- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------
November 30, 1995
Dear Shareholder,
Since the inception of The BlackRock Florida Investment Quality Municipal
Trust in 1993, the market for investments in fixed income securities has
witnessed an unprecedented amount of interest rate volatility, which has changed
the landscape for fixed income investors. 1995 has been a great year for
investments in the bond market following the disappointments of 1994, as yields
have declined and the value of fixed income securities has increased
dramatically.
Looking forward, we maintain a positive outlook for the market's performance
in 1996. The economy currently appears to be growing at a steady rate and
inflation appears to be under control. Market participants are beginning to
agree that the Federal Reserve has achieved the "soft landing" that they set out
to accomplish through a series of interest rate increases last year, and are
optimistic for a further ease in the Fed's monetary policy should a budget
accord emphasizing fiscal restraint be reached in Washington.
BlackRock Financial Management, Inc. is completing its first year as part of
PNC Bank Corporation, becoming an essential part of PNC's Asset Management Group
by taking a leadership role in their fixed income management operations. We have
witnessed consistent growth of our assets under management, which now stand at
approximately $34 billion, as both retail and institutional fixed income
investors continue to recognize the value of our risk management capabilities
and long term investment philosophy.
We look forward to maintaining your respect and confidence and to serving
your financial needs in the coming year.
Sincerely,
Laurence D. Fink Ralph L. Schlosstein
Chairman President
1
<PAGE>
November 30, 1995
Dear Shareholder:
We are pleased to present the annual report for The BlackRock Florida
Investment Quality Municipal Trust ("RFA" or "the Trust") for the fiscal year
ended October 31, 1995. We would like to take this opportunity to review the
Trust's strong performance over its fiscal year, from both a stock price and net
asset value (NAV) perspective, as well as to review the Trust's portfolio
strategy and the opportunities available to the Trust in the current lower
interest rate environment.
The Trust is a diversified, actively managed closed-end bond fund whose
investment objective is to provide high current income exempt from both regular
federal income tax and Florida intangible personal property tax consistent with
the preservation of capital. The Trust seeks to achieve this objective by
investing in investment grade (rated "AAA" to "BBB" by one of the major ratings
agencies or of equivalent quality) municipal debt securities issued by local
municipalities throughout Florida.
The Trust's shares are traded on the American Stock Exchange under the
symbol RFA. The table below summarizes the performance of the Trust's stock
price and NAV over the fiscal year:
----------------------------------------------------
10/31/95 10/31/94 Change High Low
- --------------------------------------------------------------------------------
Stock Price $12.625 $10.375 21.69% $12.625 $9.875
- --------------------------------------------------------------------------------
Net Asset Value (NAV) $14.01 $11.69 19.85% $14.05 $10.55
- --------------------------------------------------------------------------------
Premium/(Discount) to NAV (9.89%) (11.25%) 1.36% (2.84%) (15.04%)
- --------------------------------------------------------------------------------
The Fixed Income Markets
The dramatic rally in the capital markets, which caused interest rates to
fall and prices of fixed income securities to increase throughout late 1994 and
1995, has changed the market landscape for fixed income investors. The rally in
the Treasury market, sparked by a slowdown in economic growth and modest
inflation data, began during the fourth quarter of 1994 and accelerated through
the first, second and third quarters of 1995. The perceived threat of inflation
diminished as economic reports became increasingly pessimistic during the second
quarter. With investor confidence in the value of fixed income securities
renewed, market demand accelerated.
The municipal debt market has posted strong performance in 1995. Yields on
municipal securities have declined dramatically from their fourth quarter 1994
levels, led by a 94 basis point drop (0.94%) in the yield on AAA 10-year General
Obligation securities from 5.67% on October 31, 1994 to 4.73% on October 31,
1995. A relatively light amount of new issuance this year has also encouraged
the rise in price for these securities.
Concerns over tax reform proposals were apparent for much of this year.
Discussions of a "flat tax" on investment income dampened some investor demand
for longer maturity municipal debt securities. Some versions of the flat tax
proposal would eliminate the current tax benefits of municipal bonds versus
their taxable counterparts. At this time, the yields of municipal securities
imply the expectation for a flat tax on investment income at approximately 23%.
Many economists believe that this may be an overreaction to the actual threat of
tax reform given the numerous obstacles in Washington to this legislation.
However, BlackRock remains attuned to the current effects of tax reform dialogue
on the municipal market, as it may create short term dislocations and present
potential buying opportunities for the Trust.
2
<PAGE>
The Florida economy continues to expand into the service industry, becoming
less dependent on tourism. Housing starts and construction have been strong and
state employment has increased 3.4% over the past year, leading many analysts to
be optimistic for continued growth. The state municipal market benefited from a
relatively light year for new issuance and strong retail demand, causing the
market to perform well relative to the national market. We feel that the
expanding state economy will provide a positive environment for continued strong
performance of Florida issues in 1996.
The Closed-End Bond Fund Industry
Due to the strength of the municipal markets this year, closed-end municipal
funds have posted dramatic returns on a net asset value basis in 1995 and often
outperformed taxable funds for the year. The BlackRock Florida Investment
Quality Municipal Trust ranked 14 out of the entire universe of 354 closed-end
bond funds for the year ending October 31, 1995, posting a 12-month return on
NAV of 27.37% (vs. the average of 17.23%), as reported by Lipper Analytical
Services, Inc.
However, the discount of RFA's stock price to its NAV, like its peers,
indicates that investor interest in the closed-end bond fund market still
remains subdued. Lipper Analytical notes that approximately 74% of taxable
closed-end bond funds and 93% of municipal closed-end bond funds were trading at
discounts to net asset value on October 31, 1995. As investors continue to focus
on the rallying stock market over other investment vehicles, the discount to NAV
of RFA persists.
The Trust's Portfolio and Investment Strategy
BlackRock Financial Management Inc. manages the Trust's portfolio to
diversify exposure to various sectors, issuers, revenue sources and security
types. BlackRock's investment strategy emphasizes a relative value approach,
rotating sectors to benefit from changing market conditions, and controlling the
interest rate sensitivity of the Trust relative to a predetermined benchmark. We
remain attentive to changes in the market in order to capitalize on
opportunities within specific issues or sectors.
Our investment strategy at the current time reflects the steepness of the
AAA municipal yield curve, and the potential for a further decline in rates. The
following charts detail the current asset and credit quality allocations of the
portfolio, in comparison to the portfolio on October 31, 1994. Our emphasis on
certain sectors of the state municipal market has changed over the year. For
instance, the Trust has decreased its exposure to transportation bonds, in favor
of more lease revenue issues. Also, in terms of credit quality bias, we continue
to favor AAA and higher credit quality securities.
Sector Breakdown
----------------------------------------------------------
Sector October 31, 1995 October 31, 1994
----------------------------------------------------------
Power 20% 24%
----------------------------------------------------------
Lease Revenue 18% 13%
----------------------------------------------------------
City & State 16% 8%
----------------------------------------------------------
Utility 12% 12%
----------------------------------------------------------
Hospital 8% 8%
----------------------------------------------------------
Miscellaneous Revenue 8% 6%
----------------------------------------------------------
Water & Sewer 6% 4%
----------------------------------------------------------
Transportation 4% 12%
----------------------------------------------------------
Sales Tax 4% 9%
----------------------------------------------------------
Housing 4% 4%
----------------------------------------------------------
3
<PAGE>
------------------------------------------------------------------------
Standard & Poor's/Moody's
Credit Rating October 31, 1995 October 31, 1994
------------------------------------------------------------------------
AAA/Aaa 62% 37%
------------------------------------------------------------------------
AA/Aa 23% 36%
------------------------------------------------------------------------
A/A 15% 27%
------------------------------------------------------------------------
We look forward to managing the Trust in the coming fiscal year 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
Florida Investment Quality Municipal Trust. 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, Robert Kapito Kevin Klingert
Vice Chairman and Senior Portfolio Manager Principal and Municipal Portfolio
Manager BlackRock Financial Management, Inc. BlackRock Financial Management,
Inc.
Sincerely,
Robert Kapito Kevin Klingert
Vice Chairman and Principal and Municipal
Senior Portfolio Manager Portfolio Manager
BlackRock Financial Management, Inc. BlackRock Financial Management, Inc.
- --------------------------------------------------------------------------------
The BlackRock Florida Investment Quality Municipal Trust
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Symbol on American Stock Exchange: RFA
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Initial Offering Date: May 28, 1993
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Closing Stock Price as of 10/31/95: $12.625
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Net Asset Value as of 10/31/95: $14.01
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Yield on Closing Stock Price as of 10/31/95 ($12.625)1: 6.24%
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Current Monthly Distribution per Share2: $0.0656
- --------------------------------------------------------------------------------
Current Annualized Distribution per Share2: $0.7872
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1Yield on Closing Stock Price is calculated by dividing the current annualized
distribution per share by the closing stock price per share.
2The distribution is not constant and is subject to change.
4
<PAGE>
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The BlackRock Florida Investment
Quality Municipal Trust
Portfolio of Investments
October 31, 1995
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Principal Option
Rating* Amount Call Value
(Unaudited) (000) Description Provisions+ (Note 1)
- -----------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS-156.0%
Florida-136.6%
<S> <C> <C> <C> <C>
AAA $1,000 Boynton Beach Util. Sys. Rev., 6.25%, 11/01/20, FGIC ...................... 11/02 at 102 $ 1,038,630
A1 1,000 Brevard Cnty. Hlth. Facs., Holmes Regl. Med. Ctr., 5.75%, 10/01/13 ........ 10/03 at 102 976,660
AA 1,000 Broward Cnty., G.O., Ser. C, 5.50%, 1/01/12 ............................... 1/02 at 100 994,230
AAA 1,000 Dade Cnty. Pub. Facs. Rev., Jackson Mem. Hosp., 5.625%, 6/01/13, MBIA ..... 6/03 at 102 1,004,440
Dade Cnty. Sch. Brd., C.O.P., Ser. A, MBIA,
AAA 1,000 5.75%, 5/01/12 ............................................................ 5/04 at 101 1,011,650
AAA 1,000 6.00%, 5/01/14 ............................................................ 5/04 at 101 1,023,320
AAA 1,100 Dade Cnty. Seaport Rev., Ref. 95, 5.75%, 10/01/15, MBIA ................... 10/05 at 102 1,105,676
AA 1,965 Florida Hsg. Fin. Agcy., Sngl. Fam. Mtge., Ser. A, 6.25%, 7/01/11 ......... 7/04 at 102 1,003,677
Florida St. Brd. of Ed., Ser. C,
AA 1,000 5.50%, 6/01/17 ............................................................ 6/05 at 101 978,870
AAA 1,000 5.60%, 6/01/20, MBIA ...................................................... 6/05 at 101 984,310
AA 1,000 5.85%, 6/01/18 ............................................................ 6/03 at 101 1,007,510
AAA 1,000 Florida St. Dept. of Corrections, C.O.P., Okeechobee Correctional Fac.,
6.25%, 3/01/15, AMBAC ..................................................... 3/05 at 102 526,550
AAA 1,000 Florida St. Div. of Bond Fin. Dept., Gen. Svcs. Rev.,
Dept. of Environ. Preservation, Ser. A, 5.75%, 7/01/11, AMBAC ............. 7/05 at 101 1,023,870
Florida St. Mun. Pwr. Agcy. Rev., St. Lucie Proj., FGIC,
AAA 1,000 5.50%, 10/01/12 ........................................................... 10/02 at 102 998,140
AAA 1,000 5.70%, 10/01/16 ........................................................... 10/02 at 102 1,002,990
AAA 1,000 Jacksonville Cap. Impvt. Rev., Gator Bowl Proj., 5.50%, 10/01/14, AMBAC ... 10/04 at 101 990,470
AA 1,000 Jacksonville Elec. Auth. Rev., Johns Rvr., Issue 2, Ser. 8, 5.50%, 10/01/13 10/02 at 101 978,470
Kissimmee Util. Auth. Elec. Sys. Rev., FGIC,
AAA 1,000 5.25%, 10/01/18 ........................................................... 10/03 at 102 945,170
AAA 1,000 5.50%, 10/01/15 ........................................................... 10/03 at 102 987,900
AAA 1,000 Lee Cnty. Tourist Dev. Tax Rev., 5.75%, 10/01/16, FGIC .................... 10/03 at 102 1,001,180
AA- 1,000 Orlando Utils. Comn. Wtr. & Elec. Rev., Ser. D, 5.50%, 10/01/20 ........... 10/99 at 100 959,440
AAA 1,000 Seminole Cnty. Sch. Brd., C.O.P., Ser. A, 6.125%, 7/01/14, MBIA ........... 7/04 at 102 1,031,010
----------
21,574,163
----------
Puerto Rico-19.4%
Puerto Rico Elec. Pwr. Auth. Rev.,
A- 1,000 Ser. U, 6.00%, 7/01/14 .................................................... 7/04 at 102 1,018,370
A- 1,000 Ser. T, 6.375%, 7/01/24 ................................................... 7/04 at 102 1,047,950
A 1,000 Puerto Rico Pub. Bldg. Auth. Gtd. Pub. Ed. & Hlth. Facs., Ser. M,
5.75%, 7/01/15 ............................................................ 7/03 at 101 994,000
----------
3,060,320
----------
Total long-term investments (cost $23,639,967) ............................ 24,634,483
----------
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Principal Option
Rating* Amount Call Value
(Unaudited) (000) Description Provisions+ (Note 1)
- -----------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT**-2.5%
<S> <C> <C> <C> <C>
VMIG1 $ 400 New York City Mun. Wtr. Fin. Auth. Rev., 3.90%, 11/01/95, FGIC, FRDD
(cost $400,000) ....................................................... N/A $ 400,000
----------
Total Investments-158.5% (cost $24,039,967) ............................. 25,034,483
Liabilities in excess of other assets-(4.7)% ............................ (746,049)
Liquidation value of preferred stock-(53.8)% ............................ (8,500,000)
----------
Net Assets Applicable to Common Shareholders-100% ....................... $15,788,434
===========
<FN>
- ----------------
*Rating: using the higher of Standard & Poor's, Moody's or Fitch's rating.
**For purposes of amortized cost valuation, the maturity date of these instruments is considered to be the 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 prices of the earliest option call or redemption. There may be other call provisions
at varying prices at later dates.
</FN>
</TABLE>
-------------------------------------------------------------
Key to Abbreviations
AMBAC- American Municipal Bond Assurance Corporation
C.O.P.- Certificate of Participation
FGIC- Financial Guaranty Insurance Company
FRDD- Floating Rate Daily Demand
G.O.- General Obligation Bond
MBIA- Municipal Bond Insurance Association
-------------------------------------------------------------
See Notes to Financial Statements.
6
<PAGE>
(Left Column)
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The BlackRock Florida Investment
Quality Municipal Trust
Statement of Assets and Liabilities
October 31, 1995
- -----------------------------------------------------------------
Assets
Investments, at value (cost $24,039,967) (Note 1) .. $25,034,483
Interest receivable ................................ 348,015
Deferred organization expenses and other assets .... 8,291
-----------
25,390,789
-----------
Liabilities
Payable for investments purchased .................. 987,451
Due to custodian ................................... 72,085
Advisory fee payable (Note 2) ...................... 7,423
Dividends payable-preferred stock .................. 4,542
Dividends payable-common stock ..................... 4,275
Administration fee payable (Note 2) ................ 2,121
Other accrued expenses ............................. 24,458
-----------
1,102,355
-----------
Net Investment Assets .............................. $24,288,434
===========
Net investment assets were comprised of:
Common stock:
Par value (Note 4) ............................. $ 11,271
Paid-in capital in excess of par ............... 15,585,445
Preferred stock (Note 4) ........................... 8,500,000
-----------
24,096,716
===========
Undistributed net investment income ................ 18,969
Accumulated net realized loss ...................... (821,767)
Net unrealized appreciation ........................ 994,516
-----------
Net investment assets, October 31, 1995 ............ $24,288,434
===========
Net assets applicable to common shareholders ....... $15,788,434
===========
Net asset value per share:
($15,788,434 / 1,127,093 shares of
common stock issued and outstanding) ............. $14.01
======
See Notes to Financial Statements.
(Right Column)
- -----------------------------------------------------------------
The BlackRock Florida Investment
Quality Municipal Trust
Statement of Operations
Year Ended October 31, 1995
- -----------------------------------------------------------------
Net Investment Income
Income
Interest and discount earned ..................... $1,387,064
----------
Expenses
Investment advisory .............................. 78,195
Auction Agent .................................... 30,000
Administration ................................... 22,341
Shareholder reports .............................. 20,000
Directors ........................................ 12,000
Audit ............................................ 8,500
Transfer agent ................................... 8,000
Legal ............................................ 5,000
Custodian ........................................ 2,000
Miscellaneous .................................... 26,495
----------
Total expenses ................................... 212,531
----------
Net investment income .............................. 1,174,533
----------
Realized and Unrealized Gain
on Investments (Note 3)
Net realized gain on investments ................... 122,275
Net change in unrealized appreciation on
investments ...................................... 2,541,601
----------
Net gain on investments ............................ 2,663,876
----------
Net Increase In Net Investment
Assets Resulting from Operations ................... $3,838,409
==========
See Notes to Financial Statements.
7
<PAGE>
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The BlackRock Florida Investment Quality Municipal Trust
Statements of Changes in Net Investment Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Increase (Decrease)in Net Investment Assets Year Ended October 31,
-----------------------------
1995 1994
---- ----
Operations:
<S> <C> <C>
Net investment income ....................................................... $ 1,174,533 $ 1,102,007
Net realized gain (loss) on investments ..................................... 122,275 (944,016)
Net change in unrealized appreciation (depreciation) on investments ......... 2,541,601 (2,461,351)
----------- -----------
Net increase (decrease) in net investment assets resulting from operations .. 3,838,409 (2,303,360)
Dividends and distributions:
To common shareholders from net investment income ........................... (887,203) (887,219)
To preferred shareholders from net investment income ........................ (337,178) (222,367)
To common shareholders from capital gains ................................... - (43,393)
To preferred shareholders from capital gains ................................ - (9,938)
Capital stock transactions:
Capital charge with respect to initial public offering of shares ............ - (3,500)
----------- -----------
Total increase (decrease) ................................................. 2,614,028 (3,469,777)
Net Investment Assets
Beginning of year ............................................................. 21,674,406 25,144,183
----------- -----------
End of year ................................................................... $24,288,434 $21,674,406
=========== ===========
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
The BlackRock Florida Investment Quality Municipal Trust
Financial Highlights
- ---------------------------------------------------------------------------------------------------------------
For the
Period
For the Year Ended October 31, June 4, 1993*
------------------------------ Through
PER SHARE OPERATING PERFORMANCE: 1995 1994 October 31, 1993
---- ---- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period ................................ $ 11.69 $ 14.77 $ 14.10
-------- -------- --------
Net investment income ............................................. 1.05 .98 .31
Net realized and unrealized gain (loss) on investments ............ 2.36 (3.02) .86
-------- -------- --------
Net increase (decrease) from investment operations .................. 3.41 (2.04) 1.17
-------- -------- --------
Dividends from net investment income to:
Common shareholders ............................................... (.79) (.79) (.20)
Preferred shareholders ............................................ (.30) (.20) (.05)
-------- -------- --------
Total dividends ................................................... (1.09) (.99) (.25)
-------- -------- --------
Distributions from capital gains to:
Common shareholders ............................................... - (.04) -
Preferred shareholders ............................................ - (.01) -
-------- -------- --------
Total distributions ............................................... - (.05) -
-------- -------- --------
Capital charge with respect to issuance of common and preferred stock - - (.25)
-------- -------- --------
Net asset value, end of period** .................................... $ 14.01 $ 11.69 $ 14.77#
======== ======== ========
Per share market value, end of period** ............................. $ 12.625 $ 10.375 $ 14.00
======== ======== ========
TOTAL INVESTMENT RETURN+: ........................................... 29.29% (20.98%) .63%
RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS++:
Expenses ............................................................ 1.44% 1.50% 1.12%+++
Net investment income ............................................... 7.96% 7.34% 5.40%+++
SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands) ............ $ 14,759 $ 15,015 $15,791
Portfolio turnover rate ........................................... 112% 206% 13%
Net assets of common shareholders, end of period (in thousands) ..... $ 15,788 $ 13,174 $ 16,644
Asset coverage per share of preferred stock, end of period .......... $ 71,437 $127,494 $147,907
Preferred stock outstanding (in thousands) .......................... $ 8,500 $ 8,500 $ 8,500
<FN>
- -----------
* Commencement of investment operations.
** Net asset value and market value are published in The Wall Street Journal each Monday.
# Net asset value immediately after the closing of the first public offering was $14.01.
+ Total investment return is calculated assuming a purchase of common stock at the current market value on the first day and a sale
at the current market value 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. This calculation does not reflect
brokerage commissions. Total investment returns for periods of less than one year are not annualized.
++ Ratios 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. Ratios do not reflect the effect of dividend payments to preferred shareholders.
+++ Annualized.
The information above represents the audited operating performance 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 the Trust's common shares.
</FN>
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
(Left Column)
- --------------------------------------------------------------------------------
The BlackRock Florida Investment
Quality Municipal Trust
Notes to Financial Statements
- --------------------------------------------------------------------------------
Note 1. Accounting
Policies
The BlackRock Florida Investment Quality Municipal Trust (the "Trust") was
organized in Massachusetts on April 15, 1993 as a non-diversified closed-end
management investment company. The Trust had no transactions until May 27, 1993
when it sold 7,093 shares of common stock for $100,012 to BlackRock Financial
Management, Inc., (the "Adviser"). Investment operations commenced on June 4,
1993.
The Trust's investment objective is to provide high current income exempt
from regular federal income tax and Florida intangible personal property tax
consistent with the preservation of capital. 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
(Right Column)
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.
Financial futures contracts, when used by the Trust, help in maintaining a
targeted duration. Duration is a measure of the price sensitivity of a security
or a portfolio to relative changes in interest rates. For instance, a duration
of "one" means that a portfolio's or a security's price would be expected to
change by approximately one percent with a one percent change in interest rates,
while a duration of "five" would imply that the price would move approximately
five percent in relation to a one percent change in interest rates. Futures
contracts can be sold to effectively shorten an otherwise longer duration
portfolio. In the same sense, futures contracts can be purchased to lengthen a
portfolio that is shorter than its duration target. Thus, by buying or selling
futures contracts, the Trust can effectively "hedge" more volatile positions so
that changes in interest rates do not change the duration of the portfolio
unexpectedly.
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
10
<PAGE>
(Left Column)
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. The Trust is also at risk of not being able to
enter into a closing transaction for the futures contract because of an illiquid
secondary market. In addition, since futures are used to shorten or lengthen a
portfolio's duration, there is a risk that the portfolio may have temporarily
performed better without the hedge or that the Trust may lose the opportunity to
realize appreciation in the market price of underlying positions.
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 and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis and the Trust accretes original issue discounts or amortizes
premium on securities purchased using the interest method.
Federal Income Taxes: For federal income tax purposes, the Trust is treated as a
separate taxpaying entity. It is the intent of the Trust to continue to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its 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.
Deferred Organization Expenses: A total of $16,000 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.
(Right Column)
Note 2. Agreements
The Trust has an Investment Advisory Agreement with the Adviser and an
Administration Agreement with Prudential Mutual Fund Management, Inc. ("PMF"),
an indirect, wholly-owned subsidiary of The Prudential Insurance Company of
America.
The investment 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 PMF 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. PMF pays occupancy and certain clerical
and accounting costs of the Trust. The Trust bears all other costs and expenses.
On February 28, 1995, the Adviser was acquired by PNC Bank, N.A. Following
acquisition, the Adviser has become a wholly-owned corporate subsidiary of PNC
Asset Management Group, Inc., the holding company for PNC's asset management
businesses.
Note 3. Portfolio
Securities
Purchases and sales of investment securities, other than short-term investments,
for the year ended October 31, 1995 aggregated $26,226,030 and $25,489,795,
respectively.
The federal income tax basis of the Trust's investments at October 31, 1995
was $24,083,402 and, accordingly, net unrealized appreciation for federal income
tax purposes was $951,081 (gross unrealized appreciation $960,793; gross
unrealized depreciation $9,712).
For federal income tax purposes, the Trust had a capital loss carryforward
at October 31, 1995 of approximately $794,000 which will expire in 2002. Such
carryforward amount is after realization of approximately $151,000 in net
taxable gains recognized during the fiscal year ended October 31, 1995.
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
1,127,093 shares outstanding at October 31, 1995, the Adviser owned 7,093
shares.
11
<PAGE>
(Left Column)
Offering costs ($92,138) incurred in connection with the Trust's
underwriting of common stock have been charged to paid-in capital in excess of
par of the common stock.
The Trust may classify or reclassify any unissued shares of common stock
into one or more series of preferred stock. On July 29, 1993 the Trust
reclassified 170 shares of common stock and issued a series of Auction Market
Preferred Stock ("Preferred Stock") Series R7. The Preferred Stock had a
liquidation value of $50,000 per share plus any accumulated but unpaid
dividends. On May 16, 1995 shareholders approved a proposal to split each share
of the Trust's Auction Rate Municipal Preferred Stock into two shares and
simultaneously reduce each share's liquidation preference from $50,000 to
$25,000. The stock split occurred on July 24, 1995.
The underwriting discounts ($127,500) and offering costs ($75,657) incurred
in connection with the Preferred Stock offering have been charged to paid-in
capital in excess of par of the common stock.
Dividends on Series R7 are cumulative at a rate which is resetevery 7 days
based on the results of an auction. Dividend rates ranged from 3.25% to 6.125%
during the year ended October 31, 1995.
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
(Right Column)
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
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
Subsequent to October 31, 1995, the Board of Directors of the Trust declared
dividends from undistributed earnings of $0.0656 per common share payable
November 30, 1995 to shareholders of record on November 15, 1995.
For the period November 1, 1995 through November 30, 1995 dividends declared
on Preferred Stock totalled $26,677 in aggregate for the outstanding Preferred
Stock.
12
<PAGE>
Note 6. Quarterly Data
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/
Net realized and decrease in
unrealized net investment Dividends
Net investment gains (losses) on assets resulting Common shares Preferred shares**
income investments from operations Period
Per Per Per Per Per Share price of end
Quarterly Total Common Common Common Common Common Common stock net asset
period income Amount share Amount share Amount share Amount share Amount share High Low value
--------- ------ ------------- -------------- -------------- ------------- ------------ -------------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
November 1, 1993
to January 31, 1994 330,290 278,523 .25 280,267 .25 558,790 .50 265,205 .24 49,514 .05 14 5/8 12 7/8 14.98
February 1, 1994
to April 30, 1994 334,707 280,925 .25 (2,700,037) (2.39) (2,419,112) (2.14) 221,800 .19 48,841 .04 14 3/8 11 1/2 12.60
May 1, 1994
to July 31, 1994 328,452 267,797 .24 411,677 .37 679,474 .61 221,805 .20 64,736 .06 12 1/8 11 1/2 12.95
August 1, 1994
to October 31, 1994 334,643 274,762 .24 (1,397,274) (1.25) (1,122,512) (1.01) 221,802 .20 69,214 .06 12 7/8 10 11.69
November 1, 1994
to January 31, 1995 346,479 305,422 .27 988,099 .88 1,293,521 1.15 221,812 .20 85,796 .08 11 1/4 9 7/8 12.56
February 1, 1995
to April 30, 1995 347,456 294,175 .26 609,714 .54 903,889 .80 221,792 .19 82,856 .07 12 1/2 11 1/8 13.10
May 1, 1995
to July 31, 1995 346,623 291,974 .26 314,572 .28 606,546 .54 221,801 .20 86,915 .08 12 5/8 11 3/4 13.36
August 1, 1995
to October 31, 1995 346,506 282,962 .26 751,491 .66 1,034,453 .92 221,798 .20 81,611 .07 12 5/8 11 3/4 14.01
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
**For the year ended October 31, 1995, the average annualized rate paid to preferred shareholders was 3.97%.
</FN>
</TABLE>
13
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
The Shareholders and Board of Directors of
The BlackRock Florida Investment Quality Municipal Trust:
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of The BlackRock Florida Investment Quality
Municipal Trust as of October 31, 1995 and the related statements of operations
for the year then ended and of changes in net investment assets for each of the
two years in the period then ended and the financial highlights for each of the
two years in the period then ended and for the period June 4, 1993 (commencement
of investment operations) to October 31, 1993. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at October
31, 1995 by correspondence with the custodian and brokers; where replies were
not received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of The BlackRock
Florida Investment Quality Municipal Trust at October 31, 1995, and the results
of its operations, the changes in its net investment assets and its financial
highlights for the respective stated periods in conformity with generally
accepted accounting principles.
Deloitte & Touche LLP
New York, New York
December 8, 1995
14
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
TAX INFORMATION
- --------------------------------------------------------------------------------
We are required by the Internal Revenue Code to advise you within 60 days of
the Trust's fiscal year end (October 31, 1995) as to the federally tax-exempt
interest dividends received by you during such fiscal year. Accordingly, we are
advising you that all dividends paid by the Trust during the fiscal year were
Federal and Florida intangible personal property tax-exempt interest dividends.
- --------------------------------------------------------------------------------
DIVIDEND REINVESTMENT PLAN
- --------------------------------------------------------------------------------
Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders will automatically have all distributions of dividends and capital
gains reinvested by State Street Bank & Trust Company (the "Plan Agent") in
Trust shares pursuant to the Plan unless an election is made to receive such
amounts in cash. The Plan Agent will affect purchases of shares under the Plan
in the open market. Shareholders who elect not to 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 trasfer 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 American
Stock Exchange or elsewhere, for the participants' accounts. The Trust will not
issue any new shares in connection with 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, state or local income taxes 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 by the Plan
Agent upon at least 90 days' written notice to all shareholders of the Trust.
The Plan may be terminated by the Plan Agent or the Trust upon at least 30 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 addresses
are on the front of this report.
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
There have been no material changes in the Trust's investment objectives or
policies that have not been approved by the shareholders, or to its charter or
by-laws, or in the principal risk factors associated with investment in the
Trust. There have been no changes in the persons who are primarily responsible
for the day-to-day management of the Trust's portfolio.
15
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
The Trust's Investment Objective
The BlackRock Florida Investment Quality Municipal Trust's investment objective
is to provide high current income exempt from regular Federal income tax and to
provide an exemption from Florida intangible personal property taxes consistent
with the preservation of capital.
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 over $34
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 separate accounts for various
clients in the U.S. and overseas. BlackRock is a subsidiary of PNC Asset
Management Group which is a division of PNC Bank, N.A., the nation's twelfth
largest banking organization.
What Can the Trust Invest In?
Under normal conditions, the Trust expects to continue to manage its assets so
that at least 80% of its investments are rated investment grade ("BBB" by
Standard & Poor's and "Baa" by Moody's Investor Services) and up to 20% of its
assets may instead be deemed to be of equivalent credit quality by the Adviser.
The Trust intends to invest substantially all of the assets in a portfolio of
investment grade Florida Municipal Obligations, which include debt obligations
issued by the State of Florida, its political subdivisions, agencies and
instrumentalities and by other qualifying issuers that pay interest which, in
the opinion of the bond counsel of the issuer, is exempt from federal income
tax. Florida Municipal Obligations are issued to obtain funds for various public
functions, including the construction of public facilities, the refinancing of
outstanding obligations, the obtaining of funds for general operating expenses
and for loans to other public institutions and facilities.
What is the Adviser's Investment Strategy?
The Adviser will manage the assets of the Trust in accordance with the Trust's
investment objective and policies to seek to achieve its objective by investing
in investment grade Florida Municipal Obligations. The Adviser actively manages
the assets in relation to market conditions and interest rate changes. Depending
on yield and portfolio allocation considerations, the Adviser may choose to
invest a portion of the Trust's assets in securities which pay interest that is
subject to AMT (alternative minimum tax). The Trust intends to emphasize
investments in Florida Municipal Obligations with long-term maturities and
expects to maintain an average portfolio maturity of 15-20 years, but the
average maturity may be shortened or lengthened from time to time depending on
market conditions.
Under current market conditions the use of leverage increases the income earned
by the Trust. The Trust employs leverage primarily through the issuance of
preferred stock. Preferred stockholders will receive dividends based on
short-term rates in exchange for allowing the Trust to borrow additional assets.
These assets will be invested in longer-term assets which typically offer higher
interest rates and the difference between the cost of the dividends paid to
preferred stockholders and the interest earned on the longer-term securities
will provide higher income levels for common stockholders in most interest rate
environments. The Trust issued preferred stock to leverage the portfolio at
approximately 35% of total assets. See "Leverage Considerations in the Trust"
below.
How Are the Trust's Shares Purchased and Sold? Does the Trust Pay Dividends
Regularly?
The Trust's shares are traded on the American 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 fund through the Trust's transfer agent, Boston
Financial Data Services. 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.
16
<PAGE>
Leverage Considerations in the Trust
Leverage increases the duration (or price sensitivity of the net assets with
respect to changes in interest rates) of the Trust, which can improve the
performance of the fund in a declining rate environment, but can cause net
assets to decline faster in a rapidly rising interest rate environment. The
Trust may reduce, or unwind, the amount of leverage employed should BlackRock
consider that reduction to be in the best interests of the Trust. BlackRock's
portfolio managers continuously monitor and regularly review the Trust's use of
leverage and maintain the ability to unwind the leverage if that course is
chosen.
Special Considerations and Risk Factors Relevant to the Trust
The Trust is intended to be a long-term investment and is not a short-term
trading vehicle.
Investment Objective. Although the objective of the Trust is to provide high
current income exempt from regular Federal income tax and to provide an
exemption from Florida intangible personal property taxes consistent with the
preservation of capital, there can be no assurance that this objective will be
achieved.
Dividend Considerations. The income and dividends paid by the Trust are likely
to vary over time as fixed income market conditions change. Future dividends may
be higher or lower than the dividend the Trust is currently paying.
Leverage. The Trust utilizes leverage through 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 American Stock Exchange (AMEX symbol: RFA) 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.
Investment Grade Municipal Obligations. 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.
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. These securities involve 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.
17
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL 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 the Trust.
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 New York Times 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.
18
<PAGE>
- --------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGEMENT, INC.
SUMMARY OF CLOSED-END FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Taxable Trusts
- --------------------------------------------------------------------------------------------
Stock Maturity
Perpetual Trusts Symbol Date
------ --------
<S> <C> <C>
The BlackRock Income Trust Inc. BKT N/A
The BlackRock North American Government Income Trust Inc. BNA N/A
Term Trusts
The BlackRock 1998 Term Trust Inc. BBT 12/98
The BlackRock 1999 Term Trust Inc. BNN 12/99
The BlackRock Target Term Trust Inc. BTT 12/00
The BlackRock 2001 Term Trust Inc. BLK 06/01
The BlackRock Strategic Term Trust Inc. BGT 12/02
The BlackRock Investment Quality Term Trust Inc. BQT 12/04
The BlackRock Advantage Term Trust Inc. BAT 12/05
The BlackRock Broad Investment Grade 2009 Term Trust Inc. BCT 12/09
Tax-Exempt Trusts
- ---------------------------------------------------------------------------------------------
Stock Maturity
Perpetual Trusts Symbol Date
------ --------
The BlackRock Investment Quality Municipal Trust Inc. BKN N/A
The BlackRock California Investment Quality Municipal Trust Inc. RAA N/A
The BlackRock Florida Investment Quality Municipal Trust RFA N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc. RNJ N/A
The BlackRock New York Investment Quality Municipal Trust Inc. RNY N/A
Term Trusts
The BlackRock Municipal Target Term Trust Inc. BMN 12/06
The BlackRock Insured Municipal 2008 Term Trust Inc. BRM 12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc. BFC 12/08
The BlackRock Florida Insured Municipal 2008 Term Trust BRF 12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc. BLN 12/08
The BlackRock Insured Municipal Term Trust Inc. BMT 12/10
</TABLE>
If you would like further information
please call BlackRock at (800) 227-7BFM (7236)
or consult with your financial advisor.
19
<PAGE>
(Left Column)
BlackRock
Directors
Laurence D. Fink, Chairman
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
James Clayburn La Force, Jr.
Ralph L. Schlosstein
Officers
Ralph L. Schlosstein, President
Keith T. Anderson, Vice President
Michael C. Huebsch, Vice President
Robert S. Kapito, Vice President
Kevin Klingert, Vice President
Richard M. Shea, Vice President/Tax
Henry Gabbay, Treasurer
James Kong, Assistant Treasurer
Karen H. Sabath, Secretary
Investment Adviser
BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
(800) 227-7BFM
Administrator
Prudential Mutual Fund Management, Inc.
One Seaport Plaza
New York, NY 10292
Custodian and Transfer Agent
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM
Auction Agent Bankers Trust Company
4 Albany Street
New York, NY 10006
Independent Auditors
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434
Legal Counsel
Skadden, Arps, Slate, Meagher & Flom
919 Third Avenue
New York, NY 10022
This report is for shareholder information.
This is not a prospectus intended for use in
the purchase or sale of any securities.
The BlackRock Florida Investment
Quality Municipal Trust
c/o Prudential Mutual Fund Management Inc.
32nd Floor
One Seaport Plaza
New York, NY 10292
(800) 227-7BFM
09247B-10-9
09247B-20-8
(Right Column)
The BlackRock
Florida
Investment Quality
Municipal Trust
- ---------------------------------------
Annual Report
October 31, 1995
