- --------------------------------------------------------------------------------
THE BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------
July 31, 1996
Dear Trust Shareholder:
After posting strong returns during 1995, the fixed income markets have given
back much of their gains in 1996 in response to a strengthening U.S. economy.
Accelerating economic growth has raised concerns about an increased inflationary
environment, which could erode the value of fixed income investments. The
stronger economy also has led some market participants to consider the
possibility that the Federal Reserve may increase interest rates to thwart
inflation threats after three interest rate reductions over the past twelve
months.
Despite the pick-up in economic growth, we believe that current inflationary
fears will subside. Commodity prices have risen but manufacturers will have
difficulty passing along the increased costs of raw materials to consumers,
whose debt levels as a percentage of disposable income are at the highest point
since the recessionary highs of 1990. We believe that the overleveraged consumer
will have to retrench, restricting future economic expansion and creating a
positive environment for bonds in the latter half of this year.
The following semi-annual report provides detailed market commentary and a
review of portfolio management activity. We believe that BlackRock's duration
controlled management style and risk management capabilities will allow each of
our Trusts to achieve its long-term investment objective.
We look forward to maintaining your respect and confidence and to serving
your financial needs in the coming years.
Sincerely,
/s/ Laurence D. Fink /s/ Ralph L. Schlosstein
Laurence D. Fink Ralph L. Schlosstein
Chairman President
1
<PAGE>
July 31, 1996
Dear Shareholder:
We are pleased to present the semi-annual report for The BlackRock New York
Insured 2008 Term Trust Inc. ("the Trust") for the six months ended June 30,
1996. We would like to take this opportunity to review the Trust's stock price
and net asset value (NAV) performance, summarize market developments 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 and New York State and City income tax. The Trust
seeks to achieve this objective by investing in high credit quality ("AAA" or
insured to "AAA") New York tax-exempt general obligation and revenue bonds
issued by city, county and state municipalities.
The table below summarizes the performance of the Trust's stock price and net
asset value (the market value of its bonds per share) over the period:
------------------------------------------------
6/30/96 12/31/95 CHANGE HIGH LOW
- --------------------------------------------------------------------------------
STOCK PRICE $14.25 $ 14.625 (2.56%) $15.125 $13.875
NET ASSET VALUE (NAV) $15.42 $ 16.11 (4.28%) $16.35 $15.11
- --------------------------------------------------------------------------------
THE FIXED INCOME MARKETS
The domestic fixed income markets witnessed two profoundly different
environments during the past six months, providing an exciting and challenging
environment in which to manage the Trust. The Treasury market rally of 1995
continued through the middle of February 1996, as market demand for fixed income
securities remained strong due to a combination of moderate economic growth, low
absolute levels of inflation and two reductions of the Fed funds target rate.
The rally halted during mid-February, however, as data indicating accelerating
economic growth rekindled inflationary concerns. The strengthening of the
economy continued throughout the second quarter, leading market participants to
become more resolute in their belief that the Federal Reserve will tighten
monetary policy during the second half of 1996. These fears translated into a
sharp rise in bond yields across the Treasury yield curve, resulting in the
fixed income markets rescinding much of their 1995 gains.
After lagging the performance of its Treasury counterparts during the fourth
quarter of 1995, municipal bonds have outperformed taxable fixed income
securities in 1996. The diminished possibility of significant tax reform, which
had threatened the tax-exempt status of municipal bond income, helped renew
investor interest in the municipal sector. Additionally, municipal bond
investors received approximately $60 billion in cash during the June/July period
resulting from bond calls, interest payments and redemptions. A significant
portion of this money has been reinvested in the municipal market, as high
municipal bond absolute yields convinced many investors to bypass the equity
markets. For the period, the yield of the 10-year AAA General Obligation
increased 47 basis points (0.47%) to close at 5.11% versus a 114 basis point
rise in the yield of the 10-year Treasury note. Despite the potential decline in
retail demand as the June/July cash flows are reinvested, BlackRock believes
that municipal bonds have the potential to continue to outperform Treasury
securities for the remainder of 1996.
New York state municipal bond performance paralleled the national market over
the semi-annual period. New supply issuance in the first quarter of 1996, which
included an $800 million placement of New York City General
2
<PAGE>
Obligation bonds and a $400 million issue by the Metropolitan Transit Authority,
was similar to previous years and was offset with reinvestment by retail
investors. Over the past year, the New York state economy has benefited from the
continuing profitability of Wall Street in addition to a slight increase in tax
revenues. We remain optimistic for continued strong performance of New York
state municipal bonds during the balance of the year.
THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY
The Trust's portfolio is invested in high credit-quality municipal issues
with ratings of "AAA" by Standard & Poor's Corporation (or of equivalent quality
as determined by other major rating agencies). In addition, the majority of the
individual securities within the portfolio are insured as to timely payment of
interest and principal by municipal bond insurance companies whose long-term
obligations are rated "AAA". As such, Standard & Poor's has given a AAAf rating
to the portfolio. BlackRock Financial Management actively manages the Trust's
portfolio to diversify exposure to various sectors, issuers, revenue sources and
security types which fit within the context of the Trust seeking to achieve its
investment objectives.
Additionally, the Trust employs leverage at about 35% of total assets to
enhance its income by borrowing at short term municipal rates and investing the
proceeds in longer maturity issues with higher yields. The degree to which the
Trust can benefit from its use of leverage may affect its ability to pay high
monthly income. After steepening during the first quarter of 1996, the municipal
yield curve has recently flattened, as longer maturity municipal bonds have
outperformed shorter municipals. This resulted in a narrowing of the yield
differential, or "spread", between long and short maturities.
The following chart compares the Trust's current and December 31, 1995 asset
composition:
THE BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST INC.
SECTOR JUNE 30, 1996 DECEMBER 31, 1995
Transportation 26% 25%
County, City & State 21% 21%
Water & Sewer 12% 12%
Education 10% 10%
Hospital 9% 10%
Tax Revenue 6% 6%
Lease Revenue 4% 5%
Housing 2% 2%
Other 10% 9%
3
<PAGE>
We look forward to continuing to manage the Trust to benefit from the
opportunities available to investors in the investment grade municipal market.
We thank you for your investment and continued interest in The BlackRock New
York Insured 2008 Term Trust Inc. Please feel free to call our marketing center
at (800) 227-7BFM (7236) if you have any specific questions which were not
addressed in this report.
Sincerely yours,
/s/ Robert S. Kapito /s/ Kevin Klingert
Robert S. Kapito Kevin Klingert
Vice Chairman and Portfolio Manager Managing Director and Portfolio
BlackRock Financial Management, Inc. Manager
BlackRock Financial Management,
Inc.
- --------------------------------------------------------------------------------
THE BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST INC.
- --------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BLN
- --------------------------------------------------------------------------------
Initial Offering Date: September 18, 1992
- --------------------------------------------------------------------------------
Closing Stock Price as of 6/30/96: $14.25
- --------------------------------------------------------------------------------
Net Asset Value as of 6/30/96: $15.42
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 6/30/96 $14.25)1: 6.00%
- --------------------------------------------------------------------------------
Current Monthly Distribution per Common Share2: $0.07125
- --------------------------------------------------------------------------------
Current Annualized Distribution per Common Share2: $0.8550
- --------------------------------------------------------------------------------
- --------------
1 Yield on Closing Stock Price is calculated by dividing the current annualized
distribution per share by the closing stock price per share.
2 Distribution is not constant and is subject to change.
4
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK NEW YORK INSURED
MUNICIPAL 2008 TERM TRUST INC.
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(UNAUDITED)
<TABLE>
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
<C> <C> <S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--145.8%
NEW YORK--142.8%
AAA $ 785 Erie Cnty., Ser. B, 5.70%, 5/15/08, MBIA.................. 05/04 at 102 $ 800,810
Met. Trans. Auth. Rev., MBIA,
AAA 26,075 Ser. K, 6.00%, 7/01/08................................... No Opt. Call 27,686,174
AAA 2,500 Commuter Facs., Ser. A, 6.10%, 7/01/08................... No Opt. Call 2,671,875
AAA 7,050 Trans. Fac., 5.50%, 7/01/08.............................. No Opt. Call 7,112,604
AAA 2,000 Commuter Facs. Series A, 6.10%, 7/01/09.................. No Opt. Call 2,126,440
Mt. Sinai Union Free Sch. Dist. Rev., AMBAC,
AAA 935 6.00%, 2/15/08........................................... No Opt. Call 988,828
AAA 930 6.10%, 2/15/09........................................... No Opt. Call 986,609
AAA 1,075 6.10%, 2/15/10........................................... No Opt. Call 1,133,480
AAA 10,500 Mun. Asst. Corp., City of New York, Ser. A, 6.00%, 10,773,945
7/01/08, FGIC............................................. 07/01 at 100
Nassau Cnty. G.O., Ser. N, AMBAC,
AAA 1,020 6.125%, 10/15/07......................................... 10/02 at 102.5 1,079,619
AAA 1,040 6.125%, 10/15/08......................................... 10/02 at 103 1,098,770
New York City, G.O.,
AAA 3,000 Ser. D, 5.75%, 8/15/07, MBIA............................. 08/03 at 101.5 3,060,600
AAA 5,500 Ser. C, 5.91%, 8/01/09, AMBAC............................ 08/02 at 101.5 5,688,760
AAA 6,895 Ser. E, 6.20%, 8/01/08, MBIA............................. No Opt. Call 7,311,734
AAA 3,455 Ser. C-1, 6.25%, 8/01/02+, FSA........................... No Opt. Call 3,745,531
AAA 10,000 Ser. B, 6.25%, 10/01/08, FSA............................. 10/02 at 101.5 10,537,900
AAA 760 Ser. C-1, 6.25%, 8/01/10, FSA............................ 08/02 at 101.5 793,318
AAA 4,950 Ser. C-1, 6.375%, 8/01/02+, MBIA......................... No Opt. Call 5,398,470
AAA 50 Ser. C-1, 6.375%, 8/01/08, MBIA.......................... 08/02 at 101.5 52,966
New York City Hlth. & Hosp. Corp. Rev.,
AAA 6,000 5.60%, 2/15/08, CONNIE LEE............................... 02/03 at 102 6,045,780
AAA 2,750 Ser. A, 6.00%, 2/15/07, CAPMAC........................... 02/03 at 102 2,851,558
New York City Mun. Wtr. Fin. Auth. Rev., Wtr. & Swr. Sys.,
Ser. A,
AAA 11,500 Zero Coupon, 6/15/09, MBIA............................... No Opt. Call 5,525,635
AAA 2,000 5.50%, 6/15/11, AMBAC.................................... 06/02 at 101.5 1,986,860
AAA 1,710 6.00%, 6/15/08, FGIC..................................... No Opt. Call 1,805,965
AAA 11,560 6.15%, 6/15/07, FGIC..................................... 06/02 at 101.5 12,147,479
New York St., G.O., AMBAC,
AAA 1,000 5.50%, 6/15/09........................................... 06/03 at 102 988,340
AAA 4,030 6.75%, 8/01/07........................................... 08/01 at 102 4,376,298
AAA 9,665 New York St. C.O.P., City Univ. of New York John Jay
Coll., 5.50%, 8/15/09, AMBAC............................. 08/96 at 102 9,880,240
New York St. Dorm. Auth. Rev.:,
AAA 1,965 City Univ., 6.125%, 7/01/08, AMBAC....................... 07/04 at 102 2,058,161
AAA 1,185 City Univ., 6.125%, 7/01/09, AMBAC....................... 07/04 at 102 1,231,914
AAA 5,375 New York Univ., 6.25%, 7/01/09, FGIC..................... 07/01 at 102 5,615,209
AAA 2,500 St. Univ. Ed. Facs., Ser. A, 5.50%, 5/15/08, AMBAC....... No Opt. Call 2,497,875
AAA 5,000 St. Univ. Ed. Facs., Ser. A, 5.50%, 5/15/08, FGIC........ No Opt. Call 5,026,150
AAA 5,000 St. Univ. Ed. Facs., Ser. A, 5.50%, 5/15/09, AMBAC....... No Opt. Call 4,996,250
AAA 1,800 Union Coll., 5.75%, 7/01/10, FGIC........................ 07/02 at 102 1,801,206
AAA 5,000 New York St. Environ. Facs. Corp., Poll. Ctrl. Rev.,
Ser. D, 6.60%, 5/15/2008................................. 11/04 at 102 5,479,200
AAA 4,565 New York St. Hsg. Fin. Agcy. Rev., Multifamily Mtge. Hs.,
Ser. C, 6.30%, 8/15/08, FHA.............................. 08/02 at 102 4,789,735
New York St. Med. Care Facs. Fin. Agcy. Rev.,
AAA 3,000 Mental Hlth. Facs., 5.25%, 8/15/07, FGIC................. 02/04 at 102 2,964,930
AAA 6,190 Mental Hlth. Svcs. Impvt., Ser. D, 6.00%, 8/15/08, 6,465,207
AMBAC.................................................... 08/02 at 102
AAA 5,000 New York Hosp., Ser. A, 6.50%, 8/15/08, AMBAC............ 02/05 at 102 5,428,850
</TABLE>
5
<PAGE>
<TABLE>
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL OPTION
AMOUNT CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
- -----------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C>
New York St. Thruway Auth. Rev.,
AAA $ 2,000 Ser. A, 5.875%, 1/01/07, FGIC............................ 01/02 at 102 $ 2,065,360
AAA 8,060 Ser. A, 5.875%, 1/01/08, FGIC............................ 01/02 at 102 8,238,448
AAA 5,000 Hwy. & Brdg. Trust Fund, Ser. A, 5.625%, 4/01/08, 5,060,050
AMBAC.................................................... 04/04 at 102
AAA 1,000 Hwy. & Brdg. Trust Fund, Ser. B, 6.00%, 4/01/09, AMBAC... 04/04 at 102 1,031,670
AAA 6,940 Service Contract, 5.75%, 4/01/09, MBIA................... 04/04 at 102 7,030,567
AAA 1,460 New York St. Urban Dev. Corp. Rev., Correctional Facs.,
5.625%, 1/01/07, FSA..................................... 01/03 at 102 1,480,469
AAA 2,055 Port Auth. of New York & New Jersey, Seventy-Second Ser.,
7.40%, 10/01/02++, AMBAC................................. 10/02 at 101 2,355,400
Suffolk Cnty, G.O., FGIC,
AAA 620 Ser. B, 6.00%, 5/01/07................................... 05/02 at 102 651,180
AAA.. 465 Ser. C, 6.00%, 6/15/07.................................... 05/02 at 102 491,194
AAA 615 Ser. B, 6.05%, 5/01/08................................... 05/02 at 102 645,867
AAA 430 Ser. C, 6.05%, 6/15/08................................... 05/02 at 102 454,170
AAA 5,000 Suffolk Cnty. Ind. Dev. Agcy. Rev., Southwest, 6.00%, 5,291,650
2/01/08, FGIC............................................. No Opt. Call
Suffolk Cnty. Wtr. Auth. Rev., Ser. C, AMBAC,
AAA 620 5.75%, 6/01/02++......................................... No Opt. Call 657,690
AAA 665 5.75%, 6/01/02++......................................... No Opt. Call 705,425
AAA 1,675 5.75%, 6/01/08........................................... 06/02 at 102 1,700,510
Triborough Bridge & Tunl. Auth. Rev.,
AAA 7,500 Ser. X, 6.00%, 1/01/07, AMBAC............................ No Opt. Call 7,717,800
AAA 8,110 6.20%, 1/01/08, FGIC..................................... 01/02 at 101.5 8,520,934
AAA 6,500 6.25%, 1/01/12, AMBAC.................................... 01/02 at 101.5 6,707,414
------------
247,817,073
PUERTO RICO--3.0%
A-1+ 5,000 Puerto Rico, Comnwlth. Pub. Impvt., 6.25%, 7/01/10, FSA... 07/02 at 101.5 5,270,300
------------
Total Long-Term Investments (cost $239,345,947)........... 253,087,373
SHORT-TERM INVESTMENT--0.6%
A-1+ 1,100 New York City Mun. Wtr. Fin. Auth. Rev., 3.55%, FRDD 1,100,000
7/01/96 (cost $1,100,000)................................
------------
TOTAL INVESTMENTS--146.4% (COST $240,445,947)............. 254,187,373
Other assets in excess of liabilities--2.8%............... 4,880,929
Liquidation value of preferred stock--(49.2)%............. (85,500,000)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100%........ $173,568,302
------------
------------
</TABLE>
- ------------
<TABLE>
<C> <S>
* Rating using the greater of Standard & Poor's, Moody's or Fitch's.
** For purposes of amortized cost valuation, the maturity date of this instrument is considered
to be the later of the next date on which the security can be redeemed at par or the next date
on which the rate of interest is adjusted.
+ Option call provisions: date (month/year and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
++ This bond is prerefunded. See glossary for definition.
</TABLE>
AMBAC--American Municipal Bond Assurance Corporation
CAPMAC--Capital Markets Assurance Corporation
C.O.P.--Certificate of Participation
CONNIE LEE--College Construction Loan Insurance
Association
FHA--Federal Housing Administration
FGIC--Financial Guaranty Insurance Company
FSA--Financial Security Assurance
FRDD--Floating Rate Daily Demand**
G.O.--General Obligation Bond
MBIA--Municipal Bond Insurance Association
See Notes to Financial Statements
6
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------- ----------------------------------------------
THE BLACKROCK NEW YORK INSURED THE BLACKROCK NEW YORK INSURED
MUNICIPAL 2008 TERM TRUST INC. MUNICIPAL 2008 TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF OPERATIONS
JUNE 30, 1996 SIX MONTHS ENDED JUNE 30, 1996
(UNAUDITED) (UNAUDITED)
- ---------------------------------------------- ----------------------------------------------
<S> <C> <C> <C>
ASSETS NET INVESTMENT INCOME
Investments, at value (cost Income
$240,445,947) Interest and discount earned..... $ 7,396,963
(Note 1)......................... $ 254,187,373 ------------------
Cash.............................. 43,715
Interest receivable............... 5,283,041 Expenses
Deferred organization expense and Investment advisory.............. 458,334
other assets..................... 24,719 Administration................... 130,953
------------------ Auction agent.................... 107,000
259,538,848 Custody.......................... 43,000
------------------ Reports to shareholders.......... 30,000
LIABILITIES Directors........................ 20,000
Dividends payable-common stock.... 165,676 Audit............................ 12,000
Advisory fee payable (Note 2)..... 73,957 Transfer agent................... 9,000
Dividends payable-preferred Legal............................ 5,000
stock............................. 57,798 Miscellaneous.................... 76,789
Administration fee payable (Note ------------------
2)................................ 21,131 Total expenses................... 892,076
Other accrued expenses............ 151,984 ------------------
------------------ Net Investment income............. 6,504,887
470,546 ------------------
------------------
NET INVESTMENT ASSETS............. $ 259,068,302 REALIZED AND UNREALIZED GAIN
------------------ (LOSS) ON INVESTMENTS (NOTE 3)
------------------ Net realized gain on
Net investment assets were investments....................... 266,399
comprised of: Net change in unrealized
Common stock: appreciation on investments...... (8,279,136)
Par value (Note 4)............. $ 112,571 ------------------
Paid-in capital in excess of Net loss on investments........... (8,012,737)
par........................... 156,370,725 ------------------
Preferred stock (Note 4)......... 85,500,000
------------------ NET DECREASE IN NET INVESTMENT
241,983,296 ASSETS RESULTING FROM OPERATIONS.. $ (1,507,850)
Undistributed net investment ------------------
income.......................... 3,341,232 ------------------
Accumulated net realized gain.... 2,348
Net unrealized appreciation...... 13,741,426
------------------
Net investment assets, June 30,
1996............................ $ 259,068,302
------------------
------------------
Net assets applicable to common
shareholders.................... $ 173,568,302
------------------
------------------
Net asset value per common share:
($173,568,302/11,257,093 shares
of common stock issued and
outstanding).................... $15.42
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK NEW YORK INSURED
MUNICIPAL 2008 TERM TRUST INC.
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
1996 1995
------------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET INVESTMENT ASSETS
Operations:
Net investment income................................................ $ 6,504,887 $ 12,975,649
Net realized gain on investments..................................... 266,399 805,099
Net change in unrealized appreciation (depreciation) on
investments......................................................... (8,279,136) 25,385,065
------------------ ------------
Net increase (decrease) in net investment assets resulting from
operations.......................................................... (1,507,850) 39,165,813
------------------ ------------
Dividends and distributions:
To common shareholders from net investment income.................... (4,812,326) (9,610,972)
To common shareholders from net realized gain on investments......... -- (13,740)
To preferred shareholders from net investment income................. (1,491,449) (3,221,044)
To preferred shareholders from net realized gain on investments...... -- (4,575)
------------------ ------------
(6,303,775) (12,850,331)
------------------ ------------
Total increase (decrease)......................................... (7,811,625) 26,315,482
NET INVESTMENT ASSETS
Beginning of period................................................... 266,879,927 240,564,445
------------------ ------------
End of period......................................................... $259,068,302 $266,879,927
------------------ ------------
------------------ ------------
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK NEW YORK INSURED
MUNICIPAL 2008 TERM TRUST INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED JUNE 30, --------------------------------
1996 1995 1994 1993
------------------ -------------- -------------- --------------
<S> <C> <C> <C> <C>
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of the period.... $ 16.11 $ 13.77 $ 16.19 $ 14.33
------- ------- ------- -------
Net investment income...................... 0.58 1.15 1.14 1.14
Net realized and unrealized gain (loss) on
investments............................... (0.71) 2.33 (2.49) 1.79
------- ------- ------- -------
Net increase (decrease) from investment
operations................................ (0.13) 3.48 (1.35) 2.93
------- ------- ------- -------
Dividends from net investment income to:
Preferred shareholders..................... (0.13) (0.29) (0.21) (0.17)
Common shareholders........................ (0.43) (0.85) (0.86) (0.86)
Distributions from net realized gain on
investments to:
Preferred shareholders..................... -- -- -- (0.01)
Common shareholders........................ -- -- -- (0.03)
------- ------- ------- -------
Distributions in excess of net realized gain
on investments to:
Preferred shareholders..................... -- -- *** -- *** (0.01)
Common shareholders........................ -- -- **** -- **** (0.03)
------- ------- ------- -------
Total dividends and distributions........... (0.56) (1.14) (1.07) (1.07)
------- ------- ------- -------
Capital charge with respect to issuance of
shares.................................... -- -- -- --
------- ------- ------- -------
Net asset value, end of period**............ $ 15.42 $ 16.11 $ 13.77 $ 16.19
------- ------- ------- -------
------- ------- ------- -------
Market value, end of period**............... $ 14.25 $ 14.625 $ 12.50 $ 15.00
------- ------- ------- -------
------- ------- ------- -------
TOTAL INVESTMENT RETURN+.................... 0.35% 24.19% (11.35)% 14.89%
------- ------- ------- -------
------- ------- ------- -------
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS:+++
Expenses.................................... 1.01%++ 1.05% 1.08% 0.95%
Net investment income....................... 7.38%++ 7.54% 7.80% 7.31%
SUPPLEMENTAL DATA:
Average net assets of common shareholders
(in thousands).............................. $ 176,218 $ 172,037 $ 164,792 $ 174,881
Portfolio turnover.......................... 1% 12% 50% 14%
Net assets of common shareholders, end of
period (in thousands)...................... $ 173,568 $ 181,380 $ 155,064 $ 182,198
Preferred stock outstanding (in
thousands)................................ $ 85,500 $ 85,500 $ 85,500 $ 85,500
Asset coverage per share of preferred stock,
end of period##........................... $ 75,751 $ 78,035 $ 140,681 $ 156,549
<CAPTION>
SEPTEMBER 28,
1992* THROUGH
DECEMBER 31,
1992
--------------
<S> <C> <C>
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of the period.... $ 14.10
-------
Net investment income...................... 0.18
Net realized and unrealized gain (loss) on
investments................................. 0.34
-------
Net increase (decrease) from investment
operations.................................. 0.52
-------
Dividends from net investment income to:
Preferred shareholders..................... (0.02 )
Common shareholders........................ (0.07 )
Distributions from net realized gain on
investments to:
Preferred shareholders..................... --
Common shareholders........................ --
-------
Distributions in excess of net realized gain
on investments to:
Preferred shareholders..................... --
Common shareholders........................ --
-------
Total dividends and distributions........... (0.09 )
-------
Capital charge with respect to issuance of
shares.................................... (0.20 )
-------
Net asset value, end of period**............ $ 14.33 #
Market value, end of period**............... $ 13.75
-------
-------
TOTAL INVESTMENT RETURN+.................... (2.00 )%
-------
-------
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS:+++
Expenses.................................... 0.85 %++
Net investment income....................... 5.08 %++
SUPPLEMENTAL DATA:
Average net assets of common shareholders
(in thousands)............................ $ 153,409
Portfolio turnover.......................... 40 %
Net assets of common shareholders, end of
period (in thousands)...................... $ 161,290
Preferred stock outstanding (in
thousands)................................ $ 85,500
Asset coverage per share of preferred stock,
end of period##........................... $ 144,500
</TABLE>
- ------------
* Commencement of investment operations.
** Net asset value and market value are published in The Wall Street Journal
each Monday.
*** Actual amount paid to preferred shareholders was $0.00041 and $0.00054 per
common share for the fiscal years ended December 31, 1995 and 1994,
respectively.
**** Actual amount paid to common shareholders was $0.0012 and $0.0025 per
common share for the fiscal years ended December 31, 1995 and 1994,
respectively.
+ Total investment return is calculated assuming a purchase of common stock at
the current market price on the first day and a sale at the current market
value on the last day of the period. Dividends and distributions, if any are
assumed for purposes of this calculation, to be reinvested at prices
obtained under the Trust's dividend reinvestment plan. Total investment
return does not reflect brokerage commissions. Total Investment return for
periods of less than a full year are not annualized.
++ Annualized.
+++ Ratios calculated on a basis of income and expenses applicable to both the
common and preferred shares relative to the average net assets of common
shareholders. Ratios do not reflect the effect of dividend payments to
preferred shareholders.
# Net asset value immediately after the closing of the first public offering
was $14.06.
## A stock split occurred on July 24, 1995 (Note 4).
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 period indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for Trust's shares.
See Notes to Financial Statements.
9
<PAGE>
- ----------------------------------------------
THE BLACKROCK NEW YORK INSURED
MUNICIPAL 2008 TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
- ----------------------------------------------
Note 1. Accounting The BlackRock New York
Policies Insured Municipal 2008
Term Trust Inc. (the
"Trust") was
organized in Maryland 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, New York State and New York City income taxes. 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 Directors.
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.
OPTION SELLING/PURCHASING: When the Trust sells or purchases an option, an
amount equal to the premium received or paid by the Trust is recorded as a
liability or an asset and is subsequently adjusted to the current market value
of the option written or purchased. Premiums received or paid from writing or
purchasing options which expire unexercised are treated by the Trust on the
expiration date as realized gains or losses. The difference between the premium
and the amount paid or received on effecting a closing purchase or sale
transaction, including brokerage commissions, is also treated as a realized gain
or loss. If an option is exercised, the premium paid or received is added to the
proceeds from the sale or cost of the purchase in determining whether the Trust
has realized a gain or a loss on investment transactions. The Trust, as writer
of an option, may have no control over whether the underlying securities may be
sold (call) or purchased (put) and as a result bears the market risk of an
unfavorable change in the price of the security underlying the written option.
FINANCIAL FUTURES CONTRACTS: A futures contract is an agreement between two
parties to buy and sell a financial instrument for a set price on a future date.
Initial margin deposits are made upon entering into futures contracts and can be
either cash or securities. During the period the futures contract is open,
changes in the value of the contract are recognized as unrealized gains or
losses by "marking-to-market" on a daily basis to reflect the market value of
the contract at the end of each day's trading. Variation margin payments are
made or received, depending upon whether unrealized gains or losses are
incurred. When the contract is closed, the Trust records a realized gain or loss
equal to the difference between the proceeds from (or cost of) the closing
transaction and the Trust's basis in the contract.
The Trust may invest in financial futures contracts primarily for the purpose
of hedging its existing portfolio securities or securities the Trust intends to
purchase against fluctuations in value caused by changes in prevailing market
interest rates. Should interest rates move unexpectedly, the Trust may not
achieve the anticipated benefits of the financial futures contracts and may
realize a loss. The use of futures transactions involves the risk of imperfect
correlation in movements in the price of futures contracts, interest rates and
the underlying hedged assets.
SHORT SALES: The Trust may make short sales of securities as a method of hedging
potential price declines in similar securities owned. When the Trust makes a
short sale, it may borrow the security sold short and deliver it to the
broker-dealer through which it made the short sale as collateral for its
obligation to deliver the security upon conclusion of the sale. The Trust may
have to pay a fee to borrow the particular securities and may be obligated to
pay over any payments received on such borrowed securities. A gain, limited to
the price at which the Trust sold the security short, or a loss, unlimited as to
dollar amount, will be recognized upon the termination of a short sale if the
market price is greater or less than the proceeds originally received.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized gains and losses are calculated on the
identified cost basis. Interest income is recorded on the accrual basis and the
Trust amortizes premium and accretes original issue discount on securities
purchased using the interest method.
FEDERAL INCOME TAXES: It is the Trust's intention to continue to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute sufficient net income to shareholders. For this
reason and because substantially all of the Trust's gross income consists of
tax-exempt interest, no federal income tax provision is required.
DIVIDENDS AND DISTRIBUTIONS: The Trust declares and pays dividends and
distributions to common shareholders monthly from net investment income. Net
capital gains, if any, in excess of loss carryforwards may be distributed
annually. Dividends and distributions are recorded on the ex-dividend date.
Dividends and distributions to preferred shareholders are accrued and determined
as described in Note 4.
DEFERRED ORGANIZATION EXPENSES: A total of $40,000 was incurred in connection
with the organization of the Trust. These costs have been deferred and are being
amortized ratably over a period of sixty months from the date the Trust
commenced investment operations.
Note 2. Agreements The Trust has an
Investment Advisory
Agreement with
BlackRock Financial
10
<PAGE>
Management, Inc. (the "Adviser") a wholly-owned corporate subsidiary of PNC
Asset Management Group, Inc., the holding company for PNC's asset management
business and an Administration Agreement with Princeton Administrators, L.P.
(the "Administrator"), an indirect wholly owned subsidiary of Merrill Lynch
& Co., Inc.
The investment advisory fee paid to the Adviser is computed weekly and
payable monthly at an annual rate of 0.35% of the Trust's average weekly net
investment assets. The administration fee paid to the Administrator is also
computed weekly and payable monthly at an annual rate of 0.10% of the Trust's
average weekly net investment assets.
Pursuant to the agreements, the Adviser provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Adviser. The Administrator pays occupancy and
certain clerical and accounting costs of the Trust. The Trust bears all other
costs and expenses.
Note 3. Portfolio Purchases and sales of
Securities investment securities,
other than short- term
investments, for the six months ended June 30, 1996 aggregated $2,195,560
and $3,985,580, respectively.
The federal income tax basis of the Trust's investments at June 30, 1996 was
substantially the same as the basis for financial reporting, and accordingly,
net unrealized appreciation was $13,741,426 (gross unrealized appreciation --
$13,954,367; gross unrealized depreciation--$212,941).
For federal income tax purposes, the Trust had a capital loss carryforward at
December 31, 1995 of approximately $215,000, of which $74,000 expires in 2002
and $141,000 expires in 2003. 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 common stock
authorized. Of the
11,257,093 common shares outstanding at June 30, 1996 the Adviser owned 7,093
shares. As of June 30, 1996, there were 3,420 preferred shares outstanding as
follows: Series F28-1,710 and Series F7-1,710.
The Trust may classify or reclassify any unissued shares of common stock into
one or more series of preferred stock. On November 23, 1992, the Trust
reclassified 1,710 shares of common stock and issued 2 series of Auction Market
Preferred Stock ("Preferred Stock") as follows: Series F28--855 shares, Series
F7--855 shares. The Preferred Stock has a liquidation value of $25,000 per share
plus any accumulated but unpaid dividends.
Dividends on Series F7 are cumulative at a rate which is reset every 7 days
based on the results of an auction. Dividends on Series F28 are also cumulative
at a rate which is reset every 28 days based on the results of an auction.
Dividend rates ranged from 2.90% to 3.80% during the six months ended June 30,
1996.
The Trust may not declare dividends or make other distributions on shares of
common stock or purchase any such shares if, at the time of the declaration,
distribution or purchase, asset coverage with respect to the outstanding
Preferred Stock would be less than 200%.
The Preferred Stock is redeemable at the option of the Trust, in whole or in
part, on any dividend payment date at $25,000 per share plus any accumulated or
unpaid dividends whether or not declared. The Preferred Stock is also subject to
mandatory redemption at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared if certain requirements relating to the
composition of the assets and liabilities of the Trust as set forth in the
Articles of Incorporation are not satisfied.
The holders of Preferred Stock have voting rights equal to the holders of
common stock (one vote per share) and will vote together with holders of shares
of common stock as a single class. However, holders of Preferred Stock are also
entitled to elect two of the Trust's directors. 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.
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 any accumulated but unpaid dividends. The stock split occurred on
July 24, 1995.
Note 5. Dividends Subsequent to June 30,
1996, the Board of
Directors of the Trust
declared a dividend from undistributed earnings of $0.07125 per common share
payable July 31, 1996 to shareholders of record on July 15, 1996.
For the period July 1, 1996 to July 31, 1996 dividends declared on Preferred
Stock totalled $253,291 in aggregate for the two outstanding Preferred Stock
series.
11
<PAGE>
<TABLE>
Note 6. Quarterly Data
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
NET REALIZED AND
UNREALIZED GAINS
NET INVESTMENT INCOME (LOSSES) ON
INVESTMENTS
PER PER
TOTAL COMMON COMMON
QUARTERLY PERIOD INCOME AMOUNT SHARE AMOUNT SHARE
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
January 1, 1994 to
March 31, 1994........... $ 3,679,372 $ 3,224,789 $ 0.29 $ (19,469,571) $ (1.74)
April 1, 1994 to
June 30, 1994............ 3,675,826 3,192,515 0.28 (485,692) (0.04)
July 1, 1994 to
September 30, 1994....... 3,695,897 3,236,332 0.29 (2,266,158) (0.20)
October 1, 1994 to
December 31, 1994........ 3,583,798 3,195,645 0.28 (5,697,488) (0.51)
January 1, 1995 to
March 31, 1995........... 3,748,311 3,316,783 0.29 14,125,153 1.25
April 1, 1995 to
June 30, 1995............ 3,694,577 3,250,410 0.29 1,886,854 0.17
July 1, 1995 to
September 30, 1995....... 3,636,017 3,193,630 0.28 4,695,728 0.42
October 1, 1995 to
December 31, 1995........ 3,696,424 3,214,826 0.29 5,482,429 0.49
January 1, 1996 to
March 31, 1996........... 3,700,900 3,256,609 0.29 (5,576,257) (0.49)
April 1, 1996 to
June 30, 1996............ 3,696,063 3,248,278 0.29 (2,436,480) (0.22)
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
INVESTMENT ASSETS RESULTING FROM DIVIDENDS AND DISTRIBUTIONS
COMMON SHARES PREFERRED SHARES*
PER PER PER
OPERATIONS COMMON COMMON COMMON
QUARTERLY PERIOD AMOUNT SHARE AMOUNT SHARE AMOUNT SHARE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <<C> <C> <C>
January 1, 1994 to
March 31, 1994........... $ (16,244,782) $ (1.45 ) $ 2,406,195 $ 0.21 $ 479,380 $ 0.04
April 1, 1994 to
June 30, 1994............ 2,706,823 0.24 2,408,195 0.22 577,668 0.05
July 1, 1994 to
September 30, 1994....... 970,176 0.09 2,434,333 0.22 628,201 0.08
October 1, 1994 to
December 31, 1994........ (2,501,843) (0.23 ) 2,406,194 0.21 726,029 0.06
January 1, 1995 to
March 31, 1995........... 17,441,936 1.55 2,406,170 0.21 779,474 0.07
April 1, 1995 to
June 30, 1995............ 5,137,264 0.46 2,406,180 0.22 824,362 0.07
July 1, 1995 to
September 30, 1995....... 7,889,358 0.70 2,406,187 0.21 799,604 0.07
October 1, 1995 to
December 31, 1995........ 8,697,255 0.77 2,406,175 0.21 822,179 0.08
January 1, 1996 to
March 31, 1996........... (2,319,648) (0.20 ) 2,406,160 0.21 721,419 0.06
April 1, 1996 to
June 30, 1996............ 811,798 0.07 2,406,166 0.22 770,030 0.07
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------
SHARE PRICE OF PERIOD
COMMON STOCK END NET
QUARTERLY PERIOD HIGH LOW ASSET VALUE
- -----------------------------------------------------------------------------
January 1, 1994 to
March 31, 1994........... $ 15.500 $ 13.750 $ 14.49
April 1, 1994 to
June 30, 1994............ 14.625 13.375 14.46
July 1, 1994 to
September 30, 1994....... 14.125 13.375 14.28
October 1, 1994 to
December 31, 1994........ 13.625 11.625 13.77
January 1, 1995 to
March 31, 1995........... 14.125 12.75 15.04
April 1, 1995 to
June 30, 1995............ 14.50 13.875 15.21
July 1, 1995 to
September 30, 1995....... 14.50 14.00 15.63
October 1, 1995 to
December 31, 1995........ 15.00 14.375 16.11
January 1, 1996 to
March 31, 1996........... 15.125 14.375 15.63
April 1, 1996 to
June 30, 1996............ 14.875 13.875 15.42
</TABLE>
12
<PAGE>
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
There have been no material changes in the Trust's investment objectives or
policies that have not been approved by the shareholders. There have been no
changes in the Trust's charter or by-laws. There have been no changes in the
principal risk factors associated with 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 8, 1996 to vote on the
following matters:
(1) To elect three Directors to serve as follows:
<TABLE>
<CAPTION>
DIRECTOR CLASS TERM EXPIRING
- ------------------------------------------------------------- ----- -------- --------
<S> <C> <C> <C>
Andrew F. Brimmer............................................ III 3 years 1999
Kent Dixon................................................... III 3 years 1999
Laurence D. Fink............................................. III 3 years 1999
Directors whose term of office continues beyond this meeting are Richard E. Cavanagh, Frank
J. Fabozzi, James Grosfeld, James Clayburn LeForce, Jr. and Ralph L. Schlosstein.
</TABLE>
(2) To ratify the selection of Deloitte & Touche LLP as independent public
accountants of the Trust for the fiscal year ending December 31, 1996.
(3) To modify the investment restriction prohibiting investing for the
purpose of exercising control over the management of a company.
Shareholders elected the three Directors, ratified the selection of Deloitte
& Touche LLP and approved the modification of the investment restriction
prohibiting investing for the purpose of exercising control over the management
of a company. The results of the voting was as follows:
<TABLE>
<CAPTION>
VOTES FOR VOTES AGAINST ABSTENTIONS
--------- ------------- -----------
<S> <C> <C> <C>
Andrew F. Brimmer..................................... 6,552,377 -- 203,194
Kent Dixon............................................ 6,525,129 -- 200,443
Laurence D. Fink...................................... 6,522,194 -- 203,377
Ratificiation of Deloitte & Touche LLP................ 6,500,027 65,926 159,619
Investment restriction................................ 5,188,075 137,847 337,363
</TABLE>
13
<PAGE>
- --------------------------------------------------------------------------------
DIVIDEND REINVESTMENT PLAN
- --------------------------------------------------------------------------------
Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"), shareholders
may elect to have all distributions of dividends and capital gains automatically
reinvested by State Street Bank and Trust Company (the "Plan Agent") in Trust
shares. Shareholders who do not participate in the Plan will receive all
distributions in cash paid by check in United States dollars mailed directly to
the shareholders of record (or if the shares are held in street or other nominee
name, then to the nominee) by the custodian, as dividend disbursing agent.
The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the New York
Stock Exchange for the participants' accounts. The Trust will not issue shares
under the Plan.
Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment for any fraction of a Trust share.
The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any federal income tax that may be payable on
such dividends or distributions.
Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of the
change sent to all shareholders of the Trust at least 90 days before the record
date for the dividend or distribution. The Plan also may be amended or
terminated by the Plan Agent upon at least 90 days' written notice to all
shareholders of the Trust. All correspondence concerning the Plan should be
directed to the Plan Agent at (800) 699-1BFM. The address is on the front of
this report.
14
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST INC.
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
THE TRUST'S INVESTMENT OBJECTIVE
The Trust's investment objective is to provide current income exempt from
federal income tax, New York State and New York City income tax and to return
$15 per share (the initial public offering price per share) to investors on or
before December 31, 2008.
WHO MANAGES THE TRUST?
BlackRock Financial Management, Inc. (BlackRock or the Adviser) is the
investment adviser for the Trust. BlackRock is a registered investment adviser
specializing in fixed income securities. Currently, BlackRock manages
approximately $41 billion of assets across the government, mortgage, corporate
and municipal sectors. These assets are managed on behalf of institutional and
individual investors in 21 closed-end funds traded on the New York or American
Stock Exchanges, several open-end funds and separate accounts for more than 80
clients in the U.S. and overseas. BlackRock is a subsidiary of PNC Asset
Management Group, Inc. which is a division of PNC Bank, N.A., one of the
nation's largest banking organizations.
WHAT CAN THE TRUST INVEST IN?
The Trust intends to invest at least 80% of total assets in a portfolio of
New York municipal obligations insured as to the timely payment of principal and
interest. The Trust may invest up to 20% in uninsured New York 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
New York 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, New York
State and New York City income 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 portfolio 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: BLN) 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
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST INC.
GLOSSARY
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
CLOSED-END FUND: Investment vehicle which initially offers a fixed number of shares and trades on a
stock exchange. The fund invests in a portfolio of securities in accordance with its
stated investment objectives and policies.
DISCOUNT: When a fund's net asset value is greater than its stock price the fund is said to be
trading at a discount.
DIVIDEND: Income generated by securities in a portfolio and distributed to shareholders after
the deduction of expenses. This Trust declares and pays dividends to common
shareholders on a monthly basis.
DIVIDEND Shareholders may have all dividends and distributions of capital gains automatically
REINVESTMENT: reinvested into additional shares of a fund.
EMBEDDED CAP BONDS: Also known as additional interest municipal bonds. These securities are intended to
protect the income that a fund earns through leverage from significant increases in
short-term rates. The coupon on these bonds will increase if short term rates rise
significantly.
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 Net asset value is the total market value of all securities and other assets held by
(NAV): 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 or
The Wall Street Journal each Monday.
PREMIUM: When a fund's stock price is greater than its net asset value, the fund is said to
be trading at a premium.
PREREFUNDED BONDS: These securities are collateralized by U.S. Government securities which are held in
escrow and are used to pay principal and interest on the tax exempt issue and retire
the bond in full at the date indicated, typically at a premium to par.
</TABLE>
17
<PAGE>
- --------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGEMENT, INC.
SUMMARY OF CLOSED-END FUNDS
- --------------------------------------------------------------------------------
TAXABLE TRUSTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY
PERPETUAL TRUSTS STOCK SYMBOL DATE
------------ --------
<S> <C> <C>
The BlackRock Income Trust Inc. BKT N/A
The BlackRock North American Government Income Trust Inc. BNA N/A
TERM TRUSTS
The BlackRock 1998 Term Trust Inc. BBT 12/98
The BlackRock 1999 Term Trust Inc. BNN 12/99
The BlackRock Target Term Trust Inc. BTT 12/00
The BlackRock 2001 Term Trust Inc. BLK 06/01
The BlackRock Strategic Term Trust Inc. BGT 12/02
The BlackRock Investment Quality Term Trust Inc. BQT 12/04
The BlackRock Advantage Term Trust Inc. BAT 12/05
The BlackRock Broad Investment Grade 2009 Term Trust Inc. BCT 12/09
</TABLE>
TAX-EXEMPT TRUSTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
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
The BlackRock Insured Municipal Term Trust Inc. BMT 12/10
</TABLE>
IF YOU WOULD LIKE FURTHER INFORMATION
PLEASE CALL BLACKROCK AT (800) 227-7BFM
OR CONSULT WITH YOUR FINANCIAL ADVISOR.
18
<PAGE>
- --------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGEMENT, INC.
AN OVERVIEW
- --------------------------------------------------------------------------------
BlackRock Financial Management, Inc. ("BlackRock") is a registered investment
adviser which specializes in managing high quality fixed income securities, both
taxable and tax-exempt. BlackRock currently manages approximately $41 billion of
assets across the government, mortgage, corporate and municipal sectors. These
assets are managed on behalf of institutional and individual investors in 21
closed-end funds traded on the New York or American Stock Exchanges, several
open-end funds and over 80 institutional clients in the United States and
overseas. BlackRock's institutional investor base includes Chrysler Corporation
Master Retirement Trust, General Retirement System of the City of Detroit, State
Treasurer of Florida, General Electric Pension Trust and Unisys Corporation
Master Trust.
BlackRock was formed in April 1988 by fixed income professionals who sought
to create an asset management firm specializing in managing fixed income
securities for individual and institutional investors. The professionals at
BlackRock have extensive experience creating, analyzing and trading a variety of
fixed income instruments, including the most complex structured securities. In
fact, individuals at BlackRock are responsible for many of the major innovations
in the mortgage-backed and asset-backed securities markets, including the
creation of the CMO, the floating rate CMO, the senior/subordinated pass-through
and the multi-class asset-backed security.
BlackRock is unique among asset management and advisory firms in the
significant emphasis it places on the development in proprietary analytical
capabilities. A quarter of the professionals at BlackRock work full-time in the
design, maintenance and use of such systems which are otherwise not generally
available to investors. BlackRock's proprietary analytical tools are used for
evaluating, investing in and designing investment strategies and portfolios of
fixed income securities, including mortgage securities, corporate debt
securities or tax-exempt securities and a variety of hedging instruments.
BlackRock has developed investment products which respond to investors' needs
and has been responsible for several major innovations in closed-end funds.
BlackRock introduced the first closed-end mortgage fund, the first taxable and
tax-exempt closed-end funds to offer a finite term, the first closed-end fund to
achieve a AAAf rating by Standard & Poor's, and the first closed-end fund to
invest primarily in North American Government securities. BlackRock's closed-end
funds currently have dividend reinvestment plans which are designed to provide
an ongoing source of demand for the stock in the secondary market. BlackRock
manages a ladder of alternative investment vehicles, with each fund having
specific investment objectives and policies.
In view of our continued desire to provide a high level of service to all our
shareholders, BlackRock maintains a toll-free number for your questions. The
number is (800) 227-7BFM (7236). We encourage you to call us with any questions
you may have about your BlackRock funds and thank you for the continued trust
you place in our abilities.
IF YOU WOULD LIKE FURTHER INFORMATION,
PLEASE CALL BLACKROCK AT (800) 227-7BFM
OR CONSULT WITH YOUR FINANCIAL ADVISOR.
19
<PAGE>
DIRECTORS
Laurence D. Fink, Chairman
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
James Clayburn La Force, Jr. THE [LOGO]
Ralph L. Schlosstein
OFFICERS
Ralph L. Schlosstein, President NEW YORK INSURED
Keith T. Anderson, Vice President
Michael C. Huebsch, Vice President
Robert S. Kapito, Vice President MUNICIPAL 2008
Kevin Klingert, Vice President
Richard M. Shea, Vice President/Tax
Henry Gabbay, Treasurer TERM TRUST INC.
James Kong, Assistant Treasurer
Karen H. Sabath, Secretary -------------------------------
INVESTMENT ADVISER
BlackRock Financial Management, Inc. SEMI-ANNUAL REPORT
345 Park Avenue
New York, NY 10154 JUNE 30, 1996
(800) 227-7BFM
ADMINISTRATOR
Princeton Administrators, L.P.
P.O. Box 9095
Princeton, NJ 08543-9095
(800) 688-0928
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM
AUCTION AGENT
Bankers Trust Company
4 Albany Street
New York, NY 10006
INDEPENDENT AUDITORS
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434
LEGAL COUNSEL [ILLUSTRATION]
Skadden, Arps, Slate, Meagher & Flom
919 Third Avenue
New York, NY 10022
The accompanying financial statements as of
June 30, 1996 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 NEW YORK INSURED
MUNICIPAL 2008 TERM TRUST INC.
c/o Princeton Administrators, L.P.
P.O. Box 9095
Princeton, NJ 08543-9095
(800) 227-7BFM
09247L 10 7
09247L 30 5
09247L 20 6
