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: 811-21050
BlackRock New Jersey Municipal Bond Trust
--------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
100 Bellevue Parkway, Wilmington, DE 19809
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(Address of principal executive offices) (Zip code)
Robert S. Kapito, President
BlackRock New Jersey Municipal Bond 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: 8/31/03
Date of reporting period: 8/31/03
ITEM 1. REPORTS TO STOCKHOLDERS.
The Trust's annual report transmitted to shareholders pursuant to Rule
30e-1 under the Investment Company Act of 1940 is as follows:
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BlackRock
Closed-End Funds
Annual Report
AUGUST 31, 2003
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
BlackRock Insured Municipal Income Trust (BYM)
BlackRock Municipal Bond Trust (BBK)
BlackRock Municipal Income Trust II (BLE)
BlackRock California Insured Municipal Income Trust (BCK)
BlackRock California Municipal Bond Trust (BZA)
BlackRock California Municipal Income Trust II (BCL)
BlackRock Florida Insured Municipal Income Trust (BAF)
BlackRock Florida Municipal Bond Trust (BIE)
BlackRock Maryland Municipal Bond Trust (BZM)
BlackRock New Jersey Municipal Bond Trust (BLJ)
BlackRock New York Insured Municipal Income Trust (BSE)
BlackRock New York Municipal Bond Trust (BQH)
BlackRock New York Municipal Income Trust II (BFY)
BlackRock Virginia Municipal Bond Trust (BHV)
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NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
[BLACKROCK LOGO]
TABLE OF CONTENTS
Letter to Shareholders ..................................................... 1
Trust Summaries ............................................................ 2
Portfolios of Investments .................................................. 16
Financial Statements
Statements of Assets and Liabilities .................................... 37
Statements of Operations ................................................ 40
Statements of Changes in Net Assets ..................................... 43
Financial Highlights ....................................................... 48
Notes to Financial Statements .............................................. 53
Independent Auditors' Report ............................................... 59
Dividend Reinvestment Plans ................................................ 60
Trustees Information ....................................................... 61
Additional Information ..................................................... 63
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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.
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LETTER TO SHAREHOLDERS
September 30, 2003
Dear Shareholder:
We are pleased to report that during the 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'
audited 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' current yields, tax-equivalent
yields, closing market prices per share and net asset values ("NAV") per share
as of August 31, 2003.
------------------------------------------------------------------------------------------------------------------
TAX- CLOSING
CURRENT EQUIVALENT MARKET
TRUST (TICKER) YIELD(1) YIELD(1) PRICE NAV
------------------------------------------------------------------------------------------------------------------
BlackRock Insured Municipal Income Trust (BYM) 6.94% 10.68% $13.51 $13.64
------------------------------------------------------------------------------------------------------------------
BlackRock Municipal Bond Trust (BBK) 7.59 11.67 13.66 14.12
------------------------------------------------------------------------------------------------------------------
BlackRock Municipal Income Trust II (BLE) 7.67 11.80 13.11 13.28
------------------------------------------------------------------------------------------------------------------
BlackRock California Insured Municipal Income Trust (BCK) 6.92 10.65 13.01 13.09
------------------------------------------------------------------------------------------------------------------
BlackRock California Municipal Bond Trust (BZA) 7.27 11.18 13.15 13.71
------------------------------------------------------------------------------------------------------------------
BlackRock California Municipal Income Trust II (BCL) 7.49 11.52 13.01 12.76
------------------------------------------------------------------------------------------------------------------
BlackRock Florida Insured Municipal Income Trust (BAF) 6.82 10.49 13.20 13.74
------------------------------------------------------------------------------------------------------------------
BlackRock Florida Municipal Bond Trust (BIE) 6.89 10.60 13.55 14.52
------------------------------------------------------------------------------------------------------------------
BlackRock Maryland Municipal Bond Trust (BZM) 6.16 9.48 13.90 14.36
------------------------------------------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Trust (BLJ) 6.91 10.63 13.64 13.77
------------------------------------------------------------------------------------------------------------------
BlackRock New York Insured Municipal Income Trust (BSE) 6.78 10.43 13.28 13.45
------------------------------------------------------------------------------------------------------------------
BlackRock New York Municipal Bond Trust (BQH) 6.93 10.66 13.35 14.15
------------------------------------------------------------------------------------------------------------------
BlackRock New York Municipal Income Trust II (BFY) 7.20 11.08 13.12 13.36
------------------------------------------------------------------------------------------------------------------
BlackRock Virginia Municipal Bond Trust (BHV) 6.04 9.29 14.40 14.46
------------------------------------------------------------------------------------------------------------------
(1) Yields are based on closing 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
AUGUST 31, 2003
------------------------------------------
BLACKROCK INSURED MUNICIPAL INCOME TRUST
------------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BYM
--------------------------------------------------------------------------------
Initial Offering Date: October 31, 2002
--------------------------------------------------------------------------------
Closing Market Price as of 8/31/03: $13.51
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/03: $13.64
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 8/31/03 ($13.51):(1) 6.94%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $0.078125
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $0.937500
--------------------------------------------------------------------------------
Leverage as of 8/31/03:(3) 39%
--------------------------------------------------------------------------------
(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:
-------------------------------------------------
8/31/03 HIGH LOW
--------------------------------------------------------------------------------
Market Price $13.51 $15.05 $13.26
--------------------------------------------------------------------------------
NAV $13.64 $15.47 $13.32
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
-------------------------------------------------------
SECTOR AUGUST 31, 2003
-------------------------------------------------------
Transportation 33%
-------------------------------------------------------
Water & Sewer 19
-------------------------------------------------------
City, County & State 12
-------------------------------------------------------
Tobacco 10
-------------------------------------------------------
Power 9
-------------------------------------------------------
Tax Revenue 6
-------------------------------------------------------
Housing 3
-------------------------------------------------------
Lease Revenue 3
-------------------------------------------------------
Industrial & Pollution Control 2
-------------------------------------------------------
Hospitals 2
-------------------------------------------------------
Education 1
-------------------------------------------------------
CREDIT BREAKDOWN*
-------------------------------------------------------
CREDIT RATING AUGUST 31, 2003
-------------------------------------------------------
AAA/Aaa 83%
-------------------------------------------------------
A 7
-------------------------------------------------------
BBB/Baa 10
-------------------------------------------------------
----------
* Using the higher of Standard & Poor's ("S&P's"),
Moody's Investors Service ("Moody's") or Fitch
Ratings ("Fitch's") rating.
2
TRUST SUMMARIES
AUGUST 31, 2003
--------------------------------
BLACKROCK MUNICIPAL BOND TRUST
--------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BBK
--------------------------------------------------------------------------------
Initial Offering Date: April 30, 2002
--------------------------------------------------------------------------------
Closing Market Price as of 8/31/03: $13.66
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/03: $14.12
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 8/31/03 ($13.66):(1) 7.59%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $0.086375
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $1.036500
--------------------------------------------------------------------------------
Leverage as of 8/31/03:(3) 39%
--------------------------------------------------------------------------------
(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:
------------------------------------------------------------
8/31/03 8/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $13.66 $14.90 (8.32)% $14.98 $13.34
--------------------------------------------------------------------------------
NAV $14.12 $14.76 (4.34)% $15.49 $13.97
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
Industrial & Pollution Control 26% 27%
--------------------------------------------------------------------------------
Hospitals 20 18
--------------------------------------------------------------------------------
Housing 14 13
--------------------------------------------------------------------------------
Tobacco 9 12
--------------------------------------------------------------------------------
Transportation 9 7
--------------------------------------------------------------------------------
City, County & State 6 8
--------------------------------------------------------------------------------
Tax Revenue 5 6
--------------------------------------------------------------------------------
Power 3 3
--------------------------------------------------------------------------------
Education 2 2
--------------------------------------------------------------------------------
Water & Sewer 1 --
--------------------------------------------------------------------------------
Other 5 4
--------------------------------------------------------------------------------
CREDIT BREAKDOWN*
--------------------------------------------------------------------------------
CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 27% 24%
--------------------------------------------------------------------------------
AA/Aa 5 4
--------------------------------------------------------------------------------
A 23 39
--------------------------------------------------------------------------------
BBB/Baa 32 22
--------------------------------------------------------------------------------
BB/Ba -- 3
--------------------------------------------------------------------------------
B 4 1
--------------------------------------------------------------------------------
Not Rated 9 7
--------------------------------------------------------------------------------
----------
* Using the higher of S&P's, Moody's or Fitch's rating.
3
TRUST SUMMARIES
AUGUST 31, 2003
-------------------------------------
BLACKROCK MUNICIPAL INCOME TRUST II
-------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on American Stock Exchange: BLE
--------------------------------------------------------------------------------
Initial Offering Date: July 30, 2002
--------------------------------------------------------------------------------
Closing Market Price as of 8/31/03: $13.11
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/03: $13.28
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 8/31/03 ($13.11):(1) 7.67%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $0.08375
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $1.00500
--------------------------------------------------------------------------------
Leverage as of 8/31/03:(3) 40%
--------------------------------------------------------------------------------
(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:
-------------------------------------------------------
8/31/03 8/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $13.11 $15.00 (12.60)% $15.02 $12.95
--------------------------------------------------------------------------------
NAV $13.28 $14.40 (7.78)% $14.78 $13.12
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
Hospitals 21% 15%
--------------------------------------------------------------------------------
Industrial & Pollution Control 17 12
--------------------------------------------------------------------------------
City, County & State 12 15
--------------------------------------------------------------------------------
Transportation 12 9
--------------------------------------------------------------------------------
Housing 11 4
--------------------------------------------------------------------------------
Tobacco 9 17
--------------------------------------------------------------------------------
Water & Sewer 7 8
--------------------------------------------------------------------------------
Tax Revenue 7 8
--------------------------------------------------------------------------------
Power 2 2
--------------------------------------------------------------------------------
Education 2 10
--------------------------------------------------------------------------------
CREDIT BREAKDOWN*
--------------------------------------------------------------------------------
CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 28% 31%
--------------------------------------------------------------------------------
AA/Aa 7 11
--------------------------------------------------------------------------------
A 20 38
--------------------------------------------------------------------------------
BBB/Baa 27 11
--------------------------------------------------------------------------------
BB/Ba -- 4
--------------------------------------------------------------------------------
B 4 5
--------------------------------------------------------------------------------
CCC/Caa 2 --
--------------------------------------------------------------------------------
Not Rated 12 --
--------------------------------------------------------------------------------
----------
* Using the higher of S&P's, Moody's or Fitch's rating.
4
TRUST SUMMARIES
AUGUST 31, 2003
-----------------------------------------------------
BLACKROCK CALIFORNIA INSURED MUNICIPAL INCOME TRUST
-----------------------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on the New York Stock Exchange: BCK
--------------------------------------------------------------------------------
Initial Offering Date: October 31, 2002
--------------------------------------------------------------------------------
Closing Market Price as of 8/31/03: $13.01
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/03: $13.09
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 8/31/03 ($13.01):(1) 6.92%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $0.075
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $0.900
--------------------------------------------------------------------------------
Leverage as of 8/31/03:(3) 40%
--------------------------------------------------------------------------------
(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:
--------------------------------------------
8/31/03 HIGH LOW
--------------------------------------------------------------------------------
Market Price $13.01 $15.01 $12.80
--------------------------------------------------------------------------------
NAV $13.09 $15.24 $12.83
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
-------------------------------------------------------------
SECTOR AUGUST 31, 2003
-------------------------------------------------------------
Water & Sewer 30%
-------------------------------------------------------------
Education 23
-------------------------------------------------------------
Tobacco 10
-------------------------------------------------------------
Power 10
-------------------------------------------------------------
Lease Revenue 10
-------------------------------------------------------------
City, County & State 7
-------------------------------------------------------------
Tax Revenue 4
-------------------------------------------------------------
Transportation 4
-------------------------------------------------------------
Housing 2
-------------------------------------------------------------
CREDIT BREAKDOWN*
-------------------------------------------------------------
CREDIT RATING AUGUST 31, 2003
-------------------------------------------------------------
AAA/Aaa 84%
-------------------------------------------------------------
A 6
-------------------------------------------------------------
BBB/Baa 10
-------------------------------------------------------------
----------
* Using the higher of S&P's, Moody's or Fitch's rating.
5
TRUST SUMMARIES
AUGUST 31, 2003
-------------------------------------------
BLACKROCK CALIFORNIA MUNICIPAL BOND TRUST
-------------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BZA
--------------------------------------------------------------------------------
Initial Offering Date: April 30, 2002
--------------------------------------------------------------------------------
Closing Market Price as of 8/31/03: $13.15
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/03: $13.71
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 8/31/03 ($13.15):(1) 7.27%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $0.079656
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $0.955872
--------------------------------------------------------------------------------
Leverage as of 8/31/03:(3) 39%
--------------------------------------------------------------------------------
(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:
---------------------------------------------------------
8/31/03 8/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $13.15 $14.58 (9.81)% $14.96 $12.89
--------------------------------------------------------------------------------
NAV $13.71 $14.87 (7.80)% $15.46 $13.46
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
Education 24% 21%
--------------------------------------------------------------------------------
Hospitals 17 17
--------------------------------------------------------------------------------
Housing 15 14
--------------------------------------------------------------------------------
City, County & State 12 11
--------------------------------------------------------------------------------
Tobacco 11 9
--------------------------------------------------------------------------------
Power 5 2
--------------------------------------------------------------------------------
Transportation 5 9
--------------------------------------------------------------------------------
Water & Sewer 3 9
--------------------------------------------------------------------------------
Industrial & Pollution Control 2 2
--------------------------------------------------------------------------------
Lease Revenue 1 1
--------------------------------------------------------------------------------
Other 5 5
--------------------------------------------------------------------------------
CREDIT BREAKDOWN*
--------------------------------------------------------------------------------
CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 23% 34%
--------------------------------------------------------------------------------
A 31 41
--------------------------------------------------------------------------------
BBB/Baa 24 9
--------------------------------------------------------------------------------
BB/Ba -- 2
--------------------------------------------------------------------------------
B 2 --
--------------------------------------------------------------------------------
Not Rated 20 14
--------------------------------------------------------------------------------
----------
* Using the higher of S&P's, Moody's or Fitch's rating.
6
TRUST SUMMARIES
AUGUST 31, 2003
------------------------------------------------
BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST II
------------------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on American Stock Exchange: BCL
--------------------------------------------------------------------------------
Initial Offering Date: July 30, 2002
--------------------------------------------------------------------------------
Closing Market Price as of 8/31/03: $13.01
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/03: $12.76
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 8/31/03 ($13.01):(1) 7.49%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $0.08125
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $0.97500
--------------------------------------------------------------------------------
Leverage as of 8/31/03:(3) 41%
--------------------------------------------------------------------------------
(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:
------------------------------------------------------
8/31/03 8/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $13.01 $15.01 (13.32)% $15.01 $12.95
--------------------------------------------------------------------------------
NAV $12.76 $14.42 (11.51)% $14.82 $12.55
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
City, County & State 25% 21%
--------------------------------------------------------------------------------
Education 19 26
--------------------------------------------------------------------------------
Hospitals 13 12
--------------------------------------------------------------------------------
Tobacco 10 9
--------------------------------------------------------------------------------
Transportation 9 10
--------------------------------------------------------------------------------
Housing 9 --
--------------------------------------------------------------------------------
Lease Revenue 5 7
--------------------------------------------------------------------------------
Power 5 5
--------------------------------------------------------------------------------
Water & Sewer 4 --
--------------------------------------------------------------------------------
Industrial & Pollution Control 1 5
--------------------------------------------------------------------------------
Tax Revenue -- 5
--------------------------------------------------------------------------------
CREDIT BREAKDOWN*
--------------------------------------------------------------------------------
CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 47% 77%
--------------------------------------------------------------------------------
A 19 14
--------------------------------------------------------------------------------
BBB/Baa 13 --
--------------------------------------------------------------------------------
BB/Ba -- 2
--------------------------------------------------------------------------------
B 1 --
--------------------------------------------------------------------------------
Not Rated 20 7
--------------------------------------------------------------------------------
----------
* Using the higher of S&P's, Moody's or Fitch's rating.
7
TRUST SUMMARIES
AUGUST 31, 2003
--------------------------------------------------
BLACKROCK FLORIDA INSURED MUNICIPAL INCOME TRUST
--------------------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BAF
--------------------------------------------------------------------------------
Initial Offering Date: October 31, 2002
--------------------------------------------------------------------------------
Closing Market Price as of 8/31/03: $13.20
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/03: $13.74
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 8/31/03 ($13.20):(1) 6.82%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $0.075
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $0.900
--------------------------------------------------------------------------------
Leverage as of 8/31/03:(3) 39%
--------------------------------------------------------------------------------
(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:
----------------------------------------
8/31/03 HIGH LOW
--------------------------------------------------------------------------------
Market Price $13.20 $15.55 $13.09
--------------------------------------------------------------------------------
NAV $13.74 $15.38 $13.50
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
-------------------------------------------------------------
SECTOR AUGUST 31, 2003
-------------------------------------------------------------
City, County & State 25%
-------------------------------------------------------------
Tax Revenue 22
-------------------------------------------------------------
Education 16
-------------------------------------------------------------
Power 13
-------------------------------------------------------------
Hospital 8
-------------------------------------------------------------
Water & Sewer 6
-------------------------------------------------------------
Transportation 5
-------------------------------------------------------------
Tobacco 4
-------------------------------------------------------------
Housing 1
-------------------------------------------------------------
CREDIT BREAKDOWN*
-------------------------------------------------------------
CREDIT RATING AUGUST 31, 2003
-------------------------------------------------------------
AAA/Aaa 82%
-------------------------------------------------------------
AA/Aa 4
-------------------------------------------------------------
A 4
-------------------------------------------------------------
BBB/Baa 5
-------------------------------------------------------------
Not Rated 5
-------------------------------------------------------------
----------
* Using the higher of S&P's, Moody's or Fitch's rating.
8
TRUST SUMMARIES
AUGUST 31, 2003
----------------------------------------
BLACKROCK FLORIDA MUNICIPAL BOND TRUST
----------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BIE
--------------------------------------------------------------------------------
Initial Offering Date: April 30, 2002
--------------------------------------------------------------------------------
Closing Market Price as of 8/31/03: $13.55
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/03: $14.52
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 8/31/03 ($13.55):(1) 6.89%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $0.077808
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $0.933696
--------------------------------------------------------------------------------
Leverage as of 8/31/03:(3) 38%
--------------------------------------------------------------------------------
(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:
--------------------------------------------------------
8/31/03 8/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $13.55 $14.92 (9.18)% $15.40 $13.51
--------------------------------------------------------------------------------
NAV $14.52 $14.90 (2.55)% $15.92 $14.34
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
Tax Revenue 25% 14%
--------------------------------------------------------------------------------
Hospitals 15 24
--------------------------------------------------------------------------------
City, County & State 15 10
--------------------------------------------------------------------------------
Power 13 14
--------------------------------------------------------------------------------
Tobacco 6 --
--------------------------------------------------------------------------------
Lease Revenue 5 9
--------------------------------------------------------------------------------
Education 5 5
--------------------------------------------------------------------------------
Housing 5 --
--------------------------------------------------------------------------------
Transportation 3 4
--------------------------------------------------------------------------------
Water & Sewer 2 7
--------------------------------------------------------------------------------
Industrial & Pollution Control -- 5
--------------------------------------------------------------------------------
Other 6 8
--------------------------------------------------------------------------------
CREDIT BREAKDOWN*
--------------------------------------------------------------------------------
CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 41% 60%
--------------------------------------------------------------------------------
AA/Aa 17 7
--------------------------------------------------------------------------------
A 21 29
--------------------------------------------------------------------------------
BBB/Baa 7 --
--------------------------------------------------------------------------------
Not Rated 14 4
--------------------------------------------------------------------------------
----------
* Using the higher of S&P's, Moody's or Fitch's rating.
9
TRUST SUMMARIES
AUGUST 31, 2003
-----------------------------------------
BLACKROCK MARYLAND MUNICIPAL BOND TRUST
-----------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on American Stock Exchange: BZM
--------------------------------------------------------------------------------
Initial Offering Date: April 30, 2002
--------------------------------------------------------------------------------
Closing Market Price as of 8/31/03: $13.90
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/03: $14.36
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 8/31/03 ($13.90):(1) 6.16%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $0.07135
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $0.85620
--------------------------------------------------------------------------------
Leverage as of 8/31/03:(3) 38%
--------------------------------------------------------------------------------
(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:
---------------------------------------------------------
8/31/03 8/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $13.90 $14.95 (7.02)% $16.10 $13.46
--------------------------------------------------------------------------------
NAV $14.36 $14.76 (2.71)% $15.78 $14.12
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
Education 26% 23%
--------------------------------------------------------------------------------
Hospitals 17 17
--------------------------------------------------------------------------------
Water & Sewer 12 12
--------------------------------------------------------------------------------
City, County & State 11 9
--------------------------------------------------------------------------------
Transportation 9 9
--------------------------------------------------------------------------------
Lease Revenue 8 16
--------------------------------------------------------------------------------
Power 5 4
--------------------------------------------------------------------------------
Housing 4 6
--------------------------------------------------------------------------------
Tobacco 3 --
--------------------------------------------------------------------------------
Other 5 4
--------------------------------------------------------------------------------
CREDIT BREAKDOWN*
--------------------------------------------------------------------------------
CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 34% 34%
--------------------------------------------------------------------------------
AA/Aa 12 23
--------------------------------------------------------------------------------
A 36 35
--------------------------------------------------------------------------------
BBB/Baa 11 4
--------------------------------------------------------------------------------
Not Rated 7 4
--------------------------------------------------------------------------------
----------
* Using the higher of S&P's, Moody's or Fitch's rating.
10
TRUST SUMMARIES
AUGUST 31, 2003
-------------------------------------------
BLACKROCK NEW JERSEY MUNICIPAL BOND TRUST
-------------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on American Stock Exchange: BLJ
--------------------------------------------------------------------------------
Initial Offering Date: April 30, 2002
--------------------------------------------------------------------------------
Closing Market Price as of 8/31/03: $13.64
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/03: $13.77
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 8/31/03 ($13.64):(1) 6.91%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $0.078582
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $0.942984
--------------------------------------------------------------------------------
Leverage as of 8/31/03:(3) 39%
--------------------------------------------------------------------------------
(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:
--------------------------------------------------------
8/31/03 8/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $13.64 $14.65 (6.89)% $15.06 $13.36
--------------------------------------------------------------------------------
NAV $13.77 $14.58 (5.56)% $15.25 $13.59
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
Hospitals 24% 24%
--------------------------------------------------------------------------------
Transportation 17 17
--------------------------------------------------------------------------------
Housing 15 15
--------------------------------------------------------------------------------
Tobacco 11 9
--------------------------------------------------------------------------------
Lease Revenue 5 9
--------------------------------------------------------------------------------
City, County & State 5 5
--------------------------------------------------------------------------------
Education 5 5
--------------------------------------------------------------------------------
Power 5 4
--------------------------------------------------------------------------------
Tax Revenue 5 4
--------------------------------------------------------------------------------
Industrial & Pollution Control 4 4
--------------------------------------------------------------------------------
Other 4 4
--------------------------------------------------------------------------------
CREDIT BREAKDOWN*
--------------------------------------------------------------------------------
CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 28% 26%
--------------------------------------------------------------------------------
AA/Aa -- 4
--------------------------------------------------------------------------------
A 31 44
--------------------------------------------------------------------------------
BBB/Baa 33 18
--------------------------------------------------------------------------------
B 4 4
--------------------------------------------------------------------------------
Not Rated 4 4
--------------------------------------------------------------------------------
----------
* Using the higher of S&P's, Moody's or Fitch's rating.
11
TRUST SUMMARIES
AUGUST 31, 2003
---------------------------------------------------
BLACKROCK NEW YORK INSURED MUNICIPAL INCOME TRUST
---------------------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BSE
--------------------------------------------------------------------------------
Initial Offering Date: October 31, 2002
--------------------------------------------------------------------------------
Closing Market Price as of 8/31/03: $13.28
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/03: $13.45
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 8/31/03 ($13.28):(1) 6.78%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $0.075
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $0.900
--------------------------------------------------------------------------------
Leverage as of 8/31/03:(3) 39%
--------------------------------------------------------------------------------
(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:
------------------------------------------------
8/31/03 HIGH LOW
--------------------------------------------------------------------------------
Market Price $13.28 $15.15 $13.15
--------------------------------------------------------------------------------
NAV $13.45 $15.17 $13.23
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
-------------------------------------------------------------
SECTOR AUGUST 31, 2003
-------------------------------------------------------------
Transportation 33%
-------------------------------------------------------------
Education 29
-------------------------------------------------------------
Hospital 14
-------------------------------------------------------------
Tobacco 10
-------------------------------------------------------------
Tax Revenue 7
-------------------------------------------------------------
Lease Revenue 4
-------------------------------------------------------------
Water & Sewer 3
-------------------------------------------------------------
CREDIT BREAKDOWN*
-------------------------------------------------------------
CREDIT RATING AUGUST 31, 2003
-------------------------------------------------------------
AAA/Aaa 82%
-------------------------------------------------------------
AA/Aa 2
-------------------------------------------------------------
A 9
-------------------------------------------------------------
BBB/Baa 7
-------------------------------------------------------------
----------
* Using the higher of S&P's, Moody's or Fitch's rating.
12
TRUST SUMMARIES
AUGUST 31, 2003
-----------------------------------------
BLACKROCK NEW YORK MUNICIPAL BOND TRUST
-----------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BQH
--------------------------------------------------------------------------------
Initial Offering Date: April 30, 2002
--------------------------------------------------------------------------------
Closing Market Price as of 8/31/03: $13.35
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/03: $14.15
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 8/31/03 ($13.35):(1) 6.93%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $0.077099
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $0.925188
--------------------------------------------------------------------------------
Leverage as of 8/31/03:(2) 39%
--------------------------------------------------------------------------------
(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:
-----------------------------------------------------
8/31/03 8/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $13.35 $14.50 (7.93)% $15.00 $13.02
--------------------------------------------------------------------------------
NAV $14.15 $14.83 (4.59)% $15.53 $14.03
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
Transportation 14% 18%
--------------------------------------------------------------------------------
Education 12 12
--------------------------------------------------------------------------------
Tobacco 11 13
--------------------------------------------------------------------------------
Hospitals 11 7
--------------------------------------------------------------------------------
City, County & State 10 10
--------------------------------------------------------------------------------
Housing 9 13
--------------------------------------------------------------------------------
Water & Sewer 9 8
--------------------------------------------------------------------------------
Tax Revenue 8 8
--------------------------------------------------------------------------------
Lease Revenue 5 4
--------------------------------------------------------------------------------
Industrial & Pollution Control 4 --
--------------------------------------------------------------------------------
Power 3 3
--------------------------------------------------------------------------------
Other 4 4
--------------------------------------------------------------------------------
CREDIT BREAKDOWN*
--------------------------------------------------------------------------------
CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 21% 21%
--------------------------------------------------------------------------------
AA/Aa 26 30
--------------------------------------------------------------------------------
A 38 41
--------------------------------------------------------------------------------
BBB/Baa 7 4
--------------------------------------------------------------------------------
CCC/Caa 4 --
--------------------------------------------------------------------------------
Not Rated 4 4
--------------------------------------------------------------------------------
----------
* Using the higher of S&P's, Moody's or Fitch's rating.
13
TRUST SUMMARIES
AUGUST 31, 2003
----------------------------------------------
BLACKROCK NEW YORK MUNICIPAL INCOME TRUST II
----------------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on American Stock Exchange: BFY
--------------------------------------------------------------------------------
Initial Offering Date: July 30, 2002
--------------------------------------------------------------------------------
Closing Market Price as of 8/31/03: $13.12
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/03: $13.36
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 8/31/03 ($13.12):(1) 7.20%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $0.07875
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $0.94500
--------------------------------------------------------------------------------
Leverage as of 8/31/03:(3) 40%
--------------------------------------------------------------------------------
(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:
-------------------------------------------------------
8/31/03 8/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $13.12 $15.10 (13.11)% $15.10 $12.95
--------------------------------------------------------------------------------
NAV $13.36 $14.47 (7.67)% $14.96 $13.17
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
Education 23% 16%
--------------------------------------------------------------------------------
Transportation 21 38
--------------------------------------------------------------------------------
Tobacco 10 12
--------------------------------------------------------------------------------
Tax Revenue 9 7
--------------------------------------------------------------------------------
Industrial & Pollution Control 9 --
--------------------------------------------------------------------------------
Hospitals 9 3
--------------------------------------------------------------------------------
City, County & State 8 6
--------------------------------------------------------------------------------
Water & Sewer 5 12
--------------------------------------------------------------------------------
Housing 5 3
--------------------------------------------------------------------------------
Power 1 3
--------------------------------------------------------------------------------
CREDIT BREAKDOWN*
--------------------------------------------------------------------------------
CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 21% 33%
--------------------------------------------------------------------------------
AA/Aa 45 55
--------------------------------------------------------------------------------
A 27 6
--------------------------------------------------------------------------------
BBB/Baa 4 --
--------------------------------------------------------------------------------
CCC/Caa 3 6
--------------------------------------------------------------------------------
----------
* Using the higher of S&P's, Moody's or Fitch's rating.
14
TRUST SUMMARIES
AUGUST 31, 2003
-----------------------------------------
BLACKROCK VIRGINIA MUNICIPAL BOND TRUST
-----------------------------------------
TRUST INFORMATION
--------------------------------------------------------------------------------
Symbol on American Stock Exchange: BHV
--------------------------------------------------------------------------------
Initial Offering Date: April 30, 2002
--------------------------------------------------------------------------------
Closing Market Price as of 8/31/03: $14.40
--------------------------------------------------------------------------------
Net Asset Value as of 8/31/03: $14.46
--------------------------------------------------------------------------------
Yield on Closing Market Price as of 8/31/03 ($14.40):(1) 6.04%
--------------------------------------------------------------------------------
Current Monthly Distribution per Common Share:(2) $0.072428
--------------------------------------------------------------------------------
Current Annualized Distribution per Common Share:(2) $0.869136
--------------------------------------------------------------------------------
Leverage as of 8/31/03:(3) 38%
--------------------------------------------------------------------------------
(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:
------------------------------------------------------
8/31/03 8/31/02 CHANGE HIGH LOW
--------------------------------------------------------------------------------
Market Price $14.40 $15.20 (5.26)% $16.01 $14.20
--------------------------------------------------------------------------------
NAV $14.46 $14.90 (2.95)% $16.17 $14.25
--------------------------------------------------------------------------------
The following charts show the asset composition and credit quality allocations
of the Trust's long-term investments:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
Water & Sewer 19% 19%
--------------------------------------------------------------------------------
Hospitals 19 13
--------------------------------------------------------------------------------
City, County & State 17 19
--------------------------------------------------------------------------------
Transportation 16 20
--------------------------------------------------------------------------------
Housing 13 11
--------------------------------------------------------------------------------
Education 5 4
--------------------------------------------------------------------------------
Lease Revenue 4 10
--------------------------------------------------------------------------------
Tobacco 3 --
--------------------------------------------------------------------------------
Other 4 4
--------------------------------------------------------------------------------
CREDIT BREAKDOWN*
--------------------------------------------------------------------------------
CREDIT RATING AUGUST 31, 2003 AUGUST 31, 2002
--------------------------------------------------------------------------------
AAA/Aaa 47% 47%
--------------------------------------------------------------------------------
AA/Aa 16 24
--------------------------------------------------------------------------------
A 21 22
--------------------------------------------------------------------------------
BBB/Baa 3 --
--------------------------------------------------------------------------------
Not Rated 13 7
--------------------------------------------------------------------------------
----------
* Using the higher of S&P's, Moody's or Fitch's rating.
15
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2003
------------------------------------------
BLACKROCK INSURED MUNICIPAL INCOME TRUST
------------------------------------------
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
LONG-TERM INVESTMENTS--157.1%
ALABAMA--12.2%
AAA $40,000(3) Jefferson Cnty. Swr., Ser. D, 5.00%, 8/01/12, FGIC ........................... N/A $ 43,429,242
CALIFORNIA--26.1%
AAA 24,530 California, GO, 5.00%, 2/01/31, MBIA ......................................... 02/13 @ 100 23,890,748
A- 14,000 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.375%, 5/01/22 ...... 05/12 @ 101 14,102,200
AAA 10,000 California Infrastructure & Econ. Dev., Bay Area Toll Brdgs., Ser. A, 5.00%,
7/01/36, AMBAC ............................................................. 07/13 @ 100 9,770,500
Los Angeles Dept. of Wtr. & Pwr.,
AAA 5,000 Pwr. Sys. Rev., Ser. A-2, 5.00%, 7/01/27, MBIA ............................. 07/13 @ 100 4,938,500
AAA 6,810 Wtr. Wks. Rev., Ser. A, 5.125%, 7/01/40, FGIC .............................. 07/12 @ 100 6,761,853
AAA 12,850 Wtr. Wks. Rev., Ser. A, 5.125%, 7/01/41, MBIA .............................. 07/11 @ 100 12,758,508
San Joaquin Hills Transp. Corridor Agcy., Toll Road Rev., Ser. A, MBIA,
AAA 53,000 Zero Coupon, 1/15/31 ....................................................... No Opt. Call 11,116,220
AAA 48,690 Zero Coupon, 1/15/32 ....................................................... No Opt. Call 9,645,976
------------
92,984,505
------------
GEORGIA--7.7%
Atlanta Wtr. & Wstwtr., Ser. A,
AAA 9,555 5.00%, 11/01/38, FGIC ...................................................... 05/09 @ 101 9,371,640
AAA 8,145 5.00%, 11/01/39, MBIA ...................................................... 05/12 @ 100 7,987,231
Baa1 10,000 De Kalb Cnty. Dev. Auth., PCR, General Mtrs. Corp. Proj., 6.00%, 3/15/21 ..... 12/12 @ 101 10,096,000
------------
27,454,871
------------
ILLINOIS--12.5%
AAA 7,300 Chicago, GO, Neighborhoods Alive 21 Prog., Ser. A, 5.00%, 1/01/41, FGIC ...... 01/11 @ 100 7,039,244
AAA 11,550 Chicago Spec. Transp., 5.25%, 1/01/31, AMBAC ................................. 01/11 @ 101 11,588,808
AAA 9,150 Chicago Wtr., 5.00%, 11/01/31, AMBAC ......................................... 11/11 @ 100 8,895,264
Met. Pier & Exposition Auth., Dedicated St. Tax Rev.,
McCormick Place Expansion Proj., MBIA,
AAA 10,000 Ser. A, Zero Coupon, 12/15/25 .............................................. No Opt. Call 2,797,100
AAA 30,000 Ser. A, Zero Coupon, 12/15/29 .............................................. No Opt. Call 6,588,000
AAA 25,000 Ser. A, Zero Coupon, 6/15/35 ............................................... No Opt. Call 3,920,000
AAA 15,000 Ser. B, Zero Coupon, 6/15/28 ............................................... No Opt. Call 3,601,050
------------
44,429,466
------------
INDIANA--2.6%
AAA 9,400 New Albany-Floyd Cnty. Sch. Bldg. Corp., 5.125%, 1/15/27, FGIC ............... 07/12 @ 100 9,397,556
------------
MASSACHUSETTS--11.7%
Massachusetts Tpke. Auth., Met. Hwy. Sys. Rev., Ser. A,
AAA 16,735 5.00%, 1/01/37, MBIA ....................................................... 01/07 @ 102 16,367,165
AAA 26,000 5.00%, 1/01/39, AMBAC ...................................................... 01/09 @ 101 25,416,820
------------
41,783,985
------------
MICHIGAN--1.4%
AAA 5,000 Detroit City Sch. Dist., GO, Ser. A, 5.125%, 5/01/31, FSA .................... 05/12 @ 100 5,002,050
------------
NEVADA--7.7%
AAA 6,000 Reno Transp. Proj., 5.125%, 6/01/32, AMBAC ................................... 06/12 @ 100 5,969,640
Truckee Meadows Wtr. Auth., Ser. A, FSA,
AAA 10,000 5.00%, 7/01/25 ............................................................. 07/11 @ 100 9,947,300
AAA 6,500 5.125%, 7/01/30 ............................................................ 07/11 @ 100 6,497,595
AAA 5,000 5.25%, 7/01/34 ............................................................. 07/11 @ 100 5,025,250
------------
27,439,785
------------
NEW JERSEY--1.7%
BBB 8,000 Tobacco Settlement Fin. Corp., 6.125%, 6/01/42 ............................... 06/12 @ 100 5,982,160
------------
See Notes to Financial Statements.
16
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
NEW YORK--5.8%
AAA $10,000 Met. Transp. Auth., Dedicated Tax Fund, Ser. A, 5.00%, 11/15/30, MBIA ....... 11/12 @ 100 $ 9,884,100
AAA 11,000 Triborough Brdg. & Tunl. Auth., Ser. E, 5.00%, 11/15/32, MBIA ............... 11/12 @ 100 10,852,270
------------
20,736,370
------------
OHIO--0.8%
BBB 2,500 Cuyahoga Cnty. Hosp. Facs., Canton Inc. Proj., 7.50%, 1/01/30 ............... 07/10 @ 101 2,719,100
------------
PENNSYLVANIA--7.4%
BBB+ 5,000 Lebanon Cnty. Hlth. Facs. Auth., Good Samaritan Hosp. Proj.,
6.00%, 11/15/35 ........................................................... 11/12 @ 101 4,889,200
Philadelphia Gas Wks., FSA,
AAA 5,200 Ser. 3, 5.125%, 8/01/31 ................................................... 08/11 @ 100 5,181,748
AAA 16,625 Ser. 4, 5.00%, 8/01/32 .................................................... 08/13 @ 100 16,255,094
------------
26,326,042
------------
RHODE ISLAND--4.6%
BBB 21,495 Tobacco Settlement Fin. Corp., Ser. A, 6.25%, 6/01/42 ....................... 06/12 @ 100 16,481,076
------------
SOUTH CAROLINA--14.5%
AAA 5,000 So. Carolina Pub. Svc. Auth., Ser. B, 5.50%, 1/01/36, FSA ................... 01/12 @ 100 5,179,150
So. Carolina Transp. Infrastructure Bank, AMBAC,
AAA 9,000 Ser. A, 5.00%, 10/01/29 ................................................... 10/11 @ 100 8,994,330
AAA 12,750 Ser. A, 5.00%, 10/01/33 ................................................... 10/12 @ 100 12,538,477
AAA 12,660 Ser. B, 5.125%, 10/01/26 .................................................. 10/11 @ 100 12,848,634
A- 15,000 Tobacco Settlement Rev. Mgmt. Auth., Ser. B, 6.375%, 5/15/28 ................ 05/11 @ 101 12,032,850
------------
51,593,441
------------
SOUTH DAKOTA--0.9%
A- 4,165 Edl. Enhancement Fdg. Corp., Tobacco Settlement, Ser. B, 6.50%, 6/01/32 ..... 06/12 @ 101 3,362,155
------------
TENNESSEE--3.7%
Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd., Hosp. Facs. Rev., Ser. A, FSA,
AAA 11,705 Zero Coupon, 1/01/22 ...................................................... 001/13 @ 59.5606 4,083,757
AAA 9,260 Zero Coupon, 1/01/23 ...................................................... 001/13 @ 56.0106 3,026,446
AAA 8,500 Zero Coupon, 1/01/24 ...................................................... 001/13 @ 52.7409 2,603,550
AAA 6,850 Zero Coupon, 1/01/25 ...................................................... 001/13 @ 49.7102 1,976,842
AAA 5,000 Zero Coupon, 1/01/26 ...................................................... 001/13 @ 46.7801 1,355,050
------------
13,045,645
------------
TEXAS--20.8%
BBB 3,700 Comal Cnty. Hlth. Facs., Hlth. Care Sys., McKenna Mem. Proj., Ser. A,
6.25%, 2/01/32 ............................................................ 02/13 @ 100 3,627,739
Harris Cnty.,
AAA 7,485 GO, Zero Coupon, 8/15/25, MBIA ............................................ No Opt. Call 2,133,899
AAA 10,915 GO, Zero Coupon, 8/15/28, MBIA ............................................ No Opt. Call 2,588,929
AAA 5,510 Toll Road Rev., 5.00%, 8/15/30, FSA ....................................... 08/12 @ 100 5,391,094
Harris Cnty. Sports Auth., Ser. H, MBIA,
AAA 5,785 Zero Coupon, 11/15/38 ..................................................... 11/31 @ 64.9 1 731,571
AAA 6,160 Zero Coupon, 11/15/39 ..................................................... 111/31 @ 60.9716 731,315
AAA 25,000 Houston Wtr. & Swr. Sys., Ser. A, 5.00%, 12/01/30, FSA ...................... 12/12 @ 100 24,456,750
AAA 10,350 Texas St. Tpke. Auth., Dallas No. Thruway, George Bush Tpke., 5.25%,
1/01/23, FGIC ............................................................. 01/06 @ 102 10,451,844
AAA 22,000 Texas Tpke. Auth., Central Sys. Rev., Ser. A, 5.00%, 8/15/42, AMBAC ......... 08/12 @ 100 21,240,340
BBB+ 3,000 Tyler Cnty. Hlth. Facs. Dev., Mother Frances Hosp., 6.00%, 7/01/31 .......... 07/12 @ 100 2,916,990
------------
74,270,471
------------
VIRGINIA--2.0%
Chesterfield Cnty. Indl. Dev. Auth., PCR, Elec. & Pwr. Co.,
A3 3,000 Ser. A, 5.875%, 6/01/17 ................................................... 11/10 @ 102 3,151,920
A3 4,000 Ser. B, 5.875%, 6/01/17 ................................................... 11/10 @ 102 4,180,440
------------
7,332,360
------------
WASHINGTON--11.4%
AAA 3,655 Chelan Cnty. Pub. Util. Dist. 1, Chelan Hydro Sys., Ser. C, 5.125%,
7/01/33, AMBAC ............................................................ 07/12 @ 100 3,636,323
AAA 6,450 King Cnty. Swr., 5.00%, 1/01/31, FGIC ....................................... 01/12 @ 100 6,300,425
AAA 9,500 Seattle, GO, Ser. F, 5.125%, 12/15/28, MBIA ................................. 12/08 @ 100 9,489,550
BBB 7,545 Tobacco Settlement Auth., 6.625%, 6/01/32 ................................... 06/13 @ 100 6,229,001
Washington, GO, FSA,
AAA 6,380 Ser. A, 5.00%, 7/01/25 .................................................... 07/11 @ 100 6,313,010
AAA 9,000 Ser. B, 5.00%, 1/01/27 .................................................... 01/12 @ 100 8,818,020
------------
40,786,329
------------
See Notes to Financial Statements.
17
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
WISCONSIN--1.6%
BBB $ 7,000 Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32 .............................. 06/12 @ 100 $ 5,554,990
-------------
TOTAL LONG-TERM INVESTMENTS (COST $571,881,096) 560,111,599
-------------
FLORIDA--0.2%
F1+ 690 Orange Cnty. Sch. Brd., COP, Ser. B-1, Zero Coupon, 9/02/03, AMBAC, FRDD(4) ... N/A 690,000
-------------
NEW YORK--0.2%
A1+ 700 New York City Mun. Wtr. Fin. Auth., Ser. G, Zero Coupon, 9/02/03,
FGIC, FRDD(4) ............................................................... N/A 700,000
-------------
------
SHARES
(000)
------
MONEY MARKET FUND--0.1%
NR 250 AIM Tax Free Investment Co. Cash Reserve Portfolio ............................ N/A 250,000
-------------
TOTAL SHORT-TERM INVESTMENTS (COST $1,640,000) ................................ 1,640,000
-------------
TOTAL INVESTMENTS--157.6% (COST $573,521,096) ................................. $ 561,751,599
Other assets in excess of liabilities--6.6% ................................... 23,687,088
Preferred shares at redemption value, including dividends payable--(64.2)% .... (229,001,028)
-------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ............................ $ 356,437,659
=============
----------
(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 82.7% of the Trust's
total investments.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
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.
18
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2003
--------------------------------
BLACKROCK MUNICIPAL BOND TRUST
--------------------------------
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
LONG-TERM INVESTMENTS--158.2%
ALABAMA--11.9%
BBB $ 9,250 Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., Ser. A,
6.50%, 9/01/25 ............................................................. 09/05 @ 102 $ 9,520,747
A2 7,500 Huntsville Hlth. Care Auth., Ser. A, 5.75%, 6/01/31 .......................... 06/11 @ 101 7,511,175
------------
17,031,922
------------
ALASKA--7.2%
AA+ 10,000 Valdez Marine Term., BP Pipelines Inc. Proj., Ser. A, 5.85%, 8/01/25 ......... 09/03 @ 102 10,247,000
------------
CALIFORNIA--8.3%
AAA 4,000 California Infrastructure & Econ. Dev., Bay Area Toll Brdgs., Ser. A,
5.00%, 7/01/36, AMBAC ...................................................... 07/13 @ 100 3,908,200
B- 8,000 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc.,
Ser. B, 7.50%, 12/01/24 .................................................... 12/12 @ 102 6,497,680
NR 1,585 Val Verde Unified School Dist. Fin. Auth., Spec. Tax Rev., 6.25%, 10/01/28 ... 10/13 @ 102 1,508,048
------------
11,913,928
------------
CONNECTICUT--7.3%
Connecticut Dev. Auth., Connecticut Lt. & Pwr., PCR,
A3 6,500 Ser. A, 5.85%, 9/01/28 ..................................................... 10/08 @ 102 6,758,115
A3 3,500 Ser. B, 5.95%, 9/01/28 ..................................................... 10/08 @ 102 3,632,125
------------
10,390,240
------------
DELAWARE--7.5%
NR 10,500(3) Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/14 ................... No Opt. Call 10,700,025
------------
DISTRICT OF COLUMBIA--10.4%
Dist. of Columbia,
AAA 33,450 Georgetown Univ., Ser. A, Zero Coupon, 4/01/38, MBIA ....................... 04/11 @ 20.243 4,147,466
BBB 5,580 Tobacco Settlement Fin. Corp., 6.75%, 5/15/40 .............................. 05/11 @ 101 4,609,805
AAA 6,000 Tax Incr., Gallary Place Proj., 5.40%, 7/01/31, FSA .......................... 07/12 @ 100 6,097,320
------------
14,854,591
------------
FLORIDA--16.5%
BBB- 6,200 Martin Cnty. Indl. Dev. Auth., Indiantown Cogeneration Proj., Ser. A,
7.875%, 12/15/25 ........................................................... 12/04 @ 102 6,411,792
A 10,000 Orange Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys., 5.625%, 11/15/32 . 11/12 @ 101 9,882,000
AAA 7,255 Palm Beach Cnty. Hsg. Fin. Auth., Mult. Fam. Rev., Indian Trace Apts.,
Ser. A, 5.625%, 1/01/44, FSA ............................................... 01/12 @ 100 7,304,697
------------
23,598,489
------------
GEORGIA--0.9%
AAA 1,265 Atlanta Wtr. & Wstwtr., Ser. A, 5.00%, 11/01/39, MBIA ........................ 05/12 @ 100 1,240,497
------------
ILLINOIS--20.8%
AAA 23,065 Bolingbrook, GO, Ser. B, Zero Coupon, 1/01/36, FGIC .......................... 01/12 @ 23.018 3,200,730
AAA 9,880 Chicago, GO, Ser. A, 5.50%, 1/01/38, MBIA .................................... 01/11 @ 101 10,172,843
BBB 6,000 Illinois Edl. Facs. Auth., Student Hsg. Rev., Edl. Advancement Fund
Univ. Ctr. Proj., 6.25%, 5/01/34 ........................................... 05/07 @ 100 6,003,240
A 6,000 Illinois Hlth. Facs. Auth., Lake Forest Hosp., Ser. A, 5.75%, 7/01/29 ........ 07/12 @ 100 5,976,420
Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place
Expansion Proj., Ser. A, MBIA,
AAA 10,000 Zero Coupon, 6/15/35 ..................................................... No Opt. Call 1,568,000
AAA 10,000 Zero Coupon, 12/15/36 .................................................... No Opt. Call 1,431,500
AAA 10,000 Zero Coupon, 12/15/37 .................................................... No Opt. Call 1,345,400
------------
29,698,133
------------
INDIANA--1.4%
NR 2,020 Mult. Fam. Hsg., Canterbury House Apts., Ser. 1, 5.90%, 12/01/34 ............. 12/11 @ 100 1,967,844
------------
KANSAS--3.6%
A- 5,000 Wichita Arpt. Auth., Arpt. Facs. Rev., Cessna Citation Svc. Ctr.,
Ser. A, 6.25%, 6/15/32 ..................................................... 06/12 @ 101 5,126,800
------------
LOUISIANA--0.8%
Baa1 1,165 Louisiana Local Gov. Env., Oakleigh Apts. Proj., Ser. A, 6.375%, 6/01/38 ..... 06/13 @ 102 1,125,460
------------
MARYLAND--0.8%
NR 1,250 Baltimore, Spec. Oblig. Rev., Harborview Lot No. 2, 6.50%, 7/01/31 ........... 07/13 @ 101 1,218,450
------------
MASSACHUSETTS--5.1%
AAA 7,500 Massachusetts Tpke. Auth., Met. Hwy. Sys. Rev., Ser. A, 5.00%, 1/01/37, MBIA . 01/07 @ 102 7,335,150
------------
See Notes to Financial Statements.
19
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
MICHIGAN--3.2%
BBB $ 4,500 Delta Cnty. Econ. Dev. Corp., Env. Impvt. Rev., Mead Westvaco Escanaba,
Ser. A, 6.25%, 4/15/27 ..................................................... 04/12 @ 100 $ 4,527,090
------------
NEVADA--0.9%
NR 1,400 Las Vegas Spec. Impvt. Dist. No. 809, Summerlin Area, 5.65%, 6/01/23 ......... 12/03 @ 103 1,275,204
------------
NEW JERSEY--14.2%
New Jersey Econ. Dev. Auth.,
B 3,000 Continental Airlines Inc. Proj., 7.20%, 11/15/30 ........................... 11/10 @ 101 2,543,970
Baa3 7,500 Kapkowski Road Landfill Proj., 6.50%, 4/01/28 .............................. No Opt. Call 8,290,200
BBB 11,155 Tobacco Settlement Fin. Corp., 7.00%, 6/01/41 ................................ 06/13 @ 100 9,528,936
------------
20,363,106
------------
OREGON--0.7%
NR 1,000 Mult. Fam. Hsg., Pacific Tower Apts., Ser. 6, 6.05%, 11/01/34 ................ 06/12 @ 100 964,640
------------
RHODE ISLAND--3.7%
BBB 7,000 Tobacco Settlement Fin. Corp., Ser. A, 6.25%, 6/01/42 ........................ 06/12 @ 100 5,367,180
------------
SOUTH CAROLINA--4.2%
So. Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev.,
A- 5,000 Bon Secours Hlth. Sys. Inc., Ser. A, 5.625%, 11/15/30 ...................... 11/12 @ 100 4,962,500
BBB 1,000 Palmetto Hlth. Alliance, Ser. C, 7.00%, 8/01/30 ............................ 08/13 @ 100 1,043,930
------------
6,006,430
------------
TEXAS--20.9%
AAA 11,690 Harris Cnty. Houston Sports Auth., Ser. G, Zero Coupon, 11/15/41, MBIA ....... 11/31 @ 53.779 1,222,189
NR 2,840 Mult. Fam. Hsg., Copperwood Ranch Apts., Ser. 9, 5.95%, 11/01/35 ............. 06/12 @ 100 2,761,815
BBB 10,000 Red River Auth., PCR, Celanese Proj., Ser. B, 6.70%, 11/01/30 ................ 05/12 @ 101 10,384,800
AAA 60,000 Texas Tpke. Auth., Central Sys. Rev., Zero Coupon, 8/15/35, AMBAC ............ 08/12 @ 25.665 8,855,400
BBB+ 6,840 Tyler Cnty. Hlth. Facs. Dev., Mother Frances Hosp., 6.00%, 7/01/31 ........... 07/12 @ 100 6,650,737
------------
29,874,941
------------
WEST VIRGINIA--2.1%
AAA 20,255 West Virginia Hsg. Dev. Fund, Hsg. Fin. Rev., Zero Coupon, 11/01/37 .......... No Opt. Call 2,970,193
------------
WISCONSIN--5.8%
Wisconsin Hlth. & Edl. Facs. Auth.,
A- 1,350 Aurora Hlth. Care, 6.40%, 4/15/33 .......................................... 08/13 @ 100 1,346,504
A 7,000 Wheaton Franciscan Svcs., 5.75%, 8/15/30 ................................... 02/12 @ 101 7,007,560
------------
8,354,064
------------
TOTAL LONG-TERM INVESTMENTS (COST $227,519,340) .............................. $226,151,377
------------
-------
SHARES
(000)
-------
MONEY MARKET FUND--0.8%
NR 1,150 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $1,150,000) ......... N/A 1,150,000
------------
TOTAL INVESTMENTS--159.0% (COST $228,669,340) ................................ $227,301,377
Other assets in excess of liabilities--4.3% .................................. 6,157,581
Preferred shares at redemption value, including dividends payable--(63.3)% ... (90,508,091)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $142,950,867
============
----------
(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. This security
may be resold in transactions in accordance with Rule 144A under that Act,
to qualified institutional buyers. As of August 31, 2003, the Trust held
7.5% of its net assets, with a current market value of $10,700,025, 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
PCR -- Pollution Control Revenue
MBIA -- Municipal Bond Insurance Association
--------------------------------------------------------------------------------
See Notes to Financial Statements.
20
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2003
-------------------------------------
BLACKROCK MUNICIPAL INCOME TRUST II
-------------------------------------
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
LONG-TERM INVESTMENTS--158.2%
ALABAMA--1.0%
AAA $ 3,000 Birmingham Wtr. Wks. & Swr. Brd., Wtr. & Swr. Rev., Ser. B,
5.00%, 1/01/43, MBIA ........................................................ 01/13 @ 100 $ 2,924,220
------------
CALIFORNIA--9.7%
A 2,250 Agua Caliente Band, Cahuilla Indians, 6.00%, 7/01/18 .......................... 07/13 @ 100 2,237,625
AAA 5,000 California Infrastructure & Econ. Dev., Bay Area Toll Brdgs., Ser. A,
5.00%, 7/01/36, AMBAC ....................................................... 07/13 @ 100 4,885,250
A 3,500 California Mobile Home Park Fin. Auth., Palomar Estates East & West,
Ser. A, 5.25%, 3/15/34, ACA ................................................. 03/13 @ 102 3,259,375
A- 5,000 California Statewide Cmnty. Dev. Auth., Mem. Hlth. Svcs., Ser. A,
5.50%, 10/01/33 ............................................................. 04/13 @ 100 4,929,250
B- 11,410 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc.,
Ser. C, 7.50%, 12/01/24 ..................................................... 12/12 @ 102 9,267,316
NR 4,620 San Francisco City & Cnty. Redev. Agcy., Cmnty. Facs. Dist.,
Mission Bay South, 6.625%, 8/01/27 .......................................... 08/11 @ 101 4,680,014
------------
29,258,830
------------
COLORADO--4.6%
AA 10,000 Colorado Hlth. Facs. Auth., Catholic Hlth. Initiatives, Ser. A,
5.50%, 3/01/32 .............................................................. 03/12 @ 100 9,861,500
AAA 4,000 Northwest Pkwy. Pub. Hwy. Auth., Ser. A, 5.25%, 6/15/41, FSA .................. 06/11 @ 102 4,015,960
------------
13,877,460
------------
CONNECTICUT--1.7%
A3 5,000 Connecticut Dev. Auth., Connecticut Lt. & Pwr., PCR, Ser. B, 5.95%, 9/01/28 ... 10/08 @ 102 5,188,750
------------
DISTRICT OF COLUMBIA--5.8%
Dist. of Columbia,
AAA 1,875 Nat. Academy of Science Proj. Ser. A, 5.00%, 1/01/28, AMBAC ................. 01/09 @ 102 1,828,688
BBB 7,500 Tobacco Settlement Fin. Corp., 6.50%, 5/15/33 ............................... No. Opt. Call 6,148,125
BBB 11,500 Tobacco Settlement Fin. Corp., 6.75%, 5/15/40 ............................... 05/11 @ 101 9,500,495
------------
17,477,308
------------
FLORIDA--15.8%
Baa3 4,500 Capital Trust Agcy., Air Cargo Fort Lauderdale Proj., 5.75%, 1/01/32 .......... 01/14 @ 101 4,185,630
Fishhawk Cmnty. Dev. Dist. II, Spec. Assmnt. Rev,
NR 3,000 Ser. A, 6.25%, 5/01/34 ...................................................... 05/13 @ 101 2,854,800
NR 7,000 Ser. B, 5.00%, 11/01/07 ..................................................... No Opt. Call 6,973,960
A 2,650 Leesburg Hosp., Leesburg Regl. Med. Ctr. Proj., 5.50%, 7/01/32 ................ 07/12 @ 100 2,557,648
NR 3,200 Live Oak Comm. Dev., Dist. No. 1 Spec. Assmnt. Rev., Ser. A,
6.30%, 5/01/34 .............................................................. 05/13 @ 101 3,053,920
A 6,850 Orange Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys.,
5.625%, 11/15/32 ............................................................ 11/12 @ 101 6,769,170
AA- 14,000 Pinellas Cnty. Hlth. Fac. Auth., Baycare Hlth. Sys., 5.50%, 11/15/33 .......... 05/13 @ 100 13,445,460
NR 4,625 Sumter Cnty. Ind. Dev. Auth., No. Sumter Util. Co. LLC, 6.90%, 10/01/34 ....... 10/09 @ 100 4,381,540
NR 3,715 Sumter Landing Cmnty. Dev., Spec. Assmnt. Rev, 6.875%, 5/01/23 ................ 05/13 @ 101 3,630,855
------------
47,852,983
------------
GEORGIA--1.7%
AAA 5,175 Atlanta Wtr. & Wstwtr., Ser. A, 5.00%, 11/01/39, MBIA ......................... 05/12 @ 100 5,074,760
------------
ILLINOIS--19.4%
AAA 4,000 Bolingbrook, GO, Ser. A, 5.375%, 1/01/38, FGIC ................................ 01/12 @ 100 4,055,000
AAA 1,875 Chicago, GO, Ser. A, 5.50%, 1/01/38, MBIA ..................................... 01/11 @ 101 1,930,575
A 7,500 Illinois Dev. Fin. Auth., Hosp. Rev., Adventist Hlth. Sys. Sunbelt Oblig.,
5.65%, 11/15/24 ............................................................. 11/09 @ 101 7,425,600
A2 8,000 Illinois Hlth. Facs. Auth., Elmhurst Mem. Hlth. Care, 5.50%, 1/01/22 .......... 01/13 @ 100 7,843,440
AAA 15,000 Illinois Sports Facs. Auth., Dedicated St. Tax Supported Rev., Zero Coupon,
6/15/30, AMBAC .............................................................. 06/15 @ 101 10,210,350
Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place
Expansion Proj., Ser. A, MBIA,
AAA 25,000 Zero Coupon, 12/15/29 ..................................................... No Opt. Call 5,490,000
AAA 45,190 Zero Coupon, 6/15/33 ...................................................... No Opt. Call 8,011,735
AAA 5,000 Zero Coupon, 6/15/40 ...................................................... No Opt. Call 576,550
AAA 9,500 5.25%, 6/15/42 ............................................................ 06/12 @ 101 9,516,150
AAA 3,800 O'Hare Intl. Arpt., Gen. Arpt., Ser. C-2, 5.25%, 1/01/30, FSA ................. 01/14 @ 100 3,725,824
------------
58,785,224
------------
INDIANA--10.1%
Baa1 5,500 Fort Wayne, PCR, Gen. Mtrs. Corp. Proj., 6.20%, 10/15/25 ...................... 12/12 @ 101 5,640,910
AA 5,000 Indiana Hlth. Fac. Fin. Auth., Ascension Hlth., Ser. F, 5.375%, 11/15/25 ...... 11/12 @ 101 4,907,500
AAA 19,735 Indianapolis Local Pub. Impvt. Bond Bank, Wtr. Wks. Proj., Ser. A,
5.25%, 7/01/33, MBIA ........................................................ 07/12 @ 100 19,833,478
------------
30,381,888
------------
See Notes to Financial Statements.
21
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
LOUISIANA--0.8%
Baa1 $ 2,485 Louisiana Local Gov. Env., Oakleigh Apts. Proj., Ser. A, 6.375%, 6/01/38 ..... 06/13 @ 102 $ 2,400,659
------------
MARYLAND--2.0%
Baa3 5,000 Maryland Econ. Dev. Corp., Student Hsg. Rev., Univ. of Maryland, Ser. A,
5.75%, 10/01/33 ............................................................ 10/13 @ 100 4,929,350
A3 1,000 Maryland Hlth. & Higher Edl. Facs. Auth., Union Hosp. of Cecil Cnty., ........
5.625%, 7/01/32 07/12 @ 100 1,001,900
------------
5,931,250
------------
MASSACHUSETTS--3.2%
AAA 10,000 Massachusetts Tpke. Auth., Met. Hwy. Sys. Rev., Ser. A, 5.00%,
1/01/39, AMBAC ............................................................. 01/09 @ 101 9,775,700
------------
MISSISSIPPI--1.8%
BBB 4,950 Lowndes Cnty. Sld. Wst. Disp., PCR, Weyerhaeuser Co. Proj., Ser. A,
6.80%, 4/01/22 ............................................................. No Opt. Call 5,544,099
------------
MISSOURI--2.0%
NR 6,000 Dept. of Transp., Rt. 370/ Missouri Bottom Rd./Taussig Rd. Transp. Dev.,
7.20%, 5/01/33 ............................................................. 05/13 @ 100 6,059,040
------------
NEVADA--2.8%
NR 3,000 Henderson Local Impvt. Dist. No. T-14, 5.80%, 3/01/23 ........................ 03/04 @ 103 2,854,560
No. Las Vegas Local Impvt., Spec. Impvt. Dist. 60 Aliante,
NR 2,500 6.125%, 12/01/17 ........................................................... 12/03 @ 103 2,488,750
NR 3,000 6.40%, 12/01/22 ............................................................ 12/03 @ 103 2,985,540
------------
8,328,850
------------
NEW JERSEY--9.1%
New Jersey Econ. Dev. Auth.,
B 10,100 Continental Airlines Inc. Proj., 7.20%, 11/15/30 ........................... 11/10 @ 101 8,564,699
Baa3 7,475 Kapkowski Road Landfill Proj., 6.50%, 4/01/28 .............................. No Opt. Call 8,262,566
Baa3 10,000 Kapkowski Road Landfill Proj., 6.50%, 4/01/31 .............................. No Opt. Call 10,740,200
------------
27,567,465
------------
NEW MEXICO--1.6%
Baa1 5,200 New Mexico Hsg. Auth., Region III, Villa Delaware Oso Apts. Proj.,
Ser. A, 6.00%, 1/01/38 ..................................................... 01/13 @ 102 4,725,552
------------
NEW YORK--2.9%
Caa2 8,800 Port Auth. of NY & NJ, Spec. Oblig. Rev., Cont'l/Eastern Proj.
LaGuardia, 9.00%, 12/01/10 ................................................. 09/03 @ 100 8,829,128
------------
PENNSYLVANIA--2.8%
BBB 4,000 Lehigh Cnty. Gen. Purp. Auth., St. Lukes Bethlehem Hosp., 5.375%, 8/15/33 .... 08/13 @ 100 3,696,320
A3 5,175 Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Exempt Facs. Rev.,
Ser. A, 6.375%, 11/01/41 ................................................... 05/11 @ 101 4,849,907
------------
8,546,227
------------
RHODE ISLAND--4.2%
BBB 16,620 Tobacco Settlement Fin. Corp., Ser. A, 6.25%, 6/01/42 ........................ 06/12 @ 100 12,743,219
------------
SOUTH CAROLINA--10.5%
Greenwood Cnty. Hosp., Self Mem. Hosp. Facs.,
A+ 3,280 5.50%, 10/01/26 ............................................................ 10/11 @ 100 3,208,627
A+ 3,250 5.50%, 10/01/31 ............................................................ 10/11 @ 100 3,142,360
NR 4,000 Lancaster Cnty. Assmnt., Edgewater Impvt. Dist. Ser. A, 6.875%, 11/01/35 ..... 11/13 @ 101 3,813,080
So. Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev.,
A- 10,000 Bon Secours Hlth. Sys. Inc., Ser. A, 5.625%, 11/15/30 ...................... 11/12 @ 100 9,925,000
AA 3,750 Georgetown Mem. Hosp., 5.375%, 2/01/30, RAA ................................ 08/11 @ 100 3,777,562
BBB 2,640 Palmetto Hlth. Alliance, Ser. A, 6.25%, 8/01/31 ............................ 08/13 @ 100 2,595,490
BBB 5,000 Palmetto Hlth. Alliance, 6.875%, 8/01/27 ................................... 08/13 @ 100 5,159,400
------------
31,621,519
------------
SOUTH DAKOTA--2.7%
BBB 10,000 Edl. Enhancement Fdg. Corp., Tobacco Settlement, Ser. B, 6.50%, 6/01/32 ...... 06/12 @ 101 8,072,400
------------
TENNESSEE--2.5%
AAA 20,405 Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd., Hosp. Facs. Rev., Ser. A,
Zero Coupon, 1/01/21, FSA .................................................. 01/13 @ 63.44 7,653,099
------------
TEXAS--16.8%
A- 1,750 Crawford Ed. Facs. Corp., Higher Ed. Rev., Univ. of St. Thomas Proj.,
5.375%, 10/01/27 ........................................................... 10/12 @ 100 1,645,385
AAA 1,550 Dallas Ft. Worth Intl. Arpt., Ser. A, 5.00%, 11/01/35, MBIA .................. 11/09 @ 100 1,453,822
BBB 20,000 Gulf Coast Wst. Disp. Auth., Environ. Impvt. Rev., Ser. A, 6.10%, 8/01/24 .... 08/12 @ 100 19,762,200
BBB 5,900 Sabine River Auth., PCR, TXU Elec. Co. Proj., Ser. B, 5.75%, 11/01/11 ........ No Opt. Call 6,003,958
Texas Tpke. Auth., Central Sys. Rev., AMBAC,
AAA 73,370 Zero Coupon, 8/15/36 ....................................................... 08/12 @ 24.171 10,182,289
AAA 65,000 Zero Coupon, 8/15/37 ....................................................... 08/12 @ 22.708 8,462,350
AAA 27,600 Zero Coupon, 8/15/38 ....................................................... 08/12 @ 21.384 3,378,240
------------
50,888,244
------------
UTAH--1.3%
BBB 4,000 Tooele Cnty. Hazardous Wst. Treat., Union Pacific Proj., Ser. A,
5.70%, 11/01/26 ............................................................ 04/08 @ 102 3,934,000
------------
See Notes to Financial Statements.
22
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
VIRGINIA--7.2%
NR $13,500 Alexandria Redev. & Hsg. Auth., 3001 Park Cntr. Apts., Ser. A, 6.375%,
4/01/34 .................................................................... 04/08 @ 103 $ 12,665,970
AAA 9,000 Halifax Cnty. Indl. Dev. Auth., Exempt Fac. Rev., Old Dominion Elec.
Coop. Proj., 5.625%, 6/01/28, AMBAC ........................................ 06/13 @ 101 9,247,500
------------
21,913,470
------------
WEST VIRGINIA--1.6%
BBB 5,000 Mason Cnty., PCR, Appalachian Pwr. Co. Proj., Ser. L, 5.50%, 10/01/22 ........ 10/11 @ 100 4,888,950
------------
WISCONSIN--7.9%
BBB 9,100 Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32 ............................. 06/12 @ 100 7,221,487
Wisconsin Hlth. & Edl. Facs. Auth.,
A- 3,930 Aurora Hlth. Care, 6.40%, 4/15/33 .......................................... 08/13 @ 100 3,919,821
A- 4,000 Synergy Hlth. Inc., 6.00%, 11/15/32 ........................................ 08/13 @ 100 3,929,800
A 4,000 Wheaton Franciscan Svcs., 5.125%, 8/15/33 .................................. 08/13 @ 100 3,688,240
A 5,000 Wheaton Franciscan Svcs., 5.75%, 8/15/25 ................................... 02/12 @ 101 5,041,750
------------
23,801,098
------------
PUERTO RICO--4.7%
A 14,950 Puerto Rico Comnwlth. Hwy. & Transp. Auth., Ser. G, 5.00%, 7/01/42 ........... 07/13 @ 100 14,218,646
------------
TOTAL LONG-TERM INVESTMENTS (COST $493,307,690) 478,264,038
------------
SHORT-TERM INVESTMENTS--9.4%
CALIFORNIA--0.0%
A1 75 California Hlth. Facs. Fin. Auth., Scripps Hlth., Ser. B, 0.78%, 9/03/03,
MBIA, FRWD(3) .............................................................. N/A 75,000
------------
GEORGIA--0.3%
A1+ 1,000 Mun. Elec. Auth. Rev., Proj. One, Ser. C, 0.75%, 9/03/03, MBIA, FRWD3 ........ N/A 1,000,000
------------
MASSACHUSETTS--0.3%
A1 900 Massachusetts Hlth. & Edl. Facs. Auth. Rev., Boston Univ., Ser. Q-1, 0.85%,
9/04/03, XLCA, FRWD(3) ..................................................... N/A 900,000
------------
MISSOURI--0.6%
A1+ 1,800 Missouri Hlth. & Edl. Facs. Auth., Edl. Facs. Rev., Washington Univ.,
Ser. C, 0.80%, 9/02/03, FRDD(3) ............................................ N/A 1,800,000
------------
NEW YORK--2.7%
A1+ 8,300 New York Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys., Ser. C-3, 0.75%,
9/02/03, FRDD(3) ........................................................... N/A 8,300,000
------------
NORTH CAROLINA--2.5%
A1 7,000 Mecklenburg Cnty., COP, 0.85%, 9/04/03, FRWD3 ................................ N/A 7,000,000
A1+ 500 Univ. of No. Carolina Hosp., Chapel Hill, Ser. B, 0.85%, 9/02/03, FRDD(3) .... N/A 500,000
------------
7,500,000
------------
TENNESSEE--0.3%
VMIG1 800 Clarksville Pub. Bldg. Auth. Rev., 0.85%, 9/02/03, FRDD3 ..................... N/A 800,000
------------
VIRGINIA--1.9%
A1+ 5,800 Loudoun Cnty. Indl. Dev. Auth., Howard Hughes Med., Ser. C, 0.85%,
9/02/03, FRDD(3) ........................................................... N/A 5,800,000
------------
------
SHARES
(000)
------
MONEY MARKET FUND--0.8%
NR 2,400 AIM Tax Free Investment Co. Cash Reserve Portfolio ........................... N/A 2,400,000
------------
TOTAL SHORT-TERM INVESTMENTS (COST $28,575,000) .............................. 28,575,000
------------
TOTAL INVESTMENTS--167.6% (COST $521,882,690) ................................ $506,839,038
Other assets in excess of liabilities--0.4% .................................. 1,067,872
Preferred shares at redemption value, including dividends payable--(68.0)% ... (205,570,284)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $302,336,626
============
----------
(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) 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
ACA -- American Capital Access
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
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
RAA -- Radian Asset Assurance
XLCA -- XL Capital Assurance
--------------------------------------------------------------------------------
See Notes to Financial Statements.
23
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2003
-----------------------------------------------------
BLACKROCK CALIFORNIA INSURED MUNICIPAL INCOME TRUST
-----------------------------------------------------
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
LONG-TERM INVESTMENTS--163.5%
AAA $ 6,500 Benicia Unified Sch. Dist., Ser. B, Zero Coupon, 8/01/23, MBIA ............... No Opt. Call $ 2,143,765
California Cnty. Tobacco Sec. Agcy.,
BBB 7,405 Sonoma Cnty., 5.875%, 6/01/43 .............................................. 06/12 @ 100 5,381,214
BBB 7,650 Alameda Cnty., 6.00%, 6/01/42 .............................................. 06/12 @ 100 5,719,522
A- 6,500 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.25%, 5/01/20 ....... 05/12 @ 101 6,545,305
AAA 2,385 California Edl. Facs. Auth., Scripps Coll., 5.00%, 8/01/31, MBIA ............. 08/11 @ 100 2,339,637
AAA 4,500 California Infrastructure & Econ. Dev., Rand Corp., Ser. A, 5.25%,
4/01/42, AMBAC ............................................................. 04/12 @ 100 4,521,960
AAA 5,000 California Pub. Wks. Brd., Dept. of Gen. Svcs., Ser. A, 5.00%,
12/01/27, AMBAC ............................................................ 12/12 @ 100 4,869,900
Ceres Unified Sch. Dist., Ser. B, FGIC,
AAA 3,055 Zero Coupon, 8/01/30 ....................................................... 08/12 @ 34.887 608,067
AAA 3,180 Zero Coupon, 8/01/31 ....................................................... 08/12 @ 32.868 602,578
AAA 3,300 Zero Coupon, 8/01/32 ....................................................... 08/12 @ 30.966 590,799
AAA 3,440 Zero Coupon, 8/01/33 ....................................................... 08/12 @ 29.174 571,900
AAA 3,575 Zero Coupon, 8/01/34 ....................................................... 08/12 @ 27.782 568,211
AAA 3,275 Zero Coupon, 8/01/35 ....................................................... 08/12 @ 26.186 490,464
AAA 2,000 Long Beach Unified Sch. Dist., Ser. D, 5.00%, 8/01/31, FSA ................... 08/10 @ 101 1,961,960
Los Angeles Dept. of Wtr. & Pwr., Wtr. Wks. Rev., Ser. A, FGIC,
AAA 5,000 5.00%, 7/01/43 ............................................................. 07/12 @ 100 4,842,300
AAA 5,000 5.125%, 7/01/41 ............................................................ 07/11 @ 100 4,964,400
AAA 5,000 Los Angeles Unified Sch. Dist., Ser. E, 5.125%, 1/01/27, MBIA ................ 07/12 @ 100 5,009,250
Los Angeles Wstwtr. Sys., Ser. A,
AAA 5,000 5.00%, 6/01/27, MBIA ....................................................... 06/13 @ 100 4,938,550
AAA 6,025 5.00%, 6/01/32, FGIC ....................................................... 06/12 @ 100 5,908,778
AAA 5,000 No. California Pwr. Agcy., Pub. Pwr. Rev., Hydroelec. Proj. 1, Ser. A,
5.00%, 7/01/28, MBIA ....................................................... 07/08 @ 101 4,930,350
AAA 2,500 No. Orange Cnty. Cmnty. Coll. Dist., Ser. A, 5.00%, 2/01/27, MBIA ............ 08/12 @ 101 2,469,550
AAA 5,000 Riverside Unified Sch. Dist., Ser. A, 5.00%, 2/01/27, FGIC ................... 02/12 @ 101 4,939,100
AAA 5,295 San Diego Cnty. Wtr. Auth., COP, Ser. A, 5.00%, 5/01/32, MBIA ................ 05/12 @ 101 5,193,071
AAA 4,805 San Diego Redev. Agcy., Centre City Proj., Ser. A, 5.00%, 9/01/28, MBIA ...... 09/11 @ 101 4,738,211
AAA 4,000 San Diego Univ. Fndtn. Aux. Org., Ser. A, 5.00%, 3/01/37, MBIA ............... 03/12 @ 100 3,912,200
AAA 20,000 San Joaquin Hills Transp. Corridor Agcy., Toll Road Rev., Ser. A,
Zero Coupon, 1/15/31, MBIA ................................................. No Opt. Call 4,194,800
AAA 6,000 San Jose Fin. Auth., Civic Ctr. Proj., Ser. B, 5.00%, 6/01/37, AMBAC ......... 06/12 @ 100 5,867,520
AAA 11,125 Santa Rosa Wstwtr., Ser. B, Zero Coupon, 9/01/27, AMBAC ...................... No Opt. Call 2,861,795
AAA 6,000 Tustin Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist. 97-1,
Ser. A, 5.00%, 9/01/38, FSA ................................................ 09/12 @ 100 5,837,700
AAA 5,280 Westlands Wtr. Dist., COP, 5.00%, 9/01/34, MBIA .............................. 09/12 @ 101 5,175,456
------------
TOTAL LONG-TERM INVESTMENTS (COST $118,809,109) .............................. 112,698,313
------------
------
SHARES
(000)
------
MONEY MARKET FUND--0.2%
NR 100 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $100,000) ........... N/A 100,000
------------
TOTAL INVESTMENTS--163.7% (COST $118,909,109) ................................ $112,798,313
Other assets in excess of liabilities--3.8% .................................. 2,618,722
Preferred shares at redemption value, including dividends payable--(67.5%) ... (46,507,128)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 68,909,907
============
----------
(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.
Securities that are covered by insurance, which ensures the timely payment
of principal and interest, represent approximately 84.3% of the Trust's
total investments.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Insurance Association
--------------------------------------------------------------------------------
See Notes to Financial Statements.
24
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2003
-------------------------------------------
BLACKROCK CALIFORNIA MUNICIPAL BOND TRUST
-------------------------------------------
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
LONG-TERM INVESTMENTS--160.3%
AAA $ 5,000 Anaheim Pub. Fin. Auth., Pub. Impvt. Proj., Ser. C, Zero Coupon,
9/01/32, FSA ............................................................... No Opt. Call $955,650
A 2,500 California, GO, 5.25%, 4/01/30 ............................................... 04/12 @ 100 2,440,725
California Cnty. Tobacco Sec. Agcy., Ser. A,
BBB 4,000 Kern Cnty. Fdg., 6.125%, 6/01/43 ........................................... 06/12 @ 100 3,005,520
BBB 3,250 Stanislaus Fdg., 5.875%, 6/01/43 ........................................... 06/12 @ 100 2,361,775
A- 3,500 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.25%, 5/01/20 ....... 05/12 @ 101 3,524,395
A2 4,000 California Edl. Facs. Auth., Univ. of San Diego, Ser. A, 5.25%, 10/01/30 ..... 10/12 @ 100 3,932,320
BBB 3,270 California Hlth. Facs. Fin. Auth., Hlth. Facs. Valleycare, Ser. A,
5.375%, 5/01/27 ............................................................ 05/12 @ 100 3,157,348
AAA 18,855 California Hsg. Fin. Agcy., Home Mtg., Ser. K, Zero Coupon, 2/01/33, MBIA .... 02/12 @ 27.46 3,154,819
California Infrastructure & Econ. Dev.,
AAA 3,000 5.25%, 6/01/30, MBIA ....................................................... 06/07 @ 101 3,069,120
A 3,750 J. David Gladstone Inst. Proj., 5.25%, 10/01/34 ............................ 10/11 @ 101 3,568,762
AAA 3,500 Rand Corp., Ser. A, 5.25%, 4/01/42, AMBAC .................................. 04/12 @ 100 3,517,080
California Statewide Cmnty. Dev. Auth.,
A 5,000 Kaiser Permanente, Ser. A, 5.50%, 11/01/32 ................................. 11/12 @ 100 4,922,700
A+ 3,250 Sutter Hlth. Oblig. Grp., Ser. B, 5.625%, 8/15/42 .......................... 08/12 @ 100 3,254,225
NR 3,500(3) Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/14 ................... No Opt. Call 3,566,675
BBB 3,750 Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., 5.75%, 1/15/40 ....... 01/10 @ 101 3,822,675
BBB 3,000 Golden St. Tobacco Sec. Corp., Tobacco Settlement Rev., Ser. A-1,
6.75%, 6/01/39 ............................................................. 06/13 @ 100 2,480,610
Lathrop Fin. Auth., Wtr. Suply. Proj.,
NR 655 5.90%, 6/01/27 ............................................................. 06/13 @ 100 619,794
NR 1,180 6.00%, 6/01/35 ............................................................. 06/13 @ 100 1,124,221
Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc.,
B- 1,000 Ser. B, 7.50%, 12/01/24 .................................................... 12/12 @ 102 812,210
B- 680 Ser. C, 7.50%, 12/01/24 .................................................... 12/12 @ 102 552,303
Mult. Fam. Hsg.,
NR 2,240 San Lucas Apts., Ser. 5, 5.90%, 11/01/34 ................................... 06/12 @ 100 2,171,703
NR 2,425 Westgate Courtyard Apts., Ser. 3, 5.80%, 11/01/34 .......................... 12/11 @ 100 2,350,431
NR 2,400 Orange Cnty. Cmnty. Facs. Dist., Spl. Tax Rev., Ladera Ranch, Ser. A,
6.00%, 8/15/32 ............................................................. 08/10 @ 101 2,399,904
BBB 3,000 Palm Springs Mobile Home Park, Sahara Mobile Home Park, 5.75%, 5/15/37 ....... 05/12 @ 102 2,982,660
NR 2,500 San Francisco City & Cnty. Redev. Agcy., Cmnty. Facs. Dist.,
Mission Bay South, 6.25%, 8/01/33 .......................................... 08/11 @ 101 2,395,650
AAA 15,000 Santa Ana Unified Sch. Dist., COP, Zero Coupon, 4/01/29, FSA ................. No Opt. Call 3,510,450
AAA 2,500 Santa Clara Valley Wtr. Dist., Wtr. Util. Sys. Rev., Ser. A, 5.125%,
6/01/31, FGIC .............................................................. 06/10 @ 100 2,497,375
A+ 1,500 Torrance Hosp. Rev., Torrance Mem. Med Ctr., Ser. A, 5.50%, 6/01/31 .......... 06/11 @ 101 1,487,655
------------
TOTAL LONG-TERM INVESTMENTS (COST $75,837,346) ............................... 73,638,755
------------
------
SHARES
(000)
------
MONEY MARKET FUND--1.3%
NR 578 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $578,063) ........... N/A 578,063
------------
TOTAL INVESTMENTS--161.6% (COST $76,415,409) ................................. $ 74,216,818
Other assets in excess of liabilities--3.7% .................................. 1,701,353
Preferred shares at redemption value, including dividends payable--(65.3)% ... (29,978,104)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 45,940,067
============
----------
(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. This security
may be resold in transactions in accordance with Rule 144A under that Act,
to qualified institutional buyers. As of August 31, 2003, the Trust held
7.8% of its net assets, with a current market value of $3,566,675, in
securities restricted as to resale.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
--------------------------------------------------------------------------------
See Notes to Financial Statements.
25
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2003
------------------------------------------------
BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST II
------------------------------------------------
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
LONG-TERM INVESTMENTS--167.0%
Anaheim Pub. Fin. Auth., Pub. Impvt. Proj., Ser. C, FSA,
AAA $15,000 Zero Coupon, 9/01/34 ....................................................... No Opt. Call $ 2,557,650
AAA 10,000 Zero Coupon, 9/01/36 ....................................................... No Opt. Call 1,521,200
California Cnty. Tobacco Sec. Agcy.,
BBB 4,500 Gold Country Fdg. Corp., 6.00%, 6/01/38 .................................... 06/12 @ 100 3,442,455
BBB 5,515 Ser. B, 6.00%, 6/01/29 ..................................................... 06/12 @ 100 4,579,380
Baa2 1,600 Stanislaus Fdg., Ser. A, 5.875%, 6/01/43 ................................... 06/12 @ 100 1,162,720
A- 6,000 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.375%, 5/01/21 ...... 05/12 @ 101 6,070,980
AAA 6,000 California Edl. Facs. Auth., Institute of Tech., Ser. A, 5.00%, 10/01/32 ..... 10/11 @ 100 5,928,720
California Infrastructure & Econ. Dev., Ser. A,
AAA 5,000 Bay Area Toll Brdgs., 5.00%, 7/01/36, AMBAC ................................ 07/13 @ 100 4,885,250
A 1,735 Kaiser Hosp. Asst. LLC, 5.55%, 8/01/31 ..................................... 08/11 @ 102 1,731,877
AAA 2,500 Rand Corp., 5.25%, 4/01/42, AMBAC .......................................... 04/12 @ 100 2,512,200
A 3,500 California Mobile Home Park Fin. Auth., Palomar Estates East & West,
Ser. A, 5.25%, 3/15/34, ACA ................................................ 03/13 @ 102 3,259,375
California Statewide Cmnty. Dev. Auth.,
A 5,000 Kaiser Permanente, Ser. A, 5.50%, 11/01/32 ................................. 11/12 @ 100 4,922,700
A- 7,000 Mem. Hlth. Svcs., Ser. A, 5.50%, 10/01/33 .................................. 04/13 @ 100 6,900,950
A+ 8,000 Sutter Hlth. Oblig Corp., Ser. B, 5.50%, 8/15/34 ........................... 08/12 @ 100 7,979,680
California Statewide Fin. Auth., Tobacco Settlement Rev.,
BBB 5,000 Ser. A, 6.00%, 5/01/37 ..................................................... 05/12 @ 100 3,832,300
BBB 1,750 Ser. B, 6.00%, 5/01/43 ..................................................... 05/12 @ 100 1,289,645
AAA 6,000 Corona Norco Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist.
No. 98-1, 5.10%, 9/01/32, AMBAC ............................................ 09/12 @ 100 5,974,440
Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., Ser. A,
AAA 15,470(3) Zero Coupon, 1/01/26 ....................................................... ETM 4,567,208
AAA 4,890(3) Zero Coupon, 1/01/30 ....................................................... ETM 1,130,617
BBB 4,000 Golden St. Tobacco Sec. Corp., Tobacco Settlement Rev., Ser. A-1, 6.75%,
6/01/39 .................................................................... 06/13 @ 100 3,307,480
AAA 5,000 La Quinta Redev. Agcy. Tax Allocation, Redev. Proj. Area No. 1, 5.125%,
9/01/32, AMBAC ............................................................. 09/12 @ 102 4,995,800
Lathrop Fin. Auth., Wtr. Suply. Proj.,
NR 1,490 5.90%, 6/01/27 ............................................................. 06/13 @ 100 1,409,913
NR 2,680 6.00%, 6/01/35 ............................................................. 06/13 @ 100 2,553,316
AAA 5,500 Los Angeles Dept. of Wtr. & Pwr., Wtr. Wks. Rev., Ser. A, 5.125%,
7/01/41, FGIC .............................................................. 07/11 @ 100 5,460,840
B- 1,785 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc.,
Ser. C, 7.50%, 12/01/24 .................................................... 12/12 @ 102 1,449,795
Oxnard Impvt. Bond, Dist. No. 1 Spec. Assmt., 1 Rice Ave.,
NR 1,925 5.625%, 9/02/27 ............................................................ 03/04 @ 103 1,804,341
NR 1,915 5.70%, 9/02/32 ............................................................. 03/04 @ 103 1,784,416
AAA 5,000 Poway Redev. Agcy. Tax Allocation, Paguay Redev. Proj., 5.125%,
6/15/33, AMBAC ............................................................. 12/11 @ 101 4,995,200
Poway Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist. No. 6,
NR 1,500 5.50%, 9/01/25 ............................................................. 09/10 @ 102 1,379,310
NR 1,700 5.60%, 9/01/33 ............................................................. 09/10 @ 102 1,596,487
BBB 2,470 Rohnert Park Fin. Auth., Rancho Feliz Mobile Home Park, Ser. A,
5.625%, 9/15/28 ............................................................ 09/13 @ 100 2,366,112
AAA 5,000 Sacramento City Fin. Auth., Cap. Impvt., Ser. A, 5.00%, 12/01/32, AMBAC ...... 06/11 @ 100 4,902,900
NR 6,000 San Bernardino Cnty., Spec. Tax Rev., Cmnty. Facs., 5.90%, 9/01/33 ........... 09/12 @ 102 5,602,080
San Diego Unified Sch. Dist., Ser. D, FGIC,
AAA 8,000 5.00%, 7/01/27 ............................................................. 07/12 @ 100 7,901,600
AAA 8,665 5.25%, 7/01/23 ............................................................. 07/12 @ 101 8,876,686
NR 5,000 San Francisco City & Cnty. Redev. Agcy., Cmnty. Facs. Dist.,
Mission Bay South, 6.25%, 8/01/33 .......................................... 08/11 @ 101 4,791,300
AAA 30,000 San Joaquin Hills Transp. Corridor Agcy., Toll Road Rev., Ser. A,
Zero Coupon, 1/15/34, MBIA ................................................. No Opt. Call 5,302,200
NR 8,000 San Jose Mult. Fam. Hsg., Helzer Courts Apts. Proj., Ser. A,
6.40%, 12/01/41 ............................................................ 12/09 @ 102 7,544,160
Santa Clarita Facs. Dist., Valencia Town Ctr.,
NR 1,640 5.80%, 11/15/25 ............................................................ 11/10 @ 102 1,568,906
NR 1,500 5.85%, 11/15/32 ............................................................ 11/10 @ 102 1,429,410
AAA 2,685 Santa Rosa Wstwtr., Ser. B, Zero Coupon, 9/01/25, AMBAC ...................... No Opt. Call 778,462
BBB- 2,200 So. Tahoe Joint Pwr. Fin. Auth., So. Tahoe Redev. Proj. 1-A,
5.45%, 10/01/33 ............................................................ 10/13 @ 100 2,046,858
See Notes to Financial Statements.
26
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
Tustin Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist. 97-1,
AAA $5,000 Ser. A, 5.00%, 9/01/38, FSA ................................................ 09/12 @ 100 $ 4,864,750
NR 2,000 Ser. B, 5.60%, 9/01/29 ..................................................... 09/12 @ 101 1,901,640
AAA 2,000 Univ. of California, Ser. A, 5.00%, 5/15/33, AMBAC ........................... 05/13 @ 100 1,960,920
NR 1,170 Val Verde Unified School Dist. Fin. Auth., Spec. Tax Rev., 6.25%, 10/01/28 ... 10/13 @ 102 1,113,196
A2 2,000 Vernon Elec. Sys., Malburg Generating Station Proj., 5.50%, 4/01/33 .......... 04/08 @ 100 1,948,920
------------
TOTAL LONG-TERM INVESTMENTS (COST $178,010,739) .............................. 169,886,345
------------
------
SHARES
(000)
------
MONEY MARKET FUNDS--5.6%
NR 5,050 AIM Tax Free Investment Co. Cash Reserve Portfolio ........................... N/A 5,050,000
NR 650 SSgA Tax Free Money Mkt. Fund ................................................ N/A 650,000
------------
TOTAL MONEY MARKET FUNDS (COST $5,700,000) ................................... 5,700,000
------------
TOTAL INVESTMENTS--172.6% (COST $183,710,739) ................................ $175,586,345
Liabilities in excess of other assets--(1.9)% ................................ (1,891,766)
Preferred shares at redemption value, including dividends payable--(70.7)% ... (71,956,432)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $101,738,147
============
----------
(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 security is collateralized by U.S. Treasury obligations.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
ACA -- American Capital Access
AMBAC -- American Municipal Bond Assurance Corporation
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Insurance Association
--------------------------------------------------------------------------------
See Notes to Financial Statements.
27
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2003
--------------------------------------------------
BLACKROCK FLORIDA INSURED MUNICIPAL INCOME TRUST
--------------------------------------------------
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
LONG-TERM INVESTMENTS--161.6%
FLORIDA--155.3%
Capital Trust Agcy. Multi-Fam., American Opp.,
Baa1 $ 1,000 Ser. A, 5.875%, 12/01/38 ................................................... 06/11 @ 102 $ 912,870
Baa3 1,000 Ser. C, 7.25%, 12/01/38 .................................................... 06/11 @ 102 938,770
NR 4,000 Colonial Cntry. Club Comnty. Dev. Dist., Cap. Impvt. Rev., 6.40%, 5/01/33 .... 05/12 @ 100 3,992,640
Florida Brd. of Ed.,
AAA 9,000 GO, Ser. A, 5.00%, 6/01/27, FSA ............................................ 06/12 @ 101 8,950,860
AAA 8,640 Lottery Rev., Ser. C, 5.00%, 1/01/22, MBIA ................................. 01/13 @ 101 8,677,066
AAA 7,000 Florida Dept. of Transp., 5.00%, 7/01/27, FSA ................................ 07/12 @ 101 6,961,780
AAA 9,695 Gainesville Util. Sys., Ser. A, 5.00%, 10/01/33, FSA ......................... 10/13 @ 100 9,563,633
A 8,500 Highlands Cnty. Hlth. Facs. Auth., Hosp. Adventist/Sunbelt, Ser. A,
6.00%, 11/15/31 ............................................................ 11/11 @ 101 8,766,050
AAA 7,580 Hillsborough Cnty. Sch. Brd., COP, Ser. A, 5.00%, 7/01/25, MBIA .............. 07/10 @ 100 7,540,053
Jacksonville,
AAA 8,000 Excise Tax, Ser. B, 5.00%, 10/01/26, AMBAC ................................. 10/12 @ 100 7,968,000
AAA 9,500 Sales Tax, 5.00%, 10/01/27, MBIA ........................................... 10/13 @ 100 9,448,225
AAA 9,500 Transp., 5.00%, 10/01/31, MBIA ............................................. 10/11 @ 100 9,374,695
AAA 2,865 Jacksonville Cap. Impvt., Ser. A, 5.00%, 10/01/30, AMBAC ..................... 10/12 @ 100 2,836,121
AAA 1,480 Julington Creek Plantation Cmnty. Dev., Assmt. Rev., 5.00%, 5/01/29, MBIA .... 05/12 @ 101 1,467,479
AAA 9,000 Lake Cnty. Sch. Brd., COP, Ser. A, 5.00%, 7/01/28, AMBAC ..................... 07/13 @ 100 8,937,450
AAA 26,935 Miami Dade Cnty., Spec. Oblig. Rev., Ser. B, Zero Coupon, 10/01/31, MBIA ..... 04/08 @ 28.079 5,117,111
AAA 7,975 Orange Cnty., Sales Tax, Ser. B, 5.125%, 1/01/32, FGIC ....................... 01/13 @ 100 7,990,870
AAA 2,000 Orange Cnty. Sch. Brd., COP, Ser. A, 5.00%, 8/01/27, MBIA .................... 08/12 @ 100 1,980,880
AAA 9,250 Orange Cnty. Tourist Dev., Tax Rev., 5.125%, 10/01/30 ........................ 04/12 @ 100 9,247,595
AAA 4,000 Osceola Cnty. Sch. Brd., COP, Ser. A, 5.25%, 6/01/27, AMBAC .................. 06/12 @ 101 4,052,560
Palm Bay Util., FGIC,
AAA 4,015 Zero Coupon, 10/01/28 ...................................................... No Opt. Call 997,687
AAA 5,570 Zero Coupon, 10/01/31 ...................................................... No Opt. Call 1,168,141
AAA 9,200 Palm Beach Cnty. Sch. Brd., COP, Ser. D, 5.00%, 8/01/28, FSA ................. 08/12 @ 100 9,097,512
AA- 5,000 Pinellas Cnty. Hlth. Fac. Auth., Baycare Hlth. Sys., 5.50%, 11/15/33 ......... 05/13 @ 100 4,801,950
AAA 9,500 Pinellas Cnty. Swr., 5.00%, 10/01/32, FSA .................................... 10/13 @ 100 9,372,890
AAA 5,000 Polk Cnty. Util. Sys., 5.00%, 10/01/29, FGIC ................................. 10/13 @ 100 4,957,550
AAA 2,325 Port St. Lucie Util., 5.125%, 9/01/31, MBIA .................................. 07/12 @ 100 2,328,883
AAA 2,945 Sarasota Cnty. Util. Sys., Ser. C, 5.25%, 10/01/22, FGIC ..................... 10/12 @ 100 3,024,692
Aa3 2,250 So. Broward Hosp. Dist., 5.60%, 5/01/27 ...................................... 05/12 @ 101 2,287,890
AAA 3,500 St. Petersburg Pub. Util., Ser. A, 5.00%, 10/01/28, FSA ...................... 10/09 @ 101 3,475,675
AAA 2,000 Tampa Bay Wtr. Util. Sys., Ser. A, 5.00%, 10/01/28, FGIC ..................... 10/11 @ 100 1,986,100
Village Cmnty. Dev., Assmt. Rev.,
NR 5,000 Ser. A, 6.50%, 5/01/33 ..................................................... 05/13 @ 101 4,982,350
NR 1,000 Ser. B, 5.40%, 5/01/07 ..................................................... No Opt. Call 1,000,280
AAA 12,000 Village Cntr. Cmnty. Dev. Dist., Ser. A, 5.00%, 11/01/32, MBIA ............... 11/13 @ 101 11,838,960
------------
186,045,268
------------
PUERTO RICO--6.3%
BBB 9,405 Children's Trust Fund, Tobacco Settlement, 5.625%, 5/15/43 ................... 05/12 @ 100 7,458,917
------------
TOTAL INVESTMENTS--161.6% (COST $198,273,305) ................................ $193,504,185
Other assets in excess of liabilities--1.9% .................................. 2,283,978
Preferred shares at redemption value, including dividends payable--(63.5)% ... (76,010,006)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $119,778,157
============
----------
(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.
Securities that are covered by insurance, which ensures the timely payment
of principal and interest, represent approximately 81.8% of the Trust's
total investments.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
--------------------------------------------------------------------------------
See Notes to Financial Statements.
28
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2003
----------------------------------------
BLACKROCK FLORIDA MUNICIPAL BOND TRUST
----------------------------------------
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
LONG-TERM INVESTMENTS--161.9%
FLORIDA--148.8%
AAA $ 1,250 Bay Cnty., Sales Tax Rev., 5.125%, 9/01/32, AMBAC ............................ 09/12 @ 100 $ 1,252,450
AAA 1,000 Boynton Beach Multi. Fam., Clipper Cove Apts., 5.30%, 1/01/23, ACA ........... 01/13 @ 100 999,440
Baa1 1,000 Capital Trust Agcy. Multi-Fam., American Opp., Ser. A, 5.875%, 6/01/38 ....... 06/11 @ 102 912,870
NR 3,000(3) Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/14 ................... No Opt. Call 3,057,150
NR 1,690 Colonial Cntry. Club Comnty. Dev. Dist., Cap. Impvt. Rev., 6.40%, 5/01/33 .... 05/13 @ 101 1,686,890
AAA 3,150 Florida Mun. Loan Council, Ser. A, 5.125%, 5/01/32, MBIA ..................... 05/12 @ 101 3,156,552
NR 1,180 Gateway Svcs. Cmnty. Dev. Dist., Spec. Assessment, Stoneybrook Proj.,
5.50%, 7/01/08 ............................................................. No Opt. Call 1,176,554
AAA 3,100 Greater Orlando Aviation Auth., Orlando Arpt. Facs., Ser. A, 5.125%,
10/01/32, FSA .............................................................. 10/12 @ 100 3,106,045
A 4,900 Highlands Cnty. Hlth. Facs. Auth., Hosp. Adventist/Sunbelt, Ser. A,
6.00%, 11/15/31 ............................................................ 11/11 @ 101 5,053,370
BBB+ 1,810 Hillsborough Cnty. Ind. Dev. Auth., PCR, Tampa Elec. Co. Proj., 5.50%,
10/01/23 ................................................................... 10/12 @ 100 1,724,948
AA 3,500 Jacksonville Econ. Dev. Comm. Hlth. Facs., Mayo Clinic, Ser. B, 5.50%,
11/15/36 ................................................................... 11/11 @ 101 3,561,810
AA 5,000 JEA Elec. Sys., Ser. A, 5.50%, 10/01/41 ...................................... 10/07 @ 100 5,073,650
AAA 5,425 JEA Wtr. & Swr. Sys., Ser. A, 5.375%, 10/01/30, MBIA ......................... 04/07 @ 100 5,538,654
A1 3,000 Lakeland Hosp. Sys., Lakeland Regl. Hlth. Sys., 5.50%, 11/15/32 .............. 11/12 @ 101 2,911,530
Miami Dade Cnty., Spec. Oblig. Rev., MBIA,
AAA 5,500 Ser. A, Zero Coupon, 10/01/26 .............................................. 04/08 @ 37.301 1,440,505
AAA 10,000 Ser. B, Zero Coupon, 10/01/30 .............................................. 04/08 @ 29.688 2,026,600
AAA 5,410 Ser. B, Zero Coupon, 10/01/32 .............................................. 04/08 @ 26.494 968,606
A2 5,000 Orange Cnty. Hlth. Facs. Auth., Orlando Regl. Hlth. Care, 5.75%, 12/01/32 .... 12/12 @ 100 5,004,750
AAA 3,350 Orange Cnty. Tourist Dev., Tax Rev., 5.125%, 10/01/30, AMBAC ................. 04/12 @ 100 3,349,129
AAA 3,105 Osceola Cnty. Tourist Dev., Tax Rev., Ser. A, 5.00%, 10/01/32, FGIC .......... 10/12 @ 100 3,063,455
AAA 3,630 Palm Bay Util., Zero Coupon, 10/01/28, FGIC .................................. No Opt. Call 902,019
AAA 3,000 Palm Beach Cnty. Sch. Brd., COP, Ser. C, 5.00%, 8/01/27, FSA ................. 08/12 @ 100 2,971,320
AAA 3,000 Port St. Lucie Util., 5.125%, 9/01/31, MBIA .................................. 09/11 @ 100 3,005,010
Aa3 2,000 So. Broward Hosp. Dist., 5.60%, 5/01/27 ...................................... 05/12 @ 101 2,033,680
NR 2,850 Sumter Cnty. Indl. Dev. Auth., No. Sumter Util. Co. LLC, 6.80%, 10/01/32 ..... 10/09 @ 100 2,828,369
NR 1,900 Village Cmnty. Dev., Assmt. Rev., Ser. A, 6.50%, 5/01/33 ..................... 05/13 @ 101 1,893,293
Volusia Cnty Edl. Fac. Auth., Embry Riddle Aeronautical, RAA,
AA 1,250 5.20%, 10/15/26 ............................................................ 10/13 @ 100 1,228,550
AA 1,610 5.20%, 10/15/33 ............................................................ 10/13 @ 100 1,576,673
------------
71,503,872
------------
PUERTO RICO--13.1%
BBB 3,500 Children's Trust Fund, Tobacco Settlement, 5.625%, 5/15/43 ................... 05/12 @ 100 2,775,780
A- 3,500 Puerto Rico Pub. Bldgs. Auth., Gov't. Facs., Ser. D, 5.25%, 7/01/36 .......... 07/12 @ 100 3,497,795
------------
6,273,575
------------
TOTAL INVESTMENTS--161.9% (COST $77,458,533) ................................. $ 77,777,447
Other assets in excess of liabilities--0.1% .................................. 42,203
Preferred shares at redemption value, including dividends payable--(62.0)% ... (29,777,613)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 48,042,037
============
----------
(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. This security
may be resold in transactions in accordance with Rule 144A under that Act,
to qualified institutional buyers. As of August 31, 2003, the Trust held
6.4% of its net assets, with a current market value of $3,057,150, in
securities restricted as to resale.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
ACA -- American Capital Access
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Insurance Association
PCR -- Pollution Control Revenue
RAA -- Radian Asset Assurance
--------------------------------------------------------------------------------
See Notes to Financial Statements.
29
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2003
-----------------------------------------
BLACKROCK MARYLAND MUNICIPAL BOND TRUST
-----------------------------------------
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
LONG-TERM INVESTMENTS--158.2%
MARYLAND--132.4%
A3 $2,870 Anne Arundel Cnty. Econ. Dev., Cmnty. Coll. Proj., 5.25%, 9/01/28 ............ 09/12 @ 102 $ 2,838,803
NR 1,000 Baltimore, Spec. Oblig. Rev., Harborview Lot No. 2, 6.50%, 7/01/31 ........... 07/13 @ 101 974,760
Baltimore Cnty., GO,
AAA 2,000 Met. 67th Dist., 5.00%, 6/01/22 ............................................ 06/11 @ 101 2,029,740
AAA 2,000 Met. 68th Dist., 5.00%, 8/01/28 ............................................ 08/12 @ 100 2,000,260
Baltimore Wstwtr. Proj., Ser. A, FGIC,
AAA 2,000 5.125%, 7/01/42 ............................................................ 07/12 @ 100 1,985,660
AAA 3,500 5.20%, 7/01/32 ............................................................. 07/12 @ 100 3,529,890
NR 2,0003 Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/14 ................... No Opt. Call 2,038,100
Aa2 1,730 Maryland Dept. Hsg. & Cmnty. Dev. Admin., Sngl. Fam. Prog., Ser. 2,
6.55%, 4/01/26 ............................................................. 04/05 @ 102 1,780,239
Baa3 1,500 Maryland Econ. Dev. Corp., Student Hsg. Rev., Univ. of Maryland, Ser. A,
5.75%, 10/01/33 ............................................................ 10/13 @ 100 1,478,805
Maryland Hlth. & Higher Edl. Facs. Auth.,
A 2,000 Brd. of Child Care, 5.375%, 7/01/32 ........................................ 07/12 @ 100 1,990,080
BBB+ 1,990 Carroll Cnty. Gen. Hosp., 6.00%, 7/01/37 ................................... 07/12 @ 100 2,028,566
AA 2,000 Johns Hopkins Univ., Ser. B, 5.00%, 7/01/41 ................................ 07/11 @ 100 1,963,980
A 2,000 Loyola Coll. Issue, 5.00%, 10/01/39 ........................................ 10/09 @ 101 1,948,480
A3 2,000 Union Hosp. of Cecil Cnty., 5.625%, 7/01/32 ................................ 07/12 @ 100 2,003,800
A 2,000 Univ. of Maryland Med. Sys., 5.25%, 7/01/34 ................................ 07/11 @ 100 1,906,720
A+ 1,905 Maryland Ind. Dev. Fin. Auth., Econ. Dev. Rev., Nat'l. Aquarium Baltimore
Fac., Ser. B, 5.20%, 11/01/26 .............................................. 11/12 @ 100 1,879,740
AAA 2,000 Maryland Transp. Auth., Arpt. Pkg. Rev., Baltimore/Wash Intl. Arpt.,
Ser. B, 5.125%, 3/01/24, AMBAC ............................................. 03/12 @ 101 1,983,700
Montgomery Cnty. Lease, Metrorail Garage Proj.,
AA 500 5.00%, 6/01/23 ............................................................. 06/12 @ 100 503,565
AA 1,435 5.00%, 6/01/24 ............................................................. 06/12 @ 100 1,441,170
St. Mary's Coll., Academic & Auxil. Fees, Ser. A, AMBAC,
AAA 1,000 5.00%, 9/01/27 ............................................................. 09/12 @ 101 999,520
AAA 1,000 5.00%, 9/01/32 ............................................................. 09/12 @ 101 994,190
------------
38,299,768
------------
PUERTO RICO--25.8%
BBB 2,000 Children's Trust Fund, Tobacco Settlement, 5.625%, 5/15/43 ................... 05/12 @ 100 1,586,160
A 2,000 Puerto Rico Comnwlth. Hwy. & Transp. Auth., Ser. D, 5.25%, 7/01/38 ........... 07/12 @ 100 1,998,740
AAA 2,060 Puerto Rico Elec. Pwr. Auth., Ser. HH, 5.25%, 7/01/29, FSA ................... 07/10 @ 101 2,111,747
Puerto Rico Pub. Bldgs. Auth., Gov't. Facs., Ser. D,
A- 250 5.25%, 7/01/36 ............................................................. 07/12 @ 100 249,843
A- 1,500 5.375%, 7/01/33 ............................................................ 07/12 @ 100 1,522,770
------------
7,469,260
------------
TOTAL LONG-TERM INVESTMENTS (COST $45,648,839) ............................... 45,769,028
------------
------
SHARES
(000)
------
MONEY MARKET FUND--1.5%
NR 419 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $418,948) ........... N/A 418,948
------------
TOTAL INVESTMENTS--159.7% (COST $46,067,787) ................................. $ 46,187,976
Other assets in excess of liabilities--2.5% .................................. 735,862
Preferred shares at redemption value, including dividends payable--(62.2)% ... (18,001,185)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 28,922,653
============
----------
(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. This security
may be resold in transactions in accordance with Rule 144A under that Act,
to qualified institutional buyers. As of August 31, 2003, the Trust held
7.0% of its net assets, with a current market value of $2,038,100, 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
--------------------------------------------------------------------------------
See Notes to Financial Statements.
30
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2003
-------------------------------------------
BLACKROCK NEW JERSEY MUNICIPAL BOND TRUST
-------------------------------------------
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
LONG-TERM INVESTMENTS--160.6%
NEW JERSEY--130.3%
NR $ 2,0003 Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/14 ................... No Opt. Call $ 2,038,100
AAA 10,000 Garden St. Pres. Trust, Open Space & Farmland Pres., Ser. B, Zero Coupon,
11/01/27, FSA .............................................................. No Opt. Call 2,645,900
New Jersey Econ. Dev. Auth.,
B 2,335 Continental Airlines Inc. Proj., 7.00%, 11/15/30 ........................... 11/10 @ 101 1,981,108
BBB- 2,000 Fellowship Village, Ser. A, 5.50%, 1/01/25 ................................. 01/08 @ 102 1,891,500
Baa3 4,750 Kapkowski Road Landfill Proj., 6.50%, 4/01/28 .............................. No Opt. Call 5,250,460
Aaa 1,780 Victoria Hlth., Ser. A, 5.20%, 12/20/36 .................................... 12/11 @ 103 1,790,555
New Jersey Edl. Facs. Auth.,
BBB- 1,000 Fairleigh Dickinson Univ., Ser. D, 6.00%, 7/01/25 .......................... 07/13 @ 100 993,830
BBB+ 630 Georgian Court Coll. Proj. C, 6.50%, 7/01/33 ............................... 07/13 @100 669,589
New Jersey Hlth. Care Fac. Fin. Auth.,
A- 2,000 Atlantic City Med. Ctr., 5.75%, 7/01/25 .................................... 07/12 @ 100 2,035,020
A+ 2,000 Catholic Hlth. East, Ser. A, 5.375%, 11/15/33 .............................. 11/12 @ 100 1,964,000
A3 2,000 Kennedy Hlth. Sys., 5.625%, 7/01/31 ........................................ 07/11 @ 100 1,996,700
Baa1 2,500 So. Jersey Hosp., 6.00%, 7/01/32 ........................................... 07/12 @ 100 2,483,300
AAA 2,250 New Jersey Hsg. & Mtg. Fin. Agcy., Mult. Fam. Hsg. Rev., Ser. A,
5.65%, 5/01/40, AMBAC ...................................................... 11/07 @ 101.5 2,311,537
Port Auth. of NY & NJ,
AAA 1,500 Ser. 125, 5.00%, 4/15/32, FSA .............................................. 04/12 @ 101 1,500,495
AAA 2,250 Ser. 126, 5.25%, 5/15/37, FGIC ............................................. 05/12 @ 101 2,236,433
Caa2 130 Spec. Oblig., Cont'l/Eastern Proj. LaGuardia, 4.125%, 12/01/15 ............. 09/03 @ 100 128,840
BBB 7,000 Tobacco Settlement Fin. Corp., 6.125%, 6/01/42 ............................... 06/12 @ 100 5,234,390
AAA 1,000 Univ. of Med. & Dentistry, Ser. A, 5.00%, 12/01/31, AMBAC .................... 12/12 @ 100 992,680
Vineland, GO, MBIA,
AAA 1,000 5.30%, 5/15/29 ............................................................. 05/10 @ 101 1,008,740
AAA 1,500 5.375%, 5/15/32 ............................................................ 05/10 @ 101 1,527,825
------------
40,681,002
------------
PUERTO RICO--30.3%
A 4,900 Puerto Rico Comnwlth. Hwy. & Transp. Auth., Ser. D, 5.25%, 7/01/38 ........... 07/12 @ 100 4,896,913
A- 2,250 Puerto Rico Elec. Pwr. Auth., Ser. II, 5.25%, 7/01/34 ........................ 07/12 @ 101 2,257,313
A- 2,300 Puerto Rico Pub. Bldgs. Auth., Gov't. Facs., Ser. D, 5.25%, 7/01/27 .......... 07/12 @ 100 2,311,477
------------
9,465,703
------------
TOTAL LONG-TERM INVESTMENTS (COST $51,410,087) ............................... 50,146,705
------------
------
SHARES
(000)
------
MONEY MARKET FUND--2.7%
NR 841 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $841,034) ........... N/A 841,034
------------
TOTAL INVESTMENTS--163.3% (COST $52,251,121) ................................. $ 50,987,739
Other assets in excess of liabilities--1.5% .................................. 465,943
Preferred shares at redemption value, including dividends payable--(64.8)% ... (20,227,559)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ............................ $ 31,226,123
============
----------
(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. This security
may be resold in transactions in accordance with Rule 144A under that Act,
to qualified institutional buyers. As of August 31, 2003, the Trust held
6.5% of its net assets, with a current market value of $2,038,100, 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
--------------------------------------------------------------------------------
See Notes to Financial Statements.
31
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2003
---------------------------------------------------
BLACKROCK NEW YORK INSURED MUNICIPAL INCOME TRUST
---------------------------------------------------
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
LONG-TERM INVESTMENTS--162.4%
NEW YORK--139.8%
BBB- $ 1,000 Herkimer Cnty. Indl. Dev. Agcy., Civic Fac. Rev., Coll. Foundation Inc.
Student Hsg., 6.25%, 8/01/34 ............................................... 08/13 @ 100 $ 1,024,170
Met. Transp. Auth.,
AAA 1,085 Ser. A, 5.00%, 11/15/25, FGIC .............................................. 11/12 @ 100 1,079,238
AAA 8,470 Ser. A, 5.00%, 11/15/30, FSA ............................................... 11/12 @ 100 8,371,833
AAA 5,000 Ser. A, 5.25%, 11/15/31, FGIC .............................................. 11/12 @ 100 5,073,550
AAA 2,910 Ser. E, 5.25%, 11/15/31, FGIC .............................................. 11/12 @ 100 2,952,806
AAA 5,000 Dedicated Tax Fund, Ser. A, 5.00%, 11/15/28, FSA ........................... 11/12 @ 100 4,950,900
AAA 5,000 Dedicated Tax Fund, Ser. A, 5.00%, 11/15/31, FGIC .......................... 11/11 @ 100 4,933,750
AAA 10,000 Svc. Contract Rev., Ser. A, 5.00%, 7/01/30, AMBAC .......................... 07/12 @ 100 9,884,800
A 2,500 New York City Indl. Dev. Agcy., Lycee Francais De Proj., Ser. A, 5.375%,
6/01/23, ACA ............................................................... 12/12 @ 100 2,483,125
AAA 4,500 New York City Mun. Wtr. Fin. Auth., Ser. A, 5.125%, 6/15/34, FSA ............. 06/12 @ 100 4,508,235
AAA 7,000 New York City Transl. Fin. Auth., Wtr. & Swr. Sys., Ser. B, 5.00%,
5/01/30, AMBAC ............................................................. 11/11 @ 101 6,919,570
New York Dorm. Auth.,
AAA 5,000 Brooklyn Law School, Ser. B, 5.125%, 7/01/30, XLCA ......................... 07/13 @ 100 4,995,300
AAA 7,000 Hosp. Lutheran Med., 5.00%, 8/01/31, MBIA .................................. 02/13 @ 100 6,907,880
AAA 3,160 Iona Coll., 5.00%, 7/01/27, XLCA ........................................... 07/12 @ 100 3,134,088
Aa3 3,000 Joachim & Ann Residence, 5.25%, 7/01/27 .................................... 07/12 @ 100 2,908,860
AAA 10,000 Memorial Sloan Kettering Ctr., Ser. 1, Zero Coupon, 7/01/30, MBIA .......... No Opt. Call 2,290,200
AAA 5,000 New York & Presbyterian Hosp., 5.00%, 8/01/32, AMBAC ....................... 02/08 @ 101 4,933,250
AAA 7,000 New York Univ., Ser. 2, 5.00%, 7/01/41, AMBAC .............................. 07/11 @ 100 6,839,490
AAA 2,000 Sch. Dist. Fin., Ser. A, 5.00%, 4/01/31, MBIA .............................. 10/12 @ 100 1,973,820
AAA 3,500 Sch. Dist. Fin., Ser. D, 5.00%, 10/01/30, MBIA ............................. 10/12 @ 100 3,459,610
AAA 7,000 St. Barnabas, Ser. A, 5.00%, 2/01/31, AMBAC ................................ 08/12 @ 100 6,908,580
AAA 5,000 Univ. Dorm. Facs., 5.00%, 7/01/32, MBIA .................................... 07/12 @ 100 4,933,200
AAA 2,000 Winthrop Univ. Hosp. Assoc., Ser. A, 5.25%, 7/01/31, AMBAC ................. 07/11 @ 101 2,028,400
AAA 2,500 New York Urban Dev. Corp., Ser. C-1, 5.00%, 3/15/33, FGIC .................... 03/13 @ 100 2,466,400
AAA 10,000 Triborough Brdg. & Tunl. Auth., Ser. E, 5.00%, 11/15/32, MBIA ................ 11/12 @ 100 9,865,700
A3 6,000 TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32 .................. 07/12 @ 100 5,031,180
------------
120,857,935
------------
PUERTO RICO--22.6%
BBB 11,000 Children's Trust Fund, Tobacco Settlement, 5.625%, 5/15/43 ................... 05/12 @ 100 8,723,880
A 5,000 Puerto Rico Indl. Fin. Auth., Med. & Env. Ctrl. Facs., Polytecnic Univ.,
Ser. A, 5.00%, 8/01/32, ACA ................................................ 08/12 @ 100 4,765,750
AAA 6,000 Puerto Rico Mun. Fin. Agcy., Ser. A, 5.00%, 8/01/27, FSA ..................... 08/12 @ 100 6,026,520
------------
19,516,150
------------
TOTAL LONG-TERM INVESTMENTS (COST $145,098,029) .............................. 140,374,085
------------
------
SHARES
(000)
------
MONEY MARKET FUND--0.5%
NR 400 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $400,000) ........... N/A 400,000
------------
TOTAL INVESTMENTS--162.9% (COST $145,498,029) ................................ $140,774,085
Other assets in excess of liabilities--1.9% .................................. 1,660,616
Preferred shares at redemption value, including dividends payable--(64.8)% ... (56,003,686)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 86,431,015
============
----------
(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.
Securities that are covered by insurance, which ensures the timely payment
of principal and interest, represent approximately 89.2% of the Trust's
total investments.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
ACA -- American Capital Access
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Insurance Association
XLCA -- XL Capital Assurance
--------------------------------------------------------------------------------
See Notes to Financial Statements.
32
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2003
-----------------------------------------
BLACKROCK NEW YORK MUNICIPAL BOND TRUST
-----------------------------------------
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
LONG-TERM INVESTMENTS--160.0%
NEW YORK--121.3%
NR $2,5003 Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/14 ................... No Opt. Call $ 2,547,625
AA 2,000 Dutchess Cnty. Ind. Dev. Agcy., Civic Facs. Rev., Vassar Coll. Proj.,
5.35%, 9/01/40 ............................................................. 08/11 @ 101 2,031,400
A 3,000 Met. Transp. Auth., Dedicated Tax Fund, Ser. A, 5.125%, 11/15/31 ............. 11/12 @ 100 2,936,820
A+ 3,000 New York City, GO, Ser. D, 5.375%, 6/01/32 ................................... 06/12 @ 100 3,011,580
A3 1,100 New York City Hlth. & Hosp. Corp., Hlth. Sys., Ser. A, 5.375%, 2/15/26 ....... 02/12 @ 100 1,092,245
AA 2,500 New York City Hsg. Dev. Corp., Mult. Fam. Hsg. Rev., Ser. A,
5.50%, 11/01/34 ............................................................ 05/12 @ 100 2,513,475
AAA 2,500 New York City Mun. Wtr. Fin. Auth., Ser. A, 5.25%, 6/15/33, FGIC ............. 06/11 @ 100 2,531,725
New York Dorm. Auth.,
AA- 2,750 City Univ., Ser. A, 5.25%, 7/01/31 ......................................... 07/11 @ 100 3,047,907
AAA 2,500 Iona Coll., 5.125%, 7/01/32, XLCA .......................................... 07/12 @ 100 2,504,625
A- 3,000 Lenox Hill Hosp. Oblig. Grp., 5.50%, 7/01/30 ............................... 07/11 @ 101 3,023,580
AAA 2,500 Willow Towers Inc. Proj., 5.40%, 2/01/34 ................................... 08/12 @ 101 2,547,350
AAA 2,750 New York Env. Facs. Corp., Mun. Wtr. Proj., Ser. D, 5.125%, 6/15/31 .......... 06/12 @ 100 2,755,033
Aa1 3,000 New York Mtg. Agcy., Ser. 101, 5.40%, 4/01/32 ................................ 10/11 @ 100 3,009,600
AA 5,000 New York Urban Dev. Corp., Ser. A, 5.25%, 3/15/32 ............................ 03/12 @ 100 4,986,300
Port Auth. of NY & NJ,
AAA 2,750 Ser. 126, 5.25%, 5/15/37, FGIC ............................................. 05/12 @ 101 2,733,418
Caa2 2,600 Spec. Oblig., Cont'l/Eastern Proj. LaGuardia, 9.125%, 12/01/15 ............. 09/03 @ 100 2,576,808
A3 3,000 TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32 .................. 07/12 @ 100 2,515,590
------------
46,365,081
------------
PUERTO RICO--38.7%
BBB 5,150 Children's Trust Fund, Tobacco Settlement, 5.625%, 5/15/43 ................... 05/12 @ 100 4,084,362
A- 3,000 Puerto Rico, GO, Ser. A, 5.125%, 7/01/31 ..................................... 07/11 @ 100 2,967,480
A 3,000 Puerto Rico Comnwlth. Hwy. & Transp. Auth., Ser. D, 5.25%, 7/01/38 ........... 07/12 @ 100 2,998,110
A- 2,000 Puerto Rico Elec. Pwr. Auth., Ser. II, 5.25%, 7/01/31 ........................ 07/12 @ 101 2,006,500
A- 2,700 Puerto Rico Pub. Bldgs. Auth., Gov't. Facs., Ser. D, 5.25%, 7/01/27 .......... 07/12 @ 100 2,713,473
------------
14,769,925
------------
TOTAL LONG-TERM INVESTMENTS (COST $61,327,033) ............................... 61,135,006
------------
------
SHARES
(000)
------
MONEY MARKET FUND--1.8%
NR 682 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $682,409) ........... N/A 682,409
------------
TOTAL INVESTMENTS--161.8% (COST $62,009,442) ................................. $ 61,817,415
Other assets in excess of liabilities--1.5% .................................. 592,377
Preferred shares at redemption value, including dividends payable--(63.3)% ... (24,202,552)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 38,207,240
============
----------
(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. This security
may be resold in transactions in accordance with Rule 144A under that Act,
to qualified institutional buyers. As of August 31, 2003, the Trust held
6.7% of its net assets, with a current market value of $2,547,625, in
securities restricted as to resale.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
FGIC -- Financial Guaranty Insurance Company
GO -- General Obligation
XLCA -- XL Capital Assurance
--------------------------------------------------------------------------------
See Notes to Financial Statements.
33
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2003
----------------------------------------------
BLACKROCK NEW YORK MUNICIPAL INCOME TRUST II
----------------------------------------------
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
LONG-TERM INVESTMENTS--164.8%
NEW YORK--149.9%
Aaa $1,750 Clarence Indl. Dev. Agcy., Civic Fac. Rev., Bristol Village Proj.,
6.00%, 1/20/44 .............................................................. 01/13 @ 102 $ 1,866,655
AA 6,000 Dutchess Cnty. Ind. Dev. Agcy., Civic Facs. Rev., Vassar Coll. Proj.,
5.35%, 9/01/40 .............................................................. 08/11 @ 101 6,094,200
BBB 625 Essex Cnty. Indl. Dev. Agcy., Solid Wst. Disp. Rev., Intl. Paper Co. Proj.,
Ser. A, 5.50%, 10/01/26 ..................................................... 10/12 @ 100 582,431
A 3,250 Geneva Indl. Dev. Agcy., Civic Fac. Rev., Hobart & William Smith Proj.,
Ser. A, 5.375%, 2/01/33 ..................................................... 02/13 @ 100 3,297,353
BBB- 385 Herkimer Cnty. Indl. Dev. Agcy., Civic Fac. Rev., Coll. Foundation Inc.,
Student Hsg., 6.25%, 8/01/34 ................................................ 08/13 @ 100 394,305
AAA 3,515 Long Island Pwr. Auth., Elec. Sys. Rev., Ser. A, Zero Coupon, 6/01/28, FSA .... No Opt. Call 920,438
Met. Transp. Auth., Ser. A,
AAA 2,000 5.25%, 11/15/31, FGIC ....................................................... 11/12 @ 100 2,029,420
AA- 5,000 Dedicated Tax Fund, 5.00%, 11/15/30 ......................................... 11/12 @ 100 4,848,650
AA- 5,000 Svc. Contract Rev., 5.125%, 1/01/29 ......................................... 07/12 @ 100 4,906,350
A 5,000 New York City, GO, Ser. B, 5.75%, 12/01/22 .................................... 12/11 @ 100 5,220,050
New York City Indl. Dev. Agcy., Ser. A,
AAA 1,000 Eger Harbor Proj., 4.95%, 11/20/32 .......................................... 11/12 @ 101 951,420
AAA 1,000 Eger Harbor Proj., 5.875%, 5/20/44 .......................................... 11/12 @ 105 1,058,420
A 1,500 Lycee Francais De Proj., 5.375%, 6/01/23, ACA ............................... 12/12 @ 100 1,489,875
AA 5,000 New York City Mun. Wtr. Fin. Auth., Ser. A, 5.125%, 6/15/34 ................... 06/12 @ 100 4,966,500
AAA 5,000 New York City Trans. Auth., Met. Transp. Auth., Triborough Brdg. & Tunl.
Auth., COP, Ser. A, 5.25%, 1/01/29, AMBAC ................................... 01/10 @ 101 5,063,150
AA+ 5,000 New York City Trans. Fin. Auth., Ser. B, 5.00%, 11/01/27 ...................... 11/12 @ 100 4,903,950
New York Dorm. Auth.,
AAA 2,500 Brooklyn Law School, Ser. B, 5.125%, 7/01/30, XLCA .......................... 07/13 @ 100 2,497,650
Aa3 2,000 Kateri Residence, 5.00%, 7/01/22 ............................................ 07/13 @ 100 1,949,540
AA 5,000 Memorial Sloan Kettering Ctr., Ser. 1, 5.00%, 7/01/34 ....................... 07/13 @ 100 4,879,450
AA 2,000 Mount St. Mary Coll., 5.00%, 7/01/32, RAA ................................... 07/13 @ 100 1,929,260
AAA 2,425 New York Univ., 5.00%, 7/01/31, MBIA ........................................ 07/11 @ 100 2,393,063
AAA 3,000 New York Univ., Ser. 2, 5.00%, 7/01/41, AMBAC ............................... 07/11 @ 100 2,931,210
AAA 2,500 St. Barnabas, Ser. A, 5.00%, 2/01/31, AMBAC ................................. 08/12 @ 100 2,467,350
AA- 5,000 Univ. Dorm. Facs., 5.00%, 7/01/32 ........................................... 07/12 @ 100 4,837,600
A+ 5,500 New York Energy Res. & Dev. Auth., Facs. Rev., 4.70%, 6/01/36 ................. 10/05 @ 100 5,509,515
AA 2,500 New York Hsg. Fin. Agcy., Inc. Tax Rev., Econ. Dev. & Hsg., Ser. A,
5.00%, 3/15/33 .............................................................. 03/13 @ 100 2,399,925
AA 5,000 New York Urban Dev. Corp., Ser. C-1, 5.00%, 3/15/33 ........................... 03/13 @ 100 4,836,250
Caa2 3,675 Port Auth. of NY & NJ, Spec. Oblig., Cont'l/Eastern Proj. LaGuardia,
9.125%, 12/01/15 ............................................................ 09/03 @ 100 3,642,219
AA 2,500 Triborough Brdg. & Tunl. Auth., Ser. A, 5.00%, 1/01/32 ........................ 01/12 @ 100 2,437,475
A3 9,000 TSASC Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32 ................... 07/12 @ 100 7,546,770
------------
98,850,444
------------
PUERTO RICO--14.9%
BBB 4,000 Children's Trust Fund, Tobacco Settlement, 5.625%, 5/15/43 .................... 05/12 @ 100 3,172,320
A- 3,750 Puerto Rico Comnwlth., GO, Ser. A, 5.125%, 7/01/31 ............................ 07/11 @ 100 3,709,350
Puerto Rico Comnwlth. Hwy. & Transp. Auth.,
A 2,000 Ser. D, 5.375%, 7/01/36 ..................................................... 07/12 @ 100 2,023,280
A 1,000 Ser. G, 5.00%, 7/01/42 ...................................................... 07/13 @ 100 951,080
------------
9,856,030
------------
TOTAL LONG-TERM INVESTMENTS (COST $111,848,468) ............................... 108,706,474
------------
See Notes to Financial Statements.
34
SHARES
(000) DESCRIPTION VALUE
====================================================================================================================================
MONEY MARKET FUND--0.7%
450 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $450,000) ....................... $ 450,000
------------
TOTAL INVESTMENTS--165.5% (COST $112,298,468) ............................................ 109,156,474
Other assets in excess of liabilities--2.2% .............................................. 1,450,151
Preferred shares at redemption value, including dividends payable--(67.7)% ............... (44,653,919)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ....................................... $ 65,952,706
============
----------
(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.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
ACA -- American Capital Access
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
RAA -- Radian Asset Assurance
XLCA -- XL Capital Assurance
--------------------------------------------------------------------------------
See Notes to Financial Statements.
35
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2003
-----------------------------------------
BLACKROCK VIRGINIA MUNICIPAL BOND TRUST
-----------------------------------------
PRINCIPAL OPTION CALL
RATING(1) AMOUNT PROVISIONS(2)
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE
====================================================================================================================================
LONG-TERM INVESTMENTS--158.7%
VIRGINIA--146.8%
NR $1,500 Alexandria Redev. & Hsg. Auth., 3001 Park Cntr. Apts., Ser. A,
6.375%, 4/01/34 ............................................................ 04/08 @ 103 $ 1,407,330
AAA 1,500 Arlington Cnty., GO, 5.00%, 2/01/21 .......................................... 02/11 @ 100 1,525,005
A 3,000 Arlington Cnty. Ind. Dev. Auth., Hosp. Fac. Rev., Virginia Hosp. Ctr.
Arlington Hlth. Sys., 5.25%, 7/01/31 ....................................... 07/11 @ 101 2,915,220
NR 1,5003 Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/14 ................... No Opt. Call 1,528,575
AAA 1,500 Danville Ind. Dev. Auth., Hosp. Rev., Danville Regl. Med. Ctr, 5.25%,
10/01/28, AMBAC ............................................................ No Opt. Call 1,555,695
NR 1,000 Dulles Town Ctr. Cmnty. Dev. Auth., Spl. Assmt. Tax, Dulles Town Ctr.
Proj., 6.25%, 3/01/26 ...................................................... 03/08 @ 102 999,070
AAA 1,500 Fairfax Cnty. Wtr. Auth., Wtr. Rev, 5.00%, 4/01/27 ........................... 04/12 @ 100 1,496,010
AA 1,000 Hampton, GO, 5.00%, 4/01/20 .................................................. 04/12 @ 101 1,022,650
A- 1,500 Henrico Cnty. Econ. Dev. Auth., Bon Secours Hlth. Sys. Inc., Ser. A,
5.60%, 11/15/30 ............................................................ 11/12 @ 100 1,501,455
AAA 1,500 Met. Arpts. Auth., Arpt. Sys. Rev., Ser. A, 5.25%, 10/01/32, FGIC ............ 10/12 @ 100 1,486,995
AAA 1,500 Norfolk Arpt. Auth., Ser. A, 5.125%, 7/01/31, FGIC ........................... 07/11 @ 100 1,499,445
NR 500 Peninsula Port Auth., Residential Care Fac. Rev., Virginia Baptist Homes,
Ser. A, 7.375%, 12/01/32 ................................................... 12/13 @ 100 507,830
A 5,000 Pocahontas Pkwy. Assoc., Toll Road Rev., Ser. B, Zero Coupon, 8/15/22, ACA ... 08/08 @ 45.5 1,324,400
AA 1,375 Prince William Cnty., COP, 5.00%, 12/01/21 ................................... 06/12 @ 100 1,388,709
AAA 1,250 Richmond Met. Auth., Expwy. Rev., 5.25%, 7/15/22, FGIC ....................... No Opt. Call 1,322,450
AAA 3,000 Richmond Pub. Util., 5.00%, 1/15/33, FSA ..................................... 01/12 @ 100 2,973,240
Virginia Coll. Bldg. Auth., Edl. Facs. Rev., Washington & Lee Univ.
Proj., MBIA,
AAA 500 5.25%, 1/01/26 ............................................................. No Opt. Call 526,430
AAA 1,000 5.25%, 1/01/31 ............................................................. No Opt. Call 1,046,430
AAA 3,000 Virginia Hsg. Dev. Auth., Comnwlth. Mtg. Rev., Ser. H, 5.375%, 7/01/36, MBIA . 07/11 @ 100 3,023,580
Virginia Res. Auth.,
AA 1,000 Infrastructure Rev., Ser. A, 5.00%, 5/01/22 ................................ 05/11 @ 101 1,008,480
AA 635 Infrastructure Rev., Ser. A, 5.125%, 5/01/27 ............................... 05/11 @ 101 639,242
AA 1,500 Wtr. & Swr. Sys. Rev., Frederick Cnty. Sanitation Auth. Proj.,
5.20%, 10/01/28 .......................................................... 10/10 @ 100 1,517,535
------------
32,215,776
------------
PUERTO RICO--11.9%
BBB 1,500 Children's Trust Fund, Tobacco Settlement, 5.625%, 5/15/43 ................... 05/12 @ 100 1,189,620
A 1,500 Puerto Rico Comnwlth. Hwy. & Transp. Auth., Ser. G, 5.00%, 7/01/42 ........... 07/13 @ 100 1,426,620
------------
2,616,240
------------
TOTAL LONG-TERM INVESTMENTS (COST $34,717,175) ............................... 34,832,016
------------
------
SHARES
(000)
------
MONEY MARKET FUND--1.4%
NR 299 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $299,448) ........... N/A 299,448
------------
TOTAL INVESTMENTS--160.1% (COST $35,016,623) ................................. $ 35,131,464
Other assets in excess of liabilities--1.5% .................................. 337,846
Preferred shares at redemption value, including dividends payable--(61.6)% ... (13,525,445)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ........................... $ 21,943,865
============
----------
(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. This security
may be resold in transactions in accordance with Rule 144A under that Act,
to qualified institutional buyers. As of August 31, 2003, the Trust held
7.0% of its net assets, with a current market value of $1,528,575, in
securities restricted as to resale.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS
ACA -- American Capital Access
AMBAC -- American Municipal Bond Assurance Corporation
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
--------------------------------------------------------------------------------
See Notes to Financial Statements.
36
STATEMENTS OF ASSETS AND LIABILITIES
AUGUST 31, 2003
--------------------------------------------------------------------------------
CALIFORNIA
INSURED INSURED
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
ASSETS INCOME TRUST BOND TRUST INCOME TRUST II INCOME TRUST
-------------- -------------- --------------- -------------
Investments at value(1) ............................. $561,751,599 $227,301,377 $506,839,038 $112,798,313
Cash ................................................ 540,419 526,715 49,372 539,778
Receivable from investments sold .................... 19,868,481 3,402,511 1,790,159 993,672
Interest receivable ................................. 5,522,180 3,411,309 6,812,409 1,554,158
Other assets ........................................ 76,019 33,204 47,734 18,872
------------ ------------ ------------ ------------
587,758,698 234,675,116 515,538,712 115,904,793
------------ ------------ ------------ ------------
LIABILITIES
Payable to custodian ................................ -- -- -- --
Payable for investments purchased ................... -- -- 5,442,585 --
Dividends payable-- common shares ................... 2,041,051 874,379 1,907,272 394,802
Investment advisory fee payable ..................... 173,216 69,421 172,533 34,302
Deferred Trustees fees .............................. 10,522 6,871 12,182 1,599
Other accrued expenses .............................. 95,222 265,487 97,230 57,055
------------ ------------ ------------ ------------
2,320,011 1,216,158 7,631,802 487,758
------------ ------------ ------------ ------------
PREFERRED SHARES AT REDEMPTION VALUE
$.001 par value per share and $25,000 liquidation
value per share, including dividends payable(2) ... 229,001,028 90,508,091 205,570,284 46,507,128
------------ ------------ ------------ ------------
NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS ............................... $356,437,659 $142,950,867 $302,336,626 $ 68,909,907
============ ============ ============ ============
Composition of Net Assets Applicable to
Common Shareholders:
Par value ......................................... $ 26,125 $ 10,123 $ 22,774 $ 5,264
Paid-in capital in excess of par .................. 370,777,495 143,443,136 323,214,104 74,633,026
Undistributed (distributions in excess of) net
investment income ............................... 1,592,764 1,899,905 1,629,878 308,708
Accumulated net realized gain (loss) .............. (4,189,228) (1,034,334) (7,486,478) 73,705
Net unrealized appreciation (depreciation) ........ (11,769,497) (1,367,963) (15,043,652) (6,110,796)
------------ ------------ ------------ ------------
Net assets applicable to common shareholders,
August 31, 2003 ................................. $356,437,659 $142,950,867 $302,336,626 $ 68,909,907
============ ============ ============ ============
Net asset value per common share(3) ................. $13.64 $14.12 $13.28 $13.09
====== ====== ====== ======
(1)Investments at cost .............................. $573,521,096 $228,669,340 $521,882,690 $118,909,109
(2)Preferred shares outstanding ..................... 9,159 3,620 8,222 1,860
(3)Common shares outstanding ........................ 26,125,458 10,123,055 22,773,392 5,264,025
See Notes to Financial Statements.
37
--------------------------------------------------------------------------------
FLORIDA
CALIFORNIA CALIFORNIA INSURED FLORIDA MARYLAND NEW JERSEY
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND TRUST INCOME TRUST II INCOME TRUST BOND TRUST BOND TRUST BOND TRUST
----------- --------------- ------------ ----------- ----------- -----------
$74,216,818 $175,586,345 $193,504,185 $77,777,447 $46,187,976 $50,987,739
-- 535,035 -- -- -- --
993,672 36,050 -- -- 265,000 --
1,048,308 2,620,837 3,153,912 1,281,888 656,690 696,250
14,765 16,190 28,328 9,260 5,956 6,752
----------- ------------ ------------ ----------- ----------- -----------
76,273,563 178,794,457 196,686,425 79,068,595 47,115,622 51,690,741
----------- ------------ ------------ ----------- ----------- -----------
-- -- 124,239 910,461 -- --
-- 4,326,606 -- -- -- --
266,939 647,921 653,912 257,504 143,708 178,186
22,520 58,994 58,183 23,144 13,919 15,299
3,171 3,116 3,674 2,583 2,925 3,415
62,762 63,241 58,254 55,253 31,232 40,159
----------- ------------ ------------ ----------- ----------- -----------
355,392 5,099,878 898,262 1,248,945 191,784 237,059
----------- ------------ ------------ ----------- ----------- -----------
29,978,104 71,956,432 76,010,006 29,777,613 18,001,185 20,227,559
----------- ------------ ------------ ----------- ----------- -----------
$45,940,067 $101,738,147 $119,778,157 $48,042,037 $28,922,653 $31,226,123
=========== ============ ============ =========== =========== ===========
$ 3,351 $ 7,974 $ 8,719 $ 3,310 $ 2,014 $ 2,267
47,456,833 113,125,098 123,687,058 46,855,682 28,481,327 32,074,540
558,336 (182,190) 219,079 458,990 311,348 291,378
120,138 (3,088,341) 632,421 405,141 7,775 121,320
(2,198,591) (8,124,394) (4,769,120) 318,914 120,189 (1,263,382)
----------- ------------ ------------ ----------- ----------- -----------
$45,940,067 $101,738,147 $119,778,157 $48,042,037 $28,922,653 $31,226,123
=========== ============ ============ =========== =========== ===========
$13.71 $12.76 $13.74 $14.52 $14.36 $13.77
====== ====== ====== ====== ====== ======
$76,415,409 $183,710,739 $198,273,305 $77,458,533 $46,067,787 $52,251,121
1,199 2,878 3,040 1,191 720 809
3,351,150 7,974,413 8,718,823 3,309,483 2,014,121 2,267,518
38
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
AUGUST 31, 2003
--------------------------------------------------------------------------------
NEW YORK
INSURED NEW YORK NEW YORK VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
ASSETS INCOME TRUST BOND TRUST INCOME TRUST II BOND TRUST
------------- ----------- --------------- -----------
Investments at value(1) ............................. $ 140,774,085 $61,817,415 $ 109,156,474 $35,131,464
Cash ................................................ 525,735 -- 530,628 --
Interest receivable ................................. 1,692,446 850,294 1,402,896 468,342
Other assets ........................................ 21,397 13,430 9,966 4,959
------------- ----------- ------------- -----------
143,013,663 62,681,139 111,099,964 35,604,765
------------- ----------- ------------- -----------
LIABILITIES
Dividends payable -- common shares .................. 481,808 208,244 388,652 109,876
Investment advisory fee payable ..................... 42,307 18,579 37,532 10,530
Deferred Trustees fees .............................. 1,680 2,770 2,249 2,645
Other accrued expenses .............................. 53,167 41,754 64,906 12,404
------------- ----------- ------------- -----------
578,962 271,347 493,339 135,455
------------- ----------- ------------- -----------
PREFERRED SHARES AT REDEMPTION VALUE
$.001 par value per share and $25,000 liquidation
value per share, including dividends payable(2) ... 56,003,686 24,202,552 44,653,919 13,525,445
------------- ----------- ------------- -----------
NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS ............................. $ 86,431,015 $38,207,240 $ 65,952,706 $21,943,865
============= =========== ============= ===========
Composition of Net Assets Applicable to
Common Shareholders:
Par value ......................................... $ 6,424 $ 2,701 $ 4,935 $ 1,517
Paid-in capital in excess of par .................. 91,110,843 38,226,462 69,975,321 21,432,670
Undistributed (distributions in excess of)
net investment income ........................... 95,731 312,841 (162,871) 307,522
Accumulated net realized gain (loss) .............. (58,039) (142,737) (722,685) 87,315
Net unrealized appreciation (depreciation) ........ (4,723,944) (192,027) (3,141,994) 114,841
------------- ----------- ------------- -----------
Net assets applicable to common shareholders,
August 31, 2003 ................................... $ 86,431,015 $38,207,240 $ 65,952,706 $21,943,865
============= =========== ============= ===========
Net asset value per common share(3) ................. $13.45 $14.15 $13.36 $14.46
====== ====== ====== ======
(1)Investments at cost .............................. $ 145,498,029 $62,009,442 $ 112,298,468 $35,016,623
(2)Preferred shares outstanding ..................... 2,240 968 1,786 541
(3)Common shares outstanding ........................ 6,424,108 2,700,991 4,935,268 1,517,041
See Notes to Financial Statements.
39
STATEMENTS OF OPERATIONS
FOR THE PERIOD(1) ENDED AUGUST 31, 2003
--------------------------------------------------------------------------------
CALIFORNIA
INSURED INSURED
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
INVESTMENT INCOME INCOME TRUST BOND TRUST INCOME TRUST II INCOME TRUST
------------ ----------- --------------- ------------
Interest Income .................................. $ 24,028,072 $14,235,120 $ 28,839,608 $ 4,725,419
------------ ----------- ------------ -----------
EXPENSES
Investment advisory .............................. 2,611,439 1,554,607 2,817,658 524,363
Transfer agent ................................... 14,642 16,055 16,030 13,637
Custodian ........................................ 89,322 69,958 102,333 30,378
Reports to shareholders .......................... 55,183 37,595 52,214 20,455
Trustees ......................................... 43,089 20,411 45,540 10,794
Registration ..................................... 26,408 30,640 15,572 18,862
Independent accountants .......................... 37,846 46,390 49,696 34,923
Legal ............................................ 26,589 26,236 30,483 8,862
Insurance ........................................ 30,526 23,703 51,223 8,379
Organization ..................................... 15,000 -- -- 15,000
Auction Agent .................................... 429,228 233,784 495,853 89,479
Miscellaneous .................................... 36,381 30,219 40,807 12,545
------------ ----------- ------------ -----------
Total expenses ................................. 3,415,653 2,089,598 3,717,409 787,677
Less fees waived by Advisor .................... (949,614) (717,511) (768,452) (190,677)
Less fees paid indirectly ...................... (55,587) (16,709) (22,351) (26,047)
------------ ----------- ------------ -----------
Net expenses ................................... 2,410,452 1,355,378 2,926,606 570,953
------------ ----------- ------------ -----------
Net investment income .............................. 21,617,620 12,879,742 25,913,002 4,154,466
------------ ----------- ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments .................................... (4,190,174) (844,614) (7,907,987) 73,698
Futures ........................................ -- 39,058 421,419 --
------------ ----------- ------------ -----------
(4,190,174) (805,556) (7,486,568) 73,698
Net change in unrealized
appreciation (depreciation) .................... (11,769,497) (6,670,938) (16,689,310) (6,110,796)
------------ ----------- ------------ -----------
Net realized and unrealized loss ................... (15,959,671) (7,476,494) (24,175,878) (6,037,098)
------------ ----------- ------------ -----------
DIVIDENDS AND DISTRIBUTIONS TO
PREFERRED SHAREHOLDERS FROM:
Net investment income ............................ (1,705,605) (995,851) (2,206,764) (309,490)
Net realized gains ............................... -- (68,481) -- --
------------ ----------- ------------ -----------
Total dividends and distributions .................. (1,705,605) (1,064,332) (2,206,764) (309,490)
------------ ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
APPLICABLE TO COMMON SHAREHOLDERS
RESULTING FROM OPERATIONS ........................ $ 3,952,344 $ 4,338,916 $ (469,640) $(2,192,122)
============ =========== ============ ===========
-----------------
(1) Commencements of investment operations for the Insured Trusts were October
31, 2002. The statements for the Bond Trusts and the Income II Trusts are
for one year.
See Notes to Financial Statements.
40
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE PERIOD(1) ENDED AUGUST 31, 2003
--------------------------------------------------------------------------------
CALIFORNIA FLORIDA
CALIFORNIA MUNICIPAL INSURED FLORIDA
MUNICIPAL INCOME MUNICIPAL MUNICIPAL
INVESTMENT INCOME BOND TRUST TRUST II INCOME TRUST BOND TRUST
----------- ------------- ---------- -----------
Interest Income ................................... $ 4,445,079 $ 9,205,260 $7,513,053 $ 4,286,175
----------- ------------- ---------- -----------
EXPENSES
Investment advisory ............................... 514,030 980,615 871,287 517,987
Transfer agent .................................... 16,047 15,612 13,723 15,927
Custodian ......................................... 17,161 32,609 43,793 17,161
Reports to shareholders ........................... 17,054 22,766 24,324 17,408
Trustees .......................................... 12,593 17,497 14,249 12,563
Registration ...................................... 23,636 5,793 18,862 23,512
Independent accountants ........................... 44,530 47,356 35,376 44,420
Legal ............................................. 9,323 13,269 11,574 9,321
Insurance ......................................... 6,546 21,061 11,968 5,621
Organization ...................................... -- -- 15,000 --
Auction Agent ..................................... 78,297 174,646 143,119 78,057
Miscellaneous ..................................... 19,450 26,901 15,935 19,675
----------- ------------- ---------- -----------
Total expenses .................................... 758,667 1,358,125 1,219,210 761,652
Less fees waived by Advisor ....................... (237,245) (267,440) (316,831) (239,071)
Less fees paid indirectly ......................... -- (25,134) (38,459) --
----------- ------------- ---------- -----------
Net expenses ...................................... 521,422 1,065,551 863,920 522,581
----------- ------------- ---------- -----------
Net investment income ............................... 3,923,657 8,139,709 6,649,133 3,763,594
----------- ------------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments ..................................... 333,162 (3,243,503) 632,254 617,109
Futures ......................................... -- 154,178 -- --
----------- ------------- ---------- -----------
333,162 (3,089,325) 632,254 617,109
Net change in unrealized
appreciation (depreciation) ..................... (4,389,282) (8,940,916) (4,769,120) (2,067,781)
----------- ------------- ---------- -----------
Net realized and unrealized loss .................... (4,056,120) (12,030,241) (4,136,866) (1,450,672)
----------- ------------- ---------- -----------
DIVIDENDS AND DISTRIBUTIONS TO
PREFERRED SHAREHOLDERS FROM:
Net investment income ............................. (285,766) (699,743) (563,529) (294,203)
Net realized gains ................................ (36,465) -- -- (25,515)
----------- ------------- ---------- -----------
Total dividends and distributions ................... (322,231) (699,743) (563,529) (319,718)
----------- ------------- ---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
APPLICABLE TO COMMON SHAREHOLDERS
RESULTING FROM OPERATIONS ......................... $ (454,694) $ (4,590,275) $1,948,738 $ 1,993,204
=========== ============= ========== ===========
----------------------
(1) Commencements of investment operations for the Insured Trusts were October
31, 2002. The statements for the Bond Trusts and the Income II Trusts are
for one year.
See Notes to Financial Statements.
41
--------------------------------------------------------------------------------
NEW YORK
MARYLAND NEW JERSEY INSURED NEW YORK NEW YORK VIRGINIA
MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND TRUST BOND TRUST INCOME TRUST BOND TRUST INCOME TRUST II BOND TRUST
----------- ----------- ------------ ----------- --------------- -----------
$ 2,504,517 $ 2,964,552 $ 5,493,979 $ 3,479,091 $ 5,558,515 $1,922,192
----------- ----------- ----------- ----------- ----------- ----------
312,447 343,699 638,316 417,766 616,366 236,733
16,058 16,058 13,866 16,053 16,030 16,058
16,828 14,693 32,535 16,663 23,153 16,828
15,047 15,560 18,491 16,556 19,012 12,041
12,386 12,401 11,020 12,547 12,817 12,230
1,401 1,535 18,862 23,512 3,760 1,099
40,989 40,596 34,917 41,095 46,740 21,000
8,702 8,708 9,912 8,725 10,660 8,521
4,066 4,442 9,543 5,357 10,984 2,288
-- -- 15,000 -- -- --
48,312 53,896 106,642 63,842 108,625 38,017
14,224 18,104 15,695 17,710 18,325 11,548
----------- ----------- ----------- ----------- ----------- ----------
490,460 529,692 924,799 639,826 886,472 376,363
(144,206) (158,630) (232,115) (192,815) (168,100) (109,262)
-- -- (27,826) -- (17,014) --
----------- ----------- ----------- ----------- ----------- ----------
346,254 371,062 664,858 447,011 701,358 267,101
----------- ----------- ----------- ----------- ----------- ----------
2,158,263 2,593,490 4,829,121 3,032,080 4,857,157 1,655,091
----------- ----------- ----------- ----------- ----------- ----------
93,425 192,616 (58,730) (143,156) (722,685) 237,709
-- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------
93,425 192,616 (58,730) (143,156) (722,685) 237,709
(1,028,809) (2,102,018) (4,723,944) (1,803,841) (3,853,513) (910,742)
----------- ----------- ----------- ----------- ----------- ----------
(935,384) (1,909,402) (4,782,674) (1,946,997) (4,576,198) (673,033)
----------- ----------- ----------- ----------- ----------- ----------
(192,706) (194,504) (420,505) (249,849) (476,593) (121,007)
(11,022) (16,272) -- (21,352) -- (22,888)
----------- ----------- ----------- ----------- ----------- ----------
(203,728) (210,776) (420,505) (271,201) (476,593) (143,895)
----------- ----------- ----------- ----------- ----------- ----------
$ 1,019,151 $ 473,312 $ (374,058) $ 813,882 $ (195,634) $ 838,163
=========== =========== =========== =========== =========== ==========
42
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD(1) ENDED AUGUST 31, 2003, AND FOR THE PERIOD(2) ENDED
AUGUST 31, 2002
--------------------------------------------------------------------------------
INSURED
MUNICIPAL
INCOME TRUST MUNICIPAL BOND TRUST MUNICIPAL INCOME TRUST II
------------- ----------------------------- -----------------------------
INCREASE (DECREASE) IN NET ASSETS 2003 2003 2002 2003 2002
APPLICABLE TO COMMON SHAREHOLDERS ------------- ------------- ------------- ------------- -------------
OPERATIONS:
Net investment income ........................... $ 21,617,620 $ 12,879,742 $ 3,112,184 $ 25,913,002 $ 784,425
Net realized gain (loss) ........................ (4,190,174) (805,556) 367,062 (7,486,568) --
Net change in unrealized appreciation ........... (11,769,497) (6,670,938) 5,302,975 (16,689,310) 1,645,658
Dividends and distributions to preferred
shareholders from:
Net investment income ......................... (1,705,605) (995,851) (257,276) (2,206,764) --
Net realized gain ............................. -- (68,481) -- -- --
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations ................................. 3,952,344 4,338,916 8,524,945 (469,640) 2,430,083
------------- ------------- ------------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
COMMON SHAREHOLDERS FROM:
Net investment income ........................... (18,333,305) (10,290,066) (2,557,095) (22,875,695) --
Net realized gain ............................... -- (529,092) -- -- --
------------- ------------- ------------- ------------- -------------
Total dividends and distributions ................. (18,333,305) (10,819,158) (2,557,095) (22,875,695) --
------------- ------------- ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:(3)
Net proceeds from the issuance of common shares.. 343,210,001 -- 133,612,802 -- 306,727,751
Net proceeds from the underwriters' over-
allotment option exercised .................... 28,590,000 -- 10,743,750 4,288,500 14,325,000
Underwriting discounts and offering costs
relating to the issuance of preferred shares .. (2,657,181) -- (1,265,738) (2,294,668) --
Reinvestment of common dividends ................ 1,675,800 178,549 193,896 205,295 --
------------- ------------- ------------- ------------- -------------
Net proceeds from capital share transactions ...... 370,818,620 178,549 143,284,710 2,199,127 321,052,751
------------- ------------- ------------- ------------- -------------
Total increase (decrease) ......................... 356,437,659 (6,301,693) 149,252,560 (21,146,208) 323,482,834
------------- ------------- ------------- ------------- -------------
NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS:
Beginning of period ............................... -- 149,252,560 -- 323,482,834 --
------------- ------------- ------------- ------------- -------------
End of period ..................................... $ 356,437,659 $ 142,950,867 $ 149,252,560 $ 302,336,626 $ 323,482,834
============= ============= ============= ============= =============
End of period undistributed (distributions
in excess of) net investment income ............. $ 1,592,764 $ 1,899,905 $ 297,813 $ 1,629,878 $ 784,425
---------------------
(1) Commencements of investment operations for the Insured Trusts were October
31, 2002. The statements for the Bond Trusts and the Income II Trusts are
for one year. This information includes the initial investment by BlackRock
Funding, Inc.
(2) Commencements of investment operations for the Bond Trusts and the Income II
Trusts were April 30, 2002, and July 30, 2002, respectively. This
information includes the initial investment by BlackRock Funding, Inc.
(3) Prior period amounts have been reclassified to conform to the current
period's presentation.
See Notes to Financial Statements.
43
--------------------------------------------------------------------------------
CALIFORNIA FLORIDA
INSURED INSURED
MUNICIPAL CALIFORNIA CALIFORNIA MUNICIPAL
INCOME TRUST MUNICIPAL BOND TRUST MUNICIPAL INCOME TRUST II INCOME TRUST
------------ ------------------------------------ ------------------------------------- -------------
2003 2003 2002 2003 2002 2003
------------ ------------ ------------ ------------- ------------- -------------
$ 4,154,466 $ 3,923,657 $ 926,051 $ 8,139,709 $ 128,802 $ 6,649,133
73,698 333,162 101,627 (3,089,325) -- 632,254
(6,110,796) (4,389,282) 2,190,691 (8,940,916) 816,522 (4,769,120)
(309,490) (285,766) (79,291) (699,743) -- (563,529)
-- (36,465) -- -- -- --
------------ ------------ ------------ ------------- ------------- -------------
(2,192,122) (454,694) 3,139,078 (4,590,275) 945,324 1,948,738
------------ ------------ ------------ ------------- ------------- -------------
(3,551,261) (3,151,958) (784,357) (7,764,974) -- (5,881,358)
-- (278,186) -- -- -- --
------------ ------------ ------------ ------------- ------------- -------------
(3,551,261) (3,430,144) (784,357) (7,764,974) -- (5,881,358)
------------ ------------ ------------ ------------- ------------- -------------
71,605,001 -- 42,994,952 -- 105,901,001 114,493,001
3,573,750 -- 4,798,875 2,144,250 5,730,000 10,006,500
(609,518) (21,849) (425,251) (849,475) -- (944,848)
84,057 12,499 110,958 222,296 -- 156,124
------------ ------------ ------------ ------------- ------------- -------------
74,653,290 (9,350) 47,479,534 1,517,071 111,631,001 123,710,777
------------ ------------ ------------ ------------- ------------- -------------
68,909,907 (3,894,188) 49,834,255 (10,838,178) 112,576,325 119,778,157
------------ ------------ ------------ ------------- ------------- -------------
-- 49,834,255 -- 112,576,325 -- --
------------ ------------ ------------ ------------- ------------- -------------
$ 68,909,907 $ 45,940,067 $ 49,834,255 $ 101,738,147 $ 112,576,325 $ 119,778,157
============ ============ ============ ============= ============= =============
$ 308,708 $ 558,336 $ 62,403 $ (182,190) $ 128,802 $ 219,079
44
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE PERIOD(1) ENDED AUGUST 31, 2003, AND FOR THE PERIOD(2) ENDED
AUGUST 31, 2002
--------------------------------------------------------------------------------
FLORIDA MARYLAND
MUNICIPAL BOND TRUST MUNICIPAL BOND TRUST
------------------------------ -------------------------------
INCREASE (DECREASE) IN NET ASSETS 2003 2002 2003 2002
APPLICABLE TO COMMON SHAREHOLDERS ------------ ------------- ------------- -------------
OPERATIONS:
Net investment income ................................. $ 3,763,594 $ 851,789 $ 2,158,263 $ 506,802
Net realized gain (loss) .............................. 617,109 -- 93,425 (2,107)
Net change in unrealized appreciation ................. (2,067,781) 2,386,695 (1,028,809) 1,148,998
Dividends and distributions to preferred
shareholders from:
Net investment income ............................... (294,203) (77,259) (192,706) (51,559)
Net realized gain ................................... (25,515) -- (11,022) --
------------ ------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations ....................................... 1,993,204 3,161,225 1,019,151 1,602,134
------------ ------------- ------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO
COMMON SHAREHOLDERS FROM:
Net investment income ................................. (3,038,237) (756,694) (1,696,742) (422,681)
Net realized gain ..................................... (186,453) -- (72,550) --
------------ ------------- ------------- -------------
Total dividends and distributions ....................... (3,224,690) (756,694) (1,769,292) (422,681)
------------ ------------- ------------- -------------
CAPITAL SHARE TRANSACTIONS:(3)
Net proceeds from the issuance of common shares ....... -- 41,921,628 -- 25,271,852
Net proceeds from the underwriters' over-
allotment option exercised .......................... -- 5,371,875 -- 3,509,625
Underwriting discounts and offering costs
relating to the issuance of preferred shares ........ (28,492) (422,474) (50,675) (258,959)
Reinvestment of common dividends ...................... 18,121 8,334 18,519 2,979
------------ ------------- ------------- -------------
Net proceeds from capital share transactions ............ (10,371) 46,879,363 (32,156) 28,525,497
------------ ------------- ------------- -------------
Total increase (decrease) ............................... (1,241,857) 49,283,894 (782,297) 29,704,950
------------ ------------- ------------- -------------
NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS:
Beginning of period ..................................... 49,283,894 -- 29,704,950 --
------------ ------------- ------------- -------------
End of period ........................................... $ 48,042,037 $ 49,283,894 $ 28,922,653 $ 29,704,950
============ ============= ============= =============
End of period undistributed (distributions in
excess of) net investment income ...................... $ 458,990 $ 17,836 $ 311,348 $ 32,562
--------------------
(1) Commencements of investment operations for the Insured Trusts were October
31, 2002. The statements for the Bond Trusts and the Income II Trusts are
for one year. This information includes the initial investment by BlackRock
Funding, Inc.
(2) Commencements of investment operations for the Bond Trusts and the Income II
Trusts were April 30, 2002, and July 30, 2002, respectively. This
information includes the initial investment by BlackRock Funding, Inc.
(3) Prior period amounts have been reclassified to conform to the current
period's presentation.
See Notes to Financial Statements.
45
--------------------------------------------------------------------------------
NEW YORK
INSURED
NEW JERSEY MUNICIPAL NEW YORK NEW YORK
MUNICIPAL BOND TRUST INCOME TRUST MUNICIPAL BOND TRUST MUNICIPAL INCOME TRUST II
------------------------------- ------------ ------------------------------- -------------------------------
2003 2002 2003 2003 2002 2003 2002
------------ ------------ ------------ ------------ ------------ ------------ -------------
$ 2,593,490 $ 567,668 $ 4,829,121 $ 3,032,080 $ 679,537 $ 4,857,157 $ 103,447
192,616 88,643 (58,730) (143,156) 176,216 (722,685) --
(2,102,018) 838,636 (4,723,944) (1,803,841) 1,611,814 (3,853,513) 711,519
(194,504) (48,286) (420,505) (249,849) (64,545) (476,593) --
(16,272) (565) -- (21,352) (247) -- --
------------ ------------ ------------ ------------ ------------ ------------ -------------
473,312 1,446,096 (374,058) 813,882 2,402,775 (195,634) 814,966
------------ ------------ ------------ ------------ ------------ ------------ -------------
(2,110,955) (519,382) (4,327,194) (2,475,984) (614,992) (4,661,882) --
(143,682) (6,073) -- (155,250) (2,354) -- --
------------ ------------ ------------ ------------ ------------ ------------ -------------
(2,254,637) (525,455) (4,327,194) (2,631,234) (617,346) (4,661,882) --
------------ ------------ ------------ ------------ ------------ ------------ -------------
-- 28,702,502 85,901,501 -- 35,135,552 -- 64,447,001
-- 3,581,250 5,718,000 -- 3,438,000 1,072,125 5,013,750
(48,427) (289,857) (711,970) (37,459) (345,056) (567,282) --
75,007 66,332 224,736 -- 48,126 29,662 --
------------ ------------ ------------ ------------ ------------ ------------ -------------
26,580 32,060,227 91,132,267 (37,459) 38,276,622 534,505 69,460,751
------------ ------------ ------------ ------------ ------------ ------------ -------------
(1,754,745) 32,980,868 86,431,015 (1,854,811) 40,062,051 (4,323,011) 70,275,717
------------ ------------ ------------ ------------ ------------ ------------ -------------
32,980,868 -- -- 40,062,051 -- 70,275,717 --
------------ ------------ ------------ ------------ ------------ ------------ -------------
$ 31,226,123 $ 32,980,868 $ 86,431,015 $ 38,207,240 $ 40,062,051 $ 65,952,706 $ 70,275,717
============ ============ ============ ============ ============ ============ =============
$ 291,378 $ (6,638) $ 95,731 $ 312,841 $ (2,601) $ (162,871) $ 103,447
46
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEAR ENDED AUGUST 31, 2003, AND FOR THE PERIOD(1) ENDED AUGUST 31, 2002
--------------------------------------------------------------------------------
VIRGINIA
MUNICIPAL BOND TRUST
-------------------------------
INCREASE (DECREASE) IN NET ASSETS 2003 2002
APPLICABLE TO COMMON SHAREHOLDERS ------------ ------------
OPERATIONS:
Net investment income ................................. $ 1,655,091 $ 412,690
Net realized gain ..................................... 237,709 23,871
Net change in unrealized appreciation ................. (910,742) 1,025,583
Dividends and distributions to preferred
shareholders from:
Net investment income ............................... (121,007) (39,206)
Net realized gain ................................... (22,888) --
------------ ------------
Net increase in net assets resulting
from operations ....................................... 838,163 1,422,938
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
COMMON SHAREHOLDERS FROM:
Net investment income ................................. (1,289,511) (320,535)
Net realized gain ..................................... (151,377) --
------------ ------------
Total dividends and distributions ....................... (1,440,888) (320,535)
------------ ------------
CAPITAL SHARE TRANSACTIONS:(2)
Net proceeds from the issuance of common shares ....... -- 19,270,352
Net proceeds from the underwriters' overallotment
option exercised .................................... -- 2,363,625
Underwriting discounts and offering costs
relating to the issuance of preferred shares ........ (58,033) (196,816)
Reinvestment of common dividends ...................... 60,042 5,017
------------ ------------
Net proceeds from capital share transactions ............ 2,009 21,442,178
------------ ------------
Total increase (decrease) ............................... (600,716) 22,544,581
------------ ------------
NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS:
Beginning of period ..................................... 22,544,581 --
------------ ------------
End of period ........................................... $ 21,943,865 $ 22,544,581
============ ============
End of period undistributed net investment income ....... $ 307,522 $ 52,949
-------------------
(1) Commencements of investment operations for Virginia Bond was April 30, 2002.
This information includes the initial investment by BlackRock Funding, Inc.
(2) Prior period amounts have been reclassified to conform to the current
period's presentation.
See Notes to Financial Statements.
47
FINANCIAL HIGHLIGHTS
FOR THE PERIOD(1) ENDED AUGUST 31, 2003, AND FOR THE PERIOD(2) ENDED AUGUST 31,
2002
--------------------------------------------------------------------------------
INSURED
MUNICIPAL
INCOME TRUST MUNICIPAL BOND TRUST MUNICIPAL INCOME TRUST II
------------ ------------------------ -------------------------
2003 2003 2002 2003 2002
------------- -------- -------- ---------- --------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period ............. $ 14.33(3) $ 14.76 $ 14.33(3) $ 14.40 $ 14.33(3)
-------- -------- -------- -------- --------
Investment operations:
Net investment income .......................... 0.83 1.28 0.31 1.14 0.03
Net realized and unrealized gain (loss) ........ (0.62) (0.74) 0.52 (1.06) 0.07
Dividends to preferred shareholders:
Net investment income ........................ (0.07) (0.10) (0.03) (0.10) --
Net realized gains ........................... -- (0.01) -- -- --
-------- -------- -------- -------- --------
Net increase (decrease) from investment operations 0.14 0.43 0.80 (0.02) 0.10
-------- -------- -------- -------- --------
Dividends to common shareholders:
Net investment income .......................... (0.70) (1.02) (0.25) (1.00) --
Net realized gains ............................. -- (0.05) -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions ................ (0.70) (1.07) (0.25) (1.00) --
-------- -------- -------- -------- --------
Capital charges with respect to issuance of:
Common shares .................................. (0.03) -- (0.03) -- (0.03)
Preferred shares ............................... (0.10) -- (0.09) (0.10) --
-------- -------- -------- -------- --------
Total capital charges ............................ (0.13) -- (0.12) (0.10) (0.03)
-------- -------- -------- -------- --------
Net asset value, end of period ................... $ 13.64 $14.12 $14.76 $13.28 $ 14.40
======== ======== ======== ======== ========
Market price, end of period ...................... $ 13.51 $13.66 $14.90 $13.11 $ 15.00
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN(4) ....................... (5.39)% (1.20)% 1.07% (6.00)% 0.00%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:(5)
Expenses after fees waived and paid indirectly ... 0.77%(6) 0.91% 0.90%(6) 0.92% 0.65%(7)
Expenses before fees waived and paid indirectly .. 1.10%(6) 1.41% 1.32%(6) 1.17% 0.80%(7)
Net investment income after fees waived and paid
indirectly and before preferred share dividends 6.95%(6) 8.66% 6.35%(6) 8.15% 2.82%(7)
Preferred share dividends ........................ 0.55%(6) 0.67% 0.53%(6) 0.69% 0.00%(7)
Net investment income available to
common shareholders ............................ 6.40%(6) 7.99% 5.82%(6) 7.46% 2.82%(7)
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) .. $372,269 $148,670 $144,196 $318,014 $307,165
Portfolio turnover ............................... 46% 21% 22% 118% 0%
Net assets of common shareholders,
end of period (000) ............................ $356,438 $142,951 $149,253 $302,337 $323,483
Preferred shares value outstanding (000) ......... $228,975 $ 90,500 $ 90,500 $205,550 $ --
Asset coverage per preferred share, end of period $ 63,919 $ 64,491 $ 66,233 $ 61,774 $ --
---------------
(1) Commencements of investment operations for the Insured Trusts were October
31, 2002. The statements for the Bond Trusts and the Income II Trusts are
for one year. This information includes the initial investments by BlackRock
Funding, Inc.
(2) Commencements of investment operations for the Bond Trusts and the Income II
Trusts were April 30, 2002, and July 30, 2002, respectively. This
information includes the initial investments by BlackRock Funding, Inc.
(3) Net asset value, beginning of period, reflects a deduction of $0.675 per
share sales charge from the initial offering price of $15.00 per share.
(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 each 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.
(7) These annualized ratios are not indicative of future expense ratios, due to
the short operating history of the Income II Trusts. Please refer to each
Trust's prospectus for the estimated expense ratios.
The information in these Financial Highlights represents the audited 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 each Trust's common shares.
See Notes to Financial Statements.
48
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR THE PERIOD(1) ENDED AUGUST 31, 2003, AND FOR THE PERIOD(2) ENDED AUGUST 31,
2002
--------------------------------------------------------------------------------
CALIFORNIA
INSURED
MUNICIPAL CALIFORNIA CALIFORNIA
INCOME TRUST MUNICIPAL BOND TRUST MUNICIPAL INCOME TRUST II
------------- ------------------------- -------------------------
2003 2003 2002 2003 2002
-------- -------- -------- -------- --------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period ............. $ 14.33(3) $ 14.87 $ 14.33(3) $ 14.42 $ 14.33(3)
-------- -------- -------- -------- --------
Investment operations:
Net investment income .......................... 0.79 1.18 0.28 1.02 0.02
Net realized and unrealized gain (loss) ........ (1.15) (1.21) 0.63 (1.51) 0.10
Dividends to preferred shareholders:
Net investment income ........................ (0.06) (0.09) (0.02) (0.09) --
Net realized gains ........................... -- (0.01) -- -- --
-------- -------- -------- -------- --------
Net increase (decrease) from investment operations (0.42) (0.13) 0.89 (0.58) (0.12)
-------- -------- -------- -------- --------
Dividends to common shareholders:
Net investment income .......................... (0.67) (0.94) (0.23) (0.97) --
Net realized gains ............................. -- (0.08) -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions ................ (0.67) (1.02) (0.23) (0.97) --
-------- -------- -------- -------- --------
Capital charges with respect to issuance of:
Common shares .................................. (0.03) -- (0.03) -- (0.03)
Preferred shares ............................... (0.12) (0.01) (0.09) (0.11) --
-------- -------- -------- -------- --------
Total capital charges ............................ (0.15) (0.01) (0.12) (0.11) (0.03)
-------- -------- -------- -------- --------
Net asset value, end of period ................... $ 13.09 $ 13.71 $ 14.87 $ 12.76 $ 14.42
======== ======== ======== ======== ========
Market price, end of period ...................... $ 13.01 $ 13.15 $ 14.58 $ 13.01 $ 15.01
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN(4) ....................... (8.98)% (2.92)% (1.23)% (6.94)% 0.07%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:(5)
Expenses after fees waived and paid indirectly ... 0.92%(6) 1.06% 1.12%(6) 0.97% 1.05%(7)
Expenses before fees waived and paid indirectly .. 1.27%(6) 1.54% 1.53%(6) 1.23% 1.20%(7)
Net investment income after fees waived and paid
indirectly and before preferred share dividends 6.69%(6) 7.99% 5.75%(6) 7.38% 1.35%(7)
Preferred share dividends ........................ 0.50%(6) 0.58% 0.49%(6) 0.63% 0.00%(7)
Net investment income available to
common shareholders ............................ 6.19%(6) 7.41% 5.26%(6) 6.75% 1.35%(7)
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) .. $ 74,302 $ 49,107 $ 47,390 $110,286 $105,895
Portfolio turnover ............................... 41% 22% 18% 85% 0%
Net assets of common shareholders,
end of period (000) ............................ $ 68,910 $ 45,940 $ 49,834 $101,738 $112,576
Preferred shares value outstanding (000) ......... $ 46,500 $ 29,975 $ 29,975 $ 71,950 $ --
Asset coverage per preferred share, end of period $ 62,052 $ 63,318 $ 66,569 $ 60,353 $ --
-----------
(1) Commencements of investment operations for the Insured Trusts were October
31, 2002. The statements for the Bond Trusts and the Income II Trusts are
for one year. This information includes the initial investments by BlackRock
Funding, Inc.
(2) Commencements of investment operations for the Bond Trusts and the Income II
Trusts were April 30, 2002, and July 30, 2002, respectively. This
information includes the initial investments by BlackRock Funding, Inc.
(3) Net asset value, beginning of period, reflects a deduction of $0.675 per
share sales charge from the initial offering price of $15.00 per share.
(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 each 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.
(7) These annualized ratios are not indicative of future expense ratios, due to
the short operating history of the Income II Trusts. Please refer to each
Trust's prospectus for the estimated expense ratios.
The information in these Financial Highlights represents the audited 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 each Trust's common shares.
See Notes to Financial Statements.
49
--------------------------------------------------------------------------------
FLORIDA
INSURED
MUNICIPAL FLORIDA MARYLAND NEW JERSEY
INCOME TRUST MUNICIPAL BOND TRUST MUNICIPAL BOND TRUST MUNICIPAL BOND TRUST
------------ -------------------------- -------------------------- ---------------------
2003 2003 2002 2003 2002 2003 2002
-------- ------- ------- ------- ------- ------- -------
$ 14.33(3) $ 14.90 $ 14.33(3) $ 14.76 $ 14.33(3) $ 14.58 $ 14.33(3)
-------- ------- ------- ------- ------- ------- -------
0.75 1.14 0.26 1.07 0.25 1.15 0.25
(0.47) (0.43) 0.68 (0.45) 0.53 (0.85) 0.37
(0.06) (0.09) (0.02) (0.10) (0.03) (0.09) (0.02)
-- (0.01) -- (0.01) -- (0.01) --
======== ======= ======= ======= ======= ======= =======
0.22 0.61 0.92 0.51 0.75 0.20 0.60
======== ======= ======= ======= ======= ======= =======
(0.67) (0.92) (0.23) (0.84) (0.21) (0.93) (0.23)
-- (0.06) -- (0.04) -- (0.06) --
======== ======= ======= ======= ======= ======= =======
(0.67) (0.98) (0.23) (0.88) (0.21) (0.99) (0.23)
======== ======= ======= ======= ======= ======= =======
(0.03) -- (0.03) -- (0.02) -- (0.03)
(0.11) (0.01) (0.09) (0.03) (0.09) (0.02) (0.09)
======== ======= ======= ======= ======= ======= =======
(0.14) (0.01) (0.12) (0.03) (0.11) (0.02) (0.12)
======== ======= ======= ======= ======= ======= =======
$ 13.74 $ 14.52 $ 14.90 $ 14.36 $ 14.76 $ 13.77 $ 14.58
======== ======= ======= ======= ======= ======= =======
$ 13.20 $ 13.55 $ 14.92 $ 13.90 $ 14.95 $ 13.64 $ 14.65
======== ======= ======= ======= ======= ======= =======
(7.78)% (2.90)% 1.03% (1.32)% 1.10% (0.10)% (0.75)%
======== ======= ======= ======= ======= ======= =======
0.83%(6) 1.05% 1.12%(6) 1.15% 1.12%(6) 1.14% 1.15%
1.17%(6) 1.53% 1.54%(6) 1.63% 1.54%(6) 1.62% 1.57%
6.39%(6) 7.54% 5.36%(6) 7.18% 5.30%(6) 7.94% 5.29%
0.54%(6) 0.59% 0.49%(6) 0.64% 0.54%(6) 0.60% 0.45%
5.85%(6) 6.95% 4.87%(6) 6.54% 4.76%(6) 7.34% 4.84%
$124,543 $49,915 $46,792 $30,069 $28,153 $32,652 $31.611
50% 19% 0% 14% 1% 20% 17%
$119,778 $48,042 $49,284 $28,923 $29,705 $31,226 $32,981
$ 76,000 $29,775 $29,775 $18,000 $18,000 $20,225 $20,225
$ 64,404 $65,340 $66,383 $65,172 $66,259 $63,602 $65,771
50
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR THE PERIOD(1) ENDED AUGUST 31, 2003, AND FOR THE PERIOD(2) ENDED AUGUST 31,
2002
--------------------------------------------------------------------------------
NEW YORK
INSURED
MUNICIPAL NEW YORK NEW YORK
INCOME TRUST MUNICIPAL BOND TRUST MUNICIPAL INCOME TRUST II
------------ ----------------------- -------------------------
2003 2003 2002 2003 2002
------- ------- ------- ------- -------
PER COMMON SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period ................ $ 14.33(3) $ 14.83 $ 14.33(3) $ 14.47 $ 14.33(3)
------- ------- ------- ------- -------
Investment operations:
Net investment income ............................. 0.75 1.12 0.25 0.98 0.02
Net realized and unrealized gain (loss) ........... (0.75) (0.71) 0.62 (0.94) 0.15
Dividends to preferred shareholders:
Net investment income ........................... (0.07) (0.09) (0.02) (0.10) --
Net realized gains .............................. -- (0.01) -- -- --
------- ------- ------- ------- -------
Net increase (decrease) from investment operations .. (0.07) 0.31 0.85 (0.06) 0.17
------- ------- ------- ------- -------
Dividends to common shareholders:
Net investment income ............................. (0.67) (0.92) (0.23) (0.94) --
Net realized gains ................................ -- (0.06) -- -- --
------- ------- ------- ------- -------
Total dividends and distributions ................... (0.67) (0.98) (0.23) (0.94) --
------- ------- ------- ------- -------
Capital charges with respect to issuance of:
Common shares ..................................... (0.03) -- (0.03) -- (0.03)
Preferred shares .................................. (0.11) (0.01) (0.09) (0.11) --
------- ------- ------- ------- -------
Total capital charges ............................... (0.14) (0.01) (0.12) (0.11) (0.03)
------- ------- ------- ------- -------
Net asset value, end of period ...................... $ 13.45 $ 14.15 $ 14.83 $ 13.36 $ 14.47
======= ======= ======= ======= =======
Market price, end of period ......................... $ 13.28 $ 13.35 $ 14.50 $ 13.12 $ 15.10
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN(4) .......................... (7.13)% (1.26)% (1.78)% (6.93)% 0.67%
======= ======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS OF
COMMON SHAREHOLDERS:(5)
Expenses after fees waived and paid indirectly ...... 0.87%(6) 1.12% 1.12%(6) 1.00% 1.43%(7)
Expenses before fees waived and paid indirectly ..... 1.22%(6) 1.60% 1.54%(6) 1.27% 1.58%(7)
Net investment income after fees waived and paid
indirectly and before preferred share dividends .. 6.35%(6) 7.57% 5.24%(6) 6.95% 1.77%(7)
Preferred share dividends ........................... 0.55%(6) 0.62% 0.50%(6) 0.68% 0.00%(7)
Net investment income available to
common shareholders ............................... 5.80%(6) 6.95% 4.74%(6) 6.27% 1.77%(7)
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ..... $90,967 $40,072 $38,183 $69,863 $64,673
Portfolio turnover .................................. 80% 7% 15% 40% 0%
Net assets of common shareholders,
end of period (000) ............................... $86,431 $38,207 $40,062 $65,953 $70,276
Preferred shares value outstanding (000) ............ $56,000 $24,200 $24,200 $44,650 $ --
Asset coverage per preferred share, end of period ... $63,587 $64,473 $66,390 $61,930 $ --
---------------
(1) Commencements of investment operations for the Insured Trusts were October
31, 2002. The statements for the Bond Trusts and the Income II Trusts are
for one year. This information includes the initial investments by BlackRock
Funding, Inc.
(2) Commencements of investment operations for the Bond Trusts and the Income II
Trusts were April 30, 2002, and July 30, 2002, respectively. This
information includes the initial investments by BlackRock Funding, Inc.
(3) Net asset value, beginning of period, reflects a deduction of $0.675 per
share sales charge from the initial offering price of $15.00 per share.
(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 each 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.
(7) These annualized ratios are not indicative of future expense ratios, due to
the short operating history of the Income II Trusts. Please refer to each
Trust's prospectus for the estimated expense ratios.
The information in these Financial Highlights represents the audited 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 each Trust's common shares.
See Notes to Financial Statements.
51
--------------------------------------------------------------------------------
VIRGINIA
MUNICIPAL BOND TRUST
-----------------------
2003 2002
------- -------
$ 14.90 $ 14.33(3)
------- -------
1.09 0.27
(0.44) 0.65
(0.08) (0.03)
(0.02) --
------- -------
0.55 0.89
------- -------
(0.85) (0.21)
(0.10) --
------- -------
(0.95) (0.21)
------- -------
-- (0.02)
(0.04) (0.09)
------- -------
(0.04) (0.11)
------- -------
$ 14.46 $ 14.90
======= =======
$ 14.40 $ 15.20
======= =======
0.94% 2.81%
======= =======
1.17% 1.12%(6)
1.64% 1.54%(6)
7.23% 5.70%(6)
0.53% 0.54%(6)
6.70% 5.16%(6)
$22,896 $21,321
18% 8%
$21,944 $22,545
$13,525 $13,525
$65,562 $66,674
52
NOTES TO FINANCIAL STATEMENTS
---------------------------------------------------------------
NOTE 1. ORGANIZATION
& ACCOUNTING POLICIES
BlackRock Insured Municipal Income Trust ("Insured Municipal"), BlackRock
California Insured Municipal Income Trust ("California Insured"), BlackRock
Florida Insured Municipal Income Trust ("Florida Insured"), BlackRock New York
Insured Municipal Income Trust ("New York Insured") (collectively the "Insured
Trusts"), BlackRock Municipal Bond Trust ("Municipal Bond"), BlackRock
California Municipal Bond Trust ("California Bond"), BlackRock Florida Municipal
Bond Trust ("Florida Bond"), BlackRock Maryland Municipal Bond Trust ("Maryland
Bond"), BlackRock NewJersey Municipal Bond Trust ("New Jersey Bond"), BlackRock
New York Municipal Bond Trust ("New York Bond"), BlackRock Virginia Municipal
Bond Trust ("Virginia Bond")(collectively the "Bond Trusts"), BlackRock
Municipal Income Trust II("Municipal Income II"), BlackRock California Municipal
Income Trust II("California Income II") and BlackRock New York Municipal Income
Trust II("New York Income II") (collectively the "Income IITrusts")(collectively
the "Trusts") are organized as Delaware statutory trusts. The Insured Trusts
were organized on August 19, 2002. They had no transactions until October 19,
2002, when each of the Insured Trusts sold 8,028 common shares for $115,001 to
BlackRock Funding, Inc. Investment operations for the Insured Trusts commenced
on October 31, 2002. Insured Municipal, Municipal Bond and Municipal Income II
are registered as diversified closed-end management investment companies under
the Investment Company Act of 1940, as amended. California Insured, California
Bond, California Income II, Florida Insured, Florida Bond, Maryland Bond, New
Jersey Bond, New York Insured, New York Bond, New York Income II and Virginia
Bond are registered as non-diversified closed-end management investment
companies under the Investment Company Act of 1940, as amended.
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 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; securities maturing in less than 60 days are
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. At August 31, 2003, there were no open
financial futures contracts in any of the Trusts.
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 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 Trustees. This has the same economic effect for
the Trustees as if the Trustees had invested the deferred amounts in such
Trusts.
53
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 Trustees in order to match its deferred compensation obligations.
RECLASSIFICATION OF CAPITAL ACCOUNTS: In order to present undistributed
(distribution in excess of) net investment income ("UNII"), accumulated net
realized gain ("Accumulated Gain") and paid-in capital in excess of par ("PIC")
more closely to its tax character the following accounts, for each Trust, were
increased (decreased):
TRUST UNII ACCUMULATED GAIN PIC
----- ------- ---------------- -----
Insured Municipal $14,054 $ 946 $(15,000)
Municipal Bond 8,267 1,733 (10,000)
Municipal Income II 14,910 90 (15,000)
California Insured 14,993 7 (15,000)
California Bond 10,000 -- (10,000)
California Income II 14,016 984 (15,000)
Florida Insured 14,833 167 (15,000)
Florida Bond 10,000 -- (10,000)
Maryland Bond 9,971 29 (10,000)
New Jersey Bond 9,985 15 (10,000)
New York Insured 14,309 691 (15,000)
New York Bond 9,195 805 (10,000)
New York Income II 15,000 -- (15,000)
Virginia Bond 10,000 -- (10,000)
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 each Trust. BlackRock, Inc. is an
indirect majority owned subsidiary of The PNC Financial Services Group, Inc. The
investment management agreement covers both investment advisory and
administration services.
Each Trust's investment advisory fee paid to the Advisor is computed weekly
and payable monthly based on an annual rate, 0.55% for the Insured Trusts and
Income II Trusts and 0.65% for the Bond Trusts, of each Trust's average weekly
managed assets. "Managed assets" means the total assets of a 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 of each Trust. With respect to the
Insured Trusts the waiver, as a percentage of managed assets, is as follows:
0.20% for the first 5 years of each Trust's operations, 0.15% in year 6, 0.10%
in year 7, and 0.05% in year 8. With respect to the Bond Trusts the waiver, as a
percentage of managed assets, is as follows: 0.30% for the first 5 years of each
Trust's operations, 0.25% in year 6, 0.20% in year 7, 0.15% in year 8, 0.10% in
year 9 and 0.05% in year 10. With respect to the Income II Trusts the waiver, as
a percentage of managed assets, is as follows: 0.15% for the first 5 years of
each Trust's operations, 0.10% in year 6 through year 7, 0.05% in year 8 through
year 10.
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, occupancy and certain clerical and
accounting costs of each Trust. 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 earnings
credits from its custodian for positive cash balances maintained, which are used
to offset custody fees.
NOTE 3. PORTFOLIO SECURITIES Purchases and sales of investment securities, other
than short-term investments, for the period ended August 31, 2003, were as
follows:
TRUST PURCHASES SALES TRUST PURCHASES SALES
-------- ------------ ------------ ----- ------------ ------------
Insured Municipal $818,968,802 $245,225,845 Florida Bond $ 16,032,082 $ 15,147,759
Municipal Bond 49,105,751 55,449,652 Maryland Bond 6,384,305 6,967,313
Municipal Income II 772,393,435 577,680,088 New Jersey Bond 10,296,102 10,586,513
California Insured 162,860,019 44,678,085 New York Insured 245,441,228 100,292,039
California Bond 17,114,065 18,708,323 New York Bond 4,927,250 4,692,700
California Income II 241,542,049 142,736,260 New York Income II 94,792,222 42,512,910
Florida Insured 284,740,366 87,367,096 Virginia Bond 6,361,760 6,684,485
54
At August 31, 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
----- ------------ ------------ ------------ -----------
Insured Municipal $573,649,817 $5,019,770 $16,917,988 $(11,898,218)
Municipal Bond 228,667,847 3,605,944 4,972,414 (1,366,470)
Municipal Income II 521,867,997 1,346,168 16,375,127 (15,028,959)
California Insured 118,909,109 109,529 6,220,325 (6,110,796)
California Bond 76,413,796 716,409 2,913,387 (2,196,978)
California Income II 183,707,707 181,019 8,302,381 (8,121,362)
Florida Insured 198,272,791 120,141 4,888,747 (4,768,606)
Florida Bond 77,444,970 1,245,279 912,802 332,477
Maryland Bond 46,066,493 523,498 402,015 121,483
New Jersey Bond 52,245,446 644,502 1,902,209 (1,257,707)
New York Insured 145,507,966 49,569 4,783,450 (4,733,881)
New York Bond 62,009,010 1,063,591 1,255,186 (191,595)
New York Income II 112,298,296 110,592 3,253,284 (3,142,692)
Virginia Bond 34,997,690 548,461 414,687 133,774
For Federal income tax purposes, the following Trusts had capital loss
carryforwards as of their last respective tax year end. These amounts may be
used to offset future realized capital gains, if any:
PRIOR TAX CAPITAL LOSS
TRUST YEAR END CARRYFORWARD AMOUNT EXPIRES
----- --------- ------------------- -------
Municipal Income II 06/30/03 $1,338,302 06/11
California Income II 06/30/03 1,454,313 06/11
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.
NOTE 4. CAPITAL There are an unlimited number of $0.001 par value common shares
of beneficial interest authorized for each Trust. Each Trust may classify or
reclassify any unissued common shares into one or more series of Auction Market
Preferred Shares ("preferred shares"). At August 31, 2003, the shares
outstanding and the shares owned by affiliates of the Advisor of each Trust were
as follows:
COMMON COMMON
SHARES COMMON SHARES COMMON
TRUST OUTSTANDING SHARES OWNED TRUST OUTSTANDING SHARES OWNED
----- ----------- ------------ ----- ----------- ------------
Insured Municipal 26,125,458 8,029 Florida Bond 3,309,483 7,679
Municipal Bond 10,123,055 7,679 Maryland Bond 2,014,121 7,679
Municipal Income II 22,773,392 8,027 New Jersey Bond 2,267,518 7,679
California Insured 5,264,025 8,029 New York Insured 6,424,108 8,029
California Bond 3,351,150 7,679 New York Bond 2,700,991 7,679
California Income II 7,974,413 8,027 New York Income II 4,935,268 8,027
Florida Insured 8,718,823 8,029 Virginia Bond 1,517,041 7,679
55
Transactions in common shares of beneficial interest for the periods ended
August 31, 2003 and 2002, were as follows:
SHARES FROM
-----------------------------------------------------------------
INITIAL UNDERWRITERS' EXERCISING REINVESTMENT NET INCREASE IN
TRUST PUBLIC OFFERING THE OVER-ALLOTMENT OPTION OF DIVIDENDS SHARES OUTSTANDING
----- --------------- ------------------------- ------------ ------------------
Insured Municipal 24,008,028 2,000,000 117,430 26,125,458
Municipal Bond 9,347,679 750,000 25,376 10,123,055
Municipal Income II 21,458,028 1,300,000 15,364 22,773,392
California Insured 5,008,028 250,000 5,997 5,264,025
California Bond 3,007,679 335,000 8,471 3,351,150
California Income II 7,408,028 550,000 16,385 7,974,413
Florida Insured 8,008,028 700,000 10,795 8,718,823
Florida Bond 2,932,679 375,000 1,804 3,309,483
Maryland Bond 1,767,679 245,000 1,442 2,014,121
New Jersey Bond 2,007,679 250,000 9,839 2,267,518
New York Insured 6,008,028 400,000 16,080 6,424,108
New York Bond 2,457,679 240,000 3,312 2,700,991
New York Income II 4,508,028 425,000 2,240 4,935,268
Virginia Bond 1,347,679 165,000 4,362 1,517,041
Offering costs incurred in connection with the Trusts' offering of common
shares have been charged against the proceeds from the initial common share
offering of the common shares as follows:
TRUST OFFERING COST TRUST OFFERING COST
----- ------------- ----- -------------
Insured Municipal $765,000 Florida Bond $89,000
Municipal Bond 292,700 Maryland Bond 50,150
Municipal Income II 658,500 New Jersey Bond 57,500
California Insured 142,500 New York Insured 177,000
California Bond 90,050 New York Bond 70,700
California Income II 219,000 New York Income II 130,500
Florida Insured 246,000 Virginia Bond 35,150
On September 19, 2002, each of the Income II Trusts issued several series of
preferred shares listed in the table below. The preferred shares have a
liquidation value of $25,000 per share plus any accumulated unpaid dividends.
TRUST SERIES SHARES TRUST SERIES SHARES
----- ------ ------ ----- ------ ------
Municipal Income II M7 2,055 California Income II T7 1,439
T7 2,056 R7 1,439
W7 2,055 New York Income II W7 1,786
R7 2,056
Underwriting discounts and offering costs incurred in connection with the
preferred share offering have been charged to paid-in capital in excess of par
of the common shares.
UNDERWRITING OFFERING UNDERWRITING OFFERING
TRUST DISCOUNT COST TRUST DISCOUNT COST
----- ------------ -------- ----- ------------ --------
Municipal Income II $2,055,500 $239,168 New York Income II $446,500 $120,782
California Income II 719,500 129,975
On December 11, 2002, the Insured Trusts issued several series of preferred
shares listed in the table below. The preferred shares have a liquidation value
of $25,000 per share plus any accumulated unpaid dividends.
TRUST SERIES SHARES TRUST SERIES SHARES
---------------- ------ ------ ----- ------ ------
Insured Municipal M7 3,053 California Insured F7 1,860
R7 3,053 Florida Insured M7 3,040
F7 3,053 New York Insured R7 2,240
56
Underwriting discounts and offering costs incurred in connection with the
preferred share offering have been charged to paid-in capital in excess of par
of the common shares.
UNDERWRITING OFFERING UNDERWRITING OFFERING
TRUST DISCOUNT COST TRUST DISCOUNT COST
----- ------------ -------- ----- ------------ --------
Insured Municipal $2,289,750 $367,431 Florida Insured $760,000 $184,848
California Insured 465,000 144,518 New York Insured 560,000 151,970
As of August 31, 2003, the Bond Trusts 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.
TRUST SERIES SHARES TRUST SERIES SHARES
---------------- ------ ------ ----- ------ ------
Municipal Bond T7 1,810 Maryland Bond R7 720
R7 1,810 New Jersey Bond M7 809
California Bond F7 1,199 New York Bond T7 968
Florida Bond W7 1,191 Virginia Bond R7 541
Dividends on seven-day preferred shares are cumulative at a rate which is
reset every seven days based on the results of an auction. The dividend ranges
on the preferred shares for each of the Trusts for the period ended August 31,
2003, were as follows:
TRUST LOW HIGH TRUST LOW HIGH
----- ---- ---- ----- ---- ----
Insured Municipal 0.50% 1.70% Florida Bond 0.24% 1.68%
Municipal Bond 0.40 3.69 Maryland Bond 0.51 2.80
Municipal Income II 0.65 1.75 New Jersey Bond 0.64 2.50
California Insured 0.50 1.20 New York Insured 0.70 1.50
California Bond 0.54 2.98 New York Bond 0.45 2.48
California Income II 0.40 1.73 New York Income II 0.80 1.75
Florida Insured 0.57 1.38 Virginia Bond 0.40 2.80
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, 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 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 subclassification 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 Subsequent to August 31, 2003, the Board of each Trust
declared dividends from undistributed earnings per common share payable October
1, 2003, to shareholders of record on September 15, 2003. The per share common
dividends declared were as follows:
COMMON DIVIDEND COMMON DIVIDEND
TRUST PER SHARE TRUST PER SHARE
----- --------------- ----- ---------------
Insured Municipal $0.078125 Florida Bond $0.077808
Municipal Bond 0.086375 Maryland Bond 0.071350
Municipal Income II 0.083750 New Jersey Bond 0.078582
California Insured 0.075000 New York Insured 0.075000
California Bond 0.079656 New York Bond 0.077099
California Income II 0.081250 New York Income II 0.078750
Florida Insured 0.075000 Virginia Bond 0.072428
57
The dividends declared on preferred shares for the period September 1, 2003
to September 30, 2003, for each of the Trusts were as follows:
DIVIDENDS DIVIDENDS
TRUST AND SERIES DECLARED TRUST AND SERIES DECLARED
---------------- --------- ---------------- ---------
Insured Municipal California Bond-F7 $18,213
M7 $64,235 California Income II
R7 47,444 T7 20,578
F7 53,763 R7 24,981
Municipal Bond Florida Insured-M7 62,077
T7 21,792 Florida Bond-W7 19,592
R7 20,326 Maryland Bond-R7 11,736
Municipal Income II New Jersey Bond-M7 16,253
M7 37,175 New York Insured-R7 37,475
T7 32,094 New York Bond-T7 14,443
W7 33,106 New York Income II-W7 31,005
R7 35,322 Virginia Bond-R7 7,942
California Insured-F7 32,271
58
INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
To the Trustees and Shareholders of:
BlackRock Municipal Bond Trust
BlackRock California Municipal Bond Trust
BlackRock Florida Municipal Bond Trust
BlackRock Maryland Municipal Bond Trust
BlackRock New Jersey Municipal Bond Trust
BlackRock New York Municipal Bond Trust
BlackRock Virginia Municipal Bond Trust (collectively the "Bond Trusts")
BlackRock Municipal Income Trust II
BlackRock California Municipal Income Trust II
BlackRock New York Municipal Income Trust II (collectively the "Income II
Trusts")
BlackRock Insured Municipal Income Trust
BlackRock California Insured Municipal Income Trust
BlackRock Florida Insured Municipal Income Trust
and BlackRock New York Insured Municipal Income Trust (collectively the
"Insured Trusts")
(collectively the "Trusts")
We have audited the accompanying statements of assets and liabilities of the
Trusts, including the portfolios of investments, as of August 31, 2003, and the
related statements of operations, the statements of changes in net assets and
financial highlights for the period then ended and the statements of changes in
net assets and financial highlights for the period from April 30, 2002
(commencement of operations) through August 31, 2002, for the Bond Trusts, and
the statements of changes in net assets and the financial highlights for the
period from July 30, 2002 (commencement of operations) through August 31, 2002,
for the Income II Trusts. These financial statements are the responsibility of
the Trusts' management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
August 31, 2003, by correspondence with the custodian and brokers; where replies
were not received from brokers, we performed other auditing procedures. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of each of the Trusts as of August
31, 2003, the results of their operations, the changes in their net assets and
the financial highlights for the respective stated periods, in conformity with
accounting principles generally accepted in the United States of America.
/s/ Deloitte + Touche LLP
Boston, Massachusetts
October 10, 2003
59
DIVIDEND REINVESTMENT PLANS
--------------------------------------------------------------------------------
Pursuant to each Trust's Dividend Reinvestment Plan (the "Plan"), common
shareholders 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.
The Plan Agent serves as agent for the shareholders in administering the
Plan. After a Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will acquire shares for the participants' accounts,
depending upon the circumstances described below, either (i) through receipt of
unissued but authorized shares from the Trust ("newly issued shares") or (ii) by
purchase of outstanding shares on the open market, on the Trust's primary
exchange or elsewhere ("open-market purchases"). If, on the dividend payment
date, the net asset value per share ("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 (800) 699-1BFM or 150 Royall Street, Canton, MA 02021.
60
TRUSTEES INFORMATION
--------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
---------------------------------------------------------------------------------------------------------------------------
Name, address, age Andrew F. Brimmer Richard E. Cavanagh Kent Dixon
P.O. Box 4546 P.O. Box 4546 P.O. Box 4546
New York, NY 10163-4546 New York, NY 10163-4546 New York, NY 10163-4546
Age:77 Age: 57 Age: 66
---------------------------------------------------------------------------------------------------------------------------
Current positions held with Lead Trustee Trustee Trustee
the Trusts Audit Committee Chairman(2) Audit Committee Member Audit Committee Member(2)
---------------------------------------------------------------------------------------------------------------------------
Term of office and length 3 years(4)/ since inception 3 years(4)/ since inception 3 years(4)/ since inception
of time served
---------------------------------------------------------------------------------------------------------------------------
Principal occupations President of Brimmer & President and Chief Consultant/Investor. Former
during the past five years Company, Inc., a Executive Officer of The President and Chief
Washington, D.C.-based Conference Board, Inc., a Executive Officer of Empire
economic and financial leading global business Federal Savings Bank of
consulting firm, also membership organization, America and Banc PLUS
Wilmer D. Barrett Professor from 1995-present. Former Savings Association, former
of Economics, University of Executive Dean of the John Chairman of the Board,
Massachusetts - Amherst. F. Kennedy School of President and Chief
Formerly member of the Government at Harvard Executive Officer of
Board of Governors of the University from 1988-1995. Northeast Savings.
Federal Reserve System. Acting Director, Harvard
Former Chairman, District Center for Business and
of Columbia Financial Government (1991-1993).
Control Board. Formerly Partner
(principal) of McKinsey &
Company, Inc. (1980- 1988).
Former Executive Director
of Federal Cash Management,
White House Office of
Management and Budget
(1977-1979). Co-author, THE
WINNING PERFORMANCE (best
selling management book
published in 13 national
editions).
---------------------------------------------------------------------------------------------------------------------------
Number of portfolios over- 48 48 48
seen within the fund com-
plex
---------------------------------------------------------------------------------------------------------------------------
Other Directorships held Director of CarrAmerica Trustee: Airplanes Group, Former Director of ISFA
outside of the fund Realty Corporation and Aircraft Finance Trust (the owner of INVEST, a
complex Borg-Warner Automotive. (AFT) and Educational national securities
Formerly Director of Testing Service (ETS). brokerage service designed
Airborne Express, Director, Arch Chemicals, for banks and thrift
BankAmerica Corporation Fremont Group and The institutions).
(Bank of America), Bell Guardian Life Insurance
South Corporation, College Company of America.
Retirement Equities Fund
(Trustee), Commodity
Exchange, Inc. (Public
Governor), Connecticut
Mutual Life Insurance
Company, E.I. du Pont de
Nemours & Company,
Equitable Life Assurance
Society of the United
States, Gannett Company,
Mercedes-Benz of North
America, MNC Financial
Corporation (American
Security Bank), NCM Capital
Management, Navistar
International Corporation,
PHH Corp. and UAL
Corporation (United
Airlines).
---------------------------------------------------------------------------------------------------------------------------
For "Interested Director/
Trustee" Relationships,
events or transactions by
reason of which the Trustee
is an interested person as
defined in Section
2(a)(19)(1940 Act)
---------------------------------------------------------------------------------------------------------------------------
(1) Interested Trustee as defined by Section 2(a)(19) of the Investment Company
Act of 1940.
(2) The Board of each Trust has determined that each Trust has two Audit
Committee financial experts serving on its Audit Committee, Dr. Brimmer and
Mr. Dixon, both of whom are independent for the purpose of the definition of
Audit Committee financial expert as applicable to the Trusts.
(3) Trustee since inception; appointed Chairman of the Board on August 22, 2002.
(4) The Board is classified into three classes of which one class is elected
annually. Each Trustee serves a three year term concurrent with the class
from which he is elected.
(5) Except during the period 10/31/02 through 11/11/02 for all of the Trusts.
(6) Appointed Trustee on August 22, 2002, for the Bond Trusts and Income II
Trusts. Trustee since inception for the Insured Trusts.
61
---------------------------------------------------------------------- ----------------------------------------------------
INDEPENDENT TRUSTEES (CONTINUED) INTERESTED TRUSTEES(1)
---------------------------------------------------------------------- ----------------------------------------------------
Frank J. Fabozzi James Clayburn Walter F. Mondale Ralph L. Schlosstein Robert S. Kapito
P.O. Box 4546 La Force, Jr. P.O. Box 4546 BlackRock,Inc. BlackRock,Inc.
New York, NY P.O. Box 4546 New York, NY 40 East 52nd Street 40 East 52nd Street
10163-4546 New York, NY 10163-4546 10163-4546 New York, NY 10022 New York, NY 10022
Age: 55 Age: 74 Age: 75 Age: 52 Age: 46
---------------------------------------------------------------------- ----------------------------------------------------
Trustee Trustee Trustee Chairman of the President and Trustee
Board(3)
---------------------------------------------------------------------- ----------------------------------------------------
3 years(4)/since 3 years(4)/since 3 years(4)/since 3 years(4)/since 3 years(4)/since August
inception inception inception(5) inception 22, 2002(6)
---------------------------------------------------------------------- ----------------------------------------------------
Consultant. Editor of Dean Emeritus of the Partner, Dorsey & Director since 1999 Vice Chairman of
THE JOURNAL OF John E. Anderson Whitney, LLP., a law and President of BlackRock, Inc. Head of
PORTFOLIO MANAGEMENT Graduate School of firm (December BlackRock, Inc. since the Portfolio Management
and Frederick Frank Management, University 1996-present, its formation in 1998 Group. Also a member of
Adjunct Professor of of California since September 1987-August and of BlackRock, the Management Committee,
Finance at the School July 1, 1993. Acting 1993). Formerly U.S. Inc.'s predecessor the Investment Strategy
of Management at Yale Dean of the School of Ambassador to Japan entities since 1988. Group, the Fixed Income
University. Author Business, Hong Kong (1993-1996). Formerly Member of the and Global Operating
and editor of several University of Science Vice President of the Management Committee Committees and the Equity
books on fixed income and Technology United States, U.S. and Investment Investment Strategy
portfolio management. 1990-1993. From 1978 Senator and Attorney Strategy Group of Group. Responsible for
Visiting Professor of to September 1993, General of the State BlackRock, Inc. the portfolio management
Finance and Dean of the John E. of Minnesota. 1984 Formerly, Managing of the Fixed Income,
Accounting at the Anderson Graduate Democratic Nominee for Director of Lehman Domestic Equity and
Sloan School of School of Management, President of the Brothers, Inc. and International Equity,
Management, University of United States. Co-head of its Liquidity, and
Massachusetts California. Mortgage and Savings Alternative Investment
Institute of Institutions Group. Groups of BlackRock.
Technology from 1986 Currently, Chairman Currently President and a
to August 1992. and a Trustee of each Director/Trustee of each
of the closed-end of the closed-end Trusts
Trusts in which in which BlackRock
BlackRock Advisors, Advisors, Inc. acts as
Inc. acts as investment advisor.
investment advisor.
---------------------------------------------------------------------- ----------------------------------------------------
48 48 48 48 48
---------------------------------------------------------------------- ----------------------------------------------------
Director, Guardian Payden & Rygel Chairman and President Chairman of the Hope and
Mutual Funds Group Investment Trust, of the BlackRock Heroes Children's Cancer
(18 portfolios). Provident Investment Provident Fund. President of the
Counsel Funds, Institutional Funds Board of Directors of the
Advisors Series Trust, (10 portfolios) and Periwinkle National
Arena Pharmaceuticals, Director of several of Theatre for Young
Inc. and CancerVax BlackRock's Audiences. Director of
Corporation. alternative investment icruise.com, Corp.
vehicles. Currently, a
Member of the Visiting
Board of Overseers of
the John F. Kennedy
School of Government
at Harvard University,
the Financial
Institutions Center
Board of the Wharton
School of the
University of
Pennsylvania, a
Trustee of Trinity
School in New York
City and a Trustee of
New Visions for Public
Education in New York
City. Formerly, a
Director of Pulte
Corporation and a
Member of Fannie Mae's
Advisory Council.
---------------------------------------------------------------------- ----------------------------------------------------
Director and President Vice Chairman of the
of the Advisor. Advisor.
---------------------------------------------------------------------- ----------------------------------------------------
62
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 September
30, 2003, all dividends paid by the Insured Trusts (the only Trusts with
September 30th tax year-ends) were federally tax-exempt interest dividends.
The Joint Annual Meeting of Shareholders was held on May 22, 2003, to elect
Class I Trustees for each of the following Trusts to three year terms expiring
in 2006. The election results were as follows:
RICHARD E. CAVANAGH JAMES CLAYBURN LA FORCE, JR.
--------------------------- --------------------------------
TRUST VOTES FOR VOTES WITHHELD VOTES FOR VOTES WITHHELD
----- --------- -------------- ------------- --------------
Insured Municipal 8,449 28 25,741,538 264,001
Municipal Bond 3,563 17 9,897,065 147,768
Municipal Income II 7,820 0 22,479,818 227,710
California Insured 1,847 0 5,113,547 104,558
California Bond 1,154 0 3,301,610 25,777
California Income II 2,792 0 7,865,205 72,316
Florida Insured 2,762 0 8,633,914 56,934
Florida Bond 1,170 1 3,257,604 21,668
Maryland Bond 720 0 1,951,649 24,243
New Jersey Bond 809 0 2,238,041 17,105
New York Insured 2,238 2 6,287,017 83,709
New York Bond 968 0 2,680,584 18,245
New York Income II 1,782 0 4,890,119 32,423
Virginia Bond 541 0 1,505,905 6,025
63
BlackRock Closed-End Funds
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
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 Trustees
Debevoise & Plimpton
919 Third Avenue
New York, NY 10022
--------------
(1) For the Insured Trusts and Bond Trusts.
(2) For the Income II Trusts.
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.
BlackRock Closed-End Funds
c/o BlackRock Advisors, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM
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.
The Trusts have adopted the Advisor's proxy voting policies and procedures to
govern the voting of proxies relating to their voting securities. You may obtain
a copy of these proxy voting procedures, without charge, by calling
(800)699-1236.
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.
[ BLACKROCK LOGO ]
CEF-ANN-1
ITEM 2. CODE OF ETHICS.
(a) The Registrant has adopted a code of ethics (the "Code of Ethics") that
applies to its principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions.
(b) Not applicable.
(c) The Registrant has not amended its Code of Ethics during the period
covered by the shareholder report presented in Item 1 hereto.
(d) The Registrant has not granted a waiver or an implicit waiver from a
provision of its Code of Ethics during the period covered by the shareholder
report presented in Item 1 hereto.
(e) Not applicable.
(f) The Registrant's Code of Ethics is attached as an Exhibit hereto.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Registrant's Board of Trustees has determined that it has two audit
committee financial experts serving on its audit committee, each of whom is an
"independent" Trustee: Dr. Andrew F. Brimmer and Mr. Kent Dixon. Under
applicable securities laws, a person who is determined to be an audit committee
financial expert will not be deemed an "expert" for any purpose, including
without limitation for the purposes of Section 11 of the Securities Act of 1933,
as a result of being designated or identified as an audit committee financial
expert. The designation or identification of a person as an audit committee
financial expert does not impose on such person any duties, obligations, or
liabilities that are greater than the duties, obligations, and liabilities
imposed on such person as a member of the audit committee and Board of Trustees
in the absence of such designation or identification.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable until annual reports for fiscal years ending after December 15,
2003.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable until annual reports for fiscal years ending on or after the
Registrant's first annual shareholder meeting held after January 15, 2004 but to
be included no later than October 31, 2004.
ITEM 6. RESERVED.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The Registrant has delegated the voting of proxies relating to its
voting securities to its investment advisor, BlackRock Advisors, Inc. (the
"Advisor") and its sub-advisor, BlackRock Financial Management, Inc. (the
"Sub-Advisor"). The Proxy Voting Policies and Procedures of the Advisor and
Sub-Advisor (the "Proxy Voting Policies") are included as an Exhibit hereto.
ITEM 8. RESERVED.
ITEM 9. CONTROLS AND PROCEDURES.
(a) The Registrant's principal executive officer and principal financial
officer have evaluated the Registrant's disclosure controls and procedures
within 90 days of this filing and have concluded that the Registrant'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 Registrant's principal executive officer and principal financial
officer are aware of no changes in the Registrant's internal control over
financial reporting that occurred during the Registrant's most recent fiscal
half-year that has materially affected, or is reasonably likely to materially
affect, the Registrant's internal control over financial reporting.
ITEM 10. EXHIBITS.
(a)(1) Code of Ethics.
(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.
(c) Proxy Voting Policies.
2
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.
BlackRock New Jersey Municipal Bond Trust
By: /s/ Henry Gabbay
---------------------------
Name: Henry Gabbay
Title: Treasurer
Date: October 29, 2003
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: October 29, 2003
By: /s/ Henry Gabbay
---------------------------
Name: Henry Gabbay
Title: Principal Financial Officer
Date: October 29, 2003