UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09401
The BlackRock Strategic Municipal Trust
--------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
100 Bellevue Parkway, Wilmington, DE 19809
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Robert S. Kapito, President
The BlackRock Strategic Municipal Trust
40 East 52nd Street, New York, NY 10022
--------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (302) 797-2449
Date of fiscal year end: 12/31/03
Date of reporting period: 6/30/03
ITEM 1. REPORTS TO STOCKHOLDERS.
The Trust's semi-annual report transmitted to shareholders pursuant to Rule
30e-1 under the Investment Company Act of 1940 is as follows:
--------------------------------------------------------------------------------
BlackRock
Closed-End Funds
Semi-Annual Report
JUNE 30, 2003 (UNAUDITED)
--------------------------------------------------------------------------------
BlackRock Insured Municipal 2008 Term Trust (BRM)
BlackRock Insured Municipal Term Trust (BMT)
BlackRock Municipal 2018 Term Trust (BPK)
BlackRock Municipal Target Term Trust (BMN)
BlackRock Strategic Municipal Trust (BSD)
BlackRock California Insured Municipal 2008 Term Trust (BFC)
BlackRock California Municipal 2018 Term Trust (BJZ)
BlackRock Florida Insured Municipal 2008 Term Trust (BRF)
BlackRock New York Insured Municipal 2008 Term Trust (BLN)
BlackRock New York Municipal 2018 Term Trust (BLH)
BlackRock Pennsylvania Strategic Municipal Trust (BPS)
--------------------------------------------------------------------------------
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE BLACKROCK
[LOGO]
TABLE OF CONTENTS
Letter to Shareholders .................................................... 1
Trust Summaries ........................................................... 2
Portfolios of Investments ................................................. 13
Financial Statements
Statements of Assets and Liabilities ................................... 45
Statements of Operations ............................................... 47
Statements of Changes in Net Assets .................................... 49
Financial Highlights ...................................................... 53
Notes to Financial Statements ............................................. 64
Dividend Reinvestment Plans ............................................... 69
Additional Information .................................................... 70
--------------------------------------------------------------------------------
PRIVACY PRINCIPLES OF THE TRUSTS
The Trusts are committed to maintaining the privacy of shareholders and to
safeguarding their non-public personal information. The following information is
provided to help you understand what personal information the Trusts collect,
how we protect that information and why, in certain cases, we may share
information with select other parties.
Generally, the Trusts do not receive any non-public personal information
relating to their shareholders, although certain non-public personal information
of shareholders may become available to the Trusts. The Trusts do not disclose
any non-public personal information about their shareholders or former
shareholders to anyone, except as permitted by law or as is necessary in order
to service shareholder accounts (for example, to a transfer agent or third party
administrator).
The Trusts restrict access to non-public personal information about their
shareholders to BlackRock employees with a legitimate business need for the
information. The Trusts maintain physical, electronic and procedural safeguards
designed to protect the non-public personal information of their shareholders.
--------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
July 31, 2003
Dear Shareholder:
We are pleased to report that during the semi-annual period, the Trusts
continued to provide monthly income, as well as the opportunity to invest in
various portfolios of municipal securities. This report contains the Trusts'
unaudited financial statements and a listing of the portfolios' holdings.
The portfolio management team continuously monitors the municipal bond
market and adjusts the portfolios in order to gain exposure to various issuers,
revenue sources and security types. This strategy enables the Trusts to move
among different sectors, credits and coupons to capitalize on changing market
conditions.
The following table shows the Trusts' yields, tax-equivalent yields,
closing market prices per share and net asset values ("NAV") per share as of
June 30, 2003.
--------------------------------------------------------------------------------------------------------------------
TAX-
CURRENT EQUIVALENT MARKET
TRUST YIELD(1) YIELD(1) PRICE NAV
--------------------------------------------------------------------------------------------------------------------
BlackRock Insured Municipal 2008 Term Trust (BRM) 4.47% 6.88% $17.79 $17.97
--------------------------------------------------------------------------------------------------------------------
BlackRock Insured Municipal Term Trust (BMT) 5.01 7.71 11.47 11.60
--------------------------------------------------------------------------------------------------------------------
BlackRock Municipal 2018 Term Trust (BPK) 5.25 8.08 14.85 15.14
--------------------------------------------------------------------------------------------------------------------
BlackRock Municipal Target Term Trust (BMN) 5.15 7.93 11.16 11.22
--------------------------------------------------------------------------------------------------------------------
BlackRock Strategic Municipal Trust (BSD) 5.98 9.20 15.10 15.80
--------------------------------------------------------------------------------------------------------------------
BlackRock California Insured Municipal 2008 Term Trust (BFC) 4.55 7.00 16.98 17.56
--------------------------------------------------------------------------------------------------------------------
BlackRock California Municipal 2018 Term Trust (BJZ) 5.10 7.85 14.40 14.69
--------------------------------------------------------------------------------------------------------------------
BlackRock Florida Insured Municipal 2008 Term Trust (BRF) 4.52 6.96 16.59 16.87
--------------------------------------------------------------------------------------------------------------------
BlackRock New York Insured Municipal 2008 Term Trust (BLN) 4.44 6.84 16.88 17.42
--------------------------------------------------------------------------------------------------------------------
BlackRock New York Municipal 2018 Term Trust (BLH) 4.91 7.55 14.97 15.37
--------------------------------------------------------------------------------------------------------------------
BlackRock Pennsylvania Strategic Municipal Trust (BPS) 5.52 8.50 15.30 16.28
--------------------------------------------------------------------------------------------------------------------
(1) Yields are based on market price. Tax-equivalent yield assumes the maximum
Federal tax rate of 35%.
BlackRock, Inc. ("BlackRock"), a world leader in asset management, has a
proven commitment to the municipal bond market. As of June 30, 2003, BlackRock
managed approximately $17.6 billion in municipal bonds, including six open-end
and 35 closed-end municipal bond funds. BlackRock is recognized for its emphasis
on risk management and proprietary analytics and for its reputation managing
money for the world's largest institutional investors. BlackRock Advisors, Inc.,
which manages the Trusts, is a wholly owned subsidiary of BlackRock.
On behalf of BlackRock, we thank you for your continued trust and assure
you that we remain committed to excellence in managing your assets.
Sincerely,
/s/ Laurence D. Fink /s/ Ralph L. Schlosstein
-------------------- ------------------------
Laurence D. Fink Ralph L. Schlosstein
Chief Executive Officer President
BlackRock Advisors, Inc. BlackRock Advisors, Inc.
1
TRUST SUMMARIES (UNAUDITED)
JUNE 30, 2003
-------------------------------------------
BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST
-------------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BRM
--------------------------------------------------------------------------------
Initial Offering Date: September 18, 1992
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2008
--------------------------------------------------------------------------------
Closing Market Price as of 6/30/03: $17.79
--------------------------------------------------------------------------------
Net Asset Value as of 6/30/03: $17.97
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 6/30/03 ($17.79):(1) 4.47%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.06625
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.79500
--------------------------------------------------------------------------------
Leverage as of 6/30/03:(3) 36%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
-------------------------------------------------------------
6/30/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $17.79 $16.58 7.30% $17.80 $16.39
--------------------------------------------------------------------------------
NAV $17.97 $17.62 1.99% $18.31 $17.48
--------------------------------------------------------------------------------
The following chart shows the Trust's asset composition:
SECTOR BREAKDOWN
---------------------------------------------------------------------------
SECTOR JUNE 30, 2003 DECEMBER 31, 2002
---------------------------------------------------------------------------
City, County & State 29% 30%
---------------------------------------------------------------------------
Power 20 22
---------------------------------------------------------------------------
Education 15 11
---------------------------------------------------------------------------
Transportation 8 10
---------------------------------------------------------------------------
Tax Revenue 8 8
---------------------------------------------------------------------------
Industrial & Pollution Control 6 2
---------------------------------------------------------------------------
Lease Revenue 5 4
---------------------------------------------------------------------------
Water & Sewer 4 4
---------------------------------------------------------------------------
Hospital 4 7
---------------------------------------------------------------------------
Housing 1 2
---------------------------------------------------------------------------
As of June 30, 2003, all long-term investments had ratings of AAA/Aaa
by Standard & Poor's ("S&P"), Moody's Investors Service ("Moody's")
or Fitch Ratings ("Fitch").
2
TRUST SUMMARIES (UNAUDITED)
JUNE 30, 2003
--------------------------------------
BLACKROCK INSURED MUNICIPAL TERM TRUST
--------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BMT
--------------------------------------------------------------------------------
Initial Offering Date: February 20, 1992
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2010
--------------------------------------------------------------------------------
Closing Market Price as of 6/30/03: $11.47
--------------------------------------------------------------------------------
Net Asset Value as of 6/30/03: $11.60
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 6/30/03 ($11.47):(1) 5.01%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.047917
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.575004
--------------------------------------------------------------------------------
Leverage as of 6/30/03:(3) 36%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price
and NAV:
-----------------------------------------------------------
6/30/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $11.47 $10.94 4.84% $11.71 $10.68
--------------------------------------------------------------------------------
NAV $11.60 $11.29 2.75% $11.90 $11.13
--------------------------------------------------------------------------------
The following chart shows the Trust's asset composition:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR JUNE 30, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
City, County & State 36% 34%
--------------------------------------------------------------------------------
Education 15 14
--------------------------------------------------------------------------------
Water & Sewer 14 13
--------------------------------------------------------------------------------
Power 12 15
--------------------------------------------------------------------------------
Hospital 10 11
--------------------------------------------------------------------------------
Transportation 5 4
--------------------------------------------------------------------------------
Lease Revenue 5 4
--------------------------------------------------------------------------------
Tax Revenue 2 3
--------------------------------------------------------------------------------
Housing 1 2
-------------------------------------------------------------------------------
As of June 30, 2003, all long-term investments had ratings of AAA/Aaa
by S&P, Moody's or Fitch.
3
TRUST SUMMARIES (UNAUDITED)
JUNE 30, 2003
-----------------------------------
BLACKROCK MUNICIPAL 2018 TERM TRUST
-----------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BPK
--------------------------------------------------------------------------------
Initial Offering Date: October 26, 2001
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2018
--------------------------------------------------------------------------------
Closing Market Price as of 6/30/03: $14.85
--------------------------------------------------------------------------------
Net Asset Value as of 6/30/03: $15.14
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 6/30/03 ($14.85):(1) 5.25%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.065
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.780
--------------------------------------------------------------------------------
Leverage as of 6/30/03:(3) 36%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price
and NAV:
----------------------------------------------------------------
6/30/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $14.85 $13.43 10.57% $14.91 $13.17
--------------------------------------------------------------------------------
NAV $15.14 $14.66 3.27% $15.48 $14.16
--------------------------------------------------------------------------------
The following charts show the Trust's asset composition and credit quality
allocations:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR JUNE 30, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
Industrial & Pollution Control 23% 25%
--------------------------------------------------------------------------------
Hospitals 22 18
--------------------------------------------------------------------------------
Housing 14 12
--------------------------------------------------------------------------------
City, County & State 11 8
--------------------------------------------------------------------------------
Tobacco 10 12
--------------------------------------------------------------------------------
Power 6 7
--------------------------------------------------------------------------------
Lease Revenue 3 4
--------------------------------------------------------------------------------
Education 3 4
--------------------------------------------------------------------------------
Transportation 3 3
--------------------------------------------------------------------------------
Tax Revenue 1 1
--------------------------------------------------------------------------------
Other 4 6
--------------------------------------------------------------------------------
CREDIT BREAKDOWN*
--------------------------------------------------------------------------------
CREDIT RATING JUNE 30, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 22% 21%
--------------------------------------------------------------------------------
AA/Aa 2 4
--------------------------------------------------------------------------------
A 29 37
--------------------------------------------------------------------------------
BBB/Baa 24 24
--------------------------------------------------------------------------------
BB/Ba 1 4
--------------------------------------------------------------------------------
B 7 2
--------------------------------------------------------------------------------
Not Rated 15 8
--------------------------------------------------------------------------------
-----------
* Using the higher of S&P's, Moody's or Fitch's rating. Percentages based on
long-term investments.
4
TRUST SUMMARIES (UNAUDITED)
JUNE 30, 2003
-------------------------------------
BLACKROCK MUNICIPAL TARGET TERM TRUST
-------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on the New York Stock Exchange: BMN
--------------------------------------------------------------------------------
Initial Offering Date: September 27, 1991
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2006
--------------------------------------------------------------------------------
Closing Market Price as of 6/30/03: $11.16
--------------------------------------------------------------------------------
Net Asset Value as of 6/30/03: $11.22
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 6/30/03 ($11.16):(1) 5.15%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.047917
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.575004
--------------------------------------------------------------------------------
Leverage as of 6/30/03:(3) 37%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price
and NAV:
--------------------------------------------------------------
6/30/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $11.16 $11.01 1.36% $11.30 $10.82
--------------------------------------------------------------------------------
NAV $11.22 $11.16 0.54% $11.40 $11.06
--------------------------------------------------------------------------------
The following chart shows the Trust's asset composition:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR JUNE 30, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
City, County & State 38% 38%
--------------------------------------------------------------------------------
Power 14 13
--------------------------------------------------------------------------------
Transportation 11 9
--------------------------------------------------------------------------------
Education 9 9
--------------------------------------------------------------------------------
Water & Sewer 9 10
--------------------------------------------------------------------------------
Lease Revenue 6 6
--------------------------------------------------------------------------------
Housing 5 5
--------------------------------------------------------------------------------
Hospital 5 6
--------------------------------------------------------------------------------
Tax Revenue 3 3
--------------------------------------------------------------------------------
Industrial & Pollution Control -- 1
--------------------------------------------------------------------------------
As of June 30, 2003, all long-term investments had ratings of AAA/Aaa by S&P,
Moody's or Fitch.
5
TRUST SUMMARIES (UNAUDITED)
JUNE 30, 2003
-----------------------------------
BLACKROCK STRATEGIC MUNICIPAL TRUST
-----------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BSD
--------------------------------------------------------------------------------
Initial Offering Date: August 25, 1999
--------------------------------------------------------------------------------
Closing Market Price as of 6/30/03: $15.10
--------------------------------------------------------------------------------
Net Asset Value as of 6/30/03: $15.80
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 6/30/03 ($15.10):(1) 5.98%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.075233
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.902796
--------------------------------------------------------------------------------
Leverage as of 6/30/03:(3) 35%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) Effective with the August 1, 2003 distribution payment, the monthly
distribution per share has been changed to $0.079585. The distribution is
not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
--------------------------------------------------------------
6/30/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $15.10 $13.78 9.58% $15.10 $13.25
--------------------------------------------------------------------------------
NAV $15.80 $15.01 5.26% $16.10 $14.51
--------------------------------------------------------------------------------
The following charts show the Trust's asset composition and credit quality
allocations:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR JUNE 30, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
Industrial & Pollution Control 18% 17%
--------------------------------------------------------------------------------
Hospital 18 17
--------------------------------------------------------------------------------
City, County & State 13 13
--------------------------------------------------------------------------------
Tax Revenue 9 10
--------------------------------------------------------------------------------
Education 9 9
--------------------------------------------------------------------------------
Transportation 9 8
--------------------------------------------------------------------------------
Power 8 9
--------------------------------------------------------------------------------
Housing 5 5
--------------------------------------------------------------------------------
Water & Sewer 4 4
--------------------------------------------------------------------------------
Tobacco 3 4
--------------------------------------------------------------------------------
Other 4 4
--------------------------------------------------------------------------------
CREDIT BREAKDOWN*
--------------------------------------------------------------------------------
CREDIT RATING JUNE 30, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 36% 40%
--------------------------------------------------------------------------------
AA/Aa 21 16
--------------------------------------------------------------------------------
A 8 12
--------------------------------------------------------------------------------
BBB/Baa 13 10
--------------------------------------------------------------------------------
BB/Ba 8 13
--------------------------------------------------------------------------------
B 6 3
--------------------------------------------------------------------------------
CCC/Caa 2 --
--------------------------------------------------------------------------------
Not Rated 6 6
--------------------------------------------------------------------------------
-------------
* Using the higher of S&P's, Moody's or Fitch's rating. Percentages based on
long-term investments.
6
TRUST SUMMARIES (UNAUDITED)
JUNE 30, 2003
------------------------------------------------------
BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST
------------------------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BFC
--------------------------------------------------------------------------------
Initial Offering Date: September 18, 1992
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2008
--------------------------------------------------------------------------------
Closing Market Price as of 6/30/03: $16.98
--------------------------------------------------------------------------------
Net Asset Value as of 6/30/03: $17.56
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 6/30/03 ($16.98):(1) 4.55%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.064375
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.772500
--------------------------------------------------------------------------------
Leverage as of 6/30/03:(3) 36%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price
and NAV:
---------------------------------------------------------------
6/30/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $16.98 $16.44 3.28% $17.09 $16.15
--------------------------------------------------------------------------------
NAV $17.56 $17.34 1.27% $18.03 $17.05
--------------------------------------------------------------------------------
The following chart shows the Trust's asset composition:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR JUNE 30, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
City, County & State 37% 32%
--------------------------------------------------------------------------------
Power 18 18
--------------------------------------------------------------------------------
Lease Revenue 13 13
--------------------------------------------------------------------------------
Education 10 8
--------------------------------------------------------------------------------
Water & Sewer 8 7
--------------------------------------------------------------------------------
Tax Revenue 6 6
--------------------------------------------------------------------------------
Transportation 4 9
--------------------------------------------------------------------------------
Hospital 3 3
--------------------------------------------------------------------------------
Resource Recovery 1 1
--------------------------------------------------------------------------------
Industrial & Pollution Control -- 2
--------------------------------------------------------------------------------
Housing -- 1
--------------------------------------------------------------------------------
As of June 30, 2003, all long-term investments had ratings of AAA/Aaa by S&P,
Moody's or Fitch.
7
TRUST SUMMARIES (UNAUDITED)
JUNE 30, 2003
----------------------------------------------
BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST
----------------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BJZ
--------------------------------------------------------------------------------
Initial Offering Date: October 26, 2001
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2018
--------------------------------------------------------------------------------
Closing Market Price as of 6/30/03: $14.40
--------------------------------------------------------------------------------
Net Asset Value as of 6/30/03: $14.69
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 6/30/03 ($14.40):(1) 5.10%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.06125
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.73500
--------------------------------------------------------------------------------
Leverage as of 6/30/03:(3) 37%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
--------------------------------------------------------------
6/30/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $14.40 $13.40 7.46% $14.40 $13.03
--------------------------------------------------------------------------------
NAV $14.69 $14.59 0.69% $15.15 $13.94
--------------------------------------------------------------------------------
The following charts show the Trust's asset composition and credit quality
allocations:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR JUNE 30, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
City, County & State 18% 23%
--------------------------------------------------------------------------------
Transportation 18 17
--------------------------------------------------------------------------------
Lease Revenue 12 15
--------------------------------------------------------------------------------
Tobacco 11 16
--------------------------------------------------------------------------------
Hospital 8 5
--------------------------------------------------------------------------------
Housing 7 7
--------------------------------------------------------------------------------
Water & Sewer 7 --
--------------------------------------------------------------------------------
Education 5 5
--------------------------------------------------------------------------------
Power 5 3
--------------------------------------------------------------------------------
Industrial & Pollution Control 2 2
--------------------------------------------------------------------------------
Tax Revenue -- 1
--------------------------------------------------------------------------------
Other 7 6
--------------------------------------------------------------------------------
CREDIT BREAKDOWN*
--------------------------------------------------------------------------------
CREDIT RATING JUNE 30, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 32% 34%
--------------------------------------------------------------------------------
AA/Aa 4 4
--------------------------------------------------------------------------------
A 40 45
--------------------------------------------------------------------------------
BBB/Baa 15 10
--------------------------------------------------------------------------------
Not Rated 9 7
--------------------------------------------------------------------------------
------------
* Using the higher of S&P's, Moody's or Fitch's rating. Percentages based on
long-term investments.
8
TRUST SUMMARIES (UNAUDITED)
JUNE 30, 2003
---------------------------------------------------
BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
---------------------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BRF
--------------------------------------------------------------------------------
Initial Offering Date: September 18, 1992
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2008
--------------------------------------------------------------------------------
Closing Market Price as of 6/30/03: $16.59
--------------------------------------------------------------------------------
Net Asset Value as of 6/30/03: $16.87
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 6/30/03 ($16.59):(1) 4.52%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.0625
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.7500
--------------------------------------------------------------------------------
Leverage as of 6/30/03:(3) 36%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
-----------------------------------------------------------------
6/30/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $16.59 $15.91 4.27% $16.66 $15.65
--------------------------------------------------------------------------------
NAV $16.87 $16.41 2.80% $17.24 $16.27
--------------------------------------------------------------------------------
The following chart shows the Trust's asset composition:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR JUNE 30, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
Tax Revenue 33% 29%
--------------------------------------------------------------------------------
Education 18 16
--------------------------------------------------------------------------------
Power 14 11
--------------------------------------------------------------------------------
City, County & State 13 16
--------------------------------------------------------------------------------
Lease Revenue 10 11
--------------------------------------------------------------------------------
Water & Sewer 6 7
--------------------------------------------------------------------------------
Resource Recovery 3 3
--------------------------------------------------------------------------------
Transportation 3 3
--------------------------------------------------------------------------------
Housing -- 3
--------------------------------------------------------------------------------
Other -- 1
--------------------------------------------------------------------------------
As of June 30, 2003, all long-term investments had ratings of AAA/Aaa by S&P,
Moody's or Fitch.
9
TRUST SUMMARIES (UNAUDITED)
JUNE 30, 2003
----------------------------------------------------
BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST
----------------------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BLN
--------------------------------------------------------------------------------
Initial Offering Date: September 18, 1992
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2008
--------------------------------------------------------------------------------
Closing Market Price as of 6/30/03: $16.88
--------------------------------------------------------------------------------
Net Asset Value as of 6/30/03: $17.42
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 6/30/03 ($16.88):(1) 4.44%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.0625
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.7500
--------------------------------------------------------------------------------
Leverage as of 6/30/03:(3) 36%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
--------------------------------------------------------------
6/30/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $16.88 $16.22 4.07% $17.15 $15.85
--------------------------------------------------------------------------------
NAV $17.42 $17.09 1.93% $17.81 $16.88
--------------------------------------------------------------------------------
The following chart shows the Trust's asset composition:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR JUNE 30, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
Transportation 27% 27%
--------------------------------------------------------------------------------
Education 18 18
--------------------------------------------------------------------------------
City, County & State 16 17
--------------------------------------------------------------------------------
Water & Sewer 11 11
--------------------------------------------------------------------------------
Hospital 10 11
--------------------------------------------------------------------------------
Tax Revenue 6 4
--------------------------------------------------------------------------------
Power 5 5
--------------------------------------------------------------------------------
Housing 4 4
--------------------------------------------------------------------------------
Lease Revenue 3 3
--------------------------------------------------------------------------------
As of June 30, 2003, all long-term investments had ratings of AAA/Aaa by S&P,
Moody's or Fitch.
10
TRUST SUMMARIES (UNAUDITED)
JUNE 30, 2003
--------------------------------------------
BLACKROCK NEW YORK MUNICIPAL 2018 TERM TRUST
--------------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BLH
--------------------------------------------------------------------------------
Initial Offering Date: October 26, 2001
--------------------------------------------------------------------------------
Termination Date (on or about): December 31, 2018
--------------------------------------------------------------------------------
Closing Market Price as of 6/30/03: $14.97
--------------------------------------------------------------------------------
Net Asset Value as of 6/30/03: $15.37
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 6/30/03 ($14.97):(1) 4.91%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.06125
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.73500
--------------------------------------------------------------------------------
Leverage as of 6/30/03:(3) 36%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) The distribution is not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
---------------------------------------------------------------
6/30/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $14.97 $13.46 11.22% $15.00 $13.23
--------------------------------------------------------------------------------
NAV $15.37 $15.11 1.72% $15.79 $14.46
--------------------------------------------------------------------------------
The following charts show the Trust's asset composition and credit quality
allocations:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR JUNE 30, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
Education 21% 21%
--------------------------------------------------------------------------------
Hospital 18 19
--------------------------------------------------------------------------------
City, County & State 12 11
--------------------------------------------------------------------------------
Transportation 11 14
--------------------------------------------------------------------------------
Tobacco 9 11
--------------------------------------------------------------------------------
Lease Revenue 7 7
--------------------------------------------------------------------------------
Tax Revenue 6 6
--------------------------------------------------------------------------------
Housing 4 5
--------------------------------------------------------------------------------
Power 4 1
Industrial Pollution & Control 3 --
--------------------------------------------------------------------------------
Other 5 5
--------------------------------------------------------------------------------
CREDIT BREAKDOWN*
--------------------------------------------------------------------------------
CREDIT RATING JUNE 30, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 23% 25%
--------------------------------------------------------------------------------
AA/Aa 37 40
--------------------------------------------------------------------------------
A 29 24
--------------------------------------------------------------------------------
BBB/Baa 3 3
--------------------------------------------------------------------------------
B -- 3
--------------------------------------------------------------------------------
CCC/Caa 3 --
--------------------------------------------------------------------------------
Not Rated 5 5
--------------------------------------------------------------------------------
----------
* Using the higher of S&P's, Moody's or Fitch's rating. Percentages based on
long-term investments.
11
TRUST SUMMARIES (UNAUDITED)
JUNE 30, 2003
------------------------------------------------
BLACKROCK PENNSYLVANIA STRATEGIC MUNICIPAL TRUST
------------------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on American Stock Exchange: BPS
--------------------------------------------------------------------------------
Initial Offering Date: August 25, 1999
--------------------------------------------------------------------------------
Closing Market Price as of 6/30/03: $15.30
--------------------------------------------------------------------------------
Net Asset Value as of 6/30/03: $16.28
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 6/30/03 ($15.30):(1) 5.52%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $ 0.070417
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $ 0.845004
--------------------------------------------------------------------------------
Leverage as of 6/30/03:(3) 35%
--------------------------------------------------------------------------------
(1) Yield on closing market price is calculated by dividing the current
annualized distribution per share by the closing market price.
(2) Effective with the August 1, 2003 distribution payment, the monthly
distribution per share has been changed to $0.073965. The distribution is
not constant and is subject to change.
(3) As a percentage of managed assets.
The table below summarizes the changes in the Trust's market price and NAV:
--------------------------------------------------------------------------------
6/30/03 12/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $15.30 $14.33 6.77% $15.40 $13.95
--------------------------------------------------------------------------------
NAV $16.28 $15.61 4.29% $16.57 $15.36
--------------------------------------------------------------------------------
The following charts show the Trust's asset composition and credit quality
allocations:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR JUNE 30, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
Education 21% 20%
--------------------------------------------------------------------------------
Hospital 19 18
--------------------------------------------------------------------------------
Transportation 17 16
--------------------------------------------------------------------------------
Housing 13 12
--------------------------------------------------------------------------------
Water & Sewer 7 12
--------------------------------------------------------------------------------
City, County & State 5 4
--------------------------------------------------------------------------------
Lease Revenue 5 5
--------------------------------------------------------------------------------
Industrial & Pollution Control 4 4
--------------------------------------------------------------------------------
Other 9 9
--------------------------------------------------------------------------------
CREDIT BREAKDOWN*
--------------------------------------------------------------------------------
CREDIT RATING JUNE 30, 2003 DECEMBER 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 52% 54%
--------------------------------------------------------------------------------
AA/Aa 14 14
--------------------------------------------------------------------------------
A 6 6
--------------------------------------------------------------------------------
BBB/Baa 11 10
--------------------------------------------------------------------------------
BB/Ba 5 5
--------------------------------------------------------------------------------
Not Rated 12 11
--------------------------------------------------------------------------------
------------
* Using the higher of S&P's, Moody's or Fitch's rating. Percentages based on
long-term investments.
12
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2003
BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--153.3%
ALABAMA--2.0%
AAA $ 2,410 Auburn Univ., 5.00%, 4/01/09, AMBAC ........................................ No Opt. Call $ 2,715,058
AAA 6,555 Birmingham Jefferson Civic Ctr. Auth., Ser. A, 4.25%, 1/01/09, FSA ......... No Opt. Call 7,100,769
-----------
9,815,827
-----------
ALASKA--0.9%
AAA 4,000 Anchorage, GO, Ser. B, 3.75%, 7/01/09, MBIA ................................ No Opt. Call 4,255,680
-----------
ARIZONA--1.9%
AAA 4,000 Chandler, GO, Zero Coupon, 7/01/08, FGIC ................................... No Opt. Call 3,526,480
AAA 1,000 Phoenix Str. & Hwy., 4.25%, 7/01/09, FGIC .................................. No Opt. Call 1,095,030
AAA 4,200 Pima Cnty. Str. & Hwy., 4.125%, 7/01/09, FGIC .............................. 07/08 @ 101 4,548,348
-----------
9,169,858
-----------
CALIFORNIA--2.5%
California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A,
AAA 5,000 3.125%, 5/01/08, FSA ..................................................... No Opt. Call 5,169,550
AAA 5,000 3.375%, 5/01/09, MBIA .................................................... No Opt. Call 5,182,700
AAA 1,890 California Hlth. Facs. Fin. Auth., Marin Gen. Hosp., Ser. A, 5.75%,
8/01/09, FSA ............................................................. 08/03 @ 102 1,934,113
-----------
12,286,363
-----------
COLORADO--2.3%
AAA 2,000 E-470 Pub. Hwy. Auth., Ser. B, Zero Coupon, 9/01/11, MBIA .................. No Opt. Call 1,481,500
AAA 1,000 El Paso Cnty., COP, Detention Fac. Proj., Ser. B, 3.20%, 12/01/08, AMBAC ... No Opt. Call 1,044,280
AAA 6,965 Regl. Transp. Dist., COP, Transp. Vehicles Proj., Ser. A, 5.00%, 6/01/08,
MBIA ..................................................................... 06/07 @ 101 7,803,238
AAA 1,000 Thornton, COP, 3.25%, 12/01/08, AMBAC ...................................... No Opt. Call 1,046,810
-----------
11,375,828
-----------
DELAWARE--0.1%
AAA 650 Delaware River & Bay Auth., 3.25%, 1/01/09, MBIA ........................... No Opt. Call 673,056
-----------
DISTRICT OF COLUMBIA--3.6%
Dist. of Columbia, GO,
AAA 195 Ser. B, 5.50%, 6/01/09, FSA .............................................. ETM 228,125
AAA 2,605 Ser. B, 5.50%, 6/01/09, FSA .............................................. No Opt. Call 3,006,951
AAA 10,000 Ser. B-1, 5.50%, 6/01/08, AMBAC .......................................... No Opt. Call 11,420,300
AAA 2,750 Ser. E, 5.875%, 6/01/08, MBIA ............................................ ETM 2,854,308
-----------
17,509,684
-----------
FLORIDA--4.5%
AAA 2,280 Broward Cnty. Sch. Brd., COP, Ser. B, 4.25%, 7/01/09, FSA .................. No Opt. Call 2,492,678
AAA 13,890 Florida Dept. of Env. Protection Presvtn., Ser. B, 5.00%, 7/01/09, MBIA .... No Opt. Call 15,786,263
AAA 1,300 Palm Beach, Restoration Proj., Ser. A, 5.00%, 1/01/09, FSA ................. No Opt. Call 1,463,540
AAA 2,080 Tampa Wtr. & Swr., 5.50%, 10/01/08, FSA .................................... No Opt. Call 2,413,320
-----------
22,155,801
-----------
GEORGIA--3.4%
AAA 5,000 Georgia, GO, Ser. E, 5.25%, 2/01/10 ........................................ No Opt. Call 5,740,150
AAA 10,000 Monroe Cnty., PCR, Pwr. Co. Plant Vogtle Proj., Zero Coupon, 1/01/12,
AMBAC .................................................................... No Opt. Call 10,842,700
-----------
16,582,850
-----------
HAWAII--3.1%
Hawaii, GO, FSA,
AAA 6,510 Ser. CY, 4.00%, 2/01/09 .................................................. No Opt. Call 6,993,172
AAA 8,045 Ser. CZ, 3.25%, 7/01/09 .................................................. No Opt. Call 8,350,710
-----------
15,343,882
-----------
ILLINOIS--21.1%
AAA 14,205 Chicago O'Hare Intl. Arpt., Ser. A, 6.25%, 1/01/08, MBIA ................... 01/05 @ 102 15,387,424
Chicago Park Dist., Parking Rev., GO,
AAA 3,290 Ser. A, 3.00%, 1/01/08, FGIC ............................................. No Opt. Call 3,380,837
AAA 1,750 Ser. A, 3.50%, 1/01/09, FGIC ............................................. No Opt. Call 1,829,800
AAA 1,000 Ser. C, 3.00%, 1/01/09, AMBAC ............................................ No Opt. Call 1,020,140
See Notes to Financial Statements.
13
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (CONTINUED)
AAA $ 2,930 Chicago Proj. & Refunding, Ser. A, 5.00%, 1/01/09, AMBAC ................... No Opt. Call $ 3,287,401
AAA 3,105 Chicago Pub. Bldg., Ser. A, Zero Coupon, 1/01/07, MBIA ..................... ETM 2,887,402
Chicago Sch. Fin. Auth., GO, Ser. A, FGIC,
AAA 13,000 6.25%, 6/01/07 ........................................................... 07/03 @ 102 13,231,530
AAA 9,150 6.25%, 6/01/09 ........................................................... 07/03 @ 102 9,312,962
Cook Cnty. High Sch., GO,
AAA 2,000 Arlington Heights, 4.50%, 12/01/08, FSA .................................. No Opt. Call 2,212,620
AAA 5,980 J. Sterling Morton Twnshp., Zero Coupon, 12/01/09, FGIC .................. No Opt. Call 4,905,274
AAA 8,985 Du Page Cnty. Forest Presvtn. Dist., Zero Coupon, 11/01/08 ................. No Opt. Call 7,740,667
Illinois, GO, Ser. 1, MBIA,
AAA 6,750 3.50%, 7/01/08 ........................................................... No Opt. Call 7,121,655
AAA 5,000 3.75%, 7/01/09 ........................................................... No Opt. Call 5,311,000
AAA 13,000 Illinois Dev. Fin. Auth., Gas Sply., 3.05%, 2/01/33, AMBAC ................. No Opt. Call 13,407,550
AAA 1,455 Kane & Du Page Cntys. Sch. Dist., GO, Ser. A, 3.75%, 1/01/09, FSA .......... No Opt. Call 1,539,870
Met. Pier & Exposition Auth., Dedicated St. Tax Rev.,
McCormick Place Expansion Proj., FGIC,
AAA 8,385 Zero Coupon, 6/15/08 ..................................................... ETM 7,443,700
AAA 215 Zero Coupon, 6/15/08 ..................................................... No Opt. Call 187,177
AAA 1,570 Ser. A, Zero Coupon, 6/15/08 ............................................. ETM 1,393,752
AAA 1,210 Univ. of Illinois, Auxiliary Facs. Sys., Ser. A, 5.00%, 4/01/09, AMBAC ..... No Opt. Call 1,363,852
-----------
102,964,613
-----------
INDIANA--1.5%
Indiana Hlth. Fac. Fin. Auth., Hosp. Rev. & Impvt., Ancilla Sys. Inc., MBIA,
AAA 3,860 Ser. A, 6.25%, 7/01/08 ................................................... 07/03 @ 102 4,065,970
AAA 2,965 Ser. B, 6.25%, 7/01/08 ................................................... 07/03 @ 102 3,123,212
-----------
7,189,182
-----------
KANSAS--0.2%
AAA 1,000 Kansas Dev. Fin. Auth., Pub. Wtr. Sply., 4.00%, 4/01/09, AMBAC ............. No Opt. Call 1,077,410
-----------
KENTUCKY--0.7%
AAA 3,890 Owensboro Elec. Lt. & Pwr., Ser. B, Zero Coupon, 1/01/09, AMBAC ............ No Opt. Call 3,305,177
-----------
LOUISIANA--1.2%
AAA 5,770 Louisiana Pub. Facs. Auth., Ochsner Clinic Fndtn. Proj., Ser. A, 3.50%,
5/15/09, MBIA ............................................................ No Opt. Call 6,033,920
-----------
MASSACHUSETTS--1.1%
AAA 4,465(3) Chelsea Sch. Proj. Loan, 6.00%, 6/15/04, AMBAC ............................. N/A 4,770,674
AAA 565 Massachusetts Hsg. Fin. Agcy., Hsg. Projs., Ser. A, 5.95%, 10/01/08, AMBAC . 07/03 @ 102 578,040
-----------
5,348,714
-----------
MICHIGAN--5.7%
AAA 1,665 Detroit, GO, 3.50%, 4/01/09, MBIA .......................................... No Opt. Call 1,744,171
AAA 6,315 Detroit City Sch. Dist., GO, Sch. Bldg. & Site Impvt., Ser. A, 4.00%,
5/01/09, FGIC ............................................................ No Opt. Call 6,789,256
Lake Orion, Cmnty. Sch. Dist., AMBAC,
AAA 3,290(3) 6.60%, 5/01/05 ........................................................... N/A 3,639,793
AAA 3,285(3) 6.70%, 5/01/05 ........................................................... N/A 3,640,207
AAA 3,000 Michigan Trunk Line, Ser. A, 4.125%, 11/01/08, FSA ......................... No Opt. Call 3,281,850
AAA 2,695 West Ottawa Pub. Sch. Dist., GO, Ser. B, 3.50%, 5/01/09, FGIC .............. No Opt. Call 2,830,882
AAA 2,000 Western Twnshps. Util. Auth. Sewage Disp. Sys., 5.00%, 1/01/09, FGIC ....... No Opt. Call 2,249,420
AAA 3,400 Wyandotte Elec., 6.25%, 10/01/08, MBIA ..................................... No Opt. Call 3,865,358
-----------
28,040,937
-----------
MINNESOTA--1.6%
Aaa 7,390 Minneapolis Spec. Sch. Dist. 1, 3.00%, 2/01/09, FSA ........................ No Opt. Call 7,560,266
-----------
MISSISSIPPI--0.5%
AAA 2,175 De Soto Cnty. Sch. Dist., GO, 3.25%, 2/01/09, FSA No Opt. Call 2,253,235
-----------
NEVADA--6.3%
AAA 16,270 Clark Cnty. Sch. Dist, Ser. A, 4.00%, 6/01/09, FGIC ........................ No Opt. Call 17,536,294
AAA 2,245 Las Vegas Clark Cnty. Library Dist., 4.75%, 2/01/09 ........................ No Opt. Call 2,493,724
Nevada Dept. of Bus. & Ind. Las Vegas Monorail Proj., AMBAC,
AAA 2,085 Zero Coupon, 1/01/09 ..................................................... No Opt. Call 1,752,442
AAA 3,585 Zero Coupon, 1/01/10 ..................................................... No Opt. Call 2,860,866
Washoe Cnty. Arpt. Auth., Arpt. Sys. Impvt., Ser. B, MBIA,
AAA 3,135(3) 5.70%, 7/01/03 ........................................................... N/A 3,197,700
AAA 2,645(3) 5.75%, 7/01/03 ........................................................... N/A 2,697,900
-----------
30,538,926
-----------
See Notes to Financial Statements.
14
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY--7.5%
Monmouth Cnty. Impvt. Auth., Gov't. Loan,
AAA $ 1,220 3.10%, 4/15/09, AMBAC .................................................... No Opt. Call $ 1,256,966
AAA 1,000 5.00%, 12/01/08, FSA ..................................................... No Opt. Call 1,137,550
AAA 30,275(3) New Jersey Econ. Dev. Auth., Mkt. Transp. Fac. Rev., Ser. A, 5.80%, 7/01/04,
MBIA ..................................................................... N/A 32,356,406
AAA 1,750 New Jersey Transp. Trust Fund Auth., Transp. Sys., Ser. C, 5.25%, 12/15/08,
AMBAC .................................................................... No Opt. Call 2,011,783
-----------
36,762,705
-----------
NEW MEXICO--1.2%
AAA 2,030 Farmington Util. Sys., Ser. A, 3.50%, 5/15/09, FSA ......................... No Opt. Call 2,133,022
AAA 3,380 New Mexico Fin. Auth., Pub. Proj., Ser. A, 3.80%, 6/01/08, MBIA ............ No Opt. Call 3,614,775
-----------
5,747,797
-----------
NEW YORK--14.0%
AAA 15,915 New York, GO, Ser. F, 5.25%, 9/15/09, MBIA ................................. 09/08 @ 101 18,164,426
New York City, GO, MBIA,
AAA 5,000 Ser. E, 6.125%, 8/01/06 .................................................. No Opt. Call 5,626,950
AAA 15,500 Ser. E, 6.20%, 8/01/07 ................................................... No Opt. Call 17,846,545
AAA 5,000 Ser. G, 5.75%, 2/01/08 ................................................... 02/06 @ 101.5 5,533,250
AAA 4,250 New York City Hlth. & Hosp. Corp., Hlth. Sys. Svcs., Ser. A, 3.50%, 2/15/09,
AMBAC .................................................................... No Opt. Call 4,425,185
New York Env. Fac. Corp., PCR, Ser. D,
AAA 7,080(3) 6.50%, 11/15/04 .......................................................... N/A 7,762,229
AAA 1,030 6.50%, 5/15/07 ........................................................... 11/04 @ 102 1,120,311
AAA 80 6.50%, 11/15/07 .......................................................... 11/04 @ 102 87,014
AAA 3,395 New York Thruway Auth., Svc. Contract Rev., Local Hwy. & Brdg., Ser. A,
5.40%, 1/01/09, MBIA ..................................................... 01/05 @ 102 3,642,088
AAA 4,000 Port Auth. of NY & NJ, Ser. 129, 2.875%, 11/01/08, FSA ..................... No Opt. Call 4,125,880
-----------
68,333,878
-----------
NORTH CAROLINA--8.2%
AAA 1,000(3) Cumberland Cnty., COP, Civic Ctr. Proj., Ser. A, 6.375%, 12/01/04, AMBAC ... N/A 1,097,090
No. Carolina Eastn. Mun. Pwr., Agcy., Sys. Rev., Ser. B,
AAA 13,500 6.125%, 1/01/09, FGIC .................................................... No Opt. Call 15,920,145
AAA 5,000 7.00%, 1/01/08, CAPMAC ................................................... No Opt. Call 5,987,000
AAA 14,675 7.25%, 1/01/07, CAPMAC ................................................... No Opt. Call 17,279,079
-----------
40,283,314
-----------
OHIO--1.2%
AAA 2,410(3) Cleveland, GO, 6.40%, 11/15/04, MBIA ....................................... N/A 2,638,974
Ohio Bldg. Auth., Ser. A,
AAA 1,000(3) Juvenile Correctional Proj., 6.50%, 10/01/04, AMBAC ...................... N/A 1,089,570
AAA 2,000 Workers' Comp. Facs., 5.00%, 4/01/09, FGIC ............................... No Opt. Call 2,264,580
-----------
5,993,124
-----------
OREGON--1.9%
AAA 1,285 Lane Cnty. Sch. Dist., No. 4, 3.00%, 1/01/09, FSA .......................... No Opt. Call 1,317,523
Oregon Dept. of Admin. Svcs., FSA,
AAA 2,905 COP, 5.00%, 11/01/08 ..................................................... No Opt. Call 3,258,364
AAA 2,255 Lottery Rev., Ser. C, 3.125%, 4/01/09 .................................... No Opt. Call 2,329,551
Aaa 2,000 Washington & Clackamas Cntys. Sch. Dist., GO, 3.75%, 6/15/08, MBIA ......... No Opt. Call 2,145,040
-----------
9,050,478
-----------
PENNSYLVANIA--12.3%
AAA 4,000 Allegheny Cnty. Hosp. Dev. Auth., Magee Women's Hosp., 6.25%, 10/01/08,
FGIC ..................................................................... 07/03 @ 102 4,080,000
Aaa 1,460 Bensalem Twp. Sch. Dist., GO, 3.25%, 8/15/09, FGIC ......................... No Opt. Call 1,515,684
Dauphin Cnty. Gen. Auth., HAPSCO-Western Pennsylvania Hosp. Proj., MBIA,
AAA 8,480 Ser. A, 6.25%, 7/01/08 ................................................... ETM 8,587,611
AAA 4,290 Ser. B, 6.25%, 7/01/08 ................................................... 08/03 @ 101 4,779,318
AAA 3,500 Indiana Cnty. Indl. Dev. Auth., PCR, Elec. & Gas Corp., Ser. A, 6.00%,
6/01/06, MBIA ............................................................ No Opt. Call 3,942,680
AAA 16,250 Lehigh Cnty. Indl. Dev. Auth., PCR, 3.125%, 11/01/08, AMBAC ................ No Opt. Call 16,667,462
Pennsylvania Dept. of Gen. Svcs., COP, FSA,
AAA 2,075 4.50%, 5/01/08 ........................................................... No Opt. Call 2,285,799
AAA 2,120 4.50%, 11/01/08 .......................................................... No Opt. Call 2,356,656
AAA 2,165 4.50%, 5/01/09 ........................................................... No Opt. Call 2,389,510
AAA 2,220 4.50%, 11/01/09 .......................................................... No Opt. Call 2,468,640
AAA 3,175 Philadelphia, GO, 4.10%, 9/15/08, FSA ...................................... No Opt. Call 3,459,289
AAA 3,125 Pittsburgh Pub. Parking Auth., Parking Rev., 3.25%, 12/01/08, AMBAC ........ No Opt. Call 3,281,063
AAA 3,955 West Chester Area Sch. Dist., GO, Ser. AA, 3.65%, 1/15/09, MBIA ............ 07/07 @ 100 4,138,987
-----------
59,952,699
-----------
See Notes to Financial Statements.
15
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA--0.8%
AAA $ 2,020 Chester Cnty. Sch. Dist., 3.25%, 2/01/09, FSA .............................. No Opt. Call $ 2,098,012
AAA 1,705 Lexington Cnty. Sch. Dist. 1, COP, 3.50%, 3/01/09, AMBAC ................... No Opt. Call 1,794,155
-----------
3,892,167
-----------
TENNESSEE--0.9%
AAA 1,000 Clarksville Wtr., Swr. & Gas Rev., 4.30%, 2/01/09, FSA ..................... No Opt. Call 1,089,180
AAA 3,150 Montgomery Cnty., 4.00%, 5/01/09, FSA ...................................... No Opt. Call 3,393,652
-----------
4,482,832
-----------
TEXAS--22.4%
AAA 5,380 Austin, GO, Pub. Impvt., 3.50%, 9/01/08, FSA ............................... No Opt. Call 5,680,258
Austin Util. Sys.,
AAA 5,000 6.625%, 11/15/08, AMBAC .................................................. No Opt. Call 6,082,300
AAA 11,515 Ser. A, Zero Coupon, 11/15/08, MBIA ...................................... No Opt. Call 9,899,100
AAA 5,000 Ser. A, Zero Coupon, 11/15/09, AMBAC ..................................... No Opt. Call 4,104,400
AAA 5,000 Ser. A, Zero Coupon, 11/15/09, MBIA ...................................... No Opt. Call 4,104,400
Coppell Indpt. Sch. Dist., MBIA,
AAA 1,430 6.10%, 8/15/09 ........................................................... ETM 1,727,497
AAA 620 6.10%, 8/15/09 ........................................................... 08/03 @ 100 623,361
AAA 2,500 Dallas Wtrwks. & Swr. Sys., 3.50%, 4/01/09, FSA ............................ No Opt. Call 2,616,150
AAA 1,445 El Paso Wtr. & Swr., Ser. A, 5.25%, 3/01/09 ................................ No Opt. Call 1,644,323
AAA 4,390 Houston Indpt. Sch. Dist., Zero Coupon, 8/15/09, AMBAC ..................... No Opt. Call 3,631,540
Lower Colorado River Auth.,
AAA 2,010 3.50%, 5/15/09, MBIA ..................................................... No Opt. Call 2,105,294
AAA 2,690 5.25%, 5/15/09, FSA ...................................................... No Opt. Call 3,072,115
AAA 1,650 Lubbock Cnty., 3.50%, 2/15/09, FGIC ........................................ No Opt. Call 1,725,916
AAA 6,000 San Antonio Elec. & Gas, Ser. B, Zero Coupon, 2/01/10, FGIC ................ ETM 4,830,780
AAA 9,050 Tarrant Regl. Wtr. Dist., Impvt., 3.50%, 3/01/09, FSA ...................... No Opt. Call 9,464,671
Texas Mun. Pwr. Agcy.,
AAA 820 Zero Coupon, 9/01/08, AMBAC .............................................. ETM 722,420
AAA 14,180 Zero Coupon, 9/01/08, AMBAC .............................................. No Opt. Call 12,260,311
AAA 875 Zero Coupon, 9/01/09, AMBAC .............................................. ETM 735,000
AAA 15,300 Zero Coupon, 9/01/09, AMBAC .............................................. No Opt. Call 12,639,330
AAA 7,000 5.00%, 9/01/10, FGIC ..................................................... 09/04 @ 100 7,281,680
Texas Pub. Fin. Auth.,
AAA 2,270 3.50%, 2/01/09, FGIC ..................................................... No Opt. Call 2,366,566
AAA 3,000 Ser. A, 5.50%, 2/01/09, AMBAC ............................................ 02/08 @ 101 3,409,980
AAA 5,900 Ser. B, 6.25%, 2/01/09, AMBAC ............................................ No Opt. Call 7,003,890
AAA 2,275 Ysleta Indpt. Sch. Dist., GO, Zero Coupon, 8/15/08 ......................... No Opt. Call 1,969,467
-----------
109,700,749
-----------
UTAH--3.5%
Intermountain Pwr. Agcy., Sply., Ser. B, MBIA,
AAA 2,215 6.00%, 7/01/07 ........................................................... ETM 2,568,293
AAA 1,285 6.00%, 7/01/07 ........................................................... No Opt. Call 1,479,253
AAA 1,550(3) Salt Lake Cnty. Mun. Bldg. Auth., Ser. A, 6.05%, 10/01/04, MBIA ............ N/A 1,664,870
AAA 10,300(3) Utah, GO, Ser. F, 5.00%, 7/01/07 ........................................... N/A 11,547,948
-----------
17,260,364
-----------
WASHINGTON--11.3%
King Cnty., GO,
AAA 3,060 Pub. Transp. Sales Tax, 3.50%, 12/01/08, FSA ............................. No Opt. Call 3,243,570
AAA 12,850 Ser. D, 5.55%, 12/01/08, MBIA ............................................ 12/07 @ 102 14,873,104
AAA 5,710 Seattle Impvt. Ltd. Tax, 4.00%, 7/01/08, FSA ............................... No Opt. Call 6,161,204
Snohomish Cnty. Sch. Dist., GO, MBIA,
AAA 2,235(3) 6.10%, 12/01/03 .......................................................... N/A 2,327,574
AAA 1,765 6.10%, 12/01/08 .......................................................... 12/03 @ 102 1,833,658
AAA 2,045 Washington, Motor Vehicle Fuel Tax, GO, 4.00%, 7/01/09, MBIA ............... No Opt. Call 2,202,772
Washington Hlth. Care Fac. Auth., Catholic Hlth. Initiatives A, MBIA,
AAA 1,010 5.30%, 12/01/08 .......................................................... No Opt. Call 1,157,066
AAA 1,000 5.40%, 12/01/10 .......................................................... 06/10 @ 101 1,153,630
Washington Pub. Pwr. Sply.,
AAA 3,000 Nuclear Proj. No. 2, 5.55%, 7/01/10, FGIC ................................ 07/03 @ 102 3,060,000
AAA 5,550 Nuclear Proj. No. 3, Zero Coupon, 7/01/07, MBIA .......................... No Opt. Call 5,005,878
AAA 2,000 Nuclear Proj. No. 3, Zero Coupon, 7/01/08, MBIA .......................... No Opt. Call 1,728,780
AAA 11,000 Ser. A, 5.80%, 7/01/07, FSA .............................................. No Opt. Call 12,556,170
-----------
55,303,406
-----------
See Notes to Financial Statements.
16
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA--0.3%
AAA $ 1,550 West Virginia Econ. Dev. Auth., Correctional Juvenile & Pub., Ser. A,
4.25%, 6/01/08, MBIA ..................................................... No Opt. Call $ 1,688,399
-----------
WISCONSIN--3.0%
Wisconsin, GO,
AAA 7,705 Ser. A, 4.00%, 5/01/09, FGIC ............................................. No Opt. Call 8,287,960
AAA 6,080 Ser. C, 4.00%, 5/01/09, MBIA ............................................. No Opt. Call 6,540,013
-----------
14,827,973
-----------
WYOMING--0.6%
Albany Cnty. Impvts. Statutory Trust, COP, MBIA,
AAA 1,270 3.75%, 1/15/09 ........................................................... No Opt. Call 1,339,863
AAA 1,395 3.75%, 7/15/09 ........................................................... No Opt. Call 1,478,281
-----------
2,818,144
-----------
TOTAL LONG-TERM INVESTMENTS (COST $687,139,514) 749,579,238
-----------
SHORT-TERM INVESTMENTS--1.9%
ALABAMA--0.6%
A-1+ 3,100 Jefferson Cnty., G.O., Ser. B, 1.00%, 7/01/03, FRDD(4) ..................... N/A 3,100,000
-----------
VIRGINIA--0.3%
A-1+ 1,200 Loudoun Cnty Indl. Dev. Auth., Howard Hughes Med., Ser. C, 0.95%,
7/01/03, FRDD(4) ......................................................... N/A 1,200,000
-----------
----------
SHARES
(000)
----------
MONEY MARKET FUND--1.0%
NR 5,000 AIM Tax Free Investment Co. Cash Reserve Portfolio ......................... N/A 5,000,000
-----------
TOTAL SHORT-TERM INVESTMENTS (COST $9,300,000) ............................. 9,300,000
-----------
TOTAL INVESTMENTS--155.2% (COST $696,439,514) .............................. 758,879,238
Other assets in excess of liabilities--0.2% ................................ 1,078,127
Preferred shares at redemption value, including dividends payable--(55.4)% . (271,078,102)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ......................... $488,879,263
============
------------------------------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may be
other call provisions at varying prices at later dates.
(3) This bond is prerefunded. U.S. government securities, held in escrow, are
used to pay interest on this security, as well as retire the bond in full at
the date indicated, typically at a premium to par.
(4) For purposes of amortized cost valuation, the maturity date of this
instrument is considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
Securities that are covered by insurance, which ensures the timely payment of
principal and interest, represent approximately 87.3% of the Trust's total
investments.
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
CAPMAC -- Capital Markets Assurance Company
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
FRDD -- Floating Rate Daily Demand
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
See Notes to Financial Statements.
17
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2003
BLACKROCK INSURED MUNICIPAL TERM TRUST
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--156.1%
ALABAMA--2.7%
AAA $ 1,410 Alabama Fed. Hwy. Fin. Auth., Grant Antic., Ser. A, 4.50%, 3/01/11, MBIA ... No Opt. Call $ 1,539,875
AAA 1,000 Birmingham Jefferson Civic Ctr. Auth., Ser. A, 4.375%, 1/01/11, FSA ........ No Opt. Call 1,082,280
AAA 5,000 Jefferson Cnty. Swr., 5.25%, 2/01/11, FSA .................................. 02/10 @ 100 5,622,550
-----------
8,244,705
-----------
ALASKA--7.8%
Anchorage, GO, Ser. B,
AAA 14,345 4.125%, 7/01/11, MBIA .................................................... No Opt. Call 15,403,231
AAA 6,000 4.625%, 7/01/10, FGIC .................................................... No Opt. Call 6,663,540
AAA 1,260 Univ. of Alaska, Ser. K, 3.75%, 10/01/10, FGIC ............................. No Opt. Call 1,332,135
-----------
23,398,906
-----------
ARIZONA--4.4%
AAA 1,000 Arizona St. Univ., 4.20%, 7/01/11, FGIC .................................... No Opt. Call 1,081,270
AAA 1,030 Mesa, GO, Ser. A, 3.75%, 7/01/10, FGIC ..................................... No Opt. Call 1,089,802
AAA 6,340 Pima Cnty. Str. & Hwy., 4.25%, 7/01/11, FGIC ............................... 07/08 @ 101 6,742,653
AAA 4,180 Univ. of Arizona Med. Ctr., Hosp. Rev., 6.25%, 7/01/10, MBIA ............... 08/03 @ 101 4,233,044
-----------
13,146,769
-----------
CALIFORNIA--8.2%
California, GO, FGIC,
AAA 4,355(3) 6.80%, 11/01/04 .......................................................... N/A 4,782,443
AAA 145 6.80%, 11/01/10 .......................................................... 11/04 @ 102 158,129
California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A,
AAA 5,000 3.60%, 5/01/10, AMBAC .................................................... No Opt. Call 5,177,600
AAA 3,500 3.70%, 5/01/11, MBIA ..................................................... No Opt. Call 3,610,950
AAA 6,100 Contra Costa Trans. Auth., Sales Tax Rev., 6.50%, 3/01/09, FGIC ............ ETM 7,266,381
AAA 3,065 Los Angeles Cnty., Asset Leasing Corp., 6.05%, 12/01/10, AMBAC ............. No Opt. Call 3,678,153
-----------
24,673,656
-----------
COLORADO--1.2%
AAA 3,245 Weld Cnty. Sch. Dist. No. 6, 3.75%, 12/01/10, FSA .......................... No Opt. Call 3,445,898
-----------
DELAWARE--0.4%
AAA 1,015 Delaware River & Bay Auth., 3.75%, 1/01/11, MBIA ........................... No Opt. Call 1,061,010
-----------
DISTRICT OF COLUMBIA--3.9%
AAA 10,000 Dist. of Columbia, GO, Ser. B, 5.50%, 6/01/11, FSA ......................... No Opt. Call 11,558,500
-----------
FLORIDA--1.2%
AAA 2,320 Tampa Wtr. & Swr., 5.50%, 10/01/10, FSA .................................... No Opt. Call 2,720,154
AAA 1,000 Volusia Cnty. Edl. Fac. Auth., Embry Riddle Aero. Univ., Ser. A, 6.50%,
10/15/10, CONNIE LEE ..................................................... 08/03 @ 102 1,023,810
-----------
3,743,964
-----------
GEORGIA--1.7%
AAA 5,000 Henry Cnty. Hosp. Auth., Ser. B, 6.375%, 7/01/09, FGIC ..................... 08/03 @ 101 5,063,800
-----------
HAWAII--4.5%
AAA 11,080 Hawaii, GO, Ser. CN, 5.25%, 3/01/11, FGIC .................................. 03/07 @ 102 12,300,240
AAA 1,000 Univ. of Hawaii, Univ. Sys., 3.875%, 7/15/10, FGIC ......................... No Opt. Call 1,063,650
-----------
13,363,890
-----------
ILLINOIS--14.3%
Chicago, GO, Ser. A,
AAA 4,000 4.375%, 1/01/11, AMBAC ................................................... No Opt. Call 4,339,320
AAA 1,790 5.00%, 1/01/11, MBIA ..................................................... No Opt. Call 2,016,202
Chicago Park Dist., Parking Rev., GO, Ser. A, FGIC,
AAA 3,120 3.50%, 1/01/10 ........................................................... No Opt. Call 3,231,821
AAA 3,695 4.00%, 1/01/11 ........................................................... No Opt. Call 3,916,330
AAA 1,000 Du Page & Cook Cntys. Sch. Dist., GO, 4.50%, 1/01/11, FGIC ................. No Opt. Call 1,093,140
AAA 1,750 Du Page & Will Cntys. Sch. Dist., GO, 4.25%, 12/30/10, FGIC ................ No Opt. Call 1,909,565
See Notes to Financial Statements.
18
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (CONTINUED)
Du Page Cnty. Forest Presvtn. Dist.,
AAA $ 5,000 Zero Coupon, 11/01/10 .................................................... No Opt. Call $ 3,879,600
AAA 11,965 Zero Coupon, 11/01/11 .................................................... No Opt. Call 8,845,366
Illinois, GO, Ser. 1,
AAA 1,500 4.50%, 2/01/11, FGIC ..................................................... No Opt. Call 1,636,515
AAA 2,000 4.50%, 4/01/11, FSA ...................................................... No Opt. Call 2,185,560
AAA 5,000 Illinois Edl. Fac. Auth., 5.70%, 7/01/05, FGIC ............................. 08/03 @ 102 5,185,500
AAA 2,265 Kane & Du Page Cntys. Sch. Dist., GO, Ser. A, 4.00%, 1/01/11, FSA .......... No Opt. Call 2,400,673
AAA 1,025 Orland Park, GO, Ser. A, 3.50%, 12/01/10, FGIC ............................. No Opt. Call 1,066,533
AAA 1,075 Rockford Sch. Dist., GO, 4.30%, 2/01/11, FGIC .............................. No Opt. Call 1,161,667
-----------
42,867,792
-----------
INDIANA--4.7%
AAA 2,500 Indiana Bond Bank, Sch. Fund, Ser. B, 5.00%, 2/01/11, MBIA ................. No Opt. Call 2,810,025
AAA 2,635 Indiana Mun. Pwr. Agcy. Pwr. Sply. Sys., Ser. A, 4.50%, 1/01/11, AMBAC ..... No Opt. Call 2,873,046
Indianapolis Loc. Pub. Impvt. Bond Bank, Wtr. Wtrwks. Proj., Ser. A, MBIA,
AAA 2,085 4.25%, 7/01/10 ........................................................... No Opt. Call 2,260,807
AAA 2,815 4.375%, 1/01/11 .......................................................... No Opt. Call 3,045,943
AAA 2,950 4.375%, 7/01/11 .......................................................... No Opt. Call 3,206,473
-----------
14,196,294
-----------
KANSAS--0.7%
Kansas Dev. Fin. Auth., Pub. Wtr. Sply., AMBAC,
AAA 1,025 4.125%, 4/01/10 .......................................................... No Opt. Call 1,105,319
AAA 1,000 4.25%, 4/01/11 ........................................................... No Opt. Call 1,083,080
-----------
2,188,399
-----------
KENTUCKY--3.3%
AAA 12,675 Kentucky Econ. Dev. Fin. Sys., Norton Hlth. Care Inc., Ser. B, Zero Coupon,
10/01/10, MBIA ........................................................... No Opt. Call 9,919,582
-----------
LOUISIANA--2.1%
AAA 6,010 Louisiana Pub. Facs. Auth., Ochsner Clinic Fndtn. Proj., Ser. B, 4.00%,
5/15/11, MBIA ............................................................ No Opt. Call 6,334,360
-----------
MASSACHUSETTS--5.1%
AAA 7,865(3) Massachusetts, GO, Ser. C, 6.70%, 11/01/04, FGIC ........................... N/A 8,548,861
AAA 1,725 Massachusetts Hlth. & Edl. Facs. Auth., So. Shore Hosp., Ser. D, 6.50%,
7/01/10, MBIA ............................................................ 08/03 @ 101 1,747,132
AAA 5,000 Massachusetts Hsg. Fin. Agcy., Hsg. Proj., Ser. H, 6.75%, 11/15/12 ......... 11/03 @ 102 5,146,300
-----------
15,442,293
-----------
MICHIGAN--4.0%
Detroit, GO, MBIA,
AAA 1,580 4.00%, 4/01/10 ........................................................... No Opt. Call 1,682,747
AAA 1,955 4.00%, 4/01/11 ........................................................... No Opt. Call 2,068,644
Michigan Mun. Bd. Auth.,
AAA 900 Ser. A, 6.50%, 11/01/12, MBIA ............................................ 08/03 @ 102 922,212
AAA 730 Ser. B, 6.45%, 11/01/07, AMBAC ........................................... 11/04 @ 102 790,006
AAA 730 Ser. B, 6.65%, 11/01/09, AMBAC ........................................... 11/04 @ 102 793,430
AAA 1,310(3) Ser. G, 6.45%, 11/01/04, AMBAC ........................................... N/A 1,432,537
AAA 1,320(3) Ser. G, 6.65%, 11/01/04, AMBAC ........................................... N/A 1,446,958
AAA 2,810 Wyandotte City Sch. Dist., Bldg. & Site, 4.00%, 5/01/11, FSA ............... No Opt. Call 2,992,453
-----------
12,128,987
-----------
MINNESOTA--1.7%
AAA 2,800 Hopkins Indpt. Sch. Dist. No. 270, GO, Ser. B, 4.00%, 2/01/11, FSA ......... No Opt. Call 2,977,156
AAA 2,180 So. Minnesota Mun. Pwr. Agcy., Ser. B, 5.75%, 1/01/11 ...................... ETM 2,243,373
-----------
5,220,529
-----------
NEVADA--3.2%
AAA 4,185(3) Clark Cnty. Sch. Dist., GO, 6.75%, 12/15/04, FGIC .......................... N/A 4,581,403
Nevada Dept. of Bus. & Ind., Las Vegas Monorail Proj., AMBAC,
AAA 3,795 Zero Coupon, 1/01/11 ..................................................... No Opt. Call 2,884,883
AAA 2,870 Zero Coupon, 1/01/12 ..................................................... No Opt. Call 2,079,229
-----------
9,545,515
-----------
NEW JERSEY--0.3%
AAA 1,000 Monmouth Cnty. Impvt. Auth., Govt. Loan, 3.375%, 12/01/10, FSA ............. No Opt. Call 1,035,620
-----------
See Notes to Financial Statements.
19
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO--4.1%
AAA $ 1,750 Las Cruces Sch. Dist. No. 002, GO, 5.25%, 8/01/11, FSA ..................... 08/09 @ 100 $ 1,951,653
New Mexico Fin. Auth., Pub. Proj., Ser. A, MBIA,
AAA 2,025 3.40%, 6/01/11 ........................................................... No Opt. Call 2,057,643
AAA 1,625 4.20%, 6/01/10 ........................................................... No Opt. Call 1,753,310
AAA 3,625 4.30%, 6/01/11 ........................................................... No Opt. Call 3,915,580
AAA 2,230 New Mexico Hwy. Comn., Ser. B, 4.75%, 6/15/11, AMBAC ....................... No Opt. Call 2,479,693
-----------
12,157,879
-----------
NEW YORK--13.7%
AAA 8,950 Long Island Pwr. Auth., Elec. Sys. Rev., Ser. A, 5.50%, 12/01/10, AMBAC .... No Opt. Call 10,434,894
AAA 4,500(3) New York City, GO, Ser. B1, 6.95%, 8/15/04, MBIA ........................... 08/04 @ 101 4,848,930
New York Env. Fac. Corp., PCR, Ser. D,
AAA 5,145(3) 6.70%, 5/15/09 ........................................................... N/A 5,654,767
AAA 1,010 6.70%, 5/15/09 ........................................................... 11/04 @ 102 1,096,779
AAA 4,180(3) 6.80%, 5/15/10 ........................................................... N/A 4,599,798
AAA 785 6.80%, 5/15/10 ........................................................... 11/04 @ 102 855,422
New York Med Care Fac. Fin., New York Hosp., Ser. A, AMBAC,
AAA 9,715(3) 6.60%, 2/15/05 ........................................................... 02/05 @ 102 10,752,853
AAA 2,695(3) 6.625%, 2/15/05 .......................................................... 02/05 @ 102 2,983,985
-----------
41,227,428
-----------
OHIO--0.7%
AAA 1,000 Akron, GO, 4.00%, 12/01/10, MBIA ........................................... No Opt. Call 1,076,460
AAA 1,015 Univ. of Cincinnati, Ser. G, 3.50%, 6/01/09, AMBAC ......................... No Opt. Call 1,068,602
-----------
2,145,062
-----------
OREGON--4.4%
AAA 1,995 Lane Cnty. Sch. Dist. No. 4, 3.75%, 1/01/11, FSA ........................... No Opt. Call 2,088,167
AAA 2,940 Oregon Dept. of Admin. Svcs., Lottery Rev., Ser. C, 3.50%, 4/01/11, FSA .... No Opt. Call 3,020,732
Washington & Clackamas Cntys. Sch. Dist., GO, MBIA,
AAA 3,820 4.00%, 6/15/10 ........................................................... No Opt. Call 4,100,350
AAA 3,720 4.00%, 6/15/11 ........................................................... No Opt. Call 3,968,533
-----------
13,177,782
-----------
PENNSYLVANIA--9.0%
AAA 2,430 Central York Sch. Dist., GO, 4.125%, 6/01/11, FGIC ......................... No Opt. Call 2,600,465
AAA 4,285 Dauphin Cnty. Gen. Auth., HAPSCO-Western Pennsylvania Hosp. Proj., Ser. B,
6.25%, 7/01/08, MBIA ..................................................... ETM 4,773,747
AAA 7,500 Pennsylvania Higher Edl. Facs. Auth., Univ. of Pennsylvania Hlth. Svcs.,
Ser. A, 5.25%, 8/01/10, FSA .............................................. 08/09 @ 101 8,479,725
AAA 2,100 Philadelphia Wtr. & Wst., 5.625%, 6/15/08, AMBAC ........................... No Opt. Call 2,428,650
AAA 7,000 Pittsburgh, GO, Ser. A, 5.20%, 3/01/10, FGIC ............................... 09/05 @ 100 7,508,270
AAA 1,250 Wilson Sch. Dist., GO, 4.00%, 5/15/10, FSA ................................. No Opt. Call 1,331,850
-----------
27,122,707
-----------
RHODE ISLAND--1.9%
AAA 5,000 Rhode Island & Providence Plantations, GO, Ser. B, 4.20%, 6/01/10, FGIC .... ETM 5,456,700
AAA 235 Rhode Island Clean Wtr. Protection Fin. Agcy., PCR, Ser. A, 6.70%,
10/01/10, MBIA ............................................................. 10/03 @ 101 240,363
-----------
5,697,063
-----------
SOUTH CAROLINA--5.1%
AAA 14,925 Piedmont Mun. Pwr. Agcy., Elec. Rev., 6.30%, 1/01/11, MBIA ................. 08/03 @ 102 15,263,947
-----------
TENNESSEE--0.8%
Clarksville Wtr., Swr. & Gas, FSA,
AAA 1,005 4.45%, 2/01/10 ........................................................... No Opt. Call 1,097,661
AAA 1,100 4.65%, 2/01/11 ........................................................... No Opt. Call 1,212,959
-----------
2,310,620
-----------
TEXAS--14.7%
AAA 1,090 Addison, GO, 3.375%, 2/15/11, FGIC ......................................... No Opt. Call 1,108,072
Bexar Met. Wtr. Dist., Wtrwrks. Sys., FSA,
AAA 1,085 3.70%, 5/01/10 ........................................................... No Opt. Call 1,134,975
AAA 1,090 3.80%, 5/01/11 ........................................................... No Opt. Call 1,137,415
AAA 2,500 Dallas Ft. Worth Regl. Arpt., Ser. A, 7.375%, 11/01/10, FGIC ............... 05/04 @ 102 2,664,075
AAA 2,000 Dallas Rapid Transit, 4.30%, 12/01/10, AMBAC ............................... No Opt. Call 2,178,800
Harris Cnty., Toll Road Rev.,
AAA 2,585 Zero Coupon, 8/15/08, FGIC ............................................... ETM 2,243,200
AAA 2,490 Houston Area Wtr. Corp., Northeast Wtr. Purification Proj., 4.50%,
3/01/11, FGIC ............................................................ No Opt. Call 2,714,025
See Notes to Financial Statements.
20
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
AAA $ 10,440 Houston Wtr. & Swr. Sys., Ser. C, Zero Coupon, 12/01/10, AMBAC ............. No Opt. Call $ 8,065,631
AAA 5,550 Katy Indpt. Sch. Dist., GO, Ser. A, Zero Coupon, 2/15/11 ................... No Opt. Call 4,197,132
Texas Mun. Pwr. Agcy., MBIA,
AAA 3,210 5.25%, 9/01/12 ........................................................... 09/03 @ 100 3,229,806
AAA 4,000 5.50%, 9/01/10 ........................................................... No Opt. Call 4,654,560
AAA 2,245 Texas Pub. Fin. Auth., 4.00%, 2/01/11, FGIC ................................ No Opt. Call 2,362,144
AAA 6,630 Texas Univ. Sys. Fin., 3.50%, 3/15/11, FSA ................................. No Opt. Call 6,779,043
AAA 1,500 Univ. of Houston, Ser. A, 4.00%, 2/15/10, FSA .............................. No Opt. Call 1,592,130
-----------
44,061,008
-----------
UTAH--2.6%
AAA 3,470 Intermountain Pwr. Agcy., Sply., Ser. A, 5.25%, 7/01/11, MBIA .............. 07/09 @ 101 3,889,662
AAA 1,450(3) Salt Lake Cnty. Mun. Bldg. Auth., Ser. A, 6.15%, 10/01/04, MBIA ............ N/A 1,559,257
AAA 3,175 Salt Lake Cnty. Wtr. Conservancy Dist., Ser. A, Zero Coupon, 10/01/10,
AMBAC .................................................................... No Opt. Call 2,493,645
-----------
7,942,564
-----------
WASHINGTON--12.8%
AAA 7,345 Benton Cnty. Sch. Dist. No. 17, GO, Kennewick Sch., 4.50%, 12/01/10, FSA ... No Opt. Call 8,098,817
AAA 1,000 Chelan Cnty. Sch. Dist., GO, 4.50%, 12/01/10, FSA .......................... No Opt. Call 1,102,630
AAA 3,000 Clark Cnty. Pub. Util. Dist. No. 1, Elec. Rev., 4.50%, 1/01/11, AMBAC ...... No Opt. Call 3,264,720
AAA 2,040 Clark Cnty. Sch. Dist. No. 114, Evergreen, GO, 4.125%, 12/01/10, FSA ....... No Opt. Call 2,191,715
AAA 1,515 Richland Wtr. & Swr., 4.00%, 11/01/10, MBIA ................................ No Opt. Call 1,620,292
AAA 1,010 Tacoma, GO, 4.625%, 12/01/10, FGIC ......................................... No Opt. Call 1,118,464
Washington, GO, MBIA,
AAA 5,000 Ser. A, 5.50%, 7/01/11 ................................................... 07/09 @ 100 5,677,800
AAA 1,505 Ser. R, 3.125%, 1/01/11 .................................................. No Opt. Call 1,501,614
Washington Pub. Pwr. Sply. Sys., MBIA,
AAA 9,160 Nuclear Proj. No. 2, Ser. A, Zero Coupon, 7/01/10 ........................ ETM 7,366,381
AAA 3,745 Nuclear Proj. No. 2, Ser. A, Zero Coupon, 7/01/10 ........................ No Opt. Call 2,917,205
AAA 1,300 Ser. B, Zero Coupon, 7/01/10 ............................................. No Opt. Call 1,012,648
AAA 2,280 Whatcom Cnty. Sch. Dist. No. 503, GO, 4.50%, 12/01/10, FSA ................. No Opt. Call 2,513,996
-----------
38,386,282
-----------
WEST VIRGINIA--3.4%
West Virginia Econ. Dev. Auth., Correctional Juvenile & Pub., Ser. A, MBIA,
AAA 3,705 4.50%, 6/01/10 ........................................................... No Opt. Call 4,061,829
AAA 4,420 4.50%, 6/01/11 ........................................................... No Opt. Call 4,829,336
AAA 1,170 West Virginia Sch. Bldg. Auth., 4.00%, 7/01/11, AMBAC ...................... No Opt. Call 1,238,339
-----------
10,129,504
-----------
WISCONSIN--5.5%
AAA 1,045 Appleton Wtrwks., 4.375%, 1/01/11, FGIC .................................... No Opt. Call 1,130,732
Wisconsin Clean Wtr., Ser. 2, MBIA,
AAA 4,640 4.00%, 6/01/10 ........................................................... No Opt. Call 4,942,667
AAA 9,850 4.00%, 6/01/11 ........................................................... No Opt. Call 10,419,724
-----------
16,493,123
-----------
WYOMING--2.0%
Albany Cnty. Impvts. Statutory Trust, COP, MBIA,
AAA 1,325 4.00%, 1/15/10 ........................................................... No Opt. Call 1,403,029
AAA 1,450 4.00%, 7/15/10 ........................................................... No Opt. Call 1,541,394
AAA 1,480 4.00%, 1/15/11 ........................................................... No Opt. Call 1,556,842
AAA 1,510 4.00%, 7/15/11 ........................................................... No Opt. Call 1,593,080
-----------
6,094,345
-----------
TOTAL LONG-TERM INVESTMENTS (COST $429,420,229) ............................ 468,789,783
-----------
See Notes to Financial Statements.
21
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT--0.6%
FLORIDA
F-1+ $ 1,700 Orange Cnty. Sch. Brd., COP, Ser. B-1, 0.90%, 7/01/03, AMBAC, FRDD
(cost $1,700,000)(4) ..................................................... N/A $ 1,700,000
------------
TOTAL INVESTMENTS--156.7% (COST $431,120,229) .............................. 470,489,783
Other assets in excess of liabilities--0.1% ................................ 267,959
Preferred shares at redemption value, including dividends payable--(56.8%) . (170,458,349)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% $300,299,393
============
-------------------------------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may be
other call provisions at varying prices at later dates.
(3) This bond is prerefunded. U.S. government securities, held in escrow, are
used to pay interest on this security, as well as retire the bond in full at
the date indicated, typically at a premium to par.
(4) For purposes of amortized cost valuation, the maturity date of this
instrument is considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
Securities that are covered by insurance, which ensures the timely payment of
principal and interest, represent approximately 93.1% of the Trust's total
investments.
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
CONNIE LEE -- College Construction Loan Insurance Association
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
FRDD -- Floating Rate Daily Demand
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
See Notes to Financial Statements.
22
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2003
BLACKROCK MUNICIPAL 2018 TERM TRUST
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--153.8%
ALABAMA--5.1%
Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj.,
Baa2 $ 5,000 6.15%, 6/01/19 ........................................................... 06/05 @ 102 $ 5,133,900
BBB 1,000 Proj. A, 5.90%, 2/01/17 .................................................. 02/04 @ 102 1,018,080
A2 5,845 Huntsville Hlth. Care Auth., Ser. A, 5.625%, 6/01/22 ....................... 06/12 @ 101 6,071,143
-----------
12,223,123
-----------
ARIZONA--1.8%
AA 5,525 Glendale Cnty., 2.00%, 7/01/18 ............................................. 07/13 @ 100 4,297,069
-----------
CALIFORNIA--1.40%
B- 4,230 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc.,
Ser. C, 7.50%, 12/01/24 .................................................. 12/12 @ 102 3,459,632
-----------
CONNECTICUT--3.0%
Baa3 37,50(3) Mashantucket Western Pequot Tribe, Spec. Rev., Ser. B, 5.75%, 9/01/18 ...... 09/07 @ 102 3,942,450
BBB- 3,150 Mohegan Tribe Indians, Pub. Impvt. Priority Dist., 6.00%, 1/01/16 .......... 01/11 @ 101 3,351,222
-----------
7,293,672
-----------
DELAWARE--6.3%
NR 140,00(3) Charter Mac Equity Issuer Trust, Ser. A-3, 6.80%, 10/01/52 ................. 10/14 @ 100 15,149,260
-----------
FLORIDA--6.0%
Baa1 1,585 Capital Trust Agy. Mult. Fam., American Opp., Ser. A, 5.75%, 12/01/23 ...... 06/11 @ 102 1,559,085
AAA 5,000 Escambia Cnty. Hlth. Facs. Auth., Hlth. Care Fac. Rev., 5.95%, 7/01/20,
AMBAC .................................................................... No Opt. Call 5,588,350
NR 1,030 Sumter Landing Cmnty. Dev. Dist., 6.25%, 5/01/13 ........................... No Opt. Call 1,039,373
NR 6,160 Village Cmnty. Dev., Assmt. Rev., Ser. B, 5.40%, 5/01/07 ................... No Opt. Call 6,236,076
-----------
14,422,884
-----------
GEORGIA--2.4%
Gainesville & Hall Cnty. Hosp. Auth., Northeast Georgia Hlth. Sys. Inc. Proj.,
A 2,700 5.25%, 5/15/18 ........................................................... 05/11 @ 100 2,773,710
A 2,800 5.50%, 5/15/21 ........................................................... 05/11 @ 100 2,897,692
-----------
5,671,402
-----------
ILLINOIS--21.10%
AAA 5,000 Chicago O' Hare Intl. Arpt., Ser. A, 5.75%, 1/01/18, MBIA .................. 01/12 @ 100 5,520,100
Illinois Dev. Fin. Auth.,
A 12,500 Adventist Hlth. Sys. Sunbelt Obl., 5.50%, 11/15/20 ....................... 11/09 @ 101 12,847,875
A2 10,000 PCR, Ser. C, 5.95%, 8/15/26 .............................................. 12/06 @ 101 10,314,400
BBB 5,980 Illinois Edl. Facs. Auth., Student Hsg., Edl. Adv. Fund, Univ. Ctr. Proj.,
6.00%, 5/01/22 ........................................................... 05/12 @ 101 6,036,870
A2 5,000 Illinois Hlth. Facs. Auth., Elmhurst Mem. Hlth. Care, 5.50%, 1/01/22 ....... 01/13 @ 100 5,117,600
Illinois Sports Facs. Auth., Dedicated St. Tax Supported Rev., AMBAC,
AAA 1,885 Zero Coupon, 6/15/19 ..................................................... 06/15 @ 101 1,448,227
AAA 1,985 Zero Coupon, 6/15/20 ..................................................... 06/15 @ 101 1,517,969
AAA 2,090 Zero Coupon, 6/15/21 ..................................................... 06/15 @ 101 1,585,181
Kane & Du Page Cntys. Sch. Dist., GO, Ser. B, FSA,
AAA 4,625 Zero Coupon, 1/01/18 ..................................................... 01/12 @ 72.424 2,379,840
AAA 4,100 Zero Coupon, 1/01/19 ..................................................... 01/12 @ 67.935 1,984,892
AAA 2,950 Zero Coupon, 1/01/21 ..................................................... 01/12 @ 60.037 1,258,942
AAA 1,700 Zero Coupon, 1/01/22 ..................................................... 01/12 @ 56.453 681,105
-----------
50,693,001
-----------
INDIANA--7.90%
AA 13,970 Indiana Hlth. Fac. Fin. Auth., Sisters of St. Francis, 5.75%, 11/01/21 ..... 11/11 @ 101 14,955,165
Baa2 4,000 Petersburg, PCR, Pwr. & Lt. Conv., 5.75%, 8/01/21 .......................... 08/11 @ 102 3,954,320
-----------
18,909,485
-----------
LOUISIANA--1.70%
NR 4,000 Louisiana Pub. Facs. Auth., Dept. of Pub. Safety, 5.875%, 6/15/14 ............. 06/10 @ 100 4,128,480
-----------
See Notes to Financial Statements.
23
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN--11.50%
BBB $ 5,000 Dickinson Cnty. Econ. Dev. Corp., PCR, Champion Intl. Corp. Proj.,
5.85%, 10/01/18 .......................................................... 10/03 @ 102 $ 5,067,550
Michigan Hosp. Fin. Auth.,
A1 5,450 Henry Ford Hlth. Sys., Ser. A, 6.00%, 11/15/19 ........................... 11/09 @ 101 5,843,871
A 5,295 Hospital Oakwood Oblig. Grp., Ser. A, 6.00%, 4/01/22 ..................... 04/13 @ 100 5,643,676
BB 9,000 Midland Cnty. Econ. Dev., Ser. A, 6.875%, 7/23/09 .......................... 07/07 @ 101 9,197,910
Pontiac Tax Increment Fin. Auth., ACA
A 700 Dev. Area 2, 5.625%, 6/01/22 ............................................. 06/12 @ 101 748,209
A 1,000 Dev. Area 3, 5.375%, 6/01/17 ............................................. 06/12 @ 101 1,066,400
-----------
27,567,616
-----------
MISSISSIPPI--4.8%
BBB 9,800 Lowndes Cnty. Sld. Wst. Disp., PCR, Weyerhaeuser Co. Proj., Ser. A,
6.80%, 4/01/22 ........................................................... No Opt. Call 11,546,458
-----------
NEVADA--2.6%
NR 1,100 Las Vegas Spec. Imp. Dist. No. 809, Summerlin Area, 5.35%, 6/01/17 ......... 12/03 @ 103 1,068,100
BBB+ 5,000 Nevada Dept. of Bus. & Ind., Republic Svc. Inc. Proj., 5.625%, 12/01/26 .... No Opt. Call 5,216,400
-----------
6,284,500
-----------
NEW HAMPSHIRE--4.1%
AAA 7,000 New Hampshire Bus. Fin. Auth., PCR, Pub. Svc. Co. Proj., Ser. C, 5.45%,
5/01/21, MBIA ............................................................ 05/12 @ 101 7,755,790
A+ 2,025 New Hampshire Hlth. & Ed. Facs. Auth., Exeter Hosp. Proj., 6.00%, 10/01/24 . 10/11 @ 101 2,155,957
-----------
9,911,747
-----------
NEW JERSEY--12.7%
New Jersey Econ. Dev. Auth.,
B 5,250 Continental Airlines Inc. Proj., 7.00%, 11/15/30 ......................... 11/10 @ 101 4,187,085
B 6,750 Continental Airlines Inc. Proj., 7.20%, 11/15/30 ......................... 11/10 @ 101 5,383,125
Baa3 8,410 Kapkowski Road Landfill Proj., 5.50%, 4/01/16 ............................ No Opt. Call 8,660,870
A- 15,000 Tobacco Settlement Fin. Corp., 6.00%, 6/01/37 .............................. 06/12 @ 100 12,273,750
-----------
30,504,830
-----------
NORTH CAROLINA--1.8%
A3 4,000 Wake Cnty. Ind. Facs., PCR, Carolina Pwr. & Lt. Co. Proj., 5.375%, 2/01/17 . 02/12 @ 101 4,249,240
-----------
OHIO--2.2%
Baa1 5,000 Ohio, PCR, Gen. Motors Corp. Proj., 5.625%, 3/01/15 ........................ No Opt. Call 5,380,050
-----------
PENNSYLVANIA--7.1%
Philadelphia Auth. for Ind. Dev., Ser. B, FSA,
AAA 5,000 5.50%, 10/01/18 .......................................................... 10/11 @ 101 5,691,700
AAA 5,000 5.50%, 10/01/19 .......................................................... 10/11 @ 101 5,657,250
West Cornwall Twnshp., Mun. Auth. Coll., Elizabethtown Coll. Proj.,
BBB+ 2,500 5.90%, 12/15/18 .......................................................... 12/11 @ 100 2,744,250
BBB+ 2,650 6.00%, 12/15/22 .......................................................... 12/11 @ 100 2,876,893
-----------
16,970,093
-----------
SOUTH CAROLINA--1.4%
NR 3,500 Lancaster Cnty., Assmnt. Rev., Edgewater Imp. Dist., Ser. B, 6.125%,
11/01/14 ................................................................. No Opt. Call 3,444,595
-----------
SOUTH DAKOTA--5.5%
A- 15,000 Edl. Enhancement Fdg. Corp., Tobacco Settlement Rev., Ser. B, 6.50%,
6/01/32 .................................................................. 06/12 @ 101 13,265,850
-----------
TENNESSEE--2.2%
AAA 12,000 Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd., Hosp. Facs. Rev., Ser. A,
Zero Coupon, 1/01/19, FSA .................................................. 01/13 @ 71.667 5,381,040
-----------
TEXAS--24.4%
BBB 2,000 Alliance Arpt. Auth. Inc. Spec. Facs., Fed. Express Corp. Proj.,
6.375%, 4/01/21 .......................................................... 04/06 @ 102 2,131,040
Birdville Indpt. Sch. Dist., GO, ...........................................
AAA 1,615 Zero Coupon, 2/15/18 ..................................................... No Opt. Call 821,647
AAA 1,815 Zero Coupon, 2/15/19 ..................................................... No Opt. Call 868,351
AAA 2,625 Zero Coupon, 2/15/20 ..................................................... No Opt. Call 1,180,594
AAA 2,500 Zero Coupon, 2/15/21 ..................................................... No Opt. Call 1,055,100
BBB 13,625 Brazos River Auth., PCR, TXU Elec. Co. Proj., Ser. C, Zero Coupon, 5/01/36 . No Opt. Call 13,878,697
NR 4,305 Dallas Cnty. Flood Control, 6.75%, 4/01/16 ................................. 04/13 @ 100 4,414,864
Dallas Ft. Worth Intl. Arpt. Fac. Impvt., Ser. A, FGIC,
AAA 5,000 5.875%, 11/01/17 ......................................................... 11/11 @ 100 5,633,000
AAA 5,000 5.875%, 11/01/18 ......................................................... 11/11 @ 100 5,591,750
Texas Affordable Hsg. Corp., Mult. Fam. Hsg. Rev.,
Arborstone/Baybrook Oaks, Ser. A,
A3 12,695 5.55%, 11/01/18 .......................................................... 11/11 @ 102 13,127,645
A3 9,800 5.75%, 11/01/22 .......................................................... 11/11 @ 102 10,146,430
-----------
58,849,118
-----------
See Notes to Financial Statements.
24
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON--4.9%
Energy Northwest Wind Proj.,
A- $ 5,000 Ser. A, 6.00%, 7/01/23 ................................................... 01/07 @ 103 $ 5,308,000
A- 6,175 Ser. B, 5.875%, 7/01/20 .................................................. 01/07 @ 103 6,547,291
-----------
11,855,291
-----------
WISCONSIN--11.9%
A- 14,500 Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32 ........................... 06/12 @ 100 12,764,640
Wisconsin Hlth. & Edl. Facs. Auth.,
A+ 5,000 Froedert & Cmnty. Hlth. Oblig., 5.375%, 10/01/21 ......................... 10/11 @ 101 5,109,650
A 10,000 Wheaton Franciscan Svcs., 6.25%, 8/15/22 ................................. 02/12 @ 101 10,847,500
-----------
28,721,790
-----------
TOTAL LONG-TERM INVESTMENTS (COST $360,414,126) ............................ 370,180,226
-----------
----------
SHARES
(000)
----------
MONEY MARKET FUND--0.8%
NR 2,000 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $2,000,000) ....... N/A 2,000,000
-----------
TOTAL INVESTMENTS--154.6% (COST $362,414,126) .............................. 372,180,226
Other assets in excess of liabilities--2.6% ................................ 6,220,381
Preferred shares at redemption value, including dividends payable--(57.2)% . (137,615,561)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100.0% ....................... $240,785,046
============
-------------------------------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may be
other call provisions at varying prices at later dates.
(3) Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A under
that Act, to qualified institutional buyers. As of June 30, 2003, the Trust
held 7.9% of its net assets, with a current market value of $19,091,710, in
securities restricted as to resale.
KEY TO ABBREVIATIONS
ACA -- American Capital Access
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
See Notes to Financial Statements.
25
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2003
BLACKROCK MUNICIPAL TARGET TERM TRUST
PRINCIPAL
AMOUNT OPTION CALL VALUE
RATING(1) (000) DESCRIPTION PROVISIONS(2) (NOTE 1)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--154.0%
ALABAMA--3.3%
AAA $ 9,450 Alabama Fed. Hwy. Fin. Auth., Grant Antic., Ser. A, 4.125%, 3/01/07, MBIA .. No Opt. Call $ 10,158,750
AAA 5,000 Jefferson Cnty., Capital Imprvt., GO, Ser. A, 5.00%, 4/01/07, MBIA ......... No Opt. Call 5,540,300
AAA 1,000 Mobile, GO, 4.00%, 2/15/07, AMBAC .......................................... No Opt. Call 1,069,790
-----------
16,768,840
-----------
ALASKA--4.1%
Anchorage, GO,
AAA 1,750 Ser. A, 4.125%, 6/01/06, FGIC ............................................ No Opt. Call 1,874,145
AAA 2,245 Ser. A, 4.25%, 6/01/07, FGIC ............................................. No Opt. Call 2,434,972
AAA 1,335 Ser. B, 3.20%, 7/01/07, MBIA ............................................. No Opt. Call 1,394,114
AAA 5,000 Ser. B, 3.25%, 7/01/07, MBIA ............................................. No Opt. Call 5,230,950
AAA 1,000 Ser. B, 4.25%, 7/01/07, FGIC ............................................. No Opt. Call 1,084,360
AAA 9,000 No. Slope Boro., Ser. B, Zero Coupon, 6/30/04, FSA ......................... No Opt. Call 8,900,010
-----------
20,918,551
-----------
ARIZONA--2.4%
AAA 5,000 Arizona Trans. Brd., Grant Antic., 4.125%, 1/01/07, MBIA ................... No Opt. Call 5,365,650
AAA 6,255 Maricopa Cnty. Pub. Fin. Corp., Lease Rev., 4.25%, 7/01/07, AMBAC .......... No Opt. Call 6,792,742
-----------
12,158,392
-----------
ARKANSAS--1.0%
AAA 5,000 Univ. of Arkansas, Athl. Fac. Rev., Razorback Stadium Proj.,
Zero Coupon, 12/01/21, FSA ............................................... 12/06 @ 100 5,301,800
-----------
CALIFORNIA--7.5%
AAA 6,000 California, GO, 6.30%, 9/01/06, AMBAC ...................................... No Opt. Call 6,837,780
AAA 30,000 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 3.50%, 5/01/07,
MBIA ..................................................................... No Opt. Call 31,604,400
-----------
38,442,180
-----------
COLORADO--8.5%
AAA 17,150 Denver City & Cnty., GO, Ser. B, 5.625%, 8/01/07, MBIA ..................... No Opt. Call 19,565,578
AAA 1,015 El Paso Cnty., COP, Detention Fac. Proj., Ser. B, 2.50%, 12/01/06, AMBAC ... No Opt. Call 1,042,811
AAA 9,700 Met. Football Stad. Dist., Sales Tax Rev., Ser. A, Zero Coupon, 1/01/07,
MBIA ..................................................................... No Opt. Call 8,914,882
Regl. Transp. Dist., COP, Transp. Vehicle Proj., Ser. A, MBIA,
AAA 6,215 5.00%, 6/01/06 ........................................................... No Opt. Call 6,811,764
AAA 5,470 5.00%, 6/01/07 ........................................................... No Opt. Call 6,095,221
AAA 1,100 Thornton, COP, 2.50%, 12/01/06, AMBAC ...................................... No Opt. Call 1,130,514
-----------
43,560,770
-----------
DELAWARE--0.2%
AAA 1,050 Delaware River & Bay Auth., 2.50%, 1/01/07, MBIA ........................... No Opt. Call 1,067,273
-----------
DISTRICT OF COLUMBIA--1.7%
AAA 8,250(3) Dist. of Columbia, GO, Ser. B, 5.90%, 6/01/04, MBIA ........................ N/A 8,790,952
-----------
FLORIDA--3.4%
Delray Beach, FSA,
AAA 1,255 Decade of Excellence Prog., GO, 3.50%, 2/01/07 ........................... No Opt. Call 1,323,674
AAA 1,740 Utils. Tax, 3.50%, 6/01/07 ............................................... No Opt. Call 1,847,149
AAA 1,645 Florida Mun. Loan Council, Ser. A, 4.00%, 5/01/07, MBIA .................... No Opt. Call 1,771,287
AAA 6,185 Jacksonville Hosp., Univ. Med. Ctr. Inc. Proj., 6.50%, 2/01/07, CONNIE LEE . 07/03 @ 101 6,269,301
AAA 1,765 Orange Cnty. Tourist Dev., Tax Rev., Ser. A, 6.375%, 10/01/06, AMBAC ....... ETM 1,802,012
AAA 2,000 Sarasota Wtr. & Swr. Sys., 4.25%, 10/01/06, MBIA ........................... No Opt. Call 2,166,220
AAA 1,865 Tampa Wtr. & Swr., 5.50%, 10/01/06, FSA .................................... No Opt. Call 2,093,388
-----------
17,273,031
-----------
GEORGIA--1.4%
AAA 1,990 Burke Cnty. Dev. Auth., PCR, Oglethorpe Pwr. Corp., Ser. B, 6.45%,
1/01/05, MBIA ............................................................ 01/04 @ 101 2,040,148
AAA 4,805 Columbus Wtr. & Swr., 4.00%, 5/01/07, FSA .................................. No Opt. Call 5,166,528
-----------
7,206,676
-----------
See Notes to Financial Statements.
26
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HAWAII--4.7%
Hawaii, GO,
AAA $ 5,675 Ser. CP, 5.50%, 10/01/06, FGIC .......................................... No Opt. Call $ 6,345,104
AAA 9,000 Ser. CS, 5.25%, 4/01/06, MBIA ........................................... No Opt. Call 9,855,450
AAA 1,265 Ser. CW, 3.60%, 8/01/06, FGIC ........................................... No Opt. Call 1,335,207
Honolulu City & Cnty., GO, Ser. A,
AAA 2,275 4.00%, 9/01/06, FSA ..................................................... No Opt. Call 2,432,430
AAA 3,500 5.80%, 1/01/07, FGIC .................................................... No Opt. Call 3,942,960
-----------
23,911,151
-----------
ILLINOIS--19.0%
Champaign Cnty. Cmnty. Unit Sch. Dist., No. 116, Ser. C, FGIC,
AAA 1,065 Zero Coupon, 1/01/07 .................................................... No Opt. Call 977,116
AAA 2,760 Zero Coupon, 1/01/08 .................................................... No Opt. Call 2,433,382
AAA 12,000 Chicago, GO, Ser. A, 4.25%, 1/01/07, MBIA .................................. No Opt. Call 12,894,240
AAA 2,665 Chicago Park Dist., Parking Rev., GO, Ser. A, 3.00%, 1/01/07, FGIC ......... No Opt. Call 2,751,772
AAA 1,565 Chicago Wstwtr. Trans., Ser. A, 3.50%, 1/01/07, AMBAC ...................... No Opt. Call 1,642,233
AAA 7,220 Cook Cnty. Cmnty. Sch. Dist., Zero Coupon, 12/01/07, FGIC .................. No Opt. Call 6,458,723
Du Page Cnty., Trans. Rev., FSA,
AAA 4,815 4.50%, 1/01/07 .......................................................... No Opt. Call 5,214,260
AAA 5,390 4.50%, 1/01/09 .......................................................... No Opt. Call 5,910,242
Illinois, GO, Ser. I,
AAA 15,080 3.25%, 11/01/06, FGIC ................................................... No Opt. Call 15,842,897
AAA 4,000 4.00%, 4/01/07, FSA ..................................................... No Opt. Call 4,285,640
AAA 12,625 4.25%, 4/01/07, MBIA .................................................... No Opt. Call 13,639,798
AAA 10,915 Illinois Hlth. Facs. Auth., Sisters Svcs. Inc., Ser. C, 6.625%,
6/01/06, MBIA ............................................................ 07/03 @ 101 11,056,786
Illinois Sales Tax, Ser. O,
AAA 5,900 Zero Coupon, 6/15/07 .................................................... No Opt. Call 5,348,468
AAA 5,635 Zero Coupon, 6/15/08 .................................................... No Opt. Call 4,900,985
AAA 1,000 Kane Cnty., GO, 3.75%, 1/01/07, FGIC ....................................... No Opt. Call 1,057,740
AAA 2,000 Will Cnty. Cmnty. Sch. Dist., 7.05%, 12/01/08, AMBAC ....................... No Opt. Call 2,463,300
-----------
96,877,582
-----------
INDIANA--2.7%
AAA 5,000 Indiana Bond Bank, Sch. Fund, 4.00%, 2/01/07, AMBAC ........................ No Opt. Call 5,341,750
AAA 9,000 Indiana Univ., Student Fee Rev., Zero Coupon, 8/01/06, AMBAC ............... No Opt. Call 8,424,180
-----------
13,765,930
-----------
IOWA--0.8%
AAA 3,940 West Des Moines Cmnty. Sch. Dist., 4.00%, 6/01/07, AMBAC ................... No Opt. Call 4,239,598
-----------
KENTUCKY--3.8%
AAA 12,610 Kentucky Econ. Dev. Fin. Sys., Norton Hlth. Care Inc., Ser. B, Zero Coupon,
10/01/07, MBIA .......................................................... No Opt. Call 11,332,229
Kentucky Ppty. & Bldgs. Auth., Proj. No. 69, FSA,
AAA 2,035 Ser. B, 4.00%, 8/01/06 .................................................. No Opt. Call 2,177,918
AAA 5,560 Ser. C, 4.00%, 8/01/06 .................................................. No Opt. Call 5,950,479
-----------
19,460,626
-----------
LOUISIANA--4.2%
AAA 3,555 Louisiana Off. Facs. Corp. Lease, Cap. Complex Prg., 4.00%, 5/01/07, AMBAC . No Opt. Call 3,815,653
AAA 4,565 Louisiana Pub. Facs. Auth., Ochsner Clinic Fndtn. Proj., Ser. A, 3.00%,
5/15/07, MBIA ........................................................... No Opt. Call 4,716,740
AAA 7,680(3) MuniMae Trust, Ser. 7, Cl. A, 4.40%, 12/17/06 .............................. N/A 7,963,853
AAA 5,250 New Orleans, GO, Zero Coupon, 9/01/06, AMBAC ............................... No Opt. Call 4,911,427
-----------
21,407,673
-----------
MASSACHUSETTS--3.6%
AAA 11,760 Massachusetts, GO, Ser. A, 5.25%, 1/01/09, FSA ............................. No Opt. Call 13,337,721
AAA 4,585(3) MuniMae Trust, Ser. 8, Cl. A, 4.40%, 12/17/06 .............................. N/A 4,754,462
-----------
18,092,183
-----------
MICHIGAN--3.7%
AAA 1,270 Detroit, GO, 3.00%, 4/01/07, MBIA .......................................... No Opt. Call 1,318,374
AAA 2,100 Grand Rapids Wtr. Sply., 4.00%, 1/01/07, FGIC .............................. No Opt. Call 2,245,467
Michigan Mun. Bd. Auth.,
AAA 5,000 Zero Coupon, 5/15/06, MBIA .............................................. No Opt. Call 4,717,400
AAA 1,165(3) Ser. G, 6.35%, 11/01/04, AMBAC .......................................... N/A 1,272,448
AAA 675 Ser. G, 6.35%, 11/01/06, AMBAC .......................................... 11/04 @ 102 731,470
Michigan Pub. Pwr. Agcy., Belle River Proj., Ser. A, MBIA,
AAA 1,000 2.70%, 1/01/07 .......................................................... No Opt. Call 1,025,560
AAA 2,000 5.00%, 1/01/07 .......................................................... No Opt. Call 2,205,800
AAA 4,850 Michigan Trunk Line, Ser. A, 4.00%, 11/01/06, FSA .......................... No Opt. Call 5,235,527
-----------
18,752,046
-----------
See Notes to Financial Statements.
27
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA--2.1%
AAA $ 5,075 Met. Council Minneapolis-St. Paul, GO, 5.25%, 12/01/06 ..................... No Opt. Call $ 5,685,675
Minneapolis Spec. Sch. Dist. No. 1, COP, FSA,
AAA 1,150 Ser. A, 3.00%, 2/01/07 .................................................. No Opt. Call 1,191,527
AAA 840 Ser. B, 3.25%, 2/01/07 .................................................. No Opt. Call 877,556
AAA 2,710 Minnesota Hsg. Fin. Auth., Ser. D, 5.35%, 8/01/06, MBIA .................... 02/05 @ 102 2,864,280
-----------
10,619,038
-----------
MISSISSIPPI--0.4%
AAA 1,935 Vicksburg, GO, 4.00%, 4/01/07, MBIA ........................................ No Opt. Call 2,079,699
-----------
NEBRASKA--0.8%
AAA 3,850 Douglas Cnty. Sch. Dist. No. 17 Millard, GO, 3.20%, 11/15/06, FSA .......... No Opt. Call 4,058,863
-----------
NEVADA--1.4%
AAA 2,975 Clark Cnty., Library Dist., GO, 4.00%, 2/01/07, FGIC ....................... No Opt. Call 3,187,950
AAA 2,005 Las Vegas, GO, Pub. Safety Bonds, 4.00%, 4/01/07, FSA ...................... No Opt. Call 2,154,934
Nevada Dept. of Bus. & Ind., Las Vegas Monorail Proj., AMBAC,
AAA 800 Zero Coupon, 1/01/07 .................................................... No Opt. Call 734,488
AAA 1,295 Zero Coupon, 1/01/08 .................................................... No Opt. Call 1,143,783
-----------
7,221,155
-----------
NEW HAMPSHIRE--0.5%
AAA 2,310 New Hampshire Higher Edl. & Hlth. Facs. Auth., Elliot Hosp. of
Manchester, 6.70%, 10/01/06, AMBAC ...................................... 07/03 @ 101 2,336,288
-----------
NEW JERSEY--3.7%
AAA 265 Elizabeth, GO, 6.60%, 8/01/06, MBIA ........................................ 07/03 @ 101 266,028
AAA 1,000 Monmouth Cnty. Impvt. Auth., Gov't. Loan, 2.34%, 12/01/06, FSA ............. No Opt. Call 1,021,450
AAA 8,565 New Jersey Hwy. Auth., Garden St. Pkwy., 5.00%, 1/01/07, FGIC .............. ETM 9,458,587
AAA 5,000 New Jersey Transp. Trust Fund Auth., Transp. Sys., Ser. A,
5.125%, 6/15/07, AMBAC .................................................. 06/05 @ 102 5,419,750
AAA 1,065 No. Jersey Dist. Wtr. Sply., Wanaque So. Proj., 6.50%, 7/01/06, MBIA ....... ETM 1,165,568
AAA 1,250 Warren Cnty. Fin. Auth., PCR, 6.55%, 12/01/06, MBIA ........................ 12/03 @ 101 1,289,025
-----------
18,620,408
-----------
NEW MEXICO--1.3%
AAA 3,535 Gallup, PCR, Plains Elec. Generation, 6.50%, 8/15/07, MBIA ................. 07/03 @ 102 3,589,121
AAA 2,635 New Mexico Fin. Auth., Pub. Proj., Ser. A, 3.50%, 6/01/07, MBIA ............ No Opt. Call 2,791,124
-----------
6,380,245
-----------
NEW YORK--10.6%
AAA 1,040 Malone Ctrl. Sch. Dist., GO, Ser. B, 2.875%, 1/15/07, FGIC ................. No Opt. Call 1,073,405
AAA 2,800 Nassau Cnty., GO, Ser. Y, 5.00%, 3/01/06, FGIC ............................. No Opt. Call 3,038,588
New York City, GO,
AAA 13,000 Ser. A, 7.00%, 8/01/07, FSA ............................................. 08/06 @ 101.5 15,016,430
AAA 10,000 Ser. E, 6.125%, 8/01/06, MBIA ........................................... No Opt. Call 11,253,900
AAA 2,000 New York City Hlth. & Hosp. Corp., Hlth. Sys. Svcs., Ser. A, 3.20%,
2/15/07, FSA ............................................................ No Opt. Call 2,079,760
AAA 2,460 New York Dorm. Auth., Hosp. Rev., 3.00%, 2/15/07, XLCA ..................... No Opt. Call 2,549,741
New York Env. Fac. Corp., PCR,
AAA 3,690(3) Ser. D, 6.40%, 11/15/04 ................................................. N/A 4,040,587
AAA 810 Ser. D, 6.40%, 5/15/06 .................................................. 11/04 @ 102 879,927
AAA 9,715 New York Hsg. Fin. Agcy., Hsg. Proj. Mtge., Ser. A, 5.50%,
11/01/06, FSA ........................................................... 05/06 @ 102 10,552,238
AAA 3,270 Rochester, GO, Ser. B, 4.00%, 2/15/07, MBIA ................................ No Opt. Call 3,502,955
-----------
53,987,531
-----------
NORTH CAROLINA--1.3%
AAA 6,000 No. Carolina Eastn. Mun. Pwr. Agcy., Sys. Rev., Ser. B, 6.00%,
1/01/06, CAPMAC ......................................................... No Opt. Call 6,667,980
-----------
NORTH DAKOTA--0.4%
AAA 2,035 Grand Forks Hlth. Care Fac., United Hosp. Oblig. Grp., 6.50%, 12/01/06,
MBIA .................................................................... 07/03 @ 101.5 2,051,138
-----------
OHIO--5.2%
AAA 1,000 Amer. Muni. Pwr. Inc., Omega JU2 Proj., 4.00%, 1/01/07, AMBAC .............. No Opt. Call 1,071,030
AAA 2,170 Cincinnati City Sch. Dist., GO, Sch. Imprvt., 4.00%, 12/01/06, MBIA ........ No Opt. Call 2,345,206
AAA 1,285 Milford Sch. Dist., GO, Sch. Imprvt., 3.25%, 12/01/06, FSA ................. No Opt. Call 1,356,857
Ohio Bldg. Auth., Ser. A, FSA,
AAA 4,585 Admin. Bldg. Fd., 5.00%, 10/01/06 ....................................... No Opt. Call 5,082,014
AAA 10,000 Correction Facs., 5.00%, 10/01/06 ....................................... No Opt. Call 11,084,000
AAA 5,400 Ohio Wtr. Dev. Auth., Pure Wtr., 3.00%, 6/01/07, AMBAC ..................... No Opt. Call 5,624,910
-----------
26,564,017
-----------
OKLAHOMA--1.4%
AAA 6,660 Oklahoma Trans. Auth., Tpke. Sys. Rev., Ser. B, 5.00%, 1/01/07, AMBAC ...... No Opt. Call 7,385,807
-----------
See Notes to Financial Statements.
28
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OREGON--1.3%
AAA $ 2,020 Oregon Dept. of Admin. Svcs., COP, Ser. A, 5.00%, 11/01/06, FSA ............ No Opt. Call $ 2,218,223
AAA 2,065 Portland Swr. Sys., Ser. A, 5.00%, 6/01/07, FSA ............................ No Opt. Call 2,310,962
AAA 2,000 Washington & Clackamas Cntys. Sch. Dist., GO, 3.125%, 6/15/07, MBIA ........ No Opt. Call 2,099,020
-----------
6,628,205
-----------
PENNSYLVANIA--5.3%
AAA 1,500 Delaware Cnty. Regl. Wtr. Qual. Ctrl. Auth., Swr. Rev., 4.00%,
5/01/07, FGIC ........................................................... No Opt. Call 1,616,310
AAA 1,345 Fleetwood Area Sch. Dist., GO, 4.00%, 4/01/07, FGIC ........................ No Opt. Call 1,447,099
AAA 1,615 Oxford Area Sch. Dist., GO, Ser. A, 4.00%, 2/15/07, FGIC ................... No Opt. Call 1,733,557
AAA 1,900 Pennsylvania Dept. of Gen. Svcs., COP, 4.25%, 5/01/06, FSA ................. No Opt. Call 2,041,911
AAA 2,375 Pennsylvania Tpke. Comm., Ser. A, 4.125%, 12/01/06, FGIC ................... No Opt. Call 2,574,096
Philadelphia, GO, FSA,
AAA 1,000 4.00%, 9/15/06 .......................................................... No Opt. Call 1,074,880
AAA 3,100 4.05%, 9/15/07 .......................................................... No Opt. Call 3,361,268
AAA 1,550 Philadelphia Mun. Auth., Justice Lease Rev., Ser. A, 7.00%, 11/15/04, MBIA . 07/03 @ 101 1,574,723
AAA 2,950 Philadelphia Wtr. & Wst., 5.50%, 6/15/06, MBIA ............................. No Opt. Call 3,285,621
AAA 3,620 Pittsburgh Pub. Parking Auth., Parking Rev., 2.75%, 12/01/06, AMBAC ........ No Opt. Call 3,758,863
Pocono Mtn. Sch. Dist., GO, FSA,
AAA 875 4.50%, 4/01/07 .......................................................... No Opt. Call 957,163
AAA 3,025 4.50%, 10/01/07 ......................................................... No Opt. Call 3,337,815
-----------
26,763,306
-----------
RHODE ISLAND--1.1%
AAA 1,865 Providence, GO, Ser. C, 3.75%, 1/15/07, FGIC ............................... No Opt. Call 1,984,341
AAA 3,400 Rhode Island & Providence Plantations, GO, Ser. A, 4.00%, 12/01/06, FSA .... No Opt. Call 3,676,862
-----------
5,661,203
-----------
SOUTH CAROLINA--0.8%
AAA 1,715 Lexington Cnty. Sch. Dist. No. 1, COP, 3.00%, 3/01/07, AMBAC ............... No Opt. Call 1,783,240
AAA 2,070 Pickens Cnty. Sch. Dist., GO, Ser. B, 2.25%, 3/01/07, FGIC ................. No Opt. Call 2,096,227
-----------
3,879,467
-----------
TEXAS--18.2%
AAA 6,575 Austin Wtr. & Wstwtr. Sys., Ser. C, 3.75%, 11/15/06, FSA ................... No Opt. Call 7,034,198
AAA 2,400 Corpus Christi, Gen. Impvt., GO, Ser. A, 5.00%, 3/01/07, FSA ............... No Opt. Call 2,651,112
AAA 1,095 Corpus Christi Bus. & Job Dev., Corp. Sales Tax Rev., 4.00%,
3/01/07, AMBAC ......................................................... No Opt. Call 1,174,322
AAA 8,500 Cypress-Fairbanks Indpt. Sch. Dist., GO, Zero Coupon, 8/01/06, AMBAC ....... No Opt. Call 7,963,395
AAA 6,355 Dallas Rapid Transit, 3.70%, 12/01/06, AMBAC ............................... No Opt. Call 6,794,067
AAA 1,305 Dallas Wtrwrks. & Swr. Sys., 3.00%, 4/01/07, FSA ........................... No Opt. Call 1,354,707
AAA 2,280 Denton Util. Sys., Mult. Util. Impvt., 4.25%, 12/01/06, AMBAC .............. No Opt. Call 2,478,976
AAA 3,445 El Paso Cnty., GO, 4.00%, 2/15/07, FSA ..................................... No Opt. Call 3,681,672
AAA 1,000 Houston Area Wtr. Corp., Northeast Wtr. Purification Proj.,
4.00%, 3/01/07, FGIC .................................................... No Opt. Call 1,072,440
AAA 13,225 Houston Wtr. & Swr. Sys., Ser. B, 6.75%, 12/01/08, FGIC .................... 07/03 @ 101 13,397,586
AAA 6,285(3) MuniMae Trust, Ser. 10, Cl. A, 4.40%, 12/17/06 ............................. N/A 6,517,294
AAA 2,915 Odessa Texas Wtr. & Swr., 4.25%, 4/01/07, FSA .............................. No Opt. Call 3,157,003
Round Rock Indpt. Sch. Dist., GO, Ser. A,
AAA 2,465 4.25%, 8/01/06 .......................................................... No Opt. Call 2,654,213
AAA 1,000 4.25%, 8/01/07 .......................................................... No Opt. Call 1,086,420
AAA 8,115 San Antonio Elec. & Gas, Ser. B, Zero Coupon, 2/01/08, FGIC ................ ETM 7,268,849
AAA 1,000 Sugar Land, GO, 2.50%, 2/15/07, FGIC ....................................... No Opt. Call 1,016,650
AAA 5,000 Tarrant Regl. Wtr. Dist., Impvt., 3.00%, 3/01/07, FSA ...................... No Opt. Call 5,186,350
AAA 15,000 Texas Mun. Pwr. Agcy., Zero Coupon, 9/01/06, AMBAC ......................... No Opt. Call 14,050,200
AAA 1,000 Texas Pub. Fin. Auth., 3.00%, 2/01/07, FGIC ................................ No Opt. Call 1,034,700
AAA 3,000 Texas Tech. Univ., Ser. 6, 4.25%, 2/15/07, AMBAC ........................... No Opt. Call 3,240,870
-----------
92,815,024
-----------
UTAH--5.6%
Utah, GO, Ser. B,
AAA 5,950 4.50%, 7/01/06 .......................................................... No Opt. Call 6,467,114
AAA 20,000 4.50%, 7/01/07 .......................................................... No Opt. Call 22,015,400
-----------
28,482,514
-----------
WASHINGTON--9.4%
AAA 1,325 Benton Cnty. Pub. Util. Dist., Elec. Rev., 3.75%, 11/01/06, FSA ............ No Opt. Call 1,416,491
AAA 3,000 Clark Cnty. Pub. Util., Dist. No. 1, Elec. Rev., 4.00%, 1/01/07, AMBAC ..... No Opt. Call 3,207,810
King Cnty.,
AAA 2,090 GO, 3.50%, 12/01/06, MBIA ............................................... No Opt. Call 2,220,584
AAA 3,085 Swr. Rev., 3.50%, 1/01/07, FGIC ......................................... No Opt. Call 3,246,839
AAA 2,100 Kitsap Cnty., GO, Ser. B, 4.00%, 12/01/06, AMBAC ........................... No Opt. Call 2,265,921
29
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (CONTINUED)
Seattle, GO, Ser. E, MBIA,
AAA $ 1,700 Zero Coupon, 12/15/07 .................................................... No Opt. Call $ 1,516,604
AAA 1,345 Zero Coupon, 12/15/08 .................................................... No Opt. Call 1,147,379
Snohomish Cnty. Pub. Util. Dist., Elec. Rev.,
AAA 5,620 4.125%, 12/01/06, FSA .................................................... No Opt. Call 6,087,247
AAA 1,250 6.55%, 1/01/07, FGIC ..................................................... ETM 1,281,800
AAA 3,890 Tacoma Elec. Sys., Ser. A, 4.00%, 1/01/07, FSA ............................. No Opt. Call 4,152,692
AAA 3,360 Thurston Cnty. Sch. Dist. No. 3, GO, 4.25%, 12/01/06, FSA .................. No Opt. Call 3,653,227
AAA 5,000 Washington, GO, Ser. B, 5.00%, 1/01/08, MBIA ............................... No Opt. Call 5,585,200
AAA 12,875 Washington Pub. Pwr. Sply., Nuclear Proj. No. 2, Ser. A, Zero Coupon,
7/01/06, MBIA ........................................................... No Opt. Call 12,137,391
------------
47,919,185
------------
WEST VIRGINIA--1.6%
AAA 5,300 West Virginia, GO, 4.00%, 6/01/06, FSA ..................................... No Opt. Call 5,657,220
West Virginia Econ. Dev. Auth., Correctional Juvenile & Pub., MBIA,
AAA 1,000 Ser. B, 4.00%, 6/01/06 ................................................... No Opt. Call 1,069,170
AAA 1,500 Ser. A, 4.00%, 6/01/07 ................................................... No Opt. Call 1,615,815
------------
8,342,205
------------
WISCONSIN--5.6%
AAA 1,380 Appleton Wtrwks., Ser. B, 4.00%, 1/01/07, FGIC ............................. No Opt. Call 1,475,593
AAA 5,000 Kenosha, GO, Ser. B, Zero Coupon, 10/15/08, FSA ............................ No Opt. Call 4,346,750
AAA 1,275 Milwaukee, GO, Ser. W, 4.00%, 3/15/07, FSA ................................. No Opt. Call 1,368,304
Wisconsin,
AAA 880 COP, Ser. A, 3.75%, 3/01/07, FSA ......................................... No Opt. Call 936,012
AAA 12,780 COP, Ser. A, 3.75%, 9/01/07, FSA ......................................... No Opt. Call 13,668,338
AAA 6,085 GO, Ser. G, 4.00%, 5/01/07, MBIA ......................................... No Opt. Call 6,540,462
------------
28,335,459
------------
TOTAL LONG-TERM INVESTMENTS (COST $730,896,825) ............................ 784,793,991
------------
SHORT-TERM INVESTMENTS(4)--3.5%
GEORGIA--0.1%
A-1+ 600 Mun. Elec. Auth., Proj. One, Ser. C, Zero Coupon, 7/02/03, MBIA, FRWD ...... N/A 600,000
------------
TEXAS--2.9%
Brownsville Util. Sys., Ser. A, MBIA, FRWD,
A-1+ 7,585 0.75%, 7/02/03 ........................................................... N/A 7,585,000
A-1 7,000 0.75%, 7/02/03 ........................................................... N/A 7,000,000
------------
14,585,000
------------
PUERTO RICO--0.5%
A-1 2,500 Puerto Rico Comnwlth. Hwy. & Transp. Auth., Transp. Rev.,
Ser. A, Zero Coupon, 7/02/03, AMBAC ..................................... N/A 2,500,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $17,685,000) ............................ 17,685,000
------------
TOTAL INVESTMENTS--157.5% (COST $748,581,825) .............................. 802,478,991
Other assets in excess of liabilities--1.2% ................................ 6,347,037
Preferred shares at redemption value, including dividends payable--(58.7)% . (299,180,148)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ......................... $509,645,880
============
--------------------------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) This bond is prerefunded. U.S. government securities, held in escrow, are
used to pay interest on this security, as well as retire the bond in full
at the date indicated, typically at a premium to par.
(4) For purposes of amortized cost valuation, the maturity dates of these
instruments are considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
================================================================================
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
CAPMAC -- Capital Markets Assurance Company
CONNIE LEE -- College Construction Loan Insurance Association
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
FRWD -- Floating Rate Weekly Demand
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
XLCA -- XL Capital Assurance
See Notes to Financial Statements.
30
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2003
BLACKROCK STRATEGIC MUNICIPAL TRUST
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--147.2%
ALABAMA--14.5%
AAA $ 7,000 Alabama Pub. Sch. & Coll. Auth., Cap. Impvt., Ser. C, 5.75%, 7/01/18 ....... 07/09 @ 101.5 $8,061,270
Baa2 3,000 Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., Ser. A,
6.70%, 11/01/29 .......................................................... 11/09 @ 101 3,238,740
AAA 4,635(3) Jefferson Cnty. Swr., Ser. D, 5.75%, 2/01/07, FGIC ......................... N/A 5,303,089
-----------
16,603,099
-----------
ALASKA--1.0%
AAA 1,130 Alaska Hsg. Fin. Corp., Ser. A, 5.875%, 12/01/24, MBIA ..................... 12/05 @ 102 1,170,906
-----------
COLORADO--1.8%
AAA 10,000 Northwest Pkwy. Pub. Hwy. Auth., Ser B, Zero Coupon, 6/15/30, FSA .......... 06/11 @ 31.387 2,065,700
-----------
CONNECTICUT--8.5%
Mashantucket Western Pequot Tribe, Spec. Rev.,
Baa3 1,500 Ser. A, 5.50%, 9/01/28 ................................................... 09/09 @ 101 1,529,625
Baa3 8,000(4) Ser. B, 5.75%, 9/01/27 ................................................... 09/07 @ 102 8,244,800
-----------
9,774,425
-----------
DELAWARE--2.0%
NR 2,000(4) Charter Mac Equity Issuer Trust, Ser. B, Zero Coupon, 11/30/50 ............. 11/10 @ 100 2,253,900
-----------
FLORIDA--7.0%
Florida Hsg. Fin. Corp., Sunset Place, Ser. K-1,
A 2,400 6.00%, 10/01/19 .......................................................... 10/09 @ 102 2,520,624
A 2,000 6.10%, 10/01/29 .......................................................... 10/09 @ 102 2,088,720
NR 3,300 Hillsborough Cnty. Ind. Dev. Auth., National Gypsum, Ser. A,
7.125%, 4/01/30 .......................................................... 04/10 @ 101 3,387,351
-----------
7,996,695
-----------
ILLINOIS--9.5%
AAA 5,000 Chicago Brd. of Ed., Sch. Reform, 5.75%, 12/01/27, AMBAC ................... 12/07 @ 102 5,641,000
B 7,560 Chicago O'Hare Intl. Arpt., Delta Air Lines Inc. Term.
Proj., 6.45%, 5/01/18 .................................................... 08/03 @ 101 5,185,102
-----------
10,826,102
-----------
KENTUCKY--9.6%
AAA 32,345 Kentucky Econ. Dev. Fin. Sys., Norton Hlth. Care Inc., Ser. B, Zero
Coupon, 10/01/24, MBIA ................................................... No Opt. Call 11,032,556
-----------
MARYLAND--3.9%
NR 4,000(4) MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 6/30/49 ................... 06/09 @ 100 4,419,000
-----------
MICHIGAN--9.1%
AAA 2,000 Michigan Hosp. Fin. Auth., Mercy Hlth. Svcs., 5.75%, 8/15/19, MBIA ......... 08/09 @ 101 2,258,260
BB 8,000 Midland Cnty. Econ. Dev., Ser. A, 6.875%, 7/23/09 .......................... 07/07 @ 101 8,175,920
-----------
10,434,180
-----------
MISSOURI--1.9%
A 2,000 Missouri Hlth. & Edl. Facs. Auth., Hlth. Facs. Rev., St. Anthony's
Med. Ctr., 6.125%, 12/01/19 .............................................. 12/10 @ 101 2,146,680
-----------
NEW JERSEY--10.5%
B 6,000 New Jersey Econ. Dev. Auth., Continental Airlines Inc. Proj.,
6.25%, 9/15/19 ........................................................... 09/09 @ 101 4,784,940
AA 6,000(3) New Jersey Transp. Trust Fund Auth., Transp. Sys., Ser. A, 6.00%, 6/15/19 .. N/A 7,230,060
-----------
12,015,000
-----------
NEW YORK--10.4%
New York City Transl. Fin. Auth.,
AA+ 1,800 Ser. A, 5.25%, 11/01/11 .................................................. No Opt. Call 2,069,820
AA+ 4,885(3) Ser. B, 6.00%, 11/15/21 .................................................. N/A 5,933,077
AA+ 1,115 Ser. B, 6.00%, 11/15/21 .................................................. 05/10 @ 101 1,275,013
Aa1 2,500 New York Mtge. Agcy., Homeowner Mtge., Ser. 85, 5.70%, 10/01/17 ............ 09/09 @ 100 2,639,050
-----------
11,916,960
-----------
PENNSYLVANIA--17.5%
Lehigh Cnty. Gen. Purp. Auth., Kidspeace Oblig. Grp.,
Ba2 2,250 6.00%, 11/01/23 .......................................................... 11/08 @ 102 2,177,393
Ba2 2,335 6.20%, 11/01/14 .......................................................... 11/09 @ 102 2,323,278
BBB+ 1,500 Montgomery Cnty. Ind. Dev. Auth., Retirement Cmnty. Rev., 5.25%, 11/15/28 .. 11/08 @ 101 1,465,260
See Notes to Financial Statements.
31
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Ser. A,
A3 $ 700 6.125%, 11/01/21 ......................................................... 05/11 @ 101 $ 674,653
A3 1,000 6.25%, 11/01/31 .......................................................... 05/11 @ 101 939,400
A3 1,000 6.50%, 11/01/16 .......................................................... 05/11 @ 101 1,028,510
AAA 8,500 Philadelphia Sch. Dist., GO, Ser. C, 5.75%, 3/01/29, MBIA .................. 03/10 @ 100 9,605,765
AAA 1,500 Washington Cnty. Auth., Cap. Fdg. & Equip. Proj., 6.15%,
12/01/29, AMBAC .......................................................... No Opt. Call 1,856,745
-----------
20,071,004
-----------
TENNESSEE--5.4%
Baa1 3,750 Maury Cnty. Ind. Dev. Brd., PCR, Saturn Corp. Proj., 6.50%, 9/01/24 ........ 09/04 @ 102 3,903,113
AAA 2,000 Memphis Shelby Cnty. Arpt. Auth., Ser. D, 6.00%, 3/01/24, AMBAC ............ 03/10 @ 101 2,238,380
-----------
6,141,493
-----------
TEXAS--18.5%
CCC 6,330 Dallas Ft. Worth Intl. Arpt. Fac. Impvt., Amer. Airlines Inc.,
6.375%, 5/01/35 .......................................................... 11/09 @ 101 3,489,412
AAA 4,750 Harris Cnty. Houston Sports Auth., Ser. A, Zero Coupon, 11/15/38, MBIA ..... 11/30 @ 61.166 759,145
AAA 1,500 Lower Colorado River Auth., Ser. A, 5.50%, 5/15/21, AMBAC .................. 05/09 @ 101 1,628,205
BBB 3,000 Port Corpus Christi Auth., Celanese Proj., Ser. B, 6.70%, 11/01/30 ......... 05/12 @ 101 3,199,080
AAA 15,000 Texas Tpke. Auth., Central Sys. Rev., Zero Coupon, 8/15/31, AMBAC .......... 08/12 @ 32.807 2,987,850
AA+ 500 Texas Wtr. Fin. Asst., GO, 5.75%, 8/01/22 .................................. 08/10 @ 100 570,360
AAA 7,030(3) Travis Cnty. Hlth. Facs. Dev. Corp., Ascension Hlth., Ser. A,
5.875%, 11/15/09, AMBAC .................................................. N/A 8,501,379
-----------
21,135,431
-----------
UTAH--4.0%
AAA 4,000 Intermountain Pwr. Agcy., Sply., Ser. B, 5.75%, 7/01/19, MBIA .............. 07/07 @ 102 4,544,000
-----------
VIRGINIA--1.7%
AAA 1,750 Virginia Res. Auth., Clean Wtr. Rev., 5.625%, 10/01/22 ..................... 10/10 @ 100 1,956,535
-----------
WASHINGTON--6.5%
Washington, GO,
AA+ 4,750 Ser. A, 5.625%, 7/01/24 .................................................. 07/09 @ 100 5,204,860
AA+ 2,000 Ser. B, 6.00%, 1/01/25 ................................................... 01/10 @ 100 2,284,460
-----------
7,489,320
-----------
WISCONSIN--3.9%
A- 5,000 Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32 ........................... 06/12 @ 100 4,401,600
-----------
TOTAL LONG-TERM INVESTMENTS (COST $157,432,078) 168,394,586
-----------
SHORT-TERM INVESTMENTS5--4.9%
NEW YORK--4.1%
A-1+ 4,700 New York City, GO, Ser. E, 0.85%, 7/01/03, FRDD ............................ N/A 4,700,000
-----------
OHIO--0.8%
A-1+ 900 Columbus Ohio, Ser. 1, 0.90%, 7/03/03, FRWD ................................ N/A 900,000
-----------
TOTAL SHORT-TERM INVESTMENTS (COST $5,600,000) ............................. 5,600,000
TOTAL INVESTMENTS--152.1% (COST $163,032,078) .............................. 173,994,586
Other assets in excess of liabilities--2.1% ................................ 2,410,135
Preferred shares at redemption value, including dividends payable--(54.2)% . (62,008,484)
-----------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ......................... $114,396,237
------------
---------------------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) This bond is prerefunded. U.S. government securities, held in escrow, are
used to pay interest on this security, as well as retire the bond in full
at the date indicated, typically at a premium to par.
(4) Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A under
that Act, to qualified institutional buyers. As of June 30, 2003, the Trust
held 13.0% of its net assets, with a current market value of $14,917,700,
in securities restricted as to resale.
(5) For purposes of amortized cost valuation, the maturity dates of these
instruments are considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
FRDD -- Floating Rate Daily Demand
FRWD -- Floating Rate Weekly Demand
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
See Notes to Financial Statements.
32
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2003
BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--153.9%
CALIFORNIA--142.0%
AAA $ 2,635 Alameda Cnty., COP, Ser. A, 3.80%, 12/01/08, MBIA .......................... No Opt. Call $ 2,838,659
Anaheim Union High Sch. Dist., GO, Ser. A, FSA,
AAA 1,060 3.50%, 8/01/08 ........................................................... No Opt. Call 1,121,904
AAA 1,250 4.00%, 8/01/09 ........................................................... No Opt. Call 1,348,400
AAA 1,000 Burbank, Elec. Rev., 3.50%, 6/01/09, MBIA .................................. No Opt. Call 1,049,430
California, GO,
AAA 2,000 5.00%, 6/01/09, MBIA ..................................................... No Opt. Call 2,250,720
AAA 3,000 5.50%, 4/01/09, MBIA ..................................................... No Opt. Call 3,445,500
AAA 3,000 5.50%, 2/01/10, MBIA ..................................................... No Opt. Call 3,431,250
AAA 2,000 6.25%, 9/01/08, FGIC ..................................................... No Opt. Call 2,369,100
AAA 15,000 6.30%, 9/01/08, MBIA ..................................................... No Opt. Call 17,804,550
California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A,
AAA 10,000 3.125%, 5/01/08, FSA ..................................................... No Opt. Call 10,339,100
AAA 10,000 3.375%, 5/01/09, MBIA .................................................... No Opt. Call 10,365,400
AAA 10,535 California Dept. of Wtr. Res., Wtr. Rev., Central Valley
Proj. Ser. Z, 4.00%, 12/01/09, FGIC ...................................... No Opt. Call 11,406,877
California Hlth. Facs. Fin. Auth.,
AAA 6,850 Marin Gen. Hosp., Ser. A, 5.75%, 8/01/09, FSA ............................ 08/03 @ 102 7,009,879
AAA 2,000 Sutter Hlth. Care Sys., 5.70%, 8/15/09, MBIA ............................. 08/06 @ 102 2,267,260
AAA 2,100 California Pub. Wks. Brd., Energy Efficiency, Ser. A,
5.625%, 10/01/08, AMBAC .................................................. 10/05 @ 102 2,312,751
AAA 2,600 Castaic Lake Wtr. Agcy., COP., Wtr. Sys. Impvt. Proj.,
Ser. A, 7.25%, 8/01/10, MBIA ............................................. No Opt. Call 3,287,102
AAA 1,135 Chaffey Cmnty. College Dist., GO, Ser. A, 3.75%, 7/01/09, FSA .............. No Opt. Call 1,207,549
Chula Vista, COP, Police Fac. Proj., MBIA,
AAA 1,000 4.00%, 8/01/08 ........................................................... No Opt. Call 1,082,270
AAA 1,000 4.00%, 8/01/09 ........................................................... No Opt. Call 1,078,720
AAA 5,500 Clovis Unified Sch. Dist., Ser. B, Zero Coupon, 8/01/08, FGIC .............. ETM 4,879,820
AAA 1,855 El Paso De Robles, GO, Ser. A, Zero Coupon, 8/01/09, FGIC .................. No Opt. Call 1,548,832
AAA 4,025 Elsinore Valley Mun. Wtr. Dist., COP, Ser. A, 6.00%, 7/01/09, FGIC ......... No Opt. Call 4,757,872
AAA 1,055 Glendale Unified Sch. Dist., Ser. D, 3.50%, 9/01/09, MBIA .................. No Opt. Call 1,109,238
Long Beach Bd. of Fin. Auth., Tax Allocation Rev.,
Redev. Projs., AMBAC,
AAA 1,245 3.50%, 8/01/08 ........................................................... No Opt. Call 1,317,708
AAA 1,120 3.75%, 8/01/09 ........................................................... No Opt. Call 1,192,509
AAA 13,110 Los Angeles, GO, Ser. A, 3.50%, 9/01/09, MBIA .............................. No Opt. Call 13,783,985
Los Angeles Cnty., Asset Leasing Corp. Rev., AMBAC,
AAA 2,910 5.95%, 12/01/07 .......................................................... No Opt. Call 3,400,044
AAA 8,090 6.00%, 12/01/08 .......................................................... No Opt. Call 9,571,845
AAA 8,600 6.05%, 12/01/09 .......................................................... No Opt. Call 10,291,448
AAA 4,405 Los Angeles Cnty., Met. Trans. Auth. Rev., Spl. Benefit Assmt. Dist. A1,
3.75%, 9/01/08, AMBAC .................................................... No Opt. Call 4,719,649
AAA 6,000 Los Angeles Dept. of Arpts., Arpt. Rev., LA Intl. Arpt., Ser. B,
5.00%, 5/15/09, MBIA ..................................................... No Opt. Call 6,746,820
Los Angeles Dept. of Wtr. & Pwr., Elec. Plant Rev., FGIC,
AAA 803 5.75%, 9/01/03 ........................................................... N/A 82,226
AAA 80 5.75%, 9/01/12 ........................................................... ETM 82,116
AAA 840 5.75%, 9/01/12 ........................................................... 09/03 @ 102 862,638
AAA 3,860 Los Angeles Sanitation Equip., Charge Rev., Ser. A, 3.625%, 2/01/09, FSA ... No Opt. Call 4,065,468
Los Angeles Unified Sch. Dist., FSA,
AAA 2,660 Ser. B, 3.00%, 10/01/08 .................................................. No Opt. Call 2,754,802
AAA 7,500 Ser. F, 3.00%, 7/01/09 ................................................... No Opt. Call 7,668,750
AAA 1,000 Mount Diablo Unified Sch. Dist., GO, 3.50%, 8/01/08, FSA ................... No Opt. Call 1,058,400
AAA 1,000 Orange Cnty. Local Trans. Auth., Sales Tax Rev., 6.00%, 2/15/09, MBIA ...... No Opt. Call 1,174,190
AAA 2,495 Pasadena Unified Sch. Dist., Ser. C, 3.50%, 11/01/08, FSA .................. No Opt. Call 2,647,594
AAA 3,345 Sacramento City Fin. Auth., City Hall & Redev. Projs., Ser. A, 3.50%,
12/01/08, FSA ............................................................ No Opt. Call 3,552,658
AAA 1,000 Sacramento City Unified Sch. Dist., 3.50%, 7/01/09, FGIC ................... No Opt. Call 1,050,110
Sacramento Mun. Util. Dist., Elec. Rev., Ser. C,
AAA 825 5.75%, 11/15/07, MBIA .................................................... ETM 846,359
AAA 3,750 5.75%, 11/15/08, FGIC .................................................... ETM 3,845,963
AAA 3,950 5.75%, 11/15/09, MBIA .................................................... ETM 4,050,330
See Notes to Financial Statements.
33
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
AAA $ 5,000 San Bernardino Cnty., Trans. Auth., Sales Tax Rev., 6.00%, 3/01/10, FGIC ... ETM $ 5,564,200
San Diego Cnty., COP, AMBAC,
AAA 2,360 5.00%, 2/01/09 ........................................................... No Opt. Call 2,653,230
AAA 11,000 5.625%, 9/01/12 .......................................................... No Opt. Call 12,990,450
San Diego Cnty., Regl. Trans. Cmnty., Sales Tax Rev., Ser. A,
AAA 2,500 6.00%, 4/01/08, FGIC ..................................................... ETM 2,528,375
AAA 7,830 6.00%, 4/01/08, MBIA ..................................................... ETM 7,918,870
AAA 12,725 San Diego Pub. Facs. Fin. Auth., Wtr. Rev., 3.00%, 8/01/09, MBIA ........... No Opt. Call 13,015,003
AAA 1,750 San Francisco City & Cnty., GO, 4.00%, 6/15/09, FSA ........................ No Opt. Call 1,885,048
AAA 1,000 San Jose Redev. Agcy. Tax Allocation, Merged Area Redev. Proj.,
4.00%, 8/01/09, MBIA ..................................................... No Opt. Call 1,078,720
AAA 1,000 San Mateo Cnty. Cmnty. College Dist., GO, Ser. A, 3.30%, 9/01/08, FGIC ..... No Opt. Call 1,049,620
Santa Ana Unified Sch. Dist., GO, Ser. B, FGIC,
AAA 1,000 Zero Coupon, 8/01/08 ..................................................... No Opt. Call 876,190
AAA 2,000 Zero Coupon, 8/01/09 ..................................................... No Opt. Call 1,669,900
AAA 2,470 Santa Clara, COP, Ser. B, 3.50%, 2/01/09, AMBAC ............................ No Opt. Call 2,585,547
AAA 2,865(3) Santa Clara Cnty. Fin. Auth., Lease Rev., Fac. Replacement Proj. A,
6.50%, 11/15/04, AMBAC ................................................... N/A 3,141,071
AAA 4,620 Santa Clara Valley Wtr. Dist., COP, 4.00%, 2/01/09, FGIC ................... No Opt. Call 4,955,412
AAA 5,000 So. California Rapid Trans. Dist., COP, Workers' Comp. Fund, 6.00%,
7/01/10, MBIA ............................................................ 07/03 @ 101.5 5,087,800
AAA 4,665 So. Coast Air Quality Mgmt. Dist. Bldg., Corp. Rev., 4.00%,
8/01/09, AMBAC ........................................................... No Opt. Call 5,032,229
AAA 2,000 Univ. of California, Multi-Purpose Projs., Ser. F, 5.00%, 9/01/11, FGIC .... 09/06 @ 101 2,189,360
AAA 2,160 West Sacramento Fin. Auth., Wtr. Sys. Impvt., 5.25%, 8/01/08, FGIC ......... 02/04 @ 101 2,187,216
------------
259,486,036
------------
PUERTO RICO--11.9%
Puerto Rico Elec. Pwr. Auth.,
AAA 5,280 Ser. DD, 5.00%, 7/01/09, FSA ............................................. 07/08 @ 101.5 5,980,867
AAA 7,000 Ser. DD, 5.00%, 7/01/10, FSA ............................................. 07/08 @ 101.5 7,855,120
AAA 3,000 Ser. KK, 4.50%, 7/01/09, XLCA ............................................ No Opt. Call 3,333,630
AAA 4,000 Puerto Rico Mun. Fin. Agcy., Ser. A, 5.625%, 8/01/10, FSA .................. 08/09 @ 101 4,661,080
------------
21,830,697
------------
TOTAL LONG-TERM INVESTMENTS (COST $260,353,712) ............................ 281,316,733
------------
-----------
SHARES
(000)
-----------
MONEY MARKET FUND--1.7%
NR 3,000 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $3,000,000) ....... N/A 3,000,000
------------
TOTAL INVESTMENTS--155.6% (COST $263,353,712) .............................. 284,316,733
Other assets in excess of liabilities--1.6% ................................ 3,012,277
Preferred shares at redemption value, including dividends payable--(57.2)% . (104,562,894)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ......................... $182,766,116
============
----------------------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) This bond is prerefunded. U.S. government securities, held in escrow, are
used to pay interest on this security, as well as retire the bond in full
at the date indicated, typically at a premium to par.
Securities that are covered by insurance, which ensures the timely payment of
principal and interest, represent approximately 98.9% of the Trust's total
investments.
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
XLCA -- XL Capital Assurance
See Notes to Financial Statements.
34
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2003
BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--157.0%
CALIFORNIA--140.5%
California, GO,
A $12,500 5.00%, 11/01/20 .......................................................... 11/11 @ 100 $ 12,756,875
AAA 6,500 Ser. BZ, 5.35%, 12/01/21, MBIA ........................................... 06/07 @ 101 6,679,920
California Cnty. Tobacco Sec. Agcy.,
BBB 5,000 Ser. A, 5.50%, 6/01/33 ................................................... 06/12 @ 100 4,028,850
A- 5,000 Fresno Cnty. Fdg. Corp., 5.875%, 6/01/27 ................................. 06/12 @ 100 4,468,500
A- 6,500 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.125%, 5/01/19 .... 05/12 @ 101 6,717,230
California Hlth. Fac. Fin. Auth., Adventist Hlth. Sys., Ser. A,
A 1,075 5.00%, 3/01/18 ........................................................... 03/13 @ 100 1,118,269
A 1,000 5.00%, 3/01/19 ........................................................... 03/13 @ 100 1,032,300
A 2,060 5.00%, 3/01/20 ........................................................... 03/13 @ 100 2,110,326
A 1,355 5.00%, 3/01/24 ........................................................... 03/13 @ 100 1,357,710
AAA 20,000 California Hsg. Fin. Agcy., Home Mtge. Rev., Ser. T,
Zero Coupon, 8/01/21, MBIA ............................................... 08/11 @ 57.562 7,616,600
California Infrastructure & Econ. Dev.,
A 1,985 J. David Gladstone Inst. Proj., 5.50%, 10/01/20 .......................... 10/11 @ 101 2,129,587
A 6,500 Kaiser Hosp. Asst. LLC, Ser. A, 5.55%, 8/01/31 ........................... 08/11 @ 102 6,779,500
A 3,100 California Poll. Ctrl. Fin. Auth., PCR, San Diego Gas & Elec.,
Ser. A, 5.90%, 6/01/14 .................................................. No Opt. Call 3,409,597
California Pub. Wks. Brd., Ser. A,
A- 2,020 California Cmnty. College, 5.00%, 12/01/17 ............................... 12/08 @ 101 2,102,052
A2 2,415 Trustees California St. Univ., 5.00%, 10/01/17 ........................... 10/08 @ 101 2,522,492
NR 4,0003 Charter Mac Equity Issuer Trust, Ser. A, 6.625%, 6/30/49 ................... 06/09 @ 100 4,389,280
A- 2,500 Daly City Hsg. Dev. Fin. Agcy., Sr. Franciscan Acquisition Proj.,
Ser. A, 5.80%, 12/15/25 .................................................. 12/13 @ 102 2,601,225
AAA 3,395 Fontana Pub. Fin. Auth., Tax Allocation Rev., Fontana Redev. Proj.,
Ser. A, 5.25%, 9/01/18, FSA .............................................. 09/11 @ 101 3,763,256
BBB 20,000 Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev.,
Zero Coupon, 1/15/21 ..................................................... 01/10 @ 53.346 7,493,600
Lathrop Fin. Auth., Wtr. Sply. Proj.,
NR 995 5.80%, 6/01/21 ........................................................... 12/13 @ 100 991,647
NR 1,040 5.85%, 6/01/22 ........................................................... 12/13 @ 100 1,036,402
NR 1,000 5.90%, 6/01/23 ........................................................... 12/13 @ 100 996,460
AAA 5,000 Long Beach Harbor, Ser. A, 5.25%, 5/15/18, FGIC ............................ 05/10 @ 101 5,441,350
AA 5,000 Los Angeles Cnty., Pub. Wks. Fin. Auth., Regl. Pk. & Open Space,
Ser. A, 5.00%, 10/01/19 .................................................. 10/07 @ 101 5,263,200
AAA 10,025 Los Angeles Habor Dept., Ser. B, 5.50%, 8/01/21, AMBAC ..................... 08/11 @ 100 10,968,954
NR 5,0003 MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 6/30/49 ................... 06/09 @ 100 5,523,750
AAA 5,000 Riverside Unified Sch. Dist., Ser. A, 5.25%, 2/01/23, FGIC ................. 02/12 @ 101 5,395,900
San Bernardino Cnty., Spl. Tax, Cmnty. Facs.,
NR 105 5.35%, 9/01/17 ........................................................... 09/12 @ 102 101,850
NR 245 5.50%, 9/01/18 ........................................................... 09/12 @ 102 238,113
NR 500 5.60%, 9/01/19 ........................................................... 09/12 @ 102 485,480
NR 355 5.70%, 9/01/20 ........................................................... 09/12 @ 102 344,762
AAA 2,980 San Diego Cnty., COP, 5.25%, 11/01/19, AMBAC ............................... 11/11 @ 100 3,264,262
AAA 2,135 Santa Clara Valley Transp. Auth., Sales Tax Rev., Ser. A,
5.00%, 6/01/18, MBIA ..................................................... 06/11 @ 100 2,286,307
AAA 4,590 Stockton East Wtr. Dist., COP, Ser. B, Zero Coupon, 4/01/19, FGIC .......... 04/12 @ 66.427 1,984,808
A- 1,000 Tobacco Sec. Auth. No. California, Tobacco Settlement Rev.,
Ser. A, 5.375%, 6/01/41 .................................................. 06/11 @ 100 737,550
A- 6,000 Tobacco Sec. Auth. So. California, Tobacco Settlement Rev.,
Ser. A, 5.50%, 6/01/36 ................................................... 06/12 @ 100 4,682,760
------------
132,820,724
------------
U. S. VIRGIN ISLANDS--2.6%
Tobacco Settlement Fin. Corp. Virgin Islands, Tobacco Settlement Rev.,
Baa2 1,860 5.00%, 5/15/21 ........................................................... 05/11 @ 100 1,652,945
Baa2 1,000 5.00%, 5/15/31 ........................................................... 05/11 @ 100 817,510
------------
2,470,455
------------
PUERTO RICO--13.9%
A- 4,410 Puerto Rico Pub. Bldgs. Auth., Gov't. Facs., Ser. C, 5.75%, 7/01/19 ........ No Opt. Call 5,050,067
BBB+ 7,500 Puerto Rico Pub. Fin. Corp., Ser. E, 5.70%, 8/01/25 ........................ 02/10 @ 100 8,037,525
------------
13,087,592
------------
TOTAL LONG-TERM INVESTMENTS (COST $145,703,878) ............................ $148,378,771
------------
See Notes to Financial Statements.
35
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT--4.7%
GEORGIA
A-1+ $ 4,500 Mun. Elec. Auth., Proj. One, Ser. C, 0.85%, 7/02/03, MBIA, FRWD
(cost $4,500,000)4 ........................................................... N/A $ 4,500,000
-----------
TOTAL INVESTMENTS--161.7% (COST $150,203,878) .................................. 152,878,771
Liabilities in excess of other assets--(3.0)% .................................. (2,815,926)
Preferred shares at redemption value, including dividends payable--(58.7)% ..... (55,533,259)
-----------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ............................. $94,529,586
===========
------------------------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A under
that Act, to qualified institutional buyers. As of June 30, 2003, the Trust
held 10.5% of its net assets, with a current market value of $9,913,030, in
securities restricted as to resale.
(4) For purposes of amortized cost valuation, the maturity date of this
instrument is considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FRWD -- Floating Rate Weekly Demand
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
See Notes to Financial Statements.
36
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2003
BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--155.1%
FLORIDA--137.9%
AAA $ 1,500 Alachua Cnty. Sch. Dist., GO, 4.25%, 1/01/09, FSA .......................... No Opt. Call $ 1,631,295
AAA 1,765 Collier Cnty. Sch. Brd., COP, Ser. A, 3.50%, 2/15/09, FSA .................. No Opt. Call 1,853,762
AAA 1,000 Dade Cnty., Aviation Rev., 6.00%, 10/01/08, AMBAC .......................... 10/05 @ 102 1,108,800
Dade Cnty., GO,
AAA 5,000 Ser. A, Zero Coupon, 2/01/08, MBIA ....................................... 02/06 @ 92.852 4,328,100
AAA 905 Ser. B, Zero Coupon, 10/01/08, AMBAC ..................................... ETM 795,676
AAA 1,095 Ser. B, Zero Coupon, 10/01/08, AMBAC ..................................... No Opt. Call 956,877
AAA 5,465(3) Dade Cnty. Sch. Brd., COP, Ser. A, 5.75%, 5/01/04, MBIA .................... N/A 5,739,616
AAA 1,515 Delray Beach, Decade of Excellence Prog., GO, 3.50%, 2/01/09, FSA .......... No Opt. Call 1,590,705
Escambia Cnty. Util. Sys., Ser. B, FGIC,
AAA 1,595 6.125%, 1/01/09 .......................................................... No Opt. Call 1,887,220
AAA 5,235 6.25%, 1/01/12 ........................................................... No Opt. Call 6,420,937
AAA 5,060 6.25%, 1/01/13 ........................................................... No Opt. Call 6,266,557
Florida Brd. of Ed.,
AAA 8,720 GO, 3.50%, 1/01/09, FSA .................................................. No Opt. Call 9,149,547
AAA 4,190 Lottery, Ser. A, 5.00%, 7/01/08, FGIC .................................... No Opt. Call 4,732,563
Florida Dept. of Env. Protection Presvtn., Ser. B, FGIC,
AAA 5,905 4.00%, 7/01/08 ........................................................... No Opt. Call 6,391,926
AAA 6,140 4.00%, 7/01/09 ........................................................... No Opt. Call 6,638,507
Florida Div. of Bond Fin. Dept., Gen. Svc. Rev.,
AAA 8,000 Dept. of Env. Presvtn., Ser. B, 5.25%, 7/01/10, FSA ...................... 07/08 @ 101 9,055,280
AAA 2,000 Nat. Res. & Presvtn., Ser. A, 5.00%, 7/01/11, AMBAC ...................... 07/07 @ 101 2,190,240
AAA 1,090 Florida Mun. Loan Council, Ser. C, 3.50%, 11/01/08, MBIA ................... No Opt. Call 1,155,531
AAA 6,000 Greater Orlando Aviation Auth., Orlando Arpt. Facs. Rev., Ser. C,
3.50%, 10/01/08, MBIA .................................................... No Opt. Call 6,312,720
Hillsborough Cnty. Cap Impvt., FGIC,
AAA 2,630(3) 6.25%, 8/01/04 ........................................................... N/A 2,806,604
AAA 1,500(3) 6.60%, 8/01/04 ........................................................... N/A 1,606,335
AAA 5,000(3) Hillsborough Cnty. Sch. Brd., COP, 5.875%, 7/01/04, MBIA ................... N/A 5,344,800
AAA 3,000 Hillsborough Cnty. Sch. Dist. Sales Tax, 4.00%, 10/01/09, AMBAC ............ No Opt. Call 3,253,020
AAA 10,000 Hillsborough Cnty. Util., 4.50%, 8/01/08, AMBAC ............................ No Opt. Call 11,076,500
Indian River Cnty. Sch. Dist., GO, FSA,
AAA 950 3.25%, 4/01/08 ........................................................... No Opt. Call 992,627
AAA 1,000 3.25%, 4/01/09 ........................................................... No Opt. Call 1,038,080
Indian Trace Cmnty. Dev. Dist., Wtr. Mgmt. Spec. Benefit, Ser. A, MBIA,
AAA 3,000 5.625%, 5/01/08 .......................................................... 05/05 @ 102 3,265,110
AAA 2,910 5.75%, 5/01/09 ........................................................... 05/05 @ 102 3,171,463
Jacksonville Beach Utils., AMBAC,
AAA 1,100 3.10%, 4/01/09 ........................................................... No Opt. Call 1,133,121
AAA 1,155 3.10%, 10/01/09 .......................................................... No Opt. Call 1,192,688
AAA 5,895 Jacksonville Excise Tax, 4.25%, 10/01/08, AMBAC ............................ No Opt. Call 6,476,836
Jacksonville Sales Tax,
AAA 1,155 3.125%, 10/01/08, FGIC ................................................... No Opt. Call 1,205,011
AAA 1,000 3.375%, 10/01/09, FGIC ................................................... No Opt. Call 1,048,430
AAA 2,000 4.10%, 10/01/08, AMBAC ................................................... No Opt. Call 2,182,620
AAA 825 Lake Cnty. Sch. Brd., COP, 3.50%, 7/01/09, AMBAC ........................... No Opt. Call 866,811
AAA 2,000 Lakeland Elec. & Wtr., 5.90%, 10/01/08, FSA ................................ No Opt. Call 2,359,900
AAA 3,000 Lee Cnty. Arprt., 4.25%, 10/01/09, FSA ..................................... No Opt. Call 3,259,920
Miami, GO, FGIC,
AAA 1,345 5.90%, 12/01/08 .......................................................... No Opt. Call 1,598,116
AAA 1,000 6.00%, 12/01/09 .......................................................... No Opt. Call 1,204,210
AAA 2,000 Miami Dade Cnty., Edl. Fac., Ser. A, 4.875%, 4/01/09, AMBAC ................ No Opt. Call 2,249,000
Miami Dade Cnty., Pub. Svc. Tax Rev., Pub. Impvt., AMBAC,
AAA 1,535 3.40%, 4/01/08 ........................................................... No Opt. Call 1,614,191
AAA 1,595 3.625%, 4/01/09 .......................................................... No Opt. Call 1,725,742
AAA 4,775 Miami Dade Cnty., Sch. Brd., COP, Ser. C, 5.25%, 8/01/11, FSA .............. 08/08 @ 101 5,387,203
AAA 1,000 Orange Cnty., Pub. Svc. Tax Rev., 5.70%, 10/01/08, FGIC .................... 10/05 @ 102 1,104,360
AAA 4,895 Orange Cnty., Sales Tax Rev., Ser. A, 3.25%, 1/01/09, FGIC ................. No Opt. Call 5,073,716
See Notes to Financial Statements.
37
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
Orange Cnty., Tourist Dev., Tax Rev., Ser. A,
AAA $ 5,130 4.00%, 10/01/08, AMBAC ................................................... No Opt. Call $ 5,559,894
AAA 5,340 4.00%, 10/01/09, AMBAC ................................................... No Opt. Call 5,774,302
AAA 1,005 5.85%, 10/01/08, MBIA .................................................... ETM 1,187,357
AAA 495 5.85%, 10/01/08, MBIA .................................................... No Opt. Call 580,175
Orlando Wst. Wtr. Sys., Ser. A, AMBAC,
AAA 1,100 3.25%, 10/01/08 .......................................................... No Opt. Call 1,154,395
AAA 1,280 3.50%, 10/01/09 .......................................................... No Opt. Call 1,351,181
Osceola Cnty., AMBAC,
AAA 1,810 3.75%, 10/01/08 .......................................................... No Opt. Call 1,944,085
AAA 1,535 3.875%, 10/01/09 ......................................................... No Opt. Call 1,653,440
Osceola Cnty. Gas Tax, FGIC,
AAA 640 3.10%, 4/01/08 ........................................................... No Opt. Call 664,416
AAA 535 3.30%, 4/01/09 ........................................................... No Opt. Call 556,796
AAA 2,000 Osceola Cnty. Trans., Osceola Pkwy. Proj., 5.95%, 4/01/08, MBIA ............ 07/03 @ 101 2,031,700
Palm Beach Cnty. Sch. Brd., COP, Ser. D, FSA,
AAA 1,770 3.00%, 8/01/08 ........................................................... No Opt. Call 1,831,136
AAA 850 3.30%, 8/01/09 ........................................................... No Opt. Call 885,096
AAA 7,085 Pasco Cnty. Solid Wst. Disp. & Res. Rec. Sys., 6.00%, 4/01/09, FGIC ........ 07/03 @ 101 7,197,793
Polk Cnty. Sch. Brd., COP, Ser. A, FSA,
AAA 2,000 3.20%, 1/01/08 ........................................................... No Opt. Call 2,072,200
AAA 2,000 3.375%, 1/01/09 .......................................................... No Opt. Call 2,075,340
AAA 1,020 Sebring Wtr. & Wstwtr., 3.625%, 1/01/09, FGIC .............................. No Opt. Call 1,076,753
AAA 1,0003 Seminole Cnty. Sch. Brd., COP, Ser. A, 5.90%, 7/01/04, MBIA ................ N/A 1,069,730
AAA 2,000 Seminole Cnty. Wtr. & Swr., 6.00%, 10/01/09, MBIA .......................... No Opt. Call 2,398,500
So. Florida Wtr. Mgmt. Dist., AMBAC,
AAA 1,250 3.00%, 10/01/08 .......................................................... No Opt. Call 1,296,425
AAA 1,000 3.30%, 10/01/09 .......................................................... No Opt. Call 1,044,120
AAA 500 St. Petersburg Hlth. Facs. Auth., All Childrens Hosp.,
3.10%, 11/15/08, AMBAC ................................................... No Opt. Call 518,940
AAA 1,370 Village Ctr. Cmnty. Dev. Dist. Rec., Ser. A, 5.50%, 11/01/08, MBIA ......... No Opt. Call 1,592,858
AAA 4,065 Volusia Cnty. Edl. Fac. Auth., Embry Riddle Aero. Univ., 6.50%,
10/15/08, CONNIE LEE ..................................................... 07/03 @ 102 4,161,788
AAA 2,370 Volusia Cnty. Sales Tax, Ser. B, 4.00%, 10/01/08, MBIA ..................... No Opt. Call 2,574,744
------------
202,695,437
------------
PUERTO RICO--17.2%
Puerto Rico Mun. Fin. Agcy., Ser. A, FSA,
AAA 10,000 3.50%, 8/01/08 ........................................................... No Opt. Call 10,638,500
AAA 12,000 3.75%, 8/01/09 ........................................................... No Opt. Call 12,846,720
AAA 1,500 5.625%, 8/01/10 .......................................................... 08/09 @ 101 1,747,905
------------
25,233,125
------------
TOTAL INVESTMENTS--155.1% (COST $212,080,502) .............................. 227,928,562
Other assets in excess of liabilities--2.2% ................................ 3,160,235
Preferred shares at redemption value, including dividends payable--(57.3)% . (84,159,223)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ......................... $146,929,574
============
------------------------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) This bond is prerefunded. U.S. government securities, held in escrow, are
used to pay interest on this security, as well as retire the bond in full
at the date indicated, typically at a premium to par.
Securities that are covered by insurance, which ensures the timely payment of
principal and interest, represent approximately 100.0% of the Trust's total
investments.
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
CONNIE LEE -- College Construction Loan Insurance Association
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
See Notes to Financial Statements.
38
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2003
BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--152.6%
Albany Cnty., GO, FGIC,
AAA $ 1,515 3.50%, 6/01/08 ........................................................... No Opt. Call $ 1,602,112
AAA 2,030 3.50%, 6/01/09 ........................................................... No Opt. Call 2,139,478
AAA 1,0753 Babylon, GO, Ser. A, 5.875%, 1/15/04, AMBAC ................................ N/A 1,125,084
AAA 1,000 Bath Central Sch. Dist., 4.00%, 6/15/08, FGIC .............................. No Opt. Call 1,081,260
AAA 2,250 Central Square Central Sch. Dist., 3.75%, 5/15/09, FGIC .................... No Opt. Call 2,400,997
AAA 1,960 East Greenbush Central Sch. Dist., Ser. C, 4.00%, 6/15/09, FSA ............. No Opt. Call 2,120,269
Elmira City Sch. Dist., FGIC,
AAA 2,125 3.25%, 6/15/08 ........................................................... No Opt. Call 2,223,366
AAA 1,500 3.25%, 6/15/09 ........................................................... No Opt. Call 1,560,795
Erie Cnty., GO,
AAA 3,825 Pub. Impvt., Ser. A, 3.25%, 9/01/09, FGIC ................................ No Opt. Call 3,974,099
AAA 1,000 Pub. Impvt., Ser. A, 3.75%, 10/01/08, FGIC ............................... No Opt. Call 1,071,000
AAA 785 Ser. B, 5.70%, 5/15/08, MBIA ............................................. 05/04 @ 102 828,693
AAA 1,185 Evans & Brant Central Sch. Dist., Ser. C, 3.75%, 12/15/08, FGIC ............ No Opt. Call 1,272,311
Fayetteville-Manlius Central Sch. Dist., GO, FGIC,
AAA 1,125 3.75%, 6/15/09 ........................................................... No Opt. Call 1,201,523
AAA 1,000 4.00%, 6/15/08 ........................................................... No Opt. Call 1,081,260
AAA 1,0704 Highland Central Sch. Dist., GO, 3.50%, 6/15/09, FSA ....................... No Opt. Call 1,128,080
AAA 12,500 Long Island Pwr. Auth., Elec. Sys., 5.00%, 4/01/08, MBIA ................... No Opt. Call 13,939,000
Lowville Central Sch. Dist., GO, FGIC,
AAA 1,255 3.30%, 6/15/08 ........................................................... No Opt. Call 1,316,030
AAA 1,305 3.60%, 6/15/09 ........................................................... No Opt. Call 1,383,000
Met. Transp. Auth.,
AAA 2,500 Commuter Fac. Rev., Ser. A, 6.10%, 7/01/08, MBIA ......................... ETM 2,975,725
AAA 12,000 Ser. A, 3.50%, 11/15/09, FSA ............................................. No Opt. Call 12,629,160
AAA 26,075 Ser. K, 6.00%, 7/01/08, MBIA ............................................. ETM 30,913,477
AAA 1,500 Middletown Sch. Dist., GO, Ser. A, 3.00%, 11/01/09, FSA .................... No Opt. Call 1,538,190
Monroe Cnty., GO, Pub. Impvt., FGIC,
AAA 1,225 4.00%, 3/01/09 ........................................................... No Opt. Call 1,320,550
AAA 2,095 4.00%, 3/01/10 ........................................................... No Opt. Call 2,241,482
Mt. Sinai Union Free Sch. Dist., AMBAC,
AAA 935 6.00%, 2/15/08 ........................................................... No Opt. Call 1,087,630
AAA 930 6.10%, 2/15/09 ........................................................... No Opt. Call 1,101,092
AAA 1,075 6.10%, 2/15/10 ........................................................... No Opt. Call 1,281,518
New Paltz Central Sch. Dist., GO, FGIC,
AAA 500 3.125%, 6/01/08 .......................................................... No Opt. Call 520,075
AAA 610 3.50%, 6/01/09 ........................................................... No Opt. Call 642,897
AAA 3,000 New York, GO, Ser. A, 4.00%, 3/15/09, FSA .................................. No Opt. Call 3,227,220
New York City, GO,
AAA 1,000 Ser. A, 5.20%, 8/01/10, FSA .............................................. 08/08 @ 101 1,116,750
AAA 4,720 Ser. C, 4.75%, 8/15/09, XLCA ............................................. 08/08 @ 101 5,193,180
AAA 12,755 Ser. C, 5.00%, 8/01/08, FSA .............................................. No Opt. Call 14,231,264
AAA 45 Ser. C-1, 6.25%, 8/01/10, FSA ............................................ 07/03 @ 101.5 45,491
AAA 50 Ser. C-1, 6.375%, 8/01/08, MBIA .......................................... 07/03 @ 101.5 50,551
AAA 1703 Ser. D, 5.75%, 8/15/03, MBIA ............................................. N/A 173,514
AAA 2,830 Ser. D, 5.75%, 8/05/07, MBIA ............................................. 08/03 @ 101.5 2,888,496
AAA 6,895 Ser. E, 6.20%, 8/01/08, MBIA ............................................. No Opt. Call 8,067,012
New York City Hlth. & Hosp. Corp., Hlth. Sys., Ser. A,
AAA 2,810 3.75%, 2/15/09, FSA ...................................................... No Opt. Call 2,962,246
AAA 2,000 5.00%, 2/15/08, AMBAC .................................................... No Opt. Call 2,221,560
New York City Mun. Wtr. Fin. Auth., Ser. A,
AAA 11,500 Zero Coupon, 6/15/09, MBIA ............................................... No Opt. Call 9,714,970
AAA 1,710 6.00%, 6/15/08, FGIC ..................................................... ETM 2,000,512
See Notes to Financial Statements.
39
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS (CONTINUED)
New York City Transl. Fin. Auth.,
AAA $ 4,000 Ser. B, 4.00%, 5/01/09, MBIA ............................................. No Opt. Call $ 4,300,400
AAA 7,800 Ser. B, 5.25%, 5/01/11, MBIA ............................................. No Opt. Call 8,947,536
AAA 2,000 Ser. C, 5.00%, 8/01/09, FSA .............................................. No Opt. Call 2,268,100
AAA 3,300 Ser. C, 5.50%, 2/01/09, FSA .............................................. No Opt. Call 3,793,416
New York Dorm. Auth.,
AAA 3,150(3) City Univ., Ser. 1, 6.125%, 7/01/04, AMBAC ............................... N/A 3,376,674
AAA 1,070 Hosp. Lutheran Medical, 3.00%, 2/01/09, MBIA ............................. No Opt. Call 1,089,067
AAA 1,625 Sch. Dist. Fin., Ser. C, 3.50%, 10/01/08, MBIA ........................... No Opt. Call 1,717,105
AAA 2,970 Secured Hosp., 4.00%, 2/15/09, XLCA ...................................... No Opt. Call 3,185,414
AAA 3,500 Secured Hosp., 5.00%, 2/15/10, MBIA ...................................... 02/08 @ 101.5 3,864,945
AAA 5,000 Secured Hosp., 5.125%, 2/15/09, FSA ...................................... 02/08 @ 101.5 5,592,100
AAA 1,600 St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/07, FGIC ....................... No Opt. Call 1,810,528
AAA 2,500 St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/08, AMBAC ...................... No Opt. Call 2,860,675
AAA 6,000 St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/08, CONNIE LEE ................. No Opt. Call 6,865,620
AAA 5,000 St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/08, FGIC ....................... No Opt. Call 5,721,350
AAA 5,000 St. Univ. Edl. Facs., Ser. A, 5.50%, 5/15/09, AMBAC ...................... No Opt. Call 5,783,750
AAA 500 W.K. Nursing Home, 5.65%, 8/01/09 ........................................ 08/06 @ 102 544,845
AAA 1,000 Winthrop Univ. Hosp. Assoc., Ser. A, 4.125%, 7/01/08, AMBAC .............. No Opt. Call 1,083,410
New York Env. Facs. Corp.,
AAA 1,630 Clean Wtr. & Drinking, 3.875%, 4/15/10 ................................... No Opt. Call 1,731,337
AAA 6,000 Mun. Wtr. Proj., 4.00%, 6/15/09 .......................................... No Opt. Call 6,476,820
AAA 4,170(3) PCR, Ser. D, 6.60%, 11/15/04 ............................................. N/A 4,577,493
AAA 830 PCR, Ser. D, 6.60%, 5/15/08 .............................................. 11/04 @ 102 901,861
New York Hsg. Fin. Agcy.,
AAA 1,860 Hsg. Proj. Mtge., Ser. A, 5.80%, 5/01/09, FSA ............................ 05/06 @ 102 2,012,055
AAA 4,845 Hsg. Proj. Mtge., Ser. A, 5.80%, 11/01/09, FSA ........................... 05/06 @ 102 5,239,722
AAA 3,915 Multifamily Mtge. Hsg., Ser. C, 6.30%, 8/15/08 ........................... 07/03 @ 102 3,958,692
New York Med. Care Fac. Fin. Agcy.,
AAA 3,000 Mental Hlth. Fac., 5.25%, 8/15/07, FGIC .................................. 02/04 @ 102 3,127,800
AAA 5,000(3) New York Hosp., Ser. A, 6.50%, 2/15/05, AMBAC ............................ N/A 5,526,200
AAA 250 New York Pwr. Auth., Ser. CC, 5.125%, 1/01/11, MBIA ...................... ETM 287,228
New York Thruway Auth.,
AAA 2,000 Hwy. & Brdg. Trust Fund, Ser. A, 3.90%, 4/01/09, FSA ..................... No Opt. Call 2,137,560
AAA 5,000 Hwy. & Brdg. Trust Fund, Ser. A, 5.625%, 4/01/04, AMBAC .................. N/A 5,276,100
AAA 2,000 Hwy. & Brdg. Trust Fund, Ser. B, 4.00%, 4/01/09, MBIA .................... No Opt. Call 2,148,160
AAA 2,900 Hwy. & Brdg. Trust Fund, Ser. B, 5.25%, 4/01/11, MBIA .................... No Opt. Call 3,322,588
AAA 1,000 Hwy. & Brdg. Trust Fund, Ser. B, 6.00%, 4/01/04, FGIC .................... N/A 1,058,000
AA 4,955 Ser. A, 3.75%, 3/15/09, MBIA ............................................. No Opt. Call 5,224,502
AAA 6,940(3) Svc. Contract Rev., Local Hwy. & Brdg., 5.75%, 4/01/04, MBIA ............. N/A 7,329,612
AAA 3,410 Svc. Contract Rev., Local Hwy. & Brdg., Ser. A, 5.375%, 4/01/09, MBIA .... 04/08 @ 101 3,870,316
New York Urban Dev. Corp., Correctional Facs., AMBAC,
AAA 2,000 Ser. A, 5.50%, 1/01/09 ................................................... No Opt. Call 2,294,880
AAA 5,140 Svc. Contract Rev., Ser. B, 5.25%, 1/01/10 ............................... 01/09 @101 5,795,247
AAA 1,040 Newfane Central Sch. Dist., GO, 3.00%, 6/01/08, FSA ........................ No Opt. Call 1,075,745
So. Seneca Central Sch. Dist., GO, MBIA,
AAA 1,185 3.20%, 6/15/08 ........................................................... No Opt. Call 1,237,093
AAA 1,045 3.375%, 6/15/09 .......................................................... No Opt. Call 1,094,533
AAA 1,030 Sodus Central Sch. Dist., 4.00%, 6/15/09, FGIC ............................. No Opt. Call 1,114,223
AAA 5,000 Suffolk Cnty. Ind. Dev. Agcy., Southwest, 6.00%, 2/01/08, FGIC ............. No Opt. Call 5,788,400
AAA 1,675 Suffolk Cnty. Wtr. Auth., Ser. C, 5.75%, 6/01/08, AMBAC .................... ETM 1,696,072
AAA 2,265 Triborough Brdg. & Tunl. Auth., Ser. A, 5.125%, 1/01/11, MBIA .............. ETM 2,564,161
------------
TOTAL LONG-TERM INVESTMENTS (COST $272,649,346) ............................ 299,264,254
------------
See Notes to Financial Statements.
40
SHARES
(000) DESCRIPTION VALUE
------------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUND--1.0%
2,000 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $2,000,000) ....... $ 2,000,000
------------
TOTAL INVESTMENTS--153.6% (COST $274,649,346) .............................. 301,264,254
Other assets in excess of liabilities--2.2% ................................ 4,381,917
Preferred shares at redemption value, including dividends payable--(55.8)% . (109,569,316)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ......................... $196,076,855
============
------------------------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) This bond is prerefunded. U.S. government securities, held in escrow, are
used to pay interest on this security, as well as retire the bond in full
at the date indicated, typically at a premium to par.
(4) Entire or partial principal amount pledged as collateral for financial
futures contracts.
Securities that are covered by insurance, which ensures the timely payment of
principal and interest, represent approximately 93.3% of the Trust's total
investments.
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
CONNIE LEE -- College Construction Loan Insurance Association
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
XLCA -- XL Capital Assurance
See Notes to Financial Statements.
41
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2003
BLACKROCK NEW YORK MUNICIPAL 2018 TERM TRUST
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--152.7%
NEW YORK--144.8%
NR $4,0003 Charter Mac Equity Issuer Trust, Ser. A, 6.625%, 6/30/49 ................... 06/09 @ 100 $ 4,389,280
Aaa 1,320 East Rochester Hsg. Auth., 5.20%, 12/20/24 ................................. 12/11 @ 101 1,380,667
Long Island Pwr. Auth., Elec. Sys. Rev.,
AAA 1,900 Zero Coupon, 6/01/18, FSA ................................................ No Opt. Call 1,002,193
A- 2,500 Ser. C, 5.50%, 9/01/18 ................................................... 09/13 @ 100 2,677,700
AAA 5,000 Met. Transp. Auth., Ser. A, 5.125%, 11/15/21, FGIC ......................... 11/12 @ 100 5,409,050
New York City, GO,
A+ 4,000 Ser. B, 5.375%, 12/01/20 ................................................. 12/11 @ 100 4,203,320
A 5,000 Ser. G, 5.75%, 8/01/18 ................................................... 08/12 @ 100 5,474,650
A- 4,000 New York City Ind. Dev. Agcy., Civic Fac. Rev.,
YMCA of Greater New York Proj., 5.25%, 8/01/21 ........................... 02/11 @ 100 4,128,600
New York City Transl. Fin. Auth.,
AA+ 3,000 Ser. B, 5.00%, 5/01/18 ................................................... 11/11 @ 101 3,239,460
AA+ 1,895 Ser. C, 5.00%, 5/01/19 ................................................... 05/09 @ 101 2,010,292
New York Dorm. Auth.,
AA- 1,800 City Univ., Ser. A, 5.125%, 7/01/21 ...................................... 07/11 @ 100 1,904,814
AA- 3,750 Mental Hlth. Svcs. Facs., Ser. A, 5.00%, 2/15/18 ......................... 02/08 @ 102 3,970,200
AAA 2,620 Mental Hlth. Svcs. Facs., Ser. B, 5.50%, 8/15/20, MBIA ................... 08/11 @ 100 2,902,017
AA- 3,230 Upstate Cmnty. Colleges, Ser. A, 5.00%, 7/01/19 .......................... 07/09 @ 101 3,414,982
AAA 1,000 Willow Towers Inc. Proj., 5.25%, 2/01/22 ................................. 08/12 @ 101 1,055,140
AA- 3,500 New York Urban Dev. Corp., Correctional Facs., 5.00%, 1/01/19 .............. 01/08 @ 102 3,635,170
AA 4,180 Niagra Cnty. Ind. Dev. Agcy., Civic Fac. Rev., Niagra Univ. Proj.,
Ser. A, 5.35%, 11/01/23, RAA ............................................. 11/11 @ 101 4,416,588
AA 4,130 Oneida Hlth. Care Corp., Residential Hlth. Care Proj., 5.30%, 2/01/21 ...... 02/11 @ 101 4,388,951
AA 3,875 Orange Cnty. Ind. Dev. Agcy., Civic Fac. Rev., St. Lukes Hosp.
Newburg Proj., Ser. A, 5.375%, 12/01/21, RAA ............................. 12/11 @ 101 4,179,962
Port Auth. of NY & NJ,
AAA 3,885 Ser. 126, 5.00%, 11/15/18, FGIC .......................................... 05/12 @ 101 4,200,967
Caa2 2,600 Spec. Oblig., Cont'l./Eastern Proj. LaGuardia, 9.125%, 12/01/15 .......... 08/03 @ 100 2,600,026
A- 4,000 Rockland Tobacco Asset Sec. Corp., Tobacco Settlement Rev.,
5.625%, 8/15/35 .......................................................... 08/12 @ 100 3,477,200
A- 3,000 TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32 ................ 07/12 @ 100 2,758,860
AAA 3,710 Westchester Cnty. Ind. Dev. Agy., Civic Fac. Rev., Ser. A, 5.125%,
12/01/22, AMBAC .......................................................... 12/11 @ 102 4,021,566
------------
80,841,655
------------
See Notes to Financial Statements.
42
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO--7.9%
A- $2,000 Children's Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43 ............ 05/12 @ 100 $ 1,724,060
BBB+ 2,500 Puerto Rico Pub. Fin. Corp., Ser. E, 5.70%, 8/01/25 ........................ 02/10 @ 100 2,679,175
------------
4,403,235
------------
TOTAL INVESTMENTS--152.7% (COST $80,804,183) ............................... 85,244,890
Other assets in excess of liabilities--3.5% ................................ 1,993,336
Preferred shares at redemption value, including dividends payable--(56.2)% . (31,403,608)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ......................... $ 55,834,618
============
------------------------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A under
that Act, to qualified institutional buyers. As of June 30, 2003, the Trust
held 7.9% of its net assets, with a current market value of $4,389,280, in
securities restricted as to resale.
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
RAA -- Radian Asset Assurance
See Notes to Financial Statements.
43
PORTFOLIO OF INVESTMENTS (UNAUDITED)
JUNE 30, 2003
BLACKROCK PENNSYLVANIA STRATEGIC MUNICIPAL TRUST
PRINCIPAL
AMOUNT OPTION CALL
RATING(1) (000) DESCRIPTION PROVISIONS(2) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--140.5%
PENNSYLVANIA--134.0%
AAA $2,1503 Allegheny Cnty. Port Auth., 6.125%, 3/01/29, MBIA .......................... N/A $ 2,590,277
AAA 1,800 Allegheny Cnty. San. Auth., 5.375%, 12/01/24, MBIA ......................... 12/07 @ 102 1,915,020
BBB+ 1,400 Bucks Cnty. Ind. Dev. Auth., Pennswood Vlg. Proj., Ser. A,
6.00%, 10/01/34 .......................................................... 10/12 @ 101 1,460,676
NR 1,250 Dauphin Cnty. Gen. Auth., Hotel & Conf. Ctr., Hyatt Regency,
6.20%, 1/01/19 ........................................................... 01/09 @ 102 1,209,400
AAA 2,500 Delaware Cnty. Hlth. Facs. Auth., Mercy Hlth. Corp. Proj.,
6.00%, 12/15/26 .......................................................... 12/06 @ 102 2,814,675
AAA 1,250 Delaware Cnty. Ind. Dev. Auth., Wtr. Facs., 6.00%, 6/01/29, FGIC ........... 06/09 @ 101 1,407,713
Lehigh Cnty. Gen. Purp. Auth., Kidspeace Oblig. Grp.,
Ba2 1,250 6.00%, 11/01/23 .......................................................... 11/08 @ 102 1,209,662
Ba2 1,250 6.20%, 11/01/14 .......................................................... 11/09 @ 102 1,243,725
BBB+ 1,250 Montgomery Cnty. Ind. Dev. Auth., Retirement Cmnty. Rev.,
5.25%, 11/15/28 .......................................................... 11/08 @ 101 1,221,050
NR 4,0004 MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 6/30/49 ................... 06/09 @ 100 4,419,000
Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Ser. A,
A3 1,000 6.25%, 11/01/31 .......................................................... 05/11 @ 101 939,400
A3 1,000 Exempt Facs. Rev., 6.375%, 11/01/41 ...................................... 05/11 @ 101 951,430
Pennsylvania Higher Edl. Facs. Auth.,
AA- 1,250 Lafayette Coll. Proj., 6.00%, 5/01/30 .................................... 05/10 @ 100 1,432,613
AA 310 Philadelphia Univ., 6.10%, 6/01/30, RAA .................................. 06/10 @ 100 347,575
A 1,000 Univ. of Pennsylvania Hlth. Svcs., Ser. A, 5.75%, 1/01/22 ................ 01/06 @ 101 1,028,350
Pennsylvania Hsg. Fin. Agcy., Sngl. Fam. Mtge.,
AA+ 1,235 Ser. 60A, 5.85%, 10/01/27 ................................................ 04/07 @ 101.5 1,284,017
AA+ 3,200 Ser. 68A, 6.10%, 4/01/21 ................................................. 10/09 @ 100 3,379,488
AAA 1,250 Philadelphia Arpt. Sys., Ser. B, 5.40%, 6/15/27, FGIC ...................... 06/07 @ 102 1,305,238
AAA 1,250 Philadelphia Pkg. Auth., Pkg. Rev., 5.625%, 9/01/18, FSA ................... 09/09 @ 101 1,420,175
Philadelphia Sch. Dist., GO,
AAA 1,190 Ser. B, 5.50%, 9/01/25, AMBAC ............................................ 09/05 @ 101 1,256,485
AAA 2,800 Ser. C, 5.50%, 3/01/24, MBIA ............................................. 03/10 @ 100 3,038,112
AAA 3,050 Ser. C, 5.75%, 3/01/29, MBIA ............................................. 03/10 @ 100 3,446,775
AAA 2,250 Southeastern Trans. Auth., 5.375%, 3/01/17, FGIC ........................... 03/07 @ 102 2,481,682
AAA 1,750 Washington Cnty. Auth., Cap. Fdg. & Equip. Proj., 6.15%, 12/01/29, AMBAC ... No Opt. Call 2,166,202
------------
43,968,740
------------
PUERTO RICO--6.5%
BBB+ 2,000 Puerto Rico Pub. Fin. Corp., Ser. E, 5.50%, 8/01/29 ........................ 02/12 @ 100 2,122,360
------------
TOTAL LONG-TERM INVESTMENTS (COST $41,882,535) 46,091,100
------------
-----------
SHARES
(000)
-----------
MONEY MARKET FUND--4.6%
NR 3,000 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $1,500,000) ....... N/A 1,500,000
------------
TOTAL INVESTMENTS--145.1% (COST $43,382,535) ............................... 47,591,100
Other assets in excess of liabilities--8.2% ................................ 2,725,992
Preferred shares at redemption value, including dividends payable--(53.3)% . (17,502,160)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ......................... $32,814,932
============
------------------------
(1) Using the higher of S&P's, Moody's or Fitch's rating.
(2) Date (month/year) and price of the earliest call or redemption. There may
be other call provisions at varying prices at later dates.
(3) This bond is prerefunded. U.S. government securities, held in escrow, are
used to pay interest on this security, as well as retire the bond in full
at the date indicated, typically at a premium to par.
(4) Security is not registered under the Securities Act of 1933. These
securities may be resold in transactions in accordance with Rule 144A under
that Act, to qualified institutional buyers. As of June 30, 2003, the Trust
held 13.5% of its net assets, with a current market value of $4,419,000, in
securities restricted as to resale.
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
RAA -- Radian Asset Assurance
See Notes to Financial Statements.
44
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 2003
--------------------------------------------------------------------------------
INSURED INSURED MUNICIPAL
MUNICIPAL 2008 MUNICIPAL MUNICIPAL 2018 TARGET
ASSETS TERM TRUST TERM TRUST TERM TRUST TERM TRUST
----------------------------------------------------------------------------------
Investments at value(1)................................ $ 758,879,238 $ 470,489,783 $ 372,180,226 $ 802,478,991
Cash .................................................. 567,280 -- 518,362 350,160
Receivable from investments sold ...................... 2,230,000 715,000 5,974,672 466,590
Variation margin receivable ........................... -- 1,063 -- --
Interest receivable ................................... 9,711,148 5,544,049 4,447,308 8,118,929
Other assets .......................................... 150,452 117,912 38,131 135,227
------------- ------------- ------------- -------------
771,538,118 476,867,807 383,158,699 811,549,897
------------- ------------- ------------- -------------
LIABILITIES
Payable to custodian .................................. -- 95,516 -- --
Payable for investments purchased ..................... 9,259,449 4,374,027 3,482,375 --
Dividends payable - common shares ..................... 1,802,470 1,240,362 1,034,022 2,175,942
Investment advisory fee payable ....................... 220,070 136,616 125,335 233,840
Administration fee payable ............................ 62,877 -- -- 46,768
Deferred Directors/Trustees fees ...................... 81,801 66,066 9,155 69,027
Other accrued expenses ................................ 154,086 197,478 107,205 198,292
------------- ------------- ------------- -------------
11,580,753 6,110,065 4,758,092 2,723,869
------------- ------------- ------------- -------------
PREFERRED SHARES AT REDEMPTION VALUE
$25,000 liquidation value per share, including
dividends payable(2),(3) ............................ 271,078,102 170,458,349 137,615,561 299,180,148
------------- ------------- ------------- -------------
NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS ................................. $ 488,879,263 $ 300,299,393 $ 240,785,046 $ 509,645,880
============= ============= ============= =============
Composition of Net Assets Applicable to
Common Shareholders:
Par value ........................................... $ 272,071 $ 258,856 $ 15,908 $ 454,106
Paid-in capital in excess of par .................... 377,589,494 239,251,319 225,641,716 420,179,598
Undistributed net investment income ................. 45,300,367 20,634,757 7,394,000 34,103,054
Accumulated net realized gain (loss) ................ 3,277,607 788,795 (2,032,678) 1,011,956
Net unrealized appreciation ......................... 62,439,724 39,365,666 9,766,100 53,897,166
------------- ------------- ------------- -------------
Net assets applicable to common shareholders,
June 30, 2003 ....................................... $ 488,879,263 $ 300,299,393 $ 240,785,046 $ 509,645,880
============= ============= ============= =============
Net asset value per common share4 ..................... $ 17.97 $ 11.60 $ 15.14 $ 11.22
============= ============= ============= =============
(1)Investments at cost ................................ $ 696,439,514 $ 431,120,229 $ 362,414,126 $ 748,581,825
(2)Preferred shares outstanding ....................... 10,840 6,816 5,504 11,964
(3)Par value per share ................................ 0.01 0.01 0.001 0.01
(4)Common shares outstanding .......................... 27,207,093 25,885,639 15,908,028 45,410,639
See Notes to Financial Statements.
45
CALIFORNIA NEW YORK PENNSYLVANIA
STRATEGIC INSURED CALIFORNIA FLORIDA INSURED INSURED NEW YORK STRATEGIC
MUNICIPAL MUNICIPAL 2008 MUNICIPAL 2018 MUNICIPAL 2008 MUNICIPAL 2008 MUNICIPAL 2018 MUNICIPAL
TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TRUST
------------ ------------ ------------ ------------ ------------ ----------- -----------
$173,994,586 $284,316,733 $152,878,771 $227,928,562 $301,264,254 $85,244,890 $47,591,100
649,587 326,687 671,499 374,232 823,856 1,056,428 2,303,202
97,006 -- 4,183,237 -- 330,000 -- --
-- -- -- -- 1,063 -- --
2,306,976 3,485,000 1,540,332 3,463,231 4,092,537 1,191,478 612,325
42,741 62,967 15,307 51,983 64,505 21,053 16,369
------------ ------------ ------------ ------------ ------------ ----------- -----------
177,090,896 288,191,387 159,289,146 231,818,008 306,576,215 87,513,849 50,523,006
------------ ------------ ------------ ------------ ------------ ----------- -----------
-- -- -- -- -- -- --
-- -- 8,741,037 -- -- -- --
544,857 669,957 394,023 544,193 703,568 222,523 141,925
50,834 83,493 49,909 66,981 88,664 28,955 14,242
-- 23,855 -- 19,137 25,333 -- --
16,815 30,476 3,790 23,855 30,628 3,623 9,091
73,669 54,596 37,542 75,045 81,851 20,522 40,656
------------ ------------ ------------ ------------ ------------ ----------- -----------
686,175 862,377 9,226,301 729,211 930,044 275,623 205,914
------------ ------------ ------------ ------------ ------------ ----------- -----------
62,008,484 104,562,894 55,533,259 84,159,223 109,569,316 31,403,608 17,502,160
------------ ------------ ------------ ------------ ------------ ----------- -----------
$114,396,237 $182,766,116 $ 94,529,586 $146,929,574 $196,076,855 $55,834,618 $32,814,932
============ ============ ============ ============ ============ =========== ===========
$ 7,242 $ 104,071 $ 6,433 $ 87,071 $ 112,571 $ 3,633 $ 2,015
102,593,420 144,174,166 91,213,865 120,583,337 155,947,555 51,482,732 28,362,834
3,568,251 16,384,597 2,055,521 9,472,157 13,087,768 1,062,242 739,545
(2,735,184) 1,140,261 (1,421,126) 938,949 317,941 (1,154,696) (498,027)
10,962,508 20,963,021 2,674,893 15,848,060 26,611,020 4,440,707 4,208,565
------------ ------------ ------------ ------------ ------------ ----------- -----------
$114,396,237 $182,766,116 $ 94,529,586 $146,929,574 $196,076,855 $55,834,618 $32,814,932
============ ============ ============ ============ ============ =========== ===========
$15.80 $17.56 $14.69 $16.87 $17.42 $15.37 $16,28
====== ====== ====== ====== ====== ====== ======
$163,032,078 $263,353,712 $150,203,878 $212,080,502 $274,649,346 $80,804,183 $43,382,535
2,480 4,182 2,221 3,366 4,382 1,256 700
0.001 0.01 0.001 0.01 0.01 0.001 0.001
7,242,261 10,407,093 6,433,028 8,707,093 11,257,093 3,633,028 2,015,492
See Notes to Financial Statements.
46
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2003
--------------------------------------------------------------------------------
INSURED INSURED MUNICIPAL
MUNICIPAL 2008 MUNICIPAL MUNICIPAL 2018 TARGET
INVESTMENT INCOME TERM TRUST TERM TRUST TERM TRUST TERM TRUST
-------------- ----------- -------------- ------------
Interest Income $17,148,072 $10,888,996 $10,747,470 $16,722,545
----------- ----------- ----------- -----------
EXPENSES
Investment advisory 1,309,595 807,847 737,676 1,401,675
Administration 374,170 230,813 -- 280,335
Transfer agent 12,715 14,773 8,429 14,097
Custodian 79,596 68,765 43,729 92,130
Reports to shareholders 39,259 20,548 21,344 51,572
Directors/Trustees 39,208 20,943 17,632 35,704
Registration 15,621 15,879 15,620 17,852
Independent accountants 26,811 27,509 22,498 24,751
Legal 28,478 20,264 13,187 36,364
Insurance 9,058 7,227 16,105 5,322
Auction agent 350,337 211,323 177,442 371,032
Miscellaneous 49,926 39,023 20,412 87,779
----------- ----------- ----------- -----------
Total expenses 2,334,774 1,484,914 1,094,074 2,418,613
Less fees waived by Advisor -- -- -- --
Less fees paid indirectly (5,255) (1,452) (4,048) (3,731)
----------- ----------- ----------- -----------
Net expenses 2,329,519 1,483,462 1,090,026 2,414,882
----------- ----------- ----------- -----------
Net investment income 14,818,553 9,405,534 9,657,444 14,307,663
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments 1,950,182 43,441 988,560 541,201
Futures -- 28,817 -- --
----------- ----------- ----------- -----------
1,950,182 72,258 988,560 541,201
----------- ----------- ----------- -----------
Net change in unrealized appreciation/depreciation on:
Investments 4,836,021 6,729,137 3,834,408 2,421,253
Futures -- (15,560) -- --
----------- ----------- ----------- -----------
4,836,021 6,713,577 3,834,408 2,421,253
----------- ----------- ----------- -----------
Net gain (loss) 6,786,203 6,785,835 4,822,968 2,962,454
----------- ----------- ----------- -----------
DIVIDENDS TO PREFERRED SHAREHOLDERS FROM
NET INVESTMENT INCOME (1,301,284) (821,026) (724,181) (1,520,289)
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS
APPLICABLE TO COMMON SHAREHOLDERS
RESULTING FROM OPERATIONS $20,303,472 $15,370,343 $13,756,231 $15,749,828
=========== =========== =========== ===========
See Notes to Financial Statements
47
CALIFORNIA NEW YORK
STRATEGIC INSURED CALIFORNIA FLORIDA INSURED INSURED NEW YORK STRATEGIC
MUNICIPAL MUNICIPAL 2008 MUNICIPAL 2018 MUNICIPAL 2008 MUNICIPAL 2008 MUNICIPAL 2018 MUNICIPAL
TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TERM TRUST TRUST
-------------- -------------- -------------- --------------- -------------- --------------- ----------
$4,958,236 $5,948,036 $3,822,172 $4,603,792 $6,673,439 $2,198,441 $1,334,855
---------- ---------- ---------- ---------- ---------- ---------- ----------
509,561 496,068 294,998 397,322 526,743 170,780 147,010
-- 141,734 -- 113,521 150,498 -- --
8,429 9,386 7,933 8,952 10,285 7,933 8,507
35,179 47,227 24,460 40,966 53,221 20,665 21,497
13,400 14,419 11,001 12,005 16,747 9,179 7,063
8,175 14,454 7,185 11,368 15,518 6,327 6,154
11,763 15,631 11,157 11,158 15,635 11,763 595
20,515 20,428 21,755 20,513 20,680 21,507 13,945
7,611 15,436 5,956 10,015 15,529 5,415 5,660
1,149 3,217 6,268 2,744 3,561 3,549 333
79,655 136,360 72,386 108,948 142,557 42,443 26,786
15,300 22,985 15,255 21,019 22,875 11,437 8,516
---------- ---------- ---------- ---------- ---------- ---------- ----------
710,737 937,345 478,354 758,531 993,849 310,998 246,066
(212,317) -- -- -- -- -- (61,254)
(3,690) (11,222) (4,997) (7,808) (7,085) (4,493) (6,125)
---------- ---------- ---------- ---------- ---------- ---------- ----------
494,730 926,123 473,357 750,723 986,764 306,505 178,687
---------- ---------- ---------- ---------- ---------- ---------- ----------
4,463,506 5,021,913 3,348,815 3,853,069 5,686,675 1,891,936 1,156,168
---------- ---------- ---------- ---------- ---------- ---------- ----------
(99,035) 723,089 100,956 219,953 324,252 (478,150) 175,642
-- -- -- -- 28,817 -- --
---------- ---------- ---------- ---------- ---------- ---------- ----------
(99,035) 723,089 100,956 219,953 353,069 (478,150) 175,642
---------- ---------- ---------- ---------- ---------- ---------- ----------
4,912,332 926,520 (154,409) 3,508,899 2,463,627 1,038,598 963,353
-- -- -- -- (15,560) -- --
---------- ---------- ---------- ---------- ---------- ---------- ----------
4,912,332 926,520 (154,409) 3,508,899 2,448,067 1,038,598 963,353
---------- ---------- ---------- ---------- ---------- ---------- ----------
4,813,297 1,649,609 (53,453) 3,728,852 2,801,136 560,448 1,138,995
---------- ---------- ---------- ---------- ---------- ---------- ----------
(332,001) (383,581) (245,179) (307,417) (527,188) (163,962) (82,443)
---------- ---------- ---------- ---------- ---------- ---------- ----------
$8,944,802 $6,287,941 $3,050,183 $7,274,504 $7,960,623 $2,288,422 $2,212,720
========== ========== ========== ========== ========== ========== ==========
See Notes to Financial Statements.
48
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 (UNAUDITED) AND FOR THE YEAR ENDED
DECEMBER 31, 2002
--------------------------------------------------------------------------------
INSURED INSURED
MUNICIPAL 2008 TERM TRUST MUNICIPAL TERM TRUST
----------------------------- ----------------------------
INCREASE IN NET ASSETS APPLICABLE TO 2003 2002 2003 2002
COMMON SHAREHOLDERS ------------ ------------ ------------ ------------
OPERATIONS:
Net investment income ....................................... $ 14,818,553 $ 34,371,404 $ 9,405,534 $ 21,059,940
Net realized gain (loss) .................................... 1,950,182 2,687,741 72,258 3,435,689
Net change in unrealized appreciation/depreciation .......... 4,836,021 11,516,251 6,713,577 6,943,379
Dividends to preferred shareholders from:
Net investment income .................................... (1,301,284) (3,429,311) (821,026) (2,026,272)
Net realized gain ........................................ -- (193,351) -- (401,327)
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations .................................... 20,303,472 44,952,734 15,370,343 29,011,409
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
COMMON SHAREHOLDERS FROM:
Net investment income ....................................... (10,814,624) (21,629,022) (7,441,940) (14,884,571)
Net realized gain ........................................... -- (1,003,044) -- (2,498,663)
------------ ------------ ------------ ------------
Total dividends and distributions ........................ (10,814,624) (22,632,066) (7,441,940) (17,383,234)
------------ ------------ ------------ ------------
ADDITIONAL OFFERING COSTS RELATING
TO THE ISSUANCE OF PREFERRED SHARES ......................... -- -- -- --
------------ ------------ ------------ ------------
Total increase ........................................... 9,488,848 22,320,668 7,928,403 11,628,175
------------ ------------ ------------ ------------
NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS:
Beginning of period ............................................ 479,390,415 457,069,747 292,370,990 280,742,815
------------ ------------ ------------ ------------
End of period .................................................. $488,879,263 $479,390,415 $300,299,393 $292,370,990
============ ============ ============ ============
End of period undistributed net investment income .............. $ 45,300,367 $ 42,597,722 $ 20,634,757 $ 19,492,189
See Notes to Financial Statements.
49
--------------------------------------------------------------------------------
Municipal Municipal Strategic
2018 Term Trust Target Term Trust Municipal Trust
------------------------------- ------------------------------ ------------------------------
2003 2002 2003 2002 2003 2002
------------ ------------ ------------ ------------ ------------ ------------
$ 9,657,444 $ 18,533,905 $ 14,307,663 $ 31,860,076 $ 4,463,506 $ 9,124,316
988,560 (3,021,249) 541,201 990,672 (99,035) 435,409
3,834,408 14,845,740 2,421,253 26,905,451 4,912,332 2,608,519
(724,181) (1,906,541) (1,520,289) (3,733,411) (332,001) (837,410)
-- -- -- (390,763) -- --
------------ ------------ ------------ ------------ ------------ ------------
13,756,231 28,451,855 15,749,828 55,632,025 8,944,802 11,330,834
------------ ------------ ------------ ------------ ------------ ------------
(6,204,123) (12,408,254) (13,055,476) (27,169,808) (3,269,142) (6,393,453)
-- -- -- (1,682,964) -- --
------------ ------------ ------------ ------------ ------------ ------------
(6,204,123) (12,408,254) (13,055,476) (28,852,772) (3,269,142) (6,393,453)
------------ ------------ ------------ ------------ ------------ ------------
-- (40,134) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
7,552,108 16,003,467 2,694,352 26,779,253 5,675,660 4,937,381
------------ ------------ ------------ ------------ ------------ ------------
233,232,938 217,229,471 506,951,528 480,172,275 108,720,577 103,783,196
------------ ------------ ------------ ------------ ------------ ------------
$240,785,046 $233,232,938 $509,645,880 $506,951,528 $114,396,237 $108,720,577
============ ============ ============ ============ ============ ============
$ 7,394,000 $ 4,664,860 $ 34,103,054 $ 34,371,156 $ 3,568,257 $ 2,705,894
50
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 2003 (UNAUDITED) AND FOR THE YEAR ENDED
DECEMBER 31, 2002
--------------------------------------------------------------------------------
California Insured California
Municipal 2008 Term Trust Municipal 2018 Term Trust
---------------------------------- ------------------------------
2003 2002 2003 2002
Increase in Net Assets Applicable to ------------ ------------ ----------- -----------
Common Shareholders
Operations:
Net investment income ............................ $ 5,021,913 $ 12,296,157 $ 3,348,815 $ 6,650,751
Net realized gain (loss) ......................... 723,089 2,132,299 100,956 (1,522,082)
Net change in unrealized appreciation/depreciation 926,520 2,845,882 (154,409) 6,517,313
Dividends to preferred shareholders from:
Net investment income ......................... (383,581) (1,144,907) (245,179) (730,547)
Net realized gain ............................. -- (282,979) -- --
------------ ------------ ----------- -----------
Net increase in net assets resulting
from operations ......................... 6,287,941 15,846,452 3,050,183 10,915,435
------------ ------------ ----------- -----------
Dividends and Distributions to
Common Shareholders from:
Net investment income ............................ (4,019,665) (8,379,547) (2,364,134) (4,728,272)
Net realized gain ................................ -- (1,455,598) -- --
------------ ------------ ----------- -----------
Total dividends and distributions .......... (4,019,665) (9,835,145) (2,364,134) (4,728,272)
------------ ------------ ----------- -----------
Unused (additional) offering costs relating
to the issuance of preferred shares .............. -- -- -- (8,099)
------------ ------------ ----------- -----------
Total increase ............................. 2,268,276 6,011,307 686,049 6,179,064
------------ ------------ ----------- -----------
Net Assets Applicable to
Common Shareholders:
Beginning of period ................................. 180,497,840 174,486,533 93,843,537 87,664,473
------------ ------------ ----------- -----------
End of period ....................................... $182,766,116 $180,497,840 $94,529,586 $93,843,537
============ =========== ========== ==========
End of period undistributed net investment income ... $ 16,384,597 $ 15,765,930 $ 2,055,521 $ 1,316,019
See Notes to Financial Statements.
51
--------------------------------------------------------------------------------
FLORIDA NEW YORK INSURED NEW YORK PENNSYLVANIA
MUNICIPAL 2008 TERM TRUST MUNCIPAL 2008 TERM TRUST MUNICIPAL 2018 TERM TRUST STRATEGIC MUNICIPAL TRUST
------------------------------ ---------------------------- --------------------------------- ------------------------------
2003 2002 2003 2002 2003 2002 2003 2002
-------------- ------------ ------------ ------------- ---------------- -------------- ------------- -------------
$ 3,853,069 $ 9,728,220 $ 5,686,675 $ 12,692,900 $ 1,891,936 $ 3,676,247 $ 1,156,168 $ 2,349,724
219,953 2,460,124 353,069 1,241,424 (478,150) (668,608) 175,642 (124,910)
3,508,899 746,601 2,448,067 7,115,347 1,038,598 5,602,206 963,353 1,591,396
(307,417) (985,695) (527,188) (1,285,575) (163,962) (415,905) (82,443) (217,886)
-- (327,763) -- (285,365) -- -- -- --
------------ ------------ ------------ ------------ ----------- ----------- ----------- -----------
7,274,504 11,621,487 7,960,623 19,478,731 2,288,422 8,193,940 2,212,720 3,598,324
------------ ------------ ------------ ------------ ----------- ----------- ----------- -----------
(3,264,996) (6,530,070) (4,221,216) (8,442,487) (1,335,134) (2,670,271) (851,549) (1,675,080)
-- (1,538,717) -- (1,309,504) -- -- -- --
------------ ------------ ------------ ------------ ----------- ----------- ----------- -----------
(3,264,996) (8,068,787) (4,221,216) (9,751,991) (1,335,134) (2,670,271) (851,549) (1,675,080)
------------ ------------ ------------ ------------ ----------- ----------- ----------- -----------
-- -- -- -- -- 4,438 -- --
------------ ------------ ------------ ------------ ----------- ----------- ----------- -----------
4,009,508 3,552,700 3,739,407 9,726,740 953,288 5,528,107 1,361,171 1,923,244
------------ ------------ ------------ ------------ ----------- ----------- ----------- -----------
142,920,066 139,367,366 192,337,448 182,610,708 54,881,330 49,353,223 31,453,761 29,530,517
------------ ------------ ------------ ------------ ----------- ----------- ----------- -----------
$146,929,574 $142,920,066 $196,076,855 $192,337,448 $55,834,618 $54,881,330 $32,814,932 $31,453,761
============ ============ ============ ============ =========== =========== =========== ===========
$ 9,472,157 $ 9,191,501 $ 13,087,768 $ 12,149,497 $ 1,062,242 $ 669,402 $ 740,965 $ 518,789
52
FINANCIAL HIGHLIGHTS
---------------------------------------------
BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST
---------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2003 -----------------------------------------------------------------
(UNAUDITED) 2002 2001(1) 2000(1) 1999(1) 1998(1)
-------------- --------- --------- --------- --------- ---------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period(2) .... $ 17.62 $ 16.80 $ 16.62 $ 16.00 $ 17.06 $ 16.80
------- --------- --------- --------- --------- ---------
Investment operations:
Net investment income .................. 0.55 1.26 1.33 1.30 1.21 1.20
Net realized and unrealized gain (loss). 0.25 0.53 (0.08) 0.54 (1.23) 0.11
Dividends and distributions to preferred
shareholders:
From net investment income ........... (0.05) (0.13) (0.27) (0.38) (0.24) (0.25)
From net realized gain ............... -- (0.01) 0.00(3) -- -- --
In excess of net realized gain ....... -- -- -- -- -- 0.00(4)
------- --------- --------- --------- --------- ---------
Net increase (decrease) from investment
operations ............................. 0.75 1.65 0.98 1.46 (0.26) 1.06
------- --------- --------- --------- --------- ---------
Dividends and distributions to common
shareholders:
From net investment income ............. (0.40) (0.79) (0.80) (0.80) (0.80) (0.80)
From net realized gain ................. -- (0.04) 0.003 -- -- --
In excess of net realized gain ......... -- -- -- -- -- 0.00(4)
------- --------- --------- --------- --------- ---------
Total dividends and distributions ......... (0.40) (0.83) (0.80) (0.80) (0.80) (0.80)
------- --------- --------- --------- --------- ---------
Capital charge with respect to issuance of
preferred shares ....................... -- -- -- (0.04) -- --
------- --------- --------- --------- --------- ---------
Net asset value, end of period(2) ......... $ 17.97 $ 17.62 $ 16.80 $ 16.62 $ 16.00 $ 17.06
======= ========= ========= ========= ======== =========
Market price, end of period(2) ............ $ 17.79 $ 16.58 $ 15.70 $ 14.88 $ 13.75 $ 16.13
======= ========= ========= ========= ======== =========
TOTAL INVESTMENT RETURN5 .................. 9.81% 11.15% 11.06% 14.40% (10.14)% 11.21%
======= ========= ========= ========= ======== =========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(6)
Expenses after fees paid indirectly ....... 0.97%(7) 0.98% 1.01% 1.05% 0.93% 0.88%
Expenses before fees paid indirectly ...... 0.97%(7) 0.98% 1.02% 1.05% 0.93% 0.88%
Net investment income before preferred
share dividends ........................ 6.18%(7) 7.34% 7.87% 8.06% 7.30% 7.10%
Preferred share dividends ................. 0.54%(7) 0.73% 1.60% 2.40% 1.47% 1.49%
Net investment income available to
common shareholders .................... 5.64%(7) 6.61% 6.27% 5.66% 5.83% 5.61%
SUPPLEMENTAL DATA:
Average net assets of common
shareholders (000) ..................... $483,542 $468,417 $460,153 $438,958 $452,317 $458,993
Portfolio turnover ........................ 10% 23% 3% 3% 1% 0%
Net assets of common shareholders,
end of period (000) .................... $488,879 $479,390 $457,070 $452,057 $435,314 $464,236
Preferred shares outstanding (000) ........ $271,000 $271,000 $271,000 $271,000 $206,000 $206,000
Asset coverage per preferred share,
end of period .......................... $ 70,107 $ 69,235 $ 67,178 $ 66,735 $ 77,857 $ 81,361
----------
(1) Amounts have been restated to conform to the presentation under the
provision of EITF D-98.
(2) Net asset value and market price are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
(3) Actual amount paid to common shareholders was $0.004614 for the year ended
December 31, 2001. Actual amount paid to preferred shareholders was
$0.001848 per common share for the year ended December 31, 2001.
(4) Actual amount paid to common shareholders was $0.005235 for the year ended
December 31, 1998. Actual amount paid to preferred shareholders was
$0.001696 per common share for the year ended December 31, 1998.
(5) Total investment return is calculated assuming a purchase of a common share
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(6) 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.
(7) Annualized.
The information above represents the unaudited operating performance for a
common share outstanding, total investment returns, ratios to average net assets
and other supplemental data for each period indicated. This information has been
determined based upon financial information provided in the financial statements
and market price data for the Trust's common shares.
See Notes to Financial Statements.
53
FINANCIAL HIGHLIGHTS
----------------------------------------
BLACKROCK INSURED MUNICIPAL TERM TRUST
----------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2003 --------------------------------------------------------------------
(UNAUDITED) 2002 2001(1) 2000(1) 1999(1) 1998(1)
-------------- --------- --------- --------- --------- ---------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period(2)..... $ 11.29 $ 10.85 $ 10.85 $ 10.60 $ 11.22 $ 11.20
-------- --------- --------- --------- --------- ---------
Investment operations:
Net investment income ................... 0.36 0.81 0.89 0.89 0.85 0.85
Net realized and unrealized gain
(loss) .............................. 0.27 0.41 (0.12) 0.28 (0.68) (0.03)
Dividends and distributions to preferred
shareholders from:
Net investment income ............... (0.03) (0.08) (0.18) (0.26) (0.17) (0.18)
Net realized gain ................... -- (0.02) (0.01) (0.01) -- --
-------- --------- --------- --------- --------- ---------
Net increase from investment operations .... 0.60 1.12 0.58 0.90 0.00 0.64
-------- --------- --------- --------- --------- ---------
Dividends and distributions to common
shareholders from:
Net investment income ................... (0.29) (0.58) (0.57) (0.60) (0.62) (0.62)
Net realized gain ....................... -- (0.10) (0.02) (0.02) -- --
-------- --------- --------- --------- --------- ---------
Total dividends and distributions to
common shareholders ..................... (0.29) (0.68) (0.59) (0.62) (0.62) (0.62)
-------- --------- --------- --------- --------- ---------
Capital change with respect to issuance of
preferred shares ........................ -- -- 0.01 (0.03) -- --
-------- --------- --------- --------- --------- ---------
Net asset value, end of period(2) .......... $ 11.60 $ 11.29 $ 10.85 $ 10.85 $ 10.60 $ 11.22
======== ========= ========= ========= ========= =========
Market price, end of period(2) ............. $ 11.47 $ 10.94 $ 10.63 $ 10.44 $ 9.44 $ 11.50
======== ========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN(3) ................. 7.57% 9.51% 7.73% 17.81% (12.92)% 10.53%
======== ========= ========= ========= ========= =========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(4)
Expenses after fees paid indirectly ........ 1.01%(5) 1.05% 1.06% 1.11% 0.94% 0.93%
Expenses before fees paid indirectly ....... 1.01%(5) 1.06% 1.06% 1.11% 0.94% 0.93%
Net investment income before preferred
share dividends ......................... 6.43%(5) 7.32% 8.12% 8.40% 7.74% 7.56%
Preferred share dividends .................. 0.56%(5) 0.70% 1.68% 2.44% 1.51% 1.53%
Net investment income available to
common shareholders ..................... 5.87%(5) 6.62% 6.44% 5.96% 6.23% 6.03%
SUPPLEMENTAL DATA:
Average net assets of common
shareholders (000) ...................... $295,052 $287,692 $284,390 $274,553 $284,075 $290,004
Portfolio turnover ......................... 6% 36% 7% 14% 0% 0%
Net assets of common shareholders,
end of period (000) ..................... 300,299 $292,371 $280,743 $280,965 $274,320 $290,469
Preferred shares outstanding (000) ......... 170,400 $170,400 $170,400 $170,400 $130,000 $130,000
Asset coverage per preferred share,
end of period ........................... $ 69,067 $ 67,895 $ 66,195 $ 66,242 $ 77,768 $ 80,868
----------
(1) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(2) Net asset value and market price are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
(3) Total investment return is calculated assuming a purchase of a common share
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(4) 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.
(5) Annualized.
The information above represents the unaudited operating performance for a
common share outstanding, total investment returns, ratios to average net assets
and other supplemental data for each period indicated. This information has been
determined based upon financial information provided in the financial statements
and market price data for the Trust's common shares.
See Notes to Financial Statements.
54
FINANCIAL HIGHLIGHTS
-------------------------------------
BLACKROCK MUNICIPAL 2018 TERM TRUST
-------------------------------------
FOR THE PERIOD
SIX MONTHS ENDED OCTOBER 30, 2001(1)
JUNE 30, 2003 YEAR ENDED THROUGH
(UNAUDITED) DECEMBER 31, 2002 DECEMBER 31, 2001(2),(3)
------------------- ------------------- -------------------------
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period(4) ....................... $ 14.66 $ 13.66 $ 14.33
--------- -------- --------
Investment operations:
Net investment income ...................................... 0.61 1.17 0.10
Net realized and unrealized gain (loss) .................... 0.31 0.73 (0.55)
Dividends to preferred shareholders from net investment
income ................................................... (0.05) (0.12) (0.01)
--------- -------- --------
Net increase (decrease) from investment operations ............ 0.87 1.78 (0.46)
--------- -------- --------
Dividends to common shareholders from net investment
income ................................................... (0.39) (0.78) (0.07)
--------- -------- --------
Capital charges with respect to issuance of:
Common shares .............................................. -- -- (0.03)
Preferred shares ........................................... -- -- (0.11)
--------- -------- --------
Total capital charges ......................................... -- (0.00)(5) (0.14)
--------- -------- --------
Net asset value, end of period(4) ............................. $ 15.14 $ 14.66 $ 13.66
========= ======== ========
Market price, end of period(4) ................................ $ 14.85 $ 13.43 $ 13.06
========= ======== ========
TOTAL INVESTMENT RETURN(6) .................................... 13.62% 8.84% (12.51)%
========= ======== ========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(7)
Expenses after fees paid indirectly ........................... 0.94%(8) 0.92% 0.93%(8)
Expenses before fees paid indirectly .......................... 0.94%(8) 0.94% 0.93%(8)
Net investment income before preferred share dividends ........ 8.31%(8) 8.14% 4.39%(8)
Preferred share dividends ..................................... 0.62%(8) 0.84% 0.28%(8)
Net investment income available to common shareholders ........ 7.69%(8) 7.30% 4.11%(8)
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ............... $ 234,295 $227,674 $206,486
Portfolio turnover ............................................ 10% 53% 0%
Net assets of common shareholders, end of period (000) ........ $ 240,785 $233,233 $217,229
Preferred shares outstanding (000) ............................ $ 137,600 $137,600 $137,600
Asset coverage per preferred share, end of period ............. $ 68,750 $ 67,381 $ 64,485
----------
(1) Commencement of investment operations. This information includes the
initial investment by BlackRock Funding, Inc. Net asset value immediately
after the closing of the public offering was $14.30.
(2) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(3) Calculated using the average shares outstanding method.
(4) Net asset value and market price are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
(5) Less than $0.005.
(6) Total investment return is calculated assuming a purchase of a common share
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(7) 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
the common shareholders.
(8) Annualized.
The information above represents the unaudited operating performance for a
common share outstanding, total investment returns, ratios to average net assets
and other supplemental data for each period indicated. This information has been
determined based upon financial information provided in the financial statements
and market price data for the Trust's common shares.
See Notes to Financial Statements.
55
FINANCIAL HIGHLIGHTS
---------------------------------------
BLACKROCK MUNICIPAL TARGET TERM TRUST
---------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2003 --------------------------------------------------------------------
(UNAUDITED) 2002 2001(1) 2000(1) 1999(1) 1998(1)
-------------- --------- --------- --------- --------- ---------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period(2) .... $ 11.16 $ 10.57 $ 10.67 $ 10.60 $ 11.21 $ 11.22
-------- --------- --------- --------- --------- ---------
Investment operations:
Net investment income ................... 0.31 0.70 0.83 0.90 0.85 0.85
Net realized and unrealized gain (loss) . 0.07 0.62 (0.10) 0.05 (0.68) (0.08)
Dividends and distributions to preferred
shareholders from:
Net investment income ............... (0.03) (0.08) (0.17) (0.26) (0.16) (0.17)
Net realized gain ................... -- (0.01) (0.02) -- -- --
Net increase from investment operations .... 0.35 1.23 0.54 0.69 0.01 0.60
-------- --------- --------- --------- --------- ---------
Dividends and distributions to common
shareholders from:
Net investment income ................... (0.29) (0.60) (0.58) (0.60) (0.62) (0.61)
Net realized gain ....................... -- (0.04) (0.06) -- -- --
-------- --------- --------- --------- --------- ---------
Total dividends and distributions ....... (0.29) (0.64) (0.64) (0.60) (0.62) (0.61)
-------- --------- --------- --------- --------- ---------
Capital change with respect to issuance of
preferred shares ........................ -- -- 0.003 (0.02) -- --
-------- --------- --------- --------- --------- ---------
Net asset value, end of period(2) .......... $ 11.22 $ 11.16 $ 10.57 $ 10.67 $ 10.60 $ 11.21
======== ========= ========= ========= ========= =========
Market price, end of period(2) ............. $ 11.16 $ 11.01 $ 10.40 $ 9.94 $ 9.81 $ 11.38
======== ========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN(4) ................. 4.02% 12.28% 11.16% 7.63% (8.43)% 9.35%
======== ========= ========= ========= ========= =========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(5)
Expenses after fees paid indirectly ........ 0.96%(6) 0.97% 0.96% 1.00% 0.87% 0.80%
Expenses before fees paid indirectly ....... 0.96%(6) 0.97% 0.98% 1.00% 0.87% 0.80%
Net investment income before preferred
share dividends ......................... 5.67%(6) 6.44% 7.73% 8.61% 7.72% 7.63%
Preferred share dividends .................. 0.60%(6) 0.75% 1.57% 2.48% 1.49% 1.50%
Net investment income available to
common shareholders ..................... 5.07%(6) 5.69% 6.16% 6.13% 6.23% 6.13%
SUPPLEMENTAL DATA:
Average net assets of common
shareholders (000) ...................... $508,495 $494,694 $489,251 $477,169 $497,324 $508,037
Portfolio turnover ......................... 4% 18% 42% 5% 4% 0%
Net assets of common shareholders,
end of period (000) ..................... $509,646 $506,952 $480,172 $484,646 $481,463 $508,851
Preferred shares outstanding (000) ......... $299,100 $299,100 $299,100 $299,100 $225,000 $225,000
Asset coverage per preferred share,
end of period ........................... $ 67,605 $67,379 $65,141 $65,530 $78,514 $81,550
----------
(1) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(2) Net asset value and market price are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
(3) Less than $0.005.
(4) Total investment return is calculated assuming a purchase of a common share
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends and
distributions, if any, are assumed, for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized.Past
performance is not a guarantee of future results.
(5) Ratios calculated on the basis of income and expenses applicable to both
the common and preferred shares relative to the average net assets of the
common shareholders.
(6) Annualized.
The information above represents the unaudited operating performance for a
common share outstanding, total investment returns, ratios to average net assets
and other supplemental data, for each period indicated. This information has
been determined based upon financial information provided in the financial
statements and market price data for the Trust's common shares.
See Notes to Financial Statements.
56
FINANCIAL HIGHLIGHTS
-------------------------------------
BLACKROCK STRATEGIC MUNICIPAL TRUST
-------------------------------------
SIX MONTHS FOR THE PERIOD
ENDED YEAR ENDED DECEMBER 31, AUGUST 25, 1999(1)
JUNE 30, 2003 -------------------------------------- THROUGH
(UNAUDITED) 2002 2001(2) 2000(2) DECEMBER 31, 1999(2)
----------- --------- --------- --------- --------------------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period(3) .......... $ 15.01 $ 14.33 $ 14.75 $ 13.39 $ 14.33
-------- -------- -------- -------- --------
Investment operations:
Net investment income ......................... 0.62 1.26 1.25 1.22 0.30
Net realized and unrealized gain (loss) ....... 0.67 0.42 (0.58) 1.41 (0.79)
Dividends to preferred shareholders:
From net investment income .................. (0.05) (0.12) (0.23) (0.35) (0.06)
In excess of net investment income .......... -- -- -- (0.01) --
-------- -------- -------- -------- --------
Net increase (decrease) from investment operations 1.24 1.56 0.44 2.27 (0.55)
-------- -------- -------- -------- --------
Dividends to common shareholders:
From net investment income .................... (0.45) (0.88) (0.86) (0.88) (0.23)
In excess of net investment income ............ -- -- -- (0.03) --
-------- -------- -------- -------- --------
Total dividends .................................. (0.45) (0.88) (0.86) (0.91) (0.23)
-------- -------- -------- -------- --------
Capital charges with respect to issuance of:
Common shares ................................. -- -- -- -- (0.03)
Preferred shares .............................. -- -- -- -- (0.13)
-------- -------- -------- -------- --------
Total capital charges ............................ -- -- -- -- (0.16)
-------- -------- -------- -------- --------
Net asset value, end of period(3) ................ $ 15.80 $ 15.01 $ 14.33 $ 14.75 $ 13.39
======== ======== ======== ======== ========
Market price, end of period(3) ................... $ 15.10 $ 13.78 $ 13.58 $ 13.69 $ 12.50
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN(4) ....................... 13.10% 8.03% 5.32% 17.44% (15.17)%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:(5)
Expenses after expense offsets ................... 0.91%(6) 0.98% 0.91% 0.90% 0.94%(6)
Expenses before expense offsets .................. 1.31%(6) 1.39% 1.31% 1.30% 1.35%(6)
Net investment income before preferred
share dividends ............................... 8.24%(6) 8.54% 8.40% 8.86% 6.24%(6)
Preferred share dividends ........................ 0.61%(6) 0.78% 1.58% 2.60% 1.16%(6)
Net investment income available to
common shareholders ........................... 7.63%(6) 7.76% 6.82% 6.26% 5.08%(6)
SUPPLEMENTAL DATA:
Average net assets of common
shareholders (000) ............................ $109,261 $106,807 $107,381 $100,171 $ 98,300
Portfolio turnover 0% 13% 4% 44% 4%
Net assets of common shareholders,
end of period (000) ........................... $114,396 $108,721 $103,783 $106,833 $ 96,971
Preferred shares outstanding (000) ............... $ 62,000 $ 62,000 $ 62,000 $ 62,000 $ 62,000
Asset coverage per preferred share,
end of period ................................. $ 71,131 $ 68,844 $ 66,855 $ 68,092 $ 64,109
----------
(1) Commencement of investment operations. This information includes the
initial investments by BlackRock Financial Management, Inc. Net assets
value immediately after the closing of the public offering was $14.30.
(2) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(3) Net asset value and market price are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
(4) Total investment return is calculated assuming a purchase of a common share
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(5) 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
the common shareholders.
(6) Annualized.
The information above represents the unaudited operating performance for a
common share outstanding, total investment returns, ratios to average net assets
and other supplemental data for each period indicated. This information has been
determined based upon financial information provided in the financial statements
and market price data for the Trust's common shares.
See Notes to Financial Statements.
57
FINANCIAL HIGHLIGHTS
--------------------------------------------------------
BLACKROCK CALIFORNIA INSURED MUNICIPAL 2008 TERM TRUST
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2003 -------------------------------------------------------------------
(UNAUDITED) 2002 2001(1) 2000(1) 1999(1) 1998(1)
---------------- -------- --------- --------- --------- ---------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period(2)..... $ 17.34 $ 16.77 $ 16.72 $ 16.11 $ 17.12 $ 16.69
-------- --------- --------- --------- --------- ---------
Investment operations:
Net investment income ................... 0.49 1.18 1.27 1.27 1.17 1.18
Net realized and unrealized gain (loss) . 0.16 0.48 (0.19) 0.52 (1.20) 0.25
Dividends and distributions to preferred
shareholders from:
Net investment income ............... (0.04) (0.11) (0.24) (0.35) (0.21) (0.23)
Net realized gain ................... -- (0.03) (0.01) -- -- --
-------- --------- --------- --------- --------- ---------
Net increase (decrease) from investment
operations .............................. 0.61 1.52 0.83 1.44 (0.24) 1.20
-------- --------- --------- --------- --------- ---------
Dividends and distributions to common
shareholders from:
Net investment income ................... (0.39) (0.81) (0.77) (0.77) (0.77) (0.77)
Net realized gain ....................... -- (0.14) (0.02) -- -- --
-------- --------- --------- --------- --------- ---------
Total dividends and distributions .......... (0.39) (0.95) (0.79) (0.77) (0.77) (0.77)
-------- --------- --------- --------- --------- ---------
Capital change with respect to issuance
of preferred shares ..................... -- -- 0.01 (0.06) -- --
-------- --------- --------- --------- --------- ---------
Net asset value, end of period(2) .......... $ 17.56 $ 17.34 $ 16.77 $ 16.72 $ 16.11 $ 17.12
======== ========= ========= ========= ========= =========
Market price, end of period(2) ............. $ 16.98 $ 16.44 $ 15.90 $ 15.63 $ 13.88 $ 15.94
======== ========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN(3) ................. 5.70% 9.56% 7.06% 18.68% (8.40)% 9.77%
======== ========= ========= ========= ========= =========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(4)
Expenses after fees paid indirectly ........ 1.03%(5) 1.05% 1.08% 1.11% 0.98% 0.91%
Expenses before fees paid indirectly ....... 1.04%(5) 1.06% 1.09% 1.11% 0.98% 0.91%
Net investment income before preferred
share dividends ......................... 5.59%(5) 6.91% 7.57% 7.74% 7.01% 6.96%
Preferred share dividends .................. 0.43%(5) 0.64% 1.45% 2.14% 1.25% 1.36%
Net investment income available to
common shareholders ..................... 5.16%(5) 6.27% 6.12% 5.60% 5.76% 5.60%
SUPPLEMENTAL DATA:
Average net assets of common
shareholders (000) ...................... $181,302 $ 177,861 $ 176,424 $ 170,286 $ 174,070 $ 175,760
Portfolio turnover ......................... 9% 33% 5% 0% 0% 0%
Net assets of common shareholders,
end of period (000) ..................... $182,766 $ 180,498 $ 174,487 $ 173,974 $ 167,672 $ 178,134
Preferred shares outstanding (000) ......... $104,550 $ 104,550 $ 104,550 $ 104,550 $ 78,000 $ 78,000
Asset coverage per preferred share,
end of period ........................... $ 68,706 $ 68,161 $ 66,735 $ 66,629 $ 78,765 $ 82,111
----------
(1) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(2) Net asset value and market price are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
(3) Total investment return is calculated assuming a purchase of a common share
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(4) 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.
(5) Annualized.
The information above represents the unaudited operating performance for a
common share outstanding, total investment returns, ratios to average net assets
and other supplemental data for each period indicated. This information has been
determined based upon financial information provided in the financial statements
and market price data for the Trust's common shares.
See Notes to Financial Statements.
58
FINANCIAL HIGHLIGHTS
------------------------------------------------
BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST
------------------------------------------------
FOR THE PERIOD
SIX MONTHS ENDED OCTOBER 30, 2001(1)
JUNE 30, 2003 YEAR ENDED THROUGH
(UNAUDITED) DECEMBER 31, 2002 DECEMBER 31, 2001(2),(3)
------------------ ------------------- --------------------------
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period(4) ................. $ 14.59 $ 13.63 $ 14.33
-------- -------- --------
Investment operations:
Net investment income ................................ 0.52 1.03 0.09
Net realized and unrealized gain (loss) .............. (0.01) 0.78 (0.57)
Dividends to preferred shareholders
from net investment income ......................... (0.04) (0.11) (0.01)
-------- -------- --------
Net increase (decrease) from investment
operations ........................................... 0.47 1.70 (0.49)
-------- -------- --------
Dividends to common shareholders from
net investment income ................................ (0.37) (0.74) (0.06)
-------- -------- --------
Capital charges with respect to issuance of:
Common shares ........................................ -- -- (0.03)
Preferred shares ..................................... -- -- (0.12)
-------- -------- --------
Total capital charges ................................... -- (0.00)(5) (0.15)
-------- -------- --------
Net asset value, end of period(4) ....................... $ 14.69 $ 14.59 $ 13.63
======== ======== ========
Market price, end of period(4) .......................... $ 14.40 $ 13.40 $ 12.85
======== ======== ========
TOTAL INVESTMENT RETURN(6) .............................. 10.29% 10.04% (13.94)%
======== ======== ========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(7)
Expenses after fees paid indirectly ..................... 1.02%(8) 0.99% 1.07%(8)
Expenses before fees paid indirectly .................... 1.04%(8) 1.03% 1.07%(8)
Net investment income before preferred share dividends .. 7.25%(8) 7.33% 3.78%(8)
Preferred share dividends ............................... 0.53%(8) 0.81% 0.27%(8)
Net investment income available to common shareholders .. 6.72%(8) 6.52% 3.51%(8)
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ......... $93,196 $90,721 $82,906
Portfolio turnover ...................................... 6% 42% 0%
Net assets of common shareholders, end of period (000) .. $94,530 $93,844 $87,664
Preferred shares outstanding (000) ...................... $55,525 $55,525 $55,525
Asset coverage per preferred share, end of period ....... $67,565 $67,254 $64,488
----------
(1) Commencement of investment operations. This information includes the
initial investment by BlackRock Funding, Inc. Net asset value immediately
after the closing of the public offering was $14.30.
(2) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(3) Calculated using the average shares outstanding method.
(4) Net asset value and market price are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
(5) Less than $0.005.
(6) Total investment return is calculated assuming a purchase of a common share
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(7) 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
the common shareholders.
(8) Annualized.
The information above represents the unaudited operating performance for a
common share outstanding, total investment returns, ratios to average net assets
and other supplemental data for each period indicated. This information has been
determined based upon financial information provided in the financial statements
and market price data for the Trust's common shares.
See Notes to Financial Statements.
59
FINANCIAL HIGHLIGHTS
-----------------------------------------------------
BLACKROCK FLORIDA INSURED MUNICIPAL 2008 TERM TRUST
-----------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2003 -------------------------------------------------------------------
(UNAUDITED) 2002 2001(1) 2000(1) 1999(1) 1998(1)
---------------- -------- --------- --------- --------- ---------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period(2) .... $ 16.41 $ 16.01 $ 15.84 $ 15.56 $ 16.51 $ 16.35
-------- --------- --------- --------- --------- ---------
Investment operations:
Net investment income ................... 0.44 1.12 1.25 1.24 1.17 1.18
Net realized and unrealized gain (loss) . 0.43 0.36 (0.04) 0.28 (1.02) 0.08
Dividends and distributions to preferred
shareholders from:
Net investment income ............... (0.04) (0.11) (0.25) (0.37) (0.24) (0.24)
Net realized gain ................... -- (0.04) (0.01) -- -- --
-------- --------- --------- --------- --------- ---------
Net increase (decrease) from investment
operations .............................. 0.83 1.33 0.95 1.15 (0.09) 1.02
-------- --------- --------- --------- --------- ---------
Dividends and distributions to common
shareholders from:
Net investment income ................... (0.37) (0.75) (0.75) (0.81) (0.86) (0.86)
Net realized gain ....................... -- (0.18) (0.04) -- -- --
-------- --------- --------- --------- --------- ---------
Total dividends and distributions .......... (0.37) (0.93) (0.79) (0.81) (0.86) (0.86)
-------- --------- --------- --------- --------- ---------
Capital change with respect to issuance
of preferred shares ..................... -- -- 0.01 (0.06) -- --
-------- --------- --------- --------- --------- ---------
Net asset value, end of period(2) .......... $ 16.87 $ 16.41 $ 16.01 $ 15.84 $ 15.56 $ 16.51
======== ========= ========= ========= ========= =========
Market price, end of period(2) ............. $ 16.59 $ 15.91 $ 15.40 $ 14.00 $ 14.13 $ 16.81
======== ========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN(3) ................. 6.72% 9.61% 15.90% 4.96% (11.12)% 10.32%
======== ========= ========= ========= ========= =========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(4)
Expenses after fees paid indirectly ........ 1.05%(5) 1.05% 1.10% 1.14% 0.99% 0.93%
Expenses before fees paid indirectly ....... 1.06%(5) 1.06% 1.12% 1.14% 0.99% 0.93%
Net investment income before preferred
share dividends ......................... 5.37%(5) 6.90% 7.75% 7.94% 7.25% 7.17%
Preferred share dividends .................. 0.43%(5) 0.70% 1.55% 2.39% 1.50% 1.48%
Net investment income available to
common shareholders ..................... 4.94%(5) 6.20% 6.20% 5.55% 5.75% 5.69%
SUPPLEMENTAL DATA:
Average net assets of common
shareholders (000) ...................... $144,773 $ 141,064 $ 140,004 $ 135,492 $ 140,225 $ 142,817
Portfolio turnover ......................... 5% 52% 7% 0% 3% 0%
Net assets of common shareholders,
end of period (000) ..................... $146,930 $ 142,920 $ 139,367 $ 137,917 $ 135,459 $ 143,769
Preferred shares outstanding (000) ......... $ 84,150 $ 84,150 $ 84,150 $ 84,150 $ 66,000 $ 66,000
Asset coverage per preferred share,
end of period ........................... $ 68,654 $ 67,460 $ 66,406 $ 65,982 $ 76,312 $ 79,460
----------
(1) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(2) Net asset value and market price are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
(3) Total investment return is calculated assuming a purchase of a common share
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(4) 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.
(5) Annualized.
The information above represents the unaudited operating performance for a
common share outstanding, total investment returns, ratios to average net assets
and other supplemental data for each period indicated. This information has been
determined based upon financial information provided in the financial statements
and market price data for the Trust's common shares.
See Notes to Financial Statements.
60
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
BLACKROCK NEW YORK INSURED MUNICIPAL 2008 TERM TRUST
--------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 2003 -------------------------------------------------------------------
(UNAUDITED) 2002 2001(1) 2000(1) 1999(1) 1998(1)
---------------- -------- --------- --------- --------- ---------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period(2) .... $ 17.09 $ 16.22 $ 16.17 $ 15.63 $ 16.74 $ 16.53
-------- --------- --------- --------- --------- ---------
Investment operations:
Net investment income ................... 0.50 1.13 1.25 1.24 1.16 1.16
Net realized and unrealized gain (loss) . 0.25 0.75 (0.17) 0.53 (1.18) 0.15
Dividends and distributions to preferred
shareholders from:
Net investment income ............... (0.05) (0.11) (0.26) (0.38) (0.23) (0.25)
Net realized gain ................... -- (0.03) (0.01) -- -- --
-------- --------- --------- --------- --------- ---------
Net increase (decrease) from investment
operations .............................. 0.70 1.74 0.81 1.39 (0.25) 1.06
-------- --------- --------- --------- --------- ---------
Dividends and distributions to common
shareholders from:
Net investment income ................... (0.37) (0.75) (0.75) (0.80) (0.86) (0.85)
Net realized gain ....................... -- (0.12) (0.02) -- -- --
-------- --------- --------- --------- --------- ---------
Total dividends and distributions .......... (0.37) (0.87) (0.77) (0.80) (0.86) (0.85)
-------- --------- --------- --------- --------- ---------
Capital change with respect to issuance
of preferred shares ..................... -- -- 0.01 (0.05) -- --
-------- --------- --------- --------- --------- ---------
Net asset value, end of period(2) .......... $ 17.42 $ 17.09 $ 16.22 $ 16.17 $ 15.63 $ 16.74
======== ========= ========= ========= ========= =========
Market price, end of period(2) ............. $ 16.88 $ 16.22 $ 15.50 $ 14.75 $ 14.69 $ 16.69
======== ========= ========= ========= ========= =========
TOTAL INVESTMENT RETURN(3) ................. 6.45% 10.47% 10.48% 6.10% (6.96)% 10.76%
======== ========= ========= ========= ========= =========
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(4)
Expenses after fees paid indirectly ........ 1.03%(5) 1.04% 1.10% 1.12% 0.99% 0.92%
Expenses before fees paid indirectly ....... 1.03%(5) 1.05% 1.10% 1.12% 0.99% 0.92%
Net investment income before preferred
share dividends ......................... 5.91%(5) 6.75% 7.59% 7.85% 7.13% 7.03%
Preferred share dividends .................. 0.55%(5) 0.68% 1.56% 2.40% 1.42% 1.51%
Net investment income available to
common shareholders ..................... 5.36%(5) 6.07% 6.03% 5.45% 5.71% 5.52%
SUPPLEMENTAL DATA:
Average net assets of common
shareholders (000) ...................... $193,940 $ 187,970 $ 184,600 $ 177,057 $ 183,111 $ 186,451
Portfolio turnover ......................... 4% 31% 9% 0% 0% 0%
Net assets of common shareholders,
end of period (000) ..................... $196,077 $192,337 $182,611 $182,075 $175,961 $188,394
Preferred shares outstanding (000) ......... $109,550 $ 109,550 $ 109,550 $ 109,550 $ 85,500 $ 85,500
Asset coverage per preferred share,
end of period ........................... $ 69,750 $ 68,893 $ 66,674 $ 66,596 $ 76,489 $ 80,121
----------
(1) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(2) Net asset value and market price are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
(3) Total investment return is calculated assuming a purchase of a common share
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(4) 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.
(5) Annualized.
The information above represents the unaudited operating performance for a
common share outstanding, total investment returns, ratios to average net assets
and other supplemental data for each period indicated. This information has been
determined based upon financial information provided in the financial statements
and market price data for the Trust's common shares.
See Notes to Financial Statements.
61
FINANCIAL HIGHLIGHTS
----------------------------------------------
BLACKROCK NEW YORK MUNICIPAL 2018 TERM TRUST
----------------------------------------------
FOR THE PERIOD
SIX MONTHS ENDED OCTOBER 30, 2001(1)
JUNE 30, 2003 YEAR ENDED THROUGH
(UNAUDITED) DECEMBER 31, 2002 DECEMBER 31, 2001(2),(3)
------------------- ------------------- -------------------------
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period(4) .................. $ 15.11 $ 13.58 $ 14.33
------- ------- -------
Investment operations:
Net investment income ................................. 0.53 1.01 0.09
Net realized and unrealized gain (loss) ............... 0.15 1.37 (0.61)
Dividends to preferred shareholders from net
investment income ................................... (0.05) (0.11) (0.01)
------- ------- -------
Net increase (decrease) from investment operations ....... 0.63 2.27 (0.53)
------- ------- -------
Dividends to common shareholders from net
investment income ................................... (0.37) (0.74) (0.06)
------- ------- -------
Capital charges with respect to issuance of:
Common shares ......................................... -- -- (0.03)
Preferred shares ...................................... -- -- (0.13)
------- ------- -------
Total capital changes .................................... -- 0.00(5) (0.16)
------- ------- -------
Net asset value, end of period(4) ........................ $ 15.37 $ 15.11 $ 13.58
======= ======= =======
Market price, end of period(4) ........................... $ 14.97 $ 13.46 $ 13.15
======= ======= =======
TOTAL INVESTMENT RETURN(6) ............................... 14.12% 7.96% (11.94)%
======= ======= =======
RATIOS TO AVERAGE NET ASSETS
OF COMMON SHAREHOLDERS:(7)
Expenses after fees paid indirectly ...................... 1.13%(8) 1.13% 1.15%(8)
Expenses before fees paid indirectly ..................... 1.15%(8) 1.17% 1.15%(8)
Net investment income before preferred share dividends ... 6.98%(8) 7.03% 3.73%(8)
Preferred share dividends ................................ 0.60%(8) 0.80% 0.26%(8)
Net investment income available to common shareholders ... 6.38%(8) 6.23% 3.47%(8)
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) .......... $54,698 $52,265 $47,959
Portfolio turnover ....................................... 5% 41% 1%
Net assets of common shareholders, end of period (000) ... $55,835 $54,881 $49,353
Preferred shares outstanding (000) ....................... $31,400 $31,400 $31,400
Asset coverage per preferred share, end of period ........ $69,457 $68,702 $64,311
----------
(1) Commencement of investment operations. This information includes the
initial investment by BlackRock Funding, Inc. Net asset value immediately
after the closing of the public offering was $14.30.
(2) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(3) Calculated using the average shares outstanding method.
(4) Net asset value and market price are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
(5) Less than $0.005.
(6) Total investment return is calculated assuming a purchase of a common share
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(7) 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
the common shareholders.
(8) Annualized.
The information above represents the unaudited operating performance for a
common share outstanding, total investment returns, ratios to average net assets
and other supplemental data for each period indicated. This information has been
determined based upon financial information provided in the financial statements
and market price data for the Trust's common shares.
See Notes to Financial Statements.
62
FINANCIAL HIGHLIGHTS
--------------------------------------------------
BLACKROCK PENNSYLVANIA STRATEGIC MUNICIPAL TRUST
--------------------------------------------------
SIX MONTHS FOR THE PERIOD
ENDED YEAR ENDED DECEMBER 31, AUGUST 25, 1999(1)
JUNE 30, 2003 -------------------------------------- THROUGH
(UNAUDITED) 2002 2001(2) 2000(2) DECEMBER 31, 1999(2)
----------- --------- --------- --------- --------------------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period(3) ........... $ 15.61 $ 14.65 $ 14.62 $ 13.40 $ 14.33
------- ------- ------- ------- -------
Investment operations:
Net investment income .......................... 0.57 1.17 1.17 1.18 0.27
Net realized and unrealized gain (loss) ........ 0.56 0.73 (0.08) 1.29 (0.66)
Dividends to preferred shareholders:
From net investment income ................... (0.04) (0.11) (0.24) (0.33) (0.06)
In excess of net investment income ........... -- -- -- (0.03) --
------- ------- ------- ------- -------
Net increase (decrease) from investment
operations ..................................... 1.09 1.79 0.85 2.11 (0.45)
------- ------- ------- ------- -------
Dividends to common shareholders:
From net investment income ..................... (0.42) (0.83) (0.82) (0.82) (0.21)
In excess of net investment income ............. -- -- -- (0.06) (0.02)
------- ------- ------- ------- -------
Total dividends ................................... (0.42) (0.83) (0.82) (0.88) (0.23)
------- ------- ------- ------- -------
Capital charges with respect to issuance of:
Common shares .................................. -- -- -- -- (0.03)
Preferred shares ............................... -- -- -- (0.01) (0.22)
------- ------- ------- ------- -------
Total capital charges ............................. -- -- -- (0.01) (0.25)
------- ------- ------- ------- -------
Net asset value, end of period(3) ................. $ 16.28 $ 15.61 $ 14.65 $ 14.62 $ 13.40
======= ======= ======= ======= =======
Market price, end of period(3) .................... $ 15.30 $ 14.33 $ 14.03 $ 13.13 $ 13.38
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN(4) ........................ 9.86% 8.19% 13.12% 5.08% (9.43)%
======= ======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:(5)
Expenses after expense offsets .................... 1.13%(6) 1.34% 1.11% 1.22% 1.20%(6)
Expenses before expense offsets ................... 1.56%(6) 1.75% 1.55% 1.63% 1.61%(6)
Net investment income before preferred
share dividends ................................ 7.31%(6) 7.69% 7.86% 8.49% 5.63%(6)
Preferred share dividends ......................... 0.52%(6) 0.71% 1.63% 2.60% 1.17%(6)
Net investment income available to common
shareholders ................................... 6.79%(6) 6.98% 6.23% 5.89% 4.46%(6)
SUPPLEMENTAL DATA:
Average net assets of common
shareholders (000) ............................. $31,909 $30,545 $30,122 $27,920 $26,882
Portfolio turnover ................................ 0% 7% 16% 28% 1%
Net assets of common shareholders,
end of period (000) ............................ $32,815 $31,454 $29,531 $29,469 $26,995
Preferred shares outstanding (000) ................ $17,500 $17,500 $17,500 $17,500 $17,500
Asset coverage per preferred share,
end of period .................................. $71,882 $69,939 $67,194 $67,112 $63,571
----------
(1) Commencement of investment operations. This information includes the
initial investment by BlackRock Financial Management, Inc. Net asset value
immediately after the closing of the public offering was $14.30.
(2) Amounts have been restated to conform to the presentation under the
provisions of EITF D-98.
(3) Net asset value and market price are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
(4) Total investment return is calculated assuming a purchase of a common share
at the current market price on the first day and a sale at the current
market price on the last day of each period reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment returns do not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(5) 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
the common shareholders.
(6) Annualized.
The information above represents the unaudited operating performance for a
common share outstanding, total investment returns, ratios to average net assets
and other supplemental data for each period indicated. This information has been
determined based upon financial information provided in the financial statements
and market price data for the Trust's common shares.
63
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
NOTE 1. ORGANIZATION & ACCOUNTING POLICIES
The BlackRock Insured Municipal 2008 Term Trust Inc. ("Municipal Insured 2008"),
The BlackRock Insured Municipal Term Trust Inc. ("Insured Municipal"), The
BlackRock Municipal Target Term Trust Inc. ("Municipal Target"), The BlackRock
California Insured Municipal 2008 Term Trust Inc. ("California Insured 2008")
and The BlackRock New York Insured Municipal 2008 Term Trust Inc. ("New York
Insured 2008") were organized as Maryland corporations. BlackRock Municipal 2018
Term Trust ("Municipal 2018"), The BlackRock Strategic Municipal Trust
("Municipal Strategic"), BlackRock California Municipal 2018 Term Trust
("California 2018"), BlackRock New York Municipal 2018 Term Trust ("New York
2018") and The BlackRock Pennsylvania Strategic Municipal Trust ("Pennsylvania
Strategic") were organized as Delaware statutory trusts. The BlackRock Florida
Insured Municipal 2008 Term Trust ("Florida Insured 2008") was organized as a
Massachusetts business trust. Municipal Insured 2008, Insured Municipal,
Municipal 2018, Municipal Target and Municipal Strategic are registered as
diversified closed-end management investment companies under the Investment
Company Act of 1940, as amended. California Insured 2008, California 2018,
Florida Insured 2008, New York Insured 2008, New York 2018 and Pennsylvania
Strategic are registered as non-diversified closed-end management investment
companies under the Investment Company Act of 1940, as amended. Municipal
Insured 2008, California Insured 2008, Florida Insured 2008 and New York Insured
2008 are herein referred to as the 2008 Trusts. Municipal 2018, California 2018
and New York 2018 are herein referred to as the 2018 Trusts. Municipal Strategic
and Pennsylvania Strategic are herein referred to as the Strategic Trusts.
The following is a summary of significant accounting policies followed by the
Trusts.
SECURITIES VALUATION: Municipal securities (including commitments to purchase
such securities on a "when-issued" basis) are valued on the basis of prices
provided by dealers or pricing services selected under the supervision of each
Trust's Board of Directors/Trustees (the "Board"). In determining the value of a
particular security, pricing services may use certain information with respect
to transactions in such securities, quotations from bond dealers, market
transactions in comparable securities and various relationships between
securities. Short-term investments may be valued at amortized cost. Any
securities or other assets for which such current market quotations are not
readily available are valued at fair value as determined in good faith under
procedures established by, and under the general supervision and responsibility
of, each Trust's Board.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on trade date. Realized and unrealized gains and losses are calculated
on the identified cost basis. Each Trust also records interest income on an
accrual basis and amortizes premium and accretes discount to interest income on
securities purchased using the interest method.
FINANCIAL FUTURES CONTRACTS: A futures contract is an agreement between two
parties to buy and sell a financial instrument for a set price on a future date.
Initial margin deposits are made upon entering into futures contracts and can be
either cash or securities. During the period the futures contract is open,
changes in the value of the contract are recognized as unrealized gains or
losses by "marking-to-market" on a daily basis to reflect the market value of
the contract at the end of each day's trading. Variation margin payments are
made or received, depending upon whether unrealized gains or losses are
incurred. When the contract is closed, a Trust records a realized gain or loss
equal to the difference between the proceeds from (or cost of) the closing
transaction and the Trust's basis in the contract. Financial futures contracts,
when used by the Trusts, help in maintaining a targeted duration. Futures
contracts can be sold to effectively shorten an otherwise longer duration
portfolio. In the same sense, futures contracts can be purchased to lengthen a
portfolio that is shorter than its duration target. Thus, by buying or selling
futures contracts, the Trusts may attempt to manage the duration of positions so
that changes in interest rates do not change the duration of the portfolio
unexpectedly.
SEGREGATION: In cases in which the Investment Company Act of 1940, as amended,
and the interpretive positions of the Securities and Exchange Commission ("SEC")
require that each Trust segregate assets in connection with certain investments
(e.g., when issued securities, reverse repurchase agreements or futures
contracts), each Trust will, consistent with certain interpretive letters issued
by the SEC, designate on its books and records cash or other liquid debt
securities having a market value at least equal to the amount that would
otherwise be required to be physically segregated.
FEDERAL INCOME TAXES: It is each Trust's intention to continue to be treated as
a regulated investment company under the Internal Revenue Code and to distribute
sufficient net income to shareholders. For this reason and because substantially
all of the gross income of each Trust consists of tax-exempt interest, no
Federal income tax provisions are required. DIVIDENDS AND DISTRIBUTIONS: Each
Trust declares and pays dividends and distributions to common shareholders
monthly from net investment income, net realized short-term capital gains and
other sources, if necessary. Net long-term capital gains, if any, in excess of
loss carryforwards may be distributed annually. Dividends and distributions are
recorded on the ex-dividend date. Dividends and distributions to preferred
shareholders are accrued and determined as described in Note 4.
ESTIMATES: The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from these
estimates.
DEFERRED COMPENSATION AND BLACKROCK CLOSED-END SHARE EQUIVALENT INVESTMENT PLAN:
Under the revised deferred compensation plan approved by each Trust's Board,
non-interested Directors/Trustees may elect to defer receipt of all or a portion
of their annual compensation. As of January 1, 2003, the Board elected to
require its non-interested members to defer a portion of their annual complex
compensation pursuant to the plan. Deferred amounts earn an approximate return
as though equivalent dollar amounts had been invested in common shares of other
BlackRock closed-end funds selected by the Directors/Trustees.
The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of the Trust. Each
Trust may, however, elect to invest in common shares of those Trusts selected by
the Directors/Trustees in order to match its deferred compensation obligations.
64
RECLASSIFICATION OF CAPITAL ACCOUNTS: In order to present undistributed
(distribution in excess of) net investment income ("UNII") and accumulated net
realized gain ("Accumulated Gain") more closely to its tax character the
following accounts, for each of the Strategic Trusts, were increased
(decreased):
TRUST UNII ACCUMULATED GAIN
----- -------- ------------------
Municipal Strategic $(1,420) $1,420
Pennsylvania Strategic (6) 6
NOTE 2. AGREEMENTS
Each Trust has an Investment Management Agreement with BlackRock Advisors, Inc.
(the "Advisor"), a wholly owned subsidiary of BlackRock, Inc. BlackRock
Financial Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves
as sub-advisor to the 2018 Trusts. BlackRock, Inc. is an indirect majority owned
subsidiary of The PNCFinancial Services Group, Inc. The investment management
agreement on the 2018 Trusts and Strategic Trusts covers both investment
advisory and administration services. Each 2008 Trust has an Administration
Agreement with Princeton Administrators, L.P. ("Princeton"), an indirect wholly
owned affiliate of Merrill Lynch &Co., Inc. Insured Municipal has an
Administration Agreement with UBS Global Asset Management (US) Inc. ("UBSGAM")
(formerly Brinson Advisors, Inc.), an indirect wholly owned asset management
subsidiary of UBS AG. Municipal Target has an Administration Agreement with
Prudential Investments LLC ("PI"), an indirect wholly owned subsidiary of
Prudential Financial, Inc.
Each Trust's investment advisory fee paid to the Advisor is computed weekly and
payable monthly based on an annual rate, 0.35% for the 2008 Trusts, Insured
Municipal and Municipal Target, 0.40% for the 2018 Trusts and 0.60% for the
Strategic Trusts, of the Trust's average weekly managed assets. "Managed assets"
means the total assets of the Trust (including any assets attributable to any
preferred shares that may be outstanding) minus the sum of accrued liabilities
(other than debt representing financial leverage). The Advisor has voluntarily
agreed to waive a portion of the investment advisory fee or other expenses on
the Strategic Trusts as a percentage of managed assets as follows: 0.25% for the
first five years of each of the Trust's operations, 0.20% in year six, 0.15% in
year seven, 0.10% in year eight and 0.05% in year nine.
The administration fee paid to each Trust's respective administrator, other
than the 2018 Trusts and Strategic Trusts, is computed weekly and payable
monthly based on an annual rate, 0.10% to UBSGAM and Princeton and 0.07% to PI,
of the Trust's average weekly managed assets.
On May 22, 2003, the Boards of the 2008 Trusts, Insured Municipal and
Municipal Target approved the change of each Trust's current administrator to
the Advisor. The new administration agreements become effective September 1,
2003, except for Insured Municipal, which becomes effective August 15, 2003.
Each Trust's fee structure, as described above, will remain unchanged under the
new administration agreements.
Pursuant to the agreements, the Advisor provides continuous supervision of
the investment portfolio and pays the compensation of officers of each Trust who
are affiliated persons of the Advisor. The Advisor pays occupancy and certain
clerical and accounting costs for the 2018 Trusts and the Strategic Trusts. Each
Trust's administrator pays occupancy and certain clerical and accounting costs
of their respective Trust(s). Each Trust bears all other costs and expenses,
which include reimbursements to the Advisor for certain operational support
services provided to each Trust.
Pursuant to the terms of the custody agreement, each Trust received earning
credits from its custodian for positive cash balances maintained, which are used
to offset custody fees. For the six months ended June 30, 2003, the following
earning credits were used to offset custody fees:
TRUST EARNING CREDITS TRUST EARNING CREDITS
-------- ----------------- -------- --------------------------
Municipal Insured 2008 $ 5,255 California 2018 $4,997
Insured Municipal 1,452 Florida Insured 2008 7,808
Municipal 2018 4,048 New York Insured 2008 7,085
Municipal Target 3,731 New York 2018 4,493
Municipal Strategic 3,690 Pennsylvania Strategic 6,125
California Insured 2008 11,222
NOTE 3. PORTFOLIO
SECURITIESPurchases and sales of investment securities, other than short-term
investments, for the six months ended June 30, 2003, were as follows:
TRUST PURCHASES SALES TRUST PURCHASES SALES
-------- --------------- ----------- ------- ----------- -------
Municipal Insured 2008 $101,980,595 $75,290,000 California 2018 $10,252,212 $ 9,026,655
Insured Municipal 33,077,816 28,854,072 Florida Insured 2008 12,331,982 12,298,801
Municipal 2018 37,455,200 39,009,086 New York Insured 2008 13,266,691 16,726,573
Municipal Target 28,875,764 31,726,765 New York 2018 4,183,350 4,084,762
Municipal Strategic -- 1,039,040 Pennsylvania Strategic -- 2,460,000
California Insured 2008 23,669,102 25,999,800
65
At June 30, 2003, the total cost of securities for Federal income tax
purposes and the aggregate gross unrealized appreciation and depreciation for
securities held by each Trust were as follows:
TRUST COST APPRECIATION DEPRECIATION NET
------ ------------- -------------- -------------- -----------
Municipal Insured 2008 $696,161,283 $62,812,183 $ 94,228 $62,717,955
Insured Municipal 430,870,825 39,706,282 87,324 39,618,958
Municipal 2018 362,386,931 16,267,601 6,474,306 9,793,295
Municipal Target 748,432,889 54,046,102 -- 54,046,102
Municipal Strategic 162,940,228 17,514,650 6,460,292 11,054,358
California Insured 2008 262,906,033 21,436,207 25,507 21,410,700
California 2018 150,204,040 6,035,017 3,360,286 2,674,731
Florida Insured 2008 211,896,162 16,032,400 -- 16,032,400
New York Insured 2008 274,211,086 27,053,269 101 27,053,168
New York 2018 80,803,824 5,069,618 628,552 4,441,066
Pennsylvania Strategic 43,343,957 4,325,962 78,819 4,247,143
For Federal income tax purposes, the following Trusts had capital loss
carryforwards at June 30, 2003. These amounts may be used to offset future
realized capital gains, if any:
CAPITAL LOSS CAPITAL LOSS
TRUST CARRYFORWARD AMOUNT EXPIRES TRUST CARRYFORWARD AMOUNT EXPIRES
----- -------------------- ------- ----- ------------------- -------
Municipal Strategic $ 760,288 06/10 Pennsylvania Strategic $ 408,700 06/10
1,802,842 06/09 89,327 06/09
---------
78,019 06/08 $ 498,027
---------- =========
$2,641,149
==========
Accordingly, no capital gain distributions are expected to be paid to
shareholders of a Trust until that Trust has net realized capital gains in
excess of its capital loss carryforward amounts. Each of the Strategic Trusts
has a tax year end of June 30th.
Details of open financial futures contracts at June 30, 2003, were as
follows:
NUMBER OF EXPIRATION VALUE AT VALUE AT UNREALIZED
TRUST CONTRACTS TYPE DATE TRADE DATE JUNE 30, 2003 DEPRECIATION
----- --------- ----------------- ---------- ---------- ------------- ------------
LONG POSITIONS:
Insured Municipal 4 5 Yr. U.S. T-Note Sep. '03 $464,388 $460,500 $(3,888)
New York Insured 2008 4 5 Yr. U.S. T-Note Sep. '03 464,388 460,500 (3,888)
NOTE 4. CAPITAL
There are 200 million of $0.01 par value common shares authorized for each of
the 2008 Trusts, Insured Municipal and Municipal Target. There are an unlimited
number of $0.001 par value common shares authorized for each of the 2018 Trusts
and Strategic Trusts. Each Trust may classify or reclassify any unissued common
shares into one or more series of preferred shares. At June 30, 2003, the common
shares outstanding and the shares owned by affiliates of the Advisor of each
Trust were as follows:
COMMON
SHARES COMMON
TRUST OUTSTANDING SHARES OWNED
--------- --------------------- ------------------------
Municipal Insured 2008 27,207,093 --
Insured Municipal 25,885,639 --
Municipal 2018 15,908,028 8,028
Municipal Target 45,410,639 --
Municipal Strategic 7,242,261 --
California Insured 2008 10,407,093 --
California 2018 6,433,028 8,028
Florida Insured 2008 8,707,093 --
New York Insured 2008 11,257,093 --
New York 2018 3,633,028 8,028
Pennsylvania Strategic 2,015,492 --
As of June 30, 2003, each Trust had the following series of preferred shares
outstanding as listed in the table below. The preferred shares have a
liquidation value of $25,000 per share plus any accumulated unpaid dividends.
66
TRUST AND SERIES SHARES TRUST AND SERIES SHARES
------------------------ ---------- -------------------------- ----------
Municipal Insured 2008 Municipal Strategic--W7 2,480
T7 4,660 California Insured 2008
R7 2,060 W7 2,622
T28 2,060 W28 1,560
R28 2,060 California 2018--M7 2,221
Insured Municipal
M7 4,216 Florida Insured 2008--R7 3,366
M28 2,600 New York Insured 2008
Municipal 2018 F7 2,672
F28 1,710
W7 2,752 New York 2018--T7 1,256
R7 2,752 Pennsylvania Strategic--W7 700
Municipal Target
W7 5,964
F7 3,000
W28 3,000
Dividends on seven-day preferred shares are cumulative at a rate which is
reset every seven days based on the results of an auction. Dividends on 28 day
preferred shares are cumulative at a rate which is reset every 28 days based on
the results of an auction. The dividend ranges on the preferred shares for each
of the Trusts for the six months ended June 30, 2003, were as follows:
TRUST LOW HIGH TRUST LOW HIGH
--------- ---------------- ---------------- --------- ---------------- ----------------
Municipal Insured 2008 0.70% 1.50% California 2018 0.60% 1.09%
Insured Municipal 0.60 1.29 Florida Insured 2008 0.80 1.55
Municipal 2018 0.85 1.30 New York Insured 2008 0.72 1.20
Municipal Target 0.70 1.44 New York 2018 0.70 1.25
Municipal Strategic 0.70 1.55 Pennsylvania Strategic 0.65 1.20
California Insured 2008 0.65 1.20
A Trust may not declare dividends or make other distributions on common
shares or purchase any such shares if, at the time of the declaration,
distribution or purchase, asset coverage with respect to the outstanding
preferred shares would be less than 200%.
The preferred shares are redeemable at the option of each Trust, in whole or
in part, on any dividend payment date at $25,000 per share plus any accumulated
or unpaid dividends whether or not declared. The preferred shares are also
subject to mandatory redemption at $25,000 per share plus any accumulated or
unpaid dividends, whether or not declared, if certain requirements relating to
the composition of the assets and liabilities of a Trust, as set forth in each
Trust's Declaration of Trust/Articles Supplementary are not satisfied.
The holders of preferred shares have voting rights equal to the holders of
common shares (one vote per share) and will vote together with holders of common
shares as a single class. However, holders of preferred shares, voting as a
separate class, are also entitled to elect two Directors/Trustees for each
Trust. In addition, the Investment Company Act of 1940, as amended, requires
that along with approval by shareholders that might otherwise be required, the
approval of the holders of a majority of any outstanding preferred shares,
voting separately as a class would be required to (a) adopt any plan of
reorganization that would adversely affect the preferred shares, (b) change a
Trust's sub- classification as a closed-end investment company or change its
fundamental investment restrictions and (c) change its business so as to cease
to be an investment company.
NOTE 5. DIVIDENDS
On May 22, 2003, the Boards of Municipal Strategic and Pennsylvania Strategic
voted to change each Trust's monthly distribution per common share, effective
with the distribution declared on July 1, 2003, to $0.079585 and $0.073965,
respectively. Subsequent to June 30, 2003, the Board of each Trust declared
dividends from undistributed earnings per common share payable August 1, 2003,
to shareholders of record on July 15, 2003. The per share common dividends
declared were:
COMMON DIVIDEND COMMON DIVIDEND
TRUST PER SHARE TRUST PER SHARE
--------- -------------------------------- --------- ------------------------
Municipal Insured 2008 $0.066250 California 2018 $0.061250
Insured Municipal 0.047917 Florida Insured 2008 0.062500
Municipal 2018 0.065000 New York Insured 2008 0.062500
Municipal Target 0.047917 New York 2018 0.061250
Municipal Strategic 0.079585 Pennsylvania Strategic 0.073965
California Insured 2008 0.064375
67
The dividends declared on preferred shares for the period July 1, 2003 to
July 31, 2003, for each of the Trusts were as follows:
DIVIDENDS DIVIDENDS
TRUST AND SERIES DECLARED TRUST AND SERIES DECLARED
--------------------------- ---------------- --------------------------- -----------------
Municipal Insured 2008 California Insured 2008
T7 $85,418 W7 $47,904
R7 22,186 W28 21,544
T28 79,784 California 2018--M7 30,694
R28 27,645 Florida Insured 2008--R7 43,017
Insured Municipal New York Insured 2008
M7 66,517 F7 31,957
M28 49,322 F28 24,539
Municipal 2018 New York 2018--T7 23,801
W7 45,298 Pennsylvania Strategic--W7 11,606
R7 37,400
Municipal Target
W7 106,577
F7 46,740
W28 105,870
Municipal Strategic--W7 43,797
68
DIVIDEND REINVESTMENT PLANS
--------------------------------------------------------------------------------
Pursuant to each Trust's Dividend Reinvestment Plan (the "Plan"), common
shareholders of the 2008 Trusts, Insured Municipal and Municipal Target may
elect to enroll, while the common shareholders of the 2018 Trusts and Strategic
Trusts are automatically enrolled, to have all distributions of dividends and
capital gains reinvested by EquiServe Trust Company, N.A. (the "Plan Agent") in
the respective Trust's shares pursuant to the Plan. Shareholders who elect not
to participate in the Plan will receive all distributions in cash paid by check
and 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 Plan Agent, which
serves as agent for the shareholders in administering the Plan.
After a 2008 Trust, Insured Municipal, 2018 Trust and/or Municipal Target
declares a dividend or determines to make a capital gain distribution, the Plan
Agent will acquire shares for the participants' account, by the purchase of
outstanding shares on the open market, on the Trust's primary exchange or
elsewhere ("open market purchases"). These Trusts will not issue any new shares
under the Plan.
After a Strategic Trust declares a dividend or determines to make a capital
gain distribution, the Plan Agent will acquire shares for the participants'
account, depending upon the circumstances described below, either (i) through
receipt of unissued but authorized shares from the Trust ("newly issued shares")
or (ii) by open market purchases. If, on the dividend payment date, the NAV is
equal to or less than the market price per share plus estimated brokerage
commissions (such condition being referred to herein as "market premium"), the
Plan Agent will invest the dividend amount in newly issued shares on behalf of
the participants. The number of newly issued shares to be credited to each
participant's account will be determined by dividing the dollar amount of the
dividend by the NAV on the date the shares are issued. However, if the NAV is
less than 95% of the market price on the payment date, the dollar amount of the
dividend will be divided by 95% of the market price on the payment date. If, on
the dividend payment date, the NAV is greater than the market value per share
plus estimated brokerage commissions (such condition being referred to herein as
"market discount"), the Plan Agent will invest the dividend amount in shares
acquired on behalf of the participants in open market purchases.
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 each 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.
Each Trust reserves the right to amend or terminate the Plan. There is no
direct service charge to participants in the Plan, however, each Trust reserves
the right to amend the Plan to include a service charge payable by the
participants. All correspondence concerning the Plan should be directed to the
Plan Agent at 150 Royall Street, Canton, MA 02021, or by calling (800) 699-1BFM.
69
ADDITIONAL INFORMATION
--------------------------------------------------------------------------------
We are required by the Internal Revenue Code to advise you within 60 days of
a Trust's tax year-end as to the Federal tax status of dividends paid by the
Trusts during such tax year. Accordingly, during the tax year-ended June 30,
2003, all dividends paid by the Strategic Trusts (the only Trusts with June 30th
tax year-ends) were federally tax-exempt interest dividends.
The Joint Annual Meeting of Shareholders was held on May 22, 2003, to elect a
certain number of Directors/Trustees for each of the following Trusts to
three-year terms, unless otherwise indicated, expiring in 2006:
MUNICIPAL INSURED 2008
------------------------
Elected the Class I Directors and in accordance with Maryland law elected Robert
S. Kapito and Walter F. Mondale, for the remainder of their term, as follows:
DIRECTOR VOTES FOR VOTES WITHHELD
-------- ---------- --------------
Richard E. Cavanagh 10,084 37
Robert S. Kapito1 25,967,374 265,150
James Clayburn La Force, Jr. 25,947,703 284,821
Walter F. Mondale2 25,859,589 372,935
INSURED MUNICIPAL
-------------------
Elected the Class II Directors and in accordance with Maryland law elected
Robert S. Kapito, for the remainder of his term, as follows:
DIRECTOR VOTES FOR VOTES WITHHELD
-------- ---------- --------------
Frank J. Fabozzi 6,025 44
Robert S. Kapito1 24,766,028 187,446
Walter F. Mondale 24,532,259 421,215
Ralph L. Schlosstein 24,778,267 175,207
MUNICIPAL 2018
----------------
Elected the Class II Trustees as follows:
TRUSTEE VOTES FOR VOTES WITHHELD
------- ---------- --------------
Frank J. Fabozzi 5,393 --
Walter F. Mondale 15,493,007 336,401
Ralph L. Schlosstein 15,572,337 257,071
MUNICIPAL TARGET TERM
-----------------------
Elected the Class II Directors and in accordance with Maryland law elected
Robert S. Kapito, for the remainder of his term, as follows:
DIRECTOR VOTES FOR VOTES WITHHELD
-------- ---------- --------------
Frank J. Fabozzi 10,528 50
Robert S. Kapito1 42,241,469 287,902
Walter F. Mondale 41,985,359 544,012
Ralph L. Schlosstein 42,234,950 294,421
MUNICIPAL STRATEGIC
---------------------
Elected the Class III Trustees as follows:
TRUSTEE VOTES FOR VOTES WITHHELD
------- --------- --------------
Andrew F. Brimmer 7,070,337 104,432
Kent Dixon 7,082,132 92,637
Robert S. Kapito 7,082,132 92,637
CALIFORNIA INSURED 2008
-------------------------
Elected the Class I Directors and in accordance with Maryland law elected
Robert S. Kapito and Walter F. Mondale, for the remainder of their term, as
follows:
DIRECTOR VOTES FOR VOTES WITHHELD
-------- ---------- --------------
Richard E. Cavanagh 4,022 2
Robert S. Kapito1 9,976,969 66,329
James Clayburn La Force, Jr. 9,978,421 64,877
Walter F. Mondale2 9,935,763 107,535
70
CALIFORNIA 2018
-----------------
Elected the Class II Trustees as follows:
TRUSTEE VOTES FOR VOTES WITHHELD
------- --------- --------------
Frank J. Fabozzi 2,170 --
Walter F. Mondale 6,358,823 54,493
Ralph L. Schlosstein 6,385,011 28,305
FLORIDA INSURED 2008
----------------------
Elected the Class I Trustees as follows:
TRUSTEE VOTES FOR VOTES WITHHELD
------- --------- --------------
Richard E. Cavanagh 3,032 12
James Clayburn La Force, Jr. 8,407,062 68,617
NEW YORK INSURED 2008
-----------------------
Elected the Class I Directors and in accordance with Maryland law elected
Robert S. Kapito and Walter F. Mondale, for the remainder of their term, as
follows:
DIRECTOR VOTES FOR VOTES WITHHELD
-------- ---------- --------------
Richard E. Cavanagh 4,323 2
Robert S. Kapito1 10,638,552 49,146
James Clayburn La Force, Jr. 10,631,384 56,314
Walter F. Mondale2 10,621,224 66,474
NEW YORK 2018
---------------
Elected the Class II Trustees as follows:
TRUSTEE VOTES FOR VOTES WITHHELD
------- --------- --------------
Frank J. Fabozzi 1,079 --
Walter F. Mondale 3,574,820 57,209
Ralph L. Schlosstein 3,587,482 44,547
PENNSYLVANIA STRATEGIC
------------------------
Elected the Class III Trustees as follows:
TRUSTEE VOTES FOR VOTES WITHHELD
------- --------- --------------
Andrew F. Brimmer 1,918,787 33,554
Kent Dixon 1,938,734 13,607
Robert S. Kapito 1,939,034 13,307
----------
(1) Robert S. Kapito's term will expire in 2004.
(2) Walter F. Mondale's term will expire in 2005.
71
BLACKROCK CLOSED-END FUNDS
DIRECTORS/TRUSTEES
Ralph L. Schlosstein, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
Robert S. Kapito
James Clayburn La Force, Jr.
Walter F. Mondale
OFFICERS
Robert S. Kapito, PRESIDENT
Henry Gabbay, TREASURER
Anne Ackerley, VICE PRESIDENT
Kevin M. Klingert, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX
James Kong, ASSISTANT TREASURER
Vincent B. Tritto, SECRETARY
Brian P. Kindelan, ASSISTANT SECRETARY
INVESTMENT ADVISOR
BlackRock Advisors, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM
SUB-ADVISOR(1)
BlackRock Financial Management, Inc.
40 East 52nd Street
New York, NY 10022
CUSTODIAN
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
TRANSFER AGENT
EquiServe Trust Company, N.A.
150 Royall Street
Canton, MA 02021
(800) 699-1BFM
AUCTION AGENT(1)
Bank of New York
100 Church Street, 8th Floor
New York, NY 10286
AUCTION AGENT(2)
Deutsche Bank Trust Company Americas
60 Wall Street, 27th Floor
New York, NY 10005
INDEPENDENT ACCOUNTANTS
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036
LEGAL COUNSEL - INDEPENDENT DIRECTORS/TRUSTEES
Debevoise & Plimpton
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 Trust shares. Statements and other
information contained in this report are as dated and are subject to change.
BlackRockAdvisors, Inc.(3)
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM
Municipal 2018
Strategic Municipal
California Municipal 2018
New York Municipal 2018
Pennsylvania Strategic
Municipal
Princeton Administrators, L.P.(3)
P.O. Box 9095
Princeton, NJ 08543-9095
(800) 227-7BFM
Insured Municipal 2008
California Insured
Municipal 2008
Florida Insured
Municipal 2008
New York Insured
Municipal 2008
Prudential Investments LLC(3)
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 227-7BFM
Municipal Target
UBS Global Asset Management (US) Inc.(3)
51 West 52nd Street
21st Floor
New York, NY 10019
(800) 227-7BFM
Insured Municipal
----------
(1) For the 2018 Trusts only.
(2) For the Trusts, except the 2018 Trusts.
(3) Provides administrative services for the Trust(s) listed directly below its
name. Effective September 1, 2003, BlackRock Advisors, Inc. will provide
the administrative services for all the Trusts.
The Trusts will mail only one copy of shareholder documents, including annual
and semi-annual reports and proxy statements, to shareholders with multiple
accounts at the same address. This practice is commonly called "householding"
and is intended to reduce expenses and eliminate duplicate mailings of
shareholder documents. Mailings of your shareholder documents may be householded
indefinitely unless you instruct us otherwise. If you do not want the mailing of
these documents to be combined with those for other members of your household,
please contact the Trusts at (800) 227-7BFM.
This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of Trust shares. Statements and other
information contained in this report are as dated and subject to change.
BLACKROCK
[LOGO]
ITEM 2. CODE OF ETHICS.
Not applicable for semi-annual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable for semi-annual reports.
ITEM 6. [RESERVED.]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable for semi-annual reports.
ITEM 8. [RESERVED.]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The Trust's principal executive officer and principal financial officer
have evaluated the Trust's disclosure controls and procedures within 90
days of this filing and have concluded that the Trust's disclosure
controls and procedures were effective, as of that date, in ensuring that
information required to be disclosed by the registrant in this Form N-CSR
was recorded, processed, summarized, and reported timely.
(b) The Trust's principal executive officer and principal financial officer
are aware of no changes in the Trust's internal control over financial
reporting that occurred during the Trust's most recent fiscal half-year
that has materially affected, or is reasonably likely to materially
affect, the Trust's internal control over financial reporting.
ITEM 10. EXHIBITS.
(a)(1) Code of Ethics - Not applicable for semi-annual reports.
(a)(2) Certifications of principal executive officer and principal financial
officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(b) Certification of principal executive officer and principal financial
officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) The BlackRock Strategic Municipal Trust
By: /s/ Henry Gabbay
---------------------------
Name: Henry Gabbay
Title: Treasurer
Date: 6/27/03
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
By: /s/ Robert S. Kapito
---------------------------
Name: Robert S. Kapito
Title: Principal Executive Officer
Date: 6/27/03
By: /s/ Henry Gabbay
---------------------------
Name: Henry Gabbay
Title: Principal Financial Officer
Date: 6/27/03