- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------
November 30, 1996
Dear Trust Shareholder:
Interest rate volatility in the domestic fixed income markets was once
again a major factor over the past twelve months. Significant swings in the pace
of U.S. economic growth influenced the bond market's performance, as every
release of economic data led to market participant speculation regarding the
direction of Federal Reserve monetary policy.
Despite strong growth and rising wage pressures, the Fed's decision not to
raise interest rates at their two most recent policy meetings has markedly
increased the stakes in the bond market. The rationale behind the Fed's decision
not to raise interest rates appears to focus on the benign inflation data
released during the third quarter. Should economic growth slow and inflation
remain benign, the Fed will be proven correct in their inaction and the market
would be expected to rally significantly. On the other hand, signs of a stronger
economy could result in weaker bond prices as the likelihood of a Fed tightening
would increase.
BlackRock maintains a positive view on the bond market. On balance, the
outlook for moderate inflation remains intact, suggesting that further declines
in interest rates are likely. In addition to this favorable fundamental
backdrop, foreign demand for U.S. bonds has increased due to the renewed
attractiveness of the U.S. bond market on a global basis.
This annual report is designed to help you stay informed about your
investment and represents our ongoing commitment to improving our communication
with you. We hope you find this report useful now and in the future. We
appreciate your confidence and look forward to helping you reach your long-term
investment goals.
Sincerely,
/s/Laurence D. Fink /s/Ralph L. Schlosstein
- -------------------- -----------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President
1
<PAGE>
November 30, 1996
Dear Shareholder:
We are pleased to present the annual report for The BlackRock Florida
Investment Quality Municipal Trust ("the Trust") for the fiscal year ended
October 31, 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, actively managed closed-end bond fund
whose shares are traded on the American Stock Exchange under the symbol "RFA".
The Trust's investment objective is to provide high current income that is
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
a major rating agency or of equivalent quality) municipal debt securities issued
by local municipalities throughout Florida, and certain territories and
possessions of the United States.
The table below summarizes the performance of the Trust's stock price and
net asset value over the period:
<TABLE>
<CAPTION>
=================================================================================================
10/31/96 10/31/95 CHANGE HIGH LOW
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Stock Price $12.25 $12.625 (2.97%) $13.375 $11.875
- -------------------------------------------------------------------------------------------------
Net Asset Value (NAV) $14.15 $14.01 1.00% $14.60 $13.23
=================================================================================================
</TABLE>
THE FIXED INCOME MARKETS
Significant swings in the pace of U.S. economic growth influenced the
performance of the fixed income markets over the past year. Throughout the
fourth quarter of 1995 and through the first six weeks of 1996, weak
inflationary data and sluggish retail demand spurred two reductions of short
term interest rates totaling 50 basis points (0.50%) by the Federal Reserve to
5.25%. In response to these reductions, as well as the sharp decline in interest
rates throughout 1995, economic growth began to pick up in mid-February and
accelerated throughout the second quarter of 1996. Economic growth as measured
by Gross Domestic Product (GDP) was measured at an annualized 4.7% for the
second quarter of 1996, which led investors to believe that the Federal Reserve
would be forced to raise interest rates for the first time in over a year to
curb the pace of the economy. However, the pace of economic growth has slowed
during the past few months. Softer economic data and continued moderation in the
broad inflation measures during the third quarter of 1996 allowed the Fed to
leave short term interest rates unchanged at their August and September policy
meetings.
After lagging the performance of their taxable counterparts during the
fourth quarter of 1995, year-to-date municipal bond performance as measured by
the Lehman Municipal Bond Index has outpaced that of taxable bonds (represented
by the Lehman Aggregate Index) returning 2.99% versus 2.84% for taxables. This
strong performance is the result of the relative scarcity of new municipal bond
issuance combined with increased retail demand due to the end of "flat tax"
reform concerns. In particular, the third quarter of 1996 witnessed
approximately $60 billion in cash (in the form of calls, maturities and interest
payments) returned to investors and recycled back into the municipal bond
market. As the quarter progressed, however, retail demand moderated in response
to a strengthening stock market and declining interest rate levels. Within the
municipal market, longer maturity municipals outperformed shorter maturities for
the year ended October 31, as the yield of the 30-year AAA General Obligation
(G.O.) bond fell four basis points (0.04%) to 5.54% while yields of shorter
maturities rose.
The Florida municipal bond market underperformed the national markets for
the year, as new issue supply has been relatively robust. We currently maintain
a slightly bearish outlook for the Florida economy, which could be facing the
growing pains that accompany an increasing state population, placing a greater
strain on the state's infrastructure and municipal
2
<PAGE>
resources. Additionally, Florida voters passed a proposal in November which
would require tax increases to pass a super-majority (two-thirds) vote,
potentially hampering the fund raising capabilities of local municipalities.
Looking ahead to the fourth quarter and into 1997, the potential for
weakening supply and demand technicals has led us to take a cautious stance on
the municipal market. The recent decline in interest rates may spur new
issuance, which historically is heaviest in the fourth quarter as issuers
complete year-end business. Additionally, although the likelihood of radical tax
reform has diminished since the first half of 1996, we continue to monitor the
possibility of tax cuts over the next year and their potential impact on the
municipal bond market. We view any potential fourth quarter weakness as a
opportunity to add at attractive levels.
THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY
The Trust's portfolio is actively managed to diversify exposure to various
sectors, issuers, revenue sources and security types. BlackRock's investment
strategy emphasizes a relative value approach, which allows the Trust to
capitalize upon changing market conditions by rotating municipal sectors,
credits and coupons.
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 which have higher yields. The degree to which
the Trust can benefit from its use of leverage may affect its ability to pay
high monthly income. The Federal Reserve's decision not to increase short
interest rates at their August and September policy meetings has benefited the
Trust, as short term municipal rates (which determine the Trust's borrowing
costs) fell.
The Trust has generally favored callable premium coupon bonds throughout
the past twelve months, as they characteristically outperform par bonds in a
rising interest rate environment. Though interest rates have fallen recently,
the generally upward trend in rates since the beginning of 1996 proved a
favorable environment to hold these defensively structured bonds. The Trust
maintained its focus in the intermediate portion of the municipal yield curve,
with nearly half of the Trust's holdings having an average life between 8 and 12
years. Additionally, the Trust's credit quality bias emphasizes a barbell
strategy, as the majority of the holdings carry either a "AAA" or "A"/"BBB"
credit rating. Limited municipal bond supply has resulted in the narrowing of
yields spreads between higher- and lower-quality municipal bonds. Should credit
spreads tighten significantly from current levels, thereby reducing the yield
advantage of owning a lower rated bond, we would seek to reallocate some of the
Trust's "BBB" issues into higher rated bonds at tighter spreads.
The following charts compare the Trust's current and October 31, 1995
asset composition and credit quality allocations:
SECTOR BREAKDOWN
================================================================================
SECTOR OCTOBER 31, 1996 OCTOBER 31, 1995
- --------------------------------------------------------------------------------
City, County & State 17% 16%
- --------------------------------------------------------------------------------
Transportation 17% 4%
- --------------------------------------------------------------------------------
Lease Revenue 15% 18%
- --------------------------------------------------------------------------------
Power 13% 20%
- --------------------------------------------------------------------------------
Miscellaneous Revenue 10% 8%
- --------------------------------------------------------------------------------
Water & Sewer 5% 6%
- --------------------------------------------------------------------------------
Hospital 4% 8%
- --------------------------------------------------------------------------------
Sales Tax 4% 4%
- --------------------------------------------------------------------------------
Housing 4% 4%
- --------------------------------------------------------------------------------
University 4% --
- --------------------------------------------------------------------------------
Utility 4% 12%
- --------------------------------------------------------------------------------
Building 3% --
================================================================================
3
<PAGE>
================================================================================
STANDARD & POOR'S/MOODY'S
CREDIT RATING OCTOBER 31, 1996 OCTOBER 31, 1995
- --------------------------------------------------------------------------------
AAA/Aaa 50% 62%
- --------------------------------------------------------------------------------
AA/Aa 21% 23%
- --------------------------------------------------------------------------------
A/A 16% 15%
- --------------------------------------------------------------------------------
BBB/Baa 13% --
================================================================================
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 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 yours,
/s/Robert Kapito /s/Kevin Klingert
- ------------------ -------------------
Robert Kapito Kevin Klingert
Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager
BlackRock Financial Management, Inc. BlackRock Financial Management, Inc.
================================================================================
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
- --------------------------------------------------------------------------------
Symbol on American Stock Exchange: RFA
- --------------------------------------------------------------------------------
Initial Offering Date: May 28, 1993
- --------------------------------------------------------------------------------
Closing Stock Price as of 10/31/96: $12.25
- --------------------------------------------------------------------------------
Net Asset Value as of 10/31/96: $14.15
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 10/31/96 ($12.25)1: 5.88%
- --------------------------------------------------------------------------------
Current Monthly Distribution per Share2: $0.0600
- --------------------------------------------------------------------------------
Current Annualized Distribution per Share2: $0.72
================================================================================
1 Yield on Closing Stock Price is calculated by dividing the current
annualized distribution per share by the closing stock price per share.
2 The distribution is not constant and is subject to change.
<PAGE>
4
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
OPTION
PRINCIPAL CALL
RATING* AMOUNT PROVISIONS+ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--150.2%
Florida--125.1%
Boynton Beach Util. Sys. Rev., FGIC,
<S> <C> <C> <C>
AAA $ 170 Prerefunded, 6.25%, 11/01/20 ..................................... 11/02 at 102 $ 182,162
AAA 830 Unrefunded Balance, 6.25%, 11/01/20 .............................. 11/02 at 102 867,175
A1 1,000 Brevard Cnty. Hlth. Facs., Holmes Regl. Med. Ctr., 5.75%, 10/01/13 . 10/03 at 102 992,090
AAA 1,000 Brevard Cnty. Sch. Brd. C.O.P., Ser. B, 5.50%, 7/01/21, AMBAC ...... 7/06 at 102 977,590
AA 1,000 Broward Cnty., G.O., Ser. C, 5.50%, 1/01/12 ........................ 1/02 at 100 989,300
AAA 1,000 Dade Cnty. Aviation Rev., Miami Int'L Arpt., Ser. C, 5.75%,
10/01/25, MBIA .................................................. 10/05 at 102 1,006,300
AAA 1,000 Dade Cnty. Sch. Brd., C.O.P., Ser. A, 6.00%, 5/01/14, MBIA ......... 5/04 at 101 1,029,590
AAA 1,000 Dade Cnty. Spl. Oblig., Ser. B, Zero Coupon, 10/01/14, AMBAC ....... 10/08 at 71.9 345,710
AAA 1,000 First Florida Gov. Fin. Comn. Rev., Gainsville, Hollywood &
St. Petersburg, 5.75%, 7/01/16, AMBAC ............................ 7/06 at 101 1,012,530
AAA 915 Florida Hsg. Fin. Agcy., Sngl. Fam. Mtge., Ser. A, 6.25%, 7/01/11 .. 7/04 at 102 943,420
AA 1,000 Florida St. Brd. of Ed., Ser. B, 5.875%, 6/01/24 ................... 6/05 at 101 1,013,910
AA 1,000 Florida St. Brd. of Ed., Ser. C, 5.85%, 6/01/18 .................... 6/03 at 101 1,012,700
AAA 500 Florida St. Dept. of Corrections, C.O.P., Okeechobee
Correctional Fac., 6.25%, 3/01/15, AMBAC ......................... 3/05 at 102 527,535
AA 1,000 Florida St. Dept. of Trans., 5.80%, 7/01/21 ........................ 7/05 at 101 1,008,450
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 1,025,000
AAA 1,000 Jacksonville Cap. Impvt. Rev., Gator Bowl Proj.,
5.50%, 10/01/14, AMBAC ........................................... 10/04 at 101 989,570
AAA 1,000 Lee Cnty. Trans. Facs. Rev., 5.75%, 10/01/22, MBIA ................. 10/05 at 102 1,007,930
A 1,000 Orlando & Orange Cnty. Expwy., 5.95%, 7/01/23 ...................... 7/01 at 102 1,004,100
Aa 1,000 Orlando Utils. Comn. Wtr. & Elec. Rev., Ser. D, 5.50%, 10/01/20 .... 10/99 at 100 975,330
AAA 1,000 Seminole Cnty. Sch. Brd., C.O.P., Ser. A, 6.125%, 7/01/14, MBIA .... 7/04 at 102 1,036,150
AAA 1,000 Sunrise Florida Util. Sys. Rev., Ser. A, 5.75%, 10/01/21, AMBAC .... 10/06 at 101 999,040
Baa 1,000 Volusia Cnty. Ed. Fac. Auth. Rev., 6.125%, 10/15/16 ................ 10/06 at 102 1,013,970
----------
19,959,552
----------
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
OPTION
PRINCIPAL CALL
RATING* AMOUNT PROVISIONS+ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
- ------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO -- 25.1%
Puerto Rico Elec. Pwr. Auth. Rev.,
<S> <C> <C> <C> <C>
BBB+ $ 1,000 Ser. T, 6.375%, 7/01/24 ......................................... 7/04 at 102 $ 1,043,710
BBB+ 1,000 Ser. U, 6.00%, 7/01/14 .......................................... 7/04 at 102 1,014,760
Puerto Rico Pub. Bldg. Auth., Gtd. Pub. Ed. & Hlth. Facs., Ser. M,
A 1,000 5.50%, 7/01/21 .................................................. 7/03 at 101.5 952,020
A 1,000 5.75%, 7/01/15 .................................................. 7/03 at 101.5 991,880
----------
4,002,370
----------
Total Long-Term Investments (cost $22,925,188) .................... 23,961,922
----------
SHORT-TERM INVESTMENTS -- 0.8%
AAA 125 New York City Mun. Wtr. Fin. Auth. Rev., 3.60%, 11/01/96, FGIC, FRDD
(cost $125,000) ................................................. N/A 125,000
----------
TOTAL INVESTMENTS**-- 151% (COST $23,050,188) ..................... 24,086,922
Other assets in excess of liabilities--2.3% ....................... 364,255
Liquidation value of preferred stock--(53.3)% ..................... (8,500,000)
-----------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ................ $15,951,177
===========
</TABLE>
<TABLE>
<CAPTION>
=====================================================================================================================
(A) THE FOLLOWING ABBREVIATIONS ARE USED IN PORTFOLIO DESCRIPTIONS:
<S> <C>
AMBAC -- American Municipal Bond Assurance Corporation F.R.D.D. -- Floating Rate Daily Demand**
C.O.P. -- Certificate of Participation G.O. -- General Obligation Bond
FGIC -- Financial Guaranty Insurance Company MBIA -- Municipal Bond Insurance Association
=====================================================================================================================
</TABLE>
- ----------
* 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 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 option
call or redemption. There may be other call provisions at varying prices at
later dates.
6
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT
QUALITY MUNICIPAL TRUST
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $23,050,188) (Note 1)
$ 24,086,922
Cash .......................................... 34,160
Interest receivable ........................... 393,344
Deferred organization expenses and other assets 3,509
------------
24,517,935
------------
LIABILITIES
Advisory fee payable (Note 2) ................. 7,264
Dividends payable-common stock ................ 3,333
Dividends payable-preferred stock ............. 5,624
Administration fee payable (Note 2) ........... 2,075
Other accrued expenses ........................ 48,462
------------
66,758
------------
NET INVESTMENT ASSETS ......................... $ 24,451,177
============
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 ......... 47,180
Accumulated net realized loss ............... (729,453)
Net unrealized appreciation ................. 1,036,734
------------
Net investment assets, October 31, 1996 ..... $ 24,451,177
============
Net assets applicable to common shareholders .. $ 15,951,177
============
Net asset value per share:
($15,951,177 / 1,127,093 shares of
common stock issued and outstanding) ........ $14.15
======
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT
QUALITY MUNICIPAL TRUST
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1996
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest and discount earned .......... $1,392,732
----------
Expenses
Investment advisory ................... 85,753
Auction agent ......................... 25,000
Administration ........................ 24,501
Shareholder reports ................... 20,000
Directors ............................. 12,000
Audit ................................. 10,000
Transfer agent ........................ 10,000
Legal ................................. 5,000
Custodian ............................. 500
Miscellaneous ......................... 36,316
----------
Total expenses ........................ 229,070
----------
Net investment income ................... 1,163,662
----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS (NOTE 3)
Net realized gain on investments ........ 106,968
Net change in unrealized
appreciation/depreciation on investments 42,218
----------
Net gain on investments ................. 149,186
----------
NET INCREASE IN NET INVESTMENT
ASSETS RESULTING FROM OPERATIONS ........ $1,312,848
==========
See Notes to Financial Statements.
7
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED OCTOBER 31,
INCREASE (DECREASE) IN NET INVESTMENT ASSETS ------------------------------
1996 1995
---- ----
<S> <C> <C>
Operations:
Net investment income ................................................. $ 1,163,662 $ 1,174,533
Net realized gain on investments ...................................... 106,968 122,275
Net change in unrealized appreciation (depreciation) on investments ... 42,218 2,541,601
------------ ------------
Net increase in net investment assets resulting from operations ....... 1,312,848 3,838,409
Dividends and distributions:
To common shareholders from net investment income ..................... (827,678) (887,203)
To preferred shareholders from net investment income .................. (310,016) (337,178)
To common shareholders in excess of net realized gain on investments .. (9,017) --
To preferred shareholders in excess of net realized gain on investments (3,394) --
------------ ------------
Total increase ...................................................... 162,743 2,614,028
NET INVESTMENT ASSETS
Beginning of year ........................................................ 24,288,434 21,674,406
------------ ------------
End of year .............................................................. $ 24,451,177 $ 24,288,434
============ ============
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PER SHARE OPERATING PERFORMANCE: FOR THE PERIOD
FOR THE YEAR ENDED OCTOBER 31, JUNE 4, 1993*
-------------------------------------- THROUGH
1996 1995 1994 OCTOBER 31, 1993
---- ---- ---- ----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.01 $ 11.69 $ 14.77 $ 14.10
-------- -------- -------- --------
Net investment income 1.03 1.05 .98 .31
Net realized and unrealized gain (loss) on investments .13 2.36 (3.02) .86
-------- -------- -------- --------
Net increase (decrease) from investment operations 1.16 3.41 (2.04) 1.17
-------- -------- -------- --------
Dividends and distributions:
Dividends from net investment income to:
Common shareholders (.73) (.79) (.79) (.20)
Preferred shareholders (.28) (.30) (.20) (.05)
Distributions from capital gains to:
Common shareholders -- -- (.04) --
Preferred shareholders -- -- (.01) --
Distributions in excess of net realized gain on investments to:
Common shareholders (.01) -- -- --
Preferred shareholders *** -- --
--
-------- -------- -------- --------
Total dividends and distributions (1.02) (1.09) (1.04) (.25)
-------- -------- -------- --------
Capital charge with respect to issuance of common
and preferred stock -- -- -- (.25)
-------- -------- -------- --------
Net asset value, end of period** $ 14.15 $ 14.01 $ 11.69 $ 14.77#
======== ======== ======== ========
Per share market value, end of period** $ 12.25 $ 12.625 $ 10.375 $ 14.00
======== ======== ======== ========
TOTAL INVESTMENT RETURN+: 2.92% 29.29% (20.98%) .63%
RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS++:
Expenses 1.46% 1.44% 1.50% 1.12%+++
Net investment income 7.41% 7.96% 7.34% 5.40%+++
SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands) $ 15,699 $ 14,759 $ 15,015 $ 15,791
Portfolio turnover rate 73% 112% 206% 13%
Net assets of common shareholders, end of period (in thousands) $ 15,951 $ 15,788 $ 13,174 $ 16,644
Asset coverage per share of preferred stock, end of period## $ 71,915 $ 71,437 $127,494 $147,907
Preferred stock outstanding (in thousands) $ 8,500 $ 8,500 $ 8,500 $ 8,500
</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 $0.0030 per common share.
# Net asset value immediately after the closing of the first public offering
was $14.01.
## A stock split occurred on July 24, 1995 (Note 4). +Total investment return
is calculated assuming a purchase of common stock at the current market
value on the first day and a sale at the current market price on the last
day of each period reported. Dividends and distributions are assumed for
purposes of this calculation to be reinvested at prices obtained under the
Trust's dividend reinvestment plan. This calculation does not reflect
brokerage commissions. Total investment returns for periods of less than one
year are not annualized.
++ Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred shares relative to the average net assets of
common shareholders. 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 periods 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.
See Notes to Financial Statements.
9
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT
QUALITY MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1. ACCOUNTING The BlackRock Florida Investment Quality Municipal
POLICIES 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.
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.
RECLASSIFICATION OF CAPITAL ACCOUNTS: The Trust accounts and reports for
permanent differences between financial and tax reporting in accordance with the
American Institute of Certified Public Accountants' Statement of Position 93-2:
Determination, Disclosure and Financial Statement Presentation of Income,
Capital Gain and Return of Capital Distributions by Investment Companies. The
effect of applying this statement for the year ended October 31, 1996 was to
increase accumulated net realized loss and increase undistributed net investment
income by $2,243. Net investment income, net realized gains and net assets were
not affected by this change.
ESTIMATES: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
NOTE 2. AGREEMENTS The Trust has an Investment Advisory Agreement with
BlackRock Financial Management, Inc.(the "Adviser"),
a wholly-owned corporate subsidiary of PNCAsset Management Group, Inc., the
holding company for PNC's asset management businesses and an Administration
Agreement with Prudential Mutual Fund Management, LLC. ("PMF"), an indirect,
wholly-owned subsidiary of The Prudential Insurance Company of America.
10
<PAGE>
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.
NOTE 3. PORTFOLIO Purchases and sales of investment securities, other
SECURITIES than short-term investments, for the year ended
October 31, 1996 aggregated $17,451,970 and
$18,293,468, respectively. The federal income tax
basis of the Trust's investments at October 31, 1996 was $23,050,188 and,
accordingly, net unrealized appreciation for federal income tax purposes was
$1,036,734 (gross unrealized appreciation $1,036,734). For federal income tax
purposes, the Trust had a capital loss carryforward at October 31, 1996 of
approximately $739,000 which will expire in 2002. Accordingly, no capital gain
distribution is expected to be paid to shareholders until net gains have been
realized in excess of such amount.
NOTE 4. CAPITAL There are 200 million shares of $.01 par value common
stock authorized. Of the 1,127,093 shares outstanding
at October 31, 1996, the Adviser owned 7,093 shares. As of October 31, 1996
there were 340 shares at Preferred Stock Series R7 outstanding. 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.
Dividends on Series R7 are cumulative at a rate which is reset every 7 days
based on the results of an auction. Dividend rates ranged from 3.41% to 5.50%
during the year ended October 31, 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
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, 1996, the Board of Directors
of the Trust declared dividends from undistributed
earnings of $0.0600 per common share payable November 29, 1996 to shareholders
of record on November 15, 1996.
For the period November 1, 1996 through November 30, 1996 dividends declared
on Preferred Stock totalled $25,043 in aggregate for the outstanding Preferred
Stock.
11
<PAGE>
NOTE 6. QUARTERLY DATA
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
NET REALIZED AND
UNREALIZED
NET INVESTMENT GAINS (LOSSES) ON
INCOME INVESTMENTS
PER PER
TOTAL COMON COMMON
QUARTERLY PERIOD INCOME AMOUNT SHARE AMOUNT SHARE
- ---------------- ------ ------ ----- ------ -----
<S> <C> <C> <C> <C> <C>
November 1, 1994
to January 31, 1995 $346,479 $305,422 $.27 $988,099 $.88
February 1, 1995
to April 30, 1995 347,456 294,175 .26 609,714 .54
May 1, 1995
to July 31, 1995 346,623 291,974 .26 314,572 .28
August 1, 1995
to October 31, 1995 346,506 282,962 .26 751,491 .66
November 1, 1995
to January 31, 1996 345,194 287,696 .26 558,796 .49
February 1, 1996
to April 30, 1996 345,565 288,302 .26 (1,045,221) (.94)
May 1, 1996
to July 31, 1996 349,986 291,673 .26 300,262 .27
August 1, 1996
to October 31, 1996 351,987 295,991 .25 335,349 .31
</TABLE>
================================================================================
*For the year ended October 31, 1996, the average annualized rate paid to
preferred shareholders was 3.69%.
<TABLE>
<CAPTION>
====================================================================================================================
NET INCREASE (DECREASE)
IN NET ASSETS
RESULTING DIVIDENDS AND DISTRIBUTIONS
FROM OPERATIONS COMMON SHARES PREFERRED SHARES*
PER PER SHARE PRICE OF PERIOD END
COMMON COMMON COMMON STOCK NET ASSET
QUARTERLY PERIOD AMOUNT SHARE AMOUNT SHARE AMOUNT SHARE HIGH LOW VALUE
- ---------------- ------ ----- ------ ----- ------ ----- ---- --- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
November 1, 1994
to January 31, 1995 $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 903,889 .80 221,792 .19 82,856 .07 12 1/2 11 1/8 13.10
May 1, 1995
to July 31, 1995 606,546 .54 221,801 .20 86,915 .08 12 5/8 11 3/4 13.36
August 1, 1995
to October 31, 1995 1,034,453 .92 221,798 .20 81,611 .07 12 5/8 11 3/4 14.01
November 1, 1995
to January 31, 1996 846,492 .75 221,811 .20 85,400 .07 13 1/4 12 1/8 14.49
February 1, 1996
to April 30, 1996 (756,919) (.68) 209,160 .18 75,065 .07 13 3/8 12 3/8 13.56
May 1, 1996
to July 31, 1996 591,935 .53 202,862 .18 77,677 .07 12 6/8 11 7/8 13.84
August 1, 1996
to October 31, 1996 631,340 .56 202,862 .18 75,268 .07 12 6/8 12 1/8 14.15
====================================================================================================================
</TABLE>
12
<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, 1996 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
three 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, 1996 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, 1996, 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.
/s/ Deloitte & Touche
- ----------------------
Deloitte & Touche LLP
New York, New York
December 6, 1996
13
<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, 1996) as to the federal tax status
of dividends you received during such fiscal year. The dividend paid December
29, 1995 to common shareholders of record on December 15, 1995 included $0.008
per share of taxable ordinary income. The dividend paid December 13, 1995 to
preferred shareholders of record on December 12, 1995 included $9.98 per share
of taxable ordinary income. All other dividends paid to both common and
preferred shareholders consisted of federal tax-exempt interest.
- --------------------------------------------------------------------------------
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 and 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.
14
<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 $43
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 either the New York or American Stock
Exchanges, several open-end funds and over 100 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., one of the nations
largest banking organizations.
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, 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.
15
<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.
16
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
GLOSSARY
- --------------------------------------------------------------------------------
<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 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.
</TABLE>
17
<PAGE>
- --------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGEMENT, INC.
SUMMARY OF CLOSED-END FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAXABLE TRUSTS
- --------------------------------------------------------------------------------
MATURITY
PERPETUAL TRUSTS STOCK SYMBOL DATE
---------- ------
<S> <C> <C>
The BlackRock 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
- --------------------------------------------------------------------------------
MATURITY
PERPETUAL TRUSTS STOCK 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 do not
hesitate to call BlackRock at (800) 227-7BFM (7236)
or consult with your financial advisor.
18
<PAGE>
- --------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGEMENT, INC.
AN OVERVIEW
- --------------------------------------------------------------------------------
BlackRock Financial Management (BlackRock) is a registered investment
adviser which specializes in managing high quality fixed income securities, both
taxable and tax exempt. BlackRock currently manages over $43 billion of assets
across the government, mortgage, corporate and municipal sectors. These assets
are managed on behalf of many individual investors in twenty-one closed-end
funds traded on either the New York or American stock exchanges, and several
open-end funds and on behalf of more than 100 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, Ford Motor Company Pension Plan,
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 individuals and institutional investors. The professionals at
BlackRock have extensive experience creating, analyzing and trading a variety of
fixed income instruments, including the most complex structured securities. In
fact, individuals at BlackRock are responsible for many of the major innovations
in the mortgage-backed and asset-backed securities 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 of 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 a 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 do not hesitate to call BlackRock at (800) 227-7BFM
19
<PAGE>
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 LLC
Gateway Center Three
100 Mulberry Street
Newark, N.J. 07102-4077
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM
AUCTION AGENT
Bankers Trust Company
4 Albany Street
New York, NY 10006
INDEPENDENT AUDITORS
Deloitte & Touche LLP
Two World Financial Center New York,
NY 10281-1434
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
919 Third Avenue
New York, NY 10022
This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of any securities.
THE BLACKROCK FLORIDA INVESTMENT
QUALITY MUNICIPAL TRUST
c/o Prudential Mutual Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, N.J. 07102-4077
(800) 227-7BFM
Printed on recycled paper 09247B-20-8
THE
FLORIDA
INVESTMENT QUALITY
MUNICIPAL TRUST
================================================================================
ANNUAL REPORT
OCTOBER 31, 1996
