- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
SEMI-ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISER
- --------------------------------------------------------------------------------
May 31, 1999
Dear Shareholder:
Since the Trust's last report, interest rates rose sharply as U.S.
economic growth remained strong, labor markets tightened and international
markets began to recover. In light of these factors, on May 18 members of the
Federal Reserve's Federal Open Market Committee announced that they had adopted
a bias towards higher interest rates, citing a concern that inflation might
start to accelerate.
BlackRock has adopted a cautious view of the bond market, as we believe
that there is a real possibility that the Federal Reserve will raise interest
rates in the near future. Additionally, because the Treasury yield curve has
already priced in Federal Reserve action, we believe that interest rates will
trade in a relatively narrow range until the economy shows signs of slowing.
This report contains comments from your Trust's managers regarding the
markets and portfolio in addition to the Trust's financial statements and a
detailed portfolio listing. We thank you for your continued investment in the
Trust.
Sincerely,
/s/ Laurence D. Fink /s/ Ralph L. Schlosstein
- --------------------------- -----------------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President
1
<PAGE>
May 31, 1999
Dear Shareholder:
We are pleased to present the semi-annual report for The BlackRock Florida
Investment Quality Municipal Trust (the "Trust") for the six months ended April
30, 1999. 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.
The table below summarizes the performance of the Trust's stock price and
NAV over the period:
<TABLE>
<CAPTION>
----------------------------------------------------------------------
4/30/99 10/31/98 CHANGE HIGH LOW
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
STOCK PRICE $15.0625 $15.125 (0.41%) $15.875 $14.6875
- ---------------------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $15.63 $15.69 (0.38%) $15.85 $15.58
- ---------------------------------------------------------------------------------------------
</TABLE>
THE FIXED INCOME MARKETS
The past six months have witnessed continued rapid expansion of the U.S.
economy. GDP growth for the first quarter of 1999 is estimated at an annual
rate above 4%, far exceeding the historical non-inflationary level of 2%. While
BlackRock believes that growth may slow down in the second half of 1999, we
anticipate GDP to remain above 3% for the year. Despite the strong economic
growth, inflation has stayed surprisingly subdued. A significant factor in
maintaining low inflation in the U.S. economy stems from the increase in
industrial productivity. Higher productivity has allowed manufacturers to avoid
price increases despite tight labor markets.
The Treasury market briefly rallied early in the fourth quarter of 1998
before dramatically reversing in 1999. For the semi-annual period, the yield of
the 10-year Treasury security rose from 4.61% on October 31, 1998 to 5.35% on
April 30, 1999. The weakened performance of the Treasury market can be
attributed to investors leaving the safe haven of Treasuries to purchase credit
sensitive or higher yielding securities in reaction to inflationary concerns
voiced by the Federal Reserve.
Municipal bonds outperformed the taxable domestic bond market during the
past six months, returning 1.55% (as measured by the LEHMAN MUNICIPAL INDEX)
versus the LEHMAN AGGREGATE INDEX'S 0.68% on a pre-tax basis. The main forces
behind municipal bond outperformance were the strongest mutual fund inflows in
five years and the reduction of municipal bond supply (due to higher interest
rates) after the second highest year of issuance ($284 billion issued in 1998.)
We believe that municipals currently offer attractive value versus Treasuries,
and our outlook for municipal securities is favorable. Despite recent
outperformance we still feel that the attractive taxable equivalent yields
offered by municipal securities are compelling.
The State of Florida's strong and stable financial position reflects
prudent financial management combined with a solid and diversifying economy. In
FY1998, the State's General Fund revenues increased 8.77% over the previous
year to $36 billion while the expenditures increased at 6% for the last year.
The FY1998 unreserved General Fund balance increased 23% to $6.08 billion or
17% of revenues; this provides strong bondholder security. Florida's stable
economy combined with rapid population growth continues to fuel one of the
country's strongest job markets.
2
<PAGE>
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 to enhance its income by
borrowing at short-term municipal rates and investing the proceeds in longer
maturity issues that have higher yields. The degree to which the Trust can
benefit from its use of leverage may affect its ability to pay high monthly
income. At the end of the semi-annual period, the Trust's leverage amount was
33% of total assets. During the past six months, the Trust's borrowing costs
have remained favorable.
As municipal credit spreads remained tight during the reporting period, we
continued to emphasize higher rated securities over the lower rated investment
grade sector. We believe that credit spreads will return to more historical
levels in the near future and as such the Trust should be rewarded for its
higher credit quality bias. The Trust has continued its bias towards premium
coupon securities over discount priced securities, as premium coupons offer
better price performance during periods of rising interest rates and similar
performance to discounts when interest rates fall.
The following charts compare the Trust's current and October 31, 1998
asset composition and credit quality allocations:
<TABLE>
<CAPTION>
SECTOR BREAKDOWN
----------------------------------------------------------------
SECTOR APRIL 30, 1999 OCTOBER 31, 1998
----------------------------------------------------------------
<S> <C> <C>
Lease Revenue 19% 19%
----------------------------------------------------------------
Power 17% 17%
----------------------------------------------------------------
Transportation 17% 17%
----------------------------------------------------------------
City, County & State 13% 13%
----------------------------------------------------------------
School 13% 12%
----------------------------------------------------------------
Sales Tax 6% 6%
----------------------------------------------------------------
Water & Sewer 4% 5%
----------------------------------------------------------------
Hospital 4% 4%
----------------------------------------------------------------
University 4% 4%
----------------------------------------------------------------
Housing 3% 3%
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------
CREDIT RATING* APRIL 30, 1999 OCTOBER 31, 1998
----------------------------------------------------------------
<S> <C> <C>
AAA/Aaa 54% 54%
----------------------------------------------------------------
AA/Aa 17% 17%
----------------------------------------------------------------
A/A 16% 16%
----------------------------------------------------------------
BBB/Baa 13% 13%
----------------------------------------------------------------
</TABLE>
- ----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
3
<PAGE>
We look forward to continuing to manage the Trust to benefit from the
opportunities available to investors in the investment grade municipal market.
We thank you for your investment and continued interest in The BlackRock
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,
/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 4/30/99: $15.0625
- --------------------------------------------------------------------------------
Net Asset Value as of 4/30/99: $15.63
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 4/30/99 ($15.0625)1: 5.28%
- --------------------------------------------------------------------------------
Current Monthly Distribution per Share2: $0.0663
- --------------------------------------------------------------------------------
Current Annualized Distribution per Share2: $0.7956
- --------------------------------------------------------------------------------
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.
4
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
PORTFOLIO OF INVESTMENTS APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT OPTION CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
====================================================================================================================================
<S> <C> <C> <C> <C>
LONG-TERM INVESTMENTS-144.0%
FLORIDA-119.5%
Boynton Beach Util. Sys. Rev., FGIC,
AAA $ 830 6.25%, 11/01/20 ............................................................ 11/02 at 102 $ 901,015
AAA 170 6.25%, 11/01/20 ............................................................ ETM 194,162
A1 1,000 Brevard Cnty. Hlth. Fac., Holmes Regl. Med. Ctr., 5.75%, 10/01/13 ............ 10/03 at 102 1,042,160
AAA 1,000 Brevard Cnty. Sch. Brd., C.O.P., Ser. B, 5.50%, 7/01/21, AMBAC ............... 7/06 at 102 1,037,280
AAA 1,000 Collier Cnty. Sch. Brd., C.O.P., 5.00%, 2/15/16, FSA ......................... 2/06 at 101 999,950
AAA 1,000 Dade Cnty. Aviation Rev., Miami Int'l. Arpt., Ser. C, 5.75%, 10/01/25, MBIA. 10/05 at 102 1,073,930
AAA 1,000++ Dade Cnty. Sch. Brd., C.O.P., Ser. A, 6.00%, 5/01/04, MBIA ................... N/A 1,103,570
AAA 1,000++ Dade Cnty. Spl. Oblig., Ser. B, Zero Coupon, 10/01/08, AMBAC ................. N/A 476,090
AAA 1,000 First Florida Gov. Fin. Comn. Rev., Gainsville, Hollywood & St. Petersburg,
740 5.75%, 7/01/16, AMBAC ...................................................... 7/06 at 101 1,079,790
AAA 1,000 Florida Hsg. Fin. Agcy., Sngl. Fam. Mtge., Ser. A, 6.25%, 7/01/11, GNMA ...... 7/04 at 102 783,112
AA+ 1,000 Florida St. Brd. of Ed., Ser. C, 5.85%, 6/01/18 .............................. 6/03 at 101 1,084,820
AA+ 500 Florida St. Brd. of Ed., Pub. Ed., Ser. B, 5.875%, 6/01/24 ................... 6/05 at 101 1,092,070
AAA 1,000 Florida St. Dept. of Corrections, C.O.P., Okeechobee Correctional Fac.,
1,000 6.25%, 3/01/15, AMBAC ...................................................... 3/05 at 102 556,890
AA+ 1,000 Florida St. Dept. of Trans., 5.80%, 7/01/21 .................................. 7/05 at 101 1,100,530
AAA 1,000 Florida St. Div. of Bond Fin. Dept. Gen. Svcs. Rev., Dept. of Environ.
1,000 Preservation, Ser. A, 5.75%, 7/01/11, AMBAC ................................ 7/05 at 101 1,082,380
AAA 1,000 Jacksonville Cap. Impvt. Rev., Gator Bowl Proj., 5.50%, 10/01/14, AMBAC. 10/04 at 101 1,055,060
AAA 1,000++ Lee Cnty. Trans. Fac. Rev., 5.75%, 10/01/22, MBIA ............................ 10/05 at 102 1,068,050
A- 1,000++ Orlando & Orange Cnty. Expwy., 5.95%, 7/01/23 ................................ 7/01 at 102 1,024,120
Aa 1,000 Orlando Utils. Comn. Wtr. & Elec. Rev., Ser. D, 5.50%, 10/01/20 .............. 10/99 at 100 1,002,320
AAA 1,000++ Seminole Cnty. Sch. Brd., C.O.P., Ser. A, 6.125%, 7/01/04, MBIA ............... N/A 1,120,330
AAA 1,000++ Sunrise Florida Util. Sys. Rev., Ser. A, 5.75%, 10/01/06, AMBAC ............... N/A 1,109,800
Baa2 1,000 Volusia Cnty. Ed. Fac. Auth. Rev., 6.125%, 10/15/16 ........................... 10/06 at 102 1,077,880
-----------
21,065,309
------------
PUERTO RICO-24.5%
Puerto Rico Elec. Pwr. Auth. Rev.,
BBB+ 1,000++ Ser. T, 6.375%, 7/01/04 ..................................................... N/A 1,131,910
BBB+ 1,000 Ser. U, 6.00%, 7/01/14 ...................................................... 7/04 at 102 1,097,980
Puerto Rico Pub. Bldg. Auth., Gtd. Pub. Ed. & Hlth. Fac., Ser. M,
A 1,000 5.50%, 7/01/21 .............................................................. 7/03 at 101.5 1,032,380
A 1,000 5.75%, 7/01/15 .............................................................. 7/03 at 101.5 1,050,650
-----------
4,312,920
-----------
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
<TABLE>
<CAPTION>
================================================================================
VALUE
DESCRIPTION (NOTE 1)
- --------------------------------------------------------------------------------
<S> <C> <C>
TOTAL INVESTMENTS-144.0% (COST $22,837,085) ................ $ 25,378,229
Other assets in excess of liabilities-4.2% ................. 743,081
Liquidation value of preferred stock-(48.2)% ............... (8,500,000)
------------
Net Assets Applicable to Common Shareholders-100% .......... $ 17,621,310
============
</TABLE>
- ----------
* Rating: using the higher of Standard & Poor's, Moody's or Fitch's rating.
+ Option call provisions: date (month/year) and prices of the earliest option
call on redemption. There may be other call provisions at varying prices at
later dates.
++ This bond is prerefunded. See Glossary for definitions.
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
THE FOLLOWING ABBREVIATIONS ARE USED IN PORTFOLIO DESCRIPTIONS:
AMBAC - American Municipal Bond Assurance Corporation FSA - Financial Security Assurance
C.O.P. - Certificate of Participation GNMA - Government National Mortgage Association
ETM - Escrowed To Maturity MBIA - Municipal Bond Insurance Association
FGIC - Financial Guaranty Insurance Company
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY
MUNICIPAL TRUST
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $22,837,085) (Note 1)......... $25,378,229
Cash ..................................................... 423,483
Interest receivable ...................................... 367,340
-----------
26,169,052
-----------
LIABILITIES
Investment advisory fee payable (Note 2) ................. 7,542
Administration fee payable (Note 2) ...................... 2,155
Dividends payable-preferred stock ........................ 745
Other accrued expenses ................................... 37,300
-----------
47,742
-----------
NET INVESTMENT ASSETS .................................... $26,121,310
===========
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 ..................... 181,209
Accumulated net realized loss ........................... (697,759)
Net unrealized appreciation ............................. 2,541,144
-----------
Net investment assets, April 30, 1999 .................... $26,121,310
===========
Net assets applicable to common shareholders ............. $17,621,310
===========
Net asset value per share:
($17,621,310 o/o 1,127,093 shares of
common stock issued and outstanding) ................... $15.63
======
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY
MUNICIPAL TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest and discount earned ......... $700,074
--------
Expenses
Investment advisory .................. 45,538
Administration ....................... 13,011
Auction agent ........................ 10,500
Directors ............................ 7,000
Reports to shareholders .............. 5,000
Transfer agent ....................... 5,000
Audit ................................ 3,500
Custodian ............................ 2,000
Legal ................................ 2,000
Miscellaneous ........................ 2,136
--------
Total expenses ......................... 95,685
--------
Net investment income .................. 604,389
--------
UNREALIZED LOSS
ON INVESTMENTS (NOTE 3)
Net change in unrealized appreciation
on investments ........................ (85,962)
--------
NET INCREASE IN NET INVESTMENT ASSETS
RESULTING FROM OPERATIONS .............. $518,427
========
See Notes to Financial Statements.
7
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, OCTOBER 31,
1999 1998
---------------- -----------
INCREASE (DECREASE) IN NET INVESTMENT ASSETS
<S> <C> <C>
Operations:
Net investment income ................................................... $ 604,389 $ 1,178,528
Net change in unrealized appreciation on investments .................... (85,962) 912,460
----------- -----------
Net increase in net investment assets resulting from operations ......... 518,427 2,090,988
Dividends and distributions:
To common shareholders from net investment income ....................... (448,308) (839,826)
To preferred shareholders from net investment income .................... (133,091) (311,954)
----------- -----------
Total dividends and distributions ....................................... (581,399) (1,151,780)
----------- -----------
Total increase (decrease) ............................................. (62,972) 939,208
NET INVESTMENT ASSETS
Beginning of period ...................................................... 26,184,282 25,245,074
----------- -----------
End of period ............................................................ $26,121,310 $26,184,282
=========== ===========
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
FINANCIAL HIGHLIGHTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30,
1999
----
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ............................... $ 15.69
-------
Net investment income ............................................. .54
Net realized and unrealized gain (loss) on investments ............ (.08)
-------
Net increase (decrease) from investment operations ................ .46
-------
Dividends and distributions:
Dividends from net investment income to:
Common shareholders ............................................. (.40)
Preferred shareholders .......................................... (.12)
Distributions from capital gains to:
Common shareholders ............................................. -
Preferred shareholders .......................................... -
Distributions in excess of net realized gain on investments to:
Common shareholders ............................................. -
Preferred shareholders .......................................... -
-------
Total dividends and distributions .................................. (.52)
-------
Net asset value, end of period* .................................... $ 15.63
=======
Per share market value, end of period* ............................. $ 15.0625
=======
TOTAL INVESTMENT RETURN+: ......................................... 2.20%
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS++:
Expenses ........................................................... 1.09%+++
Net investment income before preferred stock dividends ............. 6.90%+++
Preferred stock dividends .......................................... 1.52%+++
Net investment income available to common shareholders ............. 5.38%+++
SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands) ........... $17,675
Portfolio turnover rate ............................................ 0%
Net assets of common shareholders, end of period (in thousands)..... $17,621
Asset coverage per share of preferred stock, end of period# ........ $76,830
Preferred stock outstanding (in thousands) ......................... $ 8,500
<CAPTION>
FOR THE YEAR ENDED OCTOBER 31,
---------------------------------------------
1998 1997 1996 1995
---- ---- ------- -------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ............................... $ 14.86 $ 14.15 $ 14.01 $ 11.69
------- ------- ------- -------
Net investment income ............................................. 1.05 1.06 1.03 1.05
Net realized and unrealized gain (loss) on investments ............ .81 .65 .13 2.36
------- ------- ------- -------
Net increase (decrease) from investment operations ................ 1.86 1.71 1.16 3.41
------- ------- ------- -------
Dividends and distributions:
Dividends from net investment income to:
Common shareholders ............................................. (.75) (.72) (.73) (.79)
Preferred shareholders .......................................... (.28) (.28) (.28) (.30)
Distributions from capital gains to:
Common shareholders ............................................. - - - -
Preferred shareholders .......................................... - - - -
Distributions in excess of net realized gain on investments to:
Common shareholders ............................................. - ** ( .01) -
Preferred shareholders .......................................... - ** ** -
------- ------- ------- -------
Total dividends and distributions .................................. ( 1.03) ( 1.00) (1.02) (1.09)
-------- ------- ------- -------
Net asset value, end of period* .................................... $ 15.69 $ 14.86 $ 14.15 $ 14.01
======= ======= ======= =======
Per share market value, end of period* ............................. $ 15.125 $ 13.3125 $ 12.25 $ 12.625
======= ======= ======= =======
TOTAL INVESTMENT RETURN+: ......................................... 19.70% 14.95% 2.92% 29.29%
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS++:
Expenses ........................................................... 1.31% 1.26% 1.46% 1.44%
Net investment income before preferred stock dividends ............. 6.81% 7.43% 7.41% 7.96%
Preferred stock dividends .......................................... 1.80% 1.92% 1.97% 2.28%
Net investment income available to common shareholders ............. 5.01% 5.51% 5.44% 5.68%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands) ........... $17,299 $16,150 $15,699 $14,759
Portfolio turnover rate ............................................ 0% 5% 73% 112%
Net assets of common shareholders, end of period (in thousands)..... $17,684 $16,745 $15,951 $15,788
Asset coverage per share of preferred stock, end of period# ........ $77,017 $74,253 $71,915 $71,437
Preferred stock outstanding (in thousands) ......................... $ 8,500 $ 8,500 $ 8,500 $ 8,500
<CAPTION>
FOR THE YEAR
ENDED OCTOBER
31,
-------------
1994
-------------
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ............................... $ 14.77
---------
Net investment income ............................................. .98
Net realized and unrealized gain (loss) on investments ............ ( 3.02)
---------
Net increase (decrease) from investment operations ................ ( 2.04)
---------
Dividends and distributions:
Dividends from net investment income to:
Common shareholders ............................................. (.79)
Preferred shareholders .......................................... (.20)
Distributions from capital gains to:
Common shareholders ............................................. (.04)
Preferred shareholders .......................................... (.01)
Distributions in excess of net realized gain on investments to:
Common shareholders ............................................. -
Preferred shareholders .......................................... -
---------
Total dividends and distributions .................................. (1.04)
---------
Net asset value, end of period* .................................... $ 11.69
=========
Per share market value, end of period* ............................. $ 10.375
=========
TOTAL INVESTMENT RETURN+: ......................................... (20.98%)
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS++:
Expenses ........................................................... 1.50%
Net investment income before preferred stock dividends ............. 7.34%
Preferred stock dividends .......................................... 1.48%
Net investment income available to common shareholders ............. 5.86%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands) ........... $ 15,015
Portfolio turnover rate ............................................ 206%
Net assets of common shareholders, end of period (in thousands)..... $ 13,174
Asset coverage per share of preferred stock, end of period# ........ $127,494
Preferred stock outstanding (in thousands) ......................... $ 8,500
</TABLE>
- ----------
* Net asset value and market value are published in THE WALL STREET JOURNAL
each Monday.
** Actual amount paid to common shareholders for the year ended October 31,
1997 was $0.004325, and the actual amount paid to preferred shareholders
was $0.000185 per common share. Actual amount paid to preferred
shareholders for the year ended October 31, 1996 was $0.0030 per common
share.
# 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, expenses and preferred stock
dividends applicable to both the common and preferred shares relative to the
average net assets of common shareholders.
+++ Annualized.
The information above represents the unaudited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the periods indicated. This
information has been determined based upon financial information provided in
the financial statements and market value data for the Trust's common shares.
See Notes to Financial Statements.
9
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT
QUALITY MUNICIPAL TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION & The BlackRock Florida Investment Quality
ACCOUNTING Municipal Trust (the "Trust") was organized
POLICIES in Massachusetts on April 15, 1993 as a non-
diversified closed-end management investment
company. The Trust's investment objective is to manage a portfolio of high
quality securities while providing 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.
ESTIMATES: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
NOTE 2. AGREEMENTS The Trust has an Investment Advisory Agreement
with BlackRock Financial Management, Inc. (the
"Adviser"), a wholly-owned corporate subsidiary of BlackRock Advisors, Inc.,
which is an indirect majority-owned subsidiary of PNC Bank, N.A., and an
Administration Agreement with Prudential Investments Fund Management LLC
("PIFM"), 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 PIFM 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. PIFM pays occupancy and certain
clerical and accounting costs of the Trust. The Trust bears all other costs and
expenses.
10
<PAGE>
NOTE 3. PORTFOLIO Sales of investment securities other than
SECURITIES short-term investments, for the six months
ended April 30, 1999 aggregated $35,000. There
were no purchases for the same period.
The federal income tax basis of the Trust's investments at April 30, 1999
was substantially the same as for financial reporting purposes and,
accordingly, net and gross unrealized appreciation was $2,541,144.
For federal income tax purposes, the Trust had a capital loss
carryforward at October 31, 1998 of approximately $699,000 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 April 30, 1999, the Adviser owned 7,093 shares.
As of April 30, 1999 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 3.00% to
3.75% during the six months ended April 30, 1999.
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 restriction.
NOTE 5. DIVIDENDS Subsequent to April 30, 1999, the Board of
Directors of the Trust declared dividends
from undistributed earnings of 0.0663 per common share payable May 28, 1999 to
shareholders of record on May 14, 1999.
For the period May 1, 1999 through May 31, 1999 dividends declared on
Preferred Stock totaled $23,552 in aggregate for the outstanding Preferred
Stock.
11
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
DIVIDEND REINVESTMENT PLAN
- --------------------------------------------------------------------------------
Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders are automatically enrolled to have all distributions of dividends
and capital gains reinvested by State Street Bank and Trust Company (the "Plan
Agent") in Trust shares pursuant to the Plan. Shareholders who 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
transfer agent, as dividend disbursing agent.
The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the American
Stock Exchange or elsewhere for the participants' accounts. The Trust will not
issue any new shares under the Plan.
Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment for any fraction of a Trust share.
The Plan Agent's fees for the handling of the reinvestment of dividends
and distributions will be paid by the Trust. However, each participant will pay
a pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any federal income tax that may be payable on
such dividends or distributions.
The Trust reserves the right to amend or terminate the Plan as applied to
any dividend or distribution paid subsequent to written notice of the change
sent to all shareholders of the Trust at least 90 days before the record date
for the dividend or distribution. The Plan also may be amended or terminated by
the Plan Agent upon at least 90 days' written notice to all shareholders of the
Trust. All correspondence concerning the Plan should be directed to the Plan
Agent at (800) 699-1BFM. The address is on the front of this report.
12
<PAGE>
- --------------------------------------------------------------------------------
THE BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
YEAR 2000 READINESS DISCLOSURE. The Trust is currently in the process of
evaluating its information technology infrastructure for Year 2000 compliance.
Substantially all of the Trust's information systems are supplied by the
Adviser. The Adviser has advised the Trust that it is currently evaluating
whether such systems are year 2000 compliant and that it expects to incur costs
of up to approximately five hundred thousand dollars to complete such
evaluation and to make any modifications to its systems as may be necessary to
achieve Year 2000 compliance. The Adviser has advised the Trust that it has
fully tested its systems for Year 2000 compliance. The Trust may be required to
bear a portion of such cost incurred by the Adviser in this regard. The Adviser
has advised the Trust that it does not anticipate any material disruption in
the operations of the Trust as a result of any failure by the Adviser to
achieve Year 2000 compliance. There can be no assurance that the costs will not
exceed the amount referred to above or that the Trust will not experience a
disruption in operations.
The Adviser has advised the Trust that it is in the process of evaluating
the Year 2000 compliance of various suppliers of the Adviser and the Trust. The
Adviser has advised the Trust that it has communicated with such suppliers to
determine their Year 2000 compliance status and the extent to which the Adviser
or the Trust could be affected by any supplier's Year 2000 compliance issues.
To date, the Adviser has received responses from all such suppliers with
respect to their Year 2000 compliance, and there can be no assurance that the
systems of such suppliers, who are beyond the Trust's control, will be Year
2000 compliant. In the event that any of the Trust's significant suppliers do
not successfully and timely achieve Year 2000 compliance, the Trust's business
or operations could be adversely affected. The Adviser has advised the Trust
that it is in the process of preparing a contingency plan for Year 2000
compliance by its suppliers. There can be no assurance that such contingency
plan will be successful in preventing a disruption of the Trust's operations.
The Trust is designating this disclosure as its Year 2000 readiness
disclosure for all purposes under the Year 2000 Information and Readiness
Disclosure Act and the foregoing information shall constitute a Year 2000
statement for purposes of that Act.
ANNUAL MEETING OF TRUST SHAREHOLDERS. There have been no material changes
in the Trust's investment objectives or policies that have not been approved by
the shareholders or to its charter or by-laws or in the principal risk factors
associated with investment in the Trust. There have been no changes in the
persons who are primarily responsible for the day-to-day management of the
Trust's portfolio.
The Annual Meeting of Trust Shareholders was held May 19, 1999 to vote on the
following matters:
(1) To elect three Directors as follows:
DIRECTOR CLASS TERM EXPIRING
-------- ------- ---- --------
Frank J. Fabozzi .............. II 3 years 2002
Walter F. Mondale ............. II 3 years 2002
Ralph L. Schlosstein .......... II 3 years 2002
Directors whose term of office continues beyond this meeting are Andrew F.
Brimmer, Kent Dixon, Laurence D. Fink, James Grosfeld, Richard E.
Cavanagh, and James Clayburn La Force, Jr.
(2) To ratify the selection of Deloitte & Touche LLP as independent public
accountants of the Trust for the fiscal year ending October 31, 1999.
Shareholders elected the three Directors and ratified the selection of
Deloitte & Touche LLP. The results of the voting was as follows:
<TABLE>
<CAPTION>
VOTES FOR* VOTES AGAINST* ABSTENTIONS*
------------ ---------------- -------------
<S> <C> <C> <C>
Frank J. Fabozzi ............................... 306 - -
Walter F. Mondale .............................. 955,449 - 25,006
Ralph L. Schlosstein ........................... 964,704 - 15,751
Ratification of Deloitte & Touche LLP .......... 964,640 11,875 3,940
</TABLE>
- ----------
*The votes represent common and preferred shareholders voting as a single class
except for the election of Frank J. Fabozzi who was elected by the preferred
shareholders.
13
<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") is an SEC-registered
investment adviser. BlackRock and its affiliates currently manage over $141
billion on behalf of taxable and tax-exempt clients worldwide. Strategies
include fixed income, equity and cash and may incorporate both domestic and
international securities. Domestic fixed income strategies utilize the
government, mortgage, corporate and municipal bond sectors. BlackRock manages
twenty-one closed-end funds that are traded on either the New York or American
stock exchanges, and a $25 billion family of open-end equity and bond funds.
Current accounts number over 450, domiciled in the United States and overseas.
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 at least investment grade ("BBB"
by Standard & Poor's or "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 or other qualifying issuers.
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.
14
<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 Trust 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.
15
<PAGE>
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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 a fund.
MARKET PRICE: Price per share of a security trading in the
secondary market. For a closed-end fund, this is the
price at which one share of the fund trades on the
stock exchange. If you were to buy or sell shares,
you would pay or receive the market price.
NET ASSET VALUE (NAV): Net asset value is the total market value of all
securities and other assets held by the Trust, plus
income accrued on its investments, minus any
liabilities including accrued expenses, divided by
the total number of outstanding shares. It is the
underlying value of a single share on a given day.
Net asset value for the Trust is calculated weekly
and published in BARRON'S on Saturday, THE NEW YORK
TIMES and THE WALL STREET JOURNAL on Monday.
PREMIUM: When a fund's stock price is greater than its net
asset value, the fund is said to be trading at a
premium.
PREREFUNDED BONDS: These securities are collateralized by U.S.
Government securities which are held in escrow and
are used to pay principal and interest on the tax
exempt issue and retire the bond in full at the date
indicated, typically at a premium to par.
16
<PAGE>
- --------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGEMENT, INC.
SUMMARY OF CLOSED-END FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TAXABLE TRUSTS
- ---------------------------------------------------------------------------------------
STOCK MATURITY
SYMBOL DATE
PERPETUAL TRUSTS -------- ---------
<S> <C> <C>
The BlackRock Income Trust Inc. BKT N/A
The BlackRock North American Government Income Trust Inc. BNA N/A
The BlackRock High Yield Trust BHY N/A
TERM TRUSTS
The BlackRock 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
- ---------------------------------------------------------------------------------------
<CAPTION>
STOCK MATURITY
SYMBOL DATE
PERPETUAL TRUSTS -------- ---------
<S> <C> <C>
The BlackRock Investment Quality Municipal Trust Inc. BKN N/A
The BlackRock California Investment Quality Municipal Trust Inc. RAA N/A
The BlackRock Florida Investment Quality Municipal Trust RFA N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc. RNJ N/A
The BlackRock New York Investment Quality Municipal Trust Inc. RNY N/A
TERM TRUSTS
The BlackRock Municipal Target Term Trust Inc. BMN 12/06
The BlackRock Insured Municipal 2008 Term Trust Inc. BRM 12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc. BFC 12/08
The BlackRock Florida Insured Municipal 2008 Term Trust BRF 12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc. BLN 12/08
The BlackRock Insured Municipal Term Trust Inc. BMT 12/10
</TABLE>
IF YOU WOULD LIKE FURTHER INFORMATION PLEASE DO NOT HESITATE TO CALL BLACKROCK
AT (800) 227-7BFM (7236)
OR CONSULT WITH YOUR FINANCIAL ADVISOR.
17
<PAGE>
- --------------------------------------------------------------------------------
BLACKROCK FINANCIAL MANAGEMENT, INC.
AN OVERVIEW
- --------------------------------------------------------------------------------
BlackRock Financial Management, Inc. ("BlackRock") is an SEC-registered
investment adviser. BlackRock and its affiliates currently manage over $141
billion on behalf of taxable and tax-exempt clients worldwide. Strategies
include fixed income, equity and cash and may incorporate both domestic and
international securities. BlackRock manages twenty-one closed-end funds that
are traded on either the New York or American stock exchanges, and a $25
billion family of open-end equity and bond funds. Current accounts number over
450, domiciled in the United States and overseas.
BlackRock's fixed income product was introduced in 1988 by a team of
highly seasoned fixed income professionals. These professionals had extensive
experience creating, analyzing and trading a variety of fixed income
instruments, including the most complex structured securities. In fact, several
individuals at BlackRock were responsible for developing many of the major
innovations in the mortgage-backed and asset-backed securities markets,
including the creation of the first CMO, the floating rate CMO, the
senior/subordinated pass-through and the multi-class asset-backed security.
BlackRock is unique among asset management and advisory firms in the
emphasis it places on the development of proprietary analytical capabilities.
Over one quarter of the firm's professionals are dedicated to the design,
maintenance and use of these systems, which are not otherwise available to
investors. BlackRock's proprietary analytical tools are used for evaluating,
and designing fixed income investment strategies for client portfolios.
Securities purchased include mortgages, corporate bonds, municipal bonds and a
variety of hedging instruments.
BlackRock has developed investment products that respond to investors'
needs and has been responsible for several major innovations in closed-end
funds. In fact, BlackRock introduced the first closed-end mortgage fund, the
first taxable and tax-exempt closed-end funds to offer a finite term, the first
closed-end fund to achieve a AAA rating by Standard & Poor's, and the first
closed-end fund to invest primarily in North American Government securities.
Currently, BlackRock's closed-end funds have dividend reinvestment plans, which
are designed to provide ongoing demand for the stock in the secondary market.
BlackRock manages a wide range of investment vehicles, each having specific
investment objectives and policies.
In view of our continued desire to provide a high level of service to all
our shareholders, BlackRock maintains a toll-free number for your questions.
The number is (800) 227-7BFM (7236). We encourage you to call us with any
questions that you may have about your BlackRock funds and we thank you for the
continued trust that you place in our abilities.
IF YOU WOULD LIKE FURTHER INFORMATION
PLEASE DO NOT HESITATE TO CALL BLACKROCK AT (800) 227-7BFM
18
<PAGE>
- --------------
BlackRock
- --------------
DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein
OFFICERS
Ralph L. Schlosstein, PRESIDENT
Keith T. Anderson, VICE PRESIDENT
Michael C. Huebsch, VICE PRESIDENT
Robert S. Kapito, VICE PRESIDENT
Kevin Klingert, Vice President
Richard M. Shea, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Karen H. Sabath, SECRETARY
INVESTMENT ADVISER
BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
(800) 227-7BFM
ADMINISTRATOR
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 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
The accompanying financial statements as of April 30, 1999 were not audited
and, accordingly, no opinion is expressed on them.
This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of any securities.
THE BLACKROCK FLORIDA INVESTMENT
QUALITY MUNICIPAL TRUST
c/o Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 227-7BFM
[GRAPHIC OMITTED] Printed on recycled pap 09247C-10-7
09247C-20-6
-------------
BlackRock
THE -------------
FLORIDA
INVESTMENT QUALITY
MUNICIPAL TRUST
==========================
SEMI-ANNUAL REPORT
APRIL 30, 1999
[GRAPHIC OMITTED
