--------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
SEMI-ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISOR
--------------------------------------------------------------------------------
July 31, 2000
Dear Shareholder:
In the first half of the year, fears of an open-ended tightening policy by
the Federal Reserve peaked in May, which resulted in a subsequent relief in the
market as the U.S. economy seemed to decelerate significantly. During the
period, the Federal Reserve tightened short-term rates by 1.00% in an attempt to
engineer a "soft landing" for the U.S. economy. In the first six months of the
new millennium we have witnessed unprecedented volatility in both the Treasury
yield curve and the spread sectors. The Treasury curve inverted sharply in the
first quarter, but as weak economic data emerged in the second quarter, market
participants embraced an economic "soft landing" scenario causing the yield
curve to steepen. The downward revision in growth expectations allowed spread
sectors to rally in the month of June, but year-to-date their performance still
trails Treasuries.
While fears of a hawkish Federal Reserve and consequent risks of a
"hard-landing" may not materialize immediately, the risks are skewed in that
direction. A longer period of subdued financial market performance is necessary
to enable the labor markets to build up slack, which is an important
pre-condition for the Fed to achieve its goal.
This report contains a summary of market conditions during the semi-annual
period and a review of portfolio strategy by your Trust's managers in addition
to the Trust's unaudited financial statements and a detailed list of the
portfolio's holdings. Continued thanks for your confidence in BlackRock. We
appreciate the opportunity to help you achieve your long-term investment goals.
Sincerely,
/s/ Laurence D. Fink /s/ Ralph L. Schlosstein
Laurence D. Fink Ralph L. Schlosstein
Chairman President
1
<PAGE>
July 31, 2000
Dear Shareholder:
We are pleased to present the unaudited semi-annual report for The
BlackRock Florida Insured Municipal 2008 Term Trust ("the Trust") for the six
months ended June 30, 2000. 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 actively managed closed-end bond fund whose
shares are traded on the New York Stock Exchange under the symbol "BRF." The
Trust's investment objective is to manage a portfolio of municipal debt
securities that will return $15 per share (an amount equal to the Trust's
initial public offering price) to investors on or about December 31, 2008, while
providing high current income exempt from regular federal income tax and Florida
intangible personal property tax. The Trust seeks to achieve this objective by
investing in high credit quality ("AAA" or insured to "AAA") Florida tax-exempt
general obligation and revenue bonds issued by city, county and state
municipalities.
The table below summarizes the changes in the Trust's stock price and NAV
over the past six months:
-------------------------------------------------------
6/30/00 12/31/99 CHANGE HIGH LOW
--------------------------------------------------------------------------------
STOCK PRICE $15.00 $14.125 6.19% $15.00 $13.6875
--------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $15.45 $15.56 (0.71)% $15.56 $15.10
--------------------------------------------------------------------------------
THE FIXED INCOME MARKETS
The dynamic expansion of the U.S. economy continues undaunted by Federal
Reserve Chairman Greenspan's attempt to brake the economy, short of stalling it
into a recession. The labor markets remain tight, growth remains strong with 5%+
annualized growth rates and inflation pressures continue to be offset by
increased productivity. However, the Fed remains cautious, in their February
minutes it was noted that: "Other members acknowledged that the Committee might
need to move more aggressively at a later meeting should imbalances continue to
build and inflation expectations clearly begin to pick up." At the Federal
Reserve meeting in November, February and March the Fed raised the discount rate
by 0.25% at each meeting and a 0.50% increase was made in May to bring the
current discount rate to 6.50%.
The Treasury Yield curve experienced a complex set of dynamics, which has
inverted the curve and may continue to invert the curve for the foreseeable
future. The yields on the short-end of the curve increased sharply during the
period in response to three Federal Reserve increases to the discount rate and
perceived future Fed actions in the coming months. The long-end of the curve is
reacting to the "official" announcement that the Treasury will buy back $30
billion of Treasuries with maturities ranging from 10 to 30 years. With a
decreasing supply of available Treasuries, a balanced budget, and an unchanged
demand for longer maturity Treasuries, we would anticipate this condition to
continue. This condition is further augmented by Treasury auction activity, as
they reduce the available bonds on the long end of the curve they continue to
add supply in the 1-10 year range through periodic auctions. For the semi-annual
period, the yield of the 10-year Treasury security decreased from 6.44% on
December 31, 1999 to 6.03% on June 30, 2000.
Municipal bonds outperformed the taxable domestic bond market during the
past six months, returning 4.49% (as measured by the Lehman Municipal Index)
versus the Lehman Aggregate Index's 3.98% on a pre-tax basis. Overall, the tone
2
<PAGE>
in the market during the period was extremely positive as the result of
continued strong demand from individual/retail investors coupled with a slowdown
in new issuance. During 1999, households increased their holdings of individual
municipal bonds by over $40 billion while mutual funds saw net outflows.
Offsetting the large amount of mutual fund outflows during the first quarter of
2000 was a 22% decline in overall new municipal bond issuance YTD for the same
period, led by a 68% drop in refunding volume. Refunding volume was down due to
the relatively higher interest rates experienced during the first half of 2000
when compared to the first half of 1999, while new money issuance has declined
because the strong economy has led to full coffers at most municipalities.
The State of Florida's strong and stable financial position reflects
prudent financial management combined with a solid and diversifying economy. The
FY 1999 unreserved General Fund balance was $3.5 billion or 20.5% of revenues;
this provides strong bondholder security. FY 2000 revenues are 2.1% above
budget, to date, enabling the State to project another year-end surplus. The
State's policy is to maintain a moderate debt burden while continuing to use
bonds to meet capital needs.
In the last decade Florida's population increased 20% (versus 8% for the
nation) to over 15 million residents. Although economists anticipate slower
growth in the millennium, the population expansion is expected to exceed that of
the nation. Unemployment is expected to average 3.9% in 2000, the same as last
year. Trade and services are the major employment sectors while manufacturing
jobs account for only 7.5% of Florida's employment, approximately one half the
national proportion. The construction industry has declined in importance as the
State's economy diversifies. Florida's stable economy combined with rapid
population growth continues to fuel one of the country's strongest job markets
THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY
The Trust's portfolio is actively managed to diversify exposure to various
sectors, issuers, revenue sources and security types. BlackRock's investment
strategy emphasizes a relative value approach, which allows the Trust to
capitalize upon changing market conditions by rotating municipal sectors and
coupons. Additionally, the Trust emphasizes securities whose maturity dates
match the termination date of the Trust.
Over the period, trading activity in the Trust remained relatively low, as
many of the securities in the Trust's portfolio continued to trade at prices
above current cost. As trading activity that results in the Trust realizing a
capital gain could require a taxable distribution, we continue to believe that
waiting to restructure the portfolio in a higher interest rate environment is
the most prudent portfolio management strategy. We reduced positions in Water &
Sewer Bonds and added a position in Education Bonds. At present, we are
confident that the Trust is on schedule to achieve its primary investment
objective of returning $15 per share upon termination and will continue to seek
investment opportunities in the municipal market.
During the period the Trust issued $18,150,000 in additional preferred
shares. 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. As of June 30,
2000, the Trust's leverage amount was 38% of total assets.
The Board of Directors of the BlackRock Florida Insured Municipal 2008 Term
Trust voted to adjust the Trust's monthly dividend effective with the July
dividend payable on August 1, 2000. The dividend reduction was determined after
careful evaluation of the current and anticipated level of the Trust's net
investment income, particularly the reduction in income associated with the
increased cost of borrowing as a result of successive Federal Reserve rate
increases. The new monthly dividend is $0.0625 ($0.75 annualized), down from the
current monthly dividend of $0.07188 ($0.8626 annualized).
3
<PAGE>
The following chart compares the Trust's current and December 31, 1999
asset composition:
--------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
--------------------------------------------------------------------------------
SECTOR JUNE 30, 2000 DECEMBER 31, 1999
--------------------------------------------------------------------------------
Education 24% 21%
--------------------------------------------------------------------------------
Tax Revenue 17% 18%
--------------------------------------------------------------------------------
Water &Sewer 16% 18%
--------------------------------------------------------------------------------
Transportation 13% 14%
--------------------------------------------------------------------------------
Hospital 11% 12%
--------------------------------------------------------------------------------
County, City & State 9% 6%
--------------------------------------------------------------------------------
Utility/Power 5% 5%
--------------------------------------------------------------------------------
Resource Recovery 3% 4%
--------------------------------------------------------------------------------
Lease Revenue 1% 1%
--------------------------------------------------------------------------------
Housing 1% 1%
--------------------------------------------------------------------------------
We look forward to managing the Trust to benefit from the opportunities
available in the fixed income markets and to meet its investment objectives. We
thank you for your investment in the BlackRock Florida Insured Municipal 2008
Term Trust. Please feel free to contact our marketing center at (800) 227-7BFM
(7236) if you have specific questions which were not addressed in this report.
Sincerely,
/s/ Robert S. Kapito /s/ Kevin M. Klingert
Robert S. Kapito Kevin M. Klingert
Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager
BlackRock Advisors, Inc. BlackRock Advisors, Inc.
--------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BRF
--------------------------------------------------------------------------------
Initial Offering Date: September 18, 1992
--------------------------------------------------------------------------------
Closing Stock Price as of 6/30/00: $15.00
--------------------------------------------------------------------------------
Net Asset Value as of 6/30/00: $15.45
--------------------------------------------------------------------------------
Yield on Closing Stock Price as of 6/30/00 ($15.00)(1): 5.00%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share(2): $0.0625
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share(2): $0.7500
--------------------------------------------------------------------------------
----------
(1) Yield on Closing Stock Price is calculated by dividing the current
annualized distribution per share by the closing stock price per share.
(2) Dividend is not constant and is subject to change.
4
<PAGE>
--------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
PORTFOLIO OF INVESTMENTS JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LONG-TERM INVESTMENTS--159.4%
FLORIDA--158.2%
AAA $ 1,500 Altamonte Springs Wtr. & Swr. Sys. Rev., 6.00%, 10/01/08, FGIC ................... 10/02 @ 102 $ 1,566,870
AAA 10,000++ Brevard Cnty. Sch. Brd., C.O.P., Ser. A, 6.375%, 7/01/02, AMBAC .................. N/A 10,519,800
Canaveral Port Auth. Impvt. Rev., FGIC,
AAA 2,980 6.00%, 6/01/07 ................................................................ 6/02 @ 102 3,097,472
AAA 3,155 6.00%, 6/01/08 ................................................................ 6/02 @ 102 3,284,670
AAA 1,000 Dade Cnty. Aviation Rev., Ser. A, 6.00%, 10/01/08, AMBAC ......................... 10/05 @ 102 1,058,750
Dade Cnty. G.O.,
AAA 5,000 Ser. A, Zero Coupon, 2/01/08, MBIA ............................................ 2/06 @ 92.852 3,336,650
AAA 905 Ser. B, Zero Coupon, 10/01/08, AMBAC .......................................... ETM 586,802
AAA 1,095 Ser. B, Zero Coupon, 10/01/08, AMBAC .......................................... No Opt. Call 712,637
AAA 5,465++ Dade Cnty. Sch. Brd., C.O.P., Ser. A, 5.75%, 5/01/04, MBIA ....................... N/A 5,706,881
AAA 2,500++ Dade Cnty. Sch. Dist. Rev., 6.125%, 8/01/01, FGIC ................................ N/A 2,546,300
AAA 2,500 Daytona Beach Wtr. & Swr. Rev., 6.00%, 11/15/09, AMBAC ........................... 11/02 @ 102 2,606,675
Duval Cnty. Sch. Dist. G.O., AMBAC,
AAA 3,015 6.30%, 8/01/06 ................................................................ 8/02 @ 102 3,153,961
AAA 9,000 6.30%, 8/01/07 ................................................................ 8/02 @ 102 9,403,920
Escambia Cnty. Utils. Auth. Sys. Rev., FGIC,
AAA 2,450++ Ser. A, 6.10%, 1/01/03 ........................................................ N/A 2,574,411
AAA 1,595 Ser. B, 6.125%, 1/01/09 ....................................................... No Opt. Call 1,717,002
AAA 4,190 Florida St. Brd. Ed. Lottery Rev., Ser. A, 5.00%, 7/01/08, FGIC .................. No Opt. Call 4,198,422
AAA 8,255 Florida St. Brd. of Ed. Wtr. & Swr., Pub. Ed., 6.125%, 6/01/08, FGIC ............. 6/02 @ 1018,5 37,238
AAA 8,000 Florida St. Div. Bd. Fin. Dept. Genl. Svcs. Revs. Dept. Envrnmtl-Presvtn, 2000-B,
5.25%, 7/01/10, FSA ........................................................... 7/08 @ 101 8,098,640
Florida St. Div. Bd. Fin. Dept. Rev., Nat. Res. & Pres., Ser. 2000-A,
AAA 2,000 5.00%, 7/01/11, AMBAC ......................................................... 7/07 @ 101 1,977,500
AAA 14,500++ 6.25%, 7/01/02, MBIA .......................................................... N/A 15,087,105
AAA 2,500++ 6.75%, 7/01/01, AMBAC ......................................................... N/A 2,605,700
AAA 3,000 Greater Orlando Aviation Auth., Arpt. Fac. Rev., Ser. D, 6.20%, 10/01/08, AMBAC 10/02 @ 102 3,152,880
Hillsborough Cnty. Cap. Impvt., FGIC,
AAA 2,630++ 6.25%, 8/01/04 ................................................................ N/A 2,800,056
AAA 1,500++ 6.60%, 8/01/04 ................................................................ N/A 1,616,220
AAA 5,000++ Hillsborough Cnty. Sch. Brd., C.O.P., 5.875%, 7/01/04, MBIA N/A 5,292,500
AAA 10,000 Hillsborough Cnty. Tampa Intl. Arpt Aviation Rev., Ser. A, 5.75%,
10/01/11, AMBAC ............................................................... 10/00 @ 103 10,208,700
Indian Trace Cmnty. Dev. Dist., Wtr. Mgmt. Spec. Benefit, Ser. A, MBIA,
AAA 3,000 5.625%, 5/01/08 ............................................................... 5/05 @ 102 3,112,020
AAA 2,910 5.75%, 5/01/09 ................................................................ 5/05 @ 102 3,007,165
AAA 4,000 Jacksonville Elec. Auth. Rev., 5.75%, 10/01/12, AMBAC ............................ 10/02 @ 102 4,106,280
AAA 5,000 Jacksonville, G.O., Ser. A, 5.50%, 10/01/12, AMBAC ............................... 10/02 @ 102 5,064,850
AAA 2,000 Lakeland Elec. & Wtr. Rev., Jr. Sub Lien, 5.90%, 10/01/08, FSA ................... No Opt. Call 2,124,560
AAA 9,850++ Lakeland Hosp. Sys. Rev., Regl. Med. Care Ctr. Proj., Ser. B, 6.10%,
11/15/02, FGIC ................................................................ N/A 10,357,472
AAA 1,100 Lakeland Wastewtr. Impvt. Rev., 5.50%, 10/01/08, MBIA ............................ 10/02 @ 102 1,127,731
AAA 4,500 Lee Cnty. Arpt. Rev., Ser. A, 5.50%, 10/01/10, AMBAC ............................. 10/02 @ 100 4,540,050
AAA 1,000++ Marion Cnty. Hosp. Dist. Rev., Munroe Regl. Med. Ctr., 6.20%, 10/01/02, FGIC ..... N/A 1,052,050
AAA 3,750 Melbourne Wtr. & Swr. Rev., Ser. C, 6.25%, 10/01/08, FGIC ........................ 10/02 @ 102 3,940,912
AAA 11,000 Miami Beach Hlth. Fac. Auth. Hosp. Rev., Mt. Sinai Med. Ctr. Proj.,
6.25%, 11/15/08, FSA .......................................................... 11/02 @ 102 11,552,640
AAA 2,000 Miami Dade Cnty. Edl. Fac. Rev., Ser. A, 4.875%, 4/01/09, AMBAC .................. No Opt. Call 1,978,440
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AAA $ 4,775 Miami Dade Cnty. Sch. Brd., C.O.P, Ser. C, 5.25%, 8/01/11, FSA ................. 8/08 @ 101 $ 4,809,714
Miami, G.O., FGIC,
AAA 1,345 5.90%, 12/0
.... N/A 3,254,845
AAA 7,085 Pasco Cnty. Solid Waste Disp. & Res. Rec. Sys. Rev., 6.00%,
4/01/09, FGIC ............................................................... 4/02 @ 10 27,293,937
AAA 11,000 Pasco Cnty. Wtr. & Swr. Rev., Ser. A, 6.00%, 10/01/09, FGIC .................... 10/02 @ 102 11,362,340
AAA 1,000++ Seminole Cnty. Sch. Brd., C.O.P., Ser. A, 5.90%, 7/01/04, MBIA ................. N/A 1,059,400
AAA 2,000 Seminole Cnty. Wtr. & Swr. Rev., 6.00%, 10/01/09, MBIA ......................... No Opt. Call 2,142,300
Tampa Wtr. & Swr. Rev., Ser. A, FGIC,
AAA 1,405++ 6.25%, 10/01/02 ............................................................. N/A 1,466,905
AAA 1,095 6.25%, 10/01/12 ............................................................. 10/02 @ 101 1,135,679
AAA 1,370 Village Ctr. Cmnty. Dev. Dist. Rec. Rev., Ser. A, 5.50%,
11/01/08, MBIA .............................................................. No Opt. Call 1,419,060
AAA 4,065 Volusia Cnty. Edl. Fac. Auth. Rev., Embry-Riddle Aeronautical Univ.,
6.50%, 10/15/08, CONNIE LEE ................................................. 10/02 @ 102 4,295,729
------------
212,864,955
------------
PUERTO RICO--1.2%
AAA 1,500 Puerto Rico Mun. Fin. Agcy., Ser. A, 5.625%, 8/01/10, FSA ...................... 8/09 @ 101 1,591,050
------------
TOTAL LONG-TERM INVESTMENTS (COST $204,452,552) ................................ 214,456,005
------------
SHORT-TERM INVESTMENTS**--1.2%
FLORIDA--0.2%
A-1 300 Collier Cnty. Hlth. Fac. Auth. Hosp. Rev., Cleveland Clinic Hlth.
Sys., 4.55%, 7/03/00, FRDD .................................................. N/A 300,000
NEW YORK--0.6%
A-1+ 800 Long Island Pwr. Auth. Elec. Sys. Rev., 4.40%, 7/03/00, FRDD ................... N/A 800,000
NORTH CAROLINA--0.4%
A-1 500 Wake Cnty. Indl. Fac. & Poll Ctl. Fin. Auth. Rev.,
Carolina P&L Co. Proj., 4.45%, 7/03/00, FRDD ................................ N/A 500,000
TEXAS
A-1+ 95 Harris Cnty. Hlth. Fac. Dev. Corp. Rev., St. Lukes Episcopal Hosp.,
Ser. A, 4.55%, 7/03/00, FRDD ................................................ N/A 95,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $1,695,000) ................................. 1,695,000
------------
TOTAL INVESTMENTS--160.6% (COST $206,147,552) .................................. 216,151,005
Other assets in excess of liabilities--1.9% .................................... 2,562,413
Liquidation value of preferred stock--(62.5)% .................................. (84,150,000)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ............................. $134,563,418
============
</TABLE>
----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
** For purposes of amortized cost valuation, the maturity date of these
instruments is considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
+ Option call provisions: date (month/year) and price of the earliest optional
call or redemption. There may be other call provisions at varying prices at
later dates.
++ This bond is prerefunded. See glossary for definition.
----------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
THE FOLLOWING ABBREVIATIONS ARE USED IN PORTFOLIO DESCRIPTIONS:
<S> <C>
AMBAC -- American Municipal Bond Assurance Corporation FRDD -- Floating Rate Daily Demand**
C.O.P. -- Certificate of Participation FSA -- Financial Security Assurance
CONNIE LEE -- College Construction Loan Insurance Association G.O. -- General Obligation
ETM -- Escrowed to Maturity MBIA -- Municipal Bond Insurance Association
FGIC -- Financial Guaranty Insurance Company P.C.R. -- Pollution Control Revenue
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
--------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $206,147,552)
(Note 1) .................................................... $216,151,005
Interest receivable ........................................... 3,592,078
Other assets .................................................. 12,116
------------
219,755,199
------------
LIABILITIES
Dividends payable--common stock ............................... 625,866
Offering costs payable--preferred stock ....................... 244,477
Investment advisory fee payable (Note 2) ...................... 62,857
Administration fee payable (Note 2) ........................... 17,959
Dividends payable--preferred stock ............................ 10,031
Due to custodian .............................................. 4,575
Other accrued expenses ........................................ 76,016
------------
1,041,781
------------
NET INVESTMENT ASSETS ......................................... $218,713,418
============
Net investment assets were comprised of:
Common shares of beneficial interest:
Par value (Note 4) ........................................ $ 87,071
Paid-in capital in excess of par .......................... 120,421,190
Preferred shares of beneficial interest
(Note 4) .................................................. 84,150,000
------------
204,658,261
Undistributed net investment income ......................... 4,192,984
Accumulated net realized loss ............................... (141,280)
Net unrealized appreciation ................................. 10,003,453
------------
Net investment assets, June 30, 2000 ........................ $218,713,418
============
Net assets applicable to common
shareholders .............................................. $134,563,418
============
Net asset value per common share of
beneficial interest: ($134,563,418 / 8,707,093
common shares of beneficial interest issued
and outstanding) ............................................ $ 15.45
============
--------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest and discount earned ................................ $ 6,055,087
------------
Expenses
Investment advisory ......................................... 369,651
Administration .............................................. 105,615
Auction agent ............................................... 103,000
Reports to shareholders ..................................... 50,500
Custodian ................................................... 36,500
Legal ....................................................... 24,000
Independent accountants ..................................... 17,500
Trustees .................................................... 17,000
Transfer agent .............................................. 11,000
Registration ................................................ 8,000
Miscellaneous ............................................... 30,900
------------
Total expenses .......................................... 773,666
------------
Net investment income ......................................... 5,281,421
------------
UNREALIZED LOSS ON INVESTMENTS
Net change in unrealized appreciation
on investments .............................................. (360,842)
------------
NET INCREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS .............................. $ 4,920,579
============
See Notes to Financial Statements.
7
<PAGE>
--------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS (UNAUDITED)
--------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
2000 1999
------------- -------------
INCREASE (DECREASE) IN NET INVESTMENT ASSETS
OPERATIONS:
Net investment income .................... $ 5,281,421 $ 10,170,634
Net realized gain on investments ......... -- 71,347
Net change in unrealized appreciation
on investments ....................... (360,842) (8,939,156)
------------- -------------
Net increase in net investment assets
resulting from operations ............ 4,920,579 1,302,825
------------- -------------
DIVIDENDS:
To common shareholders from net
investment income .................... (3,755,081) (7,510,202)
To preferred shareholders from net
investment income ................... (1,575,181) (2,102,431)
------------- -------------
Total dividends ....................... (5,330,262) (9,612,633)
------------- -------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from additional issuance
of preferred shares .................. 17,663,709 --
------------- -------------
Total increase (decrease) ............. 17,254,026 (8,309,808)
------------- -------------
NET INVESTMENT ASSETS
Beginning of period .......................... 201,459,392 209,769,200
------------- -------------
End of period (including undistributed
net investment income of $4,192,984
and $4,241,825, respectively) ........... $ 218,713,418 $ 201,459,392
============= =============
See Notes to Financial Statements.
8
<PAGE>
--------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, --------------------------------------------------------_
2000 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER COMMON SHARE
OPERATING PERFORMANCE:
Net asset value, beginning of the period ................... $ 15.56 $ 16.51 $ 16.35 $ 15.78 $ 16.04 $ 13.93
-------- -------- -------- -------- -------- --------
Net investment income ................................... .61 1.17 1.18 1.17 1.16 1.15
Net realized and unrealized gain (loss)
on investments ........................................ (.05) (1.02) .08 .52 (.31) 2.10
-------- -------- -------- -------- -------- --------
Net increase (decrease) from investment operations ......... .56 .15 1.26 1.69 .85 3.25
-------- -------- -------- -------- -------- --------
Dividends and distributions:
Dividends from net investment income to:
Common shareholders .................................. (.43) (.86) (.86) (.86) (.86) (.86)
Preferred shareholders ............................... (.18) (.24) (.24) (.26) (.25) (.28)
Distributions from net realized gain on investments to:
Common shareholders .................................. -- -- -- -- -- **
Preferred shareholders ............................... -- -- -- -- -- **
-------- -------- -------- -------- -------- --------
Total dividends and distributions .......................... (.61) (1.10) (1.10) (1.12) (1.11) (1.14)
-------- -------- -------- -------- -------- --------
Capital charge with respect to
issuance of preferred shares ............................. (.06) -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net asset value, end of period* ............................ $ 15.45 $ 15.56 $ 16.51 $ 16.35 $ 15.78 $ 16.04
======== ======== ======== ======== ======== ========
Market value, end of period* ............................... $ 15.00 $ 14.13 $ 16.81 $ 16.06 $ 15.13 $ 15.00
======== ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN+ ................................... 9.45% (11.12)% 10.32% 12.25% 6.88% 31.26%
======== ======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:
Expenses++ ................................................. 1.15%+++ .99% .93% .97% 1.02% 1.02%
Net investment income before preferred stock dividends++ ... 7.92%+++ 7.25% 7.17% 7.33% 7.26% 7.55%
Preferred stock dividends .................................. 2.36%+++ 1.50% 1.48% 1.65% 1.54% 1.84%
Net investment income available to common shareholders ..... 5.56%+++ 5.75% 5.69% 5.68% 5.72% 5.71%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands) ... $134,060 $140,225 $142,817 $138,890 $138,644 $133,042
Portfolio turnover ......................................... 0% 3% 0% 0% 1% 11%
Net assets of common shareholders, end of period
(in thousands) ........................................... $134,563 $135,459 $143,769 $142,343 $137,394 $139,628
Preferred stock outstanding (in thousands) ................. $ 84,150 $ 66,000 $ 66,000 $ 66,000 $ 66,000 $ 66,000
Asset coverage per share of preferred stock,
end of period ............................................ $ 64,980 $ 76,312 $ 79,460 $ 78,939 $ 77,046 $ 77,890
</TABLE>
----------
* Net asset value and market value are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
** 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.
+ Total investment return is calculated assuming a purchase of common stock
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends and
distributions, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Total
investment returns for periods less than one full year are not annualized.
++ Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
common shareholders.
+++ Annualized
The information above represents the unaudited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the periods indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for Trust's common shares.
See Notes to Financial Statements.
9
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--------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
NOTE 1. ORGANIZATION & ACCOUNTING POLICIES
The BlackRock Florida Insured Municipal 2008 Term Trust (the "Trust") was
organized in Massachusetts on August 7, 1992 as a non-diversified closed-end
management investment company. The Trust's investment objective is to manage a
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 dealers or pricing services approved by the Trustees. In determining
the value of a particular security, pricing services may use certain information
with respect to transactions in such securities, quotations from bond dealers,
market transactions in comparable securities and various relationships between
securities in determining values. Short-term securities are valued at amortized
cost. 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 Trustees.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis and the Trust amortizes premium and accretes orignal 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 accounting
principles generally accepted in the United States of America 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.
DEFERRED COMPENSATION PLAN: Under a deferred compensation plan approved by the
Board of Trustees on February 24, 2000, non-interested Trustees may elect to
defer receipt of all or a portion of their annual compensation.
Deferred amounts earn a return as though equivalent dollar amounts had been
invested in common shares of other BlackRock funds selected by the Trustees.
This has the same economic effect as if the Trustees had invested the deferred
amounts in such other BlackRock funds.
The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of the Trust. The
Trust may, however, elect to invest in common shares of those funds selected by
the Trustees in order to match its deferred compensation obligations.
NOTE 2. AGREEMENTS
The Trust has an Investment Advisory Agreement with BlackRock Advisors, Inc.,
(the "Advisor"), which is a wholly-owned subsidiary of BlackRock, Inc., which in
turn is an indirect majority-owned subsidiary of PNC Financial Services Group,
Inc. The Trust has an Administration Agreement with Princeton Administrators,
L.P. (the "Administrator"), an indirect wholly-owned affiliate of Merrill Lynch
& Co., Inc.
The investment advisory fee paid to the Advisor is computed weekly and
payable monthly at an annual rate of 0.35% of the Trust's average weekly net
investment assets. The administration fee paid to the Administrator is also
computed weekly and payable monthly at an annual rate of 0.10% of the Trust's
average weekly net investment assets.
Pursuant to the agreements, the Advisor provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Advisor. The Administrator pays occupancy and
certain
10
<PAGE>
clerical and accounting costs of the Trust. The Trust bears all other costs and
expenses.
NOTE 3. PORTFOLIO SECURITIES
Purchases of investment se- curities, other than short term investments, for the
six months ended June 30, 2000 aggregated $16,950,238. There were no sales,
other than short-term investments, during the six months ended June 30, 2000.
The Federal income tax basis of the Trust's investments at June 30, 2000
was the same as the basis for financial reporting, and accordingly, net
unrealized appreciation was $10,003,453 (gross unrealized
appreciation--$10,019,492, gross unrealized depreciation--$16,039).
For Federal income tax purposes, the Trust had a capital loss carryforward
at December 31, 1999 of approximately $141,000 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. The Trust may classify or reclassify any unissued common shares of
beneficial interest into one or more series of preferred shares. Of the
8,707,093 common shares outstanding at June 30, 2000, the Advisor owned 7,093
shares. As of June 30, 2000, there were 3,366 Series R7 preferred shares
outstanding, which includes 726 shares issued on March 10, 2000.
On March 10, 2000, the Trust reclassified 726 shares of common stock and
issued an additional 726 shares of Series R7 preferred shares. The additional
shares issued have identical rights and features of the existing Series R7
preferred shares. Estimated offering costs of $304,791 and underwriting discount
of $181,500 have been charged to paid-in capital in excess of par of the common
shares.
Dividends on Series R7 are cumulative at a rate which is reset every 7 days
based on the results of an auction. Dividend rates ranged from 2.50% to 5.05%
during the period ended June 30, 2000.
The Trust may not declare dividends or make other distributions to common
shares or purchase any such shares if, at the time of the declaration,
distribution or purchase, asset coverage with respect to the outstanding
Preferred Shares would be less than 200%.
The Preferred Shares are 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 Shares are 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
Declaration of Trust are not satisfied.
The holders of Preferred Shares have voting rights equal to the holders of
common stock (one vote per share) and will vote together with holders of common
shares as a single class. However, holders of Preferred Shares 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 shareholders 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 Shares, 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
On June 30, 2000, the Board of Trustees of the Trust declared a dividend from
undistributed earnings of $0.0625 per common share payable August 1, 2000 to
shareholders of record on July 14, 2000.
For the period July 1, 2000 to July 31, 2000 dividends declared on
Preferred Stock totalled $267,390 in aggregate for the outstanding Preferred
Stock series.
11
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--------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
DIVIDEND REINVESTMENT PLAN
--------------------------------------------------------------------------------
Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders may elect to have all distributions of dividends and capital gains
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.
12
<PAGE>
--------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
ADDITIONAL INFORMATION
--------------------------------------------------------------------------------
ANNUAL MEETING OF TRUST SHAREHOLDERS. 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.
The Annual Meeting of Trust Shareholders was held May 18, 2000 to vote on
the following matters:
(1) To elect two Trustees as follows:
DIRECTORS CLASS TERM EXPIRING
------- ----- ----- -------
Richard E. Cavanagh. ................ I 3 years 2003
James Clayburn La Force, Jr. ........ I 3 years 2003
Directors whose term of office continues beyond this meeting are
Andrew F. Brimmer, Kent Dixon, Frank J. Fabozzi, Laurence D. Fink,
Walter F. Mondale and Ralph L. Schlosstein.
(2) To ratify the selection of Deloitte & Touche LLP as independent public
accountants of the Trust for the fiscal year ending December 31, 2000.
Shareholders elected the two Trustees and ratified the selection of Deloitte &
Touche LLP. The results for the voting was as follows.
VOTES FOR* VOTES AGAINST* ABSTENTIONS*
-------- ----------- ----------
Richard E. Cavanagh ............. 2,571 -- 3
James Clayburn La Force, Jr. .... 7,361,814 -- 78,135
Ratification of
Deloitte & Touche LLP ......... 7,366,283 34,652 39,014
----------
* The votes represent common and preferred Shareholders voting as a single
class except for the election of Richard E. Cavanagh who was elected by
preferred shareholders.
13
<PAGE>
--------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
INVESTMENT SUMMARY
--------------------------------------------------------------------------------
THE TRUST'S INVESTMENT OBJECTIVE
The BlackRock Florida Insured Municipal 2008 Term 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 Advisors, Inc. (the "Advisor") is an SEC-registered investment
advisor. As of June 30, 2000, the Advisor and its affiliates (together,
"BlackRock")managed $177 billion on behalf of taxable and tax-exempt clients
worldwide. Strategies include fixed income, equity and cash and may incorporate
both domestic and international securities. Domestic fixed income strategies
utilize the government, mortgage, corporate and municipal bond sectors.
BlackRock manages twenty-two closed-end funds that are traded on either the New
York or American stock exchanges, and a $28 billion family of open-end funds.
BlackRock manages over 629 accounts, domiciled in the United States and
overseas.
WHAT CAN THE TRUST INVEST IN?
The Trust intends to invest at least 80% of its total assets in Florida
municipal obligations insured as to the timely payment of both principal and
interest. The Trust may invest up to 20% of its total assets in uninsured
Florida municipal obligations which are rated Aaa by Moody's or AAA by S&P, or
are determined by the Advisor to be of comparable credit quality (guaranteed,
escrowed or backed in trust).
WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?
The Advisor will seek to meet the Trust's investment objective by managing the
assets of the Trust so as to return the initial offering price ($15 per share)
at maturity. The Advisor will implement a conservative strategy that will seek
to closely match the maturity of the assets of the portfolio with the future
return of the initial investment at the end of 2008. At the Trust's termination,
BlackRock expects that the value of the securities which have matured, combined
with the value of the securities that are sold, if any, will be sufficient to
return the initial offering price to investors. On a continuous basis, the Trust
will seek its objective by actively managing its portfolio of Florida municipal
obligations and retaining a small amount of income each year.
In addition to seeking the return of the initial offering price, the Advisor
also seeks to provide current income exempt from 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 to enhance the income of the
portfolio. In order to maintain competitive yields as the Trust approaches
maturity and depending on market conditions, the Advisor will attempt to
purchase securities with call protection or maturities as close to the Trust's
maturity date as possible. Securities with call protection should provide the
portfolio with some degree of protection against reinvestment risk during times
of lower prevailing interest rates. Since the Trust's primary goal is to return
the initial offering price at maturity, any cash that the Trust receives prior
to its maturity date will be reinvested in securities with maturities which
coincide with the remaining term of the Trust. Since shorter-term securities
typically yield less than longer-term securities, this strategy will likely
result in a decline in the Trust's income over time. It is important to note
that the Trust will be managed so as to preserve the integrity of the return of
the initial offering price. If market conditions, such as high interest rate
volatility, force a choice between current income and risking the return of the
initial offering price, it is likely that the return of the initial offering
price will be emphasized.
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<PAGE>
HOW ARE THE TRUST'S SHARES PURCHASED AND SOLD? DOES THE TRUST PAY DIVIDENDS
REGULARLY?
The Trust's shares are traded on the New York Stock Exchange which provides
investors with liquidity on a daily basis. Orders to buy or sell shares of the
Trust must be placed through a registered broker or financial advisor. The Trust
pays monthly dividends which are typically paid on the first business day of the
month. For shares held in the shareholder's name, dividends may be reinvested in
additional shares of the Trust through the Trust's transfer agent, State Street
Bank and Trust Company. Investors who wish to hold shares in a brokerage account
should check with their financial advisor to determine whether their brokerage
firm offers dividend reinvestment services.
LEVERAGE CONSIDERATIONS IN A TERM TRUST
Under current market conditions, leverage increases the income earned by the
Trust. The Trust employs leverage primarily through the issuance of preferred
stock. Leverage permits the Trust to borrow money at short-term rates and
reinvest that money in longer-term assets which typically offer higher interest
rates. The difference between the cost of the borrowed funds and the income
earned on the proceeds that are invested in longer term assets is the benefit to
the Trust from leverage.
Leverage also increases the duration (or price volatility of the net assets) of
the Trust, which can improve the performance of the Trust in a declining rate
environment, but can cause net assets to decline faster than the market in a
rapidly rising rate environment. The Advisor's portfolio managers continuously
monitor and regularly review the Trust's use of leverage and the Trust may
reduce, or unwind, the amount of leverage employed should the Advisor consider
that reduction to be in the best interests of the shareholders.
SPECIAL CONSIDERATIONS AND RISK FACTORS RELEVANT TO TERM TRUSTS
The Trust is intended to be a long-term investment and is not a short-term
trading vehicle.
RETURN OF INITIAL INVESTMENT. Although the objective of the Trust is to return
its initial offering price upon termination, there can be no assurance that this
objective will be achieved.
DIVIDEND CONSIDERATIONS. The income and dividends paid by the Trust are likely
to decline to some extent over the term of the Trust due to the anticipated
shortening of the dollar-weighted average maturity of the Trust's assets.
LEVERAGE. The Trust utilizes leverage through the issuance of preferred stock
which involves special risks. The Trust's net asset value and market value may
be more volatile due to its use of leverage.
MARKET PRICE OF SHARES. The shares of closed-end investment companies such as
the Trust trade on the New York Stock Exchange (NYSE symbol: 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
Trustees 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 on Saturday and THE WALL STREET
JOURNAL on Monday.
PREMIUM: When a fund's stock price is greater than its net asset
value, the fund is said to be trading at a premium.
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 ADVISORS, INC.
SUMMARY OF CLOSED-END FUNDS
--------------------------------------------------------------------------------
TAXABLE TRUSTS
--------------------------------------------------------------------------------
STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ --------
The BlackRock Income Trust Inc. BKT N/A
The BlackRock North American Government Income Trust Inc. BNA N/A
The BlackRock High Yield Trust BHY N/A
TERM TRUSTS
The BlackRock Target Term Trust Inc. BTT 12/00
The BlackRock 2001 Term Trust Inc. BTM 06/01
The BlackRock Strategic Term Trust Inc. BGT 12/02
The BlackRock Investment Quality Term Trust Inc. BQT 12/04
The BlackRock Advantage Term Trust Inc. BAT 12/05
The BlackRock Broad Investment Grade 2009 Term Trust Inc. BCT 12/09
TAX-EXEMPT TRUSTS
--------------------------------------------------------------------------------
STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ --------
The BlackRock Investment Quality Municipal Trust Inc. BKN N/A
The BlackRock California Investment Quality Municipal Trust Inc. RAA N/A
The BlackRock Florida Investment Quality Municipal Trust RFA N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc. RNJ N/A
The BlackRock New York Investment Quality Municipal Trust Inc. RNY N/A
The BlackRock Pennsylvania Strategic Municipal Trust BPS N/A
The BlackRock Strategic Municipal Trust Inc. BSD N/A
TERM TRUSTS
The BlackRock Municipal Target Term Trust Inc. BMN 12/06
The BlackRock Insured Municipal 2008 Term Trust Inc. BRM 12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc. BFC 12/08
The BlackRock Florida Insured Municipal 2008 Term Trust BRF 12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc. BLN 12/08
The BlackRock Insured Municipal Term Trust Inc. BMT 12/10
IF YOU WOULD LIKE FURTHER INFORMATION PLEASE CALL BLACKROCK AT (800)
227-7BFM (7236) OR CONSULT WITH YOUR FINANCIAL ADVISOR.
17
<PAGE>
--------------------------------------------------------------------------------
BLACKROCK ADVISORS, INC.
AN OVERVIEW
--------------------------------------------------------------------------------
BlackRock Advisors, Inc. (the "Advisor") is an SEC-registered investment
advisor. As of June 30, 2000, the Advisor and its affiliates (together,
"BlackRock") managed $177 billion on behalf of taxable and tax-exempt clients
worldwide. Strategies include fixed income, equity and cash and may incorporate
both domestic and international securities. BlackRock manages twenty-two
closed-end funds that are traded on either the New York or American stock
exchanges, and a $28 billion family of open-end funds. BlackRock manages over
629 accounts, domiciled in the United States and overseas.
BlackRock's fixed income product was introduced in 1988 by a team of
highly seasoned fixed income professionals. These professionals had extensive
experience creating, analyzing and trading a variety of fixed income
instruments, including the most complex structured securities. In fact, several
individuals at BlackRock were responsible for developing many of the major
innovations in the mortgage-backed and asset-backed securities markets,
including the creation of the first CMO, the floating rate CMO, the
senior/subordinated pass-through and the multi-class asset-backed security.
BlackRock is unique among asset management and advisory firms in the
emphasis it places on the development of proprietary analytical capabilities.
Over one quarter of the firm's professionals are dedicated to the design,
maintenance and use of these systems, which are not otherwise available to
investors. BlackRock's proprietary analytical tools are used for evaluating, and
designing fixed income investment strategies for client portfolios. Securities
purchased include mortgages, corporate bonds, municipal bonds and a variety of
hedging instruments.
BlackRock has developed investment products that respond to investors'
needs and has been responsible for several major innovations in closed-end
funds. In fact, BlackRock introduced the first closed-end mortgage fund, the
first taxable and tax-exempt closed-end funds to offer a finite term, the first
closed-end fund to achieve a AAA rating by Standard & Poor's, and the first
closed-end fund to invest primarily in North American Government securities.
Currently, BlackRock's closed-end funds have dividend reinvestment plans, which
are designed to provide ongoing demand for the stock in the secondary market.
BlackRock manages a wide range of investment vehicles, each having specific
investment objectives and policies.
In view of our continued desire to provide a high level of service to all
our shareholders, BlackRock maintains a toll-free number for your questions. The
number is (800) 227-7BFM (7236). We encourage you to call us with any questions
that you may have about your BlackRock funds and we thank you for the continued
trust that you place in our abilities.
If you would like further information
please do not hesitate to call BlackRock at (800) 227-7BFM
18
<PAGE>
---------
BlackRock
---------
TRUSTEES
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein
OFFICERS
Ralph L. Schlosstein, PRESIDENT
Keith T. Anderson, VICE PRESIDENT
Michael C. Huebsch, VICE PRESIDENT
Robert S. Kapito, VICE PRESIDENT
Kevin M. Klingert, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Karen H. Sabath, SECRETARY
INVESTMENT ADVISOR
BlackRock Advisors, Inc.
400 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM
ADMINISTRATOR
Princeton Administrators, L.P.
P.O. Box 9095
Princeton, NJ 08543-9095
(800) 543-6217
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM
AUCTION AGENT
Deutsche Bank
4 Albany Street
New York, NY 10006
INDEPENDENT AUDITORS
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036
LEGAL COUNSEL - INDEPENDENT TRUSTEES
Debevoise & Plimpton
875 Third Avenue
New York, NY 10022
The accompanying financial statements as of June 30, 2000 were not audited
and accordingly, no opinion is expressed on them.
This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of any securities.
THE BLACKROCK FLORIDA INSURED
MUNICIPAL 2008 TERM TRUST
c/o Princeton Administrators, L.P.
P.O. Box 9095, Princeton, NJ 08543-9095
(800) 543-6217
[RECYCLE LOGO] PRINTED ON RECYCLED PAPER 09247H 10 6
09247H 205
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BLACKROCK
THE ---------
FLORIDA INSURED
MUNICIPAL 2008
TERM TRUST
------------------
SEMI-ANNUAL REPORT
JUNE 30, 2000
[GRAPHIC OMITTED]
