---------
The BlackRock
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Florida Insured
Municipal 2008
Term Trust
================================================
Annual Report
December 31, 1998
[GRAPHIC OMITTED]
<PAGE>
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THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
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January 31, 1999
Dear Shareholders:
Over the past twelve months, U.S. Treasury securities have experienced a
strong rally, as investors sought a safe haven from global market turmoil and
the Federal Reserve continued to cut interest rates. Other segments of the fixed
income market have lagged behind Treasuries, but still produced generally
positive returns since our last report. We anticipate that the Federal Reserve
will remain prepared to combat any signs of a credit crunch through interest
rate cuts, and given the unstable economic situation in Brazil, the Fed likely
will retain an easing bias.
Despite previous worries of a second half slowdown in 1998, the U.S.
economy continues to expand rapidly, supported by strong consumer spending. This
momentum, however, may not continue as briskly into the new year, based on
weaker corporate profits and a loosening of the labor markets. Already, major
corporations have warned of slower profit growth and announced major layoffs.
This report contains detailed market and portfolio strategy by your
Trust's managers in addition to the Trust's audited financial statements and a
detailed list of the portfolio's holdings. We thank you for your continued
investment in the Trust and look forward to serving your investment needs in the
future.
Sincerely,
/s/ Laurence D. Fink /s/ Ralph L. Schlosstein
Laurence D. Fink Ralph L. Schlosstein
Chairman President
1
<PAGE>
January 31, 1999
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,
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 past year:
<TABLE>
<CAPTION>
------------------------------------------------------------------
12/31/98 12/31/97 Change High Low
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Stock Price $16.8125 $16.0625 4.67% $17.00 $15.625
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Net Asset Value (NAV) $16.51 $16.35 0.98% $16.70 $16.21
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</TABLE>
The Fixed Income Markets
The first half of the Trust's fiscal year saw Treasury yields decline
towards historic lows. These lows were the result of budget surplus projections
as well as the Federal Reserve's decision to move from a tightening bias to a
neutral interest rate policy. The positive economic momentum throughout the
first half of the fiscal year was strengthened by unseasonably warm weather that
led to increased consumer spending and job gains, which softened the negative
impact on trade from the Asian financial crisis.
The second half of the Trust's fiscal year witnessed virtually
unparalleled market turbulence. Although consumers continued their spending
domestically, demand for U.S. goods abroad faltered, as the strong dollar and
overseas weakness, especially in Asia, drove prices for U.S. goods higher
relative to foreign goods.
Toward year-end, U.S. GDP growth rebounded; however, the instability in
global financial markets began to rattle investor confidence. The devaluation of
the Russian ruble and the fear of a possible devaluation of the Brazilian
currency caused a flight-to-quality to U.S. Treasuries. Corporate yield spreads
across all credits to Treasuries widened dramatically as a result of the
sell-off. This dramatic shift of investor sentiment culminated in the near
collapse of a prominent hedge fund.
The Treasury market rally pushed Treasury yields to historic levels below
the 5% barrier. In response to the financial fragility in the third quarter of
1998, the Fed eased interest rates on September 29, 1998 by 25bps and again on
October 15, in an unusual between-meetings move. On November 17, the Fed eased
interest rates again by 25bps.
These rate cuts seem to have had their desired effect on the US
economy--which finished the year with a 3.5% growth rate. Growth in 1999,
however, may decrease significantly and further easing of interest rates by the
Federal Reserve is possible as the Western economies will need to provide
support for the global economy. With economic growth and labor markets expected
to soften during the first half of 1999, we expect inflation to remain under
control.
2
<PAGE>
Rapidly declining Treasury yields and significant supply of new municipal
issues were responsible for the underperformance of municipals versus treasuries
in 1998. However, on a historical basis, municipals remain attractive,
particularly those with longer maturities. Also, retail investors, who have been
focused on the equity markets have begun to migrate back to the municipal
market. These factors may enable municipals to outperform Treasuries in the
coming year.
Florida has experienced rapid population growth, since mid-century, far
exceeding that of the nation. During the present decade, the State's population
has grown 14% to a peak of 15 million residents. Today 59% of the population is
working age (age 18-64) and nearly all are employed as Florida's unemployment
rate has remained below national levels since 1994 and is expected to average
4.5% for 1998, mirroring that of the nation. The 47 million tourists visiting
Florida in 1998 helped support the State's service dependent economy; over 50
million visitors are expected next year. Residential construction has recovered
from the downturn earlier in this decade and is now projected to grow into the
millenium.
This growing and vibrant economy fuels the State's strong fiscal position,
which ended FYl998 with reserve funds of over $1.4 billion. Tax receipts are the
largest source of income and the sales tax accounted for 70% of total taxes
received. We believe that positive revenue trends combined with strong financial
management will continue to maintain Florida's fiscal viability.
The Trust's Portfolio and Investment Strategy
The Trust's portfolio is actively managed to diversify exposure across
various sectors, issuers, revenue sources and types of bonds. 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 1998, 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. If they were sold, the Trust
would be forced to reinvest the proceeds in lower yielding securities. These
factors led us to decide that the most prudent investment strategy for 1998 was
to maintain the current portfolio structure.
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, providing
for profitable leverage.
The following chart compares the Trust's current and December 31, 1997
asset composition:
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The BlackRock Florida Insured Municipal 2008 Term Trust
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Sector December 31, 1998 December 31, 1997
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Education 21% 20%
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Tax Revenue 18% 17%
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Water & Sewer 18% 18%
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Transportation 14% 14%
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Hospital 12% 12%
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County, City and State 7% 9%
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Utility/Power 5% 5%
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Resource Recovery 4% 4%
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Lease Revenue 1% 1%
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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 closedend_funds@blackrock com.
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.
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The BlackRock Florida Insured Municipal 2008 Term Trust
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Symbol on New York Stock Exchange: BRF
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Initial Offering Date: September 18, 1992
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Closing Stock Price as of 12/31/98: $16.8125
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Net Asset Value as of 12/31/98: $16.51
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Yield on Closing Stock Price as of 12/31/98 ($16.8125)(1): 5.13%
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Current Monthly Distribution per Common Share(2): $0.07188
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Current Annualized Distribution per Common Share(2): $0.86256
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(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>
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The BlackRock Florida Insured Municipal 2008 Term Trust
Portfolio of Investments December 31, 1998
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<TABLE>
<CAPTION>
Option
Principal Call
Rating* Amount Provisions++ Value
(Unaudited) (000) Description (Unaudited) (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LONG-TERM INVESTMENTS--143.1%
AAA $ 1,500 Altamonte Springs Wtr. & Swr. Sys. Rev., 6.00%, 10/01/08, FGIC .............. 10/02 at 102 $ 1,634,400
AAA 10,000 Brevard Cnty. Sch. Brd., C.O.P., Ser. A, 6.375%, 7/01/02+, AMBAC ............ N/A 11,060,700
Canaveral Port Auth. Impvt. Rev., FGIC,
AAA 2,980 6.00%, 6/01/07 .......................................................... 6/02 at 102 3,234,730
AAA 3,155 6.00%, 6/01/08 .......................................................... 6/02 at 102 3,419,421
AAA 1,000 Dade Cnty. Aviation Rev., Ser. A, 6.00%, 10/01/08, AMBAC .................... 10/05 at 102 1,131,070
Dade Cnty. G.O.,
AAA 5,000 Ser. A, Zero Coupon, 2/01/08, MBIA. ..................................... 2/06 at 92.852 3,378,050
AAA 2,000 Ser. B, Zero Coupon, 10/01/08, AMBAC .................................... No Opt. Call 1,328,423
AAA 5,465 Dade Cnty. Sch. Brd., C.O.P., Ser. A, 5.75%, 5/01/04+, MBIA ................. N/A 5,990,624
AAA 2,500 Dade Cnty. Sch. Dist. Rev., 6.125%, 8/01/01+, FGIC .......................... N/A 2,653,525
AAA 2,500 Daytona Beach Wtr. & Swr. Rev., 6.00%, 11/15/09, AMBAC ...................... 11/02 at 102 2,713,325
Duval Cnty. Sch. Dist., G.O., AMBAC,
AAA 3,015 6.30%, 8/01/06 .......................................................... 8/02 at 102 3,259,034
AAA 9,000 6.30%, 8/01/07. ......................................................... 8/02 at 102 9,728,460
Escambia Cnty. Utils. Auth. Sys. Rev., FGIC,
AAA 2,450 Ser. A, 6.10%, 1/01/03+ ................................................. N/A 2,698,773
AAA 1,595 Ser. B, 6.125%, 1/01/09 ................................................. No Opt. Call 1,845,574
AAA 8,255 Florida St. Brd. of Ed. Wtr. & Swr. Sys. Rev., Pub. Ed., 6.125%,
6/01/08, FGIC. .......................................................... 6/02 at 101 8,907,062
Florida St. Div. Bd. Fin. Dept. Rev. Nat. Res. & Pres., Ser. 2000-A,
AAA 14,500 6.25%, 7/01/02+, MBIA ................................................... N/A 15,826,460
AAA 2,500 6.75%, 7/01/01+, AMBAC .................................................. N/A 2,731,425
AAA 3,000 Greater Orlando Aviation Auth., Arpt. Fac. Rev., Ser. D, 6.20%,
10/01/08, AMBAC ......................................................... 10/02 at 102 3,294,960
Hillsborough Cnty. Cap. Impvt., FGIC,
AAA 2,630 6.25%, 8/01/04+ ......................................................... N/A 2,964,878
AAA 1,500 6.60%, 8/01/04+ ......................................................... N/A 1,717,095
AAA 5,000 Hillsborough Cnty. Sch. Brd., C.O.P., 5.875%, 7/01/04+, MBIA ................ N/A 5,564,350
AAA 10,000 Hillsborough Cnty. Tampa Intl. Arpt. Aviation Rev., Ser. A, 5.75%,
10/01/11, AMBAC ......................................................... 10/99 at 104 10,512,000
Indian Trace Cmnty. Dev. Dist., Wtr. Mgmt. Spec. Benefit, Ser. A, MBIA,
AAA 3,000 5.625%, 5/01/08 ......................................................... 5/05 at 102 3,294,930
AAA 2,910 5.75%, 5/01/09 .......................................................... 5/05 at 102 3,212,698
AAA 4,000 Jacksonville Elec. Auth. Rev., 5.75%, 10/01/12, AMBAC. ...................... 10/02 at 102 4,233,480
AAA 5,000 Jacksonville G.O., Ser. A, 5.50%, 10/01/12, AMBAC ........................... 10/02 at 102 5,282,900
AAA 2,000 Lakeland Elec. & Wtr. Rev., Jr. Sub. Lien, 5.875%, 10/01/08, FGIC ........... No Opt. Call 2,279,980
Lakeland Hosp. Sys. Rev., Regl. Med. Care Ctr. Proj., Ser. B, FGIC,
AAA 6,605 6.10%, 11/15/02+ ........................................................ N/A 7,284,456
AAA 3,245 6.10%, 11/15/08 ......................................................... 11/02 at 102 3,517,580
AAA 1,100 Lakeland Wastewater Impvt. Rev., 5.50%, 10/01/08, MBIA. ..................... 10/02 at 102 1,171,676
AAA 4,500 Lee Cnty. Arpt. Rev., Ser. A, 5.50%, 10/01/10, AMBAC ........................ 10/02 at 100 4,681,080
AAA 4,750 Lee Cnty. G.O., Ser. A, 7.30%, 10/01/07, MBIA. .............................. 10/99 at 102 4,972,300
AAA 1,650 Lee Cnty. Local Option Gas Tax Rev., 5.50%, 10/01/99+, MBIA. ................ N/A 1,679,733
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
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<TABLE>
<CAPTION>
Option
Principal Call
Rating* Amount Provisions++ Value
(Unaudited) (000) Description (Unaudited) (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AAA $ 1,000 Marion Cnty. Hosp. Dist. Rev., Munroe Regl. Med. Ctr., 6.20%,
10/01/07, FGIC ........................................................... 10/02 at 102 $ 1,094,650
AAA 3,750 Melbourne Wtr. & Swr. Rev., Ser. C, 6.25%, 10/01/08, FGIC. ................... 10/02 at 102 4,118,288
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 12,064,910
Miami, G.O., FGIC,
AAA 1,345 5.90%, 12/01/08 .......................................................... No Opt. Call 1,526,952
AAA 1,000 6.00%, 12/01/09 .......................................................... No Opt. Call 1,162,490
AAA 1,000 Orange Cnty. Pub. Svc. Tax, 5.70%, 10/01/08, FGIC ............................ 10/05 at 102 1,107,240
AAA 1,500 Orange Cnty. Tourist Devel. Tax Rev., Ser. A, 5.85%, 10/01/08, MBIA .......... No Opt. Call 1,707,000
AAA 2,000 Osceola Cnty. Trans. Rev., Osceola Pkwy. Proj., 5.95%, 4/01/08, MBIA. ........ 4/02 at 102 2,152,320
AAA 3,100 Palm Bay Util. Rev., Ser. B, 6.10%, 10/01/02+, MBIA .......................... N/A 3,411,240
AAA 7,085 Pasco Cnty. Solid Waste Disp. & Res. Rec. Sys. Rev., 6.00%, 4/01/09,
FGIC ..................................................................... 4/02 at 102 7,642,023
AAA 11,000 Pasco Cnty. Wtr. & Swr. Rev., Ser. A, 6.00%, 10/01/09, FGIC .................. 10/02 at 102 11,957,440
AAA 1,000 Seminole Cnty. Sch. Brd., C.O.P., Ser. A, 5.90%, 7/01/04+, MBIA .............. N/A 1,114,100
AAA 2,000 Seminole Cnty. Wtr. & Swr. Rev., 6.00%, 10/01/09, MBIA. ...................... No Opt. Call 2,311,520
Tampa Wtr. & Swr. Rev., Ser. A, FGIC,
AAA 1,405 6.25%, 10/01/02+. ........................................................ N/A 1,543,687
AAA 1,095 6.25%, 10/01/12. ......................................................... 10/02 at 101 1,185,502
AAA 4,065 Volusia Cnty. Edl. Fac. Auth. Rev., Embry-Riddle Aeronautical Univ.,
6.50%, 10/15/08, CONNIE LEE .............................................. 10/02 at 102 4,487,516
------------
Total Investments--143.1% (cost $186,488,579) ................................ 205,792,030
Other assets in excess of liabilities--2.8% .................................. 3,977,170
Liquidation value of preferred stock--(45.9)% ................................ (66,000,000)
------------
Net Assets Applicable to Common Shareholders--100% ........................... $143,769,200
============
</TABLE>
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* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
+ 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.
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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
FSA -- Financial Security Assurance
G.O.-- General Obligation Bond
MBIA -- Municipal Bond Insurance Association
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See Notes to Financial Statements.
6
<PAGE>
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The BlackRock Florida Insured
Municipal 2008 Term Trust
Statement of Assets and Liabilities
December 31, 1998
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Assets
Investments, at value (cost $186,488,579)
(Note 1) ................................................... $ 205,792,030
Cash ......................................................... 989,574
Interest receivable .......................................... 3,174,904
Other assets ................................................. 8,561
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............................................................. 209,965,069
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Liabilities
Investment advisory fee payable (Note 2) ..................... 62,233
Administration fee payable (Note 2) .......................... 17,781
Dividends payable--preferred stock ........................... 5,405
Other accrued expenses ....................................... 110,450
-------------
195,869
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Net Investment Assets ........................................ $ 209,769,200
=============
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
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186,994,552
Undistributed net investment income ........................ 3,683,824
Accumulated net realized loss .............................. (212,627)
Net unrealized appreciation ................................ 19,303,451
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Net investment assets, December 31, 1998 ................... $ 209,769,200
=============
Net assets applicable to common
shareholders ............................................. $ 143,769,200
=============
Net asset value per common share of
beneficial interest: ($143,769,200 / 8,707,093
common shares of beneficial interest issued
and outstanding) ........................................... $ 16.51
=============
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The BlackRock California Insured
Municipal 2008 Term Trust Inc.
Statement of Operations
Year Ended December 31, 1998
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Net Investment Income
Income
Interest and discount earned ............................... $ 11,561,708
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Expenses
Investment advisory ........................................ 732,329
Administration ............................................. 209,237
Auction agent .............................................. 179,000
Custodian .................................................. 60,000
Reports to shareholders .................................... 46,000
Directors .................................................. 32,000
Audit ...................................................... 31,500
Transfer agent ............................................. 19,500
Legal ...................................................... 7,000
Miscellaneous .............................................. 5,827
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Total expenses ......................................... 1,322,393
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Net investment income ........................................ 10,239,315
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Unrealized Gain On
Investments (Note 3)
Net change in unrealized appreciation
on investments ............................................. 805,116
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Net Increase In Net Investment
Assets Resulting From Operations ........................... $ 11,044,431
=============
See Notes to Financial Statements.
7
<PAGE>
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The BlackRock Florida Insured Municipal 2008 Term Trust
Statements of Changes in Net Investment Assets
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<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------
1998 1997
------------- -------------
<S> <C> <C>
Increase in Net Investment Assets
Operations:
Net investment income ......................................... $ 10,239,315 $ 10,185,612
Net change in unrealized appreciation on investments .......... 805,116 4,566,620
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Net increase in net investment assets resulting from operations 11,044,431 14,752,232
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Dividends:
To common shareholders from net investment income ............. (7,510,220) (7,510,256)
To preferred shareholders from net investment income .......... (2,108,430) (2,292,150)
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Total dividends ............................................. (9,618,650) (9,802,406)
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Total increase ............................................ 1,425,781 4,949,826
Net Investment Assets
Beginning of year ................................................. 208,343,419 203,393,593
------------- -------------
End of year ....................................................... $ 209,769,200 $ 208,343,419
============= =============
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
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The BlackRock Florida Insured Municipal 2008 Term Trust
Financial Highlights
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<TABLE>
<CAPTION>
Year Ended December 31,
-----------------------------------------------------------------------
1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of the year .................. $ 16.35 $ 15.78 $ 16.04 $ 13.93 $ 16.13
----------- ----------- ----------- ----------- -----------
Net investment income ................................. 1.18 1.17 1.16 1.15 1.15
Net realized and unrealized gain (loss) on investments 0.08 0.52 (0.31) 2.10 (2.27)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) from investment operations ...... 1.26 1.69 0.85 3.25 (1.12)
----------- ----------- ----------- ----------- -----------
Dividends from net investment income to:
Preferred shareholders ................................ (0.24) (0.26) (0.25) (0.28) (0.22)
Common shareholders ................................... (0.86) (0.86) (0.86) (0.86) (0.86)
Distributions in excess of net realized
gain on investments to:
Preferred shareholders ................................ -- -- -- * --
Common shareholders ................................... -- -- -- * --
----------- ----------- ----------- ----------- -----------
Total dividends and distributions ....................... (1.10) (1.12) (1.11) (1.14) (1.08)
----------- ----------- ----------- ----------- -----------
Net asset value, end of year** .......................... $ 16.51 $ 16.35 $ 15.78 $ 16.04 $ 13.93
=========== =========== =========== =========== ===========
Market value, end of year** ............................. $ 16.81 $ 16.06 $ 15.13 $ 15.00 $ 12.13
=========== =========== =========== =========== ===========
TOTAL INVESTMENT RETURN+ ................................ 10.32% 12.25% 6.88% 31.26% (13.27%)
=========== =========== =========== =========== ===========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:++
Expenses ................................................ 0.93% 0.97% 1.02% 1.02% 1.09%
Net investment income before preferred stock dividends .. 7.17% 7.33% 7.26% 7.55% 7.86%
Preferred stock dividends ............................... 1.48% 1.65% 1.54% 1.84% 1.48%
Net investment income available to common shareholders .. 5.69% 5.68% 5.72% 5.71% 6.38%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands) $ 142,817 $ 138,890 $ 138,644 $ 133,042 $ 127,640
Portfolio turnover 0% 0% 1% 11% 30%
Net assets of common shareholders, end of year
(in thousands) ...................................... $ 143,769 $ 142,343 $ 137,394 $ 139,628 $ 121,268
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# $ 79,458 $ 78,918 $ 77,043 $ 77,889 $ 141,870
</TABLE>
- ----------
* Actual amount paid to preferred shareholders was $0.00344 per common share
for the fiscal year ended December 31, 1995. 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 year reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment
plan. Total investment return does not reflect brokerage commissions.
++ Ratios calculated on the basis of income and expenses applicable to both
the common and preferred shares, and preferred stock dividends, relative
to the average net assets of common shareholders.
The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the years indicated. This information
has been determined based upon financial information provided in the financial
statements and market value data for Trust's shares.
See Notes to Financial Statements.
9
<PAGE>
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The BlackRock Florida Insured
Municipal 2008 Term Trust
Notes to Financial Statements
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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 PNC
Bank, 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.
10
<PAGE>
Note 3. Portfolio Securities
There were no purchases and sales of investment securities, other than for
short-term investments, for the year ended December 31, 1998.
The federal income tax basis of the Trust's investments at December 31,
1998 was substantially the same as the basis for financial reporting, and
accordingly, gross and net unrealized appreciation for federal income tax
purposes was $19,303,451.
For federal income tax purposes, the Trust had a capital loss carryforward
at December 31, 1998 of $212,627 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, 1998, the
Adviser owned 7,093 shares. As of December 31, 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 0.90% to
4.15% during the year ended December 31, 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 December 31, 1998, the Board of Trustees of the Trust declared a
dividend from undistributed earnings of $0.07188 per common share payable
January 29, 1999 to shareholders of record on January 15, 1999.
For the period January 1, 1999 to January 31, 1999 dividends declared on
Preferred Stock totalled $158,158 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
- --------------------------------------------------------------------------------
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, of December 31, 1998, and the related statements of operations, and
of changes in net assets for each of the two years in the period then ended and
the financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at December
31, 1998, 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, 1998, 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 12, 1999
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, 1998) 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
reinvested by State Street Bank and Trust Company (the "Plan Agent") in Trust
shares pursuant to the Plan. Shareholders who do not participate in the Plan
will receive all distributions in cash paid by check in United States dollars
mailed directly to the shareholders of record (or if the shares are held in
street or other nominee name, then to the nominee) by the transfer agent, as
dividend disbursing agent.
The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the New York
Stock Exchange or elsewhere for the participants' accounts. The Trust will not
issue any new shares under the Plan.
Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment for any fraction of a Trust share.
The Plan Agent's fees for the handling of the reinvestment of dividends
and distributions will be paid by the Trust. However, each participant will pay
a pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any federal income tax that may be payable on
such dividends or distributions.
The Trust reserves the right to amend or terminate the Plan as applied to
any dividend or distribution paid subsequent to written notice of the change
sent to all shareholders of the Trust at least 90 days before the record date
for the dividend or distribution. The Plan also may be amended or terminated by
the Plan Agent upon at least 90 days' written notice to all shareholders of the
Trust. All correspondence concerning the Plan should be directed to the Plan
Agent at (800) 699-1BFM. The address is on the front of this report.
13
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THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
There have been no material changes in the Trust's investment objectives
or policies that have not been approved by the shareholders or to its charter or
by-laws or in the principal risk factors associated with investment in the
Trust. There have been no changes in the persons who are primarily responsible
for the day-to-day management of the Trust's portfolio.
Year 2000 Readiness Disclosure. The Trust is currently in the process of
evaluating its information technology infrastructure for Year 2000 compliance.
Substantially all of the Trust's information systems are supplied by the
Adviser. The Adviser has advised the Trust that it is currently evaluating
whether such systems are year 2000 compliant and that it expects to incur costs
of up to approximately five hundred thousand dollars to complete such evaluation
and to make any modifications to its systems as may be necessary to achieve Year
2000 compliance. The Adviser has advised the Trust that it has fully tested its
systems for Year 2000 compliance. The Trust may be required to bear a portion of
such cost incurred by the Adviser in this regard. The Adviser has advised the
Trust that it does not anticipate any material disruption in the operations of
the Trust as a result of any failure by the Adviser to achieve Year 2000
compliance. There can be no assurance that the costs will not exceed the amount
referred to above or that the Trust will not experience a disruption in
operations.
The Adviser has advised the Trust that it is in the process of evaluating
the Year 2000 compliance of various suppliers of the Adviser and the Trust. The
Adviser has advised the Trust that it intends to communicate with such suppliers
to determine their Year 2000 compliance status and the extent to which the
Adviser or the Trust could be affected by any supplier's Year 2000 compliance
issues. To date, however, the Adviser has not received responses from all such
suppliers with respect to their Year 2000 compliance, and there can be no
assurance that the systems of such suppliers, who are beyond the Trust's
control, will be Year 2000 compliant. In the event that any of the Trust's
significant suppliers do not successfully and timely achieve Year 2000
compliance, the Trust's business or operations could be adversely affected. The
Adviser has advised the Trust that it is in the process of preparing a
contingency plan for Year 2000 compliance by its suppliers. There can be no
assurance that such contingency plan will be successful in preventing a
disruption of the Trust's operations.
The Trust is designating this disclosure as its Year 2000 readiness
disclosure for all purposes under the Year 2000 Information and Readiness
Disclosure Act and the foregoing information shall constitute a Year 2000
statement for purposes of that Act.
14
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THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
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 $132
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 $24 billion family of open-end equity and bond funds.
Current institutional clients number 425, 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.
15
<PAGE>
How Are the Trust's Shares Purchased and Sold? Does the Trust Pay Dividends
Regularly?
The Trust's shares are traded on the New York Stock Exchange which provides
investors with liquidity on a daily basis. Orders to buy or sell shares of the
Trust must be placed through a registered broker or financial advisor. The Trust
pays monthly dividends which are typically paid on the last business day of the
month. For shares held in the shareholder's name, dividends may be reinvested in
additional shares of the Trust through the Trust's transfer agent, State Street
Bank and Trust Company. Investors who wish to hold shares in a brokerage account
should check with their financial advisor to determine whether their brokerage
firm offers dividend reinvestment services.
Leverage Considerations in a Term Trust
Under current market conditions, leverage increases the income earned by the
Trust. The Trust employs leverage primarily through the issuance of preferred
stock. Leverage permits the Trust to borrow money at short-term rates and
reinvest that money in longer-term assets which typically offer higher interest
rates. The difference between the cost of the borrowed funds and the income
earned on the proceeds that are invested in longer term assets is the benefit to
the Trust from leverage. In general, the portfolio is typically leveraged at
approximately 35% of total assets.
Leverage also increases the duration (or price volatility of the net assets) of
the Trust, which can improve the performance of the fund in a declining rate
environment, but can cause net assets to decline faster than the market in a
rapidly rising rate environment. BlackRock's portfolio managers continuously
monitor and regularly review the Trust's use of leverage and the Trust may
reduce, or unwind, the amount of leverage employed should BlackRock consider
that reduction to be in the best interests of the shareholders.
Special Considerations and Risk Factors Relevant to Term Trusts
The Trust is intended to be a long-term investment and is not a short-term
trading vehicle.
Return of Initial Investment. Although the objective of the Trust is to return
its initial offering price upon termination, there can be no assurance that this
objective will be achieved.
Dividend Considerations. The income and dividends paid by the Trust are likely
to decline to some extent over the term of the Trust due to the anticipated
shortening of the dollar-weighted average maturity of the Trust's assets.
Leverage. The Trust utilizes leverage through the issuance of preferred stock
which involves special risks. The Trust's net asset value and market value may
be more volatile due to its use of leverage.
Market Price of Shares. The shares of closed-end investment companies such as
the Trust trade on the New York Stock Exchange (NYSE symbol: BRF) and as such
are subject to supply and demand influences. As a result, shares may trade at a
discount or a premium to their net asset value.
Illiquid Securities. The Trust may invest in securities that are illiquid,
although under current market conditions the Trust expects to do so to only a
limited extent. Investing in these securities involves special risks.
Antitakeover Provisions. Certain antitakeover provisions will make a change in
the Trust's business or management more difficult without the approval of the
Trust's Board of Directors and may have the effect of depriving shareholders of
an opportunity to sell their shares at a premium above the prevailing market
price.
Municipal Obligations. Municipal obligations include debt obligations issued by
states, cities, and local authorities, and possessions and certain territories
of the United States to obtain funds for various public purposes, including the
construction of public facilities, the refinancing of outstanding obligations
and the obtaining of funds for general operating expenses and for loans to other
public institutions and facilities. The value of municipal debt securities
generally varies inversely with changes in prevailing market interest rates.
Depending on the amount of call protection that the securities in the Trust
have, the Trust may be subject to certain reinvestment risks in environments of
declining interest rates.
Alternative Minimum Tax (AMT). The Trust may invest in securities subject to
AMT. The Trust currently holds no securities that are subject to AMT.
16
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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.
17
<PAGE>
- --------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGEMENT, INC.
SUMMARY OF CLOSED-END FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Taxable Trusts
- ---------------------------------------------------------------------------------------------------
Maturity
Perpetual Trusts Stock Symbol Date
------------ --------
<S> <C> <C>
The BlackRock High Yield Trust Inc. BHY N/A
The BlackRock Income Trust Inc. BKT N/A
The BlackRock North American Government Income Trust Inc. BNA N/A
Term Trusts
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
<CAPTION>
Tax-Exempt Trusts
- ---------------------------------------------------------------------------------------------------
Maturity
Perpetual Trusts Stock Symbol Date
------------ --------
<S> <C> <C>
The BlackRock Investment Quality Municipal Trust Inc. BKN N/A
The BlackRock California Investment Quality Municipal Trust Inc. RAA N/A
The BlackRock Florida Investment Quality Municipal Trust RFA N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc. RNJ N/A
The BlackRock New York Investment Quality Municipal Trust Inc. RNY N/A
Term Trusts
The BlackRock Municipal Target Term Trust Inc. BMN 12/06
The BlackRock Insured Municipal 2008 Term Trust Inc. BRM 12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc. BFC 12/08
The BlackRock Florida Insured Municipal 2008 Term Trust BRF 12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc. BLN 12/08
</TABLE>
If you would like further information please do not hesitate to call BlackRock
at (800) 227-7BFM (7236) or consult with your financial advisor.
18
<PAGE>
- --------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGEMENT, INC.
AN OVERVIEW
- --------------------------------------------------------------------------------
BlackRock Financial Management, Inc. ("BlackRock") is an SEC-registered
investment adviser. BlackRock and its affiliates currently manage over $132
billion on behalf of taxable and tax-exempt clients worldwide. Strategies
include fixed income, equity and cash and may incorporate both domestic and
international securities. BlackRock manages twenty-one closed-end funds that are
traded on either the New York or American stock exchanges, and a $24 billion
family of open-end equity and bond funds. Current institutional clients number
425, domiciled in the United States and overseas.
BlackRock's fixed income product was introduced in 1988 by a team of
highly seasoned fixed income professionals. These professionals had extensive
experience creating, analyzing and trading a variety of fixed income
instruments, including the most complex structured securities. In fact, several
individuals at BlackRock were responsible for developing many of the major
innovations in the mortgage-backed and asset-backed securities markets,
including the creation of the first CMO, the floating rate CMO, the
senior/subordinated pass-through and the multi-class asset-backed security.
BlackRock is unique among asset management and advisory firms in the
emphasis it places on the development of proprietary analytical capabilities.
Over one quarter of the firm's professionals is dedicated to the design,
maintenance and use of these systems, which are not otherwise available to
investors. BlackRock's proprietary analytical tools are used for evaluating, and
designing fixed income investment strategies for client portfolios. Securities
purchased include mortgages, corporate bonds, municipal bonds and a variety of
hedging instruments.
BlackRock has developed investment products that respond to investors'
needs and has been responsible for several major innovations in closed-end
funds. In fact, BlackRock introduced the first closed-end mortgage fund, the
first taxable and tax-exempt closed-end funds to offer a finite term, the first
closed-end fund to achieve a AAA rating by Standard & Poor's, and the first
closed-end fund to invest primarily in North American Government securities.
Currently, BlackRock's closed-end funds have dividend reinvestment plans, which
are designed to provide ongoing demand for the stock in the secondary market.
BlackRock manages a wide range of investment vehicles, each having specific
investment objectives and policies.
In view of our continued desire to provide a high level of service to all
our shareholders, BlackRock maintains a toll-free number for your questions. The
number is (800) 227-7BFM (7236). We encourage you to call us with any questions
that you may have about your BlackRock funds and we thank you for the continued
trust that you place in our abilities.
If you would like further information
please do not hesitate to call BlackRock at (800) 227-7BFM
19
<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
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) 543-6217
09247H 10 6
[RECYCLED LOGO] Printed on recycled paper 09247H 30 7
