- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------
January 31, 1998
Dear Trust Shareholder:
U.S. fixed income investors have been rewarded with solid total returns
over the past twelve months ended December 31, 1997, as low inflation despite
strong economic growth drove Treasury yields lower.
The economy has shown some signs of slowing, which BlackRock expects may
persist as recessions in the emerging Asian economies and Japan will moderate
U.S. growth. We do not see immediate signs of inflationary pressure nor do we
anticipate an imminent change in monetary policy by the Federal Reserve. Our
longer-term outlook for the bond market remains optimistic, based on the
fundamentally favorable backdrop of slower economic growth, low inflation and
declining Treasury borrowing.
There are exciting developments occurring at BlackRock that we would like
to share with you. As you may know, BlackRock was acquired by PNC Bank, N.A. in
1995. In early 1998 the five investment management firms that comprise the PNC
Asset Management Group were consolidated under the BlackRock umbrella. This will
result in BlackRock Inc. becoming a $100 billion money management firm ranking
it among the 25 largest in the country. We look forward to using our global
investment management expertise to present exciting investment opportunities to
closed-end fund shareholders in the future.
This report contains detailed market and portfolio strategy commentary by
your Trust's managers in addition to the Trust's audited financial statements
and a detailed portfolio listing. We thank you for your continued investment in
the Trust and wish you a successful new year.
Sincerely,
/s/Laurence D. Fink /s/Ralph L. Schlosstein
- ------------------- -----------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President
1
<PAGE>
January 31, 1998
Dear Shareholder:
We are pleased to present the annual report for The BlackRock Florida
Insured Municipal 2008 Term Trust ("the Trust") for the year ended December 31,
1997. We would like to take this opportunity to review the Trust's stock price
and net asset value (NAV) performance, summarize developments in the fixed
income markets and discuss recent portfolio management activity.
The Trust is a non-diversified closed-end bond fund whose investment
objective is to manage a portfolio of municipal debt securities that will return
$15 per share (an amount equal to the Trust's initial public offering price) to
investors on or about December 31, 2008, while providing high current income
exempt from regular federal 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>
- -----------------------------------------------------------------------------------------------------------------
12/31/97 12/31/96 CHANGE HIGH LOW
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
STOCK PRICE $16.0625 $15.125 6.20% $16.25 $14.75
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $16.35 $15.78 3.61% $16.35 $15.46
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
THE FIXED INCOME MARKETS
The U.S. economy exhibited strong growth and low inflation during 1997,
pushing bond yields below 6% for the first time since early 1996. Fueled by
increased consumer spending and low unemployment, growth was robust. The primary
inflation indicators, consumer and producer prices, remained dormant throughout
the period and unemployment rate remained low. After increasing the Fed Funds
Rate to 5.50% in March, the Federal Reserve left the rate unchanged for the
remainder of the year, as the combination of slowing domestic growth and the
economic turmoil in Asia threatened to exert deflationary pressures on the U.S.
economy.
The positive momentum has continued into the early days of 1998 based, in
part, on the possibility of early elimination of the budget deficit and on
comments by Fed Chairman Greenspan that deflation was an issue. New home sales
recently hit a new cyclical peak, the employment picture remains very strong and
consumer confidence and spending remain high. Despite the strong growth, current
and future inflation both appear to be controlled.
Municipal bonds, as measured by the LEHMAN MUNICIPAL BOND INDEX, posted a
9.20% total return for the year, versus 9.68% for the taxable bond market
(measured by the LEHMAN AGGREGATE INDEX). The substantial decline in municipal
interest rates resulted in 1997 being the third largest issuance year on record
(a 19% increase over 1996), which negatively impacted municipal bond
performance. After keeping pace with the Treasury market rally in the second
quarter, municipals cheapened in relation to Treasuries during the latter half
of the year due to reduced participation by retail investors at lower interest
rate levels and increased supply.
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 are
ahead of projections, which could result in a year-end budget surplus of
approximately $1 billion.
2
<PAGE>
Looking forward, we expect issuance of municipal securities in 1998 to be
similar to 1997 levels, with an increase in new supply being offset by a
decrease in refunding supply. BlackRock remains focused on high quality
municipal securities, because the yield advantage of purchasing lower rated
securities remains marginal. The strong state of the economy is expected to
continue, providing strong fundamentals for municipal issuers. We expect to see
more discussions about tax reform towards the end of the first quarter of 1998,
which may create buying opportunities.
THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY
The Trust's portfolio is actively managed to diversify exposure across
various sectors, issuers, revenue sources and security types. BlackRock's
investment strategy emphasizes a relative value approach, which allows the Trust
to capitalize upon changing market conditions by rotating municipal sectors,
credits and coupons. Portfolio trading activity was very low during 1997, as a
majority of the bonds in the portfolio are trading at prices which, if sold,
would result in a taxable capital gain. Additionally, as these bonds were
purchased in higher interest rate environments. Were they to be sold, the Trust
would be forced to reinvest the proceeds in lower yielding securities. Both of
these factors led us to decide that the most prudent investment strategy for
1997 was to maintain the current portfolio structure.
Additionally, the Trust employs leverage to enhance its income by
borrowing at short-term municipal rates and investing the proceeds in longer
maturity issues that have higher yields. The degree to which the Trust can
benefit from its use of leverage may affect its ability to pay high monthly
income. The Trust has experienced favorable short-term municipal rates over the
past year. The Federal Reserve's decision to raise the Fed funds target rate in
March 1997 did not significantly impact the short end of the municipal yield
curve, allowing the rates the Trust pays to preferred shareholders (the Trust's
leverage cost) to remain affordable.
The following charts compare the Trust's current and December 31, 1996
asset composition:
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
- --------------------------------------------------------------------------------
SECTOR DECEMBER 31, 1997 DECEMBER 31, 1996
- --------------------------------------------------------------------------------
Education 20% 19%
- --------------------------------------------------------------------------------
Water & Sewer 18% 18%
- --------------------------------------------------------------------------------
Tax Revenue 17% 16%
- --------------------------------------------------------------------------------
Transportation 14% 14%
- --------------------------------------------------------------------------------
Hospital 12% 12%
- --------------------------------------------------------------------------------
County, City and State 9% 9%
- --------------------------------------------------------------------------------
Utility/Power 5% 5%
- --------------------------------------------------------------------------------
Resource Recovery 4% 4%
- --------------------------------------------------------------------------------
Lease Revenue 1% 1%
- --------------------------------------------------------------------------------
Other -- 2%
- --------------------------------------------------------------------------------
3
<PAGE>
We appreciate your continued confidence and look forward to managing The
BlackRock Florida Insured Municipal 2008 Term Trust Inc. 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 weren't answered in this report. Additionally, you can reach
us via e-mail at [email protected].
Sincerely yours,
/s/Robert S. Kapito /s/Kevin Klingert
- ------------------- -----------------
Robert S. Kapito Kevin Klingert
Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager
BlackRock Financial Management, Inc. BlackRock Financial Management, Inc.
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
- --------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BRF
- --------------------------------------------------------------------------------
Initial Offering Date: September 18, 1992
- --------------------------------------------------------------------------------
Closing Stock Price as of 12/31/97: $16.0625
- --------------------------------------------------------------------------------
Net Asset Value as of 12/31/97: $16.35
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 12/31/97 ($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
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OPTION
PRINCIPAL CALL
RATING* AMOUNT PROVISIONS++ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LONG-TERM INVESTMENTS--143.8%
AAA $ 1,500 Altamonte Springs Wtr. & Swr. Sys. Rev., 6.00%, 10/01/08, FGIC .... 10/02 at 102 $ 1,628,715
AAA 10,000 Brevard Cnty. Sch. Brd., C.O.P., Ser. A, 6.375%, 7/01/02+, AMBAC .. No Opt. Call 11,068,500
Canaveral Port Auth. Impvt. Rev., FGIC,
AAA 2,980 6.00%, 6/01/07 ................................................. 06/02 at 102 3,240,601
AAA 3,155 6.00%, 6/01/08 ................................................. 06/02 at 102 3,418,916
AAA 1,000 Dade Cnty. Aviation Rev., Ser. A, 6.00%, 10/01/08, AMBAC .......... 10/05 at 102 1,114,100
AAA 5,000 Dade Cnty. G.O., Ser. A, Zero Coupon, 2/01/08, MBIA ............... 02/06 at 92.85 3,076,750
Dade Cnty. Sch. Brd., C.O.P., Ser. A, MBIA,
AAA 2,000 5.75%, 5/01/08 ................................................. 05/04 at 101 2,136,100
AAA 3,465 5.75%, 5/01/12 ................................................. 05/04 at 101 3,683,156
AAA 2,500 Dade Cnty. Sch. Dist. Rev., 6.125%, 8/01/01+, FGIC ................ No Opt. Call 2,670,700
AAA 2,000 Dade Cnty. G.O., Ser. B, Zero Coupon, 10/01/08, AMBAC ............. No Opt. Call 1,210,780
AAA 2,500 Daytona Beach Wtr. & Swr. Rev., 6.00%, 11/15/09, AMBAC ............ 11/02 at 102 2,701,275
Duval Cnty. Sch. Dist., G.O., AMBAC,
AAA 3,015 6.30%, 8/01/06 ................................................. 08/02 at 102 3,299,254
AAA 9,000 6.30%, 8/01/07 ................................................. 08/02 at 102 9,848,520
Escambia Cnty. Utils. Auth. Sys. Rev., FGIC,
AAA 2,450 Ser. A, 6.10%, 1/01/09 ......................................... 01/03 at 102 2,661,802
AAA 1,595 Ser. B, 6.125%, 1/01/09 ........................................ No Opt. Call 1,818,683
AAA 8,255 Florida St. Brd. of Ed. Wtr. & Swr. Sys. Rev., Pub. Ed.,
6.125%, 6/01/08, FGIC .......................................... 06/02 at 101 8,873,300
Florida St. Div. Bd. Fin. Dept. Rev. Dept., Nat. Res.& Pres.,
AAA 3,500 Ser. 2000-A, 6.25%, 7/01/08, MBIA .............................. 07/02 at 101 3,801,770
AAA 6,000 6.25%, 7/01/09, MBIA ........................................... 07/02 at 101 6,517,320
AAA 5,000 6.25%, 7/01/10, MBIA ........................................... 07/02 at 101 5,431,100
AAA 2,500 6.75%, 7/01/01+, AMBAC ......................................... No Opt. Call 2,756,550
AAA 3,000 Greater Orlando Aviation Auth., Arpt. Facs. Rev., Ser. D, 6.20%,
10/01/08, AMBAC ................................................ 10/02 at 102 3,296,460
AAA 10,000 Hillsborough Cnty., Tampa Intl. Arpt. Aviation Rev.,
Ser. A, 5.75%, 10/01/11, AMBAC ................................ 10/99 at 104 10,537,100
Hillsborough Cnty., Cap. Impvt., FGIC,
AAA 2,630 6.25%, 8/01/04+ ................................................ No Opt. Call 2,948,598
AAA 1,500 6.60%, 8/01/04+ ................................................ No Opt. Call 1,711,530
AAA 5,000 Hillsborough Cnty., Sch. Brd., C.O.P., 5.875%, 7/01/08, MBIA ...... 07/04 at 102 5,463,500
Indian Trace Cmnty. Dev. Dist., Wtr. Mgmt. Spec. Benefit, Ser. A,
AAA 3,000 MBIA, 5.625%, 5/01/08 .......................................... 05/05 at 102 3,241,950
AAA 2,910 5.75%, 5/01/09 ................................................. 05/05 at 102 3,157,641
AAA 4,000 Jacksonville Elec. Auth. Rev., 5.75%, 10/01/12, AMBAC ............. 10/02 at 101 4,208,440
AAA 5,000 Jacksonville G.O., Ser. A, 5.50%, 10/01/12, AMBAC ................. 10/02 at 102 5,213,200
AAA 2,000 Lakeland Elec. & Wtr. Rev., Jr. Sub. Lien, 5.875%, 10/01/08, FGIC . No Opt. Call 2,236,680
Lakeland Hosp. Sys. Rev., Regl. Med. Care Ctr. Proj., Ser. B, FGIC,
AAA 6,605 6.10%, 11/15/02+ ............................................... No Opt. Call 7,258,829
AAA 3,245 6.10%, 11/15/08 ................................................ 11/02 at 102 3,495,125
AAA 1,100 Lakeland Wastewater Impvt. Rev., 5.50%, 10/01/08, MBIA ............ 10/02 at 102 1,163,811
AAA 4,500 Lee Cnty. Arpt. Rev., Ser. A, 5.50%, 10/01/10, AMBAC .............. 10/02 at 100 4,649,130
AAA 4,750 Lee Cnty. G.O., Ser. A, 7.30%, 10/01/07, MBIA ..................... 10/99 at 102 5,107,817
AAA 1,650 Lee Cnty. Local Option Gas Tax Rev., 5.50%, 10/01/99+, MBIA ....... No Opt. Call 1,692,388
AAA 1,000 Marion Cnty. Hosp. Dist. Rev., Munroe Regl. Med. Ctr.,
6.20%, 10/01/07, FGIC .......................................... 10/02 at 102 1,096,100
AAA 3750 Melbourne Wtr. & Swr. Rev., Ser. C, 6.25%, 10/01/08, FGIC ......... 10/02 at 102 4,120,050
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL CALL
RATING* AMOUNT PROVISIONS++ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AAA $11,000 Miami Beach Hlth. Facs. Auth. Hosp. Rev., Mt. Sinai Med. Ctr. Proj.,
6.25%, 11/15/08, FSA ........................................... 11/02 at 102 $ 12,029,820
Miami, G.O., FGIC,
AAA 1,345 5.90%, 12/01/08 ................................................ No Opt. Call 1,494,282
AAA 1,000 6.00%, 12/01/09 ................................................ No Opt. Call 1,122,980
AAA 1,000 Orange Cnty. Pub. Svc.Tax, 5.70%, 10/01/08, FGIC .................. 10/05 at 102 1,088,450
AAA 1,500 Orange Cnty. Tourist Devel. Tax Rev., Ser. A, 5.85%, 10/01/08, MBIA No Opt. Call 1,675,710
AAA 2,000 Osceola Cnty. Trans. Rev., Osceola Pkwy. Proj., 5.95%, 4/01/08, MBIA 04/02 at 102 2,150,840
AAA 3,100 Palm Bay Util. Rev., Ser. B, 6.10%, 10/01/02+, MBIA .............. No Opt. Call 3,401,258
AAA 7,085 Pasco Cnty. Solid Waste Disp. & Res. Rec. Sys. Rev.,
6.00%, 4/01/09, FGIC 04/02 at 1027,638,622
AAA 11,000 Pasco Cnty. Wtr. & Swr. Rev., Ser. A, 6.00%, 10/01/09, FGIC ....... 10/02 at 102 11,929,170
AAA 1,000 Seminole Cnty. Sch. Brd., C.O.P., Ser. A, 5.90%, 7/01/04+, MBIA ... No Opt. Call 1,104,890
AAA 2,000 Seminole Cnty. Wtr. & Swr. Rev., 6.00%, 10/01/09, MBIA ............ No Opt. Call 2,272,460
Tampa Wtr. & Swr. Rev., Ser. A, FGIC,
AAA 1,405 6.25%, 10/01/02+ ............................................... No Opt Call 1,542,128
AAA 1,095 6.25%, 10/01/12 ................................................ 10/02 at 101 1,189,674
AAA 4,065 Volusia Cnty. Edl. Fac. Auth. Rev., Embry-Riddle Aeronautical Univ.,
6.50%, 10/15/08, CONNIE LEE .................................... 10/02 at 102 4,500,809
------------
TOTAL LONG-TERM INVESTMENTS (cost $186,198,999) ................... 204,697,334
------------
SHORT-TERM INVESTMENTS **--0.5%
FLORIDA--0.5%
A1+ 200 Hillsborough Cnty. Indl. Dev. Auth., Poll. Ctrl. Rev.,
Tampa Elec. Co., FRDD, 7.875%, 1/02/98 ........................ 200,000
A1 300 Pinellas Cnty. Hlth. Facs. Auth. Rev., FRDD, 3.90%, 1/02/98 ....... 300,000
A1+ 200 Saint Lucie Cnty. Poll. Ctrl. Rev., Florida Pwr. & Light Co. Proj.,
FRDD, 4.40%, 1/02/98 .......................................... 200,000
------------
TOTAL SHORT-TERM INVESTMENTS (cost $700,000) ...................... 700,000
------------
TOTAL INVESTMENTS--144.3% (cost $186,898,999) ..................... 205,397,334
Other assets in excess of liabilities--2.1% ....................... 2,946,085
Liquidation value of preferred stock--(46.4)% ..................... (66,000,000)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ................ $142,343,419
============
</TABLE>
- ----------
* Rating: used the higher of Standard & Poor's, Moody's or Fitch's.
** For purposes of amortized cost valuation, the maturity date of these
instruments is considered to be the later of the next date on which the
security can be redeemed at par or the next date on which the rate of
interest is adjusted.
+ This bond is prerefunded. See glossary for definition.
++ Option Call provisions: date (month/year) and price of the earliest optional
call or redemption. There may be other call provisions at varying prices at
later dates.
- --------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
C.O.P.-- Certificate of Participation
CONNIE LEE -- College Construction Loan Insurance Association
FGIC -- Financial Guaranty Insurance Company
FRDD -- Floating Rate Daily Demand
FSA -- Financial Security Assurance, Inc.
G.O.-- General Obligation Bond
MBIA -- Municipal Bond Insurance Association
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
6
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $186,898,999)
(Note 1) ............................... $205,397,334
Cash ..................................... 60,783
Interest receivable ...................... 3,176,887
Other assets ............................. 17,540
------------
208,652,544
------------
LIABILITIES
Advisory fee payable (Note 2) ............ 61,035
Dividends payable--preferred stock ....... 55,598
Administration fee payable (Note 2) ...... 17,439
Other accrued expenses ................... 175,053
------------
309,125
------------
NET INVESTMENT ASSETS .................... $208,343,419
============
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 .... 3,063,159
Accumulated net realized loss .......... (212,627)
Net unrealized appreciation ............ 18,498,335
------------
Net investment assets,
December 31, 1997 ...................... $208,343,419
============
Net assets applicable to common
shareholders ......................... $142,343,419
============
Net asset value per common share of
beneficial interest: ($142,343,419/8,707,093
common shares of beneficial interest issued
and outstanding) ....................... $16.35
======
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest and discount earned ........... $11,535,034
-----------
Expenses
Investment advisory .................... 710,504
Administration ......................... 203,001
Auction agent .......................... 178,000
Custodian .............................. 55,000
Reports to shareholders ................ 32,000
Directors .............................. 31,000
Audit .................................. 28,000
Transfer agent ......................... 18,000
Legal .................................. 7,000
Miscellaneous .......................... 86,917
-----------
Total expenses ......................... 1,349,422
-----------
Net investment income .................... 10,185,612
-----------
UNREALIZED GAIN ON
INVESTMENTS (NOTE 3)
Net change in unrealized appreciation
on investments ......................... 4,566,620
-----------
NET INCREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS ....... $14,752,232
===========
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,
----------------------------
1997 1996
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET INVESTMENT ASSETS
OPERATIONS:
Net investment income ............................................................ $ 10,185,612 $ 10,069,611
Net change in unrealized appreciation (depreciation) on investments .............. 4,566,620 (2,665,312)
------------ ------------
Net increase in net investment assets resulting from operations .................. 14,752,232 7,404,299
------------ ------------
DIVIDENDS AND DISTRIBUTIONS:
To preferred shareholders from net investment income ............................. (2,292,150) (2,128,568)
To common shareholders from net investment income ................................ (7,510,256) (7,510,208)
------------ ------------
Total dividends and distributions .............................................. (9,802,406) (9,638,776)
------------ ------------
Total increase (decrease) .................................................... 4,949,826 (2,234,477)
NET INVESTMENT ASSETS
Beginning of year .................................................................... 203,393,593 205,628,070
------------ ------------
End of year .......................................................................... $208,343,419 $203,393,593
============ ============
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
----------------------------------------------------------
1997 1996 1995 1994 1993
------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of the year ............... $ 15.78 $ 16.04 $ 13.93 $ 16.13 $ 14.28
------- ------- ------- ------- -------
Net investment income .............................. 1.17 1.16 1.15 1.15 1.15
Net realized and unrealized gain
(loss) on investments ............................. 0.52 (0.31) 2.10 (2.27) 1.75
------- ------- ------- ------- -------
Net increase (decrease) from investment operations ... 1.69 0.85 3.25 (1.12) 2.90
Dividends from net investment income to:
Preferred shareholders ............................. (0.26) (0.25) (0.28) (0.22) (0.17)
Common shareholders ................................ (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 .................... (1.12) (1.11) (1.14) (1.08) (1.05)
------- ------- ------- ------- -------
Net asset value, end of year** ....................... $ 16.35 $ 15.78 $ 16.04 $ 13.93 $ 16.13
======== ======== ======= ======== ========
Market value, end of year** .......................... $16.0625 $ 15.125 $ 15.00 $ 12.125 $ 14.875
======== ======== ======= ======== ========
TOTAL INVESTMENT RETURN+ ............................. 12.25% 6.88% 31.26% (13.27)% 9.94%
======== ======== ======= ======== ========
RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:++
Expenses ............................................. 0.97% 1.02% 1.02% 1.09% 0.99%
Net investment income before preferred stock dividend 7.33% 7.26% 7.55% 7.86% 7.44%
Preferred stock dividends ............................ 1.65% 1.54% 1.84% 1.48% 1.10%
Net investment income available to common shareholders 5.68% 5.72% 5.71% 6.38% 6.34%
SUPPLEMENTAL DATA:
Average net assets of common shareholders
(in thousands) ...................................... $138,890 $138,644 $133,042 $127,640 $134,476
Portfolio turnover ................................... 0% 1% 11% 30% 3%
Net assets of common shareholders, end of period
(in thousands) ....................................... $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
Asset coverage per share of preferred stock,
end of year# ........................................ $ 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.
The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the year indicated. This information
has been determined based upon financial information provided in the financial
statements and market value data for Trust's shares.
See Notes to Financial Statements.
9
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
NOTES TO FINANCIAL STATEMENTS
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NOTE 1. 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 60 days or less are valued at amortized
cost, if their term to maturity from date of purchase is 60 days or less.
Short-term securities with a term to maturity greater than 60 days from the date
of purchase are valued at current market quotations until maturity.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized gains and losses are calculated on the
identified cost basis. Interest income is recorded on the accrual basis and the
Trust amortizes premium 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
capital gains, if any, in excess of loss carryforwards may be distributed
annually. Dividends and distributions are recorded on the ex-dividend date.
Dividends and distributions to preferred shareholders are accrued and determined
as described in Note 4.
ESTIMATES: The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
NOTE 2. AGREEMENTS
The Trust has an Investment Advisory Agreement with BlackRock Financial
Management, Inc. (the "Adviser") a wholly-owned corporate subsidiary of PNC
Asset Management Group, Inc., the holding company for PNC's asset management
businesses, and an Administration Agreement with Princeton Administrators, L.P.
(the "Administrator"), an indirect wholly owned subsidiary of Merrill Lynch &
Co., Inc.
The investment advisory fee paid to the Adviser is computed weekly and
payable monthly at an annual rate of 0.35% of the Trust's average weekly net
investment assets. The administration fee paid to the Administrator is also
computed weekly and payable monthly at an annual rate of 0.10% of the Trust's
average weekly net investment assets.
Pursuant to the agreements, the Adviser provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Adviser. The Administrator pays occupancy and
certain clerical and accounting costs of the Trust. The Trust bears all other
costs and expenses.
NOTE 3. PORTFOLIO SECURITIES
For the year ended December 31, 1997, the Trust, other than for short-term
investments, had no purchases or sales.
10
<PAGE>
The federal income tax basis of the Trust's investments at December 31, 1997
was substantially the same as the basis for financial reporting, and
accordingly, unrealized appreciation was $18,498,335 (on both a gross and net
basis).
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 benefi- cial interest
authorized. Of the 8,707,093 common shares outstanding at December 31, 1997, the
Adviser owned 7,093 shares. As of December 31, 1997, 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 1.90% to 5.125%
for the year ended December 31, 1997.
The Trust may not declare dividends or make other distributions on shares of
common stock or purchase any such shares if, at the time of the declaration,
distribution or purchase, asset coverage with respect to the outstanding
Preferred Stock would be less than 200%.
The Preferred Stock is redeemable at the option of the Trust, in whole or in
part, on any dividend payment date at $25,000 per share plus any accumulated or
unpaid dividends whether or not declared. The Preferred Stock is also subject to
mandatory redemption at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared if certain requirements relating to the
composition of the assets and liabilities of the Trust as set forth in the
Articles of Incorporation are not satisfied.
The holders of Preferred Stock have voting rights equal to the holders of
common stock (one vote per share) and will vote together with holders of shares
of common stock as a single class. However, holders of Preferred Stock are also
entitled to elect two of the Trust's 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 December 31, 1997, the Board of Trustees of the Trust declared a
dividend from undistributed earnings of $0.07188 per common share payable
January 31, 1998 to shareholders of record on January 15, 1998.
For the period January 1, 1998 to January 31, 1998 dividends declared on
Preferred Stock totalled $201,387 in aggregate for the outstanding Preferred
Stock series.
11
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THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
REPORT OF INDEPENDENT AUDITORS
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The Shareholders and Board of Directors of
The BlackRock Florida Insured Municipal 2008 Term Trust:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of The BlackRock Florida Insured Municipal 2008
Term Trust, as of December 31, 1997, and the related statements of operations
for the year then ended, and of changes in net investment assets for each of the
two years in the period then ended and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at December
31, 1997 by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by Management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of The BlackRock
Florida Insured Municipal 2008 Term Trust as of December 31, 1997, the results
of its operations, the changes in its net investment assets and the financial
highlights for the respective stated periods, in conformity with generally
accepted accounting principles.
/s/Deloitte & Touche LLP
- ------------------------
Deloitte & Touche LLP
New York, New York
February 13, 1998
12
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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 (December 31, 1997) as to the federally
tax-exempt interest dividends received by you during such fiscal year.
Accordingly, we are advising you that all dividends paid by the Trust during the
fiscal year were federally tax-exempt interest dividends.
- --------------------------------------------------------------------------------
DIVIDEND REINVESTMENT PLAN
- --------------------------------------------------------------------------------
Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders may elect to have all distributions of dividends and capital gains
automatically reinvested by State Street Bank & Trust Company (the "Plan Agent")
in Trust shares. Shareholders who do not participate in the Plan will receive
all distributions in cash paid by check in United States dollars mailed directly
to the shareholders of record (or if the shares are held in street or other
nominee name, then to the nominee) by the custodian, as dividend disbursing
agent.
The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the New York
Stock Exchange for the participants' accounts. The Trust will not issue shares
under the Plan.
Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment for any fraction of a Trust share.
The Plan Agent's fees for the handling of the reinvestment of dividends
and distributions will be paid by the Trust. However, each participant will pay
a pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any federal income tax that may be payable on
such dividends or distributions.
Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of the
change sent to all shareholders of the Trust at least 90 days before the record
date for the dividend or distribution. The Plan also may be amended or
terminated by the Plan Agent upon at least 90 days' written notice to all
shareholders of the Trust. All correspondence concerning the Plan should be
directed to the Plan Agent at (800) 699-1BFM. The address is on the front of
this report.
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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.
13
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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, Inc. (BlackRock or the Adviser) is the
investment adviser for the Trust. BlackRock is a registered investment adviser
specializing in fixed income securities. Currently, BlackRock manages
approximately $55 billion of assets across the government, mortgage, corporate
and municipal sectors. These assets are managed on behalf of institutional and
individual investors in 21 closed-end funds traded on the New York or American
Stock exchanges, several open-end funds and separate accounts for more than 125
clients in the U.S. and overseas. BlackRock is a subsidiary of PNC Asset
Management Group, Inc. which is a division of PNC Bank, N.A., one of the
nation's largest banking organizations.
WHAT CAN THE TRUST INVEST IN?
The Trust intends to invest at least 80% of its total assets in 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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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.
15
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THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
GLOSSARY
- --------------------------------------------------------------------------------
CLOSED-END FUND:
Investment vehicle which initially offers a fixed number of shares and trades on
a stock exchange. The fund invests in a portfolio of securities in accordance
with its stated investment objectives and policies.
DISCOUNT:
When a fund's net asset value is greater than its stock price the fund is said
to be trading at a discount.
DIVIDEND:
Income generated by securities in a portfolio and distributed to shareholders
after 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.
16
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BLACKROCK FINANCIAL MANAGEMENT, INC.
SUMMARY OF CLOSED-END FUNDS
- --------------------------------------------------------------------------------
TAXABLE TRUSTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ ------
<S> <C> <C>
The BlackRock Income Trust Inc. ........................................................... BKT N/A
The BlackRock North American Government Income Trust Inc. ................................. BNA N/A
TERM TRUSTS
The BlackRock 1998 Term Trust Inc. ........................................................ BBT 12/98
The BlackRock 1999 Term Trust Inc. ........................................................ BNN 12/99
The BlackRock Target Term Trust Inc. ...................................................... BTT 12/00
The BlackRock 2001 Term Trust Inc. ........................................................ BLK 06/01
The BlackRock Strategic Term Trust Inc. ................................................... BGT 12/02
The BlackRock Investment Quality Term Trust Inc. .......................................... BQT 12/04
The BlackRock Advantage Term Trust Inc. ................................................... BAT 12/05
The BlackRock Broad Investment Grade 2009 Term Trust Inc. ................................. BCT 12/09
TAX-EXEMPT TRUSTS
- --------------------------------------------------------------------------------
STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ ------
The BlackRock Investment Quality Municipal Trust Inc. ..................................... BKN N/A
The BlackRock California Investment Quality Municipal Trust Inc. .......................... RAA N/A
The BlackRock Florida Investment Quality Municipal Trust .................................. RFA N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc. .......................... RNJ N/A
The BlackRock New York Investment Quality Municipal Trust Inc. ............................ RNY N/A
TERM TRUSTS
The BlackRock Municipal Target Term Trust Inc. ............................................ BMN 12/06
The BlackRock Insured Municipal 2008 Term Trust Inc. ...................................... BRM 12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc. ........................... BFC 12/08
The BlackRock Florida Insured Municipal 2008 Term Trust ................................... BRF 12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc. ............................. BLN 12/08
The BlackRock Insured Municipal Term Trust Inc. ........................................... BMT 12/10
</TABLE>
IF YOU WOULD LIKE FURTHER INFORMATION PLEASE CALL BLACKROCK AT (800)
227-7BFM (7236) OR CONSULT WITH YOUR FINANCIAL ADVISOR.
17
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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 $55 billion of
assets across the government, mortgage, corporate and municipal sectors. These
assets are managed on behalf of institutional and individual investors in 21
closed-end funds traded either on the New York Stock Exchange or the American
Stock Exchange, several open-end funds and over 125 institutional clients in the
United States and overseas.
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 individuals 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 market, 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 propriety 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 propriety analytical tools are used for
evaluating, investing in and designing investment strategies and portfolio 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.
18
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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) 688-0928
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 0217
(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) Printed on recycled paper
The BlackRock
Florida Insured
Municipal 2008 Term Trust
=========================
Annual Report
December 31, 1997
