- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
SEMI-ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------
July 31, 1998
Dear Shareholder:
Domestic bonds provided investors with modest total returns during the
past six months, as interest rates generally fell. Supporting the bond market
was favorable inflation news and the belief that the Federal Reserve is unlikely
to raise short-term interest rates in the immediate future.
U.S. economic growth has slowed of late after a robust first quarter of
1998. We expect the fallout from the Asian fiscal crisis to quash any
significant rebound in U.S. growth for the remainder of the year. While we
expect that interest rates will be fairly stable in the near-term, our
longer-term outlook for the bond market remains optimistic, based on the
fundamentally favorable backdrop of low inflation, a currently high level of
real yields, and declining Treasury borrowing.
As you may know, the five investment management firms that comprised the
PNC Asset Management Group have consolidated under BlackRock, resulting in
BlackRock Inc., a $119 billion money management firm. We look forward to using
our global investment management expertise to present exciting investment
opportunities to closed-end fund shareholders in the future.
This report contains comments from your Trust's managers regarding the
markets and portfolio in addition to the Trust's financial statements and a
detailed portfolio listing. We thank you for your continued investment in the
Trust.
Sincerely,
/s/Laurence D. Fink /s/Ralph L. Schlosstein
- ------------------- -----------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President
1
<PAGE>
July 31, 1998
Dear Shareholder:
We are pleased to present the semi-annual report for The BlackRock Florida
Insured Municipal 2008 Term Trust ("the Trust") for the six months ended June 30
1998. We would like to take this opportunity to review the Trust's stock price
and net asset value (NAV) performance, summarize developments in the fixed
income markets and discuss recent portfolio management activity.
The Trust is a non-diversified closed-end bond fund whose investment
objective is to manage a portfolio of municipal debt securities that will return
$15 per share (an amount equal to the Trust's initial public offering price) to
investors on or about December 31, 2008, while providing high current income
exempt from regular federal 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 period:
<TABLE>
<CAPTION>
---------------------------------------------------------------------
6/30/98 12/31/97 CHANGE HIGH LOW
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
STOCK PRICE $16.0625 $16.0625 0.00% $16.3750 $15.6250
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $16.32 $16.35 (0.18%) $16.53 $16.18
- ------------------------------------------------------------------------------------------------------
</TABLE>
THE FIXED INCOME MARKETS
After an extremely strong first quarter of 1998, U.S. economic growth
slowed during the past three months. Despite the strong economic growth of the
past year, inflation stayed surprisingly subdued. One explanation for the
absence of inflation in the U.S. economy stems from the aftermath of the Asian
financial crisis. U.S. exports to Asia have slowed, while the strength of the
dollar caused cheap Asian imports to flood the U.S. market and exert downward
price pressure on domestic goods.
Yields of U.S. Treasury securities have remained in a fairly narrow range
during the period. For example, the yield of the 10-Year Treasury posted a net
decline of 29 basis points (0.29%), beginning 1998 at 5.74% and closing on June
30, 1998 at 5.45%. The past six months represented a continuation of strong
Treasury performance, which has been due to moderating economic growth, low
inflation and a "flight to quality" from investors seeking a safe haven in U.S.
Treasury securities. Continued expectations that the Asian crisis will slow
economic growth and force the Fed to leave the Federal funds rate unchanged
provided additional support to the bond market. With Treasury supply waning due
to a surplus in the federal budget and an increased foreign demand for
Treasuries due to their U.S. government backing and relatively attractive
yields, we anticipate a positive environment for Treasuries for the balance of
1998.
Florida's economy remains strong, particularly in the trade and service
sector, and the State is projecting 1998's growth rate to be 2.3%. This growth
is in part fueled by the increasing population, which grew nearly 2% in 1996 to
over 14 million residents. Additionally, the tourism industry has rebounded,
particularly in Dade County. Lastly, Florida's fiscal year 1998 revenues, which
are heavily dependent on sales tax receipts, are ahead of projections; the
surplus could exceed last year's combined reserve fund of $1 billion.
2
<PAGE>
Municipal bonds underperformed the taxable domestic bond market during the
past six months, returning 2.69% (as measured by the LEHMAN BROTHERS MUNICIPAL
INDEX) versus the LEHMAN BROTHERS AGGREGATE INDEX'S 3.91% on a pre-tax basis.
The main forces behind municipal bond underperformance were increased municipal
bond supply (fueled by the lowest municipal interest rates since the 1960s) and
retail investor focus on the equity markets. We believe that municipals are
attractively valued versus Treasuries and our outlook for municipal securities
is favorable. The credit quality of most issuers remains strong, and we expect
that the attractive taxable equivalent yields offered by municipal securities
should bring investors back into the market.
THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY
The Trust's portfolio is actively managed to diversify exposure to various
sectors, issuers, revenue sources and security types. BlackRock's investment
strategy emphasizes a relative value approach, which allows the Trust to
capitalize upon changing market conditions by rotating municipal sectors,
credits and coupons. Additionally, the Trust emphasizes securities whose
maturity dates match the termination date of the Trust. We have continued to
minimize trading activity in the Trust during the period, as the market prices
of a significant portion of the portfolio's bonds are currently above the prices
at which they were bought. A bond sold at a gain would result in the Trust
realizing a capital gain, which may require a taxable distribution to
shareholders. Since one of the Trust's primary investment objectives is to pay
out tax-exempt income, we believe that waiting to restructure the portfolio in a
higher interest rate environment remains the most prudent strategy.
The following chart compares the Trust's current and December 31, 1997
asset composition:
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
- --------------------------------------------------------------------------------
SECTOR JUNE 30, 1998 DECEMBER 31, 1997
- --------------------------------------------------------------------------------
Education 21% 20%
- --------------------------------------------------------------------------------
Water &Sewer 18% 18%
- --------------------------------------------------------------------------------
Tax Revenue 17% 17%
- --------------------------------------------------------------------------------
Transportation 14% 14%
- --------------------------------------------------------------------------------
Hospital 12% 12%
- --------------------------------------------------------------------------------
County, City and State 9% 9%
- --------------------------------------------------------------------------------
Utility/Power 5% 5%
- --------------------------------------------------------------------------------
Resource Recovery 4% 4%
- --------------------------------------------------------------------------------
Lease Revenue -- 1%
- --------------------------------------------------------------------------------
Additionally, the Trust employs leverage to enhance its income by paying
the Trust's preferred shareholders short-term municipal rates and investing the
proceeds in longer maturity issues which have higher yields. The Trust's ability
to pay high monthly income may be affected by the profitability of its leverage.
The Federal Reserve's neutral interest rate policy has allowed the Trust's
leverage costs to remain reasonable. At the present, we believe that leverage
will continue to positively contribute to the Trust's long-term income earning
ability.
3
<PAGE>
We look forward to managing the Trust to benefit from the opportunities
available in the fixed income markets and to meet its investment objectives. We
thank you for your investment in the BlackRock Florida Insured Municipal 2008
Term Trust. 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 yours,
/s/Robert S. Kapito /s/Kevin Klingert
- ------------------- -----------------
Robert S. Kapito Kevin Klingert
Vice Chairman and Managing Director and
Portfolio Manager Portfolio Manager
BlackRock Financial Management, Inc. BlackRock Financial Management, Inc.
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
- --------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BRF
- --------------------------------------------------------------------------------
Initial Offering Date: September 18, 1992
- --------------------------------------------------------------------------------
Closing Stock Price as of 6/30/98: $16.0625
- --------------------------------------------------------------------------------
Net Asset Value as of 6/30/98: $16.32
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 6/30/98 ($16.0625)1: 5.37%
- --------------------------------------------------------------------------------
Current Monthly Distribution per Common Share2: $0.07188
- --------------------------------------------------------------------------------
Current Annualized Distribution per Common Share2: $0.86256
- --------------------------------------------------------------------------------
- ----------
1 Yield on Closing Stock Price is calculated by dividing the current annualized
distribution per share by the closing stock price per share.
2 Dividend is not constant and is subject to change.
4
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
PORTFOLIO OF INVESTMENTS JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS++ (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--143.8%
<S> <C> <C> <C>
AAA $ 1,500 Altamonte Springs Wtr. & Swr. Sys. Rev.,
6.00%, 10/01/08, FGIC ..................................... 10/02 at 102 $ 1,625,280
AAA 10,000 Brevard Cnty. Sch. Brd., C.O.P., Ser. A,
6.375%, 7/01/02+, AMBAC ................................... N/A 11,030,000
Canaveral Port Auth. Impvt. Rev., FGIC,
AAA 2,980 6.00%, 6/01/07 ............................................ 06/02 at 102 3,230,022
AAA 3,155 6.00%, 6/01/08 ............................................ 06/02 at 102 3,407,779
AAA 1,000 Dade Cnty. Aviation Rev., Ser. A, 6.00%, 10/01/08, AMBAC ..... 10/05 at 102 1,115,560
AAA 5,000 Dade Cnty. G.O., Ser. A, Zero Coupon, 2/01/08, MBIA .......... 02/06 at 92.85 3,186,050
AAA 5,465 Dade Cnty. Sch. Brd., C.O.P., Ser. A, 5.75%, 5/01/04+, MBIA, . N/A 5,804,525
AAA 2,500 Dade Cnty. Sch. Dist. Rev., 6.125%, 8/01/01+, FGIC ........... N/A 2,651,925
AAA 2,000 Dade Cnty. G.O., Ser. B, Zero Coupon, 10/01/08, AMBAC ........ No Opt. Call 1,258,199
AAA 2,500 Daytona Beach Wtr. & Swr. Rev., 6.00%, 11/15/09, AMBAC ....... 11/02 at 102 2,693,325
Duval Cnty. Sch. Dist., G.O., AMBAC,
AAA 3,015 6.30%, 8/01/06 ............................................ 08/02 at 102 3,267,386
AAA 9,000 6.30%, 8/01/07 ............................................ 08/02 at 102 9,735,840
Escambia Cnty. Utils. Auth. Sys. Rev., FGIC,
AAA 2,450 Ser. A, 6.10%, 1/01/03+ ................................... N/A 2,684,465
AAA 1,595 Ser. B, 6.125%, 1/01/09 ................................... No Opt. Call 1,805,046
AAA 8,255 Florida St. Brd. of Ed. Wtr. & Swr. Sys. Rev.,
Pub. Ed., 6.125%, 6/01/08, FGIC ........................... 06/02 at 10 18,880,069
Florida St. Div. Bd. Fin. Dept. Rev. Nat.
Res.& Pres., Ser. 2000-A,
AAA 14,500 6.25%, 7/01/02+, MBIA ..................................... N/A 15,775,710
AAA 2,500 6.75%, 7/01/01+, AMBAC .................................... N/A 2,736,100
AAA 3,000 Greater Orlando Aviation Auth., Arpt. Facs.
Rev., Ser. D, 6.20%, 10/01/08, AMBAC ...................... 10/02 at 102 3,285,960
AAA 10,000 Hillsborough Cnty., Tampa Intl. Arpt. Aviation Rev.,
Ser. A, 5.75%,
10/01/11, AMBAC ........................................... 10/99 at 104 10,515,900
Hillsborough Cnty., Cap. Impvt., FGIC,
AAA 2,630 6.25%, 8/01/04+ ........................................... N/A 2,944,048
AAA 1,500 6.60%, 8/01/04+ ........................................... N/A 1,707,030
AAA 5,000 Hillsborough Cnty., Sch. Brd., C.O.P.,
5.875%, 7/01/04+, MBIA .................................... N/A 5,517,150
Indian Trace Cmnty. Dev. Dist., Wtr. Mgmt.
Spec. Benefit, Ser. A, MBIA,
AAA 3,000 5.625%, 5/01/08 ........................................... 05/05 at 102 3,249,750
AAA 2,910 5.75%, 5/01/09 ............................................ 05/05 at 102 3,157,292
AAA 4,000 Jacksonville Elec. Auth. Rev., 5.75%, 10/01/12, AMBAC ........ 10/02 at 101 4,190,560
AAA 5,000 Jacksonville G.O., Ser. A, 5.50%, 10/01/12, AMBAC ............ 10/02 at 102 5,229,650
AAA 2,000 Lakeland Elec. & Wtr. Rev., Jr. Sub. Lien,
5.875%, 10/01/08, FGIC .................................... No Opt. Call 2,233,260
Lakeland Hosp. Sys. Rev., Regl. Med. Care Ctr.
Proj., Ser. B, FGIC,
AAA 6,605 6.10%, 11/15/02+ .......................................... N/A 7,245,949
AAA 3,245 6.10%, 11/15/08 ........................................... 11/02 at 102 3,491,198
AAA 1,100 Lakeland Wastewater Impvt. Rev., 5.50%, 10/01/08, MBIA ....... 10/02 at 102 1,164,537
AAA 4,500 Lee Cnty. Arpt. Rev., Ser. A, 5.50%, 10/01/10, AMBAC ......... 10/02 at 100 4,653,810
AAA 4,750 Lee Cnty. G.O., Ser. A, 7.30%, 10/01/07, MBIA ................ 10/99 at 102 5,041,650
AAA 1,650 Lee Cnty. Local Option Gas Tax Rev., 5.50%, 10/01/99+, MBIA .. N/A 1,685,458
AAA 1,000 Marion Cnty. Hosp. Dist. Rev., Munroe Regl.
Med. Ctr., 6.20%, 10/01/07, FGIC .......................... 10/02 at 102 1,093,270
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS++ (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA $ 3,750 Melbourne Wtr. & Swr. Rev., Ser. C, 6.25%, 10/01/08, FGIC .... 10/02 at 102 $ 4,106,962
AAA 11,000 Miami Beach Hlth. Fac. Auth. Hosp. Rev.,
Mt. Sinai Med. Ctr. Proj., 6.25%, 11/15/08, FSA ........... 11/02 at 102 12,000,120
Miami, G.O., FGIC,
AAA 1,345 5.90%, 12/01/08 ........................................... No Opt. Call 1,494,860
AAA 1,000 6.00%, 12/01/09 ........................................... No Opt. Call 1,121,910
AAA 1,000 Orange Cnty. Pub. Svc. Tax, 5.70%, 10/01/08, FGIC ............ 10/05 at 102 1,091,200
AAA 1,500 Orange Cnty. Tourist Devel. Tax Rev.,
Ser. A, 5.85%, 10/01/08, MBIA ............................. No Opt. Call 1,671,885
AAA 2,000 Osceola Cnty. Trans. Rev., Osceola Pkwy.
Proj., 5.95%, 4/01/08, MBIA ............................... 04/02 at 102 2,144,800
AAA 3,100 Palm Bay Util. Rev., Ser. B, 6.10%, 10/01/02+, MBIA .......... N/A 3,394,624
AAA 7,085 Pasco Cnty. Solid Waste Disp. & Res.
Rec. Sys. Rev., 6.00%, 4/01/09, FGIC ...................... 04/02 at 102 7,604,968
AAA 11,000 Pasco Cnty. Wtr. & Swr. Rev.,
Ser. A, 6.00%, 10/01/09, FGIC ............................. 10/02 at 102 11,887,480
AAA 1,000 Seminole Cnty. Sch. Brd., C.O.P.,
Ser. A, 5.90%, 7/01/04+, MBIA ............................. N/A 1,104,740
AAA 2,000 Seminole Cnty. Wtr. & Swr. Rev.,
6.00%, 10/01/09, MBIA ..................................... No Opt. Call 2,254,140
Tampa Wtr. & Swr. Rev., Ser. A, FGIC,
AAA 1,405 6.25%, 10/01/02+ ....................................... N/A 1,537,674
AAA 1,095 6.25%, 10/01/12 ........................................... 10/02 at 101 1,176,764
AAA 4,065 Volusia Cnty. Edl. Fac. Auth. Rev.,
Embry-Riddle Aeronautical Univ.,
6.50%, 10/15/08, CONNIE LEE ............................... 10/02 at 102 4,473,776
------------
TOTAL LONG TERM INVESTMENTS (COST $186,346,448) .............. 204,359,656
------------
SHORT-TERM INVESTMENTS**--0.3%
FLORIDA--0.3%
A-1+ 500 Hillsborough Cnty. Indl. Dev. Auth., P.C.R., Tampa Elec. Co.,
4.10%, 7/01/98, FRDD ...................................... N/A 500,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $500,000) ................. 500,000
------------
TOTAL INVESTMENTS--144.1% (COST $186,846,448) ................ 204,859,656
Other assets in excess of liabilities--2.3% .................. 3,230,158
Liquidation value of preferred stock--(46.4)% ................ (66,000,000)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........... $142,089,814
============
</TABLE>
- ----------
* Rating: Using the higher of Standard & Poor's, Moody's or Fitch's rating.
** For purposes of amortized cost valuation, the maturity date of these
instruments is considered to be the later of the next date on which the
security can be redeemed at par or the next date on which the rate of
interest is adjusted.
+ These bonds are prerefunded. See glossary for definition.
++ Option Call provisions: date (month/year) and price of the earliest
optional call or redemption. There may be other call provisions at
varying prices at later dates.
THE FOLLOWING ABBREVIATIONS ARE USED IN PORTFOLIO DESCRIPTIONS:
- --------------------------------------------------------------------------------
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
FSA -- Financial Security Assurance
G.O. -- General Obligation Bond
MBIA -- Municipal Bond Insurance Association
P.C.R. -- Pollution Control Revenue
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
6
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $186,846,448)
(Note 1) ................................................. $ 204,859,656
Cash ....................................................... 268,943
Interest receivable ........................................ 3,176,349
Other assets ............................................... 9,447
-------------
208,314,395
-------------
LIABILITIES
Investment advisory fee payable (Note 2) ................... 60,126
Administration fee payable (Note 2) ........................ 17,179
Dividends payable--preferred stock ......................... 27,126
Other accrued expenses ..................................... 120,150
-------------
224,581
-------------
NET INVESTMENT ASSETS ...................................... $ 208,089,814
=============
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 ...................... 3,294,681
Accumulated net realized loss ............................ (212,627)
Net unrealized appreciation .............................. 18,013,208
-------------
Net investment assets, June 30, 1998 ..................... $ 208,089,814
=============
Net assets applicable to common
shareholders ........................................... $ 142,089,814
=============
Net asset value per common share of
beneficial interest: ($142,089,814 / 8,707,093
common shares of beneficial interest issued
and outstanding) ......................................... $16.32
======
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest and discount earned ........................... $ 5,789,091
-----------
Expenses
Investment advisory .................................... 363,386
Administration ......................................... 103,825
Auction agent .......................................... 95,000
Custodian .............................................. 29,000
Reports to shareholders ................................ 24,000
Directors .............................................. 16,000
Audit .................................................. 15,000
Transfer agent ......................................... 8,000
Legal .................................................. 3,000
Miscellaneous .......................................... 16,130
-----------
Total expenses ......................................... 673,341
-----------
Net investment income .................................... 5,115,750
-----------
UNREALIZED LOSS ON
INVESTMENTS (NOTE 3)
Net change in unrealized appreciation
on investments ......................................... (485,127)
-----------
NET INCREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS ....................... $ 4,630,623
===========
See Notes to Financial Statements.
7
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, DECEMBER 31,
1998 1997
----------- -----------
INCREASE (DECREASE) IN NET INVESTMENT ASSETS
OPERATIONS:
<S> <C> <C>
Net investment income ......................................... $ 5,115,750 $ 10,185,612
Net change in unrealized appreciation on investments .......... (485,127) 4,566,620
------------- -------------
Net increase in net investment
assets resulting from operations ........................... 4,630,623 14,752,232
------------- -------------
DIVIDENDS AND DISTRIBUTIONS:
To common shareholders from net investment income ............. (3,755,114) (7,510,256)
To preferred shareholders from net investment income .......... (1,129,114) (2,292,150)
------------- -------------
Total dividends and distributions ........................... (4,884,228) (9,802,406)
------------- -------------
Total increase (decrease) ................................. (253,605) 4,949,826
NET INVESTMENT ASSETS
Beginning of period ............................................... 208,343,419 203,393,593
------------- -------------
End of period ..................................................... $ 208,089,814 $ 208,343,419
============= =============
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, ------------------------------------------------------------
1998 1997 1996 1995 1994 1993
-------- ------- -------- ------- -------- --------
PER COMMON SHARE OPERATING
PERFORMANCE:
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of the period ...................... $ 16.35 $ 15.78 $ 16.04 $ 13.93 $ 16.13 $ 14.28
Net investment income .............. 0.59 1.17 1.16 1.15 1.15 1.15
Net realized and unrealized
gain (loss) on investments ....... (0.06) 0.52 (0.31) 2.10 (2.27) 1.75
Net increase (decrease)
from investment operations ......... 0.53 1.69 0.85 3.25 (1.12) 2.90
Dividends from net investment income to:
Preferred shareholders ............. (0.13) (0.26) (0.25) (0.28) (0.22) (0.17)
Common shareholders ................ (0.43) (0.86) (0.86) (0.86) (0.86) (0.86)
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 .... (0.56) (1.12) (1.11) (1.14) (1.08) (1.05)
Net asset value, end of period** ..... $ 16.32 $ 16.35 $ 15.78 $ 16.04 $ 13.93 $ 16.13
Market value, end of period** ........ $ 16.06 $ 16.06 $ 15.13 $ 15.00 $ 12.13 $ 14.88
TOTAL INVESTMENT RETURN+ ............. 2.70% 12.25% 6.88% 31.26% (13.27%) 9.94%
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:++
Expenses ............................. 0.95%+++ 0.97% 1.02% 1.02% 1.09% 0.99%
Net investment income before
preferred stock dividend ........... 7.24%+++ 7.33% 7.26% 7.55% 7.86% 7.44%
Preferred stock dividends ............ 1.60%+++ 1.65% 1.54% 1.84% 1.48% 1.10%
Net investment income
available to common shareholders ... 5.64%+++ 5.68% 5.72% 5.71% 6.38% 6.34%
SUPPLEMENTAL DATA:
Average net assets of common
shareholders (in thousands) ........ $142,429 $138,890 $138,644 $133,042 $127,640 $134,476
Portfolio turnover ................... 0% 0% 1% 11% 30% 3%
Net assets of common
shareholders, end of period
(in thousands) ..................... $142,090 $142,343 $137,394 $139,628 $121,268 $140,416
Preferred stock outstanding
(in thousands) ..................... $ 66,000 $ 66,000 $ 66,000 $ 66,000 $ 66,000 $ 66,000
Asset coverage per share of
preferred stock, end of period# .... $ 78,822 $ 78,918 $ 77,043 $ 77,889 $141,870 $156,376
</TABLE>
- ----------
* Actual amount paid to preferred shareholders was $0.00344 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. # 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.
++ Ratios calculated on the basis of income and expenses applicable to both
the common and preferred shares, and preferred stock dividends, relative to
the average net assets of common shareholders.
+++ Annualized.
The information above represents the unaudited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the periods indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for Trust's shares.
See Notes to Financial Statements.
9
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION & ACCOUNTING POLICIES
The BlackRock Florida Insured Municipal 2008 Term Trust (the "Trust") was
organized in 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 substantially all of the Trust's gross income consists of
tax-exempt interest, no Federal income tax provision is required.
DIVIDENDS AND DISTRIBUTIONS: The Trust declares and pays dividends and
distributions to common shareholders monthly from net investment income, net
realized short-term capital gains and other sources, if necessary. Net long-term
capital gains, if any, in excess of loss carryforwards may be distributed
annually. Dividends and distributions are recorded on the ex-dividend date.
Dividends and distributions to preferred shareholders are accrued and determined
as described in Note 4.
ESTIMATES: The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
NOTE 2. AGREEMENTS
The Trust has an Investment Advisory Agreement with BlackRock Financial
Management, Inc. (the "Adviser"), a wholly-owned corporate subsidiary of
BlackRock Advisors, Inc., which is an indirect majority-owned subsidiary of
PNCBank, N.A., and an Administration Agreement with Princeton Administrators,
L.P. (the "Administrator"), an indirect wholly-owned subsidiary of Merrill Lynch
& Co., Inc. The investment advisory fee paid to the Adviser is computed weekly
and payable monthly at an annual rate of 0.35% of the Trust's average weekly net
investment assets. The administration fee paid to the Administrator is also
computed weekly and payable monthly at an annual rate of 0.10% of the Trust's
average weekly net investment assets.
Pursuant to the agreements, the Adviser provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Adviser. The Administrator pays occupancy and
certain clerical and accounting costs of the Trust. The Trust bears all other
costs and expenses.
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<PAGE>
NOTE 3. PORTFOLIO SECURITIES
For the six months ended June 30, 1998, the Trust, other than for short-term
investments, had no purchases or sales. The federal income tax basis of the
Trust's investments at June 30, 1998 was substantially the same as the basis for
financial reporting, and accordingly, gross and net unrealized appreciation for
federal income tax purposes was $18,013,208.
For federal income tax purposes, the Trust had a capital loss carryforward at
December 31, 1997 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 June 30, 1998, the
Adviser owned 7,093 shares. As of June 30, 1998, there were 2,640 Series R7
preferred shares outstanding
The Trust may classify or reclassify any unissued common shares of beneficial
interest 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 2.75% to 4.15%
during the six months ended June 30, 1998.
The Trust may not declare dividends or make other distributions on shares of
common stock or purchase any such shares if, at the time of the declaration,
distribution or purchase, asset coverage with respect to the outstanding
Preferred Stock would be less than 200%.
The Preferred Stock is redeemable at the option of the Trust, in whole or in
part, on any dividend payment date at $25,000 per share plus any accumulated or
unpaid dividends whether or not declared. The Preferred Stock is also subject to
mandatory redemption at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared if certain requirements relating to the
composition of the assets and liabilities of the Trust as set forth in the
Articles of Incorporation are not satisfied.
The holders of Preferred Stock have voting rights equal to the holders of
common stock (one vote per share) and will vote together with holders of shares
of common stock as a single class. However, holders of Preferred Stock are also
entitled to elect two of the Trust's 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. DIVIDENDS
Subsequent to June 30, 1998, the Board of Trustees of the Trust declared a
dividend from undistributed earnings of $0.07188 per common share payable July
31, 1998 to shareholders of record on July 15, 1998.
For the period July 1, 1998 to July 31, 1998 dividends declared on Preferred
Stock totalled $186,397 in aggregate for the outstanding Preferred Stock series.
11
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THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
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.
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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. 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.
The Annual Meeting of Trust Shareholders was held
May 6, 1998 to vote on the following matters:
(1) To elect two Directors as follows:
CLASS TERM EXPIRING
----- ----- -------
Walter F. Mondale ......... II 3 years 2001
Ralph L.Schlosstein ....... II 3 years 2001
Directors whose term of office continues beyond this meeting are Andrew
F.Brimmer, Richard E. Cavanagh, Kent Dixon,Frank J. Fabozzi, Laurence
D. Fink,James Grosfeld and James Clayburn La Force, Jr.
(2) To ratify the selection of Deloitte & Touche LLP as independent public
accountants of the Trust for the fiscal year ending December 31, 1998.
Shareholders elected the two Directors and ratified the selection of
Deloitte & Touche LLP. The results of the voting was as follows:
VOTES FOR VOTES AGAINST ABSTENTIONS
-------- ----------- ----------
Walter F.Mondale .......... 6,854,918 0 122,121
Ralph L.Schlosstein ....... 6,892,544 0 84,495
Ratification of
Deloitte & Touche LLP .. 6,916,034 7,297 53,708
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THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
INVESTMENT SUMMARY
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THE TRUST'S INVESTMENT OBJECTIVE
The BlackRock Florida Insured Municipal 2008 Term Trust 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, Inc. ("BlackRock") is an SEC-registered
investment adviser. BlackRock and its affiliates currently manage over $119
billion on behalf of taxable and tax-exempt clients worldwide. Strategies
include fixed income, equity and cash and may incorporate both domestic and
international securities. Domestic fixed income strategies utilize the
government, mortgage, corporate and municipal bond sectors. BlackRock manages
twenty-one closed-end funds that are traded on either the New York or American
stock exchanges, and a $23 billion family of open-end equity and bond funds.
Current institutional clients number 334, domiciled in the United States and
overseas.
WHAT CAN THE TRUST INVEST IN?
The Trust intends to invest at least 80% of its total assets in 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.
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<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
AMT. The Trust currently holds no securities that are subject to AMT.
14
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<TABLE>
<CAPTION>
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THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
GLOSSARY
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<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>
<PAGE>
BLACKROCK
TRUSTEES
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein
OFFICERS
Ralph L. Schlosstein, PRESIDENT
Keith T. Anderson, VICE PRESIDENT
Michael C. Huebsch, VICE PRESIDENT
Robert S. Kapito, VICE PRESIDENT
Kevin Klingert, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Karen H. Sabath, SECRETARY
INVESTMENT ADVISER
BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
(800) 227-7BFM
ADMINISTRATOR
Princeton Administrators, L.P.
P.O. Box 9095
Princeton, NJ 08543-9095
(800) 543-6217
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 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
The accompanying financial statements as of June 30, 1998 were not audited
and, accordingly, no opinion is expressed on them.
This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of any securities.
THE BLACKROCK 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] Printed on recycled paper
===================
The BlackRock
FLORIDA INSURED
MUNICIPAL 2008 TERM
TRUST
===================
SEMI-ANNUAL REPORT
JUNE 30, 1998
