing the
growing pains that accompany an increasing state population, placing a greater
strain on the state's infrastructure and municipal resources. Additionally,
Florida voters passed a proposal in November which would require tax increases
to pass a super-majority (two-thirds) vote, potentially hampering the fund
raising capabilities of local municipalities.
Looking forward, we believe municipal bonds may perform well in early 1997.
The "January effect", which refers to the significant amount of cash returned to
individual municipal bond investors in the form of bond calls, maturities and
coupon payments in January, could increase demand for municipals as this cash is
reinvested in the municipal market.
THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY
The Trust's portfolio is actively managed to diversify exposure to various
sectors, issuers, revenue sources and security types. BlackRock's investment
strategy emphasizes a relative value approach, which allows the Trust to
capitalize upon changing market conditions by rotating municipal sectors,
credits and coupons.
Additionally, the Trust employs leverage to enhance its income by borrowing
at short term municipal rates and investing the proceeds in longer maturity
issues which 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
Federal Reserve's decision not to increase short interest rates at their August
and September policy meetings has benefited the Trust, as short term municipal
rates (which determine the Trust's borrowing costs) fell.
The following chart compares the Trust's current and December 31, 1995 asset
composition:
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
<TABLE>
<CAPTION>
SECTOR DECEMBER 31, 1996 DECEMBER 31, 1995
<S> <C> <C>
County, City & State 17% 17%
Water & Sewer 15% 15%
Tax Revenue 15% 15%
Transportation 14% 14%
Hospital 12% 12%
Lease Revenue 6% 6%
Building 6% 6%
Utility/Power 5% 5%
Resource Recovery 4% 4%
Education 2% 2%
Other 4% 4%
</TABLE>
3
<PAGE>
We appreciate your continued confidence and look forward to managing The
BlackRock Florida Insured Municipal 2008 Term Trust in the coming years to
realize its investment objectives. Please feel free to contact the mutual fund
specialists at BlackRock's marketing center at (800) 227-7BFM (7236) if you have
any questions that are not answered in this report. Additionally, you can reach
us via e-mail at [email protected].
Sincerely,
<TABLE>
<S> <C>
[SIG] [SIG]
Robert S. Kapito Kevin Klingert
Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager
BlackRock Financial Management, Inc. BlackRock Financial Management, Inc.
</TABLE>
<TABLE>
<CAPTION>
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
<S> <C>
Symbol on New York Stock Exchange: BRF
Initial Offering Date: September 18, 1992
Closing Stock Price as of 12/31/96: $15.125
Net Asset Value as of 12/31/96: $15.78
Yield on Closing Stock Price as of 12/31/96 ($15.125)(1): 5.70%
Current Monthly Distribution per Common Share(2): $0.07188
Current Annualized Distribution per Common Share(2): $0.86256
</TABLE>
- --------------------
(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 FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OPTION
PRINCIPAL CALL
RATING* AMOUNT PROVISIONS++ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
<C> <C> <S> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS -- 145.4%
AAA $ 1,500 Altamonte Springs Wtr. & Swr. Sys. Rev., 6.00%, 10/01/08, FGIC........ 10/02 at 102 $ 1,595,325
AAA 10,000 Brevard Cnty. Sch. Brd., C.O.P., Ser. A, 6.375%, 7/01/02+, AMBAC...... No Opt. Call 11,059,100
Canaveral Port. Auth. Impvt. Rev., FGIC,
AAA 2,980 6.00%, 6/01/07...................................................... 06/02 at 102 3,185,441
AAA 3,155 6.00%, 6/01/08...................................................... 06/02 at 102 3,356,952
AAA 1,000 Dade Cnty. Aviation Rev., Ser. A, 6.00%, 10/01/08, AMBAC.............. 10/05 at 102 1,071,100
AAA 5,000 Dade Cnty. G.O., Ser. A, Zero Coupon, 2/01/08, MBIA................... 02/06 at 92.85 2,748,000
Dade Cnty. Sch. Brd., C.O.P., Ser. A, MBIA,
AAA 2,000 5.75%, 5/01/08...................................................... 05/04 at 101 2,076,060
AAA 3,465 5.75%, 5/01/12...................................................... 05/04 at 101 3,531,182
AAA 2,500 Dade Cnty. Sch. Dist. Rev., 6.125%, 8/01/01+, FGIC.................... No Opt. Call 2,676,650
AAA 2,000 Dade Cnty. G.O., Ser. B Zero Coupon, 10/01/08, AMBAC.................. No Opt. Call 1,078,700
AAA 2,500 Daytona Beach Wtr. & Swr. Rev., 6.00%, 11/15/09, AMBAC................ 11/02 at 102 2,636,075
Duval Cnty. Sch. Dist., G.O., AMBAC,
AAA 3,015 6.30%, 8/01/06...................................................... 08/02 at 102 3,263,104
AAA 9,000 6.30%, 8/01/07...................................................... 08/02 at 102 9,717,570
Escambia Cnty. Utils. Auth. Sys. Rev., FGIC,
AAA 2,450 Ser. A, 6.10%, 1/01/09.............................................. 01/03 at 102 2,601,263
AAA 1,595 Ser. B, 6.125%, 1/01/09............................................. No Opt. Call 1,737,753
AAA 8,255 Florida St. Brd. of Ed. Wtr. & Swr. Sys. Rev., Pub. Ed., 6.125%,
6/01/08, FGIC....................................................... 06/02 at 101 8,723,967
Florida St. Div. Bd. Fin. Dept. Rev. Dept., Nat. Res. & Pres.,
Ser. 2000-A,
AAA 3,500 6.25%, 7/01/08, MBIA................................................ 07/02 at 101 3,753,435
AAA 6,000 6.25%, 7/01/09, MBIA................................................ 07/02 at 101 6,419,460
AAA 5,000 6.25%, 7/01/10, MBIA................................................ 07/02 at 101 5,332,150
AAA 2,500 6.75%, 7/01/07, AMBAC............................................... 07/01 at 102 2,728,800
AAA 3,000 Greater Orlando Aviation Auth., Arpt. Facs. Rev., Ser. D, 6.20%,
10/01/08, AMBAC..................................................... 10/02 at 102 3,236,910
AAA 10,000 Hillsborough Cnty., Tampa Intl. Arpt. Aviation Rev., Ser. A, 5.75%,
10/01/11, AMBAC..................................................... 10/99 at 104 10,163,800
Hillsborough Cnty., Cap. Impvt., FGIC,
AAA 2,630 6.25%, 8/01/04+..................................................... No Opt. Call 2,905,519
AAA 1,500 6.60%, 8/01/04+..................................................... No Opt. Call 1,690,245
AAA 5,000 Hillsborough Cnty., Sch. Brd., C.O.P., 5.875%, 7/01/08, MBIA.......... 07/04 at 102 5,252,950
Indian Trace Cmnty. Dev. Dist. Wtr. Mgmt. Spec. Benefit, Ser. A, MBIA,
AAA 3,000 5.625%, 5/01/08..................................................... 05/05 at 102 3,114,960
AAA 2,910 5.75%, 5/01/09...................................................... 05/05 at 102 3,026,691
AAA 4,000 Jacksonville Elec. Auth. Rev., 5.75%, 10/01/12, AMBAC................. 10/02 at 102 4,063,280
AAA 5,000 Jacksonville G.O., Ser. A, 5.50%, 10/01/12, AMBAC..................... 10/02 at 102 5,018,300
AAA 2,000 Lakeland Elec. & Wtr. Rev., Jr. Sub. Lien, 5.875%, 10/01/08, FGIC..... No Opt. Call 2,145,080
AAA 9,850 Lakeland Hosp. Sys. Rev., Regl. Med. Care Ctr. Proj., Ser. B, 6.10%,
11/15/08, FGIC...................................................... 11/02 at 102 10,511,329
AAA 1,100 Lakeland Wastewater Impvt. Rev., 5.50%, 10/01/08, MBIA................ 10/02 at 102 1,128,523
AAA 4,500 Lee Cnty. Arpt. Rev., Ser. A, 5.50%, 10/01/10, AMBAC.................. 10/02 at 100 4,541,220
AAA 4,750 Lee Cnty. G.O., Ser. A, 7.30%, 10/01/07, MBIA......................... 10/99 at 102 5,171,135
AAA 1,650 Lee Cnty. Local Option Gas Tax Rev., 5.50%, 10/01/09, MBIA............ 10/99 at 100 1,661,897
</TABLE>
5
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OPTION
PRINCIPAL CALL
RATING* AMOUNT PROVISIONS++ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
<C> <C> <S> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
AAA $ 1,000 Marion Cnty. Hosp. Dist. Rev., Munroe Regl. Med. Ctr., 6.20%,
10/01/07, FGIC...................................................... 10/02 at 102 $ 1,076,360
AAA 3,750 Melbourne Wtr. & Swr. Rev., Ser. C, 6.25%, 10/01/08, FGIC............. 10/02 at 102 4,035,825
AAA 11,000 Miami Beach Hlth. Facs. Auth. Hosp. Rev., Mt. Sinai Med. Ctr. Proj.,
6.25%, 11/15/08, FGIC............................................... 11/02 at 102 11,763,290
Miami, G.O., FGIC,
AAA 1,345 5.90%, 12/01/08..................................................... No Opt. Call 1,435,438
AAA 1,000 6.00%, 12/01/09..................................................... No Opt. Call 1,075,860
AAA 1,000 Orange Cnty. Pub. Svc. Tax, 5.70%, 10/01/08, FGIC..................... 10/05 at 102 1,045,700
AAA 1,500 Orange Cnty. Tourist Devel. Tax Rev., Ser. A, 5.85%, 10/01/08, MBIA... No Opt. Call 1,600,020
AAA 2,000 Osceola Cnty. Trans. Rev., Osceola Pkwy. Proj., 5.95%, 4/01/08,
MBIA................................................................ 04/02 at 102 2,107,740
AAA 3,100 Palm Bay Util. Rev., Ser. B, MBIA, 6.10%, 10/01/02+................... No Opt. Call 3,387,835
AAA 7,085 Pasco Cnty. Solid Waste Disp. & Res. Rec. Sys. Rev., 6.00%, 4/01/09
FGIC................................................................ 04/02 at 102 7,465,960
AAA 11,000 Pasco Cnty. Wtr. & Swr. Rev., Ser. A, 6.00%, 10/01/09, FGIC........... 10/02 at 102 11,626,560
AAA 1,000 Seminole Cnty. Sch. Brd., C.O.P., Ser. A, 5.90%, 7/01/08, MBIA........ 07/04 at 102 1,054,750
AAA 2,000 Seminole Cnty. Wtr. & Swr. Rev., 6.00%, 10/01/09, MBIA................ No Opt. Call 2,163,860
Tampa Wtr. & Swr. Rev., Ser. A........................................
AAA 1,405 6.25%, 10/01/02+, FGIC.............................................. No Opt. Call 1,538,582
AAA 1,095 6.25%, 10/01/12, FGIC............................................... 10/02 at 101 1,154,183
AAA 4,065 Volusia Cnty. Edl. Fac. Auth. Rev., Embry-Riddle Aeronautical Univ.,
6.50%, 10/15/08, CONNIE LEE......................................... 10/02 at 102 4,413,857
------------
TOTAL LONG-TERM INVESTMENTS (cost $185,936,031)....................... 199,869,746
------------
SHORT-TERM INVESTMENTS** -- 0.4%
Aa3 500 St. Lucie Cnty. Fla., Poll. Ctl. Rev., FRDD, 4.00%, 1/02/97........... N/A 500,000
------------
TOTAL SHORT-TERM INVESTMENTS (cost $500,000).......................... 500,000
------------
TOTAL INVESTMENTS 145.8% (cost $186,438,031).......................... 200,369,746
Other assets in excess of liabilities -- 2.2%......................... 3,023,847
Liquidation value of preferred stock -- (48.0)%....................... (66,000,000)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS -- 100%.................. $137,393,593
------------
------------
</TABLE>
- ---------------
+ These bonds are prerefunded. See glossary for definition.
++ Option Call provisions: date (month/year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
* Rating: user 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.
<TABLE>
<S> <C> <C>
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
C.O.P. -- Certificate of Participation
CONNIE LEE -- College Construction Loan Insurance Association
FGIC -- Financial Guaranty Insurance Company
FRDD -- Floating Rate Daily Demand
G.O. -- General Obligation Bond
MBIA -- Municipal Bond Insurance Association
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
- ---------------------------------------------------------
THE BLACKROCK FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
- ----------------------------------------------
- ----------------------------------------------
THE BLACKROCK FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996
- ----------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments, at value (cost
$186,438,031) (Note 1)........... $200,369,746
Interest receivable................ 3,176,340
Cash............................... 122,973
Deferred organization expense and
other assets..................... 14,655
----------
203,683,714
----------
LIABILITIES
Advisory fee payable (Note 2)...... 60,661
Dividends payable--common stock.... 47,572
Dividends payable--preferred
stock............................ 9,033
Administration fee payable (Note
2)............................... 17,332
Other accrued expenses............. 155,523
----------
290,121
----------
NET INVESTMENT ASSETS.............. $203,393,593
----------
----------
Net investment assets were
comprised of:
Common shares of beneficial
interest:
Par value (Note 4)............. $ 87,071
Paid-in capital in excess of
par.......................... 120,907,481
Preferred shares of beneficial
interest (Note 4).............. 66,000,000
----------
186,994,552
Undistributed net investment
income........................... 2,679,953
Accumulated net realized loss...... (212,627)
Net unrealized appreciation........ 13,931,715
----------
Net investment assets, December 31,
1996............................. $203,393,593
----------
----------
Net assets applicable to common
shareholders..................... $137,393,593
----------
----------
Net asset value per common share of
beneficial interest:
($137,393,593 DIVIDED BY 8,707,093
common shares of beneficial
interest issued and
outstanding)..................... $15.78
NET INVESTMENT INCOME
Income
Interest and discount earned..... $11,477,985
----------
Expenses
Investment advisory.............. 711,061
Administration................... 203,160
Auction agent.................... 179,000
Reports to shareholders.......... 77,000
Custodian........................ 56,000
Audit............................ 38,000
Trustees......................... 26,000
Transfer agent................... 18,000
Miscellaneous.................... 100,153
----------
Total expenses................... 1,408,374
----------
Net investment income.............. 10,069,611
----------
REALIZED AND UNREALIZED LOSS ON
INVESTMENTS (NOTE 3)
Net realized gain on investments... --
Net change in unrealized
appreciation on investments...... (2,665,312)
----------
Net loss on investments............ (2,665,312)
----------
NET INCREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS... $7,404,299
----------
----------
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------
1996 1995
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET INVESTMENT ASSETS
Operations:
Net investment income............................................................... $ 10,069,611 $ 10,043,432
Net realized gain on investments.................................................... -- 522,630
Net change in unrealized appreciation (depreciation) on investments................. (2,665,312) 17,750,167
------------ ------------
Net increase in net investment assets resulting from operations..................... 7,404,299 28,316,229
------------ ------------
Dividends and distributions:
To preferred shareholders from net investment income................................ (2,128,568) (2,442,963)
To preferred shareholders in excess of net realized gain on investments............. -- (2,986)
To common shareholders from net investment income................................... (7,510,208) (7,501,505)
To common shareholders in excess of net realized gain on investments................ -- (8,768)
------------ ------------
(9,638,776) (9,956,222)
------------ ------------
Total increase (decrease)....................................................... (2,234,477) 18,360,007
NET INVESTMENT ASSETS
Beginning of year..................................................................... 205,628,070 187,268,063
------------ ------------
End of year........................................................................... $203,393,593 $205,628,070
------------ ------------
------------ ------------
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------
1996 1995 1994
--------- --------- ---------
<S> <C> <C> <C>
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of the period................................................... $ 16.04 $ 13.93 $ 16.13
--------- --------- ---------
Net investment income.................................................................... 1.16 1.15 1.15
Net realized and unrealized gain (loss) on investments................................... (0.31) 2.10 (2.27)
--------- --------- ---------
Net increase (decrease) from investment operations......................................... 0.85 3.25 (1.12)
--------- --------- ---------
Dividends from net investment income to:
Preferred shareholders................................................................... (0.25) (0.28) (0.22)
Common shareholders...................................................................... (0.86) (0.86) (0.86)
Distributions from net realized gain on investments to:
Preferred shareholders................................................................... -- -- --
Common shareholders...................................................................... -- -- --
Distributions in excess of net realized gain on investments to:
Preferred shareholders................................................................... -- -- ** --
Common shareholders...................................................................... -- -- ** --
--------- --------- ---------
Total dividends and distributions.......................................................... (1.11) (1.14) (1.08)
--------- --------- ---------
Capital charge with respect to issuance of shares.......................................... -- -- --
--------- --------- ---------
Net asset value, end of period***.......................................................... $ 15.78 $ 16.04 $ 13.93
--------- --------- ---------
--------- --------- ---------
Market value, end of period***............................................................. $ 15.125 $ 15.00 $ 12.125
--------- --------- ---------
--------- --------- ---------
TOTAL INVESTMENT RETURN+................................................................... 6.88% 31.26% (13.27)%
--------- --------- ---------
--------- --------- ---------
RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:+++
Expenses................................................................................... 1.02% 1.02% 1.09%
Net investment income...................................................................... 7.26% 7.55% 7.86%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands)................................... $ 138,644 $ 133,042 $ 127,640
Portfolio turnover......................................................................... 1% 11% 30%
Net assets of common shareholders, end of period (in thousands)............................ $ 137,394 $ 139,628 $ 121,268
Preferred stock outstanding (in thousands)................................................. $ 66,000 $ 66,000 $ 66,000
Assets coverage per share of preferred stock, end of period##.............................. $ 77,043 $ 77,889 $ 141,870
<CAPTION>
SEPTEMBER 28,
1992*
THROUGH
DECEMBER 31,
1993 1992
--------- ----------------
<S> <C> <C>
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of the period................................................... $ 14.28 $ 14.10
--------- ----------------
Net investment income.................................................................... 1.15 0.15
Net realized and unrealized gain (loss) on investments................................... 1.75 0.32
--------- ----------------
Net increase (decrease) from investment operations......................................... 2.90 0.47
--------- ----------------
Dividends from net investment income to:
Preferred shareholders................................................................... (0.17) (0.02)
Common shareholders...................................................................... (0.86) (0.07)
Distributions from net realized gain on investments to:
Preferred shareholders................................................................... -- ** --
Common shareholders...................................................................... (0.02) --
Distributions in excess of net realized gain on investments to:
Preferred shareholders................................................................... -- --
Common shareholders...................................................................... -- --
--------- ----------------
Total dividends and distributions.......................................................... (1.05) (0.09)
--------- ----------------
Capital charge with respect to issuance of shares.......................................... -- (0.20)
--------- ----------------
Net asset value, end of period***.......................................................... $ 16.13 $ 14.28#
--------- ----------------
--------- ----------------
Market value, end of period***............................................................. $ 14.875 $ 14.25
--------- ----------------
--------- ----------------
TOTAL INVESTMENT RETURN+................................................................... 9.94% (1.56)%
--------- ----------------
--------- ----------------
RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:+++
Expenses................................................................................... 0.99% 0.92%++
Net investment income...................................................................... 7.44% 4.23%++
SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands)................................... $ 134,476 $ 118,875
Portfolio turnover......................................................................... 3% 41%
Net assets of common shareholders, end of period (in thousands)............................ $ 140,416 $ 124,380
Preferred stock outstanding (in thousands)................................................. $ 66,000 $ 66,000
Assets coverage per share of preferred stock, end of period##.............................. $ 156,376 $ 144,000
</TABLE>
- --------------------
* Commencement of investment operations.
** Actual amount paid to preferred shareholders was $0.00344 per common share
and $.00344 per common share for the fiscal years ended December 31, 1995
and 1993 respectively. For fiscal year ended December 31, 1995 the actual
amount paid to common shareholders was $.001 per common share.
*** Net asset value and market value are published in The Wall Street Journal
each Monday.
# Net asset value immediately after the closing of the first public offering
was $14.06.
## 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
value 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. Total investment return for periods of
less than a full year are not annualized.
++ Annualized.
+++ Ratios calculated on the basis of income and expenses applicable to both the
common and preferred shares relative to the average net assets of common
shareholders. Ratios do not reflect the effect of dividend payments to
preferred 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 period 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 FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
NOTES TO FINANCIAL STATEMENTS
- ----------------------------------------------
NOTE 1. The BlackRock Florida Insured Municipal 2008 Term Trust (the
ACCOUNTING "Trust") was organized in
POLICIES
Massachusetts 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 income tax and Florida intangible property tax. 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 Trustees.
Short-term securities which mature in more than 60 days are valued at
current market quotations. Short-term securities which mature in 60 days or less
are valued at amortized cost, if their term to maturity from date of purchase is
60 days or less, or by amortizing their value on the 61st day prior to maturity,
if their original term to maturity from date of purchase exceeded 60 days.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis and the Trust amortizes premium or 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 substan-
tially 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.
DEFERRED ORGANIZATION EXPENSES: A total of $40,000 was incurred in connection
with the organization of the Trust. These costs have been deferred and are being
amortized ratably over a period of sixty months from the date the Trust
commenced investment operations.
RECLASSIFICATION OF CAPITAL ACCOUNTS: Effective January 1, 1994, the Trust began
accounting and reporting for permanent differences between financial and tax
reporting in accordance with the American Institute of Certified Public
Accountants' Statement of Position 93-2: Determination, Disclosure and Financial
Statement Presentation of Income, Capital Gain and Return of Capital
Distributions by Investment Companies. The effect of adopting the statement for
the year ended December 31, 1996 was to decrease accumulated net realized loss
and increase undistributed net investment income by $1,592. Net investment
income, net realized gains and net assets were not affected by this change.
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. The Trust has an Investment Advisory Agreement with BlackRock
AGREEMENTS Financial Manage-
ment, 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.
10
<PAGE>
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. Purchases and sales of investment securities, other than
PORTFOLIO short-term investments, for the year ended December 31,
SECURITIES
1996, aggregated $3,503,608 and $2,498,788, respectively.
The Federal income tax basis of the Trust's investments at December 31, 1996
was substantially the same as the basis for financial reporting, and
accordingly, unrealized appreciation was $13,931,715 (both a gross and net
basis).
For Federal income tax purposes, the Trust had a capital loss carryforward
at December 31, 1996 of approximately $212,000 which will expire in 2002.
Accordingly, no capital gain distribution is expected to be paid to shareholders
until net gains have been realized in excess of such amount.
NOTE 4. CAPITAL There are 200 million shares of $.01 par value of beneficial
interest authorized. Of the 8,707,093 common shares outstanding at December 31,
1996, the Adviser owned 7,093 shares. As of December 31, 1996, there were 2,640
Series R7 preferred shares outstanding.
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 1,320 shares of beneficial interest and issued a series of Auction
Market Preferred Stock ("Preferred Stock") as follows: Series R7--1,320 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 accumulated but unpaid dividends. The stock split occurred on July
24, 1995.
Dividends on Series R7 are cumulative at a rate which is reset every 7 days
based on the results of an auction. Dividend rates ranged from 1.00% to 3.90%
for the year ended December 31, 1996.
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 trustees. 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. Subsequent to December 31, 1996, the Board of Trustees of
DIVIDENDS
the Trust declared a dividend from undistributed earnings of $.07188 per common
share payable January 31, 1997 to shareholders of record on January 15, 1997.
For the period January 1, 1997, to January 31, 1997 dividends declared on
Preferred Stock totalled $196,401 in aggregate for the outstanding Preferred
Stock series.
11
<PAGE>
NOTE 6. QUARTERLY DATA
(UNAUDITED)
<TABLE>
<CAPTION>
NET INCREASE (DECREASE) IN
NET REALIZED AND
UNREALIZED GAINS NET INVESTMENT ASSETS
NET INVESTMENT INCOME (LOSSES) ON
INVESTMENTS RESULTING FROM OPERATIONS
PER PER PER
TOTAL COMMON COMMON COMMON
QUARTERLY PERIOD INCOME AMOUNT SHARE AMOUNT SHARE AMOUNT SHARE
<S> <C> <C> <C> <C> <C> <C> <C>
January 1, 1995 to March 31,
1995.......................... $ 2,873,801 $ 2,536,617 $ .29 $ 9,815,974 $ 1.13 $ 12,352,591 $ 1.42
April 1, 1995 to
June 30, 1995................. 2,872,445 2,531,161 .29 1,239,806 .14 3,770,967 .43
July 1, 1995 to September 30,
1995.......................... 2,787,430 2,444,889 .28 2,964,653 .34 5,409,542 .62
October 1, 1995 to December 31,
1995.......................... 2,863,704 2,530,765 .29 4,252,364 .49 6,783,129 .78
January 1, 1996 to March 31,
1996.......................... 2,852,793 2,509,958 .29 (4,117,756) (.48) (1,607,798) (.18)
April 1, 1996 to
June 30, 1996................. 2,861,707 2,515,117 .29 (1,139,616) (.13) 1,375,501 .16
July 1, 1996 to September 30,
1996.......................... 2,878,562 2,517,304 .29 1,244,391 .14 3,761,695 .43
October 1, 1996 to December 31,
1996.......................... 2,884,923 2,527,232 .29 1,347,669 .16 3,874,901 .44
<CAPTION>
DIVIDENDS AND DISTRIBUTIONS
PREFERRED SHARES*
COMMON SHARES
PER PER SHARE PRICE OF PERIOD
COMMON COMMON COMMON STOCK END NET
QUARTERLY PERIOD AMOUNT SHARE AMOUNT SHARE HIGH LOW ASSET VALUE
<S> <C> <C> <C> <C> <C> <C> <C>
January 1, 1995 to March 31,
1995.......................... $ 1,877,580 $ .22 $ 628,827 $ .07 $ 14.375 $ 12.375 $ 15.06
April 1, 1995 to
June 30, 1995................. 1,877,535 .21 671,954 .08 14.750 14.250 15.20
July 1, 1995 to September 30,
1995.......................... 1,877,580 .22 617,632 .07 14.750 14.250 15.53
October 1, 1995 to December 31,
1995.......................... 1,877,578 .21 527,536 .06 15.000 14.250 16.04
January 1, 1996 to March 31,
1996.......................... 1,877,572 .22 578,291 .06 15.500 14.750 15.58
April 1, 1996 to
June 30, 1996................. 1,877,576 .22 520,261 .07 15.000 13.750 15.45
July 1, 1996 to September 30,
1996.......................... 1,877,571 .21 546,325 .06 14.875 14.000 15.61
October 1, 1996 to December 31,
1996.......................... 1,877,489 .21 483,691 .06 15.125 14.000 15.78
</TABLE>
* For the year ended December 31, 1996, the average annualized rate paid to
preferred shareholders was 3.23%.
12
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
The Shareholders and
Board of Trustees of
The BlackRock Florida Insured Municipal 2008 Term Trust:
We have audited the accompanying statement of assets and liabilities of The
BlackRock Florida Insured Municipal 2008 Term Trust, including the portfolio of
investments, as of December 31, 1996 and the related statement of operations for
the year then ended, the statement 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 four years in the period then ended and for the period September 28, 1992
(commencement of investment operations) to December 31, 1992. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion of 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, 1996, by correspondence with the custodian and brokers; where replies were
not received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of The BlackRock
Florida Insured Municipal 2008 Term Trust as of December 31, 1996, 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.
[SIG]
Deloitte & Touche LLP
New York, New York
February 3, 1997
13
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
TAX INFORMATION
- --------------------------------------------------------------------------------
We are required by the Internal Revenue Code to advise you within 60 days of
the Trust's fiscal year end as to the federally tax-exempt interest dividends
received by you during such fiscal year. Accordingly, we are advising you that
all regular 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 the 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.
14
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
THE TRUST'S INVESTMENT OBJECTIVE
The Trust's investment objective is to provide current income exempt from
federal income tax and Florida intangible personal property 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, (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 $43
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 100
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 Florida
municipal obligations insured as to the timely payment of principal and
interest. The Trust may invest up to 20% in uninsured Florida 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
Florida 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 federal income tax and Florida
intangible personal 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.
15
<PAGE>
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.
LEVERAGE CONSIDERATIONS IN A TERM TRUST
Under current market conditions, leverage increases the income earned by the
Trust. The Trust employs leverage primarily through the issuance of preferred
stock. Leverage permits the Trust to borrow money at short-term rates and
reinvest that money in longer-term assets which typically offer higher interest
rates. The difference between the cost of the borrowed funds and the income
earned on the proceeds that are invested in longer term assets is the benefit to
the Trust from leverage. In general, the portfolio is typically leveraged at
approximately 35% of total assets.
Leverage also increases the duration (or price volatility of the net assets)
of the Trust, which can improve the performance of the fund 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: BRF) 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 alternative minimum tax. The Trust currently holds no securities that are
subject to AMT.
16
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
GLOSSARY
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
CLOSED-END FUND: Investment vehicle which initially offers a fixed number of shares and trades on a stock exchange. The
fund invests in a portfolio of securities in accordance with its stated investment objectives and
policies.
DISCOUNT: When a fund's net asset value is greater than its stock price the fund is said to be trading at a
discount.
DIVIDEND: Income generated by securities in a portfolio and distributed to shareholders after the deduction of
expenses. This Trust declares and pays dividends to common shareholders on a monthly basis.
DIVIDEND REINVESTMENT: Shareholders may have all dividends and distributions of capital gains automatically reinvested into
additional shares of a fund.
MARKET PRICE: Price per share of a security trading in the secondary market. For a closed-end fund, this is the price
at which one share of the fund trades on the stock exchange. If you were to buy or sell shares, you would
pay or receive the market price.
NET ASSET VALUE (NAV): Net asset value is the total market value of all securities and other assets held by the Trust, plus
income accrued on its investments, minus any liabilities including accrued expenses, divided by the total
number of outstanding shares. It is the underlying value of a single share on a given day. Net asset
value for the Trust is calculated weekly and published in BARRON'S and THE NEW YORK TIMES on Saturday and
THE WALL STREET JOURNAL each Monday.
PREMIUM: When a fund's stock price is greater than its net asset value, the fund is said to be trading at a
premium.
PREREFUNDED BONDS: These securities are collateralized by U.S. Government securities which are held in escrow and are used
to pay principal and interest on the tax exempt issue and retire the bond in full at the date indicated,
typically at a premium to par.
</TABLE>
17
<PAGE>
- --------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGEMENT, INC.
SUMMARY OF CLOSED-END FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Taxable Trusts
- -------------------------------------------------------------------------------------------------------
STOCK MATURITY
SYMBOL DATE
--------- ---------
PERPETUAL TRUSTS
<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
SYMBOL DATE
--------- ---------
<S> <C> <C>
PERPETUAL TRUSTS
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
OR CONSULT WITH YOUR FINANCIAL ADVISOR.
18
<PAGE>
- --------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGEMENT, INC.
AN OVERVIEW
- --------------------------------------------------------------------------------
BlackRock Financial Management, Inc. ("BlackRock") is a registered
investment adviser which specializes in managing high quality fixed income
securities, both taxable and tax-exempt. BlackRock currently manages
approximately $43 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 over 100 institutional clients in
the United States and overseas. BlackRock's institutional investor base includes
Chrysler Corporation Master Retirement Trust, General Retirement System of the
City of Detroit, State Treasurer of Florida, General Electric Pension Trust and
Unisys Corporation Master Trust.
BlackRock was formed in April 1988 by fixed income professionals who sought
to create an asset management firm specializing in managing fixed income
securities for individual and institutional investors. The professionals at
BlackRock have extensive experience creating, analyzing and trading a variety of
fixed income instruments, including the most complex structured securities. In
fact, individuals at BlackRock are responsible for many of the major innovations
in the mortgage-backed and asset-backed securities markets, including the
creation of the 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
significant emphasis it places on the development of proprietary analytical
capabilities. A quarter of the professionals at BlackRock work full-time in the
design, maintenance and use of such systems which are otherwise not generally
available to investors. BlackRock's proprietary analytical tools are used for
evaluating, investing in and designing investment strategies and portfolios of
fixed income securities, including mortgage securities, corporate debt
securities or tax-exempt securities and a variety of hedging instruments.
BlackRock has developed investment products which respond to investors'
needs and has been responsible for several major innovations in closed-end
funds. 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 AAAf rating by Standard & Poor's, and the first
closed-end fund to invest primarily in North American Government securities.
BlackRock's closed-end funds currently have dividend reinvestment plans which
are designed to provide an ongoing source of demand for the stock in the
secondary market. BlackRock manages a ladder of alternative investment vehicles,
with each fund 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
you may have about your BlackRock funds and thank you for the continued trust
you place in our abilities.
IF YOU WOULD LIKE FURTHER INFORMATION,
PLEASE CALL BLACKROCK AT (800) 227-7BFM
OR CONSULT WITH YOUR FINANCIAL ADVISOR.
19
<PAGE>
TRUSTEES
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
James Clayburn La Force, Jr.
Ralph L. Schlosstein
OFFICERS
Ralph L. Schlosstein, PRESIDENT
Keith T. Anderson, VICE PRESIDENT
Michael C. Huebsch, VICE PRESIDENT
Robert S. Kapito, VICE PRESIDENT
Kevin Klingert, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Karen H. Sabath, SECRETARY
INVESTMENT ADVISER
BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
(800) 227-7BFM
ADMINISTRATOR
Princeton Administrators, L.P.
P.O. Box 9095
Princeton, NJ 08543-9095
(800) 688-0928
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM
AUCTION AGENT
Bankers Trust Company
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
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 FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
c/o Princeton Administrators, L.P.
P.O. Box 9095
Princeton, NJ 08543-9095
(800) 227-7BFM
09247H 10 6
09247H 30 7
[LOGO]
THE
FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
--------------------------
ANNUAL REPORT
DECEMBER 31, 1996
[LOGO]
